Solvac S.A. — Interim / Quarterly Report 2011

Aug 31, 2011

Embargo, 31 August 2011, 5.50 p.m. REGULATED INFORMATION HALF-YEARLY FINANCIAL REPORT

SOLVAC: CASH INCOME 8.5% UP INTERIM DIVIDEND UNCHANGED AT EUR 2.20 NET

1. The Board of Directors has closed the consolidated financial statements of Solvac on June 30, 2011. These statements have been submitted to the Statutory Auditor for a limited review and are presented in accordance with IFRS standards.

CONSOLIDATED INCOME STATEMENT
EUR million	1st half 2010	1st half 2011
Operational profit / loss	-1	-1
Equity earnings	556	62
Capital gains from sale of Solvay shares	--	--
Charges on net indebtedness	-2	-2
Net income	553	59
Net earnings per share (EUR) (1)	36.1	3.9

On June 30, 2011 Solvac recorded a consolidated net income of EUR 59 million (EUR 3.9 per share) against EUR 553 million (EUR 36.1 per share) over the same period in 2010. This is mainly due to the evolution of equity earnings of Solvay including in 2010 the capital gain on the sale of the Pharmaceutical activities to Abbott (amounting to EUR 534 million).

1. The cash inflow, fed by dividends from the investment in Solvay, amounts to EUR 47.7 million against EUR 44.2 million in 2010:

EUR million	1st half 2010	1st half 2011
Cash inflow	44.2	47.7	+7.9%
Cash income	41.4	44.9	+8.5%

This evolution reflects the increase of Solvay's final dividend (financial year 2010) from EUR 1.73 to EUR 1.87 gross per share.

End June 2011, Solvac held 30.12% of Solvay, the same amount as at the end of 2010.

To the extent that the statutory accounts will allow it (see under 3 below), the proposed amount of dividends to be distributed by Solvac is determined by the Board of Directors on the basis of the cash income (EUR 44.9 million), after coverage of the costs (mainly financial charges).

^{(1 )} The net earnings per share and the diluted net earnings per share are identical. The number of shares used for per share calculation is 15 300 527 both in 2010 and in 2011.

(EUR thousand) 1st half 2010 1e half 2011 Recurrent financial result 41 857 45 274 Other recurrent result (-) 442 (-) 348

Net recurrent result 41 415 44 926

Capital gains -- --

Profit before taxes 41 415 44 926

Profit after taxes 41 415 44 926

1. The Board of Directors of Solvac SA has issued the following figures for the first half of 2011 statutory accounts:

2. Profits after taxes amount to EUR 44.9 million, an increase of 8.5% compared with the previous year (EUR 41.4 million).

3. 1. The Board of Directors has decided to maintain unchanged the first interim dividend at EUR 2.59 gross per share or EUR 2.20 net per share, an amount corresponding to 60% of the total rounded up dividend of the preceding year, in accordance with the policy decision made in 2006.

This first interim dividend will be paid on October 27, 2011.

This will amount to a gross distribution of EUR 39.6 million (same as last year's), with EUR 5.3 million of net income brought forward.

As from September 26, 2011 the Solvac shares will be traded ex-dividend on Euronext Brussels.

The second interim dividend will be decided by the Board of Directors and announced on December 16, 2011.

NOTES TO THE FINANCIAL STATEMENTS

1. Financial statements

Deloitte conducted a limited review of the half-year situation made up on June 30, 2011. This primarily consisted in analyzing, comparing and discussing financial information and therefore was less extensive than a review intended for the audit of annual statements. This review did not reveal factors that would have required significant correction of the intermediate figures.

2. Content

This press release contains regulatory information and is established in compliance with the IAS 34 standard. A risk analysis is included in the annual report, which is available on the Internet (www.solvac.be).

3. Solvac shares

	2010	1st half 2010	1st half 2011
Number of shares issued at the end of the	15 300 527	15 300 527	15 300 527
period
Average number of shares for calculating IFRS	15 300 527	15 300 527	15 300 527
earnings per share
Average number of shares for calculating IFRS	15 300 527	15 300 527	15 300 527
diluted earnings per share

4. Statement by responsible persons

Mr. J.-P. Delwart, Chairman of the Board and Mr. B. de Laguiche, Managing Director of Solvac, confirm that to the best of their knowledge:

a) the summary financial information, prepared in conformity with applicable accounting standards, reflects a true and fair view of the net worth, the financial situation and results of the Solvac Group and Solvac S.A.;

b) the intermediate report contains a faithful presentation of significant events occurring over the first six months of 2011, and their impact on the summary financial information.

Key dates for financial communications

• 27 October 2011: payment of first interim dividend for 2011

• 16 December 2011 at 5.50 p.m: press release about the second interim dividend

For additional information, please contact:

SOLVAC S.A.

Investor Relations Rue Keyenveld 58 1050 Brussels Phone : 32/2/509.60.16 Fax 32/2/509.72.40

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HALF-YEARLY IFRS FINANCIAL STATEMENTS (SUMMARY)

Consolidated balance sheet

EUR million	2010	30.06.11
ASSETS
Non current assets : Investments accounted for under the equity method	2 362	2 318
Goodwill	342	342
Investments accounted for under the equity method, excluding goodwill	2 020	1 976
Current assets : short term receivables	31	25
Cash and cash equivalents	0	0
Total assets	2 393	2 343
EQUITY AND LIABILITIES
Total equity	2 227	2 229
Share capital	138	138
Reserves	2 089	2 091
Non-current liabilities : long-term financial debt	110	110
Current liabilities	56	4
Income tax payable	4	0
Other current liabilities	52	4
Total equity and liabilities	2 393	2 343

Consolidated income statement

Million EUR	30.06.10	30.06.11
Income from investments accounted for under the equity method	556	62
Operating costs	-1	-1
Capital gain from sale of shares	0	0
Cost of borrowings	-2	-2
Net income	553	59
Earnings per share and diluted earnings per share (EUR)	36,1	3,9

Consolidated statement of changes in equity

EUR million	Share capital	Issue premiums	Retained earnings	Currency translation and fair value differences	Total equity
Balance at 31/12/2009	138	173	1 541	-174	1 678
Comprehensive income			553	119	673
Dividends			0		0
Scope and other variations			-4		-4
Balance at 30/06/2010	138	173	2 091	-55	2 347
Balance at 31/12/2010	138	173	2 018	-102	2 227
Comprehensive income			59	-57	2
Dividends			0		0
Scope and other variations			0		0
Balance at 30/06/2011	138	173	2 077	-159	2 229

Consolidated cash flow statement

EUR million	30.06.10	30.06.11
Operating charges	-1	-1
Changes in working capital	-12	-19
Dividends received from Solvay	44	48
Cash flow from operating activities	31	28
Acquisition of Solvay shares	-3	0
Sale of Solvay shares	0	0
Cash flow from investing activities	-3	0
Capital increase	0	0
Changes in borrowings	0	0
Costs of borrowings	-2	-2
Dividends paid	-26	-26
Cash flow from financing activities	-28	-28
Net change in cash and cash equivalents	0	0
Opening cash balance	0	0
Ending cash balance	0	0

Notes to the summary consolidated financial statements

1) Declaration of conformity and accounting policies

The summary consolidated financial statements have been prepared in conformity with the IAS 34 standard as currently adopted in the European Union. This standard did not have any impact on the summary consolidated financial statements, either for the current period or the comparison period.

The accounting policies are the same as those applied for the last consolidated financial statements dated December 31 2010.

The dividends income is usually higher during the first half of the year than during the second half of the year.

Solvac does not bear financial risk other than the risks linked to the participation in its affiliate. The analysis of risk management is available on Internet in Solvay's annual report (www.solvay.com).

There is no material half-yearly post-closing event to be disclosed.

2) Investments accounted for under the equity method

This relates to the 31.3% shareholding of Solvac in Solvay S.A. (after deduction of the treasury shares held by Solvay).

The value of the shareholding under the equity method amounts to EUR 2 318 million (of which EUR 342 million of goodwill, the value excluding goodwill amounting to EUR 1 976 million). Based on the stock exchange price as of June 30, it amounts to EUR 2 718 million.

The evolution of the shareholding carried under the equity method, excluding goodwill, is as follows:

EUR million	2010	30.06.2011
Balance at 1 January	1 472	2 020
Sold during the year	0	0
Acquired during the year	3	0
Result	559	62
Distribution	-75	-48
Currency translation and fair value differences	61	-58
Balance at 30 June	2 020	1 976

In the 1st half 2011, the share of Solvac in the net income of the Solvay Group, excluding minority interests, amounts to EUR 62 million (1st half 2010 : EUR 556 million).

3) Short-term receivables

The short-term receivables mainly include cash deposits with Solvay.

4) Total equity

Total equity at the end of June amounts to EUR 2 229 million (compared to EUR 2 346 million at the end of 2010) and includes direct allocations to equity. These result from currency translation adjustments and from the marking to market of Solvay's financial instruments.

5) Long-term financial debt

Long-term financial debts are stable at EUR 110 million (borrowings from BNP Paribas Fortis). It represents the structural indebtedness of Solvac: a borrowing of EUR 50 million (maturing in 2017) and a borrowing of EUR 60 million (maturing in 2015).

6) Other current liabilities

Other current liabilities mainly include trade liabilities and amounts to be reimbursed to the shareholders.

7) Statement by responsible persons

M. J-P. Delwart, Chairman of the Board of Directors, and M. B. de Laguiche, Managing Director, declare that to the best of their knowledge:

a. the summary financial information, prepared in conformity with applicable accounting standards, reflects a a true and fair view of the net worth, financial situation and results of the Solvac Group;

b. the intermediate report contains a faithful presentation of significant events occurring during the six first months of 2011, and their impact on the summary financial situation;

c. there are no transactions with related parties.