Investors day

Chalampé - June 15th, 2005

Gilles AUFFRET
Rhodia Group Chief Operating Officer
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 Forward looking statements

This presentation contains elements that are not

historical facts, including, without limitation,
certain statements on future expectations
and other forward-looking statements.
Such statements are based on management’s current
views and assumptions and involve known
and unknown risks and uncertainties that could
cause actual results, performance or events
to differ materially from those anticipated.
Copies of all recent filings, and additional information
about Rhodia, are available through our web site:
http://www.rhodia.com

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 Regulation G

The presentation today may include the display

of some company data that do not directly conform
to generally acceptable accounting principles, or GAAP.
Management believes that the presentation of some
non-GAAP data provides investors with additional
insight into the ongoing operations of the business.
These measures should not be viewed as an alternative
to GAAP measures of performance.

Furthermore, these measures may not be consistent

with similar measures provided by other companies.

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 Under the supervision of Alberto Pedrosa…

Alberto
PEDROSA
Presenting you
President Rhodia Polyamide
Rhodia Polyamide
today

Jean-Claude Gilles Dominique

STEINMETZ GRENIER RAGE
Vice President Vice President Vice President
Engineering Plastics Intermediates Upstream
& Industrial Yarns & Polymers Operations

Jacques Alain
RAMONET THIRIET
Managing Director Site Manager
Butachimie Chalampé

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 Programme

• Rhodia Polyamide – key facts

• Engineering Plastics
• Intermediates & Polymers

• Coffee break – products/application exhibition

• Chalampé site
• Competitivity plan
• Site visit

• Conclusion

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RHODIA POLYAMIDE
Chalampé - June 15th, 2005

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 The polyamide Market in 2004

Worldwide market
20 Billion USD
(2005/2010: +4%/y)

Engineering
EUROPE ASIA Plastics Industrial
1 640 KT 2 230 KT 1 855 KT
(+2.1 %) (+3.3%) Yarns
(+6.9%) 1 035 KT
(+5.4%)

Carpet
NORTH SOUTH Textile
AMERICA Yarns
AMERICA Yarns 1 020 KT
1 974 KT 158 KT 1 600 KT (+2.3%)
(-0.3%)

Staple Fibers
AMERICAS 490 KT
2 132 KT (-0.8%)
(+2.4 %)

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 Key figures
2004
(IFRS)

Sales R&D expenditure

€ 1 662 million 1.7% of sales
Recurring EBITDA
Industrial network
€ 188 million
19 plants
Employees worldwide around the world
5,177

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 Rhodia Polyamide: key products and markets

Intermediates and polymer

ADN, Adipic Acid, HMDA, Nylon Salt Phenol Polymer PA 6.6

Polyamide

Engineering Plastics Industrial Yarns Technical & consumer Fibers Textile

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 Rhodia Polyamide: a fully integrated enterprise

Engineering
Capro- PA 6 Plastics
lactame

Cyclo- Adipic
KA Oil
hexane acid
Industrial
Yarns

Nylon
PA 6.6
salt
Cyclo- Technical &
Cumene Phenol
hexanol Consumer Fibers

Butadiene ADN HMD

Textile
Yarns
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 A complete geographical coverage

19 industrial sites worldwide

North/Latin America Europe Asia

Daugavpils

Gorzow Yingkou
Neumünster
Qingdao
Chalampé
Mississauga

Detroit Arras Humenné

Qingdao

Lyon
Freiburg Onsan
Jacarei Belle-Etoile
Emmenbrücke
Sao Paulo Seoul
Valence
Ceriano Shanghai
Paulinia
Blanes
Santo Andre

San Bernardo

Worldwide Headquarter Application & Technology Development Centre

Regional Headquarter Manufacturing Plant R&D centre

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 Leadership positions

#2
Worldwide in
Polyamide 6.6
#3 #3

Worldwide Worldwide
in Polyamide in Engineering Plastics,
Polyamide 6 and 6.6

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 A 23% Q1 turnover growth driven by prices
(+ 18%) and volumes (+ 5%) by end of March 2005

Quarterly Turnover
(€ million)
439
422
397
376 370
356

Q1 04* Q2 04* Q3 04* Q4 04* Q1 05 Q1 04

*French GAAP

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 A strong recovery: price increase and fixed
cost reduction off setting raw materials increases

Benzene EBITDA/
evolution sales
(€ / ton) (€ million)

871
820

695

595
16%
444

EBITDA/ 14%
sales

13%
10%
10%

Q1 04* Q2 04* Q3 04* Q4 04* Q1 05

*French GAAP

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 Two strategic business:
Intermediates & Polymers and Engineering Plastics

Sales 2004
UPSTREAM DOWNSTREAM
1,662M€
Textile South America
% of total Sales

Technical Fibers
Phenol,
KA Oil
Adipic Acid Consumer Fibers 28%
ADN 49%
HMD Industrial Filament
AH Salt 23%
Polymers Engineering Plastics

Intermediates & Polymer

JV BUTACHIMIE
ADN - HMD
Textile JV Nylstar

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 RHODIA POLYAMIDE
Chalampé - June 15th, 2005
Jean-Claude STEINMETZ
Vice-President Engineering Plastics and Industrial Yarns

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 Our markets and applications

Plastics & Industrial Yarns

Automotive Electrical & Electronics

Consumer and Industrial goods Industrial Yarns

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 Engineering plastics polyamide
shows attractive growth

Polyamide market
1,452 KT
(2003/2010: +5.4%/y)

EUROPE ASIA E&E Auto

595 KT 366 KT 325 KT 602 KT
(+4.2 %) (+8.9%) (+6.1%) (+6.2%)

SOUTH AMERICA
37 KT
(+5.4%)

NORTH AMERICA CIG

454 KT 525 KT
(+3.7%) (+3.9%)

• Steady growth rate of 5.4% pa corresponds to historical average over longer periods
• Assumption: constant annual growth of GDP worldwide ~2.5% over next years
• Asia growth almost double the global average
• Strongly driven by China with growth rates ranging from 12 to 15% pa
• Auto and E&E are the strongest growing segment
• CIG is suffering more from lower cost material substitution

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 Two new plants in Asia within two years

North/Latin America Europe Asia

Gorzow

Mississauga
Qingdao
Detroit
Onsan
Lyon
Freiburg
Belle-Etoile
Seoul

Shanghai
San Bernardo Ceriano

Blanès

Worldwide Headquarter Application & Technology Development Centre

Regional Headquarter Manufacturing Plant

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 Powerful Global Resources

• Strong Commercial Coverage

• Dedicated Key Account Manager Structure

• Strong Distribution Network

• Worldwide commercial presence for direct sales
• E-business channel (SSOL): 30% of our sales in Europe

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 Industry's strongest innovation
and technology positions
Some examples of last innovations
Safety
• Crash Management
• Technyl Star™ for WIT for structural parts
• Hybrid technologies for structural parts
• Power distribution’s safety : HPF products

Comfort Environment
& Design
• Technyl® Alloy
• 100% Halogen free
• Technyl Star™ for design polyamide
Design freedom or surface aspect
• Recycling commitment

High
performance • "Super-Impact" polyamide: Technyl® SI
• Body Panel : Conductive grade
for on-line electro-painted body panel

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 Engineering Plastics' business

Major player
thanks to its
polyamide specialist
position

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 RHODIA POLYAMIDE
Chalampé - June 15th, 2005
Gilles GRENIER
Vice-President Intermediates & Polymers
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 Our markets and applications

Market
Growth
Nylon applications

+ 3%/y
Engineering Plastics Industrial Yarns Technical Fibers Textile Yarns

Polyurethane and Non-Nylon applications

+ 6%/y
Shoe Coatings Thermoplastic Synthetic Flexible
soles adhesives polyurethane leathers foams

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 World presence and leadership positions

Polyurethane Polyurethane

#3
#1
1
#Qingdao
Polyurethane
Nylon # #3 Nylon

2 Nylon
Polyurethane
Nylon
#1

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 Key strengths of Intermediates & Polymers SBU

• Worldwide leadership positions

• Improved profitability despite €/$

and raw materials impacts

• Management of global key accounts

• A panel of large ww customers > 5 M€
• Strong worldwide contracts with industry leaders

• Innovation

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 Innovations

TM
STABAMID
A stable and
quality consistent
polymer range
&
Tailor made
solutions for
Lightness enhanced
More rebound customer
More comfort performance

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