Investor Day Rhodia Polyamide Presentation June 2005 En

1CHALLENGING BOUNDARIESCHALLENGING BOUNDARIES

Investors day Chalampé - June 15th, 2005

Gilles AUFFRETRhodia Group Chief Operating Officer

Investors day - Chalampé - 6/15/05 - 2CHALLENGING BOUNDARIES

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

Forward looking statements


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.

Regulation G


Alain THIRIET

Site ManagerChalampé

Jean-Claude STEINMETZVice PresidentEngineering Plastics & Industrial Yarns

Under the supervision of Alberto Pedrosa…

GillesGRENIERVice PresidentIntermediates & Polymers

DominiqueRAGE

Vice PresidentUpstream Operations

Jacques RAMONETManaging DirectorButachimie

AlbertoPEDROSAPresidentRhodia Polyamide

Presenting youRhodia Polyamide

today


Programme

• Rhodia Polyamide – key facts• Engineering Plastics• Intermediates & Polymers

• Coffee break – products/application exhibition

• Chalampé site• Competitivity plan• Site visit

• Conclusion

6CHALLENGING BOUNDARIES

RHODIA POLYAMIDE Chalampé - June 15th, 2005


The polyamide Market in 2004

Worldwide market 20 Billion USD

(2005/2010: +4%/y)

Industrial Yarns1 035 KT(+5.4%)

Staple Fibers490 KT(-0.8%)

Carpet Yarns1 020 KT(+2.3%)

Engineering Plastics

1 855 KT(+6.9%)

Textile Yarns

1 600 KT(-0.3%)

ASIA2 230 KT (+3.3%)

NORTH AMERICA

1 974 KT

EUROPE1 640 KT(+2.1 %)

SOUTH AMERICA158 KT

AMERICAS2 132 KT(+2.4 %)


Key figures

2004(IFRS)

Sales

€ 1 662 million

Recurring EBITDA

€ 188 million

Employees worldwide

5,177

R&D expenditure

1.7% of sales

Industrial network

19 plantsaround the world


Polyamide

Engineering Plastics TextileTechnical & consumer FibersIndustrial Yarns

Intermediates and polymer

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

Rhodia Polyamide: key products and markets

Phenol


Rhodia Polyamide: a fully integrated enterprise

Adipicacid

Nylon salt

HMDADN

PA 6.6

PA 6

KA Oil

Cumene Phenol Cyclo-hexanol

Butadiene

Capro-lactame


IndustrialYarns

Technical & Consumer Fibers

Textile Yarns

Cyclo-hexane


A complete geographical coverage

Manufacturing Plant

Application & Technology Development Centre

R&D centre

Worldwide Headquarter

Regional Headquarter

Paulinia

Santo Andre

Mississauga

Sao Paulo

Detroit

Jacarei

San Bernardo

Qingdao

Asia

Seoul

Yingkou

Qingdao

Shanghai

Onsan

EuropeNorth/Latin America

19 industrial sites worldwide

Chalampé

Valence

Belle-Etoile

Blanes

Humenné

Neumünster

Daugavpils

Gorzow

Arras

Lyon Freiburg

Emmenbrücke

Ceriano


Leadership positions

Worldwide in Polyamide

Worldwide in Engineering Plastics,

Polyamide 6 and 6.6

Worldwide inPolyamide 6.6

#3 #3

#2


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

397356

376422

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

439

Quarterly Turnover(€ million)

*French GAAP

Q1 04

370


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

871

444

595

820

695

EBITDA/ sales

EBITDA/ sales

(€ million)

Benzene evolution(€ / ton)

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

13%

10% 10%

14%

16%

*French GAAP


Two strategic business: Intermediates & Polymers and Engineering Plastics

Phenol,KA Oil

Adipic AcidADNHMD

AH SaltPolymers

Textile South America

UPSTREAM DOWNSTREAM

JV BUTACHIMIEADN - HMD

Technical Fibers

Consumer Fibers

Industrial Filament


Intermediates & Polymer

Sales 20041,662M€

Textile JV Nylstar

28%

23%

49%

% of total Sales



Jean-Claude STEINMETZVice-President Engineering Plastics and Industrial Yarns


Plastics & Industrial Yarns

Automotive Electrical & Electronics

Consumer and Industrial goods Industrial Yarns

Our markets and applications


Engineering plastics polyamide shows attractive growth

• 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

Auto 602 KT(+6.2%)

CIG525 KT(+3.9%)

E&E325 KT(+6.1%)

ASIA366 KT (+8.9%)

NORTH AMERICA454 KT(+3.7%)

EUROPE595 KT

(+4.2 %)

SOUTH AMERICA37 KT(+5.4%)

Polyamide market1,452 KT

(2003/2010: +5.4%/y)


Two new plants in Asia within two years

Manufacturing Plant

Application & Technology Development CentreWorldwide Headquarter

Regional Headquarter

Mississauga

San Bernardo

DetroitQingdao

Seoul

ShanghaiCeriano

Lyon Freiburg

Belle-Etoile

Gorzow

Onsan

Blanès

AsiaEuropeNorth/Latin America


• 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

Powerful Global Resources


Industry's strongest innovation and technology positions

• Technyl® Alloy• Technyl Star™ for design

freedom or surface aspect Design

Comfort & Design

• "Super-Impact" polyamide: Technyl® SI • Body Panel : Conductive grade

for on-line electro-painted body panel

High performance

• Crash Management• Technyl Star™ for WIT for structural parts

• Hybrid technologies for structural parts

• Power distribution’s safety : HPF products

• 100% Halogen free polyamide

• Recycling commitment

Environment

SafetySome examples of last innovations


Engineering Plastics' business

thanks to itspolyamide specialist

Major player

position



Gilles GRENIER Vice-President Intermediates & Polymers


Polyurethane and Non-Nylon applications

Nylon applications

Our markets and applications

Engineering Plastics Textile YarnsTechnical FibersIndustrial Yarns

Syntheticleathers

Flexible foams

Thermoplasticpolyurethane

Coatings adhesives

Shoesoles

MarketGrowth

+ 3%/y

+ 6%/y


World presence and leadership positions

Qingdao

PolyurethaneNylon

Polyurethane

Nylon

Nylon

#1

#3#1

#2

#3#1

PolyurethaneNylon

Polyurethane


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


Innovations

STABAMIDTM

LightnessMore reboundMore comfort

A stable and quality consistent

polymer range &

Tailor made solutions for

enhanced customer

performance

Documents

Investor Day Rhodia Polyamide Presentation June 2005 En