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Presentation of 2007 Results 15th F e b rua ry 2008 CONT E NT S 1 | PCAS GROUP 2 | 2007 RE SUL T S 3 | PHARMACE UT ICAL SYNT HE SIS 4 | F INE SPE CIAL IT Y CHE MICAL S 5 | RE SE ARCH & DE VE L OPME NT 6 | OUT L

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15th F e b rua ry 2008

Presentation

  • f 2007 Results
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PCAS – F e b rua ry 2008| 2

CONT E NT S

1 | PCAS GROUP 2 | 2007 RE SUL T S 3 | PHARMACE UT ICAL SYNT HE SIS 4 | F INE SPE CIAL IT Y CHE MICAL S 5 | RE SE ARCH & DE VE L OPME NT 6 | OUT L OOK

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SLIDE 3

1 |

PCAS GROUP

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PCAS – F e b rua ry 2008| 4

PCAS GROUP

A c le ar

position c e ntr e d on 2 ac tivitie s

Phar mac e utic al Synthe sis F ine Spe c iality Che mic a ls

Manufacturer of complex, very high-added value molecules, sold around the world and applying leading-edge technology

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PCAS – F e b rua ry 2008| 5

PCAS An inte r national Gr

  • up

Site s loc ation

4 Pha rma c e utic a l Synthe sis site s (a ll F DA inspe c te d) 2 po lyva le nt site s (Bo urg o in a nd Co ute rne : I SO 9001) 2 F ine Spe c ia lity Che mic a ls site s (Sa int Je a n I SO 9001) He a dq ua rte r situa te d in L

  • ng jume a u (ne a r Pa ris)
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PCAS – F e b rua ry 2008| 6

PCAS GROUP An inte r national Gr

  • up

Sale s br e ac kdown

Phar mac e utic al Synthe sis : 109.4M€ F ine Spe c iality Che mic als: 75.9M€

2007Ne t Sa le s : 185.3 M€

Asia- Pac ific 17.0% Europe 35.8% Franc e 34.3% Othe rs 2.6% North Ame ric a 10.3%

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PCAS – F e b rua ry 2008| 7

PCAS GROUP

An e xc e ptional por tfolio of c lie nts Pharmaceutical Synthesis

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PCAS – F e b rua ry 2008| 8

PCAS GROUP

An e xc e ptional por tfolio of c lie nts

Perfumery-Aroma-Cosmetics Performane Chemicals New Technologies

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PCAS – F e b rua ry 2008| 9

PCAS GROUP

Histor y

  • 1962

PCAS c re a te d b y 2 F re nc h e ntre pre ne urs

  • 1982

PCAS jo ins Sta uffe r Che mic a ls the n Akzo No b e l

  • 1992

T he Dyna c tion Group a c quire s PCAS fo r 8.3 M€

  • 1993

Ac q uisitio n o f Sa int- Je a n Photoc himie (Que b e c )

  • 1995

Introduc tion o n the « se c o nd ma rc hé » o f the Pa ris sto c k e xc ha ng e va luing PCAS a t 23 M€

  • 1996

SBS c re a te d, spe c ia lising in the pro duc tio n o f a c role in de riva tive s

  • 1998 Ac q uisitio n o f Se lo c F

ra nc e (L

ima y) spe c ia lising in Pha rma c e utic a l Synthe sis (no w me rg e d

with PCAS)

  • 1999 Ac q uisitio n o f PCF

(Mine ra l Che mic a ls) a nd o f Ve rno la b

  • 2001 Ac q uisitio n o f E

xpansia, of PCAS F inland a nd o f Cre a pha rm

  • 2004

Sa le o f Ve rno la b to the SGS Gro up – 85% purc ha se o f VL

G Che m (Sa no fi-Ave ntis ma inta ining

15% o f the c a pita l) – PCAS Ame r

ic a Inc c re a te d

  • 2005 Sa le o f Cre a pha rm
  • 2006

PCAS Biosolution c re a te d – inte re st ta ke n in Pro té us (6%)– Sa le o f a ma jo rity sta ke in PCF

to ma na g e me nt

  • 2007 I

nte re st in Proté us c a pita l inc re a se d to 32% - I nte re st in PCF c a pita l re duc e d to 19.9%

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PCAS – F e b rua ry 2008| 10

PCAS GROUP

Shar e holding

67,79% 0,95% 29,61% 1,65% Dyna c ti

  • n

Ma na g e me nt Pub l ic T re a sury sto c ks

Source : TPI 31st December 2007

I sin c o de F R 0000053514 – PCA As o f 31st Ja nua ry 2007 : Numb e r o f sha re s 13 003 882 Ma rke t c o mpa rtme nt E uro ne xt C Pric e 4,10 € Ma rke t va lue 53,3 M€

Capital distribution Other information

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PCAS – F e b rua ry 2008| 11

PCAS GROUP

L e gal str uc tur e

PCAS SA

L

  • ng jume au (E

sso nne ) Co ute rne (Orne ) Bo urg o in (I sè re ) L imay (Yve line s) Site s

St Je an Photoc himie

St-Je an/Ric he lie u Site (Canada)

100 % E xpansia

Aramo n Site (Gard)

100 % PCAS F inland Oy

T urku Site (F inlande )

100 % PCAS Ame ric a Inc

(Sale s Org anisatio n - USA)

100 % Soc ié té Bé ar naise de Synthè se

Mo ure nx Site (Pyré né e s Atlantique s)

100 % VL G c he m

Site de Ville ne uve - la-Gare nne Site (Hauts de Se ine )

85 %

(Sano fi Ave ntis 15 %)

Phar mac ie Ce ntr ale de F ranc e

L a Vo ulte / Rhô ne Site (Ardè c he )

19,9 %

(Manag e me nt 80,1 %)

PCAS Biosolution

( L

  • ng jume au and de Nîme s site s )

50 %

(Pro té us 50 %)

Pr

  • té us

(Nîme s)

32 % 50 %

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PCAS – F e b rua ry 2008| 12

PCAS GROUP

Or ganisation c har t

Ge ne r al Dir e c tor Suppor t F unc tions Chairman Sa le s & Ma rke ting USA Non e xc lusive Purc hasing Sa le s & Ma rke ting USA E xc lusive Sa le s & Ma rke ting E ur

  • pe

Asie Ville ne uve L a Gare nne L ima y Ar amon T urku (F INL AND) Sa le s & Ma rke ting F r agr anc e - F lavour s- Cosme tic s Sa le s & Ma rke ting Ne w T e c hnologie s Sa le s & Ma rke ting Pe r for manc e c he mic als Coute rne Bour g oin- Ja llie u Moure nx SJPC (CANADA) F ine Spe c iality Che mic als Pharma c e utic al Synthe sis Administr ation & F inanc e Re se ar c h & De ve lopme nt IT Quality Assur anc e Re gulatory Affair s

Huma n Re so urc e s Co mité E xé c utif

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2007 RE SUL T S

2 |

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PCAS – F e b rua ry 2008| 14

2007 RE SUL T S 2007 Signific ant E ve nts

January 2007 June 2007 October 2007 December 2007 1st January 2008 Project launch to implement new ERP software (JD Edwards). 1.7 M€ investment. Interest in Protéus capital increased to 32%. Possibility to increase to around 50% (BSA). New debt structure :

  • 36 M€ loan over 6 years
  • 20 M€ OBSAR

Interest in PCF capital reduced to 19.9% Start up of new ERP software (JD Edwards) Major cooperation agreement signed in the field of organic photovoltaïcs.

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PCAS – F e b rua ry 2008| 15

2007 RE SUL T S

All financ ial indic ator s ar e at gr e e n

Re sults stro ng ly inc re a sing a nd

c o nfo rming to o b je c tive s : . E BI T : +51.9 % to 12.0 M€ . E BI T DA : + 22.4 % to 26.8 M€

Ne t sale s :

. + 3.9 % a t 185.3 M€ . + 5.3 % a t a c o nsta nt e xc ha ng e ra te

Ne t de bt re duc e d fro m 79.0 M€

to 70.1 M€

Obje c tive s : ROC : 8 % of ne t sale s E BIT DA : 15 % of ne t sa le s

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PCAS – F e b rua ry 2008| 16

2007 RE SUL T S 2007 Ne t Sale s

I n millio ns o f e uro s

2007 2006

Ne t sa le s

Phar mac e utic al Synthe sis F ine Spe c iality Che mic als

185.3

109.4 75.9 100 %

59.1% 40.9%

178.3

109.9 68.4 100 %

61.7% 38.3%

  • 11% g ro wth in ne t sa le s fo r the F

ine Spe c ia lity Che mic a ls po le

  • Bo o ste d b y the Pe rfume ry-Aro ma -Co sme tic s a nd Pe rfo ma nc e Che mic a ls a c tivitie s
  • Pha rma c e utic a l Synthe sis po le ’ s ne t sa le s a re sta b le

178,3 185,3

+ 3.9 % (+ 5.3 % at a constant exchange rate)

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PCAS – F e b rua ry 2008| 17

2007 RE SUL T S 2007 E BIT and E BIT DA

7,9 12,0

21,9 26,8

+ 51.9 % + 22.4 % EBIT EBITDA

Greatly increasing profitability – first effects of actions carried out :

. margin improvement . cost reduction

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PCAS – F e b rua ry 2008| 18

  • Re payme nt of the 2007 due amount re garding our forme r syndic ate d

loan for 4.8 M€

  • A ne w syndic a te loa n for 36 M€ ove r 6 ye a rs
  • An OBSAR issue (Bonds with e quity wa rra nts a tta c he d) for a ne t a mount
  • f 19.3 M€:
  • No mina l unit va lue : 600 e uro s
  • Numb e r o f OBSAR : 33 333
  • Numb e r o f BSAR : 3 333 300
  • E

xpiry : 31st De c e mb e r 2012

  • I

nte re st’ s ra te : 5,25%

  • Re pa yme nt pric e : 606 e uro s
  • BSAR e xe rc ise pric e : 6.90 e uro s
  • BSAR e xe rc ise pe rio d: a t a ny time up to the 31st De c e mb e r 2012

Conforming to c urre ntly e nforc e d IF RS rule s, this hybride de bt inte g ra te s a de bt pa rt a nd a n e quity pa rt whic h rise to 17.6 million e uros a nd 1.3 million e uros (ta king a c c ount de ffe re d ta xe s) a s of 31st De c e mbe r 2007, re spe c tive ly.

NE W DE BT ST RUCT URE

Re payme nt of 58.8 M€ syndic ate loan

79,0 70,1

  • 11.3 %
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PCAS – F e b rua ry 2008| 19

2007 RE SUL T S Ke y F igur e s

I n millio ns o f e uro s

2007 2006 2005

Ne t sale s 185.3 178.3 170.6 E BI T DA

as a pe r c e ntage of ne t sale s 26.8 14.5 % 21.9 12.3% 18.4 10.8%

De pre c ia tio n a nd pro visio ns (14.8) (14.0) (14.0)

Cur r e nt ope r ating inc ome (1) as a pe r c e ntage of ne t sale s 12.0 6.2 % 7.9 4.4% 3.9 2.31%

Othe r o pe ra ting inc o me and e xpe nse s (2) (3.0) (0.8) (0.5) Ne t inte re st e xpe nse o n de b t (4.7) (4.0) (3.9)

Ne t pr

  • fit

2.7 1.2 (2.5) Ne t pr

  • fit – exc luding impac t of fr

e e shar e s 4.7 1.2 (2.5)

I nve stme nts 10.0 9.2 9.1 Ne t de b t 70.1 79.0 82.5 E q uity 75.3 69.1 68.9

Ge ar ing 0.93 1.14 1.20

EBITDA : + 22.4 % ROC : + 51.9 %

(1) Including Research Tax Credit previously known as a reduction in tax charges (2) In 2007 : 2.0M€ for the free share distribution plan and 1.0M€ for restructuring costs In 2006 : restructuring costs In 2005 : tangible fixed assets depreciations

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PCAS – F e b rua ry 2008| 20

2007 RE SUL T S

Consolidate d inc ome state me nt E c onomic pr e se ntation

I n millio ns o f e uro s

2007 2006 Ne t sale s

Phar mac e utic al Synthe sis F ine Spe c iality Che mic als

185.3

109.4 75.9 100 %

60.3% 39.7%

178.3

109.9 68.4 100 %

63.4% 36.6%

Purc ha se s (ra w ma te ria ls a nd c ha ng e in inve nto ry)

(66.2)

35.2%

(63.1)

33.1% Sta ff c o sts

(54.2)

29.9 %

(53.7)

31.1 % E xte rna l c o sts

(35.5)

18.7 %

(35.4)

19.8 % T a xe s

(5.6)

2.9 %

(7.0)

4,0 %

E BIT DA 26.8 14.5% 21.9 12.3%

De pre c ia tio n a nd pro visio ns

(14.8)

8.0 %

(14.0)

7.9 % Curre nt ope rating inc ome

Phar mac e utic al Synthe sis F ine Spe c iality Che mic als

12.0

7.3 4.7

6.5 %

6.7% 6.2%

7.9

7.4 0.5

4.4 %

6.7% 0.7%

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PCAS – F e b rua ry 2008| 21 I n millio ns o f e uro s

2007 2006 Curre nt ope rating inc ome 12.0 7.9

Othe r o pe ra ting inc o me a nd e xpe nse s (*) (3.0) (0.8)

Ope r ating inc ome 8.9 7.1

Ne t inte re st e xpe nse o n de b t (4.7) (4.0) I nc o me ta x e xpe nse (0.6)

  • Ne t r

e sult of non- c ur r e nt asse ts inte nde d to be sold

  • (2.0)

Ne t pr

  • fit

2.7 1.2

2007 RE SUL T S Consolidate d inc ome state me nt

(*) in 2007 : 2.0 M€ for the free shares plan and 1.0 M€ for restructuring costs (*) in 2006 : restructuring costs

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PCAS – F e b rua ry 2008| 22

2007 RE SUL T S Consolidate d balanc e she e t

I n millio ns o f e uro s

2007 2006

No n-c urre nt a sse ts 101.5 103.1 Curre nt a sse ts 91.0 97.1 Ca sh a nd c a sh e q uiva le nts 2.8 3.2

T

  • ta l a sse ts

195.3 203.4

I n millio ns o f e uro s

2007 2006

T

  • ta l e q uity

75.3 69.0 OBSAR 17.6 0.0 L

  • ng -te rm de b t

55.4 82.3 Othe r lia b ilitie s 47.0 52.1

T

  • ta l lia bilitie s

195.3 203.4

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PCAS – F e b rua ry 2008| 23

2007 RE SUL T S Consolidate d state me nts of c ash flows

I n millio ns o f e uro s

2007 2006 Ne t c ash pr

  • vide d by ope r

ating ac tivitie s 23.3 18.5

  • f whic h c ash flo w

24.4 19.5

  • f whic h c hang e s in wo rking c apital

0.3 0.4

  • f whic h inc o me tax

(1.4) (152)

Ne t c ash pr

  • vide d by inve sting ac tivitie s

(11.2) (7.8)

  • f whic h pro pe rty, plant & e q uipme nt and intang ib le s

(10.0) (9.2)

  • f whic h financ ial asse ts

(1.2) (1.7) Of whic h ne t e ffe c t o f c hang e s in the sc o pe o f c o nso lidatio n

  • 3.1

Ne t c ash pr

  • vide d by financ ing ac tivitie s

(10.5) (6.0)

  • f whic h ne t de b t variatio n

(5.5) (2.0)

  • f whic h ne t inte re st e xpe nse in de b t

(4.7) (4.01.7)

Ne t c ha ng e in c a sh a nd c a sh e quiva le nts 1.6 4.7

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PHARMACE UT I CAL SYNT HE SI S

3 |

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PCAS – F e b rua ry 2008| 25

3 T YPE S OF INT E RNAT IONAL CUST OME R

  • Pha rma c e utic a l

L a b o ra to rie s (60%)

  • Ge ne ric Ma nufa c ture rs (30%)
  • Sta rt-ups (10%)

PHARMACE UT ICAL SYNT HE SIS

6 PRODUCT ION SIT E S

c GMP

  • L

ima y

  • Ara mo n
  • VL

G

  • PCAS F

inla nd

ISO

  • Co ute rne
  • Bo urg o in

Po lyvale nt site s

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PCAS – F e b rua ry 2008| 26

PHARMACE UT ICAL SYNT HE SIS

Signific ant e ve nts

  • Sta b le Ne t sa le s
  • Ac tio n pla n a dhe re d to c o nc e rning site c o st re duc tio n
  • Pa rtne rship

a c tivity (*) re duc e d in 2007 c o mpe nsa te d b y Custo m Ma nufa c turing (ne w pro duc ts) (*) a nd Ge ne ric s (c o mme rc ia l pro spe c ting )

Ac tivity Split

  • Custo me r-Pa rtne r a c tivity (- 13 %)
  • Ge ne ric a c tivity (+ 16 %)
  • Custo m Ma nufa c turing a c tivity(+ 6 %), inc luding stro ng sa le s to the US ma rke t
  • Sta rt-up o f pro je c ts a nd invo ic ing invo lving PCAS Bio so lutio n

Site s

  • Cha ng e to 5 shifts (7 da ys a we e k) a t the PCAS F

inla nd site to me e t a hig h de ma nd in Custo m Ma nufa c turing

  • Re duc tio n in a c tivity a t the E

xpa nsia site (Ve ino to niq ue s no lo ng e r b e ing re imb urse d) a nd a t VL G Che m site (sto c k re duc tio n)

  • Ve ry sta b le a c tivity a t the L

ima y site to re spo nd to Ge ne ric sa le s a nd the la unc hing o f ne w pro duc ts (*) Custom Manufacturing : made-to-measure synthesis activity of products for the pharmaceutical industry Partnerships : previous site owners

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PCAS – F e b rua ry 2008| 27

PHARMACE UT ICAL SYNT HE SIS

Outlook

  • L

e ss tha n fa vo ura b le impa c t during the ye a r due to o ur « c usto me r-pa rtne rs » sto c k re duc tio n pla ns

  • Gro wth in R&D invo ic ing o f pha se 1 a nd 2 pro je c t la unc he s
  • Ong o ing

ne g o tia tio ns c o nc e rning two impo rta nt API (*) c o ntra c ts a s we ll a s « pre fe rre d supplie r » c o ntra c ts with ma jo r ma rke t pla ye rs

  • Pro spe c ting ne w ma rke ts (Russia , So uth Ame ric a ,the Middle E

a st, Asia )

  • Optimisa tio n o f Supply Cha in a nd pro duc tio n a t c GMP site s
  • Re c o ve ry

e xpe c te d a t E xpa nsia site in 2008 fo llo wing the intro duc tio n o f ne w pro duc ts whic h will c o mpe nsa te fo r the de c re a se in pro duc tio n o f ve ino to nic s.

(*) API : Active Pharmaceutical Ingredient

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F I NE SPE CI AL I T Y CHE MI CAL S

4 |

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PCAS – F e b rua ry 2008| 29

3 ACT IVIT IE S

  • Pe rfo rma nc e Che mic a ls

(30 %)

  • Pe rfume ry – Aro ma –

Co sme tic s (35 %)

  • Ne w te c hno lo g ie s

(35 %)

F INE SPE CIAL IT Y CHE MICAL S

4 PRODUCT ION SIT E S

  • Co ute rne
  • Bo urg o in-J.
  • Mo ure nx
  • Sa int-Je a n sur Ric he lie u

Po lyvale nt site s

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PCAS – F e b rua ry 2008| 30

Signific ant E ve nts

  • Gro wth in ne t sa le s: + 7.1%
  • Pro fit impro ve me nt thro ug h o ptimising

c a pa c ity a nd the pro duc t mix

  • Dive rsific a tio n
  • f

sulfo na te (*) a pplic a tio ns in lub ric a nts

  • Co nso lida ting

ma rke t po sitio n

  • f

la rg e a c c o unts (ma de -to -me a sure )

  • Ne w fo rmula tio n de ve lo pme nt

fo r fluids o f ma te ria l tra nsfo rma tio n

F INE SPE CIAL IT Y CHE MICAL S Pe rforma nc e Che mic a ls

Outlook

  • Ac c o mpa nying the de ve lo pme nt o f o ur

la rg e inte rna tio na l c usto me rs e spe c ia lly in Asia

  • De ve lo pme nt o f E

a st E uro pe a nd Russia n ma rke t pro spe c tio n

  • Co ntinuing

to a dd va lue to

  • ur

te c hno lo g ie s a nd industria l e q uipme nt

  • Co ntinuing to impro ve pro c e sse s

(*) Sulfonates : organic molecule containing sulphur whose polarity brings specific performances

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PCAS – F e b rua ry 2008| 31

Signific ant E ve nts

  • Ve ry

stro ng g ro wth in ne t sa le s : + 30.0%

  • Sta b le a c tivity in a ll fie lds a nd

in pa rtic ula r in c o sme tic c usto m ma nufa c turing

  • So lid

a c tivity b y distrib ute rs, no ta b ly in Ja pa n

  • Pro duc t po rtfo lio re vie w

F INE SPE CIAL IT Y CHE MICAL S Pe rfume ry- Aroma - Cosme tic s F

  • re c ast
  • Optimisa tio n o f pro c e sse s
  • Ne w
  • ppo rtunitie s

with the pro fe ssio n’ s le a ding c o mpa nie s

  • R&D e ffo rts inte nsifie d to re ne w

pro duc t c a ta lo g ue

  • Wo rking

c lo se ly with stra te g ic distrib uto rs

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PCAS – F e b rua ry 2008| 32

Signific ant E ve nts

  • Go o d

pe rfo rma nc e b y the Ca na dia n sub sidia ry de spite a we a k US do lla r a g a inst a Ca na dia n do lla r (e stima te d impa c t -0.5 M€ o n o pe ra ting inc o me )

  • Rig o ro us se le c tio n o f pro duc t po rtfo lio a nd

e ffo rts in ma na g e me nt: slig ht re duc tio n in ne t sa le s a nd stro ng pro fit re c o ve ry

  • Pa use in the ra pid de ve lo pme nt o f the

mic ro e le c tro nic s industry, fo llo wing the stro ng g ro wth o f 2006, ha s impa c te d the Ca na dia n site

  • Stre ng the ning o f the sa le s te a m a nd No rth

Ame ric a n ma rke t pro spe c tio n

  • I

nte nse pro spe c ting c o nc e rning c usto m ma nufa c turing pro je c ts

F INE SPE CIAL IT Y CHE MICAL S Ne w te c hnolog ie s

Outlook

  • I

nc re a se in ne t sa le s due to ne w c usto m ma nufa c turing pro je c ts c urre ntly in ne g o tia tio n

  • E

xpe c te d inc re a se in de ma nd in the mic ro e le c tro nic s industry in 2008

  • Co ntinuing

the pursuit

  • f

g e o g ra phic a l dive rsific a tio n

  • Re de plo yme nt o f ne w a c tivitie s (c o lo uring s a nd

po lyme rs o f hig h a dde d-va lue , pho to vo lta ic …)

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RE SE ARCH & DE VE L OPME NT

5|

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PCAS – F e b rua ry 2008| 34

PHARMACE UT ICAL SYNT HE SIS: Re minde r: 65 sta ff (20 of whom ha ve PhDs) 9.0 M€ in 2007 92 proje c t re vie ws (320 ste ps)

4 synthe sis la b o ra to rie s + 2 K

ilo -L a b s (Ara mo n & T urku) ) + 3 pilo t wo rk sho ps (GMP-Ara mo n & L ima y + I SO-Co ute rne )

48 e mplo ye e s in the la b o ra to ry, 14 o f who m a re in

a na lytic a l de ve lo pme nt

16 e mplo ye e s in the pilo t wo rksho p(12 GMP e t 4 I

SO 9001)

RE SE ARCH & DE VE L OPME NT

GMP : Good Manufacturing Practices

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PCAS – F e b rua ry 2008| 35

F INE SPE CIAL IT Y CHE MICAL S:

Re minde r:

35 sta ff (12 of whom ha ve PhDs) 3.5 M€ in 2007

45 pr

  • je c t r

e vie ws (77 ste ps) in Pe r for manc e Che mic als 41 r e vie ws in Industr ial Che mic als

No n-GMP synthe sis inte rme dia te s a nd pe rfo rma nc e pro duc ts 1 c e ntra l la b o ra to ry (L

  • ng jume a u : 19 e mplo ye e s)

1 spe c ia lise d la b o ra to ry (Que b e c : 6 e mplo ye e s) 2 pilo t wo rksho ps (Co ute rne + Bo urg o in Ja llie u : 10 e mplo ye e s

RE SE ARCH & DE VE L OPME NT

slide-36
SLIDE 36

PCAS – F e b rua ry 2008| 36

RE SE ARCH & DE VE L OPME NT

Pr

  • je c ts a s of 31st De c e mbe r

2007

58 32 17 194 55 17 63 42 29 286 85 29

50 100 150 200 250 300 350 400

Projets 2007 Etapes 2007 Projets 2006 Etapes 2006

  • Perf. Indust.

Spécialités hors Perf.Indust. Pharma- Synthesis

2007 project reviews: ‘an increased selectivity’

slide-37
SLIDE 37

PCAS – F e b rua ry 2008| 37

PCAS and Biote c hnologie s PCAS and Biote c hnologie s

T he fundame ntals

  • Shift in Pharmaceutical industry

a pplying ne w te c hno lo g ie s kno wn a s « 3rd

g e ne ra tio n »

  • Bio te c hno lo g ie s : a re a l c o ntrib uto r to

de ve lo pme nt just like the disc o ve ry a nd o b ta ining o f ne w « me dic ine c a ndida te s »

A ne w c la ss o f pha rma c e utic a l ing re die nts

« Bio me de c ine » o r the ra pe utic pro te ins (11% o f the wo rld ne t sa le s, 70 M > USD)

T he strate gy

T

  • a pply inno va tive te c hno lo g ie s
  • T
  • b e tte r re spo nd to ma rke t ne e ds

T

  • re spe c t the e nviro nme nt using le ss

a g re ssive re a g e nts whilst c o nta ining c o sts

  • PCAS

Pr

  • té us

PCAS- Biosolution

50 % 50 % 32 %

slide-38
SLIDE 38

PCAS – F e b rua ry 2008| 38

Ac tivitie s

Disc o ve ring , fine -tuning , o ptimising a nd pro duc ing ne w pro te ins De ve lo ping inno va tive pro c e sse s fo r industria l a pplic a tio ns T

wo ma in type s o f pro te ins de ve lo ppe d ::

Ca ta lytic prote ins o r e nzyme s (b io c a ta lyse r) : c he mic a l synthe sis a nd industria l a pplic a tio ns (de te rg e nts, a nima l fo o ds, F ine Che mic a l c o sme tic s, re ne wa b le e ne rg ie s…) T

he ra pe utic prote ins o r b io me de c ine fo r c usto me r use (he a lth, Pha rma c e utic a l)

Pr

  • te us SA

Cre a te d in 1998 b y b io te c hno lo g y spe c ia lists Ba se d in Nîme s o n 2100m² o f la nd (ne a r PCAS-Ar

amon)

E

mplo ye e s : a b o ut 40 pe o ple inc luding sc ie ntists (50% ho ld PhDs o r de g re e s) a nd inte lle c tua l pro pe rty spe c ia lists

Ada pte d e q uipme nt a nd la b o ra to rie s (e ng ine e ring , sc re e ning a t a n a uto ma te d

« HT S » ra te , fe rme nta tio n a nd purific a tio n to pro duc e ta rg e tte d pro te ins,…)

An An industr ial industr ial Biote c h Biote c h

slide-39
SLIDE 39

PCAS – F e b rua ry 2008| 39

Par tne r to Par tne r to innovative innovative industr ie s industr ie s

An e xc lusive c o lle c tio n o f b io dive rsity (no ta b ly o rig ina ting fro m e xtre me e nviro nme nts), a re no wne d e xpe rtise a nd a c o he re nt ra ng e o f o wne d te c hno lo g ie s (E U, US) fo r ::

  • hig h ra te sc re e ning (CL

IPS-O™ )

  • o ptimisa tio n o f pro te ins (E

voSight™, L

  • Shuffling™)
  • pro te in e xpre ssio n (Phe nomic s™)
  • I

mmuno g e nic ity e va lua tio n

Se r vic e s

« Pr

  • te us se r

vic e s for industr y »

Dr

e am’line : o ptimisa tio n o f ta rg e tte d pro te in

pe rfo rma nc e (a c tivity, spe c ific ity, sta b ility, immuno g e nic ity, so lub ility…) Pr

  • d’line : Bio lo g ic a l pro duc tio n a nd se le c tio n o f the b e st

e xpre ssio n syste m fo r o ptima l pro duc tio n o f the pro te ins o f inte re st (e nzyme s o r the ra pe utic pro te ins) Immuno’line: invitro te sts e na b ling o ne to e va lua te the the ra pe utic a l pro te in immuno g e nic ity b e fo re la unc hing c linic a l te sts o n huma n b e ing s

Par tne r s

R&D o f inno va tive b io -pro duc ts a nd b io -pro c e sse s fo r the wo rld-wide ma rke t in c o lla b o ra tio n with le a ding industrie s in the ir fie ld Ve o lia , Adisse o , He nke l, E vo nik -De g ussa , T ha le s…

PCAS- Biosolution :

An e xc lusive pa rtne rship with PCAS fo r the de ve lo pme nt o f c he mo -e nzyma tic synthe sis ro ute s fo r the pro duc tio n o f a c tive ing re die nts o r pha rma c e utic a l inte rme dia te s

Un fle xible busine ss mode l

slide-40
SLIDE 40

PCAS – F e b rua ry 2008| 40

Chimio biocatalytic processes

for the productio of pharmaceutical ingredients (API & intermediates)

PCAS Biosolution, a unique PCAS Biosolution, a unique offe r

  • ffe r

Générique ‘+’ : a generic, for which a patentable (and generally more cost effective) alternative synthesis method or a more efficient formulation method has been developped

PCAS

L e a de r in c he mic a l synthe sis Re no wne d supplie r to the pha rma c e utic a l industry

Pr

  • te us

L e a de r in industria l b io tra nsfo rma tio ns a nd b io c o nve rsio ns

« c ustom » pr

  • je c ts
  • Pilo t sta g e : 1 pro je c t
  • Adva nc e d de ve lo pme nt «: 2 pro je c ts
  • Sc re e ning & o ptimisa tio n: 4 pr
  • je c ts

(o f whic h 3 a re with le a ding pha rma c o mpa nie s)

  • Co lla b o ra tio n ma na g e me nt c o ntra c ts

c urre ntly unde r sig na ture with « ma jo r » pha rma c e utic a l c o mpa nie s a s we ll a s PME s

PCAS pr

  • je c ts
  • Adva nc e d de ve lo pme nt : 2

pr

  • je c ts
  • De ve lo pme nt o f ke y inte rme dia te s

« b uilding b lo c ks »

  • Ne w : de ve lo pme nt o f c hira l

inte rme dia te c a ta lo g ue pro duc ts intro duc e d into the synthe sis o f a c tive ing re die nts o rig ina ting fro m b io c a ta lysise

Customer Typology

  • 1. Custo m

Custo m pro je c ts pro je c ts

  • Orig ina ting fro m c la ssic

ma na g e me nt a g re e me nts, b ut with impro ve me nts to b e ma de to a b io c a ta lysis ste p

  • 2. Owne rship pro je c ts o f the

« « Ge ne ric Ge ne ric + + » » type type

PCAS Biosolution

JV 50/50

slide-41
SLIDE 41

OUT L OOK 2008

6 |

slide-42
SLIDE 42

PCAS – F e b rua ry 2008| 42

OUT L OOK

Obje c tive s : Pr

  • gr

e ss of 2007 – 2009 plan

F

ina nc ia l

Pro fita b ility:

2007

F

ina nc ia l struc ture : Ne w lo a n a nd OBSAR (o ng o ing plan o n the wo rking c apital)

I

ndustria l & c o mme rc ia l

Pro duc tivity

Ne w I

T syste m: o pe ra tio na l a s o f 1st Ja nua ry 2008

I

mple nta tio n o f a « le a n ma nufa c turing » a ppro a c h in 4 pla nts: la unc h o f tra nsve rsa l site s, to b e c a rrie d o ut during 2008 F ina nc ia l ta rg e ts : - 5 M€ o n c o sts a nd - 5 M€ o n inve nto rie s

slide-43
SLIDE 43

PCAS – F e b rua ry 2008| 43

OUT L OOK

Obje c tive s: Pr

  • gr

e ss of 2007 – 2009 plan

Co mme rc ia l

  • Stre ng the ning o f sa le s drive
  • Optimisa tio n o f mix-pro duits

R&D

  • Co ntinuing a c tio ns to impro ve e ffic ie nc y o f R&D spe nding
  • Co ntinuing the de ve lo pme nt o f I

so g e l (ne w pro duc t with iso la ting pro pe rtie s : the rma l a nd so und a re pa rtic ula rly inte re sting )

  • As a re minde r, PCAS will fully b e ne fit fro m the ne w fre nc h ta x la w c o nc e rning

Re se a rc h E xpe nse s Cre dit fo r 2008 (a dditio na l pro fit a ro und 1.6M€)

slide-44
SLIDE 44

PCAS – F e b rua ry 2008| 44

OUT L OOK

Obje c tive s : Pr

  • gr

e ss of 2007 – 2009 plan

  • Stra te g ic te c hno lo g ic a l pa rtne rs
  • Pro té us :

I nitia l te c hnic a l suc c e ss o f PCAS Bio so lutio n. Sig nific a nt c o ntra c t sig ne d b y Pro té us

  • Sa int-Je a n Pho to c himie : Ma jo r c o -o pe ra tio n c o ntra c t in the fie ld o f o rg a nic

pho to va lta ïc s sig ne d

  • Othe rs :

Curre ntly unde r re vie w

  • Sha re ho lding
  • Pre pa ring fo r the me rg e r with Dyna c tio n : de b t re duc tio n o ng o ing a t

Dyna c tio n

slide-45
SLIDE 45

PCAS – F e b rua ry 2008| 45

OUT L OOK

Re minde r of financ ial tar

ge ts

ROC : 8% o f ne t sa le s

(Re sults : 2007 = 6.5%, 2006 = 4.4%)

E BI T DA : 15% o f ne t sa le s

(Re sults : 2007 = 14.5%, 2006 = 12.3%)

slide-46
SLIDE 46

PCAS – F e b rua ry 2008| 46

DYNACT ION & PCAS ST OCK L iste d on E ur

  • ne xt c ompar

tme nt C

Decrease compared to June 2006: -5.4% Decrease compared to December 2006: -1.8% Decrease compared to June 06 : -2.4 % Increase compared to December 2006 : +5.08%

Number of Dynaction shares: 3 295 842 Number of PCAS shares: 13 003 882

Dyna c tio n -Pric e

13,56 12,60 16,18 14,95

2 4 6 8 10 12 14 16 18

June 06 Dec 06 June 07 T

  • d a y

PCAS- Pric e

5,20 5,01 6,30 4,92

1 2 3 4 5 6 7

juin-06 déc -06 juin-07 'déc -07

slide-47
SLIDE 47

PCAS – F e b rua ry 2008| 47

PCAS CAC SMAL L 90

slide-48
SLIDE 48

PCAS – F e b rua ry 2008| 48

PCAS Stoc k Mar ke t Capitalisation

22,9 22,0 53,6 77,6 135,2 109,6 144,0 175,2 120,0 84,8 82,4 84,2 66,2 62,4

20 40 60 80 100 120 140 160 180 200 Intro 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 '2007

slide-49
SLIDE 49

PCAS – F e b rua ry 2008| 49

DYNACT ION Stoc k Mar ke t Capitalisation

51,1 68,4 85,7 84,7 97,0 103,6 84,7 67,2 64,6 55,2 56,0 40,7 42,0

20 40 60 80 100 120 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 '2007

slide-50
SLIDE 50

T hank you for your atte ntion

Ne xt me e ting : Sha re ho lde rs’ me e ting 30th April 2008