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Prayon Inc.'s activities in the special glass segment continued to buoy up business, with production

reaching a record high during the financial year.

Levels of activity in the PRT and Profile technological divisions were in line with forecasts.

The results recorded by Silox in 2015 remained very positive, sustained by the excellent performance

of its subsidiaries Transpek-Silox, JGI and SNCZ.

Our partner Umicore's shares in beLife were transferred to Prayon in January 2016.

A formalized partnership agreement with the Chinese company Pulead that is currently being examined

by the Chinese authorities covers lithium iron phosphate (LFP - LiFePO


), for which Prayon has

obtained operating licenses from the alliance LiFePO


+ C and developed technologies that the new

joint venture will be able to exploit. Overall, we estimate that the money tied up in beLife and beLife

Intermediates, with Prayon's share totaling €10.5 million, will generate enough cash flow to fully justify

keeping these fixed assets at their balance-sheet value based on projects planned by this joint venture

and other potential projects.

Some risks, particularly those relating to accidents, are adequately insured. In most cases, preventive

measures and alternative scenarios have been drawn up to minimize the scope of any ensuing damage.

Moreover, where possible financial instruments are regularly used to limit normal business risks or risks

relating to fluctuating exchange rates, interest rates or prices of certain materials, particularly in the

energy sector.

Chemicals groups like Prayon are exposed to numerous known risks:

■ market risks:

customer relocation;

issues relating to substitution or reformulation in the case of some applications;

supply and demand imbalances, especially caused by the appearance of new producers;

■ supply risks:

a sudden boom in demand or increased scarcity of certain raw materials, energy or logistical


geopolitical tensions or crises;

■ industrial risks:

accidents in production plants or when transporting hazardous goods;

environmental damage;

■ regulatory risks:

operating licenses and conditions;

restrictions on the use of certain products;

administrative and tax requirements;

provisions of the REACH Regulation.