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NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial Officer

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Page 1: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

NUPLEX INDUSTRIES LIMITEDRESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012

17 AUGUST 2012

Emery Severin, Chief Executive OfficerIan Davis, Chief Financial Officer

Page 2: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

PRESENTATION AGENDA

1. Group Overview

2. Financial Results

3. Segment Results

4. Strategy Update & Outlook

2

Page 3: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

1. GROUP OVERVIEW

Page 4: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

NUPLEX OVERVIEW

• 1,800 employees, 26 manufacturing sites in 11 countries

• Sales in over 80 countries

• Trusted supplier status achieved through consistently delivering to customers

– Innovative products that meet their challenges

– Post sales R&D support

– High quality, ‘on specification’ products

– Security of supply

– Cost competitive offering

• Leading positions

– ANZ: leading decorative and composite resins producer

– Asia: most extensive independent manufacturing network in the region

– EMEA: top 4 resins producer and leading solvent borne producer

– Americas: leading resins producer in niche high performance metal markets, such as vehicle refinish

• 2 years into 3 year strategy to strengthen Nuplex and position it for future growth through improving operational efficiency, consolidating leading market positions and expanding in emerging markets

Leading, trusted global resins manufacturer and agency & distribution business in ANZLeading, trusted global resins manufacturer and agency & distribution business in ANZ

4

Page 5: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

1. Per million hours worked 2. Earnings before interest, tax, depreciation and amortisation 3. Net profit after tax attributable to equity holders of the parent company4. As defined by earnings before interest, tax and unusual items divided by average funds All figures are in NZD unless otherwise stated

FY12 FINANCIAL HIGHLIGHTS

5

SAFETY

Lost Time Injury Frequency Rate 2.51 up

Total Reportable Injury Rate 9.01 down

SALES REVENUE

$1, 615.9m up 3%

EBITDA2

$131.0m flat

NET PROFIT AFTER TAX3

Reported $62.5m down 6%

EARNINGS PER SHARE

31.8 cents down 7.0%

DIVIDEND PER SHARE

11 cents unchanged

RETURN ON FUNDS EMPLOYED4

13.0% down from 15.8%

WORKING CAPITAL TO SALES RATIO

16.5% up from 15.1%

��

Page 6: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

Constant currency NPAT inline with previous year

Constant currency NPAT inline with previous year

• Gearing increased to 28%, due to acquisitions of Viverso (€69.3m3) and Acquos’s masterbatch operations (A$20.9m3)

• Raised US$105m in US Private Placement market

FY12 RESULTS OVERVIEW

6

EBITDA inline with December ‘11 guidanceEBITDA inline with December ‘11 guidance

Resilient EBITDA from underlying operationsResilient EBITDA from underlying operations

Strong balance sheet Strong balance sheet

Dividend maintained Dividend maintained

1. Calculated by translating results into New Zealand dollars at the exchange rate applicable during the prior corresponding period2. German based resins manufacturer acquired from Bayer MaterialScience, acquired 31 December 20113. Final acquisition price paidAll figures are in NZD unless otherwise stated

• NPAT $62.5m, down 6% year on year (down 1% constant currency)

• Includes share of Fibrelogic losses of $3.7m

• $3.6m in unusual items largely due to Viverso acquisition costs

• Full year dividend maintained inline with prior year at 21 cents per share

• DRP reinstated

• 66% payout ratio inline with Board’s Dividend Policy

SOLID PERFORMANCE FROM UNDERLYING OPERATIONS IN CHALLENGING CONDITIONS SOLID PERFORMANCE FROM UNDERLYING OPERATIONS IN CHALLENGING CONDITIONS

• Sales up 2.6% due to contribution of acquisitions

• EBITDA $131.0m in line with prior year $130.9m (up 5% constant currency1)

– Includes six months of EBITDA from acquired Viverso2 operations

• EBITDA ex Viverso $120.6m, down 8% year on year (down 4% constant currency)

– Volumes down 5% year on year largely due to lower ANZ Resin segment volumes (down 12%)

– Mitigated by: (1) Increase in unit margins (2) NuLEAP benefits (3) Cost control (4) Existing EMEA operations EBITDA flat (up 8% constant currency), Americas up 11% (up 18% constant currency )

Resilient underlying EBITDA in challenging market conditions Resilient underlying EBITDA in challenging market conditions

Page 7: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

1

Viverso

3 10

FY12 EBITDA

FY12FY11ResinsVolume

UnitMargin

Specialties Sales

Inflation@ 4%

NuLEAPCosts Non recurring

Masterbatch FX

130.9 131.0

Margin improvement, cost control, NuLEAP benefits and Viverso offset the impact of tough trading conditions and FX

Margin improvement, cost control, NuLEAP benefits and Viverso offset the impact of tough trading conditions and FX

7`

$M

(26) 145 (6)(14)(5)18

Other

ANZ

All figures are in NZD unless otherwise stated

Page 8: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

• Resins segment

‒ Constant currency unit margins up 6% as recovered past period raw material costs

‒ Excluding Viverso, fixed costs up 1.2% on constant currency basis, up less than inflation

FY12 OPERATIONAL HIGHLIGHTS

8

Disciplined cost control and margin management

Disciplined cost control and margin management

NuLEAP deliveringNuLEAP delivering

Viverso integration on track, EBITDA ahead of forecast

Viverso integration on track, EBITDA ahead of forecast

Growing in emerging markets Growing in emerging markets

ANZ review underwayANZ review underway

All figures are in NZD unless otherwise stated

• Strengthened Nuplex EMEA – now a top 4 resins producer and the leading solvent borne resins producer

• Final acquisition price paid €69.3m, total acquisition cost €75m

• €6.3m EBITDA contribution ahead of forecast €5m

• Integration on track

• Review objective: Align ANZ operations to the variety of through the cycle demand conditions

• Update expected during December 2012 quarter

• Asia: progressed plan to increase regional capacity by 50% by end FY14

‒ Vietnam: Commissioned new capacity to underpin market leading position in decorative resin

‒ China: Permitting for Changshu site continued. Construction expected towards end 2012

• Russia: Progressing low risk entry via agreement with local company to form a JV

SOLID PERFORMANCE FROM UNDERLYING OPERATIONS IN CHALLENGING CONDITIONS SOLID PERFORMANCE FROM UNDERLYING OPERATIONS IN CHALLENGING CONDITIONS

• $14m incremental benefits ahead of $10m target contributing to

‒ Better gross margins through procurement

‒ Benefits of sales initiatives

‒ Costs contained

Focused on cost control, margin management and executing our strategy to strengthen and grow NuplexFocused on cost control, margin management and executing our strategy to strengthen and grow Nuplex

Page 9: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

GEOGRAPHIC AND PRODUCT DIVERSITY

1. Includes 6 months of Viverso2. Includes ANZ based Pulp and Paper and Construction Products 3. Includes 9 months of Aquos’ masterbatch operations

9

FY12 SALES BY SEGMENT AND BUSINESS

FY12 SALES BY REGION FY12 EBITDA BY REGION

CoatingResins1

66%

Specialties15%

Masterbatch4%3

Other 4%2

New Zealand

10%

Americas9%

Australia 34%

Asia16%

New Zealand

5%Americas

12%

Australia 25%

Asia21%

Europe, Middle East and Africa

31%

Europe, Middle East and Africa

37%

Page 10: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

� Total Reportable Injury Rate (TRIR)

– 30% improvement , declined to 9 per million hours worked

– Americas had no Reportable Injuries

� Lost Time Injury Frequency Rate (LTIFR)

– Increased to 2.5 per million hours worked

– No Lost Time Injuries

• At 21 of 26 sites

• In Asia or US

• Progress in building ‘Zero Harm’ culture

– Additional SHE headcount

– DuPont® Safety Management Systems for Leadership Training

– Safety observation program introduced

– More comprehensive Personal Protective Equipment Policy introduced

9

0

5

10

15

20

25

30

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

2.5

0

2

4

6

8

10

12

14

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

LOST TIME INJURY FREQUENCY RATE PER MILLION HOURS WORKED

TOTAL REPORTABLE INJURY FREQUENCY RATE PER MILLION HOURS WORKED

SAFETY

10

Page 11: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

2. FINANCIAL RESULTS

Page 12: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

FINANCIAL HIGHLIGHTS

12

$M FY12 FY11 CHANGE %

Sales 1,615.9 1,575.0 2.6

EBITDA 131.0 130.9 flat

Depreciation & amortisation (27.8) (22.4) 24.1

EBIT 103.2 108.5 (4.9)

Interest (14.0) (16.6) (15.7)

Tax on operating profits (19.3) (23.2) (16.8)

Unusual items after tax (3.6) (1.4) 157.1

Share of associates (1.8) 1.9 (194.7)

Minority interests (2.0) (2.7) (25.9)

NPAT attributable to equity holders of parent company

62.5 66.5 (6.0)

All figures are in NZD unless otherwise stated

Page 13: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

• Working capital to sales ratio

– 16.5% includes 12 months of Viversoworking capital, 6 months of sales

– 15.8% excluding Viverso

– Inline with target range of 15 to 17%

• Invested during FY12

– Acquisition expenditure $130.5m

– Stay in business capex $19.2m

� 84% of depreciation

– Organic growth capex $12.3m

� Vietnam expansion $6.1m

� China new site $2.4m

‒ Depreciation $22.8m

WORKING CAPITAL & CAPITAL EXPENDITURE

All figures are in NZD unless otherwise stated

WORKING CAPITAL AS A PERCENTAGE OF

12 MONTH ROLLING SALES

13

16.5%

15.8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Jun 08 Jun 09 Jun 10 Jun 11 Jun 12includingViverso

Jun 12existing

operations

Target range 15 to 17%

Page 14: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

14

FUNDING & GEARING

All figures are in NZD unless otherwise stated

NET DEBT TO NET DEBT PLUS EQUITY RATIO• $220m net debt as at 30 June 2012, up from $74m

– Increase due to acquisition of Viverso and Acquosmasterbatch operations

• Lowered funding costs via renegotiation of bank facilities in August 2011

– Total facilities reduced to A$200m from A$300m

– Average cost in FY12 approximately 7%, down from 12% in FY11

• Successfully raised US$105m in the US Private Placement market for the first time

– 7 year term, mature 2019

– Coupon rate 6.125%

– Settled 31 July 2012

• NZ$52.6m Capital Notes to be redeemed September 2012

28%

0%

10%

20%

30%

40%

50%

Jun 08 Jun 09 Jun 10 Jun 11 Jun 12

Target range

20 to 35%

Page 15: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

3. SEGMENT RESULTS

Page 16: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

1. As measured by sales minus (raw material costs + inwards freight costs) divided by tonnage 2. Costs associated with Composites $3m restructuring charge in FY11

• Unit margins1 up 6% (constant currency) due to margin management

• Margin management, NuLEAP and cost control mitigated impact of lower volumes

RESINS – COST AND MARGIN MANAGEMENT

RESINS EBITDA TO SALES MARGIN (EX VIVERSO)

Compression from constant dollar margin

on higher sales

(0.4)%

Raw material cost recovery

0.7%

FY12FY11

8.4% 8.5%Non

recurring costs2

SG&A costs

(0.1)% 0.2%

1.0%

NuLEAP

Operating costs

(0.1)%Volume

(1.2)%

16

SPECIALTIES

RESINS

Page 17: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

4.9%

0%

5%

10%

FY08 FY09 FY10 FY11 FY12

RESINS – AUSTRALASIA

• Volumes down 12.0%

• A$ EBITDA down 23.3%

– Australian and New Zealand construction sectors at cyclical lows

� Approx. 50% of ANZ Resins end-use exposure

� Conditions deteriorated during the year

– Australian manufacturing and infrastructure activity subdued reflecting ongoing structural shift

� Approx. 50% of ANZ Resins end-use exposure

COATING RESINS

• Pricing actions taken to recover raw material costs

• Market share maintained

• Reduced demand from residential and commercial construction and home renovation market

COMPOSITES

• Ongoing weakness in marine & leisure, infrastructure and transport sectors impacted volumes

• Business restructured

– Realised A$3.6m in annualised cost savings

ANZ SALES (A$)

17

ANZ EBITDA (A$)

A$M

A$M

ANZ EBITDA MARGIN

SPECIALTIES

RESINS

Page 18: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

• Volumes up 4.2% due to Viverso Asian volumes

– Underlying volumes flat year on year

• US$ EBITDA, down 0.4%

– Includes US$1m internal re-allocation R&D charge

CHINA

• Volumes flat

• Suzhou: Reduced demand from automotive OEM

• Foshan: Increased sales due to focused sales initiatives

SOUTH EAST ASIA

• Vietnam: Capacity constrained until new plant commissioned May 2012. Additional capacity expected

– FY13 EBITDA contribution to be between US$0.5 to US$1m

– To be filled within 4 years

• Malaysia and Indonesia: Domestic demand held

10.4%

0%

10%

20%

FY08 FY09 FY10 FY11 FY12

RESINS – ASIA

18

ASIAN SALES (US$)

ASIAN EBITDA (US$)

US$M

US$M

ASIAN EBITDA MARGIN

SPECIALTIES

RESINS

Page 19: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

Existing operations

RESINS – EUROPE

19

9.5%

0%

6%

12%

FY08 FY09 FY10 FY11 FY12

EMEA SALES (€)

EMEA EBITDA (€)

• Volumes up 21.9% including Viverso

– Excluding Viverso down 5.1%

• EURO EBITDA up 24.3% including Viverso

– Excluding Viverso EURO EBITDA up 8.0%

• Steady demand from Northern European customers

• Weaker demand from

– Southern European customers

– Middle East and Asia

• In its first 6 months, Nuplex Germany (integrated Viverso operations) delivered

– Margins inline with expectations

– Volumes inline with expectations, except for construction related products which were weaker

– Costs below expectations due to lower integration expenses

€M

€M

EMEA EBITDA MARGIN (EX VIVERSO)

Viverso

SPECIALTIES

RESINS

Page 20: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

RESINS – AMERICAS

SPECIALTIES

• Volumes down 2.3%

• US$ EBITDA up 18.2%

• Stronger second half volumes due to growth in automotive and manufacturing sectors

• Improved product mix and tight cost control

20

10.9%

0%

6%

12%

FY08 FY09 FY10 FY11 FY12

AMERICAS EBITDA (US$)

US$M

US$M

AMERICAS EBITDA MARGIN

AMERICAS SALES (US$)

RESINS

Page 21: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

AGENCY & DISTRIBUTION

• Sales

− New Zealand down 4.0%

− Australia down 12.1%

• Tough manufacturing and construction conditions in Australia reduced demand for

− Plastics

− Coatings

− Surfactants

• Steady demand from

− Food and Nutrition

− Healthcare

− Pharmaceuticals

• Formation of Nuplex Specialties complete

− 6 brands integrated into 1 brand

− Focused sector sales groups

− Making it easier for principals and customers to work with Nuplex

SPECIALTIES

21

MASTERBATCH

• Sales slower than expected due to weaker Australian trading conditions

• Acquired Acquos’s masterbatch operations

‒ Final price paid was $20.9m

‒ FY12 EBITDA contribution approximately A$1m

• Nuplex Masterbatch restructuring to be completed Q1 FY13

‒ Continued focus on cost base optimization and margin management

• In FY13, EBITDA from the combined business expected to be A$5m

SPECIALTIES

RESINS

Page 22: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

4. STRATEGY UPDATE & OUTLOOK

Page 23: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

23

• Consider acquisitions that− Strengthen

leading market & technology positions

− Leverage capabilities

− Meet disciplined criteria

OUR STRATEGYTo deliver sustainable growth and high quality products for our customers through pursuing operational

excellence and building market leading positions

SUSTAINABLE GROWTH STRATEGY

Safety People NuLEAPEmerging markets

R&DStrategic

acquisitions

• Build a culture of ‘Zero Harm’

• Engage and leverage One Global Team

• Improve the way we work through rigorous improvement programs

• Profitably expand capacity and presence in emerging markets

• Grow market share through innovative products

• Pursue market development opportunities

• Leverage technologies across global platform

OUR AMBITION

To be the leading, trusted resins manufacturer globally and leading agency & distribution business in ANZ

Building market leading positions to grow earningsPursuing operational excellence to improve margins

Page 24: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

24

June

2012

Jan ‘11 New strategy

implemented

Jan ‘11 New strategy

implemented ON TRACK TO DELIVER• NULEAP program target - $30m• At least €12m EBITDA from Viverso• $A5m EBITDA from Nuplex Masterbatch• US$0.5m to US$1m EBITDA

ON TRACK TO DELIVER• NULEAP program target - $30m• At least €12m EBITDA from Viverso• $A5m EBITDA from Nuplex Masterbatch• US$0.5m to US$1m EBITDA

January

2011

June

2013

January

2013

June

2011

January

2012

VIETNAM: Commenced

capacity expansion

project

VIETNAM: Commenced

capacity expansion

project VIETNAM:

Commissioned new plant on time & on

budget

VIETNAM: Commissioned new plant on time & on

budget

CHINA, Changshu:

Secured land for new 3rd site

CHINA, Changshu:

Secured land for new 3rd site

CHINA, Changshu:

Construction expected to commence

CHINA, Changshu:

Construction expected to commence

Emerging market growth

Financial targets

Strategic acquisitions

Viversoacquired

and integration

started

Viversoacquired

and integration

started

Acquos masterbatch operations acquired, integration into Nuplex Masterbatch started Acquos masterbatch operations acquired,

integration into Nuplex Masterbatch started

DELIVERING ON OUR STRATEGY

NuLEAPdelivered

$3m benefits

NuLEAPdelivered

$3m benefits

NuLEAPdelivered

$14m benefits

NuLEAPdelivered

$14m benefits

NuLEAP

June

2010

Dec ‘10 Strategic review

completed

Dec ‘10 Strategic review

completed

Page 25: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

25

June 2012

$10m in incremental benefits

TARGETS

NULEAP – ON TRACK TO DELIVER $30m TOTAL BENEFITS

DeliveredDelivered

Lay the foundations for

continuous improvement

culture

Lay the foundations for

continuous improvement

culture

Exceeded target -delivered $14m in

incremental benefits

Exceeded target -delivered $14m in

incremental benefits

On track to reach program target

On track to reach program target

June 2011

$3m in ‘Quick Wins’

June 2013

Program target $30m

Ongoing - review of Australian and New Zealand operations

Ongoing - review of Australian and New Zealand operations

Page 26: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

26

ASIA • Two years into expansion

program to increase regional capacity by 50% by end FY14

CHINA • Construction expected to

commence by end 2012

VIETNAM• Vietnam capacity

commissioned May 2012

INDIA• Full time sales

representative employed in early 2012

ASIA • Two years into expansion

program to increase regional capacity by 50% by end FY14

CHINA • Construction expected to

commence by end 2012

VIETNAM• Vietnam capacity

commissioned May 2012

INDIA• Full time sales

representative employed in early 2012

RUSSIA• Agreement to form a JV

• Local partner, Kvil Group

• Will make a €2.5m initial investment

• Working towards starting construction of greenfield site in 2014

RUSSIA• Agreement to form a JV

• Local partner, Kvil Group

• Will make a €2.5m initial investment

• Working towards starting construction of greenfield site in 2014

GROWING IN EMERGING MARKETS

Customer value proposition underpins Nuplex’s ability to successfully grow in emerging markets Customer value proposition underpins Nuplex’s ability to successfully grow in emerging markets

Cost Competitive Consistent Quality Security of Supply Innovative products and R&D support

Ongoing delivery of our customer value proposition is why • Multi nationals support Nuplex to expand into emerging markets alongside them • Local producers choose Nuplex products

Cost Competitive Consistent Quality Security of Supply Innovative products and R&D support

Ongoing delivery of our customer value proposition is why • Multi nationals support Nuplex to expand into emerging markets alongside them • Local producers choose Nuplex products

Belgorod

Changshu

Mumbai Ho Chi Minh City

Page 27: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

MARKET DEVELOPMENT and INNOVATIVE R&D

• R&D is a core component of our customer value proposition via

– Innovative new products and customised solutions

– Post sales technical support

• July 2011, as part of management restructure created overlay teams to drive global R&D in 4 key product areas1

• June 2012, each overlay team

– Has identified and prioritised global R&D and market development projects

– Is working towards commercialisation

• Approximately 25% of R&D budget now spent on globally focused projects

• Innovative R&D commercialised in FY12 include

– SETAQUA® ECO 5000

A waterborne binder used in enamel trim paint with similar performance qualities as the traditionally higher performing solventborne alternatives

– SETALUX 17 – 2319

A Vehicle Refinish top coat that does not need a primer layer

We are building a global and product focused approach to R&D We are building a global and product focused approach to R&D

271. Performance, waterborne and powder coatings and composite resins

Page 28: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

PRIORITIES and OUTLOOK

28

PRIORITIES

• Improve safety performance

• Execute NuLEAP

– Lay foundations for NuLEAP II

– Announce ANZ Operational Review

• Complete integration of Nuplex Germany into existing European network

– Leverage its technology portfolio into Asia, ANZ and Asia

• Progress emerging market projects

– Commence construction at Changshu

– Form Russian JV

• Continue investing in market development and R&D

– Leverage benefits from global R&D overlay teams

– Build R&D Applications Centre in China

OUTLOOK

• Markets remain challenging

• Assuming continuation of current market conditions, FY13 EBITDA to benefit from

– Full 12 months of Viverso (expected contribution at least €12m) and Nuplex Masterbatch (expected contribution A$5m)

– Volume growth in Vietnam capacity (US$0.5 to $1m)

– Additional NuLEAP benefits

All figures are in NZD unless otherwise stated

Page 29: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

FOR FURTHER DETAILS:

EMERY SEVERIN

Chief Executive Officer� +61 2 9666 0300� [email protected]

JOSIE ASHTON

Investor Relations� +61 2 9666 0342 or � +61 416 205 234� [email protected]

Page 30: NUPLEX INDUSTRIES LIMITED NUPLEX INDUSTRIES LIMITED RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2012 17 AUGUST 2012 Emery Severin, Chief Executive Officer Ian Davis, Chief Financial

30

SEGMENTS

NZ$ millionFY12

ACTUAL FX

FY12CONSTANT

FX

FY11ACTUAL

FX

% CHANGE

ACTUAL FX

CONSTANT FX

RESINS

Sales Existing operations 1,193.5 1,249.2 1,272.8 (6.2) 1.9

Viverso 117.3 126.8 - - -

TOTAL 1,310.8 1,376.0 1,272.8 3.0 8.1

EBITDA Existing operations 100.9 106.4 107.5 (6.1) (1.0)

Viverso 9.4* 10.2 - - -

TOTAL 110.3 116.6 107.5 (2.6) 8.5

SPECIALTIES

Sales 305.1 308.4 302.2 1.0 2.1

EBITDA 20.7 20.9 23.4 (11.5) (10.7)

*Excludes additional NZ$1 million EBITDA contribution embedded in other regions

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RESINS SALES & EBITDA IN NZD

NZ$ millionFY12 FY11 % CHANGE

ACTUAL FX CONSTANT FX ACTUAL FX ACTUAL FX CONSTANT FX

SALES

Australasia 402.7 407.6 462.3 (12.9) (11.8)

Asia 255.8 267.1 256.3 (0.2) 4.2

Europe – existing 387.2 417.4 411.2 (5.8) 1.5

– Viverso 117.3 126.8 - - -

Americas 147.8 157.1 143.0 3.3 9.9

TOTAL RESINS SALES

1,310.8 1,376.0 1,272.8 3.0 8.1

EBITDA

Australasia 19.7 19.9 26.0 (24.5) (23.4)

Asia 26.6 27.8 28.4 (6.3) (2.1)

Europe – existing 38.6 41.7 38.7 (0.1) 7.8

– Viverso 9.4* 10.2 - - -

Americas 16.0 16.9 14.4 11.1 17.4

TOTAL RESINS EBITDA

110.3 116.5 107.5 2.7 8.5

*Excludes additional NZ$1 million EBITDA contribution embedded in other regions

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RESINS SALES AND EBITDA BY LOCAL CURRENCY

FY12

(LOCAL CURRENCY)

FY11

(LOCAL CURRENCY)% CHANGE

SALES

Australasia (A$ M) 313.8 354.8 (11.6)

Asia ($US M) 205.5 193.8 6.0

Europe (€ M) – existing 232.5 228.5 1.8

– Viverso 70.4 - -

US ($US M) 118.7 108.2 9.8

EBITDA

Australasia (A$ M) 15.3 20.0 (23.3)

Asia ($US M) 21.4 21.5 (0.4)

Europe (€ M) – existing 23.2 21.5 8.0

– Viverso 6.3* - -

US ($US M) 12.9 10.9 18.2

*Excludes additional €0.6 million EBITDA contribution embedded in other regions

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FOREIGN EXCHANGE

AVERAGE EXCHANGE RATE FY12 FY11 % CHANGE

NZD: AUD 0.7791 0.7676 1.5%

NZD: EUR 0.6006 0.5557 8.1%

NZD: USD 0.8034 0.7562 6.2%

NEW ZEALAND DOLLAR VS AUD, EURO AND USD

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12

NZD/AUD

NZD/EUR

NZD/USD

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0

10

20

30

40

50

60

70

0

30

60

90

120

150

10 year summary

All figures are in NZD unless otherwise stated

SALES ($M) EBITDA ($M)

NET PROFIT TO SHAREHOLDERS ($M)

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

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DISCLAIMER

This presentation has been prepared by Nuplex Industries Limited. The material that follows contains general background information about Nuplex’s activities as at the date of the presentation 17 August, 2012.

The information in this presentation is not an offer or recommendation to purchase or subscribe for securities in Nuplex or to retain any securities currently held. It does not take into account the potential and current individual investment objectives or the financial situation of investors.

Actual results may vary materially either positively or negatively from any forecasts in this presentation. Before making or disposing of any investment in Nuplex securities, investors should consider the appropriateness of that investment in light of their individual investment objectives and financial situation, and seek their own professional advice.

All currencies are in NZD unless stated otherwise.