SABIC Innovative Plastics: Building Customer Relationships @

Colonial - Media Tech – 2011 Joe Miller Las Vegas

2

SABIC Innovative Plastics

SABIC Innovative Plastics is a leading, global supplier of

engineering thermoplastics with a 75-year history of breakthrough

solutions that solve its customers’ most pressing challenges.

Today, SABIC Innovative Plastics is a multi-billion-dollar company with

operations in more than 35 countries and over 9,000 employees

worldwide.

The company continues to lead the plastics industry with customer

collaboration and continued investments in new polymer technologies,

global application development, process technologies, and

environmentally responsible solutions that serve diverse markets such

as automotive, electronics, building & construction, transportation, and

healthcare.

The company’s extensive product portfolio includes thermoplastic

resins, coatings, specialty compounds, film, and sheet.

SABIC Innovative Plastics (www.sabic-ip.com) is a wholly owned

subsidiary of Saudi Basic Industries Corporation (SABIC), one of the

world’s top six petrochemicals manufacturers.

3

Our heritage of innovation has changed the thermoplastics industry and the world

• We have been manufacturing plastics since 1935

• Our company created:

– Polycarbonate (Lexan* resin) in 1953

– PPO (Noryl* resin) in 1961

– Polyetherimide (Ultem* resin) in 1985

– Amorphous thermoplastic polyimide (Extem* resin) in 2006

• Since 1950, we have over 5,000 patents issued and in force

4

Today SABIC Innovative Plastics is

$100+ Million ‘09 investment in innovation

104 locations in 35+ countries 9,000+

employees

5

Sharing Our Futures

SABIC is an industry leader • One of the largest producers of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers

• 2009 sales revenue - $27 billion

• 2009 net profit - $2.4 billion

• A global resource

– SABIC operates in 40+ countries

– 19 world-scale complexes in Saudi Arabia

– SABIC manufactures on a global scale in the Americas, Europe and Asia Pacific

– 6 dedicated Technology & Innovation Centers in Saudi Arabia, Europe, the USA and India

– 33,000 employees

A Path of Commitment and Growth

Committed to the SABIC Innovative Plastics business, global operations and talented employees

7

SABIC Innovative Plastics in the engineering thermoplastics industry

Polystyrene Polyvinyl chloride

Lexan* (PC) Noryl* (PPO)

Cycoloy* (PC/ABS) Geloy* (ASA)

Cycolac* (ABS)

Xenoy* (PBT/PC) Valox* (PBT)

Nylon

PEEK LCP HTN

PI PPSU

Extem* (PI) Ultem* (PEI)

Engineering polymers and blends

Bulk polymers

High performance polymers

Family

Polyethylene Polypropylene

Perfo

rm

an

ce

Clarity, colorability, impact strength

Chemical resistance, flow, electrical properties

Amorphous Crystalline

Pric

e

High

Low

* Trademark of SABIC Innovative Plastics IP BV

8

Lexan* resins

Clarity, superior flow-heat-impact balance, & dimensional stability

Specialty Film & Sheet Lexan* PC film/sheet, Illuminex* film, Ultem* film/sheet, Thermoclear*sheet

Noryl* resins Dimensional stability & electrical performance

Crystalline performance polymers Xenoy*, Valox* and Xylex* resins

Chemical resistance & excellent impact performance. Environmentally sustainable grades

High performance polymers Ultem* and Extem* resins

Superior heat resistance & mechanical strength

Cycolac* and Geloy* resins Visualfx* resins, medium impact & weatherability performance

LNP* compounds Thermocomp*, Lubricomp*, Lubriloy*, Stat-Kon*,

Faradex*, Verton*, Starflam* compounds

A broad portfolio of differentiated products

Specialty performance through compounding

High performance films & high impact sheet

Our competitive advantages

Cycoloy* resins Optimum flow-heat-impact-stiffness balance, & dimensional stability

9

Today’s advanced new materials

Offering customers a competitive advantage

Lexan* copolymers

EXL* DMX* SLX*, FST*, XHT*, HFD* resins

Lexan* GLX resins for

Exatec* glazing systems

Valox* iQ and Xenoy* iQ copolymers

Ultem* fibers

Valox* resin non-brominated FR compound

Extem* resin

Glass replacement and design freedom

New dimensions to polycarbonate resins: extreme heat, ductility, flow, weathering, scratch resistance & more

Environmentally sustainable virgin polymer from recycled material

High heat and low smoke fabrics

Extreme high heat

VO performance

Excellent mechanical properties

Cycoloy* resin blends

Innovations in optimum flow, heat, impact, stiffness, balance, & thin wall flame resistance

10

Today’s advanced new materials

Noryl* PPO* oligomers

Flexible Noryl* wire coating

Geloy XTW* grades

LNP* compounds

Ultem* film

Lexan* Constant Clear* film

Our competitive advantages

Improved dielectrics, heat and ductility in epoxy systems

Non-brominated material and weight reduction

Extreme weatherability

Specialty materials that bring: - Functional value to our customers - Purchasing preference to consumers - In products that require shielding, wear resistance, electrical insulation, structural performance, and more.

High heat film for electronic applications

Prevents condensation and fogging to deliver energy savings for freezer display case doors

11

Shanghai China

Computing Devices Notebooks Wire Film-IMD

SungNam Korea

Televisions Cell phones

Moka Japan

High performance electronics (gears, optical lens) Automotive wire

Pittsfield USA

Composites Transportation Healthcare Steering wheels Seat heating Functional films

Bergen op Zoom The Netherlands

New energy Fluid engineering Body panels Glazing

• Assembly processes • Painting & decoration • Part testing & end-use simulation • Risk mitigation • Regulatory standards

Application performance

• Injection molding • Non-injection molding

processes • Productivity improvements

Process development

• Computer-aided engineering • Computer-aided design • Process simulation

Predictive engineering

State-of-the-art design, processing & performance testing

Automotive Consumer B&C Signage

Global Application Technology

Riyadh Saudi Arabia

• Complete application teardowns • Concept designs • Color services • Prototype development

Aesthetics & Industrial Design

Resource alignments

Capabilities

Lasting partnerships for growth

12

Manufacturing and development

Global & Local

48 sales offices 38 manufacturing & compounding sites 6 application development centers

13

• 260 K Tons per annum • 4 trains , 2 OQ capable • Asahi technology

• PC start up in Mar’11

• Full scale up by Nov’11

Mechanical Construction

Cumene Phenol BPA PC

Dec 5 Feb, 2011 July 1 Mar, 2011 Aug 14

Saudi Kayan PC Plant

14

SABIC PC Portfolio

14

Comments

• Only GP, Extrusion & OQ

products in portfolio.

• No FR portfolio

• No FDA

• SK will manufacture

complete portfolio over time

• SIP decides NPI

prioritization

SABIC® PC

MFR

Target

Available

at StartUp GP R UV

LEXAN® PC

Offset

PC4800 7.3* Yes • OQ1023

PC2200 22 Yes •

PC2200R 22 TBD •

PC2203R 22 TBD • •

PC1800 18 Yes • 121

PC1800R 18 Yes • 121R

PC1803R 18 Yes • • 123R

PC1500 15 Yes •

PC1000 10 Yes • 141

PC1000R 10 Yes • 141R

PC1003R 10 June • •143R

(143)

PC0800 8 Yes •

PC0700 7 October •101

(101R)

PC0703 7 October • 103

PC0703R 7 October • • 103R

Portfolio covers GP, Extrusion & OQ Products

15

Low Cost Blends

Opportunity

Low cost blends as cost-out option for PC resin

with marginal loss in other properties

Explore design space which shows minimum

loss of value added properties of PC

Establish if any additional value proposition (eg

low birefringence / development of diffusive

grades)

Extend the use of developed material into

other blends

Resin Blends/Compounding

Polycarbonate

(PC)

Polystyrene

(PS)

Polypropylene

(PP)

Polyethylene

Terephthalate (PET)

(PC/PS)

(PC/PP)

(PC/PET)

Application: Rear Combination Lamp Material: PMMA

Application: Refrigerator crisper drawer Material: PC, CPS, SAN

Application: P.O.S Display Material: SBC, PMMA

16

Engineering Thermoplastics forecasted to grow…

16

Forecast

Source: CMAI

3-8% CAGR

17

Consumer electronics grows with new names…

17

• Growth in mobile computing

• Emergence of Asian brands

• Opportunities for ETPs

• Convergence

• Weight

• Cosmetics

Today Future

18 18

Margin squeeze

Oil Producers

Retail Chem. Raws

Plastics Mfg

Media Mfgs

OEMs

1. Margin squeeze continues

2. Mfg Base remains relatively flat in US/Western Europe

Realities:

19

Feedstock volatility and shortages

• Oil continue to go up

• Shift to light cracking

reduces feedstock

availability

• Reduced benzene

production due to gasoline

usage, bio-fuels

• Demand in China pulling

volumes from US/Europe

Source: Internal SABIC data

19

20 20

18 month change +23%(PC)

+30%(N6,6)

+39%(N6) +63%(ABS)

Market Prices

21 21

Raw Material Prices

* cents/lb or cents/gal per CMAI http://www.cmaiglobal.com

2011 CHANGE

+17%

+17%

+15%

+30% +34%

*Mar Benzene Price $4.30/Gal

22 22

Raw Material Prices

* cents/lb or cents/gal per CMAI http://www.cmaiglobal.com

6 – Month Trend

+29%

+21%

+27%

+44%

+43%

Natural Gas: +21% Crude Oil: +19%

23 23

Transportation Costs

90.00

95.00

100.00

105.00

110.00

115.00

120.00

Ind

ex

Ceridian Trucking Fuel Use IndexSeasonally Adjusted

90.0

95.0

100.0

105.0

110.0

115.0

120.0

Transportation Cost IndexesUS PPI from Bureau of Labor Statistics

Normalized Jan 2008 = 100.0

TL

LTL

IM

Rail

Specialized

Air

Domestic Courier

Int'l Courier

24 24

Metals Markets

Hot Rolled Steel (NYMEX)

Aluminum Alloy (London Metals Exchange)

25

THANK YOU FOR THE BUSINESS

26

Price Increase Details

* Trademark of Sabic Innovative Plastics IP BV

Effective Date April 2011

The costs of many of our key raw materials, energy, and transportation have continued to increase adding to an already record level cost environment. This situation makes it necessary for SABIC Innovative Plastics to increase prices on certain products by the amounts listed below:

Lexan*, Cycoloy*, Valox*, Xenoy*, and Xylex* resins $0.48/kg/$0.22/lb/€0.35/kg

Noryl*, Noryl GTX* resins $0.25/kg/$0.11/lb/€0.18/kg

LNP* compounds containing PTFE and carbon fiber fillers $0.80/kg/$0.36/lb/€0.58/kg

All other LNP* compounds $0.40/kg/$0.18/lb/€0.29/kg

Ultem* resins $0.50/kg/$0.23/lb/€0.36/kg

Cycolac* and Geloy* resins $0.28/kg/$0.13/lb/€0.20/kg

These increases will be effective for all shipments made on or after April 4, 2011

and are in addition to all previously announced price increases. Please adjust your purchase orders to reflect this new pricing.

27

Media Notes in Industry magazines

•In the entertainment industry physical disc sales continue to decline while revenue generating digital delviery of all types in not growing as hoped

•The Blu-ray format had a banner year in 2010 although both CD and DVD production dropped.

•DEG release in 4Q 2010 reported consumer spending for the the first 3 quarters of 2010 said " Consumer purchases of Blu-ray discs reached $1 billion by 9/30/2010 - an 80% increase over the first 3 quarters of 2009

•Despite growth of digital delivery with the widespread accessibility of high speed internet reports show that packaged media is still the primary format for consumers

•Expectations are that as the recession ends that there will be overall growth of consumer transactions in home entertainment products moving forward

28

THE MATERIALS, PRODUCTS AND SERVICES OF SABIC INNOVATIVE PLASTICS HOLDING BV, ITS SUBSIDIARIES AND AFFILIATES (“SELLER”), ARE SOLD SUBJECT TO SELLER’S STANDARD CONDITIONS OF SALE, WHICH CAN BE FOUND AT http://www.sabic-ip.com . AND ARE AVAILABLE UPON REQUEST. ALTHOUGH ANY INFORMATION OR RECOMMENDATION CONTAINED HEREIN IS GIVEN IN GOOD FAITH, SELLER MAKES NO WARRANTY OR GUARANTEE, EXPRESS OR IMPLIED, (i) THAT THE RESULTS DESCRIBED HEREIN WILL BE OBTAINED UNDER END-USE CONDITIONS, OR (ii) AS TO THE EFFECTIVENESS OR SAFETY OF ANY DESIGN INCORPORATING SELLER’S PRODUCTS, SERVICES OR RECOMMENDATIONS. EXCEPT AS PROVIDED IN SELLER’S STANDARD CONDITIONS OF SALE, SELLER SHALL NOT BE RESPONSIBLE FOR ANY LOSS RESULTING FROM ANY USE OF ITS PRODUCTS OR SERVICES DESCRIBED HEREIN. Each user is responsible for making its own determination as to the suitability of Seller’s products, services or recommendations for the user’s particular use through appropriate end-use testing and analysis. Nothing in any document or oral statement shall be deemed to alter or waive any provision of Seller’s Standard Conditions of Sale or this Disclaimer, unless it is specifically agreed to in a writing signed by Seller. No statement by Seller concerning a possible use of any product, service or design is intended, or should be construed, to grant any license under any patent or other intellectual property right of Seller or as a recommendation for the use of such product, service or design in a manner that infringes any patent or other intellectual property right.

SABIC Innovative Plastics is a trademark of Sabic Europe Holdings BV

* Trademark of SABIC Innovative Plastics IP BV

29

A strong pipeline of new technology for the future

Beyond injection molding • High performance foams • Fibers • Composites

Functional color platform • Forensic disc authentication • Infra red reflectance • Laser welding • Laser marking • Infra red blocking • Holographics

Next generation LNP*compound effects • Thermally regulated materials…

passive switch • Improved inherent EM shielding • Extensions to new resins

Sustainability • High performance,

environmentally sustainable materials

• Improved recycling ease for our products

• Enable improved fuel efficiency, reduced emissions

• Flame retardancy without halogenated additives

• Eliminate need for paints

Our competitive advantages

SABIC Innovative Plastics Research & Development

New resins • Thermoplastic polyimides • Blends • Lexan* copolymers • High heat resins

Additive to thermosets • Improved dielectrics, (Dk, Df) • Increase heat • Improved ductlity • Improved dimensionals

30 30

Start-Up Schedule

Mar’11 Apr’11 May’11 June’11 July’11 Aug.’11

Train 3 (OQ)

Start-Up Perf. Test Run

Run

Train 4 (OQ)

Start-Up Perf. Test Run

Run

Train 1 (GP/Ext)

Start-Up

Perf. Test Run

Run

Train 2 (GP/Ext)

Start-Up Perf. Test Run

Run

OQ Trains to be commissioned first

Mid to late 2Q for GP Portfolio

8 licensed grades + PC1800, PC1803R, PC1003R

Late 3Q for extrusion grades PC703R & PC703

Running at 260KT run-rate by November

Will need outlet for significant quantities of varying degrees of off-spec.

resin

Plant on Schedule to Start in March

4.35 8.42 8.89 13.76 16.52 16.52 PC, K Tons 146 KT in 2011 (16KT off spec)