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Capital Market Day 2005 | Mauricio Bannwart, Sulzer Chemtech | page 1

Capital Market Day 2005

Sulzer Chemtech

Mauricio Bannwart, President Sulzer Chemtech North and South America

Sulzer Chemtech


Our Business: Components and Services for Separation Columns and Static Mixing

Products and ServicesTower internals for distillation, absorption, and reactive distillation processes; crystallization and pervaporation applicationsMixing and reaction technology with static mixersAssociated services: engineering, piloting, tower field service

Customer BenefitsHigh reliability and process efficiency as single-source provider for engineering, design, equip-ment, and services Profound process know-how on a wide range of applications lead to low total costMultiple manufacturing and engineering sites ensure closeness to markets on a global basis

Key Figures 2004 (in million CHF)

Orders received 346

Net sales 313

Operating income bef. goodwill (EBITA) 30

Personnel employed (number as per 12/31) 1 407

Sulzer Chemtech


Orders ReceivedSplit by Segment and Market Area

Orders received 2004 by segment

Total CHF 346 million

Orders received 2004 by market area

Total CHF 346 million

SwitzerlandEU countriesOther European countriesNorth AmericaLatin AmericaAsia, AustraliaAfrica

19%

81% Separation Columns

Static Mixing

17%

39%

4%3%

34%

2%1%

31%

5%

40%

100%

Sulzer Chemtech


Truly Global Operations and Service Network

(121)(159)

(92)(156)

(150)

(244)

(116)

Netherlands

India

Singapore

China

USAMexico

Switzerland(290)

Sulzer Chemtechmanufacturing companies

( )

Sulzer Chemtechsales offices

Staff, worldwide 1’407(Dec '04)

Poland

Sulzer Chemtech


Markets and Customers: Separation Columns

Segments Oil and gas, petrochemical industry

Market size CHF 800–1.000 million

Growth General GDP, some segments 4–6%

CustomersRefineries, petrochemical, chemical, and gas plants, engineering contractors, e.g., Shell, BP, ExxonMobil, BASF, Fluor, TOYO

Key success factors Product technology, applications know-how, innovation, global market presence

Market position Technology leader, strong No. 2 market position

End product Gasoline, chemicals, monomers

Sulzer Chemtech


Separation Columns—Components

Trays

Rings

Structured Packings

Distributor

Gas

Liqu

id

Sulzer Chemtech


Separation Columns—Components and Services

Application know-how and technology: Enhance performance—save operating costs

Separation through processes like distillation and absorption

Tower diameters 0.3–13 m

Tower heights 2–80 m

Trays, structured packings, rings, distributors, supports, etc.

Sulzer Chemtech


Separation Columns—Services

Full scope supplier of column components, column modifications, and installation services

Sulzer Chemtech


The Way Forward—Shaping the Future

With the acquisition of Cana-Tex, Sulzer Chemtech builds the globally leading Mass Transfer Field Service Organization!

Sulzer Chemtech


Oil Refinery

FCC

Isomerisation

Crude Atmospheric

Naphtha Splitter

Absorber

Lean Solvent

StabilizerSplitter

HDS

Coker

SWSDe C4

Hydrocracker

Catalytic Reformer

Visbreaking

De-C2

De-C3

De-I C4

H2S Abs.

Vacuum Fuel

Lube

Isostripper

DepropanizerAkylationStabilizer

Sulzer Chemtech


Crude Atmospheric Column

S

Crude Atmospheric Unit

KERO

DIESEL

AGO

Gas

LPG LN

HN

HN

Residue

Desalter

Preflash

Crude Atmospheric

Tower

Overhead system

Side Strippers

STab

Naphtha Splitter

Sulzer Chemtech


Less metal and coal combustion residuesLighter color

- Pump around

Capacity increase

10% less stripping steam Energy saving

Enhanced fractionation

Increase capacity

Increase yield recovery

Improve AGO quality

up to 60%

up to 80%

Trays MellapakPlus

10–30%

1–1.5% more yieldLess lighter in AR

up to 20%

Capacity increase

30% less stripping steam

- MellapakPlus

Advantages

HN

KERO

AGO

Diesel

- Trays

- Stripping section - Fractionation sections

Hydraulic debottlenecking

10–30%10–15%10–30% 20–60%

20–40% 20–50%

Objectives

Crude Atmospheric Column

Sulzer Chemtech


Customer ROI

Total investment: US$ 1,500,000

Savings: US$ 16,000 per day (based on higher yield of Diesel recovered from LR)

Pay-back time: US$ 1,500,000 / US$ 16,000 per day

=94 Days

We make our customers more competitive!

Sulzer Chemtech


Markets and Customers: Static Mixing

Segments Oil and gas, petrochemical industry, plastic production, automotive

Market size CHF 400–500 million

Growth General GDP, some segments 10–15 %

CustomersRefineries, petrochemical, and chemical plants, polymer production, construction industry, e.g., Shell, BP, Foster Wheeler, 3M, Hilti

Key success factors Product technology, applications know-how, innovation

Market position Technology leader, strong No. 1 (respectively No. 3) market position for Quadro

End product Polystyrene, engineered plastics, adhesives

Sulzer Chemtech


Static Mixing—Products and Applications

Motionless mixers placed in pipes

Geometry of devices provides mixing effects

Wide range of applicationsfor gases and liquids

For cooling, heating, reactingin the polymer production process

Diameter from a few mm to 2 m

Sulzer Chemtech


Static Mixing—Innovative Technology for the Foaming of Injection Molded Components

Customer benefits from:

Weight reduction and raw material savings

Better mechanical properties

Increased productivity through reduced cycle time

Existing production machines can be upgraded easily

Environmentally friendly

Sulzer Chemtech


Static Mixing—Disposable Mixers and Cartridges (Quadro Systems)

Novel type of two component mixer

Designed for single use, after which it is disposed

Combination of disposable mixers and cartridges

Efficient mixing of reactive resins and adhesives

Minimum length and pressure drop required

Customized design

Sulzer Chemtech


Static Mixing—Innovative Solutions Applied by 3M (Quadro Systems)

Customer benefits from:

Lower pressure drop

Steadier targeting of adhesive flow

Less material wastage

High mixing quality

Sulzer Chemtech


Static Mixing—Innovative Peeler Cartridge (Quadro Systems)

Adhesive A Inner Tube Conventional sealing pistons

Adhesive B Cartridge Body Peeler Plunger of Dispensing Gun

Sulzer Chemtech


Competitive Picture

Main

Competitors

Segment

Sulzer Koch-Glitsch Small Players Chemineer Mixpacand TAH

Structured Packings

Trays and Replacements

Rings

Separators

Field Service

Static Mixing

Quadro Systems

Sulzer Chemtech


The Last 12 Months in Review

ExternalGrowth

Field services: acquisition of Cana-TexSmall to mid-size acquisitionsto grow mixing activitiesStrengthening of core activities through adjacencies, e.g., gas market

Organic Growth

Technology innovation, new applicationsCooperation with key customersGlobal availability

OperationalExcellence

Improved productivity, faster delivery, reduced quality costsFurther efforts to improve cost structure, particularly in EuropeExpand cost-effective locations, e.g., India, China, Mexico

Sulzer Chemtech


Financial Performance January–June 2005

in million CHF2005 2004

200.2 167.8

149.2

147.0

17.8

13.4

9.0%

1 407

192.0

19.3 %

28.7 %

6.0 %

35.4 %

46.3 %

155.8

24.1

19.6

10.2%

1 341

Orders received

Net sales

Order backlog

EBITDA

EBITA

ROS (EBITA/sales)

Personnel employed(in numbers as of June 30/December 31)

Sulzer Chemtech


Midrange Targets

in million CHF 2003 2004

312 346

313

147

40

30

9.6%

22.9%

1 407

307

119

34

23

7.5%

15.2 %

1 381

Midterm targets

Orders received

Net sales

Order backlog

EBITDA

EBITA

ROS (EBITA/sales)7–8% ROS

over the cycle

ROCE (EBITA/capital employed) >16% ROCE

Personnel employed(in numbers as of December 31)

Organic growth 4–6%

Sulzer Chemtech


Review 2005—Outlook 2005/2006

Excellent half-year closing 2005

High order backlog at the end of July (CHF 168 million)

Continued strong tender activities in all areas

Further potential for large projects

Encouraging improvements in Europe, Middle East, and Africa as well as in North and South America

Smooth integration of Cana-Tex so far

On trackfor a

record in2005

Maintain market momentum; take advantage of good conditions

Expand in the gas market

Launch of Business Development and Technology (organizational transformation)

Leverage Tower Field Service activities together with Mass Transfer Components

Intensive project work “Sulzer Chemtech – The Way Forward”

Launch global ERP/PDM1) project

Optimisticoutlook

for 2006/2007

1) Enterprise Resource Planning/Product Data Management

Sulzer Chemtech


Summary

Continue creating value

Grow above market rate at sustained profitability

Grow organically and through selective acquisitions

Continue to focus on separation columns and mixing and look for 1–2 steps adjacencies

Maintain a leading technology and service position

Maintain operational performance

Sulzer Chemtech


Safe Harbor StatementTHE SAFE HARBOR STATEMENT UNDER THE US PRIVATE

SECURITIES LITIGATION REFORM ACT 1995

This presentation contains forward-looking statements, including, but not limited to projections of future performance of materials and products, containing risks and uncertainties. These statements are subject to change based on known risks detailed from time to time in the company’s relevant filings and other known and unknown risks and various other factors which could cause the actual results or performance to differ materially from the statements made herein.

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