Opportunités en aval avec Sadara

Creating Value Through Chemistry September 2, 2014

Downstream Opportunities with Sadara

Agenda

• Overview on Sadara

• Sadara Value Chain

• PlasChem Park

• Overview on Differentiated Opportunities

• A View on Potential Investors

• Closing Remarks

Sadara Overview

• US$20 Billion investment;

• First complex to crack Naphtha in GCC;

• Largest chemical complex ever constructed in a single phase: 26 world scale plants with over 3 million metric tons of capacity;

• Differentiated Product Slate: 14 out of the 26 plants are new to KSA;

• “Dedicated Off-Takers” through PlasChem Park;

• Construction began in 3Q 2011

– First products in 2015

– Full production in 2016

Jubail industrial City II

Mixed Feed Cracker

Sadara is Rising up in Jubail

EO Plant

Sadara is Rising up in Jubail

PO Plant

Sadara is Rising up in Jubail

Jubail Overview

• The largest purpose-built

Industrial City in the world, covering >1000 km2

• Over 64 MM tons of petrochemical production and 10 MM tons of steel – 7% of global petrochemical output

– 11.5% of KSA non-oil GDP

– 70% of KSA non-oil exports

• To-date $141bn total investment: – Industry $112bn

– Residential $ 8bn

– Land/infrastructure $ 21bn

PlasChem Park

Specialty Films

Household Products

PU Systems

Adhesives / Sealant

Paints & Coatings

Laminates

Oil & Gas Chemicals

Detergents

Water treatment

Cables

Construction Material

Misc Compounding

Furniture/Insulation

Automotive fluids

Auto Components

Co

nve

rsio

n P

ark

Products

Ch

em

ical

P

ark

Intermediates C4’s

Pygas

Pyoil

Ethane

Naphtha

Polyols

PE/ Elastomers

Isocyanates

Propylene Glycol Amines Glycol Ethers

EO/PO

Sadara Value Chain Opportunities

Market Segments Sa

dar

a

Sadara

Abu Hadriya Highway

Park

Chemical Park

Conversion Park

Downstream Industries • Formulators • Plastic

Converters

N

SATORP

Sad

ara

Park

Chemical Park

PlasChem

Reactive Chemical Industries

Sadara Approved Projects

PlasChem Site & Layout

Requirement Status Cost, USD Land PlasChem being prepared by RC $1.20/m² Power By RC at each allocated land $0.04 KWH Ind. Waste Water Connect to a centralize system (1) $0.44/m³ Sea Water Cooling By RC at each allocated land $0.015/m³ Potable Water By RC at each allocated land $1.76/m³ Process Water By RC at each allocated land $1.76/m³ Sanitary waste By RC at each allocated land $1.43/m³ H2, N2, & O2 Connect to a supply line Cost plus Steam Centralized unit is being evaluated (2) Cost plus

Land, Power and Utilities in KSA

(1): RC will evaluate the content of investors waste stream to determine if pre-treatment is required. (2): steam is under development but may not be ready in time for your project. Allocation of methane gas for steam generation is possible at regulated price of 0.75$/mmbtu .

EO/PO Opportunities

Cosmetics Shampoos Construction Material

Oil & Gas Chemicals

Water Treatment Chemicals

Detergents

• 66% of all EO produced globally goes into MEG which is a commodity • Sadara makes purified EO for a wide variety of differentiated applications • Oxide derivatives for Oil & Gas is one of our biggest clusters in PlasChem

PE & Elastomers Opportunities

Stretch warp FFS bags

Food packaging

Containers

Hygiene films

• First production of highly differentiated C8 – LLDPE in the Kingdom • High toughness and puncture resistance means better yield

Amines Opportunities

Corrosion Inhibitors Fabric Softener

Wet strength resin Personal Care

Gas treatment

• Sadara will produce both ethylene amines and ethanol amines • These amines will be produced in Kingdom for the first time and are key

feed stocks for conversions to a wide variety of products

Glycol Ether Opportunities

Electronics

Paints & Coatings Ink Formulation Brake Fluid

Cleaning Formulations

• Glycol Ethers have a range of solvency, water solubilities and volatilities allowing wide formulating opportunities

• Additional benefits are low odor, low toxicity, good biodegradability and favorable environmental regulatory status

Polyurethane Opportunities

Coating

Foams Adhesives Automotive Parts

Insulation

• Isocyanates and specialty polyols will be made in KSA for the first time. • Insulation, coatings, and automotive applications fit well with Industry

clusters targeted by the Kingdom. • Many applications will focus on regional demand as low density foams are

inefficient to export

Polyether Polyol

Specialty Foam for seats Interior Trim/Steering Head liners

Furniture

• Sadara will produce slab stack and molded polyether polyol • Polyols are key feed stocks in the manufacturing of a wide range of

products including automotive applications

Propylene Glycol Opportunities

• Sadara will produce different derivatives of propylene glycol • Propylene Glycol acts as a humectant, solvent, and viscosity modifier • Propylene Glycol is a raw material for the manufacturing of unsaturated

polyester resins

Pharmaceutical Cosmetics Personal Care

UPR-Marine Skin Care UPR-Wind Blades

Products Markets Targeted RO Membranes Water Treatment Coating Additives Industrial & Architectural Paint EO/PO Derivatives Cluster

Oil & Gas, Water Treatment Chemicals Home and Personal Care,

Construction Material, Detergent PU Derivatives Cluster

Insulations, Furniture & Auto foams Adhesive/Sealant

BGE Derivatives Brake Fluids, Solvents PE Specialty Applications Hygiene Films Chemical based products Anti microbial, Construction material

A View on Potential Investors

Collaboration of Local Organizations

• In addition to SIDF, SAGIA, RCJY

• Wa’ed LLC

– Support entrepreneurs and SMEs to create value

– Investments in downstream assets

• Dhahran Techno Valley

– Integrated ecosystem to drive knowledge economy

– Provides development , production and marketing support for innovation

– Some EO derivatives R&D already in Place

• Sanabil

– A government fund aimed at developing Industrial projects

– Invests up to 49% of equity ($ 256 million)

• Interested Local Companies/Investors

Summary

• Sadara is a game changer for the region chemical industry with positive impact on KSA GDP

• Sadara will produce a variety of products currently not available in KSA

• Huge opportunity for SMEs

• PlasChem Park presents a unique opportunity

Creating Value Through Chemistry

Downstream Opportunities with Sadara