sig.org/summit

Executing the Technical Procurement Roadmap to Drive Nova Chemicals' Acquisition Strategy

sig.org/summit

NOVA Chemicals

Jean Carlos UrdanetaDirector Technical Procurement

The Hackett Group

John Kamauff Principal

Technical Procurement

Transformational Journey

Jean Carlos Urdaneta – NOVA Chemicals

Director Technical ProcurementDr. John Kamauff – The Hackett Group

Principal

3

Agenda

▪ NOVA Overview

▪ Project Background

▪ Procurement Benchmark

▪ Transformational Initiatives

▪ Questions and Answers

4

About NOVA Chemicals

NOVA Chemicals helps shape a

world where products vital to our

health and happiness are even

better tomorrow than they are today.

We are

• A leader in innovation

• A proactive partner

• Committed to Responsible Care®

To be the leader in innovation that

enables our customers to deliver

plastic products that make everyday

life healthier, easier and safer.

Responsible

Innovative

Collaborative

Passionate

Our Mission Our Values

5

Locations & Fast Facts

*Equity position in Lyondell’s Channelview styrene plant.

Number of Employees

2,800 worldwide

Annual Sales, 2016 (U.S.$)

$3.5 billion

LeadershipTodd Karran

President and CEO

Products

Ethylene and Polyethylene

Chemical Co-Products

Expandable Styrenic

Polymers

Community

Investment/Giving

$2.3 million (USD)

7,000 hrs

6

NOVA Chemicals’ Growth Strategy

In our pursuit, NOVA Chemicals has several key strategic priorities including:

Growing significantly

beyond our traditionally Canadian

production footprint, which includes

gaining additional access to the U.S.

Gulf Coast feedstock and supplying

our customer markets in the

Americas.

Being actively sought after

by all of our stakeholders

Delivering game changing

technology

that makes tomorrow even

better than today

Currently, NOVA Chemicals is growing on three fronts to meet our

consumers’ demand for plastic products:

Acquisition of Williams’ Geismar, Louisiana olefins plant and complex, an

operating facility with positive cash flow and significant opportunity for future

growth

Proposed Joint Venture with Borealis and Total involving Total’s existing

Bayport, Texas polyethylene facilities, development of a new light feed

cracker in Port Arthur, Texas and a new Borstar® technology polyethylene

facility in Bayport, both with expected start-up in 2020

Proposed polyethylene plant utilizing NOVA Chemicals’ Advanced

SCLAIRTECH™ technology, base case is Sarnia Ontario, with a final

investment decision expected in 2017 and start-up targeted for 2022

NOVA 2020 Projects

✓ Corunna Cracker Revamp - completed in 2017

✓ PE1 expansion - completed in 2016

✓ Corunna All Ethane Conversion- planned completion targeted for 2018

7

Technical Procurement Roadmap to World Class

Our Purpose: The purpose of the Technical Procurement Team is to be a clear competitive advantage for NOVA by positively

impacting business results through the supply of goods and services required to support our existing and future business

operations and growth projects. The Technical Procurement Team will also have an explicit and purposeful impact on NOVA’s RC

Goal ZERO. This will be accomplished through effective market research, active supplier relationship management, and

consistency in our business process with a continuous improvement focus and drive for quantifiable value generation.

Our Vision: Achieve a sustainable, flexible and scalable integrated service delivery model that positions the Technical

Procurement team as a World Class Leader in Procurement Practices to achieve maximum value and sustained competitive

advantage to NOVA.

Our World Class Definition: NOVA Technical Procurement is a valued business Partner who contributes to the success of

NOVA’s Journey to be # 1 in the Americas and Goal ZERO drive through collaboration, standard of excellence, customer service

and is strategically driven.

Our Scope: The Technical Procurement team is responsible for the procurement activities associated with large and sustaining

capital, plant operational services and equipment, material repair and operation items and materials management.

We are strategically located in several regional areas, influencing close to $1 Billion Dollars annually across the organization.

8

Technical Procurement Organization Alignment to NOVA’s Growth Strategy

TP Purpose: The purpose of the Technical Procurement Team is to be a clear competitive advantage for NOVA by positively impacting business results through the

supply of goods and services required to support our existing and future business operations and growth projects. The Technical Procurement Team will also have an

explicit and purposeful impact on NOVA’s RC Goal ZERO. This will be accomplished through effective market research, active supplier relationship management, and

consistency in our business process with a continuous improvement focus and drive for quantifiable value generation.

External Market

Factors

• Economic

• Political

• Social/Cultural

• Technological

• Legal

• Environmental

Procurement

Best Practices

Core Competencies

Technical

Procurement

Transformational

Initiatives

FlexibleStakeholder

Centric

Technology

DrivenIntegrated ScalableOrganizational

Attributes

9

Technical Procurement Integrated Center-Led Delivery model

• Several best in class org structure/models were evaluated for NOVA fit and purpose and

ultimately it was determined that a Center-Led organization would drive maximum value for

NOVA versus a centralized or decentralized model

• As a part of the design phase, there was great attention to ensuring the organization focused on

key competencies and attributes all in an effort to create a World Class organization for NOVA

• TP will operate as one integrated organization across all of the NOVA enterprise however be

regional or project centric when needed

• The organization will focus and deliver on five enterprise wide core competencies including:

Category Management, Contract Management, Procurement Management, Procurement

Operations, and Procurement Development

• Several critical new roles (Technical Procurement Leaders) focused on driving NOVA

stakeholder satisfaction and leading procurement competencies delivery across the organization

in order to leverage existing TP resources and aligns with procurement core capabilities

• Strategy development/execution

decisions are tailored based on

stakeholder requirements

• Maximize spend leverage across the

Organization

• Full Integration of resources,

capabilities, tools, and processes with an

alignment to a procurement core

competency

• Enables the development of resources

to multiple skillsets/capabilities to open

opportunities for placement and

advancement among multiple

competencies

• Utilizes a procurement council to align

NOVA business strategies with

Procurement goals

Center-Led

10

• The Integrated center-led delivery model enables Technical Procurement

to align with NOVA’s strategic objectives, and position the team to

perform and meet those strategic objectives in the services that we

provide to our stakeholders.

• TP Organization Core Capabilities will drive both quantitative and

qualitative benefits for NOVA

• Increased staff productivity due to function alignment rather than regional

alignment

• Procurement resources will focus more on strategic activities versus

tactical activities

• Organization will leverage best-in-class technology to support all

functions via process automation, reducing cycle times and transaction

costs

Technical Procurement Integrated Center-Led Delivery modelBenefits

▪ Higher savings and cost avoidance attainment

▪ Greater spend under influence

▪ Spend under formally documented sourcing strategies and exceptions robustly scrutinized

▪ Increased stakeholder alignment

▪ “Right first time” transactions

▪ Higher-performing suppliers and minimal supply disruptions

▪ Rapid access to high-quality data

▪ Lower and competitive functional costs

▪ Faster operational cycle times (Source-to-contract, Requisition-to-order)

▪ Highest productivity levels (RFx, PO per FTE)

▪ Optimal staffing allocation

▪ Greater leveraging of technology and process automation

2X EFFICIENCY

2X EFFECTIVENESS

IMPACT

11

Project Approach

We employed a multi-phased, integrated approach in our transformation journey by assessing the current state,

developing recommended initiatives, and currently implementing these initiatives.

Assess NOVA against

Benchmark/Best

Practices

Implement,Measure,

Refine

Current state assessment and organizational mapping against business requirements/objectives

Refine the business case, plan the implementation and change management

program, and execute implementation

Phase 1: Current State Assessment and Gap Analysis Phase 2: Implementation

Ph

ase

Jou

rney

Co

mp

on

ents

Obtain Voice of the

Customer Input

(interviews,survey)

Refine Initiatives&

ImplementationPlan

RecommendInitiatives

and Roadmap

Identify MajorThemes Define FutureState

Vision

1 2 3

24

1 3

12

NOVA Procurement Benchmark

NOVA initiated a Procurement Benchmark to gain a comprehensive perspective into the TP organization’s current

state environment and to determine key opportunities

Benchmark Scope & Data Guidelines

▪ Geographic Scope:

▪ NOVA Chemical production locations in the

U.S. and Canada

▪ Benchmark data collection period = Fiscal Year 2015

▪ All cost data was represented in US Dollars

Benchmark Comparisons

▪ Size & Complexity Peer Group – represented the median of a custom group of companies in multiple industries that hadsimilar size and business complexity to NOVA

▪ World-Class – represented the median of the companies in the Hackett database that had achieved first quartile performance in both efficiency and effectiveness for Procurement overall

Hackett’s Process Taxonomy

▪ Hackett's PR taxonomy has four process categories, subdivided in fifteen process groups for which FTEs, associated labor costs, and outsourcing costs were captured; Technology costs and other overhead costs were captured on a functional level

Sample Benchmarks

▪ Suppliers Per NOVA Spend

▪ Percentage of Spend that is Competitively Bid

▪ Cost ($) Per Order

▪ Procurement Cost as a % of Spend

▪ Procurement ROI

13

Key Benchmark Findings

Several benchmarks highlighted key areas where NOVA Chemicals could become more efficient and effective

Perception of Procurement’s Role in

Supporting Business Success

Competitive savings

achievement was offset by

high headcount and labor

rates across Procurement

processes

Fewer than 20% of

Internal Customers

viewed Technical

Procurement as a

Valued Partner in

Business Outcomes

More than half of the

Procurement team rated

Sourcing and Category

Management technology

access, quality, and adoption

as inadequate

NOVA Peer Group World-Class

Source: The Hackett Benchmark

3.33.8

9.1

Procurement Operations

costs were nearly 2.5x

peer and 6x world-class

levels, driven by labor

cost and long cycle times

0.29%

0.13%

0.05%

Indirect

47%

52% 42%

43% 47%

53%

6%

10%

Sourcing Execution

Supplier Management

and Development

Sourcing and Supply Base

Strategy

Tools and technology are

available and utilized

Some tools and technology but

they are inadequate

Lack of tools and technology

Procurement Technology Utilization

16%

31%20%

33%

Valued Business Partner

Negotiation/SourcingExpert Gatekeeper Administrator

Return on Investment Requisition and PO Processing Cost as a % of Spend

14

Additional Current State Inputs

In addition to the Procurement Benchmark, NOVA also used multiple inputs to gain further insight into the

Technical Procurement environment and to determine key improvement opportunities

Stakeholder SurveyInterviewGuides

Executive Interviews & Stakeholder Survey

▪ Interviews of NOVA executives were conducted to gain

insight into opportunities according to leadership

▪A stakeholder survey was used to glean additional

insight from both internal and external customers

Best Practices Workshops

▪Over 200 procurement best practices were reviewed

and evaluated against NOVA current state

▪The best practices were aligned to transformational

initiatives to ensure they would be addressed

15NOVA Chemicals Confidential

Technical Procurement – Targeted Service Delivery Model

Technology

Service Design

Information

Organization Design

Service Partnering

Governance

Culture

Talent

• SAP and Source-to-Pay technology is used to promote

efficiency; high degree of automation for transactions,

sourcing, and SRM activities

• Master Data Management is integrated to other systems

• Requisitions are auto sourced to contracts or preferred

suppliers

• Jointly developed/managed efficiency

& effectiveness metrics with

stakeholders

• Spend reporting available & used to

support planning

• Integration of analytics with scorecards to

enable decisions

• Process management is consolidated where possible

• ‘Fit for Purpose’ organizational design

• Selective outsourcing where it is best

suited (EPC & EPCM Major Projects

Contracting Strategies)

• Operating model is continually

refined to meet business needs

• High degree of alignment

• Enterprise end-to-end Source-to-

Pay process management

• Viewed as a valuable business partner

• ‘One NOVA’ strategy successfully

rolled-out

• Levels of skills across process are high and support delivery of

tactical and higher value process activities

• Resources trained on end-to-end processes

• Formal approach to Continuous Improvement

• Technical Procurement has low turnover and high

retention; supported by strong training program

Business

Outcomes

• Technical Procurement participates in

stakeholder budgeting/planning process

• Provides Leadership in strategy

development based on business needs

• Creating a competitive environment in

our supplier base

• Category Management Focus

• Extensive Supplier Management

• End to End Contract Management

Architecture Organization Human Capital

16NOVA Chemicals Confidential

Capability Maturity - Current State vs. Future State

Technical

Orientation

Service-

Minded

Individual Centralized

Globally

Aligned

Manual Automated

Fragmented Optimized

Decentralized

Current State Target State

Achieving LeadingExceedingLagging

Skills &

Talent

Requirements

Information

Governance &

Organizational

Model

Enabling

Technology

Architecture

Functional &

Service

Process

Design

Future StateCurrent State

17

Technical Procurement Transformational Initiatives

# Initiative Service Delivery Component

1 Finalize and Implement the Technical Procurement World-Class Roadmap All

2

Define the future state Technical Procurement Organizational Design

▪ Define the future state Technical Procurement design

▪ Reaffirm roles & responsibilities of each job

Organization Design

3 Implement Strategic Sourcing and Category Management across the organization Service Design

4 Support Design, Development, and Implementation of the Source-to-Pay (S2P) project Technology

5 Implement Contract Management with a safety focus Service Design

6 Implement broad-based Supplier Lifecycle Management Service Design

7 Service Center Integration and Process optimization Org. & Service Design

8 Dashboard Development (Goal Tracking-Strategic & Operational) Information

9 Define Communication Protocol and Reporting Governance

10 Implementation of Market Intelligence Toolbox Information

11 Targeted Training (Enhance Strategic Sourcing, Category Management, Contract Management, and SRM skills) Talent

12 Capital Execution Process Implementation Service Design

13 Business Process Standardization Service Design

14 Maintenance Process Purchasing Effectiveness Governance

15 Align Knowledge Management (SharePoint integration) Technology

18

Three-Year Implementation Roadmap

We Are Here

19

Select Transformational Initiative Summaries

Initiative Scope Benefits

Define the future state

Technical

Procurement

Organizational Design

▪ Define the future state

Technical

Procurement design

▪ Reaffirm roles &

responsibilities of

each job

▪ Review/refine job descriptions based on aspirational roles

▪ Clearly communicate roles/accountability to TP

▪ Conduct cross-functional leadership workshop to develop and

establish clear objectives and goals for the Technical Procurement

Team

▪ Establish a clear framework for integrating TP roles and

responsibilities

▪ Define and socialize Technical Procurement definition of purpose and

World-Class.

▪ Improved understanding of roles and responsibilities

cascading throughout the TP organization to all BUs,

geographies, and levels

▪ Increased visibility to sourcing stages and timelines

▪ Improved speed to market enabling greater efficiency,

increased capacity, and quicker realization of savings

▪ Clearly defined expectations for all parties reduces

confusion and increases buy-in from the businesses,

segments, and geographies

Implement Strategic

Sourcing and

Category Management

across the

organization

▪ Establish a Category Management framework that including:

▪ Profile and document all categories with an appropriate level of

detail and completeness

▪ Establish process for periodic category review and updates

▪ Create a NOVA specific spend taxonomy, that is mapped to a

UNSPSC classifications

▪ Increased spend visibility and maximized category

leverage

▪ Reduced overall risk

▪ Increased supplier collaboration

▪ Spend taxonomy will support a Category Management

framework to understand total spend, while driving

P2P catalog benefits

20

Project CharterFuture Organization Design & Structure

Objective Define the Future state of Technical Procurement Organizational Design

Deliverables/Outcomes

• Organizational Journey Map – demonstrates the realignment of TP’s

Organization including (1) Service Delivery Model (2) Organizational

design (3) Core Competencies

• Job Descriptions/Profiles – align with TP aspirational organizational

model; coordination with HR reaffirmation of roles & responsibilities

Key Interdependencies

• PMO, Manufacturing Site Operations, HR

• All Transformational Initiatives

Team

Project Manager: Jean Carlos Urdaneta

Project Support: Ray Wasdal, Sue Romphf, Amanda Laverty, ME, MW,

PMOSecondary Support: ALL TP

Sponsor: Peter Masterman

Overall Progress Timelines: 70% (2017), 30% (2018)

Scope

• Review/refine job descriptions based on aspirational roles

• Clearly communicate roles/accountability to TP

• Conduct cross-functional leadership workshop to develop and establish

clear objectives and goals for the Technical Procurement Team

• Establish a clear framework for integrating TP roles and responsibilities

• Define and socialize Technical Procurement definition of purpose and

World-Class.

Benefits

• Improved understanding of roles and responsibilities cascading

throughout the TP organization to all BUs, geographies, and levels

• Increased visibility to sourcing stages and timelines

• Improved speed to market enabling greater efficiency, increased

capacity, and quicker realization of savings

• Clearly defined expectations for all parties reduces confusion and

increases buy-in from the businesses, segments, and geographies

• Ensure sustainability of the Organizational Capabilities and building a

framework to maintain professional proficiency in the TP Team

21

Improving Efficiency & Effectiveness Metrics

EF

FIC

IEN

CY

Operational

Cost per order $24 $16

Requisition and PO

processing cost as % of

spend0.29% 0.12%

% of spend supported by

auto-PO<81% >90%

Procurement technology

utilized %56.4% 100%

Customer

N/A

Financial

Total Procurement function

cost % of spend1.261% 0.84%

People

N/A

Technical Procurement Future State

EF

FE

CT

IVE

NE

SS

Operational

% of spend influenced by

Procurement50% 95%

% of spend covered via

formal documented

Sourcing Strategy50% 80%

% of Spend under formal

SPM/SRM program22.5% 60%

% of Suppliers comprising

top 80% of Spend6.17% 4.11%

Customer

% of stakeholders perceive

Procurement as supporting

business success45.5% 80%

Financial

Procurement ROI 3.31 6

People

Ratio of Strategic to

Tactical FTEs0.947 3.5

Current State Future State Current State Future State

22

Risk Matrix

1. Changes in Business

Priorities

2. Resources Workload

Management

3. Stakeholder Availability &

Support

4. Schedule Compliance

5. Source-To-Pay Approval &

Implementation

LIK

EL

IHO

OD

Lo

wM

ed

ium

Hig

h

Low Medium High

SEVERITY & IMPACT

• Operational priorities vs transformational initiatives will have to be actively managed

• Timelines could be refined after further assessment and input from stakeholders

• Source to Pay project is essential to fully achieve expected targets

• Full engagement from our client groups to ensure alignment, getting feedback, and working together in the

implementation of the practices proposed in each transformational initiatives.

Assumptions

23

Our Road to World Class Current Progress

24

Core

CompetenciesCategory Management Contract Management Procurement Management Procurement Operations

Enterprise-

Wide

• Category focused approach consisting of

activities and practices to manage spend,

procurement, and business needs

• Strategic Sourcing activities and execution

(Regional and/or Project Centric as needed)

• Implementation of Supplier Relationship

Management program tailored to NOVA

supply base

▪ Systematically and efficiently managing

contract creation, execution, analysis, and

maintenance for the purpose of maximizing

financial and operational performance and

minimizing risk (Regional and/or Project

Centric as needed)

▪ Support the application of Responsible Care-

Goal ZERO, value driven, and sustainable

principles into Contract Terms & Conditions,

Schedules and Contract Management.

▪ Maintain core knowledge in the overall

procurement execution of sustaining capital

projects as well as specific projects that

require TP to perform procurement activities.

▪ Continue building internal competency in the

management and coordination of purchasing

activities (Material & Equipment) conducted by

third parties

• Performs buying including tactical sourcing,

requisition, and PO processing in compliance

with preferred suppliers and purchasing

policies (Regional and/or Project Centric as

needed)

• Includes supplier master, item master

management and procurement system

support

Regional

Centric

• Category specific resources will work with

business stakeholders to ensure their needs

are met by procurement

▪ Implementation of End to End Contract

Management Lifecycle fit for purpose model in

Maintenance, Sustaining Capital and

Operations.

• Sustain competitive advantage in the

execution of sustaining capital projects

• Warehouse management and Tactical

expediting activities included in this function

Project Centric

• Leverage benefits acquired through the

implementation of category strategies in

project execution as applicable

• Continue building internal competency in the

execution of End to End Contract

Management for Large and Small capital

projects.

• Executes and manages Large growth

projects and Sustaining Capital goods and

equipment purchases for the organization

• Includes capital purchases where NOVA is

self-performing purchasing processes

• Strategic expediting activities are also

executed here in support of these purchases

• Develops and executes plan for capital and

operating spare parts

The Center-Led Model will support the Core Competencies at Enterprise, Regional, and Project level

1

Represent the Technical Procurement capabilities/function that supports the corresponding stakeholder groups

Se

rvic

e D

eli

ve

ry

2 3 4

25

Initiative Deliverables –NOVA Category Management Framework

Category

Strategy

Category

Governance

Category

Performance

Management

Category Strategy

Execution

Category Planning

& Segmentation

Category Definition

Category Stratification

Category Alignment

Category Profiling

Benchmarking Analysis

Defined Category

Objectives

Category Roles

Definition

Ongoing Governance

Competency

Management

Ongoing Management

Initiative Execution

Savings & Benefits

Tracking

Performance

Management

Category Strategy

Development

Step 1 Step 2 Step 3 Step 4 Step 5

▪ What are the categories?

▪ How should they be prioritized?

▪ How should each category be managed across regions and businesses?

▪ What are category objectives and opportunities?

▪ What “value levers” should be applied?

▪ What category strategy will maximize value in each category?

▪ How should category teams be organized to manage categories across the business?

▪ What decision processes and reviews are needed to manage each category?

▪ What is the right execution plan for each Category Strategy?

▪ How should day-to-day management and project-based initiatives be conducted?

▪ How should savings be planned and tracked?

▪ How can savings be realized at the bottom line?

▪ How should operational performance be tracked?

26

Initiative Deliverables –NOVA Procurement Category Spend Taxonomy

NOVA’s existing category taxonomy was restructured to align to a leading practice two level hierarchal taxonomy that

can be leveraged across the enterprise to improve and standardize reporting and analysis capabilities

Construction and

Maintenance

Services31 Categories

Engineering

Services10 Categories

Chemicals18 Categories

General &

Administrative19 Categories

Feedstocks7 Categories

IT & Telecom10 Categories

MRO Supplies24 Categories

HR Services12 Categories

Property Services9 Categories

Professional

Services8 Categories

Responsible Care6 Categories

Transportation

and Logistics14 Categories

Raw Materials14 Categories

Utilities5 Categories

Travel7 Categories

15 Level 1 indirect and direct categories were identified, with a total of 194 reportable Level 2 categories

Indirect

categories

Direct

categories

27

Initiative Deliverables –NOVA Supplier Relationship Management Framework

Create Supplier

Development Program

Assess Supplier

PerformanceEstablish GovernanceStratify Suppliers

1 2 3 4

Evaluate, track, and

document supplier

performance

✓ Define standard and

consistent

KPIs/metrics/SLAs

✓ Track and manage supplier

performance regularly

Identify continuous

improvement opportunities

and value creation

opportunities with suppliers

✓ Identify strategic supplier

partnership opportunities

✓ Evaluate and execute

partnerships with select

suppliers

Defines roles /

responsibilities and activities

for supplier management

✓ Define governance model by

supplier level and establish a

review cycle

✓ Develop RACI, Escalation

paths, and supplier review

guidelines

Segment supplier base within

each category to provide

guidance on SRM activity by

supplier and resource

allocation

✓ Use standard criteria for

stratification in addition to

spend

✓ Perform annually (initially)

Org. Structure

Escalation Path

Supplier

Scorecards

Stratification Criteria

Supplier Opportunity

Identification

28

Initiative Deliverables:Procurement Technology Infrastructure 2.0 A core technology infrastructure helps enable the Procurement Service Delivery Model and associated processes and provides value add throughout

the Procurement lifecycle

eProcurement (Including Catalogs)

Spend Analysis

MDM (Master Data Management)

Contract Management

eSourcing

P-CardExpense

Mgt.(T&E)

Supplier Relationship

Supplier Item Contract Catalog

Market Intelligence/

Research Tools

Reporting & Analytical Tools

Support Tools

Partner Systems

Product Lifecycle Mgmt

Supply Chain

eInvoicingCompliance Management

Risk Management

Payables

FoundationalTransactional Informational/Event-based

Supplier Portal

Core Procurement Infrastructure

29

Key Activities Aug 4 Aug 11 Aug 18 Aug 25 Sep 1 Sep 8 Sep 15 Sep 22 Sep 29 Oct 6 Oct 13 Oct 20

1. Overall Integration Management Support:

• Tactical Supplier Transition Support (e.g., supplier

meeting coordination, communication development,

status tracking)

• Provide contract review and integration support for

Supply Chain, Raw Materials, Indirect Procurement and

logistics

• Support Nova Category Managers with strategy

framework development for top suppliers

2. Procurement Taxonomy Alignment Support

• Support efforts to modify and enhance procurement

taxonomy

• Coordinate Geismar ISNET mapping

3. Support Integration into SAP

4. Major Master Agreement Service Review

• Data Collection

• Perform Analysis

• Develop Recommended Actions

Position to Integrate New Ventures

30

Conclusion

2X

EFFECTIVENESS2X EFFICIENCY

2X ROI

31

Next Steps

Activity Date Range Activity Owner Stakeholder/Resources Involved

a) Formalize future TP Org Structure & Communication with the whole TP Team November Jean Carlos TP Leadership Team, HR, TP Team

b) Implementation of Technical Procurement new Organizational Structure Jan 2018 Jean Carlos TP Leadership Team, HR

c) Implementation of Year 2 Road Map to World Class Jan 2018 – ongoing Jean Carlos Technical Procurement Team

d) Stakeholder engagement Review & Feedback Jan 2018 – ongoing Jean Carlos TP Leadership Team, Main Stakeholders

© 2017 NOVA Chemicals - All rights reserved.

The information contained herein is provided for general reference purposes only. By providing the

information contained herein, NOVA Chemicals makes no guaranty or warranty and does not assume

any liability, with respect to the accuracy or completeness of such information, or product results in any

specific instance, and hereby expressly disclaims any implied warranties of merchantability or fitness for

a particular purpose or any other warranties or representations whatsoever, expressed or

implied. Nothing contained herein shall be construed as a license to use the products of NOVA

Chemicals in any manner that would infringe any patent. Nothing herein shall be copied, reproduced,

distributed or otherwise used without the express written permission of NOVA Chemicals.

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NOVA Chemicals' logo is a registered trademark of NOVA Brands Ltd.; authorized use/utilisation autorisée.

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JOHN KAMAUFF

Principal