SPECIALIZED INDUSTRIAL PARKS

JUNE 26, 2013 Michigan - USA

No. 1

SABIC CHEMICALS AND POLYMERS ENABLE AUTO INDUSTRY

Rubber tire:

PBR & Carbon Black

Seats:

Polyurethane

Light shield:

Polycarbonate

Electrical parts:

POM (PolyAcetal

Monomer) / DOP

Exterior parts:

Carbon Fiber (potential),

Polyurethane

Anti-freeze

Ethylene Glycol

Lubricants:

LAO and Ethoxylates

Paints and coatings: Acrylates,

OXO , MMA, Polyurethane &

Ethoxylates

Powertrain body & chassis:

Metals

Exterior parts:

Plastics, Polyurethane

Structural panels: Polyurethane,

Plastics

Rubber:

Hoses, belts

Electronics:

Acrylonitrile Butadiene Styrene

(ABS), Polyurethane

Exterior parts:

Polycarbonate

Light shield:

PMMA

Rubber seals:

EPDM

No. 2

KSA SPECIALIZED INDUSTRIAL PARKS VISION ENABLES AUTO INDUSTRY INVESTORS

No. 3

THE SPECIALIZED PARKS

Engineering Plastics Park

(POM, PMMA, Acrylonitrile

Butadiene Styrene (ABS),

Polycarbonate)

Metals Park Rubber Park (tire &

rubber goods)

Carbon Fiber Park Polyurethane Park

(seating & insulation)

Additives Park (fuel, lubricants

and construction)

Paints and Coatings

Park

The specialized parks will produce parts and finished materials for automotive and other

wide industrial application hosted in the kingdom of Saudi Arabia for consumption by

markets in Saudi Arabia, Middle East, Africa and Europe.

No. 4

BESIDE AUTO INDUSTRY THE PARKS WILL NEED MATERIAL FOR SAUDI ARABIA’S MEGA INDUSTRIES

The Kingdom of Saudi Arabia is the:

• Largest oil producer in the world

• 5th producer of chemicals and petrochemicals in the world

• Largest producer of desalinated water in the world

• Plans to be number 1 producer of non fossil fuel and electric power generation

• Plans for downstream industry beyond oil and chemicals

• Plans for automotive industry

All need industrial materials and services

No. 5

POWER

SAUDI ARABIA MAJOR INDUSTRIAL CORPORATION MAP

Saudi Arabia HYDROCARBON

RESOURCES

Enablers

WATER REFINING METAL Basic Chemicals

Downstream Chemicals Specialized

Industrial

Parks provide

materials and

services

Auto industry

Household

industry

Non fossil fuel energy

industry Packaging

industry

No. 6

PARKS WILL MANUFACTURE AND DISTRIBUTE PRODUCTS TO LOCAL AND REGIONAL CUSTOMERS

Unit Park

capacities

To

KSA

To

ME

To

Africa

To

Europe

& ROW

Quantity

(KTA) 1200 682 235 127 159

% 100 57 20 11 12

Middle East (including GCC & Turkey)

235 KTA

20%

Park’s finished

products output

(Cap:1200 KTA)

Europe 159 KTA

12%

AFRICA 127 KTA

11%

Local (Saudi Arabia) 682.6 KTA

57%

Africa combined revenue expected to be 2.6

trillion by 2020. It is considered an attractive

region for future investment (based on Ernst &

Young’s survey, 2011)

No. 7

RUBBER PARK

RUBBER INDUSTRY OVERVIEW

Tires

Hoses

Seals

Engine

belts

Conveyor

belts

END APPLICATIONS

Primary raw

materials

Utilities

Nat/Syn rubber

CBlack/Fillers

Fine Chem

Process Oil

Electricity

Steam

Machinery

Mixing

Tires

MRG

Steel cord

Fabric

Molds

Wire/Fabric

Metal Inserts

Semi finished

rubber (sheet etc)

Testing

Institutes

Warehouse

Distribution

Scrap and

Recycling

New Sales

Service/Repair Mold & Dies Engineering designs

(CAD/ CAM)

Info Centers

Trade

Association

Sales

Marketing

T&I; applications

know-how

No. 8

ENGINEERING PLASTICS PARK (POM, PMMA, ABS AND POLYCARBONATE )

Example: POM Rod and Sheet is creating various

segments of metal replacement industries

Few companies are in this business

Global POM Rods &

Sheet Demand (Demand is 150 KTA)

Sheet Rods

No. 9

POLYURETHANE PARK

END APPLICATIONS

System

House

Performance

products Intermediates Commodities

SABIC KSA

System House

Tier 1&2 OEMs End producer

Target Anchors

T&I: applications know-how

ADDITIVES PARK OVERVIEW

No. 10

PAINTS AND COATINGS PARK

Paints

Coatings

Tier 1 OEM

Primary raw

materials

Acrylate

Esters

MMA

Surfactants /

stabilizers

Solvent

Electricity

Steam

Reacting Mixing

Resins

Primary raw

materials

Machinery

Pigments

Solvent

Additives

Utilities

Electricity

Steam

Acrylic Latex

Exterior

Acrylic

Latex

Interior

Gloss White

Acrylic Latex

Warehouse

Distribution

Scrap and

Recycling

Utilities

Machinery

Sales

Marketing

END APPLICATIONS PAINTS AND COATINGS OVERVIEW

T&I: applications

know-how

No. 11

ADDITIVES PARK

Intermediate

Esters

Amides

OEMS

Oil and gas

products

Intermediate

Esters

Auxiliaries

OEMS

Cement and

construction

products

Oil and Gas

Construction - Cement

Ethoxylates

Ethanolimines

Ethoxylates

Ethanolimines

ADDITIVES PARK OVERVIEW END APPLICATIONS

T&I: applications know-how

No. 12

ADDITIVES PARK

Energy

industry

Industrial

lubricants

Diesel fuel

additives

ADDITIVES PARK OVERVIEW END APPLICATIONS

LAO

C8/C10/C12

Suffonated

LAO Oil recovery

Isomerization Drilling fluid

Synthetic

lubricant

Polyalphaolefins

(PAO)

2-EH 2-EH Nitrate Diesel fuel

additives

T&I: applications

know-how

LAO C20-24

LAO C16-18

No. 13

CARBON FIBER PARK

Primary raw

materials

Carbon Fiber

Chopped CF

Resin

Electricity

Steam

Sales

Marketing

Warehouse

Distribution

Trade

Association

Utilities

Short Fiber

Molding Comp.

Textiles

Pultrusion

Filament

Winding

Prepregs

Papers / Veils

Preforms

Automotive

Oil & Gas /

Press. Pipe

Aviation (Interior)

Pultruded Cables

Compounds

Wind Energy

Construction

Machinery

New Sales

Service/Repair T&I: applications know-how

No. 14

SABIC INSPIRES NEW INVESTORS

• SABIC products provide continuous leadership and raw materials supply security

• Technology and Innovation (T&I) capabilities; 18 technology and application (innovation) centers

worldwide. This is an unmatched T&I capability in the Middle East

• Specialized technical institutes which will support specialized parks, such as High Institute for

Elastomers Industries (HIEI) and the Higher Institute for Plastics Fabrication (HIPF)

• Strong global connections and relationships with industries and investors

• SABIC itself is a customer as it purchases $12 billion of industrial materials and services

• Strong project engineering capabilities to enable the execution of Giga complex; a recent SABIC

project included a 50,000 strong labor force at one site, at the same time.

We talked about the WHAT to do

Now

We talk about the HOW to do it

No. 16

PLUG & PLAY CONCEPT FOR THE UPCOMING SPECIALIZED INDUSTRIAL PARKS IN SAUDI ARABIA

Parks (Rubber/POM/PC/ABS, PU,

metals,CF, paints & coatings,

lubricants /additives/others)

Free Zone Plug & Play City Gated and Fenced

Skilled Manpower Medical Services Financial Services

Strategic

Procurement Co.

Plug & Play City

Managing Co.

Market Info

Center

T&I Coordinator

Center

Industrial

Support

IT Company Project Management

Contractor /

Engineering Co.

Office Facilities &

Accommodation

Warehouse

Logistics

(SCM)

Raw Material

Specialized Utilities

Seaport Airport Railroads Roads

No. 17

BRING YOUR CORE BUSINESS TO THE PLUG AND SPECIALIZED INDUSTRIAL PARK

• One-stop shop for all paper work approval and permits

• Synergize your industry presence with other manufacturers

• Access trained workforce

• Rent general services

• Rent specialized industrial services

• Technology and Innovation coordination center on site

• Market information center

• Park strategic procurement services; synergize on volume

No. 18

SABIC AND ROYAL COMMISSION OF INDUSTRIAL CITIES HAVE SUCCESSFUL EXPERIENCE IN SAUDIZATION

• Experience is available for the investors

• SABIC is running with over 85 % Saudis (22,000 jobs) itself and is now Saudizing 5,000 contactor

jobs in Saudi Arabia

• SABIC Program content :

• English and work ethic

• Technical training

• On Job Training (OJT)

• It can be expanded to provide the specialized parks human assets

• Government participated in the cost of training and trainees

• Quality of graduates is high with a proven track record

No. 19

THE FORMATION OF COUNCIL OF INVESTORS (ONE FOR EACH PARK)

DESIGN

(Advisory) 1 IMPLEMENTATION

(Advisory) 2 OPERATION

( Take Over) 3

Early

engagement

Investor

Park Investors Council

Will enable efficient park design, “ fit for purpose”

Investor Investor Investor Investor

No. 20

ENGAGEMENT WITH INVESTORS (WORK IN PROGRESS )

Status of engagement with investors and technology providers

Park MOUs signed Engaged & MOU not signed Planned & no engagement yet

Engineering Plastic

(Rubber / POM ) 1 10 1

PU 3 4 6

Paints and Coatings

(MMA / Acrylates) 0 3 2

Additives (OXO / LAO) 1 11 3

Paints and coatings

( Ethoxylates /

Amines) 4 17 6

Carbon Fiber 0 3 8

Total 9 48 26

No. 21

WAY FORWARD – SIGN IN

• Investors interested on the specialized parks are welcome to :

• Join us today after the program in an "Open discussion on SABIC’s Specialized Industrial Parks” at

Salon 4 (IV) from 3:30 PM to 5:30 PM

• Sign in on the website www.sabic.com/AutoConf

No. 22

THANK YOU

No. 24

This presentation has been prepared by SABIC exclusively for information purposes. This presentation has not been

reviewed or registered with any public authority or stock exchange. Recipients of this presentation may not reproduce,

redistribute or pass on, in whole or in part, this presentation to any other person.

The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient

should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice.

Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation

in any respect, including but not limited to in relation to the purchase or sale of shares in any jurisdiction.

To the fullest extent permitted by law, SABIC does not make any representation or warranty, express or implied, as to

the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations

contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of

negligence or otherwise is accepted. Neither the issue nor delivery of this presentation shall under any circumstances

create any implication that the information contained herein is correct as of any time subsequent to the date hereof and

SABIC does not intend, and does not assume any obligation, to update or correct any information included in this

presentation.

This information includes and is based on, among other things, forward-looking information and statements, which are

based on the current expectations, estimates and projections of SABIC or assumptions based on information available

to SABIC. Such forward-looking information and statements reflect current views with respect to future events and are

subject to risks, uncertainties and assumptions. SABIC does not give any assurance as to the correctness of such

information and statements.

SABIC and brands marked with ™ are trademarks of SABIC or affiliates.

© 2013 Copyright by SABIC. All Rights Reserved.

DISCLAIMER