Creating Value Through Chemistry

Sadara Chemical
Company:
A Game Changer

Ziad S. Al-Labban,
Chief Executive Officer
May 13, 2013

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Creating Value Through Chemistry

Formed October 31, 2011

CONTAINS CONFIDENTIAL INFORMATION OF SADARA AND ITS TECHNOLOGY LICENSORS 2

 Sadara’s Purpose

• Profitable, world-class company

• Create economic value from refinery
liquids (naphtha)
• Support the Kingdom’s economy

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CONTAINS CONFIDENTIAL INFORMATION OF SADARA AND ITS TECHNOLOGY LICENSORS 3
 Creating Value Through Chemistry

Chemical Industry Critical Success Factors

Parameter Key Objective

Size Capture economies of scale

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 • Currently 17,000 construction
workers on site – growing to over
50,000;
• Engineering and construction on
schedule for 2015 startup

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CONTAINS CONFIDENTIAL INFORMATION OF SADARA AND ITS TECHNOLOGY LICENSORS
 Creating Value Through Chemistry

Chemical Industry Critical Success Factors

Parameter Key Objective

Size Capture economies of scale

Location Access to reliable feedstocks /

Deficit markets

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 Creating Value Through Chemistry

Conversion
Park
Linde
HP JV Saudi Kayan
SChem

Sadara Ar Razi
SAAC
Satorp
NIGC
SASREF
Marafiq

KFIP
(Liquids Ports)

JCP
(Solids Ports)
N

Note: Map is Illustrative and not to scale

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 Creating Value Through Chemistry

Chemical Industry Critical Success Factors

Parameter Key Objective

Size Capture economies of scale

Location Access to reliable feedstocks /

Deficit markets

Technology Cost advantage / Product differentiation

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 Creating Value Through Chemistry
Traditional Technology Differentiated Technology

Sadara’s Ethylene
Oxide  Ethylene Oxide  Ethanolamines

Game-Changing
 Ethyleneamines  Butyl Glycol Ethers
and  Ammonia  Butanol
Derivatives
Technology Propylene  Propylene Oxide
Oxide  Propylene Glycol  Propylene Glycol
and  Polyols  Polyether Polyols
Mixed Feed Cracker  Hydrogen Peroxide
Ethane  Ethylene
Derivatives
 Propylene
 Pygas  HCL-CL2
 PMDI
Naphtha Aromatics:  Aniline
 Benzene  Aromatics  MNB
 Toluene Isocyanates  Chlorine  Formalin
 HyCO  Nitric Acid
 TDI
 TDA
 DNT
 Solution
Olefins/
 LDPE Polyethylene
Polyolefins  Elastomers
CONTAINS CONFIDENTIAL INFORMATION OF SADARA AND ITS TECHNOLOGY LICENSORS 9
 Creating Value Through Chemistry
Traditional Technology Differentiated Technology

Sadara’s Ethylene
Oxide  Ethylene Oxide  Ethanolamines

Game-Changing
 Ethyleneamines  Butyl Glycol Ethers
and  Ammonia  Butanol
Derivatives
Technology Propylene  Propylene Oxide
Oxide  Propylene Glycol  Propylene Glycol
and  Polyols  Polyether Polyols
Mixed Feed Cracker
Ethane  Ethylene
Derivatives  Hydrogen Peroxide
 Propylene
 Pygas  HCL-CL2
 PMDI
Naphtha Aromatics:  Aniline
 Benzene  Aromatics  MNB
 Toluene Isocyanates  Chlorine  Formalin
 HyCO  Nitric Acid
 TDI
 TDA
 DNT
 Solution
Olefins/
 LDPE Polyethylene
Polyolefins  Elastomers
CONTAINS CONFIDENTIAL INFORMATION OF SADARA AND ITS TECHNOLOGY LICENSORS 10
 Creating Value Through Chemistry

Insulation
(Polyurethane)

Wire & Cables

Outside Seal (HP-LDPE)
Anti-Freeze Paints
(Elastomers)
(Propylene Glycol) (Glycol Ether)

Interior Trim
(Elastomers)

Seating
(Polyurethane)

Upholstery
Detergents (Polyurethane,
Barrier Film Technology Solution
(Amines)
(Solution Polyethylene) Polyethylene)

Bumpers
(Polyurethanes)
Water Filtration
(Solution Polyethylene, LDPE) 11
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 Creating Value Through Chemistry

Chemical Industry Critical Success Factors

Parameter Key Objective

Size Capture economies of scale

Location Access to reliable feedstocks /

Deficit markets

Technology Cost advantage / Product differentiation

Integration Fully back integrated

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 Creating Value Through Chemistry

Intelligent Integration:
Recycled HCl Stream • During isocyanate
production, most
Chlor-
Alkali
chlorine is converted
Isocyanates Isocyanates
Cl2
(Make-up) Process Products to HCl which we
recycle
HCl
Cl2

HCl – CL2
Process

Source: Uhde

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 Creating Value Through Chemistry

Reduced Power Consumption

HCI + CI2 O2
• Chlorine is an important base
chemical but energy-intensive
• Uhde’s process reduces power
H+ O2 consumption up to 30%
H2O
• Corresponding cut in indirect
CO2 emissions
HCI
Anode
ODC
Membrane
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Source: Uhde CONTAINS CONFIDENTIAL INFORMATION OF SADARA AND ITS TECHNOLOGY LICENSORS
 Creating Value Through Chemistry

Summary
• Two powerful parents
• Competitive advantage:
– Economies of scale
– Advantageous location
– Differentiated technology
– Power of integration

Source: Uhde

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 Thank You

www.sadara.com 16