MEA AUTOMOTIVE – A SABIC VIEW Richard Crosby

General Manager – SABIC, Middle East and Africa

US-Saudi Arabian Business Council

No. 1

AGENDA

• The Middle East and Africa

• The MEA Automotive Industry

• SABIC at a Glance

• SABIC Materials for the Automotive Industry

• Enabling Growth in the Region – SABIC Application Development Center

• Wrap

No. 2

The Middle East and North Africa is a dynamic growth region

MIDDLE EAST AND NORTH AFRICA (MENA) IN NUMBERS

No. 3

KINGDOM OF SAUDI ARABIA (KSA) IN NUMBERS

Largest population in GCC—28.1 Million people—growing at 2.3% per year

18th in WEF’s 2013 Global Competiveness Report 12 million barrels a day, the world’s largest Crude Oil producer

7.6 % Non-oil projected growth in 2013 The Gulf’s Largest Pharmaceutical Market

$448 billion in 2013 Construction & infrastructure spending—46% of MENA total

Construction & infrastructure sectors grew 177 % from 2011 – 2012;

2013 Government infrastructure spending to exceed $72 billion

100 $ Billion in electrical projects by 2020 $8 billion on power, water, & alternative energy projects in 2013 leads GCC

4.4% GDP growth 9.5 % annual construction growth 2012 – 2016 World’s 11 largest petrochemical producer

From 2008 – 2012, 3rd best performing global economy, trailing only China & India

$20 billion in new rail projects from 2012 – 2015 34th in Deloitte’s 2013 Global Manufacturing Competitiveness Report

$2.5 billion in Solar & Wind in the next 20 years

264,000 new housing units needed annually by 2020 to meet demand

No. 4

WHY DO BUSINESS IN SAUDI ARABIA?

Saudi Arabia is at the “epicenter” of a key emerging region

Egypt

Libya

Iraq Iran

Oman

UAE

Jordan

Syria Lebanon

Algeria

Chad

Tunisia

Sudan

Niger

Pakistan Kuwait

Morocco

Bahrain/ Qatar

Saudi Arabia

Yemen

Location, Location, Location

No. 5

AUTOMOTIVE IN MEA

Passenger

Light Truck

Heavy Truck

Aftermarket

Jordan

Qatar

Malta

Morocco

Oman

Turkey

Bahrain

UAE

Kuwait

Saudi Arabia

South Africa

Algeria

Ethiopia

Ghana

Kenya

Tanzania

Uganda

Egypt

Tunisia

Ivory

Coast

Lebanon

Nigeria

Yemen

Libya Pakistan

Iraq Iran

Sudan

Syria

No. 6

AUTO IN NUMBERS

GCC: • Auto sales >1.5M

• >10% annual growth rate

Turkey: • 1.2M auto build

• 75% for export

• Leading Bus/Coach/Light truck producer in Europe

South Africa: • 0.7M auto build

• 50% for export North Africa: • Morocco – 0.4M auto build by 2014

• Algeria – 0.1M auto build by 2014

Automotive sales >4MM and production at ~2.3MM by 2014

No. 7

Polymers

Fertilizers

Metals

Performance

Chemicals

Innovative

Plastics

Polyolefins

PVC and

polyester

rubber

chemicals

Specialty

polymers

and polymer

additives

Long steel

and flat

steel

Aluminum

joint

ventures

Ammonia

Urea

compounds

Phosphate

Liquid

fertilizers

Specialty

automotive

Catalysts

Rubber chemicals

Specialty

polymers

Polymer additives

Engineered

thermoplastics:

PC, ABS, PBT,

PPO, PEI

Specialty

compounds

Sheet & film

Polymershapes

Olefins,

oxygenates

and aromatics

Chemical

intermediates &

industrial gases

Chemicals

THE SABIC PORTFOLIO

No. 8

Has changed the thermoplastics

industry and the world

We have been manufacturing

plastics since 1935

Our company created:

• Polycarbonate (Lexan* resin) in 1953

• PPO (Noryl* resin) in 1961

• Polyetherimide (Ultem* resin) in 1985

• Amorphous thermoplastic polyimide

(Extem* resin) in 2006

Since 1950, we have more than 8,000

patents issued and in force

a a

OUR HERITAGE OF INNOVATION

No. 9

PRODUCTION HAS MULTIPLIED BY 5 IN 20 YEARS

A high rate of growth…

Pro

du

cti

on

(m

illio

n to

ns)

…reaching 72M metric tons in 2012

0

10

20

30

40

50

60

70

80

1985 1990 1995 2000 2005 2010 2011 2012

22

13

28

47

69 72

6

67 Metals

5.615

Fertilizers

6.546

Chemicals

46.121

Polymers

11.933

Performance Chemicals

0.558

Innovative Plastics

1.214

No. 10

SABIC MATERIALS IN KSA FOR AUTO INDUSTRY

Performance Chemicals

Planned

• EPDM 2015

• POE 2015

• BR 2015

• CB 2015

• IIR 2015

• POM 2016

• PMMA 2016

• CF 2016

• PU 2019

Innovative Plastics

Current Offering

• Polycarbonate

• PP compounds

• ETP compounds

Planned

• ABS 2015

Polymers Metals Current Offering

• Flat Steel

Current Offering

• PP

• PE

• PVC

Chemicals Current Offering

• MTBE

• EG

• Methanol

Fertilizers Current Offering

• TGU

No. 11

5 MAIN SEGMENTS…SABIC PORTFOLIO HAS A STRONG FIT

Some Fit

Good Fit

Key Segments Relevant Systems

• Body panels & closures

• Windows & glazing

• Bumper fascia & components

• Paints & coatings

• Weatherstrip and seals

• Suspension system/Tires

• Exhaust System

• Steering & Brake Systems

• Front end module

• Crash & energy management system

• Fuel & emissions Systems

• Air induction & turbo

• Engine cooling & HVAC

• Engine and transmisson

• Driveline

• Lighting systems

• Energy storage systems

• Power distribution & wiring

• Infotainment & active safety systems

• EV & HEV systems

• Climate control system

• Interior cockpit system

• Steering wheel & safety trim

• Seating systems

• Trim & Aesthetics

• Door systems & modules

Exteriors

Chassis

Electronics & Electrical

Interiors

Powertrain

Po

lym

ers

Inn

ova

tive

Pe

rfo

rma

nce

Me

tals

Fert

iliz

ers

Ch

em

icals

No. 12

SABIC MATERIAL SOLUTIONS

Brands marked with TM are trademarks of SABIC

No. 13

SABIC APPLICATION DEVELOPMENT CENTER, RIYADH

• Located at Riyadh Technology Valley, KSU

• Total built-up area 42,000 sqm

• Customer application development

• Material and processing optimization

• New process development

• Supporting SABIC’s KSA product portfolio

• Center of excellence for:

Automotive

Packaging

Building and Construction

• Grand Opening Q3 2013

Research and development for applied technologies

No. 14

WRAP

• MEA is a rapidly developing region

• Growing population want more luxury items … prefer locally produced

• Automotive industry is growing … becoming significant in several areas (Morocco,

Turkey, South Africa)

• SABIC is committed to providing locally available raw materials

Plastics

Metals

Chemicals

• SABIC strives to be a solutions provider not just a materials provider

• SPADC is designed to help local manufacturers win

THANK YOU