The Business of ITCory Heiden

Director Enterprise SolutionsCory.Heiden@Chemtura.com

the future through chemistry

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Chemtura Key Facts

Global specialty chemical company listed on the New York Stock Exchange/Euronext (“CHMT”)

Committed to global sustainability and engineering chemical solutions that meet our customers evolving needs.

Manufacture products in 11 countries and sell in more than 100 countries

Our products are used as components to make other end-use products stronger, safer and more efficient

More than 2,500 employees around the world

2013 sales of $2.2 billion*

Global Headquarters Philadelphia, Pennsylvania

* 2013 net sales of $2.2 billion reflects discontinued operations treatment for the completed sales of the Antioxidants and Consumer Products businesses

We are committed to grow a global portfolio of leading specialty chemical businesses, committed to innovation and the creation of value for our stakeholders

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Major End Markets Served

Synthetic Base-stocks

Lubricant Additives

Synthetic Finished Fluids

Hot-cast Pre-polymer Urethanes

Urethanes Coatings

Product Types Industry

• Automotive• Aviation• Marine• Refrigeration• Steel• Specialty

Industrial• Oil & Gas• Recreational• Electronics

Industrialization

Sustainability

Flame Retardants

Brominated Performance Products

Organometallics

Product Types Industry• Electrical &

Electronics• Building and

Construction• Energy• Fine Chemical• Transportation• Industrial

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History: Pre-Chemtura

Looms, industrial dyes, specialty

chemicals

Rubber chemicals, agricultural

chemicals, polymer additives, petroleum

additives & lubricants, urethanes

Bromine, bromine products, flame retardants, agricultural products, polymer additives, pool & spa chemicals, homecare products, fluorochemicals, and optical monomers

Carbon black for tires, polymer additives, silicones … specialty chemicals

Uniroyal1890s

Crompton & Knowles1830s

Witco1920s

Chemtura 2005

(formerly Crompton in 2000, formerly

CK Witco in 1999)

Great LakesChemical Co.

1930s

In 2005, Great Lakes Chemical Co. becomes a subsidiary of Chemtura through merger.

In 1996, Uniroyal Chemical Company, Inc. was acquired by Crompton & Knowles

In 1999, Crompton & Knowles and

Witco merged to become what is now Chemtura

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Chemtura: Since 2005

Divested 2010

Divested 2013

Divested2013

Divested 2014

Divestitures maximize the value of the divested businesses, return value to shareholders, and transform Chemtura into a pure-play industrial specialty chemical company better positioned for organic growth.

Fully Acquired 2013Light emitting diodes

Acquired 2006Esters, finished fluids

Chemtura2014

PVC AdditivesBusiness

AO/UV Business

Consumer ProductsBusiness

Industrial Performance Products and Industrial Engineered Products

ChemturaAgroSolutions

DayStarMaterials,

LLCKaufman Holdings

Baxenden

Acquired 2008Specialty polyurethanes

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SAP at Chemtura

Re-implemented SAP in 2009 Multiple SAP Systems from various acquisitions left highly customized processes

Chemtura moving to a Shared Services environment

Implemented Chemical Industry Best practices (tried to stay “out of box”)

SAP Landscape Core R/3: SD, MM, PP, QM, PM, FICO, EHS

BW/BO

APO

PI

Many Interfaces: Hyperion, IT2, TM1, SFDC, etc.

Core R/3 System is 7 TB

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The Perfect Storm…

In Two Years we Divested 3 business: AO/UV

Consumer Products

Chemtura AgroSolutions

While Outsourcing to HCL Applications

Infrastructure

Desk Side Services

Service Desk

Network

And Implementing Major Transformations Built 3 Datacenters plus Disaster Recovery

Redesigned Citrix

And many more…

Sapphire

2015 topic

A topic for

another time

© 2000 Warner Bros. Pictures

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The Aftermath of the Storm…

CEO Experience: Very Happy

Lots of Money in Bank

Shareholders delighted

Chemtura Experience Company

▪ Stranded Cost Management was key focus

▪ IT No Longer Seen as Partner but as a Vendor

▪ All IT projects other than Divestitures stopped

▪ Frustration with IT over outsourcing

IT▪ No Customer Focus (CEO was customer)

▪ Core IT processes were Broken

▪ Under investment in Applications and Infrastructure

▪ Leadership Turnover

▪ IT worked in Silos (Chemtura and Outsourcer)

For IT to Succeed it Must be Run Like a Business © 1964 United Artists Television

(SS Minnow):

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IT Goal: Transform IT into a Strategic Business Partner

Align IT to meet Customers needs Help business navigate the new reality of reduced capacity, shared resources and

lower budgets

Work with business to help them prioritize the most critical sets of activities

Be customer focused in everything we do

Move focus from operational to transformational (Value Delivery)

Rebuild infrastructure & capability Targeted investments to upgrade infrastructure

Focus precious internal IT talent into high value activities such as architecture and business capability enablement

Investments to stabilize the environment

Critical software version upgrades. Obsolete underleveraged software.

Operationalize Core IT Processes – Outsource operations to a partner Demand Management

Portfolio Management

Asset Management

Project/Program Management

Financial Management Tightly controlled investment model to put dollars where there is real return

Chargeback mechanism

Out of the Ashes We Rise…

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Chemtura’s Approach

Customer Alignment Reorganize IT and establish BRM function

Retained team works on value projects, outsourcer operations

Deploy a Business Aligned IT Strategy

ELT Portfolio Management Process

Develop 3 year roadmaps for all systems

Financial Management Budgeting

Resource Unit Reductions, portfolio rationalization (HW/SW)

Contract negotiations

Drive project costs down

Transparency Complete Transparency (show warts and all)

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Chemtura’s Approach

Process Management Operations Stability

Solid Project Management

Strong CAB

Well run Critical Incident Management

Demand Management for non-Project work

Performance Measurement ROI on projects and services provided

Monitor key IT statistics

Develop measures showing how IT adds value to the business

Governance Vendor governance

Internal IT process governance

Business escalations

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It’s a Journey…

It’s a Long Road ahead and we are just getting started

When success is achieved the benefits are plentiful:

• IT is perceived as a valuable partner, not a cost center

• Transparency as to IT costs and the services provided

• Greater customer service and loyalty• IT quality improvements• Increased staff productivity• Better staffing and outsourcing decision-making

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Questions…