What do you believe are the greatest challenges facing the sector or industry you would

like to specialize in at IE?

What role do you hope to be able to play in this

sector or industry in the medium term?

® The Middle East petrochemical landscape

® The key challenges for the industry

® Pivotec, HyVent Technology & Gulf Interchem

® What makes us unique?

® Companies’ actions on industry’s challenges

Summary

The Middle East Petrochemical landscape

® Historic development attributable to unexploited, abundant natural gas reserves

® Phenomenal growth through organic expansion

® The sector in digits (2011):® Generates sales of 44.7 Bio USD® Accounts for 43% of non-oil exports® Saudi Arabia accounts for 67% of Middle East

production® 80% of production is exported outside Middle

East® 80,000 direct employment opportunities

The petrochemical market players

The key challenges for the industry

CREATE ECONOMIC

VALUE

Innovation

Value Chain

Responsible Supply Chain

PROTECT NATURAL

RESOURCES

Resource efficiency

Communities

Waste

DEVELOP PEOPLE

Employees Social commitment Ethics

Driving Growth through Sustainability

Why these key challenges?

Þ Capitalize on feedstock advantagesÞ Develop a less cyclical product base, thus

yielding more stable returns over the long termÞ Capture the value-adding that is now exportedÞ Newly distorted supply-demand balance due to– increasing export supply > shale gas innovation (US)

– decreasing import demand > MeOH-to-olefins (Asia)

Þ Rapid expansion of urban youth population– create value-adding job opportunities– leverage on multicultural diversity

The key challenges in action

Innovation

Innovation focus on Value creation Cost optimization Safety & quality

Acquire requisite technology & know-how for downstream developments

Increased budget allocation to R&D in strategically important areas of competence

Value Chain

Driving Growth through Sustainability

CREATE ECONOMIC

VALUE

PROTECT NATURAL

RESOURCES

DEVELOP PEOPLE

Focus on product lifecycle management Reduce non-renewable

energy & material inputs to process

Reduce environmental foot-print of manufacturing & distribution processes

Develop solutions to enable customers to reduce footprint

Develop solutions to reduce society’s footprint

Design product and process solutions to close the lifecycle through recovery of material and energy value.

Responsible Supply Chain

Infrastructure upgrade Port side facilities Railway Land Bridge (KSA) Road network

Challenge of piracy Address road safety Transport of hazardous

material

The key challenges in action

Resource efficiency Feedstock diversification Reduce carbon footprint

Reduce water usage Reduce emissions Reduce energy usage Reduce material loss

Communities

Driving Growth through Sustainability

CREATE ECONOMIC

VALUE

PROTECT NATURAL

RESOURCES

DEVELOP PEOPLE

Responsible Care® initiative endorsed

Leverage on community projects applied to Plastic related education Safety Water Health(care) Environment

Waste

Reduce waste generation

Develop innovative solutions to upcycle waste

Foster partnership & collaboration with specialized companies

The key challenges in action

Employees Attract & retain talent Improve employment of

local population Improve working &

living conditions Training & education

Social Commitment

Driving Growth through Sustainability

CREATE ECONOMIC

VALUE

PROTECT NATURAL

RESOURCES

DEVELOP PEOPLE

Downstream expansion necessity to cope with demographic pressures

Development of labor-intensive processing centers

Promote diversity

Ethics & compliance

Install Code of Ethics Competition Law International Trade

Controls Insider Trading and Stock

Tipping Conflicts of Interest Environment, Health,

Safety and Security Intellectual Property Product Risk

Management

Growth through downstream innovations shall require

® ability to access, acquire or develop technology® attrition and retention of skilled workers® mental shift in driving away from existing business

models® investor-friendly business environment

Growth through downstream innovations shall yield® generation of valuable job opportunities® reduction in environmental footprint® long-term sustainable societal developments® capture the value-adding creation at origin

The key challenges summarized

Since 2011, Bernard van den Wouwer has established three interlinked companies active in developing, processing, upcycling and trading chemical waste streams generated at petrochemical production facilities.

The core focus of the developments center aroundÞ low-value, highly complex (petro)chemical waste streamsÞ convert low-value streams into valuable chemical

productsÞ potential for upcycle recycling through innovative

technologyÞ zero waste-out-of-wasteÞ streams originating from Middle East production facilities

Pivotec, HyVent Technology & Gulf Interchem

Integration of the companies

HyVent Technology (Bahrain / The Netherlands) owner of patented technology for waste treatment (hydrothermal) owner of state-of-the-art laboratory in The Netherlands business model based on licensing agreements

Pivotec Arabia (Bahrain / Saudi Arabia) processing, production & treatment of organic or inorganic chemicals access to treatment technology through sourcing business model based on tolling fee agreements

Gulf Interchem (Bahrain) trading arm of the business set-up marketing of new chemical molecules on international market business model based on purchase-sales agreements

Road

to m

arke

t

Note: Bernard van den Wouwer is the Managing Director of all companies

Pioneering & innovatorÞ technology-driven knowledge base (chemistry,

engineering)Þ patentable innovations Þ first-time producer of chemical molecules in Saudi

ArabiaÞ total solution provider

Create shareholder value for petrochemical producer

Þ waste disposal cost savingÞ revenue generation from waste streams’ sale (pay-

for-waste)

What makes us unique?

What makes us unique? (cont.)

Sustainability approachÞ environmental-friendly treatment of waste

streamsÞ climb the “Waste Hierarchy”-ladder from disposal

to re-use / recycleÞ first-of-its-kind: waste streams drive innovation

Social engagementÞ direct employment opportunities for local

communityÞ high-end jobs throughout the treatment plant

Companies’ action on industry’s challenges

CREATE ECONOMIC

VALUE

Innovation

Value Chain

Responsible Supply Chain

PROTECT NATURAL

RESOURCES

Resource efficiency

Communities

Waste

DEVELOP PEOPLE

Employees Social commitment Ethics

Driving Growth through Sustainability

“The future will be green &

sustainable,

or not at all”

Adapted from Jonathon Porritt

Sources® GPCA website (www.gpca.org.ae)

® Sustainability Report Borouge 2012

® Sustainability Report Sabic 2012

® Annual Report Saudi Kayan 2012

® Annual Report Tasnee 2010® The GCC in 2020: Downstream Expansion in the

Middle East Chemical Industry (KPMG Report – Dec 2011)

® plant pictures: Borouge, Kemya, Tasnee, PetroRabigh, Saudi Kayan, Sharq, Petrokemya, BASF, Ineos, Qapco, Jana, Equate

Addendum