March 22, 2018

IHS Markit World Petrochemical Conference 2018

Naushad Jamani

Senior Vice President, Olefins & Feedstock

Olefins Market Developments:A Producer’s Perspective

2

Locations & Fast Facts

Number of Employees

2,800 worldwide

Annual Sales, 2017 (U.S.$)

$3.8 billion

LeadershipTodd Karran

President and CEO

Products

Ethylene and Polyethylene

Chemical Co-Products

Expandable Styrenic

Polymers

3

2017 North America Capacity Rankings as of July 31, 2017*

*Source: IHS Chemical and NOVA Chemicals

4

Milestones Along Our Journey

5

Proximity to Feedstock

6

Alberta / Western Canada

7

Ontario / Eastern Canada

8

US Gulf Coast (Geismar)

9

Increase in US NGL production: driven by growth in associated natural gas production

0

20

40

60

80

100

120

2001 2004 2007 2010 2013 2016 2019 2022 2025

Associated

Non-Associated

US associated and non-associated natural gas production

Source: IHS Markit

© 2018 IHS

Markit

Bcf/

d

0

20

40

60

80

100

120

2001 2004 2007 2010 2013 2016 2019 2022 2025

Marcellus

Utica

SCOOP/STACKWoodford

Niobrara

EagleFordBarnett

Bakken

Permian

Other

US natural gas production

Source: IHS Markit

© 2018 IHS

Markit

Bcf/

d

Confidential. © 2018 IHS Markit ™ All Rights Reserved.

10

Global PE Expansions by RegionWith Demand Growth

Source: IHS Chemical, Nexant, Industry Sources, NOVA Chemicals

• Global demand CAGR ~ 4%• 9 to 10 B lb per annum

• Actual supply growth less than

capacity • Global operating rates top

out near 90%

• Firm new supply falls short of

demand growth• NA supply growth is needed

• NA supply growth < 2 years

global demand growth

• Delays likely to exacerbate

the shortfall

-3.6

-1.8

0.0

1.8

3.6

5.4

7.2

-8

-4

0

4

8

12

16

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

f

2018

f

2019

f

2020

f

2021

f

2022

f

2023

f

2024

f

MTB lb

North America Europe/FSU Middle East Asia Latin America / Mexico Other

Demand

Growth

11

Signs Leading to Long Term Success

Market and Customer

Value Add

New Products & Markets

Execution

Safety,

Reliability,

Quality

Technology

Proprietary

Feedstock

Sustainable

Competitive

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