Borealis Agrolinz Melamine GmbH

Presentation of January, 2012

2010 Borealis AG

Storyline

General Info on Melamine & Borealis Melamine Market Overview Melamine Applications

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Ownership

36%

64% JV

JV

100%
Borealis Agrolinz Melamine GmbH
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Providing Solutions in Polyolefins

Infrastructure

Mobility
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Advanced Packaging

and Base Chemicals

phenol & acetone Phenol and Acetone Feedstocks and Olefins

Melamine

Fertilizer

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Borealis Agrolinz Melamine Gmbh

Leading producer of melamine and fertilizer In 2007, Borealis Agrolinz Melamine GmbH was incorporated into Borealis

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27. March 2012 BU Melamine

The Melamine Product

Melamine is a standardized product with a global volume of 1.1 Mio tons/ year White crystalline powder, organic base with the chemical formula C3H6N6 made from urea Mostly processed as a resin, a thermosetting material made out of melamine and formaldehyde Melamine business is global, but with regional price differences Major melamine producers are integrated into own urea production (>90%) Main applications are in the wood working industry (~80%)

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BAM is Market Leader in Europe

Melamine market shares 2010
European market share
Europe (incl. Levante) 29% Asia 6%

NAM 13 %

29%
China 0%

SAM 19%

Pac 3%

71%

Borealis

Others

Global market 2010: 1.140.000 to

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Source global: BAM

International Network is Essential for Applying Global Business Intelligence

Piesteritz Linz Rockport Istanbul

Moskow

Singapore

Sao Paulo Production site Sales office / agent

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Borealis is Technology Leader with Own Proprietary Melamine Technology

Plants in Linz / Austria Technology: Low & High pressure plant Capacity: 50.000 mt/year Plants in Piesteritz / Germany Technology: High pressure plant Capacity: 80.000 mt/year Production start: 2005

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Melamine Competitor Landscape

Ranking per Production Capacity in 2011
We are # 2 in Europe and globally! Top 10 players account for 2/3 of global melamine capacity
Top ten competitors 2011 [kt]
OCI (NL, CN, ID) Borealis Agrolinz Melamine (A, D) Sichuan Golden Elephant (CN) Pulawy (PL) Sichuan Chemical Works (CN) HIG Capital LLC (ex Cytec) (USA) BASF (D) Qatar Melamine Company (QR) Methanol Holding Trinidad (TT) Nissan Chemical Industries (JP)
130kt

Borealis Agrolinz Melamine GmbH is a global melamine player

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Source: Borealis Agrolinz Market Intelligence

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Rising Global Consumption (2008-2020)

4% 3%

7%

6%

2100

1600

2008 2010 2015 2020 2008 2010 2015 2020

North America
1200 1100

2008

2010

2015

2020

China

Europe (incl. Levante)

6%
7%

2008 2010 2015 2020

2008 2008 2010 2015 2020

2010

2015

2020

Total

South America

Asia/Pacific

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Source: Borealis

Product Value Chain & Applications

Natural Gas

Raw Materials
Ammonia Urea
High Pressure Low Pressure

Processes Product / Intermediate

95%

Melamine
5%

Thermosetting Amino Resins

Laminates

Wood Panels

Molding Compounds

Coatings

Flame Retardants

Others

End Products

~80%

~9%

~9%

~2%

Major producers are integrated into own urea production (>90%) Main applications are in the wood working industry (~80%)
Source: Complainants, CEH (Chemical Economics Handbook) Marketing Research Report 2008
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Melamine Applications I

Wood panels (25%*)

Laminates, plywood, particulate boards, MDF,... Cost-effective, strong, moisture resistant and sustainable use of wood recourses
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Laminates (50%*)
Laminate flooring, furniture tops, kitchen/bathroom, counter-tops, furniture,... Durable, scratch, chem. & moisture resistant, antibacterial, heatproof

Moulding compounds
(8%*)

Tableware, picnic ware, childrens dinnerware, electrical equipment, handles for pans and other utensils Cost-effective, strong, moisture resistant
*) Share of total melamine consumption

Melamine Applications II

Coating (9%*)
Vehicle body panels, household appliances drink cans, coil of metal sheeting Good colour retention, wear resistance and scratch resistance
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Flame retardant
Application in foam products (e.g. bed mattresses, public seats, upholstered furniture), flame retardant coating (fire doors, steel constructions) Consumer safety without halogenated flame retardants

Concrete plasticizer
Sulphonated melamineformaldehyde resins are used as plasticizers in concrete to improve the flow characteristics Stronger end product, reduced drying time, better concrete quality
*) Share of total melamine consumption

Approx. 80 % of Melamine Consumption is within Woodworking Industry

4,40% 8,10% 9,50% 4,60%

2010

50,60% 22,80%

Laminates Surface Coatings Paper/ Textiles

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Wood Adhesives Moulding Compunds other

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No Major Changes in Global Melamine Applications

4,40% 4,60% 8,10% 9,50% 8,50% 9,50% 4,60% 4,10%

50,60% 22,80% 21,90%

51,40%

2010
Laminates Surface Coatings Paper/ Textiles Wood Adhesives Moulding Compunds other Laminates Surface Coatings Paper/ Textiles

2015
Wood Adhesives Moulding Compunds other

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Expected Growth Rates in Applications 2010- 2015

in kt
900 800 700

6,0% (*)
855,10

2007

2010

2015

611,1

600 500 400

639,90

4,8%(*) 5,7%(*)
364,50

302,4

300 200 100 0 Laminates

287,70

6,6%(*)
157,80 102,30 140,60 119,70 108,5 91,6

6,6%(*)
55,60 76,60 45,3

3,3%(*)
58,30
other

Wood Adhesives Surface Coatings

Moulding Compunds

Paper/ Textiles

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(*) annual growth rate during 2010- 2015 Source: Laves

68,50

66,2

End of presentation Ulf Panzer January 31st, 2012

The information contained herein is to our knowledge accurate and reliable as of the date of publication. Borealis extends no warranties and makes no representations as to the accuracy or completeness of the information contained herein, and assumes no responsibility regarding the consequences of its use or for any printing errors.

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