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Borealis Agrolinz Melamine GmbH Presentation of January, 2012

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GStoryline

§ General Info on Melamine & Borealis

§ Melamine Market Overview

§ Melamine Applications

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Ownership

64%36%

JV

JV

Borealis Agrolinz Melamine GmbH

100%

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Providing Solutions in Polyolefins

Advanced Packaging

Infrastructure

Mobility

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…and Base Chemicals

phenol & acetone

Melamine Fertilizer

Feedstocks and OlefinsPhenol and Acetone

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27. March 2012

BU Melamine

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 C3H6N6made 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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GBAM is Market Leader in EuropeMelamine market shares 2010

Europe(incl. Levante)

29%

Asia6%

SAM19%

NAM13 %

Pac3%

China0%

Global market 2010: 1.140.000 to

Source global: BAM

29%

71%

OthersBorealis

European market share

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International Network is Essential for Applying Global Business Intelligence

Production site

Sales office / agent

PiesteritzLinz

Rockport

Sao Paulo

Istanbul

Moskow

Singapore

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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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AGMelamine Competitor LandscapeRanking per Production Capacity in 2011

§ We are # 2 in Europe and globally!

§ Top 10 players account for 2/3 of global melamine capacity

Borealis Agrolinz Melamine GmbH is a global melamine player Source: Borealis Agrolinz Market Intelligence

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Nissan Chemical Industries (JP)

Methanol Holding Trinidad (TT)

Qatar Melamine Company (QR)

BASF (D)

HIG Capital LLC (ex Cytec) (USA)

Sichuan Chemical Works (CN)

Pulawy (PL)

Sichuan Golden Elephant (CN)

Borealis Agrolinz Melamine (A, D)

OCI (NL, CN, ID)

Top ten competitors 2011 [kt]

130kt

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Rising Global Consumption (2008-2020)

Source: Borealis27. March 2012

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1200

1100

1600

2100

2008 2010 2015 2020

Total

6%

2008 2010 2015 2020

Europe (incl. Levante)

3%

2008 2010 2015 2020

North America

4%

2008 2010 2015 2020

South America

7%

2008 2010 2015 2020

China

7%

2008 2010 2015 2020

Asia/Pacific

6 %

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Product Value Chain & Applications

Source: Complainants, CEH (Chemical Economics Handbook) Marketing Research Report 2008

High Pressure Low Pressure

Thermosetting Amino Resins

Laminates Wood Panels Molding Compounds Coatings

95%Melamine

Natural Gas

Ammonia

Urea

Others

Raw Materials

Processes

Product / Intermediate

End ProductsFlame Retardants

~80% ~9% ~9% ~2%

• Major producers are integrated into own urea production (>90%)

• Main applications are in the wood working industry (~80%)

5%

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GMelamine Applications I

Wood panels (25%*)

Laminates, plywood, particulate boards,

MDF,...

Cost-effective, strong, moisture

resistant and sustainable use of wood recourses

Laminates (50%*)

Laminate flooring, furniture tops,

kitchen/bathroom, counter-tops, furniture,...

Durable, scratch, chem. & moisture

resistant, antibacterial, heatproof

Moulding compounds (8%*)

Tableware, picnic ware, children‘s dinnerware,electrical equipment,

handles for pans and other utensils

Cost-effective, strong, moisture resistant

*) Share of total melamine consumption

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GMelamine Applications II

Coating (9%*)

Vehicle body panels,household appliances

drink cans,coil of metal sheeting

Good colour retention, wear resistance and

scratch resistance

Flame retardantApplication 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 plasticizerSulphonated melamine-formaldehyde 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

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Approx. 80 % of Melamine Consumption is within Woodworking Industry

50,60%

22,80%

9,50%

8,10%4,40% 4,60%

Laminates Wood Adhesives

Surface Coatings Moulding Compunds

Paper/ Textiles other

2010

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No Major Changes in Global Melamine Applications

50,60%22,80%

9,50%

8,10%4,40% 4,60%

Laminates Wood Adhesives

Surface Coatings Moulding Compunds

Paper/ Textiles other

51,40%

21,90%

9,50%

8,50%4,60% 4,10%

Laminates Wood Adhesives

Surface Coatings Moulding Compunds

Paper/ Textiles other

20152010

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Expected Growth Rates in Applications 2010- 2015in kt

611,

1

302,

4

108,

5

91,6

45,3

66,2

639,

90

287,

70

119,

70

102,

30

55,6

0

58,3

0

855,

10

364,

50

157,

80

140,

60

76,6

0

68,5

0

Laminates Wood Adhesives Surface Coatings Moulding Compunds

Paper/ Textiles other0

100

200

300

400

500

600

700

800

900

2007 2010 2015

5,7%(*)

6,6%(*)6,6%(*) 3,3%(*)

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6,0% (*)

4,8%(*)

(*) annual growth rate during 2010- 2015

Source: Laves

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End of presentationUlf 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.