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2012 Strategy Briefing Auckland, New Zealand

10 September 2012

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Disclaimer

This presentation has been prepared by Nuplex Industries Limited. The material that follows

contains general background information about Nuplex‟s activities as at the date of the

presentation 10 September 2012.

The information in this presentation is not an offer or recommendation to purchase or

subscribe for securities in Nuplex or to retain any securities currently held. It does not take

into account the potential and current individual investment objectives or the financial

situation of investors.

Actual results may vary materially either positively or negatively from any forecasts in this

presentation. Before making or disposing of any investment in Nuplex securities, investors

should consider the appropriateness of that investment in light of their individual investment

objectives and financial situation, and seek their own professional advice.

All currencies are in NZD unless stated otherwise.

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Business and strategy overview

Emery Severin – Chief Executive Officer

10 September 2012

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Provide insight and understanding into Nuplex’s

Business overview and strategy

R&D strategy

Regions

• ANZ

• Asia

• EMEA

• Americas

R&D strategy

Capital project management

Financial management

3

Session objectives

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1. Business overview

2. Global coatings resins

3. Strategy

4. Strategy in action

5. FY13 and beyond

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Agenda

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1. Business overview

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Global chemicals company

Sales in over 80 countries

1,900 employees, manufacturing operations in 11 countries

Primary business is the development and manufacture of polymers globally

Our products enable adhesion, determine performance and appearance characteristics

of surface coatings and structural materials

In ANZ also leading

Distributor of specialty chemicals

Manufacturer of colour and performance additives

FY2012 financial performance

Revenue $1.616bn

EBITDA $131.0m

Net profit attributable to shareholders $62.5m

Global chemical company specialising in

polymer resins

Note: All figures are in NZD unless otherwise stated

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80% of sales generated by Resins segment operations

Global chemical company specialising in

polymer resins

FY12 % sales by segment and business

1 Includes 6 months of Viverso

2 Includes ANZ based Pulp and Paper and Construction Products

3 Includes 9 months of Acquos‟ masterbatch operations

7

15

2011

Masterbatch3

Specialties

Other resins2

4

4

100%

Composite resins 11

Coating resins1 66

Performance and colour additives for plastic (ANZ, SEA)

Agency and distribution business (ANZ)

Resins used in the chemicals to make paper, ink and construction products, eg flooring (ANZ)

Resins used in fibreglass (ANZ, SEA)

Key polymers used as the backbone in coatings and to provide adhesion as well as performance and appearance characteristics (Global)

Resins

Specialties

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Our geographic and product diversity is

our strength

Europe,

Middle East

and Africa

37%

EMEA

37%

Resins is our core business. We are also an agent & distributor of specialty

chemicals in ANZ

Americas

12%

Asia

21%

Australia &

New Zealand

30%

% of FY12 EBITDA

Resins

Specialties For

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2. Global coatings resins

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Global chemicals industry - where participants

are both suppliers and customers

Basic

Chemicals Feedstock

Intermediate

Chemicals Consumers

Commodity and

Specialty End Products

Specialties

Denotes spectrum of participation

EXAMPLES OF

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http://www.arkema.com/sites/group/fr/home.page

http://www.dsm.com/

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Global coatings market

1 Source: Akzo Nobel and PPG Industries global coatings market estimates

2 Refers to Coating Resins on slide 6

3 Includes tolling as well as adhesives, construction, ink and textile resins

Architectural

Industrial

Vehicle refinish

Auto OEM

Protective

& marine

Aerospace

Packaging

Global coatings

industry

(~$95bn)

by end use

markets1

100%

43

26

7

6

13

2 3 5

Waterborne

Solvent-

borne

Powder

Nuplex

coating resin

sales

by

technology

100%

20

75

8

8

10

Wood

Powder

Other3

Nuplex

coating resin

sales

by end use

markets2

100%

20

15

5

15 Metal

4

Protective & marine

15

Decorative

Automotive OEM

Vehicle Refinish

Plastics

Architectural

Performance

Industrial

Note: Sales percentages are approximate indications

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Diverse product portfolio weighted towards

polymer resins used in industrial and

performance coatings

Product

Markets

Decorative Industrial3

Performance

Vehicle

Refinish Auto OEM

Protective

& marine

High-end

metal &

Aerospace

Solventborne Alkyd

Amino

Polyester

Acrylic

Waterborne Emulsion1

Dispersion2

Powder

UV Curable

1 Generic term which describes a broad range of emulsions ranging from simple styrene acrylic emulsions for General Industrial to complex

acrylic polyol emulsions for Vehicle Refinish

2 Generic term which describes Polyurethane dispersons, self-crossinking acrylic dispersions

3 Adhesives, construction, ink, metal, textiles and wood

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Our customers receive the benefits of our global

strength and local know-how

Regional

Security of supply Innovative R&D

Consistent

quality

Cost

competitive

Proxim-

ity

Ability to

follow

into new

markets

Innov-

ative

products

Tech-

nical

support

Global

13

Top 10 customers represent approximately 35% of sales

EXAMPLES OF

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http://www.matrixsystem.com/index.html

Over 1,500 raw materials purchased

~80% petrochemical based

~20% bio based

Top 10 raw materials equate to ~35% of raw material spend

14

Raw materials are approximately 70% of

sales revenue

Methyl methacrylate, Ethyl acrylate, Styrene, Vinyl acetate,

Ethyl hexylacrylate, Butyl acrylate, Hydroxy ethyl

methacrylate

Adipic and Terephthalic Acids, Maleic and phthalic

anhydrides

Xylene, Butanol, Methyl ethyl ketone, Toluene, White spirit

Glycerol, Pentaerythritol and Neopentyl, Propoylene &

Diethlyene glycols

Biocides, Initiators

Soyabean, Coconut, Linseed, Sunflower, TOFA

Solvents

Acids

Monomers

Raw material

spend

100%

~15

~15

~30

Polyols ~15

Oils ~10

Other ~15

Raw materials

and packaging

Production

and operating

costs

EBITDA margin

Revenue

100%

~70

~20

~10

Examples

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1 to 3 month price lag is typical within the industry

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Proven track record in raw material

cost recovery

8.4 8.5

10.2

Non-

recurring

costs

0.2

Oper-

ating

costs

0.1

SG&A

0.1

Cons-

tant

dollar

margin

comp-

ression

0.5

Raw

material

price lag

0.6

FY12 FY10 Raw

material

benefit

reversal

0.3

Product

mix shift

FY11

0.7

Raw

material

cost

recovery

1.0

NuLEAP

1.2

Volume

0.4

Cons-

tant

dollar

margin

comp-

ression

0.4

In FY12, raw material costs were fully recovered, challenge

was declining volume

In FY11, challenge

was rapid increase in

raw material costs

EBITDA margin change levers (FY11-FY12)

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3. Strategy

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• Consider

acquisitions

that

− Strengthen

leading

market &

technology

positions

− Leverage

capabilities

− Meet

disciplined

criteria

To deliver sustainable growth and high quality products for our customers

through pursuing operational excellence and building market leading positions

Safety People NuLEAP Emerging

markets R&D

Strategic

acquisitions

• Build a culture

of „zero harm‟

• Engage and

leverage One

Global Team

• Introduce

global Overlay

Teams to

leverage

products, R&D

and

procurement

across the

group

• Improve the

way we work

through

rigorous

improvement

programs

• Profitably

expand

capacity and

presence in

emerging

markets

• Grow market

share through

innovative

products

• Pursue market

development

opportunities

• Leverage

technologies

across global

platform

To be the leading, trusted independent polymer resins manufacturer globally,

and leading agency and distribution business in ANZ

Growing through building market leading positions Strengthening through operational excellence

We’re strengthening and growing Nuplex

Our

strategy

Our

ambition

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To deliver sustainable growth and high quality products for our customers

through pursuing operational excellence and building market leading positions


markets R&D

Strategic

acquisitions


Our primary objective is to consistently deliver

shareholders above cost of capital returns

Our

strategy

18

Improve returns Profitable growth

Cash flow

+

Prudent capital management

Shareholder value

‘Focused on delivering above cost of capital returns’

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4. Strategy in action

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1st Employee

Survey

Vietnam: Commenced

capacity expansion project

Vietnam: Commissioned new

plant on time & on budget

20

We are busy executing our strategy

June

2012

January 2011

New strategy implemented

January

2011

June

2013

January

2013

June

2011

January

2012

China, Changshu: Secured

land for new 3rd site

NuLEAP delivered

$14m benefits

June

2010

December 2010

Strategic review

completed

February 2012

Refreshed strategic plans, focus on execution

China, Changshu: Expect to

commence construction

NuLEAP delivered

$3m benefits

Russia: Signed MoU with KVIL

and started due diligence

Emerging market growth

Strategic acquisitions

NuLEAP

R&D

Acquired Viverso and

started integration

Acquired Acquos masterbatch operations,

started integration into Nuplex Masterbatch

Decision to invest in

China application

laboratory

AX go live in ANZ AX to go live in Bitterfeld

New One Team &

Overlay Structure

Organisation

AX go live in BoZ

On track to delivery

• NULEAP program

target $30m

• At least €12m EBITDA

from Viverso

• A$5m EBITDA from

Nuplex Masterbatch

• US$0.5m to US$1m

EBITDA in Vietnam

Systems

2nd Employee

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Our goal is ‘Zero Harm’ to our people,

contractors, communities and the environment

Our safety approach is based on:

Being „leader led‟

Global procedures and framework

Embedding safe behaviour into every action

every day

Zero Harm is possible – in FY12 Americas has

no reportable injuries

Implementing global standards, e.g.:

Global SHE management system

Separation of people and moving vehicles

Personal protective equipment standards

NuLEAP operational excellence initiatives

delivering environmental benefits

Reduced waste generation

Increased energy efficiency

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2012 employee survey

Conducted May 2012

Translated into six languages

65% participation rate (up from 52% in 2010)

Results

Engagement score: 86% up from 72%

Diversity: 95% of employees agree that

Nuplex respects employee diversity in culture,

religion and language

Safety: 41% of employees gave their first of

seven preferences to the statement that

‘Nuplex as an organisation takes the safety

and well being of its people seriously’

Areas for improvement

More training, learning and development

opportunities

Continued focus on increased internal

communications

22

Strategy is being executed through our

engaged workforce

I get satisfaction

From my work

I receive recognition

when I perform well

I understand Nuplex‟s

values and goals

88

87

66

74

I can see how my job

contributes to achieving

the organisation‟s goals

92

92

Total engagement 72

86

100

Engagement (recognition and performance)

summary of agree responses by question,

2010 vs 2012, %

2012 agree

2010 agree

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Optimizing our global network in each region

via cross functional Overlay Teams

Corporate Growth Directions

Performance Coating

Waterborne

Powder

Composites

Technology

Procurement

Operations Human Capital

Americas EMEA ASIA ANZ Benefits of the Global Overlay

• Market and customer focus – identify customer and market needs

• Leveraging global capability- bring in or develop solutions to meet specific needs

• Harness OneTeam – bring together the knowledge and capabilities from across the whole of Nuplex

• Additional Growth - identify and deliver on growth potentials, which are otherwise not apparent to individual regions

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NuLEAP II

Four key focus areas

Procurement Price and margin management

Supply chain and logistics

Embed continuous improvement

disciplines

Diagnostics:

Assessment of 80% of raw materials spend

Wave 1:

Strategic sourcing

Organisation, process and

systems

Wave 2:

Strategic Sourcing

H2FY12

Wave 3:

Strategic Sourcing

Targets

• 1 to 2% savings on purchase spend over 18 months

• Upfront costs ~$3.5m in H1FY13

• $2m net benefit in FY13

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NuLEAP I is on track to deliver and we are

planning for NuLEAP II

NuLEAP I

On track to deliver $30m in benefits end FY13

H1FY13 H1FY14 H2FY13


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Asia

China: Construction expected to

commence by end 2012

Vietnam: Capacity commissioned May

2012

India: Full time sales representative

employed in early 2012

Brazil

• Forecasted GDP growth rate 2.6-

4.7%

• Coating market size ~US$2B

(2011), ~43% of Latin American

market

• Expected CAGR ~4%

• Structurally captive driven

India

• Forecasted GDP growth rate 6.5- 6.8%

• Paints and coatings market size

~US$3.1 B (2010), potential US$12.5-

16.5 B (2020)

• Key end markets are construction and

automotive

Indonesia

• Expected GDP growth rate

6-6.5%

• Coating market size

~US$1.1B (2011), expected

to grow by 6-8%

Turkey

• GDP growth rate

3.3- 4.6%

• 6th largest paint

producer in

Europe, with

~800kT

production

capacity and

market value of

~US$2B

• Export key

driver

• Key end markets

are construction,

automotive, wood

& textiles

Myanmar

• Country to watch for

long-term

developments

• Forecasted GDP

growth 7%

• Investments into

construction, energy

and manufacturing

sectors

Russia

• Entry through a JV with KVIL

Group

• €2.5m initial investment

• Working towards starting

construction of greenfield site

in 2014

Middle East and Africa

• Middle East coating market size

~US$2.6B, expected CAGR ~3.3%

• Key end markets are construction

and protective

• North African countries to watch for

growth potentials

Transition economies

• Forecasted GDP

growth 2.5 – 3.8%

• East-central Europe

1.3- 3.3%, Balkans

0.4-3.5%, Baltics 2.3-

3.3%, CIS 3.8-4.4%

Source: McKinsey on Chemicals - Spring 2012, GIA, Westpac, IRL, Frost & Sullivan, Export Promotion Centre Turkey, OECD, BMI, Deutsche

Bank, Economists Intelligence Unit, Nuplex internal estimates

Note: East and central Europe- Czech Rep, Hungary, Poland, Slovakia and Slovenia; Balkans- Bulgaria, Croatia, Romania and Serbia; Baltics –

Estonia, Lithuania, Latvia; CIS- Azerbaijan, Kazakhstan, Russia and Ukraine

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Pursuing opportunities in emerging markets

with attractive dynamics

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Process

and day-

to-day

technical

support

Direct

customer

technical

support

New

product

develop-

ment

R&D program focused on four key markets/

product areas

Performance coatings

Waterborne coatings

Powder coatings

Composite resins

R&D program driven by customers desire for:

Increased performance

Improved appearance

Lower cost whilst delivering equal or

better performance

Reduced volatile organic compounds

26

Taking a global and targeted approach to our

R&D program

Globally, integrated R&D approach Our targeted R&D program is focused on

meeting our customers’ evolving needs

Total spend ~3% resins sales

At innovation centre, The Netherlands and the Development centres in The Netherlands, Americas and Australia & New Zealand

~80% of allocated R&D spend managed globally, ~20% managed locally

At every site

Research

R&D budget 20% 30% 30% 20%

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Viverso Acquos’s masterbatch Fibrelogic (50% stake)

Financial EPS accretive

within 2 years

Above cost of capital risk

weighted for geography

Strategic Leading market positions Now #1 in solventborne

acrylic resins

Now #1 masterbatch provider

in ANZ

A leading wide diameter pipe

manufacturer in ANZ

Emerging market growth Access Central & Eastern

Europe

R&D/Innovative products

New technologies

Black capability and other

technology strengthens

capability to grow in SE Asia

Unique product offering

Delivering ahead of expectations

27

Strict acquisition criteria

On track to deliver acquisition case returns within 18 months

Reflecting subdued Government spending on infrastructure

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5. FY13 and beyond

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Our centre of gravity has moved and will

continue to do so SALES BY REGION, %

12

9

58

21

36

FY12

ANZ

EMEA

Asia

Americas

44

31

35

FY09 FY15 expected

(Base case1)

16

9

44

31

20

9

37

34

1Forecast subject to unforeseen circumstances and economic uncertainty.

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Sound fundamentals

Strong market positions globally and leading

positions locally

Geographic and product diversity

Clearly defined strategy

Track record

Raw material price recovery

Delivering operational improvement

Strong operating cash flow

Growing in emerging markets

Ability to adapt to changing market conditions

30

‘We are well positioned …

Uniquely

positioned to

grow unconstrained

by geography

…by focusing on the things we can control’

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Technology Update

William Weaver

Vice President, Technology

10 September 2012

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Agenda

1. Resin – it’s role

2. Innovation

3. Core technologies and markets

Coating resins

Composites

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1. Resin – it’s role

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1

Film former (resin)

2

Pigments and extender

4

Solvents (organic or water)

3

Additives

The four key components of paint

Clear coat

solvent or

waterborne

Powder coating

Pigmented paint

solvent or

waterborne

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The resin is responsible for adhesion to the substrate, holds the pigment

in place and is the key component influencing properties such as gloss,

durability, flexibility, and toughness

The role of resin

Clearcoat 40-50um

Basecoat 15-53um

Primer 10-35um

Electrocoat 20-25um

Substrate

Average

112um

Average

human hair

75um

Thickness

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2. Innovation

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Nuplex Research & Innovation Centre at

Wageningen University

Unique facility with unique capabilities

Concept exploration with longer-term horizon

Dedicated chemistry, physical chemistry, physics

Specialising in:

• Physics of coatings

• Rheology and coating appearance

• Mechanical properties

• Thermal analysis

• Optical techniques

• Colloid chemistry

• Controlled radical polymerisation

• Crosslinking control and architectures

• Novel polymer backbones

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Exceptional R&D facilities

State-of-the-art lab-scale reactors

Pressure reactors

High pressure homogenizer

Multiple particle sizing equipment

Zeta-potential measurement

Fully equipped paint application lab

Lab-scale UV-curing rig

Climatized spray booth

Electrostatic spraying

Accelerated and natural weathering

Advanced rheometers

Dynamic mechanical analysis

Microscope

Stress-strain equipment

Sagging and levelling analyzer (SALSA)

Single impact tester

Analytical laboratory (GPC, GC-MS, HPLC, DSC, …)

Access to equipment from Wageningen University

(NMR, AFM, …)

Synchron

Formulation

Robot

Chemspeed

autoplant

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3. Core technologies and markets

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Coating resins

• Rheology

• Solventborne acrylic

• Water borne 1K self-cross-linking dispersions

• Durable polyester powder coating

Composites

• Gel coat technology

• Styrene-free UPE

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Nuplex has a number of core technologies

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Coating resins: Rheology

Study and understand the relation between (rheological) properties of

paints and their sag and levelling behaviour

• State-of-the-art rotational (shear) rheometer

• Shadow view method

• Falling wave method

– Quantitative determination of the sag and leveling behavior of

paints during drying / curing

– Also used to study sag and leveling behavior of powders

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Freshly sprayed paint

Rheology additives – why they are needed

1 cm increasing thickness

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Improved rheology brings several benefits important for appearance and

coating quality

Control of sag

Improved leveling

Improved appearance

Reduced telegraphing

Edge coverage

43

Nuplex rheology control additives

Traditional rheology

control

Nuplex rheology

control

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Acrylic resins have been major contributors to coating technology for

the last 60 years

The challenges for the future are the development of high

solids systems with VOC compliance

VOC regulations are pushing demand for 80% solids systems without

sacrificing properties

New molecular structures are needed to achieve this and current

technology is being developed to meet this challenge through novel

hyper-branched and grafted structures

44

Coating resins: Solventborne (SB) acrylic resin

technology

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Nuplex provide specialist acrylic and polyester resins for OEM and

Vehicle Refinish which may be modified for rheological control

These resins may also offer unique performance aspects such as

Easy to clean coating

Ultra-durable

Scratch resistance

Chemical resistance (eg. acid rain,

bird droppings, tree resin)

SB acrylic resin technology

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SB acrylic resin technology

Nuplex also offer high solids systems meeting current regulations for

application in high-end metal & marine and protective coatings

The new molecular architectures offers very high solids with fast dry

and no loss of performance

New combinations of these polyols with rheology

control agents offer improved edge coverage

Enhanced appearance

Improved corrosion resistance

Improved cost

Edge coverage without

rheology control

Edge coverage with

rheology control

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Coating resins: Waterborne (WB) 1K self-cross-

linking technology

Physical

drying

Coalescence and inter-

diffusion of polymer chains

Evaporation of water

Particle deformation

Homogeneous Core-shell Gradient

Water borne resins pose a unique challenge in requiring the resin to

1. Be stable over extended periods

2. On coating lose water and film formation

3. Provide performance equivalent to

solvent based chemistries

Nuplex has a number of patented

chemistries to deliver performance For

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Through several patented technologies Nuplex offer high performance

self-cross-linking dispersions for joinery and furniture

Current developments look at improving manufacturing output:

Fast sandability

Blocking resistance

Scratch resistance

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WB 1K self-cross-linking technology

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WB 1K self-cross-linking technology

Traditional systems include acrylic and styrene acylic emulsions for Trim

and Broadwall applications

Using Nuplex patented 1K self-cross-linking Waterborne technology new

products are being introduced to meet the key challenges:

Environmentally friendly

Low VOC

Low odour

No APEO surfactants

Scrub and stain resistance

Low dirt pickup

Good adhesion to a variety

of surfaces

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Nuplex systems include polyester and polyester hybrid resins

Applications:

Resins for general industrial applications

- White goods

- Garden furniture

Resins for durable and super durable

applications

- Architectural structures

- Window frames

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Polyester powder

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//upload.wikimedia.org/wikipedia/en/2/2f/Burj_Khalifa_building.jpg

Coating resins: Polyester powder

New finishes are becoming available

Anodised powder finish for metal furniture, soft

touch finishes for laptops and wooden furniture

Sublimation printing

Relatively new technology of applying patterns by

heat transfer over a powder coated substrate,

requiring specific resin characteristics

Coil

Traditionally liquid technology but powder gaining

interest as VOC regulations begin to impact

High flow systems

Traditional powder has thicker film thickness and

poor flow – improved optical appearance of powder

(wet look) will extend technology base for powder

and open new application areas

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Composites: Gel coat technology

Nuplex is a leader in gel coat technology

Key challenges to the future include:

Reduction of VOC – styrene

Reduction of odor

Improved temperature/mechanical performance

Introduction of new features – antimicrobial

Newly developed gelcoat systems offer a range

of benefits:

Strong antibacterial performance prevents

algae growth at the surface

Low VOC content

Excellent UV resistance

Excellent chemical resistance

Good gloss retention

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Composites: Styrene-free

Reduction of styrene is key in future development of unsaturated

polyester technology – several approaches to reduction of styrene

through use of alternative reactive monomer

Current systems finding application in:

Sealing expanded polystyrene

Gel coat for continuous roof sheeting

Surfboard manufacture

Flooring

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Australia and New Zealand

Sam Bastounas

President Australia & New Zealand

10 September 2012

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ANZ – a unique position and broader portfolio

ANZ FY12 sales split by country (%) ANZ FY12 sales split by business unit (%)

1 Other includes paper resins and construction products


10

Other1

Masterbatch

Specialties

Coating resins

78

Australia

29

New Zealand

55

71

7

35

25

23 Composites

For

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Six business units each with a leading position

The market leader in Australia and New Zealand

• # 1

by way of overall market share

#

by market share

or

by market share in chosen segments

by market share

or

by market share in specialty segments

or

by market share in chosen segments

• Decorative

• Construction

• Graphic arts

• Textiles

• Resale

• Leisure

• Marine

• Infrastructure

• Water storage

• Mining

• Tissue

• Cardboard

• Paper

• Pulp

• Water treatment

• Packaging

• Film

• Water storage

• Logistics

• Engineering

• Coatings

• Plastics

• Agriculture

• Food

• Pharma

• Industrials

• Domestic commercial building

Market position

Market segments

#1 #1 #1 #1 #1 #1 #2 #2

56

#2

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Our ANZ business

57

For

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FY12 results

Resins volumes down 12.0%

A$ EBITDA impacted by

• Australian and New Zealand construction sectors

at cyclical lows

– Approx. 50% of ANZ resins end-use exposure

– Conditions deteriorated during the year

• Australian manufacturing and infrastructure

activity subdued reflecting ongoing structural shift

– Approx. 50% of ANZ resins end-use exposure

Coating resins

Pricing actions taken to recover raw material costs

Market share maintained

Reduced demand from residential and commercial

construction and home renovation market

Composites

Ongoing weakness in marine & leisure, infrastructure

and transport sectors impacted volumes

Business restructured

Realised A$3.6m in annualised cost savings

Financial history

58

0

10

20

30

40

50

60

70

FY06 FY07 FY08 FY09 FY10 FY11 FY12

0

100

200

300

400

500

600

700


ANZ EBITDA (FY06-FY12), A$M

EBITDA margin

-10% CAGR

9.9% 8.2% 8.3% 5.8% 7.7% 6.5% 5.7%

-2% CAGR

ANZ sales (FY06-FY12), A$M

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ANZ locations Flexible „campus‟ operating model, employing ~ 830 employees

59

Manufacturing

sites capability

Solventborne

Waterborne Composites Paper Masterbatch Acrylics Alkyd Amino Polyester

Australia

New Zealand

Wacol, QLD

Commissioned 1983

Springvale, VIC

Commissioned 1962

Pulp & Paper plant

Wangaratta, VIC

Commissioned Late 1960‟s

Canningvale, WA

Commissioned 1991

Development Centre at Botany

Botany NSW

Commissioned late 1940‟s

Penrose

Commissioned early 1960‟s

Development Centre at

Penrose

Onehunga


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Resins segment

60

For

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Resins segment market context

61

Customers

Decorative paint, packaging, textiles, marine and leisure, infrastructure piping, ink, varnish, flooring, adhesives End products

Multinationals

• Nuplex

• Dow

• BASF

• Imports

Raw materials suppliers

DOW Shell BASF

Competitors

Sassol

Regionals

• Dulux Group

• Resene

• Haymes

Multinationals

• Amcor

• Visy

• Bostik

• DIC

EXAMPLES OF

COATINGS

Multinationals

• Akzo Nobel

• Valspar

• PPG

• Bluescope

Regionals

• Acquos

NON COATINGS

Multinationals

• Nuplex

• Dow

• BASF

• Styron

• Imports

Regionals

• Acquos

Regionals

• Boat builders

• Pool companies

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Our customer value proposition, our

competitive advantage

Security

of supply Innovative

R&D Consistent

quality Cost

competitive

• Development centres

in Australia and New

Zealand

• World class

technologies in

waterborne resins for

coatings and non-

coatings applications

• R&D partnerships

with customers

• Network of sites with

flexible production

capabilities

• Regional spread of

capabilities

• ISO quality

accredited

manufacturer

• Strong compliance

protocols and high

quality culture

underpin customer

value proposition

• Multiple geographic

locations optimzes

delivered cost to

customers

• Relative

competitiveness to

imports

• Ability to defray

operations costs

through producing

multiple product

streams at

individual sites

62

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Resins segment product portfolio – serves

diverse coatings and non-coatings end use

markets Resins segment average sales

- by technology (%) Resins segment average sales

- by end market (%)

1 Other includes textiles, marine & protective and wood resins


Decorative

Ink

13

Other1

Adhesives

4

8

Construction

40

Composites

Paper

Waterborne

Solventborne

63

8

52

48

20

10

5

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Specialties segment

64

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Specialties segment market context

65

Customers

Examples of the breadth of end markets include; Chocolate, breakfast cereal, cleaning products, shampoo, car lubricant, vitamin tablets, sunscreen, rubber, foam. coatings and

agricultural chemicals End products

Principles

Nuplex Redox Competitors

Orica IMCD Chemiplas Brenntag

EXAMPLES OF

Food manufacturers

Plastic manufactures

Chemical formulators

Construction industry suppliers

Mining companies

Adhesive manufacturers

Global manufacturers who require a distribution channel to market in ANZ, includes companies such as Ashland, Barry Callebaut, Shell, Eastman, Sabic


Plastic Packaging

Synthetic grass

Packaging producers

Synthetic grass

OEM manufacturers

Industrial films

• Nuplex Masterbatch

• Allied Colour

• Martog

• Guilda

AGENCY & DISTRIBUTION MASTERBATCH

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Specialties – serving segments across the

ANZ market

66

19

3 Mining, oil & gas

Personal care 5

Hygiene (cleaning) 6

Pharmaceutical

7

Plastics & rubber

9

Agriculture 5

Coatings, construction

& adhesives

20

Food & beverage

26

Other1

1 Other includes approximately 15 other market segments eg Laminators, Roading & Water Treatment

FY12 SALES BY MARKET SEGMENT (%)

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Masterbatch

Masterbatch business mix

• Acquos acquisition provides a more

balanced product portfolio

• Agriculture and Pipe segments give

exposure to the growing Agriculture sector

in Australia and New Zealand

• Packaging segment linked to broad

economic activity

• The integrated business now has the suite

of technologies which can be leveraged

across broader segments and into SE

Asia where we have a small presence in

Vietnam

67

Material handling 9

Film

17

Agriculture & pipes

22

Other

11 Fibre & glass 5

Engineering 8

Packaging 29

SEGMENT SALES MIX (%)


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Our ANZ strategy

68

For

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Construction

At cyclical lows

Will recover at some point in time

Manufacturing

Undergoing structural change

Alignment to date

NuLEAP improving efficiency and delivering cost

savings

Composites restructured as part of NuLEAP

Specialties structure streamlined to one

brand/team

Consolidated masterbatch operations to become

market leader

Next step is to optimize operations to meet future

cyclical demand recognising markets have changed

Review of ANZ operations underway

Proactively adapting to a changing market

FORECAST HOUSING STARTS (‘000)2

163150

169160

145156

1% -7%

2015-16E 2014-15E 2013-14E 2012-13E 2011-12E 2010-11

1 Source: Australian Industry Group 2 Source: BIS Shrapnel, ABS

AIG PERFORMANCE OF MANUFACTURING INDEX – AUGUST 20121

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• Limited

opportunities

To remain the leading profitable Resins and Specialties supplier in ANZ


markets R&D

Strategic

acquisitions

• Investment in

people and

plants

• Establish

systems and

uniform

standards

• Cultural

change

• Strengthened

the senior

management

team

• Targeted

hiring of staff

to cover skill

gaps

• Removal of

legacy

inefficiencies

• Instill

continuous

improvement

mindset

• Leverage

unique

technologies

into new local

and inter-

national

markets

Support growth

in Asia in:

• Waterborne

resin

applications

• Composites

• Masterbatch

• Deploy and

support

Australia and

New Zealand

IP globally


ANZ strategy

70

For

per

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There remains a role for manufacturing in ANZ – considerations include:

Transportation and logistics

Security of supply

Delivered cost

Product „shelf life‟

On the ground technical support

Unique to market specifications

Review objective

Asses optimal capacity to meet variety of through the cycle demand

conditions

Establish the most efficient operations network to deliver sustainable

earnings and above cost of capital returns

Findings of review expected prior to end of calendar year

ANZ business review

71

For

per

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Nuplex Asia

Strategy Briefing

Ruben Mannien – Regional President, Asia

10 September 2012

For

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Most extensive, independent resins manufacturing network in Asia

Serving global, regional and local customers

Participating in growth in entire region

Unique position

The leading independent, high quality solventborne resins supplier for industrial

coatings

A leading supplier of waterborne specialty resins, eg; wood, Automotive OEM

Broad product portfolio offering to coatings and non-coatings markets

Commitment to ongoing investment in capacity and technology

Asia’s most extensive independent resins

network is our platform for growth

73

For

per

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Our Asia business

74

For

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0

50

100

150

200

250


FY12 results

Volumes up 4.2% due to Viverso Asian volumes

• Underlying volumes flat year on year

US$ EBITDA, down 0.4%

• Includes US$1m internal re-allocation R&D charge

China

Volumes flat

Suzhou: Reduced demand from automotive OEM

Foshan: Increased sales due to focused sales

initiatives

South East Asia

Vietnam: Capacity constrained until new plant

commissioned May 2012. New capacity expected to

• Contribute between US$0.5 to US$1m EBITDA in

FY13

• Be filled within 4 years

Malaysia and Indonesia: Domestic demand held

Business Performance

Asia EBITDA (FY06-FY12), US$M

0

5

10

15

20

25


EBITDA margin

+14% CAGR

10.3% 10.5% 7.7% 11.4% 14.5% 11.1% 10.4%

+14% CAGR

Asia sales (FY06-FY12), US$M

75

For

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Regional Footprint

Manufacturing sites capability

Solventborne

Waterborne Powder

Compo-

sites

Master-

batch Acrylics Alkyd Amino Polyester

China Foshan

Suzhou

Indonesia Surabaya

Malaysia Melaka

Thailand Bangkok (Minority JV)

Vietnam Ho Chi Minh City

Comprehensive regional manufacturing network employing ~450 employees

76

Melaka, Malaysia

Commissioned 1985

Technical lab onsite

Bangkok, Thailand

Minority JV formed 2000

Mumbai, India

Sales office

Surabaya, Indonesia

Commissioned 1978

Technical lab onsite

Ho Chi Minh City, Vietnam

Commissioned 1998

Upgraded 2012

Foshan, Southern China

Acquired 2004

Suzhou, East China

Commissioned 2005

Changshu, East China

Commissioning expected end 2013

For

per

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Market context

Raw materials suppliers DOW BASF

Jiangsu Jurong

Shandong Zhengxu

Competitors

Customers

China

Automotive coatings, Vehicle refinish coatings, wood flooring, furniture coatings, decorative & trim paint, curtain & blind backings, consumer electronics coatings, metal coatings, waterproof coatings,

and capital goods (trains, trucks, tractors) coatings End products

South East Asia

Arkema Shell Shanghai

Huayi Langxi Pertamina

Regional

• Deuchem

• Eternal Taiwan

• Sanmu

• YooPoint

Regional

• Kansai

• Nippon Paint/Nipsea

• KCC

• Chogoku

• Asian Paint

Multinational

• Akzo Nobel

• BASF

• DuPONT

• Hempel

• Jotun

• PPG

• Sherwin Williams

• Valspar

Multinational

• Nuplex

• Arkema

• Bayer

• Cytec

• DOW

• DSM

Regional

• Eternal Taiwan

• Deuchem

• Changchun

• Revertex

• 4 Oranges

• Mataram

• Carpoly

• Syncoates

• Esdee

• Hunan Kansai

Over 1,000 local competitors

• Eternal Indonesia

• Inawan Indonesia

• Tunas Indonesia

• PNP Vietnam

• Siam Thailand

77

Multinational

• Nuplex

• Bayer

• Cytec

• DSM

EXAMPLES OF

For

per

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Security


R&D Consistent

quality Cost

competitive

• Offer innovative

products utilising R&D

developments from

EMEA, ANZ and

Americas

• Provide local technical

and application

support

– Building Application

Centre in China in

FY2013

• Deliver tailored

technology and

products for local

customers and

markets

• Ability to supply from

multiple points in the

region

• Secure raw material

supply

‒ Supply agreements

‒ China Procurement

Desk

• Regional network

provides proximity and

comprehensive back-

up production

• Consistent batch to

batch quality is a key

differentiator

• Leveraging global

know-how to deliver

‒ High engineering

standards

‒ Process excellence

• Efficient and lean

operations

• Source raw materials

globally, regionally

and locally

• Geographic spread

optimizes logistics

78

For

per

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Product portfolio serves diverse end-use

coatings markets

China

South East Asia

Capacity by technology (%) Sales split by end market (%)


5

10

5

Protective & Marine

Automotive OEM

35 Vehicle Refinish

Industrial 25

Decorative & other Wood

12

Plastic 8

10

5

10

25

Other

5 Wood

Plastic 5

Protective & Marine

Automotive OEM 20

Vehicle Refinish

Industrial 20

Decorative

Solventborne

100

79

Waterborne

FY12

30

70

Solventborne For

per

sona

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onl

y

Our Asia strategy

80

For

per

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y

Opportunity for growth throughout the region

Japan

2.0%

14 3.5%

10

Malaysia

4.4%

5.5%

Vietnam

4

5.6%

Philippines S.Korea

4

5

10

13

3

4.2%

Indonesia

3

6.1%

Singapore China

6

8.2%

Thailand

5

India

1

6.9%

Asia average, kg per capita

Global average, kg per capita

2.7%

kg

14

Source: Independent Research Limited 2011, IMF World Economic Outlook 2012

Forecast 2012 GDP growth and coating consumption per capita

14

22

81

For

per

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y

• Viverso

‒ Existing

Asian

business

‒ Expand

product

offering with

acquired

tech-

nologies

To deliver profitable growth


markets R&D

Strategic

acquisitions

• Invested in

additional

SH&E

headcount

Appointed

– Regional

SHE officer

– SHE

officers on

all sites

• Building One

Regional

Team

• Support from

global

waterborne

and

performance

coatings

overlay teams

Initiatives

include

• China

sourcing desk

• Operational

improvements

• Regional sales

teams

• China

– Building 3rd

site

– Investigation

of 4th site

• Vietnam - new

capacity

commissioned

• India -

increased

sales

presence

• Indonesia –

repositioning

for growth

• Leveraging

global

technology

and product

portfolio

• New

application

centre

(Suzhou,

China)

• New

waterborne

products eg;

‒ Textiles

‒ Construction


Asia strategy

82

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Regional capacity increasing and portfolio

expanding

China

South East Asia

Capacity by technology

Post Changshu commissioning (%)

Note: Percentages are approximate indications

100

Solvent borne

Solvent

borne

Pre Changshu commissioning (%) (Expected end 2013)

Solventborne

Waterborne

Waterborne

Solventborne

83

Post new capacity in Vietnam (%)

30

70 45 55

70

30

Waterborne

Pre new capacity in Vietnam (%)

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New capacity commissioned May 2012

Enables

Ability to build on first mover

advantage and leading market position

in Vietnam

Be Nuplex‟s waterborne production

hub for South East Asia

Waterborne resin demand driven by

demand for decorative paint from

expanding middle class

Vietnam – New capacity supports leading

domestic position and development of a

regional waterborne hub

Source: OECD Development Centre, ATKearney

84

525

2,484

0

500

1,000

1,500

2,000

2,500

3,000

2010 2025 E

Forecast growth in Asia Pacific Middle Class, # m

4 fold increase

For

per

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China - Targeted to meet domestic demand in

high end markets

Focused on serving domestic market demand

Growing through:

Expanding capacity

Introducing technologies to open new

markets

R&D applications centre at Suzhou

– increase ability to provide:

• Tailored products

• Application support

Changshu (East China) greenfield development

Expect commissioning end 2013

Double Chinese capacity

Introduction of waterborne capability

• Access new markets eg; textiles

• Expand offer in existing markets

eg; Automotive OEM

Embarking on study for a fourth site

Light vehicle production (millions)

85

0

5

10

15

20

25

30

EMEA Americas China

2011 2012 2015 E

Source: IHS Automotive

For

per

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y

Indonesian coatings market is three times

the size of Vietnam

Attractive growth outlook for

performance and industrial coatings

Key growth drivers:

• Growing middle class

• Government investment plans

Focused on turning performance around

in order to earn the right to grow

Completely new management team

Refocused sales team

Technical sales approach re-installed

Regional support

Growth strategy being developed

Indonesia – repositioning to grow with market

86

150 100 50

Vietnam

Malaysia

Indonesia

2009

2004

$3,000 annual household disposable income

Middle class spread (size of middle class, # m)

Forecast 2014

Source: The Economist

For

per

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y

Europe, Middle East and Africa overview

Strategy Briefing

Paul Kieffer – Regional President EMEA

10 September 2012

For

per

sona

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onl

y

A top-4 resins producer

Leader in automotive and industrial markets

The leading supplier of solventborne acrylic resins

World class R&D capability

Highly automated, state-of-the-art production facilities

A network from which to grow into Central and Eastern Europe

A leading, trusted resin supplier in Europe

88

For

per

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Our EMEA business

89

For

per

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y

0

50

100

150

200

250

300

350


0

5

10

15

20

25

30

35


FY12 results

Volumes up 21.9% including Viverso

• Excluding Viverso down 5.1%

EURO EBITDA up 24.3% including Viverso

• Excluding Viverso EURO EBITDA up 8.0%

Steady demand from Northern European customers

Weaker demand from

• Southern European customers

• Middle East and Asia

In its first six months, Nuplex Germany (integrated

Viverso operations) delivered:

• Margins in line with expectations

• Volumes in line with expectations, except for

construction related products

• Costs below expectations due to lower integration

expenses

Business Performance

EMEA EBITDA (FY06-FY12), EuroM

EBITDA margin

+24% CAGR

4.5% 4.3% 8.0% 3.2% 9.8% 9.4% 9.5%

+9% CAGR

EMEA sales (FY06-FY12), EuroM

90

For

per

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Regional Footprint Nuplex‟s R&D centre and world class manufacturing facilities employing ~ 500 employees

91

Manufacturing sites

capability

Solventborne Waterborne

Powder Acrylics Alkyd Amino Polyester Emulsions Dispersions

The

Netherlands

Bergen Op

Zoom

Germany Bitterfeld

United

Kingdom

Silvertown

Silvertown, United Kingdom

Commissioned 1995

Bitterfeld, Germany

Commissioned 1995

World class pilot plant

Development Centre at Bergen

op Zoom

Nulpex’s Research & Innovation Centre, The Netherlands Attached to the University of Wageningen

Bergen op Zoom, The Netherlands

Commissioned ~1965

Pilot plant

Belgorod, Russia

Agreement to form a JV


Sivertown

For

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Market context

92

Customers

Automotive coatings, Vehicle refinish coatings, wood flooring, wood furniture coatings, metal furniture, decorative & trim paint, consumer electronics, metal construction coatings, waterproof coatings, and coatings for capital goods (busses,

trains, trucks, tractors), marine coatings, white goods End products

Regional

• Tikkurila

• Becker

• Lechler

• Inver

• Technos

• Böllig & Kemper

Multinational

• Akzo Nobel

• BASF

• DuPONT

• Hempel

• Jotun

• PPG


• Valspar

• Mankiewicz

• Kapci

• Wörwag

• Noval

• Hemmelrath

Top-5 raw materials suppliers

BASF Evonik

Competitors

DOW Shell Bayer

Nuplex Cytec BASF DSM Momentive Arkema

EXAMPLES OF

For

per

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y



Security


R&D Consistent

quality Cost

competitive

• Innovation centre

attached to

University

• Two development

centers and pilot

plants

• Dedicated and

focused business

teams who drive

product

development

• Manufacturing

network servicing

Continental Europe,

Central & Eastern

Europe and Middle

East and Africa

• Back-up from regional

network

• Highly automated,

state-of-the-art

production facilities

• Well equipped

analytical, synthesis

and applications

laboratories

• ISO quality accredited

manufacturer

• Efficient operations

• Offer premium and

value options within

product ranges

• Geographic spread

optimizes logistics

93

For

per

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Product portfolio focused on performance and

industrial end use markets

Average sales by technology (%) Average sales by end market (%)

(Post Viverso acquisition)

1 Other includes ink resins and tolling


Decorative

Metal

Other1

Powder

Plastic

Marine & Protective

Vehicle Refinish

Automotive

OEM

Waterborne

Powder

Solventborne

94

10

10

80

10

4

6

20

12

23 4

8

13

Wood

For

per

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Our EMEA strategy

95

For

per

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Viverso

• Maximise

synergies from

acquisition

To be a leading, trusted resins supplier, focused on performance coatings and industrial applications in

Europe and grow in the emerging markets of Central & Eastern Europe and the Middle East


markets R&D

Strategic

acquisitions

• Culture of

disciplined

performance

backed by well

established

processes and

procedures

• Strengthened

senior

management

in functional

areas

• Formed a

young

professionals

network

• Succession

planning

underway

NuLEAP

• Supply chain

optimisation

• New product

developments

• Process

efficiencies

• Successful

introduction of

technologies

from ANZ

• Focusing on

increasing

sales to

Central &

Eastern

Europe

• Russia:

Working

towards JV

with intent to

build

greenfield site

Developing:

• Solventborne

products for

performance

coatings

– Low VOC

– Low Temp

cure

– Fast cure

• Waterborne

products for

wood and

plastics

• Powder resin

- Low Temp

cure

- Appearance


EMEA strategy

96

For

per

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Organic growth Access to emerging markets R&D

Increased proximity to

Eastern Europe

• Forecast coating

consumption growth pa

(2010-15)2 :

‒ Poland 6%,

‒ Czech Republic 5%,

50% Increase in EMEA

capacity

• Capacity for future growth

• State-of-the-art facility

Direct access to Germany • Export driven economy

‒ Main exports: motor vehicles, machinery, chemicals and metals

• Accounts for ~15% of European coatings demand

Cross-sell existing

products

• To Viverso customers

• To Nuplex customers

Leverage new Viverso

products and technologies

outside of Europe

• Able to offer locally

manufactured product in

ANZ, Asia, and Americas

Reinvigorate R&D focus

on Viverso portfolio

Develop new customer

propositions given

extended technology

portfolio

Viverso integration is on track and delivering

• €6.3m FY12 EBITDA contribution, ahead of forecast

• FY13 EBITDA forecast at least €12m

Viverso – building a market leading position and a

platform for growth in Central & Eastern Europe

Market leading positions

Building market leading positions to grow earnings through Viverso

Consolidates position as

leading supplier in Europe

• Top-4 resins producer

• Leader in solventborne

acrylic resins supplier

• Leader in Central &

Eastern Europe

Unique online distribution

channel

• Potential to extend

globally

1 Trading economics.com

2 Company data, IRL and IAL Consultants

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Disciplined market entry assessment process

Case study – Russia

Market assessment

1. Developed market

understanding all

countries in Central &

Eastern Europe

2. Assessed each

market attractiveness

3. Target growth in

Russia, Poland,

Ukraine and other

CIS countries

4. Decision to look into

Russia factoring in

opportunities, risks,

and timing

Partner selection and negotiation

Due diligence and finalisation

1. Assessed entry options-

2. Visited over 10+ potential partners

3. Decision to partnering with private company KVIL

4. Firm up MoU and address all key negotiation issues

5. Finalise business plans

1. Undertaking detail due diligence

‒ Legal

‒ Tax

‒ Environmental

‒ Asset validation

2. Prepare final investment decision

Russia and JV with KVIL

• Russia – highest growth potential

in CEE with strong interest from

MNC and 2nd Tier paint

companies

• Market needs resin technology

and application know-how

• KVIL - a well regarded - private

company in the sector; assist

with approvals and access to

good local relationships

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Powder – a turnaround story

Loss making when acquired in 2005

Profitable since FY10

Turnaround reflects:

Site restructured

Increased process efficiency led to lower

cost base

Extended powder resin capacity

Improved product offering with innovative,

higher margin products

Expanded customer base

What next?

Continued focus on powder technology

• Low temperature cure

• Coating appearance

Consideration of capacity expansion

• Potentially in Russia

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Americas overview

Strategy Briefing

Mike Kelly – Regional President, Americas

10 September 2012

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Direct point of contact for many global customers

Preferred supplier in US in performance coating resins

Leader in Vehicle Refinish

Strong track record as a solution provider

We’re relatively small, but ‘punch above

our weight’

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Our Americas business

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0

20

40

60

80

100

120

140


0

2

4

6

8

10

12

14


FY12 results

Volumes down 2.3%

US$ EBITDA up 18.2%

Stronger second half volumes due to growth in

automotive and manufacturing sectors

Improved product mix and tight cost control

Financial history

Americas EBITDA (FY06-FY12), US$M

EBITDA margin

+21% CAGR

4.8% 5.8% 6.1% 7.3% 10.6% 10.0% 10.8%

+5% CAGR

Americas sales (FY06-FY12), US$M

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Footprint Centrally located to serve customers coast to coast, employing ~ 100 employees

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Louisville

East St Louis, Illinois

Commissioned 1979

Louisville, Kentucky


Manufacturing sites capability

Solventborne

Waterborne Acrylics Alkyd Amino Polyester

East St Louis, Illinois

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Our position within Americas

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Customers

Coatings for heavy equipment (tractors, earth moving, agricultural machines) Infrastructure coatings (bridges), automotive coatings (cars & trucks), vehicle refinish products, decorative paint, furniture coatings End

products

Regional

• Matrix Systems

• U.S. Paint

• Red Spot

• Sheboygan Paint

• Transtar

• Carboline

Multinational

• Akzo Nobel

• Hempel

• PPG

• Valspar

• BASF



Nexeo Solutions

Arizona Chemicals

Evonik BASF Koppers Eastman Chemical

DSM Lubrizol Competitors

Arkema BASF Reichhold DOW Cytec Nuplex

EXAMPLES OF

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Security


R&D Consistent

quality Cost

competitive

• Development Centre in

Louisville for technical

support to customers

• Collaborates with

Innovation Centre in

The Netherlands and

customer R&D centres

• Alternative supplier

approval of raw

materials

• Back-up from two

sites

• Quality and delivery

consistently exceeds

99%

• ISO quality accredited

manufacturer

• Lean operations

across all functions

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Product portfolio focused on performance and

industrial markets

Average sales by technology (%) Average sales by end market (%)

1 Note: Sales percentages are approximate indications

Decorative

Metal

5

Other

Wood

8

20 Marine &

Protective

30 Vehicle Refinish

Automotive OEM Solventborne

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15

5

20

7

Waterborne

5

95

Plastics 10

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Our Americas strategy

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• Consideration

of oppor-

tunities that

meet strict

discipline

criteria

To be the preferred supplier to high-end segments and

pursue complementary growth opportunities by building on reputation and technical capability


markets R&D

Strategic

acquisitions

• Past two

years,

performance

turned around

to achieve

„zero harm‟ in

FY12

Support overlay

functions

• Global key

account

management

• Performance

coatings

Initiatives

focused on

• Manufacturing

improvements

• Procurement

savings

• Targeted sales

initiatives

Targeting

increased sales

to

• Brazil

• Colombia

Focused on

• Solution

acrylics

• Rheological

control

• Alkyd

dispersion

• Formaldehyde

-free

• Compliant

technology


Americas strategy

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Overlay teams case study:

Performance coatings overlay team based in US

co-ordinating our resources globally

Technology key driver

• We are pursuing selected technology platforms to develop new, customised offerings

– For example, rheology is one of Nuplex‟s key strengths

• We are undertaking joint development programs with selected key customers globally

• Exploring suitability of new, breakthrough technologies for applications across performance coating market segments in our laboratories globally

6

5

Set-up

global,

cross-

funtional

teams

Consolidate

knowledge

Develop

overlay

strategies

Align R&D

portfolios

Undertake

joint

develop-

ments

Pursue

market

oppor-

tunities

Start

realising

benefits

1 2 3 4 5 6 7

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Financial and capital management

Strategy Briefing

Ian Davis – Chief Financial Officer

10 September 2012

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Working capital as a percentage of

12-month rolling sales

16.515.8

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Jun 08 Jun 09 Jun 10 Jun 11 Jun 12including

Viverso

Jun 12existing

operations

Target range 15-17%

Working capital to sales ratio

• 16.5% includes 12 months of Viverso

working capital, 6 months of sales

• 15.8% excluding Viverso

• Inline with target range of 15 to 17%

Working capital – critical to cashflow

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Target range

20-35%

28

0%

10%

20%

30%

40%

50%

Jun 08 Jun 09 Jun 10 Jun 11 Jun 12

$220m net debt as at 30 June 2012, up from $74m

• Increase due to acquisition of Viverso and

Acquos masterbatch operations

Lowered funding costs via renegotiation of bank

facilities in August 2011

• Total facilities reduced to A$200m from

A$300m

• Average cost of debt in FY12 approximately

7%, down from 12% in FY11

Successfully raised US$105m in the US private

placement market for the first time

• 7 year term, mature 2019

• Coupon rate 6.125%

• Settled 31 July 2012

NZ$52.6m capital notes to be redeemed

September 2012

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Funding and gearing


Net debt to net debt plus equity ratio

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Capital expenditure

Stay in business capital expenditure

• Forecast to be approximately 75-85% of

depreciation

Growth capital expenditure

• Targeted towards emerging markets

• Hurdle rate is weighted average cost of

capital plus % depending on the market risk

• Discounted cash flow analysis is primary

valuation technique

Business improvement capital expenditure

• 2 year payback required

NuLEAP has had low level of capital

expenditure Nuplex Vietnam: Reactor floor in

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Acquisitions

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DCF is primary valuation technique

Strict criteria

• Hurdle rate is WACC plus % depending

on the market risk

• EPS accretive within two years

Consideration of funding requirements

Nuplex Germany:

Reactor building at Bitterfeld For

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Global finance function

Cash management

Centrally managed, operated globally

Extensive short, medium and long term planning

Continually monitored

Treasury policy

Policy covers funding, liquidity, credit, counter-party risk, cash and FX

management

Operate in 8 functional currencies

Hedge transactional risk

No hedging of translation risk

Tax management

Tax management now in house

Internal audit

Global program

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Capital Project Management

Strategy Briefing

Clive Deetlefs – Vice President Operations

10 September 2012

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Delivering growth, controlling risk and supporting strategy

Spending is targeted in four main strategic areas:

Capital spending

Elimination of occupational and process safety risks

Meeting new compliance standards

1 SHE / Compliance

2 Growth

3 Sustenance

4 NuLEAP

Supporting organic growth opportunities

Capacity expansions

Modifications to produce new products

Stay in business capex

Aged asset replacements

Security of supply improvements

Supporting “step change”

Cost improvements

Productivity improvements

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Nuplex capital project management process

Business case definition

Project scope definition

Front-end engineering design

Cost estimate preparation

Project authorisation

Commissioning and start-up

Ramp up and validation

Final assessment and project closure

Detailed engineering design

Procurement

Fabrication and delivery

Construction

Pre-commissioning

Project definition

Project

execution

Start-up

and close-out

Project management

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Project organisation dependent on project size

and complexity

VIETNAM EXPANSION

Project management

FEED

Detailed design

Procurement

Construction

Commissioning

CHINA GREENFIELD

NUPLEX

NUPLEX

NUPLEX / CONTRACTORS

NUPLEX

CONTRACTORS

NUPLEX

TEBODIN / NUPLEX

TEBODIN / ECCEI

TEBODIN / FLUOR

CONTRACTORS

TEBODIN: EPCM NUPLEX: EPCM

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NUPLEX

TEBODIN / NUPLEX

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Managing project risk – protecting people,

property and project outcomes

1. Country

economic

assessment

2. Market mapping

3. Demand

assessment

4. Targeted

business plan

1. Experienced

R&D and

process

technology

teams

2. Design reviews

3. Use of advanced

engineering tools

1. Hazard and

operability

studies (HAZOP)

2. Contractor

selection

processes

3. Training

4. Onsite

procedures and

supervision

1. Use of cost

effective best

practice process

technologies

2. Value

engineering

3. Disciplined

procurement

process

4. Project

management

processes

1. Project

management

process

2. Project

scheduling tools

(GANTT charts,

critical path

analysis)

3. Change

management

controls

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Key project risks and mitigating actions

Market risk

Technology risk

SHE risk

Cost risk

Timeline risk

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3D drafting design tools – Changshu, China plant

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Advanced engineering tools – examples

3D design perspective Vietnam expansion

Dynamic simulation model powder polyester de-bottlenecking

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Capital project success is delivered by:

Disciplined project processes

Disciplined project management

Resourcing with appropriate experienced teams

(internal and external)

Managing risk

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Delivering success

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Strategy Briefing

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For personal use only - ASX · Primary business is the development and manufacture of polymers...

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