Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session...

104
Nonmetallic in Oil and Gas, Automotive and Renewables Value Proposition Session February 2020

Transcript of Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session...

Page 1: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Nonmetallic in Oil and

Gas, Automotive and

Renewables Value

Proposition Session February 2020

Page 2: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Disclaimer

This presentation may contain certain forward-looking statements with respect to Saudi Aramco’s (the “Company”) financial position,

results of operations and business, and certain of the Company’s plans, intentions, expectations, assumptions, goals and beliefs. These

statements include all matters that are not historical fact and generally, but not always, may be identified by the use of words such as

“believes”, “expects”, “are expected to”, “anticipates”, “intends”, “estimates”, “should”, “will”, “shall”, “may”, “is likely to”, “plans” or

similar expressions, including variations and the negatives thereof or comparable terminology.

You should be aware that forward-looking statements are not guarantees of future performance and that the Company’s actual financial

position, results of operations and business, and the development of the industries in which it operates may differ materially from those

made in or suggested by such forward-looking statements. Factors that could cause actual results to differ materially from the Company’s

expectations are contained in cautionary statements in the Company’s Prospectus filed with the Saudi Arabian Capital Markets Authority and

available at https://cma.org.sa/en/Market/Prospectuses/Pages/default.aspx (the “Prospectus”) and include, among other things, the following:

• (1) oil and gas supply, demand and price fluctuations; (2) global economic market conditions; (3) competition in the industries in

which the Company operates; (4) conditions affecting the transportation of products; (5) operational risk and hazards common in the

oil and gas, refining and petrochemicals industries; (6) the cyclical nature of the oil and gas, refining and petrochemicals industries;

(7) weather conditions; (8) political and social instability and unrest and actual or potential armed conflicts in the MENA region and

other areas; (9) managing the Company’s growth; (10) risks in connection with projects under development and recent and future

acquisitions and joint ventures, including with respect to SABIC; (11) managing the Company’s subsidiaries, joint operations, joint

ventures, associates and entities in which it holds a minority interest; (12) the Company’s exposure to interest rate risk and foreign

exchange risk; (13) risks related to operating in a regulated industry and changes to oil, gas, environmental or other regulations that

impact the industries in which the Company operates; and (14) international trade litigation, disputes or agreements.

The Prospectus contains a more complete discussion of the factors that could affect the Company’s future performance and the

industries in which it operates. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a

result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to the

Company or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above.

Page 3: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

• Drives domestic value creation byworking with suppliers for mutualbenefits

• Envisions to improve investment, andmaximize long term economic growthand diversification

• Focuses on delivering quality jobs,advancing innovation and enhancingglobal competitiveness

IKTVA is designed to reward Saudi Aramco’s suppliers for the use and development of local labor and sub-suppliers

Page 4: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Anticipated Market Size

The

Opportunity

The Business

Case

Executive Summary

Raw Material Intermediates Finished

Products

Value Chain Mapping

Each will Provide:

Investments opportunities will cover nonmetallic materials in oil & gas,

automotive and renewables sectors

Page 5: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

PE/GF

Unidirectional Tape February 2020

© Saudi Arabian Oil Company, 2020

Page 6: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Establish multiple state of

the art manufacturing facilities

of Unidirectional Tape to

serve growing local and

international demand

The opportunity

1. Global demand is expected to

grow at 40% annually for the

next 10 years

2. New applications are going to

utilize UD Tape including Oil &

Gas, Automotive and Marine .

3. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

Unidirectional Tape Manufacturing Represent an Attractive Opportunity

© Saudi Arabian Oil Company, 2020

Page 7: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

UD Tape Applications

Marine

Sports Gears

Automotive

Wind Turbines

Aerospace

Building &

Construction

© Saudi Arabian Oil Company, 2020

Oil & Gas

Page 8: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

The global demand on UD

Tape is expected to grow

at 40% from 21 Tons in

2020 and will reach 5,500

Tons year 2030

Source: Saudi Aramco Internal Analysis

UD Tape Global Demand in O&G

22 118 283

561 725

1,011

1,415

1,981

2,773

3,883

5,436

-

1,000

2,000

3,000

4,000

5,000

6,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

(T

ON

)

Global Demand of Product UD Tape

© Saudi Arabian Oil Company, 2020

Page 9: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

The global demand on UD

Tape is expected to grow

at 40% from 21 Tons in

2020 and will reach 5,500

Tons year 2030

KSA Demand on UD Tape

2.15 11.7928.26

56.0772.54

101.07

141.50

198.10

277.34

388.27

543.58

0.00

100.00

200.00

300.00

400.00

500.00

600.00

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Quanti

tiy (

Ton)

KSA Demand of UD Tape

Source: Frost and Sullivan Analysis

© Saudi Arabian Oil Company, 2020

Page 10: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

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Value Chain Mapping

Key ingredients are available locally and in GCC

region.

The resins required to make

UD tape are available locally.

Available Locally

Localization Opportunity

Polyethylene

Glass Fiber

Ethelyne UD Tape

© Saudi Arabian Oil Company, 2020

Page 11: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping Analysis

Raw Material Intermediates Final

Products Support Services

• Potential exists to establish glass fiber producing facility to meet the local, regional and global demand.

• Opportunity exists to increase the production of Polyethylene to meet the increasing demand.

• Opportunity exists to establish

facilities for UD Tapes

manufacturing to supply

different markets

• UD Tapes are used across multiple sectors such as:

- Automotive

- Aerospace

- Sports equipment

- Civil work

- Marine

- Wind turbines

• Opportunity exists to establish testing centers to test different UD tape products based on their applications.

© Saudi Arabian Oil Company, 2020

Page 12: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Carbon Fiber

Reinforced Polymers

(CFRP)February 2020

© Saudi Arabian Oil Company, 2020

Page 13: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

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The opportunity

Establish multiple state of

the art manufacturing facilities

of Carbon Fiber Reinforced

Polymers Parts to serve

growing local and

international demand

The opportunity

1. Global demand is expected to

grow at 15% annually for the

next 10 years

2. New applications are going to

utilize Carbon Fiber Reinforced

Plastics including Automotive,

Aerospace and Civil Work.

3. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

Carbon Fiber Reinforced Polymers Manufacturing Represent an Attractive Opportunity

© Saudi Arabian Oil Company, 2020

Page 14: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Light weight Increased strength Corrosion resistance

CFRP Advantages

X-ray transparencyLow Coefficient of Thermal Expansion

Chemical resistivity

Thermal and electrical conductivity

© Saudi Arabian Oil Company, 2020

Page 15: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

CFRP Applications

Automotive

Civil Work Robotics

Sporting GoodsAerospace

Medical Instruments

© Saudi Arabian Oil Company, 2020

Page 16: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

The global demand on

CFRP is expected to grow

at 15% from 172

Production Lines in 2020

and will reach 700.00 MM

Ton year 2030

Global Demand for CFRP in Automotive Industry

173198

228263

302

348

400

460

529

609

700

0

100

200

300

400

500

600

700

800

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Pro

du

cti

on

Lin

es

Global Demand of CFRP Production Lines

Source: Stahl Automotive Consulting

© Saudi Arabian Oil Company, 2020

Page 17: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Current CFRP parts

are dominated by

Body-in-White

parts and closures

With more R&D

and reduction in

CF price, other

parts (like chassis)

will become CFRP

This requires

different process

technology such as

Pultrusion

CFRP Automotive Parts Manufacturing Processes

Process technology share

in % part volume Exemplary parts

1%IM 1%

WCM

25%

30%

43%

RTM

SMC

SMC

PUL

RTMRear wall

Roof rail

C-Pillar

IMRoof

Doors

WCMSills

Roof bow

Trunk cover

Chassis strut

bars

Pultrusion

Source: Stahl Automotive Consulting

© Saudi Arabian Oil Company, 2020

Page 18: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping

Key ingredients are available locally and in GCC

region.

The resins required to make

CFRP are available locally.

Most of the value chain for

CFRP is not available locally.

Available Locally

Localization Opportunity

Resin

Carbon

Fiber CFRP CFRP Parts

PANAcrylonitrile Propylene

Ammonia

© Saudi Arabian Oil Company, 2020

Page 19: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping Analysis

Raw Material Manufacturing Final Products Support Services

• Potential exists to establish Carbon Fiber producing facility to meet the local, regional and global demand.

• The most commonly used resins to make CFRP are Epoxy, Vinyl Ester, Nylon and Polyester. Opportunity exists to increase the production of these resins to meet the increase demand.

• Opportunity exists to establish

facilities for CFRP products

utilizing one of the

manufacturing processes:

- SMC

- WCM

- RTM

- IM

• CFRP products are used across multiple sectors such as:

- Automotive

- Aerospace

- Sports equipment

- Civil work

- Robotics

- Medical instruments

• Opportunity exists to establish testing centers to test different CFRP products based on their applications.

• Opportunity exists to establish maintenance centers to repair/replace CFRP parts

© Saudi Arabian Oil Company, 2020

Page 20: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Hydrogen Tanks February 2020

© Saudi Arabian Oil Company, 2020

Page 21: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Establish multiple state of

the art manufacturing facilities

of Hydrogen Tanks to serve

growing local and

international demand

The opportunity

1. Global demand for hydrogen

vehicles is expected to grow at

46% annually for the next 10

years

2. Hydrogen tanks are used in

passenger vehicles, heavy duty

truck and fuel stations

3. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

Hydrogen Tanks Manufacturing Represent an Attractive Opportunity

© Saudi Arabian Oil Company, 2020

Page 22: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

The opportunity

Hydrogen tanks are used in passenger cars, heavy duty trucks and fuel stations

Hydrogen vessel(2 vessels per car)

Hydrogen fuel cell passenger car

Hydrogen vehicle Infrastructure

Cylinder for transport

Cylinder for station

Hydrogen heavy Duty Trucks

Hydrogen vessel(6 vessels per truck)

© Saudi Arabian Oil Company, 2020

Page 23: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

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Global Hydrogen Vehicle Forecast

Hydrogen vehicles forecastsale is forecasted to growat a rate of 46% annuallyreaching ~2.5MM units in2030

Source: Roland Berger Consultancy; Hexagon composites, Stahl Automotive Consulting

22 44 134 228 371

508 650

798 1,000

1,400

2,020

34 68 109 151

194

238

286

335

385

437

490

-

500

1,000

1,500

2,000

2,500

3,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Tho

usa

nd

Un

its

Hydrogen Vehicles Global Demand

Trucks

Passenger Cars

© Saudi Arabian Oil Company, 2020

Page 24: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

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Value Chain Mapping

Key ingredients are available locally and in GCC

region. Primary raw materials include

polyethylene terephthalate

(PET), polypropylene (PP),

nylon based on the specific

end application which are

available locally.

Available Locally

Localization Opportunity

Resin

Hydrogen Vessels Carbon Fiber Composite

Carbon Fiber

© Saudi Arabian Oil Company, 2020

Page 25: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping Analysis

Raw Materials Carbon Fiber Composites

Hydrogen Vessels

• Opportunity exists to manufacture carbon fiber locally

• Leverage the advantage of the availability of resin locally to reduce the cost of material

• Establish multiple carbon fiber composites manufacturing facilities to supply local and regional growing demand

• Establish multiple facilities to manufacture hydrogen vessels for different applications:

- Hydrogen vehicles

- Heavy duty trucks

- Fuel Stations

© Saudi Arabian Oil Company, 2020

Page 26: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Polycarbonate

Glazing February 2020

© Saudi Arabian Oil Company, 2020

Page 27: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Establish multiple state of

the art manufacturing facilities

of Polycarbonate Glazing to

serve growing market in the

automotive sector

The opportunity

1. Global demand is expected to

grow at 9% annually for the

next 10 years

2. New applications are going to

utilize Polycarbonate including

automotive, construction and

electronics.

3. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

Polycarbonate Glazing Manufacturing Represent an Attractive Opportunity

© Saudi Arabian Oil Company, 2020

Page 28: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Polycarbonate Glazing Advantages

Toughness and High Impact

Strength Transmittance

LightweightProtection from UV

radiation

Chemical Resistance

Heat Resistance

© Saudi Arabian Oil Company, 2020

Page 29: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Global Polycarbonate Glazing Demand

The global demand ofPolycarbonate glazingis expected to grow at9% from 4,000 Ton in2020 and will reach 9,600Ton year 2030

4,060 4,426

4,824 5,258

5,731 6,247

6,809

7,422

8,090

8,818

9,612

-

2,000

4,000

6,000

8,000

10,000

12,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

(T

ON

)

Global Demand of Polycarbonate Glazing

Source: Transparency Market Research © Saudi Arabian Oil Company, 2020

Page 30: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping

Key ingredients are available locally and in GCC

region.

Cumene Polycarbonate

Most of the raw material inthe polycarbonate glazingvalue chain is availablelocally.

Available Locally

Localization Opportunity

Propylene Phenol Bisphenol APolycarbonate

Glazing

© Saudi Arabian Oil Company, 2020

Page 31: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping Analysis

Raw Materials Manufacturing Finished Products

• All raw materials required to produce polycarbonate are available locally.

• Establish multiple polycarbonate glazing manufacturing facilities to supply local, regional and global growing demand.

• Polycarbonate products are mainly made using one of these manufacturing techniques: extrusion, thermoforming and injection molding.

• Different additives are added to polycarbonate based on the applications. For example, fiberglass is added to increase the strength. While antimicrobial are added when polycarbonate is used for food applications.

• Polycarbonate applications in KSA are expected to grow. Potential applications include:

• Automotive parts such as light housing, headlamp bezel & lenses

• Construction applications such as repairing stressed structures, cladding, bridge construction

• Medical such as surgical instruments, drug delivery systems, hemodialysis membranes, blood reservoirs, blood filters

• Electronics such as circuit breakers and enclosures

• Consumer Products such as glasses and large-volume water bottles

© Saudi Arabian Oil Company, 2020

Page 32: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Lithium Ion

Batteries EnclosuresFebruary 2020

© Saudi Arabian Oil Company, 2020

Page 33: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

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Establish multiple state of

the art manufacturing facilities

of Lithium Ion Batteries

Enclosures to serve growing

local, regional and

international demand

The opportunity

1. Global demand is expected to

grow at 12% annually for the

next 10 years

2. Saudi Arabia is targeting

localizing Electric Vehicles and

Lithium Ion Batteries

manufacturing

3. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

Lithium Ion Batteries Enclosures Manufacturing Represents an Attractive Opportunity

© Saudi Arabian Oil Company, 2020

Page 34: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

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Polycarbonate Enclosures Benefits

Lightweight Durable Customizable Cost Efficient

© Saudi Arabian Oil Company, 2020

Page 35: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

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Lithium Ion Batteries Global Demand

Demand for Lithium IonBatteries is expected togrow at a rate of 12%annually to reach 390 GWhin 2030

Source: Prescient & Strategic Intelligence Private Limited

125140

157176

197

220

247

276

309

347

388

0

50

100

150

200

250

300

350

400

450

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

( G

Wh

)

Global Demand of Automotive Lithium Ion Batteries Enclosures

© Saudi Arabian Oil Company, 2020

Page 36: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

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Polycarbonate in Li-Ion Batteries

Polycarbonate in automotive can be used for replacing glass in the Li-Ion battery:

Crash absorberBattery housing cover

Cooling plate

© Saudi Arabian Oil Company, 2020

Page 37: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping

Key ingredients are available locally and in GCC

region.

Most of the raw material inthe polycarbonateenclosures value chain isavailable locally.

Available Locally

Localization Opportunity

Cumene Polycarbonate Propylene Phenol Bisphenol APolycarbonate

Enclosures

© Saudi Arabian Oil Company, 2020

Page 38: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping Analysis

Raw Materials Manufacturing Support Services

• All raw materials required to produce polycarbonate are available locally.

• Establish multiple polycarbonate lithium ion batteries enclosures manufacturing facilities to supply local, regional and global growing demand.

• Polycarbonate products are mainly made using one of these manufacturing techniques: extrusion, thermoforming and injection molding.

• Different additives are added to polycarbonate based on the applications. For example, fiberglass is added to increase the strength. While antimicrobial are added when polycarbonate is used for food applications.

• High potential to localize supporting services for lithium-ion batteries such as:

o Logistics

o Testing

o Repair

© Saudi Arabian Oil Company, 2020

Page 39: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Epoxy February 2020

© Saudi Arabian Oil Company, 2020

Page 40: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Epoxy Applications in Automotive Sector

Flooring Adhesives &

SealantsCoating

Source: HIS Market Report

Electrical Insulation

and Laminates

Electronics

Encapsulation Automotive

Composite parts

© Saudi Arabian Oil Company, 2020

Page 41: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Epoxy Benefits

Source: HIS Market Report

Heat Resistance Superior Electrical

Insulation Strong Mechanical

Properties

Easily ShapedGood Adhesion to

Substrates

Resistance to corrosive liquids

and environments

© Saudi Arabian Oil Company, 2020

Page 42: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Epoxy is used for

multiple applications, but

the most common

application is for

coatings

Source: Technavio Report

Epoxy Applications

55.20%23.50%

15.10%

6.20%

Coatings

Adhesives

Composites

Other

© Saudi Arabian Oil Company, 2020

Page 43: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

The global demand on

Epoxy is expected to grow

at 3% from 1.35 MM Ton in

2020 and will reach 1.82

MM Ton year 2030

Source: IHS Market Report & Saudi Aramco Internal Analysis

Epoxy Global Demand

1.35 1.39

1.43 1.48

1.52 1.57

1.61 1.66

1.71 1.76

1.82

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

(M

M T

ON

)

Global Demand of Epoxy

© Saudi Arabian Oil Company, 2020

Page 44: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

The KSA demand on

Epoxy is expected to

grow at 3% from 9.45

Kilo Ton in 2020 and will

reach 12.71 Kilo Ton year

2030.Total GCC demand

is expected to reach

21.78 Kilo Ton by year

2030

Source: IHS Market Report

Epoxy Global Demand

9.5 9.7 10.0 10.3 10.6 11.0 11.3 11.6 12.0 12.3 12.7

6.8 7.0

7.2 7.4

7.6 7.8

8.1 8.3

8.6 8.8

9.1

16.2 16.7

17.2 17.7

18.2 18.8

19.4 19.9

20.5 21.1

21.8

-

5.0

10.0

15.0

20.0

25.0

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Quanti

tiy (

Kilo T

on)

KSA & GCC Demand of Epoxy

KSA Rest of GCC

© Saudi Arabian Oil Company, 2020

Page 45: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping

Key ingredients are available locally and in GCC

region.

All main raw materials to

produce epoxy resins are

available locally.

Available Locally

Localization Opportunity

Benzene Cumene Phenol Bisphenol A Epoxy Resin

© Saudi Arabian Oil Company, 2020

Page 46: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping Analysis

Raw Material IntermediatesFinished Products

Logistics and Support Services

Step

Raw material required to make epoxy resin is available locally. Opportunity exists to increase the supply to meet the increased demand to produce epoxy locally.

- Liquid Epoxy

- Hardeners

- Solid/Solid Solutions

- Specialty Epoxies

- Blends

- Brominated Epoxies

- NOVOLACS

• Epoxy is used for different applications:

• 1- Coatings: industrial, marine, protective, automotive, packaging

• 2- Electronics: circuit board, chips, encapsulation

• 3- Composites: industrial, recreational, transportation, aerospace

• 4- Adhesives: industrial, electronics, construction, aerospace, consumer

Potential exists to develop the aftersales services including:

1- Logistics services

2- MaintenanceGaps

© Saudi Arabian Oil Company, 2020

Page 47: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

People Movers February 2020

© Saudi Arabian Oil Company, 2020

Page 48: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Establish multiple state of

the art manufacturing facilities

of People Movers to serve

growing local and

international demand

The opportunity

1. Global demand is expected to

grow at 15% annually for the

next 10 years

2. New applications are going to

utilize People Movers including

Oil and Gas, Industry and

Marine

3. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

People Movers Manufacturing Represent an Attractive Opportunity

© Saudi Arabian Oil Company, 2020

Page 49: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

People Movers Applications

Plants Sites Campuses Airports

Shopping Centers Parks

© Saudi Arabian Oil Company, 2020

Page 50: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

People Movers Global Demand

The global demand on PeopleMovers is expected to growat 15% from 1.04 MMVehicles in 2020 and willreach 5.00 MM Vehiclesyear 2030

Source: Stahl Automotive Consultancy

1.01.2

1.41.6

1.8

2.5

2.9

3.3

3.8

4.4

5.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

( M

M V

eh

icle

s)

Global Demand of People Movers

© Saudi Arabian Oil Company, 2020

Page 51: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

People Movers KSA Demand

The KSA demand on PeopleMovers is expected to growat 15% from 10 ThousandVehicles in 2020 and willreach 42 Thousand Vehiclesyear 2030.

Source:Saudi Aramco internal analysis

1012

1416

18

21

24

28

32

36

42

0

5

10

15

20

25

30

35

40

45

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

anti

tiy

( Th

ou

san

d V

eh

icle

s)

KSA Demand for People Movers

© Saudi Arabian Oil Company, 2020

Page 52: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping

Key ingredients are available locally and in GCC

region.

The key resins to manufacture

a large portion of the vehicles

body are available locally.

Available Locally

Localization Opportunity

Raw Material (Resins)

Exterior Parts manufacturing

Assembly

© Saudi Arabian Oil Company, 2020

Page 53: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping Analysis

Raw Materials Parts

Manufacturing Assembly

Support Services

• The main polymers required to

manufacture the body of

people movers are available

locally • Establish multiple facilities to

produce parts for people

movers

• Opportunity exists to establish multiple facilities for assemble of people movers to meet the local and regional demand

• Opportunity exists to establish facilities for after sales services such maintenance and repair of people movers.

© Saudi Arabian Oil Company, 2020

Page 54: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Nonmetallic Application in

Renewable Energy—Solar

Value PropositionFebruary 2020

Page 55: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Renewable Energy Sector Advantages

The opportunity

1. KSA demand is growing at 20%

and will reach 40 GW by year

2030 in the solar sector.

2. Attractive cost base including

low logistics, land, utilities, labor

costs and availability of raw

materials

The business case

Potential exist to establish

multiple manufacturing

facilities in the kingdom for

Solar components to cater

for the growing demand in the

kingdom, ME region, and the

globe.

The opportunity

© Saudi Arabian Oil Company, 2020

Page 56: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

KSA & Middle East Market Insights

KSA Reduction

of CO2

Vision 2030 Clean Crude

Usage

Saudi Arabia is committed to

reduce CO2 emissions which

will derive Renewable Energy

sector into a growth for the

upcoming years.

The development of renewable

energy is part of a wider

objective of the “Vision 2030”

to reform and diversify Saudi

Arabia’s oil-dependent

economy.

To use crude oil in more

sustainable life cycle

production such as nonmetallic.

This will enable the growth of

RE in the power generation

and electricity sectors.

Don’t “burn it”, “use it”

© Saudi Arabian Oil Company, 2020

Page 57: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Global Demand of Renewable Energy—Solar

The global cumulative

installed Solar capacity

as a source of energy is

expected to grow at 20%

CAGR from 648 GW

installed in 2019 and will

reach 4,800 GW year 2030

Source: IEA, Saudi Aramco Internal Analysis

778933

1,1201,344

1,612

1,935

2,322

2,786

3,344

4,012

4,815

0

1,000

2,000

3,000

4,000

5,000

6,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

(G

W)

Global Cumulative Installed Capacity of Renewable Energy - Solar

20%*

*CAGR

© Saudi Arabian Oil Company, 2020

Page 58: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Saudi Arabia and GCC’s Demand of Renewable Energy—Solar

Source: MOE, REPDO, and Saudi Aramco Internal Analysis

• The KSA demand on

Solar as a source of

energy is expected to

grow at CAGR of 20%

from 5.96 GW in 2019

and will reach 40 GW

year 2030.

• Total KSA cumulative

installed solar capacity

translate to about $40**

Billion total spend.

20%*

6.6 7.99.5

11.413.7

16.419.7

23.7

28.4

34.1

40.9

3.94.7

5.66.7

8.1

9.7

11.6

13.9

16.7

20.1

24.1

10.512.6

15.118.1

21.8

26.1

31.3

37.6

45.1

54.2

65.0

0

10

20

30

40

50

60

70

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Quanti

tiy (

GW

)

KSA & GCC Demand of Renewable Energy - Solar

KSA Rest of GCC

**Calculation based on $1/W*CAGR

© Saudi Arabian Oil Company, 2020

Page 59: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Solar Panel Component

Aluminum Frame

Tempered Glass

Encapsulant - EVA

Solar Cells

Encapsulatn - EVA

Back Sheet

Junction Box© Saudi Arabian Oil Company, 2020

Page 60: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping—Solar

62

Key ingredients are available locally and in GCC region.

Solar Panels (Standard,

Bi-facial, and Thin Film)

For Solar Panels, key raw

materials are already existed

locally. The key opportunities

are in the components and

finished products

manufacturing as well as after

sales services.

Available Locally Localization Opportunity

Source: Persistence Market Research &

Junction Box

Panel Frames

Front Panels (Glass or

Polycarbonate)

Solar Cells

Back Sheet

Polycarbonate (PC) or

Silica Sand

Aluminum

HDPE (High Density

Polyethylene)

Polyethylene

Terephthalate (PET)

© Saudi Arabian Oil Company, 2020

Page 61: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping Analysis—Solar

Gaps Polycarbonate (PC) or Silica

Sand, Aluminum, HDPE (High

Density Polyethylene) and

Polyethylene Terephthalate

(PET) are available in the

Kingdom. Opportunity exist for

current manufacturers to

increase production to meet

growing global demand.

Most of the components of

the solar panel are currently

not available in the Kingdom

such as: Front Panels (Glass

or Polycarbonate), Panel

Frames, Junction Box, etc..

Therefore, there is an

opportunity to localize some

of them, as demand will be

derived by the localization of

solar panel industry.

Opportunity exist to

establish local

companies to meet

growing demand on:

1- Solar Panels

(Standard, Bi-facial, and

Thin Film)

2- Cable Racks

3- Solar Farms

Opportunity exist to

establish installation,

service and after sale

businesses in the kingdom

Step Raw Material Components Finished ProductsInstallation & After

Sale Serv.

© Saudi Arabian Oil Company, 2020

Page 62: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Renewable Energy

Front Panels

Value PropositionFebruary 2020

Page 63: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Renewable Energy Sector Advantages

1. KSA RE Solar demand is

growing at 20% and will reach

40 GW by year 2030. Front

Panels represent 3% of total

production cost of SP, giving an

opportunity of $1.2 Billion.

2. Attractive cost base including

low logistics, land, utilities, labor

costs and availability of raw

materials

The business case

Potential exist to establish

multiple manufacturing

facilities in the kingdom for

Solar components to cater

for the growing demand in the

kingdom, ME region, and the

globe.

The opportunity

© Saudi Arabian Oil Company, 2020

Page 64: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

KSA & Middle East Market Insights

KSA Reduction

of CO2

Vision 2030 Clean Crude

Usage

Saudi Arabia is committed to

reduce CO2 emissions which

will derive Renewable Energy

sector into a growth for the

upcoming years.

The development of renewable

energy is part of a wider

objective of the “Vision 2030”

to reform and diversify Saudi

Arabia’s oil-dependent

economy.

To use crude oil in more

sustainable life cycle

production such as nonmetallic.

This will enable the growth of

RE in the power generation

and electricity sectors.

Don’t “burn it”, “use it”

© Saudi Arabian Oil Company, 2020

Page 65: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Global Demand of Renewable Energy—Solar

The global cumulative

installed Solar capacity

as a source of energy is

expected to grow at 20%

CAGR from 648 GW

installed in 2019 and will

reach 4,800 GW year 2030

Source: IEA, Saudi Aramco Internal Analysis

778933

1,1201,344

1,612

1,935

2,322

2,786

3,344

4,012

4,815

0

1,000

2,000

3,000

4,000

5,000

6,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

(G

W)

Global Cumulative Installed Capacity of Renewable Energy - Solar

20%*

*CAGR

© Saudi Arabian Oil Company, 2020

Page 66: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Saudi Arabia and GCC’s Demand of Renewable Energy—Solar

Source: MOE, REPDO, and Saudi Aramco Internal Analysis

• Total KSA cumulative

installed solar capacity

translate to about $40**

Billion total spend.

• Front Panel represent

3% of the production

cost for each solar

panel.

20%*

6.6 7.9 9.511.4

13.716.4

19.723.7

28.4

34.1

40.9

3.94.7

5.66.7

8.1

9.7

11.6

13.9

16.7

20.1

24.1

10.512.6

15.118.1

21.8

26.1

31.3

37.6

45.1

54.2

65.0

0

10

20

30

40

50

60

70

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Quanti

tiy (

GW

)

KSA & GCC Cumulative Installed Capacity of Renewable Energy -Solar

KSA Rest of GCC

**Calculation based on $1/W*CAGR

© Saudi Arabian Oil Company, 2020

Page 67: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Saudi Arabia Demand—Front Panel

Source: MOE, REPDO, and Saudi Aramco Internal Analysis

• Total KSA demand is

expected to reach 160**

Million Solar Panels

cumulative by year

2030.

• As Front Panels

represent 3% of the

total production, a total

investment opportunity

of $1.2 Billion is

available in Kingdom.26.44 31.73

38.07 45.69

54.82

65.79

78.94

94.73

113.68

136.42

163.70

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Quanti

ty (

Panels

) in

Million

KSA Cumulative Demand of Solar Panel

KSA Rest of GCC

**Calculation is based on today’s mono-facial

panel efficiency of 250 W per unit

20%*

*CAGR

© Saudi Arabian Oil Company, 2020

Page 68: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Solar Panel Component

Aluminum Frame

Tempered Glass

Encapsulant - EVA

Solar Cells

Encapsulatn - EVA

Back Sheet

Junction Box© Saudi Arabian Oil Company, 2020

Page 69: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping—Front Panel

71

Key ingredients are available locally and in GCC region.

Solar Panels (Standard, Bi-

facial, and Thin Film)

For Front Panel (3% of total

Solar Panel Cost), key raw

materials are already existed

locally (Polycarbonate or

Silica Sand). The key

opportunities are in the

finished products

manufacturing as well as after

sales services.Available Locally Localization Opportunity

Source: Persistence Market Research &

Junction Box

Panel Frames

Front Panels (Glass

or Polycarbonate)

Solar Cells

Back Sheet

3%Polycarbonate (PC) or

Silica Sand

© Saudi Arabian Oil Company, 2020

Page 70: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Raw Material Components Finished ProductsInstallation & After

Sale Serv.

Value Chain Mapping Analysis—Front Panel

72

Gaps Polycarbonate (PC) or Silica

Sand is available in the

Kingdom. Opportunity exist for

current manufacturers to

increase production to meet

growing local/global demand of

panel frames production.

Most of the components of

panel frames are currently

available in the Kingdom such

as: Polycarbonate (PC) or

Silica Sand. Therefore, there

is an opportunity to localize

the production of front panel

as demand will be derived by

the installation plans of solar

panel sector.

Opportunity exist to

establish local

companies that

manufacture Front

Panels to meet

growing demand on:

Solar Panels

(Standard, Bi-facial,

and Thin Film)

Opportunity exist to

establish installation,

service and after sale

businesses in the kingdom

Step

© Saudi Arabian Oil Company, 2020

Page 71: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Renewable Energy

Panel Frames

Value PropositionFebruary 2020

Page 72: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Renewable Energy Sector Advantages

1. KSA RE Solar demand is

growing at 20% and will reach

40 GW by year. Panel Frames

represent 3% of total production

cost of SP.

2. Attractive cost base including

low logistics, land, utilities, labor

costs and availability of raw

materials

The business case

Potential exist to establish

multiple manufacturing

facilities in the kingdom for

Solar components to cater

for the growing demand in the

kingdom, ME region, and the

globe.

The opportunity

© Saudi Arabian Oil Company, 2020

Page 73: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

KSA & Middle East Market Insights

KSA Reduction

of CO2

Vision 2030 Clean Crude

Usage

Saudi Arabia is committed to

reduce CO2 emissions which

will derive Renewable Energy

sector into a growth for the

upcoming years.

The development of renewable

energy is part of a wider

objective of the “Vision 2030”

to reform and diversify Saudi

Arabia’s oil-dependent

economy.

To use crude oil in more

sustainable life cycle

production such as nonmetallic.

This will enable the growth of

RE in the power generation

and electricity sectors.

Don’t “burn it”, “use it”

© Saudi Arabian Oil Company, 2020

Page 74: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Global Demand of Renewable Energy—Solar

The global cumulative

installed Solar capacity

as a source of energy is

expected to grow at 20%

CAGR from 648 GW

installed in 2019 and will

reach 4,800 GW year 2030

Source: IEA, Saudi Aramco Internal Analysis

778933

1,1201,344

1,612

1,935

2,322

2,786

3,344

4,012

4,815

0

1,000

2,000

3,000

4,000

5,000

6,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

(G

W)

Global Cumulative Installed Capacity of Renewable Energy - Solar

20%*

*CAGR

© Saudi Arabian Oil Company, 2020

Page 75: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Saudi Arabia and GCC’s Demand of Renewable Energy—Panel Frames

Source: MOE, REPDO, and Saudi Aramco Internal Analysis

• Total KSA cumulative

installed solar capacity

translate to about $40**

Billion total spend.

• Panel frames represent

3% of the production

cost for each solar

panel.

20%*

6.6 7.9 9.511.4

13.716.4

19.723.7

28.4

34.1

40.9

3.94.7

5.66.7

8.1

9.7

11.6

13.9

16.7

20.1

24.1

10.512.6

15.118.1

21.8

26.1

31.3

37.6

45.1

54.2

65.0

0

10

20

30

40

50

60

70

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Quanti

tiy (

GW

)

KSA & GCC Cumulative Installed Capacity of Renewable Energy -Solar

KSA Rest of GCC*CAGR **Calculation based on $1/W

© Saudi Arabian Oil Company, 2020

Page 76: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Saudi Arabia Demand—Panel Frames

Source: MOE, REPDO, and Saudi Aramco Internal Analysis

• Total KSA demand is

expected to reach 160**

Million Solar Panels

cumulative by year

2030.

• As Panel Frames

represent 3% of the

total production, a total

investment opportunity

of $1.1 Billion is

available in Kingdom.26.44 31.73

38.07 45.69

54.82

65.79

78.94

94.73

113.68

136.42

163.70

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Quanti

ty (

Panels

) in

Million

KSA Cumulative Demand of Solar Panel

KSA Rest of GCC

**Calculation is based on today’s mono-facial

panel efficiency of 250 W per unit

20%*

*CAGR

© Saudi Arabian Oil Company, 2020

Page 77: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Solar Panel Component

Aluminum Frame

Tempered Glass

Encapsulant - EVA

Solar Cells

Encapsulatn - EVA

Back Sheet

Junction Box© Saudi Arabian Oil Company, 2020

Page 78: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Value Chain Mapping—Panel Frames

80

Key ingredients are available locally and in GCC region.

Solar Panels (Standard, Bi-

facial, and Thin Film)

For Panel Frames (3% of total

Solar Panel Cost), key raw

materials are already existed

locally (Aluminum). The key

opportunities are in the

finished products

manufacturing as well as after

sales services.

Available Locally Localization Opportunity

Source: Persistence Market Research &

Junction Box

Panel Frames

Front Panels (Glass or

Polycarbonate)

Solar Cells

Back Sheet

Aluminum/Polymer 3%

© Saudi Arabian Oil Company, 2020

Page 79: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Raw Material Components Finished ProductsInstallation & After

Sale Serv.

Value Chain Mapping Analysis—Panel Frames

81

Gaps Aluminum is available in the

Kingdom. Opportunity exist for

current manufacturers to

increase production to meet

growing local/global demand of

panel frames production.

Most of the components of

panel frames are currently

available in the Kingdom such

as: Aluminum. Therefore,

there is an opportunity to

localize the production of

panel frames as demand will

be derived by the installation

plans of solar panel sector.

Opportunity exist to

establish local

companies that

manufacture Panel

Frames to meet

growing demand on:

Solar Panels

(Standard, Bi-facial,

and Thin Film)

Opportunity exist to

establish installation,

service and after sale

businesses in the kingdom

Step

© Saudi Arabian Oil Company, 2020

Page 80: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Renewable Energy

Solar – Cable Racks

Value PropositionFebruary 2020

© Saudi Arabian Oil Company, 2020

Page 81: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Renewable Energy Sector Advantages

1. KSA Solar demand is growing

at 20% and will reach 40 GW by

year 2030, Cable Racks

represent 7% of total SP’s cost.

2. Attractive cost base including

low logistics, land, utilities, labor

costs and availability of raw

materials

The business case

Potential exist to establish

multiple manufacturing

facilities in the kingdom for

Solar components to cater

for the growing demand in the

kingdom, ME region, and the

globe.

The opportunity

© Saudi Arabian Oil Company, 2020

Page 82: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

KSA & Middle East Market Insights

KSA Reduction

of CO2

Vision 2030 Clean Crude

Usage

Saudi Arabia is committed to

reduce CO2 emissions which

will derive Renewable Energy

sector into a growth for the

upcoming years.

The development of renewable

energy is part of a wider

objective of the “Vision 2030”

to reform and diversify Saudi

Arabia’s oil-dependent

economy.

To use crude oil in more

sustainable life cycle

production such as nonmetallic.

This will enable the growth of

RE in the power generation

and electricity sectors.

Don’t “burn it”, “use it”

© Saudi Arabian Oil Company, 2020

Page 83: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Global Demand of Renewable Energy—Solar

The global cumulative

installed Solar capacity

as a source of energy is

expected to grow at 20%

CAGR from 648 GW

installed in 2019 and will

reach 4,800 GW year 2030

Source: IEA, Saudi Aramco Internal Analysis

778933

1,1201,344

1,612

1,935

2,322

2,786

3,344

4,012

4,815

0

1,000

2,000

3,000

4,000

5,000

6,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

(G

W)

Global Cumulative Installed Capacity of Renewable Energy - Solar

20%*

*CAGR

© Saudi Arabian Oil Company, 2020

Page 84: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Saudi Arabia and GCC’s Demand of Renewable Energy—Cable Racks

Source: MOE, REPDO, and Saudi Aramco Internal Analysis

• Total KSA cumulative

installed solar capacity

translate to about $40**

Billion total spend.

• Cable racks represent

7% of the production

cost for each solar

panel.

20%*

6.6 7.9 9.511.4

13.716.4

19.723.7

28.4

34.1

40.9

3.94.7

5.66.7

8.1

9.7

11.6

13.9

16.7

20.1

24.1

10.512.6

15.118.1

21.8

26.1

31.3

37.6

45.1

54.2

65.0

0

10

20

30

40

50

60

70

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Quanti

tiy (

GW

)

KSA & GCC Cumulative Installed Capacity of Renewable Energy -Solar

KSA Rest of GCC

*CAGR**Calculation based on $1/W

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Saudi Arabia Demand—Cable Racks

Source: MOE, REPDO, and Saudi Aramco Internal Analysis

• Total KSA demand is

expected to reach 160**

Million Solar Panels

cumulative by year 2030.

• As Cable Racks

represent 7% of the total

production cost for each

solar panel, a total

investment opportunity

of $2.5 Billion is

available in Kingdom.26.44

31.73 38.07

45.69 54.82

65.79

78.94

94.73

113.68

136.42

163.70

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Quanti

ty (

Panels

) in

Million

KSA Cumulative Demand of Solar Panel

KSA Rest of GCC

**Calculation is based on today’s mono-facial

panel efficiency of 250 W per unit

20%*

*CAGR

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Value Chain Mapping—Cable Racks

88

Key ingredients are available locally and in GCC region.

Solar Panels (Standard, Bi-

facial, and Thin Film)

For Cable Racks (7% of total

Solar Panel cost), key raw

materials are already existed

locally (Aluminum/Steel). The

key opportunities are in the

finished products

manufacturing as well as after

sales services.

Available Locally Localization Opportunity

Source: Persistence Market Research &

Junction Box

Panel Frames

Front Panels (Glass or

Polycarbonate)

Solar Cells

Back Sheet

Alu

min

um

l S

tee

l

Cable Racks

Solar Farm

HD

PE

& o

the

r P

oly

me

rs

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Raw Material Components Finished ProductsInstallation & After

Sale Serv.

Value Chain Mapping Analysis—Cable Racks

89

Gaps Aluminum and Steel are

available in the Kingdom.

Opportunity exist for current

manufacturers to increase

production to meet growing

local/global demand of cable

racks production.

Most of the components of

cable racks are currently

available in the Kingdom such

as: Aluminum, Steel. Others

are under development to be

locally produced such as

Fiber Glass. Demand will be

derived by the installation of

solar panel, leaving cable

racks to be a good

opportunity.

Opportunity exist to

establish local

companies to meet

growing demand on:

Cable Racks due to

the installation

capacity plans of solar

panels.

Opportunity exist to

establish installation,

service and after sale

businesses in the kingdom

Step

© Saudi Arabian Oil Company, 2020

Page 88: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Renewable Energy

Solar Inverter

Value PropositionFebruary 2020

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Renewable Energy Sector Advantages

1. KSA RE demand is growing at

20% and will reach 40 GW by

year 2030 in the Solar energy

sector. Inverter represent 4% of

total production cost of SP.

2. Attractive cost base including

low logistics, land, utilities, labor

costs and availability of raw

materials

The business case

Potential exist to establish

multiple manufacturing

facilities in the kingdom for

Solar components to cater

for the growing demand in the

kingdom, ME region, and the

globe.

The opportunity

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

KSA & Middle East Market Insights

KSA Reduction

of CO2

Vision 2030 Clean Crude

Usage

Saudi Arabia is committed to

reduce CO2 emissions which

will derive Renewable Energy

sector into a growth for the

upcoming years.

The development of renewable

energy is part of a wider

objective of the “Vision 2030”

to reform and diversify Saudi

Arabia’s oil-dependent

economy.

To use crude oil in more

sustainable life cycle

production such as nonmetallic.

This will enable the growth of

RE in the power generation

and electricity sectors.

Don’t “burn it”, “use it”

© Saudi Arabian Oil Company, 2020

Page 91: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

Global Demand of Renewable Energy—Solar

The global cumulative

installed Solar capacity

as a source of energy is

expected to grow at 20%

CAGR from 648 GW

installed in 2019 and will

reach 4,800 GW year 2030

Source: IEA, Saudi Aramco Internal Analysis

778933

1,1201,344

1,612

1,935

2,322

2,786

3,344

4,012

4,815

0

1,000

2,000

3,000

4,000

5,000

6,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

(G

W)

Global Cumulative Installed Capacity of Renewable Energy - Solar

20%*

*CAGR

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Saudi Arabia and GCC’s Demand of Renewable Energy—Inverter

Source: MOE, REPDO, and Saudi Aramco Internal Analysis

• Total KSA cumulative

installed solar capacity

translate to about $40**

Billion total spend.

• Inverter represent 4% of

the production cost for

each solar panel.

20%*

6.6 7.9 9.511.4

13.716.4

19.723.7

28.4

34.1

40.9

3.94.7

5.66.7

8.1

9.7

11.6

13.9

16.7

20.1

24.1

10.512.6

15.118.1

21.8

26.1

31.3

37.6

45.1

54.2

65.0

0

10

20

30

40

50

60

70

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Quanti

tiy (

GW

)

KSA & GCC Cumulative Installed Capacity of Renewable Energy -Solar

KSA Rest of GCC*CAGR

**Calculation based on $1/W

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Saudi Arabia Demand—Inverters

Source: MOE, REPDO, and Saudi Aramco Internal Analysis

• Total KSA demand is

expected to reach 160**

Million Solar Panels

cumulative by year 2030.

• As Inverter represent 4%

of the total production

cost for each solar

panel, a total investment

opportunity of $1.6

Billion is available in

Kingdom.26.44 31.73

38.07 45.69

54.82

65.79

78.94

94.73

113.68

136.42

163.70

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Quanti

ty (

Panels

) in

Million

KSA Cumulative Demand of Solar Panel

KSA Rest of GCC**Calculation is based on today’s mono-facial

panel efficiency of 250 W per unit

20%*

*CAGR

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Value Chain Mapping—Inverter

96

Key ingredients are available locally and in GCC region.

For Inverter (4% of total Solar

Panel Cost), key raw materials

are already existed locally

(HDPE). The key opportunities

are in the finished products

manufacturing as well as after

sales services.

Available Locally Localization Opportunity

Source: Persistence Market Research & REPOD

HDPE (High Density Polyethylene)

Charge Controller

InverterAC Power Electric & Wiring components

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Raw Material Components Finished ProductsInstallation & After

Sale Serv.

Value Chain Mapping Analysis—Inverter

97

Gaps HDPE (High Density

Polyethylene) and Electric

wiring components are

available in the Kingdom.

Opportunity exist for current

manufacturers to increase

production to meet growing

local/global demand of panel

frames production.

Most of the components of

Inverters are currently

available in the Kingdom such

as: HDPE (High Density

Polyethylene). Therefore,

there is an opportunity to

localize the production of

Inverter as demand will be

derived by the installation

plans of solar panel sector.

Opportunity exist to

establish local

companies that

manufacture Inverter

to meet growing

demand on: Solar

Panels Farms

Opportunity exist to

establish installation,

service and after sale

businesses in the kingdom

Step

© Saudi Arabian Oil Company, 2020

Page 96: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Renewable Energy

Wind

Value PropositionFebruary 2020

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Renewable Energy Sector Advantages

1. KSA demand is growing at 20%

and will reach 16 GW by year

2030 for Wind energy sector.

2. Attractive cost base including

low logistics, land, utilities, labor

costs and availability of raw

materials

The business case

Potential exist to establish

multiple manufacturing

facilities in the kingdom for

Wind components to cater

for the growing demand in the

kingdom, ME region, and the

globe.

The opportunity

© Saudi Arabian Oil Company, 2020

Page 98: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

KSA & Middle East Market Insights

KSA Reduction

of CO2

Vision 2030 Clean Crude

Usage

Saudi Arabia is committed to

reduce CO2 emissions which

will derive Renewable Energy

sector into a growth for the

upcoming years.

The development of renewable

energy is part of a wider

objective of the “Vision 2030”

to reform and diversify Saudi

Arabia’s oil-dependent

economy.

To use crude oil in more

sustainable life cycle

production such as nonmetallic.

This will enable the growth of

RE in the power generation

and electricity sectors.

Don’t “burn it”, “use it”

© Saudi Arabian Oil Company, 2020

Page 99: Nonmetallic in Oil and Gas, Automotive and Renewables ... · Renewables Value Proposition Session February 2020. Disclaimer This presentation may contain certain forward-looking statements

Saudi Aramco: Public

The global demand on

Wind as a source of

energy is expected to

grow at 11% from 648

GW installed in 2019 and

will reach 1,863 GW year

2030

Global Demand of Renewable Energy—Wind

656728

808897

996

1,105

1,227

1,362

1,512

1,678

1,863

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

( G

W)

Global Demand of Renewable Energy - Wind

Source: IEA, Saudi Aramco Internal Analysis

11%

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Saudi Arabia and GCC’s Demand of Renewable Energy—Wind

Source: Saudi Aramco Internal Analysis

• The KSA demand on

Wind as a source of

energy is expected to

grow at 20% from 2.6

GW in 2019 and will

reach 16 GW year 2030.

• Total GCC demand is

expected to reach 27

GW by year 2030

2.6 3.1 3.74.5

5.46.4

7.79.3

11.1

13.4

16.0

1.82.1

2.63.1

3.7

4.4

5.3

6.4

7.6

9.1

11.0

4.45.2

6.37.5

9.0

10.9

13.0

15.6

18.8

22.5

27.0

0

5

10

15

20

25

30

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Quanti

tiy (

GW

)

KSA & GCC Demand of Renewable Energy - Wind

KSA Rest of GCC

20%

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Value Chain Mapping—Wind

103

Key ingredients are available locally and in GCC region. For Wind Turbine, key raw

materials are already existed

locally to produce blades and

key components. The key

opportunities are in the

components and finished

products manufacturing as

well as after sales services.

Available Locally Localization Opportunity

Source: Persistence Market Research &

Wind Turbine

Generator

Tower

Blades & Rotors

Cabling

Gearbox

Carbon Fiber / Fiber

Glass

Epoxy

Metal

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Raw Material Components Finished ProductsInstallation & After

Sale Serv.

Value Chain Mapping Analysis—Wind

104

Gaps Carbon Fiber, Fiber Glass,

Aluminum, Expoxy Coated

Steel are not available in the

Kingdom. Yet, Opportunities

exist for local market to start

the localization of these key

items to meet growing local

and global demand.

Most of the components of

the Wind Turbine are

currently not available in the

Kingdom such as: Blades &

Rotors, Tower, Gearbox,

etc.. Therefore, there is an

opportunity to localize some

of them, as demand will be

derived by the localization of

Wind turbine industry.

Opportunity exist to

establish local

companies to meet

growing demand on:

1- Blades & Rotors

2- Tower of wind turbine

Opportunity exist to

establish installation,

service and after sale

businesses in the kingdom

Step

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Saad Alkhuzayim

Local Business Development

Saudi Aramco

[email protected]

In case you are interested in discussing these opportunities further, please contact

Farah AlTurkestani

Local Business Development

Saudi Aramco

[email protected]

For More Business Development & Market Information Visit:

Website: www.iktva.sa/opportunities

Email: [email protected]

© Saudi Arabian Oil Company, 2020

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Thank you

© Saudi Arabian Oil Company, 2020