YOUR SPEAKER AND EXPERTS

• Over 35 years industry and consulting experience with BP, Chem Systems, IBM, CRA, Roland Berger

• Extensive consulting experience with all major integrated chemical and plastics companies

• Consulting expertise in strategy development, M&A, innovation management & organization design

• Lead partner for the development of Roland Berger's chemicals business in Middle East

Partner, GermanyChemicals

• 15 years of consulting experience with Roland Berger• Consulting experience in chemicals, oil, pharma and

consumer goods• Expert in digital transformation, commercial excellence,

marketing and sales strategy• Lead partner for digital transformation in Chemicals

CarolinGriese-Michels

Dr. Neil CheckerPartner, GermanyEnergy and Chemicals

Extensive strategy and operational consulting experience internationally – 25 years consulting of Middle East based clients

Extensive experience in global digital disruption workshops and business model innovation in the Chemicals industry

LET'S GET STARTED – AGENDA FOR TODAY

Digital transformation journey: Examples of Chemicals@Spielfeld and invitation to Berlin

Master the maze: Assessing readiness for digital transformation and our new online assessment tool

B

A

C

Roland Berger: A trusted chemical industry partner globally and in the Middle East

LET'S GET STARTED – AGENDA FOR TODAY

Digital transformation journey: Examples of Chemicals@Spielfeld and invitation to Berlin

Master the maze: Assessing readiness for digital transformation and our new online assessment tool

B

A

C

Roland Berger: A trusted chemical industry partner globally and in the Middle East

1967 Munich

1969 Milan

1976 São Paulo

1986 Barcelona | Madrid

1970 Rome

1982 Düsseldorf

1987 Stuttgart

1989 Frankfurt | Vienna

1991 Tokyo

1990Berlin | Hamburg | Lisbon | London | Paris

1992 Bucharest

1995 Beijing | New York

1994 MoscowDetroit | Shanghai 1998

Amsterdam 2002

Budapest | Zurich 1997

Warsaw 2000

Manama 2006

Zagreb 2003

Chicago | Hong Kong | Beirut 2007

Casablanca | Istanbul | Taipei 2008

Stockholm | Gothenburg | Singapore 2010

Doha 2009

Dubai | Kuala Lumpur 2011 Lagos | Jakarta

Seoul | Mumbai | Guangzhou 2012| Montreal | Boston

1993 Brussels | Kyiv | Prague | Riga

Shanghai (Asia)

Düsseldorf (EMEA)

Boston(Americas)

ROLAND BERGER IS A TRULY GLOBAL FIRM WITH A WELL-ESTABLISHED

MARKET POSITION – GLOBAL SUCCESS IS DRIVEN BY ITS CORE VALUES

Founded in 1967 in Germany by Roland Berger

51 offices in 36 countries, with around 2,700 employees

About 250 RB Partners currently serving ~1,000 international clients

Recognized implementation capabilities

Voted as consultancy with strongest implementation capabilities six times since 2005

Roland Berger 375#1

Accenture 352#2

Oliver Wyman 348#3

McKinsey 339#4

A.T. Kearney 335#5

Regional Chemicals Competence Centers in the U.S., Europe and China

20 offices in 17 countries with >100 practitioners in Chemicals

We have developed a strong foothold in the Middle East since the opening

our first office in 2006

Bahrain office

(regional HQ)

Opened in 2006

Almoayyed Tower

21st Floor

Manama/Kingdom of

Bahrain

Bahrain

Lebanon

Qatar office

Opened in 2009

Al Fardan Office

Tower

8th Floor

Doha - Qatar

UAE office

Opened in 2011

Al Thuraya Tower No. 1

12th Floor

Dubai/United Arab

Emirates

Lebanon office

Opened in 2007

Beirut Souks - Block M,

Floor 4

Central District (South)

Beirut - Lebanon

UAE

QatarKSA

KSA office

Licensing in progress

…

Riyadh, Saudi Arabia

Locations of Roland Berger Middle East hubs

OUR CHEMICALS INDUSTRY EXPERIENCE IS BASED ON OUR DEEP

KNOWLEDGE OF VALUE CHAINS, MARKETS AND COMPETITORS

Agrochemicals & Pharma intermediates

OlefinsTraditional Coatings, Adhesives, Sealants and Inks

Automotive

Performance chemicalsAromaticsUnconventional (Shale) Substrates Construction

Performance/composite materials

InorganicsRenewable/Bio-based

Parts/Aggregations

Electronics and Consumer Products

Oil & gas Basic materials& intermediates

Specialty chem-icals/materials

Formulation & fabrication

End markets

Due diligence on a Saudi industrial services company in O&G and petrochemical sectors

ME joint venture partner selection for a US specialty chemicals and polymer company

Oilfield Chemicals market strategy for KSA based private company

Advisory support KSA downstream cluster program

Reorganization of Engineering and Technical Services ME fertilizer company

International growth strategy for ME based integrated petrochemical company

1 2 4 53

Example Roland Berger team regional experience along chemical value chain

ROLAND BERGER IS A THOUGHT LEADER IN DIGITIZATION AND CHEMICALS –

ENABLING US TO QUICKLY DEVELOP CONCRETE SOLUTIONS WITH OUR CLIENTS

Chemicals 2035Study

Commercial excellence – What customers want

Master the Maze –Formulating a winning digital strategy in chemicals

Digital Hub Spielfeld – Berlin-Kreuzberg

Digital Pathfinder –Online assessment tool

LET'S GET STARTED – AGENDA FOR TODAY

Digital transformation journey: Examples of Chemicals@Spielfeld and invitation to Berlin

Master the maze: Assessing readiness for digital transformation and our new online assessment tool

B

A

C

Roland Berger: A trusted chemical industry partner globally and in the Middle East

www.digitalpathfinder.org

IN CHEMICALS, DIGITAL TRANSFORMATION AFFECTS THE ENTIRE VALUE

CHAIN TO ACHIEVE OPERATIONAL EXCELLENCE AND TOPLINE GROWTH

RB understanding of digital transformation in Chemicals

Pursuing digital initiatives along the entire chemicals value chain to

… foster incremental improvement to achieve operational excellence

… achieve topline growth

R&D

Plant Design & Engineering

Operations & Service

Market Side

Back Office

New players

IN CONTRAST TO OTHER INDUSTRIES THE CHEMICAL SECTOR IS SLOWLY

GEARING UP TO THE DIGITAL JOURNEY

Financial Services Automotive Chemicals

Gearing upChemical players have started digital initiatives – but direction is often unclear

Strongly affectedTraditional players forced into new business models

Strongly affectedTraditional players forced into new business models

Digital Factory Digital Wallet

Digital Labs Digital Bank

New players

Predictivemaintenance

Mobile apps

Digital transformation

projects

Smart CRM

New sales channels

via webshops

THERE ARE TWO GENERAL APPROACHES TO DIGITAL TRANSFORMATION –

HOWEVER, SUCCESSFUL MARKET LEADERS NEED TO COMBINE BOTH

Two strategies need to be followed in parallel

= C

B: Revolution … while building a new market making

paradigm …

Stay on top of your current

industry …… in a two-handed approach!

RevolutionaryBuild new digital competitive advantages

on strategic control points and disrupt –

Becoming a digital leader for a specific industry

EvolutionaryUtilize digital technology for

evolutionary improvements of

core business model – Continuously adapting to new market situations

A: (In-industry) evolution

MOST CHEMICAL COMPANIES ARE TAKING AN EVOLUTIONARY APPROACH – EARLY

SIGNS OF POTENTIAL REVOLUTIONARY CHANGE IN CHEMICAL DISTRIBUTION

Digital transformation approaches in Chemicals

Focused specialty chemical playersLarge integrated players Highly focused specialty chemicals players

Digital transformation approaches

Petro-chemicals

Basic/industry chemicals

Polymers Specialtysegments1)

Proximity to end markets

First revolutionary business models emerging in chemical distribution

Revolu-tionary

B

Evolu-tionary

A

70%

Do Nothing10%

Players like AkzoNobel

that have undergone

successful restructur-

ing or Monsanto as

clear market leader in

Digitization

Two-Handed

C

20%

1) Coatings; agrochemicals; construction chemicals; personal care chemicals

Potential

impact

on

industry

CHEMICAL DISTRIBUTION PLAYERS ARE CHALLENGED BY NON-TRADITIONAL

MARKET ENTRANTS – POTENTIAL FOR DISRUPTION IN DISTRIBUTION INDUSTRY?

Challengers in chemical distribution and potential future scenario1)

1) Examples, non-exhaustive

E-marketplace incl. chemicals

Chemicals marketplace

Online retail – WiFi connected Dash Buttons for detergents

Chemicals B2B platform

Challe

ngers

Chemical distribution4.0?

Stronger consolidation?

GOOD NEWS IS THAT IN CHEMICALS NO FIRM HAS DEVELOPED "DIGITAL

LEADERSHIP" – SO HOW CAN YOU GET STARTED ON THE JOURNEY?

Roland Berger framework to digital transformation

… and it is working.Not sure where to start or where to go?

We have developed a map …

!

?

TRY IT OUT NOW!

WE ASKED YOU TO TEST YOUR DIGITAL READINESS – LET'S HAVE A LOOK:

THE AVERAGE DIGITAL READINESS SCORE IS BELOW 40%

Digital readiness score: Intervals and participants in the room [%]

00

21-40 81-100

61%

0-20

30%

41-60

9%

61-80

Digital Laggard Developing TransformerDigital Market

Maker

Avera

ge

Dis

trib

ution

20%0% 80% 100%50%

• Your organization is determined to progress in digital transformation but there is unexploited potential

• You started to develop a digital strategy but it has not yet been defined asyour central vision

• You have kicked off generating digital initiatives but you need to thinkabout ways to bring them to life

IT APPEARS LIKE THE OVERALL CONDITIONS TO GENERATE DIGITAL IDEAS

ARE FAVORABLE BUT THERE IS STILL POTENTIAL TO IMPROVE

Digital readiness score specific to survey questions [%]

Survey questions

How radically will digitization transform the current market your company operates in in

the next five years? 1

Do you think that digitization will challenge your company's existing business model

within the next five years?2

Do you think that your company is strategically prepared to meet the challenges of

digitization in an appropriate way? 3

Do you think that your company is already undertaking sufficient measures today to respond

to the challenges of digitization (e.g. concrete and executable plans / Business models) 4

5

21 – 40% 41 – 60%

Do you think that your company possesses the adequate (a) resources and b) capabilities to

generate a sustainable competitive advantage, as well as additional sales potential through

digitization?

THE PATHFINDER DATABASE CONTAINS MORE THAN 50 PAIN POINTS AND

MORE THAN 100 DIGITAL USE CASES ALONG THE CHEMICALS VALUE CHAIN

Digital activities along the value chain

>50pain points

>100digital use

cases

Operations

& Service

Plant Design

& Engineering

Back

Office

Market

SideR&D

Lack of connection of R&D with customer needs

1 Virtual communities to generate and test ideas for product innovation

1

Long product development cycles2 Rapid Prototyping – external collaboration 2

Long reporting cycles between R&D and market side

3 Interface to direct and end-customers to analyze customer needs

3

…4 …4

1 1

2 2

3 3

…4 …4

R&D

Pain points Digital use cases

THE DIGITAL PATHFINDER FOR CHEMICALS FRAMEWORK COMPRISES 3 STEPS TO

DIGITAL READINESS – ONLINE SELF-ASSESSMENT SURVEY AS A FIRST STEP

Digital Pathfinder – 3 steps to digital readiness

✓Determine your digital readiness score

Contains all features of the high-level assessment, plus:

Analyze digital use cases that are or will be in place in your entire organization

✓

Identify unexploited potentials and pain points between digital use cases & digital readiness

✓

Get deep insights from a Roland Berger digital expert through an in-depth call or video conference

✓ Evaluation of selected use cases and assessment of approaches to integrate them into your current business model

✓

✓Get your personal high-level digital readiness evaluation and a preview of the Digital Pathfinder analysis

✓ Leave your contact details. We will get in touch to plan the best next steps to digital readiness

Get Benchmarks of use cases with industry peers

✓

Develop potential disruptive use cases together with Roland Berger experts in a dedicated Workshop –either in your offices or at the Roland Berger digital in Berlin

✓

High-level self-assessment Digital expert workshopDetailed organizational assessment

ONLINE IN PERSON

Contains all features of the detailed organizational assessment, plus:

ONLINE and FREE1. 2. 3.

LET'S GET STARTED – AGENDA FOR TODAY

Digital transformation journey: Examples of Chemicals@Spielfeld and invitation to Berlin

Master the maze: Assessing readiness for digital transformation and our new online assessment tool

B

A

C

Roland Berger: A trusted chemical industry partner globally and in the Middle East

THE DIGITAL JOURNEY REQUIRES A CHANGE IN MINDSET – TO ENABLE THIS

WE CREATED A NEW WORKING ENVIRONMENT FOR CLIENTS IN BERLIN

Inspiring work space

Typical Berlin industrial complex under monumental protection, with high ceilings and a column structure

Nearby are numerous restaurants and cafés in the

vibrating area of Wrangelkiez

Selected highlights

Former post office in the heart of Berlin Kreuzberg – Built in 1925-1927

Agile working methods and fostering of exchange between different project teams

Different room formats e.g., co-working spaces, breakout rooms, meeting rooms, arena for talks

AT SPIELFELD WE HAVE TAKEN SELECTED CLIENTS ACROSS MANY INDUSTRIES IN

PROJECTS AS WELL AS IN WORKSHOPS ON THEIR JOURNEY

Typical project approach

Key is to

ensure new

digital initia-

tives are in

line with your

current busi-

ness model

Validate with customer needsCustomer & market feedback radar

PHASE II

Detail use cases and start prototypingDigital solutions/use cases & prototyping

PHASE III

PHASE I Identify the right path through the mazeIdeation

Examples– Phase 3: Solution detailing and prototyping

TODAY, WE WILL SHARE TWO EXAMPLE DIGITAL INITIATIVES COVERING

DIFFERENT PARTS OF THE OPERATING VALUE CHAIN

R&D

Plant Design

& Engineering

Operations

& Service

Market Side

Back Office

Operations

& Service

Market Side

Multichannel

Offerings

Productivity

PHASE IIISTART

THE QUICKFINDER ENABLES YOUR CUSTOMERS TO EASILY FIND PRODUCTS

AND SERVICES THEY NEED WITH STATE-OF-THE-ART SEARCH ANALYTICS

Examples– Phase 3: Multichannel Offerings

Quick-finder

Home

Where do we want to go?

Become the primary destination for chemical search requests

Why should we do it?

Address the top pain point that has been mentioned by all customer segments and industries. Example: 95% of farmers in NA, and Europe ask for advice with regard to products/specifications before their buying decision

What to watch out for?

Difficult to implement due to variety of Chemical products and classifications across countries (or even business unit borders)

PHASE IIISTART

RELIABILITY CENTERED MAINTENANCE CAN HAVE AN IMPRESSIVE

FINANCIAL IMPACT – 69% COST SAVINGS OVER 2 YEARS AT CHEMICAL PLANT

Examples– Phase 3: Productivity (1/2)

In Maintenance

We Trust

Next

Where do we want to go?

Set the bar for productivity standards (Overall Equipment Effectiveness > 85%) Why should we do it?

Realize savings opportunities due to reduced number of repairs

What would it look like?

PHASE IIISTART

MODULARIZATION OF THE PLANT ASSETS ENABLES SCALABILITY AND

OPTIMIZATION OF NETWORK TO MARKET DEMAND

Examples– Phase 3: Productivity (2/2)

Scan my Network

Home

Where do we want to go?

Scaled modular assets in line with regional market demand

Why should we do it?

Reduced time-to-market and flexibility for global supply chain management

What would it look like?

Detail

PHASE IIISTART

MANUFACTURING FOOTPRINT OF THE FUTURE – DEMAND RESPONSIVE, MODULAR

PLUG AND PLAY, GLOBALLY NETWORKED, DIGITALLY CONNECTED ASSETS

Source: INVITE (TU Dortmund/Bayer/HHU Dusseldorf: public-private partnership)

Scaling and location production based on market demand

Back

WE WOULD LIKE TO INVITE YOU TO TRY OUT OUR DIGITAL PATHFINDER FOR

CHEMICALS IN YOUR ORGANIZATION AND TO VISIT US @SPIELFELD IN BERLIN

Is your company ready for the digital

transformation in Chemicals?

www.digitalpathfinder.org

Join us in Berlin for a workshop @Spielfeld

Design think-ing workshops

Learning journey

Digital Dis-ruption Days

Rapidprototyping

Roland Berger offer