serious science applied to catalyst design

PresentationtoInvestors/AnalystsOpportunitiesinProcessTechnologies

30th January2014

FollowusonTwitter:@johnson_matthey

ScantodownloadourIRapporvisitwww.matthey.com/app

CautionaryStatementThispresentationcontainsforwardlookingstatementsthataresubjecttoriskfactorsassociatedwith,amongstotherthings,theeconomicandbusinesscircumstancesoccurringfromtimetotimeinthecountriesandsectorsinwhichJohnsonMattheyoperates.Itisbelievedthattheexpectationsreflectedinthesestatementsarereasonablebuttheymaybeaffectedbyawiderangeofvariableswhichcouldcauseactualresultstodiffermateriallyfromthosecurrentlyanticipated.

IntroductionandWelcome

NeilCarsonChiefExecutive

Programme14.00 IntroductionandWelcome NeilCarson

14.10 OpportunitiesinProcessTechnologiesQ&AandcoffeebreakafterthissessionGeoffOtterman

15.30 AddingValueThroughTechnology IainMartinProcessTechnologiesandtheChemicalsMarket IainMartin

ProcessTechnologiesinChina HenryLiu

SummaryQ&Aandcoffeebreakafterthissession

GeoffOtterman

16.50 ProcessTechnologiesandtheOilandGasMarket DonRocheSummaryandKeyMessagesQ&Aafterthissession

GeoffOtterman

17.30 ClosingRemarksandFinalQ&A NeilCarson

18.15 DrinksReceptionandDinner4

Introduction

Aworldleadingtechnologycompany

Successfoundedoncontinuedinvestmentin

R&Dandproductdevelopment

Differentiationthroughtechnology

Provenstrategyinplacetodevelopnew

businessareas

Wellpositionedingrowthmarkets

Deliversvalue

5

OpportunitiesinProcessTechnologies

GeoffOttermanDivisionDirector,ProcessTechnologies

Agenda

OpportunitiesinProcessTechnologies01 GeoffOttermanAddingValueThroughTechnology02 IainMartinPTandtheChemicalsMarket03 IainMartinPTinChina04 HenryLiuPTandtheOilandGasMarket05 DonRocheSummary06 GeoffOtterman

7

OurAimsToday

Provide Insight Explain Highlightanoverview ofProcessTechnologiesactivities,marketsandcompetitivestrengths

intothegrowthdrivers inProcessTechnologiesmarkets

howthedivisioniswellplacedtobenefitfrom growthinthesemarkets

prospectsforthedevelopment ofthebusinessesinthedivision

8

WhatisProcessTechnologies?Coretechnologystrengthscombinedwithexpertiseandknowhowofourpeople

Highperformancecatalysts Pellets,granulesandpowdersoftensoldon

tonnescale Replacementcycleorcontinuousdosing Investmentinnewproductdevelopment

Catalysts

Providesblueprint(flowsheet)onhowtobuildandoperateaplant

Strongengineeringknowhow Abilitytointegratecatalystwithprocessscaleup Investmenttoimproveexistingprocess

technologiesanddevelopnewones

Processes

Optimisedplantefficiency Performanceguarantee SupportandservicefromJM

Forourcustomers

9

HistoryofProcessTechnologiesBuildingblocksforanewdivision

JMpgmcatalysts

ProcessTechnologies

Division

DavyProcessTechnologyProcesstechnologies,processengineering andlicensing

2006

FormoxFormaldehydecatalysts,licences andtechnologies

2013

IntercatAdditivesfor

FCCapplications

2010

ICISynetixBasemetalcatalysts

2002

10

DevelopmentoftheDivision

ProcessTechnologies

People Worldclassscientistsandengineers Threadingtogethernewbusiness Attractingindustryexperts Processandindustryknowhow

R&D Continuedinvestment Alignedwithcoretechnologycompetences

Acquisitions Marketleaders DifferentiatethroughR&D Customerrelationships Potentialforinvestment

+ ++Capex Addedcapacityinanticipationofdemand Supportingregionalgrowth Investingforthelongterm

11

OverviewofProcessTechnologiesGloballeaderinprocesscatalystsandprocesstechnology

>2,300Employees;10%inR&D 15%CAGRinSales

BroadGeographicalSpreadSalesbyDestination (1H2013/14288m)

TwoKeyMarketSectors

0

100

200

300

400

500

600

2009/10 2012/13

22% 22%

24%24%

8%

Chemicals

~60% OilandGas~40%

66%

16%5%

12%

1%

Europe

China

NorthAmerica

MiddleEastandAsiaOther

Europe

China

NorthAmerica

MiddleEastandAsiaOther

Intercat

12

GlobalCoverage

9 ManufacturingSites 10TechnologyCentres 28SalesOffices

Paris

PerstorpMoscow

Beijing

Shanghai

KualaLumpur

NewDelhiBahrain

Oman

Trinidad

Savannah

WestDeptfordChicago

Houston

Bergen

Aberdeen

Billingham

RoystonLondon

EmmerichOberhausen

SeoulTokyo

MilanBarcelona

RiodeJaneiro

Clitheroe

Sonning Common

BrusselsUtrecht

Panki

Stockton

Mumbai

Sevierville

UKsites

Qingdao

13

ProcessTechnologiesDivisionStrategyDeliveringdoubledigitgrowth

Maintainleadingpositionsincatalystsandprocesstechnologiesforchemicalsmarkets Leveragecatalystandprocessexpertiseforsuperiorgrowthinexistingandnewmarkets

Developlargerpresenceinoilandgasmarkets Exploitexistingtechnologyadvantages

Developprocesstechnologytocomplementcatalysts

Investforgrowth MaintainR&Dspendat~5%ofsalesp.a.

Capex ~80100mp.a./2xdepreciation

ImprovementinROIC

Expandcapabilities R&D includingnewmaterials

Externalpartnerships

Targetedacquisitions

+

14

ServingTwoMarketSectors

#1or#2inmajorityofourmarkets

Chemicals Syngas

Petrochemicals

Oleo/Biochemicals

~60%ofPTsalesWhatwedo Catalystsandprocesstechnology

Competitors Clariant,Haldor Topse,BASF

OilandGas Refineries

GasProcessing

DiagnosticServices

~40%ofPTsalesWhatwedo Catalystsanddiagnostics

Competitors Grace,Albemarle,UOP,Clariant

Refineries19%

GasProcessing

8%

DiagnosticServices11%

Syngas30%

Petrochemicals

18%

Oleo/Bio13%

15

PTsChemicalsMarkets

Catalyst Licensing

Feedstock

Ammonia

GTL

Hydrogen

SNG

Formaldehyde

Fertilisers

CleanFuels

Adhesives

Construction

Shampoo

NaturalGas

S

y

n

g

a

s

BuildingBlocks Intermediates EndUseProducts

EdibleOilsandOtherOleochemicals

Biorenewables

DetergentsandSoaps

Food

Biochemicals

BiomassandNaturalOils

O

l

e

o

/

B

i

o

Propylene

Butanediol

Films,FibresandBottles

Packaging

FilmsandCables

EngineeringPolymersNaturalGasLiquids

Petroleum

P

e

t

r

o

c

h

e

m

i

c

a

l

s

MonoEthyleneGlycol

Ethylene

Aromatics

Butane

Methanol

NaturalDetergentAlcohols

PTA

JMcoveredtechnology/products/service

Coal VinylChlorideMonomer

OxoAlcohols

16

ExpandingActivitiesinChemicalsMarkets

OpportunityforJMtogrowwithin2bnp.a.chemicalcatalystsandprocesstechnologymarket

Expansionthrough: Increasingcatalyst+processofferingwithincurrent

portfolio Developingintonewmarkets

Opportunity

Expansion

Catalyst ProcessTechnology

AddedValueforJM

NewMarkets

JMasignificantplayerintargetedmarkets

JMToday

17

PTsOilandGasMarketsJMhasstrongpositionsintargetedhighvaluemarkets

OpportunitiestoapplyPTsskillsincurrentandadditionalareasofoilandgasmarket: Byinnovationandleveragingcorecompetencesinadvancedmaterials Bypartneringandacquisition

RefineriesHydrogen

Leadingpositioninreforming,shiftandpurificationcatalystsforhydrogenmanufacture

GasProcessing

Strongpositioninmarketforremovalofsulphurandmercuryfromgasstreamstoverylowlevels

DiagnosticServices

Highvalue,specialistofferingsacrossthewholeoilandgasvaluechain

RefineriesAdditives

UniqueproductofferinginFCCadditivesanddosingsystemsforimprovingefficiencyandenvironmentalperformanceofFCCunits

18

23%

RobustGrowthinExistingMarketsUnderlyingMarketGrowth SuperiorGrowthMarkets

Chemicals

23%Oil

12%Gas

Methanol

67%

Hydrogen

6%

Formaldehyde

5%

RefineryAdditives

57%

SNG

10+%

SubseaInstrumentation

10+%H

CatalystMarket

Syngas Petrochemicals

Refineries DiagnosticServices

4%CatalystMarket

3%19

GlobalDriversandtheirImpactonPT

PTbusinessfocus

Ammoniasynthesisandnitricacidcatalysts

Carboncaptureandstorage(CCS)

Automotive Electronics

Construction

Bulkchemicals

Emissioncontrolcatalysts

Obscurationenamels

Pgms

Pharmaceuticals

Agriculturalchemicals

APIsMedical

components

Finechemicals

Energysecurity

Alternativeenergy

Resourceefficiency Recycling

Gas/coaltoproductstechnology

Catalysts Pgmrefining

Emissioncontrol

Cleanfuel

Lowcarbon

Emissioncontrolcatalysts

Abatementtechnologies

Hydrogencatalysts

Purificationproducts

Pgmcatalysts

Fuelcellsandbatterytechnologies

Health&NutritionAgeing

Population

EnvironmentalFactors

ClimateChangeRegulation

PopulationGrowth

UrbanisationIncreasingWealth

NaturalResourceConstraints

Biorenewables

GlobalDriversIndustrySector IndustrySectorJMActivities JMActivities

Petrochemicalcatalysts

andprocesses

Changeprovidesopportunity20

ChangeDrivesGrowthforPTKeyopportunitiesbeyondunderlyinggrowth

Shalegas,itsnewavailabilityandtheeffectonprocesseconomics

Greaterglobaldemandforfuels, particularlycleanerfuelsmadefromdirtierandlessaccessiblefeedstocks

TheChineseimperativeforfuelsecurityandtheneedforcoalbasedchemicals

Demandforassetperformanceandintegrityareincreasingacrossourmarkets

Couldadd100mp.a.insalesby2020




21

NeweraoflowcostnaturalgasinUS Naturalgasliquids(NGL)feedstocks fromshalegasprovidefavourableeconomicsforpetrochemicals

Stimulatedinvestments>$100bninUSchemicalsto2030

ShaleGas

Newammoniaandmethanolcapacity Gastoliquidstomonetisegas

TheChanges KeyOpportunities

CrudeOil

0

2

4

6

8

10

12

14

0

20

40

60

80

100

120

140

160

Nov07 Mar09 Jul10 Nov11 Mar13

$/bbl

USDryNaturalGasProduction(trillioncubicfeet)

Source:EIA Source:EIA

0

5

10

15

20

25

30

35

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

46%

8%9%

22%

6%1%7%

14%

20%

9%

28%

8%2% 9%

Shalegas

NonassociatedonshoreNonassociatedoffshore

Tightgas

AlaskaAssociatedwithoil

Coalbed methane

$/mmBtu

NaturalGas


22

GlobalDemandforFuels

Productslateshifttowardsmiddledistillate(diesel) Trendtowardsheavierandsourercrudes FCCcapacitygrowthinAsia(fuels)andMiddleEast(chemicals)

Effortstomaximiseproductionfromdepletedfields

Stronggrowthinhydrogendemand Greaterdemandforrefineryadditives Tracerstomaximisefieldproductivity


AverageGlobalCrudeOilQuality GlobalDemandbyProduct ShifttoDistillate(millionbarrelsperday)

2011 20152012 2020 20302025 203531.5

32.0

32.5

33.0

33.5

34.0

34.5

35.0

1.00

1.10

1.20

1.30

1.40

Source:HartEnergy

Light

Heavy

A

P

I

g

r

a

v

i

t

y

(

m

e

a

s

u

r

e

o

f

c

r

u

d

e

d

e

n

s

i

t

y

)

Sour

Sweet

*API Sulphur(wt%)

Source:HartEnergy

0

20

40

60

80

100

120

140

2011 2012 2015 2020 2025 2030 2035

OtherProducts

LPG

HeavyFuelOil

MiddleDistillate

Jet/Kero

Naphtha

Gasoline

88 89 94102 108

113 118


23

CoalbasedChemicals

EnergydemandgrowthdrivesuptakeofcoalresourcesinChina

Chinaisnowthemajormarketforcoaltochemicals Coalminersandenergycompaniesinvestingincapacity AirqualityrequirementsdrivingamovefromcoaltogasasanurbanfuelinChina

HugeinvestmentinnewcapacityinChinarequiringcatalyticprocesses

CoaltoSNG(substitutenaturalgas) Coaltomethanoltoolefins Newmethanolderivativetechnologiese.g.MEG


ChinaCoalConsumptionbySector ChinaNaturalGasConsumption/Demandbn Nm3 p.a.

Source:CCBInternational2012,CCTD,SXCoal,A.T.Kearneyanalysis Source:ChinaPetroleumandChemicalIndustryFederation

(milliontonnes)

101 108 112161 150

18120

31 43 53

93

130

050

100150200250300350400450

2011 2012 2013 2015 2020

ImportNG

SNG

OtherNGProduction

2011 2015E

17%

15%5%9%

~57%

~16%

~14%

~7%~6%

3,778

4,640OthersChemicals

Cement

Steel

PowerGeneration

1520%

23%

34%

67%

CAGR~5.3%

3%

54%


24

AssetPerformanceandIntegrity

Capex pressuresmean Greatervaluefrommoreefficientprocessesandbetter

catalysttechnology Use/reuseofolderassets

Financialandreputationalrisksofpoorassetassurance

Highefficiencycatalystsforhighefficiencyreactors Processchanges,revampsandrepurposing Smarttechnologyforflowcontrol,assetinspectionandproductassurance



25

AddingValueandDeriskingforCustomersWhychooseJM?

ChoosingJMstechnologiesenablesourcustomersto: Maximisethecredibilityofanewprojectwhenraisingfinance

Reducethecapex requiredtobuildtheplant Delivermaximumproductivity,reliabilityandflexibilityfromtheasset

Minimiseenergyconsumptionandemissions

JMsR&D,technicalsupport,productsandservicesallowourcustomersto: Optimiseandfurtherimproveplantoperation Reduceoperatingcosts Maintainreliabilityandavailability

Foranewplant Whentheplantisrunning

Customersassetscostbnstobuildand100mstorun

ChoosingJMsproductsandservicesprovidescredibletechnologyandderisksinvestment

26

UseTechnicalStrength

TheJMAdvantageHowwestayahead

Producesuperiorproducts,reduceourproductioncosts

Additionalservicesthataredifficultforourcompetitorstoreplicate

BuildCapacityandCapability Localtogrowthmarkets

ProtectValue StrongknowhowandIP Inhousecapabilities Continuousimprovementfasterthanourcompetitors

IntegrateTechnicalandCommercialSkills Enabledevelopmentofexistingandnewmarketareas

27

Stablemargins

KeyTakeaways

Stronganddefensiblepositioninallourmarkets

Abletoleveragebothcatalystandprocess

technology

Technologyandknowhowinvestment

Globaldriverssupportincreasingdemandfor

PTsofferings

Doubledigitgrowthonaveragefortheforeseeablefuture

28

AddingValueThroughTechnology

IainMartinTechnologyDirector,ProcessTechnologies

Introduction

Strongtechnologyunderpinsleadingmarketpositions

Highleveloftargeted R&Dinvestment tosupportfuturegrowth ~5%ofsalesp.a.

Abilitytointegrate catalystandprocessdevelopment GreatervaluetoJM Createsopportunitiestodevelopnewmarkets

Increasedresiliencetocompetitivethreat

30

UniquePositioninMarket

Valuesrecycle

Integratinginto

applications

ModellingPgm andbasemetalchemistry

Surfacescience

Manufactureatscale

TestingCoatings

Specialisttechnologyexpertise

Characterisation

SyntheticChemistry

ADVANCEDMATERIALDESIGN

Licences

Technologylicensing andcatalyst knowhowspanningmanydecades

Recognisedtechnologyleaderwithbroadportfolio

Addingvaluethroughdeepunderstandingofcustomeroperations

Strongtrackrecordofintroducingnewtechnologies

Independent fromchemicalmajors

31

SeriousScienceAppliedtoCatalystDesign

Expert scientistsandengineers

Worldclass catalystresearchanddevelopmentfacilitiesinUKandUSA

Broadcatalysisplatforms:basemetals,pgms,zeolites,absorbents

Coreskillsincatalysisunderpintechnologyleadership: Catalystdesignandpreparation

Characterisationandanalysis

Testingunderindustrialconditions

Reactionengineering

Strongcatalystapplicationknowledge


TranslatingCatalystDesignintoManufacturing

CreatingProcessesAroundtheCatalyst

EffectiveTechnologyTransfertoRealise

theValue

ChemistryKnowledge

ApplicationExpertise

CatalystTesting

ManufacturingKnowledge

32


Closelinkagebetweenlaboratory,pilotandcommercialfacilities

Widerangeofstateoftheartscaleupequipmentavailable

Researchfocusonimprovedproductionprocesses

Comprehensiveglobalmanufacturingandsupplychains

Globalnetworkprovidesinfieldtechnicalsupport





theValue

33


Existingprocessesaremademorecompetitiveandnewprocessesaredeveloped

Strongsynergywithinhousecatalystcapabilities

Design,buildandoperateminiplantstocommercialisetechnology

Provenabilitytoscaleupdirectlytocommercialscale





theValue

34

EffectiveTechnologyTransferToRealiseTheValue

Manage therisksassociatedwithfirstdemonstrationofcatalystorprocesstechnology

Successfullyoperatestrategicallianceswithmajoroperatingcompaniestoacceleratecommercialisation

Transfertechnicalknowhowthroughbasicengineeringpackages

Supportlicenseesduringlongtermplantoperationtobesteffect





theValue

35

Polypropylene

Polyethylene

Coal Gasification MethanolMethanoltoOlefins(MTO)

PlasticBags

Carpets

Propylene

Ethylene

Butene

Polypropylene

Polyethylene

Coal Gasification MethanolMethanoltoOlefins(MTO)

PlasticBags

Carpets

Propylene

Ethylene

2Propylheptanol Plastic

CoatedCable

Butene

R&DinActionCreatingnewmarkets

2Propylheptanol(2PH) agrowingintermediateforimprovedplasticiserperformance

36

AddingValueThroughTechnology

Innovationenablesustoincreasesalesmarginforourcustomerscomparedtoourcompetitors

Catalystcostisgenerallyrelativelysmallcontributiontototalcost

Seektosharevalue Improvedcatalystprice Licence fees Technologytransferfees Services

SimplifiedCustomerProductionCostModelforTerephthalic Acid

RawMaterials $/tonne

Paraxylene 725

AceticAcid 15

Catalyst 5

Utilities 15

FixedCosts 25

TotalCashCost 785

DepreciationandROCE 115

CostofProduction 900

SalesPrice 1,000

Margin 100$/tonne

37

AddingValueThroughTechnology KeyTakeaways

Talentedandenthusiasticstaff

continuetobeatcoreofoursuccess

InvestingforgrowthinfacilitiesinEurope,

USAandAsia

Uniquetechnologycapabilityprovidesconfidenceinabilitytomaintainstrongpositionsinexistingmarketsandto

establishnewbusinessareaswithstronggrowthprospects

Focusonprotection ofknowledgetosustain

thegrowth

+ + +

38

IainMartinTechnologyDirector,ProcessTechnologies

PTandtheChemicalsMarket

ChemicalsDrivers

ChemicalsDriversGlobalDrivers

PetrochemicalDemandGrowthGrowthinprimarypetrochemicalandderivativedemand,regionalandproductslateshifts

ShaleGasNewprojectsandgrowthbaseduponUSshalegas,shiftfromoiltosyngasbasedchemistry

CoalbasedChemicalsChinesegrowthforchemicalandenergysecurity

RenewableFeedstocksConsumerdemandforrenewablechemicals,advantagedfeedstockpositionoveroil,legislationforrenewablefuels

Health&NutritionAgeing

Population

EnvironmentalFactors

ClimateChangeRegulation

PopulationGrowth

UrbanisationIncreasingWealth

NaturalResourceConstraints

40

PTsChemicalsMarkets

Catalyst Licensing

Feedstock

Ammonia

Hydrogen

Fertilisers

CleanFuels

Adhesives

Construction

Shampoo

NaturalGas

S

y

n

g

a

s

BuildingBlocks Intermediates EndUseProducts

EdibleOilsandOtherOleochemicals

DetergentsandSoaps

Food

Biochemicals

BiomassandNaturalOils

O

l

e

o

/

B

i

o

Propylene

Butanediol

Films,FibresandBottles

Packaging

FilmsandCables

EngineeringPolymersNaturalGasLiquids

Petroleum

P

e

t

r

o

c

h

e

m

i

c

a

l

s

Ethylene

Aromatics

Butane

NaturalDetergentAlcohols

PTA

JMcoveredtechnology/products/service

Coal VinylChlorideMonomer

GTL

SNG

Methanol

Formaldehyde

MonoEthyleneGlycol

Biorenewables

OxoAlcohols

41

MethanolJMOffer Worldleadingtechnologylicensingandfullrangeofcatalysts

MarketDrivers CoaltochemicalsinChina ShalegasbasedopportunitiesintheUS

MethanolMarket Methanolproductmarket:65mtpademand Marketdemandgrowth:67%p.a. Growthincapacitynextfiveyears:5%p.a.

MethanolCatalystMarket JMshareofsector(installedvalue):#1catalysts Catalystinstalledmarketvalue:425475m Replacementcatalystmarket:80120mp.a. Catalystlifetime: 45years

Competitors(Licensing/Catalysts) Lurgi /Clariant Haldor Topse

NaturalGasReforming

Coke/C2H2OffGas

Gasified Coal

Methanol

ChemicalUses

FuelsM15

OlefinsMTO

42

FormaldehydeJMOffer Licensing,engineeringandprocurementofformaldehydeplants

andoxidecatalystsforformaldehydemanufacture

MarketDrivers MarketgenerallygrowsinlinewithGDP Chinaforecasttoexperiencefastgrowthrates(around7%

p.a.)andsignificantvolumeincreasesindemandduring2011to2016

Potentialforacceleratedgrowthifwoodsectorcanbetargeted Increasinguseofformaldehydeinnewchemicalintermediates

FormaldehydeMarket Formaldehydemarket: 43mtpa,~6bnp.a. Marketgrowth:5%p.a.

OxideCatalystMarket JMshareofsector:#1inoxidecatalystmarket(~1/3total) Replacementcatalystmarketforoxide:43mp.a.

Competitors DBWestern(processlicensingonly) Alder(catalystandprocesslicensing) Clariant (catalystonly)

Methanol

WoodProducts

Resins

Polyols

Formaldehyde

WorldConsumptionofFormaldehyde

Nonwood

Products42%

WoodProducts58%

BDO4%Pentaerythritol5%

MDI4%MFResins6%

PolyacetalResins8%

Others15%

43

02

4

6

8

10

12

14

0

20

40

60

80

100

120

140

160

Nov07 Mar09 Jul10 Nov11 Mar13

GastoLiquidsJMOffer1. Licensing:fixedbedFischerTropsch processandreactor

licensingwithBP2. Catalysts:syngasandFischerTropsch catalysts

MarketDrivers SpreadofoilvsNGpriceandaccesstolargeamountsoflowcost

naturalgas(Qatar,Australia,Russia) ShalegasinNorthAmericamajordriver Competitivedynamicsvsothershalegasuses

GTLProductMarket GTLmarket:200,000bbl perday,~$9bnp.a. OryxandShellPearl,Qatar Growth: Expectcapacitytodoubleto400,000bblperdayby2020

ShaleGasReforming

Gasified Coal/Biomass

FixedBed(orslurry)FTProcess

Lubricants

LowSulphurDiesel

HydrocarbonBlending

CrudeOil

$/bbl

Source:EIA

$/mmBtu

NaturalGas

44

LowPressureOxoAlcoholsJMOffer Licensedprocesswithcatalysts Developed,comarketedandlicensedwithDowChemicalCompany

for>40years 52licencessold

MarketDrivers Marketdrivetowardshighmolecularweightplasticiseralcohols:

developmentofa2PHvarianttoconvertC4streamsfromMTOprojects

Market JM/Dowshareofsector: #1 Licensingmarket: Typicallyoneplantperyear Hydrogenationcatalystreplacementmarket: >10mp.a. Typicalplantsize: 200300ktpa

Competitors MCC Oxea Eastman

Propylene

Syngas

Butene

PVC

Coatings

Solvents

nButanol

iButanol

2Ethylhexanol

2Propylheptanol

45

MonoEthyleneGlycol(MEG)JMOffer NovelprocessdevelopedinpartnershipwithEastmanChemical

Company andnowavailableforlicensing

MarketDrivers Chinaproductiondeficit,imports~7milliontonnesp.a. HighcostoftraditionaloilbasedandMTOroutesviaethyleneoxide JMDavy/Eastmanrouteofferslowercostprocess Opportunitytomeetmarketneedsbasedoncoalornatural

gasderivedsyngasandmethanol

MEGMarket Totalmarket:~22bnp.a.,24.5mtpa Growth:56%p.a.(89%p.a.China) Newcapacity201315:~4mtpa Typicalplantcapacity:200500ktpa JMshareofsector:New Licensingmarketsize:+12milliontonnesby2020

Competitors Sabic,ShellandDowforethylenetoMEGrouteviaethyleneoxide ChinatechnologyprovidersforsyngastoMEGrouteviadimethyl

oxalate(DMO) UbeforsyngasroutetoMEGviaDMO

Methanol

Syngas

MEG

PolyesterFibreandPET

Coolant,Antifreeze

46

OpportunitiesinBiorenewables

JMOffer Catalystsandlicensedprocessesfortheemergingbiofuelsand

biochemicals markets

MarketDrivers Biofuels:climatechangeregulationsand energysecurity Biochemicals:consumerdemandforgreen,sustainable

materials,andadvantagedeconomicsfromlowcostsugar

JMPosition: >1mtpaofproductsalreadymanufacturedusingJMprocesses Involvedincollaborationswithanumberofkeybioprocess

technologydevelopers Catalyst Processtechnologyscaleupandcommercialisation

ConversionandUpgrade

CellulosePalmOil

Sugar/Starch

Fermentation

CatalyticProcesses

47

ProcessTechnologiesinChina

HenryLiuCountryDirector,China

PTinChina Overview FirstofficeinChinain2001 ~120employeesandgrowing AllareasofPTnowoperatinginChina ForecasteddoubledigitCAGRovernexttenyears

OfficesinBeijingandShanghai JVinQingdaoforcatalystmanufacturing 58licences grantedinChina

22 forcoaltochemicalswithleadingshareofsector

Syngas48%

Petrochemicals42%

OilandGas

Chemicals

PTSalestoChina(2012/13119m)

EmployeesDoubledinThreeYears

0

25

50

75

100

125

150

2010/11 2013/14

Oleo/Bio5%

OilandGas5%

49

ChineseMarketDrivers

Economicgrowth GDP~7%overnextfewyears Chemicaldemandgrowthnormally2xGDP

Energysecurity Chinaimports>50%ofitsoildemand Governmentlookingtoreduceimportdeficit

Environmentprotection Airpollutionrecognisedasamajorissueincities

Feedstockavailability Richcoalresources

KeyDrivers

Chinesegovernmentencouragingcoaltochemicals SupportedintheChinaChemical12th FiveYearPlan Provencompetitivechemicalroute

Chinesegovernmentplantoreducedirectuseofcoalforpowergeneration

PolicyandRegulation

20

59

136

10.4

40

104

2000 2006 2012

ChemicalImport

ChemicalExport

ChinaChemicalTradeBalance(bn)

Source:ChinaPetroleumandChemicalIndustryFederation

50

0.21.9 2.9

2011 2015E 2020E

CoaltoEthyleneGlycol

Capacity(milliontonnes)

+35%

38

60

79

2011 2015E 2020E

CoaltoMethanol


+9%

CoaltoChemicalsCoalisanappealingandavailablechemicalfeedstock

51

0.65.1

15

2011 2015E 2020E

CoaltoOlefins


+46%

Asaresultofmultipleinvestmentsandoperationalimprovement,technologicalmaturityofemergingcoaltochemicalsisadvancingfast

Source:ChinaPetroleumandChemicalAssociationandJMestimates

CoaltoSNG

+39%

4 22.6

80

2011 2015E 2020E

Capacity(billionm3)

Chinahas13%oftheglobalcoalreserves

CoaltoChemicalsFlowsheetCoaltochemicalsisgrowing1520%CAGR

52

Source:CCBInternational2012,CCTD,SXCoal,A.T.Kearneyanalysis

ChinaCoalConsumptionbySector(mtpa)

2011 2015E

17%

15%

5%9%

~57%

~16%

~14%

~7%

~6%

3,778

4,640

Others

Chemicals

Cement

Steel

PowerGeneration

54%

1520%

23%

34%

67%

CAGR~5.3%

3%

FilmsandCables

Ammonia

SNG

Hydrogen

GTL

Methanol

VCM

Fertilisers

CleanFuels

Formaldehyde

OxoAlcohols

MTO

Adhesives

PE,PP

PackagingJMcoveredtechnology/products/service

MEG

Coal

SubstituteNaturalGasMarketDrivers Energysecurityandurbanairquality CoaltogasplaydrivenbyChina:Gasdemandwillbemetbymixofdomestic,imported,shale,LNGandSNG

SNGMarketGrowth SNGmarket(2020): ~80bnNm3 p.a. Market:~20bnin2020at7/mmbtu 1plantoperating 9projectswithfullapproval(~23bnNm3p.a.) 13projectswithpreliminaryapproval(~54bnNm3 p.a.)

GasforEnergy

GasifiedCoal SNG

53

JMProjects Bn Nm3p.a.

Datang (startedup) 1.33

Datang Fuxin1 1.33

Xinwen yili 2

Datang Keshiketeng 2 1.33

Datang Fuxin2 1.33

Datang Keshiketeng 3 1.33

Suxin 1.33

SubstituteNaturalGas

MarketSize JMshareofsector: #1inSNGsector Newplants(licences andfirstcatalystfill):300m400mbetweennowand2020

Replacementcatalystmarket: ~50m100mp.a.whenplantsarerunning

Highlydependentonhowtheplantswillberun Verylargecatalystvolumesrequired

Competitors Haldor Topse Lurgi Local

GasforEnergy

GasifiedCoal SNG

JMOffer Licensedtechnology,engineeringservicesandcatalystsupply 7plantslicensedbyJMDavy firstplantstartedup

summer2012 Totallicence feesandcatalysts~50minnexttwoyears

54

TheJMAdvantageinChina

EstablishedstrongrelationshipswithcoaltochemicalscustomersinChina

Leading positionsinkeytechnologies

CustomersinChinawantthebesttechnology

Customers JMDavyisastrongbrandintheindustry

Provenprocesstechnologies LeadingcatalystsandprocesstechnologiesdesignedtomeetChinesemarketneeds

TechnologiesandProducts ContinuouslyaddingbestinclasspeopleinourofficesinChina

Buildingtechnicalcapabilities Planningaheadformanufacturingcapacityrequirements

ResourcesandCapabilities

+FocusedondefensibleandprofitablelongtermgrowthinChina

55

Strongpositioninourtargetmarkets

x

PTandtheChemicalsMarket KeyTakeaways

ExpandingportfoliothroughR&D

investmentandthroughleveragingcatalystandprocesstechnologyexpertise

Verygoodvisibilityoncapex tosupport

growth

Attractiveopportunitiesinnewfeedstocks

(shale,coaltochemicals)

+

56

PTandtheOilandGasMarket

DonRocheDirector,OilandGas

PTinOilandGas

Threemainsectors Opportunitiesforgrowth Keystrengths

29%

21%

50%

DiagnosticServices

Refineries

GasProcessing

OilandGasSales

Oil

12%Gas

23%

Refineries DiagnosticServices

57% 6% 10+%

H

RefineryAdditives

Hydrogen SubseaInstrumentation

Advancedmaterialsexpertise Abilitytointegratecatalyst,processandprovideservices

Matchingcatalysttochangingplantconditions

Uniquemeasurementandchemistrycapability

RefineriesGasProcessingDiagnosticServices

58

PTsOilandGasMarketsJMhasstrongpositionsintargetedhighvaluemarkets

OpportunitiestoapplyPTsskillsincurrentandadditionalareasofoilandgasmarket: Byinnovationandleveragingcorecompetencesinadvancedmaterials Bypartneringandacquisition

RefineriesHydrogen

Leadingpositioninreforming,shiftandpurificationcatalystsforhydrogenmanufacture

GasProcessing

Strongpositioninmarketforremovalofsulphurandmercuryfromgasstreamstoverylowlevels

DiagnosticServices

Highvalue,specialistofferingsacrossthewholeoilandgasvaluechain

RefineriesAdditives

UniqueproductofferinginFCCadditivesanddosingsystemsforimprovingefficiencyandenvironmentalperformanceofFCCunits

59

Refineries HydrogenCatalystsJMOffer Hydrogencatalyststoindustrialgasproducers,refinersand

chemicalplants

MarketDrivers Hydrogendemanddrivenbyincreaseddieselproduction,

sulphurtreatmentinfuelsandhydrogenforchemicals

HydrogenCatalystMarket JMshareofsector:#1 Marketgrowth: 6%p.a.

TypicalPlant Firstfillandreplacementcatalystcharge:12mevery45years

Competitors Clariant Haldor Topse

KeepingAheadofCompetitors CatalystR&Dandprocessimprovementstoreduce

operatingcostsandcapex forourcustomers Partneringwithindustrialgassupplierstoaccess

outsourcemarket

RefineryHydrogen/

IndustrialGas

ChemicalsPlants

HydrogenPlant

NaturalGasReforming

OffGases,Liquid(Naphtha,LPG)Reforming

ImagecourtesyofAirProductsandChemicalsInc.

60

Refineries FCCAdditivesJMOffer FluidisedbedcatalystadditiveswithloadingequipmentforFCC

applications Providesenvironmentalcontrolandperformanceproducts

MarketDrivers Gasolinedemandinemergingmarkets EnvironmentalregulationsonSOx andNOx andtheneed

forchemicalsfromFCCunits

RefineryAdditivesMarket JMshareofsector:

Environmentaladditivemarket(#1) Performanceadditivemarket(#3)

Marketgrowth: 57%

TypicalSale Annualcatalystadditivesale/plant:~0.5m

Competitors Grace Albemarle BASF

KeepingAheadofCompetitors SuperiorR&Dwithadvancedmaterialscombinedwith

processtechnologyimprovements

OpportunitiesforAcceleratedGrowth Applyadvancedmaterialsexpertisetodevelophigher

valueproducts Leveragetechnologystrengthstoaccessnewmarketsacross

wholeofPT

Olefins

Diesel

GasolineFluidCatalyticCracking(FCC)

Hydroprocessing

Oil RefineryDistillation

61

Catalystmanufacturingexcellence

+ ++BuildingCapabilitiesAcrossPT

Oil&Gas Chemicals

Buildingcapabilities

Catalystresearchandscaleup

Zeolitecatalysts

Fluidisedbedcatalystandprocessskills

Basemetalandpgm catalysts

Fixedbedcatalystandprocessskills

62

AcceleratingGrowth

OilandGasdrivers Technology/competences

Acceleratedgrowth

Petrochemicaldemandchangesimpactrefining

Feedstockchangesinrefiningandchemicals

Shalegasandoil

Emission,energy andproductregulations

Catalystdevelopmentandmanufacturing

AdvancedmaterialscienceR&D

Processtechnologydevelopmentandimprovements

Measurementandanalyticalskills

Organicgrowth,targeted

acquisitions

63

Leadingpositionsintargetmarkets

acrossthevaluechain

x

PTandtheOilandGasMarket KeyTakeaways

StrongtechnologyskillssupportedbyR&Dinvestment

BuildingsynergiesacrossPTto

strengthenourcapabilities

+ ++Attractiveopportunities

forgrowthbothorganicallyandby

acquisition

64

Summary

GeoffOttermanDivisionDirector,ProcessTechnologies

Stablemargins

KeyTakeaways

Strongpositioninallourmarkets

Abletoleveragebothcatalystandprocess

technology

Technologyandknowhowinvestment

Globaldriverssupportincreasingdemandfor

PTsofferings

Doubledigitgrowthonaveragefortheforeseeablefuture

66

ClosingRemarks


Summary

68

Aworldleadingtechnologycompany

Successfoundedoncontinuedinvestmentin

R&Dandproductdevelopment

Differentiationthroughtechnology

Provenstrategyinplacetodevelopnew

businessareas

Wellpositionedingrowthmarkets

Deliversvalue

JMExecutiveBoard


RobertMacLeodGroupFinanceDirector

LarryPentzExecutiveDirector

JohnWalkerExecutiveDirector

EmissionControlTechnologies

70

GeoffOttermanDivisionDirector

ProcessTechnologies

IainMartinTechnologyDirectorProcessTechnologies

HenryLiuCountryDirector

China

DonRocheDirector

Oil andGas

PresentationTeam

71

OtherSeniorManagement

PaulArmitageManagingDirector

Syngas

DrJaneButcherGeneralManagerChemicalCatalysts

DrSallyJonesDirector

InvestorRelations

KatharineBurrowInvestorRelationsAnalyst

SimonSlatteryDivisionFinanceDirector

MohammedKhanGeneralManager

Purification

AndyHurstManagingDirector

Tracerco

AntoineBordetManagingDirector

JohnsonMattheyDavyTechnologies

GraemeMcGregorManagingDirector

Refineries

JoeStevensonBusinessDevelopmentDirector

DrAndrewHeaversBusinessDevelopmentDirector

72

Glossary

2PH 2PropylheptanolAPIgravity Measureofhowheavy/lightapetroleum

liquidiscomparedtowaterbbl Oilbarrel,aunitofvolumeC2H4 EthyleneCAGR CompoundannualgrowthrateDMO DimethyloxalateFCC FluidcatalyticcrackingFT FischerTropschGTL GastoLiquidsIP IntellectualpropertyJM JohnsonMattheyJV Jointventurektpa KilotonnesperannumLNG LiquefiednaturalgasLPG LiquefiedpetroleumgasMEG MonoethyleneglycolmmBtu MillionBritishThermalUnitsMTO Methanoltoolefinsmtpa Milliontonnesperannum

NG NaturalgasNGL NaturalgasliquidsNm3 Normalcubicmetre(volumeofgasunder

standardconditionsof0oCand1atmpressureNOx Nitrogenoxidesp.a. PerannumPE PolyethylenePET PolyethyleneterephthalatePgm PlatinumgroupmetalPP PolypropylenePT ProcessTechnologiesPTA Purifiedterephthalic acidPVC PolyvinylchlorideR&D ResearchanddevelopmentROCE ReturnoncapitalemployedROIC ReturnoninvestedcapitalSNG SubstitutenaturalgasSOx OxidesofsulphurSyngas AmixtureofhydrogenandcarbonoxidesVCM Vinylchloridemonomer

73

serious science applied to catalyst design

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