w. r. grace & co

1

November 12, 2012

COMPANY OVERVIEWPresented by Larry MarchmanGlobal Director of Credit

W. R. Grace & Co.

2

27%

5%7%

19%10%

32%

31%

27%

42%

Grace Fast Facts (NYSE: GRA)

2011 sales of $3.2 billion

True specialty chemicals business High value, high margin product portfolio

Strong franchises in large, global markets

Global leadership positions Number 1 or 2 in over 75% of 2011 sales

Catalysts Technologies#1 in FCC catalysts#1 in resid hydroprocessing catalysts#1 in independent polyethylene catalysts#2 in independent polypropylene catalysts

Materials Technologies#1 in specialty silica gel#1 in can sealants

Construction Products#1 in cement additives#2 in concrete admixtures

Operations in over 40 countries

2011 Grace Sales

2011 Grace Sales by Region

$3.2 billion

$3.2 billion

Catalysts Technologies

Construction Products

Materials Technologies

North America

Western Europe

Eastern Europe

Middle East & Africa

Asia Pacific

Latin America

3

Global Headquarters Columbia, MD, USA

22

2

5

2

5

2

44

2

Grace Around the World

Recent Investments Hydroprocessing catalyst capacity in the Middle East with Kuwait Catalyst Company Polypropylene catalyst capacity in Europe and U.S. for global supply Silica capacity in Brazil and Malaysia Specialty construction chemicals investments in Asia, Latin America, and the Middle East Specialty building materials acquisitions in China and Europe

Global headquartersKey officesRegional headquarters93 manufacturing sites44 R&D/Tech Service sites

44 © 2012 W.R. Grace & Co.

Summary Profile

CatalystsTechnologies

$1.3 billion sales (2011) Addressable Sector Size:

$16B, growing at 5-6% Industries

Energy and Refining Plastics, Petro- and

Biochemicals

Product Lines Refining Technologies Advanced Refining

Technologies (ART) JV Specialty Catalysts &

Process Technologies

5 © 2012 W. R. Grace & Co.

Summary Profile

MaterialsTechnologies

$0.9 billion sales (2011) Addressable Sector Size:

$6B, growing at 4-6% Industries

Industrial Consumer Coatings Pharmaceutical Packaging

Product Lines Engineered Materials Discovery Sciences Darex Packaging

6

Key ApplicationsMATERIALS TECHNOLOGIES

We provide enabling technologies for many of the consumer and industrial products you use every day – invisible, but you would see, feel and taste the difference without them

Garage

Tire [reinforcer]

Golf club[casting binder]

Shoes [rubber additives]

Toothpaste [abrasive]

Cosmetics [thickener]

Aerosol can [coating]

Pharmaceutical [drug formulation]

WashroomKitchen

Spices[free-flow]

Furniture[coating]

Appliances[matting agent]

Vegetable oil [purification]

Beer[clarification]

Soda can [can coating and sealant]

Window [desiccant]

Photos[digital printing]

Silica gel Packaging Precipitated silica Colloidal silica Molecular sieves

Water bottle[closure sealant]

Silica excipients

7 © 2012 W. R. Grace & Co.

Summary Profile

Construction Products

$1.0 billion sales (2011) Sector Size: $8T,

growing at 5-6% Industry Segments

Commercial Industrial Residential

Product Lines Specialty Construction Chemicals Specialty Building Materials

8

ICTF Conference

Country Approved Maximum Terms – LATIN AMERICA

Country Risk Net Approved Terms (DAYS)

Argentina High Net 45

Barbados Low Net 30

Bolivia High Net 30

Brazil Low Net 60

Chile Low Net 30

Colombia Low Net 60

Costa Rica Low Net 30

Domnican Republic Moderate Net 60

Ecuador High Net 60

Guatemala High Net 45

Honduras High Net 30

Mexico Low Net 60

Nicaragua High 0

Panama Moderate Net 45

Paraguay Moderate Net 30

Peru Moderate Net 60

Trinidad, Tobago Low Net 30

Uruguay Low Net 30

Venezuela High Net 30

9

ICTF Conference

• DSO YTD Average 82 Days

• Best Possible DSO 45 Days

• Average Days Delinquent 37 Days

• Past Dues 12%

Argentina

Net 30 60 Days BOL

Net 45 Net 60 Net 20 Net 90 Cash with Order

Net 120 Net 150%

5%

10%

15%

20%

25%

30%28%

17%15% 14%

10%

6% 5%3% 3%

% of Sales by Payment Term

Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-1265

70

75

80

85

90

72

78

7576

81

7779

82

8683 83 83

Argentina DSO Trending

0%

5%

10%

15%

20%

25%

30%

7%

23%

9% 8%10%

8%6%

11%

15%

18%

10%

25%Argentina Past Due Trending

http://en.wikipedia.org/w/index.php?title=File:Flag_of_Argentina.svg&page=1

10

ICTF Conference

• DSO average 75 Days



• Past Dues 11%

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-

12

Apr-12

May

-12

Jun-12

Jul-1

2

Aug-12

Sep-12

0102030405060708090

100

6778 74

8593

82

6470

5768

75

90

Chile DSO Trending

Chile

Net 60 Net 30 Net 75-Draft

Net 75 Net 60-Draft

Net 80 Net 90-Draft

80% 30, 20% 45


0%

10%

20%

30%

40%

50%

60%

52%

18%

6% 6% 6% 4% 3% 2% 1% 1% 1%


Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-

12

Apr-12

May

-12

Jun-12

Jul-1

2

Aug-12

Sep-12

0%

5%

10%

15%

20%

25%

30%

10%

26%

13% 14% 12%

5%

10%

5%

10%

14%

19%

13%

Chile Past Due Trending

11

ICTF Conference

• DSO average 56 Days



• Past Dues 10%Net 30 Net 60 Net 30 BOL Net 45 Net 90 Net 7 Net 60 BOL Cash in Advance

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%46%

24%

13%

8% 6%2% 1% 1%


Colombia


10

20

30

40

50

60

70

8073

56

38

53

6460

5158

51 51 52

63

Colombia DSO Trending

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-

12

Apr-12

May

-12

Jun-12

Jul-1

2

Aug-12

Sep-12

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

7%6%

10% 10%

13%

6%

12%

18%

3%

10%

16%

10%

Colombia Past Due Trending

http://en.wikipedia.org/w/index.php?title=File:Flag_of_Colombia.svg&page=1

12

ICTF Conference

• DSO Average 67 Days



• Past Dues Average 16%

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-

12

Apr-12

May

-12

Jun-12

Jul-1

2

Aug-12

Sep-12

58

60

62

64

66

68

70

72

74

70

67

63

6768

66

7170

63

66

70

64

Mexico DSO Trending

Mexico

Net 60 Net 30 Net 45 Net 90 Net 120 Cash in Advance0%

10%

20%

30%

40%

50%

60%54%

31%

9%

3% 2% 1%


Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12May-12 Jun-12 Jul-12 Aug-12 Sep-120%

5%

10%

15%

20%

25%22%

21% 21% 21%

18%

13%

20%18%

15%14%

10%

16%

Mexico Past Due Trending

http://en.wikipedia.org/w/index.php?title=File:Flag_of_Mexico.svg&page=1

13

ICTF Conference


• Best Possible DSO Average 58 Days



Peru% of Sales by Payment Term

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-

12

Apr-12

May

-12

Jun-12

Jul-1

2

Aug-12

Sep-12

0

20

40

60

80

100

120

9079 82

9484 89 94 94

10691

7986

Peru DSO Trending

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-

12

Apr-12

May

-12

Jun-12

Jul-1

2

Aug-12

Sep-12

0%

2%

4%

6%

8%

10%

12%

14%

16%

13%

9%

3%

11%

7% 7%

15%

1%

4%

12%

2%

9%

Peru Past Due Trending


Net 75 Net 60-Draft

Net 80 Net 90-Draft

80% 30, 20% 45


0%

10%

20%

30%

40%

50%

60%

52%

18%

6% 6% 6% 4% 3% 2% 1% 1% 1%

http://www.worldatlas.com/webimage/flags/countrys/zzzflags/pelarge.gif

14

ICTF Conference





Venezuela% of Sales by Payment Term

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-

12

Apr-12

May

-12

Jun-12

Jul-1

2

Aug-12

Sep-12

0102030405060708090

100

5161

7283

8978

6860 61 60

5161

Venezuela DSO Trending

Oct-11

Nov-11

Dec-11Jan

-12

Feb-12

Mar-

12

Apr-12

May

-12

Jun-12

Jul-1

2

Aug-12

Sep-12

0%

10%

20%

30%

40%

50%

60%

70%

80%

23%30%

59%54%

68%62%

45%

20%13%

29%

12% 15%

Venezuela Past Due Trending

Net 30 net 60 Cash with Order

Net 90 Net 15 60 Days BOL Net 450%

10%

20%

30%

40%

50%

60%

70%

80%

90%

78%

11%5% 3% 2% 1% 1%

15

Latin America DSOICTF Conference

Dutch Antille

s

Argentina

Aruba

Barbad

os

Bolivia

Chile

Colombia

Costa Rica

Dominican Rep.

Ecuad

or

Guadeloupe

Guatemala

HondurasHaiti

Cayman Isl

ands

Marti

nique

Mexic

o

Nicarag

ua

Panama

Peru

Paraguay

El Sa

lvador

Trinidad,Tobag

o

Uruguay

Venezuela

0

40

80

120

160

30

8246 30

156

7556 44

159

8961

136

5491

43

159

67 79112

90 92

2962

11066

DSO Latin America 2012 YTD Average

Dutch Antille

s

Argentina

Aruba

Barbad

os

Bolivia

Chile

Colombia

Costa Rica

Dominican Rep.

Ecuad

or

Guadeloupe

Guatemala

Honduras Haiti

Cayman Isl

ands

Marti

nique

Mexic

o

Nicarag

ua

Panam

aPeru

Paraguay

El Sa

lvador

Trinidad

,Tobag

o

Urugu

ay

Venezuela

0

20

40

60

3045

3044

27

5442 39

59 5950 56 59

3043

22

51

29 34

58

279

59

30 33

Best Possible DSO

Dutch Antilles

Argentina

Aruba

Barbad

os

Bolivia

Chile

Colombia

Costa Rica

Dominican Rep.

Ecuador

Guadeloupe

Guatemala

Honduras Haiti

Cayman

Islan

ds

Marti

nique

Mexic

o

Nicarag

ua

Panam

aPeru

Paragu

ay

El Sa

lvador

Trinidad

,Tobag

o

Uruguay

Venezuela-40

0

4080

120160

037

16

-15

130

21 14 5

100

30 11

81

-4

61

0

137

1650

7832

6519 3

8032

Average Days Delinquent

16

BRICS – Brazil, Russia, India, China and South Africa

ICTF Conference

17

BrazilICTF Conference


36

37

38

39

40

41

42

43

40

3839

38

4041 40

4341

40

41 41

Brazil DSO Trending

Net 28 Net 30 Net 60 EOM

Net 35 Net 45 Net 45 BOL

40% 30 days, 30%

45days 30% to 60 days

Net 40 Net 21 Net 10 Cash in Advance

Net 7 0%

5%

10%

15%

20%

25%

30%

35%

40%37%

15%11%

9%7% 6%

2% 2% 2% 2% 2% 1%



• Best Possible DSO Days

• Average Days Delinquent Days

• Past Dues 3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6% 5%

2% 2%2%

1%

4%

3%

4%4%

4%

-1%

2%

Brazil Past Due Trending

18

Russia


10

20

30

40

50

6054 54

43

52

2935

4944

4953

4952

Russian Federation DSO Trending

-10%

-5%

0%

5%

10%

15%

20%

25%

5%8%

4%

21%

0%

-2%-1% 0%

1%

-5%

-1%

-4%

Russian Federation Past Due Trending

Net 45 Net 60 End of Month

Net 90 Net 30 30 Days Receipt of

Goods

5% Disc Advance Payment

Cash in Advance

30 Days EOM

30 Days BOL

Nt 15 3% Disc Advance Payment

0%

5%

10%

15%

20%

25%

30%

35%

40% 37%

19%17%

10%

5% 4% 3% 2% 1% 1% 1%




• Average Days Delinquent -3 Days


19

India






Cash Aga

nst Docu

ments

Net 45 Day

s

D/A 60 Day

s

Net 60 Day

s

D/A 30 Day

s

D/A 60 day

s EOM

Net 90

D/P at

Sight

Letter o

f Cre

dit

L/C 45 Days

D/A 90 Day

s

Cash Aga

inst Docs

L/C 90 Day

s

Cash in

Advance

Net 30

L/C 60 Days

L/C 45 Days

Bill of L

ading

30 Days B

OL date

0%

10%

20%

30%

40%

50%

60%52%

10%5% 5% 4% 3% 3% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1%


10

20

30

40

50

60

70

80

90

65 6864 67

79

6168 71 74 73 70

78

India DSO Trending

Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-120%

2%

4%

6%

8%

10%

12%

6%

10%

3%

5% 5%

4%

7% 7%5%

3%4%

8%

India Past Due Trending

http://en.wikipedia.org/w/index.php?title=File:Flag_of_India.svg&page=1

20

ChinaICTF Conference




• Past Dues 10%

Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12May-12 Jun-12 Jul-12 Aug-12 Sep-120

102030405060708090

100

77 80 7783 86

94 93 88 89 88 87 88

China DSO Trending

Net 60

Cash in

Advance

Net 30

31 Days E

OMNet 9

0

Letter o

f Cre

dit

Net 45

L/C 30 Day

s, BOL D

ate

5th of 2

nd Next M

onth

Net 15

Net 5

D/A 30 days

L/C 60 Day

s, BOL Date

25th of N

ext M

onth

L/C 60 day

s

Net 60 EOM

30% Advance

, Net 3

00%

5%

10%

15%

20%

25%

30%

35% 33%

15% 14%

8% 8%5%

3% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1%


Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12May-12 Jun-12 Jul-12 Aug-12 Sep-12

-10%

-5%

0%

5%

10%

15%

20%

25%

2%

-4%

4%

19%

14%

20%

8% 7%

3%6% 7%

5%

China Past Due Trending

21

South Africa


• Best Possible DSO Average Days

• Average Days Delinquent Days



Oct-11 Nov-11 Dec-11 Jan-12 Feb-12Mar-12 Apr-12May-12 Jun-12 Jul-12 Aug-12 Sep-120

10

20

30

40

50

60 54

4347

52 53

45 4843

46 45

5550

South Africa DSO Trending

Net 30 Net 45 31 Days EOM

30 Days BOL

Net 60 60 Days BOL

Net 75 90 Days BOL

Net 60 EOM

2% 10 Net 45

0%

5%

10%

15%

20%

25%

30% 28%

23%21% 20%

3%1% 1% 1% 1% 1%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40% 36%

3% 5%

17%

9%

-6%

5%8%

3%7%

27%

6%

South Africa Past Due Trending

http://en.wikipedia.org/w/index.php?title=File:Flag_of_South_Africa.svg&page=1

22

Larry MarchmanGlobal Director of CreditW. R. Grace & Co.

Lawrence Marchman is the Global Director of Credit for W. R. Grace & Co., a $3.2 billion global leader in specialty chemical manufacturing. Mr. Marchman concentrates on optimizing the turnover of worldwide trade receivables, and formulating and managing the company’s global credit policy while continually driving process improvements in the order-to-cash cycle.

His accomplishments include working capital optimization and generating efficiencies through compliance and risk management. He has led Six Sigma Revenue Chain workout sessions in Europe, Asia and South America, as well as the United States.

Prior to Grace, Mr. Marchman held senior credit management positions with large manufacturing companies, including Becton Dickinson and International Paper Company.

w. r. grace & co

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