Understanding the value chains of the Paint & …

1 Understanding the value chains of the Paint &. Coatings industry in CEE. - A chemical distributor's perspective CEPE Plenary Session Martin Rimmer: European Marketing Manager Coatings & Construction 26th September 2013. DISCLAIMER. This presentation (the Presentation ) contains confidential information and is being given on a confidential basis. It contains only summary information and does not purport to be comprehensive and is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation. Nothing in the Presentation shall form the basis of any contract, representation, or undertaking, express or implied. The Company does not make any representation that this Presentation is sufficient for the recipient's assessment process. This Presentation is confidential and may not be copied or used in whole or in part for any purpose or furnished or disclosed to the press / media.

2 The unauthorized disclosure of this Presentation to the press / media or any information contained in or relating to it could damage the interests of the Company and have serious consequences. brenntag SPECIALTIES - Title of presentation 03/10/2013 2. AGENDA. Introduction value chain Position brenntag The Leading Chemical Distributor brenntag in CEE. brenntag SPECIALTIES - Title of presentation 03/10/2013 3. AGENDA. Introduction value chain Position brenntag The Leading Chemical Distributor brenntag in CEE. brenntag SPECIALTIES - Title of presentation 03/10/2013 4. brenntag . Introduction Understanding the value chains of the Paint & Coatings industry in CEE. - A chemical distributor's perspective .. What is the role of a distributor in today's market and in the future? We intend to explore this role and explain our offering to the Coatings Industry brenntag SPECIALTIES - Title of presentation 03/10/2013 5.

3 AGENDA. Introduction value chain Position brenntag The Leading Chemical Distributor brenntag in CEE. brenntag SPECIALTIES - Title of presentation 03/10/2013 6. brenntag 'S STRATEGIC PARTNERSHIP APPROACH. providing tailor-made solutions within the value chain Supplier Coatings Customer Relationships based on trust, creating value Benefits for supplier Benefits for Coatings Customers Growth potential based on full-line product Reduced Raw Material spend portfolio and broad market access Strengthening of core competences Better cost efficiency Working capital optimization Reduced complexity and increased focus Complexity reduction (Reduced cost and time of supplier management). Higher customer satisfaction Improved HSE protection Quick response to market changes Easier compliance reporting Agreed business reporting Application support brenntag SPECIALTIES - Title of presentation 03/10/2013 7.

4 AGENDA. Introduction value chain Position brenntag The Leading Chemical Distributor brenntag in CEE. brenntag SPECIALTIES - Title of presentation 03/10/2013 8. FACTS AND FIGURES. brenntag is the leading global chemical distributor Asia RoW. Pacific 5% Sales of in 2012. 7%. Latin America Europe 13,000 employees, thereof more than 4,800. 9% 47% dedicated local sales and marketing employees Full-line portfolio of over 10,000 products to more than 170,000 customers globally Network of 450+ locations across more than 70 countries worldwide million usually less-than-truckload deliveries annually with average value of North 2,000. America 32%. brenntag SPECIALTIES - Title of presentation 03/10/2013 9. value -ADDED SERVICES. brenntag is at your service . Marketing & Sales Technical Services Mixing & Blending Supply chain Supply chain Management Supply chain Single Sourcing Management Online Services Excellence Concern for Commitment to our environment: Formulation Advice Safe Operations Responsible Care brenntag SPECIALTIES - Title of presentation 03/10/2013 10.

5 TWO CHANNELS TO MARKET. Full-line product portfolio & dedicated industry approach Industrial Specialty Chemicals Major industries Chemicals Polymers Coatings Electronics Adhesives Water Treatment Agriculture Construction Chem. Oil & Gas Pulp & Paper Food & Nutrition Chemical Synthesis Printing & Publishing Cleaning Metal Working Textile & Leather Personal Care Pharma Animal Nutrition brenntag SPECIALTIES - Title of presentation 03/10/2013 11. COMPLEMENTARY MARKET APPROACH. Industrial Chemicals Specialty Chemicals Sourcing Alternative Long-term partnerships/. Exclusivity Drivers Product/ logistics Application knowledge/ product performance/ marketing Sales force Commercial Techno-commercial Information Market Intense knowledge exchange Prices Cyclical Less cyclical Strategy Product driven Industry focused brenntag SPECIALTIES - Title of presentation 03/10/2013 12.

6 brenntag `S HSE PRINCIPLES. brenntag is clearly committed to meet HSE standards Health, safety and environmental protection, are all paramount for brenntag and for preserving natural resources for the long-term. If it cannot be done safely, brenntag will not undertake it. In recognition of the Responsible Care / Responsible Distribution program of the International Council of Chemical Trade Associations, brenntag affirms its commitment to sustainable development and to the eight guiding principles outlined in this worldwide initiative. As a global company with more than 300 locations worldwide, brenntag is conscious of its obligation towards the health and safety of its employees and the environment. These principles are enforced by policies which ensure compliance to the highest standards of safety, product stewardship, care for the environment and quality.

7 brenntag SPECIALTIES - Title of presentation 03/10/2013 13. FACTS AND FIGURES. brenntag is the leading European chemical distributor Switzerland Iberia CEE. 5%. 6% 22%. Nordic 6%. Italy Specialty 9% Chemicals 40%. Industrial Chemicals 60%. France 10%. Germany 17%. United Benelux Kingdom 12% 13%. brenntag Europe sales 2012: billion brenntag SPECIALTIES - Title of presentation 03/10/2013 14. brenntag EUROPE ORGANISATION. Georg M ller Steven E. Holland CFO brenntag Group CEO brenntag Group Harry van Baarlen Karsten Beckmann CEO brenntag Europe COO brenntag Europe Managing Directors David O'Connell Jan-Joop Alberts Gordon Hay T. Chatt Dieter W hrle Marketing Director European countries Marketing Director Operations Director Head EKAT/. CFO brenntag Europe Industrial Chemicals and regions Specialties Europe Europe Blending Solutions Europe F. de La F. Haven C.

8 Deslypere H. van Megen D. O'Connell Fouchardi re European Market Global Accounts /. HSE Chlor Alkali/Solvents Controlling Development Director BBS. H. Willner M. Rimmer C. Korr P. Janoczek Finance Operations Coatings & J. Nagel Operations Sourcing Construction Key Accounts & Logistic T. Carstensen M. Wilkop J. Aust A. Pattyn *. J. Eisenbart Pharma & PC MDA General Chemicals IT Key Accounts P. Brands Food & Nutrition M. Raduner A. Pattyn *. Air 1 Business S. Bolter *. REACH & European Key Accounts R. Neumann S. Schnaufert * Projects Analyst European Product & Polymers P. Honor *. Marketing Services Procurement T. Heinrich *. WT & Cleaning U. Schieren Business P. Verboeket * Development Animal Nutrition T. van Elsen *. Oil & Gas * Contracted to local countries brenntag SPECIALTIES - Title of presentation 03/10/2013 15. DRIVING SUCCESS WITH INDUSTRY EXPERTISE.

9 Joint development and implementation of marketing concepts Extension of Regular and detailed supplier s strategy into market reporting the distribution sector Electronic linkage Shared Values- Shared Success Long term partnership with knowledge exchange Flexible logistics and coordination Dedicated teams focused on specific industries Techno-Commercial (engineers and specialists). brenntag SPECIALTIES - Title of presentation 03/10/2013 16. WE PROMOTE QUALITY BRANDS. We promote products according to supplier's strategy We recognize the value of suppliers' investment in branding We are eager to develop strategies with suppliers We have a strong track record in executing branding strategies We encourage a collaborative European culture whereby our market dedicated experts work in close partnership with our customers and suppliers to generate sustainable profitable growth.

10 brenntag SPECIALTIES - Title of presentation 03/10/2013 17. SPECIALTY INDUSTRY SEGMENTS. Coatings at the centre of what we do FOOD & NUTRITION PHARMA PERSONAL CARE. COATINGS &. ANIMAL NUTRITION POLYMERS. CONSTRUCTION. CLEANING WATER TREATMENT OIL & GAS. brenntag SPECIALTIES - Title of presentation 03/10/2013 18. brenntag SPECIALTIES EUROPE: COATINGS & CONSTRUCTION. brenntag Coatings & Construction Europe offers you unparalleled knowledge, service and solutions in the adhesives, coatings and construction industries. brenntag Coatings & Construction Europe develops and provides new ideas and perspectives to create solutions by recommending the right products and guidance. brenntag Coatings & Construction Europe offers a comprehensive package of services, alongside access to specialty products from world- class manufacturers. brenntag Coatings & Construction Europe - Building a brighter World brenntag SPECIALTIES - Title of presentation 03/10/2013 19.