Materials & Effects
Materials & Effects
Materials & Effects
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<strong>Materials</strong> & <strong>Effects</strong><br />
Paul Hulme –<br />
Division President
Forward Looking Statements<br />
This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of<br />
1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements<br />
concerning our plans, objectives, goals, strategies, future events, future revenue or performance, capital<br />
expenditures, financing needs, plans or intentions relating to acquisitions, business trends and other information that<br />
is not historical information. When used in this presentation, the words “estimates,” “expects,” “anticipates,”<br />
“projects,” “plans,” “intends,” “believes,” “forecasts,” or future or conditional verbs, such as “will,” “should,” “could” or<br />
“may,” and variations of such words or similar expressions are intended to identify forward-looking statements. All<br />
forward-looking statements, including, without limitation, management’s examination of historical operating trends<br />
and data, are based upon our current expectations and various assumptions. Our expectations, beliefs and<br />
projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be<br />
no assurance that management’s expectations, beliefs and projections will be achieved.<br />
There are a number of risks and uncertainties that could cause our actual results to differ materially from the<br />
forward-looking statements contained in this presentation. Such risks, uncertainties and other important factors<br />
include, among others: future global economic conditions, changes in raw material and energy prices, access to<br />
capital markets, industry production capacity and operating rates, the supply demand balance for our products and<br />
that of competing products, pricing pressures, technological developments, changes in government regulations,<br />
geopolitical events and other risk factors as discussed in our most recently filed Form 10-K and Forms 10-Q.<br />
All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date made and<br />
are expressly qualified in their entirety by the cautionary statements included in this presentation. We undertake no<br />
obligation to update or revise forward-looking statements which may be made to reflect events or circumstances that<br />
arise after the date made or to reflect the occurrence of unanticipated events.<br />
This presentation contains financial measures that are not in accordance with generally accepted accounting<br />
principles in the U.S. ("GAAP"), including EBITDA, adjusted EBITDA from continuing operations, adjusted EBITDA<br />
from discontinued operations, normalized EBITDA and net debt. The Company has provided reconciliations of non-<br />
GAAP financial measures to the most directly comparable GAAP financial measures in the Appendix to this<br />
presentation.<br />
APAC Customer Event 2007 2
<strong>Materials</strong> & <strong>Effects</strong><br />
Business Dimensions<br />
Markets include:<br />
� Adhesives<br />
� Aerospace<br />
� Apparel<br />
� Automotive<br />
� Coatings<br />
� Construction<br />
� Electronics<br />
� Marine<br />
� Power<br />
� Sports and Leisure<br />
� Textiles - Home and Technical<br />
� Wind Energy<br />
� Q2 2007 LTM PF: Revenue $2.3 billion<br />
� 6,500 employees<br />
� Sales in more than 90 countries<br />
� Over 7,500 products to approximately 15,000 customers<br />
APAC Customer Event 2007 3
Major <strong>Materials</strong> & <strong>Effects</strong> Sites<br />
Duxford<br />
Bergkamen<br />
Langweid<br />
East Lansing<br />
Woodlands<br />
High Point<br />
Los Angeles McIntosh<br />
Basel<br />
Pamplona<br />
Bad Saeckingen<br />
Monthey<br />
Istanbul<br />
Atoto<br />
Advanced <strong>Materials</strong><br />
Textile <strong>Effects</strong><br />
Common site<br />
Taboao da Serra<br />
Panyu<br />
Mahachai<br />
Quingdao<br />
APAC Customer Event 2007 4
Advanced <strong>Materials</strong><br />
� Global supplier of innovative solutions<br />
� $1.3 billion annual revenue in 2006<br />
� Global sales to more than 90 countries<br />
� Serving over 4,000 customers worldwide<br />
Aerospace<br />
8%<br />
Consumer<br />
Staples<br />
3%<br />
Power Energy<br />
11%<br />
Windturbines<br />
6%<br />
Sporting goods<br />
2%<br />
Electronics<br />
8%<br />
Automotive<br />
11%<br />
Marine<br />
General Industrial<br />
4%<br />
Goods<br />
19%<br />
Source : Company information, 2006<br />
Construction<br />
28%<br />
APAC Customer Event 2007 5
Our Approach to Innovation<br />
Today & Tomorrow<br />
Improvement Disruptive<br />
Short Term Mid Term Long Term<br />
Technologies<br />
Nanotechnology<br />
Printable electronics<br />
Applications<br />
2007 2008 2009 2010 2011<br />
APAC Customer Event 2007 6
Advanced <strong>Materials</strong><br />
– Supporting Your Growth in Asia Pacific
Strong Regional Presence<br />
Mumbai<br />
Chennai<br />
Kuala Lumpur<br />
Manufacturing Sites<br />
Commercial offices<br />
Shanghai<br />
Hong Kong<br />
Panyu<br />
Bangkok<br />
Beijing<br />
Singapore<br />
Jakarta<br />
Kobe<br />
Taipei<br />
Tokyo<br />
Melbourne<br />
Development labs<br />
Technical Center &<br />
Development labs<br />
APAC Customer Event 2007 8
Our Business Growth<br />
� Strong Asia-Pacific<br />
Growth Strategy<br />
� Leading Technologies<br />
� Market Growth<br />
� Strong Regional and<br />
Global Infrastructure<br />
India<br />
Panyu<br />
Japan<br />
APAC Customer Event 2007 9
Growth Opportunities for the<br />
Future<br />
� Leading Support<br />
� Increased Electricity Demand<br />
� LNG Tank Adhesive<br />
� DIY Product Range<br />
� Aerospace and Automotive<br />
APAC Customer Event 2007 10
Textile <strong>Effects</strong><br />
– Supporting Your Growth in Asia Pacific
Textile <strong>Effects</strong><br />
� No 1 Global Textile Chemical & Dye<br />
Business<br />
� $1.0 billion annual revenue in 2006<br />
� Global sales to more than 110<br />
countries<br />
� Serving over 5,500 customers<br />
worldwide<br />
Source : Company information, 2006<br />
SEA<br />
Asia Pacific<br />
15%<br />
India<br />
5%<br />
China<br />
15%<br />
Other<br />
Americas<br />
8%<br />
NAFTA<br />
16%<br />
Europe<br />
32%<br />
Africa &<br />
Middle East<br />
9%<br />
APAC Customer Event 2007 12
Changing Dynamics of Textile<br />
Industry<br />
Americas<br />
‘05–’10 Growth (3)%<br />
(1) Source: McKinsey - Rigby, Freedonia, SRI<br />
Europe<br />
‘05–’10 Growth (4)%<br />
Asia<br />
’05-’10 Growth 4%<br />
Textile manufacturing movement to<br />
lower cost, higher growth regions<br />
APAC Customer Event 2007 13
Strong Global Market Positions<br />
� TE has a top 3 market position<br />
� TE is the most comprehensive global textile chemicals/textile dye<br />
business - and the only business focused entirely on the textile industry<br />
Global<br />
Market<br />
Position<br />
1<br />
2<br />
3<br />
Textile<br />
Chemicals<br />
Textile<br />
Dyes<br />
Clariant Dystar<br />
Textile<br />
Chemicals<br />
& Textile Dyes<br />
Clariant<br />
BASF Clariant Dystar<br />
APAC Customer Event 2007 14
Global Operating Platform<br />
Textile Dyes<br />
Textile Chemicals & Formulation/ Distribution Centres<br />
Tolling<br />
Charlotte (USA)<br />
ATOTO (MEX)<br />
Bogota (COL)<br />
Candelaria (CHL)<br />
McIntosh (USA)<br />
Bradford (GBR)<br />
ST FONS (FRA)<br />
Estrada (BRA)<br />
LANGWEID (DEU)<br />
BASEL (CHE)<br />
Goa (IND)<br />
PANYU (CHN)<br />
QINGDAO (CHN)<br />
MAHACHAI (THA)<br />
Pondicherry (IND)<br />
Gandaria (IDN)<br />
APAC Customer Event 2007 15
Strategic Acquisitions in 2007<br />
� Metrochem India - Competitive Dyes Production<br />
� DuPont - Fluorochemical Business for<br />
Non Wovens<br />
� Thomson Research - Silver Antimicrobial <strong>Effects</strong><br />
APAC Customer Event 2007 16
Strong Regional Presence<br />
Goa, India (toll)<br />
Dyes Synthesis<br />
India North<br />
Bangladesh<br />
Mahachai, Thailand<br />
Singapore, Malaysia<br />
Jakarta, Indonesia<br />
Australia/New Zealand<br />
Korea<br />
Japan<br />
Qingdao<br />
Shanghai<br />
Hangzhou<br />
Fujian<br />
Taipei<br />
Panyu<br />
Shenzhen<br />
Hong Kong<br />
Dyes Synthesis<br />
Regional Technical Centre<br />
Chemicals Synthesis Manuf.<br />
APAC Customer Event 2007 17
Our Business Growth Initiatives<br />
� Enhancing our presence in China, India and SE Asia<br />
� Investing in additional manufacturing capacity<br />
� New Research & Technology Centres<br />
� Innovative products for Asia customer needs<br />
� Expanding our network of Technical Services Centres<br />
� Close relationships with retailers and brand houses<br />
� Capitalizing on our strong global network<br />
APAC Customer Event 2007 18
Our Ongoing Commitment to<br />
Asia Pacific<br />
� World-class production<br />
facilities<br />
� Advanced development and<br />
application labs<br />
� Highly skillful and committed<br />
team of 1700 associates<br />
� Committed to additional<br />
investment in the region to<br />
support market growth<br />
� Focused on our customers and<br />
their needs<br />
APAC Customer Event 2007 19
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