1 Restructuring and Operating Infrastructures for the Chemical Industry Experiences from the Leuna Chemical Complex Dr. Christof Günther, Managing Director, InfraLeuna, Leuna, Germany 13th Iran Petrochemical Forum, Tehran, Apr. 23, 2017

2 During its history Leuna experienced several radical transformationsLeading edge in ammonia synthesis, methanol, hydro-genation of coal etc. Demolition and removal after wold war II Expansion of petrochemical production based on Russian crude oil Production facilities in bad state Heavy environmental pollution Lost competitiveness in most business lines Restructuring challenge without past comparison Modern and competitive chemical site 100 years ago 25 years ago Today

3 Leuna: Modern and competitive chemical complexHistory of 100 years of chemical production Located in the chemical triangle in the heart of Germany Largest integrated chemical complex in Germany: 13 km² Turnover of approx. € 7,5 bn/a Throughput of > 12 mio. t/a Approximately employees Investments of more than € 6 bn since 1990

4 Process from combine to chemical complex1990 Separation Privatization and Modernization 2003 Regional Private and Municipal Institutions Social Functions National and International Chemical Producers Ongoing Development and Growth, Supported by (declining) subsidies and new investments State combine Leuna Chemical Production Privatized and Modernized Chemical Complex Infrastructural Services InfraLeuna Designated mostly national Service Providers Specialized Technical Services

5 Companies from 10 Nations working closely togetherACTILOR GmbH ADDINOL Lube Oil GmbH AGROFERT Deutschland GmH Aqualeuna G.m.b.H. ARKEMA GmbH BASF Leuna GmbH BAUFELD-CHEMIE GmbH CRI Catalyst Leuna GmbH DOMO Caproleuna GmbH Dow Olefinverbund GmbH Eastman Chemical Company EW Biotech GmbH FP-Pigments GmbH Fraunhofer-Zentrum für Chemisch-Biotechnologische Prozesse CBP GHC GERLING, HOLZ & CO. Handels GmbH Helmholtz-Zentrum für Umweltforschung GmbH – UFZ InfraLeuna GmbH Innospec Leuna GmbH LCP Leuna Carboxylation Plant GmbH LEUNA-Harze GmbH LEUNA-Tenside GmbH Linde AG Lord Germany Feinchemie GmbH MinAscent Leuna Production GmbH Mitteldeutsche Sanierungs- und Entsorgungsgesellschaft mbH MVV Umwelt Asset GmbH Quadrimex Sulfur Chemicals GmbH & Co. KG Steag GmbH Synthomer Leuna GmbH TOTAL Raffinerie Mitteldeutschland GmbH WAX Umweltschutz GmbH WEPA Leuna GmbH Xentrys Leuna GmbH Infrastructure Operations Area of InfraLeuna Chemicals/Gases/Industry Service Providers Refinery Power Plants Areas for Industrial Development Waste dump Research facilities

6 environmental protectionInfraLeuna enables synergies Safety and environmental protection Infrastructure roads, pipe bridges, cable routes, railway network, real estate etc. Utilities steam, electricity, compressed air, natural gas, de-min water, fresh/drinking water, cooling water etc. Services logistics, telecommunication, analytics, medical service, waste water disposal etc. Security and environmental protection fire brigade, site/plant security, immission and radiation protection, health protection etc. On-Site Companies Utilities Services Infrastructure Number of employees 691 Number of apprentices 32 Balance sheet 437 Mio. € Turnover Mio. €

7 Priciples for Infrastructure PrivatizationIntegrated, comprehensive centrally managed Infrastructure Natural Monopoly Task: prevent infrastructure owner from generating monopoly profits operate infrastructure efficient and competitive enable best possible synergies Low profit principle (limited dividends) Customers are shareholders and determine infrastructure development No outside shareholders Non-discrimination between shareholding and none-shareholding customers Measures supervised by German Privatization Agency

8 Conclusion Privatization and restructuring of East-German chemical sites became blue-print for the chemical industry in Germany and abroad After more than 20 years in Leuna the “chemical park concept” proves its advantages New investments in chemical production create new links within a complex materials network of more than 30 interim products New investments in the energies network create new synergies and strengthen competitiveness Infrastructures are managed as if it was still one chemical company instead of 20 different chemical companies To the 100 anniversary of the chemical complex Leuna on 3rd March InfraLeuna was recognized by chancellor Merkel as outstanding competitive independent service provider for the chemical industry

9 CONTACT Dr. Christof Günther CEO InfraLeuna GmbH Am Haupttor, Bau 4310 06237 Leuna Germany Phone: +49 (0) 3461 / Fax: +49 (0) 3461 /