1. Driving the Energy Transition Together: the industrial perspective Daniele Ferrari, CEO of Versalis « SET Plan Conference 2014 » Rome, 10th December 2014

2. Providing innovative products and enabling technical solutions in virtually all sectors

3. The European chemical industry is key for economic development and wealth Sources: Eurostat and Cefic Chemdata International Eurostat SBS and Cefic analysis June 2014 € 48.7 bln/y trade surplus € 9.0 bln/y R&D spending 29.000 companies 18% of world chemical sales 4% of EU manufacturing employment € 527 bln/y turnover 1.2 mln direct employees

4. The example of plastics: a key sector for European manufacturing growth * Non-manufacturing, Agriculture, Construction, Hotel/Restaurant, Financial, Real Estate/services, Public Admin., Education, etc GDP multiplier (Italy)Employment multiplier (Italy) Source: The excellence of the plastics supply chain in relaunching manufacturing in Italy and Europe – Breakdown of the impact of an increase in GDP and in annual work unit; The European House – Ambrosetti

5. Greenhouse gas emissions in chemistry decoupled from production

6. 6 Enabling low-carbon solutions to downstream sectors in Europe Net avoided GHG emissions for selected applications Source: Ecofys

7. EU manufacturers losing competitiveness: the deadly spiral for Europe Boom of shale gas production 200620082011 1,0 2,2 7,9 US shale gas production (tcf) 1 1 Henry Hub price (USD/ mmbtu) Drop of gas prices 2 2 Emission factor in thermal power generation Reduction in coal prices and CO 2 3 3 +7% Carbone Gas -34% 2013 vs. 2010 Change in the powergen mix 4 4 Emission factor in thermal power generation Increasing CO 2 emissions despite 60 bn€ annual subsidies to renewable Increasing CO 2 emissions 5 5 Power prices €/MWh Gas prices $/mmbtu US ~3x ~2x EU Dramatic energy gap in 2013 6 6

8. In addition to the energy issue other challenges affect competitiveness  Large integrated domestic markets  International network and technology leadership  Skilled workers and scientists  Continued strategic restructuring efforts  Strong innovation focus through industry clusters OPPORTUNITIES CHALLENGES  Endemic low demand for chemicals in the EU  High Regulatory Compliance costs  Raw material availability and cost  Lack of a EU-wide Industrial Policy encompassing energy and innovation  European society reluctant to see benefits vs. risks of Innovation

9. The pillars of competitiveness for Europe: let us work on them Market size Health Technology Education The 12 pillars of Competitiveness Institutions Labour market Macroeconomics Infrastructure Business qualityGoods market Financial market Innovation Competitiveness “the set of factors, policies and institutions that determine the level of productivity of a country taking into account its level of development”

10. Bio-based chemistry: an opportunity for a “circular economy” Design out wastes (material and energy recovery) Renewable feedstocks Oils/sugarsBio-building blocks Performance bio-products BIOMASS PRE-TREATMENT BIOMASS GROWING / COLLECTION TRANSFORMATION / COMPOUNDING BIO-REFINERY An efficient value chain - integrated within the territory - for the complete exploitation of the biomass

11. Towards a sustainable energy transition: a call for Innovation and Competitiveness Adaptability of skilled workforce Sustainable and secure energy and feedstocks Strong support to PPP and joint initiatives Collaborative and open approach in R&D Expected net effect: up to €30 billion GDP and over 500 000 jobs