© 2008 Aker Solutions Working together on a mercury-free VCM catalyst INC3. Nairobi. 30 October 2011

© Johnson Matthey and Jacobs Slide 2 Agenda Jacobs and Johnson Matthey Background History of catalyst development Key features of mercury-free VCM catalyst Current achievements Future milestones Estimated catalyst cost Conclusions

© Johnson Matthey and Jacobs Slide 3 Jacobs and Johnson Matthey Jacobs Founded in 1947 Publicly traded company Leading provider of professional, technical and construction services Acquired part of Aker Solutions in 2011 Revenues [2010] of $ 9.9 billion Johnson Matthey Founded in 1817 Publicly traded company Speciality chemicals company; core skills in catalysis, precious metals Sales (excluding precious metals) [2010] of £ 2.3 billion

© Johnson Matthey and Jacobs Slide 4 Background In the acetylene based PVC process, acetylene and hydrogen chloride (HCl) are reacted over mercury based catalysts to form Vinyl Chloride Monomer (VCM) which is polymerised to PVC The production, use and recycling of mercury catalysts causes significant mercury emissions to the environment Jacobs and Johnson Matthey have jointly developed a novel mercury-free catalyst for this process Being tested in a pilot plant at a leading Chinese VCM manufacturer coal calcium carbide acetylene + HClVCMPVC catalyst: mercury on carbon

© Johnson Matthey and Jacobs Slide 5 History of catalyst development In 1995, Jacobs developed a mercury-free VCM catalyst and tested it successfully on pilot plant scale Longer catalyst life (vs mercury catalyst) confirmed Catalyst was never commercialized because Middle East project was terminated In 2006, Jacobs and Johnson Matthey started cooperation to further develop and commercialize a mercury-free catalyst Customized to Chinese process conditions

© Johnson Matthey and Jacobs Slide 6 Key features of mercury-free VCM catalyst Non toxic and non hazardous for environment Precious metal on carbon Can be used with no or minimal changes to existing process Better performance than mercury catalyst Longer life time Less catalyst required

© Johnson Matthey and Jacobs Slide 7 Current achievements 2006 Start catalyst design phase 2007 Start laboratory phase 2009 Achieved laboratory phase targets Catalyst ready for pilot plant 2010 Cooperation agreement with leading Chinese PVC producer for industrial tests Status October 2011 Significant improvement in catalyst performance Patent applications filed Started pilot test in VCM plant of Chinese partner Running since end of June Excellent performance Preparations for commercial test in progress Finished design for new catalyst plant in China Catalyst cost model well defined

© Johnson Matthey and Jacobs Slide 8 Future milestones Aim to start commercial test early 2012 Test deemed successful after 6 months stable operation, meeting performance criteria (mid 2012) Afterwards, reactor will continue to run on catalyst until end of life time If commercial test is successful, initial small quantities of catalyst can be available within one year (mid 2013 earliest), for further evaluation Start building new catalyst plant in China Development complete delivery model including catalyst loading and unloading, start-up and recycling services

© Johnson Matthey and Jacobs Slide 9 Estimated catalyst cost Current mercury catalyst cost <1% of total PVC production costs* costs to minimize mercury emissions not included Estimated mercury-free catalyst costs <2% of total PVC production costs* Precious metal can be either purchased or leased Precious metal recycling included in cost estimates

© Johnson Matthey and Jacobs Slide 10 Conclusions Novel mercury-free VCM catalyst under development Non toxic and non hazardous for the environment Development started in 1995 Started customization to Chinese process conditions in 2006 Excellent pilot plant performance at leading Chinese VCM manufacturer Aim to start commercial test early 2012 Minimal impact on total PVC production costs expected Our target is to provide an environmentally and economically sustainable mercury-free catalyst to the Chinese PVC manufacturing industry

© Johnson Matthey and Jacobs Slide 11 Contact us For any questions regarding this development program please contact: Bas van Haandel Jacobs The Netherlands phone: Erwin Teirlinck Johnson Matthey United Kingdom phone:

© Johnson Matthey and Jacobs Slide 12