Breakthrough compression reaction and process intensification technologies combine to transform the profitability of petrochemical businesses

1. Meaningfully
Increase
EBITDA
…With NO New Capital
Outlay
1
Petrochemical Industry

2. 2
DOUBLE your EBITDA and Enterprise Value in
7-24 months
Become your market’s price leader and low-
cost supplier
Gain greater control over your most
important material cost and availability
Pay for it by redirecting a fraction of your
material(s) A/P expense
What if you
could…Use your supplier’s revenue and margin
to…

3. 3
You Can…
Chemical IP LLC
Chemical IP provides turnkey chemical manufacturing
modules to our customers.
We combine reaction compression and process
intensification technologies with equipment financing and
plant operation competencies.
Our solutions deliver a 25-60% cost of product reduction.
Our customers require NO previous competence with the
integrated material.
Assuming a minimal existing base load, our solutions
require NO out of pocket capital.
For most customer's, our integration solutions (at least)
doubles their previous EBITDA and Enterprise Value.

4. Integration Solutions
Acrylics Cost
CapEx: $50-100/metric Ton of Capacity
• Acrylic Viscosifiers (compare to
Carbopol®)
• Acrylamide
• Acrylic Acid
• Polyacrylate
• Polyacrylamide
• DAC Monomer (DMAEA.MCl)
• DaDMAC Monomer (DMDAC)
• Amines (Triazine, Polyamine)
• Methylamine
• Ethylamine
• AMPS Monomer
4
• Ethylene
• Propylene
• Ethylene Oxide
• Polyethylene
• Polypropylene
• Poly dodecane Copolymers
• Poly methylpentene (PMP),
• Polybutene-1 (PB-1);
• Polyolefin elastomer (POE):
• Polyisobutylene (PIB),
• Ethylene Propylene rubber (EPR)
Olefin Cost
CapEx: $300-850/metric Ton of Capacity
• Methanol
• Methanol to Olefin
• Crude Oil Distillation
• GTL (CO to Fisher Trope)
• Methanol to DME
• Phosphate, Phosphate Ester
• Imidazolines
• Ethoxylated (alcohol and pheno
• Hydrogenation
• Alkylation
• Styrene Polymers
OTHER
CapEx: $70-780/metric Ton of
Capacity

5. 5
“Legacy” integration technology is a VERY
expensive economic proposition… reserved
exclusively for the largest manufacturers
The technical and operational
competencies required are very
expensive (up-front) Investments with
lengthy payouts
Summary: Cost, technology, operational
competencies and scales conspire to to
keep the pricing and cost POWER of
Integration exclusive to the largest few
What STOPS Most…
The Integration Conundrum (…an exclusive club)
STOP
STOP
STOP

6. 6
Breakthrough: Compression Reaction
Chemistry, Process Intensification Engineering
and Process Automation, combine to create
low cost/high output micro/modular
manufacturing.
The above technical advancements result in
a 70-85% reduction in Capital Expense,
required manufacturing footprint and
operational headcount.
Integration is NOW available to virtually any
petrochemical application greater than $5
million in consumption
Our Turnkey
Solution…
Democratizing the benefits of Integration
GO
GO
GO

7. A Turnkey Solution for Capitalizing
on Integration
Equipment
Leasing
Compression
Chemistry
Process
Intensification
Engineering
Equipment
FabricationContract Plant
Operation
$
HorizontalIntegration
Vertical Integration
Horizontal:
Adding valuable
and integral
products to your
sales offering
Vertical: Assuming the
manufacturing roll and benefits for
your key materials
Chemical IP
LLC

8. Monetizing Your
Material Expense
This table compares the difference between how a
commodity chemical supplier’s profit profile
compares to that of an integrated supply chain.
A high output, small footprint modular
production unit is installed on or close to our
customer’s current facility
Preprogrammed with all chemical formula,
batch-sheets, and quality specifications, the
units are saturated with sensors and
computer controlled.
We provide a comprehensive solution
including: Chemical R&D, Process EPC, Start-
Up, Ongoing Technical Support, Lease to Own
Financing
Commodity product Integration generates
between 25-35%
Commodity product Integration generates
between 35-65%
8
Your Suppliers Profit Profile Integration Savings by Category
Net Integration Cost Savings
EBITDA Difference =28%
Net EBITDA Impact = EBITDA Difference x % of End Use Product
Integration Example
(as a % of Sales)
Revenue 100%
Freight 6% Freight 0%
Material Cost 50% Material Cost 50%
Manufac turing 10% Manufac turing 7%
Gross Profit 34% Gross Profit 43%
Admin 8% Admin 3%
Slaes & Servic e 11% Slaes & Servic e 0%
R&D 3% R&D 0%
EBITDA 12% EBITDA 40%

9. Calculating the NET
Value of Integration
The “NET” value of integration is calculated by the
difference between the “Conventional Supplier” and
“Integrated Cost” basis (multiplied by) the amount
the chemical utilized in the overall product or
business
NOTE: The NET ADDITIONAL EBITDA Is stated
as standalone EBITDA (as a % of SALES).
EXAMPLE: If your current EBITDA is 13% and
Integration provides an ADDITIONAL 13%,You
can expect a 26% EBITDA, or marginal
increase of 100%
0% Integration represents a conventional
supply chain, vendor/supplier relationship
9
Commodity
Net EBITDA Impact
Net Integration Cost Savings
Integration Example
Specialty
Net EBITDA Impact
Integration
Savings % Utalization
NET
ADDITIONAL
EBITDA
35% 0% 0%
35% 40% 14%
35% 50% 18%
35% 60% 21%
35% 70% 25%
35% 80% 28%
35% 90% 32%
35% 100% 35%
Integration
Savings % Utalization
NET
ADDITIONAL
EBITDA
25% 0% 0%
25% 40% 10%
25% 50% 13%
25% 60% 15%
25% 70% 18%
25% 80% 20%
25% 90% 23%
25% 100% 25%

10. A deeper dive
analysis
0% represents a classic vender/supplier
relationship
“% integration material” indicates the
amount of integration material used in
the overall product or business
This analysis details a series of profit
scenarios that
1. assigns a $500/ton revenue value,
2. fixes all costs inputs
3. varies the amount of the integrated
component from 0-100%
Commodity Case
For NO additional capital expense,
Chemical IP delivers $51/Ton of
ADDITIONAL EBITDA and (a
minimum) $204 of ADDITIONAL
Enterprise Value.
$50
$101
Lagacy Chem IP
EBITDA Comparison

11. Convert Supply Chain
Cost
ASSUMPTIONS:
Assumes Your Key Raw Material Represents 60% of your Cost of Product
I. The Market Value of the Product = $500/Ton
II. The (Non-Integrated) Cost of Materials =
$320/Ton
III. The (Integrated) Cost of Materials = $269/Ton
IV. The (Non-Integrated) EBITDA = $ 50/ Ton
V. The (Integrated) EBITDA = $101/Ton
PRICE to EBITDA Valuation Range is 4-8X (Use 4)
11
If You Purchase
Your Key RM
The Value of Integration
Integration Solutions
ADDITIONAL VALUE
Into Shareholder Value
The Calculation: Based on Slide 5 Cash Flow/ EBITDA
= $ 50/Ton
$50 EBITDA x 4x Multiple
= $200/Ton
Total Value Attributable to
Your Supply Chain
= $250/Ton
Cash Flow/ EBITDA
= $ 51/Ton
$101 EBITDA x 4x Multiple
= $404/Ton
Total ADDITIONAL Value
Attributable to Your Supply
Chain
= $555/Ton
Net Integration Saving = $305/Ton
-or- 122% Increase in EBITDA

12. A deeper dive
analysis
The Specialty model differs for the
commodity only by its scales and values
While the financial impact is greater, the
volumes are notably less than the
Commodity case
Low volumes exacerbate the barrier cased
by conventional integration solutions.
Our solution addresses this problem
Specialty Case
$300
$525
Lagacy Chem IP
EBITDA$/TON
EBITDA Comparison
For NO additional capital expense,
Chemical IP delivers $252/Ton of
ADDITIONAL EBITDA and (a
minimum) $1008 of ADDITIONAL
Enterprise Value.

13. A NEW Economic
Reality
Created from NEW
Integration Technology
13
$/UnitofProduction
# of Units Produced
Legacy (global scale
type) Scales of
Economy Curve
Process
Intensification’s
Scales of
Economy Curve
Up to 115
kTa
(per module)
NEW
“Reaction
Compression” based
economics…
As an f{x} of Low Cost,
High Output integration

14. Applicable
Integration
Reactions
are growing by the day
Polymerization Esterification
Condensation
Trans-
esterification
Organo-Metallic
Grafting – Interstitial
Equilibrium
Distillation
Oxidation Alkylation
Hydrogenation

15. 15
Precision Reagent
Addition
Process Sensors
and Automated
Control
Continues
Processing
Novel Mixing and
Energy Utilities
Heating Utilities
Phase Separation
and New Distillation
IP
Novel Catalyst
Compositions and
Form
Electrochemical
Ceramic Membrane
Reactors
In Situ Catalyst
regeneration
Reagent Diffusion
Modulation
Protective Colloid
Chemistry
Seeded,
Homogeneou
s CatalystsControlled High
Concentration
Reactions
Enhanced
Electrolysis
Reactions
Process Intensification - Reaction Compression Tools
Chemistry Base
Tools
Process Based Tools
Cooling Utilities

16. 16
16
Decreasing Increasing Results
Material Costs
Cost of Inventory
Freight Cost
Distance from
Customers
We Deliver
An unequalled
Competitive
Advantage
Cost transformed
into profit - and
profit into
shareholder value
Paid for by
Existing Expenses
Profit
Growth
Cash Flow
Enterprise Value
Control (supply
chain, cash
flow….)
>
Operational
Success
Management
Choice
Capital Efficiency
Market-
Disruption,
Transformation
Inputs
Technology
Capital
Market Baseload
Collaborative
Execution
Market
Capital
Technology
16

17. Contact Us
Office:
Laboratory:
Engineering and Fabrication: New Berlin, WI
Columbus, GA
Orlando, FL
Telephone: (858) 449-3584
Email: JIKANE@ChemIP.COM