1. Sales and credit, one team ?

2. Reality or myth ?

3. Topics: Chevron Phillips Chemicals at a glance Product range EMEA Credit Organization Scoring System Collection Activities Conclusion

5. Company formed in July 2000

6. About Us Manufacturer of petrochemicals that are essential to manufacturing over 70,000 consumer and industrial products At end of 2012 : $9.4 billion in assets and more than $13.3 billion in annual revenues Trusted supplier to customers in more than 125 countries A highly educated & diverse workforce of approximately 5,000 employees working on five continents across the globe

7. Manufacturing Locations Saudi Arabia Qatar Singapore China South Korea Belgium Colombia United States

8. Global Significant Projects – Middle East SAUDI POLYMERS COMPANY – SAUDI ARABIA Q-CHEM II – QATAR

9. 2012 Sales & Assets

10. End Uses Adhesives and Sealants Agricultural Appliances Automotive Building and Construction Chemical Manufacturing Dry Cleaning Electronics Healthcare Household Imaging and Photography Industrial Lubricants Oil, Gas and Mining Packaging Paint and Coatings Personal Care and Cosmetics Pharmaceuticals Pipe Plastics and Rubber Solar Panels Textiles

11. EMEA Credit Organization & Strategy Team of 4 people Global exposure control via SAP FSCM Unique financial scoring (implied rating) Best practice sharing with US & Asian colleagues Involve sales in collection activity Tight follow-up on overdue invoices, order blocking when invoice 5 days late Sales person takes ownership of unpaid debt Monthly meeting with product line manager on default accounts

12. Implied rating 12 Investment Grade Speculative Grade Moody's Rating Aa or AaaABaa BaBCaa S&P Rating AA or AAAABBB BBBCCC Very strongStrongGood MarginalWeakVery weak 1. EBIT Int Cov. *(x) 8.8 +8.7 - 5.45.3 - 3.1 3.0 - 1.61.5 - 0.5< 0.5 2. Funds Flow/TD*(%) 51 +50.9 - 3837.9 - 25 24.9 - 14.314.2 - 7.7< 7.6 3. TD / TC (%) < 3837.9 - 43.8 43.9 - 54.3 54.4 - 67.968 - 82> 82 4. Debt / EBITDA (x) < 11 - 22 - 3 3 - 66 - 9> 9 5. 4-VARIABLE Z-SCORE > 76.9 - 6.46.3 - 5.6 5.5 - 4.74.6 - 3.7< 3.6 *When scores fall in more than one category, give more weight to the Coverage ratios. Uniform rating system on corporate level

13. EMEA Customer Portfolio Profile Investment grades : AAA, AA, A & BBB Speculative grades : BB, B & CCC BBB A AA AAA BB CCC B Secured Not rated Investment grade : 70% Speculative grade : 22%

14. Collection Activities Weekly dunning letters by email or fax Mid-month statement of account by email (all outstanding invoices are mentioned) SAP Credit check indicating overdue situation when new order is entered 14

15. Collection Procedure 15 Overdue of:

16. EMEA Credit and Collection KPI’s Key Performance Indicators EMEA (year 2012) DSO 38 days Delinquency 1 day Collection Efficiency 96 % Overdue at month-end < 3% Annual write-off < 0.1 Pro Mile

17. Tools of Success Strong communication and mutual support between credit and sales “ sales are our eyes and ears on the field ” Involvement of sales in the collection activity and ownership of unpaid debt Tight follow-up on overdue invoices Control on payment terms > risk control Financial training provided by credit to sales’ force 17

18. Sales & Credit = one team & it works!