CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Creating Value 2014 Member feedback and continual improvement CIAC Leadership Groups May 2014

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Creating Value 2014 Objectives 1.Get feedback on how we did, or did not, respond to concerns raised last year – relate feedback to Membership Strategy 2.Understand the value proposition for participating in CIAC. 3.Be informed on key issues and challenges member- company is grappling with. 4.Hear their concerns, if any with respect to any CIAC activities – or gaps – including implementation of Transition Plan. 5.Get a sense of whether the member’s participation in CIAC is “at risk,” and why.

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Context  Third annual exercise of reaching out to all members  All but one member / partner company participated (2014).  Some meetings ‘in person’ (best), most via teleconference.  Exercise continues to be well-received by membership.  Exercise continues to provide value and drive continual improvement in CIAC.

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA What We Heard 2013 Membership Candidates  Interested in RC brand and access to RC.  We are production focused, limited staff and overhead.  Cost not consistent with expectations.  Concerned about expectations for participation.  Lack of acceptance / alignment with ACC RCMS / RC14000 approaches is a barrier.  Regional groups (SLEA and SIA) serve their advocacy needs.  Mixed messages from current members vs previous members (we carry some baggage) 4 Partnership Candidates Contact initiated by suggestion from current member. Limited understanding and awareness of CIAC or RC. Not involved in any other similar organizations. Would be a major leap of faith / step forward to get engaged - more time required. From CIAC perspective – would require significant resources to support these smaller companies.

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Our Response (2013) Recognition of RCMS / RC Reduced participation expectations / costs Strengthening TRANSCAER Looking at organizational structures for ‘logistics’ Seeking ideas to strengthen Partners vale Reducing fees for mid-tier companies Communicating directly to key decision makers outside of Canada Developing membership collaterals Telling our story better (e.g. ChemExec improvements, website etc.) 5

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA 1.Member-companies value CIAC’s strengthened advocacy in key areas: Ontario and Quebec regional strategies especially important Rail issues are critical and being well managed GHS issue is important and CIAC continues to push government on this file Economic issues also well represented (e.g. ACCA) CIAC encouraged to work closely with ACC (few understand the degree of current interaction) Quality of information products and messages significantly improved. 2.Some Advocacy areas identified for improvement. CIAC called to play a more leading / forceful role on industry electricity user coalitions CIAC needs to tell its story better, communicate successes Opportunity to increase membership participation in Ontario advocacy What We Heard This Year

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA 3.Member-companies are very pleased with RC Transition, specifically re: RCMS / RC14000 integration. Seen as a way to meet CIAC requirements with limited overlap and duplication. Seen as effective adaptations to very real restrictions facing business/industry Efforts towards increased webinar / teleconference and reduced reliance on CIAC and member travel highlighted. CIAC Sustainability webinars seen as emerging good practice 4.Member-companies are seeing significant progress in TransCAER and process safety and are hopeful trend will continue. 5.Some notes of caution / concern about ability to cope with pace of change in CIAC personnel and programs over 2014/2015. What We Heard This Year

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA 6.A number of partners / specialty chemical companies raised concerns about value proposition CIAC needs a process to bring partner and member company logistics professionals together. Concerns that Responsible Care is not being valued by other members. Value for specialty chemical producers questioned 7.Some Other members who see value note that HQ is asking very challenging questions and CIAC assistance is needed in articulating business case for membership 8.Two companies leaving membership Ashland – business changes in Canada PDI – Value proposition questions What We Heard This Year

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Value Propositions

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Membership Changes in Last 4 Years MEMBERSREASON FOR LEAVING RuetgersValue New AltaValue Hydor-TechValue AshlandBusiness Issues CynacoValue/Business MarsulexBusiness Issues CEPSAValue PARTNERSREASON FOR LEAVING EnvirotecValue PDIValue Quantum MurrayValue Benson Tank LinesBusiness Issues

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Membership Changes in Last 4 Years MEMBERSREASON FOR LEAVING RuetgersValue New AltaValue Hydor-TechValue AshlandBusiness Issues CynacoValue/Business MarsulexBusiness Issues CEPSAValue PARTNERSREASON FOR LEAVING EnvirotecValue PDIValue Quantum MurrayValue Benson Tank LinesBusiness Issues Speciality and ‘other’ Chemical Companies

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Membership Risks

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Your Thoughts? What questions does this raise for you? What advice do you have for CIAC?

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA CIAC Membership Strategy CREATING VALUE 2014

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Membership Objective What?  Attract and retain an ever- growing, engaged, more diversified membership Why?  Success in role as the voice of our industry  Be seen as a vital and growing organization  Refreshed stream of sweat equity to realizing 15

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Membership Goals  Sustain and grow:  retain 95% of existing members and partners.  Increasing total members by 4  Increase visibility / voice  Raise participation rare to 75% of industrial chemicals production in Canada  Diversify  2 new partner companies  2 chemical re-sellers,  2 new associate members. 16

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Membership Targets 1.Retention  Current CIAC members and partners, 2.Growth:  ACC member companies with operations in Canada  RC Global Charter signatories with operations in Canada 3.Diversification:  Partner and associate member companies that play an important national / regional roles in the chemistry industry value chain in Canada;  ACC member companies with re-sale only activities in Canada. 17

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Tactics 1.Increased visibility within ACC  Participation in key ACC events (Board, RC expo)  Opportunities to co-message with ACC where possible, 2.Improved communication to members and prospects  Streamlined and focused ChemExec  Emphasis on advocacy efforts and successes. 3.Improved communications to prospective members:  Emphasis on advocacy  New collateral(s)  Targeted advertising  Website messaging on membership value 18

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Strategic Considerations  Value proposition unique for each company  What can be done for smaller companies / specialty chemistry producers?  Need to be constantly selling ourselves.  Are we missing messages and opportunities?  Need to reach decision makers (esp in HQ)  What else should be done to ensure our messages reach them?  Need to have members involved.  What is the right role for Board members and others? 19