Chemicalsindustry M&A outlook

M&A activity for 2015 is expected to grow, with China and North America seeing the greatest increaseDevelopment of M&A activity by regions

Note: Eastern Europe includes the Commonwealth of Independent States.Source: A.T. Kearney analysis

Overall Domestic

Intraregional

Interregional

34%

55%

5%

6% 11%

61%

29%

37%

55%

5%

3%

29%

50%

16%

5%

India

50%36%

10%

Western Europe

Eastern Europe

China

19%48%

31%

Japan and Korea

Middle Eastand Africa

Latin America

10%40%29%21%

North America

67%

29%5%

45%33%19%

2%

29%37%21%13%

37%37%20%

2%

17%

64%

14%2%2%

Rest ofAsia Pacific

45%43%

10% 2%

5%4%

Strongly decline >20%

Decline 10–20%

Stable

Increase 10–20%

Strongly increase >20%

Chinese M&A has grown from 2% of deals in 2001 to 19% of deals in 2014% of deals

Sources: Dealogic; A.T. Kearney analysis

0%

100%

80%

60%

20%

40%

2001 2005 20112008 201420102009 2012 201320072006200420032002

11% Japan

19% China

4% South Korea

23% United States

28% Rest of world

3% United Kingdom

5% Germany

3% Russia

3% India

40%

9%

9%

9%

27%

2%1%2%

2%

Specialty and fine chemicals will seemore M&A , and strategic investors willpush more dealsResults from executive survey in %

Source: A.T. Kearney analysis

Sectors

Investors

Trade and distribution

Specialties and fine chemicals

Petro and basic chemicals

67% 14%14%5%

55%26% 5%14%

37%44%10% 10%

State-controlled orstate-driven players

Financial investors

Strategic investors 60% 19%19%

50% 10%31%10%

19%19% 52% 2%7%

Strongly decline >20%

Decline 10–20%

Stable

Increase 10–20%

Strongly increase >20%

2%

For more informationon on A.T. Kearney’s2015 Chemicals ExecutiveM&A Report, please visit: www.atkearney.com/chemicals