SABIC ANNUAL REPORT 2017 01

Overview and strategy Our commitment Chairman’s Statement 12 Corporate Social Responsibility 48 At SABIC, we believe in the CONTENTS Vice Chairman and CEO’s Human Capital 50 14 Statement Innovation and 52 Enabling Saudi Vision 2030 18 Development power of chemistry to make Compliance and Risk Management 56 Our Board of Directors 20 Environment, Health, Safety 58 Global Operations 22 and Security the world a better place. Our Manufacturing 62 Supply Chain 64 26 Sustainability 66 Specialties 27 By driving performance for Agri-Nutrients 28 Directory Metals 29 Manufacturing Companies 70 customers, ensuring long-term Our core markets Global Directory 74 Transportation 32 Agri-Nutrients 34 dependability and building Construction 36 Medical Devices 38 Packaging 40 valuable relationships, we put Clean Energy 42 that power to work. We call it Electrical and Electronics 44 ‘Chemistry that matters™’. Page 05 Page 18 SABIC supports the Saudi SABIC hosts pioneering Vision 2030 drive for Human Resources Forum national economic in transformation Page 32

SABIC innovation enables prize-winning panel for new Mini car Page 36 Applied brainpower helps architects and builders construct a better future Page 38 Page 42 Smarter materials that empower those Helping square the working to enable circle of limitless needs, better, longer lives limited resources Page64 Making our supply chain more effficient, sustainable and responsive SABIC 02 ANNUAL REPORT 2017 03

AT A GLANCE

ASSETS

We and our customers are working together to create a better future. Whether it’s cutting weight to save pollution or developing materials to help bring water to remote communities, the ingenuity, innovation and bn sheer dedication of our people are changing things for the better. NET INCOME $86 PATENT PORTFOLIO FILINGS

AGRI-NUTRIENTS SABIC’s supplies to customers throughout the , Asia, bn 11,534 Africa and the Americas help meet $4.9 the world’s ever-growing need KEY GEOGRAPHIES for food. WITH INNOVATION HUBS

Find out more on page 28 PETROCHEMICALS SABIC makes the essential 5 chemical building blocks for materials used in everything from packaging to healthcare to household goods.

Find out more on page 26

SCIENTISTS COUNTRIES

1,400+ 50 PRODUCTION SALES EMPLOYEES

34,000+ $39.9 bn SPECIALTIES SABIC produces a wide range of specialty materials, from engineering m tons METALS 71.2 thermoplastic resins to additive manufacturing solutions. SABIC’s high quality metals have been key to the construction and Find out more on page 27 industrialization of some of the world’s fastest growing economies.

Find out more on page 29 04 05

LEVERAGING GLOBAL STRENGTHS TO DRIVE LOCAL SUCCESS SABIC hosted a pioneering Human Resources Forum in Riyadh this year, supporting the government’s commitment to workforce development

Maintaining SABIC’s long legacy of working with the government to develop skills and support the creation of local employment, the forum provided a platform for exchanging knowledge and expertise, and a catalyst for the transformation in human resources that is key to the achievement of Vision 2030.

Key take-outs included the establishment of a “Human Resources Think Tank” in , which will allow for more exchange of views and experiences in the field of human resource development; the signing of a Memorandum of Understanding on preparing students for the labor market by developing their skills and potentials; initiation of a SABIC Academy training program for top Ministry of Labor officials; and an agreement to share experiences and knowledge on global best practices. 06 07

TURNING BAD WATER INTO GOOD SABIC expertise is at the heart of a simple device that turns bad water into good water – anywhere in the world

Cerafiltec’s vision of an all-plastic water-filtration module had been repeatedly called “impossible” – but SABIC begged to differ.

Using NORYL™ resin, a polyphenylene ether material chosen for its excellent hydrolytic and dimensional stability and chemical and high-temperature resistance, the new module houses multiple high-performance silicon-carbide membranes in a device that can turn seawater, freshwater, even industrial wastewater, into clean, healthy drinking water. Also, it delivers this at one-seventh of the cost of traditional metal-framed devices – and lasts twice as long. 08 09

SMART FARMING WITH SPECIALTY AGRI-NUTRIENT This year saw sales up 100 percent for SABIC’s specialty agri-nutrient product, NPK, combining nitrogen, phosphorus and potassium

The product, developed through years of intensive research in collaboration with Riyadh’s , addresses a basic but important issue for farmers not just in Saudi Arabia but throughout the region, and even further afield: improving the performance of a mainstay agricultural resource – date palms.

By increasing the efficiency of nutrient delivery, based on the specific needs of the palms, the product benefits farmers in multiple ways: enhancing yields, improving crop quality, minimizing seasonal crop fluctuations, and streamlining application by combining four nutrients in one. SABIC 10 ANNUAL REPORT 2017 11 OVERVIEW AND STRATEGY

CHAIRMAN’S STATEMENT 12

VICE CHAIRMAN AND CEO’S STATEMENT 14

SAUDI VISION 2030 18

BOARD OF DIRECTORS 20

GLOBAL OPERATIONS 22 SABIC 12 ANNUAL REPORT 2017 OVERVIEW AND STRATEGY 13

CHAIRMAN’S STATEMENT

I do not believe it is any exaggeration to draw direct comparisons between the scope and scale of the changes we are now undergoing, in the form of the Over the course of the journey, SABIC Transformation, to those which saw the SABIC has contributed enormously creation of the company back in 1976. We embarked on a phenomenal journey then. Now, we are to the development of the Saudi embarking on another, no less phenomenal. Nor economy. We have generated DR. ABDULAZIZ are we alone in this. Our transformation has been very substantial revenues. SALEH ALJARBOU undertaken very much within the context of the larger transformation journey encompassing the We have created tens of thousands Chairman nation: Vision 2030. of meaningful and sustainable jobs. Vision 2030 is the Kingdom’s response to the fundamental challenge facing our nation: over- dependence on oil revenues. Our country’s leaders understand all too well that the oil reserves are finite, and no basis for its future over the decades – and centuries – to come. If there is one imperative success, we will play a major part in helping facing us all – nation and company – it is this: diversify. the Kingdom drive Vision 2030 to meet its goals and objectives. The Board and myself are fully I would like to begin this, my first annual report our nation, in everything from helping grow the We at SABIC have been diversifying now for many committed fully to making this a reality. letter, by extending my thanks to His Highness food we eat to playing an important part in the years. We have, as just one example, invested Prince Saud bin Abdullah bin Thenayan Al-Saud and construction of the magnificent buildings that have heavily in the skills of our people and the intellectual I and my fellow Board members extend our other former board members for their leadership made our cityscapes some of the finest in the world. property they have created. These complement our full support to SABIC’s leadership, and reiterate and many years of service and dedication, which our confidence in its commitment and Our success – and our achievement – is visible immense strength in commodity chemicals with have played such a crucial part in helping to make capabilities, as we embark on this exciting, everywhere you look. Now, we are entering a new innovative materials – lighter, stronger, tougher and SABIC what it is today – one of the world’s leading transformational journey. era, calling for redoubled efforts to build on that more versatile – which are playing a crucial role in global chemical companies. success and take it to the next level. leading edge applications in some of the most We will work with our leaders, our people and I would also like to extend a warm welcome to dynamic and exciting areas of the new economy. our external stakeholders to pursue our The global business environment is becoming SABIC’s new Board members. I am confident that Areas such as advanced medical devices – transformational agenda with focused energy more challenging – and more volatile. At the same they will work with me and our Vice Chairman and particularly to meet the needs of the world’s and smart innovation, overcome the challenges time, this volatility, and the limitless webs of CEO, Mr. Yousef Al-Benyan, in support of our growing elderly populations – and portable we face, and forge ahead to an even more super-connectivity that link economic and financial managers and our people here in the Kingdom technology – to meet the insatiable appetite successful future. systems and people all over the world, open new and around the world, to make SABIC’s bright for new functionality and innovative design vistas of opportunity. Global energy markets are Together, we will work to leverage from future a reality. among the young. at the very heart of this new era of volatility, not ‘Chemistry that Matters™’, achieve SABIC’s 2025 SABIC has come a long way since its inception in least in adjusting to the new realities of shale, We are now reinforcing and supplementing our strategy, and fulfill our vision of becoming the 1976. I vividly recall the days around 40 years ago and the issue of climate change. materials diversification strategies with others, such world’s premier provider of chemicals. when I was fortunate enough to become part of as geographical expansion. Later in this report, Such changes, of course, represent a major the first family of SABIC. We have worked long and you will find details of our ambitious overseas challenge not only to SABIC, but to the Saudi hard in pursuit of that dream; we have benefited acquisition program, whereby we will strengthen economy as a whole. In almost every aspect of from unswerving support from visionary leaders our presence in key overseas markets – particularly the economy, from increased cost of living to of the country and of our company. We made that in the US and in . Such acquisitions not only employment opportunities, the need to overcome dream a reality. give us greater geographical balance and stability; dependence on oil revenues is becoming ever more they also offer a fast and efficient way to gain a Over the course of the journey, SABIC has pressing. As so often is true, SABIC’s leadership is foothold in new technologies, such as shale. contributed enormously to the development of the proving equal to the task, with proactive measures Saudi economy. We have generated very substantial in the form of the SABIC Transformation Program I have every confidence that over the next few years revenues. We have created tens of thousands of already well in hand. Our Vice Chairman and CEO, we will see the transformation of our company, meaningful and sustainable jobs. We have Mr Yousef Al-Benyan, has led the way, and the rest which will further increase its already immense developed leaders who are now leading major of the Board, our managers, and our people at every contribution to the transformation of the country. companies, locally and globally. And we have made level, are already executing rapid and essential By driving the SABIC Transformation Program to an immeasurable contribution to the landscape of changes. Initial results are proving very positive. SABIC 14 ANNUAL REPORT 2017 OVERVIEW AND STRATEGY 15

VICE CHAIRMAN AND CEO’S STATEMENT

While the external business and policy environments remain challenging, I am pleased to report we are making good progress. By reducing We have laid the foundation the number of SBUs from six to three, we have for a new program, “Nusaned,” created a leaner, more focused organization, leading to increasing agility and an improved cost structure. to provide a framework for our contribution to Saudi Vision 2030. YOUSEF ABDULLAH Our focused execution is turning around lagging businesses and delivering improved performance. We have a new plant, substantial AL-BENYAN We are addressing capability gaps in the organization by increasing transparency within SABIC and our new joint ventures, and a new Vice Chairman and ongoing investment in developing SABIC’s people. Chief Executive Officer commitment to major acquisitions, The key to ultimate business success remains to continue our evolution growth – organic, inorganic and the opening of new markets. SABIC is active in all of these crucial arenas. from Saudi producer to true global powerhouse. MAJOR US PROJECT SABIC this year joined with our partners ExxonMobil For SABIC, 2017 has been a year of transformation. NEW CHAIRMAN AND BOARD MEMBERS in announcing the potential site for a massive new petrochemical project in San Patricio County, Texas, This year saw the reconstitution of our Board We have a new Chairman and Board members. on the US Gulf Coast. We have laid the foundation for a new program, of Directors, including the appointment of Expected to begin production in 2025, the complex “Nusaned,” to provide a framework for our Dr. Abdulaziz Saleh Al-Jarbou as Chairman of the The new plant reflects SABIC’s strategy of exploring aims to process around 400,000 barrels of crude oil contribution to Saudi Vision 2030. We have a new Board, succeeding Prince Saud bin Abdullah bin feedstock opportunities to achieve sustainable a day, producing around 9 million metric tons of plant, substantial new joint ventures, and a new Thenayan Al-Saud. I was proud to accept the growth. It includes an steam cracker capable chemicals and base oils every year. By 2030, it’s commitment to major acquisitions, to continue position of Vice Chairman of the Board of Directors, of producing 1.8 million metric tons of per expected to be providing a 1.5 percent boost to our evolution from Saudi producer to true and welcome three new members: Dr. Fahad year, feeding a monoethylene glycol unit and two the Kingdom’s GDP. global powerhouse. Abdullah Al-Mubarak, Roberto Gualdoni and units. It is intended to capture Calum MacLean. competitive feedstock, capitalize on growing global NEAR-$1 BILLION ACQUISITION Yet in the midst of this rapid and thoroughgoing demand for ethylene-based products, and maintain The changes demonstrate our commitment to FOR SUSTAINABLE GROWTH change, our people have maintained their focus its market share. and resolute professionalism, turning in a set of diversity in both our business operations and our In January this year, we signed an agreement excellent results, thanks to improved prices, organizational structure, at every level of the A final decision on the investment will be made to acquire Shell’s 50 percent share in the Saudi increased production and steady reduction in our company, and the evolution of a genuinely global following the outcome of an application, currently Petrochemical Company (Sadaf), a joint venture operational costs. culture: key to our ambition of becoming the world’s pending, for permits from the Texas Commission in , for around US$820 million. preferred provider of chemicals by 2025. on Environmental Quality. Net profit for 2017 was SR 18.40 billion as compared Sadaf, the longstanding product of a highly to SR 17.61 billion for 2016, an increase of 4.49 successful partnership, is one of SABIC’s oldest percent. Gross profit was SR 50.29 billion for 2017 TRANSFORMATION IS BEARING FRUIT CREATING WORLD’S #1 CRUDE joint ventures, and encompasses six world-scale compared to SR 47.24 billion for 2016, an increase SABIC’S transformation process is driven by OIL TO CHEMICALS COMPLEX petrochemical plants with a total output of more of 6.46 percent. Operating profit for the year was structural changes in the global petrochemical In another major joint venture, SABIC is joining than 4 million metric tons per year. The acquisition SR 29.37 billion as compared with SR 25.87 billion market. These changes include sustained low oil with to conduct a feasibility study on will enable SABIC to progress the optimization of the in 2016, an increase of 13.53 percent. Share profit prices, industry consolidation, and increasing developing the world’s largest crude-oil-to- plant’s operations, make further investments in its in 2017 was SR 6.13 as against SR 5.87 in 2016. competition. SABIC must respond by restructuring chemicals complex in Saudi Arabia. facilities, and integrate more closely with other its own business, driving cost discipline, customer affiliates to capitalize on synergy opportunities. The new venture will constitute a major boost for We also opened a new (PP) pilot plant focus and increasing growth. in Geleen, the Netherlands. The plant will develop Saudi Vision 2030, generating economic prosperity new PP homo , impact copolymers and by boosting our investment capacity, diversifying the random polymers for our Horizontal gas phase PP economy and creating jobs for Saudi nationals. It will plants in Geleen and Gelsenkirchen. help strengthen our economic growth and attract world-class competencies and quality investments. SABIC 16 ANNUAL REPORT 2017 OVERVIEW AND STRATEGY 17

VICE CHAIRMAN AND CEO’S STATEMENT continued

NEW ORGANIZATION FOR HADEED AN EVOLVED BRAND PRIORITIES FOR 2018 As we move forward into 2018, In October 2016, we announced plans to integrate To support the ongoing transformation of the As we move forward into 2018, our strategy relies our Metals SBU into Hadeed as a continuation of our business, our brand has evolved. We have made on fulfilling our priorities. These include a relentless our strategy relies on fulfilling our transformation journey. This year, those plans came three clear commitments to truly deliver our focus on employee safety and security, people ™ priorities. These include a relentless to fruition, with the launching of a new Hadeed with purpose, Chemistry that Matters : Driving engagement and development, increasing customer a new organizational structure. This streamlined performance for customers; Enabling long-term intimacy, improved reliability, speeding growth and focus on employee safety and structure will enable Hadeed to be more agile and dependability; Building valuable relationships. implementation, creating value through innovation, integrated in an increasingly volatile market, which These commitments define how SABIC positively and maintaining cost discipline. security, people engagement will accelerate the company’s performance and impacts its businesses, industries, and lives of all I thank our Board, our employees, our shareholders, competitiveness. the stakeholders it works with. and development, increasing and our customers for the progress we have made so far. SABIC could not have achieved this without customer intimacy, improved As part of this evolution, we have updated our NEW STRIDES IN SUSTAINABILITY your support. brand’s visual expression to better showcase reliability, speeding growth and Sustainability is in SABIC’s DNA, and I am proud to SABIC’s focus on solutions for customers, and build But more must be done. SABIC has the capability, say we are making innovative strides here as well. implementation, creating value the global recognition we seek. the capacity, and the competitive drive to maintain through innovation, and maintaining This year, we fully commissioned a combined heat and improve its position as a global player – and power cogeneration plant in Mt. Vernon, SABIC has also unveiled a refreshed corporate regardless of what is happening in the marketplace. cost discipline. Indiana. The plant provides 80 percent of electricity website and a new unified global intranet site, which By focusing our efforts and standing by the SABIC and steam demand while eliminating the use of coal was designed after extensive worldwide values, I am confident we can accomplish our goals at that site. Projects such as this are milestones on consultation with employees and partners, and and create a better future for ourselves and for the path to our 2025 goals. offers a significant new day-to-day collaboration the world. tool for our 34,000+ people around the world, At Chinaplas 2017 in Guangzhou, SABIC chaired a helping them work together more effectively, ACQUISITIONS World Plastics Council (WPC) meeting, joining global sharing valuable ideas and expertise to deliver SABIC is looking to strengthen its presence in key chemical majors to discuss the pressing issues of ‘Chemistry that Matters™’. markets around the world – in the US, China and marine debris and plastic waste management. The parts of Europe – and has earmarked significant meeting, held under the theme marine debris and resources for acquisitions, primarily in plastic waste management, was an opportunity for SUPPORTING VISION 2030 petrochemicals, agri-nutrients and specialties, leaders from leading chemicals companies to share SABIC is a global company, but we have never over the next five years. plastic waste management technologies and lost sight of our roots in Saudi Arabia. In early 2017, initiatives from their respective companies. we ramped up our existing local content effort China in particular is a strategic market for SABIC, with the establishment of the Local Content and and we will be looking at a range of opportunities The meeting agreed on the importance of Business Development Unit (LCBDU). It seeks to to expand our presence there, including building leveraging expertise from global chemical provide opportunities for investors, especially on our current joint venture with Chinese companies, and encouraging more countries young people and entrepreneurs, who want to petrochemical major Sinopec. to join hands in addressing global sustainability develop their businesses in leading edge sectors. issues, and developing innovative solutions. We are also looking at new horizons in Africa and The LCBDU spent most of its first year preparing in Latin America, which both represent potentially SABIC’s commitment was reiterated with an offer the groundwork for ‘Nusaned’, an ambitious new major opportunities for SABIC. to take the lead in WPC by providing a platform initiative that will be rolled out early in 2018. It will for developing global initiatives and by involving Our singular approach to such ventures makes increase localization of industrial technologies, help more Chinese chemical players. SABIC an attractive partner, both to host nations create new jobs, increase exports, and turn national and to their own producers. When SABIC enters companies into global companies. a market, the company behaves less like a typical foreign investor than like a local player, seeking always to integrate with the existing economy and community, and serve local market demands. SABIC 18 ANNUAL REPORT 2017 OVERVIEW AND STRATEGY 19

ENABLING SAUDI VISION 2030

Saudi Vision 2030 sets transformational aspirations for the Saudi economy. Raising small-medium enterprises’ contribution to GDP from 20 percent to 35 percent, cutting unemployment from 11.6 percent to 7 percent, and increasing non-oil exports’ share of GDP from 16 percent to 50 percent.

While SABIC’s contribution to the development of the Saudi economy, both directly and indirectly, is well-established and widely recognized, Vision 2030 calls for a whole new level of commitment. In January 2017, in a major initiative signaling Further SABIC contributions its readiness for that new commitment, SABIC to Vision 2030 this year included: announced the establishment of its Local Content Business Development Unit (LCBDU) – a dedicated SAUDI PIPES FOR NATIONAL function to align SABIC’s 2025 strategy with Vision WATER COMPANY 2030, and: SABIC’s portfolio of plastic pipes was preferred to –– Develop programs to enable local content metal, after discussions and technical evaluations creation, leveraging SABIC’s portfolio of products, with the National Water Company (NWC), a joint procurement spend, capabilities, relationships, stock company seeking a sustainable solution for assets and technologies. the Kingdom’s water sewerage network. –– Coordinate and act as an interface for all local SABIC teams worked with NWC exploring technical content-related efforts across all SABIC specifications, with grade PE100 HDPE P6006 found businesses/functions. to be suitable for the project, whose initial tranche in –– Build partnerships and coordinate with Riyadh will benefit 1,000 houses. In addition to governmental institutions, financing agencies and supporting the aims of Vision 2030, the SABIC pipes industry stakeholders, in pursuing Vision 2030 will also cut costs and installation time, improve aspirations. performance, save on maintenance, and bring local LCBDU is led by the new LC Council, which is chaired –– Promote SABIC and Saudi Arabia to encourage pipe networks up to the highest global standards. global investors’ support for the localization by the CEO, with four Executive Vice President agenda. members. The Council’s role is to streamline Facing page: SABIC’s sustainable solution for water sewerage –– Disseminate SABIC’s world-class practices and steering and decision-making. It has established NEW LOCAL PLANT OPENED networks will initially benefit 1,000 houses in Riyadh. a network with the government and other private BY JAPANESE SUPPLIER experience with other companies in the Kingdom. Bottom left: The Local Content Business Development Unit firms to ensure alignment of goals and programs. November 15 saw the opening of a new plant in seeks to disseminate SABIC’s world-class practices with In its first major initiative, the LCBDU laid the by one of SABIC’s strategic suppliers, other companies in Saudi Arabia. groundwork for a new program, “Nusaned,” SABIC also this year: Ebara Corporation of Japan. –– Developed 12 downstream business initiatives Above: SABIC is ideally placed and is fully committed to conceived with Vision 2030 in mind. The program is helping lead the way to the realization of Vision 2030. the first localization engine that connects all (eithg polymers, four chemicals). Ebara is one of the earliest investors to get behind industrial development stakeholders in Saudi Arabia –– Progressed 22 opportunities, of which six were SABIC’s LCBD initiative with the aim of developing to partners under one umbrella and creates a proper realized (Ravago Middle East, UAC, GDI, Nama our Kingdom-based supplier base, reducing our ecosystem for success. Nusaned consists of four key Chemicals, TPI and Philips), with estimated capex reliance on imports. SABIC has been importing SABIC helped Ebara establish a manufacturing stages, each a step on the road that takes an idea of SA 2.3 billion. Ebara pumps for its plants for several years, as no base in Saudi Arabia, sharing market analysis and from conception to realization. –– Supported 15 new investors to drive the local manufacturer could meet the specifications. streamlining processes. localization of goods and services with an Now, under the umbrella of the new LCBD initiative, –– Entema welcomes ideas and opportunities, investment of SA 568 million and total expected “TRANSFORMING HR” FORUM analyzes and evaluates them, and assesses job creation of 1,028 (332 Saudi). October this year saw a three-day forum, hosted by their viability. –– Increased local procurement by introducing SABIC at its Riyadh headquarters, under the theme –– Da’aem offers a tailored support package, 15 qualified local manufacturers. “Transforming HR: Enabling Saudi 2030 Vision.” with feed materials allocation and price, product –– Provided steer and input to ongoing offtake and technical support. industrialization efforts, including the Yousef Al-Benyan, SABIC Vice Chairman and CEO, –– Investment funds can be enabled through National Industrial Strategy and National highlighted the importance of public and private partners and new channels for economically Logistics Strategy. sector cooperation in developing the nation’s feasible projects graduated from the program. human resources. He stressed the company’s full All of this contributed to SABIC’s success in winning –– Muahal sees SABIC help develop workforce commitment, saying: “At SABIC, we have established this year’s Ministry of Commerce and Investment capabilities to empower success for new local or a dedicated unit for the development of local Award for Best SME Support in the Kingdom. foreign investments in Saudi Arabia. industrial content, not only to support domestic industries, but also to contribute to the realization of the objectives of Saudi Vision 2030.” SABIC 20 ANNUAL REPORT 2017 OVERVIEW AND STRATEGY 21

BOARD OF DIRECTORS

Our new structure is designed to boost the company’s performance and competitiveness, supporting our emergence as the world’s preferred supplier of chemicals and helping Saudi Arabia DR.ABDULAZIZ YOUSEF ABDULLAH SALEH ALJARBOU AL-BENYAN deliver its ambitious and pioneering Chairman Vice Chairman and Chief Executive Officer Vision 2030.

DR. FAHAD ROBERTO CALUM ABDULLAH DR. KHALED ABDULAZIZ MOHAMMED ABDULLAH GUALDONI MACLEAN MOHAMED HAMZA HABDAN TALAL AL-NAHAS AL-MUBARAK AL-ISSA AHMED NAHAS AL-HABDAN Board member Board member Board member Board member Board member Board member Board member SABIC 22 ANNUAL REPORT 2017 OVERVIEW AND STRATEGY 23

OUR GLOBAL MIDDLE EAST AND AFRICA ASIA OPERATIONS

Headquartered in Riyadh, Saudi Arabia, SABIC employs more than 34,000 people and operates in around 50 countries. Its extensive network of EUROPE regional offices and operational centers throughout the Americas, Europe, Middle East/Africa and Asia support global production and sale of a wide range of chemicals, commodity and high performance plastics, agri-nutrients and metals.

OPERATIONAL CENTERS

1

3+ AMERICAS

7+

REGIONAL OFFICES

15+

AMERICAS EUROPE MIDDLE EAST Distribution, Storage Facilities ASIA and Logistical Hubs: Morocco, Technology and Application Facilities: Technology and Application Facilities: AND AFRICA Technology and Application Saudi Arabia, South Africa, Turkey. United States of America. The Netherlands, . Global Headquarters: Facilities: China, India, Japan, Saudi Arabia. South Korea. 25+ Manufacturing and Compounding Manufacturing and Compounding Companies: Argentina, Brazil, Canada, Companies: Austria, Belgium, Technology and Application Manufacturing and Compounding Mexico, United States of America. , Italy, Netherlands, Spain, Facilities: Saudi Arabia. Companies: China, India, Japan, . Singapore, South Korea, Thailand. International Subsidiaries and Sales Manufacturing and Compounding Offices: Argentina, Brazil, Canada, International Subsidiaries and Sales Companies: , Saudi Arabia. International Subsidiaries and Mexico, United States of America. Offices: Belgium, Czech Republic, Sales Offices: Australia, China, India, Denmark, Finland, , International Subsidiaries Indonesia, Japan, Nepal, Pakistan, Distribution, Storage Facilities and Germany, Greece, Hungary, Italy, and Sales Offices: , Ethiopia, Philippines, Singapore, South Korea, Logistical Hubs: Argentina, Brazil, The Netherlands, Poland, Russia, Kenya, , Malaysia, Morocco, Sri Lanka, Thailand, Vietnam. Canada, Mexico, United States Spain, ,United Kingdom. Saudi Arabia, South Africa, Tunisia, of America. Turkey, United Arab Emirates. Distribution, Storage Facilities Distribution, Storage Facilities and Logistical Hubs: Australia, and Logistical Hubs: Austria, Belgium, China, India, Japan, Malaysia, Czech Republic, Estonia, France, Singapore, South Korea, Germany, Greece, Hungary, Italy, Thailand, Vietnam. The Netherlands, Poland, Russia, Spain, Sweden, United Kingdom. SABIC 24 ANNUAL REPORT 2017 25

PETROCHEMICALS 26 OUR BUSINESSES SPECIALTIES 27 AGRI-NUTRIENTS 28

METALS 29 SABIC 26 ANNUAL REPORT 2017 OUR BUSINESSES 27

PETROCHEMICALS SPECIALTIES

SABIC won the prestigious Best Producer Recognizing our customers’ reliance on products ABDULRAHMAN Award in the Polypropylene category at the annual DR. ERNESTO and solutions that, in many cases, are genuinely AL-FAGEEH European Plastics Converters event. OCCHIELLO unique, we took steps this year to ensure reliable supply. In order to meet growing demand, we are Executive Vice President Moreover, SABIC utilized previously flared Executive Vice President building new capacity for ULTEM™ and NORYL™ Petrochemicals hydrogen and joined the hydrogen network, Specialties resins. With ULTEM™ resins, we are making a generating value to the company by maximizing strategic investment to increase capacity in Asia the usefulness of valuable natural resources. to supplement our current capacity in the Americas As part of its global transformation SABIC also introduced a market-facing packaging and Europe. New manufacturing capacity is innovation center to support customers with This was a year of volume and expected to go online in the first half of 2021. We are journey, Petrochemicals continued tailored solutions. revenue growth. We are leaders also adding capacity in our NORYL™ resin product line in Europe by the end of 2019. to build customer intimacy through Global growth continued with the approval of a in nearly three-quarters of our new project in China, in the existing We continue to push the boundaries of innovation, multiple fronts, including the launch of 50-50 joint venture with SINOPEC SABIC Tianjin product portfolio, creating value developing several new products and technologies several newly developed innovative Petrochemical Co. Ltd; the launch of a new ultra- for our customers by accelerating this year and making key investments in new modern polypropylene extrusion line and pilot plant capabilities, reinforcing our position as a solutions, new production capabilities, in Geleen (The Netherlands); commercialization of innovation that addresses their differentiated, high-value material-and-processing enhanced supply chain efficiencies, new POM, PMMA and ABS products in Saudi Arabia; hardest problems while focusing solutions provider. and awarding of an EPC contract for the third They include: an extensive portfolio of new materials and improved sustainability plant at United, with a nameplate on reliable fulfillment. for a variety of additive manufacturing processes, capacity of 800,000 tons/year. performance, while continuing to including large format, enabling designers to meet develop talent globally and vigilantly Meanwhile SABIC’s olefins plant in Wilton (UK), specific functional requirements; an additional began cracking shale gas ethane, transported from investment in composites technology to drive the maintaining our safety standards. the US Gulf. The cracker is now a world leader in THE YEAR full industrialization and automation of feedstock flexibility, with ethane-processing rates This year, healthy volume and revenue growth manufacturing of forms at mass-production scales; exceeding all expectations. were testament to the success of Specialties in and launch of a new copolymer, LEXAN™ CXT resin, cementing its status as the home of unique product for optical lenses and sensors, key to the A debottling project was completed at THE YEAR offerings within SABIC. We continued to work performance of internet-connected devices. SABIC’s Petrokemya -II, bringing successfully, both independently and in cooperation Petrochemicals progressed this year on a number of annual production to 60,000 metric tons/year. with global customers, to develop the materials to plant investments and safety improvement initiatives A de-bottlenecking project at the Saudi Kayan turn today’s innovative designs into tomorrow’s THE FUTURE in Europe and China as well as in Saudi Arabia, driving and ethylene glycol plants aims game-changing products. We will continue to create value for customers, value for our customers. There were also new for a 40 percent increase in nameplate capacity. concentrating in particular on three key aspects: solutions and products, productive collaborations with customers, and strong employee engagement, THE FUTURE THE HIGHLIGHTS –– First, customer-centricity. Focusing on our customers and their needs sharpens our ability to deliver the even as we accelerated our journey towards supply As the world’s manufacturers continue designing Over the year, Specialties reinforced its market service experience they prefer and deserve. chain and sustainability excellence. new products to meet the world’s needs more position in the highly sought-after, differentiated –– Second, unique solutions. We will continue to efficiently, more economically and in more thermoplastic segment, with products that include build our status as a premium provider of highly THE HIGHLIGHTS sustainable ways, we will continue developing a portfolio of specialty compounds delivering a specialized solutions in our core markets. We will Consistent with SABIC’s stringent EHSS policy, the the innovative solutions that turn those range of specific qualities and capabilities. new methyl methacrylate (MMA) plant at SABIC’s help our customers solve their hardest problems by designs into reality. They include: NORYL™ resins – which deliver affiliate, SAMAC, recorded 20 million safe man hours bringing our knowledge of specialty thermoplastics outstanding capabilities for automotive, electronics, with zero lost work day injuries when it was SABIC will continue to work ever more closely with to bear on their most pressing needs. energy, and water management applications; completed in March. Besides, SABIC’s Ibn Sina our customers, to help them serve theirs ever –– Third, fulfillment. As a business that operates NORYL™ oligomers – a key enabler of next-generation affilliate began the commercial production of a new better; to invest in new plants and people skills; to in the spirit of continuous improvement, we focus constantly ensure that safety is integral to all over high-performance electronics, including high-speed, on being a reliable partner to our customers. plant producing PolyOxyMethylene (POM), first ™ ™ operations; and to develop solutions that make the digital-printed circuit boards; ULTEM and EXTEM in-kind in Middle East and Africa, recording more As a major industry player in the segments we serve, world better. We will maintain our mission to be the resins – two unique products delivering unrivaled than 12 million safe man hours without loss time crucial to our customers’ success through the preferred world leader in chemicals, by delivering heat resistance for applications where extreme injury and zero environmental issues. unique solutions we provide, we are committed to ‘Chemistry That Matters™’. temperatures could impact performance or safety; New solutions for pipe and wire & cable applications and specialty compounded products characterized ensuring that the market can trust us to deliver the were introduced when SABIC’s Sharq affiliate began by demanding combinations of thermomechanical innovation, volumes, and quality they expect. producing new LLDPE grades. with electrical or optical properties. SABIC 28 ANNUAL REPORT 2017 OUR BUSINESSES 29

AGRI-NUTRIENTS METALS

well protected by intellectual property rights, engagement, talent management, and leadership ANAS KENTAB and the new products have received very positive MOHAMMED improvement-and-effectiveness programs. Executive Vice President customer feedback. AL-ZAHRANI For better plant operations, a number of initiatives Agri-Nutrients * New and improved formulations have also been President, Hadeed were taken to control fixed and variable costs. Hadeed launched for: achieved a 13 percent saving in manufacturing cash cost this year. In addition, manufacturing –– A new tuber (potato) specific NPK grade and capabilities were improved through enhancement in two new nitrogen phosphate plus sulphur (NPS) hot strip mill productivity. We will relentlessly pursue fertilizer grades. Our focus this year was to –– Several water soluble fertilizers, through third Technology Management contributed by completing operational excellence, maintain our party cooperation. strengthen market share locally and a few product and process optimization initiatives efforts to develop new sustainable –– Water soluble fertilizers – a new market for SABIC, that helped optimize costs. with sales in 2017 to South Asia in July and to actively explore new markets globally, Logistics terminal facilities were repaired and products, and continue to seek Middle East markets in November. and also to drive operational and renovated, and a new wrapping machine was –– Urea calcium sulphate – first trial of the new grade growth opportunities globally to installed to replace coils manual packing process. was conducted in May 2017, second trial of the organizational efficiency to achieve In addition, Hadeed enhanced its material handling serve our customers and meet new grade plus zinc and boron was conducted sustainable cost leadership and process efficiency, saving around 42 percent of total in December, besides ready for field test, lab test ever-growing demand. process cost. and pre marketing. enhance our competitiveness. Sustainability continued to be a priority. Using Agriculture field days in Saudi Arabia helped to industrial wastewater from an iron-making unit at promote sustainable agricultural development for our electric arc furnaces has helped reduce water THE YEAR key strategic crops like date palms and tubers. THE YEAR consumption; a Furnace System Optimization Agri-Nutrients continued to develop new We continued to partner with the Ministry of Energy, 2017 was another challenging year for our Metals Process saved energy and improved yield and formulations, construct new plants, and build Industry and Mineral Resources to take a field business unit, with a subdued market and limited productivity; and life-cycle assessment helped ever-deeper relationships with the farmers who caravan to various regions to engage with farmers, government infrastructure spending impacting gauge environmental impact of production, usage, use our products. The agreement signed with the promote SABIC products and solutions and provide productivity and sustainability KPIs. The integration and recycling for three newly developed products. guidance on how to get the best out of them. Ministry of Energy, Industry and Mineral Resources of Metals and Hadeed was completed successfully. Despite the challenging market conditions, Hadeed to manage the Sustainable Agriculture Research This strategic move enabled us to enhance the levels expanded the sales map for long products, and Development Center (Estidamah) for its first five THE FUTURE of agility and efficiency in our manufacturing and exporting 95KMT to seven countries. Sales of flat years recognizes the ongoing commitment to our We will continue to work on developing innovative commercial efforts. product to the oil-and-gas sector were up 23 percent fundamental mission: continually helping our formulations to target particular characteristics of Following the business restructure, new prospects year on year, with a 32 percent lower finished customers to produce more and better food for selective crops more closely, with a view to helping and markets have been identified. For the first time products inventory compared to that of 2016. the world’s growing population. farmers boost the yield and quality of their produce. in Hadeed’s history, SABIC exported billets, besides We will redouble our efforts to reach out penetrating the North African market with cold- THE FUTURE to customers, developing a clearer picture of the THE HIGHLIGHTS rolled coils. The new organizational structure and the Hadeed practical and commercial issues they face and Our nitrogen business successfully boosted Transformation Project will enhance our business’s equipping us with the knowledge we need to help revenues through market optimization across THE HIGHLIGHTS effectiveness and efficiency, increasing our the value chain. them address those issues more effectively. In pursuit of SABIC’s 2025 strategy, we focused on four competitiveness and aiding strategic focus, as well as getting the right capabilities to support strategy, Numerous products reported improved sales for We will also continue to work on improving and key areas fundamental to our business performance: the year, including diammonium phosphate (DAP) improve agility, flexibility and responsiveness, and expanding our production capabilities. Although –– Business efficiency – through improving our – up 17 percent year on year; nitrogen, phosphorus, enable business growth. we have achieved significant improvement in recent commercial capabilities, differentiating product potassium (NPK) – up 100 percent year on year; years, there is always room for further progress in offerings, and business transformation. We will continue to extend our product portfolio and technical grade urea (TGU) – up 125 percent reducing waste and cutting cost, improving safety –– Cost optimization – through enhancing with new sizes and grades. We will also continue to year on year. and preventing breakdowns, and optimizing our conversion costs and optimizing management explore new international markets and build new The year also saw the launch of a new nitrogen production and supply-chain processes. We aim to of working capital and capital expenditure. distribution channels. do this efficiently, and in ways that minimize our sulphur fertilizer group of products combining urea –– Innovation – through more closely integrating In parallel, we will continue working with government environmental impact. and calcium sulphate, which avoids the security creative, innovative, and business development agencies to help mitigate potential risks, enhance issues that restrict ammonium nitrate options in initiatives into the business’s activities. our local market share, achieve premium prices, and many markets. The manufacturing process has been –– Human resources – through implementing outperform our peers, enhancing Hadeed’s position diversified strategic workforce planning, as a pioneer in the steel industry, locally and regionally.

*Metals products are supplied under the SABIC brand through Hadeed, a fully owned manufacturing affiliate of the company. SABIC 30 ANNUAL REPORT 2017 31

TRANSPORTATION 32 OUR CORE AGRI-NUTRIENTS 34 CONSTRUCTION 36 MARKETS MEDICAL DEVICES 38 PACKAGING 40

CLEAN ENERGY 42

ELECTRICAL AND ELECTRONICS 44 SABIC 32 ANNUAL REPORT 2017 OUR CORE MARKETS 33

TRANSPORTATION

Innovative SABIC materials are helping minimize the environmental SMARTER MATERIALS impact of our insatiable desire to travel, and offering designers new FOR A BRIGHTER FUTURE A new LEXAN™ resin grade enables new, distinctive, options for differentiation. complex headlight bezels with enhanced aesthetics – highly valued by motor vehicle manufacturers eager for the design touches that will give their Left: SABIC’s innovative materials product standout appeal in an overcrowded and reduce energy requirements. highly competitive market. Below: The award-winning injection- SABIC has also added two new LEXAN™ XHT resin molded instrument panel carrier from BMW’s 2017 MINI Countryman. grades, which offer improved flow at high temperatures compared to other high-heat Below right: SABIC materials help make a difference in aesthetics and design. materials. Though light-emitting diodes run relatively cold, their headlamps can still generate a lot of heat. Many high-heat polycarbonates suffer flow problems, and they generally cost more than regular materials. The improved flow offered by the new grades allows production of high-quality parts, and can reduce overall system cost as well.

EASY AND QUICK, LIGHT AND STRONG FROM A TO B WITH STYLE Livrea Yacht’s 3D-printed hull: lighter, stronger, AND SUSTAINABILITY and manufactured at a fraction of the cost and in half the time. Too many of the world’s great cities now testify to the downside of our apparently limitless desire A section of a yacht hull from Livrea Yacht was to be somewhere else. Peering through the murk, printed on SABIC’s BAAM® (Big Area Additive breathing in toxic fumes, it’s easy to forget that Manufacturing) machine at its Center of travel should be about liberation, exploration, fun. Excellence for Additive Manufacturing in And it’s not just people. The world’s skies and Pittsfield, Massachusetts. oceans teem with ever-increasing flows of goods A collaborative design effort uniting SABIC, Livrea on the journey from production to consumption. technology, delivering benefits including a 15 EMPOWERING DIFFERENTIATION Yacht, Autodesk and Tru-Design, the solution SABIC ingenuity can’t solve the problem – but it percent weight reduction over a conventional BY DESIGN combined Autodesk Fusion 360 design software, ® ™ can and does ease the impact, with innovative new solid plastic component. After decades of creating highly specialized SABIC BAAM expertise, and two THERMOCOMP materials that reduce energy requirements, both in AM materials: a carbon-fiber-reinforced PPE Also a finalist was an innovative backlit chrome solutions for aircraft and rail interiors, market production and then on, throughout their working (polyphenylene ether) compound for the outer emblem for vehicles like Chevrolet’s Camaro, drivers shifted the focus this year toward aesthetics lives. Materials, what’s more, that also offer greater structure and a carbon-fiber-reinforced PEI Silverado, and Colorado models. This is a unique and design. Even in a supposedly commoditized scope to manufacturers and their designers, (polyetherimide) for the inner lattice support part design that, with help from high-performance environment like a train or plane interior, design enabling new products that deliver a competitive structure. No costly molds and prototyping, LEXAN™ polycarbonate resin, achieves the desired touches can make all the difference to the customer edge: benefiting the bottom line as they help just a better result: reducing costs and lighting effect and aesthetic. Production of the experience – and SABIC materials can empower the protect the environment. increasing efficiency. emblem with SABIC’s material takes place using a race for differentiation. two-shot molding process that eliminates the need ™ ENHANCING AESTHETICS, For example, materials such as JET PANEL sheet Below: SABIC’s THERMOCOMP™ AM compounds for large for excess material and saves energy. with fully customizable features help designers to format additive manufacturing address unique customer CUTTING WEIGHT application requirements. create one-of-a-kind solutions for their customers. SABIC’s ongoing collaborations with manufacturers Another was the thin-wall fascia of the 2018 ® SABIC’s extensive portfolio of light-weighting and part-makers continued to help break new Škoda Octavia. This part is molded with SABIC PP materials was also extended this year with the ground in vehicle innovation this year, as recognised compound (polypropylene). This e-compound’s high introduction of a new grade of ULTEM™ foam. Lighter at this year’s Society of Plastics Engineers’ melt-flow, stiffness, and impact characteristics help than ever, and fully compatible with thermosets and Automotive Innovation Awards. reduce the amount of material required for molding by around 10 percent. It also has a lower density metal laminates, the new formulation provides a Winner of the Body Interior category was the than comparable PP compounds for bumpers, which core for ‘sandwich’ construction, lending itself to a injection-molded instrument-panel carrier from delivers additional weight savings. wide range of transport interior applications as well BMW’s 2017 MINI Countryman. It was made using an as many other markets in need of lightweight, innovative process and STAMAX™ resin – a high flow, compliant structures. long-glass-fiber-reinforced polypropylene material – combined with a dedicated copolymer solution in a structural-foaming process with core-back SABIC 34 ANNUAL REPORT 2017 OUR CORE MARKETS 35

AGRI-NUTRIENTS

Of all the issues facing us in the 21st century, perhaps none BUSINESS COOPERATION NEW PRODUCTS FOR MULTIPLE NEEDS is more pressing than hunger. In SABIC’s collaborative efforts BRINGS NEW PRODUCTION SABIC added Technical Grade Urea (TGU) to The Ma’aden Wa’ad Al Shamal Phosphate Company its Agri-Nutrients portfolio to achieve greater to help feed the world, our ingenuity is a valuable resource. was operationally launched this year. diversification, add more value, and support the company’s sustainability objectives. This major new joint venture saw SABIC join with Ma’aden and Mosaic in the construction of a new SABIC TGU is produced at SABIC’s Al-Bayroni urea GREATER NEEDS DEMAND WORKING FOR SECURITY, plant, with a potential production capacity of 3 plant using Rotoformer technology, which enhances GREATER EXPERTISE SAFETY AND SUSTAINABILITY million metric tons, to help meet ever-growing the product’s physical and mechanical properties. As populations continue to rise and land comes The Sustainable Agriculture Research and demand for diammonium phosphate (DAP), The plant can produce up to 80,000 metric tons of under ever-greater pressure from urbanization, the Development Center (Estidamah) was initiated in monoammonium phosphate (MAP), nitrogen, TGU a year – a 46 percent pure urea that is targeting challenges of meeting the demand for food, feed, 2008 when SABIC, with the support of the Ministry phosphorus, potassium (NPK) and nitrogen environmental control application where TGU fiber, and fuel become steadily more pressing. This of Energy, Industry and Mineral Resources, phosphate plus sulphur (NPS) products. solution is used NOx in diesel engines and heavy oil-based power generators. year, the ’ annual report on world established a fund to create the center. Located in Commercial production of ammonia began in food security and nutrition brought the sobering Riyadh Techno Valley on the campus of King Saud January 2017, pre-commissioning began in July, TGU sales recovered this year as sales to South Asia news that, after falling steadily for a decade, world University, the center was built to perform applied and the first SABIC shipment of 30,000 metric tons began for the first time, and European sales were hunger is once again on the rise because of research on innovative techniques for agriculture. of Dark DAP was dispatched in November. up significantly. The company is currently considering population growth. The center’s primary focus is on increasing proposals to expand production capacity. As ever, applied expertise can help. SABIC production to improve food security in Saudi Arabia; scientists continue to develop selective grades improving quality and food safety, while minimizing of fertilizers and crop solutions that help turn given pesticide use; and enhancing water-use efficiency resources of land, water, and sunshine into better, for sustainability benefits. Areas currently under Below: Estidamah’s research and more-reliable food supplies. This is not just lab investigation include climate control, irrigation and focuses on increasing expertise. A significant proportion of Agri- plant nutrition, integrated pest management, and production to improve food Nutrients’ efforts is devoted to getting into crop management. security in Saudi Arabia. the field, talking to the people who work the land, Right: SABIC continues to Newly developed water soluble formulations and helping them gain the skills to put SABIC’s develop selective grades of targeted to the Saudi Arabian market were tested at fertilizers and crop solutions. expertise to the best possible use – for their Estidamah, and proved to boost yields by around 30 benefit, their communities, and the world at percent compared to current practices. Further tests large. Nowhere does ‘Chemistry that Matters™’ in the field with customers are being conducted, with matter more. crop-specific products for tomato, cucumber and bell pepper. New formulations for date palm and olive trees in 2018 will expand SABIC’s product offerings.

Estidamah’s primary focus is on increasing production to improve food security in Saudi Arabia, while enhancing water-use efficiency for Above: SABIC’s innovative agri-nutrient products help sustainability benefits. improve quality of yield. SABIC 36 ANNUAL REPORT 2017 OUR CORE MARKETS 37

CONSTRUCTION

The world is on a building boom. As constructors work to meet the needs of our ever-growing populations, SABIC materials expand their design options and help them turn vision into reality. Left: SABIC plastics have gained approval to be used to replace existing water-pipe networks in a major new project in Riyadh. Below: SABIC’s energy-absorbing rebars help buildings withstand earthquakes.

TRANSFORMING PIPE-NETWORK SPECIALIST STEELS TO MEET STANDARDS SPECIAL CHALLENGES After extensive technical testing in collaboration SABIC reached an innovation milestone this year with Saudi Arabia’s National Water Company, when it developed a new range of 12 mm reinforcing SABIC plastics have gained approval to be used to bars (rebars) for high-level seismic-resistant design. complement existing water-pipe networks in a major These energy-absorbing rebars can be used in the new project in the Laben district in west Riyadh. construction of buildings designed to withstand earthquakes. The new enhanced product, which was The project is designed to connect fresh water Above: SABIC scientists and engineers also commercialized this year, is of ASTM (American networks in the newly developed areas of Riyadh. work with architects and builders to help Society for Testing and Materials) A706 standard. enable solutions to brand-new challenges. SABIC® HDPE is to be used in the first of 14 projects scheduled to transform Laben’s network by the end Designed to reinforce concrete structures in BETTER MATERIALS TO HELP BUILD ENABLING SUSTAINABLE SOLUTIONS of 2018, helping reduce installation time and reduce areas prone to seismic activity, the rebars are part A BETTER FUTURE SABIC is intensifying efforts to provide suppliers costs. SABIC’s advanced products are playing a of SABIC’s metals product portfolio and are being As our once-rural world becomes ever more and customers in the construction industry with major role in fulfilling the Saudi Vision 2030, which specified for projects in earthquake- urbanized, the world looks to materials producers innovative alternatives to conventional metal-pipe emphasizes new solutions to save water. vulnerable regions. to enable buildings that work well, look great, and systems through tough, flexible plastic-pipe SABIC’s innovative pipe solutions are also being Along with supplies of high-quality carbon-wire last for a long, long time. SABIC materials, from solutions that deliver clear advantages in terms used in the aquaculture industry in Saudi Arabia rods, such materials enable the construction of metals to innovative plastics and resins, are of both cost-effectiveness and sustainability. for manufacturing fish cages and related fishing earthquake-resisting buildings. An expanding range equipping architects and builders worldwide with But it is not just about pipes, or offering substitutes structures, discovering new uses for its PE100 of options and sizes continue to fulfill our the flexibility and high performance they need to for existing systems. SABIC scientists and engineers pipe grades. differentiation strategy in the region. construct the world of the future, however visionary work with architects and builders to help enable their ambitions. And, thanks to SABIC’s advanced SABIC also made significant strides in the sector solutions to brand-new challenges – helping turn plants and efficient production, at low cost and with with a new low-sagging pipe grade for large pipes, creative dreams into efficient, effective realities. minimal environmental impact too. and a new generation HDPE pipe grade with Jansen AG in Switzerland, for example, uses SABIC® improved resistance to chlorinated disinfectants HDPE (high-density polyethylene) for geothermal that fulfils the stringent international norms for probes to collect geothermal heat for residential PE100 and PE100RC materials (PAS1075). heating and cooling systems. It also allows significant cost-out for the contractor during installation, helping deliver a competitive edge as well as a sustainable solution. SABIC 38 ANNUAL REPORT 2017 OUR CORE MARKETS 39

MEDICAL DEVICES

Ever-larger and longer-living populations bring opportunities for medical STUDY AND ANALYSIS INSPIRE device manufacturers, and place a premium on SABIC’s lighter, stronger, NEW POSSIBILITIES SABIC has been working closely with an industry- smarter materials which help them meet the demands. leading firm in engineering and industrial design to analyze a number of market-leading point-of-care diagnostic devices, looking to identify opportunities for SABIC materials to reduce cost and weight without HELPING PEOPLE WORLDWIDE LEAD NEW PP FACILITY TO MEET NEW NEEDS compromising performance. The collaboration Below: SABIC is committed to producing LONGER, HEALTHIER LIVES SABIC this year launched a new polypropylene (PP) resulted in multiple concepts, illustrating “what is advanced materials that can support and All around the world, people are living longer, extrusion facility to meet emerging material empower our customers’ endeavors in possible” for original equipment manufacturers developing the next generation of healthier lives. Increasing, ageing populations bring requirements and market needs. The new facility, and their designers when they work with SABIC lightweight applications. an ever greater need for a wide variety of located at our Geleen site in the Netherlands, next-generation devices. sophisticated new medical devices. supports customers’ needs for advanced materials in the healthcare sector and a variety of other The team also engaged with a leading firm in The healthcare industry, constantly pushing out industries. medical-device design and engineering to study the boundaries of what is possible, practical and future trends in diagnostics and drug delivery. commercially viable, looks to materials suppliers to The new line, using innovative process technology The project delivered detailed device-development ® provide innovative products and grades to meet to produce SABIC PP copolymer products, started roadmaps that helped to generate a wide array of ever more demanding requirements, and enable up in late 2017. Investment in this highly automated new ideas for healthcare product offerings – with an new medical equipment and devices. Increased and technologically sophisticated process eye to future trends. Such active collaboration with resistance to stronger disinfectants and other exemplifies SABIC’s commitment to produce expert third parties in the device-design-and- chemical challenges; enhanced plasticity and advanced materials that can support and empower engineering community helps us focus and fine-tune strength, to enable new designs that provide our customers’ endeavors in developing the next our development efforts, aligning them more closely better patient ergonomics; and – not least – generation of lightweight applications. The new with the challenges the industry faces, and positions lower cost, to deliver competitive advantage. process can help reduce energy consumption SABIC as a leading solutions-provider and proactive through lower processing temperatures and partner that helps our healthcare customers shorter cycle times. develop the next generation of devices.

COLLABORATING TO DEVELOP NEW SOLUTIONS This year, SABIC worked together with Shanghai Shengguang, a leading Chinese plastic injection molder, to highlight the advantages of SABIC’s NORYL™ and LEXAN™ structural-foam solutions for metal replacement in large medical- equipment components. The collaboration demonstrated how SABIC’s structural-foam technologies can deliver greater design freedom, with up to 50 percent weight Above: SABIC supports customers’ reduction, as well as cutting system costs by up needs for advanced materials in the healthcare sector. to 30 percent through the elimination of common Right: Providing better patient secondary operations such as machining and ergonomics through products that pre-painting acid treatment. enhance plasticity and strength. Combining greater design-innovation capability, material-and-process cost reductions, and higher overall performance than traditional metal options, these structural-foam solutions increase our customers’ scope in developing new devices. SABIC 40 ANNUAL REPORT 2017 OUR CORE MARKETS 41

PACKAGING

SABIC ingenuity is finding ever more innovative ways PRODUCTIVITY AND PERFORMANCE SAVING ENERGY, ™ to help the world’s manufacturers protect their products COHERE plastomers (POP) are a new BOOSTING PRODUCTIVITY portfolio of flexible packaging solutions using SABIC® FLOWPACT ™ impact copolymers family without damaging the world we live in. Nexlene technology as a sealing and adhesion has been extended with the introduction of a enabler. The products offer a number of enhanced new polypropylene solution for rigid packaging features in flexible packaging: applications such as containers, caps and closures, and for a wide variety of consumer goods. –– Usage as a sealing layer in multilayer structures. –– Better seal integrity, enabling productivity boost Trials at several manufacturers have clearly through faster line speeds. demonstrated its benefits, with a market-leading –– Usage as an adhesion layer in multiple combination of high stiffness and high impact applications, such as stretch film, silage film, strength. The new product offers customers cling film. savings by way of lower production costs, by –– Excellent puncture resistance at low temperature. enabling thinner walls and fast injection, boosting –– Very high stiffness, and an excellent stiffness/ productivity while cutting energy consumption. toughness ratio. –– Very high tear resistance. The combination of productivity benefits in production and material advantages in use, make POP an excellent “door opener” for the entire product portfolio in the flexible packaging industry.

Facing page: SABIC provides the innovative materials that customers need to create new kinds of packaging. Below: Keeping products safe from damage with innovative materials that even help reduce production costs.

SMARTER PACKAGING, PROCESSING EFFICIENCIES MORE PROTECTION AND PACKAGING PERFORMANCE With ever-increasing flows of an ever-expanding SABIC this year further enhanced its industry leading range of products circling the globe, packaging polypropylene (PP) portfolio for the packaging suppliers need innovative materials that will enable industry with the introduction of two new high flow, them to create new kinds of packaging for new injection-molding grades. Both impact copolymers requirements. Not just the basics, keeping products based on a phthalate-free catalyst. secure on the journey – safe from damage, safe from The new grades offer packaging manufacturers decay, safe from contamination – but more and convertors greater production efficiency, with demanding requirements: materials that will help shorter cycle times and weight savings thanks to reduce production costs, while adding more value, thin wall manufacturing; compliance with in the form of eye-catching designs to help their organoleptic requirements for taste and odor; and customers’ products fly off the shelves. excellent stiffness and higher top-load strength for SABIC scientists devise the solutions, in the form high stackability, enabling faster production cycles of new formulations that do things better, cheaper, along with lower transport and storage costs. Above: SABIC’s new polypropylene more reliably – and enable our customers to do solution is ideal for rigid packaging Developed for thin-walled packaging applications completely new things such as increase food shelf such as caps and closures. for both food and non-food applications, the new life. Formulations, too, that address the challenges products’ excellent balance between high stiffness of the environment: safeguarding the planet while and impact strength makes them ideal for protecting the product. compounding and rigid packaging such as food and dairy packaging (frozen, chilled or ambient), housewares, appliances, toys, caps and closures. Produced in SABIC’s Saudi Kayan facility in Jubail, they will be available for customers worldwide. SABIC 42 ANNUAL REPORT 2017 OUR CORE MARKETS 43

CLEAN ENERGY

CUTTING WEIGHT CUTS EMISSIONS Below: STAMAX™ resins deliver the strength Energy’s environmental impact may be this century’s single biggest and stiffness of steel at a fraction of the weight. As the world’s demand for cars grows unabated, challenge. The innovators working to address it are empowered by the pressure is on manufacturers to develop options ever smarter material options devised by SABIC scientists. that meet demand without harming the planet. Electric vehicles are clearly part of any potential solution; a key challenge is to reduce vehicle weight, enabling extended range and reduced emissions. SABIC expertise equips automakers with material solutions to help meet that challenge. Use of STAMAX™ resin this year enabled Chinese automaker Chery to cut the weight of the inner tailgate structure of its new eQ1 electric vehicle by 40 percent. This low-density long-glass-fiber-filled polypropylene material delivers the strength and stiffness of steel at a fraction of the weight. SABIC also delivered development support with computer- aided engineering analysis, enabling performance- optimization of the part – Chery’s first plastics- intensive tailgate and the first from any Chinese manufacturer. Meanwhile, building further on our portfolio of lightweight material, SABIC also launched a completely new generation of melt-strength product, SABIC® PP-UMS. It has the highest melt strength in the industry, enabling an unprecedented level of weight reduction. It is a pure and clean building block, efficient in processing, with unique foam-ability properties.

SMARTER MATERIALS, COOLER VEHICLES SABIC collaboration with customers this year saw the launch of ULTEM™ ultrathin dielectric films for electric vehicle capacitors. Above: SABIC’s high-performance pipes meet the most Traditional capacitors store energy, but also stringent standards, playing a significant role in the solutions that are being developed. build-up heat in the vehicle’s powertrain, requiring cooling systems. First generation ULTEM™ UTF120 film provides higher energy density than regular MATERIAL PROGRESS TOWARD HIGH-PERFORMANCE PIPES polypropylene films, allowing manufacturers A SUSTAINABLE FUTURE AID CHINA CLEAN-UP to design for higher temperatures, rendering cooling systems unnecessary and enabling the use Of all the challenges facing humankind in trying to China has adopted “Green” as one of its five key of higher-efficiency semiconductor-chip technology. enable a better future for all, those of energy may be pillars, and placed environmental initiatives at the By allowing the capacitor to be positioned close the most difficult to address. Simply, more people heart of “a cleaner, greener, and leaner 13th Five-Year to the chip set, this also offers design flexibility want more of everything – the environment bears Plan.” Arguably the most important – certainly one and reduces impedance. Most importantly, the brunt of the energy needed to provide it. of the most extensive and far-reaching – is an eliminating the cooling system saves weight, ambitious program substituting gas for coal to fuel All around the world, governments grapple with cutting CO2 emissions. the nation’s power plants and heating facilities, to the consequences, most visibly in the form of major reduce carbon emissions and generally tackle the cities so engulfed by foul air that populations air pollution impacting the country’s major cities. struggle to go about their daily lives or, worse, succumb to endemic health crises. Smarter materials Transporting gas demands pipes with high cannot solve the conundrum; but they certainly play performance and absolute dependability. SABIC a significant role in the solutions that are being pipe grades meet the most stringent standards for developed. All around the world, pressure-gas-pipe systems, and are being widely ™ Above: SABIC expertise and materials help automakers ‘Chemistry that Matters ’ is helping address the employed in extensive new networks transporting go electric for a sustainable future. biggest problems we face. natural gas safely to millions of homes throughout the country. SABIC 44 ANNUAL REPORT 2017 OUR CORE MARKETS 45

ELECTRICAL AND ELECTRONICS

We love our devices! We want them smaller, lighter, smarter, and at ever lower prices. Innovative materials from SABIC are helping meet the demand.

EMPOWERING OUR CUSTOMERS ENABLING DATA NETWORK COOL PRODUCTS TO ATTRACT THEIRS OPTIMIZATION THAT DO NOT OVERHEAT As consumer electronics continue to evolve, With increasing numbers of devices online, data Widely publicized fire hazards due to failed lithium- new materials enable innovation that delivers the networks need to become ever better at enabling ion batteries in smartphones and other portable differentiation crucial to competitive advantage. high-speed data transfer with less signal loss and devices drove SABIC’s Asian technology team to In an industry driven by a constant need for things lower latency. focus on developing a new flame-retardant to be thinner, lighter and more energy-efficient, material for use in battery covers. Base-station antennae are at the heart of the SABIC expertise is at a premium. solution. Every base station contains multiple The team’s work resulted in a new material – SABIC materials and skills have played a key role antennae, each including numerous phase shifts LEXAN™ EXL9414 resin – to meet IEC 62368-1: the in the development of many new electrical and that adjust the coverage (range and shape) of a Underwriters Laboratories standard for fire hazard. electronic devices, and innovation continues wireless reception area continuously in response Not only did the new material meet the standard, in a steady stream, from thermal management to the demands placed on it. Optimal phase-shift it also retained other crucial performance to electromagnetic interference shielding to performance depends on both dielectric-constant requirements, aiding its adoption by a leading supporting multi-functionality. With exceptional and dielectric-dissipation performance properties. Asia-based consumer-electronics original processability and colorability and excellent SABIC has developed a special portfolio of equipment manufacturer (OEM). mechanical properties, SABIC’s thermoplastic THERMOCOMP™ compounds with a wide range Since then, other OEMs have adopted the IEC technology helps deliver durability, reliability and of dielectric properties for use in base-station 62368-1 standard, helping sustain robust demand lighter weight, as well as enabling products that are antennae, supporting their ability to maintain for the new material. A clear instance of functionally responsive and visually distinctive. bandwidth and signal strength, and deliver ‘Chemistry that Matters™’ enabling our customers optimized overall network performance. to develop competition-beating products while also helping make the world just a little bit safer.

HELPING DELIVER SPEED AND CONNECTIVITY In an industry driven by a constant With wireless data and digital content delivery need for things to be thinner, lighter expanding exponentially, demand for faster and heterogeneous communications networks and more energy-efficient, SABIC is booming. expertise is at a premium. As companies prepare technology for the coming 5G build-out and the “Internet of Things,” with its sheer proliferation of internet-connected devices, they are pushing at the limits of both circuit-board technology and network capacity. NORYL™ oligomers are at the heart of a new generation of devices, enabling high-speed digital-printed circuit boards for high-performance servers and wireless base stations that help reduce signal loss and enable both server-device miniaturization and higher communication speeds.

Top: NORYL™ oligomers are at the heart of a new generation of devices, enabling high-speed digital-printed circuit boards. Above: THERMOCOMP™ compounds support the ability of base station antennae to maintain bandwidth and signal strength. Right: SABIC materials and skills have played a key role in the development of many new electrical and electronic devices. SABIC 46 ANNUAL REPORT 2017 47 OUR COMMITMENT

CORPORATE SOCIAL RESPONSIBILITY 48

HUMAN CAPITAL 50

INNOVATION AND BUSINESS DEVELOPMENT 52

COMPLIANCE AND RISK MANAGEMENT 56

ENVIRONMENT, HEALTH, SAFETY AND SECURITY 58

MANUFACTURING 60

SUPPLY CHAIN 64

SUSTAINABILITY 66 SABIC 48 ANNUAL REPORT 2017 OUR COMMITMENT 49

CORPORATE SOCIAL RESPONSIBILITY

SABIC and its people engage in a wide range of activities and programs under the banner of corporate social responsibility (CSR) all around the world.

Whether volunteering to help local communities, Left: SABIC Science Caravan toured three cities partnership with the Department of Education and donating to good causes, or empowering future in Saudi Arabia, motivating the next generation various non-governmental organizations, aims to to learn about the benefits of science. generations through educational initiatives, our ensure that no child is disadvantaged in his or her Below: The Lights of Our Future program has CSR efforts always focus on sustainability and reached more than 1,300 Chinese students. educational progress by an inability to clearly see enduring impact. blackboards and teachers. Our global CSR strategy, RAISE (Reputation, Houston employees boosted their own health and Audience, Innovation, Strategy, Endurance), wellbeing with the seventh year of participation in provides the framework. Within that framework, the MS150 bike race – a two-day, 180 mile ride, registered groups and national organizations which this year took place in challenging weather devise their own initiatives and follow them through conditions. The circumstances didn’t prevent them – with financial and other help from Corporate CSR from raising US$12,000 for charity. as needed. The Ottawa, Illinois, site hosted students from RAISE supports communities wherever SABIC Illinois Valley Community College as part of their operates and maximizes the benefits of our CSR Manufacturing Expo Day, an event that gives activities by encouraging employee participation students insight into the opportunities in and volunteerism. This way, the strategy helps to manufacturing. The students got a special look at enable CSR initiatives, on a large scale, anywhere how SABIC operates as a global business and were in the world. exposed to manufacturing operations through tours of the maintenance and compounding areas. SCIENCE AND TECHNOLOGY EDUCATION ENVIRONMENTAL PROTECTION DONATION AND INVESTMENT In Brazil, SABIC’s Campinas site launched a new SABIC has a longstanding and highly successful SABIC this year made a major contribution to a new This year, SABIC donated US$57.5 million in initiative employing a smartphone app to track track record in supporting educational initiatives all flood-defense project near its plant in the community giving (compared to US$46.4 million employee physical activity throughout the year. around the world, aiming to train the next UK. Working in partnership with the UK in 2016). Altogether, SABIC has invested more than Whether biking, running, or walking, employees generation in the skills they will need in the future government’s Environment Agency, SABIC US$800 million in socially responsible projects will be racking up healthy kilometers knowing that and to help promote less-technical talents, such as contributed £5 million – almost half of the total £11 and programs over the past 15 years. a collective 35,000 km will trigger a substantial communication, networking, and teamwork. Specific million budget – to build flood defenses around the charitable contribution from the company to a programs this year included: mouth of the River Tees and Greatham Creek: a local organization. SERVING THE COMMUNITY broad, flat, swampy area always at risk and –– Girls Day – a special initiative in Bergen Op Zoom, Our strategy for serving communities focuses on previously hit by serious flooding caused by tidal the Netherlands, to break down gender specific, strategic, timely issues – issues where the surges. SABIC funding made phase two of the WATER AND SUSTAINABLE AGRICULTURE stereotypes and encourage girls interested in a right intervention at the right time can deliver real, overall project possible, and the resultant defenses Following a number of meetings with city officials to future in science and technology. Some 27 young visible, and above all enduring benefits to the will offer protection to a less-affluent local investigate how SABIC could best help the local girls learnt from SABIC employees – both men and communities in which we operate. SABIC’s community and local wildlife. community cope with the worst drought in South women – about life as an employee at a chemical commitment to volunteerism is long established and Africa’s history, the company focused its efforts on manufacturing plant. This November, SABIC teamed up with local Family deeply entrenched in our organization’s culture. Boundary Primary – a school in a disadvantaged –– Lights of Our Future – this June in China, SABIC Service Centers in Singapore to arrange a morning area suffering from high leakage levels due to old When Hurricane Harvey impacted Houston, Texas, extended this well-established program beyond beach clean-up. The program both enhanced the and dilapidated plumbing. A comprehensive repair in September, more than 40 SABIC employees got the campus limits with the Lights of Our Future environment and helped primary school children program addressed the leakage, reducing wastage together at the NRG Stadium to create and run an River Conservation Program, which joined with understand the impact of waste and the and the school’s bills – leaving more to spend on emergency shelter for displaced people, while local authorities to look into ways to conserve environmental challenges of a “throw-away” society. other essentials – and setting up irrigation from another group helped the Best Friends Animal rivers in the communities where we operate. As of greywater-rainwater tanks to irrigate the school’s Society rescue pets and reunite them with owners. November, the Lights of Our Future program has HEALTH AND WELLNESS new vegetable garden. reached more than 1,300 Chinese students and In December, SABIC sites throughout Europe In November, SABIC employees in Thailand fitted a received recognition with awards from local marked International Volunteering Day with large water filtration system at Bann Khao Hin organizations. celebrations and the adoption of SABIC’s global Nursery and Primary school, assuring a reliable –– Science Caravan – this year’s caravan went to SABIC DONATIONS policy of encouraging employees to devote eight supply of fresh water for up to 500 people. Extra three cities in Saudi Arabia: Jouf, Araar, and Jazan, (US$) hours a year to SABIC-sponsored-or-approved filters were provided to ensure that the system will bringing together almost 200 volunteers and over volunteer activities. function for a decade or more. 12,000 visitors in a series of workshops, interactive activities, and exercise and training In India, SABIC’s They See, They Learn initiative sessions. The caravan motivated the next continued to deliver eye-care and free spectacles to 57.5m generation to learn more about the benefits of school children in Delhi, Bengaluru, Chennai, 2016: US$46.4m science and learning in general. Vadodara, and Mumbai. The program, run in SABIC 50 ANNUAL REPORT 2017 OUR COMMITMENT 51

HUMAN CAPITAL

Our talented and committed people are key to everything we do for CONTINUOUS LEARNING LEADERSHIP WAY SABIC Academy in Riyadh remains our global center This year, SABIC embarked on an “Our Leadership our company, our partners, our innumerable global customers, and of learning where we advance our knowledge, share Way” journey to help achieve its 2025 strategic the future of the world. expertise and develop our people. To maintain a foundations, specifically talent development and culture of continuous learning, we provide transforming organization and culture. A Corporate exceptional training and career-development HR task force has been focusing in particular on opportunities. The curriculum for new employees developing a leadership strategy to build capacity To achieve our vision to be the preferred world focuses on long-term development at the SABIC and capabilities, and distinguish SABIC’s way of leader in chemicals, SABIC must be able to attract, Academy and other leading institutions. leading from that of its peers. develop, and retain the best talent in our industry. SABIC is committed to becoming an employer of The Academy offers competency-based learning, Global cross-functional HR teams looked at choice because we believe that our success as a both at the Academy and through e-learning, with how SABIC could develop a set of guiding company starts with our employees. over 5,000 online programs accessible to every one priorities that would anchor its purpose of of our 34,000+ global employees. It conducts ‘Chemistry that Matters™’, its underlying To achieve this goal, SABIC’s Human Resources is continuous professional programs leading to commitments, and its values of Inspire, structured to create a work culture that encourages recognized certification in disciplines such as sales, Engage, Create and Deliver. The result was a clear continuous learning, provides exceptional career marketing, finance, and supply chain. Its external and meaningful framework that was inclusive opportunities, and offers attractive rewards outreach efforts, with dedicated government of SABIC’s purpose and values. for performance. programs, have already produced over 100 highly Our Leadership Way stresses four leadership One of our proudest achievements is our consistent qualified graduates, equipped with the skills to priorities: Talent Champion, Collaboration Partner, ranking as the employer of choice among Saudi become SABIC’s leaders of tomorrow. Innovation Pioneer, and Excellence Driver. Arabian graduates. Our leadership development process stresses early identification of leadership potential within the EMPLOYEE DIALOGUE HUMAN RESOURCES FORUM organization. Throughout this process, we look for The Employee Survey saw SABIC employees clearly We continued this year to invest heavily in support those who exhibit professional excellence and – articulating aspects of working in the company they of Saudi Vision 2030 and SABIC’s 2025 strategies. most importantly – the ability to execute logically strongly appreciate, along with areas of concern The goals set by Vision 2030 are ambitious, but we conceived business strategies. The program covers where they believed change and progress believe they can be met through the efforts of our the candidate’s progression journey – from an were needed. creative and driven people. We are contributing individual contributor to enterprise leader – through towards fulfilling the Vision by developing best a three-stage process, beginning with Skills-focused SABIC maintained the dialogue with all its practices in human resources in Saudi Arabia and Leadership Development, Focused Leadership employees, ensuring that managers are held preparing young Saudis for the labor market by Above: Dr. Ali bin Nasser Al-Ghafis, Minister Development, and finally, Comprehensive accountable – and are seen to be so – for taking advancing their skills and potentials. of Labor and Social Development, addresses Leadership Development. action on employee feedback. the Human Resources Forum in Riyadh. A Human Resources Forum, under the theme, Several other learning programs are geared to meet Responding to the findings of the dialogue, the CEO “Transforming HR: Enabling Saudi 2030 Vision,” dedication to learning innovation and a commitment SABIC’s strategic business objectives: Supply Chain and the leadership team recognized the need for was held at the SABIC headquarters in Riyadh from to social responsibility. Development, SABIC Procurement Employee Early SABIC leaders to engage proactively and openly October 15 to 17, bringing together five keynote Development, Finance Development, Information with their teams. The aim was to share the results of speakers and a targeted audience of over 500 The forum witnessed the signing of three Technology Early Career, and SABIC Engineer the dialogue and discuss the implications, both for participants, from SABIC and a wide range of Memoranda of Understanding in support of two key Early Development. individual employees and for the teams within which external partners, including government, small- pillars of the 2030 vision – “thriving economy” and they work; identify key focus areas of concern for Being a learning organization, with a unique and and-medium-sized enterprises, and academia. “vibrant society” – with: particular working groups; and work together as world-class learning strategy tailored to accelerate Six developmental programs and over 70 learning teams to create and execute action plans to address –– King Salman Youth Center – aiming to develop an employees’ career development, SABIC has breakout sessions were held, covering everything identified areas of concern. innovative and inspiring community to support collaborative relationships with leading educational from entrepreneurship to the development of Saudi youth in realizing their full potential and and technical institutions spanning the globe. We Following the initiative, the Pulse Dialogue Survey learning communities, consistent with our overall exploring their own ideas. currently work with leading organizations including assessed all employees globally to understand strategy for contributing to Vision 2030. –– Ministry of Civil Service – looking to enable the King Abdullah University of Science and Technology, whether the proposed management/employees Further aligned to the objectives of Saudi Vision exchange of Human Resources knowledge and King Saud University, Pennsylvania State University, dialogue had taken place, how participants felt 2030, a consistent key theme in our HR strategy this expertise and the sharing of HR best practices Chinese Academy of Sciences, National University about the progress that had been achieved, and year remained Saudization, and we continue to make and solutions, via the creation of a “Regional HR of Singapore, and Cambridge University. whether they were aware of the results and action good progress. Think Tank”. plans arising out of the initiative. –– Ministry of Education – promoting a “production SABIC held its Summer Innovation Program in July culture” by creating an inspiring space where and August at locations throughout the Kingdom: Saudi students can be supported in exploring Riyadh, Jubail, , Hail and Abha. In their innovative ideas. collaboration with organizations such as King Salman Youth Center, InnovEngine and Maker Faire, the program engaged 1,100 high school students, both boys and girls, in activities designed to build SABIC 52 ANNUAL REPORT 2017 OUR COMMITMENT 53

INNOVATION AND BUSINESS DEVELOPMENT

SABIC has created an integrated Innovation and Business Development function consisting of a global team of experts in many specialized fields, to drive the company’s future growth in all aspects of its business.

In 2017 this comprised 2,150 employees working shear rates simulating real injection molding on 690 research projects – short, medium and long conditions, informs our research into fiber breakage term – at 21 research centers around the world. and dispersion, ultimately leading to improved properties and performance. Our scientists and engineers this year submitted 741 new Invention Disclosures to protect SABIC At the recent GPCA PlastiCon conference in Abu intellectual property and safeguard our presence Dhabi, the SABIC foam team, in partnership with Hira in critical market segments. 992 new patents were Industries LLC, won the 2017 Plastic Excellence Award granted in 2017. (in the joint development category), for SABIC’s new LDPE dedicated foam grade LDPE HP2024NDF. SABIC SABIC Technology Store developed to boost our also recently took a bronze Emirates Energy Award, licensing-in process by more than 30 percent. in the ‘large energy projects’ category, making Numerous license agreements, some in new areas SABIC one of 33 winning companies out of 210 such as coal gasification and to olefins competitors from around the world. technologies, were also executed.

The SABIC team is supplemented and supported by NEW POLYETHERIMIDE MATERIAL an extensive global collaboration network of over 90 Left and above: SABIC’s advanced Electric vehicles are at the cutting edge of technical universities and institutes including King Abdullah technology and innovation facilities support the company’s businesses to innovation, as efforts increase to cut weight, for lower University of Science and Technology, Delft develop new, specialized products. fuel consumption and emissions and greater range. University of Technology, Rice University, Chinese Academy of Sciences, Georgia Institute of An exploratory research program that began Technology, University of Toronto, ETH Zurich, six years ago, looking to identify electric vehicle University of Konstanz and University of Naples, as powertrain component consolidation opportunities, SABIC licensed its own technology and realized the –– FORTIFY™ polyolefin elastomer (POE) for well as advanced prototype and system designers recently resulted in a unique high heat, first commercial production of ABS in Saudi Arabia, thermoplastic olefin elastomer (TPO) – well- such as Holst Center and Nottingham Spirk Design. high-performance film for professional-grade and agreements were signed to license two received by the automotive industry for its dielectric film capacitors. polyolefin proprietary technologies – UHMWPE and excellent flow and impact properties. PLANT AND PRODUCTIVITY LDPE CTR® clean tubular reactor – for use in China. –– A new hybrid injection molding technology for Traditional capacitors build up heat in the powertrain, In petrochemicals, SABIC continued implementing combining plastic and metal, reducing weight and making a cooling system necessary. First generation Metals addressed challenging market conditions innovative technologies to maximize asset enhancing energy absorption. Six different OEM ULTEM™ UTF120 film, a new polyetherimide (PEI) with optimization initiatives in long products 2300 productivity and enhance efficiency, focusing on its programs are now underway in Europe, China material which was launched in early 2017, provides & SH2400 chemistries to reduce ASTM A615 Grade major building block out of its global steam crackers, and the US. higher energy density than regular polypropylene 60 rebar production costs, the production-boosting with improvements to online optimization, yields, –– SABIC PP® UMS – a building block for new foaming films, allowing manufacturers to design for higher installation of the Expert Furnace System anti-coking tube technology, and high emissivity solutions across a wide range of applications from temperatures, which in turn enables elimination of Optimization Process (EFSOP) at Electric Arc coating applications. In Europe, SABIC has been packaging to automotive. the cooling system and allows the capacitor to be Furnace, and development of new product, such exploring ‘circular economy’ innovations with –– Polyacetal (POM) and SABITAL™ (glass fiber located close to the chip set, offering greater design as ASTM A706 seismic 12 mm rebar. industry collaborators, maximizing glycol yields reinforced POM), from the new plant at our Ibn flexibility and lower impedance. through the adoption of world-class catalysts, Sina affiliate in KSA.

and exploiting CO2 capture and re-use to add value NEW PRODUCTS IN POLYMER –– Elastomer versatile rubber (BR) and and improve our sustainability footprint. Over 60 new products and applications were ethylene propylene diene monomer rubber introduced to the market in 2017, many bringing (EPDMs) for applications from automotive SABIC also completed the process design packages significant advances in features such as rigidity and to construction. for expanding and building plants based on our weight-reduction, with applications from packaging butadiene extraction process technology, and A new HDPE application featuring a unique to construction. New products this year included: developed a proprietary technology to produce multimodal molecular design, created for a floating polymer-grade high purity isoprene for use in butyl –– Two environmentally-friendly high flow solar panel system project in China, passed all rubber and other polymer applications. phthalate-free polypropylene grades for thin crucial tests. wall food containers. Global expansion continued, with the inauguration Leveraging our leadership in long-glass-fiber-filled –– Shrink barrier packaging with unique seal-through of a new polypropylene (PP) pilot plant in Geleen, polypropylene, collaboration with universities has capability, providing excellent packaging integrity the Netherlands, and investment in a PP extrusion contributed to the recent development of a unique and processability. facility, to accelerate the development and high-speed couette device which, by delivering commercialization of new material solutions, and respond to changing market needs. SABIC 54 ANNUAL REPORT 2017 OUR COMMITMENT 55

INNOVATION AND BUSINESS DEVELOPMENT continued

CRUDE-OIL-TO-CHEMICALS PROJECT Right: SABIC is continually seeking to enhance its presence A Memorandum of Understanding (MoU) with Saudi in the Chinese market. Aramco, signed and announced at a ceremony in Far right: SABIC researchers Dhahran in November 2017, marked the launch of the develop inspiring designs to Crude-Oil-To-Chemicals (COTC) project. The project is meet the market needs of designed to overcome feedstock limitations, enabling customers. the production of refined products and chemicals from crude oil, through optimized integration of refinery and petrochemical technologies. The project is viewed as a significant contributor to the Kingdom’s Vision 2030 economic transformation INVENTION program, supporting the creation of a world-leading DISCLOSURES a detailed study of reserves and proposed methods downstream sector in Saudi Arabia, generating SUBMITTED of mining, beneficiation, pelletizing and further an estimated 30,000 direct and indirect jobs, studies on the project’s environmental and social and further stimulating economic diversification. impact, and projected water and energy needs. 2017 With investments shared equally by SABIC and saw the successful completion of 110,000 meters of Saudi Aramco, it’s forecast that by 2030 the new 741 drilling, and collection and analysis of over 30,000 complex will provide a 1.5 percent boost to Saudi samples. The initial study suggests reserves of over Arabia’s GDP. NEW PATENTS 1.7 billion tons of iron ore. GRANTED By the end of 2018, SABIC expects the feasibility GROWTH PROJECTS studies to enable completion of the procedures UNITED STATES for granting the project company an SABIC is actively seeking investment opportunities exploitation license. in the US in pursuit of its clear growth strategy of 992 SABIC is also working on a number of initiatives in leveraging competitively priced US feedstock, Africa in targeted products, markets, and located particularly in methane and ethane derivatives. in different countries, in which will be publicized SABIC and ExxonMobil are conducting a study into SABIC is continually seeking to enhance its presence SABIC and its strategic partner SINOPEC, at the right time. building and operating a petrochemical complex in in the Chinese market, as a key factor in the pursuit meanwhile, have signed a strategic cooperation St. Patricia, Texas, on the US Gulf, and signed a of the company’s strategic objectives as a global agreement during the visit of the Custodian of the MERGERS AND ACQUISITIONS leader in petrochemicals. Recently awarded ‘Best Two Holy Mosques to China in March 2017, and number of agreements for the construction of an SABIC is studying acquisitions totaling US$3-6 Employer’ by China’s Association of International submitted a tender for expansion of the Tianjin ethylene plant. These agreements cover the billion, in petrochemicals, specialty chemicals and Chemical Manufacturers, SABIC continues to help plant, to produce polycarbonate using SABIC’s engineering studies phase of the project, agri-nutrients, in a number of global and regional drive growth through expanding investment and wholly owned technology. completing and updating technical and commercial markets, particularly petrochemicals in North employment opportunities, stimulating innovation, studies, and defining business mechanisms America and China, and agri-nutrients in Africa, and extending cooperation with our partners. AFRICA between the two parties for the next phase. The India and South America. joint work team has so far selected the land, signed September 2016 saw the signing of an agreement Work proceeds on SABIC’s Mauritania Saudi Mining As part of these efforts, SABIC signed an agreement agreements and awarded contracts for the early with SNCG of Chinese giant National Energy and Steel Company (TAKAMUL) project, a joint with Shell Arabia Limited in the first quarter of 2017 site works. Other commercial agreements with Investment Group, previously known as Shenhua venture between SABIC and SNIM (Société Nationale for the acquisition of 50 percent of Shell’s joint ExxonMobil are being finalized, while the Final Group, and Ningxia Government, to create a Industrielle et Minière) in the Islamic Republic of venture in the Saudi Petrochemical Company (Sadaf), Investment Decision (FID) is expected to be world-class coal to olefins and high value derivatives Mauritania, aiming to supply SABIC’s KSA plants, in Jubail Industrial City, for approximately US$820 taken in 2018. project – the Wolfberry/Shensha project – in Ningxia. overcoming global shortages of high quality iron ore. million. The transfer of ownership to SABIC took place The joint work team has completed detailed Exploration works began in 2013 at the Atomai Site, SABIC is also considering a number of other in the third quarter of 2017, making Sadaf fully owned technical and commercial studies, and on July 18, in Zouerate, northern Mauritania, about 700 km investment opportunities in the Gulf of Mexico. by SABIC. Sadaf is one of the Middle East’s largest 2017, SABIC signed multilateral licensing and from the capital Nouakchott, with geological drilling petrochemical complexes, consisting of six world- engineering agreements with the Shenhua Group and sample-collection, with the help of contractors CHINA class petrochemical plants with a total annual and other global partners. Licensing and approval and local and international laboratories. The SABIC currently has various facilities in China, production capacity exceeding 4 million metric tons. by the National Development and Reform including a petrochemical complex in partnership encouraging data collected led to the appointment Commission (NDRC) is imminent and is expected to with SINOPEC, three engineering plastics factories, in late 2016 of a specialized international consultant be obtained during 2018. two global research centers, 18 sales offices and to conduct a Bankable Feasibility Study, due for more than 1,300 employees. completion in mid-2018. The final report will include SABIC 56 ANNUAL REPORT 2017 OUR COMMITMENT 57

COMPLIANCE AND RISK MANAGEMENT

SABIC’s Legal Affairs, Enterprise Risk Management and In SABIC, we endeavor to work to the highest We are using insurance solutions through highly compliance standards, using a best-in-class controls reputable insurance companies as a risk transfer Internal Audit departments are designed to safeguard the environment. With the FANAR+ SAP® Globalization mechanism, and our insurance program is working interests of all SABIC stakeholders, including customers, project completed in 2016, we have been able to as designed to protect SABIC’s interests worldwide. consolidate, harmonize and further improve our Credit risks are also mitigated through the use of employees and shareholders, and to manage SABIC’s risks internal controls through a global platform. credit insurance and bank instruments. Our Global in a way that promotes our 2025 goal of becoming the During 2017, we made substantial progress in Insurance and Credit Management team focuses on world’s preferred leader in chemicals. the deployment of our global approach to access creating value through creative insurance solutions authorization to structurally govern access rights and new practices, leveraging SABIC’s global from a global perspective and significantly reduce presence and networks. segregation of duties risks across our business processes within the SAP system. All three functions regularly provide coordinated In Intellectual Property, innovation efforts led to INTERNAL AUDIT reports to SABIC’s Executive Risk Management about 424 new original patent applications, with Business Continuity Management and the ability The Internal Audit Department audited SABIC’s Committee. The SABIC Board of Directors’ Risk and emphasis on patent protection for high value to mitigate the adverse impacts of disruptive events operations in 2017, in accordance with the SABIC Compliance Committee oversees the activities projects. SABIC’s overall patent estate exceeds remains a critical focus of the organization. In 2017, Audit Committee Approved Annual Audit Plan. of the Enterprise Risk Management department 11,500 global dockets, even with increased scrutiny Business Continuity Management continued to Ernst & Young, SABIC’s external auditor, also in assessing key business risks for the company. on existing patents to ensure they still serve focus on developing the SAP outage manuals for conducted periodic audits and reviewed the closing The Board Audit Committee oversees the SABIC’s growth objectives. We also extended our end-to-end processes. However, it extended the financial statements of the company. business interruption scenarios beyond SAP outage, compliance and ethics activities of the Legal Affairs IP awareness training program to include many The Audit Committee, external auditors and internal and applied a wider range of business interruption Compliance function and the Internal Audit function. of SABIC’s global affiliated companies. auditors met frequently to discuss internal controls, scenarios to SABIC and SABIC affiliates through the emerging risks, and changes to the internal control process of Business Continuity Management (BCM) environment affected by the recent IFRS conversion LEGAL AFFAIRS ENTERPRISE RISK MANAGEMENT ISO 22301 certification, which included developing and preparation for the KSA Value Added Tax Legal Affairs promotes growth and supports ERM continued its productive collaboration and and testing the Business Continuity plans. BCM will regulations. SABIC continues to maintain a strong commercial transactions and M&A, while providing support efforts towards SABIC’s business goals continue this deployment in 2018-2019. strategic counsel to optimize opportunities and to with the following priorities in 2017: promoting a internal control environment through the mitigate risk. The team also supports SABIC’s 2025 world-class culture of risk mindfulness, developing collaborative engagement of the Legal, Enterprise goals in two key areas: it builds and maintains decision making processes that incorporate risk Risk Management and Internal Audit departments. robust compliance processes and a strong calculations, and helping to assure business All three functions regularly provide The Internal Audit department completed all compliance culture to foster the highest ethical continuity during the implementation of major planned audits for 2017, and included reviews within standards; and it works closely with our leaders, projects and transformation initiatives. We also coordinated reports to SABIC’s some of SABIC’s affiliates. The department also strategically protecting intellectual property to remain focused on driving operational excellence Executive Risk Management committed resources to its multi-year strategic maximize value from our innovation activities. in our global controls on process and access rights, plan to enhance its operations in the areas of risk and our insurance and credit risk programs. The highlights of our Compliance and Ethics Committee. The SABIC Board of assessment, data analytics, auditor development programs in 2017 include completing compliance In 2017, we continued implementing risk assessment Directors’ Risk and Compliance and audit methodology. Adherence to international and risk mitigation reviews for 34 executive leaders tools and supporting risk based decision-making auditing standards is maintained through the and their business or functional units, conducting techniques to effectively manage the organization’s Committee oversees the activities department’s expertise center for quality-assurance Executive Compliance Leadership workshops for threats and opportunities. Embedding risk of the Enterprise Risk Management and improvement programs. In 2017, an external over 800 business leaders, and conducting a management processes and promoting risk Quality Assurance Review was performed over the SABIC-wide integrity culture assessment to allow mindfulness across the organization have been the department in assessing key Internal Audit function and the results were shared data-based planning for continuing to strengthen main focus in SABIC’s and SABIC affiliates’ existing business risks for the company. with the Audit Committee and executive management. the cultural aspects of our program. processes. Timely response to risks and opportunities across all entities of the organization The Board Audit Committee SABIC also advanced its commitment to fighting remains a top priority for risk management, to corruption. Internally, SABIC continued to improve oversees the compliance and ensure that risks are mitigated and opportunities its ongoing supplier due diligence program, leveraged to support SABIC’s growth strategy and ethics activities of the Legal Affairs registering over 6,000 suppliers into a system business gains. With global economic changes, designed to evaluate risk and ensure integrity and Compliance function and the rapidly evolving geo-political developments, major ethical practices throughout its global supply chain. competitive trends and an ever changing customer Internal Audit function. Externally, leadership efforts included a role at the landscape, Risk Management’s strategic focus has B20 group on Responsible Business Conduct and broadened to include “Risk Intelligence”. This has Anti-Corruption, and participation in multiple helped provide forward visibility on potential compliance and ethics best practice sharing forums events that could impact SABIC strategically around the world. and operationally. SABIC 58 ANNUAL REPORT 2017 OUR COMMITMENT 59

ENVIRONMENT, HEALTH, SAFETY AND SECURITY

SABIC strives to instill EHSS as a core value – a deeply held commitment HEALTH, SAFETY AND ENVIRONMENT During this period, the following EHSS projects were also completed: and a fundamental driver of behaviors, never compromised for short- Achieving EHSS excellence requires not only good processes and systems, but also the right culture. e-SHEM solution, a globally consistent process for term goals. We seek to proactively nurture a culture that goes beyond As part of the SHEMS+ initiative, SABIC this year logging, reporting and managing incidents. compliance to embrace continuous improvement. undertook an in-depth EHSS culture assessment, to provide a baseline and identify key cultural aspects e-SHEM module for Management of Change that we need to improve in order to achieve our goals. – successfully implemented by two Saudi Arabian sites, with phase two planned for 2018, this new tool The SABIC EHSS department worked with facilities to aims to simplify global implementation of SHEMS improve emissions monitoring and take prompt action standards. to meet and exceed legal requirements. Despite these efforts, SABIC affiliates received a greater number of EHSS virtual town hall – conducted four global notices of violations in 2017 compared to 2016. virtual town halls to share learnings and initiatives, and provide a forum to share and discuss key EHSS Further programs are under development for 2018 to improvement and risk management areas. improve our performance in personal safety, industrial hygiene, and environmental protection and compliance. Risk-based SHEMS audit – piloted assessments at several sites in the EU and Middle East and Africa regions using revised audit checklists that focus on NEW SAFETY AND FIRE DIRECTIVE implementation effectiveness of the EHSS IMPLEMENTATION management system. Saudi Arabia’s High Commission for Industrial Security (HCIS) this year issued a major update and revision to the Safety and Fire (SAF) protection PROCESS RISK MANAGEMENT directives, which is applicable to all our Saudi Because of the potential hazards inherent in many Arabia-based affiliate operations. of our operations, process safety is a critical element of our EHSS programs. In line with our 2025 EHSS SABIC’s Global EHSS team and Engineering and goals, SABIC has developed and implemented Project Management (E&PM) function completed a several programs to enhance process safety preliminary review and gap analysis of SAF directives knowledge and competency across all functional and communicated their conclusions to all affiliates’ roles, from operators to executive leadership, with Above: All SABIC facilities are built to comply MEA sites, with a view to developing a common new programs planned for the coming years. with the strictest international safety regulations. approach and implementation plan. All sites are now March this year saw the launch of SHEMS+: our new to electrocution. We must, and will, improve further. identifying site-specific gaps and working with the This year, SABIC EHSS formally launched a unique global EHSS transformation project. It aims to This year saw implementation of a company-wide EHSS Global Assurance (GA) team and the HCIS on and comprehensive internal Process Safety transform EHSS management standards, drive Life Saving Rules project mandating precautions for implementation plans to ensure compliance. Competency Development Program for Engineers sustainable EHSS performance and deliver EHSS high hazard activities. Developed from industry and at Jubail in partnership with Texas A&M University’s leadership training. In-depth assessments at nine affiliate benchmarking, these rules set clear Mary Kay O’Connor Process Safety Center. The SHEMS IMPLEMENTATION IN SBUS/ objective of the program is to develop, improve, SABIC and affiliate sites generated site-specific expectations for all employees and contractors, FUNCTIONS AND OTHER INITIATIVES recommendations and identified company-wide driving consistency in conducting hazardous work. and strengthen the process-safety competency This year saw the SHEM rollout initiated in the improvement opportunities. We will use these of SABIC engineers through a structured, intensive We continue to develop new tools and promote SBUs and Corporate Functions as well as the opportunities to develop our 2018 initiatives. training and qualification program. sharing of best practice. One example is a new tool documentation. The full implementation and Our Global EHSS organization, created in 2016 to to systematically assess risk and incident potential incorporation of SHEMS into their operations and The program’s competency training modules are support and steer regional and facilities’ EHSS following any EHSS incident, helping to align resource business plans are set to be completed during 2019. structured on three levels, with each building on the performance, was further strengthened in 2017, allocation with risk. Particular effort was devoted to one before: developing, proficient, and advanced. providing support across all regions by dedicated education in order to help staff understand why, and The first level develops knowledge and conceptual teams within health and safety, process risk how, to share findings across sites, thereby understanding of process-safety theory and management, environment, security, and maximizing the learning benefits of such findings. principles. As students reach the proficient level, product stewardship. they gain more in-depth knowledge of industrial We are revising our KPIs for EHSS, looking not only at hazards and independently perform fundamental lagging EHSS indicators, but also leading indicators, and routine process-safety related tasks at affiliates. KEY PERFORMANCE INDICATORS to better monitor our performance and prioritize SABIC engineers passing the advanced level will have To continuously improve EHSS performance, we improvement opportunities. the ability to apply creative solutions to complex monitor a set of key performance indicators (KPIs) process-safety-related problems and achieve across our facilities. Since 2005, our EHSS rate ® RESPONSIBLE CARE recognition as subject matter experts in process- (Safety, Security, Health and Environmental Incident All SABIC and affiliates’ manufacturing sites safety management, hazard identification and risk Rate) has improved by 86 percent and our injury maintain Responsible Care® RC14001:2013 assessment, or process safety design engineering. Total Incidence rate by 72 percent. certification. This year, all have undergone audits As of this year, 46 SABIC process safety and process Such improvements are, however, placed in with a view to gaining the new RC 14001:2015 Above: SABIC’s safe practices are backed by emergency engineers have completed or are enrolled in the perspective by a fatality at one of our facilities due standard, expected in early 2018. response systems for coping with any eventualities. SABIC 60 ANNUAL REPORT 2017 OUR COMMITMENT 61

ENVIRONMENT, HEALTH, SAFETY AND SECURITY continued

developing level of this extensive program. manage IT threats. In addition, SABIC conducted –– Improvement of risk identification for new –– ExxonMobil’s “Global Operations SHE Excellence The proficient level detailed design and development widespread training in crisis management and products and processes by designing a cross- Award,” “Responsible Care Award” and “Global will be completed and launched in mid-2019. emergency response and emergency drills to assess functional EHSS review of research and Operations Excellence Award” for Yanpet, a and improve readiness for potential incidents. development projects, with implementation SABIC/Mobil Yanbu Petrochemical Company 2025 EHSS strategy goals includes other initiatives scheduled for early 2018. joint venture. and programs to enhance the process safety. –– Development of analytical methodology to –– “AICM Responsible Care® Chairman Award” They include: SECURITY RISK MANAGEMENT characterize non-intentionally added substances in recognition of the company’s leadership, This year, SABIC implemented a number of security –– Improving risk discovery, controls and (NIAS) in food contact materials where no innovation and contribution to China’s chemical improvement programs to proactively identify, stewardship – SABIC Assurance for EHSS Risk harmonized system exists. industry and people – our third consecutive assess, and mitigate security risks, including: (SAFER) is a process that aims to identify and –– Piloting of Product Stewardship incident reporting award, following “Responsible Care® Merit assess risks and devise interim and mitigating –– Harmonized global travel-security programs throughout manufacturing, with continued rollout Awards” in 2013 and 2015. actions to eliminate and reduce them. In order to for all SABIC travelers. to business units and corporate functions set –– “Tianjin Municipal Level Top 100 Work Group” ensure proper implementation of SAFER and other –– Competency programs for security staff for 2018. award to SINOPEC SABIC Tianjin Petrochemical critical process safety procedures, SABIC has and new employees, and a training program Company for its safety record since 2010. developed a four-tiered set of leading and for security supervisors. GLOBAL EHSS AWARDS –– Two energy efficiency awards from the American lagging indicators in line with API 754 –– Implementation of a canine security service Chemistry Council for SABIC’s Selkirk, New York, 2017 awards at affiliate sites for positive EHSS recommended practice. in a number of affiliates. site for “Significant Improvement in performance include: –– Developing and improving risk-management –– Improved security awareness training for security Manufacturing.” methods – SABIC EHSS Event Evaluation Risk teams at many sites. –– A safety award from the Ministry of Labor and –– “ACC Energy Efficiency Award” in the “Energy Assessment (SEERA), currently being conducted –– Compliance audits at Saudi Arabian affiliates to Social Development for our Ibn Sina affiliate. Efficiency Program, Plant Site” category for at selected sites, aims to improve our learning assess and improve compliance with new 2017 –– Recognition from Worldsteel (The World Steel SABIC’s Bay St. Louis, Mississippi, site. from potentially significant near miss events. As HCIS directives. Association) in “Process Safety Management –– 2017 IChemE Global Awards Finalist in “Process per our current plan, we will pilot globally this year –– Completion of security code requirements implementation” for Hadeed. Safety Award” category for Kemya. before committing to full implementation. for Responsible Care recertification. –– Implementing a facility siting program – 31 –– Establishment of Jubail Chapter of ASIS process engineers were trained in facility software International, a global association of security and modeling and facility siting assessment to professionals, to build relationships, exchange improve EHSS risk identification and mitigation ideas, and share insights and best practices, and enhance internal capabilities and locally and globally. competencies in process-risk management. Staff –– Completion of a global security risk assessmen at 10 sites were trained in 2017, with the remainder to identify, prioritize and address security to be completed in 2018. risks to personnel, assets, and operations. –– Updating and revising of information security EMERGENCY RESPONSE standards to better protect sensitive information AND CRISIS MANAGEMENT in a dynamic threat environment. –– Development and rollout of a program for arming SABIC’s crisis and emergency management security guards at Saudi Arabian facilities, program is designed to promote effective crisis including selection, testing and training. management and emergency response at local, –– Successful initiation of an e-security and regional and global levels. government relations system. In August and September 2017, SABIC responded to Hurricane Harvey, providing resources and support PRODUCT STEWARDSHIP and ensuring business continuity at SABIC-affected 2017 was a year of execution and re-evaluation locations. Key activities included activation of in our Product Stewardship program, with: SABIC’s existing Houston Area Severe Weather Emergency Response Plan, precautionary safe –– A Responsible Care value chain pilot for American shut-down of the SABIC Technology Center in methanol and customers. Houston, and the creation of crisis management –– Completion of an additional 15 risk sub-teams for emergency response, humanitarian characterizations of SABIC’s top 50 high priority support, communications and business continuity. chemicals, bringing the total to 25. Above: SABIC’s crisis and emergency management program is designed to promote effective crisis This year, SABIC conducted a number of cyber- management and emergency response at local, regional and global levels. incident exercises to help ensure it is fully prepared to SABIC 62 ANNUAL REPORT 2017 OUR COMMITMENT 63

MANUFACTURING

In pursuit of its objective of achieving best-quartile performance using up-to-date technologies and technical solutions following international standards, SABIC has implemented two transformational programs: Asset Integrity and Reliability (AIR) and Asset Aging Assessment (AAA).

Alongside these two specific programs, a variety SABIC Manufacturing undertook sustainability SYNERGY of other ongoing initiatives to identify and exploit opportunity-assessments of various projects during In 2017, SABIC manufacturing continued its efforts synergies, share expertise, and otherwise improve the gating process to ensure that these projects to identify and exploit synergies, such as the performance are in progress. achieve outstanding energy and sustainability production of methanol from Petrokemya’s off-gas performance. In addition, we started the GLOBAL PRODUCTION SABIC CERTIFIED at Ar-Razi and Ar-Razi’s oxygen venting reduction. development of site energy optimizers for several ASSET INTEGRITY AND RELIABILITY BENCHMARKED ENERGY EXPERTS SABIC sites. This tool helps identify opportunities In 2018 Petrokemya plans to optimize a Sharq The Asset Integrity and Reliability (AIR) initiative for improved operating strategies, and generate stream to increase butadiene capacity – and has provides all SABIC affiliates and sites with a insights that can enhance energy systems, resulting a number of other potential synergies with consistent framework for asset management in improved energy performance. neighboring companies under evaluation. to ensure integrity and reliability throughout 70% 37 any asset’s full life-cycle, from design through Below: SABIC pursues up-to-date technologies and SABIC Manufacturing embarked on a process decommissioning. technical solutions at its manufacturing sites. for optimal global utilization of its expertise and know-how, through the integration of technical Effective asset management helps achieve full support, networking, and knowledge management realization of the value of assets, and effective in one seamless platform. To achieve this, Regional exploitation of their potential contribution to the Asset Support (RAS) is tasked with unlocking successful achievement of business goals, knowledge and leveraging this large volume of objectives, and value drivers. expertise to drive technical support through Successful implementation of the AIR program is effective networks. This effort will retain knowledge expected to deliver improved EHSS and operational for future generations, improve our innovative performance and reduced operational risk thanks capabilities, and ultimately develop SABIC’s to improved reliability and asset health – and the performance as a learning organization. implementation of appropriate asset life-cycle This process has so far been successfully implemented management strategies. across four regions, with 108 technical issues resolved. A community forum was introduced, to unite the wider ASSET AGING ASSESSMENT manufacturing community in sharing technical information and managing our knowledge content. SABIC Manufacturing’s Asset Aging Assessment (AAA) program aims to ensure that risks incurred by asset-aging or obsolescence are identified ACTIVE ENGAGEMENT, IMTYAZ+ and mitigated. The first phase of the manufacturing The AAA program saw all manufacturing sites transformational journey not only included intensively engaged with the AAA Global organizational evolution but also the deployment of Deployment Team. Completion of the first phase the manufacturing management system, IMTYAZ. of this initiative was scheduled for the end of Having standardized organizational structures, November 2017; the program is planned to safely processes, stewardship models, performance and cost-effectively help manage asset performance metrics, and leadership behaviors in 2016, our focus and associated risks during its remaining life. SABIC’s 2016 Sustainability Report was recognized business units, and regional manufacturing this year was to ensure correct use of the for effective data management and effective use of performance and operational support. management system by embarking on an active- key performance indicators by the World Business engagement approach, IMTYAZ+, delivered through ENERGY AND SUSTAINABILITY In 2017, methanol and styrene benchmarks were Council for Sustainable Development. coaching and experiential learning. This approach With its focus on culture, systems and tools, SABIC undertaken with global peer groups. At the same identified areas of good implementation that should Manufacturing launched its own Certified Energy time, internal assessment of high-volume product be more effectively leveraged, and others of Expert Course (SCEE), aiming to develop key BENCHMARKING families including olefins, ethylene glycols, opportunity that needed to be addressed, in order personnel and build a network of in-house energy We periodically compare its manufacturing methanol, , ammonia and urea were to maximize impact on operational-risk reductions, and sustainability expertise. Thirty-seven people performance against industrial peers at regional conducted, building internal manufacturing production increases, and cost efficiencies. qualified as SABIC Certified Energy Experts and global levels. Over the last five years, more than capabilities. As an outcome of these comparative during 2017. 70 percent of SABIC’s global production has been studies, improvement initiatives were generated, Our next steps will be to engage in further benchmarked. with the objective of ensuring first-quartile integration, to ensure direct impact of initiatives performance in the operation and maintenance on our strategic objectives in line with SABIC’s The exercise involves teams comprising members of all assets. 2025 strategy and our journey toward optimized from affiliate operations, maintenance, human performance-based manufacturing excellence. resources, finance, global asset technology center, SABIC 64 ANNUAL REPORT 2017 OUR COMMITMENT 65

SUPPLY CHAIN

2017 saw the transformation of SABIC’s Global Supply Chain organization into a single, efficient, streamlined supply-chain function.

SABIC has devoted considerable time and SUSTAINABILITY PERFORMANCE attention to improving its supply-chain strategy Throughout 2017, the Supply Chain Performance and integrating and optimizing its solid, liquid, SABIC was ranked one of the top Management (SCPM) program enabled effective and bulk supply chains, making them more efficient, three companies for supply-chain cost-per-ton reporting, with supporting analytics sustainable, and responsive to the needs of and value-adding KPIs, such as Net Promoter Score customers. Particular highlights this year have excellence in the chemicals industry and supply chain Carbon Footprint. The Carbon come in strategy formulation and execution, in Gartner’s 2017 Top 25 supply- Footprint KPI enables accurate calculation of SABIC’s organizational refinement, capability outbound supply-chain carbon footprint for all improvements and sustainability. chain benchmarking. regions and transport modes, right through to Results vindicated the sustained and focused delivery to the customer: a global first. efforts of recent years: SABIC was this year ranked Our Solid Supply Chain in Europe and one of its one of the chemicals industry’s top three companies service providers, Den Hartogh, jointly introduced for supply-chain excellence in Gartner’s Top 25 a railway connection between Chemelot rail terminal supply-chain benchmarking. PROCESS AND SYSTEMS in Geleen and Moerdijk in the Rotterdam area, taking The FANAR+ program, which provides a single around 200 trucks a month off Dutch roads. Not only STRATEGY uniform global platform to enable consistent and does this ease road congestion, it also exemplifies The newly established Global Supply Chain (GSC) standardized planning and operations became SABIC’s continuous focus on improving our carbon organization embarked on defining a global operational for all SABIC’s supply-chain regions footprint, cutting our annual CO2 emissions by supply-chain strategy for SABIC to empower growth in 2017. around 550 metric tons. and deliver tangible value to SABIC and its In Solid Supply Chain, we worked with Saudi Ports The ultimate testament to the Global Supply customers. The GSC strategy comprises numerous Authority and Saudi Customs to establish dedicated Chain’s sustainability successes came in the form strategic initiatives: to empower growth, customer SABIC offices at Saudi ports. The first opened in of a clean external RC 14001 audit, which reported service, the full exploitation of digital resources; March in Jeddah, enhancing communication Above: One of the two new eco-ships zero findings. value sourcing, value-chain optimization, and people between all parties and expediting clearance. that have entered service in SABIC’s Liquid Supply Chain. empowerment; whilst continuing to improve SABIC’s A number of workshops with stakeholders helped LOOKING AHEAD sustainability performance. The strategy was to ensure a successful startup and operation of the heavy fuel oil, they surpass compliance well ahead The Global Supply Chain organization will continue endorsed by SABIC’s executive committee and new streamlined processes. implemented through a dedicated strategic of the International Maritime Organization’s 0.5 implementing its comprehensive supply-chain organizational structure. In the Asia region, the e-commerce platform percent sulfur-emission cap on marine fuel by 2020. strategy, bringing value to SABIC businesses and introduced to Engineered Thermoplastics customers Each vessel will save more than 1,200 tons of CO2 their customers globally. Through key initiatives resulted in e-commerce sales reaching, at 48 emissions a year. Our Liquid Supply Chain also such as service-level differentiation and a digital and CAPABILITY percent, almost half of total sales for the region. achieved a record 78,500 metric tons load on excellence strategy, SABIC will remain among the The new global supply-chain structure consolidates the NCC Fajr, reducing costs by 22 percent. world’s top-rated chemical supply chains. the supply chains of the Petrochemicals and Agri-Nutrients business units into one, with two core INFRASTRUCTURE Through innovative thinking, our Bulk Supply Chain chains – solids and liquid/bulk – both fully supported The new Global Supply Chain organization is loaded jumbo bulk bags on top of bulk urea when by sourcing, excellence and value chain planning. enabling growth in emerging markets, with new shipping from Jubail commercial port to the USA, logistics-service-provider agreements signed in reducing lead-time and cost as well as offering our GasChem Orca and GasChem As part of global-sales and operational-planning Brazil and Peru, and studies underway looking into agri-nutrients customers a “one-stop shop,” with Beluga will each save over 1,200 optimization, SABIC aims to enhance ethylene- the potential for similar arrangements in Africa. no additional capital outlay. The Bulk Supply Chain feedstock allocation by identifying and capturing Strategic initiatives such as container-load further optimized container-loading capacity by tons of CO2 emissions every year. value-improvement opportunities arising from optimization for solids, tank-terminal optimization 17 percent. synergies between ethylene and its derivatives for liquids, and conveyor-belting for agri-nutrients In Asia, optimization in our solid-supply-chain across and within affiliates. Ethylene-optimization are all contributing to the infrastructural warehousing network cut costs without agreements signed between SABIC and some of its improvements necessary to support SABIC’s compromising customer-service delivery in any way, affiliates are designed to help shift mindsets toward ambitious production growth. value-driven thinking across all entities and regions. while sea bulk deliveries rose 23 percent year on Two new eco-ships designed in Germany and built year. To support sales growth in western China, the Our Bulk Supply Chain planning achieved similar in China have entered service in our Liquid Supply Solid Supply Chain successfully executed the first optimization for SABIC’s ammonia and Chain. This year, GasChem Orca joined its sister train shipment from Europe to China. nitrogen businesses. ship GasChem Beluga in transporting refrigerated ethane. As the vessels run on ethane gas rather than SABIC 66 ANNUAL REPORT 2017 OUR COMMITMENT 67

SUSTAINABILITY

Left: SABIC’s sustainability SABIC recognizes sustainability as not just an ethical issue but initiatives include operational excellence, new technologies, a business imperative, enabling our company to be more agile, and efficiency projects. dynamic, and better prepared for the future.

We look to incorporate sustainability into every INNOVATION FOR SUSTAINABILITY NEW SUSTAINABILITY facet of our organization, and look to ensure that This year, SABIC is working on innovations beyond SOLUTIONS our business strategies and sustainability new materials, and launched several disruptive QUALIFIED aspirations are always aligned. material solutions such as THERMOCOMP™ Additive This year, we will be issuing our seventh Sustainability Manufacturing compounds based on acrylonitrile- Report. SABIC has been recognized as a leader in butadiene-styrene (ABS), polyphenylene ether 4 global sustainability reporting by the World (PPE), polycarbonate (PC) and polyetherimide (PEI) Business Council for Sustainable Development resins for large-format additive manufacturing that can produce oversized complex parts with speed – a testament to the success of our integrated PROJECTS FOR and precision by optimizing material use and strategy for responsible business and growth. SUSTAINABILITY improving process efficiency. BENEFITS IDENTIFIED NATURAL CAPITAL Drawing on our extensive expertise in material By integrating resource and energy efficiency into chemistries, formulations, production, and part- our strategy, company culture, and operations, SABIC printing, SABIC pushes the limits of design, 80+ protects natural capital for future generations. materials, and processing – just as we have done with traditional polymer processes over past We continue to build on our initiatives targeting decades – to bring unique offerings to the additive- four sustainability goals by 2025: reducing manufacturing space. Over the last year we have relationships, while delivering and performing LOOKING FORWARD greenhouse-gas, energy, and water intensities, qualified four new sustainability solutions in our for customers and stakeholders. It provides a In 2018, SABIC will support our business results all by 25 percent, and material-loss intensity by 50 product portfolio, and verified more than 80 meaningful framework for leaders to develop through continued progress toward our 2025 percent, all from 2010 levels. Such reductions not innovation projects for sustainability benefits themselves and their teams, highlighting four energy-and-resource-efficiency goals, exploration only reduce our products’ life-cycle impacts; they and risks. priorities that SABIC leaders should strive to of alternative feedstocks, continued development of also improve our operational efficiency, and bear achieve: being a talent champion, a collaboration key-personnel competencies, and improved talent down on operating costs. partner, an innovation pioneer, and an LEADERSHIP WAY selection and retention. Completion of our portfolio excellence driver. of sustainability-assessment pilots will identify Our initiatives include operational excellence, We launched the SABIC Leadership Way in 2017 to sustainable-product opportunities in key markets. new technologies, and efficiency projects. SABIC help achieve our 2025 vision for talent development SABIC is developing tailored training and monitors and evaluates the performance of our and organizational culture. development programs for its employees. Our Another initiative in 2018 will be a refresh of our affiliates, and engages employees across the personalized performance system offers employees materiality analysis. This process includes a review The Leadership Way is guided by the principles organization to raise awareness, offer and benefit clear feedback with recommended development of global sustainability megatrends – including the of long-term dependability and building valuable from training, share best practices, and inspire new actions, and provides over 6,000 classrooms and United Nations’ Sustainable Development Goals ideas. We invest in quick-hit, small-scale solutions; online courses to support employee learning at (SDGs), the Paris Agreement, and Saudi Arabia’s larger and longer-term actions; and global every professional level. At the SABIC Academy, Vision 2030 – helping us develop a master list of operational changes, bringing transformational employees learn through an integrated talent- Below: SABIC is working on innovations material issues to evaluate against our business resource-and-energy-efficiency gains. beyond new materials, and has launched development process, with assessment, coaching, and stakeholder needs. Through this process, we several innovative material solutions. experiential learning, and formal classroom training. SABIC’s Manufacturing corporate function has will engage externally with key stakeholders and started the SABIC Certified Energy Expert Course, This work has earned SABIC the Top Employer internally with leaders to ensure our focus is on with a view to building a network of energy- Institute certifications, “Top Employees Asia Pacific issues of the highest priority to both groups. The efficiency experts. Manufacturing also leads 2018” and “Top Employers 2018,” in five of its key results of this assessment will be incorporated into sustainability and opportunity assessments of Asian markets – China, India, Japan, Singapore, and our sustainability strategy over the coming year and megaprojects during the gating process to ensure South Korea – for five or more consecutive years. published in our next Sustainability Report. that such projects are best-in-class in terms of their These certifications recognize the company’s SDGs provide a framework to match important energy and sustainability performance. SABIC’s constant efforts in nurturing an inclusive growth areas for society with our business goals, Jubail-based manufacturing affiliate, Al-Bayroni, environment that encourages innovation, excellence, helping us to develop more resilient business has become the first entity in Saudi Arabia to and organizational effectiveness, with a strong solutions. In 2018, we will select those that achieve United Nations carbon credits under the focus on employee development. best fit our priorities. The identified SDGs will be Clean Development Mechanism (CDM) scheme. incorporated into our strategic objectives through a wide range of measures, including messaging, targets, and partnership and initiative selection. SABIC 68 ANNUAL REPORT 2017 69

MANUFACTURING COMPANIES 70 DIRECTORY GLOBAL DIRECTORY 74 SABIC 70 ANNUAL REPORT 2017 DIRECTORY 71

Petrochemicals MANUFACTURING Agri-Nutrients Specialties COMPANIES Metals*

COMPANY LOCATION PARTNERSHIP PRODUCTS COMPANY LOCATION PARTNERSHIP PRODUCTS

Alba Bahrain SABIC Industrial Investments Aluminum (liquid metal, ingots, Ibn Zahr Al-Jubail, SABIC (80%), Ecofuel-Italy (10%), MTBE and polypropylene Aluminium Bahrain** Company (20.62%), Bahrain rolling slabs, and billet) Saudi European Saudi Arabia Arab Investment Mumtalakat Holding Company Petrochemical Corporation APICORP (10%) (69.38%), others/public (10%) Company

Al-Bayroni Al-Jubail, A 50/50 SABIC joint-venture Ammonia, urea, 2-ethyl hexanol, Kemya Al-Jubail, A 50/50 SABIC joint-venture Polyethylene (LDPE, LLDPE), Al-Jubail Fertilizer Saudi Arabia with Taiwan Fertilizer Company and DOP Al-Jubail Saudi Arabia with Exxon Chemical Arabia ethylene, carbon black (CB), Company Petrochemical polybutadiene rubber (PBR), Company styrene butadiene rubber Ar-Razi Al Jubail, A 50/50 joint venture Chemical-grade methanol (SBR), ethylene propylene diene Saudi Methanol Saudi Arabia with Japan Saudi Arabia monomer (EPDM), regular butyl Ccompany Methanol Company (RB) and halo butyl (HB)

Cos-Mar Company Caville, A 50/50 joint venture Styrene Ma’aden Phosphate Riyadh, SABIC (30%) and Ma’aden (70%) DAP, MAP, NPS Louisiana, USA with Total Company Saudi Arabia

GARMCO Bahrain SABIC (30.40%), Bahrain Aluminum sheets and can stocks Ma’aden Wa’ad Riyadh, SABIC (15%), Mosaic (25%), and DAP, MAP, NPS, NPK Gulf Aluminum Rolling Mumtalakat Holding Company Al-Shamal Phosphate Saudi Arabia Ma’aden (60%) Mill Company** (37.29%), Iraq (4.71%), Oman Company (2.36%), Qatar Holding Company (2.36%), Kuwait Investment Petrokemya Al-Jubail, A wholly owned affiliate Ethylene, polystyrene, butene-1, Authority (16.98%), Gulf Arabian Petrochemical Saudi Arabia of SABIC propylene, butadiene, benzene, Investment Corporation (5.90%) Company polyethylene, VCM, S-PVC, and ABS Gas Al-Jubail, SABIC (70%) and a group of Oxygen, nitrogen and argon National Industrial Saudi Arabia Saudi Arabian private-sector (Al-Jubail); oxygen and nitrogen Sadaf Al-Jubail, A wholly owned affiliate of SABIC Ethylene, styrene, caustic soda, Gases Company (head office); companies (30%) (Yanbu) Saudi Petrochemical Saudi Arabia ethylene dichloride, and MTBE Yanbu, Company Saudi Arabia (branch) SAFCO Al-Jubail, SABIC (42.99%), GOSI (12.24%), Ammonia, urea, and urea Saudi Arabian Saudi Arabia public investors (44.77%) formaldehyde GPIC Bahrain Joint-venture with equal Methanol, ammonia, and urea Fertilizer Company Gulf Petrochemical partnership for the Petrochemical Industries Company** Industries Company of Kuwait, SABIC Innovative Bay St. Louis, A wholly owned affiliate CYCOLAC™, CYCOLOY™, State of Bahrain, and SABIC Plastics US LLC Mississippi, of SABIC and GELOY™ resins USA Hadeed Al-Jubail, A wholly owned affiliate Steel rebar, wire rod, hot-rolled Saudi Iron and Saudi Arabia of SABIC coils, cold-rolled coils, galvanized SABIC Innovative Bergen op Zoom, A wholly owned affiliate LEXAN™, XENOY™, NORYL™, Steel Company coil, and flat-steel products Plastics B.V. Netherlands of SABIC NORYL™ GTX™ and VALOX™ resins; LEXAN™ sheet, and film Ibn Al-Baytar Al-Jubail, A 50/50 SABIC joint-venture Ammonia, urea, compound ™ National Chemical Saudi Arabia with SAFCO fertilizer, phosphate, and SABIC Innovative Burkville, A wholly owned affiliate LEXAN resin Fertilizer Company liquid fertilizer Plastics US LLC Alabama, USA of SABIC

™ ™ ™ Ibn Rushd Yanbu, SABIC (45.19%), PIF (33.51%), and Aromatics (paraxylene and SABIC Innovative Cartagena, Spain A wholly owned affiliate LEXAN , EXTEM , ULTEM , ™ Arabian Industrial Saudi Arabia a group of Saudi Arabian and benzene), purified terephthalic Plastics España of SABIC and CYCOLOY resins Fibers Company regional private shareholders acid (PTA), bottle-grade chips, ScpA (21.3%) PET, and acetic acid SABIC Innovative Mt. Vernon, A wholly owned affiliate LEXAN™, CYCOLOY™, ULTEM™, ™ ™ ™ Ibn Sina Al-Jubail, A 50-50 joint venture with CTE Chemical-grade methanol, MTBE, Plastics Mt. Vernon Indiana, USA of SABIC VALOX , XENOY , XYLEX , ™ ™ National Methanol Saudi Arabia (a company jointly owned by and polyoxymethylene SUPEC , and SILTEM resins, ™ Company subsidiaries of Celanese and LEXAN sheet and film, and ™ Duke Energy) ILLUNINEX display film

SABIC Innovative Ottawa, A wholly owned affiliate CYCOLAC™, CYCOLOY™, Plastics US LLC Illinois, USA of SABIC and GELOY™ resins SABIC 72 ANNUAL REPORT 2017 DIRECTORY 73

Petrochemicals MANUFACTURING Agri-Nutrients Specialties COMPANIES continued Metals*

COMPANY LOCATION PARTNERSHIP PRODUCTS COMPANY LOCATION PARTNERSHIP PRODUCTS

SABIC Innovative Selkirk, A wholly owned affiliate PPO™ resin, NORYL®, NORYL PPX® Sharq Al-Jubail, A 50/50 SABIC joint-venture with Ethylene, propylene, aromatics Plastics US LLC New York, USA of SABIC and NORYL GTX® resins, and Eastern Saudi Arabia SPDC Ltd (BTX), ethylene glycol (mono, high-impact polystyrene (HIPS) Petrochemical di, tri), linear low-density Company polyethylene (LLDPE), and high- SABIC Geleen, A wholly owned affiliate Polyethylene (HDPE, LDPE, density polyethylene (HDPE) Petrochemicals B.V. Netherlands of SABIC LLDPE), polypropylene, ethylene, propylene, butadiene, MTBE/ Shrouq** Al-Jubail, SABIC (50%), ASAHI Kasei Acrylonitrile, Sodium Cyanide ETBE, benzene, gasoline Saudi Japanese Saudi Arabia Chemicals Corporation (30%), components, styrene, C9 Acrylonitrile and Mitsubishi Corporation resin feed, cracked distillate, Company (20%) acetylene, hydrogen, and carbon-black oil SOCC Al-Jubail, A 50/50 joint-venture between Tri-ethyl aluminum (TEAL) Saudi Saudi Arabia Saudi Specialty Chemicals Geismar Olefins Geismar, SABIC Petrochemicals Holding Ethylene Organometallic Company and Albemarle Plant. Louisiana, USA US, Inc (11.54%) and NOVA Chemicals Company Netherlands BV (81.46%) Specialty Chem Al-Jubail, Wholly owned affiliate of TPO/PP compounds, ETP/PC SABIC UK Teesside, A wholly owned affiliate Ethylene, propylene, Saudi Specialty Saudi Arabia SABIC (Arabian Petrochemical compounds, PC/ABS compounds, Petrochemicals Ltd UK of SABIC benzene cyclohexane, cracked Company – Petrokemya, 99%, and specialty products distillate hydrogen, butadiene, Chemicals Company and SABIC Industrial Investments polyethylene (LDPE) Company 1%) SABIC Polyolefine Gelsenkirchen, A wholly owned affiliate (HDPE, LLDPE) SSNC Ulsan, South A 50/50 joint venture between Metallocene linear low density GmbH Germany of SABIC and polypropylene SABIC SK Nexlene Korea SABIC Industrial Investments polyethylene (mLLDPE), Company Corporate Company and SK Global polyolefin plastomers (POP), headquarters: Chemicals polyolefin elastomers (POE) SAMAC Al-Jubail, A 50/50 joint venture with Methyl Methacrylate (MMA), Singapore Saudi Saudi Arabia Mitsubishi Chemical polymethylmethacrylate (PMMA) Corporation Methyl Acrylate United Al-Jubail, SABIC (75%), Public Pension Ethylene, polyethylene, ethylene Company Jubail United Saudi Arabia Agency (15%), General glycol (EG), and linear-alpha Petrochemical Organization for Social olefins (LAO) SSTPC Tianjin, China A 50/50 joint-venture between Ethylene, propylene, Company Insurance (10%) SINOPEC SABIC SABIC Industrial Investments polyethylene (HDPE, LLDPE), Company and SINOPEC polypropylene, ethylene oxide, Tianjin Petrochemical Yanpet Yanbu, A 50/50 SABIC joint-venture Ethylene, polyethylene, (China Petroleum & Chemical MEG, DEG, , , Co. Ltd. Saudi Yanbu Saudi Arabia with Mobil Yanbu Petrochemical ethylene glycol, polypropylene, Corporation) MTBE, butadiene, and butene-1 Petrochemical Company (an affiliate of pyrolysis gasoline, propylene, Company ExxonMobil Chemical, USA) and hydrogen Saudi Kayan Al-Jubail, SABIC (35%), Ethylene, propylene, Saudi Arabia public shareholders (65%) polypropylene, LDPE, Saudi Kayan Yansab Yanbu, SABIC (51%) and public Ethylene, propylene, ethylene HDPE, ethylene glycol, Petrochemical Yanbu National Saudi Arabia shareholders or owned by glycol (mono, di, tri), linear acetone, polycarbonate Company Petrochemical others (49%) low-density polyethylene (PC), ethanolamines (EOA), Company (LLDPE), high-density ethoxylates, bisphenol A, polyethylene (HDPE), benzene, normal butanol, and polypropylene, butane-1, natural-detergent alcohol (NDA) benzene, toluene/xylene mixture, and MTBE

This list includes all manufacturing affiliates (with the exception of compounding facilities), as wholly owned by SABIC or to which SABIC is partner. It includes each affiliate’s location, types of products produced, and if *Metals products are supplied under the SABIC brand through Hadeed, a fully owned manufacturing affiliate of the company. not wholly owned, the percentage owned by SABIC in such affiliate. A full list comprising the total SABIC group ** During the year ended 31 December, 2017, SABIC acquired 30 percent of the non-controlling interests in Shrouq. Legal formalities holdings worldwide is available on: http://www.sabic.com/corporate/en/ourcompany/manufacturing- for the acquisition of the remaining 20 percent of the non-controlling interests have been completed subsequent to the year ended affiliates/sabic-manufacturing-affiliates. December 31, 2017. SABIC 74 ANNUAL REPORT 2017 DIRECTORY 75

GLOBAL DIRECTORY

ALBANIA AZERBAIJAN BELGIUM CANADA SABIC Innovative Plastics HANGZHOU SABIC Greece MEPE SABIC Turkey SABIC Sales Europe B.V. SABIC Innovative Plastics Guangzhou Office SABIC Innovative Plastics Cosmos Offices SABIC Petrokimya Tic. LTS STI PO Box 5151, 6130 PD Sittard 1 Structured Products Drive Rm 2502, China Mayors Plaza Hangzhou Office Agiou Georgiou 5 Plastikleri San. Tic.A.S. The Netherlands Long Sault No. 189 Tianhe Bei Rd Rm 1703, West Tower Patriarchiko Pylea Saray Mah. Dr. Adnan T: +31 467 222 381 Ontario K0C 1P0, Canada Guangzhou 510620, Fortune Finance Centre Thessaloniki, Greece Buyukdeniz Cad F: +31 102 644 822 T: +90 553 481 99 China No. 37, Jiefang E. Road T: +30 231 308 0310 Akkom Ofis Park Cessas E: [email protected] F: +90 553 492 20 T: +86 203 848 8383 Hangzhou 310016, China F: +30 231 308 0319 Plaza B Block 20 – 21 Floor 44 Normar Road P.O. Box 2004 F: +86 203 848 8266 T: +86 571 876 31747 SABIC Belgium N.V. Umraniye Istanbul, Cobourg, ONK9A 4L7, Canada F: +86 571 876 31748 Geleenlaan 35, B-3620 SHENZHEN ARGENTINA Turkey T: +905-372-6801 Genk, Belgium SABIC Innovative Plastics T: +90 21 66 365 000 F: +905- 373-3994 SABIC (Shanghai) HONG KONG T: +32 895 747 00 Descartes F: +90 21 66 365 050 Trading Co. Ltd. SABIC Innovative Plastics 3668 ZIP B1661AYF CHINA (GREATER CHINA) SABIC Innovative Plastics BOSNIA AND Hong Kong Limited Tortuguitas BAHRAIN SHANGHAI Shenzhen Branch HERZEGOVINA SABIC innovative Plastics SIT Buenos Aires, Argentina ALBA (Aluminum Bahrain) SABIC (Shanghai) Unit 01, 3rd floor, Tower 3 Holding Limited SABIC Hungary Kft. T: +52 232 055 2800 (Regional joint-venture) Trading Co. Ltd. Kerry Plaza, 1-Zhong Xin Si Road Hong Kong Office Duna Tower Office Building F: +54 232 055 2831 PO Box 570, Manama, SABIC Technology Center Futian District, Room 1701, Tower One Népfürdõ u. 22 Bahrain 2550, Xiupu Road Shenzhen 518048, China The Gateway ARMENIA B Building, 10th Floor T: +97 317 830 000 Pudong Shanghai 201319, T: +86 755 2583 8828 Harbour City, 25 Canton Road SABIC Dubai 1138 Budapest, Hungary F: +97 317 662 120 China F: +86 755 2583 8933 Tsimshatsui, Kowloon PO Box 25892 T: +36 188 933 36 T: +86 21 2037 8118 Hong Kong, China Dubai, UAE Gulf Petrochemical +36 188 933 37 CHONGQING F: +86 21 2037 8288 T: +852 2216 5888 T: +971 44 355 888 Industrial Co. F: +36 188 933 38 SABIC Innovative Plastics F: +852 2216 5800 F: +971 44 230 810 (Regional joint-venture) SABIC Innovative Plastics Chongqing Plant BULGARIA PO Box 26730, Manama, (Shanghai) Co. Ltd. No. 2 Xiqu Er Road TAIPEI AUSTRALIA SABIC Greece MEPE Bahrain SABIC Innovative Plastics Shapingba District SABIC Australia Pty Ltd Cosmos Offices, Agiou Georgiou 5 SABIC Taiwan Holding Limited T: +97 317 731 777 International Trading Chongqing 401332, China Suite 2, level 4 Patriarchiko Pylea, Thessaloniki, Taiwan Branch F: +97 317 731 047 (Shanghai) Ltd. T: +86 23 63462000 1C Grand Avenue Greece 55535 7F. No. 8, Sec.3 E: [email protected] Shanghai Plant F: +86 23 63462028 Rosehill, 2142 T: +30 231 308 0310 Min Sheng E. Road 58, Ai Du Road New South Wales, Australia Gulf Aluminium Rolling Mill Co. F: +30 231 308 0319 TIANJIN Taipei 10480 (Regional joint-venture) Wai Gao Qiao Free Zone Taiwan T: +1800 649 112 SABIC Innovative Plastics N. Sitra Industrial Area BRAZIL Shanghai 200131, China T: +886 2 2183 1800 F: + 61 2 9684 5927 Tianjin Office PO Box 20725, Bahrain SABIC Innovative Plastics T: +86 21 3865 9000 F: +886 2 2516 6509 Rm 1912 AUSTRIA T: +97 317 731 000 South America – Indústria e BEIJING Tianjin International Building CROATIA SABIC Deutschland GmbH +97 317 734 600 Comércio de Plásticos Ltda. SABIC (Shanghai) No. 75, Nanjing Road SABIC Hungary Kft. Ernst-Gnoss-Str. 24 F: +97 317 730 542 Av. Pedroso de Moraes Trading Co. Ltd. Tianjin 300050, China Duna Tower Office building 40219 Dusseldorf E: [email protected] 1553 – cj. 42 SABIC Innovative Plastics T: +86 22-2330 4311 Postfach 104865 05419-001 São Paulo – SP, Népfürdõ u. 22 Beijing Branch F: +86 222 330 0995 40039 Dusseldorf, BALTIC STATES Brazil B building, 10th floor, 1138 Tower C, Beijing Yintai Centre Budapest, Hungary Germany SABIC Eastern Europe T: +55 113 708 0500 XIAMEN Kosmodamianskaya No. 2 Jianguomenwai Street T: +36 188 933 36 T: +49 211 171 400 F: +55 113 708 0505 SABIC Innovative Plastics Naberezhnaya 52, Bld 1 Chaoyang District +36 188 933 37 F: +49 211 171 40101 Xiamen Office 115054, Moscow, Russia SABIC Innovative Plastics Beijing 100022, China F: +36 188 933 38 Rm 213, Crowne Plaza SABIC Innovative Plastics T: +7 985 766 69 14 South America – Indústria e T: +86 106 648 5888 Harbour View, Xiamen CZECH REPUBLIC GmbH & Co. KG +7 495 287 92 03 Comércio de Plásticos Ltda. F: +86 108 529 6781 No. 12-8 Zhen Hai Road SABIC Innovative Plastics Pottendorfer Strasse 47 F: +7 495 287 92 02 Rua Manoel Thomaz, 545 GUANGZHOU Xiamen China Czech, s.r.o. 2700 Wiener Neustadt, Austria E: [email protected] 13067-190 Campinas – SP, T: +43 262 239 031 Brazil SABIC Innovative Plastics Fujian, 361001, China Anglicka 140/20 F: +43 262 239 020 BELARUS T: +55 193 781 1000 (China) Co. Ltd. T: +86 592-2057375 120 00 Prague 2 – Vinhorady, SABIC Eastern Europe F: +55 193 281 2144 Nansha Plant F: +86 592-2107375 Czech Republic SABIC Innovative Plastics No. 1 Plastics Ave T: +42 022 051 1400 Kosmodamianskaya SUZHOU Aus GmbH Naberezhnaya 52, Bld 1 Western Industrial District F: +42 023 901 5608 SABIC Innovative Plastics Dr. Karl Lueger Ring 10 115054, Moscow, Russia ETDZ Panyu, Guangzhou 511458, Suzhou Office 1010 Wien, Austria T: +7 985 766 69 14 China DENMARK Rm 812, 8th Floor SABIC Nordic A/S T: +43 26 22 39 00 +7 495 287 92 03 T: +86 208 498 0148 International Building Kogle Allé 2 F: +7 495 287 92 02 F: +86 208 498 0202 No. 2 Suzhou Avenue West DK-2970 Hørsholm, Denmark E: [email protected] Suzhou 215021, Jiangsu, China T: +45 4582 8245 T: +86 512 628 82286 F: +45 4582 0103 F: +86 512 628 82289 SABIC 76 ANNUAL REPORT 2017 DIRECTORY 77

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SABIC Innovative Plastics SABIC Innovative Plastics GREECE SABIC India Pvt. Ltd. INDONESIA IRELAND Denmark ApS France SAS SABIC Greece MEPE & SABIC Innovative Plastics SABIC Asia Pacific Pte. Ltd. SABIC UK Limited Kogle Allé 2 22, Place des Vosges Cosmos Offices India Private Limited Indonesia Stock Exchange Papermill Drive DK-2970 Hørsholm, Denmark La Défense 5 Agiou Georgiou 5 B5, Plot No. 81-85 Building Redditch T: +45 4582 8245 Immeuble le Monge Patriarchiko Pylea Chikkadunnasandra Village Suite 1702, Tower 1, Level 17 Worcestershire F: +45 4582 0103 92979 Paris La Défense Cedex, Thessaloniki, Greece 55535 Anekal Taluk Jalan Jend B98 8QJ, UK France T: +30 231 308 0310 Off Sarjapura-Attibele Sudirman Kav. No. 52 – 53 T: +44 (0)15 275 90570 EGYPT T: +33 (0)1 41 97 82 56 F: +30 231 308 0319 State Highway Jakarta 12190, Indonesia F: +44 (0)15 275 90577 SABIC Africa F: +33 (0)1 41 97 82 53 Near St. Philomena School T: +62 215 140 0055 47th Building, 3rd floor HUNGARY Bengaluru – 562125, India F: +62 215 140 0077 JAPAN P.O. Box 11835, City Center GEORGIA SABIC Hungary Kft T: +91 80 6772 5000 SABIC Japan LLC New Cairo, Egypt SABIC Turkey Duna Tower Office Building SABIC Innovative Plastics Tokyo Office T: + 2 022 249 1910 SABIC Petrokimya Tic. LTS STI Népfürdó u. 22 SABIC India Pvt. Ltd. & SABIC (SEA) Pte. Ltd Tokyo Club Building F: + 2 022 537 01 17 / 21 Plastikleri San. Tic.A.S. B building, 10th floor Innovative Plastics India Indonesia Representative Office Kasumigaseki 3-2-6 Saray Mah. Dr. Adnan 1138 Budapest, Hungary Private Limited Indonesia Stock Exchange Chiyoda-ku ESTONIA Buyukdeniz Cad T: +48 224 323 737 9C, Ega Trade Center Building Tokyo, 100-0013 LLC SABIC Eastern Europe Akkom Ofis Park Cessas F: +48 224 323 740 Poonamalle High Road Suite 1702, Tower 1, Level 17 Japan Kosmodamianskaya Plaza B Block 20 – 21 Floor Kilpauk, Chennai – 600010, Jalan Jend T: +81 3 3593 4700 Naberezhnaya 52, Bld 1 SABIC Innovative Plastics Umraniye Istanbul, India Sudirman Kav. No. 52 – 53 F: +81 3 3593 4709 Kereskedelmi Kft 115054, Moscow, Russia Turkey T: +91 44 4902 5600 Jakarta 12190, Indonesia Duna Tower, Népfürdõ u. 22 SABIC Japan LLC T: +7 985 766 69 14 T: +90 21 66 365 000 F: +91 44 4902 5611 T: +62 215 150 150 B Building, 10th Floor (Japan Technology Center) +7 495 287 92 03 F: +90 21 66 365 050 E: [email protected] 1138 Budapest, Hungary SABIC Innovative Plastics ITALY 2–2 Kinugaoka, Moka GERMANY T: +36 188 933 36 India Private Limited SABIC Italia S.R.L. Tochigi 321–4392, ETHIOPIA SABIC Deutschland GmbH +36 188 933 37 Office No 428 Regus Via Simone Schiaffino 11/19 Japan SABIC Ethiopia Ernst- Gnoss-Str. 24 F: +36 188 933 38 Business Centre 20158 Milano, Italy SABIC Japan LLC Kirkos Sub city, Wereda 8 house 40219 Dusseldorf 4th Floor Prabhavee Tech Park T: +39 02 859741 Moka Plant No. 241 Kebele, Guinea Conakry Postfach 104865 ICELAND Baner, Pune – 411045 F: +39 02 86465472 2–2 Kinugaoka, Moka Tochigi Street, 6th Floor 40039 Dusseldorf, SABIC Nordic A/S T: +91 020 67235829 SABIC Sales Italy S.R.L. 321–4392, Japan Addis Ababa, Ethiopia Germany Kogle Allé 2 SABIC Innovative Plastics India Via Simone Schiaffino 11/19 T: +81 285 80 2318 T: +251 115 571378 T: +49 211 171 400 DK-2970 Hørsholm Private Limited 20158 Milano, Italy F: +81 285 80 2323 +251 115 571446 F: +49 211 171 401 01 Denmark F: +251 115 571449 T: +45 33 32 49 18 Plastics Avenue P.O. Jawahar T: +39 02 3771351 SABIC Polyolefine GmbH Nagar F: +39 02 37713533 KAZAKHSTAN SABIC Dubai FINLAND Pawikerstr. 30 INDIA Vadodara 391320, Gujarat, SABIC Innovative Plastics PO Box 25892 SABIC Nordic A/S 45896 Gelsenkirchen, SABIC India Pvt. Ltd. & SABIC India Italy S.R.L. Dubai, UAE Kogle Allé 2 Germany Innovative Plastics T: +91 265 3068551 Via Simone Schiaffino 11/19 T: +971 44 355 888 DK-2970 Hørsholm, T: +49 209 933 91 10th Floor, Ambience Corporate F: +91 265 3068552 Denmark Towers II 20158 Milano, Italy F: +971 44 230 810 F: +49 209 933 920 0 SABIC India Private Limited T: +45 4582 8245 Ambience Island, Gurugram – T: +39 02 3771351 E: [email protected] (Nepal Liaison Office) KENYA F: +45 4582 0103 122001 F: +39 02 37713533 SABIC Innovative 1st Floor, Maitidevi Complex, SABIC Kenya Haryana, India SABIC Innovative Plastics SABIC Innovative Plastics Plastics GmbH Maitidevi-32, Pacis Center, 4th Floor, T: +91 124 4746191 Italy S.R.L. Finland OY SABIC Innovative Plastics Kathmandu Nepal Waiyaki Way, Westlands, F: +91 124 4029190 Via Ca Trevigliou Italahdenkatu 22B Holding Germany GmbH T: +97 71 5592 491 P.O Box 14819 – 00800 00210 Helsinki, Finland SABIC India Pvt. Ltd. F: +97 75 5913 84 24040 Pontirdo Nuovo (B6), Nairobi, Kenya T: +35 896 211 010 Ernst-Gnoss-Str. 24 & SABIC Innovative Plastics Italy T: +254 20 294 4000 SABIC India Pvt. Ltd. 40219 Dusseldorf India Private Limited T: +39 03 63330772 F: +254 20 294 4111 (Sri Lanka) FRANCE Postfach 104865 781 Solitaire Corporate Park F: +39 03 63330201 SABIC France SAS 40039 Dusseldorf, (Liaison Office) KOREA Andheri Ghatkopar Link Road SABIC Innovative Plastics 22, Place des Vosges Germany 122, Fatima Road SABIC Korea Ltd. Chakala, Andheri East Italy S.R.L. La Défense 5 T: +49 211 171 400 Kadana, Sri Lanka 11320 Seoul HQ Mumbai – 400093, India Via San Francesco d’Assisi 11-13 Immeuble le Monge F: +49 211 171 401 01 T: +94 22 44780 20F, Donghoon Tower T: +91 22 4248 1800 Olgiate Olona (VA), 92979 Paris La Défense Cedex, F: +94 22 32359 317, Teheran-ro, Gangnam-gu F: +91 22 4248 1802 21507 Italy France Seoul, 06151, South Korea T: +39 0 331 349 911 T: +33 (0)1 41 97 83 00 T: +82 2 510 6000 F: + 39 0 331 349 921 F: +33 (0)1 41 97 83 01 F: +82 2 510 6666 SABIC 78 ANNUAL REPORT 2017 DIRECTORY 79

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SABIC Korea Ltd. LITHUANIA MONTENEGRO SABIC Innovative Plastics B.V. Al-Jubail Office Korea Technology Center (KTC) LLC SABIC Eastern Europe SABIC Hungary Kft. SABIC Innovative Plastics SABIC Marketing Ibérica S.A. PO Box 10040, Al-Jubail 31961 1321, Seongnam-daero Kosmodamianskaya Duna Tower Office Building GP B.V. Edificio Euro-3, C/ Saudi Arabia Sujeong-gu, Seongnam-si Naberezhnaya 52, Bld 1 Népfürdõ u. 22 SABIC Innovative Plastics Frederic Mompou 5, 4°– 4a T: +966 (013) 347 7200 Gyeonggi, 13109, 115054, Moscow, Russia B Building, 10th Floor Holding B.V. 08960 Sant Just Desvern F: +966 (013) 347 0400 South Korea T: +7 985 766 69 14 1138 Budapest, Hungary SABIC Global Technologies B.V. Barcelona, Spain Sabtank SABIC Terminal T: +82 31 778 5000 +7 495 287 92 03 T: +36 188 933 36 SABIC Licensing B.V. T: +34 934 703 060 Services Co. F: +82 31 778 5102 E: [email protected] +36 188 933 37 Plasticslaan 1 F: +34 934 736 436 PO Box 10135, Al-Jubail 31961 4612 PX Bergen op Zoom, SABIC Korea Ltd. F: +36 188 933 38 Saudi Arabia MACEDONIA The Netherlands ROMANIA Chungju Plant T: +966 (013) 345 3646 SABIC Greece MEPE MOROCCO T: +31 164 292 911 SABIC Hungary Kft. 488, Gugwon-daero, F: +966 (013) 357 5470 Cosmos Offices SABIC Morocco F: +31 164 292 940 Duna Tower Office Building Chungju-si Agiou Georgiou 5 23, Rue Bani Ritoune Népfürdó u. 22 Yanbu Office Chungcheongbuk-do B.V. Snij-Unie Hi-Fi Patriarchiko Pylea Km 4.2 Avenue, Mohammed 6 B building, 10 floor, 1138 P.O. Box 31656, Yanbu 41912 27324, South Korea Zoutketen 23 Thessaloniki, Greece 55535 Hay Souissi, Rabat, Morocco Budapest, Hungary Saudi Arabia T: +82 43 850 8111 1601EX Enkhuizen, T: +30 231 308 0310 T: +212 530 104 554 T: +36 188 933 36 T: +966 (014) 396 5440 F: +82 43 850 8050 The Netherlands F: +30 231 308 0319 F: +212 537 751 705 +36 188 933 37 F: +966 (014) 396 5332 T: +31 228 317 944 Korea Nexlene Company F: +36 188 933 38 MALAYSIA THE NETHERLANDS F: +31 228 317 278 Ar-Razi Saudi Methanol Co. Research & Development Centre SABIC Innovative Plastics SABIC Capital B.V. E: [email protected] RUSSIA PO Box 10065, Al-Jubail 31961 325 Expo-ro, Yuseong-gu (Malaysia) Sdn. Bhd World Trade Center LLC SABIC Eastern Europe Saudi Arabia Daejeon 34124, South Korea NORWAY Suite 3B-11-3, Level 11 Tower H, 27th floor Kosmodamianskaya T: +966 (013) 357 7800 T: +82-42-866 7220 SABIC Nordic A/S Block 3B, Plaza Sentral Zuidplein 216 Naberezhnaya 52, Bld 1 F: +966 (013) 358 5552 F: +82-42-866-7215 Kogle Allé 2 Jalan Stesen Sentral 5 1077 XV Amsterdam, 115054, Moscow, Russia E: [email protected] DK-2970 Hørsholm, Korea Nexlene Company KL Sental, 50470 The Netherlands T: +7 985 766 69 14 Denmark Al-Bayroni Jubail Fertilizer Co. Ulsan Plant Kuala Lumpur, Malaysia T: +31 203 333 030 +7 495 287 92 03 T: +45 33 32 49 18 PO Box 10046, Al-Jubail 31961 1, Sapyeong-ro T: +60 322 746 198 F: +31 203 333 040 E: [email protected] Saudi Arabia Cheongryang-myeon F: +60 322 733 487 SABIC Europe B.V. PAKISTAN SABIC Innovative Plastics T: +966 (013) 341 6488 Ulju-gun MEXICO PO Box 5151 SABIC Pakistan Pvt Ltd Rus. OOO F: +966 (013) 341 7122 Ulsan, 44987, South Korea SABIC Innovative Plastics Europaboulevard 1 M-123 – 126, Mezzanine Floor Kosmodamianskaya E: [email protected] T: +82 52 208 4200 Paseo de la Reforma, 2620 6135 LD Sittard, Business Arcade Mövenpick Naberezhnaya 52 – Bld 4 F: +82 52 208 4809 Gas National Industrial Lomas Altas, Miguel Hildago The Netherlands Mövenpick Hotel, Club Road 115054 Moscow, Russia Karachi-75530, Pakistan Gases Co. LATVIA 11950 T: +31 467 222 222 T: +7 495 287 92 03 T: +92 21 3563 3229 – 31 PO Box 10110, Al-Jubail 31961 LLC SABIC Eastern Europe Ciudad de Mexico, Mexico F: +31 467 220 000 F: +7 495 287 92 02 Saudi Arabia Kosmodamianskaya T: +51 (55) 1105-6700 E: [email protected] PHILIPPINES SAUDI ARABIA T: +966 (013) 357 5738 Naberezhnaya 52, Bld 1 M: +51 (55) 1105-6799 SABIC Sales Europe B.V. SABIC Asia Pacific Pte Ltd Saudi Basic Industries F: +966 (013) 358 8880 115054, Moscow, Russia San Luis Potosi Plant P.O. Box 5151 Philippines Representative Corporation (HQ) E: [email protected] T: +7 985 766 69 14 Avenida Circuito Mexico No. 170 Europaboulevard 1 Office PO Box 5101, Riyadh 11422 +7 495 287 92 03 Hadeed Saudi Iron & Steel Co. Parque Industrial Tres Naciones 6130 PD Sittard, 18th Floor, Philamlife Tower Saudi Arabia E: [email protected] PO Box 10053, Al-Jubail 31961 San Luis Potosi 78395 The Netherlands 8767 Paseo de Roxas T: +966 (011) 225 8000 Makati City 1226, Saudi Arabia LEBANON San Luis Potosi, Mexico T: +31 467 222 222 F: +966 (011) 225 9000 F: + 31 467 220 000 Philippines T: +966 (013) 357 1100 SABIC LLC Lebanon E: [email protected] Tampico Plant E: [email protected] T: +63 9175298791 F: +966 (013) 358 5000 Mina El Hosn, Park Avenue, Boulevard de los Rios km 4.8 Dammam Office Ibn Al-Baytar National Berytus Parks Bldg 1344 Puerto Industrial Altamira SABIC Europe Manufacturing POLAND PO Box 2629, Chemical Fertilizer Co. 5th Floor Altamira 89608 PO Box 475 SABIC Poland Sp zo.o Dammam 31461 PO Box 10283, Al-Jubail 31961 Block B Ahmad Daouk Street Tamaulipas, Mexico 6160 AL Geleen, ul.17 Stycznia 45A Saudi Arabia Saudi Arabia P.O. Box 11– 2153, T: +51 (833) 229-2500 The Netherlands 02-146 Warsaw, Poland T: +966 (013) 810 8444 T: +966 (013) 341 1100 2011– 8403, Lebanon F: +51 (833) 229-2545 T: +31 464 767 000 T: +48 224 323 737 F: +966 (013) 810 8420 F: +966 (013) 341 1257 T: +96 119 734 44 Ext 4220 or 0 E: [email protected] F: +48 224 323 740 +966 (013) 810 8433 F: +96 119 728 65 MOLDAVA Ibn Rushd Arabian Industrial SABIC Poland Sp. z o.o. SABIC Europe Research SABIC Innovative Plastics Jeddah Office E: [email protected] Fibers Co. ul.17 Stycznia 45A & Development Poland Sp. z.o.o. PO Box 30204, PO Box 30701 02-146 Warsaw, Poland PO Box 319 17 Stycznia 45A Jeddah 21477 Yanbu Industrial City 41912 T: +48 224 323 737 6160 AH Geleen, 02-146 Warsaw, Poland Saudi Arabia Saudi Arabia F: +48 224 323 740 The Netherlands T +48 224 323 722 T: +966 (012) 608 8888 T: +966 (014) 321 8000 T: +31 464 760 207 F +48 224 323 740 F: +966 (012) 608 8810 F: +31 464 760 503 F: +966 (014) 321 8008 SABIC 80 ANNUAL REPORT 2017 DIRECTORY 81

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Ibn Sina National Methanol Co. SOCC Saudi Organometallic Technology & Innovation SLOVENIA SWITZERLAND TURKMENISTAN PO Box 10003, Al-Jubail 31961, Chemicals Company PO Box 42503, Riyadh 11551, SABIC Hungary Kft. SABIC Deutschland GmbH SABIC Dubai Saudi Arabia PO Box 11241 Saudi Arabia Duna Tower Office Building Ernst-Gnoss-Str. 24 PO Box 25892 T: +966 (013) 340 5500 Al-Jubail 31961, T: +966 (011) 499 9333 Népfürdõ u. 22 40219 Dusseldorf Dubai, UAE T: +966 (013) 340 5604 Saudi Arabia F: +966 (011) 265 1101 B Building, 10th Floor Postfach 104865 T: +971 44 355 888 T +966 (013) 356 7950 1138 Budapest, Hungary 40039 Dusseldorf F: +971 44 230 810 Ibn Zahr Saudi European Technical Services Laboratory F +966 (013) 358 6025 T: +36 188 933 36 Germany Petrochemical Co. T: +966 (011) 265 1661 +36 188 933 37 T: +49 211 171 400 UKRAINE PO Box 10330, Al-Jubail 10330, Sharq Eastern F: +966 (011) 265 1686 F: +36 188 933 38 F: +49 211 171 401 01 SABIC Eastern Europe Saudi Arabia Petrochemical Co. Kosmodamianskaya SERBIA T: +966 (013) 341 5060 PO Box 10035, Al-Jubail 31961, SOUTH AFRICA THAILAND Naberezhnaya 52, Bld 1 SABIC Hungary Kft. F: +966 (013) 341 2966 Saudi Arabia SABIC South Africa (Pty) Ltd SABIC Asia Pacific Pte Ltd 115054, Moscow, Russia Duna Tower Office Building E: [email protected] T: +966 (013) 357 5000 23rd Floor, Metropolitan Thailand Representative Office T: +7 985 766 69 14 Népfürdõ u. 22 F: +966 (013) 358 0385 Building CRC Tower, 36th Floor +7 495 287 92 03 Kemya Jubail B Building, 10th Floor E: [email protected] 7 Walter Sisulu Avenue No.87/2, Wireless Road, Lumpini F: +7 495 287 92 02 Petrochemical Co. 1138 Budapest, Hungary PO Box 7193 Sub-district, Phatumwan E: [email protected] PO Box 10084, Al-Jubail 31961, Shrouq Saudi Japanese T: +36 188 933 36 Roggebaai, Cape Town 8001, District, Bangkok 10330, Saudi Arabia Acrylonitrile Company +36 188 933 37 South Africa Thailand UNITED ARAB EMIRATES T: +966 (013) 357 6000 PO Box 10868 F: +36 188 933 38 T: +27 214 096 100 SABIC Dubai F: +966 (013) 358 7858 Jubail Industrial City 31961, SABIC Innovative Plastics P.O. Box: 25892 SINGAPORE F: +27 214 096 101 E: [email protected] Saudi Arabia (Thailand) Co., Ltd. Dubai Business Bay, SABIC Asia Pacific Pte. Ltd T: +966 (013) 340 6707 SPAIN 15th Fl., Thaniya Plaza Building Vision Tower Petrokemya Arabian One Temasek Avenue F: +966 (013) 340 6878 SABIC Marketing Ibérica S.A.U. 52 Silom Road Floor 50 Petrochemical Co. # 06-01 Millenia Tower, Edificio Euro-3 Suriyawong, Bangrak Office No. 5001 PO Box 10002, Al-Jubail 31961, Specialty Chem Saudi Singapore 039192 C/Frederic Mompou, 5, 4º – 4A Bangkok 10500, Thailand Dubai, UAE Saudi Arabia Specialty Chemicals Company T: +65 655 725 55 08960 Sant Just Desvern T: +66 2 2312323-4 T: +971 (4) 248 6800 T: +966 (013) 358 7000 PO Box 10273, Al-Jubail 31961, F: +65 653 181 01 Barcelona, Spain F: +66 2 2312322 F: +971 (4) 244 1918 F: +966 (013) 358 4480 Saudi Arabia E: [email protected] T: +34 934 703 060 E: petrokemya@petrokemya. T: +966 (013) 356 7900 SABIC Innovative Plastics SABIC Innovative Plastics F: +34 934 736 436 UNITED KINGDOM sabic.com F: +966 (013) 358 7577 (Thailand) Co., Ltd. (SEA) Pte. Ltd. SABIC UK Limited E: [email protected] SABIC Sales Spain, S.L. 64/22 Moo 4 Tumbol Pluak Sadaf Saudi Petrochemical Co. SABIC Innovative Plastics Papermill Drive, Redditch C/ Frederic Mompou 5, 4°– 4a Daeng Amphur PO Box 10025, Al-Jubail 31961, United Jubail United Singapore Pte. Ltd. Worcestershire 08960 Sant Just Desvern Pluak Daeng, Rayong 21140, Saudi Arabia Petrochemical Company 23 Benoi Road B98 8QJ, UK Barcelona, Spain Thailand T: +966 (013) 357 3003 PO Box 10085, Al-Jubail 31961, Singapore 629895 T: +44 (0)15 275 90570 T: +34 934 703 060 T: +66 389 270 00 F: +966 (013) 357 3343 Saudi Arabia T: +65 621 041 00 F: +44 (0)15 275 90577 T: +966 (013) 359 5000 F: +34 934 736 436 F: +66 389 552 44 E: [email protected] F: +65 686 130 63 SABIC UK Petrochemicals F: +966 (013) 359 5012 SABIC Innovative Plastics SAMAC Saudi Methyl SABIC SK Nexlene Company TUNISIA Limited España SCpA Acrylate Company Yansab Yanbu National Pte Ltd SABIC Tunisia Wilton Centre SABIC Innovative Plastics GP P.O. Box. 10003, Al-Jubail 31961, Petrochemical Company One Temasak Avenue 3, Avenue Hassib Ben Redcar BV SCoM Saudi Arabia PO Box 30925 #09-04 Millenia Tower AmmarLes Berges du Lac, TS10 4RF, UK Ctra. de Cartagena a Alhama T: +966 (013) 340 5500 Yanbu Industrial City 41912, Singapore, 039192 1053 Tunisia T: +44 (0)16 424 53366 de Murcia, Km 13 F: +966 (013) 340 5604 Saudi Arabia T: +65 6470 9460 T: +216 70 011 320 F: +44 (0)16 428 34608 T: +966 (014) 321 9100 30390 La Aljorra F: + 216 71 860 735 E: [email protected] SAFCO Saudi Arabian F: +65 6470 9479 F: +966 (013) 321 2483 Murcia, Spain Fertilizer Co. SABIC Innovative Plastics Ltd. E: [email protected] SLOVAKIA T: +34 968 129 100 TURKEY Papermill Drive, Redditch PO Box 11044, Al-Jubail 31961, SABIC Poland Sp z.o.o. SABIC Turkey Worcestershire Saudi Arabia Yanpet Saudi Yanbu ul.17 Stycznia 45A SWEDEN SABIC Petrokimya Tic. LTD STI B98 8QJ, UK T: +966 (013) 341 1100 Petrochemical Co. 02-146 Warsaw, Poland SABIC Nordic A/S Plastikleri San. Tic. A.Ş. T: +44 (0) 15 275 90570 F: +966 (013) 341 1257 PO Box 30333 41912 T: +48 224 323 737 Kogle Allé 2 Saray Mah. Dr. Adnan Yanbu Industrial City 41912 DK-2970 Hørsholm, Denmark Buyukdeniz Cad. F: +44 (0) 15 275 90577 Saudi Kayan F: +48 224 323 740 21441, Saudi Arabia T: +45 33 32 49 18 Akkom Ofis Park Cessas Petrochemical Co. T: +966 (014) 396 5000 Plaza B Block PO Box 10302, Al-Jubail 31961, Saudi Innovative Plastics F: +966 (014) 396 5006 20–21 Floor Saudi Arabia Sweden AB E: [email protected] Umraniye Istanbul, Turkey T: +966 (013) 359 3300 Solna Strandväg 78 T: +90 216 636 5000 F: +966 (013) 359 3111 171 54 Solna, Sweden F: +90 216 636 5050 T: +45 33 32 49 18 SABIC 82 ANNUAL REPORT 2017

GLOBAL DIRECTORY continued

UNITED STATES Columbus, IN Washington, DC SABIC Americas, Inc. 945 S Marr Road 1001 G Street NW, 500E SABIC Americas Region Columbus, IN 47201, USA Washington, DC 20001, USA 2500 City West Boulevard T: +812-372-0197 T: +1 202 621 2544 Houston, TX 77042 USA F: +812-372-0233 F: +1 202 621 2546 T: +1 713-430-2301 Wixom, MI UZBEKISTAN SABIC Technology Center 31220 Oak Creek Drive SABIC Dubai 1600 Industrial Boulevard Wixom, MI 48393, USA PO Box 25892 Sugar Land T: +1 248 926 4200 Dubai, UAE TX 77478, USA F: +1 248 960 1143 T: +971 44 355 888 T: +1 281 207 5500 Bay St. Louis, MS F: +971 44 230 810 F: +1 281 207 5550 3531 Port and Harbor Drive VIETNAM Polymer Processing Bay St. Louis, SABIC Vietnam Company Ltd Development Center MS 39520, USA Unit 3, Level 40 55 Merrill Road Huntersville, NC Bitexco Financial Tower Pittsfield, MA 01201, USA 9930 Kincey Ave 02 Hai Trieu Street T: +413-448-4688 Huntersville Ben Nghe Ward, District 1 Burkville, AL NC 28078, USA Ho Chi Minh City, Vietnam 1 Plastics Drive T: +1 800 752 7842 T: +84 028 39141010 Burkville, AL 36752, USA F: +1 888 752 7842 F: +84 028 39142088 T: +1 334 832 5000 Selkirk, NY Hanoi Representative Office Ottawa, IL 1 Noryl Ave Suite 2102, East building, 2148 North 2753rd Road Selkirk, NY 12158, USA Lotte Center Hanoi Ottawa, IL 61350, USA T: +1 518 475 5011 54 Lieu Giai, Ba Dinh, Hanoi T: +1 815 434 7000 Vietnam Exton, PA T: +84 2435772518 Mt. Vernon, IN 475 Creamery Way F: +84 2435772515 1 Lexan Lane Exton, PA 19341, USA Mt Vernon, IN 47620, USA T: +1 610 363 4500 T: +1 812 831 7000

This list includes all material affiliates (including sales organizations), as wholly owned by SABIC or to which SABIC is partner, on the basis of their country/countries of operations. A full list comprising the total SABIC group holdings worldwide is available on: http://www.sabic.com/corporate/en/ourcompany/manufacturing- affiliates/sabic-manufacturing-affiliates. Forward-looking statements: This document may contain “forward-looking statements” – that is, statements concerning potential future events, or that relate to the expected future business, financial performance or financial condition of our company or others. Such statements often contain words such as “expect,” “intend,” “anticipate,” “plan,” “see,” “believe,” “seek,” or “will.” By their nature, forward-looking statements address matters that are uncertain. Many factors could cause our actual results to be materially different than those expressed in our forward-looking statements. Specific examples include: changes in future economic and financial conditions, including volatility in raw material and commodity prices; interest and exchange rates; the value of financial assets; and potential market disruptions or other impacts arising in our company’s key markets. We disclaim any undertaking to update our forward-looking statements. Unless otherwise noted, SABIC and brands marked with ™ or ® are trademarks of SABIC or its subsidiaries or affiliates. Any brands, products or services of other companies referenced in this document are the trademarks, service marks and/or trade names of their respective holders. Responsible Care is a trademark of the American Chemistry Council. This document uses Sappi Magno paper. All fibers are from sustainable and controlled sources. It is FSC® PEFC® certified and is fully recyclable. BACK COVER

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