28 Our Chemical Business <strong>ExxonMobil</strong>’s unique mix of chemical business lines delivers superior performance relative to the competition throughout the business cycle. The Company holds strong positions in many of the largest-volume and highest-growth petrochemicals. In fact, over 90 percent of our chemical capacity is employed in businesses where we rank first or second in market share by worldwide volume. Premier Petrochemical Company Return on average capital employed (10-year) . . . . . . 14 percent Businesses ranked 1 or 2 by market share . . . . . . . >90 percent Capital employed (at year end) . . . . . . . . . . . . . . . . . . $15 billion Prime product sales (tons) . . . . . . . . . . . . . . . . . . . . . . 28 million Percent integrated capacity . . . . . . . . . . . . . . . . . . . >90 percent Product marketing diversity . . . . . . . . . . . . . . . . . >150 countries Our high-volume commodity chemical portfolio, a growth driver in times when the global economy is expanding, provided strong earnings in <strong>2004</strong>. We are one of the largest producers of olefins, a basic petrochemical building block that is used as a raw material in a variety of consumer applications including packaging, automotive parts, and household goods. We are the largest producer of polyolefins, which include polyethylene, the largest-volume plastic; and polypropylene, one of the fastest growing polymers. OUR CHEMICAL STRATEGIES We derive strong competitive advantages from our unique combination of low-cost feedstocks, proprietary technology, lower costs through operational excellence, product application expertise, and integration synergies. Our competitors, both chemical companies and other major oil companies, may benefit from one or more of these attributes. But none of the competition has been able to replicate the advantage we gain from the combination of the parts. Our strategies capitalize on these advantages and are highlighted below: ■ Focus on businesses that capitalize on core competencies; ■ Capture full benefits of integration across all <strong>ExxonMobil</strong> operations; ■ Continuously reduce costs to achieve best-in-class performance; ■ Build proprietary technology positions; and, ■ Invest selectively in globally advantaged projects. EXXON MOBIL CORPORATION • <strong>2004</strong> SUMMARY ANNUAL REPORT <strong>ExxonMobil</strong> Chemical leads the industry with innovative applications of complex catalyst technologies and process integrations that drive more efficient production and stronger margins for our diverse slate of products. Profitability continued to improve in our aromatics business in <strong>2004</strong> where industry demand grew by 6 percent. We are the largest producer of paraxylene, the main raw material in polyester fibers and polyethylene terephthalate (PET) recyclable bottles; and benzene, a primary component in a broad array of products ranging from nylon to polystyrene. In addition to being a leading supplier of primary petrochemical products, we also have a premier position in highly profitable specialty chemicals. Earnings for these products are less volatile than commodity petrochemicals and, over the business cycle, provide a significant return uplift to the entire portfolio. <strong>ExxonMobil</strong> continues to grow and strengthen these businesses through new product development and expansion into new markets. We manufacture our products in 55 wholly owned and joint-venture facilities around the world. Our sites are located to benefit from low-cost raw materials and to optimize supply into the major demand centers. Key Products Meet Diverse Consumer Needs ■ Commodities ● Specialties Products ➤ Markets Polyolefins Food packaging Films Synthetics Elastomers Olefins Plasticizer/Oxo Aromatics Specialty Fluids Butyl Rubber Adhesive Polymers Solvents Storage containers Synthetic fibers Automotive parts Lubricants Inks Tires Adhesives Soda bottles Diapers Pesticides
C HEMICAL 29 Above – Integration at many sites, including our Baton Rouge refinery and chemical complex, enables us to optimize production to the highest-value outlet. Below – We manufacture adhesive polymers – used to make tape, labels, and other adhesive products – in North America, Europe, Japan, and China.
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