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SABIC December 4, 2012 INITIATION OF COVERAGE EQUITY RESEARCH SABIC: POSITIONED AMONG LEADING NAMES OF THE INDUSTRY Sabic is one of the world’s leading diversified chemical companies. It generates annual revenues exceeding $50 billion, securing a position among the world’s largest chemical firms. The company ranks 6th largest in revenues against its global rivals, comprised of chemical producers and the chemical units of the integrated oil producers. Sabic is among the top producers of polyethylene, polypropylene, advanced thermoplastics, glycols, methanol and fertilizers. Chart 6: Top Companies by Chemical Sales (USD mn) Source: ICIS, Bloomberg With total assets of c$89 billion, Sabic ranks 5th largest amongst these firms. In terms of market cap, Sabic’s value exceeds $71 billion, which also makes it the 6th largest company in the industry. As a regional player, Sabic has grown, organically and via acquisitions, to reach the top ranks within its league. With a committed growth strategy in place, expansions underway and massive financial flexibility, Sabic is poised to retain its leading spot in the industry. Chart 7: Market Cap of Peers (USD mn) Source: Bloomberg 6
SABIC December 4, 2012 FOOTNOTES INITIATION OF COVERAGE EQUITY RESEARCH In terms of production volumes, Sabic is the world’s fifth largest producer of polyolefins, producing over 8 million tons of polyethylene and polypropylene. However, the bulk of Sabic’s polyolefins output is polyethylene, with output near 6 million tons. Chart 8: Approximate Production Capacities of Leading 5 Polyolefin Producers (mn tons) Source: Borealis Facts and Figures 2011/12 Sabic’s product rankings are as follows: 1 Sabic ranks as world’s largest producer of Ethylene glycol 11 , MTBE, Granular Urea, Polyphenylene and Polyether Imide 12 . 1 Sabic ranks as world’s 2nd largest producer of Methanol and Polycarbonate 13 . 1 Sabic ranks as world’s 3rd largest producer of Polyethylene, Polybutylene Terephtalate and Engineering plastics 14 . In regards to its steel business, Sabic owns one of the largest steel manufacturers in the MENA region. It has an annual production capacity of more than 5.2 million tons, whereby steel rebars make up c75% of total steel output. Moreover, Hadeed enjoys a market share of over 25% in the GCC rebar market 15 . With such rankings among its industry peers, Sabic is best-positioned to capitalize on any upturn in the global markets. 11 Ethylene glycol output amounted to 6.7 million tons for 2011 or 9.7% of Sabic’s total output (Source: Sabic) 12 Source: Sabic 13 Source: Sabic 14 Source: Sabic 15 Source: MEED 7
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