Partnering with our Clients

to deliver winning Growth Strategies

Introduction to Frost & Sullivan

December 2017
Agenda

1 Frost & Sullivan Introduction

2 Our Global Footprint & Mission : the Growth Cycle

3 Frost & Sullivan Focus on Industries

4 Visionary Sciences

5 Mega Trends and their Impact

6 Digital Transformation & its Impact

7 Frost & Sullivan Services & Solutions: GPS, GC, GIS and GLS

8 Voice of The Customer Research

 Frost & Sullivan
Clients’ trusted Growth Partner since 1961, supporting their Growth, Innovation and
Leadership Journey

 Leading Global Growth Consulting Firm,

48 offices in 35 countries
– Local expertise, global context & networks

 Facilitates expansion across all the stages of

the growth cycle through:
– Strategic market-competitive business intelligence
– Strategy advisory services
– Implementation support & follow-through

 1500 consultants/analysts, combining superior

sector and functional expertise

 Pro-active, constant focus on 14 industries

globally, unique network of industry contacts

 Premier track record to support outcome based,

end-to-end Growth Strategies across the world
Our Footprint
48 Offices in 35 Countries; Global reach, local expertise

• 55 years+ of experience
• 48 offices worldwide  global coverage & local expertise
• Sector-based organisation
• 1,500+ employees across the globe, of which >800 consultants & analysts
 Our Mission
Support our clients to build and implement winning growth strategies, leveraging a unique
blend of skills & assets

The Growth Cycle

Database of market,
Market Research technical, economic &
financial research,
Learning & Development & Best Practices available through a
Specific learning programs to subscription model
support the teams responsible for
initiative implementation

Growth Implementation Megatrends

Supporting our clients’ execution & Technologies
activities through tailored best Turning global transforming trends
practices implementation programs into company specific growth
opportunities

Branding
& Events Customer Research &
End-to-end marketing solutions to educate your Competitive Intelligence
customers, generate leads and support you in Bespoke research & strategy
establishing your brand as an industry leader projects to address client’s specific
requirements and objectives
Source: Frost & Sullivan
Dedicated teams focused on 14 industries, at global & regional level
Unique capacity to identify & capture innovation opportunities

Public Sector & Government

Minerals & Mining Aerospace, Defence & Security

Measurement &
Mobility
Instrumentation

Digital Business &

Transformation Financial Services

Industrial
Automation Visionary Sciences
& Process Control

Transformational
Consumer Technologies
Health

Energy & Power Environment & Building

Systems Technologies

Electronics & Security Source: Frost & Sullivan

 Our industry focus covers a large number of chemicals, materials,
markets & technologies

Coatings, Other Food and

Plastics and Specialty
Adhesives and Packaging Performance Beverage
Polymers Chemicals
Sealants Materials Ingredients

• Compounding • Automotive • Rigid Packaging • Building and • Fuel and Fuel • Emulsifiers
• Thermoplastics • Architectural • Flexible Packaging Construction Additives • Enzymes
• Masterbatches • Industrial • Beverage Packaging Materials • Lubricants • Soy Ingredients
• AR Coatings • Powder Coatings • Pharma Packaging • Interiors-Deco • Automotive • Starch-derived
• Reinforced Plastics • Additives • Food Packaging • Advanced Lubricants Ingredients
• Engineering Plastics • Elastomeric Coatings • Shrink and Stretch Materials for • Synthetic Lubricants • Flavors
• Automotive Plastics • Inkjet Inks Wrap Packaging High • Water Management • Functional Foods
• Composites • Laserjet • Aseptic Packaging Performance Chemicals • Antioxidants
• Plastic Additives • Pigments & Dyes • Retort Packaging Applications • Oleochemicals • Probiotics
• • Laminates • Biofuels
Pressure Sensitive • Caps & Closures • Nutraceuticals
• Pulp and Paper
Adhesives • Packaging Additives • Thermal & Sound • Products and
Chemicals
• Hotmelt Adhesives Insulation Supplements
• Textile Chemicals
• Asian Paint Database • Exteriors-Sliding • Animal Foods
• Oilfield Chemicals

Source: Frost & Sullivan

7
Dynamic and Attractive Growth Sectors of the Chemicals Industry
A Perspective from the VS Team and its focus on eight high growth potential areas

Lightweighting &
Smart Wearables IoT / IIoT Smart Packaging
EVs

Additive
Renewables &
Bio-based Materials Manufacturing Health & Wellness
Energy Efficiency
[3D Printing]

Source: Frost & Sullivan

8
 Compelling expertise, tools and processes for each stage of the
Growth Cycle, tailored to each client’s unique situation & needs

Generation Qualification Strategy Implementation Monitoring &

Evaluation

Mergers & acquisitions

New product development
Generation of viable
Growth New product launch implementation options
Workshops Growth
Excellence Customer strategy Detailed benefits
5. Handover

Matrix statement
4. Roll-out

Geographic expansion
3. Design/
Feasibility analysis Development

Industry & 2. Planning

Vertical expansion
Technical 1. Business Case
Development

Expertise Risk reports

Strategic partnering
Market
Engineering Impact analysis
Technology strategy

Competitive strategy
Research
Database Distribution channel optimisation

Growth Innovation
Growth Growth
Growth Team Leadership GIL
Accelerating Partnership
Membership Community University
Solutions Services
Source: Frost & Sullivan
 Top 13 Mega Trends we track on a continuous basis
A unique source of insights and best practice to fuel disruptive growth strategies

Mega Trends Universe* BRICKS & CLICKS

Digital kiosks SOCIAL TRENDS
NEW BUSINESS
Gen Y MODELS
Interactive stores SMART IS THE
NEW GREEN Women empowerment Co-creation
COGNITIVE ERA New retail
CONNECTIVITY & logistics models Smart technologies Heterogeneous Circular economy
CONVERGENCE Machine learning
Smart products society Personalisation &
Quantum computing Integrated omni- HEALTH WELLNESS
Big data Middle class customisation
channel marketing Smart cities & WELL-BEING
Augmented reality/ Blockchain
Value for money
Virtual world Mind, body, soul
Sharing
Connected living E-health, m-health
Space jam Gene therapy
3D/4D printing Non invasive surgery
URBANISATION: FUTURE OF
CITY AS A INFRASTRUCTURE FUTURE OF ENERGY
CUSTOMER
Transport infrastructure Availability of
ECONOMIC Mega corridors
Deep sea mining resources FUTURE OF
TRENDS Mega cities MOBILITY
Future of water Energy harvesting
Future of resources Mega regions infrastructure Smart grids Micro-mobility
Trade and policy Mega slums Autonomous cars
INNOVATING High-speed rail Renewable mix
TO ZERO Next game changers Telematics based
Shale gas
insurance
Zero accidents
Car sharing
Carbon neutral cities
Connected cars
Zero target by cities Integrated mobility

*sub trends
examples
only and not
exhaustive
Source: Frost & Sullivan
Leveraging our understanding of disruptive technologies and
industries, to drive the digital transformation journey with our clients

Utilities Smart Grids

Automotive Connected Cars

Healthcare Connected Health

Construction & Buildings Smart Buildings

Manufacturing Smart Manufacturing

Connected, Modular
Urban Management and Sustainable Smart Cities
Traceability of
Chemicals

Digital Innovation
Chemical
Industry 4.0
Digital Transformation of Chemicals
Source: Frost & Sullivan

11
 Digital Transformation Use Cases Across Industries
Cross sector view of use cases and emerging horizontals of services

Verticals Horizontals
Retail Marketing
• 360°view of the customer • Market research
• Real time promotions • Targeted
• Click stream analysis advertising
• Product creation
Financial Services
• Customer profiling Customer service
• Fraud detection • Personalisation
• Identity services • Fraud detection
• Identity services
Healthcare
• Personal health monitoring Logistics
• Remote healthcare • Supply chain management
• Epidemic early warnings • Predictive maintenance
• Distribution
Telecom
• 360° view of the customer
Geolocation
• Location based services
• Location based services
• Local advertising
• Navigation

Automotive
• Usage based Intelligent networks
insurance • Smart grids
• Predictive • Smart city platforms
maintenance
• Connected navigation Source: Frost & Sullivan

12
 Digital Transformation will affect many aspects (domains) of the
Chemicals Industry
The detailed exploration of each of these 7 domains is necessary for understanding DT
Digital platforms such as social media The use of digital technologies by the
were critical in enabling AkzoNobel’s electricity industry is enabling smarter
Imagine Chemistry challenge to bring sourcing by users in the chemical industry
innovative solutions to market
I. Digital II. Digital
Air Liquide’s Connect digital plant concept
Innovation Sourcing emphasises the importance of collaboration
in this, as in many aspects of digital
transformation
Enabling Digital Technology

IV. Digital
III. Digital Plant Business By applying digital technology to multiple
aspects of its business models, Toray has
Models created enormous improvements to its
sustainability

V. Digital
Products The segments of the chemical industry with
the most advanced digital product offering
are industrial gases, and water treatment
chemicals

VI. Digital Customers “Digital customers” is the domain already

being addressed by the greatest number of
chemical companies

Digital marketing concepts will be a critical

Digital transformation can encompass many VII. Digital Marketing enabler of traceability for consumers, giving
different initiatives. Critical to successfully defining them more transparency over the chemicals
the scope of this research will be the enabling and materials used in the goods they buy
technologies, as shown on the following slide Source: Frost & Sullivan

13
Frost & Sullivan defines Digital Transformation in the Chemicals
Industry through two clusters
These definitions will set the scope of coverage of our research
Universal enabling technologies
Big data analytics
Cloud infrastructure
Artificial Intelligence
Internet of Things
Augmented Reality
Social media
communication platforms
Autonomous robotics
1 2
Digital concepts specific to each of the 7 individual domains
Chemical companies taking a
holistic view of the opportunities
from big data analytics includes
Eastman and Evonik
A wide range of digital initiatives
in the chemicals industry are
enabled by cloud infrastructure
Uses range from predictive
demand forecasting, to analysing
unwanted chemistry in plants *
Sumitomo Chemical has
developed a strong strategic plan
to leverage IoT technology across
multiple business domains
An integral part of a digital plant; it
is also a critical component of
many digital customers and can
improve safety
Digital marketing and much more
besides: crowd-sourced
production innovation; internal
information-sharing etc.
The biggest overall trend in
disruptive technologies; robots
have an important role in the
chemicals industry too
Supercomputer virtual
Digital Innovation
experiments
Leveraging digital grid technology
Digital Sourcing for access to more sustainable
electricity
Digital procurement and e-
Digital Business Models
commerce
Many terms are used to describe
Digital Plant the digitalization of chemical
plants, including “Industry 4.0”
The digital product itself as a
Digital Product concept (data monetisation), to
complement physical chemicals
Chemical companies must have
solutions to meet the needs of
Digital Customers
digital transformations in their
end-markets
A well established phenomenon, but
one that is allowing the chemical
Digital Marketing
industry to better reach and inform its
end-users
Source: Frost & Sullivan
14
Client Engagement Model
Focus on renewable relationships, to deliver superior client value & monetization
opportunities

Increasing levels of customization leading to higher revenues and “stickiness” with clients

Growth Visioning Growth Growth Growth

Environment Scenarios Pipeline Strategy Implementation

Where are we? What might the Generation, How do we Best practices
Market Analysis future bring? Evaluation & get there? implementation
Fact Foundation Macro to Micro Prioritization of
Opportunities

Growth Partnership Service Growth Consulting

Private GIL Growth Growth Growth

Briefings Strategy Workshop Implementation
Dialog Solutions

Driving Transformational Growth for our Clients

Though a structured process and global delivery platform
Source: Frost & Sullivan

15
Our Growth Partnership Services
A unique combination of high quality research & easy access to industry thought leaders

Research Deliverables Interactive Deliverables

Industry Technology Mega Trends Analyst Growth and Client specific

Research Research Research briefings strategy workshops Deliverable

Analyst Thought Knowledge-

Whitepapers
hours leadership videos as-a-service

Industrial
Digital Transformational
TechVision Mobility Automation and
Transformation Health
Measurement

Electronics & Minerals and Energy and Visionary Aerospace &

Seecurity Mining environment Science Defense

Value Proposition

Ongoing relationship Access to in- Networking opportunities

with industry experts depth content through high profile events

Source: Frost & Sullivan

17
Research deliverables are carefully designed
They cater to various business needs and strike balance between long term trends and short
term insights
Deliverable Description of Deliverable Benefit to the subscriber

Proprietary 360research of growth opportunities includes Provides strategic recommendations to

Industry Research
market dynamics , forecast, competitor analysis , future address relevant growth opportunities,
(Planned )
outlook. and accelerate growth.

Analyze effect on entire eco-system and

Mega Trends Deep-dive qualitative research into the long term strategic
uncovers opportunities in new business
(Planned) impact of key issues/trends on a given sector/industry.
models, re-alignment of value chain etc

Customer preferences, priorities &

Voice of Customer Customer-focused research capturing comprehensive on- expectations and actionable insights
(Planned ) ground insights on your industry

Deep-dive global intelligence on R&D breakthroughs, disruptive
Tech vision
technologies, innovative applications and transformative
(Planned )
companies spread across nine technology clusters.
Keep tab on disruptive technologies in
start-ups to Fortune 1000, labs and
research institutes

Growth
Powerful top-level research focused on growth Create a growth pipeline based on strong
Opportunities
opportunities emerging from disruption/ innovation market knowledge
(Planned )

Analyzes effect on market direction and

Growth Insights Deep-dive qualitative research into the strategic impact of
stakeholders, based on recent
(Ad-hoc) key issues/trends on a given sector/industry.
developments

Frost Perspective Concise, timely and focused insights into emerging events swift and actionable analysis that drives
(Ad-hoc) with strategic relevance/implications for the future direction clarity in strategic decision making.

Source: Frost & Sullivan

18
Interactive deliverables
They are designed to meet specific client needs and provide immense value from the
subscription
Deliverable Description of Deliverable Benefit to the subscriber

Analyst Interaction with industry expert/ author of the Quick insights on key issues, enrichment by
report for clarifications / queries analyst’s perspectives
Hours

Update you on latest research highlight the top

Analyst Online briefings and Webinars by senior analysts
trends and their impact on industry
Briefing

Growth Collaborative sessions between client teams/ Understand, analyze and help you prioritize your
Workshops analyst teams growth options

Marketing document or video to showcase your Position your innovation, breakthru’s to your
Whitepapers prospective clients, partners and stakeholders
innovation / solution

Thought To communicate the latest trends within your

Video showcasing F&S analysts and industry
leadership company or channel partners without distortions
leaders explaining emerging trends
videos

Knowledge Dedicated analysts providing short turn around, To create quick insights, management meeting
as a service research / analysis deliverables on demand summary presentations

Client specific Customized but non-exclusive research services Get tailor made deliverables at marginal extra
Deliverable (CSD) that provide specific information price as part of annual service

Source: Frost & Sullivan

19
Invest in the Future With Frost & Sullivan Research
Average Return on Investment 30~40 times achieved by GPS subscribers

ROI

30~40*
Frost & Sullivan’s
EACH YEAR Times of their research and analysis
FROST & SULLIVAN
Investments spans
DEVELOPS
OVER

2000+ Our research

content has
1,000
Research deliverables INDUSTRIES
OVER Driving clarity in
strategic thinking

EACH HOUR
237,000
DOWNLOADS
$120,000 per year
WORTH
of content is downloaded
by our client partners
through dedicated
frost.com portal

* based on a sample of leading customers

20
Our Growth Consulting Approach
Our unique approach to growth consulting means we deliver projects with high impact for
your organisation
Traditional approach
“Boiling the ocean”
• Lack of focus leads to everything
needing to be analysed
Process driven
• Tend to have a standard process
driven approach which is not adaptive
to corporate clients needs
Strategy driven
• Best work on defining strategies but
lack of understanding of technologies
behind the scene
Lack of ownership
• Lack of engagement from key
stakeholders on a day-to-day basis
leads to a consultant-led model
Generalists
• Diverse teams which learn as they go
and not industry experts
Frost & Sullivan approach
Hypothesis-led analysis
• We are able to use experience and
logic to inform likely areas where
benefits can be added
Value driven
• Clients expectations at the center of a
flexible process which evolves along
project key findings
Technology driven
• A dedicated team conduct a thorough
review of technologies to build a
bottom-up strategy
Steering group meetings drive the
process
• We ensure stakeholders are appraised
of key messages beforehand
Industry experts, not generalists
• Our analysts and consultants have
industry experience and are dedicated
to their industry Source: Frost & Sullivan
21
The Growth Implementation Solutions (GIS) Team
Our Growth Implementation Solutions team can support in the full implementation of project
findings
Project Structuring Financial Planning
• Business Requirements Gathering • Business Case Development
Plan • Project Plan Generation • Cost Estimation/ Tracking
• Critical Path Identification • Benefits/ ROI Tracking
• Project Team Selection/ Structuring • Chargeback
• Effort Estimation/ Tracking • Vendor Management

Business Process Management

• Business Processes/ Procedures
Design/ • Service Level Agreements
Develop • Systems Selection, Integration, Retirement
• Organization Design
• Change Management & Training

Project Management
• Resource Allocation
Rollout • Workflow Documentation
• Progress Monitoring & Status Reporting
• Project Plan Maintenance
• Issue Tracking/ Resolution Source: Frost & Sullivan

Communications Audit Facilitation

• Executive Sponsor Reports/ Presentations • Scope & Deliverables Management
Support • Management Team Meetings • KPI/ Quality Monitoring
• Status Reports & Management Dashboards • Control Measures
• Extended Audience Communications • Document Archival & Recordkeeping
• Project Website • Signoff Process

22
M&A Specialist Advisory Team
We have a specialist advisory team working in financial services with capabilities at all stages
of the M&A process

M&A Strategy
Support
Acquisition
Screening
• Help you align Commercial
M&A activity as Due Diligence
part of growth • Develop Merger
strategy investment thesis Integration
• Work with you to • Enhance deal flow • Full CDD: markets, Divestitures
decide where to by screening operations,
invest and where targets based on modelling & • Review business
to divest set criteria valuation case
• • • • Assess divestiture
• Prioritize growth Develop a road Strategy & Develop road map
options & timing
opportunities map to approach business plan for integration
• • Prepare the
• Develop tailored targets review Short list of critical
M&A programmes • Insights through actions businesses for sale
(includes building
based on previous world-class • Rigorous follow-
the exit story)
experience diligence to prove through on long
or disprove the list of integration • Transaction
deal thesis tasks support in the sale
• Realistically assess • Management
process
synergies support to ensure • Buyer evaluation
Typically “financier” activity the to-do list gets • Vendor due
completed diligence
Typically “corporate” activity
Source: Frost & Sullivan

23
The Customer Research (CR) Team
We also support clients with hybrid projects combining industry and in-house consumer
research expertise delivering “voice of the customer” projects

All our customer research projects are conducted using a hybrid approach
combining our industry expertise with our in-house customer research expertise

Industry Experts Customer Research Experts

In-depth understanding of the Advanced quantitative

Customized Research
and / or qualitative
industry context Design
methodologies

Understanding of current and
future industry trends
Strong emphasis on
Right Questions to get
Questionnaire / Discussion
Right Answers
Guide

Knowledge of whom to target High Value Results Advanced Data Science

Interpretation from an Industry Value Added Results / Interpretation from a

Context Recommendations Data Analytical Context

Source: Frost & Sullivan

24
 Illustrative examples of our recent experience’s shows we have
supported clients with a wide range of challenges
Experience Company Type Results
Broad scope bio-based plastics technology Supported the client in its strategic
Top 10 Global
roadmapping and end market opportunity planning and identified partners to
Chemicals Company
evaluation, incorporating consumer research enable it to further develop its business
Comprehensive and consistent metrics
Comprehensive growth and key trends tracker for
provided to Corporate Strategy
all client’s end markets, over 70 different markets in Top 20 Global
department who then rolled it out to all
total, including live model enabling user to adjust Chemicals Company
business units and regions to facilitate
forecast based on macro economic indicators
business planning activities
Identification of top talent within the
company and development of them to
European Talent Development Programme for Top 50 Global
aid succession planning and ensure
Middle Managers Chemicals Company
successful transition to next generation
of Top Management
Along with several strategic
Ongoing strategic support including global recommendations, we gave the client a
strategic roadmap for one BU and review of Top 60 Global set of early warning indicators to track,
business operation and development of growth Chemicals Company which would allow them to understand as
strategy for three North America business units early as possible when key threats to the
market might emerge
Enabled company to focus on just two
Attractiveness ranking of five potential investment Top family-owned key areas and identified small pool of
areas related to Chemicals, Materials and Food and German Technology potential targets from a long list of over
identification of potential acquisition targets Company 100, 2 of which the company decided to
*non-exhaustive list, case studies and references available on request pursue Source: Frost & Sullivan

25
Illustrative list of our Clients – some examples

26
Your Contact For Additional Information

Leonidas Dokos
BU Leader Visionary Science

+44 (0)1865 398 685

leonidas.dokos@frost.com

Livio Vaninetti
Director of the Accelerator

+39 02 4851 6135

livio.vaninetti@frost.com