Ian Davis Nuplex Industries Limited

Ian Davis Nuplex Industries Limited

Nuplex an industrial resins & specialties business ASX Small to Mid Caps Conference Hong Kong, 29 October 2009 John Hirst Managing Director 37

Who we are Nuplex is an industrial resins & specialties company 75% of sales from manufactured products 25% of sales from distribution of 3 rd party products Operates in two business groups, Resins and Specialties One of the world s top 10 Resin manufacturers One of Australasia s top 4 Specialties distributors Manufactures in 10 countries and sells to more than 80 countries 1,650 employees Sales of around A$1.3 billion US$1.1 billion NZ$1.5 billion Target EBITDA to Sales Ratio is 9% Range over the cycle of 7 10% Net debt to debt + equity is less than 20% 38

From the investor viewpoint Stock exchange listings ticker code: NPX Quoted on ASX since 1999 Quoted on NZX since 1956 Market capitalisation AUD $380 million NZ$460 million Performance development 1998 2009 Sales 53 years as a profitable listed company 190 million shares on issue Approaching 11,000 shareholders Dividend Share ownership Institutional 37% New Zealand total 87% 39

Nuplex resins and specialties essential ingredients for things we all use Resins What we do Coating Resins Inputs for production of industrial and decorative paints Composite Resins Inputs for manufacture of glass-reinforced composite products Paper Resins Functional resins and process control inputs for paper manufacture Specialties Agency & Distribution Specialty products for chemicals, plastics and life sciences industries Masterbatch Colour and process additives for plastic moulding and fabrication Construction Products Functional flooring, cladding and waterproofing for construction 40

Nuplex s global operations Operations Australasia Asia Europe Americas Resins Specialties Water based, solvent based and powder resins for the coating market; composite resins and paper resins Agency and distribution including specialty products for the chemicals, plastics and life sciences industries; Masterbatch; and construction products Water based, solvent based and powder resins for the coating market; composite resins Masterbatch Water based, solvent based and powder resins for the coating market Nuplex s manufacturing locations Water based, solvent based and powder resins for the coating market 41

Resins business Commonality between segments Raw materials Plant & equipment Process & technology Compliance Differences End markets Application technology 42

Resins for coatings A global business with varying regional characteristics Australasia Decorative 70% Specialty 30% Asia Decorative 50% Specialty 50% Europe & Americas Decorative 20% Specialty 80% Principal end markets Automotive Marine Furniture Electronics Protective coating Industrial Decorative Construction Principal products Water based, solvent based, powder resins Coating industry growth rate Global 4% 80% of Resins business Market dynamics Manufacturing is shifting to Asia Increasing demand for specialty coatings and high quality Market demanding low environmental impact products 43

Resins for composites A regional business with varying sophistication Australia Specialty 65% General 35% New Zealand Specialty 70% General 30% South East Asia Specialty 85% General 15% Principal end markets Marine & leisure Swimming pools Tanks Transportation Infrastructure Mining Principal products Polyester, epoxy & vinyl ester resins, gelcoats & flowcoats Reinforcements, catalysts, auxiliaries, engineering services Composites industry growth rate Global 5 6% The most volatile resin segment Highly reflective of economic conditions 15% of Resins business Market dynamics New applications continually being found for growth Asia moving towards higher quality requirements 44

Resins for paper 5% of Resins business A regional business Australia New Zealand Principal end markets Tissue Newsprint Principal products Functional resins for Process aids for paper making Fine paper Packaging board sizing coating wet strength Industry sector growth rate GDP Market dynamics Stable business sector Firm currency creates export difficulties 45

Specialties business Commonality with Resins business Markets with resins Vertical supply Available laboratories Industrial selling skills Compliance management Commonality within Specialties Differences Masterbatch & plastics sales Minimal manufacture Some unique markets 46

Specialty products A regional business Specialty Products are Nuplex s growth focus in Australasia Principal end markets Manufacturing industry Food & pharma processing Mining Principal products Chemicals Plastics Life Science products Growth rates Low in Chemicals & Plastics Moderate in Life Sciences Market dynamics Consolidation of global supply Creates risk & opportunity 75% of Specialties business 47

Masterbatch 15% of Specialties business A regional business New investment and growing in Asia Principal end markets Packaging plastics General plastic articles Textile fibres Principal products Colour concentrates in plastic Colour concentrates in aqueous media Additive packages in plastic Growth rates Low in mature markets 10+% in growing markets Market dynamics Smaller batch sizes Quicker service 48

Construction products The heritage Nuplex business NZ dominated Differentiated through relationship with linked Contractors Principal end markets Flooring systems industrial commercial Commercial waterproofing Industrial & commercial hygienic surface finishing Residential cladding Principal products Resin & resilient flooring, adhesives, tools Growth rates GDP Lightweight plasters & polystyrene cladding Sheet & liquid membranes Market dynamics Agriculture, horticulture & residential markets important 10% of Specialties business 49

Our markets Indicative 2010 v 2009 Australasia Soft in NZ with no signs yet of recovery down 15% over 2008 Australia has recovered from its low point Still down 15% but gaining real ground particularly in composites Americas No signs of recovery with continuing weakness Shifted emphasis to higher margin specialties Europe Uplift from late in May with good demand post summer holidays Still down 20% from 2008 but this is a good recovery Asia China showing continuing growth Moved market focus to high end products as capacity becoming constrained Vietnam returned to strong demand Good signs throughout rest of SE Asia that demand is returning High end, high margin market remains strong 50

Our margins and costs Raw material costs Costs have come off 4 year highs to provide margin uplift across all regions Upwards pressure now which will be largely recovered through pricing Raw material cost index US$ through Sept 09 Discretionary spending Complete ban has reduced operating costs significantly Restructuring All operations have matched production to market requirements Fixed cost reduced by $5 7 million annually Australasia USA Further $5 7 million annual reduction targeted for the current year 51

2009 highlights o Sales $1.5 billion with demand generally stabilised o Remained profitable while demand fell by 20 30% $16.7 million o Asian earnings up 120% o China and Vietnam especially strong o Operating cash flow up 61% to $123 million a record o Total dividends of 8.5 cents per share o 68% of net operating profit o Gearing 20% at 30 June 2009 o Headroom in borrowings around $200 million o New capacity for composite resins commissioned in Australia and Indonesia o Improved efficiency and ability to produce broader product range o Raw material costs eased on low demand o Generally beneficial to margins *All figures NZ$ (NZ$1 = US$0.75 at 22 October) 5 2

Strategy Seek preferred supplier position in key markets through Superior technical service Exceptional operational efficiency and service Sensitivity to customer profit and sustainability Resins Grow global coatings business o Greenfield investment in specialty segments and growth economies o Consolidation of mature markets in both specialty and general product segments Grow composites business by transitioning into adjoining markets o South east Asia is primary focus Invest in sustainable technologies o Environmentally friendly low and zero emission products and processes o Raw materials from renewable resources o Low cost options with near comparable performance Specialties Broaden product range one stop shop o Focus on higher growth and sustainable segments 53

Outlook o Trading conditions generally stable to improving o General optimism that there is no downside from here o Supply chain now in line with underlying demand o Recovery slow but will gain momentum in the mid term o Business will be right sized o Investment to continue o Innovative and sustainable technology o Capacity in high growth regions o Relatively low demand for capital o Approximately $70m million capex over 3 years o Major Items are Suzhou expansion New ERP system Vietnam expansion Wacol warehouse 54

Nuplex a growth company Regional Influence on EBITDA growth New Zealand Australia Global Asia Forecast

THANK YOU 56

Additional Material Regional EBITDA history 8 x half year periods Board of directors Executive managers 5 year history of key financials Analysts forecast and consensus 57

Regional EBITDA history EBITDA NZ$ EBITDA NZ$ 58

Directors Rob Aitken Independent chairman Location: Sydney, Australia Skills: Chemical engineering, International business David Jackson Independent director Location: Auckland, New Zealand Skills: Accounting, audit Bryan Kensington Independent director Location: Auckland, New Zealand Skills: Accounting, insolvency Michael Wynter Independent director Location: Sydney, Australia Skills: Legal, Asian business John Hirst Managing director Location: Sydney, Australia Skills: Chemist, Coatings and Resins broad experience Barbara Gibson Independent director Location: Melbourne, Australia Skills: Chemist, Chemical Industry General Management Peter Springford Independent director Location: Auckland, New Zealand Skills: Industrial company senior management, Asian business 59

Management structure John Hirst Group managing director Executive Management Group General Manager Nuplex Resins Rob Harmsen Group General Manager Functional Materials Sam Bastounas Group General Manager Specialty Products Charles Northcote Group General Manager Operations Tony Cooke Chief Financial Officer Ian Davis General counsel & company secretary James Williams General Management Group purchasing Manager Group general manager Technology General managers Americas Asia Australasia Europe Middle East & Africa General managers Composites Construction Masterbatch Paper General managers PML Group APS (Australia) APS NZ Regional operations managers Australasia Asia Americas Europe Group financial controller Group general manager Communications and Business Systems 60

Nuplex 5 year history 2009 2008 2007 2006 2005 Sales 1,494m 1,532m 1452m 1301m 929m EBITDA 92m 122m 104m 103m 82m Operating profit 24m 53m 38m 35m 32m Dividend per share $0.193* $0.43 $0.36 $0.335 $0.265 Net tangible assets 355m 205m 166m 195m 160m Debt % funds employed 17% 46% 50% 46% 50% All amounts are in NZ$ * Adjusted for share rights, placement and consolidation for guidance only 61

Analysts forecasts Broker Date Recommendation Forward share price ABN Amro Craigs 27/08/09 Buy NZ$2.76 First NZ Capital 28/08/09 Outperform NZ$3.09 Forsyth Barr 27/08/09 Hold NZ$2.54 GSJBW (NZ) 27/09/09 Buy NZ$2.95 Macquarie (NZ) 28/08/09 Outperform NZ$2.70 UBS 27/08/09 Neutral NZ$2.30 Actual FY09 FY10 FY11 FY12 Forecast: Revenue (NZ$) 1.49 billion 1.46-1.60 billion 1.53-1.67 billion 1.57-1.72 billion Forecast: EBITDA (NZ$) 92 million 95-106 million 101-120 million 109 131 million Consensus EBITDA 91.5 million 100.4 million 110.3 million 119.3 million 62