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June 10-11, 2009. Representing Rockwood. Seifi Ghasemi Chairman & Chief Executive Officer of Rockwood since November 2001. Director of the Main Board of GKN plc, a $6 billion global industrial company (1997-2001) Chairman and CEO of GKN Sinter Metals and Hoeganes Corporation

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Representing rockwood l.jpg
Representing Rockwood

Seifi Ghasemi

Chairman & Chief Executive Officer of Rockwood since November 2001

  • Director of the Main Board of GKN plc, a $6 billion global industrial company (1997-2001)

    • Chairman and CEO of GKN Sinter Metals and Hoeganes Corporation

  • Employed with the BOC Group plc (now part of The Linde Group) from 1979-1997, a $7 billion global industrial gas company

    • Director of the Main Board of The BOC Group, plc; President of BOC Americas and Chairman & CEO of BOC Process Plants and Cryostar

  • M.S. in Mechanical Engineering from Stanford University


Agenda l.jpg

Who is Rockwood Holdings

All-electric vehicles (EV) and plug-in hybrid vehicles (PHEV) are the best way forward to address energy independence

Key enabling technology: the further development of Li-ion batteries

Rockwood capabilities in lithium

The world has sufficient lithium resources

Agenda


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Rockwood at a Glance

  • Global specialty chemicals and advanced materials company

  • 2008 net sales of $3.4 billion

  • 2008 Adjusted EBITDA of $639 million (17.9% margin)

  • Free cash of $174 million in 2007 and $101 million in 2008

    • $18.9 million free cash in Q1 2009

  • Traded on the New York Stock Exchange (NYSE) - ROC


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Key Features of Rockwood

  • Outstanding portfolio of businesses

  • Excellent free cash generation

  • Established track record

  • Experienced and motivated management team

  • Excellent long term growth potential in lithium business


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Rockwood Business Sectors – LTM March 2009

($ millions)

Net Sales: $3,196

Adjusted EBITDA: 579

% Margin: 18.1%

Specialty Chemicals

(Chemetall)

Pigments & Additives

Advanced Materials

Net Sales: $1,146

Adj. EBITDA: 283

% Margin: 24.7%

Net Sales: $1,342

Adj. EBITDA: 176

% Margin: 13.1%

Net Sales: $704

Adj. EBITDA: 163

% Margin: 23.1%

12 months ended 03/31/09 – excluding Pool and Spa Chemicals


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46% (1)

Specialty Chemicals (Chemetall)

Brine Evaporating Ponds in Chile

Largest

Global Producer

of Lithium Products

Largest

Global Producer

of Lithium Products

Pharmaceutical

Batteries

(1) Represents percentage of total Adjusted EBITDA before corporate costs.


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Lithium Growth Potential

  • Lithium Ion batteries for:

    • Consumer electronics

    • Hand tools

    • Electric and hybrid cars of the future

  • Pharmaceutical applications:

    • Organo-metallic compounds


Specialty chemicals chemetall l.jpg

46% (1)

Specialty Chemicals (Chemetall)

Second Largest

Global Producer

of Lithium Products

Second Largest

Global Producer

of Products & Services for Metal Processing

(1) Represents percentage of total Adjusted EBITDA before corporate costs.



Pigments and additives l.jpg

28% (1)

Pigments and Additives

  • Global Ranking

    No2

    No1

    Anatase TiO2

    No2

    No2

Pigments

TiO2 Pigments

Timber Treatment

TiO2 Specialties/Nano Particles

Clay-Based Additives

  • Represents percentage of total Adjusted EBITDA before corporate costs.



Advanced materials l.jpg

27% (1)

Advanced Materials

Ceramics – Piezo Applications

Ceramics – Medical

Ceramics – Electronic Applications

Ceramics – Cutting Tools

(1) Represents percentage of total Adjusted EBITDA before corporate costs.



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Attractive Global Businesses in Diversified End-Markets

2008 Net Sales by End Market

Environmental

2%

Consumer

Paper

Products

Other

2%

2%

Specialty

8%

Life

Coatings

Sciences

9%

10%

Automotive

14%

Metal

Treatment &

General Industrial

17%

Electronics &

Telecommunications

10%

Construction

Chemicals &

14%

Plastics

12%

Total : $3.4 billion

Note: Continuing Operations Only.


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Attractive Global Businesses in Diversified End-Markets (update)

2008 Net Sales by Geography

Total : $3.4 billion

Note: Continuing Operations Only. Net Sales by geography based on Ship-to Locations.


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Inorganic Raw Material Base Limited Exposure to Energy Prices

  • Top 10 raw materials represent only 9.5% of 2008 net sales

Raw

Material

Position

RAW MATERIAL BUSINESS % OF 2008 NET SALES

Titanium-bearing Slag Titanium Dioxide Pigments 1.6%

Plasticizer Specialty Compounds 1.2%

Tin Specialty Chemicals 1.1%

Copper Timber Treatment Chemicals 1.0%

Quaternary Amines Clay-based Additives 1.0%

Phosphoric Acid Specialty Chemicals/Timber 0.9%

PVC Resin Specialty Compounds 0.8%

Iron Oxide Color Pigments 0.8%

Monoethanolamine Timber Treatment Chemicals 0.6%

Zinc/Zinc Oxide Specialty Chemicals, Titanium Dioxide 0.5%

Pigments, Color Pigments

Total 9.5%

Energy

Exposure

  • Energy purchases account for approximately 5% of 2008 net sales

  • Very limited exposure to oil price fluctuations due to inorganic focus


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$174 Prices

$147

$133

$123

$101

2005

2006

2007

2008

3/31/09 LTM

Key Features of Rockwood

  • Excellent Cash Generation

    • Free cash after capital expenditures (capital, interest expense, working capital changes and cash taxes)


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Key Features of Rockwood Prices

  • Established Track Record

  • ($ in millions)

Net Sales

Adjusted EBITDA

CAGR: 10.9%

CAGR: 11.5%

Margin: 19.7% 19.0% 18.6% 18.9% 18.6% 19.6% 18.9%

Note: Reflects the Groupe Novasep divestiture. 2002-2004 pro forma for the Dynamit Nobel acquisition. 2002 PF based on the combined Dynamit Nobel FYE 9/30 and Rockwood FYE 12/31 results. 2007 excludes electronics business. 2002-2006 includes electronics. 2008 excludes Pool & Spa Chemicals.



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Key Features of Rockwood Prices

  • Experienced and Motivated Management Team

    • Current team has been in place since 2001

    • Built Rockwood from $650 million/year in 2001 to $3.4 billion in 2008

    • Management owns 6% of the company


All electric ev and plug in hybrid electric vehicles l.jpg

Current installed electric generating capacity is sufficient to support conversion of all cars to EV or PHEV

The US could save almost 7.5 million barrels of oil a day with an EV/PHEV strategy

This shift would reduce US dependence on oil from the Middle East—eliminating a major security issue and providing economic and environmental benefits

All-electric (EV) and Plug-in Hybrid Electric Vehicles


Key enabling technology li ion batteries l.jpg

To convert on a large scale to practical EVs and PHEVs we need increased energy storage capability, i.e., much larger, more efficient Li-ion batteries

Li-ion batteries for mobile phones, laptops and other portable electronics are fully developed and commercialized

All major players are focused on this technology

Key Enabling Technology—Li-ion Batteries


Rockwood s strategic position l.jpg

Rockwood believes that EV and PHEV development is a very attractive alternative to address energy independence, environmental and national security issues facing the US

Rockwood has the resources and advanced technology to produce the advanced lithium products to achieve the auto industry’s goals

There are enough lithium molecules to support the conversion to EV and PHEVs

Rockwood’s Strategic Position


Lithium selected applications l.jpg
Lithium – Selected Applications attractive alternative to address energy independence, environmental and national security issues facing the US


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Lithium Carbonate Demand for Batteries—Historical and Forecast

Rockwood estimate of Li-Carbonate demand based on IIT data on KW-hour demand

Million lbs Li carbonate





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Lithium Value Chain Forecast

Comments

  • Providing lithium compounds throughout all stages of the value chain

  • Constant expansion due to new applications

  • Optimization according to customer needs

Li-tri

(t-butoxy)-

alanate

Li-Acetylide

Phenyl-

lithium

Li-

Chromate

Li-

Alanate

LHS

LDA

Methyl-

lithium

Li-Tetra-

borate

Li-

Hydride

LiBOB

Butyl-

lithium

Li-

Amide

Li-

Silicate

Li-

Perchlorate

Lithium

Metal

Li-

Nitride

Li-t-

Butoxide

Li-

Methoxide

Li-

Phosphate

Li-

Iodide

Foils

Li-

Nitrate

Sabalith

Lithium

Chloride

Li-

Fluoride

Li-

Salicylate

Anodes

Li-

Sulphate

Li-

Zeolite

Li-

Bromide

Li-

Citrate

Lithium

Carbonate

Li-

Peroxide

Li-

Benzoate

Life-Science Products

Li-

Acetate

Li-

Hydroxide

Potash

Metal and Battery Products

Brines

CO2-

Absorption

Products

Bischofite

Other Products





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# cars Forecast

(MT p.a.)

Estimation of Lithium Carbonate Demand 2020

@ 1.6% market penetration

Scenario A—many Teslas(EVs): 10,000 tons/22 million lbs/yr

Scenario B—many S400s (HEVs): 5,000 tons/11 million lbs/yr


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# million cars Forecast

(thousand MT p.a.)

Estimation of Lithium Carbonate Demand 2020

@ 10% market penetration

Scenario A—many Teslas(EVs): 60,000 tons/132 million lbs/yr

Scenario B—many S400s (HEVs): 30,000 tons/66 million lbs/yr





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Sustainability of Worldwide Resources Forecast

Salar de Atacama resources will completely satisfy global market needs for at least the coming hundred years

  • Salar de Atacama resources: 31,5 million MT LCE

  • For

    • Scenario A (10% penetration): reserves will last for 216 years

    • Scenario B (10% penetration): reserves will last for 271 years

  • Worldwide available resources: 150 million MT LCE

  • For

    • Scenario A (10% penetration): reserves will last for 1030 years

    • Scenario B (10% penetration): reserves will last for 1293 years


Rockwood s strategic position40 l.jpg

Rockwood believes that EV and PHEV development is a very attractive alternative to address energy independence, environmental and national security issues facing the US

Rockwood has the resources and advanced technology to produce the advanced lithium products to achieve the auto industry’s goals

There are enough lithium molecules to support the conversion to EV and PHEVs

Rockwood’s Strategic Position


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