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June 4, 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
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
rockwood at a glance
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
slide4

Key Features of Rockwood

  • Outstanding portfolio of businesses
  • Excellent free cash generation
  • Established track record
  • Excellent long term growth potential in lithium business
  • Experienced and motivated management team
slide5

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

slide6

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.

slide7

Providing lithium

n

compounds throughout

Li

Li

Li

-

-

-

tri(t

tri(t

tri(t

-

-

-

all stages of the value

butoxy)

butoxy)

butoxy)

-

-

-

alanate

alanate

alanate

chain

Li

Li

Li

Li

-

-

-

-

Acetylide

Acetylide

Acetylide

Acetylide

LHS

LHS

LHS

Li

Li

Li

Li

Li

-

-

-

-

-

Chromate

Chromate

Chromate

Chromate

Chromate

Li

Li

Li

-

-

-

Alanate

Alanate

Alanate

Constantly searching for

Phenyl

Phenyl

Phenyl

Phenyl

-

-

-

-

n

lithiumd

lithiumd

lithiumd

lithiumd

expansion opportunities

LDA

LDA

LDA

Methyl

Methyl

Methyl

Methyl

-

-

-

-

Li

Li

Li

Li

Li

-

-

-

-

-

Tetra

Tetra

Tetra

Tetra

Tetra

-

-

-

-

-

and new applications for

lithium

lithium

lithium

lithium

Li

Li

Li

-

-

-

Hydride

Hydride

Hydride

borate

borate

borate

borate

borate

LiBOB

LiBOB

LiBOB

LiBOB

existing products

Li

Li

Li

-

-

-

Amide

Amide

Amide

Butyl

Butyl

Butyl

Butyl

-

-

-

-

lithium

lithium

lithium

lithium

Electrolytes

Electrolytes

Electrolytes

Electrolytes

Li

Li

Li

Li

Li

-

-

-

-

-

Silicate

Silicate

Silicate

Silicate

Silicate

Li

Li

Li

Li

-

-

-

-

Perchlorate

Perchlorate

Perchlorate

Perchlorate

Lithium

Lithium

Lithium

Li

Li

Li

Li

-

-

-

-

Butoxide

Butoxide

Butoxide

Butoxide

Li

Li

Li

Li

-

-

-

-

Methoxide

Methoxide

Methoxide

Methoxide

Li

Li

Li

Li

-

-

-

-

Nitride

Nitride

Nitride

Nitride

Metal

Metal

Metal

Li

Li

Li

Li

Li

-

-

-

-

-

Phosphate

Phosphate

Phosphate

Phosphate

Phosphate

Li

Li

Li

Li

-

-

-

-

Iodide

Iodide

Iodide

Iodide

Foils

Foils

Foils

Li

Li

Li

-

-

-

Boro

Boro

Boro

-

-

-

hydride

hydride

hydride

Li

Li

Li

Li

Li

Li

-

-

-

-

-

-

Nitrate

Nitrate

Nitrate

Nitrate

Nitrate

Nitrate

Sabalith

Sabalith

Sabalith

Sabalith

Sabalith

Sabalith

Li

Li

Li

Li

-

-

-

-

Flouride

Flouride

Flouride

Flouride

Li

Li

Li

Li

-

-

-

-

Salicylate

Salicylate

Salicylate

Salicylate

Lithium

Lithium

Lithium

Chloride

Chloride

Chloride

Anodes

Anodes

Anodes

Li

Li

Li

Li

-

-

-

-

Bromide

Bromide

Bromide

Bromide

Li

Li

Li

Li

Li

-

-

-

-

-

Sulphate

Sulphate

Sulphate

Sulphate

Sulphate

Li

Li

Li

-

-

-

Zeolite

Zeolite

Zeolite

Li

Li

Li

Li

-

-

-

-

Citrate

Citrate

Citrate

Citrate

Li

Li

Li

-

-

-

Peroxide

Peroxide

Peroxide

Lithium

Lithium

Lithium

Lithium

Li

Li

Li

Li

-

-

-

-

Benzoate

Benzoate

Benzoate

Benzoate

Carbonate

Carbonate

Carbonate

Carbonate

Other

Other

Other

Life

Life

-

-

science products

science products

Metal and battery products

Metal and battery products

Na and Mg

Na and Mg

Na and Mg

Li

Li

Li

-

-

-

Hydroxide

Hydroxide

Hydroxide

Li

Li

Li

Li

-

-

-

-

Acetate

Acetate

Acetate

Acetate

Compounds

Compounds

Compounds

Other products

Other products

Potash

Potash

Potash

Ores

Ores

Ores

Ores

Brines

Brines

Brines

Brines

CO

CO

CO

-

-

-

2

2

2

Abosorbtion

Abosorbtion

Abosorbtion

Recycling

Recycling

Recycling

Bischofite

Bischofite

Bischofite

Products

Products

Products

Lithium Value Chain

manufacturing sites overview

New Johnsonville, TN, USA

Langelsheim, Germany

Silver Peak, NV, USA

Taichung, Taiwan

Kings Mountain, NC, USA

Antofagasta, Chile

Manufacturing Sites - Overview
lithium growth potential
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

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

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

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.

slide17

Key Features of Rockwood

  • Outstanding portfolio of businesses
  • Excellent free cash generation
  • Established track record
  • Excellent long term growth potential in lithium business
  • Experienced and motivated management team
key features of rockwood
Key Features of Rockwood
  • Outstanding portfolio of businesses
    • Leading global market position (No. 1 or No. 2) in each one of the business units
    • Global technology leadership
    • Consistent high adjusted EBITDA margins
    • Diverse end market exposure
    • Inorganic raw material base
slide19

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.

attractive global businesses in diversified end markets update
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.

slide21

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
slide22

$174

$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)
slide23

Key Features of Rockwood

  • 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.

slide25

Key Features of Rockwood

  • Excellent Long Term Growth Potential in Lithium
    • Demand for lithium products in energy storage and pharmaceuticals has so far kept annual growth rates in high single digits
    • Potential for continued high demand growth as global auto industry turns to lithium-ion batteries to meet emission and fuel-efficiency standards
    • Rockwood is the largest global producer of lithium products with both market and technology leadership
slide29

Lithium Long-Term Growth

  • Lithium Ion batteries
  • in hybrid and electric cars
  • of the future.
slide32

Key Features of Rockwood

  • 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
slide34

Management Accomplishment - Transformation

  • 22 Acquisitions
  • 2 Joint Ventures
  • 3 Divestitures
  • Organic Growth
  • Focused Strategy
  • Consistent management philosophy
  • Cultural transformation
slide37

Management Philosophy

  • Small corporate center
  • Self-sufficient and accountable business units
  • Detailed operating metrics
  • Short term incentive plan based on cash generation
  • Long term equity plan for key executives
  • On-site communication and motivation of all employees
slide39

Moving Forward – Short Term

  • Generate and conserve cash
  • Significant focus on restructuring of production facilities and cost control
  • Deliver acceptable performance during the current global recession
slide40

Moving Forward – LongTerm

Focus

Portfolio

  • Focus on our core businesses, where we already have:
    • Global market position of #1 or #2
    • Global technology leadership
    • Adjusted EBITDA margin of +20%

Focus

Portfolio

Focus

On Growth &

Productivity

  • Organic growth: +5% per year (1.5x GDP)
  • Bolt-on acquisitions: +3% per year
  • Productivity improvement: +3% per year

Focus

On Growth &

Productivity

  • Debt to Adjusted EBITDA of 3.0x in two years
  • EPS growth of +15% per year

Improve

Financial Ratios

Improve

Financial Ratios

Invest in

The Business

  • Sustainable Maintenance CapEx 3% of sales
  • Total CapEx 6-7% of sales

Invest in

The Business