Session III

The View From The Top

Supply Chain Challenges in Developing Markets

Agenda

Rohm and Haas Today – Markets and Technologies

Air Freight at Rohm and Haas Electronic Materials An Approach to shipment visibility

• Building and Construction

• Electronics and Electronic Devices

• Packaging

• Household and Personal Care

• Industrial

• Water

• Automotive

• Food and Retail

The markets we serve

Polyurethanes

Amines

Sodium Chloride

Borohydrides

SiC, ZnSe, ZnS Structures

MgO Acrylic, Styrenic & Vinyl Acetate Copolymers and Multipolymers

Biocides

Acrylic Monomers

Mercaptans & Sulfides

Polyesters

Photoactive Materials

Organometallics

Plating Systems

Water Soluble PolymersAbrasives

Pigment Dispersions

Photoactive Materials

Functionalized Polymers

Polybutadiene, PVDCOrganic Synthesis

InorganicsRadical

Polymerization

Condensation Polymerization

Technology

Organic Synthesis

Radical Polymerization

Process Chemicals

Automotive Coatings

Coatings

Consumer/ Industrial Specialties

Powder Coatings

Coatings

Microelectronics Technologies

Adhesives & Sealants

Plastics AdditivesProcess Chemicals

Microelectronics

Automotive Coatings

Monomers

Process Chemicals

Plastics Additives

Adhesives & Sealants

Functional Coatings

Plastics Additives

Morton Salt

Adv. Materials

CMP Technologies

Circuit Board Technologies

Circuit Board TechnologiesOrganic Synthesis

InorganicsRadical

Polymerization

Condensation Polymerization

Technology

Rohm and Haas Today

Rohm and Haas Today

• 2005 Sales – $ 7.9 B, 2006 P - $8.3 B• 2005 EPS - $2.85/share, 2006 P - $3.30-

$3.45/share• Investing in Electronic Materials,

Coatings and Performance Chemicals• Growth plans focused in Asia Pacific

and Central and Eastern Europe/Turkey

Agenda

Rohm and Haas Today – Markets and Technologies

Air Freight at Rohm and Haas Electronic Materials An Approach to shipment visibility

Logistics’ Priority:

Be a source of competitive advantage for our businesses by exceeding customer expectations in the execution of product delivery

Rohm and Haas Inter-Regional LogisticsAnnual Freight Spend:

$460MM

Maritime: Approximately 35,000 TEU and $55MM spend

Air: $10MM annually

Growth areasAsia – shift from net importer to

exporterNorth America – growing import

volumesIntra-Asia (maritime and air)

Air Freight Chemicals: Used sporadically

– generally emergency customer orders where marine has failed

SOP for Electronic Materials, where air comprises around 80% of freight spend

Agenda

Rohm and Haas Today – Markets and Technologies

Air Freight at Rohm and Haas Electronic Materials An Approach to shipment visibility

Electronic Materials

Markets• Printed Circuit Boards • Printed Wiring Boards • Embedded Passives

•Optoelectronics

Markets• Semiconductors • ICs • Microprocessors • Wafer Substrates • Disk Drives • Optics

Markets• Electronic Components • Electronic Packaging • High Performance Finishes • Optoelectronics • Tin Mill Products

Markets• ASICS • Logic • DRAM • Flash • Compound Semiconductors • Thin Film Head

Microelectronic Technologies Today -

ATC CleanroomThe ATC is currently outfitted with 1,500 ft² for cleanroom space, which is configured with one of the industry's most advanced 193 nm lithography cells. Another 3,500 ft² of cleanroom space is available for expansion and the ballroom-style cleanroom space enables easy access for demo and tool rotation.

Chemical Mechanical Polishing (CMP)

Hsinchu Plant

Market Priorities

• Exceeding the expectations of a demanding market

• Keeping the customer supplied

• High supplier qualification costs, but poor supplier reliability would open the door

Challenges

• Technology traditionally US-based• Market shifting from

Taiwan/Korea/Singapore to China• New CMP plant in Taiwan to supply

Singapore, China and Taiwan• Managing expectations in high

demand period – allocations and “rush” orders

Current Issues - China

Cold Chain Requirements 2 – 8 degrees C

Haz Mat restrictions on Class 3 and 8 (flammables and oxidizers)= Cargo aircraft only

Precise documentation/labeling No visible damages to cartons

Forwarder role Shipment Visibility – Forwarder

provided

Current Issues – Shipment Status

Shipment Visibility – In House or Out Source??

No 3PL-driven global platform today

In House solution complex and time consuming

Elemica as carrier communications hub

3PL/Forwarder as filler of information “data gaps”

Evolution of information tools

• Regional Freight Forwarder Alerts– Pilot In Use, by International

Trade Group NAR

• Global “one stop shopping” – Carriers integrated and

providing EDI messages– Alert Management

(Management By Exception)– Global (INTL) view

• Regional Freight Forwarder / Broker “Track and Trace” tools

• Calling the Export / Import group for Shipment Status info.

Thank You!