Navigating your investment strategy in North America to greater net profit value

1. www.advisian.com
Speed to market
Navigating your investment strategy in
North America to greater net profit value

2. The U.S. is in place to be the most
competitive global manufacturer
of chemicals as a result of hydraulic
fracturing and natural gas – the wave
of investments is far from over.
The American Chemistry Council (ACC), June 2017

3. Decoding the changing dynamics
Market
availability
Regulatory
relief
Access to
capital
Tax
reform
International markets
Domestic growth
160 changes enacted to date
Streamlining of processes
Appetite for spending
Options for deployment
Costs to business down
Incentives to construct up
The political climate has changed and new incentives are being put forth by
the current administration to attract more investment in the US

4. The window of opportunity is closing…

5. The typical development roadmap
Final Investment Decision
Identify Select OperateDeliver
Conceptualize/
Strategy
Prove Feasibility &
Concept
Procure/Definition
& Development
Construct OperatePublic
Sector
Private
Sector
Business Case, Feasibility Study, Project
Definition, Options Analysis
Project Design
Procurement Planning
Transaction
Management
Project
Oversight
Policy; Strategy; Business Planning; Site
Identification & Selection
Finance, Project Finance & PPP (Inception)
Finance &
Commercial
(Optimization)
Operational
Planning
Operation &
Maintenance
OwnerRequirements
6-12 months 12-18 months 18-36 months 20-40 years
Reducing
project schedule
by 6 to 12
materially
impacts NPV

6. Navigating to FID and NPV is complex
Strategy
Clarify strategic objectives to
make an informed decision;
Understand key issues and
vulnerabilities, technologies
employed, operating
efficiencies and reliabilities,
logistics and supply chain.
2
Siting
Find the best available site
to meet project objectives
and streamline permitting.
3
Financing
Get practical advice on
funding options and
opportunities, development
of partnering approach, also
business model
development.
4
Market access
Establish a differentiated
position, optimize product
slates, understand feedstock
supply and security, identify
and access target markets.
With multiple factors to consider, many of which are interrelated, navigating the right FID is complex.
To simplify these factors, they are roughly categorised into four main work streams below:
1

7. Speed to market – traditional approach
Differing company cultures, internal priorities, and project priorities, along with
inconsistent project delivery capabilities slow your speed to market.
RevenueGeneration
• Higher potential OPEX
• Potential poor siting
constraints
• Reduced NPV and ROI
Site ID Market
Access
Finance
Strategy
Consultants/Advisors
Traditional
Approach
FID
Months

8. Speed to market – roadmap to success
 Definition of strategic objectives
 Business case definition
 Financial model and sensitivity analysis
 Market definition
 Technology position
Strategy
Market
Access
 Value chain and product slate analysis
 Identification of target market and opportunity size
 Go to market strategy
 Completive strength and product differentiation
 Competitor analysis and market intel (local offices)

9. Speed to market – roadmap to success
 Develop decision criteria
 Comparative analysis of options
 Data collection and site visits
 Identification and execution of required studies (logistics, environmental)
 Master planning
 Stakeholder engagement
 Optimize permitting process and interface with regulatory bodies
 Leverage relationships with Economic Development Partners for access to
best sites
Site ID

10. Speed to market – roadmap to success
 Find and select the most appropriate financial vehicle
 Identify possible funding partners
 Options for alternative service delivery, ie. ownership of non-core assets
 Due diligence
Finance

11. Ultimately, speed to market relies on tight
integration of business strategy, the ability
to respond, and certainty in approach.

12. Increasing your speed to market
Traditional
approach
Advisian
approach
RevenueGeneration
• Consistent, efficient organization structure
• Reduced operating risk
• >NPV
Subject Matter Experts
• Project delivery
• Oriented org. structure
• Proven project execution
experience & platforms
Strategy
Site ID Market
Access
Finance
FinancialInvestmentDecision
Isn’t it time you took advantage
of this opportunity?
6-12
months

13. Advisian’s approach works each work
stream in parallel, seamlessly feeding the
results from one into the other.

14. This reduces the number of interfaces
and third parties involved, as well as the
time to FID to 6 to 12 months.

15. Because faster is better.
More bankable investments.
Cost and schedule predictability.
Projects that cost less.
Projects that take less time.
Assets that operate better.

16. DISCLAIMER
This presentation has been prepared by a representative of Advisian.
The presentation contains the professional and personal opinions of the presenter, which are given in good faith. As such, opinions presented herein may not always necessarily reflect the position of
Advisian as a whole, its officers or executive.
Any forward-looking statements included in this presentation will involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies—many of which are outside the
control of, and may be unknown to, Advisian.
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for updating any information or correcting any error or omission that may become apparent after this document has been issued.
To the extent permitted by law, Advisian and its officers, employees, related bodies and agents disclaim all liability—direct, indirect or consequential (and whether or not arising out of the negligence,
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information.
FOR MORE INFORMATION CONTACT:
Amrita Karunakaran
E amrita.karunakaran@advisian.com