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Diversity. Flexibility. Results.

Diversity. Flexibility. Results. LITHIUM:. The Driver of the Coming Transportation Revolution.

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Diversity. Flexibility. Results.

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  1. Diversity. Flexibility. Results. LITHIUM: The Driver of the Coming Transportation Revolution

  2. This presentation may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood Holdings, Inc. and its subsidiaries (“Rockwood”). Although Rockwood believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. "Forward-looking statements" consist of all non-historical information, including the statements referring to the prospects and future performance of Rockwood. Actual results could differ materially from those projected in Rockwood’s forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things, the "Risk Factors" described in Rockwood’s 2009 Form 10-K with the Securities and Exchange Commission. Rockwood does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events. Forward Looking Statements

  3. 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

  4. National security and economic stability concerns will force us to eliminate our dependence on imported oil.

  5. Freedom from imported oil can only be achieved if we start driving electric cars on a massive scale. • The source of power for electric cars will be lithium ion batteries.

  6. Lithium, the essential chemical element in lithium ion batteries, will experience substantial growth.

  7. Electric cars will revolutionize our transportation system. Lithium ion rechargeable batteries will be the power source to drive these cars. Lithium compounds will see substantial growth. Summary

  8. NYSE: ROC Rockwood Holdings, Inc. is a global specialty chemicals and advanced materials company. It is also the leading global producer of lithium compounds through its wholly owned subsidiary, Chemetall, GmbH.

  9. Rockwood Business Sectors – LTM June 2010 ($ millions) Net Sales: $3,281 Adjusted EBITDA: 643 % Margin: 19.6% Specialty Chemicals (Chemetall) Pigments & Additives Advanced Materials Net Sales: $1,112 Adj. EBITDA: 285 % Margin: 25.6% Net Sales: $1,447 Adj. EBITDA: 235 % Margin: 16.3% Net Sales: $715 Adj. EBITDA: 178 % Margin: 24.9% 12 months ended 06/30/10

  10. Specialty Chemicals (Chemetall) Brine Evaporating Ponds in Chile Largest Global Producer of Lithium Products Largest Global Producer of Lithium Products Pharmaceutical Batteries

  11. Specialty Chemicals (Chemetall) Second Largest Global Producer of Lithium Products Second Largest Global Producer of Products & Services for Metal Processing

  12. Pigments and Additives • Global Ranking No2 No1 Anatase TiO2 No2 Pigments TiO2 Pigments Clay-Based Additives TiO2 Specialties/Nano Particles

  13. Advanced Materials Ceramics – Piezo Applications Ceramics – Medical Ceramics – Electronic Applications Ceramics – Cutting Tools

  14. Key Features of Rockwood • Established Track Record • ($ in millions) Net Sales Adjusted EBITDA $3,380 $639 Margin: 19.7% 19.0% 18.6% 18.9% 18.6% 19.6% 18.3% 18.2% 19.6% 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 on a proforma basis including bolt-on acquisitions, excludes Pool & Spa Chemicals.

  15. Lithium

  16. Lithium – Selected Applications

  17. Lithium Growth + 10% CAGR in Last 10 Years • Significant growth of lithium ion batteries for cell phones, laptop computers and other mobile communication devices, • Penetration of lithium ion batteries for mobile power tools (drills, etc.), • Pharmaceutical applications, • and • Alloys in aerospace structures.

  18. Sources of Lithium • Minerals – spodumene • High cost, environmental issues • Salt form (brine pools) • Lowest cost, environmentally friendly • Embedded in hard clay • High cost, difficult to extract

  19. Lithium Value Chain 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

  20. Operations in Chile

  21. La Porte, TX, USA New Johnsonville, TN, USA Langelsheim, Germany Silver Peak, NV, USA Taichung, Taiwan Kings Mountain, NC, USA Antofagasta, Chile

  22. Expansion 2005 2002 2006 2008

  23. Lithium compounds will experience significant growth due to the introduction of all electric and plug-in hybrid electric vehicles. WHY?

  24. World Oil Consumption TOP WORLD OIL CONSUMERS, 2008 US Source: BP, plc

  25. The United States of America depends heavily on imported oil from hostile regions of the world. 50% of our oil use is imported.

  26. These hostile states, insurgents and terrorists will use oil as a strategic weapon against the United States.

  27. This dangerous dependence on imported oil has created significant issues of: • National Security • Economic Stability

  28. Issues of National Security • Dependence on imported oil, mostly from hostile regions, has constrained the totality of US foreign policy. • To ensure free flow of oil, the US military has to maintain a presence in these hostile regions, at a huge cost in treasure and blood. Total cost of US military presence in these regions is estimated to be $5.0 trillion since the 1970’s.

  29. Issue of Economic Security • The cost of imported oil is more than $400 billion a year which is enriching the sovereign funds of mostly hostile regimes. This is more than half of the total US trade deficit.

  30. US Oil Dependence: Economic Costs HOUSEHOLD GASOLINE EXPENDITURES (ANNUAL, NOMINAL)

  31. Oil Dependence • 70% of oil consumed in the US is to fuel our transportation system (the internal combustion engine). • Renewable sources of energy, such as solar, wind or nuclear will not free us from imported oil.

  32. The Problem: Oil Dependence • As long as our cars are powered by the internal combustion engine, we will be dependent on imported oil.

  33. The Solution: Electric Cars • The only practical and proven solution is to replace the internal combustion engine with an electric motor driven by a rechargeable battery.

  34. Electrification of Transportation ELECTRIFICATION ARCHITECTURE

  35. Benefits of Electric Cars • Electricity is diverse and domestic.

  36. Benefits of Electric Cars • Electric Power Sector: Generation The electric power sector has substantial spare capacity at night that could be used to fuel electric vehicles. LOAD SHAPE FOR ONE DAY DURING PEAK SEASON Source: Pacific Northwest National Laboratory

  37. Benefits of Electric Cars • The network of infrastructure already exists.

  38. Benefits of Electric Cars • Electric miles are cheaper than gasoline miles: • 2.5¢ vs 10¢ per mile.

  39. Benefits of Electric Cars • Electric miles are cleaner than gasoline.

  40. Key Enabling Technology – Li-ion Batteries:

  41. Lithium ion batteries for mobile phones, laptops, portable electronics and power tools are fully developed and commercialized. This is Proven Technology

  42. Lithium Ion Batteries

  43. What is the Potential for Growth?

  44. Lithium Carbonate Equivalent (LCE) Demand

  45. Lithium Carbonate Equivalent (LCE) Demand Total Global Auto Production 2008: 59 million vehicles

  46. Global HEV/PHEV/EV Market Projections Global xEV Volume by Type (Million Units), Percentage Global Vehicle Sales 19.6% 17.4% 15.0% 12.3% 9.5% 7.0% 5.9% 4.8% 3.6% 2.6% 2.1% 1.6% Source: Deutsche Bank, Electric Cars: Plugged In 2, November 3, 2009

  47. Global HEV/PHEV/EV Market Projections Global xEV Volume by Region Source: Deutsche Bank, Electric Cars: Plugged in 2, November 3, 2009

  48. Lithium Demand • Depending on your assumptions of the penetration of all electric and hybrid electric cars in the coming years, the growth in demand for lithium can be substantially higher than the historical growth rate of 10% per year.

  49. electrificationcoalition.org

  50. The Electrification Coalition is dedicated to eliminating America’s dependence on imported oil through the electrification of transportation. Our primary mission is to promote government action to facilitate deployment of electric vehicles on a massive scale.

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