Oxiteno is leader in the manufacture of surfactants and specialty chemicals in Latin America, developing innovative and sustainable solutions for the segments of Agro-chemicals; Personal Care and Domestic and Institutional Cleaning Products; Oil and Gas; and Paints and Coatings. The company offers 530 different products to the market and during 2017, registered 19 patents. Its business is focused on innovation for solutions to the needs of each client. Care with people and the environment are also among the company’s priorities.

Among others, the focus of research and development is on differentiation through products and services that prioritize the efficient and responsible use of natural resources. Through the Greenformance Platform, Oxiteno sets out a series of sustainability guidelines for the use of raw materials of vegetable origin in substitution for synthetic materials and petrochemical derivatives as well as the efficient use of energy, water and packaging, particularly the development of concentrated and biodegradable products.

Oxiteno is also pursuing an internationalization strategy and preparing to begin operations at its new ethoxylation plant in Pasadena (Texas/USA). The company has already successfully established a local market in the United States over the last few years by exporting products from its units in Mexico, Uruguay and Brazil. The new plant’s location is strategic since the North American market for surfactants is the largest in the world. The plant will supply all segments and will have an annual maximum installed capacity of 170 thousand tons.

1,901

employees

A presence in

9

countries

12

industrial units

4

R&D centers

9

commercial offices

Oxiteno’s strategy is based on the sale of products with the highest value added to meet the specific needs of each client. In 2017, the company launched 29 completely new products to satisfy client requirements.

New Structure

Preparatory to future growth, Oxiteno revamped its operational model and organizational structure in 2017. Its units are now to be divided as follows: Mercosur (including operations in Brazil and Uruguay to meet demand from Brazil, Chile and Argentina); MAC (made up of Mexico and Venezuela and covering the Mexican, Andean and Caribbean markets) and the United States (structured to meet demand from the North American market).

The organizational restructuring has re-dimensioned resources, redefined functions, responsibilities and key processes of the business with greater movement of people internally in the company and hiring of new professionals. These adjustments prepare the company for the future, especially with respect to innovation and client relationships. Among the objectives also are an increase in regional focus and an acceleration of growth in Mexico and the United States, albeit without losing the opportunities of global optimization, and leveraging strategic management in the regions and developing leadership at the various levels of the company.

The year 2017 was marked by the optimization of existing products for improving manufacturing performance and quality. The company launched 29 products in the market while investments amounted to R$ 53 million. Oxiteno has accumulated 219 patent deposits over its history, a number that has grown considerably in the past ten years. In 2017, 19 new patents were registered, increasing the protection of the company’s technological base and fostering the development of innovative solutions for the clients.

In September, the company announced a new Research and Development laboratory in the United States in partnership with the University of Southern Mississippi (USM). The laboratory has ethoxylation reactors used in the development of new ethoxylated and propoxylated surfactants for the US market, considerably improving response time to customer demand.

A Marketing and Innovation department was created in 2017 – part of the new business structure reorganization – to consolidate the strategy of innovation and to continue offering quality, high performance products and developing new products with innovative solutions.

The sale of new products – launches with up to a four-year sales horizon – corresponded to 10.5% of the company’s gross margin in 2017. There was a growth in the innovation rate, closing the year at 13%, the result of more effective choices and perception of value on the part of the company, with a focus business strategy.

In 2018, Oxiteno will be prioritizing the following projects: development of agro-chemical products for Asia, Europe and Argentina; oil and gas for Argentina with the development of a portfolio which meets the demands of the region; and agro-chemicals, hydroxpropyl cellulose - HPC and petroleum in the United States. These are long-term investments with a five-year horizon. The initiatives personalize product development to meet the needs of the clients, developing products with greater value added based on process of co-creation with the clients themselves.

29

new products in 2017

219

registered patents – 19 in 2017

R$ 53 million

invested in R&D

Oxiteno believes that social responsibility goes much further than the wellbeing of its employees alone. Consequently, the company practices its vision and values through socio-environmental actions focused on the entire value chain ranging from the selection and monitoring of suppliers and raw materials to the welfare of the communities surrounding the plants and the creation of products which contribute to the improved health and wellbeing of society.

The company prioritizes the engagement of local suppliers with the development of the supply chain in mind. During 2017, for example, 74.66% of all raw materials were acquired from Brazilian-based companies. Another key point is the policy for qualifying suppliers, monitoring and developing this segment using best sustainability practices.

With respect to those communities surrounding its manufacturing facilities, in 2017, Oxiteno sponsored and developed several educational, cultural and sporting initiatives. Among them, Art and Life – the aim of which is to complement the school day of about 300 children in the Mauá region with judo, ballet and five-a-side soccer lessons in addition to academic reinforcement classes; the Nau dos Mestres, which provides five schools in Mauá and Santo André with mobile laboratories for holding chemistry classes, the project’s expansion being planned for other cities over the next few years. Also worthy of mention is the Coral initiative which promotes culture and encourages collective responsibility in the communities of Tremembé, Mauá and Camaçari, integrating the company with society.

Oxiteno also fosters voluntary work, encouraging employees to take part in such initiatives as the Open Doors project that provides information to students and the community at large on the workings and dynamics of the chemical industry. The Formare Project of the chemical industry; and also the Formare Project managed by the Ultra Institute (read more under People).