Ahmed Basha

Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 1 Koch Companies Overview Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 2 Global Scale ~130,000 employees in 60 countries Headquartered in Wichita, Kansas Private Ownership One of the largest privately held companies in America with $110 billion in annual revenues* Consistently reinvest 90% of earnings Distinctive Corporate Culture Market-Based Management® *Our revenues fluctuate with the price of commodities. They have been estimated by Forbes most recently as high as $110 billion. Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 3 History Wood River Oil & Refining Co. founded, 1941 – Acquires first of several ranching properties 1925 1940 Texas native Fred C. Koch comes to Wichita, 1927 – Develops an innovative crude oil refining process Confidential Information First Market-Based Management® business philosophy employee handbook published Koch Chemical Technology Group is formed 1969 Begins international crude oil trading, Becomes majority owner of the Pine Bend Refinery 1980 Acquisition of INVISTA from DuPont, creating one of the world's largest integrated producers of polymers and fibers 1981 1993 Purchases Suntide Refining’s Corpus Christi, TX, refining assets 2003 Farmland fertilizer assets acquired, Flint Hills Resources enters lubricant base oil business 2004 $7.2 billion acquisition of Molex Inc., a global electronic components manufacturer Acquisition of two ethanol plants in Iowa 2005 Largest acquisition todate: $21 billion for Georgia-Pacific 2010 2012 Purchased 44.4 percent interest in Guardian Industries 2013 2017 Purchased remaining interest in Guardian Industries Corp., $2 billion investment in enterprise software provider Infor Unauthorized Reproduction/Distribution is Prohibited. 4 Role of Business in Society • Help people improve their lives by providing products and services they value more highly than their alternatives, and do so while consuming fewer resources. • To the extent a business does this responsibly, its profits are a measure of the value it creates in society. Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 5 • Flint Hills Resources produces and markets gasoline, diesel, jet fuel, asphalt, ethanol, biodiesel, olefins, polymers, intermediate chemicals, as well as base oils, inedible corn oil and distillers grains. • The company produces more than 1 million gallons of asphalt daily at the Pine Bend Refinery • It is the fifth-largest ethanol producer in the country, operating seven ethanol refineries and an innovative biodiesel plant Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 6 • Georgia-Pacific is a leading manufacturer of tissue, pulp, paper, building products and related chemicals • GP manufactures some of the most well-known brands of paper towels, bath tissue, napkins and disposable dinnerware • GP Pro offers solutions to reduce waste and increase efficiency for foodservice and restroom applications Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 7 • Koch Fertilizer is one of the worlds largest producers and marketers of nitrogen fertilizer products – nearly 13 million tons annually • Other KAES businesses are involved in energy production, methanol supply, enhanced efficiency fertilizers and agricultural biological products Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 8 • Matador Cattle Company operates three ranches consisting of more than 460,000 acres in the United States • It is one of the 10 largest cow-calf operations in the country • The Matador team is experimenting with new technologies in areas like genetic science, beef grading and certification, and even drones Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 9 • Koch purchased the fibers, intermediates and polymers business of DuPont in 2004 • INVISTA produces and markets several innovative brands including STAINMASTER® carpet and DACRON ® fiberfill • INVISTA is one of the leading suppliers of fiber used in air bags and is developing next-generation materials and manufacturing processes Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 10 • Companies within KES design, manufacture and install process and pollution-control equipment for industries and cities around the world • Koch-Glitsch and John Zink Hamworthy Combustion design and manufacture products that reduce emissions and increase efficiency in refineries and chemical plants worldwide Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 11 • Molex is a manufacturer of electronic components used in things like mobile phones, computers, automobiles and medical devices • Since being acquired by Koch, the company has focused on becoming a more strategic partner with customers, moving deeper into the value chain • It has also moved into new verticals like health care Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 12 • At one point, Koch was the largest crude oil gatherer in North America • Koch Supply & Trading has personnel in the United States, United Kingdom, Europe and Asia Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 13 • Koch Minerals is one of the world’s largest bulk-commodity handlers • The company also has strategic investments including the world’s first “Flex Mill” steel production facility in Arkansas Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 14 • Guardian Industries is leading manufacturer of highperformance float glass; coated and fabricated glass products for architectural, residential, interior, transportation and technical glass applications; and high-quality chrome-plated and painted plastic components for the automotive and commercial truck industries. • You can find Guardian products in homes, buildings and automobiles around the corner and around the world. • Guardian was fully acquired by Koch Industries in 2017 after an initial investment in 2012 Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 15 • Infor was recently acquired by Koch Industries in April 2020. • Infor is a global leader in business cloud software products for companies in industry specific markets. Infor builds complete industry suites in the cloud and efficiently deploys technology that puts the user experience first, leverages data science, and integrates easily into existing systems. • Over 68,000 organizations worldwide rely on Infor to help overcome market disruptions and achieve business-wide digital transformation. Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 16 • Invest in innovative companies that have a platform for growth. • KED typical makes non-majority owned investments in companies that are independent of Koch. • Koch Disruptive Technologies invests in highly transformative growth companies and makes available Koch’s global network of business knowledge, talent and market channels across multiple industries. Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 17 • Global shared services organization for Koch companies • Enterprise Technology Solutions • Human Resources Solutions • Financial Solutions • Facilities & Real Estate Solutions • Project Management & Operations Excellence Confidential Information Unauthorized Reproduction/Distribution is Prohibited. Challenges, Opportunities, and Priorities • Finding and capturing the opportunities for which our capabilities can create the greatest value • Overcoming success, driving disruption, creative destruction and transformation across all of our businesses • Talent. Finding the necessary talent to drive profitable growth and innovation. Equipping current and future employees to create even greater value and become more self-actualized • Initiative overload and prioritization • Building knowledge networks and being the preferred partner for all our constituents Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 19 Principles of a Free and Open Society We can transform society by breaking the internal and external barriers that prevent people from realizing their potential, enabling all people to improve their lives and find fulfillment by helping others do the same. This vision is guided by the following mutually reinforcing principles: • Equal Rights • Mutual Benefit • Openness • Self-Actualization Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 20 Culture of Koch Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 21 Confidential Information Unauthorized Reproduction/Distribution is Prohibited. Confidential Information Unauthorized Reproduction/Distribution is Prohibited. Confidential Information Unauthorized Reproduction/Distribution is Prohibited. KGS Vision Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 25 “In order to advance our vision and achieve our $1bn - $2bn value creation bet – we must be All In. All Together. “ Richard Swan, President KGS Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 26 Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 27 Confidential Information Unauthorized Reproduction/Distribution is Prohibited. Case for Change OUR VISION Lead transformative solutions that create mutual benefit for any customer. As a preferred partner we leverage expertise, analytics, technology and knowledge systems to provide a full global portfolio of real estate and workspace solutions that optimize the consumer experience and maximize value creation across the entire lifecycle of our enterprise portfolio. CURRENT STATE Strategy • Not fully engaging customers strategically • Limited foundational frameworks (technology & knowledge systems) Scalability • Unable to rapidly meet increasing customer needs • Sub-optimized sourcing due to lack of purchasing power Value Creation • Comparative advantage not being leveraged • Limited data based value creation for customers Confidential Information FUTURE STATE • • • • • Customer-focused organization with a strategic approach to optimize the enterprise real estate portfolio as a preferred partner Team members leveraging strengths and comparative advantage to create virtuous cycles of mutual benefit – as our customers focus on their respective comparative advantage in their core business operations Long-term value creation through a focus on technology, innovation, collaboration, foundational frameworks & knowledge processes Scalability and speed to market for evolving customer needs, deployment of capital, and mergers and acquisitions Controlled operating costs Unauthorized Reproduction/Distribution is Prohibited. 29 Transformation Guideposts Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 30 Virtuous Cycles of Mutual Benefit FRES’ Corporate Real Estate (CRE) capability strategy is encapsulated in the FRES/JLL Strategic Partnership. Leveraging JLL’s people, process and technology will improve our ability to capture and create value for the Koch Enterprise. Virtuous cycles of mutual benefit are created by leveraging JLL as an integrated CRE partner and evolving from a primarily insourced model to a co-sourced model. The FRES team will focus on strategy, optimization, and value creation while our customers are free to focus on their core capabilities, and JLL will focus on execution. Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 31 Value Drivers of the FRES/JLL Partnership Long Term Value for the Enterprise • Capture the greatest long-term value for the enterprise through an integrated portfolio Global Scalable Solutions • Provide value creating solutions globally Speed to Market • Advance as a flexible enterprise capability that can swiftly respond to changes to achieve speed-to-market Mutual Benefit for Any Customer • Provide a seamless experience throughout the lifecycle of plan, transact, maintain, and serve Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 32 Confidential Information Unauthorized Reproduction/Distribution is Prohibited. 33