FIGURE 5. DISRUPTION TREND OVER TIME: CHEMICALS SECTOR 0.80 VIABILITY VOLATILITY (18% of companies) (33% of companies) N 0.70 O I T Chemicals spent 2017 and P U 0.60 2018 in Durability. The R S I D industry’s levels of F 2015 O susceptibility to future L 0.50 2012 E V disruption peaked in E L T 2014 2012, at which point the N 0.40 2011 E 2018 industry was in a period of R R U Volatility. In this year, C 0.30 incumbents experienced DURABILITY VULNERABILITY higher transaction costs, (11% of companies) (38% of companies) 0.20 and corresponding 0.20 0.30 0.40 0.50 0.60 0.70 0.80 margin compression. SUSCEPTIBILITY TO FUTURE DISRUPTION Nodes represent annual scores for industry sector Chemicals 0-1 scale (1= most susceptible/disrupted) Other industry scores 21 BREAKING THROUGH DISRUPTION