DEFENSE | Recent study of a global chemical player’s battle-tested approach to counter inflation Playbook from a global chemical player Faced with unprecedented inflation and product scarcity, leadership embarked on a Pricing Acceleration Program to capture immediate value and drive long-term change Hygiene “must-do” actions Significant impact Customer Predicted category demand via unified data sources to enable steering of pricing demand and promotions Impact delivered in less than •Built AI-enabled pricing engine to generate target price recommendations €100M & innovation •Improved data quality of yield, material costs, and demand sensitivity 12 months in a €2.5B BU +5-10% Margin uplift resulting from contract renegotiations Protected top line by focusing on customers with high churn risk Sales •Targeted pass-through of cost inflation based on price sensitivity, considering share of product in customer's product structure and ability to pass through Average price uplift via +5% AI-enabled pricing engine Selectively priced-up to improve margins and supported contract (re)negotiation Increase in contribution Pricing to protect against volatility +1% margin from yield •Introduced tactical surcharges for specialty products and revision clauses management •Built digital contracting foundations to identify (re)negotiation opportunities Source: BCG case example