1. Purpose

The purpose of this document is to establish a common, consistent, and governed definition of Market Hierarchies across Syensqo, covering both:

The objective is to enable:

2. Scope

3. Business Context & Need

Today, market definitions exist across GBUs and Corporate functions with varying interpretations, granularity, and usage. This results in:

A unified Market Hierarchy approach is required to:

4. Market Hierarchy Overview

The Syensqo Market Hierarchy is composed of two complementary but distinct hierarchies:

4.1 Corporate Market Hierarchy

4.2 GBU Market Hierarchy

These hierarchies operate in parallel, with defined linkage rules, and are jointly consumed across SyWay applications.

5. Corporate Market Hierarchy – Definition & Role

5.1 Corporate Market

Definition
Corporate Market groups customers based on their industry sector to define enterprise-level end-markets.

Key Characteristics

5.2 Corporate Segment

Definition
A Corporate Segment is a sub-category within a Corporate Market, typically reflecting:

Key Characteristics

6. GBU Market Hierarchy – Definition & Role

The GBU Market Hierarchy provides the commercial and operational view of markets, tailored to how products are sold and used by customers.

6.1 GBU Market

Definition
Categorizes customers based on the sector where products are consumed and the way the GBU organizes and manages its sales.

Key Characteristics

6.2 GBU Segment

Definition
A sub-category within a GBU Market that focuses on:

Key Characteristics

6.3 GBU Application

Definition
Describes the specific function or action performed by the product.

Key Characteristics

6.4 End Use / Program

Definition
Specifies the technical or final use of the product as manufactured by the customer.

Key Characteristics

7. Hierarchical Principles & Design Considerations

7.1 Hierarchical Dependency

7.2 Customer vs Customer-Product Assignment

7.3 End-Use-Based Derivation

End Use serves as a key derivation anchor, enabling:

8. System Usage & Integration

Market dimensions are consumed across SyWay systems, including:

All systems consume centrally governed global hierarchies, ensuring alignment across transactional and analytical use cases.

9. Market Hierarchy Determination Principles

End Use will be the only market dimension explicitly determined at the transaction line-item level. All other Corporate and GBU market hierarchy attributes (Corporate Market, Corporate Segment, GBU Market, GBU Segment, GBU Application) will be system-derived from the End Use for reporting and analytics purposes.

10. Governance Model

10.1 During SyWay

Focus

10.2 BAU (Post-SyWay)

10.3 Ongoing Maintenance & Change Management

11. Key Assumptions

12. Conclusion

This approach defines a single, enterprise-wide Market Hierarchy framework for Syensqo, ensuring consistent market representation across SyWay systems through End-Use-based determination and centrally governed derivation, while allowing GBUs to contribute within a controlled and scalable governance model.

The Market Segments.xlsx contains the market hierarchy values and mappings that are planned to be configured, having been aligned with Corporate and GBU stakeholders. These values represent the agreed baseline for implementing the End-Use-based market determination approach, subject to formal governance and change control.

Aligned Corporate & GBU Market Hierarchy reference document (stakeholder-validated baseline for configuration).