JEROEN JONKER

PLA

2

Sustainability is Key Driver for Bioplastics Growth

Retailers are implementing green programs

Industry Brand Owners

Media attention is increasing

Consumer awareness is rising

GO’s are incentifying sustainable

initiatives

Consumer attitude

“When considering green products, 50% of consumers surveyed stated that their purchase decisions were motivated by the sustainable attributes of the packaging”

“20-50% of consumers refuse to buy from a non-sustainable company”

“75% of consumers would pay more for environmentally friendly products”

Brandowner statements

Coca-Cola: “100% renewable material 2020-2030”

J&J: “All new products & packaging evaluated for sustainability improvements”

Wal-Mart: “Sell products that sustain people & environment”

3

Bioplastics in the market

Carbon Footprint (g CO2 per kg plastic)

0,0

0,5

1,7

1,7

2,0

2,2

PLA 2G…

PLA today

LDPE

PP

PET

PS

1,6

4,0

5,0

PLA

Bio PE

Bio PET

Carbo-Hydrate Usage (kg sugar per kg plastic)

Albert Heijn Flex Pack PLA/Starch Blend

Coca-Cola Drink Bottle 30% Bio-PET

Danone Yoghurt Cup 100% PLA

P&G Squeeze Bottle Bio-PE

• Prime focus on Lactic Acid & Lactide as Global Market Leader

• Scale & Capacity, Best-in-Class Processing Technology and Cost Leadership

• Development PLA Supply Chain through PLA Production Partners

• Development of Markets and Applications through Down Stream Partners

4

PLA Partnership Model

beet, cane, corn, wheat, tapioca,

biomass, etc

sugar extraction

lactic acid production

lactide production

PLA production

conversion to products

brand-owners / retailers

consumers

Core Focus Partnerships

Competitive with oil-based plastics:

• Standard Plastics (PS, PP, etc)

• Engineering Plastics (PA, PBT, etc)

New Production Technologies decrease

Production Cost significantly:

• Gypsum free process

• Biomass

5

Full Range Portfolio

The Plastics Pyramid: Performance vs Market Size

PS

PVC

ABS

PC PET

HDPE

LDPE

PP n-PLA

Th

erm

al

& M

ech

anic

al

Per

form

ance

Amorphous Crystalline

PA

PBT

sc-PLA

PLA

High

Low

Puralact L100/D100 (Stereo-Complex)

Puralact L100/D100 (Nucleated)

Puralact L95-100 (Standard)

6

Market Segment Focus

Pa

Packaging Fibers Consumer Electronics & Automotive

High Performance PLA

Standard PLA

Typical Applications

Thermoformed PS - PP

Injection Moulded

PS - PP

Thermoformed PS - PET - PP

Thin Film

BOPP - LLDPE

containers, cups, jars, hot fill packs, closures, FFS packs, flow wraps, shopping bags, clamshells, tableware, cutlery

Pa

Injection Moulded

PS – HIPS – PP ABS – PA – PBT

Woven &

Non-woven

PET

N.A.

Woven &

Non-woven

PET, PA, other

wipes, tissues, filters, diapers, apparel, clothing, staple fibers, carpets, geotextile

mobile phones, computers, tablets, domestic appliances, satnav systems, car interior, engine compartment

7

Typical Time-to-Market

Concept Stage

• Customer contact

• NDA, MTA, JDA

• Literature study

• Specify specs

• Conceptual material, product & tool design

• Prototype testing

Pilot Stage

• Material & samping

• Pilot tooling

• Trialing & Testing

• Initial Product Validation

• Draft User Specs

• Technical & Economical Feasibility

Industrial Stage

• Production Tooling

• Material Supply

• Availability/planning

• Process & material efficiency

• External validation (Norms & Regulations)

• Product release & Customer approval

Commercialization

• Contractual negotiations • Joint marketing

• Product Launch Plans

• Quality procedures

• Logistic procedures

• Ramp-up

0,5 – 1 yr 0,5 – 1 yr 0,5 - 1 yr 1 yr

8

PLA Applications Durables Disposables

Challenges:

• PS replacement

• High heat stability

• Acceptable economics

• High speed thermoforming

• Limited additional capex

Achievements:

• Puraclact L/D based n-PLA

• Can withstand 120 oC

• Economical through reduced wall thickness

• Meets same processing speed as PS

• Minor adoptions to existing production line

9

Application – Hot Beverage Cup

X

Challenges:

• ABS replacement

• Thermal and dimensional stability

• Good surface appearance and UV stability

• Impact & scratch resistance

Achievements:

• Puralact based PLA bio-compound

• Passed automotive OEM test program

• Good colourability

• Appealing eco-design through natural fibers

10

Application – Automotive Interior Panel

Challenges:

• PBT replacement

• Thermal and dimensional stability

• Fibration resistance

• Impact & chemical resistance

• High bio-content

Achievements:

• Puralact based PLA bio-compound

• Passed automotive OEM test program

• Temperature stability at +140 oC

• Shock resistant at -40 oC

• Bio-content up to 95%

• Highest property standard in bioplastics

11

Application – Automotive Filter Box

• Developing markets with new “non-drop-in” materials took more time than expected

• Opportunities however are as significant as communicated earlier

• Lower costs lactides allow us to enter ambient packaging markets competitively

• Contracts will be announced as soon as signed, expecting to make good progress in 2013

• Expected to require new capacity to be available in 2016/2017, need to invest from 2014 onwards

• Margin developments in line with company requirements for value creation

12

Key takeaways