Oxiteno’s approach to Renewable Chemistry

Guilherme Stroeh Agropolo Campinas – March 21st, 2017 OXITENO

Brazilian multinational part of the Ultra Group Leading producer of surfactants in Latin America Integration of the main raw materials (Ethylene Oxide and Natural Fatty Alcohols) Continuous Innovation (R&D Facilities in , , , USA and ) 10% of the total employees Global service out of: 4 12 9 R&D Industrial Commercial Facilities Units offices

2 THE ULTRA GROUP

➢ First distributor of bottled gas in Brazil ➢ Largest private distributor of fuel in Brazil ➢ Leader in LPG distribution in the domestic market ➢ More than 7.1 thousand service stations ➢ 5,000 exclusive distributors ➢ Approximately 3,000 employees ➢ Approximately four thousand employees

➢ Largest private storage company of ➢ Among the top 10 largest drugstore chemicals in Brazil chains in Brazil ➢ Assets located in Brazil´s main ports and ➢ One of the leaders in its geographic industrial hubs regions (North and Northeast) ➢ Approximately 500 employees ➢ Approximately four thousand employees

3 RENEWABLE CHEMISTRY AT OXITENO 25% 38% of raw materials of products derived from contain renewable renewable sources. ingredients.

Fatty Alcohols Oleochemicals Fatty Acids ALKONAT ® Glycerin

Green Sodium Lauryl Ether Surfactants Sulfate Fatty Esters

Isoamyl alcohol Solvents Isobutyl alcohol

4 GREENFORMANCE

SUSTAINABILITY in the product line Renewable sources Raw materials from plants, in place of synthetic derivatives.

Care for the Health and Environment well-being

5 RENEWABLE CHEMICALS AS PART OF THE ORGANIC STRATEGY

Our purpose: Become a global reference in surfactants and their New uses for applications assets

Supporting our strategic goal: To be a world Wider product reference in surfactants and their applications portfolio Organic Strategy: Revenue diversification & growth New Renewables Integrations technologies / product lines

New Markets

6 BUSINESS MODELS FOR RENEWABLES SHOULD BE CAPABLE OF RESTRUCTURING THE VALUE CHAIN TO SUPPORT INNOVATION

Necessary competencies for innovation on Renewable Chemistry ABDI/CGEE, 2013

Processing Assets capable of processing the raw materials, with the required technology

End users Raw Materials Ability to introduce and Assurance of availability and disseminate new access to raw materials considered Technology products with strategic Development of efficient sustainable appeal processing technologies, flexible in Most critical in Oxiteno’s the use of raw materials view

7 THE RENEWABLE CHEMISTRY BRINGS A NEW MINDSET TO BUSINESS...

For Renewable Chemistry to support Oxiteno at their specialties strategy, its particular logic should be taken into account for maximum effect:

Specialties Local Scale Flexibility Innovative or drop- Different products in products with Scale compatible with the same high margins with demand equipment (e.g.: different GMOs) Margin protection Logistics through compatible with Building blocks technology as an renewables with several entrance barrier applications

Fiscal Credit lines / Interest from Drivers Co-creation incentives subsidies B2C clients

8 HOW: OXITENO’S STRATEGY IN MOTION NOW

Raw Materials Oxiteno’s approach End Users

• Search of new technologies for: PERSONAL CARE o More competitive raw materials o New raw materials for specialties o Direct production of surfactants HOME CARE AND I&I Oleochemicals o Value added surfactants from current renewable raw materials AGROCHEMICALS • Monitor new building blocks for development of derivatives

PAINTS & COATINGS ➢ Opportunities exploration with Sugars 1G (2G if competitive) companies approaching commercial scale OIL & GAS ➢ Close contact with End Users

9 RENEWABLE MOLECULES THROUGH OXITENO’S LENSES

LATAM protection and Niches / specialties through opportunities biotechnology

Raw Materials • Glycerin Monitoring Innovation and competitiveness • Sugars Commodities Specialties • Ethanol

Development of cost- Projects that may interest competitive building block through a condominium derivatives

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