Tall Oil Fatty Acid A Sustainable Solution for the industry Pine Chemicals Overview - Kraft Pulping Process Digester Crude Sulfate Turpentine (CST) Wood Chips Terpenes Pulp & Paper Black Liquor Soap (BLS) Sodium Carboxylate Acidulation Carboxylic Acid (with H2SO4) Crude Tall Oil (CTO) 2 Pine Chemical Bio-Refinery Overview Crude Tall Oil Fractions Palmitic Heads Tall Oil Fatty Acids (TOFA) Distilled Tall Oil (DTO) Crude Tall Oil Rosin Acids (CTO) (TOR) Tall Oil Pitch 3 CHEMICALS + WORLD CLASS LONG LASTING OR STRATEGIC PULP INDUSTRY BIO-REFINERIES SUPPLY AGREEMENTS BLS/CTO/CST . 3 America . 2 Europe Excellent Sustainable Supply Diversified Quality & Product . Biobased, Traceable Security Portfolio . Non Edible/Non-GMO Consistency . Low Carbon Footprint . No Land Usage Change Sustainability benefits of Tall Oil Fatty Acids PALM FREE! 5 100% biobased and certified 6 Responsibly managed forests Soybean, Palm Oil cultivation may lead to deforestation, land use change (LUC). Consequence Pine Trees SYLFAT™ TOFA would be a larger GWP (Global Warming Potential), since forests would no longer be available as CO2 storage facilities. Rainforest -> SBO – Palm oil 7 Non food Tall Oil Fatty Acid derivatives are not in competition with the food chain. CTO is generated as by product from the paper pulp industry. Upgraded to industrial value add products such as TOFA, Dimer, Polyamides … delivering superior properties such as fast drying time / hardness / durability. 8 Minimal land use change: CO2 impact Rainforest SYLFAT™2 TOFA CO2 eq / Kg is 0.691kg of which LUC contribution is negligible 9 Carbon footprint savings: practical SOFA from Brazil @11,17 Kg CO2 eq/Kg SYLFAT™ 2 TOFA @ 0.691 Kg CO2 eq/kg 1000T SOFA replaced by 1000T SYLFAT™ 2 TOFA delivers 10479 T CO2eq reduction Return Brussels – New York 1 seat is equivalent of 0.86 T CO2 12185 returns Route 66 Harley Davidson road trip 1 trip is 0.53 T CO2 19772 trips https://www.carbonfootprint.com/calculator.aspx 10 non GMO sourced raw material Chain of custody • FSC (Forest Stewardship Council): The organization shall not use genetically modified organisms. • PEFC (Program for the endorsement of Forest Certification): The organization shall not include any material from genetic modified origin • SFI labeling (Sustainable Forest Initiative): Use of fiber from genetically modified forestry is not allowed 11 Legal Disclaimer Kraton Corporation and all of its affiliates, including Arizona Chemical, believe the information set forth herein to be true and accurate, but any recommendations, presentations, statements or suggestions that may be made are without any warranty or guarantee whatsoever, and shall establish no legal duty on the part of any Kraton affiliated entity. The legal responsibilities of any Kraton affiliate with respect to the products described herein are limited to those set forth in Kraton’s Conditions of Sale or any effective sales contract. NOTE TO USER: by ordering/receiving Kraton product you accept the Kraton Conditions of Sale applicable in the region. All other terms are rejected. Kraton does not warrant that the products described herein are suitable for any particular uses, including, without limitation, cosmetics and/or medical uses. Persons using the products must rely on their own independent technical and legal judgment, and must conduct their own studies, registrations, and other related activities, to establish the safety and efficacy of their end products incorporating any Kraton products for any application. Nothing set forth herein shall be construed as a recommendation to use any Kraton product in any specific application or in conflict with any existing patent rights. Kraton reserves the right to withdraw any product from commercial availability and to make any changes to any existing commercial or developmental product. Kraton expressly disclaims, on behalf of all Kraton affiliates, any and all liability for any damages or injuries arising out of any activities relating to the use of any information set forth in this publication, or the use of any Kraton products. KRATON and the Kraton logo are either trademarks or registered trademarks of Kraton Corporation, or its subsidiaries or affiliates, in one or more, but not all countries. ©2018-2019 Kraton Corporation 12.