Opportunities and collaboration with SABIC in sustainable packaging

1. Opportunitiesandcollaborationwith SABIC in sustainablepackaging World Packaging Days , Split , Croatia June 2012 GertCoun SABIC , Manager Technical Marketing LD/LL

2. Contents • Introduction SABIC • Sustainability as Global responsibility • Saving energy by using plastics • Practical sustainability cases with SABIC products • Consumer protection • Conclusions and invitation for dialogue & partnership

3. SABIC IN NUMBERS • 1976, our beginning • 36 years of growth • 2nd largest global diversified chemical company* • 33,000 employees • 40 countries • 60 world-class plants worldwide • 1 Corporate Research & Innovation Center • 14 Technology Centers • 3 Application Centers & 8,000 global patents * Forbes 2011

4. PRODUCTION HAS MULTIPLIED BY 6 IN 20 YEARS A high rate of growth… …reaching 66M metric tons in 2010 Innovative Plastics 1.231 Performance Chemicals 0.458 Metals 5.191 Fertilizers 7.043 Production (million tons) Polymers 10.667 Chemicals 42.268

5. WE RANK AMONG THE TOP PRODUCERS WORLDWIDE #1 #2 #3 Mono-ethylene glycol MTBE Polycarbonate Polyphenylene Polyether imide Granular urea Methanol Polyethylene Polypropylene Polybutyleneterephtalate Engineering plastics and its compounding

6. We have A CLEAR AMBITION To be the preferred world leader in chemicals We will achieve this by partnering with our customers, helping them achieve their ambitions. When they grow, we grow. That’s why for us, OUR CUSTOMERS’ SUCCESS COMES FIRST

7. INGENUITY DRIVEN BY Technology & Innovation Practical innovation • Application development with key customers at the heart of our strategy • More than 150 new products created every year • Backed by more than 8,000 global patents World-class infrastructure and know-how • 14 Technology & Innovation Centers in Saudi Arabia, Netherlands, Spain, USA, South Korea and India, with one under construction in China • Three Application Centers in Saudi Arabia and Japan • One Corporate Research & Innovation Center in Saudi Arabia

8. Global warming Depletion of non-renewable resources Increasing energy demand Increasing food and water shortage Destruction of rainforests Toxicity and health risk ENSURING A SUSTAINABLE FUTURE IS A GLOBAL RESPONSABILITY

9. SABIC’s strategic options Synthetic and Compostable Bio-Based and Compostable Compostable Bio-Based and Bio-degradable Bio-Degradable Oxo-Degradable Through Additives Through Additives Through Additives Polymers Today Bio-Based Through Natural Content Non-Degradable, Recycling possible Synthetic Hybrid Bio-based Natural Content 0% 100%

10. Saving energy by using plastics Preserving Food Optimizing energy usage Light weight solutions

11. 146 mill t/a 6.690 mill GJ/a 328 mill t/a +57% +61% X 3,7 4.270 mill GJ/a 204 mill t/a 39 mill t/a Alternative materials Alternative materials Alternative materials Plastics plastics plastics total masses for same functionality energy consumption in total life-cycle GHG emisions in total life-cycle What is the impact if we were to replace plastics? 2,400 million GJ/yr equals : 50 million tonnes of crude oil

12. OUR COMMITMENT “The SABIC sustainability mission is embedded in the fabric of our business. Our mission includesimproving ourenvironmental footprint, innovating products, services andprocessesthatbring sustainabilitytoourcustomers andgrowingour business by deliveringbetter solutions for the planetandhumanity.” Mr. Al Mady, CEO SABIC - Chairman of the SABIC Sustainability Council

13. REDUCING THE FOOTPRINT OF OUR MANUFACTURING ASSETS Our operations are steered at continuousimprovementand reduction of ourenvironmental footprint, withregardsto: - Greenhousegases - Energy - Water - MaterialEffectiveness SABIC will invest more than 100 million EURO in the upgrade of its naphta cracker in Geleen, the Netherlands, in order to significantly improve the energy- consumption of the plant and to reduce CO2 emissions (to be realized before the end of 2013). World Business Council for Sustainable Development

14. SABIC LCA APPROACH • Dedicated team of LCA experts • ISO 14044 Method • Impact on “fossil depletion”, “climate change”, “acidification”, “eutrophication” etc…. • Analysis on “Cradle to Gate” and “Cradle to Grave” principle • End of Life Principles – Plastics Europe EU 2010 data for packaging • Landfill- 35% • Incineration- 33% • Recycling- 32% • Reproducibility: an independent practitioner should be able to follow the approach and arrive at the same results • Environmental burden associated with infrastructure requirements are excluded

15. 12.1% 100% disposal shipment 10.0% 28% total improvements 4.8% Polymer production 1.4% 0.5% molding Feedstock Base case C. footprint Adding 20% Recyclate 10% lighter Shorter Shipping distance 40C lower Processing T 17% cycle time reduction Total post improvements Case Study : Downgauging & Recycling are THE major contributors in LCA improvement Illustration: SABIC Innovative Plastics Product – PP Packaging Cup Analysis type – Internal screening LCA Functional unit – 1 PP packaging cup (220 grams) System boundary - Cradleto Gate

16. Practical cases : SABIC® LDPE Multi Layer FilmSABIC® HDPE MilkBottleSABIC® UMS Foam

17. SABIC®Multilayer SHRINK FILM : lessfor more Standard Solution (45µ) SABIC 5 Layer Film (35µ) Layer A : 85% C4 LLDPE + 15% LDPE 50% HDPE + 50% LDPE Layer B 70% LDPE + 30% HDPE 50% HDPE + 50% LDPE 85% C4 LLDPE + 15% LDPE Layer A :

18. SYSTEM Characterization System Boundary Converters (Europe) SABIC Plants Europe C6 LLDPE Film LDPE Multilayer Packaging Film Crude Oil Naphtha LLDPE Ethylene HDPE Use EOL Excluded Process 32% 33% Landfill 35% Incineration Avoided Electricity Cut-off Approach EU 2010 recycling rates for plastics packaging Source: PlasticsEurope Report “Plastics- the Facts 2011” Recycling Avoided Virgin Material

19. Examples OF TYPICAL LCA OUTCOME FOR SABIC®Multilayer Film Concept Similar reductions for “particulate matter” formation, “acidification”, “eutrophication”….

20. SABIC® LDPE UMS in PACKAGING SABIC® LDPE Ultra MeltStrengthgrades(UMS) cangive 10% densityreductionofferingdowngaugingpossibilitieswithimprovement of LCA.

21. SABIC® HDPE preserving fresh milk • SABIC® HDPE B6246LS potentiallyenables 20% higherloading of recycled content comparedtoconventional HDPE dueto : • improved thermo-oxidativestability • enhancedstable taste performance characteristics.

22. What about Bioplastics? Decisions in favor of anymaterial or product must bebased on sound scientific criteria and a life cycle approach “Bio-based solutions willbean important part of the chemicalindustry’s future” Onlythose bio-based solutions must be developedthat do notcompromise food productionor causemore problemsthanthey solve, such as habitat destruction or large indirect CO2emissions” Mr. Al Mady, CEO SABIC

23. Consumer Protection

24. Positive Contribution to Health & Environment Safe Products : SAFE PRODUCTS have recognized customer value SAFE PRODUCTS enable safe application (e.g. safe food) SAFE PRODUCTS meet all relevant internationaland customer compliance needs SUSTAINABILITY & CONSUMER PROTECTION

25. Enabling consumer protection • SABIC offers specialized support tocustomers in usingour products in a safe way in the value chain. • This support is based on: • Continuousdevelopment of polyolefin base resins withincreasedpurity • - Proactive service via internet todeliver safe, compliant andsustainable solutions for the value chain, supportedby tools toaddress customer queries

26. Summary • SABIC is committed to supplying Polyolefines in packaging industry . • Sustainability is a Global responsibility : • Using plastics can save energy • High positive contribution of downgauging & recycling in LCA analysis • Focus on Consumer Protection • LCA improvements guide SABIC product developments in Packaging • SABIC is ready for extra dialogue & partnership with customers around sustainability

27. Disclaimer • The products and services of SABIC are sold and rendered subject to SABIC’S standard terms & • conditions of sale (GTCS), which are available free of charge upon request, by post or digital. • Standard terms & conditions other than the GTCS are dismissed and do not apply. Although any • information or recommendation contained herein is given in good faith, SABIC makes no warranty • or guarantee, express or implied, (i) that the results or specifications described herein will be • obtained under end-use conditions, or (ii) as to the effectiveness or safety of any design • incorporating SABIC’s products, services or recommendations. • This presentation or document does not contain any calculation, estimate or other warranty or • representation that customers and third parties may rely on. Customers and third parties are • responsible for making their own determination as to the suitability of SABIC’s products, services • or recommendations for the customers’ particular intended use through appropriate end-use • testing and analysis, and compliance with applicable laws and regulations. • Except as provided in SABIC’S GTCS, SABIC shall not be responsible for any loss or damage • resulting from any use of its information, products or services described herein and SABIC • assumes no liability whatsoever in this respects. • Nothing in any document or oral statement shall be deemed to alter or waive any provision of • SABIC’s GTCS or this Disclaimer, unless it is specifically agreed to in a writing signed by SABIC. • No statement by SABIC concerning a possible use of any SABIC product, service or design is • intended, or should be construed, to grant any license under any patent or other intellectual • property right of SABIC or as a recommendation for the use of such product, service or design in • a manner that infringes any patent or other intellectual property right.