1. WPA June 2014 Newport Beach, CA
Doing More with Less
WPA
June 2014
Newport Beach, CA
© Copyright 2012 Muehlstein

2. Innovation Food Packaging Collation Shrink Heavy Duty Sacks
Stand Up Pouch
Lamination Films
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3. The road to more sustainable packaging solutions
Novel
Metallocene
Resins
Film
Formulations
Advances in
Processing
Equipment
Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein

4. Options provide value to film producers and converters
Development Opportunities with mPE
Gauge reduction
Performance Enhancement
Reformulation
Options provide value to film producers and converters
Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein

5. Defining the Development Options
Thinner gauge & equal performance as reference (GAUGE)
Lowers the cost of the film structure to the converter
Enables downstream players to do the same with less weight of film
Improved performance at equal gauge as reference (PERFORMANCE)
Delivers films with previously unattainable performance, resulting in more packs / minute, less failures, higher loads per pack, better display-ability,
Maintain performance & gauge at reduced formulation cost (REFORMULATE)
No direct technical benefit for the downstream players
Option selection dependent on application specifics, business chain structure, converter’s strategy ...
Quite often Reformulation happens together with gauge reduction or performance improvements – i.e. people try to use as least of the new product to attain their downgauging or performance improvement goals 5
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6. Technical Development Trends
Downgauging and/or performance improvements across the business chain have been driving increased use of LLDPE and mPE
Coextrusion capability becomes more critical
Coextrusion
Multilayer
4+ layers
Downgauging
Line speed
Package integrity
Display Ability
Lower Unit Cost
1 – 3 layers
LDPE/
LLDPE rich
Metallocene
Polyethylene
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7. mPE resins introduction
Exceed™ and Enable™ mPE resins form a unique portfolio that facilitates business opportunity expansion across the value chain.
Improved
toughness
Processing
credits
PROPERTIES
Exceed™
mPE resin
LDPE-r
Blends
LDPE
LDPE-r (75% LDPE + 25% LLDPE)
LLDPE-r (25% LDPE + 75% LLDPE)
LLDPE-r
LLDPE C8 C6 C4
PROCESSING
Enable™
Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation

8. Data from tests performed by or on behalf of ExxonMobil Chemical
Effect of blend component on Exceed™ mPE resin films
Exceed mPE / Enable™ mPE resin blends offer significant property improvement versus Exceed mPE / LDPE resin formulations:
1 mil (25 µ) monolayer blown film comparisons
Similar extrusion conditions
Exceed 1018 (1 MI, 0.918d) blends
0 - 20% LDPE (0.75 MI, 0.924d)
0 - 30% Enable (0.5 MI, 0.920d)
Dart drop impact
Significant improvement (up to 300%)
Significant drop-off in dart at > 5% LD addition
MD Elmendorf tear strength
5% LDPE addition drops MD tear by 50%
Little tear decrease with Enable addition
Exceed mPE Blend Films - Dart Drop Impact
200
400
600
800
1000 5 10 15 20 25 30
% Blend Component
Dart Drop Impact (g/mil)
LDPE Blends
Enable mPE Blends
Exceed mPE Blend Films - MD Elmendorf Tear 50
100
150
200
250 5 10 15 20 25 30
% Blend Component
Elmendorf Tear (g/mil)
LDPE Blends
Enable mPE Blends
Data from tests performed by or on behalf of ExxonMobil Chemical
© Copyright 2012 Muehlstein
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation

9. Gauge reduction in Heavy Duty Sacks
Year
1990
1995
MONO
Film
LDPE
2000
LLDPE
Exceed mPE
2005
2010
Enable mPE
MDPE
C4 LLDPE
HDPE
Thickness
200 µm
160 µm
140 µm
125 µm
100 µm
First 3-
Layer Co-
extrusion
Introduction
of Enable
mPE
of Exceed
Exceed/HDPE
High clarity
Technology
Trend line of -
3.5 %
/year
Hardware development
Product development
Application technology development
Exceed™ and Enable™ mPE resins extended capabilities of 3-layer technology
Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation

10. 5-layer technology will become the new industry standard
New film equipment evolution
W&H, EMCC estimates
Line Sales (%)
3-layer
monolayer
5-layer
100 80 60 40 20
1990
2000
2010
2020
2030
3-layer growth extended by advent of new mPE product introduction
3-layer approaching plateau growth during this decade
Interest in 5-layer technology increasing rapidly supported by new products
5-layer technology will become the new industry standard
Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein

11. 5-layer technology capabilities
The power of numbers : 5-layer technology greatly expands design options.
Thick core layer with thin skin- and sub-skin layers
Enhanced film performance or additional down gauging through :
Introduction of specific functionalities in discrete layers
Increased flexibility through additional layer thickness combinations
Exploration of synergistic material / layering effect
Higher output by using layers of high melt strength materials
© Copyright 2012 Muehlstein
Source: ExxonMobil Chemical

12. Coextrusion Advantages
Coextrusion trend leverages product performance for improved film performance and value
The advantages of moving from 1 to 3 layers also apply when changing from 3 to 5 layers:
Better film properties through:
Pure materials in discrete layers
Sandwich effect
Broader choice of grades for a specific function
Additional formulation flexibility through increased number of layer as well as layer distribution options
High (higher) output
Downgauging–light weighting-sustainability
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13. Blown film developments in heavy duty sacks film
5-layer polyolefin technology provides the next breakthrough.
Near Term
DATASOURCE : EMC estimates
Source: ExxonMobil Chemical
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein

14. Performance Boost in Coex Structure
Performance boost by increasing mPE dosage in coex structures.
Reference
mPE - lean Structure
mPE - rich Structure
Value-added Structure
Enable mPE - lean Structure
Enable mPE - rich Structure
* The index is calculated as the area in spider charts of previous two slides.
Diversified and tailored solutions offered by Exceed and Enable mPE resins
Enable: help processing combined with film performance
Exceed: complement to achieve highest performance in toughness and sealing
ExceedTM and EnableTM mPE resins offer complementary options to tailor performance improvement and to create down gauge potential.
Data in this slide comes from tests performed by or on behalf of ExxonMobil Chemical
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein

15. Pallet Unitization Pallet Unitization
Lighter materials are now used instead of heavy shrink/cardboard
Metallocene PE contribute to dramatic improvement in film toughness
More sustainability flexible film solutions
Energy consumption reduced
Shrink oven removed with stretch
Higher packaging line throughput
Reduced sealing time
Packaging weight reduction
30% from shrink to stretch hood
Equivalent to 4 trucks* (or 105 tons of film) removed for a 500kt/year plant
Further reduction with Stretch Wrap if outdoor storage not required
Machine stretch wrap
Shrink hood
Stretch hood
Source: Lachenmeier Denmark
ExxonMobil Chemical estimates
© Copyright 2012 Muehlstein

16. Food Packaging Stand-up Pouches Application
Laminated structures with PE
Metallocene PE provides:
Excellent seal (shelf life)
Excellent toughness (puncture, package integrity)
More sustainability flexible film solutions
Packaging weight reduction
Same quantity of product in one third of the material from blow molded liquid container to Stand-up Pouch (SUP)
Waste volume reduced accordingly
Source: WRAP UK
Stand-up pouches offer more sustainable packaging solutions for high quality food and drink products
Photos used are representative of potential product applications only
© Copyright 2012 Muehlstein

17. EnableTM mPE resin alternative
Clarity shrink film - Cardboard tray packages
Monolayer LD/LL blend reference
Enable™ mPE resin-based films offer
Unit cost and weight reduction
Lower logistics costs
More sustainable flexible film solutions
At a thinner gauge deliver
Equivalent toughness
Equivalent stiffness
Equivalent puncture
Improved clarity
Similar holding force
Reference
EnableTM mPE resin alternative
80-50 µm – Monolayer
25% Downgauging – Monolayer
75% LD (0.922 density)
25% C4LL (0.918 density)
60% Enable™ mPE (0.927 density)
15% LD (0.922 density)
25% HD (0.961 density)
Data from tests performed by or on behalf of ExxonMobil Chemical
Example shown is 50 µm reference, 37.5 µm Enable™ mPE resin-based solution
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein

18. EnableTM mPE solution (18μm)
Mulch film solution 16 13 85
500
300
Enable™ mPE resin based films offer:
Unit cost reduction (28% gauge reduction)
More sustainable film solutions
Significant improvement in tensile and dart
Similar tear
C4-LLDPE
Ref (25μm)
EnableTM mPE solution (18μm)
Mono-Layer
80% C4-LLDPE (2.0MI, density)
20% LDPE (2.0MI, density)
100% Enable 20-05CH
Data from tests performed by or on behalf of ExxonMobil Chemical
© Copyright 2012 Muehlstein
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation

19. Downgauging Opportunity
Enable™ mPE resin blends with C4-LLDPE offer downgauging potential (lower unit cost) with improved film performance
Enable™ lean blends at 10% down gauge have >100% higher MD Elmendorf Tear compared to LDPE blends
Enable™ rich blends at 20% down gauge still outperform the reference film at most mechanical properties
Enable™ mPE 20-05CH resin: 0.5 MI; g/cm3
Enable™ mPE 27-05CH resin: 0.5 MI; g/cm3
LDPE: 0.75 MI; g/cm3
C4-LLDPE: 1.0 MI; g/cm3
25% Enable™ mPE 20-05CH resin + 75% C4-LLDPE (45 µm)
25% LDPE + 75% C4-LLDPE (50 µm)
25% Enable™ mPE 27-05CH resin + 75% C4-LLDPE (45 µm)
75% Enable™ mPE 20-05CH resin + 25% C4-LLDPE (40 µm)
75% LDPE + 25% C4-LLDPE (50 µm)
75% Enable™ mPE 27-05CH resin + 25% C4-LLDPE (40 µm)
Data from tests performed by or on behalf of ExxonMobil Chemical
© Copyright 2012 Muehlstein
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation

20. Potential benefits for brand owner Potential benefits for converter
Downgauging Obstacles
Possible obstacles
Resolution
Potential benefits for brand owner
Potential benefits for converter
● Converter has perception that down gauging is less profitable, as films are sold in $/ton.
● Down gauged films have a higher yield, which in most cases results in lower unit costs ($/m2)
● Lower unit costs are what ultimately matters to the brand owner.
● Lower unit costs can also lead to higher profitability for the converter.
● Lower unit costs ($/m2) are achieved as more packs are produced per roll of film
● Lower inventory costs
● Improved profitability, as lower unit costs justifies a higher $/ton price
● Being able to demonstrate lower unit cost savings to customer increases converter’s competitiveness, which opens up more opportunities.
● Converter has perception that down gauging leads to less production, which erodes profitability.
● Down gauging is only viable to the converter if (i) the $/ton return can offset production debits vs NBA, AND (ii) if the revised unit cost provides enough incentive for the brand owner to want to change.
● Converters steward their production mainly on the number of completed jobs and the amount of scrap produced - using less resin to achieve this is desirable, so down gauging is a potentially attractive solution.
● Completing job orders in less time results in utility savings (although need to consider the impact on scrap levels). Higher output is potentially achieved with Enable rich structures.
● More available extrusion capacity (i) allows possibility of filling spare capacity with more profitable job orders (ii) may delay the next extruder order,
● Down gauged mPE solutions are better equipped to meet existing and future environmental legislation.
● Brand owner has perception that downgauging dilutes end use performance.
● Brand owners need to be made aware of “less gives more” advantages of mPE technology.
● If converter has difficulty selling the down gauging concept effectively to the brand owner, . EMC can help bridge the gaps through presentations, seminars, samples, brand owner meetings and sharing market trends.
● Lower unit costs with the same but often superior performance.
● Superior mPE sealing properties can achieve faster packing speeds in many cases. Investing in high line speed equipment is easier to justify with mPE solutions, which can further reduce unit costs.
© Copyright 2012 Muehlstein

21. Outstanding Customer Value
Integrated knowledge
Potential benefits
Novel Metallocene Resins
CONVERTER
Cost ↓
Productivity ↑
PACKER / BRAND OWNER
Source reduction
More productive operations
Film Formulations
Advances in Processing Equipment
RETAILER / CONSUMER
Sustainability opportunities
Improved consumer attention
Metallocene resins open new avenues in packaging film
Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein

22. Doug Laurent Phone: 920-214-3812 DLaurent@muehlstein.com
Contact Information
Doug Laurent Phone:
© Copyright 2012 Muehlstein