Industrial Biotech Reshaping Chemicals and Materials through Biology Innovators Dilemma Industrial Biotech Reshaping Chemicals and Materials through Biology ABLC Washington, March 2018 Joel A. Stone ConVergInce Advisers We did not inherit the earth from our parents. We are borrowing it from our children.

Secretary Sonny Perdue Speech to the Delta Council, June 9, 2017 Bioeconomy: The Approach for the USA “USDA will focus, in particular, on job creation, economic vitality, and prosperity in rural America.” Secretary Sonny Perdue Speech to the Delta Council, June 9, 2017

Who we are BIOMATERIALS TECHNOLOGIES BIOFUELS FEEDSTOCKS ConVergInce Advisers is a member of Lee Enterprises Consulting. Together we provide solutions from a network of experts passionate about the impact of bio-based and renewable processes. By staying abreast of developments in our respective fields and collaborating efficiently, we deliver the interdisciplinary advice, assessment, plans and solutions that best serve our clients. BIOMATERIALS TECHNOLOGIES BIOFUELS FEEDSTOCKS SPECIALTY SERVICES

Synthetic Biology is the future

Renewable Chemicals: $450 Billion Specialties Cosmetics 2% Specialty Polymers 8% Global chemical market 2014: $5.4 Trillion Adhesives & Sealants 2% Other 13% Printing Inks 3% Construction Chemicals 8% Feed Additives 3% I&I Cleaners 8% Plastic Additives 5% Electronic Chemicals 8% Food Additives 5% Oilfield 5% Surfactants 7% Source 2014: Catalysts 5% Specialty Coatings 6% Flavors / Fragrances 6% Water Soluble Polymers 6%

Biomaterials is approaching step changes Animal Health Aquaculture Health Biochemicals Bio-fertilizers Bio-fibers Biomass to Sugars Bioplastics/Polymers Enzymes Biopesticides Food Ingredients Industrial chemicals Lubricants Nanocarbon/cellulose Nutraceuticals Organometallics Renewable Chemicals Solvents Microbiome

Increasing investments & disruptive innovation

Lessons learned for challenges ahead Flexibility of feedstocks and products – biofuels, biochemical, and bioproducts. Low oil prices created a condition where process efficiency and low cost feedstocks can be combined to create long-term, financially sustainable projects attractive to investors. There is a growing demand domestically and globally for renewable products. State and International LCFS mandates are seen as long-term and stable policies and driving development for transportation fuels. Consumer demand and sustainability initiatives for corporations are driving development for biobased products and chemicals. Raising equity for a commercial facility is challenging. Having an integrated demonstration unit tested and completed is a must. Established market for products, and prospects for offtake agreements. The Management Team is critical for success, must have a strong team with commercial experience.

Collaboration: Winning Equation Working with ConVergInce Advisers and Lee Enterprises Consulting Experience value creation Accelerate the rate of execution from bench, to pilot, to demo, then commercial. Increase value with a joint effort that offers cost reduction. Calculate approaches to stay on plan making use of our subject matter experts. Gain from our experience in specialty and performance chemicals. Get closer to the customer and ultimately the consumer. Value of a product is in the performance and application that meets a customers need. How does synthetic biology or catalysis fit. Fairness There is one winner and that is the collaboration.

Coupling business and technical competencies Our thought processes are differentiated to offer clients a balanced perspective: Influential guidance Strategic direction Innovative ideas Knowledgeable Action oriented Tactical Insightful leadership Visionary thinking Planning

Thank you Collaborative Expert Advice Outcome: Success Stories www.convergince.com www.lee-enterprises.com joel.stone@convergince.com