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

Innovation Food Packaging Collation Shrink Heavy Duty Sacks Stand Up Pouch Lamination Films © Copyright 2012 Muehlstein

The road to more sustainable packaging solutions Novel Metallocene Resins Film Formulations Advances in Processing Equipment Source: ExxonMobil Chemical © Copyright 2012 Muehlstein

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

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 © Copyright 2012 Muehlstein

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 © Copyright 2012 Muehlstein

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

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 20-05 (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 20-05 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

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

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

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

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 © Copyright 2012 Muehlstein

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

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

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

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

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 27-03 (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

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, 0.918 density) 20% LDPE (2.0MI, 0.9225 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

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; 0.920 g/cm3 Enable™ mPE 27-05CH resin: 0.5 MI; 0.927 g/cm3 LDPE: 0.75 MI; 0.923 g/cm3 C4-LLDPE: 1.0 MI; 0.918 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

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

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

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