I’M GREENTM PE Growing a sustainable

supply chain

11th of June 2015

INNOV’DAYS L’INNOVATION IN PLASTURGIE

- Braskem introduction - Green PE project - Land use - LCA/Carbon footprint - Branding - Value Proposition - Applications - Success cases

Topics;

EXTRACTION Feedstocks

1ST GENERATION Basic Petrochemicals

2ND GENERATION Thermoplastic Resins

3RD GENERATION Plastics Manufacturers

PE GREEN PE

PP EVA

PVC

COMPETITIVE INTEGRATION

Petrochemical industry

ETHYLENE

PROPYLENE

CHLORINE

SODA ALKALI

NAPHTHA AROMATICS

NATURAL GAS ETHANOL FUELS SOLVENTS

SALT

Braskem: largest thermoplastic resins producer in Americas and

Global leader in biopolymers

Industrial Presence Projects

Bahia - Brazil 1 cracker l 4 PE l 1 PP

1 PVC l 1 Chlorine Soda

Alagoas - Brazil 2 PVC l 1 Chlorine Soda

São Paulo - Brazil 2 cracker l 2 PE l 2 PP

Rio de Janeiro - Brazil 1 cracker l 1 PE l 1 PP

Rio Grande do Sul - Brazil 1 cracker l 5 PE l 2 PP

1 Green Ethylene

United States 5 PP Neal | La Porte |

Marcus Hook | Freeport |

Seadrift

Germany 2 PP Wesseling | Schkopau

PE 3 MM mt; PP 4 MM mt; PVC 0,7 MM mt Production Capacity - 36 industrial units

Mexico Start up 2015

1 cracker (1 Mt/y ethylene)

3 PE (1 Mt/y PE)

36 INDUSTRIAL

UNITS

TEAM MEMBERS 8000

INVESTED IN

INNOVATION

200 R$

MM

Braskem in numbers

*February 2014

48 GROSS REVENUE OF

R$ BI

CLIENTS IN OVER

70 COUNTRIES

EXPORT REVENUE OF

8,1

NET REVENUE OF

R$ 41 BI

EBITDA OF

R$ 4,8 BI

(US$ 92 MI)

(US$ 2,2 BI)

(US$ 22 BI) (US$ 19 BI) BI US$

Green Polyethylene x Fossil Polyethylene

Ethanol

Dehidration

Purification

Green ethylene

Nafta

Cracking

Purification

Fossil Ethylene Polimerization

Sugarcane Oil

Polyethylene

Technology: The production route for green polyethylene and the fossil polyethylene are exactly the same, therefore the green polymer has got the same characteristics, quality and properties than the fossil equivalent.

Green PE cycle

Sugarcane captures CO2

Production of ethanol and renewable energy

Production of Green Ethylene And Green Polyethylene

Packaging made from Green Polyethylene

Green Polyethylene helps reduce greenhouse gases

and is 100% recyclable

LAND USE

BRAZILIAN SCENARIO Favorable aspects for the development of biopolymers

The largest watershed in the world

BRAZILIAN SCENARIO Favorable aspects for the development of biopolymers

Intense solar radiation and climate diversification

Pioneer in research and development of biofuels

Total Area

851.48 Millions of hectares

Braskem’s capacity of I’m green™ polyethylene production: 200 kton/year 460 millions liters of Ethanol = approx. 68 thousand hectares

Protected/ Native 554(58%)

Available

111.34 (33%)

Pasture

158.75 (48%)

Agriculture

51.7 (16%)

Sugar Cane

8.14 (2.4%)

Arable Land 329.94 (39%)

Other 25.92 (3%)

LAND USAGE Significant potential for sustainable growth

0,02% 50%

50%

Sugar

Ethanol

BRAZILIAN AGROECOLOGICAL ZONING PROGRAMME

87%

national production

Amazon Forest

2.000 km

2.500 km

Soil and weather condition = productivity (no expansion to Amazon and Pantanal)

Areas for sugarcane expansion: Areas with proper conditions for mechanical harvesting Degraded pasture land Regions with lower need for water usage in production Respect for food security

LCA / CARBON FOOTPRINT

Fase 0

Fase 1

Fase 2

Fase 3

Fase 2

July 2007 Preliminary investigation

environmental assessment based on secondary data

September 2010

Plant start up

99% biobased content verified by ASTM D6866

April 2011

Product certified by Vinçotte

October 2013

LCA, WFT, LUC Primary data

Key suppliers

Critically reviewed

Code of conduct established

Biobased carbon verification

Product validation

Environmental Assessment

The product sustainability journey

BRASKEM’S SUPPLIERS AND THE CODE OF CONDUCT

1. Reduction of cane burning - Reduction of GHG emissions and soil preservation.

2. Conserving biodiversity – Protection of the Amazon rain forest, Pantanal and upper Paraguay river basin biomes,

3. Good Environmental Practices – Reduce air pollution, preservation of soil, protection of water resources, less use of agrochemicals, improvement of SHE practices.

4. Human & Labour Rights – Prohibition of forced and/or child labor, respect internationally recognized human rights.

5. Life Cycle Analysis (LCA) – provide the necessary information to conduct a LCA . It has been developed in partnership with UK based company called Proforest, an internationally recognized company specialized in sustainable natural resource management systems. This makes the Code a very robust and credible document, to which 100% of our suppliers have committed. A third party audit program is in place to guarantee compliance

Carbon footprint comparison

Carbon footprint (t CO ²q./ t polymer)

1 - Plastics Europe

2 – LCA Study conducted by E4tech & LCA works (from cradle to Braskem factory gate)

-2,15 Green PE²

+1,83 Fossil PE(Braskem)²

+1,93 Fossil PE Europe¹

-2,15kg** ~ 2,0kg*

CO2 emission per person 7,5t CO2 eq / year

200kt green PE > 100,000

Each 100t green PE = 50 people’s emission

> 4kg

* Plastics Europe ** LCA Study conducted by E4tech & LCA Works

CO2 FOOTPRINT REDUCTION

BRANDING

Examples of brands using the I’m green™ seal to identify green polyethylene in the product

USA USA BRAZIL EUROPE

Other examples of brands and seals used to identify the I’m green™ polyethylene in the product

VALUE PROPOSITION

Versatility/diverse applications

Innovation

Doesn’t contaminate existing streams

Sugarcane

Identical to Regular polyethylene

Value Proposition

Global Warming (LCA)

SUCCESS CASES

Motivations

Ecover, who pioneered the production of

phosphate free detergents in the 80’s,

produces plant based cleaning products

and therefore the fit with a plant based

plastic simply makes sense.

Ecover has taken innumerous actions to

reduce their carbon footprint and this

would be one more.

Results Partnership

In 2010, Ecover has

teamed up with Braskem

to start implementing the

conversion of their entire

PE packaging portfolio to

I’m Green PETM.

Apart from the perfect fit between

packaging and product, the use of I’m

GreenTM by Ecover in its Plantplastic

bottles has helped Ecover to be awarded

the Les Oscars de l’emballage 2011/2012

I’M GREEN™

Ecover

I’M GREEN™

Pilecco Nobre

Motivations

Underground drip irrigation, S10 diesel trucks with controlled max. speed

and renewable energy from rice husk residue were just some of the

sustainability credentials of Pilecco Nobre when they decided to adopt I’m

Green PE to reassure their commitment to sustainability.

Results

Partnership

Together with other initiatives, remarkable CO2 reduction was achieved.

Recognized by Walmart’s end-to-end sustainability program.

By using the I’m GreenTM logo, millions of consumers will have the possibility to identify the use of biobased PE in the packaging.

The project was conducted by Pilecco Nobre, an important producer in

southern Brazil, in partnership with Braskem in 2013.

Motivations

“Not only are we able to serve wineries seeking a more reliable and

sustainable packaging solution, but we can reduce our overall corporate

carbon footprint while taking an important first step towards our goal of

minimizing the use of fossil-based energy and materials across our entire

range of products.”

Results

Partnership

- Nomacorc successfully launched the world’s first

zero carbon footprint closure by end of 2013.

- >300 press articles and 400% growth over last year

In 2011 Nomacorc started to develop Green PE based wine closures in

partnership with Braskem and in April of 2013 the product was first

announced at Intervitis Interfructa in Stuttgart.

I’M GREEN™

Nomacorc

2014, USA 2013, Italy 2014, Spain 2014, UK

APPLICATIONS

I’m Green™

Portfolio

Injection molding blow molding and tubing fiber extrusion blow and cast film extrusion

Applications

PEAD PEBDL PEBD

packing films

multi-layer packaging

film

shrink and

stretch films

cling films

pouches caps bottles rigid containers

bi-co nonwoven

fibers T-shirt bags

handle bags

can liner automatic packaging

(FFS)

technical films and

heavy duty bags

safety helmet

kitchen- Ware

appliance

coating

Manufacturing Technology

Rigid and flexible applications

GLOBAL FOOTPRINT

Europe Applications

McCain Film/Food Frozen Fresh Fries

Sphere Trash Bags Alfapac

L’Occitane Bottles/ Personal Care Bonne Mère

Papier Mettler Retailing Shopping Bags

Tetra Pak Caps / Beverages Valio and others

Plastic Omnium Container Waste Containers

Amcor Flexibles Flexible Packaging Film/Food Sliced bread

Trioplast Flexible Packaging Film/Peronal Care HP&C

South America applications

Kimberly Clark Multi Layer Packaging film/ Home Care Neve

MSA Safety Helmet V-Gard

Tigre Grid Eco Tigre

Natura Bottles/Personal Care Ekos /Tododia / Plant

Prysmian Wires and Cables Afumex Green

Faber Castell Case Case for pencils

North America applications

General Millls Barrier Film/ Food Cascadian Farm Cereal HDPE - SHE150 Process: Blown Film

Aveda Flexible Tubes/ Personal Care Dry Remedy HDPE – SGF4950 LLDPE – SLH118 Process: Extruded Multilayer Tube

Bimbo Film/Food Eureka LDPE – SEB853/72 Process – Blown Film

Greenology Bottle/Home Care Greenshield Organic HDPE – SGF4950HS Process: Blow Molding

MSA Safety Helmet V-Gard HDPE – SHA7260 Process – Injection Molding

Procter & Gamble Bottle/Personal Care Shampoo Pantene Nature Fusion HDPE - SGF4950 Process: Blow Molding

Asia and Oceania applications

Aeon Basket/Retailing Single use bags and baskets

Kia Sheet/Automotive Kia Soul EV

Kosé Cosmeport Multilayer Packaging Film/Personal Care Kosé Cosmeport

Takeda Bottle/Personal Care Takeda

Mitsubishi Fiber/ Automotive Carpets Mitsubishi

Kosé Cosmeport Multilayer Packaging Film/Personal Care Kosé Cosmeport

Closing remarks

What differentiates I’m GreenTM PE from regular plastic?

• Renewable (in one year)

• Recyclable (also as a fuel)

• Low carbon footprint (LCA)

• Sustainable sourcing (chain of custody certification is possible)

• Innovative

• Adds to the value proposition of sustainable products

Information available www.braskem.com/greenplastic

Website Green PE

Thank you

Martin Clemesha martin.clemesha@braskem.com