Corporate Reverse Showcase #2 Ashland Performance Materials Joe Fox - PowerPoint PPT Presentation

Corporate Reverse Showcase #2 Ashland Performance Materials Joe Fox Director of Emerging & External Technologies Ashland Performance Materials G1000 Startups Conference March 19, 2014 jfox@ashland.com 614-790-3686

2 An Overview of Ashland Inc. • A global, diversified specialty chemical company with $8B in sales - No longer Ashland Oil! • Strengthened by the acquisition of Hercules in 2008 and International Specialty Products (ISP) in 2011 I am here representing Performance Materials HQ = Dublin, OH Consumer Markets Water Technologies Specialty Ingredients Performance Materials Formulated Functional Adhesives & Water Treatment Motor Oils Resins for Composites Additives Chemicals

3 Ashland Performance Materials (APM) • Primary market focus Resins - Transportation for Composites - Building & Construction - Packaging & Converting • Business-to-Business focus • Major product lines High Performance - Resins for composites Adhesives - High performance adhesives - Structural adhesives - Pressure-sensitive adhesives - Flexible packaging adhesives • Products are based on thermoset resin chemistry - Unsaturated polyesters, vinyl esters - Urethanes - Acrylics - Hybrids

4 Ashland’s Place in the Composites Value Chain Our customers play here Fabricated Raw Resin Fully-Formulated Composite End User Material Intermediate Resin Product Examples: Ashland Automotive OEMs Building Contractors plays here Wind Turbine Manufacturers

5 Ashland’s Partnering Strategy • Performance Materials looks for both upstream and downstream partners in the value chain. Raw Intermediate Formulated Fabricated Consumer Material Materials Materials Product Ashland Ashland looks Ashland looks plays here for partners here for partners here • Upstream partners - Biorenewable raw materials • Downstream partners - Fabricators - Channel-to-market

6 Composites Adhesives Bio-Based Chemical Building Blocks for Thermoset Resins • Motivation: - Lower cost, greater price stability, greater accessibility relative to petroleum-based raw materials - Pull from our customers for green, sustainable products • Our Interests: - Cost-effective sources of sugar for chemical production from biomass - Highly selective organisms or catalysts for the production of chemical building blocks

7 Vision for Chemical Production at a Pulp and Paper Mill Woody Biomass “Hardware” Sugar solution Paper Production Organism 1 Catalyst A Organism 2 Catalyst B “Software” Glycol 1 Glycol 2 Acid 1 Acid 2 Ashland uses these monomeric Paper building blocks to make its Envirez resins • Ashland does not intend to build or operate a biorefinery, but we represent a strong downstream channel-to-market partner for bio-based chemicals. • We look for partners that have the necessary “hardware” and/or “software”.

8 Chemical Production from a Biorefinery • Specific chemicals Performance Materials is interested in: - Glycols: • Ethylene glycol (EG), Propylene glycol (PG) - Unsaturated di-acids • Fumaric acid, Itaconic acid - Acrylates • Butyl acrylate, 2-Ethylhexylacrylate - Aromatics • Isophthalic acid, Terephthalic acid • Replacements for Bis Phenol A - Solvents • Ethyl acetate • Economics: - Bio-based chemicals must be cost competitive with their petroleum-based equivalents • Technology gap: - Enzymes /organisms for selective conversion of biomass to these chemicals • Ashland does not have expertise in this area 8

9 Interactions with Upstream Partners • In-licensing of technology for producing bio-based reactive intermediates • Downstream, channel-to-market partner - Evaluation of drop-in and new bio-based raw materials • Resin synthesis and formulation • Feedback on reactivity, purity, color, odor, performance …..

10 Ashland’s Partnering Strategy • Performance Materials looks for both upstream and downstream partners in the value chain. Raw Intermediate Formulated Fabricated Consumer Material Materials Materials Product Ashland Ashland looks Ashland looks plays here for partners here for partners here • Upstream partners - Biorenewable raw materials • Downstream partners - Fabricators - Channel-to-market

11 Material Substitution & Material Enhancement • APM’s composites business looks for opportunities to substitute composites for more traditional materials of construction – - Metals • Steel • Aluminum - Wood - Concrete • We also look for opportunities to enhance the performance of traditional materials of construction - Concrete + composites

12 Composites Composite Materials for Green Buildings • Motivation: - Take advantage of the benefits of composites to increase their utilization in the building & construction industry, especially in green buildings • Energy-efficient / insulating • Durable • Easy to install • Light weight • Corrosion-resistant • Attractive aesthetics • Our Interest: - Prototypes for applications where composites can replace or enhance traditional materials of construction (concrete, steel, aluminum, wood….)

13 Composite Materials for Green Buildings • Types of Materials / Prototypes of Interest: - Hybrid materials • Wood + composites • Concrete + composites • Foam + composites - Composites with extremely high R values (low U values) - Low density composites - Composites with unique aesthetics • Joining technology for dissimilar materials

14 Interactions with Downstream Partners • Provider of resins and/or adhesives during development phase • Analytical support • Connections to our customers • Investment to accelerate commercialization

15 Other Needs 1. Thermoset Resins with Improved Fire Resistance Composites 2. Thermoset Resins with Improved Weatherability Composites 3. Recycling Technology for Thermoset Resins & Composites Composites & Adhesives 4. Low Migration Coatings & Adhesives for Food Packaging Adhesives

16 Contact Information Joe Fox 614-790-3686 jfox@ashland.com