Implementing Sustainability through the right packaging decisions Juil Cha May 24, 2010

Content
Overview of DuPont The Global Mega Trends
Respond to the mega trends by DuPont Packaging mega trends

DuPont Solutions for Sustainable Packaging DuPont Packaging and Industrial Polymers
Business/markets and innovative products

Examples and summary

About DuPont
A Science Company 207 Years of Innovation (Founded in 1802) 13 Distinct Businesses Global revenues of $30.5 Billion (2008) Packaging sales ~$2.5 Billion (2008) 57,000 employees operating in over 70 countries More than 75 R&D / customer support labs worldwide 8500 scientists & engineers in DuPont with 1800 in emerging regions

Electronics & Communications Electronics & Communications Protection Technologies Protection Technologies Building Innovations Building Innovations Sustainable Solutions Sustainable Solutions Titanium Technologies Titanium Technologies Chemicals & Fluoroproducts Chemicals & Fluoroproducts

Pioneer Hi-Bred Pioneer Hi-Bred Crop Protection Crop Protection Applied BioSciences Applied BioSciences Nutrition & Health Nutrition & Health Performance Polymers Performance Polymers Packaging & Industrial Polymers Packaging & Industrial Polymers Performance Coatings Performance Coatings
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DuPont 2008 Sales by Market

AIRCRAFT & AEROSPACE 4%

PLASTICS & CHEMICALS 9%

MOTOR VEHICLES 20%

AGRICULTURE/ FOOD 29%

TEXTILES / HOME FURNISHINGS 5% OTHER 13%

ELECTRONICS 9%

CONSTRUCTION MATERIALS 11%

DuPont - Sales by Region

2001
$24.7B
Developed Asia Emerging 9% Asia 6% Emerging Europe 2%

2008
$30.5 B
Developed Asia 8%

Emerging Asia 9% Emerging Europe 8% United States 49%

United States 36%

Western Europe 24%

Western Europe 24% Canada & Latin America 10%

Canada & Latin America 15%

Going Where the Growth Is

Global Mega Trends

Unprecedented growth in developing countries Need for increased food production Drive for renewable energy and materials Demand for greater safety and security Desire for increased connectivity

Megatrends Driven by Population Growth

Increasing Food Productivity Decreasing Dependence on Fossil Fuels Protecting Lives, Assets & the Environment Growing in Emerging Markets

Global Population Billions of People

Source: 2008 World Population Data Sheet: www.prb.org.

DuPont Focus

The company will focus its innovation engines on emerging trends to: meet the increasing demand for food protect people and the protect people and the environment environment decrease dependence on decrease dependence on fossil fuels fossil fuels capitalize on the growth capitalize on the growth of emerging markets of emerging markets

Our 2015 Sustainability Goals

Reducing Environmental Footprint Greenhouse Gas Emissions Water Conservation Fleet Fuel Efficiency Air Carcinogens Independent Verification of Site Programs Serving the Marketplace Environmentally Smart Market Opportunities from R&D Efforts Products that Reduce Greenhouse Gas Emissions Revenues from Non-Depletable Resources Products that Protect People
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Mega Trends in Packaging

Concern for Health, Wellness & Beauty (Appearance of Health)
Health Management vs. Weight Management Personal Appearance vs. Hygiene & Odor Natural, Organic, Local Functional Foods Beauty Beverages Anti Smoking / Sleep Aids Concern for Safety

Increased Environmental Awareness & Social Consciousness

Concern for Global Warming Concerned about over-packaging (trash) Renewably Sourced Materials Biodegradable, Compostable Materials Ethical Standards

Packaging that is Convenient & Functional

Simplicity Easy Open Portability Refills Intelligent
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Packaging Implications
Market Drivers: Driving Technology in:
Renewably Sourced Materials Compostable Materials Increased Recycling Easy Open / Easy Reclose

Concern for Health, Wellness & Beauty (Appearance of Health)

Packaging that is Convenient & Functional

Retort Barrier Materials Scavenging Technologies

Increased Environmental Awareness & Social Consciousness

Portioned / Single Serve Packages Custom preparation (food, cosmetic, supplement) Custom printing Strong & Tough packaging but with easy to open seals Strong & Tough to enable down gauging Tamper Eviden
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Needs for consumers

Desire for fresh, healthy and safe food Looking for luxury and value Increase expectations of high quality and value products Demographics trend Ageing population demand openability
Working population expect convenience, functional packaging, ready to eat, all to make their lives easier Teenagers look for individuality and trendy packaging

popularity of social media, increasingly relying on recommendations from peers. Looking to packaging to create a sense of brand worth and trust Increased environmental awareness and social consciousness
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Growing

Needs for Retail / Channel

Increasing sophistication and value share of private labels Emphasis on product safety, desire for longer shelf life Intelligent packaging for security, inventory control Drive in store merchandising solutions to engage shoppers

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Needs for Brand Owners

Seek added value while minimize total package cost with same functionality and shelf appeal Globalization to drive contract packaging to cope with outsourcing, regionalization and tightening economy Require longer shelf life Sustainability recycled materials, renewable resource, light weighting to reduce cost, footprint and minimize resource Automated and efficient process to drive fast turnaround, short-runs, innovation and quality packaging

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Needs for converters

Converter consolidation with increased global/regional reach Compete outside of national markets, across countries/regions especially from those who are based on lower cost countries High impact from environmental regulation affect them on how they build packaging laminates/films at both the material and process level Extend to niche higher value markets to maximize returns for their technology strengths eg. Pharmaceutical and medical packaging, industrial laminates, PV, electronics Evolving technologies for differentiation RFID, interactive packaging, holography

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Legislations

Government regulations to influence packaging material sustainability Global policy on reduce energy use and greenhouse gas emissions to reduce environmental impact

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DuPont Solutions for Sustainable Packaging

Renewable Materials
Biomax PTT polyester resins Selar VP breathable resin Pro-Cote soy polymer Biomax Thermal PLA Modifier Biomax Strong Modifier *

Alternative End-of-Life
Elvanol PVA (Dissolvable) Fusabond Compatabilizers (Recyclable)

* Functionalizes PLA not RS on its own

Energy & GHG Savers

Biomax Strong Modifier Appeel lidding film resin DuPont Cyrel FAST Flexographic Plate Systems

Material Reduction
Elvanol PVA Surlyn Skin & Stretch Surlyn Super Stiff Mylar ECO Film Ethylene Copolymers

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DuPont Packaging & Industrial Polymers

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Packaging & Industrial Polymers

Ethylene Copolymers Business

Surlyn , Nucrel , Bynel , Vamac , Appeel , Elvax , Biomax , Entira, Elvaloy , Elvaloy AC, Keldax

Vinyls Enterprise
Butacite , Sentryglas , Elvanol , Vinyl Acetate

Olefins

Revenue % Broad range of specialty, high-value polymers for films, molding, lamination, and compounding
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ECP Market Applications Portfolio

Construction Industrial Goods

Transportation

Food & Beverage Packaging

Consumer Goods

Health & Beauty Packaging

Six Major Market Areas --- Over Thirty Segments

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Product Categories
Sealants
Appeel Lidding Resins DuPont 20s Polyethylene Resins Elvaloy AC Acrylate Copolymer Resins Elvax Ethylene Vinyl Acetate Resins Nucrel Acid Copolymer Resins Surlyn Ionomer Resins

Adhesives
Bynel Adhesive Resins Elvaloy AC Acrylate Copolymer Resins Elvax Ethylene Vinyl Acetate Resins Nucrel Acid Copolymer Resins

Barrier Technology
Selar PA Amorphous Nylon Resins

Modifiers and Processing Aids

Biomax Strong & Biomax Thermal Modifier Resins Booster Throughput Enhancer DuPont DPE 6611 Purge Resin Elvaloy and Elvaloy AC Acrylate Copolymer Resins Conpol Masterbatch Resins Fusabond Compatibilizer Resins Entira AS Anti Static Modifier Resin

Molding & Forming Resins

Surlyn Ionomer Resins Biomax PTT Polytrimethylene Terephthalate Resins DuPont 20s Polyethylene Resins

Click any heading to learn more

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Surlyn Easy-Up Film

Remove What
Bundling material to replace cardboard packaging

Sustainability Value Proposition source reduction

Less waste vs. board Potentially could be made 15% - 20% bio derived

Performance Value Proposition Strong, easy tear film

Safe, easy to open bundles (no knives required) Strong, easy directional tear film

Typical Applications
Multi-pack bundling

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Biomax Strong Modifier

Reduce What
Modifier for PLA (Poly-Lactic Acid) to improve toughness properties

Sustainability Value Proposition Tougher, Stronger PLA

Higher performing PLA Maintaining Compostability status when used at recommended levels

Performance Value Proposition more durable PLA

4500 4000 3500 Spencer Impact (g/mm) 3000 2500 2000 1500 1000 500 0 0% 2% 4.80%

Reduced Brittleness Enhance Impact Strength Enhance Flexibility Enhance Viscosity Good Contact Clarity

CRYSTALLINE AMORPHOUS

Typical Applications
Cast Sheet, Thermoforming Blow molding Injection molding Films

PLA Tray

2% Biomax Strong

5% Biomax Strong

Available for sampling: Biomax Strong 100 non-food, Biomax Strong 120 food

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Surlyn Skin & Stretch Packaging

Reduce

What
Replace clamshells & blisters with Skin and/or Stretch Packaging

Wal-Mart: Reduce packaging by 5%

Sustainability Value Proposition

simplifies packaging
Replaces hard-to-open clamshells and blisters Reduces Weight Cubes & Transports more efficiently

Performance Value Proposition

Strong, Clear, Easy to Open Packages
Maintains product security Transparency

Typical Applications
Bottles Parts & Profiles
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Examples - Surlyn Skin & Stretch Packaging

Reduction from 118 Grams to 112 Grams total 5% reduction (includes Tuner so not absolute Pkg. Reduction)

Reduction from 662 Grams to 585 Grams total 12% reduction (includes Hooks so not absolute Pkg. Reduction)

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Downgauging with Surlyn

Reduce
Reduced Weight
(% Weight Reduction)

What
Re-engineer flexible structure to reduce multi layer film thickness with super-tough Surlyn resins

35 30 25 20 15

Sustainability Value Proposition source

reduction
Less plastic consumption and waste

10 5 0 Snack Pr ocessed Meat Dr y Food Per sonal Car e

Performance Value Proposition Downgaged, cost

competitive, performance film
Downgaging Cost Competitive structure Surlyn Performance
16 14 12 10 8 6 4 2 0 Snack Processed Meat Dry Food Personal Care

Reduced Cost
(% Cost Sav ings compare d to standard structure s)

Typical Applications
Food & Beverage Cosmetics and Personal Care Industrial

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Downgauging with Bynel and Nucrel

Reduce

Propose environmental friendly packaging structure to meet social demand.

* Source Reduction : Down gauging of adhesive resin and/or sealant * Organic Solvent Free : Utilize adhesive resin instead of anchor coating agent with PE

<Conventional>
Outer Layer

<Trial>
Ink
AC

OPP(20) LDPE(13) VM/PET(12) LDPE(13) Sealant

OPP(20)
Ink

Bynel or Nucrel

VM/PET(12) Sealant

AC

Inner Layer

Saving

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Appeel Lidding

Reduce

What
Lidding material that provides peelable seals to most materials (including PLA)

Sustainability Value Proposition reduces solvents

Extrusion coating (solventless) replaces solvent based lacquers Lidding materials for sealing to PLA containers

Performance Value Proposition strong, peelable seals

Lidding material with peelable seal to PLA Extrusion coating Lamination Stand alone petrochemical lidding material

Typical Applications
Lidding for PLA and other cups & bowls

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Fusabond Compatibilizers
Recycle(able)

What
Compatibilizers (Fusabond) for recycling of production waste streams

Sustainability Value Proposition

Less waste 10-20 wt% less virgin raw materials used in packaging

Performance Value Proposition

Low addition levels to incompatible waste streams significantly enhance mechanical properties of incompatible polymer waste streams (eg. PE / PA) - from separate waste streams or multi-layer film trim scrap Useful as well in the case of high moisture containing waste streams
PA / PE RECYCLING
(30 WT% PA6 / 70 WT% PE - LLD)

Typical Applications
Recycling of Converter Polymer Multilayer waste streams
NO COMPATIBILISER NO COMPATIBILISER 10% PE -- LLD -- g -- MAH 10% PE LLD g MAH (FUSABOND MB 110 D) (FUSABOND MB 110 D)

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Selar VP Breathable Resin

Highly breathable materials for foods where high respiration is needed for food safety and shelf life extension
As a primary substrate it offers controlled breathability for either CO2, or O2 transmission, as needed for foods that respire. Meets FDA breathability guidelines for fresh seafood packages. Reduces product purge loss leading to lower overall cost No open bags. More secure than micro-perforated alternatives Can be made shrinkable without losing permeability for more aesthetically

pleasing packages
Complies with food contact regulations in the U.S. and EU Some grades have excellent seal performance in multi-layer film constructions where renewable source content is desirable (EU food contact only) Selar VP is a developmental grade. Please discuss your oxygen transmission needs with your DuPont representative.

Sustainable Contributions Sustainable Contributions

Renewable

Renewable Selar VP is 30% renewably Renewable Selar VP is 30% renewably sourced by weight sourced by weight

Seafood Packaging

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Summary of Sustainable Packaging Offering

Remove Packaging
Surlyn Easy Up Elvanol PVA

Positive Sustainable Impact:

Transportation, Material Value Material Value, Recovery

Reduce Packaging
Biomax Strong Modifier Surlyn Skin & Stretch Packaging Super Tough Surlyn Cyrel FAST platemaking process Appeel Lidding material Material Value, GHG Product/Package Ratio, Cube Utilization, Transportation, GHG Material Value, Transportation, GHG GHG GHG Emissions

Renew(able) Packaging
Sorona (3GT) Selar VP breathable material Biomax Compostable polymer Solae Pro-Cote protein binders GHG, Recovery GHG, Material Value Recovery, GHG? GHG

Recycle(able) Packaging
Fusabond Compatabilizers Recycled Content, Recovery

Enablers
Mylar ECO Films GHG
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Back up charts

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Products by Market
Meat, Cheese and Dairy
Appeel lidding resins Bynel adhesive resins Elvax resins Selar PA nylon Surlyn ionomer resins Appeel lidding resins Bynel adhesive resins DuPont 20s LDPE Surlyn ionomer resins Biomax Strong & Biomax Thermal Bynel adhesive resins Elvaloy AC resins Elvaloy resins Fusabond resins Selar PA nylon Surlyn ionomer resins

Snacks
Bynel adhesive resins Elvax resins Surlyn ionomer resins

Liquid Packaging
Bynel adhesive resins Nucrel acid copolymers Selar PA nylon

Pharma/Medical Packaging

Retort
Appeel lidding resins Bynel adhesive resins

Rigid Packaging

Cosmetics & Personal Care

DuPont 20s LDPE Surlyn ionomer resins

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Products by Process
Blown and Cast Film
Appeel lidding resins Surlyn ionomer resins Nucrel acid copolymers Bynel adhesive resins Biomax Strong & Biomax Thermal Elvax resins Selar PA nylon Elvaloy AC resins Booster

Extrusion Coating/lamination
Nucrel acid copolymers Surlyn ionomer resins Bynel adhesive resins Appeel lidding resins Elvax resins

Elvaloy AC resins DuPont Purge resin

Sheet/thermoforming
Bynel adhesive resins Elvaloy AC resins Elvaloy resins Selar PA nylon Biomax Strong Biomax Thermal Fusabond compatabilizers

Blow Molding/Tubes
Bynel adhesive resins Selar PA nylon Selar RB barrier technology Surlyn ionomer resins Entira AS Fusabond compatibilizers DuPont 20s LDPE

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DuPont 2015 Sustainability Goals

Reducing our own operational footprint: Greenhouse gas emissions: 72% reduction since 1990 Reduce another 15% Water conservation: Reduction by at least 30 percent where water is scarce or stressed. Fleet fuel efficiency: 100% fleet with leading technologies for fuel efficiency and fossil fuel alternatives Air quality : Reduced 92% air carcinogenic emissions since 1990 Reduce another 50% Bringing sustainable solutions to the marketplace: Grow annual revenue by $2 billion from products that: Create energy efficiency Reduce greenhouse gas emissions Invest in R&D: Environmentally smart market opportunities Revenue from non-depletable resources: Double from $4 to $8 billion Introduce at least 1,000 new safety products or services
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Progress Toward Goals

Footprint Goals
Reduce Greenhouse Gas Emissions
Progress: Overall, down 8.5 % since 2004. This represents 56% of goal

Market Facing Goals

Increase R&D Investment
Progress: $570 Million invested in 2008 Goal is set at $640 million.

Fleet Fuel Efficiency

Progress: 39% of current U.S. vehicles are using leading technology. This represents 39% of goal

Increase Annual Revenue

By at least $2 billion from products that create energy efficiency or reduce green house gas emissions Progress: $108 million in revenues

Reduce Air Carcinogens

Progress: Down 50% overall. This represents 100% of goal

Nearly double revenues from nondepletable resources to at least $8B

Progress: Revenues increased to $6.8B

Global Manufacturing Sites Verification of Environmental Management Goals

Progress: 53% of sites are ISO 14000 Certified. This represents 53% of goal

Introduce 1,000 New Products and Services to make people safer and more secure
Progress: Introduced 371

Reduced Water Consumption

Progress: Siites in stressed areas up 7%. Total water consumption is down 2%

2009 Progress Report

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Flexible Packaging Improves Transportation Efficiency

Reducing Fossil Fuel Consumption and CO2 emissions Lessening Highway Wear/Tear and Congestion

26 Truckloads of Unfilled Glass Jars

(Pasta Sauce Flexible Pouch Example)

One Truckload of Unfilled Plastics Pouches

Less Fuel consumed & Less emissions

Source: DuPont Awards for Packaging Innovation

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Flexible Packaging Sends LESS to the Landfill

Beverage Packaging Example:
Product Weight (g) Package Weight (g) Package Wt per 100 g Product (g)

US Recycle Rate

Remaining % to MSW Landfill 65%

MSW Landfill per 100 g Product (g)

Glass Bottle & Metal Cap

236

198.4

83.9

35%

54.5

Plastic PET bottle & Cap

236

22.7

9.6

37%

63%

6.0

Aluminum Can

236
Flexible Stand Up Pouch

11.3

4.7

49%

51%

2.4

199

5.7

2.8

0%

100%

2.8

Sources: FPA Case Studies, 2009; EPA 2007 MSW Report

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