DZOLV PRODUCTS PTY LTD BIO-BASED MATERIALS Copyright DZOLV Products Pty Ltd 2006

What is PLA? PLA is a polymer made from Lactic Acid Lactic Acid is a naturally occurring product that may be found in the body, yogurt & many other foods Lactic Acid is made from fermentable sugars Sugars are found in plant crops Corn sugar (dextrose) is used to make Lactic Acid

DZOLV PRODUCTS PTY LTD A New Vision – A New World DZOLV Products Pty Ltd was formed in 2004 with the intent of creating a company to deal exclusively with sustainable plastics manufactured from annually renewable resources The aim is to supply to the demands of the market without compromising the earth’s ability to meet the needs of tomorrow

SUSTAINABILITY Is it enough to drive the momentum for the adoption of biopolymers? Sustainability is a very complex issue There are widespread theories on what it means and how to gauge improvement Brands still depend on performance, cost, availability and suitable disposal facilities IF YOU TALK THE TALK…………

Reduce our Dependence on Petroleum Traditional Raw Material source PLA Raw material Source

Renewable Resource Benefits

Less Oil to Spoil Conventional Plastics Processing Poly Lactic Acid Plastics Processing = = Process OilOil Process OilCorn

Oil Based v Annually Renewable Green House Gas Emissions Reduction Example: PLA vs. PS Cups* 31% less fossil fuel use 32% fewer GHG emissions *Natureworks LLC Up to Cup Production data HIPS & GPPS; European Industry Data, APME

PLA v Plastic Renewable v Running out Sustainable v Not sustainable Increase Capacity v Reducing capacity Carbohydrates v Crude Oil Harvesting v Drilling Fewer GHG v Higher GHG Easy to biodegrade v Difficult to biodegrade CORN v CRUDE

Responsibility Let’s talk about that….

Responsibility Required Business environment changing Consumers expect responsibility and accountability Consumers want action not words Responsibility (making a positive impact) is building the landscape for tomorrow’s world Talk the Talk – Walk the Walk

Bio-based or Biodegradable Materials

Types of Biopolymers Plant Based:Manufacturers: Poly Lactic Acid (PLA)Natureworks LLC Mitsui (Lacea) Toyota PolyhydroxyalkanoateProcter & Gamble (Nordex), Metabolix Plant-based StarchNovamont (MaterBi) Rodenburg Biopolymers (Solanyl) Plantic Tencnologies (Plantic) Oil Based:Manufacturers: PolyestersBASF (Ecoflex) Eastman (Eastar Bio) – now Novamont Blends:Manufacturers: Starch BlendsNovamont (MaterBi) Source: IBAW

Biopolymers new options for an old problem DISPOSAL

WHERE IT COMES FROM WHERE IT GOES PLA – Sugar PE, PET & PS - Oil PLA Industrial Compost Recycling Incineration Hydrolysis Trash / landfill PE & PS Trash / landfill Incineration PE & PET Recycling Trash / landfill Incineration

Road Blocks?

Key Challenges… Poor experiences with past technologies - Starch / poly-olefin blends, inferior performance, etc. Is the new any better than the old? - PLA is virtually a “drop in” on PET and PS products Higher cost perception, material switching - Quality & efficiencies are improving going forward - Price of crude oil continually on the rise

Key Challenges (cont’d)… Recycling & disposal - Large volumes are needed to develop infrastructure dedicated recycling and composting All talk, no action - Governments and industry need to load the “eco” gun and start firing the “eco” bullets GM Issue - No GM present in PLA (3 rd party certification) - A sustainable roadmap for the future is better than no roadmap at all

So where are we going?

Biopolymers like PLA can be strong points of inspiration. Companies are starting to realise that informed choices on materials can help to build better brand recognition.

Emotional Attributes Natural, Safe, Fresh – made from nature, ideal for packaging End-of-Life – corn to compost, burns cleaner, can be recycled Beautiful – can be transparent like glass or opaque like ceramic Detail – can be embossed Texture – Stiff and easy to twist and fold Patina – unique abrasion resistance Companies are starting to pay attention to the emotional attributes as much as they do the physical ones when decision making

Your food comes from nature… DZOLV PRODUCTS PTY LTD Now so does you packaging…