1. Chemical supplier_ Vendor or Partner for a sustainable future? 1 PLANET TEXTILES, October 19 2011 Chemical suppliers – Vendor or partner for a sustainable future? Paul Hulme – President Huntsman Textile Effects

2. Chemical supplier_ Vendor or Partner for a sustainable future? 2 Key drivers of sustainability Legislation (longer term / global)  Water shortages  Energy shortages  Pollution control Brand & Retail (quick impact)  Restricted Substances Lists  CSR initiatives  Saving the planet Economics (survival)  Profit  Labour  Currency Sustainable Apparel Coalition

3. Chemical supplier_ Vendor or Partner for a sustainable future? 3 > 1020% < 560% O or negative20% Profit Level (%)Chinese Mills Economic sustainability?? 80% of all Chinese mills make less than 5% profit! Source Dr Sun presentation at CNTAC Conf June 2010

4. Chemical supplier_ Vendor or Partner for a sustainable future? 4 70% 15-20% 3-5% 8-10% Fiber Utilities Labor Dyes & Chemicals Biggest potential for cost reduction  Challenge to manage and control fiber and labor costs  Dyes constitute the smallest cost  Utilities costs-scope for reduction through environmental and operational excellence Cost Analysis of a Cotton T-Shirt Which costs can be controlled?

5. Chemical supplier_ Vendor or Partner for a sustainable future? 5 Innovation Portfolio People Knowledge Industry Needs from a Partner Relevant Products - for your end articles - for your equipment Knowledgable People - technology experience - able to work in your facilities Innovation - to help you improve your business - to help you meet new challenges Dyes + Chemicals

6. Chemical supplier_ Vendor or Partner for a sustainable future? 6 Resource consumption per year-100%Co Knit (20t/day) Before auditOptimizedNew technology Water:960000 m 3 660000 m 3 360000 m 3 Electricity:2.1 mioKW1.5 mio KW0.8 mio KW CO 2 :428 t300 t163 t Huge reduction in utilities costs What Partnership Can Deliver

7. Chemical supplier_ Vendor or Partner for a sustainable future? 7 Reactive Dyeing of cotton  Conventional 60 to 80 liters / kg  Best Available Technology (BAT)30 to 40 liters / kg  New generation (available today) 15 to 20 liters / kg Relevant products – water consumption  Conventional 30 to 40 liters / kg  New generation (available today) 20 liters / kg Gentle Bleaching of cotton

8. Chemical supplier_ Vendor or Partner for a sustainable future? 8 Productivity Improvement Program (PIP) Leveraging people knowledge  Textile Effects brings its proprietary know-how and expertise to audit textile mills to optimize their processes and production rates for savings in water, energy and effluent.  Demonstrates the cost effectiveness of Huntsman products to create value. Knowledgable People

9. Chemical supplier_ Vendor or Partner for a sustainable future? 9 100% cotton Knitted Dyed with reactive dyestuff Washing at 60°C Dried in tumble dryer Ironing of the T-shirt is assumed Product is washed and tumble dried 25 times in ist lifetime T-shirt weighs 250g Ecological balance, a cotton T-shirt Source; well dressed? University of Cambridge 2006 MJ per article Primary energy profile Innovation where it counts…. use production material transportation 65 24 16 7 Intelligent Effects

10. Chemical supplier_ Vendor or Partner for a sustainable future? 10 Intelligent Garment Effects to drive sustainability FreshnessGarments need to be laundered less Active ComfortMake cleaning easier Lasting ColorGive the garment a longer life Easy Care Plus Reduce the need for tumble drying / ironing Innovation

11. Chemical supplier_ Vendor or Partner for a sustainable future? 11 Sustainability relates to the continuity of economic, social and environmental aspects of human society. The technology we need to make an impact is available today. Textile Strategy for 21 st century Huntsman – Partner for a sustainable future