1. Angela Austin – Associate, Omni Tech International PU Eurasia, Istanbul, 12-14 November 2015

2.  Represents 590,000 US soybean farmers  Revenue based on 0.5% of the soybean market price per bushel 50% retained by each State where collected, 50% sent to the USB  Supports development and new- use programs  USB funds research with universities, start –ups, SMES, to Fortune 500 companies.  USB typically funds front end innovation

6. A world of 7 billion people each eating 40 g of dietary fat/day (the recommended maximum) requires just over 100 million metric tons/ year The world produces over 160 million metric tons of refined vegetable oil and an estimated 100 million metric tons of dietary fat from meat, dairy, fish, and other dietary sources. Hunger is real, but it is not caused by shortage of vegetable oils or by their industrial uses Industrial applications are valuable markets for oversupply of oils due to demand for soybean meal ( protein).

7. “ Life Cycle Profile Shows U.S. Soy Delivers Environmental & Energy Benefits” www.soybiobased.org/sustainability “New Life Cycle Profile Shows U.S. Soy Delivers Environmental & Energy Benefits” jpollack@omnitechintl.com www.nrel.gov/lci

8.  Cargill - BiOH® Polyols (US) ( Brazil)  BioBased Technologies - Agrol™ Polyols (US)  MCPU Ind. - Honey Bee™ Polyols (US)  Oleon (B)  Hobum Oleochemicals (D)  BASF/Cognis (D)  Harima (PRC)  Fengda Jinhua ( PRC)

9. Region2012% AAGR2013% AAGR2014% AAGR2015 (Kt)2013/2012(Kt)2014/2013(Kt)2015/2014(Kt) NAFTA 3,1504.8%3,3006.7%3,5226.8%3,760 S.America 8103.7%840-5.2%796-4.0%764 China 6,0209.6%6,6007.6%7,1007.7%7,650 EMEA 5,3552.5%5,4903.5%5,6823.8%5,900 Asia Pacific 2,5756.0%2,7305.5%2,8806.9%3,080 Total17,9105.9%18,9605.4%19,9805.9%21,154

10. Source: IAL Consultants

11. Raw material20122013% AAGR2014% AAGR2015% AAGR Kt 2013/12Kt2014/132015/14 MDI5,0305,4107.6%5,7856.9% 6,1456.2% TDI1,9552,0504.9%2,1374.2%2,1982.9% Aliphatic Isocyanate25027510.0%2905.5%3065.5% Polyester Polyols1,8101,8703.3%1,9403.7%2,0706.7% Polyether polyols6,4656,7804.9%7,1605.6%7,6056.2% Additives2,5002,6385.5%2,6681.1%2,8306.1% Total17,91018,9605.9%19,9805.4% 21,1545.9%

12.  Flexible Foam – Slabstock, Moulded & Viscoelastic  Froth Foams for carpet backing  Rigid Foams-spray and OCF  Elastomeric Protective Coatings  Adhesives  Coatings  Structural Composites – Pultrusion

13. PU Production ( 2013)( tonnes) Flexible slabstock135000 Flexible moulded foam12500 Total flexible foam147500 Construction panels38000 Spray foam5000 OCF6500 Domestic & Commercial refrigeration47000 Pour in place- moulded foams5000 Total rigid foam101500 Shoe sole resin55000 Synthetic leather resin10000 Coatings, Adhesives & Sealants30000 Binders2000 Cast elastomers200 Total CASE97200 Total PU Production346200

17.  Global growth in market share of full foam mattresses due to ease of production, especially in Eastern Europe  Growth in demand for full foam mattresses from student and immigrant/refugee populations  Growth in product differentiation and sustainability for export markets and domestic premium market  IKEA during 2016 aim to launch a foam mattress from renewable resources in North America.

18. “We have been working with our suppliers to test a solution that will enable us to reduce the proportion of petroleum-based, non-renewable foam used in our mattresses. From FY16, a new foam made of 15% soy-oil polyol will be used in our foam mattresses, such as MALFORS and MOSHULT. Soy production can be associated with poor environmental and social standards, so we buy our soy oil from segregated, traceable sources in North America, that comply with our supplier Code of Conduct.” “[Foams]made from soy could enable our foam suppliers to reduce CO2 emissions significantly. As we find ways to increase the proportion of soy- based material, and combine this with a new process for recycling conventional foam, we can reduce emissions even further.”

20. Suppliers to premium auto seat market are not expected to use soy polyols in the near future Most moulded foamers have tested most types of Natural Oils Polyols European seat and headliner foams are becoming thinner and of higher density than NAFTA models There is a move towards using renewable chemicals as part of the “ green” package, but use depends upon price and performance. Complexity of auto OEM specifications limits changes to foams VOCs are a major issue for the automotive market

21. Panel manufacturers and appliance focus on energy performance rather than renewable chemicals Soy polyols are finding some applications in spray foams due to marketing benefits. Natural oil polyol based spray foams are offered by Spain & Belgian manufacturers Natural oil polyol based systems are being used in OCFs

22. Some manufacturers are using soybased polyols and other NOPs for various products including;  2K aliphatic PU floor coatings, speciality road coatings, slow release agricultural coatings  Sealants can use castor oil or soy oil as a plasticiser  EU is investing 1 million EUR (USD 1.3 million) into programs to promote the use of green chemicals including adhesives and sealants  Consumer health and safety is an important driver for these products

23. Coatings can now contain high levels of bio-based, they offer unique properties  Improved hydrophobicity; low sensitivity towards moisture  Low viscosity  High chemical stability  Broad adhesion spectrum  Very low shrinkage  High pigment loading, good self levelling properties „EASY to APPLY“  Solvent free, low VOC formulations Photo courtesy BASF

24.  Merquinsa and BASF use green polyols and bio based BDO in their “green” TPUs  Soy polyol based elastomers can have some use in the specialty footwear sector  Speciality footwear sector remains a niche market but is more price elastic  Cast elastomers using renewable chemicals are produced in Australia and India for processing into components supplied to Europe.  Cast elastomers using soy polyols have better abrasion resistance, good for steel mill and paper rollers

25. Use of soy based resin used In pultrusion techniques to Produce window profiles and Lightweight shelves from Bayer Material Science (US).

26. Soybean oil is a triglyceride containing unsaturation with approx. 4.5 double bonds per molecule. Unsaturation during polyol production provides site for chemical reactivity Soy polyols can meet company sustainability goals Soy polyols offer unique chemical structures and differentiated performance Production economics and product ranges continue to expand and improve Soy polyol costs are less volatile than petchem polyols Long term security in supply

27.  Replace petroleum based chemical content by 5-80% in flexible and rigid foams and up to 70% in memory foam.  Foams can qualify for USDA BioPreferred® status & preferential Federal purchasing  Foams are stable and process easily  Can dissipate heat 30% faster than PCMs in some memory foams.  Can replace up to 60% latex in binder systems such as for carpet backing.  Require less cell opener, less hardener needed in flexible foams  Can create lower shrinkage rates in block foams

28.  Create a silky feel to memory foam  Offer superior sound deadening properties  Offer a higher sag factor  Create a lower rebound than standard foams – good for acoustic and vibration insulation  Excellent properties for flame lamination foams  Lower OH number needing less MDI in some foam systems  Offer excellent hydrophobicity  Offer superior abrasion resistance in cast elastomers

29. And…….. Soy polyols can be made from >92% to 98% renewable materials.

30.  Polyols suppliers have attained REACH registration for some grades for the EU markets, non EU markets present opportunities too  Suppliers are working to create a reliable supply chain in Europe and further afield  Continue education program amongst PU industry to overcome environmental and food issues  Promote the technical benefits of using soy polyols

31. Thank you to the following organisations for their contributions: * BioBased Technologies LLC * Cargill Industrial Oils Division * Natural Foams Technology * OmniTech International * United Soybean Board