UNIPOL™ PE T h lUNIPOL™ PE TechnologyStrategic Solutions for the Indian PE Producer

Univation Technologies, LLC

16th International ConferenceINDIAN Petrochem

October 30 – 31, 2014Mumbai, India

Outline

India Polyethylene Market Drivers

PE Technology Solutions for Success

UNIPOL™ PE Process – The Strategic Solution

– Product Capability

– Process Flexibility

– World-Class Performance

Summaryy

India Polyethylene Market Drivers

1600

A Dynamic Market

Fast growing commodity market

P i d f PE i l tilit

Dynamic Asian PE MarketsUSD / ton

HDPELLDPE

1150

1300

1450

Di d E l i N d

Periods of PE price volatility

Feedstock advantaged competition

LLDPE

1000Diverse and Evolving Needs

Cost-effective grades for large markets

Specialty grades for premium marketsIndia +3.3MT PE Growth

Jan ‘10 Oct ‘14

Constant New Developments

p y g p

Capability to capture new opportunities

6

7

+0.5MT Specialty PE

MetalloceneHDPE Pipe

PE

/ ye

ar

Constant New Developments

Infrastructure growth & renewal

Increasing packaging sophistication3

4

5

Conventional PEmilli

on to

ns P

Opportunity to replace import volumes2014 2016 2018 2020 2022 2024

Sources: Nexant ChemSystems POPS Executive Report 2013, ICIS Pricing October 2014

PE technology solutions for long term success

UNIPOL™ PE Technology

A Dynamic Market

Fast growing commodity market

P i d f PE i l tilit

Safe, streamlined process design

Largest pro en reactor capacities

gy

Di d E l i N d

Periods of PE price volatility

Feedstock advantaged competition

Largest proven reactor capacities

Lowest investment & operating costs

Diverse and Evolving Needs

Cost-effective grades for large markets

Specialty grades for premium marketsBroadest product mix in single reactor

Unparalleled catalyst developmentConstant New Developments

y g

Capability to capture new opportunities

Track record of technology transferConstant New Developments

Infrastructure growth & renewal

Increasing packaging sophistication

Opportunity to replace import volumes

Univation Technologies & UNIPOL™ PE Process Global Leader in PE Production

Exclusive licensor of the UNIPOL™ PE Process– >40 years operating experience

– >140 licensed UNIPOL™ PE Process lines

Global Presence of UNIPOL™ PE Process

– Over 1/3 global HDPE/LLDPE market position

The leader in operating & announced capacity– >25 million tons operating capacity from 110 lines

– >33 lines currently in design / construction

– >2X larger than next closest competitor

2013 LL/HD Operating Capacity

ns P

E / y

ear

15

20

25

6

8

10

2011-2013 LL/HD New Announced Capacity

ns P

E / y

ear

mill

ion

ton

0

5

10 other PE technologies

0

2

4m

illio

n to

n

Source: Nexant ChemSystems POPS 2013, ICIS News and Univation Technologies internal assessment

UNIPOL™ PE ProcessSimple, Streamlined Process Design

Fewest pieces of major rotating equipment

Reactor gas loop optimized to provide stable operation

Technology enabling quick & efficient transitions

Standard extrusion equipment for pelletingPE

No cyclone solid/liquid separation system required

C2=

UNIPOL™ PE ProcessLowest Total Investment Costs

4025

SD

UNIPOL™ PE Process vs. Other Gas Phase LLDPE Processes

UNIPOL™ PE Processvs. Slurry Loop HDPE Processes

SD

10

20

30

0

5

10

15

20

milli

on U

S

milli

on U

S

0

Slurry Loop

Process A

SlurryLoop

Process B

0

OtherGas

Phase

OtherGas

PhaseUNIPOL™ PE

ProcessUNIPOL™ PE

ProcessProcess A

GasProcess B

GasProcess C

SlurryProcess D

SlurryProcess A Process B

Up to ~$45 million lower total investment cost

Process ProcessPhase Phase Loop Loop

Low investment cost leader for both LLDPE & HDPE production

L ll ti t th h & l l t h l i Lower overall operating costs vs. other gas phase & slurry loop technologies

Graph Source: Nexant Chemsystems POPS Technology Report, 2012; Total Investment Costs, 400 KTA capacity plant

UNIPOL™ PE ProcessTechnology leadership in largest proven capacity

Preferred, proven industry leader for single line ≥400kta capacities– 20 lines in operation ≥400kta capacities

16 lines in design/construction ≥400kta capacities– 16 lines in design/construction ≥400kta capacities

– Plants in operation with capacities up to 650kta

KTA Other LL/HD Technologies Maximum Operating Capacities

650

0 K

TA

0 K

TA

0 K

TA

KTA

UNIPOL™ PE Process AG

Process BG

Process CSl

Process DSl

370

320

300

240

Process GasPhase Gas

PhaseSlurryLoop

SlurryTank

Graph Sources: Nexant Chemsystems POPS Executive Report, 2013

UNIPOL™ PE ProcessDelivers World-Class Operating Performance

Licensee % Ai G d % O ti Ti Total Monomer

UNIPOL™ PE Process HDPE/LLDPE Operating Performance

Example % Aim-Grade % Operating Time Ratio

Best 100.0 100.0 1.002

Top Quartile 99.3 99.2 1.006

Outstanding operating performance across all key manufacturing metrics Outstanding operating performance across all key manufacturing metrics

Most plants operate above original nameplate & maintain excellent performance

Advanced premium technology runs at 5 – 15% higher rates vs. conventional catalysts

– XCAT™ Metallocene Catalysts

– ACCLAIM™ Advanced Chromium Catalysts

– PRODIGY™ Bimodal Catalysts

Sources: Univation information on UNIPOL™ PE operating line process performance (2012 – 2013)Total Monomer Ratio (TMR): (ethylene + comonomer ) / total resin production

UNIPOL™ PE ProcessBroadest Product Capabilities in a Single Reactor

DIG

Y™ PipePE80/PE100MetalloceneFilm/ Extrusion Coating

UCAT™ J Catalyst

XCAT™ Metallocene Catalyst

State-of-Art Catalysts

PRO

D

XCAT

™

Coat g

Large Part Blow Molding Rotomolding

ACCLAIM™ Unimodal Catalyst

XCAT Metallocene Catalyst

PRODIGY™ Bimodal Catalyst

CC

LAIM

™

HD

PE

LLD

PE

HIC Blow Molding Hexene Film

Over 150 Resin Grades Offered

AC

AT™HD Film

InjectionMolding

Full HD/LL Application Range

Metallocene LLDPE

C ti l LLDPE

UC

AT™ UC

AInjection Molding

ButeneFilm

Conventional LLDPE

Unimodal HDPE

Bimodal HDPE

Univation Technology LeadershipExtensive patent estate with wide-spread technology acceptance

Leading patent portfolio

>12,000 patent filings provide competitive FTO advantage

HD & LL Patent Family Filing ActivityUnivation Technologies

Coverage across HD, LL, MCN platforms

IP includes products, process & catalysts technologies46%

Leading advanced technology licensor

Advanced ACCLAIM™, PRODIGY™ & XCAT™ CatalystsUnivation Licensed Since 2005, 82% customers licensed advanced technologies

• >14 million tons licensed advanced catalyst capacity

• ~50% licensees select multiple advanced technologiesUnivation

Catalyst Technology2005 – Present

Univation50%82%

Advanced82%

IP Source: UT 3rd party IP benchmarking studyNote: Univation patent filing data reflects Univation’s licensable patent portfolio

82%

XCAT™ Metallocene CatalystsProviding World-Class Metallocene Leadership

Global Metallocene Producing Capacity India: ~170KTA @ >10% AAGR (‘14 – ’24)

– Dependence on imported metallocene LLDPE to meet demand

– Global metallocene LLDPE ~5000KTA @ >8.5% AAGR (‘14 – ’24)

XCAT™ Metallocene Catalyst Technology

35% f l ll LLDPE k l

Univationothertechnologies

– >35% of total metallocene LLDPE marketplace

– >19 yrs commercial experience

– >16,000KT cumulative commercial metallocene LLDPE resinGlobal Licensed Metallocene

Univation success with XCAT™ Catalyst

– ~75% of licensed metallocene capacity

Technology Capacity

othertechnologies

– >10 producing commercial reactors

– Licensee & UT parent lines: 100 - 650KTA

Univation

g

Sources: Townsend Solutions HAO LLPDE / mLLDPE 2012, Nexant Chemsytems POPS 2013, Nexant Global Metallocene Review 2014 & Univation estimates

Advanced Technology for Faster Product TransitionsUNIPOL™ PE ProcessQuick & seamless product transitions

Full HDPE/LLDPE product wheel capabilityUNIPOL™ PE Resin Product

Wheel Example

LLDPE Bimodal PE100

PREMIER™ APC+ optimizes running grade transitions

– Transition recipes pre-loaded for all UNIPOL™ PE Resin grades

– Minimizes off-grade with transitional resin segregation

UnimodalHDPEFilm

Injection/Roto-

Molding

PE100

C4 LLDPE

APC+ Advance Control

Quick Transition Technology enables faster transitions

– Transition time reduced up to 60%

C6 LLDPE

Film

Film

APC+ Advance Control Transition Optimizer – Selected by 15 licensees since 2009

Efficient product transitions achieved

MI transition

aim-gradeMI

< 4 hrs

– Minimizes transition time enabling up to 99.5% aim-gradeStart

Density

Lab MI MI Lower Spec MI Upper SpecTarget MI Lab Density Target Density

Production time (hrs)

Univation TechnologiesExtensive Technology Support Across UNIPOL™ PE Plant Lifetime

ComprehensiveTraining

Start-Up Support

Technology InnovationTransfer

TechnologyImprovements

Life-long on-site support from plant commissioning through advanced catalyst implementation

Industry leading safety performance with >2,400 reactor-years of safe operations

Univation Technologies Delivering Strategic Solutions for the Indian PE Producer

UNIPOL™ PE Technology

Safe, streamlined process design

Largest proven reactor capacities

Lowest investment & operating costs

Broadest product mix in single reactor

Unparalleled catalyst development

Proven record of technology transfer

P t d li D i d t d tSM

Proven to deliver. Designed to adapt.