Dedicated to buildinga model of sustainable

chemistryGembloux,23/10/2015

30000

We are a world leader in the chemical industry

employees

119industrial sites

15major

R&I centers

52countries

€ 10,213million of net sales

€ 1,783million of REBITDA

We adapt our productoffering to demandingmarkets

CONSUMER GOODS &

HEALTHCARE

ELECTRICAL & ELECTRONICS

BUILDING & CONSTRUCTION

AUTOMOTIVE & AERONAUTICS

INDUSTRIAL APPLICATIONS

ENERGY & ENVIRONMENT

AGRO, FEED & FOOD

16%

10%

11%

18%

12%

7%

26%

Distribution of 2014 net sales

Differentiation

Regulation

Sustainable

development

FunctionalPolymers

Four Operating Segments

Advanced

Formulations

Advanced Materials

Performance Chemicals

5

6 R&I areas to meet the challenges of the future :

Expertise in polymers and formulations

Advanced materials

Developing alternatives to fossil fuel

consumption: new generation batteries,

photovoltaics, bio-energy

Sustainable energy

Materials to improve the sustainability of

lighting devices and screens

Organic electronics

New processes offering diminished raw

materials and energy consumption, and

reduced emissions

Eco-designed processes

Innovation in renewable or recycled raw

materials

Renewable chemistry

Creating responsible products that provide

solutions to global issues

Advanced formulations

Our business activities :

Soda Ash & Derivatives

Peroxides

Acetow

Emerging Biochemicals

Performance Chemicals

Polyamide & Intermediates

EngineeringPlastics

Fibras

FunctionalPolymers

Novecare

Coatis

AromaPerformance

Advanced Formulations

Specialty PolymersSilica

Rare Earth SystemsSpecial Chemicals

Advanced Materials

Corporate& Business

Services

Energy ServicesBusiness Services

C Raw MaterialsStakes: Sustainability, Cost, Availability, Low Carbon Footprint

CO2

recycling

6CO2 + 12H2O → C6H12O6 + 6H2O + 6O2Calvin Benson cycle

solar lightU Kentucky

7

Bio-based : renewableFossil : limited

Future growth based on parallel development• Economic bio-based chemistry• Optimized use of fossil resources

C Raw MaterialsBio-based parallel to Fossil for Diversified C Source

• 7 major basic intermediates represent 75 % of C flow

• only a few biobased intermediates economically sustainable today

• use of residues and optimization of productivity will lead to sustainable intermediates

• value chain collaboration necessary

• long term LCA mandatory

8

ethylene100

propylene67

benzene43

tol/xyl 22

butadiene11

methanol18

Volumes Mt CUIC 2010

A Group Engaged in Chemistry of Several Plant Feedstocks

eucalyptus spruce pine

coconut palm soybean rapeseed peanut

corn rice

castor bean

guarsugarcane

fatty

acids sugarsglucose polymers

wheat

glycerol

9

Lignocellulosic Plants

Oleaginous Plants

Amylaceous, Sacchariferous Plants

RELY ON DIVERSIFIED BIO – BASED RAW MATERIALS :

Sourcing from different geographical origins :

The oil reserves :Sourcing from different geographical origins :

A Group Engaged in Chemistry from Biomass

for Growing Applications

plastics

for food packaging

solvents, monomers

for inks, paints, coatings

soaps, surfactants

for shampoos and body wash

resins

for windmills

additives

for crop protection

Solvents - Monomers - FragrancesAugeo® Epicerol® Sipomer® Rhovanil® Rhodiantal®

SurfactantsMirataine® Alkamuls® Miranol® Rhodasurf® Rhodameen® Rhodapex® Geropon®

PolymersPGLC Acetol Accoya® Ocalio™ Technyl®eXten Kalix®

Jaguar® Tiguar® Rhodicare® Rhodopol® Rheozan® Rheomer®

Natural Molecules and PolymersNumerous Applications for Solvay

12

Biobased FeedstocksLead to New Products for Many Markets

Rheomer® 33gelifier for shampoos

from pine terpene

Augeo Film HB solvent from soybean for architectural paints

Rhodapex® ESB-70 NATemulsifier for shampoos

from palm kernel and sugar cane

plasticfrom wood

for packaging,spectacle frames,etc

Kalix® 3000high performance polyamide

from castor oilfor electronics

epichlorhydrin monomerfrom rapeseed ‘(glycerol)

for structural resins

Jaguar® C500conditioner for shampoos

from guar bean

13

Main Challenges of bio-based chemistry ?

Increasing complexity :

- Competitiveness of biobased raw materials versus present and new C-sources ?

- The ability to define new competitive chemical schemes more specific to biobasedmolecules?

- Breakthrough economic potential of biorefineries, which would integrate severalbusinesses?

- Suitability of biobased raw materials for designing final products with differentiatedproperties and market

- Can biotechnologies revolutionise the commodity/specialties chemical production, from raw materials to end products?

The 3 levers of Renewable Based Chemistry ?

IMPROVE COMPETITIVENESS

Using Glycerol instead of Propylen (epichlorhydrine)N-Butanol Bagasse-based

NEW FUNCTIONS AND PROPERTIES

sebacic acid for polyamides productionGuar based rheological agent for cosmeticsSurfactant based on pine derivatives

VALORISATION OF BIO –ATTRIBUTES

Natural vanillinglycerol based solvents for paints and coatings

Need for open innovation and partnerships:

- ACADEMIC PARTNERSHIPS : link between fundamental and applied research- Joint teams with CNRS in France and in China- Open to new partnerships with academic partners dedicated to bio-based

chemistry- Partnership with the National Bioethanol Science and Technology

Laboratory (CTBE) in Brazil.

- Exploratory partnerships : start-ups , venture capital funds- Investments in VC funds , like Capricorn Cleantech (B) , Sofinnova and Aster

(F) , financing start-ups in the fields of bio-based chemistry or biotechs.

- Partnerships with key stakeholders (customers, suppliers) :- JV in India on guar gum with MP Birla Group- JV with GranBio in Brazil for the production of n-Butanol - Agreement with AKZO NOBEL in the field of renewable raw materials for

paints and coatings

Active in the value chain:

- France : IAR – AXELERA - XYLOFUTUR- Belgium : GREENWIN – FISCH

- France : connected to several initiatives PIVERT – IDEEL – TWB

- Europe : - connected to Bio-Based Industries Consortium- MEMBER OF SUSCHEM (EU Sustainable Chemistry Platform)- MEMBER OF SPIRE (PPP focused on sustainable processes)

- France : founding member of ACDV – Chimie du Végétal- Europe : member of EuropaBio

CONCLUSION:

The chemical industry strongly needs the bio-basedvalue chain :

• As a tool for reaching its targets in term of challenges of the future , as well economic and societal as environmental.

• There is a need for balancing the use of bio-basedraw materials with an optimization of C-fossilresources

• Open Innovation is the key