Developing the future.

Opportunities for Biotechnologies in Brazil

Innovation Seminar, AHK Brazil-Germany

São Paulo, SP - November 2015

Paulo Alvarenga, ThyssenKrupp Brazil

1 Developing the future.

SD2015

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Confidential

The Company in the World

ThyssenKrupp AG

€41,3 billionIn sales turnover

160 thousandemployees

Business Areas

Steel EuropeSteel Europe

Material ServicesMaterial Services

ElevatorTechnologyElevatorTechnology

ComponentsTechnologyComponentsTechnology

Industrial SolutionsIndustrial Solutions

SteelAmericasSteelAmericas

€ 8.9 b€ 13.7 b€ 6.4 b€ 6.2 b € 6.3 b € 2.1 b

FY 2013/14

2 Developing the future.

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ThyssenKrupp is in the List of “Top 50 Smartest Companies” according to

MIT Technology Review

50 Smartest Companies 2015

3 Developing the future.

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High-performance lightweight parts

Excellence in TechnologySome sustainable and intelligent concepts

ACCEL Revolutionary linear motors drive system it accelerates to 2 m/s

MULTI The world’s first rope-free elevator system

The digitaltransformation at ThyssenKrupp

Innovations to automotive efficiency

Valuable Chemicals from CO2, reducing emissions of Steel Making Industry

4 Developing the future.

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FY 2013/14. Descontinued operations not included

Corporate office P&D centers Regional offices Production sites

The Company in BrazilIn figures

> R$ 9 billion sales

12 production sites

68 regional offices

4 R&D centers

>12.000 employees

5 Developing the future.

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Solid Footprint in BrazilPresence in your day-by-day life

1 out of 3 new building, airport or shopping mall in Brazil are

equipped with ThyssenKrupp elevators and escalators

1 out of 2 wind power mills in Brazil are equipped with

ThyssenKrupp components

Every locally manufactured aircraft is equipped with

ThyssenKrupp parts

Doing business since 1837, long term commitment

to Region

9 out of 10 vehicles produced in the region are equipped

with ThyssenKrupp components

Among the 15 largest export companies in Brazil

6 Developing the future.

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Brazil is The Middle East of BiomassBrazil leads the global biomass production with long term growth potential

Middle East vs. world oil market

30% of oil production

47% of oil reserves

Brazilvs. world agriculture market

20% of biomass production

35% of sugarcane (#1)

31% of soybean (#2)

9% of roundwood (#3)

8% of corn (#3)

Biomass production can be expanded 4 to 5 times

at current share of crop land use, excluding Amazon forest

(#_) world production ranking

Brazil

Middle East

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SOURCE: McKinsey - Press search, company websites, expert interviews

for

L+/D-

forms

Ethylene/PE

EO/MEG

1,3-PDO

Lactic acid

Amino acids

Surfactants

PHAGreen

solvents

Acetic acid

Citric acid

Farnesene

Polypropylene

Butanol

Succinic acid

3-HPA

Tianjin Green

Bio-Science

Bio-based

products

Songyuan

Ji'an

Biochem.

Several Big Companies Aiming Bio-based Products MarketProducts from biomass & companies – not exhaustive

8 Developing the future.

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Biotechnology at ThyssenKruppCurrent developments

PBS

BDO Drop-in

Applications

Replacements

for Adipic &

Phthalic

PLA

Acrylic Acid

Performance

Plastics

(Construction,

Automotive)

Biomass feedstock

Succinic Acid

$7.5B market

Lactic Acid

$15B+ market

DDDA

Dodecane-dioic

Acid

Glycolic Acid

PGAC2

C3

C4

C12

Glucose

Sucrose

Ligno-cellulosic

Glycerol

consolidated On development

Biodegradable plastic

3-D Printing

Automotive parts

Solvents

Electrical Equipment

PU foam ( mattress,

car seats

Nylon

Medical applications

Adhesives, coatings

Synthetic rubber

9 Developing the future.

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The Value Chain: Bioprocess DevelopmentCommercial Success Factor: Partnering Along the Value Chain

Unit per unit

Mainly Batch

Combined process

Batch & Continuous

Integrated & Continuous

1 – 5 years 2 – 4 years 2 – 3 years

–

1 L – 200 L 1 m3 – 100 m3 100 – 1000 m3< 1 L

< 500,000 € < 5,000,000 € > 10,000,000 € > 100,000,000 €

Scientists & Process Engineers

Process & Discipline Engineers, Operators

Operators, Merchants, Admin

Scientists

StrainStrain ProcessProcess Pilot / DemoPilot / Demo

FeedstockFeedstockBioprocess

DevelopmentBioprocess

DevelopmentApplication

DevelopmentApplication

DevelopmentChemical

ConversionChemical

Conversion

CommercialCommercial

Project Development

10 Developing the future.

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ThyssenKrupp – Biotechnologies DivisionYour partner for Biotech Process Scale-up and downstream processing

Formed in 2007 and formerly located in Leipzig, Germany

Since August 2012 located within the Leuna Chemical Site

Location

Microbiological Lab

Fermentation Lab

Analytical Lab

Small Pilot Plant (up to 300L)

Multi-Purpose Plant (up to 85.000L)

Infrastructure

11 Developing the future.

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TKIS – Biotechnology DivisionMultiopurpose Biotech Plant in Leuna

Drop-in Chemicals, Platform Chemicals, Monomers for Bio-based Polymers

Application-Oriented R&D and Engineering for Industrial Biotech Processes

Own and Joint Developments with Partners

Commercialization of Technologies to Generate Long-Term Value for Uhde

Further EPC contracting

Value Proposition

The Leuna Multi Purpose Facility can be used as

BioTech Hub to develop and test new processes

under industrial conditions

ThyssenKrupp Uhde can provide Process

Guarantees

Finance allowance for commercial operation

A new model for BioTech Start-up Companies

12 Developing the future.

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The Myriant StoryScale up and Industrial Production of SAC

ThyssenKrupp Biotechnology and

Myriant signed Global Alliance

Agreement in 2009

ThyssenKrupp as Exclusive

Engineering Partner for Myriant

ThyssenKrupp to provide Process

Guarantees on combined Myriant

(upstream) and TK-Uhde

(downstream) Process

Companies have worked closely

together for 3 years to develop a

fully integrated and optimized

process

Myriant Demonstration Plant

Succinic Acid Production

Lake Providence, LA EUA

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o Project MYSAB - commercial operation since Q1-2013

o Site Lake Providence, Louisiana, USA

o Operator Myriant Lake Providence LLC.

o Capacity 15,000 ton/year of SAC

o Feedstock Glucose from Sorghum or Corn

o Technology Fermentation Myriant and Recovery/Purification ThyssenKrupp

The Myriant StoryScale up and Industrial Production of SAC

14 Developing the future.

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Plan to Support the Development and Innovation of Chemical Industry

(PADIQ – Plano de Apoio ao Desenvolvimento e Inovação da Indústria Química)

Opportunities in BrazilBNDES/FINEP focusing investments on renewable chemicals

BRL 2 Billion on refundable and non-refundable resources

Public Notice

Edital de Seleção Pública Conjunta BNDES/FINEP de Apoio ao Desenvolvimento e Inovação da Indústria Química – PADIQ

http://www.finep.gov.br/images/chamadas-publicas/2015/Edital_PADIQ.pdf(*) Planos de negócios dedicados exclusivamente à produção de biocombustíveis não serão contemplados nesta linha temática.

Developing the future.

Thank you!Paulo AlvarengaThyssenKrupp Brasil