TOWARDS SUSTAINABLE AND INTELLIGENT BIOECONOMY

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TOWARDS SUSTAINABLE AND INTELLIGENTBIOECONOMYNella Baerents,Global Sustainability Policy Director

Company overview - What Do We Make?Our SBC polymers are a class ofthermoplastic elastomers, which is aplastic material that behaves likerubber, delivering both strength andelasticity.Our biobased pine chemistry enablesnumerous industries to replace nonrenewable resources with highperformance, sustainablealternatives.2

Innovation Our innovation process is driven by inside-outand outside-in approaches Develop breakthrough technologies Joint development programs Mega trends focus Invested 40.7 million in R&D in 2017 210 R&D scientists, engineers and staffmembers worldwide3

Market Leader in Pine ChemicalsCompetitive positions:#1 processor of pine chemicals in the world#1 global producer of Rosins, TOFA and derivativesBroad product portfolio#1 global supplier of pine-based tackifiers#1 global supplier of pine-based pavement markersLeading global supplier of high performance treadenhancement resinsOur biobased products provide renewable and sustainablesolutionsBiobased product certification provides transparency andcredibilityStrong relationships with key raw material suppliersProviding logistic support, recovery engineeringexpertise, enhancing pulp mill yield and operatingefficiency4

Sustainability – addressing Global Challenges5

How We Create Value6

Our Important Sustainability TopicsUPSTREAMIncreasing ResponsibleProcurementOUR OPERATIONSSustainable GovernanceCarbon EmissionsEnergy IntensityWaste ManagementSpills ManagementWater ConsumptionHealth & SafetyCommunity EngagementDOWNSTREAMProduct sustainabilityProduct safety7

Our Sustainability AmbitionsBased on where Kraton is today, we establishedtwo long-term sustainability ambitions: Conduct 12 Life Cycle Assessments (LCA) by2020 Achieve 25 percent reduction inGreenhouse Gas (GHG) emissionsby 2030.8

Intelligent bioeconomy9

Tall oil – useful bioeconomy raw materialSmart, efficient and sustainable use of a scarce resource in biobasedchemicals is highlighted throughout the forest industry value chain.The renewable tall oil is transformed into innovative high value adding products.

Refining tall oil is intelligent bioeconomy

CTO based chemicals - Remarkable value to societyTall oil used for biobased chemicals generates more economic value, jobs and CO2 savings*Economic impactTotal job impact4x more20xEnvironmentalimpactTall oil in biobasedchemical industryeconomic value650,000 MTAnnual availability ofin EuropeCTOmore jobs25%savings inCO2 emissionsBiobased chemicals are the most resource efficient useof the limited raw materialBiobased chemicals use: 10,000 jobs & 1.8 billion annuallywithout state supportSource: Data from Fraunhofer UMSICHT –EU CTO Added Value Study (2016)*Compared to biofuel use

What is needed for smart and sustainable bioeconomy? A level playing fieldfor all bio-basedindustries Higher added valueuse of raw materials Sustainableproduction Innovation

Legal DisclaimerKraton Corporation and all of its affiliates, including Kraton Chemical, believe the information set forth herein tobe true and accurate, but any recommendations, presentations, statements or suggestions that may be made arewithout any warranty or guarantee whatsoever, and shall establish no legal duty on the part of any Kratonaffiliated entity. The legal responsibilities of any Kraton affiliate with respect to the products describedherein are limited to those set forth in Kraton’s Conditions of Sale or any effective sales contract. NOTE TOUSER: by ordering/receiving Kraton product you accept the Kraton Conditions of Sale applicable in theregion. All other terms are rejected. Kraton does not warrant that the products described herein aresuitable for any particular uses, including, without limitation, cosmetics and/or medical uses. Persons usingthe products must rely on their own independent technical and legal judgment, and must conduct their ownstudies, registrations, and other related activities, to establish the safety and efficacy of their end productsincorporating any Kraton products for any application. Nothing set forth herein shall be construed as arecommendation to use any Kraton product in any specific application or in conflict with any existing patentrights. Kraton reserves the right to withdraw any product from commercial availability and to make any changesto any existing commercial or developmental product. Kraton expressly disclaims, on behalf of all Kratonaffiliates, any and all liability for any damages or injuries arising out of any activities relating to the use ofany information set forth in this publication, or the use of any Kraton products.Kraton maintains a Cosmetics, Drugs and Medical Device Policy that restricts the use of Kraton’s Products incertain end use applications without Kraton’s prior written consent. Accordingly, Kraton does not guarantee thatKraton’s products will be available for use in all potential end use applications. Kraton’s Cosmetics, Drugs andMedical Device Policy is available on Kraton’s website at www.kraton.com.*KRATON, the Kraton logo, SYLVAROAD, SYLVALITE, SYLVATRAXX, SYLVARES, SYLVATAL, SYLVAROS, AQUATAC, SYLFAT,UNIDYME and Cariflex are either trademarks or registered trademarks of Kraton Corporation, or its subsidiariesor affiliates, in one or more, but not all countries. 2018 Kraton Corporation14

pinechemicals.org

Our SBC polymers are a class of thermoplastic elastomers, which is a plastic material that behaves like . Data from Fraunhofer UMSICHT – . *Compared to biofuel use. What is needed for smart and sustainable bioeconomy? A level playing field for all bio-based industries Higher added value use of raw materials Sustainable production

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