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SEPTEMBER2 0 1 8

Lapol Disposable Food Service PackagingFrom the Earth Back to Earth

Food Service Disposables in ChinaEnvironmental Food Service Packaging is Growing

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In 2016, China consumed about 12

billion disposable food containers.

Only 3 billion met environmental

protection standards.

The growing green consciousness will

drive a huge demand for environment

friendly products in the future.

Food Service Disposables Competitive Factors

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Low cost

Biodegradable and Bio-BasedThermal stabilityMechanical strengthWater/grease resistance

Plastic TypesBio-based or Oil-Based? Biodegradable or non-biodegradable?

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Traditional Disposable Food Service Packaging Options

POLYPROPYLENE EXPANDED POLYSTYRENE

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• Non-biodegradable• Oil-based (Not bio-based)

• Non-renewable resources• Large carbon footprint

What are Bio-based Plastics?

• Biobased plastics are made from renewable materials like corn, sugarcane and cassava and are converted to resins like poly lactic acid (PLA).

•Some biodegradable plastics are not biobased.

• Biobased plastics can be injection molded or thermoformed from sheets.

• They have a reduced carbon footprint compared to oil-based plastics.

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Food Service Disposables in ChinaBiodegradable and Non-Biodegradable

NON-BIODEGRADABLE CONTAINERS

Polystyrene containers

Polypropylene containers

Polyethylene containers

BIODEGRADABLE CONTAINERS

Poly lactic acid containers

Plant fiber containers

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PARTIALLY BIODEGRADABLE CONTAINERS

PP/PE Starch containers

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Understanding Bio-Terminologies

Degradable

• Able to be broken down into smaller pieces by grinding, with sunlight to be “photodegradable” or by oxidation or “oxo-degradable”. These methods make the bulk of the plastic smaller, but the container is still there; it just gets smaller.

Biodegradable

• Able be broken down by micro-organisms and digested so the carbon chains are broken apart and processed by, and become part of organic living things. They become part of the carbon cycle of the ecology of the earth.

Compostable

• Able to biodegrade within specific conditions. The European EN 13432 and American ASTM D6400 standards require 90% CO2 evolution within 180 days, less than 10% retained on a 2 mm sieve and no negative impact on plants and animals.

Compostable is the Highest Standard!

Biodegradable Resin After 80 DaysAccording to ASTM D6400 and EN 13432 internationally recognized standards

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Comparative Carbon FootprintAmong Disposable Food Service Plastics

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Emissions from the production of common polymers(kg/CO2 equivalent per kg of polymer – cradle to gate)

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2.2

1.7

1.7

2

2.2

5

0 1 2 3 4 5 6

* LAPOL PLA TARGET

PLA TODAY

LDPE

PP

PET

PS

PC

Source: Int. Journal Life Cycle Assessment, “LCA of the manufacture of lactide and PLA” 3 AUG 2010. PLA target is under development at Lapol R&D.

What Are Your Food Service Disposable Packaging Priorities?

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Product Performance

Affordability

Biodegradability

Renewability & SustainabilityOil or Bio-based

Carbon Footprint

Recyclability

Lapol BioplasticsDesigned to meet the priorities of its end users:

1. Environmentala) Biobasedb) Biodegradable

2. Fully functionala) Heat

resistanceb) Grease

resistancec) Sturdy

3. Cost effectivea) Engineered

for lower costs

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The Lapol Triangle of Bioplastic Design Priorities

Cost Effective

Designed with the

Environment in Mind

High Performing

Lapol PLA ContainersThe Next Generation of Disposable Food Service Packaging

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Biodegradable

Renewable and

Sustainable

Sturdy

High QualityCost Competitive

Grease Resistant

Thermal Resistant

The Lapol HDT-P High Heat Resistance Bioplastics Designed for strength at higher temperatures

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0

500

1000

1500

2000

2500

3000

3500

30 80 130 180

Dim

ensio

n C

hang

e (µ

m)

Temperature (oC)

Lapol HDT-P Heat Resistant Bioplastics

Standard PLA

20% LAPOL HDT-P

10% LAPOL HDT-P

Lapol’s Superior Strength and Toughness Properties Enable Thinner Walls

WALL THICKNESS COMPARISON

40% Thinner

Container

Wall Thickness

LAPOL FORMULATED RESINS

Stronger Resin

Thinner Walls

Lower Costs

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Traditional Polypropylene

Lapol Formulated Resin

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Mechanical Properties Comparison of Lapol and

Common Plastics

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10

100

1000

10000

100000

Flex ModulusMPa

Tensile ModulusMPa

Tensile StrengthMPaElongation %

Heat DistortionTemp (oC)

PP

LDPE

Lapol

Starch LDPE

Bagasse Fiber

EPS Foam

Property PP LDPE Lapol Starch LDPE Bagasse Fiber EPS FoamFlex Modulus MPa 2000 250 4600 200 17000 22.5Tensile Modulus MPa 1137 285 1560 140 222 3Tensile Strength MPa 26 10 60 3.5 290 48.4Elongation % 600 400 10 15 1.1 8.45Heat Distortion Temp (oC) 100 50 100 100 100 95Cost per tonne $1,800 $2,000 $2,650 $2,700 $2,400 $2,300Cost per Unit $0.07 $0.08 $0.09 $0.05 $0.07 $0.02

Sheet1

PropertyPPLDPELapol Starch LDPEBagasse FiberEPS FoamHDPE

Flex Modulus MPa200025046002001700022.5http://www.matweb.com/search/datasheettext.aspx?matguid=5f099f2b5eeb41cba804ca0bc64fa62f1250

Tensile Modulus MPa113728515601402223http://www.northwestfoam.com/fact-specs.htm1100

Tensile Strength MPa2610603.529048.4http://iopscience.iop.org/article/10.1088/1757-899X/226/1/012157/pdf32

Elongation %60040010151.18.45150

Heat Distortion Temp (oC)1005010010010095http://eprints.utm.my/3569/1/HusnaZahiraBK030063d07TTT.pdf75

Cost per tonne$1,800$2,000$2,650$2,700$2,400$2,300

Cost per Unit$0.07$0.08$0.09$0.05$0.07$0.02

PPFlex Modulus MPaTensile Modulus MPaTensile Strength MPaElongation %Heat Distortion Temp (oC)2000113726600100LDPEFlex Modulus MPaTensile Modulus MPaTensile Strength MPaElongation %Heat Distortion Temp (oC)2502851040050Lapol Flex Modulus MPaTensile Modulus MPaTensile Strength MPaElongation %Heat Distortion Temp (oC)460015606010100Starch LDPEFlex Modulus MPaTensile Modulus MPaTensile Strength MPaElongation %Heat Distortion Temp (oC)2001403.515100Bagasse FiberFlex Modulus MPaTensile Modulus MPaTensile Strength MPaElongation %Heat Distortion Temp (oC)170002222901.1000000000000001100EPS FoamFlex Modulus MPaTensile Modulus MPaTensile Strength MPaElongation %Heat Distortion Temp (oC)22.5348.48.449999999999999395

Lapol: The Future of Sustainable Packaging

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Bio-basedBiodegradable

& Compostable

ASTM D6400 & EN 13432 Compliant

Thermal & Grease

resistantSturdy

Cost Competitive

with Standard Plastics

Lapol, LLC3757 State Street | Suite 2A | Santa Barbara, CA | 93105 | USA | 1.805.456.7950www.lapol.net

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Appendix

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Competitive Product Comparison

Intellectual Property

Food Service Disposable Packaging Options Compared

POSITIVE FEATURES

o Good thermal performance

o Good grease resistance

o Low cost

o Not Biodegradable

o Not biobased (not renewable or sustainable)

o Not sturdy, but functional

o High carbon footprint

EXPANDED POLYSTYRENE FOAM

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NEGATIVE FEATURES

Food Service Disposable Packaging Options Compared

o Good thermal performance

o Good grease resistance

o Moderate cost

o Sturdy

o Not Biodegradable

o Not biobased (not renewable or sustainable)

o High carbon footprint

POLYPROPYLENE

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POSITIVE FEATURES

NEGATIVE FEATURES

Food Service Disposable Packaging Options Compared

o Biodegradableo Bio-based (renewable and

sustainable)

o Low cost

o Recyclable

o Low quality

o Poor performance, not sturdyo Poor grease resistance

PLANT FIBER PACKAGING

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NEGATIVE FEATURES

POSITIVE FEATURES

Food Service Disposable Packaging Options Compared

o Partially Biodegradableo Partially Bio-based

(renewable and sustainable)

o Low cost

o Good quality

o Diverts a food source

o Not fully biodegradableo Not fully bio-based

o High carbon footprint

STARCH POLYPROPYLENE

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NEGATIVE FEATURES

POSITIVE FEATURES

Lapol’s Patented Bioplastics TechnologyIntellectual Property

POLYMER TOUGHNESS HIGH TEMPERATURE RESISTANCE

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Slide Number 1Food Service Disposables in China�Environmental Food Service Packaging is GrowingFood Service Disposables �Competitive FactorsPlastic Types�Bio-based or Oil-Based? Biodegradable or non-biodegradable?Traditional Disposable Food Service Packaging Options���What are Bio-based Plastics?�Food Service Disposables in China�Biodegradable and Non-BiodegradableSlide Number 8Biodegradable Resin After 80 DaysComparative Carbon Footprint�Among Disposable Food Service PlasticsWhat Are Your Food Service Disposable Packaging Priorities?Lapol BioplasticsLapol PLA Containers�The Next Generation of Disposable Food Service Packaging����The Lapol HDT-P High Heat Resistance Bioplastics Designed for strength at higher temperatures�Slide Number 15Lapol’s Superior Strength and Toughness Properties Enable Thinner Walls Slide Number 17�Lapol: The Future of Sustainable Packaging�����Lapol, LLC�3757 State Street | Suite 2A | Santa Barbara, CA | 93105 | USA | 1.805.456.7950��AppendixFood Service Disposable Packaging Options ComparedFood Service Disposable Packaging Options ComparedFood Service Disposable Packaging Options ComparedFood Service Disposable Packaging Options ComparedLapol’s Patented Bioplastics Technology�Intellectual Property