Segetis Renewable Formulation Ingredients for Personal Care 3 rd - PowerPoint PPT Presentation

Segetis Renewable Formulation Ingredients for Personal Care 3 rd Safer Consumer Products Summit Pre-Summit Workshop: Personal Care Products & Cosmetics September 17, 2013

Renew.Reinvent.Sustain.Change the World TM Renew We believe that biobased materials are viable alternatives to petrochemicals Reinvent Our disruptive technology will turn Levulinic Acid’s potential as a Biobased Building Block into reality Change the World Sustain Supporting sustainable lifestyles with high performance materials that reduce toxicity, air, and environmental impact 2

Who is Segetis? • Green and Rapidly Growing VC ‐ funded Specialty Chemistry Company – Founded in 2006 in MN, USA on the notion of developing Levulinic Acid (LA) and further converting into levulinic ketals as platform materials – Delivering new to the world materials, not green routes to existing molecules O O O O OH HO HO OH HO OH O NH 2 succinic acid 3-hydroxypropionic acid glutamic acid O HO O HO OH HO OH OH O O NH 2 glycerol 4-hydroxybutyrolactone aspartic acid O O O O OH OH O HO HO OH O O itaconic acid levulinic acid 2,5-furandicacboxylic acid O OH OH OH OH OH OH OH OH HO OH OH OH O OH OH OH OH OH xylitol glucaric acid sorbitol Top 12 US DOE renewable chemicals 3

Segetis: Partnering Across the LA Value Chain Levulinic Acid Specialty, Renewable Cellulosic Biomass (LA) Ingredients Sugar • Bio ‐ based building block • Renewable feedstocks • Isolated, high ‐ purity product for a >$80 B markets • Diverse feedstocks • Thermochemical conversion 4

Segetis’ Breakthrough in Levulinic Acid Technology: Clean, High ‐ Yield Process • Despite high level of interest, no large ‐ scale, cost ‐ Before: Incumbent Process Now: Segetis Process effective, clean LA production exists today • Segetis has developed a patented, scalable process for cost ‐ effective LA production – High utilization of biomass inputs – Reduced waste Char easily rinses Char coats equipment – Multiple sugar sources for feedstock flexibility >80% yield Inoperable <<50% yield – Demonstrated, economical process Cleanest, most economical Levulinic Acid process Cleanest, most economical Levulinic Acid process 5

What We Do: Specialty Chemicals from Sustainable Feedstocks From lab scale to commercial sales in 4 years O OR 1 O O R 2 Family of Products • Green products competing on performance • Markets open to change • Renewable feedstocks • Diverse feedstocks 6

Enhanced Sustainability Profile 3 rd Party LCA modeled “field to product” by Boustead Consulting Ltd In comparison to petro ‐ based alternatives: 1. Save 2 gallons of gasoline per gallon of Segetis product 2. Save 7 tons of CO 2 ‐ equivalents per ton of Segetis product Calculated on a mixed product portfolio 7

Why we are here today Suncare Color Skincare cosmetics Makeup Nail Care Removers Hair Care 8

Broad Solubility Soluble with what Soluble with what Oil % SG1100D? % SG1200D Stearyl alcohol* 50 50 Stearic acid* 50 50 • Compatible with many Castor oil 50 50 personal care ingredients Beeswax* 50 50 • Can be used in any type of C12-15 alkyl benzoate 50 50 Isopropyl myristate 50 50 formulation Isopropyl palmitate 50 50 Caprylic/capric triglyceride 50 50 Mineral oil -- 50 Octyl methoxycinnamate 50 50 Segetis solvents can be used in aqueous, Cyclomethicone -- 50 alcoholic, or oil phases Avocado oil 10 50 Soluble Soluble Ingredient with with Sunflower oil 10 50 SG1100D SG1200D Almond oil 10 50 Ethanol Y Y Isopropanol Y Y Squalene -- 50 Water Y N Isododecane -- 50 Hydroalcohol Y Y Caprylyl methicone -- 50 9

Key Functions Dissolves a wide range of ingredients Brings difficult ingredients into Physical Characteristics formulations • Low volatility • Clear Broad compatibility • Low viscosity • Compatible with water, hydroalcohol solutions, alcohols, and oils Compatibilizes materials Light, dry emolliency 10

Trouble ‐ shooting ingredients UV actives Anti ‐ aging Oils & actives greases Dissolve and Disperse Pigments Polymers 11

Brings Difficult Ingredients into Formulations Demonstrated Demonstrated Solute Solubility in Solubility in Dissolves crystalline actives & polymers SG1100D (wt %) SG1200D (wt %) High solubility limit Avobenzone 20-25 30-40 Broad substitution range Oxybenzone 20-25 30-35 Parabens 15-20 Not tested Coenyzme Q10 -- 20-22 • Increased active loading • Simplified formulation Retinoic acid -- ~1 • Simplified raw material inventory Salicylic acid 15-20 11-14 DEET 50 50 Wt. % in Wt. % in Polymer SG1100D SG1200D Nitrocellulose Y Y cellulose acetate 14 ≥ 25 butyrate acrylate/octylacrylamide ~5 ~1 copolymer PMMA 1 >10 12

Surfactant ‐ free, naturally ‐ derived makeup remover # Phase Trade Name Wt. % 1 A SG1200D 29.8 2 A SG1100D 29.8 PROPANEDIOL 39.8 3 A PARABEN DU * 0.6 4 A TOTAL 100 *preservative system is synthetic Removes waterproof mascara more easily than commercial makeup remover products 13

Versatile matchmaker Expands Expands solubility solubility range of range of ethanol water Compatibilizes and Carries Brings water into anhydrous systems 14

Compatibilizes Ingredients with Alcohols Example: avobenzone in alcohol Expands solubility range in ethanol while maintaining clarity 15

Actives more tolerant to water with SG1100D than with ethanol SG1100D ethanol 16

Lipstick with water (in stick form) Add 10% water to a lipstick form with no sweating 17

Opportunities to use Segetis ingredients •Single formulation ingredient to replace •Single formulation ingredient to replace many specialized ingredients many specialized ingredients •Troubleshooting ingredient that allows •Troubleshooting ingredient that allows formulators to expand the range of actives & formulators to expand the range of actives & increase actives concentration increase actives concentration •Robust formulation latitude •Robust formulation latitude •Compatible with many starting formulations •Compatible with many starting formulations •Incorporates water into anhydrous systems •Incorporates water into anhydrous systems •Surfactant ‐ free solubilization •Surfactant ‐ free solubilization •Expands solubility of ethanol, w/ clarity •Expands solubility of ethanol, w/ clarity •Compliment to natural formulations to •Compliment to natural formulations to reduce greasiness reduce greasiness •Dry, silky after ‐ feel •Dry, silky after ‐ feel 18

Market Status • Feedback has been very positive – Segetis’ products bring a very important toolset to formulators – Renewable concept gets traction • Segetis (and other small renewable chemical companies) need to navigate: – EU Cosmetic Directive and resistance to animal testing make new innovations difficult • Global formulation houses tend to formulate globally  new ingredient registrations • Cannot exceed 1 T in Europe without REACH registration (animal testing required), which conflicts with – EU cosmetic directive (although recent guidance provides some clarity) Advantage to existing ingredients – Consumer desire for safe cosmetics with no animal testing – Fragmented market = high cost to serve • Many small formulation houses • Decision ‐ making is formula by formula – Specialized formulation know ‐ how needed • Awareness of specific formulation challenges • Understanding of tradeoff balance, other options Key to success: Strong Partnerships

THANK YOU Dorie Yontz: 763-795-7257, dorie_yontz@segetis.com 20