Lenzing Group. Lenzing Group. Leading Fiber Innovation. Business Unit Nonwovens Wolfgang Plasser



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Lenzing Group Lenzing Group Leading Fiber Innovation Capital LeadingMarkets Fiber Innovation Day 2012 Business Unit Nonwovens Wolfgang Plasser 1

Supply chain partnership Roll-good producer Converter Private Label or Brand Retailer Consumer 2 Partner in the development of wipes Support in marketing communication with regards to fibers and sustainability claims Lenzing Fiber Experience in Austria or in-house at costumer Regular updates about Lenzing activities via newsletter

Kirkland Signature Babyfeuchttücher Kirkland Signature Babyfeuchttücher: 70 % TENCEL 30 % Lenzing Viscose 3

Nonwovens technologies Worldwide wipes by technology (in volume, 2011) Wetlaid 5% Spunlaid 2% Coform 9% Carded 7% Composite 1% Needlepunch 2% Spunlace 51% 4 Airlaid 23% 74% of all rollgoods for wipes are produced by spunlace or airlaid technology At the converting level, lotion is added and now a wet product is produced Given the high transportation cost of wet wipes, the industry is still present in the main geographies in Europe, Asia and US and is predicted to stay regional. Lenzing Nonwoven is present in both key technologies (staple fibers in spunlace and shortcut in airlaid)

Comparison Airlaid - Spunlace Airlaid Wipes substrate Carded and Spunlaced Pros + Low cost pulp as main raw material + Textile like - soft and flexible + Rougher surface is effective at cleaning + Strong and Durable + Process and cost allows thicker fabrics + Binder free + Pulp is inherently "green" + Wide choice of staple fibers + Suitable for flushable products + Lighter weights possible + Process is flexible Cons - More paper like - Expensive raw materials - Inherently weak (wet strength, in particular) - "Green" products add cost - Binder (or fibers) required for strength - Cost leads to low gsm and lean fabrics - Increasing strength increases stiffness - Thickness/bulk hard to achieve - Limitations at lower weights 5

Global consumer wipe sales by segment, 2012 Personal 22% Baby 40% Home 38% Source: The Future of Global Markets for Nonwoven Wipes to 2017 6

Lenzing fibers absorbent 7 trilobal cross-section SKIN friendly highly absorbent soft & smooth

Nonwovens applications Wipes Sustainable convenience Medical Naturally pure Hygiene Safety in sensitive areas Technical Leading fiber innovation 8

Wipes Baby Care Personal Care Home Care 9

Wipes Segment claims Absorbent Strength in wet state Pure and chlorine free* Low linting Soft Smooth and gentle Integrated Process management Odor free * TCF from the production site in Austria, ECF from all other sites 10

TENCEL vs. PES (Video) 11

Effective lotion management (Animation) 12

Cosmetics - Face mask 13

Medical Segment Protective fabrics Drapes, gowns, masks, sterile wrap Basic woundcare Swabs, gauzes, plaster pads Advanced woundcare Gelling fibre and oxidised cellulose 14

Medical: Segment claims Absolutely pure Highly absorbent Perfectly gentle to the skin Consistent quality 15

Lenzing INNOVATION: Hydrofiber It gels on contact with wound fluid and rapidly absorbs fluid directly into its fibers - water imbibitions is at 1100%. Highly absorbent, useful for medium to heavily exuding Wounds and also good for bleeding wounds. 16

Lenzing INNOVATION: Hydrogels Categories: amorphous, impregnated & sheets Contain 80-95% water Suitable for dry or lightly exuding wounds Have a high water content which creates a moist and cool wound surface, is valuable in burns and painful wounds. An absorption of exudates is poor. 17

Hygiene Segment Feminine Hygiene Tampons Pantyliner 18

Lenzing INNOVATION: TENCEL Biosoft - staple fiber as the solution- oil absorbency New surface treatment Oil absorbent Water repellent 19

TENCEL Biosoft 20

Technical Segment Filtration: automotive (oil) and beverage (wine, beer) Electrical separator papers: capacitor in batteries Carbon precursors: industrial insulation TENCEL in color catcher 21

Lenzing INNOVATION: TENCEL Precursor for carbonization Carbonised TENCEL TENCEL Precursor Fiber 22

Technical segment claims High strength in wet state Circular sub-micron fibrils Food contact approval Low thermal conductivity Filtration 23 Separator papers for batteries and alternative fuel vehicles Carbonization

Ingredient branding benefits and best practice Lenzing Viscose and TENCEL combine functionality with environmental responsibility have the required brand values are recognized amongst consumers, media and the relevant value chain Costco/USA 24 Akachan/Japan Avangard/Russia

Back-up 25

The Fiber Structure of Cellulosics Ultra-Structure of Cellulose fibers Amorphous regions and the voids of cellulose fibers are accessible by water 26

Water distribution in water swollen cellulose fibers Cotton TENCEL Lenzing Viscose The amount and the distribution of water within the fiber structure can vary remarkably from one cellulose fiber type to the other Cotton, TENCEL and Lenzing Viscose show big differences in the amount of absorbed water the distribution of water over the fiber cross section pore size and pore distribution 27

The structure model of TENCEL fibers Skin, app. 100nm dry, can swell widely in water fiber, diameter 10-30 µm Macro-fibril (0,5-1µm) Nano-fibrils (10-100 nm) Micro-fibril (0,1 0,2 µm) A dry TENCEL fiber consists of countless densely packed crystalline nano-fibrils When TENCEL comes in contact with water vapor or liquid water this nano-fibrillar structure will adapt and open countless voids and capillaries Water will be absorbed in the amorphous domains and in the capillaries between the crystalline nano-fibrils Synthetic fibers do not have such an adaptive nano-fibrillar structure 28

Costco Insert 29

Baby wipes - Costco -Taiwan (Feb 2012) 30

Advertising New Costco March 2012 31

Baby Wipe - Akachan Japan 32

Face mask - Feverlet Korea Feverlet Beauty Mask (FBM) 100% TENCEL Promoted by Korean Retailer Charmzone on TV home shopping 4 items http://www.charmzonenc1.co.kr/ eng/brand/feverlet_basic1.html 33

Face mask - BRTC Korea Brand BRTC 100% TENCEL 6 items Retail: ami co ltd www.brtc.co.kr 34

Baby wipes - Wooil - Korea ISoo (Wooil's brand), Showpin (Retailer) The fiber blend is 60/40 Tencel/PES Available since August, 2011 35

Wipes (B2B -industrial) - Korea March 2012 Dry kitchen towel, brand is Teddy Bear 100% Tencel, pearl pattern at 100 gsm. Packing is 10, 20 and 30 pcs per pack. 36

Pantyliners - Yejimiin - Korea TENCEL liner In the market since Feb, 2011 www.tencel-in-hygiene.kr 37

Multi Layer structure of hygiene products 38

Sanitary Pad Yejimiin - Korea Yejimiin, 100% TENCEL Top Sheet for sanitary pad; Korea 100% TENCEL has been adopted to replace the Bamboo top sheet of Yejimiin s non-oriental herb type sanitary pad. Design is emphasizing the raw material of TENCEL, eucalyptus. Co-branded. The new product is available in the Korea market end Feb/2012. Retail. Emart 39

Yejimiin - Korea Package 40

Yejimiin - Korea 41

Pamperino Avangard - Russia March 2012 42

Wipes - Sandler Bio-Textile Germany Sandler Bio-Textile: 100 % Lenzing Viscose PEFC certified 43

Baby wipes Müller - Germany 44