Enabling Downstream Sustainability through High Performance Adhesive Innovations

1. Enabling Downstream Sustainability through High Performance Adhesive Innovations Xinyu Du, Ph.D. November 12, 2014

2. ©2014 H.B. Fuller Company Agenda 1.H. B. Fuller’s Long standing Commitment to Sustainability 2.What is our Sustainability Strategy? 3.Enabling Downstream Sustainability through Adhesive Innovations 4.External Partnerships on Sustainability 2

3. ©2014 H.B. Fuller Company H.B. Fuller Today •A leading worldwide manufacturer and marketer of adhesives and other specialty chemicals •2013 sales of $2.05 billion •Publicly traded company listed on NYSE (FUL) •127 years of winning with customers •Clear focus on customer and market opportunities •Enable innovation to improve customers’ products and consumers’ lives •Strong partnerships with customers, suppliers, OEMs •Global reach … Local expertise •Direct presence in 42 countries •Customers in more than 100 geographic markets 3

5. Sustainability Background and Strategy 5

6. ©2014 H.B. Fuller Company • Orginally, adhesive industry was very dependent on sustainable bio materials • Petrochemical feedstocks use began in the mid 1900s • Polymer chemistry developments • Renewed interest in sustainable bio materials • Envirnomental concerns • High energy costs ? Derived from H. B. Fuller Company information Sustainable Materials in Adhesives 6 1887 1950 1975 2005 2014 2020 Estimated % Natural Source Raw Materials ?

7. ©2014 H.B. Fuller Company • 32 billion MT/yr - CO2 emissions from fossil fuels • Estimated to be < 5 % refining/chemicals processing • Estimated to be < 2 % plastics and rubber - substrates • Estimated to be < 0.1% adhesive raw materials 7 Adhesive Materials - Carbon Dioxide Impact Electricity Industrial Transportation Fuel Building heating Relative CO2 emissions Global CO2 emissions Derived from eia.gov data

8. ©2014 H.B. Fuller Company •Ethylene •Propylene •Butadiene •Aromatics •Isoprene •Resin Oils •Waxes •Refined Oils •Methanol 8 1 -2 years Current3 –5 years Supply/Demand Balanced Balanced -Tight Tight ? Petrochemical Feedstock Summary

9. ©2014 H.B. Fuller Company Sustainability Strategies •Derived from 100% renewable “bio” sources / niche with no perceived performance and/or economic difference •Petrochemical drop in: Bio ethylene or isoprene •New materials: PLA •Enabling Downstream Sustainability with “bio” and/or traditional materials •Increase customer efficiency, speed, lower energy consumption and waste •Reduce amount of adhesive, substrate or energy •Reduce environmental impact •Supply stability and cost predictability 9

10. ©2014 H.B. Fuller Company > 1:1 offset on performance Bio- based 1:1 offset Less < 1:1 offset “Green” products Sustainability Strategies 10 Our primary aim is to develop sustainable products with DIFFERENTIAL performance; bio-sourced nature of the products is a nice-to-have vs. must have as long as sustainability goals over the entire value chain are met •Need Larger volumes in current markets •Difficult for suppliers to make 100% “Bio” economically •Slow market penetration •Difficult sell when adhesive is minor component •Can only compete in Niche Applications •New materials with performance advantages •Performance/Cost Balance

11. High Performance Adhesive Innovations Enabling Downstream Sustainability 11

12. ©2014 H.B. Fuller Company Market Needs Ultimately Drive Innovation •Innovation portfolio tied to market trends •Faster curing •Improved safety •Sustainability •Improved mileage and line speeds •Feedstock availability trends •Composite materials •Mechanical fastening elimination •Multi-functionality •Difficult substrates adhesion •Non-traditional trigger cures 12

13. ©2014 H.B. Fuller Company Enabling Total Solutions:Bio Content and Lower Energy Consumption 13 Cool, Sustainable Application Traditional Hot Melt Application Adhesive System •Market innovation: •Adhesive system •Adhesive solution •> 40% renewable raw materials •Up to 60% reduction in adhesive consumption •Up to 75% less energy consumption •Cooler is smarter •Reduce equipment maintenance •Easy clean up •Up to 50% energy use reduction •Cooler is safer •No heated tanks or hoses

14. ©2014 H.B. Fuller Company 14 •New AdvantraTrue™grades contain 40% renewable resources •The first step on the journey to more sustainable hot melt adhesives •Combine premium Advantra® performance with sustainable resources •Bio raw materials not food supply chain sourced •Superior performance profile on wide range of substrates including new coated and lighter or recycled carton grades •Achieve long-term savings with Advantra® technology End of Line Packaging: Bio Content and Performance

15. ©2014 H.B. Fuller Company Enabling New Materials: Traditional Materials with Lower Energy and Higher speeds •Challenge: Films safety and speed •Market innovation: •Safe and faster processing •Adhesive solution: •Solventlesslaminating adhesives •Reactive adhesives through polymer innovation 15 •FlextraFast™ SolventlessLaminating Adhesive •Fast-curing next generation flexible packaging adhesive •Up to 520 meters / min (1700 ft/ min) •Slit in as few as 3 hours •Ship finished goods in as few as 2 days •Lowest energy consumption process –solventlesslamination

16. ©2014 H.B. Fuller Company •Liquid Separation Filter Assembly •Up to 60% renewable content depending on grade •Bio raw materials not food supply chain sourced –sustainability •Enabling clean water •Larger, more efficient filters •Lower energy use filters •Long life filters •Better filtration -safer 16 Enabling Water Purification: Bio Content, Lower Energy, More Efficient, Safer

17. Sustainability Partnerships 17

18. ©2014 H.B. Fuller Company Key Sustainability Partnerships Initiative Description Bio-based polyols Utilizealternative sustainable polyolsas raw materials that have performance advantages Bio-based polymers Bio-basedpolymer(s) for hot melt and reactive adhesives Bio-basedoil Use bio-based (vegetable)oils to replace petroleum based oils in hot melt adhesives Rosin based resins/plasticizers/oils Utilize rosin based raw materials for hot melt adhesives 18

19. 19 Sustainability Bio-Based Technology Platform Initiatives Growth / Maturity Starch based polymers Sustainable polymers (University sponsorships/ memberships) Formulated bio-based packaging adhesive Rosin based resins/plasticizers/oils Terpenebased resins Bio- based oil Bio-based polyols Succinic Acid technology Bio-based tackifiertechnology Life Cycle Analysis Bio-based polyesters

20. ©2014 H.B. Fuller Company In Summary •Key to servicing our industry’s customers is to provide a solution portfolio that encompasses -Enabling more sustainable, faster and leaner processes -Bio and/or Petro sourced RMs meeting the value proposition for market trends -Supply availability / cost predictability •Innovation can and will take multiple routes & will be accelerated through strategic alliances and partnerships across the value chain •Key is performance and added downstream value in sustainable operations 20