NASDAQ: PENX

2014 BIO Pacific Rim Summit:

Advancements in Renewable Chemical Manufacturing and Commercialization

Not your Grandparent’s

Starch: Advancements

in Starch Derived

Renewable Chemicals

Greg KeenanVice President, Business Development

gkeenan@penford.com

Phone: 319-398-3754

Nature. Science. Solutions.® 2

Not Your Grandparents Starch....

Penford Corporation

Improving food, health, and sustainability

Penford’s products are in the foods you eat and the products you use every day

Gluten free

Dietary fiber

Fat replacement

Texture enhancer

Animal nutrition

Marinades

Coatings

Plastics

Adhesives

Building materials

Personal care

Energy

Food Bioproducts

• Improve health and wellness

• Make foods taste better

• Give more gluten-free choices

• Create better health for pets

• Create better performing products

• Improve sustainability

• Use locally grown feedstocks

• Reduce dependence on oil

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Operating Footprint

Plants

Cedar Rapids, IA

Idaho Falls, ID

Richland, WA

Plover, WI

Berwick, PA

North Charleston, SC

R&D

Centennial, CO

Cedar Rapids, IA

Tucson, AZ

6 Plants strategically located near sources of raw materials/customers, each with multiple finished product capabilities

3 R&D Centers of Excellence with pilot facilities capable of commercial production

Nature. Science. Solutions.® 5

Starch: Beyond a Filler

Native Starch

Starch is modified physically,

enzymatically or chemically to

tailor functionality.

Feedstock

Granular Starch

BiopolymerPlant Source Size (Microns)

Average (Microns)

Dent Corn 5-30 25 Waxy Corn 5-25 15 Potato 15-150 100 Rice 1-5 2 Tapioca 5-35 20

Starch is converted to drop-in

monomers or new polymers

Unmodified starch in granular

form providing limited function.

Cost, Function,

Value

Nature. Science. Solutions.® 6

Corn Biorefinery: Feed, Food, Fuel & Bioproducts

Dent

Waxy

High Amylose

Food Ingredients

Industrial Ingredients

Starch Conversion

and Modification

Physical

Chemical

Enzymatic

Wet Milling and

Starch Separation

• Starch: 70%

• Protein: 10%

• Fiber: 10%

• Oil: 4%

Feed Fiber/Protein

Corn OilModifications

create higher value

molecules and

functionalities:

rheology, charge,

thickening, tack,

hydrophobic, film

forming, texture,

hydrophilic, texture,

etc.

Nature. Science. Solutions.® 7

Corn Biorefinery: US Wet Milling Output

Dent

Waxy

High Amylose

Starch Conversion

and Modification

Physical

Chemical

Enzymatic

Wet Milling and

Starch Separation

Feed Fiber/Protein

Corn Oil

In 2013 the wet milling

industry ground 1.5

billion bushels of corn*:

US corn crop was 14

billion bushels in 2013.

*Corn Refiners Association 2014 Corn Annual.

http://www.corn.org/publications/annual-reports/

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Penford Technology Platforms

Performance Biopolymers

Tailored charged products

Personal care polymers, water treatment, oil field

applications

Biobased Latex

Film forming / coating products

Coatings, adhesives

Natural / Synthetic Composites

Hybrid products for functionality

Oil & gas, adhesives, barrier coatings, bioplastics

Encapsulation

Encapsulation of actives for delivery and release

Oil & gas, adhesives, agriculture, household &

personal care

Nature. Science. Solutions.® 9

Increasing Biobased Content in Latex Applications

26 billion pounds of petroleum derived latex are used every year*

*Freedonia

Penford has developed a novel

biopolymer that improves the

performance, economics and

sustainability of latex coatings

and adhesives

Penford’s biobased latex

can reduce petroleum

content by more

than 50% in many

applications

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Case Study: Latex Extension

*Freedonia

Paper and Board Coatings

Function: Bind pigment &

substrate, strength, gloss,

printability

> 4 B lbs of synthetic latex.*

Styrene-Butadiene (SB) - 65%

Acrylics- 20%

Vinyl Acetate - 7%

Other – 8%

Typical Board Coating Formula

12 # coating/3000 ft2

Components:

86.5% Pigment (Carbonate)

12.5% Binder

0.4% Lubricant

0.2% Thickener

0.2% Dispersant

0.2% Cross Linker

Nature. Science. Solutions.® 11

Latex Extension with Modified Starch Biopolymers

Penford developed a line of natural binders

(Pen-cote®) to complement synthetic latex.

Reduce synthetic latex and build better

coatings.

High solids (> 50%).

1:1 substitution as high as 60%.

Eliminate or reduce thickeners.

Reduce cost and volatility of raw materials.

Renewable and no VOC’s

Latex Pen-cote

Solids 50% 50%

Cost: delivered, dry basis ≥$1.10/lb* < $1.00/lb

Thickener Required Reduced

Rheology modifier No Yes

Water-holding agent No Yes

Develop coating structure Neutral Improved

Impact on glueability Standard Positive

*Paperchem Report, November 2014

Nature. Science. Solutions.® 12

Nature. Science. Solutions.® 13

Deposition and Conditioning Market

Personal care industry is

incorporating more naturally

derived conditioning products in

their formulations.

Silicone free conditioning and

multi-functional products are

emerging trends.

Emerging concern with products

that have been ethoxylated.

Guar volatility and formulation

challenges has formulators

searching for alternatives.

Personal Care Deposition and Conditioning is a $1 Billion Global Market*

PQ-10 and Cationic Guar are the

dominant biobased ingredients in

deposition and conditioning:

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PenCare DP

Applications:

Rinse off: Shampoos, conditioners,

body washes

Leave on: Lotions, styling products,

conditioners

Resonates with Consumers

Non-GMO

Not ethoxylated

Boron free

Not animal tested

No preservatives

Combination of cationic charge and patent pending biopolymer provides

superior deposition and enhanced conditioning.

O

O

CH2 OH

OH

OH

O

O

CH2 OH

O

OH

O

O

CH2 OH

OH

OH

N

CH3CH3

H3C

HO

Cl

m n

1

23

4

5

6

Structure

BASF: Polymers and active ingredients suitable for the

development of shampoo formulations, 2003

Nature. Science. Solutions.® 15

Performance vs. Industry Standards

0

10

20

30

40

50

60

70

80

90

100

PQ-10 Cationic Guar PenCare DP

We

t C

om

b (

gf)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PQ-10 Cationic Guar PenCare DP

% Transmittance(600nm) % Bio-Based Content

CONFIDENTIAL

Nature. Science. Solutions.® 16

Printing

&

Writing

Packaging

Adhesives

Personal Care

Oil & Gas

Construction

Opportunities for Growth

Nature. Science. Solutions.® 17