1. ODS/GHG Reduction: Options in Foams February 2011

2. Forces: commercializing new molecule(s) Environmental regulation or restriction . . . . • EU F-Gas Directive: restricts the use of materials with GWP > 150 in emissive applications • Restricts the use of HFC-134a in specific applications • EU one component foam industry regulation: 04 July 2008 • EU novelty aerosol industry regulation: 04 July 2009 • Kyoto Protocol: Developed countries reduce GHG emissions 5% (1990) • EU reduce GHG emissions by 8% (1990 levels) • Japan striving to meet Kyoto commitments • Industry concern with further GWP regulation • Taxation of raw materials basis GWP values • Economic impact on finished goods • Climate Change bills in U.S. Congress • Globally: reduction in ODS and climate change Environmental regulation is now driving commercialization

3. Fluorine Products – a History of Innovation Markets Served:Mobile and Stationary Air conditioning, Refrigeration, Insulation Foam for Buildings and Electrical Appliances, Cleaning Solvents, Nuclear Power, Aerosols, Heat Pumps, Geothermal and Solar Renewables MONTREAL PROTOCOL EU LEGISLATION F-Gas Regulation CFC Phase-out HCFC Phase-out HCFCs HFCs HFOs CFCs 1900s 2000s 2010s 1990s Ozone Depleting and Very High Global Warming Potential Non-Ozone Depleting but has High Global Warming Potential Low-Global-Warming Potentials and No Ozone Depletion Effect Innovation Tied to Environmental Compliance

4. Montreal Protocol calls for HCFC-141b phase out • Montreal Protocol on Substances that Deplete the Ozone Layer • Baseline average of 2009 and 2010 • Freeze 2013 • Reductions: 10%m : 2015 > 35% :2020 > 67.5% : 2025 > 2.5% per year reduction 2030 to 2040 • Complete phase out 2040 • HCFC-141b has been phased out in United States, Japan and Europe • HCFC transitioned the industries to environmentally improved materials • Global pressure may accelerate the phase out date in other countries • example: India and UAE, as well as others • HFC’s are utilised where key needs demanded are: • insulation performance, and energy efficiency of finished products (refrigerators) • non-flammability property • Hydrocarbons, and other non-HFC materials, while flammable, may be used: • where deficiencies in insulation performance and flammability can be tolerated • spray foam industry is particularly sensitive to flammability (application / equipment) HCFC’s successfully phased out in many countries

5. Blowing Agent Attributes • Phase out of ozone depleting substances: ODS • Global warming potential: climate change impact reduction • Ground level smog formation: limited contribution • Low order of toxicity – safety in manufacturing use and finished products • Non-flammable – safety in manufacturing use • Insulation performance / energy efficiency: low lambda or k-factor • Processing and equipment implications • Liquids: appliance (refrigerators); commercial refrigeration; spray foam; insulating panels • Gases: extruded polystyrene (thermoplastics); special applications • Compatible with formulations and processing equipment materials • Low conversion cost: equipment investment and reformulation • Economic valuation in use – translates into finished product economics • Commercially available on a global basis Attributes support governments’ and industry’s preferences

6. What is HFC 245fa?

7. HBA-2: Liquid Low GWP Blowing Agent Fluorochemical • Liquid blowing agent • Molecular weight: less than HFC-245fa Environmental Properties • Low global warming potential: GWP100 = 7 • Non-flammable: ASTM E-681 • Volatile Organic Compound: very low MIR Toxicity Screening • Preliminary stages: Results are very promising • Assessments completed: • Cardiac Sensitization • Genetic Testing: Ames Assay & Mouse Micronucleus • Acute Inhalation (Rat) • Inhalation: 2 & 4 week • Unscheduled DNA Synthesis Honeywell HBA-2 Blowing Agent promising low GWP molecule

8. HFC-245fa & HBA-2 Insulation Applications • Household refrigerators (appliances) • Commercial refrigeration • food preservation • Building construction (residential and commercial) • Sprayed foams • Roofing and sheathing (board stock) • Panels (faced panels, sandwich panels)

9. HFO-1234ze(E) Blowing Agent Hydrofluoroolefin (HFO) trans – 1,3,3,3 – tetrafluoropropene • CHF = CHCF3 • Molecular Weight: 114 • Gas: TBP = -19 °C (- 3 °F) Environmental Properties • Zero ozone depletion potential (ODP) • Low global warming potential: GWP100 = 6 • Non-flammable: U.S. Department of Transportation • “Non-flammable Compressed Gas” • No flame limits by ASTM E681 • “Non-flammable”: EU Test Method A11 • Volatile Organic Compound Measure • Maximum Incremental Reactivity • MIRHFO-1234zeE < MIREthane Non-ODS / Low GWP / Non-Flammable / Low POCP = Environmentally Sustainable Molecule =

10. HFO-1234ze(E) Insulation Applications • Extruded thermoplastics foams • Extruded polystyrene • One component foams • Sealing around doors and windows • Repairing damage • Adhesives • Two component ‘pressurized’ foams

11. Transition Strategy: Timeframe Dependent • HFC-245fa: Commercially available today – a transition solution • Widely utilised in NA. Specific applications: EU / Japan / China • HFC/HCFC-141b blend technology: ‘reduced cost’ transition option • HBA-2: World-scale capacity target is mid-decade • Conversion to HFC-245fa ‘directly applicable’ to HBA-2 HFC-245fa: Low capital, medium term safe route to ODS management

12. Blowing Agent Energy Efficiency (Lambda) • Lambda is the measure of heat transfer through a material in a given time and temperature • Lower lambda is better: significant energy efficiency driven by insulation characteristics • When compared to HCFC-141b insulation performance: • HFC-245fa is equal to slightly better • HBA-2 has shown improvement over HFC-245fa • HFC-245fa/HCFC-141b blends should exhibit similar insulation performance Transitioning: HCFC-141b  HFC-245fa  HBA-2 maintains energy efficiency

13. Sprayed Foam Comparison: HFC-245fa & HBA-2 Low water formulation High water formulation

14. Capital Investment: HFC versus non-HFC Why are HFC-245fa and HBA-2 blowing agents low capital investment? • They are non-flammable  none to limited capital requirement • Low risk – technology, workplace safety, environmental • HCFC-141b PUR equipment  little to no equipment modifications required • Both are liquid blowing agents with moderate vapour pressure • May require storage vessel up-grade  low capital investment • HFC-245fa conversion from HCFC-141b in US: Cost ≈ Minor Why are Non-HFC (hydrocarbon & methyl formate) blowing agents challenging? • Generally flammable  significant investment in flammability mitigation • Blending operations; foaming equipment; storage vessels • Consequences of miss-operations  inherent risk of fire / explosions • Factory emissions  probable ground level smog formation • Non-HFC PUR foams typically exhibit deficiency in insulation performance • Non-HFC conversion in US: Cost ≈ $500 K USD to $ 5 M+ USD (small asset) (refrigerator factory) HBA-2 is a LOW capital investment, near ‘drop-in’ transition from HFC-245fa

15. Operational Cost: Implications • HFC = lowest total cost path to high performance for regulatory compliance • Non-HFC solutions have inherent energy efficiency penalty • Cost to restore energy efficiency: panels – low cost; refrigerators – high cost • Non-HFC solutions exhibit deficiencies in density, dimensional stability, LTTR* * LTTR: Long Term Thermal Resistance Non-HFC PUR requires additional costs to achieve equal performance

16. HFC Solutions Summary • ODS and GWP reduction is imperative on a global basis • HFC solutions: thru HFC-245fa ‘bridge’ route . . . • Provides a balanced, technology neutral / low capital investment pathway • Positions the industry for future HBA-2 adoption • HFC-245fa and HBA-2 do not contribute to ground level smog formation • Non-flammable: inherently safer utilisation in applications • HFC’s allow for orderly industrial transition: • Frees up ODS rights under an ODS Cap • Accommodates industrial and economy growth • HCFC-141b / HFC blends  possible attractive solution • ODS reduction on an interim basis • Energy efficiency neutral with respect to operational costs • Economic valuation: low capital investment & raw materials cost reduction

17. Blowing Agent Commercialization Status • HFC-245fa • Registered for use globally • Commercially available globally • Commercial manufacturing site: 2002 in U.S. • 1234ze(E) • U.S.: SNAP listed / PMN pending EPA approval • EU: Registered under REACH (article 24): 1000+ tonnes/year • Japan: Registration complete • Commercial capacity: 2008 in U.S. • Commercialized in EU and Japan • HBA-2 • Toxicity assessment underway: completion 1Q 2011 • Global notifications/registrations • U.S.: SNAP / PMN applications are in progress • EU: REACH inquiry stage • Japan: Filed for compliance with Japan Chemical Substances Control Law Environmental solutions have/will meet regulatory needs timing

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19. Specific Innovation Requiring Regulatory Approval • Excellent Environmental / Physical / Economic Properties • GWP of 7 • ODP < 0.0005 • Non-flammable • Atmospheric Life < 50 days • Tremendous Potential as HFC / HCFC Replacement • Low GWP Material Designed for “Traditional” Applications • Foam Blowing Agent: Insulation Performance 3-5% Better vs.HFC-245fa • Solvent: Exhibits Very Attractive Solvent Performance Properties • Refrigerant for Chillers: Applications Testing by Major OEMs • Hurdle to Overcome: Lack of Environmental / Legal Certainty • ODP Lower Than Many Non-regulated Chlorinated Solvents • Methylene Chloride: ODP: 0.0047 Atmospheric Life: ~ 180 days • Perchloroethylene: ODP: 0.006 Atmospheric Life: ~ 110 days • Very Low POCP • Compatibility (Plastics and Most Elastomers) • Similar Economics to Current HFC No Certainty in Status Quo – Threshold Value Needed