Innovation in Personal Care Formulations

November 2014

Agenda

• Solvay’s Global Trend Focus

• Market Trends and Demands

• Sensory Evaluation and Approach

• Solvay’s Capabilities and External Engagement

2

Strong Innovation portfolio with global megatrend

3

Novecare

Beauty Trends

Consumers are more interested in and knowledgeable of what they put on their bodies

5

Consumers are better educated on the ingredients used in personal care products and seek specific claims such as free from: Sulfates, Parabens, Silicones, etc.

Hair Care Trends

Due to many changes in hair style, claims like For Damaged Hair and Heavily Damaged hair are increasing, especially in some regions, making mildness and scalp care important and complementary claims, together with anti-aging.

6

Hair Care Market Needs

7

Free from…..

8

Free from…….. % of Hair Care Launches

9 Source: Mintel

Free From: Awareness and use of personal care products

10

Free of……..Market examples

11 Source: Mintel

Free of……..Sulfates to Address Color Protection

12 Source: Mintel

Skin Cleansing Trends

13

Skin Cleansing Market Demands “Cared-for Skin”

14

Gentle is Essential in Baby and Skin Care

Gentle products that do not contain harsh chemicals are very important to parents

• 38% of consumers are looking for products made with all-natural ingredients • 37% are looking for products designed for sensitive skin

New moms especially concerned with the safety of products the use on baby’s skin. Parents desire simple products that are natural and safe, but still effective

Source: Mintel 15

Mother and Baby

• Just under a quarter of parents use baby products on themselves, so this offers potential for brands typically seen as 'just for baby or child' to expand into the wider toiletries market and cater for adults as well.

• Taking the visual emphasis off baby bottoms and pitching themselves as a 'brand for life' and good for all skin types

Product targeting babies to seniors and those with sensitive skin

Source: Mintel Inspire 16

Market Launches - Sensitive Skin Claim 2011-2013

# of products with "for sensitive skin" claim over time

Global, Jan 2011 – Dec 2013

Source: Mintel 17

Top Consumer Claims – Personal Care

Global, Jan 2011 – Dec 2013

Top claims based on # of products with "for sensitive skin" as a claim by category skincare/hair products/soap & shower products

Skincare Soap & Bath Products Hair Products

Botanical/Herbal 68.1 64.1 60.5 Moisturising / Hydrating 69.4 46.7 31.9

Dermatologically Tested 45.9 40.4 41.8 Paraben Free 36.3 30.6 29.9

No Additives/Preservatives 31.1 32.2 33.3 Time/Speed 38.5 4.1 14.3

Vitamin/Mineral Fortified 27.3 15.1 21.4 Ethical - Animal 24.1 23.9 21.8

Anti-Ageing 29.5 1.6 0.4 Babies & Toddlers (0-4) 15.2 41.6 51.4

Hypoallergenic 19.7 22 25.3 Brightening / Illuminating 24.6 4.1 17.8

Ethical - Environmentally Friendly Package 19.8 20.8 17.4

Fragrance Free 22.3 9.6 15.8 Antioxidant 24.2 4.8 1.8

Organic 18.4 19.3 16.6 Long-Lasting 21.2 3.1 7.6

Reduces Fine Lines / Wrinkles 19.1 0 0 Ethical - Environmentally Friendly

Product 13.5 17.3 12.1

UV Protection 18.3 0.2 1.9

Source: Mintel 18

How is Sensory Perceived in Personal Care?

Emotional and physical gratification from entire experience during product usage

• Product appearance • Luxurious product visuals

Fragrance Performance • Delivers long-lasting olfactory benefits

Product Performance • Luxurious lather • Indulgent feeling of being pampered • Enjoyment in use

19

Sensory is a Holistic Approach

20

Appearances in Package

Olfactory Performance

Feel During & After use

Sensory and Indulgence

Enduring behavior

irrespective of financial

pressures

Valued distractions that allow consumers to escape from the everyday to

experience some of life’s small

luxuries

Sensory and

Indulgence

1/13 21

Sensory and Indulgence is a mega-trend, which examines consumers’ desire to treat themselves to small luxuries Source: Datamonitor

Indulgence

Indulgence

Indulging the Senses

1/13 22

L'Oréal Hair Expertise OleoTherapy Deep Recovery Mask

Sulfate-Free Restores radiance Described as a sensorial recovery

treatment

Palmolive Ayurituel inspired by Ayurveda Transforms the shower into a sanctuary Leaves skin feeling rebalanced and

energized whilst comforting the senses…

Thalgo Polynésia Exotic Shower Gel Cleanses without drying Delivers silky soft skin Sensual vanilla fragrance evokes

sensorial journey to the islands of Polynesia

Nude - a natural cleanser that transforms from an airy gel to a soft milk

Melts away all face and eye makeup Envelops you in a naturally luxurious,

sensorial experience

Herbal Essences Naked Moisture Cleansing Conditioner

Low lather cleansing conditioner indulges each strand with the scent of herbal mints

Pantene Pro V Damage Detox Weekly Rehab Creme

Instantly renews hair with lasting smoothness

Body & Skin Cleansing Hair Cleansing

SOLVAY’S CAPABILITIES FOR SENSORIAL EXPERIENCE

04/11/2014 23

High Throughput Formulation Screening

24

Water

Surfactant A Surfactant B

Transparency Viscosity

Project Number NOV-HPC-PD-10.1 Objective is to reduce the active level (cost) in Body wash formulations, starting from simple mixtures Evaluation of basic required properties: • Transparency and Viscosity • Best candidates scaled up in application lab formulation optimization (η, salt content, pH), stability, cleansing, sensorial assessment/foam, complete formulation prototyping

26 surfactant mixtures screened Total surfactant concentration: 10% Total Salt: from 1% to 3% pH = 5,5 (+/-10%)

Miracare® TSC 484: • Sodium C14–16 Olefin Sulfonate • Cocamidopropyl Hydroxysultaine • Cocamide MEA • Sodium Trideceth Sulfate Miracare® TSC 273: • Sodium C14-C16 Alpha Olefin

Sulfonate • Sodium Trideceth Sulfate

25

Tools & Capabilities Foam Measure

• Simple and direct foam measurements

• High sample throughput for reproducible analysis

• Provides key measures: • Speed to lather • Foam height • Foam decay • Foam density

Zein Assay Rapid, screening procedure that can predict the potential dermal irritancy of various surfactant systems. In the test, Zein, a yellow corn protein that is similar to keratin present in the skin and hair, is denatured (solubilized) by an irritant.

Rheology

•Brookfield Measures viscosity at given shear rates •Simple, easy to use for everyday laboratory us •The AR-G2 (TA Insturments) is an advanced controlled stress and controlled rate rheometer •A broad spectrum of rheological measurements can be performed across a wide range of shear and temperature •Suitable for both raw materials and sample formulations

0.1

1

10

100

1000

10000

0.001 0.01 0.1 1 10 100 1000 10000

Visc

osity

(Po

ise)

Shear Rate (1/sec)

DV 9903 Viscosity vs Shear rate

10ºC

20ºC

30ºC

40ºC

60ºC

Newtonian

Dilatant

Delfine Vapometer

• Measurement of TEWL (transepidermal water loss)

• The MoistureMeterSC skin surface hydration values at the Stratum Corneum level

• Delfin MoistureMeterD measurement of water content of biological tissues. It measures the dielectric constant values of the skin and subcutaneous tissues non-invasively and locally in a few seconds

Surfactant Screening for Mildness pH =4.0, 1.0% Surfactant Solution

26

Solvay’s Sensory & Clinical Testing Partnerships

Sensory Panels (Sensory Spectrum) • Generate high quality product

sensory information and formulation insight

• Linking consumer and product understanding

• Benchmarking developed products vs. market products

• Product testing • Descriptive analysis • Quality • Home use panels

Clinical Testing (AMA Labs, MB Research) • Skin, hair and eye testing

• Mildness, Moisturization • Safety testing (HRIPT) • Occular irritation • Skin irritation and sensitization • Anti-acne • Hair care products (Anti-dandruff)

27

Innovation Approach

28

Support Customers and deliver

end consumer benefits

Evaluate for

perceivable benefits

Develop formulations

using our portfolio

Identify Market Needs

• Wide Array of Products • Body Wash • Foam Hand and/or Body

Wash • Hand Wash • Wipes • In-Shower Lotion

INCI: Cocamidopropyl Hydroxysultaine, Sodium Coco-Sulfate, Propanediol, Disodium

Lauroamphodiacetate

Containing Miracare® GBC

29

HEN’s EGG TEST CHORIOALLANTOIC MEMBRANE

Attributes Leading Tear free BW

Leading Head to Toe Wash

GBC Shampoo + BW

Pre W

ash

Firmness 29.0B 29.5B 44.5A

Cohesiveness 71.6B 53.8C 77.4A

Integrity of Shape 9.8B 10.4B 38.2A

Gloss 96.1A 79.7B 96.4A

During W

ash

Laps to Lather 5.8A 6.0A 5.2B

Amount of Lather (30 Laps)

48.1a 45.7ab 45.0b

Bubble Size 5.8a 5.8a 4.9b

# Laps to Rinse 8.5 8.4 8.7

After w

ash

Dryness (Immediate) 14.6 14.4 14.9

Tautness (Immediate) 16.2 16.0 16.3

Dryness (10 Min) 7.6 8.1 7.9

Tautness (10 Min) 15.3 15.1 15.1

Blissful Baby Tear-Free Baby Body Wash & Shampoo Sensory & Irritation Profile

Formulation

30

Water, Cocamidopropyl Betaine, Ammonium Lauryl Sulfate, PEG-80 Sorbitan Laurate, Lauramidopropyl Hydroxysultaine, Fragrance

INCI Label

Mackam® LSB-50, Mirataine® BET-C30, Rhodapon® ALSA/K, Alkamuls®PSML-80/72 LD

Solvay Ingredients

• Ultra Mild • Outstanding foam quality and stability • Creamier/Softer foam • Provides skin moisturization

Benefits

Ultra Mild Foam Wash

pH: 5.50 Viscosity: N/A Solids: ~13.5%

Specifications

31 Solvay Formulation achieved better flash foam and lower irritation potential

Foam Analysis and Irritation Potential Analysis – Ultra Mild Foam Wash

130

135

140

145

150

155

160

165

170

175

30 s 150 s 300 s

National BrandSolvay

0

0.2

0.4

0.6

0.8

1

1.2

National Brand Solvay's Formulation

32

Water, Sodium Laurimino Dipropionate, Lauramine Oxide, Cocamidopropyl Betaine, Polyquaternium-7, Polyglycerol-3

INCI Label

Mackamine® LO, Mackam® CB-35, Mirataine® H2CHA, Mackernium® 007, Polyglycerol-3

Solvay Ingredients

Silky, clean skin is in! This formulation is compatible with Salicylic Acid and Benzalkonium Chloride, making it an excellent chassis for an anti-acne facial cleanser.

About the Formulation

Low pH Foaming Facial Cleanser

pH: 4.0 Viscosity: N/A Solids: ~5%

Specifications

33

Water, Lauramidopropyl Hydroxysultaine, Sodium Lauroamphoacetate, Sodium Cocoyl Glycinate, Lauric Acid, Fragrance

INCI Label

Mackam® LSB-50, Miranol® Ultra L-32, Geropon® CG 3S

Solvay Ingredients

Solvay’s latest addition to a growing line of sulfate-free body cleansers is ultra-gentle to the skin. This cleanser is wallet conscious as well, as it is concentrated and designed to meter the appropriate dosage, allowing for less wasted product.

About the Formulation

Eco-Conscious Body Wash

pH: 8.2 Viscosity (LV4, 6RPM): 23,600 CPS Total Surfactants: 26.0% Solids: 34.6%

Specifications

Foam Analysis of Concentrated BW vs. Marketed product

0

50

100

150

200

250

30 60 120 180 300

Foam

Hei

ght (

mm

)

Time (sec)

Conc. BW @ 1.0% Conc. BW @ 0.5% Marketed BW @ 1.0%

Eco-Conscious Body Wash @ 1.0% and 0.5% has higher foam height and stable foam compared to marketed body wash

34

Irritation Potential of Concentrate vs. Marketed Body wash

0

0.2

0.4

0.6

0.8

1

Conc. BW @ 1.0% Conc. BW @ 0.75% Conc. BW @ 0.5% Marketed BW @1.0%

(g) Z

ein

Dis

slov

ed

At higher active levels Eco-Conscious body wash performance at parity for irritation potential vs. marketed body wash

35

36

Water, Sodium Lauroamphoacetate, Sodium Cocoyl Glycinate, Sodium Methyl Oleyl Taurate, Polyacrylate-33, Silica, Sunflower oil, Glycol Distearate, Fragrance

INCI Label

Rheomer® 33T, Miranol® Ultra L-32, Geropon® CG 3S, Geropon® T-77, Tixosil® 68, Mirasheen® S-188

Solvay Ingredients

This versatile formulation allows for the creation of unique textures and visuals while delivering exfoliating or moisturizing benefits. Offers oil, pigment and particle suspension. Clear base before inclusion of oil.

About the Formulation

Dynamic Textures Body Wash

pH: 7.25 Viscosity: 30,000 Total Surfactants: 8.0% Solids: 11.0% Yield Stress: 1.60 Pa %T (600 nm): 97.6

Specifications

37

Water, Petrolatum, Mineral Oil, Polyacrylate-33, Guar Hydroxypropyltrimonium Chloride, Sorbitan Oleate, Polysorbate 80, DMDM Hydantoin

INCI Label

Rheomer® 33T, Alkamuls® SMO, Alkamuls® PSMO-20, Mackstat® DM, Jaguar® Optima

Solvay Ingredients

Maximize your beauty routine with this quick rinsing moisturizing in-shower lotion to be applied to skin when pores are open and ready to be replenished with nourishing oils. This formulation is easy to process.

About the Formulation

In-Shower Moisturizing Lotion

pH: 5.7 Viscosity: 40,000 Solids: 20%

Specifications

38

Water, Lauramidopropyl Hydroxysultaine, Sodium Cocoyl Glycinate, Lauric Acid, PEG-150 distearate, Fragrance

INCI Label

Mackam® LSB-50, Geropon® CG 3S

Solvay Ingredients

• Easy to process • Quick rinsing • Clear • Ability to thicken formula with

• PEG 150-distearate • Cocamide MIPA

About the Formulation

Isotropic Body Wash

pH: 6.5 Viscosity: 8,000 Solids: 12%

Specifications

39

Foam Analysis and Irritation Potential Analysis – Isotropic Body Wash

Solvay’s formulation has similar or better performance compared to benchmark products

Marketed Kid's Sensitive Skin

Marketed Kid's 3 in 1

Marketed Head-to-Toe Solvay's Prototype

0

0.2

0.4

0.6

0.8

1

(G) Z

ein

Dis

solv

ed/(G

) Zein Test/Irritation Potential

Marketed Kids Sensitive Skin

Marketed Kid's 3 in 1

Marketed Baby Head-to- Toe

Solvay’s Prototype

170

172

174

176

178

180

(MM

) Foa

m @

25

sec

Foam Volume

Thank you!

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