This document discusses phytosterols, which are plant sterols that are used as food additives and in pharmaceutical manufacturing. It focuses on Arboris, the world's largest producer of phytosterols. Arboris extracts phytosterols from tall oil pitch, a byproduct of pine wood pulping. It has two production facilities in the United States and a stable supply of raw materials. Arboris aims to be the reliable and cost-effective long-term supplier of high-quality phytosterols to food and pharmaceutical customers.

1. The Global Phytosterol
Market and Cooperation with
the Steroid Hormone
Business

2. • Phytosterols = “plant sterols”
– Cholesterol = “animal sterols”
• Most abundant: Sitosterol, campesterol
and stigmasterol
• Uses:
– Blood cholesterol-lowering food additive and dietary
supplement
– Cosmetic ingredient
– Contains the chemical building block for manufacture of
pharmaceutical steroid hormones
CholesterolSitosterol
WHAT ARE
PHYTOSTEROLS?
Steroid Hormone Building Block e.g. Hydrocortisone
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3. HOW ARE
PHYTOSTEROLS PRODUCED?
• Sterols are present in trace quantities in plants
• Manufacturing uses concentrated by-product
streams generated from other industrial processes
• Most common:
– Soybean oil distillate (SOD) produced in soybean oil refining
• Soybeans: ~0.05% sterols
• Crude soybean oil: ~0.3% sterols
• SOD: ~5-10% sterols
– Tall oil pitch (TOP) produced downstream of pine wood pulping
• Pine trees: ~0.1% sterols
• Crude Tall Oil (CTO): ~2.0% sterols
• Tall Oil Pitch (TOP): ~10-15% sterols
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4. PHYTOSTEROL SOURCES’
MARKET DYNAMICS
• Soy Sterols
– Isolated together with vitamin E (VE) from SOD
– VE = main product; phytosterols = by-product of SOD
– Profit depends largely on VE market
– VE and sterol concentrations in SOD have been declining
• Wood Sterols
– Isolated from planted and managed pine forests
– Phytosterols = main product of TOP
– Many commodity and value-added tall oil products and markets
• Adhesives, inks, coatings, synthetic rubber, biofuels
• Cosmetics, fragrances
– Mature, highly diversified pine chemicals industry space
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5. PHYTOSTEROLS-GLOBAL
SUPPLY/DEMAND
• Estimated demand: 13,000-15,000 MT/year
– 40-50% steroid hormones (e.g. Sito, Pfizer)
– 40-50% food (e.g. Unilever, Danone)
– 3-5% supplements and cosmetics
• Estimated supply: 13,000-15,000 MT/year
– Oilseed, East: 15-20% (e.g. Wilmar, Glanny)
– Oilseed, West: 30-35% (e.g. ADM, BASF, Cargill)
– Wood: 55-60% (e.g. Arboris)
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6. STEROID HORMONES: RAW
MATERIAL ALTERNATIVES
• Diosgenin
– Extracted from a species of “yam” plant
– Steroid synthesis routes well established
– Factories have struggled with reducing pollution
– Supply and price unsteady
• Phytosterols
– Extracted from soybeans, pine wood, etc.
– Steroid synthesis routes well established
– Becoming preferred and growing raw material for
steroid hormone manufacture
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7. ARBORIS BACKGROUND
• Incorporated-2001
• Venture with Schering AG (now Bayer)-2002
• Factory construction completed, production began-2004
• Expand into supplying food market-2005
• Private owners support a long-term growth focus
• Factories in Savannah, Georgia and Newark, Ohio, USA
• World’s largest producer of phytosterols
• More than 10 years of reliable supply to all leading food
and pharmaceutical sterol users
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8. ARBORIS’ VALUE
PROPOSITION
“Long Term, Stable, Dependable,
Cost-Effective Sterol Supply”
• Strengths:
ü Raw Material: TOP agreements with all US producers, and
other global producers.
ü Factories: High yield, proprietary process technology.
State of the art facilities. Reliable, high quality production.
ü People: Long-tenured professionals drive continuous
improvement.
ü Customers: All major food and pharmaceutical sterol users.
More than10 years of reliable supply.
ü Focus: Sterols are a byproduct for many producers. Arboris is
only focused on manufacturing and marketing of sterols.
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9. VALUE CHAIN AND
BACK INTEGRATION
• Sustainably back-integrated for long-term supply of raw
material, Tall Oil Pitch (TOP)
Pulp Mills Paper Mills
Tall Oil
Refineries
Specialty
Chemical Plants
Arboris Sterol
Factories
Paper
Products
Adhesives
Inks
Coatings
Biofuels
Functional Foods
Pharmaceuticals
Supplements
Planted Forests
Tall Oil
Tall Oil Pitch
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10. SAVANNAH, GEORGIA FACTORY
• Plant construction completed 2004
• Expansions: 2005, 2013-2015
• Extracts and concentrates
phytosterols from TOP
• ISO 9001:2008 certified
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11. NEWARK, OHIO FACTORY
• 99% pure phytosterols from Georgia factory’s
TOP extract
• Capacity and reliability expansions: 2013-
2015
• EU and US cGMPs
• Quality and Reliability: >99% in spec, >98%
uptime (5 year)
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12. SUMMARY
• Arboris possesses:
– Strong raw material and supply chain
– Modern state-of-the-art plants, process efficiency,
reliability, and high quality
– Stable business base load
– Highly diversified industry space
– Substantial inventory, expanding capacity
– Established track record with multinational customers
• Arboris offers:
– Commitment to be the reliable and cost-effective
supplier of the highest quality sterols to our current
and future partners
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