1 MICROBAN OVERVIEW Cipherlab Co. Ltd August 3rd 2010 2 Agenda Overview of Microban. • Microban Overview: Who we are and what we do. • Microban Value Proposition: How Microban creates value for its partners. Why use Microban additives? • Microban Technology: Choice of antimicrobial / test methods / How antimicrobials function: What are the benefits? • 3 Microban Support: How we help our partners. MICROBAN OVERVIEW 4 Microban International, Ltd. Microban is the world’s leading provider of safe, durable and effective built-in antibacterial solutions. Microban Americas Charlotte, USA Montreal, Canada Sao Paulo, Brazil Mexico City, Mexico Microban Europe Cannock, U.K. Frankfurt, Germany Milan, Italy Barcelona, Spain Microban Asia Pacific Hong Kong Shenzhen, China 5 Microban Manufacturing & Warehousing Footprint Microban supports customers on a regional level with local manufacturing and export of its additive systems, and is expanding its manufacturing base to Asia. North America Charlotte, USA (Polymers & Formulations) Export to EU, Central & South America, and Asia (Polymers & Formulations) Europe Liverpool, U.K. (Polymers) Asia Pacific Hong Kong – Warehouse (Polymers & Formulations) Shenzhen, China (Polymers) 6 BUILT-IN TO MORE THAN 750 PRODUCTS BY OVER 150 LEADING MANUFACTURERS AROUND THE WORLD 7 Microban Partners - Selection Microban is privileged to help these and other industry-leading companies around the world improve and differentiate their products. 8 Our impressive reach towards consumers Microban – we are up to the challenge In the Home Hospitals, Clinics, Surgeries Hotel, Restaurants, Catering Venues Offices, Waiting Rooms, Care Homes Supermarkets, Shopping Centres Other Public Venues Airports, Public Transport Venues Gyms, Leisure, Pools & Spa Centres Museums, Schools, Universities and, we are looking at new areas all of the time... 9 Example product materials we already treat 10 MICROBAN VALUE PROPOSITION 11 Microban Value Proposition We help our partners strengthen their businesses by creating a valuable point-ofdifferentiation for their products through a compelling ingredient brand. For companies trying to strengthen their businesses and address core business challenges. Microban represents an alternative business strategy that brings value by providing a compelling and enduring point of product differentiation … And we do this by providing a complete ingredient brand solution including: • The leading antimicrobial brand • Innovative technical solutions • Patent protection (when available) • Regulatory support • Ingredient branding marketing expertise 12 The power of Microban ingredient branding Since 1996, Microban have been driving consumer product sales through innovation, improved quality, product longevity & enhanced consumer appeal 13 • Extend Product Life – The life of a product will be extended when using Microban – we restrict typical microbial and fungal degradation • Visible Cleanliness – Product cleanliness is improved with our antimicrobial and / or antifungal solution • Invisible Cleanliness – Microbes are invisible. Their growth is proven to be significantly controlled by Microban technology • Odour Reduction – Microbes can cause noxious odours. Using Microban naturally reduces odours and improves product appeal for consumers MICROBAN TECHNOLOGY 14 Microban Technology • Plastics – Antimicrobial is incorporated during extrusion for thermoplastics or by addition to liquid resin for thermosets – Full range of plastics, from polyolefins to polystyrenes and polycarbonate to unsaturated polyesters and acrylics • Textiles – Incorporated via standard textile processes such as the dye bath or in surface finishes such as softeners and permanent press finishes • Coatings – Mixed with latex or solvent-based resins – Addition rates into the coating depend on the application rate of the coating on the substrate • Ceramics – Secondary glaze on tile surfaces • Metals – Epoxy powder coatings or nickel / chrome electroplating 15 Choice of Antimicrobial The available choices for antimicrobials will depend on: • Efficacy desired – Antibacterial – Anti-fungal • Processing – Process conditions, particularly temperature – Materials used for part • • • Properties desired (e.g, clarity) Cost Regulatory approvals – Approval for specific use – Food & water contact approvals, if needed for water. – Approved use limits 16 Benefit – Improved Cleanliness 2 log reduction in average CFUs No of swabs / count range 40 - Treated boning knives - Untreated boning knives 35 30 25 20 Reduction in samples with high levels of contamination 15 10 5 0 <103 Total Viable Count cfu/swab <109 Results from field study conducted in Sainsbury food preparation facilities. Sainsbury is a major British supermarket chain. • Does not necessarily lead to sterile surfaces • Provides continuous action as compared to disinfection • Does not readily transfer to skin, food, or other contact surfaces 17 Average bioburden wo/ cleaning Average bioburden w/ cleaning 0 2 4 6 8 10 12 14 Over a 24 Hour Period 18 Clean & disinfect Clean & disinfect Level of Bioburden on Product Surface Effect of Disinfection 16 18 20 22 24 Average bioburden wo/ cleaning Average Bioburden w/antimicrobial 0 2 4 6 8 10 12 14 Over a 24 Hour Period 19 Additional “dirt” Additional “dirt” Additional “dirt” Additional “dirt” Level of Bioburden on Product Surface Effect of Antimicrobial Treatment 16 18 20 22 24 Level of Bioburden on Product Surface Antimicrobial Treatment vs. Disinfection Average Bioburden w/o cleaning Average Bioburden – w/ Disinfectants Average Bioburden w/ Antimicrobials 0 2 4 6 8 10 12 14 16 Over a 24 Hour Period Disinfectants Microban® Antimicrobial Technology 20 18 20 22 24 Microban Efficacy Demonstration Unprotected Surface 2 hours 16 hours 20 hours 24 hours 20 hours 24 hours Surface with Microban® Antimicrobial Protection 2 hours 16 hours This information is based upon standard laboratory tests and is provided for comparative purposes to substantiate antimicrobial activity for non-public health applications. Microban technology is not designed to replace good hygiene practices or protect users 21 disease causing microorganisms. Antimicrobial action limited to product surface. from Antibacterial Test Methods Qualitative Test Method • 3 main methods covering bacterial and Fungal resistance. – AATCC TM 30 pt III (plastics materials – Fungal growth) – AATCC TM 147 (bacterial test method mainly for textile materials) – Kirby Bauer / Zone Diffusion (plastics materials – bacterial growth) • Results expressed as a Zone of Inhibition or measurement of inhibition area (mm). • Observations are also noted for Surface growth (fungal tests) and graded according to % coverage • Qualitative test methods show a product is able to inhibit the growth of the test organism (bacteriostatic or fungistatic activity) 22 Antibacterial Test Method Summary Quantitative Test Method • • Two main standards employed : – ISO 22196 / JIS Z 2801 (Japanese Industrial standard) – AATCC TM 100 Results expressed as a % reduction value and Log Kill e.g. 99.9% = 3 Log reduction after recovery of viable organisms following a 24hr period. – Samples results are expressed verses the initial population of bacteria or verses untreated control (when available) • Quantitative test methods show a product is able to actively kill the test organism (bactericidal or fungicidal activity) – 23 Results obtained will also distinguish between bacteriostatic and bactericidal activity. Antibacterial Microban Actives: Mode of Action Cationic CHLOROPHENOXY Metal Zinc Pyrithione ions Antimicrobials Based ANTIMICROBIALS • Antimicrobials Copper Disrupts or ion Silver transport ions gradients with across theion the thiolcell (-SH) • combine Multiple routes Disrupts normal groups in gradients, membrane amino interfering acidswith and transport • Combine with disrupt enzyme cellular respiration catalysis interfering with nutrient protein/enzyme amino and function and energy • intake React with enzymatic acids and disrupt the production. Metal ions in functional groups cellular functions the cell are chelated and • transported Disrupt cell membrane out of the cell integrity causing loss of ion transport gradients • Triclosan blocks lipid biosynthesis and prevents formation of vital membrane fatty acids 24 Claims Overview • Claims will be developed based on laboratory substantiation of bacteriostatic/bacterocidal and/or fungistatic/fungicidal efficacy. • In addition, claims will be formulated based on one or more of the following key functional benefits provided by Microban protection. – Invisible Cleanliness – Visible Cleanliness – Odour Control – Product Degradation • Microban antimicrobial technologies are designed to provide durable antimicrobial protection. Lifetime durability claims may be used with the appropriate substantiating data. 25 Case Study: Cosentino® The makers of Silestone® countertops embraced Microban protection to differentiate their product from other quartz surfaces and to steal share from other countertop surface materials. Primary Objective • To differentiate Silestone® from granite and other countertop materials to generate demand and justify premium price. Actions • Launched worldwide across their entire product line and supported with heavy media (T.V. advertising at prime time on Spanish and Portuguese channels) and pan European consumer print campaigns. • Sponsorship of Fernando Alonso Formula One driver supported by TV advertising on Spanish and Portuguese channels. Results • • 26 Major growth across Europe leading to 9 new sales offices and 3 distribution warehouses opening. Extension of product diversity from kitchen countertops to public space interior design. Application example: Hospital Design Infection risk control – protecting buildings 27 • 1. Walls • 2. Beds and curtains • 3. Blinds • 4. High contact surfaces • 5. Flooring • 6. Switches and controls • 7. Wet environments • 8. Computer equipment and reception areas Case Study: WHIRLPOOL® Whirlpool embraced Microban to enhance their appliances features and is currently broadening the range of treated components across the product Primary Objective • To enhance Whirlpool appliances with a range of antibacterial features. Action • Whirlpool have introduced a special air filter device in the refrigerators which incorporates Microban antibacterial technology. • Following its success, the Microban technology has been extended to additional areas within the refrigeration project and also across the product mix (dishwashers and washing machines) within the Whirlpool and Bauknecht brands. Results • Significant differentiation achieved and communicated to Whirlpool customers. • Market surveys showing a remarkably high percentage of Whirlpool customers find the treatment appealing and innovative. 28 MICROBAN SUPPORT 29 The Microban Solution Microban provides a turnkey, ingredient branding solution, that ranges from a technical solution through the use of the Microban brand. 30 Technical Support Microban provides industry-leading technical services to ensure that partners get a customised technical solution that best meets their unique product. • Expert research and development – dedicated staff of engineers, microbiologists and analytical chemists. • The only antimicrobial solutions provider that offers over 20 different antimicrobial technologies under a single umbrella brand. • One of the most advanced antibacterial laboratories in the world. • Bacterial and fungal microbiology laboratories on-site at HQ in North Carolina. • Capacity to manage all of our partners’ testing needs. Microban micro lab completes over 30,000 tests annually. • Close liaison with independent testing laboratories across Europe. • Privileged to be conducting cutting edge antimicrobial product development for the US Department of Defence. 31 HEALTHCARE RESEARCH 32 Healthcare Research 97% of healthcare professionals are concerned about the presence of microbes (such as bacteria, mold and mildew) in their healthcare facilities. 33 Healthcare Research 79% of patients are concerned about the presence of bacteria when at a hospital. 34 Patient room products / medical devices From initial patient and healthcare provider research Microban has identified key areas of contamination within patient rooms This research is being supported by a patient room swab study within Presbyterian Hospital Huntersville, USA to confirm highly contaminated products - “hot spots” Microban is currently in dialogue with manufacturers of ‘hot spot’ products and more than half have expressed a high level of interest in engaging with Microban on a project 35 Patent Protection With one of the strongest antimicrobial patent positions in the world, Microban helps its partners create competitive barriers where possible. 36 • 163 patent applications and 42 issued patents protecting the use of Microban® antimicrobials in various end products help provide effective barriers to entry by your competitors. • In-house patent attorney surveys patent landscape at the outset of the project to determine areas of opportunity for patent protection. • Protects our partners from infringing on 3rd party’s rights as well. • Proactive patent stance enables us to preserve our partner’s exclusivity and provide market leverage. Regulatory Support Microban regulatory helps partners quickly secure the necessary approvals to hasten product launches, and ensures aggressive claim compliance. 37 • In-house VP, Regulatory Affairs with over 20 years of regulatory and toxicology experience provides partners with unmatched expertise. • Former EPA Director is a member of the Microban Board who provides on-going advice. • Washington & Brussels – based regulatory consulting / law firms support Microban and its partners on a regular basis. • Experience working with international regulatory authorities to ensure compliance on a global basis. • US - EPA, FDA - EU - ECHA • Canada – PMRA - Australia - AVMPA • Mexico – Cicoplafest - UK – HSE • Facilitate third part approvals with agencies such as NSF and TUV. MARKETING SUPPORT 38 Microban Marketing Support 39 • Claims Development • Sales Training • Packaging Development • Microban Website • Point of Sale Development • Microban Collateral • Market Research • Customer Specific Programmes • Press Releases • Website Development Microban Partner Advertising 40 Healthcare microsite www.microban.com/partnersites/microban-medical 41 Microban website World-wide coverage with direct link to partner website 42 Microban support literature Generic, customized and multilingual – designed for events, press packs and trade shows 43