New Architectural Coatings Technology Targeted At Stricter Hospital

New Architectural Coatings Technology Targeted At Stricter Hospital Infection Protocols From Great Raw Materials Come Great Coatings

Agenda Introduction to the Problem Research and Input from Healthcare Decision Makers The Technology: Durability Testing and Comparisons Summary Questions and Answers Page 2

Agenda Introduction to the Problem Research and Input from Healthcare Decision Makers The Technology: Durability Testing and Comparisons Summary Questions and Answers Page 3

Hospital acquired infections are the fourth largest cause of death in U. S… ions, New Rule ital Mistakes And Infect For Hosp Medicare Will Not Pay les/80074. php) alnewstoday. com/artic edic (Source: http: //www. m Deadly Admissions: Hospital-Acquired Infections Are 4 th-Largest Killer in U. S. , But Ohioans Cannot Get Statistics to Compare Facilities By Tracy Wheeler, The Akron Beacon Journal, Ohio Jan. 9 --But for 20 million Americans each year -- about one in every 10 to 20 patients -- a trip to the hospital results in dangerous, lingering infections, whether through surgery, dialysis, ventilators, IVs, or catheters. At an estimated 90, 000 deaths a year, these hospital-acquired infections kill as many people in the United States as AIDS, breast cancer and car accidents combined. (Source: http: //www. redorbit. com/news/health/351010/deadly_admissions_hospitalacquired_infections_are_4 thl argest_killer_in_us_but/#) HOSPITAL-ACQUIRED INFECTIONS KILL 270 PEOPLE A DAY in NYC alone (Source: http: //www. nyinjurytalk. com/2008/01/hospitalacquired_infections_ki_1. html) Page 4 The issue is significant and actions are being taken Timing is right

The Problem Value Proposition: Safety and Economics Healthcare related organizations develop more stringent standards: The Center for Disease Control (CDC) puts out “Guidelines for Disinfection and Sterilization in Healthcare Facilities, 2008” outlining • Harsher disinfection chemicals • More frequent cleaning The Joint Commission (TJC) incorporates tougher disinfection protocols in their guides for high risk environments in hospitals such as emergency and operating rooms, trauma bays, procedure rooms. The Result: Traditional wall paints are not holding up long term to the increased scrubbing and harsher chemicals Page 5

The Problem Value Proposition: Safety and Economics Meanwhile, insurers recognize the issue and take action: Medicare changes their insurance protocols: • As of January 2009, will not pay for Hospital Acquired Infections (HAI) • Treatment costs will belong to the hospital Soon after, most major medical insurers follow The Result: Hospitals enact increased preventative measures to greatly reduce the chance for HAI for patient safety and economic viability Page 6

Agenda Introduction to the Problem Research and Input from Healthcare Decision Makers The Technology: Durability Testing and Comparisons Summary Questions and Answers Page 7

Defining the Problem Multiple Points in the Value Chain To define the unmet need, we engaged stakeholders: • • • Hospital Facility Managers Architect/Spec Writers Hospital Administrators Painting Contractors Hospital Accreditation Organizations And listened to how they defined the problem Page 8

Research from Key Hospital Personnel Goal: Reduce repaint cycle, keep areas safe, save money After listening, we heard that they wanted: • A more durable, scrubbable wall coating in the high risk areas • A very low odor coating that would not disrupt operations • ‘Warmer’ eggshell or matte coatings but still have durability • An easier to clean and seamless surface • Less downtime in these high operating cost areas • To use their in-house painters more on patient rooms and hallways Page 9

Research from Key Hospital Personnel Goal: Reduce repaint cycle, keep areas safe, save money Values are Typical Page 10

Input from Healthcare Community Hospital Facility Managers and Administrators The Preferred Attributes from Around the Country

The Value Proposition From the Hospital’s Point of View For the hospital administrator who is concerned with meeting the CDC protocols without sacrificing aesthetics and durability, a new high durability coating technology has been developed for rooms requiring frequent cleaning that offers improved durability and resistance to harsh cleaners and disinfectants without sacrificing appearance. Compared with conventional wall paint: • 4 x more durable and scrub-able • Same ease of use, color palette, and low gloss finish Compared to tile: • 4 -5 x lower cost • Better design latitude for future color schemes Page 12

Agenda Introduction to the Problem Research and Input from Healthcare Decision Makers The Technology: Durability Testing and Comparisons Summary Questions and Answers Page 13

The HD Wall Coating Technology Architectural Wall Paint Alternative Two Component Waterborne Polyurethane Technology Built on Bayer’s HD Wall Coating Technology Attributes: • • • High Durability even in an eggshell or flat finish ‘Silky’ surface makes cleaning easier Excellent chemical and disinfectant resistance Very low odor during installation and drying Ultra low VOC and solvent at 15 g/l or less Same color palette as traditional architectural wall paint Page 14

The Technology 2 K Waterborne Coatings Waterborne Technologies: • 2 K chemistry with excellent overall properties “Water is Green” • Early “waterborne” coatings had as much as 300 g/l of co-solvent • New commercial systems are now at 0 -15 g/L • Offer viable replacement products to solventborne epoxy or polyurethane systems

The Technology 2 K Waterborne Coatings Chemistry: 2 K aliphatic polyurethane based on polyurethane or polyacrylate dispersions and aliphatic isocyanates H H O O Polyurethane Dispersion OCN Aliphatic Isocyanate NCO OH React to form A Polyurethane Coating

Durability Testing and Comparison Tested with Typical Disinfection Chemicals Paint or Coating VOC* g/l 1 K Waterborne Acrylic 1 44 54 104 3 1 K Waterborne Acrylic 2 40 62 380 2 1 K Waterborne Acrylic 3 0 250 400+ 2 1 K Waterborne Epoxy A 155 280 400+ 2 1 K Waterborne Epoxy B 96 320 400+ 2 1 K Waterborne Epoxy C 96 275 400+ 2 2 K Solventborne Epoxy 169 205 400+ 2 2 K Waterborne Polyurethane based on Bayer’s HD technology 2 400+ 1 *From published literature Page 17 Clorox Cleanup® Double Rubs* Ecolab Disinfectant Cleaner® Double Rubs* Values are typical Betadine® 1 hr. spot test** **0= no stain 1= faint stain 2= yellow stain 3= brown stain

Durability Testing and Comparison Tested with Typical Disinfection Chemicals Picture 1: Typical Waterborne Acrylic Page 18 Picture 2: 2 K Waterborne Polyurethane

Comparison - Odor Testing “Sniff Test” Developed to Quantify a Qualitative Observation Paint or Coating Odor Value* (1= low, 5= high) 1 K Waterborne Acrylic 1 1 1 K Waterborne Acrylic 2 1 1 K Waterborne Acrylic 3 2 1 K Waterborne Epoxy A 4 1 K Waterborne Epoxy B 4 1 K Waterborne Epoxy C 4 2 K Solventborne Epoxy 5 2 K Waterborne Polyurethane based on Bayer’s HD technology 1 *values are typical Page 19

Additional Testing Quantitative Comparisons 2 K WB HD HD Latex A Technology System Theoretical VOC Gloss (60º) g/L Latex B Latex C 1 K WB Epoxy A 1 K WB Epoxy B 1 K WB Epoxy C 2 K WB Epoxy 2 4 44 40 0 155 96 96 169 6 3 2 5 7 11 28 12 12 7 100 60 9 60 60 8 9 60 10 120+ 11 13 6+ 12+ 12+ Dry Time set to touch (min) mar free (min) Sag (mils) 20 12+ 12+ *values are typical Page 20 12+

Agenda Introduction to the Problem and Technology Research and Input from Healthcare Decision Makers Durability Testing and Comparisons Summary Questions and Answers Page 21

Summary - There is a real need for a high durability architectural wall coating due to new protocols related to Hospital Acquired Infection control - Bayer has developed a two component waterborne polyurethane technology has been developed that allows for: • High durability when exposed to harsh chemicals and repeated scrubbing • Low odor during application and drying needed in a healthcare environment • Meeting aesthetic requests for eggshell finish without compromising durability Page 22

Thank you! Questions? Page 23