PC-11 Category Update. Fran Sciacchitano, Infineum USA February 28, 2017 Dallas, TX

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1 PC-11 Category Update Fran Sciacchitano, Infineum USA February 28, 2017 Dallas, TX

2 PC-11 Introduction Heavy Duty Diesel Market Update PC-11 Introduction Driven by the need to meet emissions regulations and OEM requirements PC-11 is a new performance category for heavy duty diesel engine oils designed for use in modern diesel engines produced in North America for 2017 Heavy Duty Diesel OEMs require improvements in lubricant performance to enable new engine designs to meet emission regulations The American Petroleum Institute (API) will introduce two new service categories corresponding to PC-11 API CK-4 is for conventional viscosity engine oils providing enhanced performance in current and future engine designs these engine oils are back serviceable API FA-4 is a new designation for lower viscosity heavy duty diesel engine oils that deliver greater fuel economy and reduce greenhouse gas emissions (GHG)

3 PC-11 Performance Benefits Heavy Duty Diesel Market Update Improved Engine Oil Oxidation Protection New engine design strategies for some original equipment manufacturers will result in engines operating at higher temperatures and the need for greater oxidation protection Improved Oil Aeration Control To protect bearing from wear due to cavitation and in applications where the engine oil serves as an hydraulic fluid, improvements in oil aeration are required Improved Fuel Economy When used in conjunction with modern diesel engines and the recommendations of the original equipment manufacturer, API FA-4 will provide increased fuel economy over conventional heavy duty diesel engine oils T-13 Engine Oil Aeration

4 PC-11 Market Demand Heavy Duty Diesel Market Update API licensing of API CK-4 and API FA-4 started on December 1, 2016 Several North American original equipment manufacturers (OEMs) introduced their own specifications with slightly different requirements than the API CK-4 and API FA-4 Demand for API CK-4 engine oils is uncertain The expectation is as equipment owners purchase model year 2017 engines starting in January 2017, they will require the use of API CK-4 engine oils API CK-4 will provide advantages in older engines especially those engine designs that have been reconfigured in recent years to increased output and thereby run hotter Demand for API FA-4 engine oils is expected to be very limited Slow transition to API FA-4 oils likely Several OEMs are still evaluating the impact of these lower viscosity fluids in their new engine designs and until completed they will be very cautious about recommending the use of API FA- 4 oils in newer equipment Not back serviceable The inability to use these engine oils in older equipment will further impact demand for the next several years Low fuel prices reduce fuel economy incentive

5 API CK-4 versus API FA-4 API CK-4 API FA-4 Suitable for use in older and newer engine designs Intended for modern engine designs to improve fuel economy Back serviceability with API CJ-4 and most older engine oil qualities Limited back serviceability follow OEM recommendations Available in XXW-40 and XXW-30 viscosity grades Only available in XXW-30 viscosity grade Improved oxidation protection and aeration control Improved oxidation protection and aeration control

6 PC-11 Performance versus API CJ-4 Source: Infineum USA L.P.

7 OEM Specifications and Recommendations* OEM API CJ-4 API CK-4 API FA-4 Cummins CES CES CES Detroit Diesel DFS 93K218 DFS 93K222 DFS 93K223 ** Mack Mack EO-O PP Mack EOS-4.5 Volvo Volvo VDS-4 Volvo VDS-4.5 Caterpillar ECF 3 and 15W-40 API CK-4 and 15W-40 Navistar API CJ-4 API CK-4 API FA-4 PACCAR API CJ-4 API CK-4 API FA-4 GM (Duramax 6.6L) API CJ-4 API CK-4 Ford (Power Stroke 6.7L) WSS M2C171-E *** WSS M2C171-F1 * OEM Factory Fill viscosity grades are shown in the table under specification. ** Detroit Diesel Factory Fill for DD13, DD15 and DD16 engines is FA-4. FF for medium duty DD5 and DD8 has not been communicated. *** Ford s requirements for WSS M2C171-E were identical to API CJ-4. WSS M2C171-F1 has some additional requirements to API CK-4.

8 OEM Oil Drain Intervals* Cummins Detroit Diesel Mack/ Volvo OEM Service API CJ-4 API CK-4 Light (> 6.5 MPG) 40,000 50,000 up to 80,000 with OilGuard Normal ( MPG) 30,000 35,000 Severe (< 5.5 MPG) 20,000 25,000 Efficient Long Haul (>7.0 MPG ) -- 75,000 (DD15) / 65,000 (DD13) Long Haul (>6.0 MPG ) 50,000 60,000 (DD15) / 55,000 (DD13) Short Haul ( MPG ) 35,000 45,000 (DD15) / 40,000 (DD13) Severe (<5 MPG ) 25,000 35,000 Line Haul ( MPG) 45,000* 55,000 Regional Haul ( MPG) 35,000* 40,000 Heavy Haul ( MPG) 25,000 30,000 Caterpillar Application Specific Application Specific Navistar PACCAR Light (> 6.5 MPG) 40,000 40,000 Moderate ( MPG) 30,000 30,000 Severe (<5.0 MPG) 18,000 18,000 Normal, <20% Idle 60,000 75,000 Normal, > 20% Idle 50,000 Severe 30,000 GM (Duramax 6.6L) 7,500** Ford (Powerstroke 6.7L) 3,000 10,000** * Refer to OEM service literature for official oil drain details **Idle >30%, use next shorter ODI *** Follow Oil-Life Monitor

9 SIGNIFICANCE OF API FA-4

10 A Closer Look at API FA-4 Engine Oils

11 Understanding HTHS Viscosity High Temperature High Shear Rate Viscosity (HTHS) Oil resistance to flow at high temperature under high load/pressure Similar to environment that exists in journal bearing (contact between crankshaft and connecting rod, measured at 150 C Reduced risk of metal to metal contact and wear Negative impact on fuel economy Higher risk of metal/metal contact and wear Positive impact on fuel economy

12 API FA-4 Oils Increase Fuel Economy API FA-4 API CK-4 15W-40 API CK-4 The lower High Temperature High Shear Viscosity drives fuel economy benefits in diesel engines

13 Drive Cycle Effects Fuel Economy Oil 1 Oil 2 Drive cycles that contain more time at idle obtain better fuel economy from the lower viscosity

14 Simple Explanation for Customers Kinematic Viscosity 16.3 cst High Temp High Shear Viscosity XW-40 API CK cst 9.3 cst XW cp 3.2 cp 2.9 cp API FA cst XW-20 Within the viscosity range of, API CK-4 oils have a slightly higher viscosity than API FA-4 oils

15 QUESTIONS?

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