The topic of exhaust emission regulation and reduction is extremely complex. In order to comply with the permissible emission values, increasingly

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1 READY? We are!

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3 By way of numerous patents and INNOVATIONS, we at DEUTZ have played a definitive part in co-determining the development of the modern diesel engine, and as a result have always been a step ahead with our engines of the future. By complying with the emissions standard EU Stage V for mobile work machinery, we are continuing this tradition and have already met a challenge that lies ahead for the industry from 1 January 2019 onwards. Compact engines with high power density, low consumption and an intelligent exhaust gas post-treatment system that assures compliance with the prevailing emissions standard the demands on the engine manufacturer have steadily increased over the past few years. Against the backdrop of increasingly stringent emissions legislation, the efficiency and the emission values of the engines are being gradually optimised, and have already reached a level that some years ago still appeared unattainable. Currently, the focus is on compliance with EU Stage V which is to be effective from 1 January 2019 onwards. This will reference the current status* to stipulate a reduction in the current 25 mg/kwh particle mass limit to 15 mg/kwh and introduce a particle concentration limit of / kwh. The more stringent values must be attained by way of targeted optimisation and the introduction of new technologies. This involves both engine-internal solutions, such as improved fuel injection, and post-treatment of exhaust gases. While developing our engines for the currently applicable emission level Tier 4, we at DEUTZ have already looked to the future and can already offer our customers engines with a capacity ranging from 2.9 to 7.8 litres that comply with future threshold values by deploying a diesel particle filter BECAUSE OUR ENGINES ARE ALREADY STAGE V-READY! * according to a proposal of the EU Commission issued on 25 September

4 The topic of exhaust emission regulation and reduction is extremely complex. In order to comply with the permissible emission values, increasingly far-reaching measures are required in terms of engine design as well as in fuel injection, combustion and charging technology. Likewise, the deployment of exhaust gas post-treatment methods is required. 4

5 US Tier 1 EU Stage I US Tier 2 EU Stage II NO x Particle US Tier 3 EU Stage III A US Tier 4i EU Stage III B US Tier 4 EU Stage IV Zero emissions as of 2019 EU Stage V Now that we have successfully implemented the preliminary steps specific to European and US emission reduction, we are turning our attention to the emissions standard EU Stage V for mobile work machinery anticipated in Europe from January 2019 onwards. EU Stage V stipulates (on the basis of the proposal of the EU Commission on EU Stage V issued on 25 September 2014) reduction of the current 25 mg/kwh particle mass limit to 15 mg/kwh and is to introduce a particle concentration limit of /kwh. This regulation is expected to be finalised at the beginning of The fundamental philosophy of DEUTZ: We introduce changes in engine design and complexity only where they are necessary in order to secure realisation of statutory or customer-specific requirements. In this process, we do not lose sight of the efficiency and reliability of the diesel engine. 5

6 Another decisive advantage accruing to our customers consists in the high level of product maturity, which we draw upon with our engine systems because with our eyes on Stage V, we have deliberately paved the way for the future with closed filter systems. As it currently stands, the industry is assuming the introduction of a particle concentration limit within the parameters of Stage V that can only be observed with the use of diesel particulate filters. This system is already available in the serial production of all Stage-V-ready engines, with customers thus receiving secured technology. The DPF is integral to the DVERT (DEUTZ Variable Emissions Reduction Technology) modular system. Virtually all elements of this exhaust gas aftertreatment module can be combined with one another in order to ensure the desired outcome in terms of engine capacity, compliance with emission limits and competitiveness. The basic components of the module are the diesel oxidation catalyst (DOC), diesel particulate filter (DPF) and selective catalytic reduction (SCR). While the DOC focuses on reduction of particle mass, the DPF reduces the actual number of particles. Due to limits imposed by Stage V on the number of particles, the DPF is indispensable to compliance with standards. The SCR system with urea metering ultimately reduces NOx to the desired level. 6

7 Development of emission standards for mobile machinery in Europe and USA Particle [g/kwh] 10 0,9 0, till 2015: Reduction particle emissions: 96.5 % Reduction NOx: 95.7 % 0,7 0,6 US Tier 1 / EU Stage I kW , ,4 0,3 0,2 0,1 US Tier 3 / EU Stage III A kw US Tier 2 / EU Stage II kw , NOx (+ HC) [g/kwh] US Tier 4 / EU Stage IV kw US Tier 4 interim/ EU Stage III B 56 (37) kw 7

8 THE NEXT GENERATION TCD 2.9 TCD 3.6 TCD 4.1 8

9 The DEUTZ engines for Stage V span a performance range of 45 to 291 kw. We thereby offer our customers definitive advantages: Deployment of a Stage V-ready engine gives them extended certainty specific to planning for their applications, since even after the change in emissions levels in 2019, our engines will remain identical in terms of size and the design of all components. Expensive adaptation of customer equipment will, therefore, not be necessary. Furthermore, so-called emission downgrade engines will also continue to be available for deployment in less stringently regulated markets, such as China. This gives DEUTZ customers the option of using an engine platform comprehensively and thus significantly reducing outlay on implementation. Since our Stage V-ready engines are already available, we also offer our customers an extremely flexible time frame for implementation. TCD 6.1 TCD 7.8 9

10 international: DEUTZ AG Ottostr Cologne, Germany Phone: +49 (0) Telefax: +49 (0) info@deutz.com DEUTZ Corporation 3883 Steve Reynolds Blvd. Norcross, GA 30093, USA Phone: Telefax: engines@deutzusa.com DEUTZ (Beijing) Engine Co., Ltd CITIC Building 19, Jian Wai Dajie Beijing , China Phone: Telefax: dbj@deutz.com.cn DEUTZ Asia-Pacific (Pte) Ltd. 10 Gul Crescent Singapore Phone: Telefax: / dap@deutz.com DEUTZ Australia Pty. Ltd Unit 4, Brough Street Springvale, Victoria 3171, Australia Phone: Telefax: deutzoz@deutz.com