Steve Cox National Sales Manager

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1 Latin America DEF Market Overview Steve Cox National Sales Manager

9.08 lbs/gallon Freezes/Crystallizes at 12 F not affected by freeze / thaw cycle Degrades at constant temperatures around 90 F where free ammonia is released & concentration affected

2 A Chemical Being Used in the Petroleum Industry What is DEF? 32.5% high h purity urea (automotive ti grade) w/ limitations it ti of 31.8% to 33.2% 67.5% deionized water (DI has mineral ions removed making it a strong solvent & aggressive on equipment) Manufactured, packaged & handled to AUS 32, ISO & API Specifications Weight: 9.08 lbs/gallon Freezes/Crystallizes at 12 F not affected by freeze / thaw cycle Degrades at constant temperatures around 90 F where free ammonia is released & concentration affected Will not separate Corrosive Crystallizes when it comes into contact with air Creep DEF is 1.8 times more searching than water & air is 3 times more than water All DEF manufactured to the required specifications is the same

3 NOT a fuel NOT a diesel fuel additive NOT a fire hazard NOT a health hazard NOT regulated by the EPA What DEF Is NOT?

4 Various DEF Production Methods Virgin Hot Urea melt process from Nitrogen Complexes 13 facilities in North America Cleanest, purest form of production starts w/ /Nat Gas, synthesize Ammonia, convert to Urea, AddP Pure Water without ih having to handle, move or store the raw material Large scale batches & production can be done Most facilities have on site ISO certified laboratories Dissolving Prill Can be done almost anywhere (as long as proper water, tank & handling equipment are in place) High touch process Not all Urea is the same only a handful of plants in the US produce the qualified prill required Dilution of Liquor Concentrate (Between Dissolving & Dilution 80 facilities in North America) Transporting higher concentrations of Urea liquor reduces freight costs Investments can be relatively costly (i.e. DI water) scalability can be a challenge High concentration DEF grade Urea liquor is available at only a few plants in North America

7 Contaminants in DEF & The Result

8 OTC 5025 Misco

9 Euro-V equivalent emission standards are enforced at present in Brazil, Chile and Argentina Emission standards timeline: medium and heavy-duty vehicles There are five countries in Latin America that have imposed emission standards that require the use of DEF by certain vehicle segments and weight classes. These are Brazil, Chile, Argentina, Colombia and Mexico. The most advanced countries in terms of emissions legislation are Brazil, Chile and Argentina, all with emission standards equivalent to Euro V enforced at present (shown below). In Mexico and Colombia, DEF consumption is restricted to buses in major urban centres, such as Mexico City and Bogota DC. Equally, there is some DEF consumption by international truck fleets that are required to travel into countries with stricter emissions legislation. There is, however, stricter legislation expected to be introduced in Mexico and Colombia, as well as Brazil, that will boost DEF consumption in these countries. Details of this upcoming legislation can be found on the next slide. Implementation date of emission standards that require the use of DEF Country Implementation date Argentina Jan-18 Brazil Chile Colombia Jan-12 Oct-15 Jan-19 Mexico Jan-18 New registrations Mexico EPA 2004 / Euro IV EPA 2010 / Euro VI Brazil P-5 P-7 P-8 Chile Euro III / US 1998 Euro IV/US 2004 Euro V / US 2004 / US 2007 (PM) Argentina Euro IV Euro V Colombia Euro II / EPA 1996 Euro IV Euro V Ecuador Euro III/US 1998 Peru Euro III/US 1998 Source: ICCT, Integer INTEGER LATIN AMERICA DEF MARKET OVERVIEW SEPTEMBER 2017 (PREPARED FOR KLEERBLUE) PAGE 9

10 Mexico will have the most stringent emission standards in Latin America if EPA 2010/Euro VI standards are imposed as scheduled in January 2018 Upcoming emission legislation in Latin America In the next five years, the most significant developments in emission standards in Latin America are scheduled to occur in Mexico, Colombia and Brazil. In Mexico, the government has passed legislation to mandate all new medium and heavy-duty vehicles to comply with either EPA 2010 or Euro VI from January 2018 onwards. This means skipping the interim Euro V/EPA 2007 standards, imposed at present in Brazil, Chile, and Argentina. This legislation may be subject to delay as Euro-VI grade diesel fuel (<10ppm sulphur) is reported to be limited in its availability nationwide, however no delays have been announced. The Colombian Ministry of Environment plans to implement Euro V standards by January Euro V standards already apply to urban buses used in Bogota, the capital city. The new legislation will apply to all new registrations of medium and heavy-duty vehicles, as well as urban buses in Medellin. In March 2017, the Brazilian Environmental Council was reported to be developing P-8 emission standards, equivalent to Euro VI, for medium and heavy-duty vehicles. A final proposal for these new standards is expected to be approved in 2018 with a possible implementation date expected in New registrations Mexico EPA 2004 / Euro IV EPA 2010 / Euro VI Brazil P-5 P-7 P-8 Chile Euro III / US 1998 Euro IV/US 2004 Euro V / US 2004 / US 2007 (PM) Argentina Euro IV Euro V Colombia Euro II / EPA 1996 Euro IV Euro V Ecuador Euro III/US 1998 Peru Euro III/US 1998 Source: ICCT, Integer INTEGER LATIN AMERICA DEF MARKET OVERVIEW SEPTEMBER 2017 (PREPARED FOR KLEERBLUE) PAGE 10

11 Integer estimates that 80 million gallons of DEF were consumed in Latin America in 2016 DEF consumption by country, Million gallons of DEF Brazil Argentina Chile Mexico Colombia Forecast y-o-y growth in DEF consumption by country Country Y-o-y growth in 2017 Y-o-y growth in 2018 Million gallons % Million gallons Argentina % % Brazil % % Chile % % Colombia % % Mexico % % % Integer forecasts that DEF consumption in Latin America will reach 88 million gallons in The majority, 72%, is expected to be consumed in Brazil. The fastest growing DEF markets are in Argentina and Chile each expected to grow by over 20% y-o-y, equivalent to approximately 2 million gallons y-o-y. 0 Source: Integer INTEGER LATIN AMERICA DEF MARKET OVERVIEW SEPTEMBER 2017 (PREPARED FOR KLEERBLUE) PAGE 11

12 There is double-digit growth y-o-y forecast to occur in all five countries in 2018 DEF consumption by country, year-on-year change ( ) 2018) Million gallons of DEF Brazil Argentina Chile Mexico Colombia 1.7 Source: Integer INTEGER LATIN AMERICA DEF MARKET OVERVIEW SEPTEMBER 2017 (PREPARED FOR KLEERBLUE) PAGE 12

13 Summary of Ecuador & Peru DEF Programs Ecuador Ecuador introduced Euro II standards for heavy duty vehicles, and Euro 1 equivalent regulations for passenger car and light duty vehicles, in Fuel quality in the country is an impediment to further development of emissions standards. d Average fuel sulphur content t is 5,000 ppm, with 250 ppm available in Quito and Cuenca. We understand that certain local authorities have taken steps to renew their public bus fleets with Euro III vehicles, however the lack of low sulphur fuel prevents the introduction of SCR equipped vehicles. As such we do not believe DEF consumption of any notable scale is likely in the medium term to Peru Euro IV standards were introduced in 2016, requiring diesel with a sulphur content of 50 ppm or less. We understand that 50 ppm fuel is available in Lima and other major urban centres, with sulphur limits introduced in 2012, however a lack of nationwide supply has meant that regulations have not been enforced. A project to upgrade domestic refinery capacity was not finalised and it is difficult to see comprehensive coverage of low sulphur diesel in the medium term to Therefore we understand there is no DEF consumption of any notable scale in Peru, now and over the next few years. For both countries, we understand Euro III or US 1998 are currently required. INTEGER LATIN AMERICA DEF MARKET OVERVIEW SEPTEMBER 2017 (PREPARED FOR KLEERBLUE) PAGE 13

14 DEF Distributor Storage Tank & Pumping Solutions Bulk Poly Storage Tanks Inside or Outside 2 Wheel Portable Transfer Carts 4 x 4 Portable Transfer Skids Gas Pump/Electric Pump with Gas Generator/Hydraulic Pump Tote(s) or Horizontal/Elliptical Poly Tanks for Transporting High Speed Transload Carts or Platforms

15 Drum & Tote Dispensing Equipment Gravity Dispensing Kits Hand Pump Kits 4 Wheel Portable Cart Air & Electric Drum/Tote Pump Packages Tote Bottom & Top Manifold Packages

16 Tote Pumps & Hose Reels 1025 Gallon Poly Horizontal Tank w/ Tote Pump Supplying Remote Hose Nearby Mandoor Access 330 Gallon IBC Tote w/ Tote Pump Supplying Remote Hose Nearby Access Door 330 Gallon IBC Tote w/ Tote Pump Supplying Custom Mounted Hose Reel

17 330 Gal Tote w/ Submersible Pump Supplying Remote Hose Reel Manifolded to 2 Other Totes Supplying Remote DEF Dispensers Installed in Tote Enclosure Supplying Retail DEF Dispenser Supplying Top Mounted Hose Reel

18 Basic & Commercial Dispensers Warm or Cold Climates Inside or Outside

19 Electronic Dispensers Fleet or Retail Warm or Cold Climates Inside or Outside Regal Fleet Regal Retail APEX Fleet APEX Retail

20 Fleet or Retail Dispensers Mounted On Mini Bulk Tanks Regal Fleet Island Oriented on 400 Gallon Mini Bulk Warm Climate APEX Fleet Lane Oriented on 1000 Gallon Mini Bulk Warm or Cold Climate Regal Retail Island Oriented on 1000 Gallon Mini Bulk Warm Climate APEX Retail Island Oriented on 400 Gallon Mini Bulk Warm Climate

21 Single & Dual Tote Enclosures Insulated, Heated & Ventilated

22 Poly Tank Solutions Supplying Nearby or Remote DEF Dispensers

23 Portable Tank & Dispensing Systems (PTDS) 50 or 100 Gallon Units 230 Gallon Unit

24 Larger Storage & Dispensing Solutions Bulk Poly Tanks up to 16,500 Gallons Bare or Insulated/Heated 2000/2600 Gal Deluxe Cabinet 2000/2600 Gal Ultra Cabinet 7100 Gal Cabinet

Steve Cox National Sales Manager Cell (812) 228 6966 or (800)

25 Steve Cox National Sales Manager Cell (812) or (800) ,x5

Your Total DEF Storage & Dispensing Equipment Solution

Your Total DEF Storage & Dispensing Equipment Solution Steve Cox, National Sales Manager scox@separationbydesign.com www.kleerbluesolutions.com Cell (812) 228-6966 Comprised of SBD & MEI Partnership In