Your source when performance is critical O.E. Brake Shim Presentation

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1 Your source when performance is critical 2005 O.E. Brake Shim Presentation

2 Eagle Picher, Inc. Established in plants in the U.S., Canada, China, Mexico, Germany 4,100 employees worldwide Technologies Filtration & Minerals Automotive 2004 Sales $265.1 Mil. Advanced power systems Associated electronics Government / space Commercial applications 2004 Sales - $89.2 Mil. Industrial minerals Used as filter aids, absorbents, filters & soil enhancements 2004 Sales - $448.2 Mil. NVH components & assemblies Filtration products Rubber coated materials Tier 1 supplier Among top 125 North American suppliers

3 Automotive Hillsdale Division Wolverine Division Precision machined components Dampers Filtration products Knuckles Driveline products Pump components Rubber coated metal & fiberglass material and components for automotive OEM, aftermarket & industrial markets worldwide

4

5 Wolverine Global Manufacturing Capability 70 years of rubber coated metals expertise for the automotive & industrial markets 300,000 sq. ft. manufacturing space worldwide ISO / TS State-of-the-art computer controlled coating lines Unsurpassed bond integrity of rubber to metal 5 coating lines providing flexibility to support global demand

6 Wolverine Division

7 Proprietary Materials Robust Solutions 65 Different Material Composites in Production 12 Experimental Composites Active Development Application-Specific Materials Selection Steel-N Alum-N Foamet Fluoroelastomer HNBR Lamiseal

8 Wolverine Product & Material Validation Physical testing of materials Vibration damping characteristics Modal analysis Disc brake dynamometer testing

9

10 Wolverine s Global O.E.M. Brake Shim Product Line Sales 34.7 of 58.0 Million Light Vehicles 9.7 of 18.7M Units High penetration on BMW & Mercedes 7.5 of 16.0M Units 132 of 288 Models* *Based on 2003 J.D. Power & Associates Application Listing 17.5 of 20.3M Units 85% Japan / 87% Korea Majority of applications utilize Dual Isolation Material on a Single Layer of Steel Percentages = Wolverine brake shims on light vehicle sales units, by region

11 O.E.M. Disc Brake Business Model O.E.M. O.E.M. Vehicle 1 Material Spec. Approval Brake System Supplier A Brake System Supplier B Brake System Supplier C Caliper & Rotor Suppliers Cost Approval Friction 1 Friction 2 Friction 3 Friction 4 Friction Suppliers Shim A Shim B Shim C Shim D Wolverine Shim Suppliers Wolverine s Products are Consistently Chosen via a Complex Sourcing Process

12 2003 Initial Quality Survey (IQS) Results

13 Vehicle Quality Survey υ Things Gone Wrong (TGW) υ Things Gone Right (TGR) Initial Quality Study (IQS) Automotive Performance Execution and Layout Study (APEAL) Feature Contenting Report (FCR) Component Quality Reports (CQRs) υ Total Vehicle υ Focus on quality υ Total Vehicle υ Focus on design satisfaction υ Penetration, desirability, and pricing of 45 features υ Quality and design satisfaction υ Component-focused Seats Audio Brake HVAC Interior Acoustics Transmission = Focus of Wolverine Study

14 2003 Vehicle Quality Survey Initial Quality Study (IQS) TGW Brake Noise Analysis Focuses on quality Things Gone Utilized most recent data available Wrong (TGW) for the entire vehicle, Wave 2, 2003: Mar & Apr (2003) after 90 days registrants sampled in June & July Measured by problems per 100 vehicles (PP100) The industry standard for initial quality Purchased by every vehicle manufacturer Published in two waves: Full report (IQS): May 6 2nd Quarter report (2QIQS): October 21 Focused on TGW Brake Noise PP100 & Squeak / Squeal Percentage, by Make / Model included in the IQS study (see next page) EaglePicher Wolverine provided listing of all makes/models in the IQS study, that utilize O.E. Brake Shims supplied by Wolverine 132 of 288 Vehicles Utilize Wolverine Shims (46%) J.D. Power & Associates calculated results (Wolverine vs. Other), by Make/Model & reviewed results with EaglePicher Wolverine on 12/4/03

15 Brake & Handling Quality Report TGW Questions Q.13 Ride, Handling and Braking Braking-specific questions 1 Brakes Pull... to the left to the right 1 Brakes are noisy squeak/squeal groan grind Brake pedal... 1 requires too much effort 1 feels mushy/soft 1 Brakes vibrate/shudder at low speeds at high speeds in panic stops ABS light indicated a problem 1 Parking brake problem 1 Traction control system problem 1 Brakes don t have enough stopping power 1 = Focus of Wolverine Analysis

16 Vehicle Quality Survey Brake Noise Brake Noise is the 3 rd Highest Complaint in the Industry Industry Average is 3.0 PP100 (based on latest data) Only behind Wind Noise & Excessive Fuel Consumption 23% of All Problems in the Study are Related to Ride, Handling & Braking #1 Category for Things Gone Wrong (TGW) Brake Noise is the #1 Problem w/ Brake Systems in the U.S., U.K. and Germany Studies Brake Noise is the 2 nd Highest Problem At 3 Years, based on the U.S. Vehicle Dependability Study (VDS) Industry Average is 10.9 PP100 74% of all Brake Noise Problems are Squeak / Squeal Issues Which can be improved upon (or) eliminated by brake shim materials & design

17 J.D. Power & Associates 2003 IQS Results PP100 Brake Noise Worse than Industry Average Saab 19.1 Porsche 11.3 Jeep 10.7 Land Rover 7.4 Jaguar 7.4 Infiniti 6.2 Suzuki 5.5 Dodge 5.1 Pontiac 4.6 Buick 4.4 Isuzu 4.0 Volvo 3.6 Kia 3.5 Mitsubishi 3.5 Saturn 3.3 Oldsmobile 3.1 VW 3.1 At or Better than Industry Average Nissan 3.0 Mazda 2.9 Ford 2.8 Hyundai 2.7 Honda 2.6 Chevrolet 2.4 Toyota 2.4 Cadillac 2.2 Mercedes Benz 2.0 Lincoln 1.9 Acura 1.5 Subaru 1.5 BMW N.A. 1.4 GMC Truck 1.4 Mercury 1.4 Chrysler 1.2 Lexus 0.9 Hummer 0.0

18 J.D. Power & Associates Initial Quality Survey Overall improvement consistent in 2002 & 2003 J.D. Power & Associates Data Analysis Improvement in brake noise & squeak/squeal categories Vehicles That Utilize Wolverine Brake Shims Have Fewer PP100 Brake Noise Complaints

19 J.D. Power & Associates 2003 Wave 2 Vehicle Quality Survey PP100 Brake Noise Number of Vehicle Models PP100 Brake Noise Industry Average Wolverine Shims Other Shims % Improvement with Wolverine Shims 0.9 PP100

20 J.D. Power & Associates 2002 Wave 2 Vehicle Quality Survey PP100 Brake Noise Number of Vehicle Models PP100 Brake Noise Industry Average Wolverine Shims Other Shims % Improvement with Wolverine Shims 1.3 PP100 Year-Over-Year Results Are Consistent

21 Wolverine Shim Applications, N.A. Wolverine Supplies Shims To 46% Of Vehicles In North America * Top 6 OEM s in N.A. *Percentages shown represent the % of models with Wolverine Brake Shims, by OEM

22 Wolverine Shim Performance vs. Other Suppliers * *Percentages shown represent the % of models using Wolverine Brake Shims, by OEM Low PP100 Rates When Wolverine Supplies More Than 40% Of Shims

23 WOLVERINE DUAL NOISE INSULATION (Single Steel Brake Shim Material) Noise Insulation from Plate Noise Insulation from Caliper.005" ACTIVE MATERIAL (Nitrile Rubber).005" ACTIVE MATERIAL (Nitrile Rubber).015" STEEL (Constraint Layer) * Can include an additional layer of PSA.

24 Viscoelastic Material Comparison Wolverine s Active Material.010 Competitors Active Material Active Material.005 Active Material.0015 Active Material Material Interacts Directly with Noise & Vibration Elements, Improving Performance Steel Layers Interact with Much Lower Volume of Material, Limiting Performance Wolverine has over 6x the active noise reduction material compared to dual constrained layer technology

25 Wolverine s Technical Value Proposition Widest Range of Viscoelastic Materials Designed to Isolate Sound / Insulate Heat Generated During Braking Apply the Right Materials For the Right Application Integration of Shim Selection w/component Assembly Design Requirements Caliper, Rotor & Pad Assembly, Vehicle Weight, etc. Chemically Bonded Elastomer Coatings Provide Superior Durability & Corrosion Resistance Validation, Testing & Product Expertise to Resolve Specific Noise Problems System Approach Enables Wolverine s Products to Improve Vehicle Performance

26 Measuring Performance Impact of Wolverine Materials Sound Pressure Level (dba) Sound Pressure Level (dba) Sound Pressure Level vs. Frequency for all Stops Above Threshold Frequency (Hz) Brake noise testing without Wolverine materials Sound Pressure Level vs. Frequency for all Stops Above Threshold Forward Reverse Drag Decel Forward Reverse Drag Decel Frequency (Hz) Brake noise testing with Wolverine materials

27 Technical Benefits Variety of Tuneable Solutions for Multiple Problems Environment Wolverine Solution Representative Material Real World Application MS Hyundai Santa Fe Extreme Cold Temperature MS Jeep Grand Cherokee Cold Temperature MS Lincoln Navigator Multi-Temperature

28 The Solution Your source when performance is critical

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