Introduction to Abradable Powder Coatings

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Introduction to Abradable Powder Coatings June, 2017 Distribution, quotations and duplications in any form is only permitted upon prior written consent of Line2Line, Inc. The information and opinions in this report were prepared by Line2Line, Inc.

2 Company Background We introduced Abradable Powder Coatings in 2000 (automotive) Low cost geometric refinement and efficiency improvement for powertrain components (fit and sealing) ISO 9001-2008 Registered, Global, Tier 2 Automotive Supplier Over 16 million powertrain components to date. Zero defects Located in Clarkston, MI Two Patents in USA & other key global locations We offer a Rainbow of Black Coatings proven in various applications Expertise in formulation, prototyping and high volume application

APC is rough / fuzzy as applied. Wears in to the shape of the mating surface upon initial operation. Lasting geometric refinements of components improve fit, efficiency and durability. Applications lubricated/dry, hot/cold, sacrificial/permanent Prior to Break-In Magnifications ~150X After Break-In Initially- surface texture provides quick wear-in, followed by asymptotic decline in wear rate Long term - ideal tribological surface has: polished plateaus (Low RpK) random crevices (High RvK) 3

Value Fundamentals of APC - A Perfect Fit Every Time Improves efficiency Lifelong geometric improvement to components (typical thickness 20µ to 200+µ) Build devices tight causing light interference fit Final geometry laps in during initial operation Eases challenges - tolerancing, stack-up, thermal expansion Reduces clearances Cuts NOISE Reduces friction - stabilizes oil film Eliminates scuffing Economical, scalable powder coating process Environmentally friendly 4

5 Holset HD Diesel Turbocharger Rotor cuts perfect seal shape during operation Improves fuel economy Economical retrofit Photos after 150K miles

6 Throttle Response - Abradable Seal Photos 150,000 miles on coating Driver perceived better throttle response Driver reported significant mpg savings on known route & load over 1.5 years All tips evenly polished Rotor bedded into thick coating Convenient retrofit improvement

7 Pumps Higher pressure at low RPM Lower friction Debris tolerant Longer life Manufacturability Remanufacturing Restoration

8 Blowers/Compressors Improve volumetric efficiency Reduce friction and heating Extends peak performance Refurbish / retrofit

9 APC has been a Huge success on Pistons Race market > 3300 Engine Jobs to date. 30-40% annual growth for 5 years via word of mouth Drag race, circle track, endurance, tractor pull Gas, alcohol, diesel, JP8, nitromethane Remanufacturing Licensed UEM & USC & L2LSE Advanced engine development Next Gen Combat, Small Engines, Stationary Power Specified in drones, passenger aircraft Restoration of used pistons Not a band aid Better performance and durability

Severe duty piston pictures LSX Corvette 800 hp drift race engine After 1 year ~ 400 hrs @ 7000+ rpm Unexpected excellent skirt condition Unexpected excellent ring condition Rod bearings also surprisingly great Former Don Garlitz and Roush NASCAR engine builder 1600 hp alcohol truck pull Nat. Champ After Dyno + 25 pulls (piston cracked) Unexpected excellent condition Best ever pan vacuum Unexpected excellent skirt condition Unexpected excellent ring condition 10

11 How it works on Pistons Improved Fit Build it too tight APC hones piston to the ideal fit for EACH bore Reduces secondary motions in rotating group Improves ring flutter, seal & life Reduces slap, noise Permanent geometric refinement Improved Friction Creates optimum, stable oil film across entire skirt Break-in event seeks minimum friction per Stribeck diagram Enlarges contact area to spread load & lengthen oil leak path Tolerates foreign debris Stays- long term scuff resistance

12 Secondary motion of pistons is critical for piston ring longevity Rock causes rings to work harder, flutter more, seal less. Rock requires larger crevice volume Rock can pump oil around the rings APC Stabilizes Piston, Keeps rings square to bore APC enables reduced ring tension for lower piston assembly friction APC reduces volume of oil rings must handle

New formulations far exceed oil temperature range 13

New formulations for lower friction on boundary lubrication conditions 14

15 Thank you for your interest Bonus slides on Pistons follow

16 In an operating engine APC will find and preserve the lowest friction piston geometry for each bore 1. Build tight across entire skirt. At start-up, rapid, friendly wear-in O 2. Self fitting - Oil film forms and wear rate asymptotically declines 3. Locked-in geometry - When there is just enough room for a stable oil film, the wear stops 4. APC Piston has: a) minimized secondary motion b) minimum oil film thickness for lowest friction c) no boundary lubrication Surplus Oil Turbulence Losses Final shape is determined at temperature, under load. Friction, wear, and secondary motions of the rotating assembly are minimized. Engine efficiency and durability are enhanced. APC plateaus are polished, so a VERY THIN oil film can prevent asperity contact.

17 Reduces Peak Loads and Prevents Scuffing APC redistributes load to adjacent areas Enables stiff architecture to achieve the perfect fit with no risk of scuffing Scuffing Epidemic Cured Outlaw 358 Sprint Engines After duty cycle, highly loaded, scuff prone area is visible

18 Rotating Group Benefit - Bearing Life Visual Engine Parts Comparison After 2500 Miles Racing OEM Liquid Coated Engine APC Coated Engine Typical Failure Mode Delayed Onset Reduced Shock Loads Preserve Bearings

19 14.7L Cummins Diesel Engine over 400k miles and still low oil consumption NTC-300 855 CI (14.7 L) Cummins Gen III 400HP diesel Over 400k miles on in frame rebuild using coated pistons and fresh liners. After rebuild oil consumption reduced by 50%

APC In A Chain Saw Engine - Vibration 20

APC In A Chain Saw Engine - Noise 21