KEPITAL LOF Grade. (Low Emission POM for Automotive Interiors) R&D Center

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KEPITAL LOF Grade (Low Emission POM for Automotive Interiors) R&D Center

Contents 1. Global VOC Standards Impact U.S. Tier Suppliers - 3 page 2. KEPITAL LOF POM Characteristics and Benefits - 3 page 3. Evolution of Automotive Cabin Air Regulations & Guidelines - 4 page 3.1 ISO 12219 Standard Impacts Auto Interior Emissions 3.2 Regulatory Criteria for Automotive Air Quality by Country 3.3 OEM Component Specifications for Formaldehyde Levels 4. Advanced KEPITAL LOF Products for Auto Interior Components - 8 page 4.1 History of KEPITAL LOF POM Technology 4.2 Broad Portfolio of KEPITAL LOF POM Grades 4.3 Market Trends for Low VOC Automotive Interior Materials 4.4 KEPITAL LOF POM Performance vs. Automotive Requirements 4.5 Optimized Processing Yields Lowest Emission Levels 4.6 KEPITAL LOF Automotive Interior Applications 5. Summary - Benefits of KEPITAL LOF POM - 12 page - 2 -

1. Global VOC Standards Impact U.S. Tier Suppliers (1) Global Platforms produced by U.S. OEMs (Ford and GM) must meet country regulations in Korea and China (2) Vehicles exported to Korea and China will likely be required to meet strict local emission regulations in the future (3) Global OEMs in the EU (VW, Audi and BMW), and in Asia (Toyota, Nissan, Hyundai and Kia), apply their corporate standards worldwide (4) KEPITAL LOF low emission POM meets the most stringent global auto interior VOC standards If you supply parts or components to global OEMs, or to U.S. OEMs with global platforms, you need to meet global VOC standards. 2. KEPITAL LOF POM Characteristics and Benefits KEPITAL LOF POM Series (1) Minimizes VOC emission levels (2) Improves automotive interior environments, and can be used in Sanitation and other Industries requiring low emissions. (3) Significantly reduces emissions, while maintaining the inherent properties of POM Including high rigidity, wear resistance and durability. The KEPITAL LOF POM advantage : You get lower emissions and great performance. - 3 -

3. Evolution of Automotive Cabin Air Regulations & Guidelines Low emission standards for countries and automotive OEMs 1970 1980 1990 2005 2007 2012 Germany VW (1978) Car Cabin Air Quality Study Germany (1981) VOCs Report TOYOTA (1991) VOCs Report KOREA (2005) VOCs Report TOYOTA (2007) Declared Standard Global Standard (2012 ~ ) CARB VOCs Study JAMA (2005) Test Methods Germany DIN (2005) Declared Test Standard CHINA (2012) Declared Standard OEMs and countries worldwide are improving automotive interior air quality. - 4 -

3.1 ISO 12219 standard impacts auto interior emissions ~ 50 m 3 0.5 ~ 4 m 3 0.01~ 0.5 m 3 10 L 1L ~ few cm3 ISO Method 12219-1 12219-4 12219-5 12219-2 12219-3 Cabin Air Module Component Part & Raw Material Whole Vehicle Chamber Small Chamber Static Chamber Bag Method Micro-scale Chamber ISO enacted specific test standards for auto interior components, parts and materials. - 5 -

3.2 Regulatory criteria for interior automotive air quality by country www.kepital.com ( Unit : μg / m3 ) Country Formaldehyde Benzene Toluene Xylene Ethyl benzene Styrene Acrolein KOREA 210 30 1,000 870 1,000 220 50 JAPAN 100-260 870 3,800 220 - EUROPE 60 5 200 30 - CHINA 100 110 1,100 1,500 1,500 260 - KEPITAL LOF POM meets the most demanding guidelines and regulations for formaldehyde emissions. KOREA CHINA U.S. EU Supervision Government Government *SAE J2989 VDA Regulations Recommendation Enforcement Date July 2010 ~ Date of VOC Evaluation Within 4 weeks after production Guideline The regulation will be published in 2016 Being developed Proposal for test draft TUV Guide lines - - - - Test Procedure Stabilizing 12 hours, 25 Ventilation Test 30 minutes Seal the car for 2 hours, 25 sampling 6 hours, 25 Seal the car for 16 hours, 25 sampling Study to determine VOC test method - (21 ) * SAE J2989 : Handling & Packing Materials and Components for Emission Testing KEPITAL LOF POM meets the most demanding emission guidelines and regulations. - 6 -

3.3 OEM component specifications for formaldehyde levels Company Specification Formaldehyde Method HMC/KIA 210 μg / m3 MS 300-55 GM / GM Korea BMW VW AUDI 8 mg / kg 2 mg / kg 5 mg / kg GMW 15635 (VDA 275) AA-0061 (VDA275) PV 3925 (VDA 275) FCA VOLVO 10 mg / kg VDA 275 STD 1027, 2713 (VDA 275) NISSAN 30 ~ 500 μg / m3 NES M0402 OEM apply a variety of VOC standards, KEPITAL LOF POM meets every one of them. - 7 -

4. Advanced KEPITAL LOF Products for Auto Interior Components 4.1 History of KEPITAL LOF POM technology 2002 Introduced Low Formaldehyde emission KEPITAL LOF 2002 Began mass production of KEPITAL LOF 2003 Granted a patent for KEPITAL LOF 2004 Introduced 2 nd generation KEPITAL LOF For automotive interior components 2007 Granted a patent for 2 nd generation KEPITAL LOF KEPITAL LOF POM has a proven track record backed by unique patented global technology. 4.2 Broad portfolio of KEPITAL LOF POM grades Class. KEPITAL LOF Grades VDA275 Test result ( mg / kg ) Standard (Unfilled) F10-03H LOF, F25-03HT LOF 1.5 F20-03 LOF, F30-03 LOF 1.0 UV- Stabilized Impact Modified Wear Resistant F20-52 LOF, F30-52 LOF, F20-52G LOF, F30-52G LOF TE-21 LOF, TE-22 LOF, TE-23 LOF, TE-24 LOF, TE-25 LOF, TE-33 LOF, TE-22S LOF, TE-23S LOF, ST-30 LOF, ST-50 LOF TX-11H LOF, TX-21 LOF, TX-31 LOF, TS-22H LOF, TS-25A LOF, NX-20 LOF 2.0 2.0 2.0 All KEPITAL LOF POM grades meet global OEM requirements. - 8 -

Emissions by VDA 275 ( mg / kg ) www.kepital.com 4.3 Market trends for low VOC auto interior materials 10 Europe Target 5 New Target 0 KEPITAL LOF POM Grades Nominally 2.0 mg / kg KEPITAL LOF POM meets the most rigorous Gen. 2 OEM emission standards. 4.4 KEPITAL LOF POM performance vs. auto requirements (1) Automaker requirements Maker VDA 275 ( mg / kg ) VW 5 (natural, black) Audi 5 (natural, black) FCA 10 (natural, black) Volvo 10 (natural, black) (2) KEPITAL F20-03 LOF formaldehyde emission level VDA 275 test method 10 9 8 7 6 5 4 3 2 1 0 VW/Audi Spec. Natural Black F20-03 LOF 40m 50ml H 2 O KEPITAL LOF POM grades meet global OEM emission requirements. - 9 -

F-gas emission ( mg / kg ) F-gas emission ( mg / kg ) www.kepital.com 4.5 Optimized processing yields the lowest emission level Molding Conditions Temp, Drying Optimized Conditions for BEST Quality Recycle Coloring M/B 20 16 12 8 4 20 LOF Standard POM 16 LOF Standard POM 12 8 4 0 375 390 410 430 Injection molding temperature (ºF) 0 0 1 2 3 4 5 Re-generation No. KEPITAL LOF POM gives you a broad processing window for consistent quality. - 10 -

4.6 KEPITAL LOF POM automotive interior applications Safety Belts F10-03H LOF F20-03 LOF F20-52 LOF TE-24 LOF TS-25A LOF ST-50 LOF Height Adjustors F10-03H LOF TX-31 LOF D-Ring F10-52D LOF HVAC F20-03 LOF FG2020L LOF Fasteners & Clips F20-03 LOF TE-21 LOF TE-22 LOF TE-23 LOF TE-24 LOF TE-23S LOF KEPITAL LOF POM is being successfully applied in a variety of global interior applications. - 11 -

5. Summary Benefits of KEPITAL LOF POM 1. Gives you low emissions and the great performance of KEPITAL copolymer POM. 2. Provides a wide processing window for consistent quality. 3. Is an established product with a proven track record of successful applications backed by unique patented global technology. 4. Our broad portfolio meets all global OEM low emission requirements, including demanding Gen. 2 levels. If you supply parts or components to global OEMs, or to U.S. OEMs with global platforms, you need KEPITAL LOF low emission POM. - 12 -

HQ Mapo-daero 119 (Gongdeok-dong) Hyeoseong Bldg. Mapo-gu, Seoul, Korea Tel 82-2-707-6840 ~ 8, Telefax 82-2-714-9235 KEP Americas 106 North Denton Tap Road Suite 210-202 Coppell, TX 75019, USA Tel +1 888 KEPITAL, Telefax +1 888 537-3291 KEP Europe GmbH Rheingaustrasse 190-196 D-65203 Wiesbaden, Germany Tel +49 (0)611 962-7381, Telefax +49 (0)611 962-9132 KEP China A1905, HongQiao Nanfeng Plaza, 100 Zunyi Road, Shanghai, China Tel +86 21 6237-1972, Telefax +86 21 6237-1803 Disclaimer: The information contained in this data sheet is based on our current knowledge and experience, so it may change as new knowledge and experience becomes available. This information is based on only abovementioned product produced in Korea Engineering Plastics Co., Ltd. ( KEP ) through relevant test methods and conditions and doesn t relate to any products made of this product with the inclusion of other additives, such as processing aids or colorants. This information should not be construed as a promise or guarantee of specific properties of this product described or its suitability for a particular application, so users make their own determination as to its suitability to their purposes prior to use this product. It is the sole responsibility of the users to investigate whether any existing patents are infringed by the use of this product. This product is not intended for use in medical and dental implants and users should meet all safety and health standards. KEP makes no warranty and assumes no liability in connection with any use of this information.