1. Enabling Vehicle Lightweighting with Advancements in Surface Treatment and Adhesive Technologies Presented by: Kevin Woock, Global Market Segment Manager – Body-In-White Adhesive Technologies – Automotive, Henkel Dr. Bruce H. Goodreau, Technical Director R&D, Surface Treatment Platform NA, Henkel

2. Enabling Vehicle Lightweighting Kevin Woock Global Market Segment Manager – Body-In-White Adhesive Technologies – Automotive, Henkel

3. Automotive Market Drivers and Focus Source: EIGHT REDUCTION IN AUTOMOTIVE DESIGN AND MANUFACTURE ; Published by SupplierBusiness, IHS Automotive, 2012 Lightweighting Market DriversTargets to Enable Increasing Regulatory Environment Cost / Availability of Fuel Emerging Market Growth, Urbanization Global Platform Development Segment Consolidation Stamping & Assembly Infrastructure Product Design (substrates) – All Steel BIW for A&B Segments – Steel + Aluminum BIW for C/D/FF Segments – All Aluminum/Composites for D/E/Premium Segments Manufacturing (processes) – Body Shop Joining of Dissimilar Materials Avoiding Corrosion (Battery Cell w mixed substrates) Safety and durability of new materials – Paint Shop Oven is pivot point for most assembly plants – Post Production – Repair / Recycling (end of life regulations) Summary: Focus on enabling materials and processes which allow OEMs and Tier Ones to achieve Body-In-W Weight Reduction

4. Convergence of Global Emission and Fuel Economy Regulations Source: The International Council on Clean Transportation, Passenger Vehicle Greenhouse Gas and Fuel Economy Standards: A Global Update2011 GRAMS CO2 PER KILOMETER NORMALIZED TO NEDC TEST CYCLE CO2

5. Market Research: Global Auto Production Source: 2013 March IHS AutoInsight Data CAGR (2012-2018) = 4.0% CAGR2012-18 EU2.8% AP4.9% MEA6.2% NA2.3% LA5.8% Total4.0% Regional Production Forecast: 2012-2018

6. Source: 2013 March IHS AutoInsight Data A Segment-0.2% B Segment2.4% C Segment1.3% D Segment-1.0% E Segment-0.6% FF Segment-0.8% Mini FF Segment0.1% Compact FF Segment-1.2% Market Research: Global Auto Production Shifts in Vehicle Segment Production Volumes: 2012-2018 Volume Variance

7. Market Research: Global Auto Production Source: 2013 March IHS Conference: Successful Global Planning -Detroit “Mega” Platforms over 500K units per year and number of programs Top 25 Global OEMs 2012-2018 Average Number of Units/Platform Global Platforms and Program Consolidation: 2012-2018 Source: 2013 March IHS AutoInsight Data

8. Vehicle Lightweighting Trends 2009 1 2010 1 2011 1 2025 2 Regular steel1,5011,5421,458950 High & medium strength steel 524559608858 Aluminum324344355550 Plastics/Composites369371377400 Magnesium 11 12100 1 American Chemistry Council 2 Ducker Worldwide The average vehicle will be 400 pounds lighter by 2025 2 Average materials content of North American light vehicles (pound/vehicle)

9. Key Material Growth Rates versus Market Vehicle Lightweighting Trends

10. Aluminum in Automotive: SAE World Congress 2012: Contributors : SAE and Aluminum in Transportation Asso. Vehicle Lightweighting Trends Percent of Automotive Material Mix

11. Aluminum in Automotive: SAE World Congress 2012: Contributors : SAE and Aluminum in Transportation Asso. By 2025, reduce 10 to 20% curb weight or about 400 lbs. Projected to grow to 16% from 9% of curb weight in period 2012-2025 – increasing some 200 lbs in auto applications Key areas for mass reduction include body structure, powertrain, and chassis components. The combination of low density, crash energy absorption, high conductivity, excellent recyclability and a good supply infrastructure make aluminum one of the most desired lightweight materials in the market. Vehicle Lightweighting Trends Aluminum - key focus lightweighting material to 2018 High Growth Al Applications Body Panels/Closures Wheel Rim/Trim Brake Calipers Moderate Growth Al Applications Steering Components Tailgate/Rocker Panels Suspension arms & knuckles Seat frames Low Growth Al Applications Instrument Panel Beams Engine blocks, cylinder heads and crankshafts Heat exchanger Prevalent Substitution Trends with Materials & Chemicals in Automotive Lightweighting; Frost & Sullivan; June 2011, M6E0-39

12. Enabling light weight materials HENKEL TECHNOLOGYMASS REDUCTIONTREE EQUIVALENT BONDERITE ® pretreatment process37 Kilograms LOCTITE ® adhesives for multi-material assemblies 27.4 Kilograms TEROSON ® structural adhesives for the passenger compartment 14.9 Kilograms TEROSON ® structural inserts12.5 Kilograms TEROSON ® liquid applied sound deadeners3.3 Kilograms Henkel technologies account for nearly 100 kilograms in mass savings for every vehicle; the environmental equivalent of planting 19 trees Adhesives and surface technologies play a central role in introducing light weight materials

13. TEROSON structural adhesives are highly toughened, structural epoxies Adhesives are wash-out resistance and formulated to cure in paint shop process Weld-through and multi-metal capable Enabling light weight materials TEROSON ® Structural Adhesives Provides performance across the widest temperature range Reduces or eliminates welds Enables multi-metal design for structural lightweighting TEROSON ® Epoxies: 5089 – Impact Resistant Structural Epoxy Benefits Application Examples & Value Enhancement

14. TEROSON structural adhesives are a highly toughened structural epoxies Wash-out resistance and formulated to cure in typical paint shop process New development of stress durability properties on aluminum/multi-metal structures Enabling light weight materials TEROSON ® Aluminum Stress Durable Adhesive Reduces or eliminates welds Stress distribution allows for the down gauge of metals Enables multi-metal designs for structure lightweighting Allows material and process design flexibility TEROSON® 5100 - Heat Cured Aluminum Stress Durable Adhesive Benefits Application Examples & Value Enhancement

15. Full range of 2 and 3 dimensional parts for NVH and sealing improvements Complete design competence Complete DVP&R testing up to full body in white bake out Materials developed for repeatable expansion over widest application temperatures Enabling light weight materials TEROSON ® NVH and Sealing Solutions Superior acoustic performance Excellent sealing capabilities Robust performance Assist large product range for multiple OEM’s and applications TEROSON ® NVH and Sealing Benefits Application Examples & Value Enhancement

16. HDF damping properties reduces body shop complexity and manages panel vibrations and acoustic performance of radiating structures (eg. doors and roofs) Compatible with current assembly processes and reduces manually applied damping treatments and anti-flutter mastics FEA predictive performance validated through testing and analysis Wash-out resistant material is formulated to expand and bond within the e-coat process Enabling light weight materials TEROSON ® High Damping Foam Significant Damping effect over conventional materials Enables lightweight materials Eliminates process waste Increases process efficiency TEROSON ® High Damping Foam Benefits Value Enhancement

17. TEROSON structural inserts are designed in 2 and 3 dimensional parts Used to enhance durability, stiffness, NVH and crashworthiness Assembled in the body shop or tier manufacturer Expand and cure in a variety of paint shop processes Enabling light weight materials TEROSON ® Structural Inserts Locally reinforce body structure to avoid lag Transparent to existing processes Allow design flexibility Assists in weight saving strategies TEROSON ® Structural Inserts Benefits Application Examples & Value Enhancement

18. Easily integrated into existing paint shop processes Increased capacity for percent of aluminum substrate, up to 85% Decrease in sludge generation by as much as two-thirds Zirconium oxide provides solutions to the limitations a traditional zinc phosphate – unique deposition on each substrate (no phosphate on aluminum) Enabling light weight materials BONDERITE ® M-ZN 2798 Pretreatment Ease of control Process cost savings Zinc phosphate on CRS, EG, HDG, GA Zirconium based coating on Al Excellent paint adhesion and corrosion protection on steel and aluminum BONDERITE ® M-ZN 2798 Flexible Paint Pretreatment Process Benefits Application Examples & Value Enhancement

19. Henkel solutions will help you achieve your lightweighting priorities 1. We enable light-weight construction with innovative products and processes. 2. We contribute to the realization of future CO 2 emission targets. 3. We provide innovative solutions to reduce process costs and to increase product quality.

20. BONDERITE ® Flexible Pretreatment Process for Multi-metal Bodies with Aluminum Dr. Bruce H. Goodreau Technical Director R&D Surface Treatment Platform NA, Henkel

21. 1. Classical Zinc Phosphate Overview 2. Advantages/Challenges of Aluminum Intensive Vehicles 3. BONDERITE ® Flex Process Agenda

22. Classical Zinc Phosphate Overview M 0 M +n + ne - Zn(H 2 PO 4 ) 2 M +n e-e- pH increase 2H + +e - H 2 H+H+ H+H+ H+H+ Zn 3 (PO 4 ) 2 anode cathode bulk solution

23. Classical Zinc Phosphate Overview E-coat 20-25  m Primer 20-50  m Basecoat 15-40  m Clearcoat 35-50  m Zinc 20-25  m Steel <1  m !

24. Classical 7-Stage Zinc Phosphate Process CRS, Zinc and Aluminum Clean ActivateZinc PhosphatePost Treatment Rinse CRS HDG Al conveyer direction

25. Classical Zinc Phosphate Phosphating High Percentages of Aluminum Challenges Aluminum Oxide Layer Slows dissolution of Al Slows deposition of Zn 3 (PO 4 ) 2 Dissolved Aluminum Inhibits Zn 3 (PO 4 ) 2 deposition on steel High levels of fluoride ion Safe handling Increased Sludge Production Na 3 AlF 6

26. Classical Zinc Phosphate Al Sludge Production Increased Al content Increased Al sludge Increased Sludge can result in: Increased Maintenance Deposition on Horizontal surfaces Drag-in to later stages Dirt-in-paint 1.0g Al7.8g Na 3 AlF 6 (sludge)

27. BONDERITE® Flex Process: Metal Pretreatment for High Aluminum Vehicle Bodies How do we overcome the challenges associated with phosphating high Al content automotive bodies? Don’t phosphate the Aluminum!

28. BONDERITE® Flex Process Diagram Rinse BONDERITE ® M-PT 54NC Zirconium Oxide Post Rinse for Zinc Phosphate ZrO 2 Conversion Coating on Aluminum Rinse Clean ActivateZinc PhosphatePost Treatment Rinse conveyer direction BONDERITE ® M-ZN 2798 Zinc Phosphate Reduced Free F - Usage Zinc Phosphate on CRS and Zn only Phosphate on Al inhibited

29. BONDERITE ® Flex Process Coating Characteristics Zinc Phosphate on the Steel and Zn substrates only CRS HDG Aluminum CRS HDG Alu ZrO 2 coating

30. Zirconium Oxide on Aluminum 1000x 5000x BONDERITE ® Flex Process Examples Zirconium Oxide

31. BONDERITE® Flex Environmental Benefits Sludge Reduction Process Al Etch (g/m 2 ) Coating wt. (g/m 2 ) Sludge (g/m 2 ) Classical1.3 – 1.51.5-3.010.1-11.7 Flex0.4 – 0.60.0-0.253.1-4.7 Sludge Reduction with the Flex Process 70% Al Sludge Reduction!

32. BONDERITE ® Flex Corrosion Performance Cold-Rolled Steel Cold Rolled Steel 6 wks, Cyclic Corr. Test L-467 Standard Process BONDERITE ® 2798

33. Electrogalvanized Sreel 6 wks, Cyclic Corr. Test L-467 Standard Process BONDERITE ® 2798 BONDERITE ® Flex Corrosion Performance Electro-Galvanized Steel

34. Hot-Dipped Galvanized Steel 6 wks, Cyclic Corr. Test L-467 BONDERITE ® Flex Corrosion Performance Hot-Dipped Galvanized Steel Standard Process BONDERITE ® 2798

35. Aluminum 6 wks, Cyclic Corr. Test L-3190 Standard Process BONDERITE ® 2798 BONDERITE® Flex Corrosion Performance Aluminum

36. BONDERITE ® Flex Corrosion Performance

37. Deposits uniform conversion coating Selective deposition on each substrate Zinc phosphate on CRS, EG, HDG Zirconium-oxide coating on Al Meets performance specifications Promotes paint adhesion Excellent corrosion protection Up to 85% Aluminum substrate Process Cost Savings compared to standard phosphating of Aluminum Excellent corrosion performance on aluminum BONDERITE ® Flexible Pretreatment Process BenefitsApplication and Process Examples BONDERITE ® Flex Process Overview BONDERITE ® Flex – Scanning Electron Microscopy (SEM) 2,000X Cold Rolled SteelElectrogalvanizedAluminum Cleaner Rinse Surface Cond. Zinc Phosphate Rinse Zr Oxide BONDERITE ® Flexible Pretreatment Process Application and Process ExamplesBenefits BONDERITE ® Flexible Pretreatment Process Application and Process Examples

38. Audience Q&A www.henkelna.com/lightenup @HenkelAuto_NA Speaker Information: Kevin Woock Kevin.woock@henkel.com Dr. Bruce H. Goodreau Bruce.goodreau@henkel.com