se Paint Pretreatment Presentation ATOTECH Sustainable solutions for Paint Shops0 Atotech’s General Metal Finishing (GMF) + division is dedicated to supplying the full package es of chemistry, production technology and Ta comprehensive service to the electroplating and surface finishing industries. { atotech| content | Pan Pretreaement Sees Presentation A ATOTECHPaint Support Technologies Atotech’s offering to Paint Facilities clara erie 4 Paint removal UniPrep® Long-life, ow temperature cleaners UniPrep® AC Weld and laser scale removers KleerAid® ‘A superior approach to paint overspray treatment Sustainable ferrous metal paint removal technology Interlox® Zr-based conversion coatings InterPrep® Performance enhancing sealers UniCoat Single-step cleaner coaters Master Remove! Sustainable light metals paint removal technology 3 ‘© atoech | conten |. Pant retreatment Sees Presentation A ATOTECHPaint Support Technologies Atotech’s offering to Paint Facilities Atotech provides superior technologies to the paint industry, including applicators in © Automotive: 2W, 3W and 4W “St © Truck/bus © White goods/appliance © Furniture © Construction, agricultural and transportation © Architectural aluminum GS © 2 = ° OQ reatment Sle Presentation A ATOTECH 4 atotech | content |Paint Support Technologies Primary automotive applications Ce eee as Cod Cee Cc a Rd Ens Ne) Makes ieee Tete at Cr Cena Coates BCE rund Cones ey CoRR Teco eUPcna Coa | content | Paint Pretteatment Ses ree & ATOTECHPaint Support Technologies Atotech’s offering to Paint Facilities Our paint support technologies are supplied all around the world, reaching a wide variety of applicators... DENSO Whirlpool "= Ge rongotan = — AY) clectrotux, we . aoe > eo ay wv. eine SUZUKI 2 DEERE HITACHI Q hi the Next rere sire theNext SE synercies casmines LMTED a” ratmentSles Presentation ® ATOTECH FLEX|N| GATE . atotech | content |Paint Support Technologies Our Focus - Sustainability In PST, our focus is the same as yours: improving the sustainability of your paint shop by improving the Triple Bottom Line. YAO Decreased Decreased impact on Sustainable costs Environmental Impact the community 7 © Atotech| confidential | Pant Pretreatment Sle Presentation A ATOTECHnC Se ge eT LdSTC Se ge eT LdConventional Paint Pretreatments Typical Processes Conventional paint pretreatment processes typically utilize a cleaner and conversion coating. These processes can be operated in a few manners: © Two or three stages (cleaning and coating take place at same time) © Five or more stages (cleaning function separate from coating) © Spray or immersion bbe Note: These systems can include additional stages for cleaning, activation, rinsing, etc., creating a six or more stage system, Clean Rinse Phosphate Rinse Seal Pretreatment Rinse 10 DAtotech | confidensal | ratmentSles Presentation A®ATOTECHConventional Paint Pretreatments Typical Processes Conventional pretreatments include many regulated or harmful substances, including: © Phosphorus © Alkylphenol ethoxylate (APEs) © Boron © Zinc, Nickel and Cobalt © Chromium © COD (chemical oxygen demand), BOD (biological oxygen demand) and FOG (fat, oil and grease) ratmentSles Presentation ® ATOTECHConventional Paint Pretreatments Cleaners Conventional alkaline cleaners are capable of removing many organic soils, but have several associated process disadvantages, including: — High operating temperatures (55 — 80 °C) — High energy costs — High associated carbon footprint — Short solution life — Use of restricted/regulated substances like phosphorus, boron, and nonyl/octylphenol ethoxylates (NPE and OPE) As organic soils are removed from the substrate surface, they become emulsified in solution, leading to the gradual decrease in cleaning performance until the solution must be replaced 12 @Atotech | confidential | Pant Pretreatment Sales Presentation A ATOTECHConventional Paint Pretreatments Cleaners © Cleaning mechanism a suractm 9°, cane $, t Water As ey Emulsion Molecule Surfactant Alkalinity Lifting Oil Builders Off Metal Surface Surfactant | - Molecule Oil on Surface 12 DAtotech | confidential | Pant Pretreatment Sales Presentation #® ATOTECHConventional Paint Pretreatments Cleaners © Oil build up results in loss of cleaning efficiency As emulsified oil increases, less surfactant p is available for cleaning il, Water Surfactant Emulsion Cleaner efficiency can be improved with use of additional equipment 14 @atotech | confidential | Pant Pretreatment Sales Presentation 4% ATOTECHConventional Paint Pretreatments Cleaners © Loss of cleaner efficiency over time results in a “saw tooth” performance cycle throughout the usable life of cleaner Time duration /Cleanercycle 100% Cleaning Performance 06 X=Cleaner"Dump /Replace" cycle 13 DAtotech | confidesal | ratmentSles Presentation A®ATOTECHConventional Paint Pretreatments Conversion Coatings © Pretreatment of metals prior to deposition of organic coating — Steel, Aluminium, Galvanized — Powder coat, wet paint, e-coat © Conventional conversion coatings include — Iron phosphate — Zinc phosphate — Chromate (for Aluminium applications) 26 DaAtotech | confidential | Pant Pretreatment Sales Presentation A ATOTECHConventional Paint Pretreatments Conversion Coatings Conventional pretreatments are all conversion coatings — Result of a chemical reaction between a chemical solution and a metal substrate — Creates new compound on surface Conventional conversion coatings are used for the following reasons: Established history Provide good adhesion and corrosion protection performance — Meet existing specifications — Relatively easy to use 17 @Atotech | confidential | Pant Pretreatment Sales Presentation A ATOTECHConventional Paint Pretreatments Conversion Coatings © However conventional conversion coatings do not come without their disadvantages © lron and zinc phosphates create sludge as a by-product of the coating reaction Sludge generated from spray zinc phosphate 18 DaAtotech | confidential | Pans Pretreatment Sales Presentation A ATOTECHConventional Paint Pretreatments Conversion Coatings © Phosphate sludge! Sludge from a iron phosphate tank 19 DAtotech | confidential | Pane Pretreatment aes Presentation A ATOTECHConventional Paint Pretreatments Conversion Coatings © Sludge must be removed from process tank which requires maintenance staff for the cleaning ratmentSles Presentation #& ATOTECHConventional Paint Pretreatments Additional equipment is often needed to remove sludge from the process solutionConventional Paint Pretreatments Sludge blocks or clogs spray nozzles If unaddressed, the blockages can lead to poor spray patterns and part coverage in the washer, leading to poor performance and timely/costly line maintenance. &STC Se ge eT LdAtotech’s Approach Sustainability Atotech’s approach to creating sustainable paint pretreatment processes means eliminating as many regulated and harmful substances while also conserving other resources such as water and electricity/gas, supporting a reduced carbon footprint 4 4 ° ° > ¢ a m ° A © 2 z < feo e® 24 DAtotech confided | Pane wnt Sales Presentation A®ATOTECHAtotech’s Approach Why is Phosphorous-free Important? © Phosphorus is a naturally occurring element found in the environment in small quantities. © Phosphorus is the limiting nutrient for soil and freshwater plant growth. © Phosphorus-containing wastes enter the environment as air emissions, aqueous effluents or solid residues. 3 @atotech | confdental | Paint Pretreatment Sales Presentation 4% ATOTECHAtotech’s Approach Why is Phosphorous-free Important? © When a water source becomes nutrient enriched, the process of eutrophication occurs. The primary manifestation of eutrophication is the acceleration of algal biomass production. The nutrients available act as fertilizers for plants and algae alike. Algae exhibits a more rapid growth rate when limiting nutrients are present in excess. Plant death results from the lack of essential nutrients. Algae and algal blooms pose many other environmental threats = Depletion of dissolved oxygen ~ Fish kills — Decrease in fish food supply — Harmful environment for humans and animals 26 © DAotech|confisenal | Pa treatment Sls Presentation A®ATOTECHAtotech’s Approach Where does Phosphorous come from in Paint Pretreatment? Atotech’s responsibility is to provide our customers with the most environmentally responsible products and processes. By eliminating phosphorus in pretreatment products, we are able to create sustainable solutions for our customers globally. atotech | content | ratmentSles Presentation A®ATOTECHAtotech’s Approach Global Phosphorous regulations SS a vai || Seeetiatomrees he | [aor ega rg ‘compounds: = specific limits for metal finishing faclibes. ‘point sources oe a a ee Be eet compounds: iu ‘regulated at local levels. at ean os rene eh ci ty a a See |e “ Freephone 2 Sinishingirealnent indusries Minty forthe Em * a en A ee) os ee) = ee os SS) ee ern = == | 5 — en men hc = ee ee sea res annus == ie nerve = Sc CSM Meese occ) 7 ees a ere See ae s uimemen oss bbbteanenegtt nr ra ett ‘based on location = =e A LE Fae = Fate faim Mella rane ta ett ‘compounds: levels ro = a RSE aera 2 os 2 aera | (Sererecererers som rohoras ‘standards available at loca level ‘ceumen/O8-wpetmeveontents im! 28 DAtotech | confidensal | Pane Pretreatment Sees Presentation A ATOTECHAtotech’s Approach Phosphorous-free tr Eee uaa Mieantid ca) Decoy Pa) Pete acid ere Love ela) Peeling LCST [ees Depletes dissolved eee ema nein Loree Cr) er acai (oer Pra De aquatic life aquatic COs 29 DAtotech | confidential | Pane Pretreatment ales Presertation A®ATOTECHAtotech’s Approach Why is APE/NPE-free Important? NPE’s have been found to have significant reproductive effects in pregnant women as well as being linked to breast cancer development. Alkylphenol ethoxylates (APE’s) and its derivatives are commonly used as surfactants (surface active agents) in metal cleaning and degreasing products for their innate ability to remove organic soils from the substrate surface. As the degree of ethoxylation increases, the biodegradability of the APE becomes less likely, and its persistence in the environment increases. . Nonylphenol ethoxylates (NPE’s) have been a primary focus for many international health and safety organizations recently, including the EPA. Studies have found NPE’s to be highly toxic to aquatic organisms. 3 DAtotech | confidential | Pant Pretreatment Sales Presentation 4% ATOTECHAtotech’s Approach Nonyl/Alkylphenol Ethoxylate-free (NPE/APE) (oro used in ele 4 re] Dee Ccoag Alkyl Cen mien UE LT] Bea eit MTS Canada (APE’s) aquatic eon PELE aera effects Linked to ict Leila 31 DAtotech | confidential | Pane Pretreatment Sales Presentation A®ATOTECHAtotech’s Approach Why is Boron-free Important? Boron and its compounds (boric acid, borates, borax) are commonly found or utilized in the manufacturing of glass ceramics, carbon-fibers/fiberglass pesticides, cosmetics and soaps, but most importantly cleaning products. Based on a study conducted by the Scientific Committee of Consumer Safety in 2009, some boron compounds were reclassified as mutagenic and/or toxic to human reproduction. In addition, in March 2010, the European Chemicals Agency (ECHA) published proposals to identify eight chemicals as Substances of Very High Concern (SVHC). Of those 8, boric acid and sodium borates were added to the SVHC List. 32 @Atotech | confidential | Pant Pretreatment Sales Presentation A ATOTECHAtotech’s Approach Boron and borate-free (oro rea) ele 4 Legislation in Bid Canada Toxic label Pee Cll lel att Boat UC Cr Reproduction Weer 31 DAtotech | confidential | Pant Pretreatment Sales Presentation A ATOTECH15 minutes Se ge eT LdSustainable cleaning and degreasing Importance of cleaning Cleaning is the essential first step for all pre-paint and plating processes ® Improper and/or incomplete substrate cleaning results in: — Visual defects, cratering, blisters, hazing/nonuniform appearance ~ Poor adhesion = Cross-hatch = Impact = Boiling water = Marr scratch test © Poor corrosion resistance = Salt spray (NSS and CASS) = Cyclic corrosion = Filiform ® Rejects lead to costly rework and production inefficiencies 38 {© Atotech[Pan Pretreaement Sales Presentation A ATOTECH4% ATOTECH Sustainable cleaning Conventional degreasing methodsConventional degreasing methods Process concerns and disadvantages © Conventional alkaline cleaners are capable of removing many organic soils, but have several associated process disadvantages, including: — High operating temperatures (55 — 80 °C) — High energy costs — High associated carbon footprint — Short solution life — Use of restricted/regulated substances like phosphorus, boron, and nonyl/octylphenol ethoxylates (NPE and OPE) As organic soils are removed from the substrate surface, they become emulsified in solution, leading to the gradual decrease in cleaning performance until the solution must be replaced ” {© Atotech|Pan Pretreatment Sales Presentation A ATOTECHConventional degreasing methods Solution life © Conventional cleaner — Performance decreases as a function of emulsified oil content in solution Cleaning Performance ‘Time duration /Oilontent X=Cleaner"Dump /Replace"cycle 38 { atotech Pant Pretreatment Sales Presentation A ATOTECH4% ATOTECH Sustainable cleaning Improvements to conventional degreasing methodsImprovements to conventional degreasing methods Atotech’s approach Long | Low life |temp — oy {© Atotech[Pan Pretreaement Sales Presentation #& ATOTECHImprovements to conventional degreasing methods UniPrep® long life, low temperature cleaners UniPrep® is Atotech’s answer for applicators seeking a more sustainable solution to conventional degreasers UniPrep® cleaners offer a long life, low temperature process that supports the natural degradation of the organic soils removed from substrate surfaces during the degreasing process . By achieving this, UniPrep® provides the following benefits in comparison to conventional alkaline cleaners: — Less frequent cleaner dumps/make-ups — Easy to waste treat and less restrictions on effluent — Low operating temperatures — Sustainable cleaning/degreasing solutions a {© Atotech|Pan Pretreatment Sales Presentation A ATOTECHImprovements to conventional degreasing methods UniPrep® — process description © How long life, low temperature cleaning is achieved = UniPrep® cleaners are specifically formulated to function at low operating temperatures ~ Part is degreased utilizing a cleaner with a highly emulsifying surfactant system — Emulsified oils are degraded in situ — Surfactant molecules are made available to emulsify additional oil, resulting in a long-life cleaning system © Degradation occurs continuously over time and is one of the unique advantages of UniPrep® long life, low temperature cleaners a {© Atotech|Pan Pretreatment Sales Presentation A ATOTECHImprovements to conventional degreasing methods UniPrep® — process description UniPrep® cleaners, initially developed for pre- paint applications, have been successfully implemented by plating applicators globally, offering some of the same process advantages as those achieved in pre-paint applications Atotech’s UniPrep® cleaner portfolio offers applicators superior process versatility: — Specialized cleaners developed for both spray and/or immersion applications — Immersion cleaners suitable for pre-paint as well as barrel and rack plating applications — Spray cleaners offer high performing and low foaming solutions for pre-paint and plating applications (continuous screw, rotating drum, belt washers, etc.) 4“ {© Atotech|Pan Pretreatment Sales Presentation A ATOTECHImprovements to conventional degreasing methods UniPrep® — process benefits Low operating temperature results in substantial energy savings Long life benefits include — Increased productivity — Waste treatment savings — Chemical consumption and cost savings — 2X cleaner life is achievable with >98% of applications — Many customers realize a 3-4X increase in cleaner life as compared to a conventional cleaner Maintains stable performance throughout cleaner life, providing consistent results while minimizing possibility for part rejects 00 ‘© atoech[Pain retrenment Soles Presentation A ATOTECHImprovements to conventional degreasing methods UniPrep® — process benefits © Long life, low temperature cleaner — Reduced Chemical Oxygen Demand (COD) levels — COD measures the content of organic compounds in solution, such as the soils removed during the cleaning process Chemical Oxygen Demand (COD) vs Time 46% reduction in oD Weeki Week? Week3.-Week# Weeks. Week = Week7)— Week Week Time (weekly intervals) 45 {© Atotech|Pan Pretreatment Sales Presentation A ATOTECHImprovements to conventional degreasing methods UniPrep® — process benefits © Acontrolled lab experiment exhibits how oil levels can be reduced by as much as 7X 6 {© atotech|Paint Pretreatment Sales Presentation #% ATOTECHImprovements to conventional degreasing methods UniPrep® — process benefits © Acontrolled lab experiment exhibits how oil levels can be reduced by as much as 7X eee UniPrep Cleaner a {© Atotech|Pan Pretreatment Sales Presentation A ATOTECHImprovements to conventional degreasing methods UniPrep® — cleaning quantification © Akey component of long life, low temperature ae cleaning is being able to quantify that adequate F substrate cleanliness is being achieved, prior to and after implementation in production © Simplistic methods like white glove/tissue and water break tests, can give you some indication of substrate cleanliness — Advantages = Non-destructive, can complete on production parts = Easy to conduct = Inexpensive — Disadvantages = Results cannot be quantified, only a visual inspection = Dependent on inspection quality and inspection personnel skill — For certain pre-paint and plating applications, a more sophisticated evaluation is required to ensure subsequent coating is not compromised “s {© Atotech|Pan Pretreatment Sales Presentation A ATOTECHImprovements to conventional degreasing methods UniPrep® — cleaning quantification © More sophisticated methods exist that aid in cleanliness quantification better than the previously mentioned conventional methods — Auto-deposition copper immersion — Easy to conduct and provides good comparative result — It ean be difficult to quantify results and is only suitable for steel components — Surface tension fluids — Suitable for multiple substrates and provide quantifiable result — Requires skill to conduct test — Specialized surface analysis equipment — Suitable for multiple substrates, provide quantifiable result and is non-destructive on production parts — Specialized equipment can be expensive and requires operator training 9 attech *Pretrestment Sales Presentation A ATOTECHImprovements to conventional degreasing methods UniPrep® — cleaning quantification © Use of continuous cleaning checks to evaluate substrate cleanliness can be utilized to determine when a cleaner process stage should be changed Dyne test results and reject rate 8 350 Bos ai 3 2g S21 as ® ® 1 shone wees) me dyne a Rejoct Rate so {© Atotech|Pan Pretreatment Sales Presentation A ATOTECH4 ATOTECH Sustainable cleaning Case studiesUniPrep® Case study 1 © Background: — Major European appliance OEM — Produces 900,000 units per year for European market — Operates a dual-conveyor line for enamel and powder paint applications © Switched from conventional pretreatment consisting of an alkaline cleaner and iron phosphate to a more environmentally responsible process that included long life, low temperature UniPrep® cleaners © Immediate benefits realized included: = Lower operating temperatures — Reduced sludge formation = Less line maintenance required to clean clogged nozzles and risers 2 {© Atotech|Pan Pretreatment Sales Presentation A ATOTECHUniPrep® Case study 1 Competitor's process sowos 1osos rr swe ore tem ttt a 175-20m/min ap Wie ey 3 (© tote) Paint Pretentment Sle Presentation A ATOTECHUniPrep® Case study 1 Long Life, low temperature proc SSeS ma | es es vA 0) Serre 010573 caret tare poem | saven EE Chagrin ting — cme a ae m/min re Preemie = Eanes Ts Coors Un ech fueomesed 34 {© atotech|Paint Pretreatment Sales Presentation A ATOTECHUniPrep® Case study 1 a 7 a = o) Operating temperature (°C) 60°C 48°C 20% © Line speed 2.0m/min 4.0m/min 100% g Total annual savings of >$150,000 © Continued to provide excellent part quality even at increased line speed and lower chemical concentration 8 {© Atotech|Pan Pretreatment Sales Presentation A ATOTECHUniPrep® Case study 2 © An existing Atotech customer implemented UniPrep long life, low temperature cleaning into each of their four lines © Customer sought the following benefits through implementation of UniPrep long life cleaners: — Reduction in overall chemical consumption — Process improvements — Sustainability initiatives 6 ‘© atoech[Pain retrenment Soles Presentation A ATOTECHUniPrep® Case study 2 © Long life, low temperature cleaning significantly increased bath life Perr Une Ca a Line 1 Line 2 Line 3 Line 4 TOTAL 128% ee ug ies cunin) for all combined lines leaner life Cerna Cee) =) (wee er 8 18 4 9 9 8 25 20 15 1K feu clase ooo 4 4 2 14 {© Atotech[Pan Pretreaement Sales Presentation A ATOTECHUniPrep® Case study 2 Effect of long life, low er] ASL) steko LAR scala Cleaner dumps Eliminated 14 dumps $28,103 USD / year @ Daily cleaner replenishment Reduced 18.2% /day $189,209 USD / year @ Energy Savings $43,700 USD / year © create arse tomnk — sinousfme Reduced CO, emissions 440 tons / year” Q@ Filter cleaning Every 2-3 days to 1/week 65% reduction” Aa Total annual savings of >$270,000 USD / year * Benefit reported but cost savings not quantified by customer 8 {© Atotech|Pan Pretreatment Sales Presentation A ATOTECHUniPrep® Case study 3 * Fastener manufacturer applying zinc flake coating to fasteners after cleaning and shot blasting ® Desired a mild cleaning solution that could offer similar or improved cleaning at reduced temperatures ® Cleaning conducted in continuous screw line via spray cleaning * Process benefits achieved with implementation of UniPrep® spray cleaner — Improved part cleanliness — Reduced — pH: from 12 to 10- 10.5 — Concentration: from 2.0% to 1.5% — Temperature: from 60 °C to 45 °C so ‘© atoech[Pain retrenment Soles Presentation A ATOTECHUniPrep® Case study 4 Automotive fastener manufacturer producing 10,000 kg of parts/day Sought a longer life and ambient temperature solution to replace their existing conventional degreaser Process benefits achieved with implementation of UniPrep® spray cleaner — Extended solution life by 2.5X — Reduced cleaner concentration from 10% to 7% = Eliminated necessity of heat for cleaning solution, reducing temperature from 60 °C to ambient (35 °C) — Reduced chemical consumption from 5 g/m? to 2 g/m?, saving 9,000 kg of cleaner concentrate annually Heavily oiled fasteners prior to Caco ‘© atoech[Pain retrenment Soles Presentation A ATOTECHUniPrep® Long life, low temperature cleaning (tS © Long life, low temperature cleaning processes increase the overall sustainability of the pretreatment process: — Lower operating temperatures — Longer solution life — Increased total process savings = Stable operating conditions UT del eh demonstrates Atotech’s continuous drive to develop and introduce highly sustainable processes for the surface finishing industry, addressing many of the concerns associated with conventional processes 6 {© atoech| Pan Pretreatment Soles Presentation AX ATOTECH4% ATOTECH Sustainable cleaning UniPrep® ISOtect Specialized oil elimination equipmentSpecialized oil elimination equipment UniPrep® ISOtect Equipment such as disk skimmers, microfiltration, etc can be utilized to extend bath life of conventional cleaners, but have associated disadvantages — Maintenance intensive — Expensive — Generate additional waste stream Applications with high oil loading present issues for applicators in solution life as well as production quality and consistency = Burden on WWT operations — Higher maintenance requirement — Higher reject rates @ attech * Pretrertment Soles Presetation A ATOTECH