INTERCEPT Technology. INTERCEPT Technology Group VFTI An Authorized INTERCEPT Technology Distributor

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1 INTERCEPT Technology INTERCEPT Technology Group VFTI An Authorized INTERCEPT Technology Distributor ITG Detroit USA 7/12/2012

2 INTERCEPT TECHNOLOGY TM INTERCEPT Oil-Free Preservation 7/12/2012 Detroit - USA 2

3 INTERCEPT TECHNOLOGY TM The Best Corrosion Protection for the Automotive Industry Assemblies Components Spares Short/Long Term Storage 7/12/2012 Detroit USA 3

4 INTERCEPT INTERCEPT TECHNOLOGY TM Highly porous copper particles are permanently reacted into a plastic matrix and react with all corrosive gases an elements. The Technology was designed to protect all materials under all environmental conditions equally. 7/12/2012 Detroit - USA 4

5 INTERCEPT INTERCEPT particles are permanently bound to a polymer matrix and react with corrosive gases which are present in the atmosphere. Through this reaction, the inside of the package is neutralized of corrosive gases and permeating humidity is stripped of corrosive elements. Positive: - Protects ferrous- and non-ferrous-metals, alloys, plastics, elastomers and some organic materials - Functional independent of temperature from -35C to + 80 C - Non-out-gassing (awarded with occupational safety prize in 2005), recyclable and easy to dispose - No oiling and de-oiling necessary - Flexible protection Period (2 to15 years), Re-Usable (up to 5 Years) - For direct Contact as well as large air volumes (High Load Densities possible) - Long Corrosion Protection and ESD Protection - Proven in numerous applications Negative: - higher initial material cost - less known in the market Bell Labs Testing Corrosion Intercept 10 Year Exposure at 7 ppb DuPont Chlorine Test Years to Breakthrough Time Chlorine Takes to Move Through the Plastic Intercept Polyethylene 0 1 Part Per Million Chlorine -.002" Thick Film Intercept - 35 Years Polyethylene - 7 Days

6 The VW Story Saving Money, Oil, Packaging and the Environment - Engine blocks shipping from South Africa to Germany - Switched from oil dip / VCI bag combo - Eliminated oil dipping in SA / Oil stripping in Germany - Intercept bags can be re-used - No failures and over 1.8 million Euro in savings / year Winner of the 2009 South African Chamber of Commerce Environmental Award (beating 2000 competitors)

7 Small components to large dunnage systems can be reused, reducing cost and clutter Re Use Examples Fuel injectors small vacuum formed tray that took a corrosion critical part from 300% inspection to 200% and one way packaging to over 3 years use with no failures Engine block bags for shipments between continents and storage 7

8 Principal Consideration Packaging selection: Re-Usable (Oil and VCI) - Low repetition cost - Less waste - Oiling, De-oiling - Administration of Material - Repair, Washing, Waste Handling Re-Usable (INTERCEPT) - Low repetition cost - Low Waste - No Oiling, De-Oiling - Less cleaning and Waste - Occupational and Environmental safety - Administration of Material - Repair, Washing, Waste Handling (*) Expandable Packaging (INTERCEPT) Higher Load Density per m³ Less weight per packaging unit(-20%) Fully Recyclable Longer Protecion Period - Higher Quantity of Packing Material OEM Full Impact Cost Analytic Project (2009): Cost of oiling: 3.00 /Block Cost of Cleaning: /Block Manpower Savings: 8 per 24hrs shift, on sending and receiving side - each Reduction: 4,080 l/oil concentrate, 24,871 l Concentrated Solvent, 11,200t CO2 Less CAPEX for new lines 7/12/2012 Detroit - USA 8

9 Cylinder Blocks Project Considerations Pack-style: Alternatives: Potential: 18 Blocks per Palette Re-Usable with existing PS Trays Expendable with Corrugated Separators Expendable Version will allow for higher Load-Density in Sea-Freight Containers ca. 20% 7/12/2012 Detroit - USA 9

10 Cost savings: Description Part name / code Traditional method Traditional SI2 Enhanced SI2 (oil + VCI) (Intercept) (Intercept) Cylinder Block 2,0 L / 3307A Parts / pallet Pallets / container (20 ) Packaging cost / load unit ( ) 36,67 56,67 80,7 Oiling ( ) De-oiling ( ) 76,5 0 0 Administration ( ) Waste, repair, cleaning ( ) TOTAL COST / pallet ( ) 170,17 76,67 80,70 Packaging cost / part ( ) 11,34 5,11 4,48 Additional potential cost savings per item due to higher load density per shippment.( /item) (Considering a freight cost of 2,000 for a 20 container from Europe to the US) Remarks: ¹ 3 uses per anunm (110 /a cost) ² 20 extra packaging cost 0,89 31% higher load density (oil + VCI) (Intercept) (Intercept) Traditional method Packaging cost / item Cost / part ( ) Traditional SI2 Enhanced SI2 Cost / item / container * Packaging cost / load unit ( ): is the estimated average cost for only packing a pallet. Consists of pallet, corrugated box, separators, dividers, corrosion protection bag, and desiccants. It is estimated that pallets can be re-used up to three times p.a.. 7/12/2012 Detroit - USA 10

11 Cylinder Heads Project Considerations Pack-style: Alternatives: Potential: 30 Heads per Palette (5 layers of 6 Cylinder Heads each) Re-Usable with existing PS Trays Expendable with Corrugated Separators Expendable Version will allow for higher Load-Density in Sea-Freight Containers ca.: 20% Possibility to enable more cylinder heads per layer, but this will require to have the actual item available for design considerations. 7/12/2012 Detroit - USA 11

12 Cost savings: Description Traditional method Traditional SI2 Enhanced SI2 (oil + VCI) (Intercept) (Intercept) Part name / code Cylinder Head / 6049 Parts / pallet Pallets / container (20 ) Packaging cost / load unit ( ) 50,00 96,67 111,45 Oiling ( ) De-oiling ( ) Administration ( ) Waste, repair, cleaning ( ) TOTAL COST / pallet ( ) 290,00 116,67 111,45 Packaging cost / part ( ) 9,67 3,89 3,72 Additional potential cost savings per item due to higher load density per shippment.( /item) (Considering a freight cost of 2,000 for a 20 container from Europe to the US) Remarks: ¹ 3 uses per anunm (150 /a cost) ² 46 extra packaging cost 0,75 ³ 17% higher load density (oil + VCI) (Intercept) (Intercept) Traditional method Packaging cost / item Cost / part ( ) Traditional SI2 Enhanced SI2 Cost / item / container * Packaging cost / load unit ( ): is the estimated average cost for only packing a pallet. Consists of pallet, corrugated box, separators, dividers, corrosion protection bag, and desiccants. It is estimated that pallets can be re-used up to three times p.a.. 7/12/2012 Detroit - USA 12

13 Camshafts Old Method Individual Revised Use of one Intercept bulk bag with Clean, Wrapping and VCI bag Dry Parts (gloves need to be worn) and Desiccant Project Considerations Pack-style: Alternatives: Potential: 150 Camshafts per Palette (Alternatively 340 max.) Re-Usable with existing PS Trays Expendable Ply-Wood Container with Corrugated Plastic Separator's Expendable Version will allow for higher Load-Density in Sea-Freight Containers ca. 62% 7/12/2012 Detroit - USA 13

14 Cost savings: Description Part name / code Traditional method Traditional SI2 Enhanced SI2 (oil + VCI) (Intercept) (Intercept) Camshaft Intake 1,8 L / 3307A Parts / pallet Pallets / container (20 ) Packaging cost / load unit ( ) 56,67 86,67 137,7 Oiling ( ) De-oiling ( ) Administration ( ) Waste, repair, cleaning ( ) TOTAL COST / pallet ( ) 331,67 106,67 137,70 Packaging cost / part ( ) 2,21 0,71 0,41 Additional potential cost savings per item due to higher load density per shippment.( /item) (Considering a freight cost of 2,000 for a 20 container from Europe to the US) Remarks: ¹ 3 uses per anunm (170 /a cost) ² 30 extra packaging cost 0,26 ³ 63% higher load density. 63% logistics savings (oil + VCI) (Intercept) (Intercept) Traditional method Packaging cost / item Cost / part ( ) Traditional SI2 Enhanced SI2 Cost / item / container * Packaging cost / load unit ( ): is the estimated average cost for only packing a pallet. Consists of pallet, corrugated box, separators, dividers, corrosion protection bag, and desiccants. It is estimated that pallets can be re-used up to three times p.a.. 7/12/2012 Detroit - USA 14

15 Crank Shafts Project Considerations Pack-style: Alternatives: Potential: 50 Crank Shafts per Palette Re-Usable with existing PS Trays Expendable Mixture between Corrugated and Recyclable Plastics Expendable Version will allow for higher Load-Density in Sea-Freight Containers Savings and load densities will need to be determined using actual samples 7/12/2012 Detroit - USA 15

16 A Global Expert Network INTERCEPT Technology Group Our packaging and conservation specialists are available through a unique global network to support your packaging needs. We can support our clients with local expertise and global strategies to enable the conservation for Production, Shipment, Delivery, Assembly and Storage with competitive, modern and innovative solutions. simply better protection! 7/12/2012 Detroit - USA 16