Latest Technology Developments and Industry Trends in the PU Sector by Miguel Quintero.

1. 05/07/10 Presentation to RR Meeting Caleb Management Services Limited Addressing tomorrow’s issues today Workshop on low-GWP HCFC replacement in the foam sector Seoul, South Korea 6 th -7 th May 2010 Latest Technology Developments and Industry Trends in the PU Sector Presented by Miguel Quintero Foams Consultant Thursday 6 th May 2010 Mayfield Hotel & Resort, Seoul, South Korea CONFIDENTIAL Document Date This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion. Unit of measure * Footnote Source: Source

5. POLYURETHANE (PU) RIGID FOAM Closed cells are the key ! Blowing agents are enclosed

6. PU Formulation Polyether Polyols Polyester Polyols Catalysts Surfactants Water Blowing Agents PMDI/MDI/TDI + Kinetics Control Stabilizers CO 2 C H 2 OCN NCO 4 , 4 ' - M D I n polymeric MDI CH2 CH2 NCO NCO NCO + f=2.7 Network Formation

7. FULLY FORMULATED POLYOL Blowing agent content around 18 % ! In total foam 9 % INGREDIENT PARTS BY WEIGHT Polyether Polyol 80 Polyester Polyol 20 Amine catalyst - gelling 1.0 Amine catalyst - blowing 0.5 Silicone surfactant 1.0 Flame Retardant 10 Water 2.0 External blowing agent (HCFC-141b) 22

10. REQUIRED FOAM PROPERTIES Application Processing De-mould time Insulation Mechanical strength Domestic refrigeration xxx xxx xxx xxx Other appliances xxx xxx xx xxx Continuous Panels xxx xxx xx xxx Discontinuous Panels xx xxx xx xxx Spray xx xx xx xxx

12. BLOWING AGENT CHARACTERISTICS Foam requirement Relevant Blowing Agent Characteristic Ease of Processing Flammability Boiling Point Solubility in the polyols De-mould time Broadly independent Insulating Performance Gas thermal conductivity Permeability through cell wall Mechanical Strength Boiling Point Solubility in the PU matrix

13. Blowing Agents in PU Rigid Foams CFC 11 CFC 11 50% red. HCFC 141b HFC 245fa HFC 134a c-pentano Iso-/n-pentano c-pentano/LBHC HFC 365mfa/227fa

14. MATURE TECHNOLOGIES: HYDROCARBONS ^ Measured at 0 0 C * Precise figure varies according to local atmospheric conditions Cyclo-Pentane n-Pentane Iso-Pentane Iso-Butane n-Butane Chemical Formula (CH 2 ) 5 CH 3 (CH 2 ) 3 CH 3 CH 3 CH(CH 3 )CHCH 3 CH 3 CH(CH 3 )CH 3 CH 3 CH 2 CH 2 CH 3 Molecular Weight 70.1 72.1 72.1 58.1 58.1 Boiling Point ( 0 C ) 49.3 36 28 -11.7 -0.5 Gas Conductivity (mW/mK @ 10 0 C) 11.0 14.0 13.0 15.9 13.6 ^ Flammable Limits in Air (vol.%) 1.4-8.0 1.4-8.0 1.4-7.6 1.8-8.4 1.8-8.5 TLV or OEL (ppm) 600 610 1000 800 800 GWP (100 yr time horizon) <25* <25* <25* <25* <25*

16. BTU.in/ft²hr°F Hydrocarbon Technology Brett mold expansion (mm), 8 mins 1 2 3 4 5 Thermal Conductivity, mW/mK 0 °C 18.2 18.4 18.6 18.8 19.0 19.2 19.4 19.6 19.8 20.0 20.2 20.4 20.6 20.8 6 0.1262 0.1276 0.1290 0.1303 0.1317 0.1331 0.1345 0.1360 0.1373 0.1387 0.1401 0.1414 0.1428 0.1442 CP Gen4 CP Gen 3 CP Gen 1 CP Gen 2 HFC134a CP Gen 1+ CP Gen 2+ HCFC 141b CFC 11 50% HCFC 22/142b Iso-/N-Pentano Gen 1 Iso-/N-Pentano Gen 2

18. HYDROCARBONS: Investment costs Item Description Unit Unit Cost Sub-total Hydrocarbon Storage/ Blending 108.000 Buffer tank 250 L 1 28.000 28.000 Premixer 1 70.000 70.000 Double pump transfer unit 1 10.000 10.000 Total Foaming Equipment 145.000 Retrofitting of the existing dosing units by replacing the polyol dosing system 1 135.000 135.000 High pressures L type mixing heads 1 10.000 10.000

19. HYDROCARBONS: Investment costs Total Safety Related Equipment 223.380 Moulds/ fixtures retrofit 10 8.000 80.000 Safety/ Alarms systems, base panel 1 20.000 20.000 Sensors 6 2.000 12.000 Ventilation system for dosing unit area, 8,000 m 3 /h 1 20.000 20.000 Ventilation system for cabinets/doors, 15,000 m 3 /h 1 30.000 30.000 Fire extinguishing system 1 15.000 15.000 Explosion proof motors and systems 1 10.000 10.000 Sealing of electrical control cabinets 1 10.000 10.000 Starting discharge dissipation 1 10.000 10.000 Electrical modifications (grounding, etc.) 1 10.000 10.000 Connection piping 6 230 1.380 Additional Civil Works 1 5.000 5.000

20. HYDROCARBONS: Investment costs Total General 110.000 System Optimization 1 30.000 30.000 Nitrogen generator 1 20.000 20.000 Training and International Technical Support 1 20.000 20.000 Trials 1 10.000 10.000 Testing 1 20.000 20.000 Safety Audits 1 10.000 10.000 SUB-TOTAL 586.380 Contingencies 58.638 TOTAL 645.018

21. HYDROCARBONS: Incremental Operating Costs Chemical Average Annual Consumption, (2007/2008), kg Unit US$/unit Total cost consumption (US$) Before : HCFC - 141 b 157,242 kg 2.40 377,380 Formulated Polyol A 681,983 kg 2.60 1,773,155 Polymeric MDI 954,776 kg 2.79 2,663,824 Total 4,814,359 Cyclopentane 100,557 kg 3.00 301,670 After: Formulated Polyol B 728,961 kg 2.68 1,952,157 Polymeric MDI 1,020,545 kg 2.79 2,847,321 Nitrogen 2,915 m 3 9.50 27,690 Total 5,128,838 Incremental Operating Costs/year 314,479

22. MATURE TECHNOLOGIES: Saturated HFCs HFC-134a HFC-245fa HFC-365mfc HFC-227ea Chemical Formula CH 2 FCF 3 CF 3 CH 2 CHF 2 CF 3 CH 2 CF 2 CH 3 CF 3 CHF CF 3 Molecular Weight 102 134 148 170 Boiling Point ( 0 C ) -27 15.3 40.2 -16.5 Gas Conductivity (mW/mK @ 10 0 C) 12.4 12.5* 10.6* 11.6 Flammable Limits in Air (vol.%) None None 3.8-13.3 None TLV or OEL (ppm) 1000 N/A N/A 1000 GWP (100 yr time horizon) 1410 (1300) 1020 782 3140 (2900)

25. RELATIVELY NEW OPTION: Methyl Formate Ecomate (R) (Methyl Formate) Molecular Weight 60 Boiling Point (  C) 31.3 Gas Thermal Conductivity (Mw/Mk, 25ºC) 10.7 Flammable limits in air (vol %) 5-23 GWP (100yr ITH) Negligible

27. EMERGING OPTIONS Methylal HFO-1234ze FEA-1100 HBA-2 AFA-L1 Chemical Formula CH 3 OCH 2 OCH 3 Trans- CF 3 CH=CHF Undisclosed Undisclosed Undisclosed Molecular Weight 76.1 114 Undisclosed Undisclosed Undisclosed Boiling Point ( 0 C ) 42 -19 >25.0 15.3<T<32.1 10<T<30 Gas Conductivity (mW/mK @ 10 0 C) Not available 13.0 10.7 Not Reported 15.9 Flammable Limits in Air (vol.%) 2.2-19.9 None to 28 o C^ None None None TLV or OEL (ppm) () 1000 Unpublished Undisclosed Undisclosed Undisclosed GWP (100 yr time horizon) <25* 6 5 <15 <15