The document discusses the development and production of eco-friendly, water-based paints that are free of volatile organic compounds (VOCs) in compliance with international environmental regulations. It highlights the benefits of the Sanaeum product line, its applications across various materials, and the company’s strategies for reducing pollution and promoting clean technology in the paint industry. The document also outlines the market size and the partnership strategies for expanding production and certification efforts in line with global warming solutions.

1. SDI ENG Eco-Friendly, Water-based Paint VOCs Free #850-19, Osikdo-Dong, Kunsan-city, KOREA Tel : 8263- 463- 5444 fax: 8263-463-5441

2. 1. Outline 1.1 Motivation International Needs UN , IMO (MARPOL 73/78) 6 Kinds of Item (Ozone depleting substances, N2O, SOx, VOCs, Burnt in the vessel (Incinerator), Fuel quality) - Air Pollution(Attached 6) : Accepted in 1997 Announcement in 2005/5/19 - When Pass all 6 Items, IAPP Certificate issued The world’s first VOCs Free Paint EU’s Air Pollution Regulations Paint VOCs Guidebook Published Regulatory guidelines in European Paint Industry Association Prevention of Marine Pollution by the Standards Established and Enforced -International Law and the Same (Enforced from Jul. 2008 ) Seoul Air Environment by the Standards prepared and enforced(2008) Selected to Challenge the government in Jun.2008 Development finished in May 2009 Current Production and Popularization water -based Paint ,original material and Technical development of Clean Painting Feb.2009 to develop this project for five years with 40 leading domestic companies to participate in progress Korea’s Environmental Regulations

3. Korea Paint, Ink Cooperatiive(KPIC), seoul air Environment resources Usage Paint Production Market Size * If China, Korea’s market to about 8 times forecast(Marine reserves are estimated quantities ) 1. Outline 1.2 Paint market size Usage Paint Production Performance, Production ratio in Korea( ’based 2003 ) Plastic Road Signs Steel Structure Industrial Electronics Marine Plastic Etc Construction Automotive Marine Electronics Industrial Steel Structure Road Signs Section Market ( mil US D) Construction 420 Industrial 500 Automotive 440 Marine 290 Steel Structure 100 Road Signs 40 Plastic 35 Total 1,825

4. 2. SANAEUM Products SANAEUM’S Mean? Naturalism water-based durable coating Natural minerals as raw materials for paint, veil-developed brand names, It represents the name of the Forest environment, such as friendly nature Paint. SANAEUM is water-based silicon-Acrylic emulsion as a binder of single component construction, top coating as a steel, Mortar, ALC board, material in various high-temperature type, a fast dry, quickly to form a silica film of silicon-Acrylic Distinctive weathering, durability, anti-pollution, anti-neutralization and is a very good product. Merits of sanaeum ? 2.1 SANAEUM’S Mean ? VOCs remove Anti-virus Dew control CO2 remove Anti-corrosion Anion Release Flame retardant Anti-pollution protect toxic Good for health

5. SANAEUM Special Point Naturalism water-based durable coating- Flame Retardant 1 class Point USE Concrete Structures, Mortar board, ALC board, and Any board structure built in and out materials Any Metals(Iron, Zinc, copper alloy, Aluminum, Tin ) Steel structure(Construction steel beams, Industrial structures) Highway guardrails Marine and FRP wood Excellent Weather ability, Durability, Water repellency. Excellent Adhesion, Abrasion resistance, Water resistant. Excellent rust, because salt-repellency has excellent features. Long-term protection of concrete from the salt and excellent Neutral protection . Various material (Concrete, Metals, Nonferrous metals, FRP. Etc.) Excellent adhesion to all the place to have wider coverage . Water-based, because it is environmentally harmless inclined to health. excellent Anti-pollution and then original state implementation by rain. Steel beams Marine Machinery Car etc. 2.2 SANAEUM Point 2. SANAEUM Products

6. Specifications Coating System 2.2 SANAEUM Point 2. SANAEUM Products ITEM Concrete Steel Wood, FRP Primary (10 ~ 15 µ m) sanaeum 21000 sanaeum 23000 sanaeum 22000 Middle (40 ~ 60 µ m) sanaeum 31000 sanaeum 33000 sanaeum 32000 Coating (30 µ m) sanaeum 41000 sanaeum 43000 sanaeum 42000 sanaeum 48000 sanaeum 41000 sanaeum 31000 sanaeum 21000 sanaeum 48000 sanaeum 43000 sanaeum 33000 sanaeum 22000 sanaeum 42000 sanaeum 32000 sanaeum 22000 Concrete Steel Wood and FRP

7. 3. Strength Substitution of Solvent-based paints. It can help Global Clean condition . VOCs FREE Paints Reduction volume : 40~750 g/liter 기 TesTt 준 Our products Normal products VOCs content (g/Liter) 40g(water base) ~ 750g(solvent base) 0.03g Painting system coating : inorganic middle : inorganic primary : organic solvents water-based age 2 Years 5 Years Construct-ability Gas mask Skin protection Safety equipment (fire prevention) simple equipment Maintenance complicate simple Price ratio 100 Top coating 90 middle 110 Primary coating 70 CO2 remove X 75%(3 Hours) Compare to the others Industrial Accident Asphyxiation, explosion, fire Accident Prevention

8. Wood(primary + middle) FRP(primary + middle + top coating) Metal(primary+ top coating) Brick(primary+ top coating) 4. Construction practices 4.1 Demonstration Paint on a various kind of materials available

9. Corrosion condition Water-based primary + top coating (clear) Corroded steel with paint abailable 4. Construction practices 4.1 Demonstration Water-based primary (clear) Water-based primary + Middle + top coating (Ivory) Water-based primary (clear) Solvent-based coating + Water-based top coating (clear)

10. + water-based middle Corrosion of steel pipe Can coating on corrosion condition 4. Construction practices 4.1 Demonstration Corrosion of steel pipe Corrosion of steel pipe Corrosion of steel pipe + water-based coating(red) Corrosion of steel pipe

11. Flame Test Using special-purpose 4. Construction practices 4.1 Demonstration Urethane Foam Urethane Foam + water-based primary + top coating tile middle Top coating Tile+ water-based primary + middle + top coating

12. Bathroom remodeling Building Facades(Dalian China) Building Facades(remodeling) Building Inside(remodeling ) 4. Construction practices 4.1 Demonstration

13. Flame-resistant coating exterior of temples in korea + primary + top coating + primary + top coating 4. Construction practices 4.1 Demonstration

14. Tunnel construction process Pangyo-Korea road construction 4. Construction practices 4.1 Demonstration Raw material Primary Paints middle paints Top coating paints

15. 6 Global Warming Potential and major causes 5. Business Strategy VOCs : Volatile Organic Compounds Use Energy VOCs 57% Engine Exhaust Gases More 80% Freon Gases The others CO 2 1 CH 4 21 N 2 O 310 HFCs 150~11,700 PFCs 6,500~9,200 6FS 23900

16. 5. Business Strategy-partnership LED Lighting Water-based Foams Water-based paint CDM, JI Business CER issued (same Cash) Certification from the Authority (Business plan) Nation & Nation Nation & Company Company & Company Certified Emissions Rights Product Sales Profit Carbon Emissions CER gain (Dual effect) CH4 21 CFCs 1300 CO2 1 High-efficient engine oil N2O 310 CDM( Clean Develop Mecchanism), JI (Joint Implementation) CERs (Certified Emission Rights) Green Building Green Ship

17. 5. Business Strategy CDM, JI Business CER issued (same Cash) Capable Volume of CERs in KOREAN Market(2005’) - Target volume reduction of korean government : 1 bil CO2 ton /year CDM( Clean Develop Mecchanism), JI (Joint Implementation) CERs (Certified Emission Rights) 40 mil CO 2 ton LED Lighting CO2 1 CE, UL, Korean Patent High-efficient engine oil N2O 310 40 mil CO2 ton API Energy Conserving License, Korean patent, chinese patent Water-based paint CH4 21 More 9 mil CO 2 ton Korean Government task Water-based Foams CFCs 1300 52 mil CO2 ton Applied korean Patent.

18. Almost regulation oriented Global Warming solution EUROPE ASIA S. AMERICA OCEANIA AFRICA America Proposition65 California RoHS(10.01 plan) N. AMERICA JAPAN AMERICA Japan J-Moss(06.7.1) Europe RoHS (06.7.01) WEEE (05.8.13) EuP REACH PFOS(08.06.27) China RoHS, 07.3.1 CHINA KOREA PoHS (08.1.1) ELV WEEE RoHS REACH RoHS 46 EuP

19. Solutions for Global Warming Should need to participate everyone around the world. it should be adopt to Lock-in system, because of developing countries such as BRICs. it should be low price, simple. it could get CERs for Developed countries, get CERs budget for Developing countries. it need circuit logics. 6. Viewpoint of Strategy What is your choice ? Registration program Accumulate R&D Search CER Items Exchange CERs Extend budget

20. Patrnership in USA. it chould be transact green tech. it should be collaborate business. we want branches every country in the world. 7. What we want ?

21. Thank you.

22. * References : test data

23. Engine oil Auto Ballast System Energy apparatus SDI ENG * References : Intellectual property

24. Exhaust gas test data API Energy Conserving License SDI ENG 기준 대비 1% 배출 * References : about engine oil

25. Water-based paints Engine oil SDI ENG * References : Eco-label test

26. * References : certification

27. ISO 9001, 14001 * References : certification R&D LAB Tech Transaction Agency

28. * References : Export contract