5/25/2015 For Internal Use - Confidential 1

Introducing NACO’s Synthetic Base Oils (SBO’s):

SinoSyn PAO40A

SinSyn PAO100A

SynNaph AN23

SynNaph SN2

Commercial Marketing Forum I, 70th STLE, May 20, 2015

Novitas Chem Solutions, LLC

Presented by: Phil Levy

5/25/2015 For Internal Use - Confidential 2

Competitor

ANAN23: Light Yellow Fluid (Commercial)

AN23H: Water White Fluid (Pilot)

＋LAO

(Linear alpha olefins)

Cat.

AN23: Performance Benefits & Applications

Applications:

� Gear Oils (Automotive & Industrial)

� Power Train Applications

� Industrial Oils & Greases

� Bright Stock Replacement

� Heavy Duty Engine Oil

� OBCSG Grease

Performance Benefits: � Outstanding Thermal/Oxidative Stability

� Enhance Solvency/improved Additive/Thickener Compatibility

� High Viscosity/Reduces VII Usage

AN23 based Blend Stock: SBS30*

75% AN23 + 25% PAO100A*

Presented by Ernie Henderson to ICIS Amsterdam, 2014

SBS30:

Synthetic

Bright Stock

30cSt @100C

SBS30: Synthetic Version Bright Stock

Inspection PropertiesSBS30 (25% PAO100

+ 75% AN23)*

PAO/HC-2000

(12.9% VII)**PIB

Bright Stock

(Gr I)

Bright Stock

(Gr II)

100C Viscosity 33 33 34 30 30

40C

Viscosity345 331 504 448 395

VI 135 134 100 95 104

Pour Point (C) <-30 <-30 <-30 -18 -15

Aniline Point (C) 128 160 160 127 141

Price (Rough Scale) 3 4 2 1 1

Shear Stability ++ ++ - ++ ++

Low Temp Performance ++ ++ - - -

Solvency ++ - - + -

Data courtesy of Mitsui Chemical Japan **

AN23 for Grease Application

AN23 (1,000N)

� 1,000N Naphthenic with Synthetic qualities

� Solvency Transpired to Transparency

� High VI and excellent Low Temp

�Outstanding Consistency/Mechanical Stability

�Excellent Thermal/Oxidative Stability

AN23 for OBCS Grease

Heavy Duty truck Fleet Tests Conducted in China

� NACO’s AN based VS Commercial MO

� Eight Heavy Duty Trucks Involved

� Two grades: 20W50 and 15W40

Heavy Duty Trucks in China

� Heavy Loads

� Rugged Terrains

� Long Road Trips

AN23 based Heavy Diesel Engine Oil*

* Patent Pending

Composition 15W40

SynNaph AN23 43 63.5

Group III Base Oil 250N 44 23.5

CI-4 Additive Package 13 13

Kinematic Viscosity, cSt

40 ℃ 112.4 123.8 161 148.9

100 ℃ 14.49 18.9 18.03 19.8

100 ℃ After 30,000KM 14.53 17.8 13.16

Kv100C Change After 30KM -0.04 0.23 6.64

% Change 0% 1% 34%

Viscosity Index 131 172 124 129.8

Flash Point, ℃ 271 233 263 200

Pour Point, ℃ -38 -33 -38 -20

CCS viscosity at temp. ,6870 (-20C) 3,525(-15C) 7,510 (-15C) 8,990(-15C)

MRV. mPa.s at temp. 11,800 (-25C) N/A 1,4000 (-20C) 55,600(-20C)

NOAC Loss, % 3.4 6.5 3.3 N/A

TBN 9.2 12.1 9.2 8.2

TBN After 30KM 8.7 8.6 7.17

TBN Change After 30KM 0.5 0.6 1.03

% Change 5% 7% 13%

Inspection Properties

20W50

MO Brand

(China)Synthetics

Viscosity Change at a minimum

Kv,m

m2

/s

KV100 Viscosity Change Profile

Driving Distance, KM

Kv, m

m2

/s

KV40 Viscosity Profile

20W/50

15W/40

20W/50

15W/40

12

14

16

18

20

0 10 20 30 40 50 60

A1

C1

C2

A2

C3

A3

A4

B1

100

120

140

160

180

0 10 20 30 40 50 60

A1

C1

C2

A2

C3

A3

A4

v40

Driving Distance, KM

Additive (TBN) and Wear (Fe) profile

TB

N, K

OH

/g

6

8

10

0 10 20 30 40 50 60

A1

C1

C2

A2

C3

A3

A4

Driving Distance, KM

Fe

pp

m

0

25

50

75

100

0 10 20 30 40 50 60

A1

C1

C2

A2

C3

A3

Driving Distance, KM

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High Viscosity PAO For Grease

OBCS Sulfonate Grease Example

� Near Transparency

� Synergistic with AN23

Introducing SynNaph SN2 (4005)

Item SynNaph SN2 (4005) Test Method

Appearance Colorless Bright & Clear Visual

Density@20℃, g/cm3 0.8317 ASTM D1298

Kinematic Viscosity, mm2/s 1.58

100 ℃ 5.5

40 ℃ 457

-40℃

Viscosity Index - ASTM D2270

Flash Point(PM), ℃ 150 ASTM D93

Pour Point, ℃ <-70 ASTM D97

Color < 0.5 ASTM D1500

Acid Number, mgKOH/g 0.01 ASTM D974

Aniline Point，℃ 86 ASTM D611

ASTM D445

NACO’s Research Center

NACO Plant Information

• Plant Location: Shanghai Chemical Industry Park

• Production Capacity: 50KT/A

• First Stage

– Three Production Lines

• High viscosity PAO: 15,000MT

• AN23: 10,000 MT

– Completed in October 2014

NACO In Operations

Additives for NACO Synthetics

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R&OIndustrial

Gear Oils

Hydraulic Oils

Compressor Oils

TPPT

C4-TPPT

AW-3160

AW-3108

AW-3305

AW-3211

AO-1008

AO-1248

AO-1300

RP-4102

CI-4208

CI-4309

Greases

PAO40A - PAO100A - AN23

FM-2101

FM-5208

EP-2901

EP-2301

EP-2000

FM-5104

EP-2901

SP-422D

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NOVITAS WOULD

LIKE TO THANK

STLE FOR THIS

OPPORTUNITY

AND TO

EVERYONE FOR

ATTENDING

For questions, please visit us during the show at booth

316-318 Shanghai NACO