Quaker Houghton · NYSE:KWR

Quaker Houghton — Investor Presentation (December 2020)

57 slides from Quaker Houghton's investor presentation, Dec 10, 2020

1. Slide 1: Legacy Quaker Soluble Oils & Neat Oils

   Legacy Quaker Soluble Oils & Neat Oils Steve Drum – Indirect SPLM December 10, 2020

2. Slide 2: Introduction to the LQ Technologies

   Introduction to the LQ Technologies 1. Why are we introducing additional products into the existing distributor portfolio? • Quaker Houghton is committed to the integration of our portfolios, identifying the best in class offering in what were two very strong legacy portfolios. • Going into the comb

3. Slide 3: Introduction - Legacy Quaker's Water Solubles Distributor Offering

   Introduction - Legacy Quaker’s Water Solubles Distributor Offering 1. QUAKERCOOL® 7020 CG 2. QUAKERCOOL ® 7450 B 3. QUAKERCOOL ® 740 4. QUAKERCOOL ® 770 5. QUAKERCOOL ® 2778 AE 2 6. QUAKERCOOL ® 8013 3 ©2019 Quaker Houghton. All Rights Reserved

4. Slide 4: QUAKERCOOL 7020 CG

   QUAKERCOOL® 7020 CG SEMI-SYNTHETIC MICRO-EMULSION 4 ©2019 Quaker Houghton. All Rights Reserved

5. Slide 5: QUAKERCOOL 7020 CG

   QUAKERCOOL® 7020 CG QUAKER CHEMICAL - Confidential

6. Slide 6: Market Segments / Opportunities QUAKERCOOL 7020 CG

   Market Segments / Opportunities QUAKERCOOL ® 7020 CG Opportunities to look for… Current QUAKERCOOL ® 7020 CG HIGH LEVEL MARKET MARKET SUB- OPERATIONAL SEGMENT SEGMENT CUSTOMER SITES SEGMENT OPPORTUNITIES Transportation - OPPORTUNITIES CUTTING, USING CGI Components Driveline AMERICAN AXLE DRILLING, E

7. Slide 7: Product Description QUAKERCOOL 7020 CG

   Product Description QUAKERCOOL® 7020 CG QUAKERCOOL® 7020 CG is a semi-synthetic specifically designed for heavy duty ferrous machining, grinding and honing of Compacted Graphite Iron [CGI] as well as cast, ductile and forged irons. Demonstrates very significant reductions in tool wear involving CGI

8. Slide 8: QUAKERCOOL 7450 B

   QUAKERCOOL ® 7450 B SEMI-SYNTHETIC MICRO-EMULSION 8 ©2019 Quaker Houghton. All Rights Reserved

9. Slide 9: QUAKERCOOL 7450 B

   QUAKERCOOL® 7450 B QUAKER CHEMICAL - Confidential

10. Slide 10: Market Segments / Opportunities QUAKERCOOL 7450 B

    Market Segments / Opportunities QUAKERCOOL® 7450 B Opportunities to look for… OPERATIONAL Competitive Landscape OPPORTUNITIES CUTTING, DRILLING, CASTROL MB-50, REAMING, TAPPING, QualichemC-270, HONING, GRINDING [TAPPING OPERATIONS FUCHS ECOCCOL 711 B, VERY SUCCESSFUL], BROACHING SOLUBLE CUTTING 7088

11. Slide 11: Product Description QUAKERCOOL 7450 B

    Product Description QUAKERCOOL ® 7450 B QUAKERCOOL 7450 B is a high-performance microemulsion product ideally suited to all ® operations demanding premium surface finish and is ideal for the machining of both ferrous and non-ferrous alloys. Delivers superior tapping performance on 356-T6 aluminum al

12. Slide 12: QUAKERCOOL 740

    QUAKERCOOL ® 740 SEMI-SYNTHETIC MICRO-EMULSION 12 ©2019 Quaker Houghton. All Rights Reserved

13. Slide 13: QUAKERCOOL 740

    QUAKERCOOL® 740 QUAKER CHEMICAL - Confidential

14. Slide 14: Case Study: QUAKERCOOL 740

    CASE STUDY: QUAKERCOOL 740 QUAKER CHEMICAL - Confidential

15. Slide 15: Market Segments / Opportunities QUAKERCOOL 740

    Market Segments / Opportunities QUAKERCOOL® 740 High Level Sold To - Customer Segment (QH) Market Segment (QH) Name Transportation - Components Steering & Chassis ZIMMARK Industrial Components - Industrial Power Gen (Engine) BRIGGS & STRATTON Transportation - Light Vehicles - Engine & OEM Transmissi

16. Slide 16: Product Description QUAKERCOOL 740

    Product Description QUAKERCOOL ® 740 QUAKERCOOL® 740 is a boron-free emulsifiable metalworking fluid designed for ferrous machining and grinding operations requiring good lubricity, cleanliness, cooling and corrosion protection Features and Benefits • Forms a tight microemulsion that provides excell

17. Slide 17: QUAKERCOOL 770

    QUAKERCOOL ® 770 Synthetic Ester based 17 ©2019 Quaker Houghton. All Rights Reserved

18. Slide 18: QUAKERCOOL 770

    QUAKERCOOL® 770 QUAKER CHEMICAL - Confidential

19. Slide 19: Case Study: QUAKERCOOL 770

    CASE STUDY: QUAKERCOOL 770 QUAKER CHEMICAL - Confidential

20. Slide 20: Market Segments / Opportunities QUAKERCOOL 770

    Market Segments / Opportunities QUAKERCOOL 770 Current QUAKERCOOL ® 770 High Level Customer Segment Market Segment Sites Operational Agriculture & Off- Opportunities Road - Engine & Competitive Operations requiring Transportation - Transmission Landscape premium surface Components Components AXIS Fu

21. Slide 21: Product Description QUAKERCOOL 770

    Product Description QUAKERCOOL ® 770 QUAKERCOOL® 770 is a high-performance mineral oil free micro-emulsion ideally suited to all operations demanding premium surface finish quality and consistent lubrication. Best suited for the machining of ferrous metals including stainless steels and other high-n

22. Slide 22: QUAKERCOOL 2778 AE 2

    QUAKERCOOL ® 2778 AE 2 Soluble Oil – 22 ©2019 Quaker Houghton. All Rights Reserved

23. Slide 23: QUAKERCOOL 2778 AE

    QUAKERCOOL 2778 AE QUAKER CHEMICAL - Confidential

24. Slide 24: Market Segments / Opportunities QUAKERCOOL 2778 AE

    Market Segments / Opportunities QUAKERCOOL 2778 AE QUAKERCOOL 2778 AE 2 current markets and references… High Level Segment Market Ship To - Customer (QH) Segment (QH) Name Competitive Transportation - Steering & Landscape Components Chassis AKEBONO BRAKE Master Trim 585 Industrial Other Industrial C

25. Slide 25: Product Description QUAKERCOOL 2778 AE 2

    Product Description QUAKERCOOL ® 2778 AE 2 QUAKERCOOL® 2778 AE is a synthetic heavy-duty machining and grinding fluid that provides a high degree of lubrication, cleanliness, cooling, and corrosion protection. It is suitable for use on difficult operations involving high alloy steel, carbon steel, a

26. Slide 26: QUAKERCOOL 8013

    QUAKERCOOL ® 8013 SYNTHETIC - NEUTRAL pH TECHNOLOGY 26 ©2019 Quaker Houghton. All Rights Reserved

27. Slide 27: QUAKERCOOL 8013

    QUAKERCOOL 8013 QUAKER CHEMICAL - Confidential

28. Slide 28: Case Study: QUAKERCOOL 8013

    CASE STUDY: QUAKERCOOL 8013 QUAKER CHEMICAL - Confidential

29. Slide 29: Market Segments / Opportunities QUAKERCOOL 8013

    Market Segments / Opportunities QUAKERCOOL 8013 High Level Market Segment Segment Account Light Vehicles - Transportation - Engine & OEM Transmission HONDA Competitive Landscape Transportation - Components Powertrain PACE INDUSTRIES SYNTILLO 9913

30. Slide 30: Product Description QUAKERCOOL 8013

    Product Description QUAKERCOOL ® 8013 QUAKERCOOL® 8013, is a neutral pH high performance, heavy duty synthetic metalworking fluid for use on aluminum and aerospace alloys. It is specially formulated for aluminum machining and provides superior surface finish in critical machining applications. QUAKE

31. Slide 31: Introduction - Legacy Quaker's Neat Oils Distributor Offering

    Introduction - Legacy Quaker’s Neat Oils Distributor Offering 1. QUAKERCUT ® 004 PE 2. QUAKERCUT ® 010 ES 3. QUAKERCUT ® 005 XP 4. QUAKERCUT ® 010 EP 5. QUAKERCUT ® 013 ESP 6. QUAKERCUT ® 016 ESP 31 ©2019 Quaker Houghton. All Rights Reserved

32. Slide 32: Neat Oils (Mineral Oil Based)

    Neat Oils (Mineral Oil Based) QUAKERCUT 004 PE QUAKERCUT 010 ES

33. Slide 33: QUAKERCUT 004 PE

    QUAKERCUT 004 PE 33 ©2018 Quaker Houghton. All Rights Reserved

34. Slide 34: Complimentary Product Introduction – Standard Honing Oil

    Complimentary Product Introduction – Standard Honing Oil Customers QUAKERCUT 004 PE • CAT • Field proven honing fluid • Cummins • Honing • Ghering • Lapping • GM • Light grinding Approvals • Does not contain sulfur or • Ghering Hone chlorinated paraffin • Nagal Hone 34 ©2018 Quaker Houghton. All Rig

35. Slide 35: QUAKERCUT 010 ES

    QUAKERCUT 010 ES 35 ©2018 Quaker Houghton. All Rights Reserved

36. Slide 36: Complimentary Product Introduction – Standard Grinding Oil

    Complimentary Product Introduction – Standard Grinding Oil Customers QUAKERCUT 010 ES • Ford • GE • Luftex – Gear Manufacturing • Mineral oil, ester and EP • Ford additive (sulfur) grinding oil • Landis • Renault • Designed for CBN and • RVI standard grinding wheel applications • Medium to heavy-dut

37. Slide 37: Case Study: QUAKERCUT 010 ES

    CASE STUDY: QUAKERCUT 010 ES CHALLENGES An automotive manufacturer in Austria was looking to solve a problem with chattermarks on camshafts after grinding, as well as improve overall productivity and performance of their grinding operations. The manufacturer’s quality measurement machine was not det

38. Slide 38: Neat Oils (Ester Based Oil Technology)

    Neat Oils (Ester Based Oil Technology) QUAKERCUT 005 XP QUAKERCUT 010 EP

39. Slide 39: Ester Based Series

    Ester Based Series QUAKERCUT 005 XP – 010 EP 39 ©2018 Quaker Houghton. All Rights Reserved

40. Slide 40: ©2018 Quaker Houghton. All Rights Reserved

    40 ©2018 Quaker Houghton. All Rights Reserved

41. Slide 41: Complimentary Product Introduction – Ester based Honing Oil

    Complimentary Product Introduction – Ester based Honing Oil QUAKERCUT 005 XP Customers • Ester Based Honing Oil • Timken – Mexico, Romania • Low mist • SKF – EU • High Flashpoint • Schaeffler - EU • Improved working environment. (no placard) Approvals • Transor – Filter Approval • Nagel Hone 41 ©201

42. Slide 42: QUAKERCUT 005 XP Competition

    QUAKERCUT 005 XP Competition – • Castrol Carecut ES 3 • Blaser Vascomill 5 • Fuchs Plantocut • Qualichem EQO-MAX 42 ©2018 Quaker Houghton. All Rights Reserved

43. Slide 43: Case Study: QUAKERCUT 005 XP

    CASE STUDY: QUAKERCUT 005 XP 43 ©2018 Quaker Houghton. All Rights Reserved

44. Slide 44: Complimentary Product Introduction – Ester based Honing Oil

    Complimentary Product Introduction – Ester based Honing Oil QUAKERCUT 010 EP Customers • Ester Based Grinding Oil • CAT • Low mist • High Flashpoint • Improved working Approvals environment. (no placard) • Junker - Grinder 44 ©2018 Quaker Houghton. All Rights Reserved

45. Slide 45: QUAKERCUT 010 EP Competition

    QUAKERCUT 010 EP Competition – • Castrol Carecut ES 2 • Blaser Vasomill 10 • Fuchs Plantocut • Qualichem EQO-MAX • Master Chemical OE310 HS 45 ©2018 Quaker Houghton. All Rights Reserved

46. Slide 46: Case Study: QUAKERCUT 010 EP

    CASE STUDY: QUAKERCUT 010 EP 46 ©2018 Quaker Houghton. All Rights Reserved

47. Slide 47: Neat Oils (GTL Based Oil Technology)

    Neat Oils (GTL Based Oil Technology) QUAKERCUT 013 ESP QUAKERCUT 016 ESP

48. Slide 48: QUAKERCUT 013 & 016 ESP GTL Base Oil Technology

    QUAKERCUT 013 & 016 ESP After Separation, the GTL GTL Base Oil Technology process consists of three final stages: 3. GASIFICATION: Oxidation of natural gas to produce synthesis gas, which is a mixture of hydrogen and carbon monoxide. Impurities are removed from this syngas at this stage. 4. REACTOR/

49. Slide 49: QUAKERCUT 013 & 016 ESP Benefits of GTL Base Oils

    QUAKERCUT 013 & 016 ESP GTL Base Oil Technology Benefits of GTL Base Oils: • Extra purity • Uniform properties • Reduced Misting • Lower Noack rating • Increased flashpoint • Lower odor 49 ©2018 Quaker Houghton. All Rights Reserved

50. Slide 50: QUAKERCUT 013 & 016 ESP GTL Oil Competition

    QUAKERCUT 013 & 016 ESP GTL Base Oil Technology GTL Oil Base Oil Competition: • QUALICHEM • QualiChem offers more than 30 different GTL-based oils in a variety of viscosities and additive packages for use in numerous machining and turning operations. – Production Machining • Ometa – OEMETOL Brand 50

51. Slide 51: QUAKERCUT 013 & 016 ESP GTL Oil Competition

    QUAKERCUT 013 & 016 ESP GTL Base Oil Technology GTL Oil Base Oil Competition: • Fuchs • ECOCUT LT series • GTL Oil Industry – Lubes and Greases • https://www.lubesngreases.com/magazine-emea/gtl-a-great-technology-but-is-its-great- future-behind-it/ 51 ©2018 Quaker Houghton. All Rights Reserved

52. Slide 52: QUAKERCUT 016 ESP

    QUAKERCUT 016 ESP 52 ©2018 Quaker Houghton. All Rights Reserved

53. Slide 53: Complimentary Product Introduction – GTL Base Oil Grinding Oil

    Complimentary Product Introduction – GTL Base Oil Technology - Grinding Oil QUAKERCUT 016 ESP Customers • GTL (Gas to Liquid) base oil • Mahle technology • Reduced Mist • Higher Flashpoint Approvals • Contains EP additive for • Junker Grinder improved performance • Designed for CBN and standard Comp

54. Slide 54: Case Study QUAKERCUT 016 ESP

    CASE STUDY QUAKERCUT 016 ESP 54 ©2018 Quaker Houghton. All Rights Reserved

55. Slide 55: QUAKERCUT 013 ESP

    QUAKERCUT 013 ESP Benefits: Applications:  Unique blend of oil, extreme pressure QUAKERCUT 013 ESP is suitable for all grades of steel, including difficult to machine high nickel additives and synthetic ester lubricants alloys. This product contains synthetic ester and increase tool life and improv

56. Slide 56: Complimentary Product Introduction – GTL Base Oil Grinding Oil

    Complimentary Product Introduction – GTL Base Oil Technology - Grinding Oil QUAKERCUT 013 ESP Customers • GTL (Gas to Liquid) base oil • Meritor technology • Reduced Mist • Higher Flashpoint Competition • Contains high level of EP • Castrol Variocut B 46 TC additive for improved • Fuch Ecocut 710 LE

57. Slide 57: Questions?

    Thanks for your attention Questions? 57 ©2019 Quaker Houghton. All Rights Reserved

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