Reproduction of any material whether by photocopying or storing in any medium by electronic means or otherwise is prohibited without prior written consent of Infineum International Limited.

© Copyright INFINEUM INTERNATIONAL LIMITED 2007. All rights reserved

See the legal disclaimer notice on www.Infineum.com

"INFINEUM", "DOBANAX", "PARATAC", "SYNACTO", "VEKTRON", and the corporate mark comprising the interlocking ripple device are trademarks of Infineum International Ltd. “VISTONE” is a trademark of Exxon Mobil Corporation used under licence

by Infineum International Limited.

Lubricants Russia 2007

Moscow, 28-29 November 2007

The Changing World of Lubricants, Fuels and Additives

Bruce Royan

Global Sales Director

Infineum International Limited

© Copyright INFINEUM INTERNATIONAL LIMITED 2007 2

About Infineum

A leading global transportation additive enterprise

Develop, manufacture and market advanced lubricant and fuel additives

HQ in UK, regional business & technology centres in UK, US and Singapore

Technology-intensive, R&D-focused

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Drivers of Change

Consumers GlobalizationEnvironment Hardware

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Dynamics of Change

Base Stock Quality

Additive Formulation & Component Requirements

OEM Design Trends

Consumers

Emission & Fuel Economy Requirements

Incentives for Alternate Fuels

Legislation

Fuels Specifications

Lubricant Specifications

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Global Transportation Lubricant Demand

Annual Growth

Total ~0.4%

0

5000

10000

15000

20000

25000

30000

35000

40000

2005 2010 2015

RU 2-4%

AP 1-2%

EU ~0%

LA -0.5%

NA -1%

35,000 35,800 36,225

kT

Annual Growth

Total ~0.4%

0

5000

10000

15000

20000

25000

30000

35000

40000

2005 2010 2015

RU 2-4%

AP 1-2%

EU ~0%

LA -0.5%

NA -1%

35,000 35,800 36,225

kT

Infineum projections from model based on input variables including GDP, drain interval, technology factors and vehicle fleet make-up.

Economic activity (GDP) is the strongest predictor of lubricant demand.

Car sales in Russia is estimated to be more than 2M units in 2007, growing at a rate of almost 20% to 30%

Domestic manufacturers market share estimated at 39% followed by GM (12%) and Ford (8%)

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Hardware Advancements: Gasoline Engines

VW 1.4L TSI Turbo

Mazdaspeed 2.3L Turbo

BMW-PSA1.6L Turbo

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Hardware Advancements: Diesel Engines

Honda 2.2L iCTDi Turbo Diesel

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Alternative Powerplants

Infineum TRENDS2007 Power Transmissions 14

PT14

Toyota Prius Hybrid

BMW Hydrogen 7

Honda FCX Hydrogen Fuel Cell Vehicle Concept

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Renewable Fuel Sources

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Energy-To-Liquid Concept

Infineum TRENDS2007 Fuels 16

FL17

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Challenges in Lubricants and Additives

Infineum TRENDS2007 Fuels 4

FL04

Formulation of higher-quality lubricants:1. Higher dosage of additives

2. Greater use of costly additive chemistry

3. More sophisticated anti-wear systems

4. Greater use of technically advanced baseoils

Increasing use of alternative fuels adds complexity

Opportunities will emerge in formulations for hybrids

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Challenges in Fuels and Additives

Diesel Sulphur Reduction

Density Reduction

Distillation Range Reduction

Cetane Increase

Gasoline Elimination of Lead

Sulphur Reduction

Aromatics Reduction

Olefins Reduction

Oxygenates Addition

Biofuels Cold Flow Improvers

Lubricity Additives

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What Does It All Mean?

The challenge is as high and the pace of change is as fast in Russia as anywhere else in the world

Identifying opportunities for investment and innovation

Fostering collaboration between OEMs and oil/additive industries

Advocating “global test/local spec” approach

Holistic development approach – systems, not just components

Reproduction of any material whether by photocopying or storing in any medium by electronic means or otherwise is prohibited without prior written consent of Infineum International Limited.

© Copyright INFINEUM INTERNATIONAL LIMITED 2007. All rights reserved

See the legal disclaimer notice on www.Infineum.com

"INFINEUM", "DOBANAX", "PARATAC", "SYNACTO", "VEKTRON", and the corporate mark comprising the interlocking ripple device are trademarks of Infineum International Ltd. “VISTONE” is a trademark of Exxon Mobil Corporation used under licence

by Infineum International Limited.

Thank You

Shaun Kennedy

Vice President, Technology

Infineum International Ltd