© 2010 Critical Materials

STRUCTURAL SYSTEMS HEALTH MANAGEMENT Critical Materials short presentation (who are we?) 3 PRODDIA® Wind arguments (why Proddia®?) 7 Technical information (how it works?) 10 Case study – rotor blade (over request) 2

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT Critical Manufacturing OPorto, PT Critical Manufacturing Suzhou, China Critical Manufacturing Regensburg, DE Critical Software PT, UK, USA, RO, BR, MOZ CRITICAL GROUP 3

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT VISION Self-healing bio-inspired materials will revolutionize the design and maintenance of long lasting equipment. Critical Materials will be a technology provider for the “nervous system and bio-brain” of critical applications of advanced materials. MISSION To Provide Technology and Efficient Products for Diagnosis and Prognosis of Critical Applications of Advanced Material Systems VISION & MISSION 4

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT CMT is focused on the continuous evaluation of the material condition and on the structural integrity of critical components. CORE PRODDIA® looks beyond the traditional CBM and SHM solutions! OffshoreWind Aeronautics, Defense & Space 5

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT PRODDIA® focus on the continuous evaluation of the material condition and on the structural integrity of critical components. PRODDIA® looks beyond the traditional SHM solutions featuring: A USER FRIENDLY GRAPHICAL USER INTERFACE, AN INNOVATIVE CONDITION ASSESSMENT TECHNOLOGY - allowing accurate damage diagnostics & prognostics, A LOW-DENSITY SENSOR NETWORK AN INTEGRATED MANAGEMENT SOLUTION. PRODDIA® IS AN ADVANCED SHM SOLUTION. BUILT INTO ONE INTEGRATED SENSORS & SOFTWARE TOOL. 6

© 2010 Critical Materials WHY PRODDIA? 7

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT In WTG farms (specially offshore) the costs for maintenance are high, being dominated by unexpected severe failures leading to reactive maintenance. The costs of downtime (among others..) drive the need for condition monitoring. MAINTENANCE PROBLEM (€) It seems to be clear: We badly need BLADE CMS to predict blade failure. We need indication of upcoming blade structural degradation in order to launch proactive maintenance or repair process. Linkedin, Wolfang Holstein, Jan 2012 It seems to be clear: We badly need BLADE CMS to predict blade failure. We need indication of upcoming blade structural degradation in order to launch proactive maintenance or repair process. Linkedin, Wolfang Holstein, Jan 2012 David Brown’s research emphasizes that reactive maintenance for the average utility-scale wind farm can cost $1.5million more – each year – than preventative maintenance. Linkedin, Jon Hartman, Jan 2012 David Brown’s research emphasizes that reactive maintenance for the average utility-scale wind farm can cost $1.5million more – each year – than preventative maintenance. Linkedin, Jon Hartman, Jan 2012 Cost variables: -Downtime -Expensive material savings -Unexpected maintenance costs -Inspection costs (planned) 8

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT INCREASE ASSET AVAILABILITY 9 PRODDIA™ CONTRIBUTION EXTEND ASSET LIFETIME (“small defects remain small”) SIGNIFICANT REDUCTION OF O&M COSTS Management of dispersed and distant assets Integrated planning of inspection and maintenance operations Planning operations based on weather forecasts Optimization of intervention times, travels and resources SIGNIFICANT REDUCTION OF O&M COSTS Management of dispersed and distant assets Integrated planning of inspection and maintenance operations Planning operations based on weather forecasts Optimization of intervention times, travels and resources 9

© 2010 Critical Materials HOW IT WORKS? 10

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT the ON-SYSTEM DATA ACQUISITION and SENSOR NETWORK and the PRODDIA® SOFTWARE WORKBENCH PRODDIA® WIND IS COMPOSED BY 2 SUB-SYSTEMS 11

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT PRODDIA® WIND IN 5 SINGLE STEPS Sensor study and placement “Baseline” definition (initial set-up and adjustments) Real data collection Calculation (data and structure assessment) Customized information to maintenance 12

© 2010 Critical Materials tower nacelle Tower... Blade Rotor Hub Gearbox Shafts Bearings... Jacket Pillars... Foundations/ footing STRUCTURAL SYSTEMS HEALTH MANAGEMENT FARM STRUCTURAL SYSTEM SUB-SYSTEM COMPONENT turbine PRODDIA® WIND STRUCTURAL SYSTEMS ARCHITECTURE 13

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT PRODDIA® WIND SOFTWARE WORKBENCH 14

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT DETECTION AND LOCALIZATION OF DAMAGED COMPONENTS EVALUATION OF DAMAGE SEVERITY ASSESSMENT OF CONTINUOUS MATERIAL PROPERTY DEGRADATION (AGING) DAMAGE DIAGNOSTIC FORECASTING OF THE FUTURE COMPONENT STATE CALCULATION OF THE REMAINING USEFULL LIFE, RUL PREDICTION OF COMPONENT BEHAVIOUR UNDER LOADING PROBABLISTIC UPDATING OF COMPONENT BEHAVIOUR STATE PROGNOSTIC INSPECTION AND MAINTENANCE LOGISTICS AND PLANNING ASSET AVAILABILITY AND COSTS INTEGRATION WITH OTHER TOOLS PRODDIA® WIND CAPABILITIES 15

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT SHM system for Offshore Power Plant Detection of damage Localization & Severity Evaluation Early warning alarms Inspections on predictive information PROTOTYPE – POSEIDON – 16

© 2010 Critical Materials STRUCTURAL SYSTEMS HEALTH MANAGEMENT Critical Materials S.A. HTC – Headquarters and Technical Centre SPINPARK - Centro de Incubação de Base Tecnológica AVEPARK - Zona Industrial da Gandra | Apartado Caldas das Taipas Guimarães – Portugal t f e UK Critical Materials SA 2 Venture Road Southampton Science Park Southampton SO16 7NP, UK BRASIL Critical Materials SA S. José dos Campos S. Paulo, Brasil CRITICAL MATERIALS, SA 17