2. Chemical Management Services World Class Technology Quaker Chemical Delivering anywhere, the best of everywhere. Together we simply sharpen your competitive edge

3. Facts The cost of a machining operation is directly related with the Manpower, the Machine, the Tooling and the Coolant. The surface finish and the cutting tool life is directly related to the heat generated during the machining operation. 98% of the heat produced during the cutting operation is absorbed by the coolant. The Coolant cost is normally 1% of the Cutting operation, but can influence up to 80% of the total machining cost. Metal Removal fluids a Guide to their Management and Control Published by the Metal Working Fluids Product Stewardship Group, 1997 Together we simply sharpen your competitive edge

4. Quaker Chemical Corporate Profile Quaker Chemical Corporation, headquartered in Conshohocken Pennsylvania, is a worldwide developer, producer and marketer of custom-formulated Chemical specialty products and a provider of a Chemical Management Services for manufacturers around the globe, primarily in the steel and Automotive industries. Together we simply sharpen your competitive edge

5. Quaker Global Quality Quaker Chemical S.A. Spain ISO 9002 Quaker Chemical Corporation U.S.A. - ISO 9001 Quaker Chemical (Australasia) Pty. Ltd. Australia Nippon Quaker Chemical Ltd. Japan TecniQuimia Mexicana S.A. de C.V. Mexico Quaker Commercial Chemicals (Pty.) Ltd. Republic of South Africa Kelko Quaker Chemical, S.A. Venezuela Quaker Chemical South America Celumi Lubrificantes Ind. - Brazil Asianol Lubricants India Buhmwoo Company, Ltd. Korea H.L. Blachford, Ltd. Canada Quaker Chemical South East Asia Pte.Ltd. Hongkong Quaker Chemical Ltd. United Kingdom ISO 9002 Quaker Chemical SpA Italy ISO 9002 Quaker Chemical B.V. The Netherlands ISO 9001 Quaker Chemical S.A. France ISO 9001 Quaker Chemical Europe B.V. The Netherlands Quaker Chemical Detroit ISO 9001 Ford Q-1 Quaker Chemical - Wuxi Peoples Republic China Quaker Chemical S.A. Argentina Together we simply sharpen your competitive edge

6. What is CMS (Chemical Management Services) A Management System that takes a disciplined approach to controlling the process, application, acquisition, delivery, storage, and disposal of process fluids. The goal of this system is to increase productivity, decrease cost and optimize process efficiency. Together we simply sharpen your competitive edge

7. Why CMS is growing (Chemical Management Services) Cost reduction guaranteed Access to the Best Technology Custom Formulated Chemicals Allows customer to concentrate on their own CORE COMPETENCY Allows Quaker to practice our own core competency Experts in House working with your staff Process Improvement NO risk Win-Win Relationship Some Customers on USA, Europe and Asia Together we simply sharpen your competitive edge

8. CMS Savings projects u JIT Chemical Inventory Cost reduction, Space availability, less risk u Daily fluids maintenance Improve Efficiency and Cleanliness. u Lubricants analysis Reduce Machine downtime and spare parts cost. u Changeover Coolant time reduction Increase machine availability u Preventive Maintenance program (Coolants & Lubricants) u Chemtraq System (MSDS). Full MSDS Digital Log book (Bilingual for each fluid used). u Cycle time reduction Increase productivity u Disposition Cost reduction Operations savings u Custom designed Chemicals Improve Quality u Global Corporation partnership Best Corporate service benefits by Global agreements. Together we simply sharpen your competitive edge

9. The Cost of Fluids by part produced were decreased from $1.98 to $0.92 (53%) on 5 years, during this time 28.2% Net Production were Increased CMS Cost Savings Example Data from Honeywell, Turbo Charging; Torrance, CA.

10. Where the Money is? Process Savings 86% Purchase Savings 10% R&D Savings 4% Purchasing Changes Includes vendor price and freight negotiations, vendor/product consolidation and JIT inventory maintenance R&D Support Development of quality products, procedures or equipment for specific applications Process Improvements Includes process control, chemical usage reduction, scrap reduction, chemical training, waste reduction and decreased energy usage Together we simply sharpen your competitive edge

11. What Customer say about our Service 2002 Survey Together we simply sharpen your competitive edge

12. What is the next step to obtain the benefit in your Organization? CMS Program Presentation (Open Forum for questions) A team will evaluate your Actual Fluid process through a survey to identify Potential savings. Quaker summit a CMS Program Proposal (specifying guaranteed savings). The secret of success is the consistency to pursue. Harry F. Banks Harry F. Banks Together we simply sharpen your competitive edge

13. Delivering everywhere, the best of anywhere Together we simply sharpen your competitive edge

14. For more Information (Click on the option) u CMS Mexico Representative Humberto Luna (e-mail) hluna@quakerchem-mx.com u Visit our Web Site: www.quakerchem.comquakerchem.com u Voice USA (760) 482 2160 Together we simply sharpen your competitive edge