1. Korea Construction Equipment Manufacturers Association 17.2.16 South Korean Engine Emissions 25 th JTLM 16~17 th. April, 2015

2. Korea Construction Equipment Manufacturers Association  Emission Requirement Application Scope : 27 types (Excavators, Loaders, Forklifts, etc)  Grace period for Tier3 engine Tier4F Engine Emission update *1 Before install the engine to the equipment, the Machinery need to get the certification from ME* about the stock engine which build before 14/12/31. Emission Engine Build in Korea / Import Equipment Build in KoreaSell the Equipment Tier32014/12/312015/06/30 *1 2015/09/30 Power Ratings Emission Standard Effective Date Test Cycle CONMHCNOxPM kW < 88.07.50.4 January 1 st, 2015 NRTC NRSC (DF Test has not been determined) 8 ≤ kW < 196.67.50.4 19 ≤ kW < 375.54.70.03 37 ≤ kW < 565.04.70.03 56 ≤ kW < 1305.00.190.400.025 130 ≤ kW < 5603.50.190.400.025 *Ministry of Environment (ME) 2

3. Korea Construction Equipment Manufacturers Association  Grace period for Tier3 engine Request from domestic distributor of sprcific equipment which do not produce in Korea and current sales equipments are supplied as follows - Scope : Construction equipment except Excavator, WLD, Fork lift, Bulldozer, Roller. - Grace period : Until 2017. 12. 31 - The number of grace : 50EA(by Manufacturer and Model) - Ministry of Environment will be announced number of grace and verification method. Tier4F Engine Emission update 3

4. Korea Construction Equipment Manufacturers Association  Alternative method of NRSC mode inspection - less than 19kw engine Amendments to the NRSC mode measurements in construction equipment. Manufacture can choose single-mode NRSC or cycle of ramped NRSC. Tier4F Engine Emission update 4 G2 mode Num. Engine SpeedTorque Weighting Factors 1Max. test Speed1000.09 2Max. test Speed750.2 3Max. test Speed500.29 4Max. test Speed250.3 5Max. test Speed100.07 6Warm Idle00.05 RMC mode Time in mode(s) Engine SpeedTorque 1a Steady-State41Warm idle0 1b transition20Linear transition 2a Steady-State135Max. test Speed100 2b transition20Max. test SpeedLinear transition 3a Steady-State112Max. test Speed10 3b transition20Max. test SpeedLinear transition 4a Steady-State337Max. test Speed75 4b transition20Max. test SpeedLinear transition 5a Steady-State518Max. test Speed25 5b transition20Max. test SpeedLinear transition 6a Steady-State494Max. test Speed50 6b transition20Max. test SpeedLinear transition 7 Steady-state43Warm Idle0 ISO 8178 G2 ↑ ISO 8178 G2 ramped cycle →

5. Korea Construction Equipment Manufacturers Association  Endurance test and Method of calculate degradation factor 1. Test is carried out in engine manufacturer. : Select engine that is representative of the engine family. * Endurance test can be skipped when it was proved to be equivalent foreign certification conducted by the endurance test methods for the same engine. 2. The final exhaust gas degradation coefficient values are calculated by applying the endurance test according to regulation number 1, where the exhaust gas amount of each measurements are applied. 3. When engine manufacturer is to carry out the durability test in accordance to paragraph 1, durability test plan must be written and approved by authentication before conducting the test. - Planning document include : The same duration engine group, Selection test engine, Test period, Configuration driving cycle, Timing of exhaust gas measurement, The way of exhaust gas measurement Tier4F Engine Emission update 5

6. Korea Construction Equipment Manufacturers Association 4. For specified construction machinery engines only, multiplication of deterioration coefficient can be applied as shown in the table bel 5. If durability test result is required, verification test can be carried in manufacturer or certificate authority. 6. Abolished or amendment deadline is by 2017.Dec.31(Consider the change of the law and administration condition) Tier4F Engine Emission update 6 COHCNOxPM 1.3 1.151.05