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121203 Green Tires Fact Book.Pdf Agenda 1. LANXESS – committed to global megatrends 2. The need for CO2 emission reduction – EU leading the way 3. Tire basics and the role of rubber 4. The environmental benefits of “Green Tires” 5. “Green Tires” meeting consumer expectations 6. An emerging global market for “Green Tires” 7. LANXESS – a key enabler of “Green Tires” 2 LANXESS – a global player in the specialty chemicals industry Specialty chemical company . Spun-off from Bayer in 2004, listed in the DAX* since 2012 . Focus on: plastics, synthetic rubber, specialty chemicals, intermediates Global success story . Roughly 17,100 employees in 31 countries . 49 production sites worldwide . 2011 sales of EUR 8.8 billion Strategy of targeted innovation . Vital role in LANXESS’ growth . Focus on process and product innovation * German stock market index 3 LANXESS is Energizing Chemistry Premium quality Technical expertise . Premium specialty chemicals company . State-of-the-art materials, services and solutions . More than 5,000 products for a diverse range of that meet the most exacting standards applications . Creating significant value for our customers, the . High quality solutions enabling customers to environment and our company successfully meet current and future challenges LANXESS – global mission . Commitment to sustainable development . Targeted innovation designed to meet customer . Creation of green solutions to meet the needs challenges of global megatrends . Pragmatic corporate culture drives product, . Development of environmentally-friendly process and outside-the-box innovation technologies, resource-efficient processes and . Highly effective innovation network, combining next-generation products global reach with local expertise Sustainability Innovation 4 LANXESS capitalizing on global megatrends Mobility Agriculture Urbanization Water 5 Future challenges drive the need for sustainable mobility Environment Growing mobility . Climate protection . Among the growing . Impact of climate change is middle class in emerging significant economies Economics Urbanization . Shortage of resources . Almost 60% of the world's . Rising prices for fossil fuels population will live in cities by 2030 . Greater traffic density leads to increased noise emissions Consumer Politics . Trend toward a sustainable . More stringent legislation lifestyle - to protect the environment . Societal demand for - to reduce emissions and environmental stewardship fossil fuel dependency Source: United Nations, Department of Economic and Social Affairs 6 LANXESS solutions help people and goods travel quickly, cleanly and safely Lightweight . LANXESS high-tech plastics make vehicles construction lighter, safer and more comfortable . LANXESS synthetic rubber blends and additives are key ingredients that allow “Green Tires” modern tires to improve performance, save fuel, enhance safety and last longer . With innovative products such as Keltan Eco – the first form of bio-based EPDM rubber in the Bio-based world – LANXESS supports the development raw materials of bio-based alternatives to petroleum based materials 7 Agenda 1. LANXESS – committed to global megatrends 2. The need for CO2 emission reduction – EU leading the way 3. Tire basics and the role of rubber 4. The environmental benefits of “Green Tires” 5. “Green Tires” meeting consumer expectations 6. An emerging global market for “Green Tires” 7. LANXESS – a key enabler of “Green Tires” 8 Meeting the global climate challenge Worldwide efforts to reduce CO2 emissions Focused country initiatives to reduce energy consumption in key sectors Construction Manufacturing Energy conversion Mobility Adoption of regulations and establishment of minimum energy efficiency standards 9 Worldwide initiatives for the reduction of CO2 emissions China aiming to reduce EU aiming for a 20% CO emissions by 2 Japan promising a 25% cut in greenhouse gas 40-45% compared to USA aiming for a CO2 cut in CO emissions by emissions during the economic growth during 2 reduction of 17% during 2020 if all major period 1990 - 2020 the period 2005 - 2020 the period 2005 - 2020* economies participate South Korea planning to reduce emissions by Brazil aiming to reduce India seeking to reduce 30% below projected greenhouse gas CO2 emissions by 2020 levels (4% below emissions by at least 20-25% compared to 2005 values) 36% below projected economic growth during 2020 levels the period 2005 - 2020 Source: United Nations Framework Convention on Climate Change (UNFCCC) * Provided that the awaited law on climate control comes into effect as scheduled 10 EU – a clear commitment to increased energy efficiency EU Energy Efficiency Plan . Increasing energy efficiency to boost sustainable growth and competitiveness . EU strategy focused on - enforcement of existing legislation - development of innovative solutions Key objectives for 2020 (compared to 1990) . Cutting energy consumption by 20% . Reducing annual greenhouse gas emissions by 740 million tons . Cutting energy costs by EUR 100 billion per year Sources: EU Energy Efficiency Plan 2011, http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0109:FIN:EN:PDF 11 Directive of the European Parliament and of the Council on energy efficiency, http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0370:FIN:EN:PDF Traffic forms a substantial part of the EU Efficiency Plan Key Facts . 18% of global CO2 emissions are related to traffic . In the EU, transport is the only economic sector which CO2 emissions are constantly increasing, especially in those segments involved in vehicular transportation EU Objective by 2012 (compared to 2006) EU objective to lower CO2 emissions for new vehicles . Lowering average CO emissions for newly- 2 - 19 % registered vehicles from 160 g/km to 130 - 27 % 160 g/km g/km by 2015 and to 95 g/km by 2020 130 g/km 95 g/km . Of that, 10 g/km is to be achieved through measures not directly linked to fuel combustion (e.g. tires) 2006 2012 - 2015 2015 - 2020 Source: Regulation (EC) No 443/2009 of the European Parliament and of the Council of 23 April 2009 setting emission performance standards 12 for new passenger cars, http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0001:0015:EN:PDF Modern tires improve energy efficiency in traffic Key Facts . 20-30% of a vehicle’s fuel consumption is related to tires . 24% of a vehicle’s CO2 emissions are related to tires New EU regulations aim to . Improve energy efficiency and safety standards of future tires . Enable consumers to make informed purchasing decisions Sources: BMW, Der Reifen im Spannungsfeld zwischen hohen technischen Anforderungen und immer schärfer werdenden gesetzlichen Auflagen, 2008 13 Michelin, CO2 Reduzierung – Ein Beitrag der Reifenindustrie, 2008 EU type approval – improving standards for future tires Regulation 661/2009/EG Limit values for the safety aspect of wet grip . Establishes uniform requirements for the Usage category Limit value (G) M+S tires with a maximum type approval of new tires (categories C1 – 0.9 permissible speed of 160 km/h C3*) across the EU with regard to M+S tires with a permissible 1.0 - safety (wet grip) speed above 160 km/h - rolling resistance Normal tires 1.1 - rolling noise Limit values for rolling resistance Phase 1 Phase 2 . Introduction of new limit values for type (as of 2012) (as of 2016) approval of tires in November 2012 Tire category Limit value (kg/t) Limit value (kg/t) . As of November 2014 all new vehicles must C1 12 10.5 be equipped with type approved tires and C2 10.5 9.0 only these can be sold on the replacement C3 8.0 6.5 * C1: tires according to ECE R 30 (cars) market C2: tires according to ECE R 54 (light trucks) C3: tires according to ECE R 54 (heavy duty vehicles) Source: Regulation (EC) No 661/2009 of the European Parliament and of the Council of 13 July 2009 concerning type approval requirements for the general 14 safety of motor vehicles, their trailers and systems, components and separate technical units intended therefor: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:200:0001:0024:EN:PDF EU tire labeling – enables consumers to make informed purchasing decisions Regulation 1222/2009/EG Indicating three key parameters of tires . Tire labeling aims to improve safety, ecological and economical efficiency of road traffic . The label informs consumers about key tire performance parameters - impact on fuel efficiency associated with rolling resistance grip Wet - impact on safety associated with wet grip efficiency Fuel - external noise level . Tire labeling becomes mandatory from November 2012, meaning that all tires* produced as of July 2012 must have the label Noise performance Source: Regulation (EC) No 1222/2009 of the European Parliament and of the Council of 25 November 2009 on the labeling of tires with respect to fuel efficiency 15 and other essential parameters: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:342:0046:0058:EN:PDF * Passenger car, light truck and heavy duty vehicle tires EU tire labeling and its impact – wet grip Difference in wet braking distance by rating class . Wet grip is one of the most important safety (80 km/h to 0 km/h) characteristics of a tire . Tires with excellent wet grip have a shorter A braking distance in rainy weather + 3 to 4 m . “A”-rated tires provide the most wet grip, B + 4 to 5 m 18 to 21 m while “F”-rated tires provide the least . For example: an “F”-rated tire needs an C additional 18 to 21 meters to come to a + 5 to 6 m D** standstill from a speed of 80 km/h compared E to an “A”-rated tire* > 6 m F G** Source: Continental 16 * Actual braking distance may vary according to road surface and vehicle ** Class D and G are not defined EU tire labeling and its impact – fuel efficiency . A vehicle’s fuel consumption is affected by Difference in fuel efficiency per rating class the rolling resistance* of its tires A B . By reducing rolling resistance, a tire can C +/- ~ 2.5% improve fuel efficiency of a car D** E .
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