The 3rd living space: materials and surfaces for the passenger comfort and wellbeing of tomorrow.

The 3rd living space:Materials & surfaces for the passenger comfort and

wellbeing of tomorrow

In-vehicle Air Quality Summit 2016Beijing, 09-10.11.2016, Mark Chatwood & Stefan Buri

Table of content

Stahl´s role in car interiors

Market trends

Technology trends

Next gen automotive interior surfaces

Conclusion

Who is Stahl?

Stahl´s multiple touchpoints in premium carinteriors

Stahl: the leading car interior materials surfaces expert.

23 11

60038

> 1.800

Plants

Countries

People worldwide

Application Labs

Salestechnicians

9

R&D Centers

Operational Excellence

Tier 3: Surface Technology / Chemistry

Tier 2: Materials Manufacturers

Tier 1: Component / Systems Integrators

OEM / Assembly

+Know-How

Technology

Steering wheel DashboardSun visorMiddle consoleGlovebox

Seat coversHeadrest

Gear shift

Other applications

Door trimsEPDM profiles

PVC

PU

TPO

Leather

EPDM

Fabric

Why premium OEMs and all major manufacturers co-operate with Stahl§ World-market leader in its

segments§ Best-in-class surface

Know-How§ Off the shelf OEM solutions§ Technology- & innovation§ leadership§ Global footprint§ Quality consistency &

interior harmony

Stahl business model along the supply chain

Stahlrootstrength

Market trends

Premium car interior materials.

Stahls core proposition for car interior builders

End-to-end leather solutions

Synthetic trim materials

Auto Leather crust Auto Leather finish

Manufacturing units: 56

Manufacturing units: 85 Manufacturing units: 63

Inte

rior

har

mon

y

Global Automotive interior materials supply chains

Interior Trends

§ Importance of car interior is growing.

§ OEMs upgrading its models by choosing more premium interior materials. More soft-touch materials, dynamic volume growth of material classes.

§ Interior materials and A-surfaces play a vital role to comfort, perceived quality and luxurious appeal.

§ Trend towards light interior colors

§ Multiple migration / substitution effects of interior material classes (upgrading / de-contenting).

§ Growing demand for more sustainable materials and technologies (e.g. water-based, low-emission, green technologies)

§ China: transformation of market on back of new regulations and raising consumer awareness.

§ Leather and coated synthetic trims are the materials of choice for premium car buyers worldwide.

Automotive interior materials market

35 1510

300

70 60

190

Hardplastics & decorative

surfaces***

Fabrics PVC Slush PU spray moulding - Recticel

Microfibre In mould coating -IMC

Coated synthetic trim - PVC

Coated synthetic trim - TPO

Coated synthetic trim - PU

Genuine Leather trim (Auto)

0

50

100

150

200

250

300

350

Mio m2 / year

Stahl surface & substrate expertise

6-20% CAGR**

3% CAGR*

*Source: LV production forecast, IHS ; **Source: CAGR% segment assessment, Stahl; *** e.g. PP, ABS, Chrome, Wood, coated hard-plastics (e.g. piano black), screens, foot mats etc.

Stahl team assessment

OEMmodelupgrading

De-contenting

China: a transforming marketInterior Air Quality: Consumer awareness raising, regulations increasing.

Interior Air Quality Consumer awareness raising, (China) regulations increasing

§ Formaldehyde

§ NMP / NEP

§ Acetaldehyde

§ Hydrocarbons

§ Toluene

§ Amines

§ Ketones

§ Esters

The desirable “new car smell”:

“Interior Air Quality as emerging differentiating factor to premium OEMs.” Enabler: low VOC technology range for interior materials

The chemical emissions from materials are responsible for it

Innovation leadership securing Stahl´s position as the global industry reference.

Stahl is founded. Worldwide expansion from 1945 onwards.

The launch of automotive water-based leather finish systems.

The development and launch of Polymatte® technology.

Introducing co-solvent free (NMP/NEP) finish systems.

193019921998

2004

Stahl leading the way towards clean & green car interior materials.

Stahl introducing water-based anti-squeak / high abrasion finish system based on Polymatte®. - BMW first to market. - 2005 ff. European OEM adopting: M-B, Peugeot, JLR, Porsche, Audi, VW Group.- 2008 ff. US OEM adopting seeking premium positioning, like Lincoln, Ford, Chrysler, GM.- 2008 ff. Asian OEM: Lexus adopting, followed by several other ones.- Stahl technology setting new industry benchmark worldwide.

Introducing water-borne anti-squeak finish systems for Leather and Synthetic trim materials.

(PVC, PU, TPO, coated fabrics).

2004 ff.

2005

Leather Wet-End chemicals optimized for low-VOC and smell: introducing NPEO-free product range,

launch of patented automotive fat-polymer technology.

Stahl EVO: introduction VOC-free product range that is ahead of legislations.

Stahl introducing Stay Clean chemistry for protecting pale colored car interior materials.

Renewable and bio-based raw material sources

2006 ff.

2012

20132014 ff.

China: transition from lower-grade to high-quality water-based surface technology for Synthetic trim materials.

Stahl global business line sales record: Last twelve months (LTM), in mio EUR

China VOC regulations and raising customer awareness a key driver of transition

VOC & Smell


Green & clean

Smart

Appeal

Taste

Sight

Hearing Smell

Touch

The customer experience –engaging with the 5 senses

The future car interior

VOC & Smell in car interior materials: root causes

VOC&Smellisacomplexandmultifacetedtopic.Foremost,it´sachemicalsubject.Rootcausesandsolutionpathsinthedifferentstagesofprocessesandsupplychains.

AutomotiveLeather

VDA277(Static)

VDA278(Dynamic)

VDA275(Formaldehyde)

Fogging VDA270(Smell)

Substrate - - - - -

TanningAgents + + +++ ++ +++

Fatliquors +++ ++++ - ++++ +++

Colors - - - - -

Finishsystem +++ ++ + ++ +

SyntheticSeat&Trim

VOC Smell

Substrate

FinishsystemSubstrate-specific

Source:FILK,Freiberg- Noinfluenceto++++verystronginfluence

Successfactorsfirsttomarket:- CommunicationOEM-T1-T2-T3- Integratedapproach- Complementarycompetenciestosametable

(OEM,manufacturer,Stahl)

Smellissue

VOCissue

- Globallogistics- Fragmentedsupplychains- Regionalshift(Crustvs.Finishingproduction)

Technology trends


OEM requirements on interior material surfaces

A balancing act tailored to OEMs individual needs

Interior HarmonyQuality consistency of class A surfaces

independent of car interior component and substrate used (Leather, PVC, PU, PVC,

TPO, fabrics etc.)

Design / StylingSensorial Experience:

natural appearance, color, low-gloss (not burnish), haptics, softness, smell etc.

Sustainability / EmissionsFogging, VOC, smell, sustainability criteria

Physical performanceAbrasion, rub fastness, moisture resistance, bally flex, UV resistance, heat resistance, anti-squeak,

anti-soil, anti-stain (dye ingress)

Stay Clean technology


And demand for surface protection is increasing

Vision: lotus-effect

Pale colours in car interiors have come to stay

Stahl 3rd generation Stay Clean technology

And it’s easy to See why

And it´s easy to see why.

Soiling: It´s a major pain to all customers in the world

23

To protect light surfaces against typical stains, we developed Stay Clean.

Stay Clean

24

VOC & Smell:The Future


Interior Air Quality Consumer awareness raising, (China) regulations increasing

§ Formaldehyde

§ NMP / NEP

§ Acetaldehyde

§ Hydrocarbons

§ Toluene

§ Amines

§ Ketones

§ Esters

The desirable “new car smell”:

“Interior Air Quality as emerging differentiating factor to premium OEMs.” Enabler: low VOC technology range for interior materials

The chemical emissions from materials are responsible for it

What Drives us ?

Chineseregulation

Reachbecomingglobal

TOSCA

GADSLRSLMRSLLWGZDHC

STAHLRSL.ThisisourFuture.

Latest Challenges.

BTXFreeSilicone.Realeased forsalenewproductsD4- Octamethylcyclotetrasiloxane <0.1.

Acetaldehyde.Scavengers.

Smell.GoldenSampleistheresuchathing

VOC.TestMethod.Continuousimprovementprogram.

Next steps for Stahl

Smell/Odour roomGuangzhouChinaCOE

Understandthedifferencebetweenregions

DoweneeddifferentsolutionsinAsiavsEurope.

RoundRobin.Stahl andpartners.

OEMconsolidationoftestprocedure.

Build up of Emission lab in Waalwijk

■ Investment for micro chamber & bag emission tests

■ 1 dedicated FTE for testing hired■ Build up of own testing know how■ Timing

■ Jan: Start testing■ Jan – Apr: Feasibility & Cross check

■ Later extension with 1 m3 chamber (BMW, furniture) possible

SMELL vrs VOC ???????

IsthereCorrelation?Yes/No

TestMethods?Manyvariedandnotrepeatable.

OEMMethodsoftest?Isittimeforharmonisation?

Stahl Sustainability Roadmap

100 % Petrochemical

VOC containing

100% Renewable

volatiles

Carbon Source

VOC free

Stahl Sustainability Roadmap

100 % Petrochemical

VOC containing

100% Renewable

volatiles

Carbon Source

STAHL EVOCurrent Portfolio

Vision Green & Clean

- Compliancy, - Detox - Low-VOC

Step 1:

-B

io-b

ased

pro

duct

s-

Reu

se/r

ecyc

le-

Env

iron

men

t P

&L

Ste

p 2:

VOC free

XX

XX

XX

XX

XX

XX

Performance & VOC


XX

XX

XX

XX

From biomass to bio-based finish systems

Stahl’sBio-basedPolyMatte:

Natural touch & feel / performance / sustainability credentials

XX

XX

Automotive Center of Excellence for OEMs, Tiers and business partners.

Partnerships

The 3rd living space of the FutureRinspeed Oasis: World premiere Jan/2017@CES Las Vegas.

Interior materials of the Future:

Solvent-basedFrom toxic to non-toxic

Water-basedFrom NMP/NEP to co-solvent-free

Bio-basedFrom crude oil to biomass

We create responsible partnerships that spark innovation and open up endless possibilities

Stahl Automotive Center of Excellence

Inaugurated Sept 2015, Waalwijk, The Netherlands

Automotive Center of Excellence (CoE):

- OEM, T1, customers& partners

- CoE in all key auto regions (EU, MX, CN)

- Interior Harmony

Stahl Automotive: the car interior surfaces expert – root strengths

Auto & Non-Auto

market trends

Business model & partnerships

Know-how (application formulation, chemistry)

Global footprint

Best-in-classsTechnology

Interior Harmony

We believe that if it can beImagined, it can be created.

[email protected] | www.stahl.com