SAP - Project

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Presentation Topics
Background Brazilian Automotive Industry Sales Information & Premises SAP Plant Layout, timing SAP Plant Project Premises and Investment Conclusions
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Brazil Automotive Industry

Official Data Yearbook 2010

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Brazil Automotive Industry

Production 1979 - 2009

Official Data Yearbook 2010

JSP PROPRIETARY AND CONFIDENTIAL The information contained herein is the exclusive property of JSP. The data shall not be reproduced without prior written consent of JSP.

Brazil Automotive Industry

Official Data Yearbook 2010

JSP PROPRIETARY AND CONFIDENTIAL The information contained herein is the exclusive property of JSP. The data shall not be reproduced without prior written consent of JSP.

Brazil Automotive Industry

Official Data Yearbook 2010

JSP PROPRIETARY AND CONFIDENTIAL The information contained herein is the exclusive property of JSP. The data shall not be reproduced without prior written consent of JSP.

Brazil Automotive Industry

Official Data Yearbook 2010

JSP PROPRIETARY AND CONFIDENTIAL The information contained herein is the exclusive property of JSP. The data shall not be reproduced without prior written consent of JSP.

Brazilian Vehicle Fleet - Comparisons

32.5 MM vehicles in 2010 Approximately 155 cars per 1,000 people In the US, 779 cars per 1,000 people Japan 545, Mexico 209 and Argentina 263 Age between 4 and 20 years represents 67% of vehicles in operation in Brazil 30 MM people moved up from D bracket of consumers to C during 2010 in Brazil
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SAP

Sales Information & Premises

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JSP

JSP PROPRIETARY AND CONFIDENTIAL The information contained herein is the exclusive property of JSP. The data shall not be reproduced without prior written consent of JSP.

Premises -Sales
Considered only CONTRACTED orders through 2013 Considered conservative growth of 3% per year after 2013 Assumed Campinas would be at capacity and thus remained flat after SAP start up New Significant GM projects starting 2012/2013 Did not consider other parts being quoted, prospect projects (seats) or new OEMs (Hyundai and Chinese OEMs)
JSP PROPRIETARY AND CONFIDENTIAL The information contained herein is the exclusive property of JSP. The data shall not be reproduced without prior written consent of JSP.

Premises Sales, Relevant facts

Import taxes into Brazil represent over 30% over FOB price, logistics & timing Current JSPB Beads Sales Price is:
R$12.64/kg (VW & Fiat), R$13.36/kg GM Others range from R$14 up to R$16/kg

Currently BASF price delivered is equivalent to our price Other - Cash Flow - Pematec
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MAIN NEW ITEMS STARTING FROM 2011 ON Values in (Thousands)

Customer Projects Products SOP Turnover 2011 453 1.278 2.422 348 348 972 339 1.146 104 169 230 722 426 268 59 200 200 459 654 10.797 6.351 2013 922 493 493 499 545 1.696 3.215 1.492 1.492 295 1.072 374 1.263 1.338 3.344 450 736 246 955 563 405 522 355 411 1.393 1.393 1.965 7.903 454 36.282 2105 1.777 950 950 550 601 1.778 3.369 1.645 1.645 325 1.181 412 1.393 1.431 3.577 482 786 271 1.052 621 447 576 391 454 1.536 1.536 2.166 8.454 484 40.839 2011 0 0 0 0 10 51 95 18 18 0 27 7 33 0 0 3 6 6 20 13 0 0 7 3 11 11 18 30 0 386 Kilograms per year 2013 36 4 4 19 12 76 140 78 78 4 29 7 36 75 187 16 27 7 26 18 11 13 10 19 75 75 76 380 15 0 1553 2015 70 8 8 21 13 83 154 86 86 4 32 8 40 83 207 18 29 7 29 19 13 14 11 20 83 83 84 419 16 1 1750

Toyota Trimtec Trimtec Honda Peguform VW VW Fiat Fiat Pelzer Nefab Nefab Nefab GM GM GM GM Grammer COPO COPO Pelzer Pelzer COPO Fiat Fiat Fiat Fiat GM Faurecia Rieter Net Sales in R$ Net Sales in USD

Small Car I Small Car I Small Car I New Civic Sedan 207 - T33 NF Sedan NF Hatch 326 2V 326 2V B515 Embalagem RRU Embalagem RRU Embalagem RRU Onix 4NB Onix 5NB J300 J300 Fox NF Hatch NF Hatch B515 B515 Fox 326 3V 326 3V 326 3V 326 2V J300 AI9X Small Car I

Insert Sunvisor Sunvisor Tool Box Absorber Absorber Absorber Absorber RH Absorber LH Insert Packaging Packaging Packaging Absorber Absorber Absorber Tool Box Head Rest Head Rest Head Rest Tool Box Tool Box Head Rest Absorber Absorber RH Absorber LH Tool Box Trunck Spacer Insert Insert

se t/12 se t/12 se t/12 jan/12 fe v/11 abr/11 abr/11 se t/11 se t/11 m ar/12 Feb/11 Feb/11 Feb/11 jan/13 out/12 out/11 out/11 jan/11 mar/11 mar/11 m ar/12 m ar/12 m ar/11 nov/11 nov/11 nov/11 se t/11 se t/11 out/12 se t/12

JSP PROPRIETARY AND CONFIDENTIAL 126 243 0 The information contained herein is the exclusive property of JSP. The data shall not be reproduced without prior written consent of JSP.

21.342

24.023

MAIN NEW ITEMS STARTING FROM 2011 ON Values in (Thousands)

Customer Projects Products SOP Turnover 2011 1.278 2.422 348 348 200 200 459 654 5.909 3.476 2013 922 1.696 3.215 1.492 1.492 1.338 3.344 1.393 1.393 1.965 7.903 26.152 15.383 2105 1.777 1.778 3.369 1.645 1.645 1.431 3.577 1.536 1.536 2.166 8.454 28.912 17.007 2011 0 51 95 18 18 0 0 11 11 18 30 252 Kilograms per year 2013 36 76 140 78 78 75 187 75 75 76 380 1277 2015 70 83 154 86 86 83 207 83 83 84 419 1438

Toyota VW VW Fiat Fiat GM GM Fiat Fiat Fiat GM Net Sales in R$ Net Sales in USD

Small Car I NF Sedan NF Hatch 326 2V 326 2V Onix 4NB Onix 5NB 326 3V 326 3V 326 2V J300

Insert Absorber Absorber Absorber RH Absorber LH Absorber Absorber Absorber RH Absorber LH Tool Box Trunck Spacer

set/12 abr/11 abr/11 set/11 set/11 jan/13 out/12 nov/11 nov/11 set/11 set/11

JSP PROPRIETARY AND CONFIDENTIAL The information contained herein is the exclusive property of JSP. The data shall not be reproduced without prior written consent of JSP.

Sales Evolution CPS + SAP

2011
CPS ton CPS R$ SAP ton SAP R$ Total ton Total R$ Total US$ Growth

2012 1491 388 6,716

2013 1491 1057 2,548

2014 1491 1105 2,596

2015 1491 1164 2,655

2016 1491 1224 2,715

2017 1491 1285 2,776

2018 1491 1340 2,831

1354

41,462 41,472 41,472 41,472 41,472 41,472 41,472 41,472 22,791 24,188 25,882 27,602 29,353 30,938

1,354

1,879

41,462 48,188 64,263 65,660 67,354 69,074 70,825 72,410 25,913 30,118 40,164 41,037 42,096 43,171 44,265 45,256 16% 33% 3% 3% 3% 3% 3%

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SAP

Layout and Timing

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Basic Overview - Land

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The Basic Layout Plan - SAP

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Basic Overview - SAP

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Basic Overview - SAP

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Basic Overview - SAP

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Project Schedule
Year / Months ITEM DESCRIPTION Jun 1 General Construction Process - building 2011 2012 Jul Aug Spt Oct Nov Dec Jan Feb Mar Apr Mai Jun Jul Aug

Engineering - Process

Acquisition and Manufacturing - General Items

Industrial Installation - Expansion

Start up - Expansion

Pre-operating tests - reactor

Start up - Reactor

Industrial Installation - Molding

Utilities + general piping installation + molding machines installation

Pre-operating tests - molding machines

Start up - molding machines

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SAP

Project Premises & Investment

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SAP Premises and Assumptions

Price of Resin assumed constant Plant Costs assumed constant Salaries were raised 5% per year Inflation, interests, etc. remained constant Exchange rate remained constant Price to customers remained constant

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SAP - Premises and Assumptions Buy 2 x 3m3 CO2 Reactors 1 Dryer (until EPE takes off) Butane Reactor will be disassembled 2 Extruders will be relocated from Campinas plant to SAP 4 Kurtz 1014 Presses will be installed in SAP (first stage)
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SAP - Premises and Assumptions 1 Second Pass Expander 3 Large 2nd Pass P-Tanks 1 - 6 Ton Boiler Net Bags some will be transferred from Campinas, rest will be new Water treatment - being evaluated, dependant on Brazilian effluents laws
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Economic Feasibility - premises

R$ 25MM Requested Investment SAP

Funding JSP Participaes paying 3% interest JSP Brasil paying 11% interest to JSPP Campinas remaining at full molding capacity Assumed additional R$3MM Capital / year
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Required Investment
Investment M R$
Building

2011 4,000 2,700

2012 2,000 4,800

Total M R$ 6,000 7,500

General Equipment Construction and Installation

Molding Equipment and Installation

500

9,000 2,000

9,500 2,000 25,000

Contingency Total

7,200

17,800

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Option Chosen
Build Extrusion/Expansion Plant in SAP Why?
Creates room for additional presses Bead & Molding can become independent operations if desired Coherent with strategy to have a stronger resins orientation Undoubtedly Best option for the future Allows for further expansion of resins/other processes Downside -Adds freight cost from Bead to Molding Plant
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Threats
PP resin cost increasing New EPP molders coming into the market (especially requested by VW) Styroplast acquisition of old BASF reactor Ability to maintain margins Development of non EPP parts by OEMs to substitute our contracted parts
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Opportunities
Outlook of overall Brazilian economy and growth of automotive sector Lower Bracket of consumers moving up in Brazilian Economy Infraestructure Investment for 2014 Soccer World Cup and 2016 Olympic Games EPE Sanko Other Seats, dunnage, etc
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SAP

Conclusions
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SAP

Good Business
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