Zoltek Corporation

1Issue 1 300811

How Zoltek’s Commercialization Strategy Facilitates Industry Growth

2

1988: Entered Carbon fiber business via acquisition of specialty CF friction products business. Zoltek has supplied 100% of GE’s jet engine inlet hot bearing for 25+ years

1992: IPO, ZOLT on Nasdaq1998: Launched Low Cost Carbon Fiber Concept

Locations:Headquarters: St. Louis, MissouriProduction Carbon Fiber: Hungary/USA (Texas)/MexicoProduction Fabric and Prepreg: Hungary and USA (St. Louis, MO)

Businesses:• Manufacturing Oxidized PAN and Carbon Fiber Products• Composite Equipment (Entec)

Markets Served:• Carbon Fiber: Wind, Transportation, Oil/Gas, Energy Storage,

Infrastructure, TP• Oxidized PAN: Aircraft Brakes 75+% of CC brakes globally

Brief History of Zoltek

3

Recent Zoltek News

27 Mar 2012 – Zoltek and Magna Join Forces to Speed Auto Industry Adoption of Carbon Fiber Material

05 Mar 2012 – Zoltek to Showcase Prepreg at JEC in Paris, FR

17 Nov 2011 – Zoltek Opening New Prepreg Operations and Tech Center in St. Louis, MO

17 Aug 2011 – Zoltek Receives U.S. Department of Energy Award for Low-Cost Carbon Fiber Development

14 Apr 2011 – Two More Zoltek Products Receive Germanischer Lloyd Approval

Zoltek HQ St. Louis

Europe – HungaryManufacturing – R&D

IndiaSales

ChinaSales

MexicoManufacturing USA (Texas)

Manufacturing

USA (Salt Lake City)R&D / Production

KoreaSales

Zoltek Worldwide

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SingaporeSales

USA (St. Louis)Manufacturing

� Applications Development

� Composite Testing

� Technical Fibre Development

� Aircraft Brake Fibres Production

� Molding process Development

� Prepregs & tow process machine supplier

� Composite laboratory (Sizing development)

� Intermediate product Development

St Louis - MRP & Prepreg Facility

Salt Lake City -Entec Composite Machines

� Composite Machine Manufacturer� Filament Winding Machines� Pultrusion Machines� Fiber Placement Software� Composite Technology R&D

St Louis, MO - Headquarters

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Our Facilities

Hungary � Precursor Production 20,000 Metric Ton +

� Carbon Fiber production capacity 8100 MT

� Unidirectional CF Fibre Fabric production

� Applications Development (EU companies)

� Investment over $100 MM - 120 acre site - Over

1000 employees

Texas � Carbon Fiber production capacity 2500 MT .

� Short Fiber (Chopped & Milled) 1350 MT

� Investment over $45MM - 20 acre site - over 150

employees

� New Facility to supply future demand

� Precursor Production capacity 28,000 MT (capacity

over 60,000 MT)

� Investment over $100 MM - 160 acre site

Mexico

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Our Facilities

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Lead the Commercialization of Carbon Fiber for

Industrial Applications

� Target industrial markets (e.g. wind, automotive)

� Low cost/high throughput production

� Growing capacity with or ahead of market demand. Capable of Capacity Expansion in 6 months.

� Independence from aerospace pricing cycles

� Supply/Pricing commitment via long term contracts

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3,5

6,5

10,5

13

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2

4

6

8

10

12

14

2004 2005 2006 2007 2008

Over a 4 year period (2005 – 2008), Zoltek demonstrated the ability to quickly ramp capacity to meet the commercial carbon fiber demands driven by Wind Energy

Tho

usan

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Zoltek Growth in Production Capacity

Supply Availability is critical to our customers and our commercialization strategy

Our Mission

Our Markets

• Wind Energy

• Automotive

• High-Performance Braking

• F. W / CNG / Pressure Vessels

• Infrastructure

• Oil and Gas

• Secondary Aircraft Structures

• Marine

• Sporting Goods

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Wind Energy

Year by year, wind turbine blades are growing larger and more powerful. Too large, in fact, to support their own weight with traditional materials.

Carbon fiber is the enabling material thatmakes wind energy viable.

Zoltek Wind Energy Products:• Continuous Tow• Infusible Fabrics• Prepreg

20,000 tons of Zoltek carbon fiber have been installed in wind turbines worldwide.

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Automotive

Zoltek Automotive was established to develop and assist the expand the use of carbon fiber in the automotive industry.

Zoltek Automotive Processing Technologies:• Resin Transfer Molding• Injection Molding• Compression Molding• Sheet Molding Compounding

This automotive front end was made with Panex 35 continuous tow via direct injection

molding; it was created in less than 60 seconds and weighs less than 10 lbs.

Carbon Fiber parts weigh less, improving fuel efficiency and overall vehicle performance.

1111

High -Performance Braking

Zoltek’s carbon braking materials are manufactured to withstand extreme braking conditions that demand resistance to harsh temperatures and chemical environments.

First adopted by the aircraft industry, carbon brakes are now being used in high-end automobiles. Zoltek is a major supplier for both.

Benefits of Carbon Braking:• Superior Stopping Power• Overall Mass Reduction• Longer Lasting Brakes• Faster Cooling (Quicker

Aircraft Turnaround Time)

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0

20

40

60

80

100

120

140

2007 2008 2009 2010 2011 2012

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Aerospace

Alt. Energy / Wind

Automotive

Industrial

Offshore Drilling

Infrastructure

Sporting GoodsTransportation / Marine

Thermoplastics / Electr.

Key drivers of global demand will be energy and industrial applications

Global Demand for Carbon Fiber

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Carbon Fiber Industry Capacity

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20

40

60

80

100

120

2007 2008 2009 2010 2011 2012 2013

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Zoltek

Toray

Toho

Mitsubishi

Cytec

Hexcel

SGL

OtherFormosa

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12 K50 K

Aerospace Fibers Commercial Fibers

Smaller Tow Larger Tow

Higher Cost Low Cost

Market Driven Pricing Cost Driven Pricing

Long Lead Capacity Growth Rapid Capacity Expansion

Low FAW Products Higher FAW Products

High Cost Applications Low Cost Applications

Equivalent Properties in Composite

3 K 6 K

24 K

????

Commercial vs. Aerospace

$-

$5,00

$10,00

$15,00

$20,00

$25,00

$30,00

$35,00

$40,00

2000 2002 2004 2006 2008 2010 2012 2014 2016

US

D /

KG

Year

Carbon Fiber Pricing - Zoltek vs. "Aerospace"

Aerospace CF Zoltek

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Pricing Comparisons

MO

DU

LUS

ST

RE

NG

TH

CO

ST

220

2503400

4900

1000

3000

3500

4000

4500

2500

2000

1500

50

150

200

250

100Mod

ulus

of E

last

icity

(G

Pa)

Tens

ile S

tren

gth

(MP

a)

Range of Standard Modulus Fibers

Cos

t ($

/ KG

)

$10

$30

$20

MRC TR40Toray T 700

5000

300

$40

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Fiber Comparisons

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1 000

2 000

3 000

4 000

5 000

6 000M

Pa

Grades

As you can see Zoltek Panex 35® is a suitable product for most applications. In addition, TS of the filament will not directly correlate to the performance of the compounds (as the fiber is chopped to 6mm)

TS Comparison – CF Filaments

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Zoltek Panex 35® focused more in TM (Tensile Modulus); it appears that Panex 35® TM is among the highest.

Even though TM of the filament shall not be directly correlate with the compounds performance, it would provides higher degree of improvement to the modulus of the final compounds.

220

225

230

235

240

245

GP

a

Grades

TM Comparisons – CF Filaments

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Products

PANEX® PYRON®

Description High Performance Carbon FibersOxidized Acrylic Fibers & High Carbon Content Fibers

Unique Properties

� High Strength & Stiffness� Lightweight

� Friction Resistance� Flame & Heat Resistance

Main Product Forms

� Tow� Chopped / Milled� Fabric� Prepreg

� Tow� Yarn� Staple Fiber� Fabric

Cost & Performance

Lower cost than aerospace grade, yet competitive performance

Lower cost than Nomex and Kevlar, yet competitive performance

Applicationexamples

� Wind turbine blades� Concrete reinforcements� Auto structural parts and panels� High pressure vessels� Offshore drilling equipment� Sporting goods equipment

� Aircraft brakes� Auto brake pads� Auto flame protection� Protective clothing

� 50,000 filaments

� 7.2 micron diameter

� Strength = 4150 Mpa

� Modulus = 242 Gpa

� Density = 1.81 g/cc

� Yield = 270 m/kg

� Carbon Content = 95%

Panex® 35 – The Commercial Carbon Fiber

Carbon Fiber Value Chain

Carbon Fiber Production

Dry Process Composite Part Making

Customer Application

Wetting Process

Weaving

UD Fabrics

Braiding

Multi-axial

PANEX Tow

PANEX Milled/ Chopped

Prepreg

Compounding

Infusion/RTM

Autoclave / Vacuum

Filament Winding

Pultrusion / Pull-winding

Injection / Compression

Molding

Composite Part

� Wind turbine blade� Auto body panel� etc.

Zoltek Confidential Information

� Select fabric profiles up to 1.25 m wide� Specifically developed for large, thick parts and vacuum infusion

processing� Typical fiber areal weights 300 – 850 gsm� Typical Vf = 55%

Fabric Laminate Properties*� Vf = 55%� Vacuum Pressure cure @ 85-120 deg C� Laminate Density = 1.52 g/cc� Tensile Strength = 1600 MPa� Tensile Modulus = 125 GPa� Compression Strength = 950 MPa� Compression Modulus = 110 GPa

* Normalized to 55% Vf

Zoltek Infusible Carbon Fiber Fabrics

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Description Standard Fiber Length

Typical Resin Matrix

Chopped Pellet (-65) 6 mm (0.25 in.)

Polycarbonate, other misc. thermoplastics

High Temp. Pellet (-85)6 mm

(0.25 in.)PEEK, PPS, PEI, PES, PPA, other high-temp thermoplastics

Chopped Pellet (-X7)6 mm

(0.25 in)Polyamide (Nylon)

Chopped Pellet (-X6)6 mm

(0.25 in)Polyacetal (POM)

Chopped Stick (-48)8.3 mm

(0.33 in.)Nylon, PPO, other misc. thermoplastics

Chopped Flake (-13)3, 6,13 mm

(0.125, 0.25, 0.5 in.)Epoxy, Polyester, Vinyl Ester

Chopped Flake Dispersible (-01, -04)

3 – 50 mm(0.125 – 2.0 in.)

Water-based slurry type

Milled Fiber100-300 micron

(0.283 mils)Various

Standard Chopped / Milled Product

� Unidirectional prepreg tapes up to 1.25 m wide� Specifically developed for large, thick parts and vacuum pressure

processing� Typical fiber areal weights 300 – 600 gsm� Typical Vf = 55-65%

Laminate Properties (ZR1 Resin System)*� Vf = 60%� Vacuum Pressure cure @ 120 deg C� Laminate Density = 1.54 g/cc� Tensile Strength = 2040 MPa� Tensile Modulus = 136 GPa� Compression Strength = 1330 MPa� Compression Modulus = 125 GPa

* Normalized to 60% Vf

Zoltek Prepreg

� Unidirectional prepreg tapes up to 1.25 m wide� Specifically developed for large, thick parts and vacuum pressure

processing� Typical fiber areal weights 300 – 600 gsm� Typical Vf = 55-65%

Laminate Properties (ZR6 Resin System)*� Vf = 60%� Vacuum Pressure cure @ 85-120 deg C� Laminate Density = 1.55 g/cc� Tensile Strength = 1859 MPa� Tensile Modulus = 131 GPa� Compression Strength = 1327 MPa� Compression Modulus = 126 GPa

* Tested at IMA-Dresden, made with 3800 Mpa strength fiber

Zoltek Prepreg

Issue 1 300811

Thank you for your attention!

Leaders in the Commercialization of Carbon Fibre