NLGI LUBRICATING GREASE PRODUCTION SURVEY REPORT — 2020 Chuck Coe, CLS, CLGS Grease Technology Solutions, LLC NLGI AGM Tucson, AZ September 2021NLGI GREASE PRODUCTION SURVEY - What is the NLGI Production Survey? » Voluntary Submission of Annual Grease Production o Only as accurate and meaningful as the quality of data reported - What does the NLGI Production Survey Provide? » Annual accounting of grease production globally - The data is categorized in many useful ways o By Geographic Region o By Thickener Type o By Year © By Base Oil Type (beginning in 2010)THE GLOBAL PERSPECTIVE World wide grease production, Lbs 3,000,000,000 2,500,000,000 a ee 2,000,000,000 1,500,000,000 1,000,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 >d production — p > CAGR of -0.6% over past 9 yearsTHE GLOBAL PERSPECTIVE — BY REGION 2020 Production Survey Global Statistics North America 32 Europe 45 Caribbean, Central & South America 10 Africa & Middle East 14 India & Indian Subcontinent 7 Japan 16 Pacific & South East Asia 13 PRC 73 39 48 14 13 20 15 16 nm 359,332,592 467,108,246 69,536,254 118,651,823 189,996,446 151,723,254 161,480,465 934,145,150 9,213,656 9,731,422 4,966,875 9,127,063 9,499,822 10,114,884 10,092,529 13,156,974 “The reported number of plants for each region may not agree with the number shown on the Suvey Response Statistics pages, due to the fact that some companies report consolidated volumes for multiple plants. Includes 14 companies data from Japan and 62 companies from PRC gathered and summarized by JGI and SINOPEC, respectivelyTHE GLOBAL PERSPECTIVE — By REGION Global Grease Production by Region, % BNA meEU mCC&SA MAME india Japan SEA m= PRC » North America production had been flat, but now has a CAGR of -2.3% while Europe production had been increasing until 2019REGIONAL TRENDS North America, Lbs Europe, Lbs 006,000 20900000 200900000 Carribean, Central & S.America, Lbs Africa & Middle East, Lbs 000,00 nnn: 200000000 120,00,000 re 110,00,000 ‘000600 200,000,000 ‘000000, ‘000000 000.000, 20.00 000 Hd due to lower production » Latin America declined 11% due to participant drop out and Africa & Middle East was relatively unchangedREGIONAI 0 00,000 50,0 000 TRENNS India & SubContinent, Lbs Pacific & SE Asia, Lbs Japan, Lbs 0200000 250000900 20,0000 10,0000 ° Peoples Republic of China, Lbs » India reported a decrease in reported production by 15%, mostly due to decreased production, while Japan reported production also declined 12%, apparently due to reduced domestic demand » Southeast Asia and China showed slight decreases in production, -4% and -2% respectivelyTRENDS BY THICKENER TYPE - LITHIUM DETAILS 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 » However, LiX growth seems to be slowing, while Ca soap greases increasedTRENDS BY THICKENER TYPE - CALCIUM DETAILS 4.00% 3.00% 2.00% 1.00% 5.00% 0.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 10.0% fae 80% 6.0% 2 40% - 20% 00% 2019 2011 2012 2013 2016 2015 2016 2017 2018 2019 2020 » Calcium Sulfonate grease is growing at a CAGR of 6.4%, although production declined slightly in 2020 » Anhydrous calcium soap greases are making a comeback (up almost 20% year-on- oe year), apparently due to shifts away from lithium-based greasesTRENDS BY THICKENER TYPE — ALUMINUM COMPLEX DETAILS 4.00% 3.00% NN 2.00% 1.00% 0.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 a this 9-year period —TRENDS BY THICKENER TYPE - POLYUREA DETAILS 60,000,000 50,000,000 + 40,000,000 + 30,000,000 + 20,000,000 + a 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 » Polyurea greases continue healthy growth to over 6% of total production with a CAGR of 2.2% over the 9-year period —rn —sapan — —row » Regionally, only China and Rest of World showed growth over 2019 » North American production has shown a steady decline since 2016, while production in Japan has decreased since 2019 » Europe had been steadily increasing until 2019GLOBAL PRODUCTION — BY BASE OIL TYPE Total All Countries, % w\»_ |! 325 “ = mineral "synthetic *semi-syntheti¢ "bio-based 201” 2011 2012 2013 2014 201s 216 20172018 OIE 2020 synthetic AGR'.28% | —Som-synthatic CGR 676% —Biorbared CAGRS. 32% by full cs » The use of bio-based oils is continuing to increase slowly from the previous plateau of around 0.5% globally to around 0.8%NorRTH AMERICA BASE OIL TRENDS we North America, % os 0 : SNS “ern Hy yl : "bio-based —. AS 20102011 2012-2013 2018 20152062017 —~2OIE 20192020 — syrthatie ASR 3.8956 —Semisynthetie CAGR 1.725—Blo-based CAGR-6.43% v The use of bio-based oils has continued to decline (CAGR of -6.4% over this period) 3°SUMMARY » The 2020 Production Survey has been completed and is now available: Worldwide grease production was down by 8.5% compared to 2019 North American production was down about 22%, about 1/2 of which was due to decreased participation @ Europe was down 7%, with about 2% due to decreased participation India reported a significant decrease in production by 15%, most of which was due to decreased production @ Africa & Middle East changed very little from 2019, while Caribbean, Central & South America declined by 11%, due to participant drop out W Japan production dropped by 12% due to decreased production ¥ Southeast Asia reported production decreased by 4% due to lower production W China decreased by 2%SUMMARY CONTINUED @ Lithium complex production dropped along with simple lithium production t Polyurea production continues to grow in China, but is slipping everywhere else 4 Calcium sulfonate grease continues to show the most rapid and continuous increase compared to other thickeners, especially in China and Europe 4 Anhydrous calcium soap greases are making a comeback, apparently due to shifts away from lithium-based greases ¥ Use of all non-conventional base oils decreased slightly in 2020 > To get your copy: https://www.nlgi.org/store/QUESTIONSSoa Gr eee Siiece GREASE TECHNOLOGY SOLUTIONS LLC 35386 GREYFRIAR DR ROUND HILL, VA 20141 Office: 1 (540) 338 8040 Fax: 1 (540) 338 8063 Mobile: 1 (703) 589 3308 Email: [email protected] Website: www.grease-tech.com