PEM Europe a Penn Engineering Company 70 years

PEM® Europe a Penn. Engineering® Company 70+ years of Innovation 1

Common Problems - Dimensional • Dimensional: Ø From a wide sample testing of Nuts, Studs and Standoff’s, the following issues were noted Ø Wide spread of dimensional data outside of PEM® specification Ø Non-Gaugeable threads Ø Impact: Ø Leads to issues with Automatic Feeding systems Ø Thread gauging leads to issues with assembly of mating components Ø Below is an example of dimensional variance 2

Common Problems - Material • From a wide sample testing of Nuts, Studs and Standoff’s, the following issues were noted Ø Mild Steels: Ø Wide variation in material grade, indicating lack of consistent specification Ø Speciality Materials (Corrosion Resistant): Ø Low Nickel content, Chemical composition outside of PEM® specification Ø Impact: Ø Leads to significant corrosion issues and lack of raw material traceability Ø Below is an example of a Salt-Spray test comparison 3

Common Problems – Hardness • Note: Ensuring the correct hardness of the self-clinch fastener is a critical performance characteristic • From a wide sample testing of Nuts, Studs and Standoff’s, the following issues were noted Ø Wide spread of hardness above and below the PEM® and Industry specification. Ø Impact: Ø Inconsistent performance Ø Assembly Issues Ø Risk of Hydrogen embrittlement 4

Common Problems - Plating • From a wide sample testing of Nuts, Studs and Standoff’s, the following issues were noted Ø Plating thickness below the minimum PEM® and Industry specification. Ø Poor aesthetic appearance in many examples Ø Impact Ø Leads to premature fastener corrosion Ø See below example of salt-spray testing comparison 5

Common Problems – Mechanical Performance • From a wide sample count of Nuts, Studs and Standoff’s, the following issues were noted Ø Significant reduction in Torque-out when compared to the PEM® specification Ø A consequence of dimensional variation and inconsistent hardness Ø Impact Ø Failing to meet Torque-Out requirements could lead to a fastener spinning in the sheet. As the self-clinch fastener s a permanent fixing, this has significant impact to the assembly. 6

Common Problems – Product Labeling • Traceability: Ø All PEM® parts include the manufacturing reference number, ensuring full lot traceability Ø See example below as the PEM® global standard. Ø Impact: Ø Most competitors have variations in labelling format due to multiple product sources – leading to non-existent traceability. 7

Common Problems - Trademarks • Traceability: Ø All PEM® brand fasteners include the registered trademark (detailed below). The PEM® trademark reflects more than 70 years of quality, reliability, innovation and support. 8

Summary 9

PEM® Europe a Penn. Engineering® Company 70+ years of Innovation 10