Protective Coatings

Markets, Trends & Opportunities

Summit, NJ, US

London, UK

San Francisco, CA, US

Beijing, China New Delhi, India

Dusseldorf, 12th September 2013

Agenda

• IRL Overview

• Protective Coating Market Metrics

• Growth Regions and Countries

• Key Trends and Opportunities

IRL’s global footprint (London; Summit, NJ; San Francisco, CA; Beijing; New Delhi) allows our clients to benefit from a local account management team, combined with geography-specific sector knowledge and linguistic capabilities.

European HQ North American HQ Satellite Offices

San Francisco, CA

West Coast

clients

Summit, NJ

East Coast clients

London, UK

European clients

New Delhi, India

Providing

information to US & EU teams

Korea, China & Japan Presence

Providing

information to US & EU teams

Global Reach

IRL Database

4 4

IRL Paints & Coatings Database

102 Countries Across: • Asia-Pacific • Middle East • Africa • Eastern Europe • Western Europe • Central Europe • Latin America • Central America &

Caribbean

9 End-Use Industries: • Architectural • Automotive OEM • Auto Refinish • General Industrial • Wood Coatings • Marine • Plastic • Powder • Protective

Data Split by Chemistry: • Epoxy • Polyurethane • Vinyl • Acrylic • Polyester • Alkyd • Nitrocellulose

Application Technology: • Solvent-Based • Water-Based • Radiation-Curable

IRL has recently completed its global coatings database and intends to update it as a live platform to monitor the industry.

How Can We Help You?

Ad-Hoc Consulting The IRL coatings database provides a fantastic platform to help coating companies evaluate their strategies, identify opportunities and grow their business. IRL is keen to leverage the data platform and dive deeper to help companies enter new markets and expand their activities and clients. Need to know the protective coatings market size and competitive landscape in Turkey or another region of strategic focus to you? Why not give us a call and see what we can do for you….

Business Model

Analysis

Market Entry & Expansion

Market Opportunity

Analysis

Due Diligence Bench-

marking

Market Mapping

Monitoring & Forecasting

Strategy Exercises

Customer Satisfaction

Protective Coatings

Definition These coatings, which are generally thicker, are used to protect steel structures. Protective coatings are sometimes enhanced with fire-retardant properties. The protective coatings category covers anti-corrosive coatings for metal structures such as bridges, tunnels, rails and other structures widely used in various heavy engineering applications. These can also be applied in high profile industries such as oil, gas and petrochemicals.

• Onshore protective coatings are used for land-based applications

• Offshore protective coatings are used for sea-based applications.

Market Growth Ann

ual G

DP

Gro

wth

(%

)

Source: OECD

Coatings Usage

Paints & Coatings Consumption by End-Use Industry in EMEA, 2012

Coatings Usage 20

12 C

onsu

mpt

ion

(ton

nes)

Forecast Growth 2012 to 2017 (CAGR %)

All Paint & Coating Consumption by End-Use Industry in Europe

Resin Usage

Total European protective coatings market size in 2012 is estimated at 414,200 tonnes.

European Market Metrics

Protective Coatings Consumption (Tonnes), 2012 & 2017

• Russian market demand and growth is driven mainly by bridge building. • Oil and gas sector is showing around 3% growth, whereas infrastructure

growth has been as high as 20% in some areas. • Turkey is another high growth area, as are Croatia and Lithuania. • Growth in Germany remains strong compared to other WE countries.

Drivers & Restraints Economic crisis Price pressure Alternative finishing technologies to paints More durable coatings Alternative materials to metals (different metals)

Government construction projects Social housing programmes Building improvements and upgrades Population growth New technologies (better coatings) Sports Events (Sochi) ME Petrochemical plants Alternative energy

Potential Paint Market Growth

Potential Paint Market Growth

Potential Paint Market Growth 20

12 C

onsu

mpt

ion

(ton

nes)

Forecast Growth 2012 to 2017 (CAGR %)

Protective Coating Consumption by Selected Countries in Europe

Coatings Market Analysis

Strengths

Good growth Government projects have sustained demand Innovative market Allows manufacturers to differentiate their offering Growth in Eastern Europe

Weaknesses WE is a mature market Increasing raw material costs Regulation Price pressure

Opportunities Government investment in infrastructure Population growth Social housing programmes New technologies (water-based and powder)

Threats Global economic crisis (fear to invest) High raw material prices New technologies such as films Changes in manufacturing materials that may not need coating

SWOT

Thank You

Robert Outram Associate Director routram@brggroup.com +44 (0)208 832 7750 www.informationresearch.co.uk