21 de Mayo 2011

CEO 360 Degree Presentation

On the

North American Chemicals & Materials

Industry

Presented to

2

Agenda A

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Chemicals & Materials Industry

Story Till Date and Recent Updates

Global Mega Trends and the Chemicals & Materials Industry

Analysis of Growth Opportunities

3

Chemicals & Materials Industry Story Till Date

Source: McKinsey, Frost & Sullivan

Early 20th Century Early 21st Century

Benefits from Pure Science and Fundamental Scientific Breakthroughs

R&D and Access to Raw Material critical for the

nascent industry

Success factors depends on region

and portfolio

Global economic growth not dependent on

Chemicals

Key value driver: Growth of the industry is high compared

to global GDP growth

The chemicals industry is one of the pillars of the

global economy

High localised industry

High degree of fragmentation

Onset of Globalization and Consolidation

Consolidated western hemisphere. Opportunities

exist in Asia

Developments in process technology and engineering

Plastics and Polymers boom

Emergence of the Pharmaceutical

Industry

Separation of the Pharma /

Biopharma / Biotech Industries

Emergence of sustainability and responsible care

Focus on Application Development

Global Presence Focus on price competitiveness,

economies of scale and operational excellence

Process Engineering Application Development

Key

Developments

Critical

Success

Factors

Chemicals

Industry and

the Economy

Industry

Structure

4

Europe 30%

North America 23%Latin America

7%

MEAF 4%

APAC 36%

Source: Frost & Sullivan

Story Till Date: Current Market Scenario Global Chemicals Sales: 2009-2020

China 28%

Japan 25%

India 5%

Others 42%

Germany 25%

France 15%

Italy 11%

UK 10%

Netherlands 10%

Others 29%

GLOBAL CHEMICALS SALES, 2009 GLOBAL CHEMICALS SALES, 2009

• Asia is the fastest growing region

in the world with chemicals sales

expected to grow at a CAGR of

approximately 4-5% from 2009-

2020

• The Asian chemicals market is

mainly driven by China which is

soon expected to surpass the US

as the largest chemicals producer

worldwide

• Japan is the second largest

market in Asia driven

predominantly by specialties.

India is also a key constituent in

the Asian pie due to its promising

long term potential

• European chemicals sales are

expected to grow at a CAGR of

less than 2% per annum to 2020

• Germany is the leading chemicals

producer in Europe and is

expected to maintain its position

to 2020

• Europe will lead the global

chemicals industry in terms of

regulatory compliance,

sustainability and innovation.

• Chemical companies may also

look to JVs / strategic alliances in

other regions (such as the Middle

East) to secure feedstock

Global chemical sales are expected to grow at 2.5-3% during 2009-2020. In this period, China will overtake the United States as the largest chemicals producing nation

$ B

illio

n $

Bill

ion

5

Story Till Date: Recession Update Chemicals Industry Outlook After Recession

Chemicals Shipments: Historical and Forecast– US, EU, China and India

• China’s spectacular growth in chemicals sales almost stagnated during 2008-2009, but is expected to continue a strong growth to 2015

• US chemical sales is expected to rebound faster and may reach 2008 levels in 2010-11. However, EU chemical sales may take till 2013 to reach pre-recession levels

Inde

x 20

00=

100

Inde

x 20

00=

100

Source: Data on historical chemicals shipments from ACC, Frost & Sullivan analysis

6

Market Metrics Total US Chemical Industry Revenues, Industry Revenues Per Category, 2010 - 2015, $US Billions

Reve

nues

, $U

S Bi

llion

Note: All figures are rounded; the base year is 2010.

• In 2010, revenues in the US Chemical Industry reached $694

billion. Revenues in the US market are likely to grow at a

CAGR of 2.7 percent from 2010 to 2015, reaching $793 billion

by 2015.

• The Basic Chemical category consisted of the largest share of

the US market with a 34.1 percent share. Consumer

Chemicals held the smallest share of the market by category

with 8.1 percent share.

US Chemical Industry: Industry Revenues Per Category, 2010, %

US Chemical Industry: Industry Revenues Per Category, 2010, %

7

Market Metrics Basic Chemicals, Industry Revenues Per Subcategory, 2010 - 2015, $US Billions

Reve

nues

, $U

S Bi

llion

Note: All figures are rounded; the base year is 2010.

• In 2010, revenues in the US Basic Chemical Industry was

$237 billion. Revenues in the US basic chemical market is

likely to grow at a CAGR of 2.3 percent from 2010 to 2015,

reaching $265 billion by 2015. Polymers are the largest sub-

segment within the Basic Chemical category representing

33.3 percent of the market.

• Bulk petrochemicals and intermediates make up almost half

of the market, the majority of which is consumed directly

within the chemical industry for further processing

• Fertilizers is a suffering segment of the market due to

depressed demand.

Basic Chemical: Revenues Per Category, 2010, %Basic Chemical: Revenues Per Category, 2010, %

8

Chemicals Industry: Story Till Date The Chemicals Industry Has a Constant Challenge to Maintain and Grow Margins

Raw Material Price Fluctuations

Raw Material Price Fluctuations

Price Pressure from Customers

Price Pressure from Customers

Long Investment Cycles

Increasing Regulatory Requirements

Increasing Regulatory Requirements

Changing Competitive Landscape

Changing Competitive Landscape

Chemicals &

Materials

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Agenda A

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Chemicals & Materials Industry

Story Till Date and Recent Updates

Global Mega Trends and the Chemicals & Materials Industry

Analysis of Growth Opportunities

10

Global Megatrends and their Implications Mega Trends Allow Companies to Determine Opportunities and Threats

FROST & SULLIVAN’s CHEMICALS AND MATERIALS PRACTICE

IDENTIFIES FOUR MEGA TRENDS

FUNCTIONALITY &

PERFORMANCE

HEALTH &

WELLNESS

LOW CARBON ECONOMY

GLOBALISATION

Why look at Mega Trends?

Good companies understand what their customers want; great companies understand why. These organizations are better prepared to meet and provide what their customers would want next Considering the impact of major megatrends allows businesses to determine and respond to opportunities and threats

A Mega Trend is a long term global transformation process A Mega Trend is a long term global transformation process

Mega Trends arise at the interplay between changes that are Mega Trends arise at the interplay between changes that are happening to us as individuals, changes happening to the world happening to us as individuals, changes happening to the world at large and our changing requirements and needs at large and our changing requirements and needs

What is happening to us?

(Demographic Trends)

What is happening to the

world around us?

What are our changing needs?

MEGA TRENDS

11

66.8 Million Vehicles

29.6%

8.5%

23.8%

6.0%

23.0%

Mill

ion

Uni

ts

0.8%

6.3%

0

5

10

15

20

25

30

35

40

45

2015

Africa Asia Eastern Europe Middle East

North America Other South America Western Europe

86 Million Vehicles

34.4%

23.3%

6.2%

20.6%

3.9%

0.9%

8.3%

0

5

10

15

20

25

30

35

40

45

2015

Africa Asia Eastern Europe Middle East

North America Other South America Western Europe

World Automotive Market: Light Vehicle Sales

Source: Frost & Sullivan

Growth in automotive

sales has an impact o

n

demand for p

roducts

such as:

By 2015, global automotive light vehicle sales is expected to grow to

86 million vehicles per annum. Asia is the fastest growing market and

is expected to account for over a third of all light vehicles sales. This

will also impact the growth in demand for chemicals and materials

used in transportation such as automotive refinish coatings

By 2015, global automotive light vehicle sales is expected to grow to

86 million vehicles per annum. Asia is the fastest growing market and

is expected to account for over a third of all light vehicles sales. This

will also impact the growth in demand for chemicals and materials

used in transportation such as automotive refinish coatings

Globalization Demand Growth for Chemicals is Linked to End User Industry Growth

Source: Frost & Sullivan

Global Automotive Refinish Coatings

Western Europe

India

0%

8%

16%

0 200 400

Current Market Volume (Million lbs)

CA

GR

(20

08-2

015)

North America

Japan

Eastern Europe

China

12

• While the global chemicals industry is expected to grow at a CAGR of approximately 2-3% in the long term,

demand from the Asia Pacific region is expected to grow faster than other regions at 4-5%

• We also note that additional capacities and increasing capital investment in the Asia Pacific / Latin

American region has resulted in a steep growth in production of chemicals in these regions

Source: Cefic data

Chemicals Demand Growth Forecast: 2009-2020 Chemicals Industry Production Growth

Source: Frost & Sullivan

CAGR: 4-5%

Globalization Global Shift in Production & Demand

Inde

x 19

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$ B

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13

• The Middle East has significant feedstock advantages

• Chemicals production in the region has focused on

petrochemicals and this trend is expected to continue

• Saudi Arabia leads in terms of new capacities. The UAE

and Abu Dhabi also aims to increase their presence in

petrochemicals significantly over the next decade

• Over 80% of the new projects are olefins and aromatics

• APAC on the other hand, benefits from low cost

production and high growth of local demand

Petrochemical Capacity Outlook Global Supply-Demand Impact

Ethylene Large increases in ethylene capacity expected, additional increase of about 35 Mn MT expected by 2013 in ME and APAC

Massive build up of capacities will see oversupply of ethylene, and is expected to affect market dynamics. Demand growth is only 3% as against the capacity growth at 4 %

Benzene Benzene capacity to be added – 1.5 Mn MT in ME and 3.1 Mn MT in Asia-Pacific by 2012

Shortage of investments under this segment; opportunities exist

Propylene Propylene capacities of 9.2 Mn MT is expected by end of 2011. Polypropylene capacity of 9 Mn MT is expected by 2012 in the ME and Asia-Pacific regions

Supply and Demand is expected to be balanced

Methanol A total of 7 Mn MT of Methanol Capacity addition expected by 2011 in ME and APAC

Supply and Demand is expected to be skewed till 2012 after which balance will return

Middle East Ethylene Capacity, 2007-2013

Source: Frost & Sullivan

Mill

ion

Ton

nes

Per

cent

age

(%)

Globalization: Competitive Perspective Upcoming Capacities in ME and APAC Threaten Supply-Demand Balance

14

Beauty Products Beauty Products Fashion Fashion Aesthetic Design Aesthetic Design Healthcare Healthcare

Personal Care Personal Care Functional Foods Functional Foods Fitness Fitness Personal Protection Personal Protection

THE CHEMICALS & MATERIALS INDUSTRY MAKES THESE POSSIBLE THE CHEMICALS & MATERIALS INDUSTRY MAKES THESE POSSIBLE

Health and Wellness Drives Products and Concepts Such As:

15

Towards Better Health and Disease Prevention Growing Demand for Functional Foods, Beverages and Ingredients

Obesity:

Percentage of population older than 15 with a BMI greater than 30

Obesity:

Percentage of population older than 15 with a BMI greater than 30

Includes: • Satiety Ingredients / Appetite

Suppressants • Fat Burners • Others: Carbohydrate

blockers, Fat blockers, Metabolism regulators, Mood regulators

Focus on the prevalence and rise of obesity amongst the Focus on the prevalence and rise of obesity amongst the global populace has given rise to opportunities for weight global populace has given rise to opportunities for weight

management ingredients management ingredients

Rev

enue

s in

$ M

n

Global Weight Management Ingredients, 2008-2015

CAGR 2008-2015: 9.2%

Rev

enue

s in

$ M

n

CAGR 2008-2015: 21.3%

Rev

enue

s in

$ M

n

CAGR 2006-2013: 8.6%

Australian Functional Foods Market US Heart Health Ingredients Market

• Includes:

• Phytosterols

• Omega-3 PUFA

• Beta-glucan

• Soy Ingredients

• Others

Includes:

• Energy Drinks

• Sports Drinks

• Functional Waters

• Fruit & Vegetable Drinks

• Soy Milk

The need for The need for prevention and better prevention and better

general health has general health has driven the demand driven the demand for functional F&B for functional F&B

products and products and consequently the consequently the

market for specific market for specific functional ingredients functional ingredients

16

Health and Wellness Feel Good Factor: Going Beyond General Health

INCREASING FOCUS ON INCREASING FOCUS ON PERSONAL CARE PERSONAL CARE

CAGR 2008-2014: 7.2% CAGR 2008-2015: 18.5%

Chinese Personal Care Active Ingredients Market

Indian Personal Care Inactive Ingredients Market

The global personal care market in 2009 was estimated to be around $328 Billion and expected to grow at a CAGR of approximately 5-6%

to 2015

The increasing focus on personal care not The increasing focus on personal care not only drives the market for active and inactive only drives the market for active and inactive

ingredients in personal care products but ingredients in personal care products but also the market for nutricosmetics also the market for nutricosmetics

CAGR 2008-2015: ~15%

US and NA Nutricosmetic Ingredients Market

Personal care Personal care nutricosmetics are nutricosmetics are products when ingested products when ingested have an effect have an effect (preventive or reactive) (preventive or reactive) on skin, nails and hair. on skin, nails and hair. The ingestion of The ingestion of nutricosmetics is mainly nutricosmetics is mainly through food through food fortification / fortification / supplements supplements

Rev

enue

s in

$ M

n

Rev

enue

s in

$ M

n

US and NA Nutricosmetic Ingredients Market, 2008

17

It is imperative to constantly raise the bar for functionality and performance of products and services to maintain competitiveness in a rapidly evolving marketplace It is imperative to constantly raise the bar for functionality and performance of products and services to maintain competitiveness in a rapidly evolving marketplace

Functionality & Performance Providing Greater Functionality & Performance is Necessary to Survive

Rapidly Evolving Functionality in Automobiles Rapidly Evolving Functionality in Automobiles

1st gen Corolla: 1966 1st gen Corolla: 1966 5th gen Corolla: 1983 5th gen Corolla: 1983

Evolution of Portable Media Devices Evolution of Portable Media Devices

Sony Walkman: 1979 Sony Walkman: 1979 Sony Discman Sony Discman iPods: Nano, Shuffle iPods: Nano, Shuffle Multifunctional Devices Multifunctional Devices

18

Functionality & Performance Chemicals and Materials Enable Improved Functionality and Performance

Advances in packaging materials enable superior convenience and greater shelf life Advances in packaging materials enable

superior convenience and greater shelf life

Microwaveable products and non stick cookware make cooking faster and easier

Microwaveable products and non stick cookware make cooking faster and easier

In sports, chemicals and materials enable superior performance

In sports, chemicals and materials enable superior performance

Alternative Building Materials for Unique Structures

Alternative Building Materials for Unique Structures

Anti-reflective coating Anti-reflective coating

A commonly used non stick coating is PTFE – polytetra fluoroethylene

A commonly used non stick coating is PTFE – polytetra fluoroethylene

Enhancing Functionality and Performance of Paints & Coatings

Enhancing Functionality and Performance of Paints & Coatings

Modern tennis

raquets are made of materials such as

carbon and graphite

Modern tennis

raquets are made of materials such as

carbon and graphite

Anti-graffiti Anti-graffiti Anti-climb Anti-climb

Heat resistant Heat resistant Fluorescent Paint Fluorescent Paint

19

Consumer Demand

Legislation

Shareholder Value

Profits

Internal Context Internal Context External Context External Context

The Chemicals Business

Increase in brand value and profits results in greater

shareholder value

Increase in brand value and profits results in greater

shareholder value

In 2008, a survey by TNS indicated that 45% of British

and 53% of American respondents would pay more

for eco friendly products

In 2008, a survey by TNS indicated that 45% of British

and 53% of American respondents would pay more

for eco friendly products

Lower operational costs (by optimizing consumption of energy and resources)

Lower operational costs (by optimizing consumption of energy and resources)

Since 1990, DuPont has saved more than $ 3 Billion through energy efficiency programs. 3M has saved $ 82 Million between 2001 and 2005 and reaped another $ 10 million in 2006 alone

Since 1990, DuPont has saved more than $ 3 Billion through energy efficiency programs. 3M has saved $ 82 Million between 2001 and 2005 and reaped another $ 10 million in 2006 alone

Widespread consumer

preferences and pressures drive legislation for nations and

businesses to reduce emissions

Widespread consumer

preferences and pressures drive legislation for nations and

businesses to reduce emissions

A host of local environmental legislations also apply. Companies may also benefit from the

sale of carbon credits

A host of local environmental legislations also apply. Companies may also benefit from the

sale of carbon credits

Reduced raw material costs (through efficiency, recycling, waste management)

Reduced raw material costs (through efficiency, recycling, waste management)

This figure is much higher for Brazil

(83%) and Thailand (94%)

This figure is much higher for Brazil

(83%) and Thailand (94%)

Key Drivers for Participating in the Low Carbon Economy Key Drivers for Participating in the Low Carbon Economy

Low Carbon Economy Key Drivers for the Low Carbon Economy

Source: Frost & Sullivan

20

Chemicals and Materials Drive Low Carbon Trends in the Automotive Industry Case study: Options to Decrease Dependence on Fossil Fuels by

PU

ABS

PA

PP

Thermosets

Others

0%

3%

6%

0% 25% 50%Percentage of Total Market Volumes, 2008

CA

GR

(20

08-2

015)

Mile

s p

er

ga

llon

Source: Association of International Automobile Manufacturers

Increasing Fuel Economy Increasing Fuel Economy

Automotive Light Automotive Light Weighting Trend Weighting Trend

Drives opportunities for Drives opportunities for plastics in passenger plastics in passenger

vehicles vehicles

Plastics in Passenger Vehicles, Global Plastics in Passenger Vehicles, Global

Alternative Fuel Vehicles / Fuel Options Alternative Fuel Vehicles / Fuel Options

Source: Frost & Sullivan

EU Biofuels Supply-Demand (2009-2020) EU Biofuels Supply-Demand (2009-2020) Electric Vehicles – Huge Materials Opportunity Electric Vehicles – Huge Materials Opportunity

Battery MaterialsLaminates, ElectrodesElectrolytes, Casing

TransmissionCooling fluids, Gear oils, Clutch fluids

GlazingPanoramic roof, Side windows, Polycarbonates, Acoustic laminates Electronics/wiring

High tension cables, Charging ports, Cable sheathsR

ollin

g re

sist

ance

Tyr

e ad

ditiv

esIn

terio

r In

sula

tion

21

Glocalization is the process by which global businesses are getting closer to their customers across regions and applications. Think Global, Act Local!

Outlook ‘Glocalization’: Could be the Emerging Mega Trend for the Next Decade

= GLOBALIZATION + LOCALIZATION

Irrespective of business model or area of focus, companies will increasingly attempt to get closer Irrespective of business model or area of focus, companies will increasingly attempt to get closer to their customers. This could mean: to their customers. This could mean:

Glocalization is the emerging trend to watch out for Glocalization is the emerging trend to watch out for

• Physical proximity

• Consumer focus: Chemical companies are not just

looking at their customer, but at their customers’

customers. The current focus on megatrends is just

the beginning

• Delve downstream: Going further down the value

chain

• Customized solutions: Increasing consolidation in

the end user industries could result in tremendous

bargaining power and customized products / services

• Product portfolio differentiation: Global companies

will increasingly look towards opportunities in product

development / application development that are

specific to a particular region / geography

22

Agenda A

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Chemicals & Materials Industry

Story Till Date and Recent Updates

Global Mega Trends and the Chemicals & Materials Industry

Analysis of Growth Opportunities

23

Analysis of Growth Opportunities Introduction

Ma

rke

t O

pp

ort

un

itie

s

Broad Broad

Specific Specific

Frost & Sullivan supports chemical companies by identifying company specific growth opportunities through a ‘Growth Innovation Funnel’

Frost & Sullivan supports chemical companies by identifying company specific growth opportunities through a ‘Growth Innovation Funnel’

Specialty chemicals present growth opportunities in most parts of the world

Frost & Sullivan’s analysis of selected attractive segments in key regions (Europe, US, China and India)

Sub-sector focus for growth opportunities: Construction and Utilities

Case Study: Market Opportunities in Battery Materials

Frost & Sullivan’s analysis of key growth opportunities globally (by region, sub sector, and application)

24

75

25

85

15

95

5

72

28

85

15

70

30

80

20

94

6

65

35

75

25

0

20

40

60

80

100

2009 2020

North America Latin America MEAF Europe APAC

Commodity Chemicals

Specialty Chemicals

Commodity Chemicals

Specialty Chemicals

Commodity Chemicals

Specialty Chemicals

Commodity Chemicals

Specialty Chemicals

Commodity Chemicals

Specialty Chemicals

Growth of Commodity Vs. Specialty Segments, By Region (% of Total Sales): 2009 - 2020

CA

GR

: 3-4

%

CA

GR

: 4-5

%

CA

GR

: 5-6

%

CA

GR

: 4%

CA

GR

: 9-1

0%

% o

f Tot

al S

ales

Analysis of Growth Opportunities Specialty Chemicals to Witness Faster Growth in Most Regions

• As is evident from the graph above, the next decade could be the decade of specialty chemicals. The % of specialty

chemicals as part of the overall chemicals sales will increase in all regions to 2020

• Across the world, sales of specialty chemicals could grow twice as fast as the market. Similar to the overall chemicals sales,

growth of specialty chemicals is highest is the Asia Pacific region at 9-10% (CAGR 2009-2020)

• Globally, specialty chemicals is expected to grow at a CAGR of 5-6% to 2020

25

Analysis of Growth Opportunities Opportunity Analysis: Attractive Segments by Key Regions

Source: Frost & Sullivan

INDIA

CHINA

EUROPE

UNITED STATES

Market Size Market Size

Gro

wth

Ra

te

CA

GR

20

09

-20

20

Gro

wth

Ra

te

CA

GR

20

09

-20

20

Textile ChemicalsTextile Chemicals

Paints and CoatingsPaints and Coatings

Structural AdhesivesStructural Adhesives

Structural AdhesivesStructural Adhesives

Low Med High Low Med High

Low

Med

High

Low

Med

High

Att

ract

ive

Seg

men

ts i

n t

he

Att

ract

ive

Seg

men

ts i

n t

he

Ch

emic

als

Ind

ust

ry

Ch

emic

als

Ind

ust

ry

Pulp & Paper ChemicalsPulp & Paper Chemicals

AdmixturesAdmixtures

SurfactantsSurfactants

Water Treatment ChemicalsWater Treatment Chemicals

PolymersPolymers

SurfactantsSurfactants

Nutraceutical IngredientsNutraceutical Ingredients

Plastic AdditivesPlastic Additives

Construction ChemicalsConstruction Chemicals

BiolubricantsBiolubricants

BiopesticidesBiopesticides

CatalystsCatalysts

Home and Fabric Care IngredientsHome and Fabric Care Ingredients

Paints & CoatingsPaints & Coatings

Plastic AdditivesPlastic Additives

Leather ChemicalsLeather Chemicals

Paints & CoatingsPaints & Coatings

26

Key Market Opportunities to 2020 Growth Opportunities in Construction and Utilities

GR

OW

TH

OP

PO

RT

UN

ITIE

S:

GR

OW

TH

OP

PO

RT

UN

ITIE

S:

CO

NS

TR

UC

TIO

N A

ND

UT

ILIT

IES

C

ON

ST

RU

CT

ION

AN

D U

TIL

ITIE

S

WATER TREATMENT The scarcity of water and with large geographic areas facing drought and desertification challenges, this is a critical area for investment Significant opportunities in Israel, Singapore, Japan, Australia and Middle East in sectors such as water separation technology, chemicals and desalination

WATER TREATMENT The scarcity of water and with large geographic areas facing drought and desertification challenges, this is a critical area for investment Significant opportunities in Israel, Singapore, Japan, Australia and Middle East in sectors such as water separation technology, chemicals and desalination

WIND POWER The Chinese wind power sector is witnessing rapid growth. In 2008 the installed capacity was 12,210MW in China, a y-o-y growth of 106.7%. This presents significant opportunities for structural adhesives and composite materials. Other regions that are attractive for wind power are: India and the US

WIND POWER The Chinese wind power sector is witnessing rapid growth. In 2008 the installed capacity was 12,210MW in China, a y-o-y growth of 106.7%. This presents significant opportunities for structural adhesives and composite materials. Other regions that are attractive for wind power are: India and the US

INSULATION SYSTEMS Exterior Insulation and Finishing Systems (EIFS) is a type of synthetic wall cladding for exterior walls and provides an insulated finished surface and waterproofing. External wall insulation using this can achieve 30-40% energy savings. EIFS is a key application for dry mix mortars and redispersible powders

INSULATION SYSTEMS Exterior Insulation and Finishing Systems (EIFS) is a type of synthetic wall cladding for exterior walls and provides an insulated finished surface and waterproofing. External wall insulation using this can achieve 30-40% energy savings. EIFS is a key application for dry mix mortars and redispersible powders

COMPOSITE MATERIALS Low cost carbon and glass fiber for building and industrial applications including construction panels in building and power infrastructure have high growth potential Increasingly, non corrosive composite materials are being used in metal and wood replacement

COMPOSITE MATERIALS Low cost carbon and glass fiber for building and industrial applications including construction panels in building and power infrastructure have high growth potential Increasingly, non corrosive composite materials are being used in metal and wood replacement

GREEN MATERIALS The demand for bio based adhesives and green coatings (low or no VOC) are expanding globally. Technologies emerging in the green building industry in North America, Europe and Southeast Asia include smart windows, vacuum windows and door panes, PV materials, LED lighting and recycled materials

GREEN MATERIALS The demand for bio based adhesives and green coatings (low or no VOC) are expanding globally. Technologies emerging in the green building industry in North America, Europe and Southeast Asia include smart windows, vacuum windows and door panes, PV materials, LED lighting and recycled materials

OTHERS Next generation solar systems, ocean thermal technology, algae cells for electricity generation and tidal and wave energy applications also represent opportunities in the near future. These areas are attractive significant funding from government and private sectors alike

OTHERS Next generation solar systems, ocean thermal technology, algae cells for electricity generation and tidal and wave energy applications also represent opportunities in the near future. These areas are attractive significant funding from government and private sectors alike

27

Market Opportunities by Application: Case Study Battery Materials: Nissan could not find a supplier in Europe

No existing EU producer

No existing EU producer

SEPARATORS

• PP based separators are the most commonly used in rechargeable lithium ion batteries

• Multilayered polymer separators are also gaining ground

• Newer technologies are emerging such as aramid based separators and PVDF separators which offer high temperature resistance

SEPARATORS

• PP based separators are the most commonly used in rechargeable lithium ion batteries

• Multilayered polymer separators are also gaining ground

• Newer technologies are emerging such as aramid based separators and PVDF separators which offer high temperature resistance

CATHODE

• These electrodes typically have aluminum as the current collector

• Active materials used include LiMn2O4 and LiCoO2

CATHODE

• These electrodes typically have aluminum as the current collector

• Active materials used include LiMn2O4 and LiCoO2

LAMINATE FILM

• The laminate film has similar structure to packaging laminates

• However, the presence of corrosive electrolytes is the biggest challenge in its construction

• Aluminum laminates with PET coating are most commonly used here

• European suppliers of aluminum laminates have struggled to meet the performance requirements of the laminate

LAMINATE FILM

• The laminate film has similar structure to packaging laminates

• However, the presence of corrosive electrolytes is the biggest challenge in its construction

• Aluminum laminates with PET coating are most commonly used here

• European suppliers of aluminum laminates have struggled to meet the performance requirements of the laminate

ANODE

• Copper is used as the current collector

• Active materials used includes graphite and LiC6

ANODE

• Copper is used as the current collector

• Active materials used includes graphite and LiC6

ELECTROLYTE • The electrolytes are typically lithium salts such as LiPF6 dissolved in EC, DEC

solvents • Players such as Merck exited the market in 1990’s and are now re-entering • US Government grants encouraging others to enter

ELECTROLYTE • The electrolytes are typically lithium salts such as LiPF6 dissolved in EC, DEC

solvents • Players such as Merck exited the market in 1990’s and are now re-entering • US Government grants encouraging others to enter

28

GATE

2

Create a growth pipeline through macro analysis of specific criteria applied to appropriate target markets -

Prioritize 3-4 opportunities Conduct deep dive and obtain

relevant information

Develop tactical business plan and implementation strategy

Develop a monitoring, evaluation, and optimization strategy

GROWTH

WORKSHOP

Growth workshops prioritize output and strategize next steps

Gate 3Business Strategy and Implementation

Defined short list of most easy to implement and high ROI opportunities

GROWTH

WORKSHOP

GATE

1

Identifying Company Specific Growth Opportunities Growth Innovation Funnel

29

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Lorena IslaResearch Manager

Direct: +52 55 5524 8624Email : lorena.isla@frost.com

Mauricio SoberónAccount Executive

Direct: +52 55 5524 7080Email : mauricio.soberon@frost.com