1 The World of Epoxy Adhesives TRFA Annual Meeting Philadelphia PA November 11, 2003 David P. Nick...

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The World of Epoxy Adhesives

TRFA Annual MeetingPhiladelphia PA

November 11, 2003

David P. NickDPNA International Inc.

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Global FormulatedAdhesive Market Demand

North America

34%

Latin America2%

West & East Europe

34%

Asia Pacific27%

Rest of World3%

2002 Global Formulated Adhesive Market Demand:18.0 billion pounds ♦ $24.5 billion ♦ AGR 3.0%

Source: DPNA International Inc.

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Global Formulated AdhesiveResin Demand

Acrylic17%

Epoxy4%

Polyurethane3%

Rubber17%

Vinyl28%

Others31%

2002 Global Formulated Adhesive Market Demand:18.0 billion pounds ♦ $24.5 billion ♦ AGR 3.0%


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Global Liquid EpoxyResin Production

Adhesives31%

Coatings41%

Other28%

2002 Total Liquid Epoxy Resin Demand:2.14 billion pounds ♦ 970 thousand metric tons ♦ $2.0 billion ♦ AGR 4%-5%


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Major Epoxy Resin Producers

Dow Chemical Resolution Performance Products Vantico Nan Ya Chang Chun Others

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Major AdhesiveEnd Use Segments

North America

West Europe

Latin America Japan

China/ Other

Construction

Assembly

Consumer/DIY

Transportation

Mature Source: DPNA International Inc.

Growth

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Major North AmericaEpoxy End Use Segments

Mature

Construction

DIY

Growth Assembly

Large Market Small Market

Transportation

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New Technical Developments Affecting Epoxy Demand

Toughened Epoxies High Performance Underwater Curing < 5 Minute RT Curing One Pack Systems Hybrid Polymers Dispensing Equipment Curing Systems Expanding Assembly Applications

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Global Assembly Market

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Global Fastening Market-2002

Other2%

Bolts & Nuts30%

Crimps5%

Adhesives4%

Tabs4%

Screws/Nails15%

Weld/Braze28%

Rivets12%

Total Market Value: $802 Billion


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Assembly Market

0%

1%

2%

3%

4%

5%

Electronics Medical Sub-Assemblies


PercentGrowth Rate

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Comparison of Competing Adhesives

(Million Pounds)


0

100

200

300

400

500

600

700

800

Epoxy Poly-urethane

Cyano-acrylates

Mod. SGAAcrylics

Silicone M-SPolymer

2002

2005

3,0% AGR

4,0% AGR

4,0% AGR

5,0% AGR

3,0% AGR

7,0% AGR

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Epoxy AdhesiveRegional Growth Comparison


PercentGrowth Rate

NorthAmerica

WestEurope

Asia-Pacific

China Japan Others

0%

1%

2%

3%

4%

5%

6%

7%

8%

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Global Epoxy Adhesive Market Driving Forces

Economic recession in the USA and Europe

Stagnant growth in Japan

Recent price increases

Fluctuating oil prices

War in Iraq

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Global Epoxy Adhesive Market Driving Forces

(Continued)

Continued growth in China

Environmental and health concerns (Europe/Japan)

Consolidation and changing suppliers

Customer and market relocation

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Macro Trends and Issues

E-Commerce

Rising Energy Costs

Shrinking Profits

Backward Facing Support

Partnering for Success

Consolidation/Globalization

Niche Marketing

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New Market Trendsand Opportunities

Fastening options

Changing substrates

New polymers

Market dislocations

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Future Outlook

Growth will come from new bonding applications and polymer developments

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David P. Nick

President

DPNA International, Inc.

126 Allendale Circle

Troutman, NC - USA

Tel (704) 528-3985 Fax (704) 528-3986

Email: [email protected]

Website: www.dpna-international.com

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