Wall came down [Nov. 1989]

Transcription

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2 Wall came down [Nov. 1989] A marketwith100 million consumers opened up

3 How did the paint market do? What chances lie still ahead? A view from inside

4 Moderator Jan van der Meulen

5 Company: Rembrandtin Represented by Hubert Culik 1. Active in C+E Europe with * sales of paint since the 1960s * currently no paint manufacturing in C+E Europe 2. % of business in C+E Europe: 35% * W-EU: 45% * Oversea: 20%

6 3. Main paint sectors your company serves in C+E Europe: * Heavy duty corrosion protection * Railway Coatings * Road Marking * Core-Plate Varnishes * High-heat resistant coatings * Industrial Coatings

7 Company: Barvy a Laky Teluria Represented by Mr Jakub Noll 1. Active in C+E Europe withdiy and industrial SB and WB paints and varnishes. * sales of paint since 1910 * paint manufacturing since % of business in C+E Europe:99 % * W-EU:1 %

8 3. Main paint sectors your company serves in C+E EU: * DIY WB and SB paints and varnishes * SB for industrial use * Special alkyd resins and insulating varnishes

9 Company: Tikkurila Group Represented by Erkki Järvinen 1. Active in C+E Europe with * sales of paint since1993 * paint manufacturing since % of business in C+E Europe: 19 % * W-EU: 45 %

10 3. Main paint sectors your company serves in C+E EU: * Decorative paints * Industrial coatings for metal and wood sector

11 Company: PPG Industries Represented by J.M. Greindl PPG has been active in C+E Europe since the 1990s Organic growth: In high end segments of the Deco, PMC, Industrial sectors Licence agreements(oem) Growth through partnerships: Automotive OEM JV with Helios (2001)

12 Company: PPG Industries Successful stream of acquisitions Hungary - Trilak acquisition 60% share (1992) 40% share (2004) Poland - Polifarb acquisition 66% share (1999) 33% share (2005) Dyrup Poland acquisition incl. Malfarb 100% (2012) Czech R. - Primalex acquisition 100% share (2004) Triga (distributor) acquisition 80% share (2004), 20% share (2008) Balakryl (brand only) 2009 Slovak - Primalex 2004 HCH and OPARM (distributors) acquisition 100% share (2007, 2008) Romania Trilak Romania (distributor) 100% (2003)

13 % of 2012 CEE sales of Total Europe: 20% Main paint sectors your company serves in C+E EU: Architectural: Sales, distribution, production and labs (esp Poland, Hungary, Czech Repulic, Slovakia with associated store network) Refinish: Sales& Distribution Network Automotive OEM: Sales, Production and Technical service hub Industrial: Sales, Production and Labs Packaging: Sales, Production PMC: Sales, Production Aerospace: Sales

14 Questions on the past 1. Based on what kind of expectations did your company move into C+E EU?

15 2. How did you grow your business in C+E EU? Partners, acquisitions, organically?

16 3. Did your company have to change or adapt certain of their business practices in this market?

17 4. What would you consider as highly important in the success of your company in this region?

18 Questions on the future 5. How would you rate the expectations of the C+E EU market until 2020?

19 4. Statement Although economic situation and business environment have remained challenging after the financial crisis, we can still identify pockets of potential growth in the CEE coatings market While Poland, the Czech Republic and Bulgaria have developed well for us, there are markets which stay very difficult. Hungary and Romania for example fell short of the general expectations.

20 4. Statement The goal of Barvy a Laky Teluria as a genuine Czech paint and coatings manufacturer is to maintain the view of a midsize company that adapts well to a variety of market requirements.

21 4. Statement CEE offers an interesting, challenging and rewarding growth option for Tikkurila. The countries are quite different but having been there from early 90's, we have learnt, seen different eras and economic cycles and are very committed to leveraging our position in these markets.

22 4. Statement At PPG, we are convinced that these markets will continue to develop faster than Western Europe and provide opportunities for all our businesses We see that our customers continue to invest in these regions. As a global player, we will continue to move were they are The regionprovides competitive advantages to serve our businessesacrossemea andrepresents a great source of talents that we leverage to grow our business CEE is a strategic focus area

23 6. What do you consider will be the main drivers? Any different from W-EU?

24 7. What is your company foreseeing to further strengthening its presence in C+E EU?

25 CONCLUSIONS