CEE Market Development. Markets, Trends & Opportunities

Transcription

1 Summit, NJ, US London, UK San Francisco, CA, US Beijing, China New Delhi, India CEE Market Development Markets, Trends & Opportunities Prague, 26 th September 2013

2 Agenda IRL Overview Economic Development Market Metrics Growth Regions and Countries Key Trends and Opportunities

3 Global Reach 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 European HQ North American HQ Satellite Offices 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.

4 IRL Database IRL has recently completed its global coatings database and intends to update it as a live platform to monitor the industry. IRL Paints & Coatings Database 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 102 Countries Across: Asia-Pacific Middle East Africa Eastern Europe Western Europe Central Europe Latin America Central America & Caribbean Application Technology: Solvent-Based Water-Based Radiation-Curable 4

5 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. Market Entry & Expansion Business Model Analysis IRL is keen to leverage the data platform and dive deeper to help companies enter new markets and expand their activities and clients. Monitoring & Forecasting Due Diligence Benchmarking 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. Market Mapping Market Opportunity Analysis Strategy Exercises Customer Satisfaction

6 CEE Growth 15,0 10,0 Annual Gro owth (%) 5, , , ,0-15,0-20,0 Source: OECD

7 CEE Target Countries Billion $ Russian Federation Real GDP Turkey Poland 500 Hungary Czech Republic Slovak Republic Greece Slovenia 0 Estonia -8,0-6,0-4,0-2,0 0,0 2,0 4,0 Annual Growth 2012 (%)

8 Potential Paint Market Growth

9 Global Coatings Markets Paints & Coatings Consumption (Tonnes) North American market estimated to be around 6.4 million tonnes.

10 Global Coatings Market Growth Paints & Coatings Consumption (Tonnes) Region Growth Rate Africa 1,230,530 1,539, % Asia 19,053,780 25,133, % Caribbean 204, , % Central America 1,155,880 1,412, % Eastern Europe 4,453,380 5,656, % Middle East 2,019,400 2,498, % South America 2,982,072 3,934, % Western Europe 5,645,182 6,305, % Grand Total 36,744,729 46,725, % Eastern Europe is the star performer in Europe. Good growth of domestic markets and the shift of paint production from Western Europe has helped the market develop.

11 Coatings Usage Paints & Coatings Consumption by End-Use Industry in CEE, 2012 Plastic Coatings 1% Marine 1% Industrial Wood 8% Powder 4% Protective 5% General Industrial 16% Architectural 62% Automotive Refinish 1% Automotive OEM 2%

12 Resin Usage Vinyl/Styrene 25% Acrylic 23% Unsaturated Polyesters 4% Polyurethane 5% Others 9% Nitrocellulose 1% Epoxy 11% Alkyds 22% Total Central & Eastern European coatings market size in 2012 is estimated at 4,450,000 tonnes.

13 Market Sizes Paint & Coating Market Size, 2012 (Tonnes)

14 CEE Market Metrics Russian market demand and growth is driven mainly by bridge building and building and refurbishment of social housing. 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.

15 CEE Market Metrics Country Architectural Industrial Total BELARUS 78,400 52, ,890 CROATIA 26,300 9,480 35,780 CZECH REPUBLIC 100,600 77, ,830 HUNGARY 78,400 72, ,940 KAZAKHSTAN 102,000 30, ,940 LATVIA 9,000 3,780 12,780 LITHUANIA 12,700 9,180 21,880 POLAND 387, , ,700 ROMANIA 93,500 60, ,050 RUSSIA 903, ,100 1,544,200 TURKEY 451, , ,200 UKRAINE 195,100 46, ,310 Others 319, , ,880 Total 2,757,300 1,696,080 4,453,380

16 Drivers & Restraints Economic crisis Price pressure Alternative finishing technologies to paints More durable coatings (Forth Bridge) Alternative materials to metals Government construction projects Social housing programmes Building improvements and upgrades Population growth New technologies (better coatings) Sports Events (Sochi) Alternative energy

17 Per Capita Paint Consumption 18 Per Capita Paint Consumption, Kg g/head

18 Focus Countries Turkey Ideal to supply Asia and Europe Furniture coatings growing very fast Gas pipelines from Caspian into Europe Accession into EU 7.8% growth expected TSE (Turkish standards) into the CEN 10.2 kg/head Ukraine Russia Large infrastructure improvements Rail and bridges Sochi Growing automotive industry Renovation of housing blocks 10.3 kg/head Poland 80% market is decorative Stabilisation of energy supply Investments from EU Large industry (steel and mining) Furniture and industry now growing 5.8% growth expected 5.0 kg/head large growth potential No recession during 2008/2009 Large supply of paint from Germany 62K 3.1% growth expected High competition: 150+ paint companies 15.4 kg/head

19 Potential Paint Market Growth

20 CEE Coatings Market Analysis Strengths Good growth - Waterbourne Government projects have sustained demand Innovative market Allows manufacturers to differentiate their offering Intensifying trading relationships with Western European countries and growth in foreign investments into the Ukrainian economy Weaknesses WE is a mature market so export growth limited Lack of innovation and research institutions Increasing raw material costs Regulation Price pressure Consumers need educating about environmental issues of paint (solvents, pigments etc) Opportunities Government investment in infrastructure Population growth Social housing programmes New technologies (water-based and powder) New product development opportunities - Architectural Repair of old facilities, in heavy industry Utilisation the advantage of domestic products Cheapness SWOT 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 General economy dependency on the economic situations of trading partners. Growing competition with imported products

21 Thank You Robert Outram Associate Director +44 (0)