COMPETITORS ITALY LUBRICANTS May 2014



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COMPETITORS ITALY LUBRICANTS May 2014 INTRODUCTION TO METHODOLOGY Databank's methodology for Competitors reports begins with a careful screening to identify the main organisations that are representative of a given sector. Several one-to-one interviews are then conducted with the selected organisations. Questionnaires are sent to all the leading companies on an annual basis. The information collected is then verified by an expert in the particular sector using a system of counterchecks to guarantee that the information is entirely reliable and consistent. The process is then completed using Cerved Group's proprietary information about Italian enterprises. All Competitors reports also include details concerning the strategies and performances of the leading companies in each sector. Wherever no specific source is indicated, the information published in these reports can be assumed to have been taken from Cerved Group's proprietary information bank. Coverage of any sector in Competitors products may be used in company presentations or in training courses on the subject.

SECTOR DESCRIPTION Scope Product technology: Blending of a base oil (mineral, vegetable or synthetic) with chemical additives (e.g. antioxidants, antifoaming agents, detergents, etc.) to enhance certain properties and/or give it new particular properties. Function: reduce the friction caused by two moving surfaces rubbing against each other by forming a thin fluid or semi-fluid layer. Client categories: (a) industrial users, served either directly or indirectly through specialty distributors; this category can be subdivided into vehicle manufacturers (which use lubricants for both the production process and for first fills of mechanical components subject to friction) and other manufacturers (to reduce friction in machinery used in the various production phases); (b) distributors that sell to final users, including fuel distributors, auto repair shops, wholesalers, supermarkets and other large chain retailers; (c) fleet managers, such as car hire companies, public transport companies and armed forces - these clients are served directly by producers. Segments Two broad business areas can be identified within the sector. There are clear differences between the two in terms of critical success factors, competitive context and modes of presence. Automotive Lubricants for the automotive sector can be segmented based on the specific components for which they are used: 2-stroke motor oil 4-stroke motor oil diesel motor oil fluids for gears, transmissions and suspensions grease for automobiles Lubricants for the automotive industry may be marketed through: fuel distribution networks (petrol service stations and kiosks); or the "off-network" channel, which includes wholesale distribution to auto repair shops, garages and large retail chains, as well as direct sales to large customers such as public and private transport companies, government agencies, group purchasing organisations, and automobile manufacturers (for factory fills). Lubricants for the maritime industry, known as bunkering products, constitute a distinct segment due to the distribution methods and terms of sale. Bunkering products are sold exclusively at ports through distribution agreements between oil companies and shipping companies (both Italian and foreign) and are exempt from excise tax. Industrial Lubricants for industrial applications are classified in such a way that different products in terms of chemical and physical properties can be contained in the same category, but within each category all products share

the same fundamental requirements (such as viscosity level, pour point and thermal stability) that distinguish them from other categories and determine their field of application. EuropaLub, the European association that unites national lubricant industry associations (including Italian associations Unione Petrolifera and Federchimica-GAIL) has established the following segmentation for lubricant oils that has been adopted by all EU member states: oils for metalworking; highly refined oils; processing oils; gear and transmission oils; other oils; industrial greases. The sector analysed in this report also includes: greases composed of lubricating mineral oil mixed with soap (containing calcium, sodium, potassium and/or other metals); products with similar properties but not used for lubrication, e.g. heat transfer fluid, heat removal fluid and transmission fluid. On the other hand, it does not include base oils, which are considered raw materials for lubricants, even though in some fields of application these base oils may be used in the same manner as lubricants.

LIST OF COMPANIES ANALYSED API ANONIMA PETROLI ITALIANA S.P.A. BELLINI S.R.L. BP ITALIA S.P.A. COMPAGNIA ITALIANA LUBRIFICANTI S.P.A. CONQORD OIL S.R.L. ENI S.P.A. ESSO ITALIANA S.R.L. FUCHS LUBRIFICANTI S.P.A. GAZPROMNEFT LUBRICANTS ITALIA S.P.A. HOUGHTON ITALIA S.P.A. I.G.L.O.M. ITALIA S.P.A. LUBRA S.P.A. LUBRIMETAL S.P.A. LUBRITALIA S.P.A. MOTUL ITALIA S.R.L. NOVASTILMOIL S.P.A. NYNAS S.R.L. OLEOTECNICA S.P.A. PAKELO MOTOR OIL S.R.L. PETRONAS LUBRICANTS ITALY S.P.A. RA.M.OIL RAFFINERIA MERIDIONALE OLII LUBRIFICANTI S.P.A. REPSOL ITALIA S.P.A. RILUB S.P.A. SHELL ITALIA S.P.A. SIRO S.P.A. SOCIETA' INTERNAZIONALE LUBRIFICANTI S.P.A. TAMOIL ITALIA S.P.A. TOTALERG S.P.A. VISCOL S.P.A. VISCOLUBE S.R.L.

CONTENTS LIST OF COMPANIES ANALYSED 1. INTRODUCTION TO METHODOLOGY 2. SECTOR DESCRIPTION 2.1. Scope 2.2. Segments 3. EXECUTIVE SUMMARY 3.1. Key sector data 3.2. Supply and demand trends 3.3. Market leaders 3.4. Business strategies 4. SECTOR ENVIRONMENT 4.1. Sector data 4.2. Competitive forces 4.3. Notable recent events and developments 5. DEMAND ANALYSIS 6. SUPPLY ANALYSIS 6.1. Key characteristics 6.2. Sector financials 7. COMPETITIVE SCENARIO 7.1. Types of operators 7.2. Ranking of companies 7.3. Competitive performances by segment 7.3.1. Market share 7.3.2. Share of production 7.3.3. Share of export 8. STRATEGIES OBSERVED 8.1. Strategic map of operators 8.2. Winning strategies 9. OPPORTUNITIES AND THREATS CONNECTED PRODUCTS AND SERVICES CONTACT COPYRIGHT