A presentation by Mr. Michael Knoblauch, President of DVUV in Cleveland, OH describing the advantages & cost benefits of UV-Curable powder coatings.

1. DECORATIVE SURFACES CONFERENCE
OCTOBER 17-19, 2012
LOEWS PORTOFINO BAY HOTEL
ORLANDO, FL
MICHAEL KNOBLAUCH
DVUV LLC
Advantages and Cost Analysis of
UV-Curable Powder Coatings

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Global Market & Industry Overview
About UV-Curable Powder Coating
Performance Characteristics
Operational Efficiencies & Cost Analysis
Sustainability
Future of UV Powder
Conclusion & Questions
Presentation
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3. GLOBAL MARKET &
INDUSTRY OVERVIEW
UV-Curable Powder Coating
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 Global population 2012 6 Billion - 2030 7.4 billion1
 3 Billion more middle class consumers by 20301
 2012 global motor vehicle production – 51.7 million units2
 2030 estimated global motor vehicle production – 80.6 million
units3
 Energy demand to increase by 420 quadrillion BTUs 2010 - 20301
 Convergence of sources and diversity of energy mix
fossil – biofuel – renewables – nuclear4
Global Market Perspective
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 Global policies to reduce carbon emissions
 By 2030 of a 42% reduction of carbon as a % of GDP
 By 2030 stabilizing carbon at 450ppm4
 Global growth 2012 – 2016 advanced economies – 1.1% to 3.0%5
 Global growth 2017 – 2025 advanced economies – 1.3% to 2.6%5
 Global growth 2012 – 2016 developing economies – 3.6% to 6.5%5
 Global growth 2017 – 2025 developing economies – 2.8% to 4.3%5
1. McKinsey Global Institute : Resource Revolution: Meeting the world’s energy, materials, food and water needs. 2011
2. Robert W. Baird & Co.: Global Auto & Truck Markets – March 2012
3. Autelligence: Megatrends in the global auto industry to 2030: 2010
4. BP Energy Outlook 2030: 2011
5. www.conference –board.org/data/globaloutlook.cfm
Global Market Perspective
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 Paints and coatings market*
 Global coatings market to reach 8.7 billion gallons and US$107 billion by
2017
 Solventborne liquid coatings 75 – 80% of market
 Global powder coating market US$5.4 billion
 UV-curable coating market*
 Consumption of UV- curable coatings from 2009-2017 will grow at CAGR of
6.65%
 Producing by 2017 - 1210.46 metric tons of product.
* Global Industry Analysts, Inc.
•
Coating Industry Today
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UV-Curable coating technology is increasingly being seen as the future
technology in the area of industrial coatings. The technology represents one of
the rapidly growing segments in the coatings industry, and is arguably
emerging as the answer to the rising environmental concerns and stringent
regulations. Several application related advantages come to serve the
technology that include absence of pot life issues, lower energy costs, fast cure
speed, and reduced environmental impact.
As such, one-component UV-Curable coating ranks among the fastest coating
chemistries available in the present context. Curing of one-component UV-
Curable coating takes few seconds to minutes, which makes it more ideal for
use in applications that require faster turnaround time.
Global Industry Analysts, Inc. March 2012
Coating Industry Tomorrow
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8. ABOUT UV-CURABLE
POWDER COATING
UV-Curable Powder Coating
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 Thermoset or thermally cured powder coatings were
developed in the 1960s as functional coatings and have
been adapted and developed for a variety of applications
 Powder coatings give superior wear resistance, barrier properties,
and cost effectiveness
 Products include home appliances, industrial equipment, automotive
primer, top coat
 Powder coatings have no volatile organic compounds (VOC)or
hazardous air particulates (HAPs).
 Metal substrates are ideal for electrostatic powder application
 Thermal cure cycle for powder coating ranges from 20 to 60 minutes
depending on chemistry and part geometry
Powder Coating
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 1998 – 2000s: 1st commercial applications in U.S.
 Automotive radiator
 Industrial motor
 2001: Decorative Veneer built the 1st UV-curable powder coating
facility for MDF in Plainwell, MI USA, followed by RADEX in London,
Ontario Canada
 Application facilities built in Europe for MDF and PVC cushion floor
 2005: Decorative Veneer system moved to Cleveland, OH and DVUV
formed
 Key markets: Retail – Healthcare – Education & Office furniture – specialty applications
 2006: Keyland Polymer, Ltd. formed to develop, formulate, and
manufacture UV-curable powder coatings for DVUV and other
customers
History of UV-Curable Powder Coating
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 The differentiating characteristic of UV-curable powder
coating is the separation of melt & flow from cure
UV Powder Coating
Melt & Flow
1 min UV Cure
(secs)
Electrostatic
Powder
Deposition Finished
Product
Substrate
Pretreatment
Melt, Flow & Cure
10-30 mins
Low Temperature - 93C
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Reduced Manufacturing Footprint
Typical thermal powder plant size
>15,000 sq ft
Typical UV
powder plant
size
2,050 sq ft

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 A UV powder application
system
Parts are loaded and
prepared
Pretreatment
Electrostatic powder
application
Flow/Melt oven
UV Cure oven
UV Powder Application System
Powder Coating
Application
Environmental
Room
Unload
Area
Load
Area
Pretreatment
Melt
Oven
UV Cure
Oven
Prep
200 foot line – cycle 20 minutes

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Resin – Unsaturated 60 – 95 wt %
Photo Initiator 0.5 – 3.0 wt %
Surface and Depth
Flow Control Agent 0.5 – 2.0 wt %
Degassing 0.5 – 4.0 wt %
Pigments 0.1 – 20 wt %
Filler/Extender 0 – 35 wt %
Additives 0.25 – 1 wt %
UV Powder Chemical Composition
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 Intensity - Power or density of UV energy
 Typical 1000 - 3000 mW/cm2 UV V
 Ideal conditions - high intensity over short time
 Exposure - Total energy received at coating surface
 Typical 1000 - 3000 mJ/cm2 UV V
 Intensity (mW/cm2 ) X time (secs) = Exposure (mJ/cm2)
 UV Spectrum required for different applications
 Clear/Tints -Mercury
 Opaque - Iron additive and Gallium additive Mercury
UV Curing Parameters
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Long Wave
Short Wave
In depth
cure
Surface
cure

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 MDF or Medium Density Fiberboard
 Made from wood fibers, resins & additives which are bonded under heat and
pressure.
 Excellent substrate for UV powder coating
 Dense & flat
 Low porosity
 Homogenous
Powder Coating MDF
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 Heating the board draws moisture to the surface, making it
conductive for electrostatic powder application.
 2 Types of Application
Powder Coating MDF
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Corona Spray
 Powder passes through highly charged & ionized
corona field, powder picks up negative charge
 High transfer efficiency and applies quickly
Tribo Charging
 Powder develops a static charge due to friction
 Provides better penetration into recesses
 Slower application and lower transfer efficiency

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 Powder Coating Advantages
 Easier to blend, process and control during
application
 Easily to clean up with an industrial vacuum
 Powder coatings can be reclaimed and
re-sprayed yielding up to 98% material
utilization or sprayed to waste
 Color changes do not require any
purging materials or solvents and can be
accomplished in minutes
Application Process Advantages
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Finishing at the Speed of LightFinishing at the Speed of Light
Finishes and Color Matching
Metallic
Multi- Component
OpaqueRAL – Pantone – PMS systems
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Finished Products
Interactive Retail Display
Healthcare Component
POP Display
Educational Lectern
Architectural Element

21. PERFORMANCE
CHARACTERISTICS
UV-Curable Powder Coating
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Test Standard Category Test Description UV-W06-SS2 UV-W06A-SS2
ASTM D4138
Method A
Film Thickness Tooke Gauge - Destructive 3-4 mils 3-5 mils
ASTM D4060 Abrasion Resistance Taber Abrasion Test - CS-17 Wheel 500gm,
500 cycles
32.4 mg loss 29.1 mg loss
ASTM D3363-05 Scratch Resistance
– Pencil Hardness
Hardness – Wolff-Wilborn
300 gm load, 45° / no scratch
2H 3H
ASTM D523 Gloss Measurement 60° NOVO-GLOSS meter 22-25 units 16-20 units
NEMA LD3-1995 Impact Resistance 224 g steel ball (1/2 lb) 1 ½” dia. No cracking at 55” No cracking at 35”
NEMA LD3
- 2005 3.4
Cleanability / Stain
Resistance
Reagents:
10% citric acid, vegetable oil, coffee, milk,
catsup, mustard, vinegar, red lipstick, grape
juice, black permanent marker, water washable
black marker, and # 2 pencil
No permanent
effect on sample
surface
No permanent
effect on sample
surface
Cure MEK swap - 50 double rubs No softening or color
loss
No softening or
color loss
NEMA LD3
- 2005 3.4
Hot water Pool of boiling water placed on surface, pot
placed in water for 20 minutes
No blistering No blistering
ASTM D3359
Method B
Adhesion Cross Hatch Adhesion – MDF must be present
on piece of coating removed
No loss of
adhesion
No loss of
adhesion
UV-Curable Powder for MDF Substrates
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 Test Duration – 24 hours
 Reagents uncovered for
duration of test
 Verification of visual inspection
of the treated surface with each
reagent shows no damage or
impaired surface results after
24 hour exposure
Chemical Resistance
Reagent Effect
Engine oil no effect
Gearbox oil no effect
Hydraulic oil no effect
Brake fluid Slight gloss loss
Antifreeze no effect
Cold cleaner no effect
Inert cleaner no effect
E95 no effect
Unleaded gas
Slight/moderate gloss loss
(a ring)
Diesel fuel no effect
Battery fluid no effect
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Technical Information and Testing
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Color Analysis
X Rite SP 62 Spectrophotometer
 Integrating d/8° sphere geometry
 4 Illuminants: daylight, cool white fluorescent,
TL84 triband fluorescent and incandescent
Visual Color Assessment
Light Booth
 5 Light sources: daylight, cool white fluorescent,
TL84 triband fluorescent, incandescent and
ultraviolet
 NIST traceable documentation
UV Lamp System
 300 W/in microwave UV lamp, D, H and V bulb
 600 W/in microwave UV lamp, V bulb
Coating Thickness Measurement
 ASTM D6132, Non Destructive, Ultrasonic Film
Build
 ASTM D4138, Method A, Destructive Tooke Film
Build Gauge
Abrasion Resistance
 ASTM D4060, Taber® Abraser 5130
Adhesion
 ASTM D3359 Method A & B
Surface Hardness
 ASTM D3363, Pencil Hardness Scratch &
Gouge
Impact Resistance
 NEMA LD3 – 1995, 3.8
Mandrel Bend
 ASTM D 522
Gloss Level
 ASTM D 523, NOVO-GLOSS™ Gloss Meter
Boiling Water Resistance
 NEMA LD3 – 2005, 3.4
Cleanability / Stainability Test
 NEMA LD3 – 2005, 3.4
Cure Analysis
 PCI Test Method #8, 50 MEK Double Rub Test
Texture Evaluation
 Tenibac Plaque

25. OPERATIONAL
EFFICIENCIES
&
COST ANALYSIS
UV-Curable Powder Coating
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Operational Efficiencies
0 10 20 30 40 50 60
Finish Time (min)
Liquid Coatings
Thermoset Powder
UV Powder
Part Cycle Time Anaylsis
Thermal Cure Coating Systems (Powder & Liquid)
vs. UV Powder Coatings
Coating Application
Melt & Flow
UV cure
Solvent Flash
Thermal Cure
Cooling
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 Fast
 Instant cure
 Completed parts in 20 minutes or less
 One coat
 Clean
 No harmful chemicals, monomers or additives
 Safe to use – no special safety gear
 Easy material handling and clean up
 Green
 Smallest carbon footprint of any coating material
 No VOC’s
 Waste recycling or repurposing
 No operating permits
UV Powder Finishing Advantages
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 Higher Quality Finished Products
 Reduces substrate thermal exposure
 Cross linked UV curing
 Design and formulate coatings that are product specific
 Lower Cost of Quality
 Higher throughput
 Reduced WIP
 Fewer defects
 Faster and Higher ROI
 Able to process more material in a shorter period of time
 Lower total applied cost compared to other finishing systems
UV Powder Process Benefits
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Material Cost & Productivity
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Material cost comparison
$/sqare foot - Liquid and UV
cured powder
Liquid 2 coat low
VOC
$0.2712
UV powder spray to
waste
$0.2940
UV powder spray to
reclaim
$0.2054
$-
$0.0500
$0.1000
$0.1500
$0.2000
$0.2500
$0.3000
$0.3500
Material Cost per Square
Foot of Surface Finished
Parts Produced per Day 8 hour Shift
Liquid 2 coat low VOC 388
UV-cure powder spray
to waste
1164
UV-cure powder spray
to reclaim
1164
0
200
400
600
800
1000
1200
1400
Parts Produced per Day

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Revenue and Operating Margin
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Operating margin data from www.nyu.stern.edu
Annual
revenue
Operatin
g margin
EBIT $
Operatin
g margin
EBIT %
Liquid 2 coat $907,621 $77,692 8.56%
UV-cure spray to waste $2,722,863 $233,077 8.56%
UV-cure spray to
reclaim
$2,722,863 $544,302 19.99%
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Revenue & Operating Margin
Liquid 2
coat
UV-cure
spray to
waste
UV-cure
spray to
reclaim
Total revenue/day $3,630 $10,891 $10,891
Total material/day $1,210 $3,995 $2,750
Gross margin/day =
R-C
$2,420 $6,897 $8,142
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Daily Revenue, Material
and Gross Margin

31. SUSTAINABILITY
UV-Curable Powder Coating
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Assumptions for this Life Cycle Assessment
Substrate MDF, 19 mm
Average Surface Area 0.5 m2, coated both sides
Coating TiO2
Pigment/Resin/Filler 20/60/20 for all (avg)
Solid Contents 100% all powders
50% for all 2-k systems
40% for waterborne UV
Layer Thickness 150 um (6 mils)
Curing Temperature Depending on System
Sanding Not factored
Utilization %
(Transfer Efficiency)
95% Powder
90% Waterborne UV
60% 2k solventborne and waterborne
Solvent Treatment Incineration
Durability, Functionality, End of Life No differentiation
Sustainability – Life Cycle Assessment
Collaboration with DSM Coating Resins, originally presented at 2011 Decorative Surface Conference Orlando, FL
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Sustainability
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 Coatings Life Cycle Assessment
Sustainability
Solid
Content
100% all powders
50% for all 2-k systems
40% for waterborne UV
Utilization %
(Transfer
Efficiency)
95% Powder
90% Waterborne UV
60% 2k solvent and waterborne
Assumptions
Substrate : MDF 0.75” Thick Coating both sides
Surface area – 5.4 sq ft
Pigment/Resin/Filler 20/60/20 for all (avg) TiO2
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 Solvent-based coatings have the highest environmental
footprint
 High CFP to produce and dispose solvents
 Waterborne paints (conventional and UV 100% solids) have
lower environmental impact
 UV-curable powder coatings have the lowest environmental
impact of coating materials
Sustainability – Findings
Coating Technology Impact on Carbon Footprint
Solventborne-2K Waterborne-UV UV Powder
Carbon Dioxide, CO2 (kg/m2) 0.96 / mil of coating 0.35 / mil of coating 0.21 / mil of coating
Typical Coating Thickness 5 mils 2 mils 2 mils
Coating Carbon Footprint (CO2) 4.8 kg/m2 0.7 kg/m2 0.41 kg/m2
10 x More
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36. FUTURE OF
UV POWDER
UV-Curable Powder Coating
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 Convergence of the macro market forces creates greater
opportunity for UV-curable powder coating
 Population growth and migration to cities
 Reduction of carbon consumption as a % of GDP & establishment of
carbon targets
 Continuing growth of transportation sector
 Continuing growth rates in emerging economies
 UV-curable powder coating opportunities
 Innovative chemistries and application technologies deliver more value
at lower cost
 Displacing existing finishing chemistries & application technologies
 Develop and penetrate new markets and material applications
Future of UV-Curable Powder Coating
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 The coatings market will grow at or above aggregate global GDP.
o The market offers better than average GPM and ROI opportunities to firms that bring
into the market innovative chemistries and coatings that meet market specific needs.
o Improved coating performance
o Demonstrably sustainable, economically viable and have a reduced carbon footprint
o Fast application time and fast cure response
 UV-Curable powder coatings are a viable but nascent finishing system.
o The productive and economic capability of UV-curable application technology is
clearly demonstrable and generates greater than market GPMs and higher ROIs.
o More resources need to be expanded to meet the significant market opportunities.
o UV-curable powder coating application technology and chemistry are poised to
capture a significant and profitable market share of the Global Coatings Industry.
Fast – Clean & Green™
Conclusion
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39. THANK YOU
&
QUESTIONS
UV-Curable Powder Coating
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40. M I C H A E L K N O B L A U C H
P R E S I D E N T
4 6 4 1 H I N C K L E Y I N D U S T R I A L P K Y
C L E V E L A N D , O H 4 4 1 0 9
2 1 6 - 7 4 1 - 5 5 1 1
M F K @ D V U V . C O M
W W W . D V U V . C O M
DVUV, LLC