Analysis & Overview of Changing aspects of P&C Market’s current & future size, with respect to A-PAC’s Macro-economic situation.

1. PAITNS & COATINGS MARKET
ANALYSIS FOR A-PAC REGION
Analysis & Overview of Changing aspects of
P&C Market’s current & future size,
with respect to A-PAC’s Macro-economic situation
BY: Avneesh Kabra (Troy Corporation, Thailand)

2. 2
CONTENT
o Asia Pacific Economic Outlook
o Deco-Coating Value & Quantity analysis (country-wise
comparison)
o Overall Paints & Coating Market Evaluation
o Industrial Coatings Market Evaluation
o Decorative Coating Evaluation Details
o Conclusion

3. 3
Broad Geographic Distribution Network•Sales in Over 100 Countries
Manufacturing Facilities on 3 Continents
Corporate HQ
 Below table show the Economic Data of the selected APAC countries for 2015
 Economic situation of a Country indicates towards the Growth in P&C industry. It also help explains
per Capita Quantity & Type of coating used; possibly Geographic area & HDI have some impact too
Asia-Pacific Economic Outlook
Country
GDP
(USD BN)
GDP Growth
(%)
GDP per Capita
(USD BN)
Population
(No. Persons)
Government
expenditure - %
of GDP
Australia 1,224 2.5 50,962 24 37
China 10,983 6.9 7,990 1,375 32
Hong Kong 310 2.4 42,390 7 18
India 2,091 7.3 1,617 1,293 28
Indonesia 859 4.8 3,362 255 17
Japan 4,123 0.5 32,486 127 39
Malaysia 1,377 2.6 27,195 51 21
New Zealand 296 5.0 9,557 31 25
Philippines 172 3.4 37,045 5 35
Singapore 292 5.8 2,858 102 19
South Korea 293 2.0 52,888 6 20
Taiwan 524 0.7 22,288 23 18
Thailand 395 2.8 5,742 69 22
Vietnam 191 6.7 2,088 92 29

4. 4
Asia-Pacific Economic Outlook
 Below chart show is weighted average data for Government expenditure, in a plot of GDP growth Vs.
GDP per Capita. Below data for the selected APAC countries is for the period of 2014-21
 Lower GDP per Capita suggests that Government Expenditure would have higher Infrastructure
spend as compared to welfare spend; which should in turn support high growth in P&C industry
Bubble size represents
Government Expenditure
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
0
2
4
6
8
0 10 20 30 40 50 60
AvgGDPGrowthRate(%)
GDP Per Capita (000’ USD)/Person
Government Expenditure: GDP Growth Vs. GDP/Person
GDP Per Person (`000 USD/Person)

5. 5
Deco-Coating Value by Country
 Data for 2012 has been taken from Frost & Sullivan, and projected for subsequent years using a
combination of actual Market input, GDP growth & Market correction factor (working details may be
provided on request)
 China & India are the two largest markets in APCS (base data for China Yr-2012 was corrected)
 APAC Deco-market size of USD 23Bn in 2016, is in-line with most research papers available online
Deco Market Breakup by Country
(value in $ Mn)
2012 2013 2014 2015 2016 % of total
Australia 955 983 1,013 1,021 1,051 5%
China 8,251 8,931 9,624 9,927 10,214 45%
Hong Kong 124 128 132 134 138 1%
India 3,081 3,295 3,548 3,747 3,960 17%
Indonesia 849 906 960 1,002 1,061 5%
Japan 1,953 1,986 1,985 1,987 1,999 9%
Malaysia 419 427 457 471 496 2%
New Zealand 167 181 187 191 196 1%
Philippines 665 703 755 794 851 4%
Singapore 133 138 143 145 148 1%
South Korea 903 954 992 1,000 1,032 4%
Taiwan 272 279 292 294 299 1%
Thailand 668 696 710 735 769 3%
Vietnam 564 600 644 682 734 3%
Total Deco Market 19,004 20,206 21,444 22,129 22,946 100%

6. 6
Deco-Coating Quantity by Country
 Data for 2012 has been taken from Frost & Sullivan, and projected for subsequent years using a
combination of actual Market input, GDP growth & Market correction factor (working details may be
provided on request)
 It is observed that the APAC market share for developing economies such as India, Indonesia & China
increase significantly as compared to market size in terms of Value (for developed economies the
trend is opposite)Deco Coating Breakup by Country
(Qty in '000 MT)
2012 2013 2014 2015 2016 % of total
Australia 137 141 145 147 151 1%
China 4,646 5,029 5,419 5,590 5,751 48%
Hong Kong 27 28 29 30 30 0%
India 2,492 2,664 2,869 2,967 3,203 27%
Indonesia 666 711 754 786 833 7%
Japan 472 480 479 480 483 4%
Malaysia 191 195 209 215 226 2%
New Zealand 20 22 23 23 24 0%
Philippines 202 213 229 241 258 2%
Singapore 43 44 46 46 47 0%
South Korea 244 258 268 270 279 2%
Taiwan 130 133 140 140 143 1%
Thailand 210 219 223 231 242 2%
Vietnam 200 213 228 242 261 2%
Total Deco Coating Market 9,680 10,350 11,062 11,408 11,929 100%

7. 7
Decorative & Industrial Coating Market Evaluation
 Industrial coating market value is almost 2.5 times of Deco coatings, where as their quantities are
somewhat comparable; suggesting much higher cost per kg for Industrial coatings (focus: Additives)
 In the below table & going forward in the presentation, Industrial coating = Total - Deco
Deco Coating Breakup by Country
(Qty in '000 MT)
Decorative Coatings Industrial Coating
Value
(Mn USD)
Quantity
(000' MT)
Cost per Kg
(USD/Kg)
Value
(Mn USD)
Quantity
(000' MT)
Cost per Kg
(USD/Kg)
Australia 1,005 144 7.0 737 109 6.8
China 9,390 5,287 1.8 34,967 8,460 4.1
Hong Kong 131 29 4.5 72 16 4.5
India 3,511 2,839 1.2 1,438 504 2.9
Indonesia 955 750 1.3 692 197 3.5
Japan 1,982 479 4.1 5,244 944 5.6
Malaysia 454 207 2.2 394 95 4.1
New Zealand 184 22 8.2 100 16 6.3
Philippines 754 228 3.3 140 35 4.0
Singapore 142 45 3.1 234 48 4.9
South Korea 976 264 3.7 3,338 752 4.4
Taiwan 287 137 2.1 757 220 3.4
Thailand 716 225 3.2 1,034 332 3.1
Vietnam 645 229 2.8 564 118 4.8
Total Coating Market 21,130 10,886 1.9 49,712 11,845 4.2

8. 8
P&C Market Evaluation
 Developing countries of SEA, India & China should experience faster growth due to untapped market
potential; India in particular should experience significant growth
 Though Japan is usually considered the highest end market in Asia, data suggests that South Korea &
Australia are high-value market to be explored for high-profit and learning
Bubble size represents
Market-size
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Taiwan
ThailandVietnam
-
20
40
60
80
100
PerCapitaCoatingValue
(USD/Person)
Country (or Human) Development Index
Coatings: Per Capita Vs. HDI (and Market-size)

9. 9
P&C Market Evaluation
 Below chart shows the P&C Market breakup by Coating quantity used per person Vs. Coating Cost.
 Overall we can see a co-relation between Coating quantity used per person and Coating cost per
person in each Country; this should indicate towards how developed is the Market/Country
 Coating costs should typically point towards the Type & Quality of coating (this parameter shows a low-
to-moderate co-relation with HDI of previous chart)
Bubble size represents
Market-size
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
-
5
10
15
20
- 2 4 6 8
CoatingQtyperCapita
(Kg/Person)
Coating Cost per Quantity (USD/Kg)
Coating Market: Qty/Person Vs. Cost/Qty

10. 10
Deco-Coating Market Evaluation
Bubble size represents
Market-size
 Below chart shows the Deco Market breakup by Coating quantity used per person Vs. Coating Cost.
 ANZ uses the highest cost Deco-coating in APAC, followed by Hong Kong, Japan & South Korea
 Singapore’s usage of deco-coating per person is the highest (followed by Malaysia); also, Singapore
average coating cost suggests: use of wide range of coating type, & use multi-coat (need’s validation)
Australia
China Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
-
2
4
6
8
- 2 4 6 8
Deco-CoatingQtyperCapita
(Kg/Person)
Deco-Coating Cost per unit (USD/Kg)
Deco-Coating Market: Qty/Person Vs. Cost per Qty

11. 11
Deco-Coating Market Evaluation
 ANZ leads the APAC group in the most spent in Deco-coating per person; followed by Singapore, South
Korea & Japan (neglecting Hong Kong, Taiwan, & Malaysia for now)
 Decorative coating market in developing SEA countries, India & China (to a large extend) should
develop further with economic growth in these region (which otherwise remain price sensitive)
Bubble size represents
Market-size
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
0
2
4
6
8
0 10 20 30 40
Deco-CoatingQtyPerCapital
(Kg/Person)
Deco-Coating Per Capita Value (USD/Person)
Deco-Coatings Market: Qty/Person Vs. Per Capita Value

12. 12
Industrial Coatings Market Evaluation
 Below chart shows the Industrial Coating Market breakup by Quantity per person Vs. Coating Cost.
 South Korea has the highest Industrial Coating usage quantity in APAC region
 Japan & China are the two leaders in terms of market potential, with Japan leading the group in terms of
sophistication (considering the high price of coatings; ANZ can be ignored due to low market share)
Bubble size represents
Market-size
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia New Zealand
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
-
5
10
15
- 2 4 6 8
IndustrialCoatingQtyperCapita
(Kg/Person)
Industrial Coating Cost per Quantity (USD/Kg)
Industrial Coating Market: Qty/Person Vs. Cost/Qty

13. 13
 ANZ, Japan & South Korea Market usually offers higher margins for
P&C Industry, including related RM industries
 Matured market: Japan & ANZ for deco-coating
 Maturing market: South Korea for Industrial & Deco both
 For Industrial coating, South Korea has Automotive, Shipping, electronics, etc.
 Japan & Malaysia Deco-Coating Markets are experiencing various
changes and need to be targeted for specific segments
 Japan’s Industrial coating data is in line with expectation – large market size &
advanced tech
 India, Indonesia & Vietnam are possible hubs for future investments,
expected to yield high growth (but medium-to-low end coating
quality/technology); specially on account of High GDP growth
projections, rising middle class income & increase Government spent
on Infrastructure
 China remains the dominant market in Asia for current & future
exploitation in both Deco & Industrial market segments
 SEA countries are diverse and growing. Companies will need to
Conclusion

14. 14
Thank You