Industry Update

…….still at it

2013 Global Coatings Manufacturers

All Others >10,000

Akzo Nobel

PPG

Sherwin-Williams

Axalta

BASF

Valspar RPM

Nippon Kansai Jotun

Top 10 account for about 57% global share

8.3 Billion Gallons and approximately 104 Billion Dollars

Did you know: Giants are very slow to move

As a Team, you are faster, have better products and better relationships

Cooperation Together….

such a powerful tool….

…..definitely rewarding and most can’t survive without it.

Awesome Power

Hennessey Venom GT: 270 mph (435 km/h), 0-60 mph in 2.5 seconds, has a 7.0 liter LS7 Turbocharged V8 Twin Turbo V8 Engine producing 1244 hp, with a price tag of $1,000,000 and up. The Venom GT is the fastest car in the world when tested again on February 14th, 2014 at NASA runway in Florida. The track was only 3.22 miles long, thus limiting it top speed to 270 mph.

Chain

Pulling to start

A TOOL is device that aids in

accomplishing a task. POWER

TOOLS make it easier!

Who in here has an electronic device with them?

Let’s Talk about the power tools in this room

What happens when the internet is down?

These are things YOU can fix by moving, buying a new product or giving it life

Obsolete device? No charge? No reception?

Yikes!!!

Cooperation is a

Powerful Tool

Ilmenite is a black mineral found in igneous rocks as sedimentary deposits and in veins. It is the chief source of titanium. Composition: iron titanium oxide. Ore for Tio2.

Truffles or Ilmenite?

Oh yeah it’s not 2012, truffles are more expensive now

Tio2

What is really going on

The Global Tio2 Market can be split into 2 groups

The Big 5

R.O.W.

Demand by region: 2011-2013 Demand by region: 2013

Slide 32

• Asia-Pacific is the largest consuming region, and China surpassed the US in 2009 as the largest consuming country. China now consumes more TiO2 than any other individual region in the world, now at more than 25%.

• Growth during the last five years has been led by major emerging economies – most notably China, the emerging economies of Asia-Pacific (Indonesia, Thailand, Vietnam, Philippines, etc), Brazil, Turkey, Russia, and India.

• The mature economies of Western Europe and North America have remained flat or declined slightly in consumption. The sovereign debt crisis in Europe and the resulting reduced spending and high unemployment levels have significantly eroded demand in the region.

Confidential Slides for Guild CPO

6.0

5.0

4.0

3.0

2.0

1.0

0.0

-2.4%

2013

5.34

0.88 0.890.81

2011 2012

6%5% 7%

4%

27%

15%20%

17%

million tonnes

Western EuropeNorth AmericaMiddle East & AfricaCentral EuropeCentral & South AmericaJapanChinaAsia-Pacific ex C&J

© TZMI - NOT FOR REPRODUCTION

© TZMI 2013 NOT FOR REPRODUCTION

Compliments of TZMI

Production by producer: 2013 Total 2013 production = 5.13 million tonnes

Slide 33

• 2013 production declined y/y to de-stock producer-held inventories. 2014 on tap to increase substantially – probably 100 kt short of the expected demand level (5.6 million tonnes).

• Chinese producers cut production rates in 2H 2013 due to poor profitability and low demand environment. 2014 operating rates for Chinese higher but still below 2011 levels. Some sites idled due to low profitability; some may be down permanently.

Key events • ISK’s Jurong (Singapore) plant shut down in July 2013. • Huntsman/Rockwood combination announced in late 2013; to

materialize by end Q3 2014. • DuPont set to spin off TiO2 business in 2015. • Numerous Chinese sites idled – some will become permanent

shutdown.

Production by producer, technology: 2013

Confidential Slides for Guild CPO

Producer 2012 Production

‘000 tonnes 2013 Production

‘000 tonnes YOY Change

(%) Chinese 1.7 1.5 -10.3 DuPont 0.9 0.9 1.6 Cristal Global 0.5 0.6 7.9 Kronos 0.5 0.5 2.8 Huntsman 0.4 0.4 2.8 Tronox 0.3 0.4 17 Sachtleben 0.2 0.3 45.6 ISK 0.1 0.2 -9.4 Others 0.5 0.5 -15.2 Total ** 5.2 5.1 -1.0

8%

9%2%

5%7%

9%

11%

18%29%

HuntsmanTronox

OthersISKSachtleben

KronosCristal GlobalDuPontChinese

© TZMI - NOT FOR REPRODUCTION

0 400 800 1,200 1,600 2,000

Others

ISK

Sachtleben

Tronox

Huntsman

Kronos

Cristal

DuPont

China

SulfateChloride

‘000 tonnes

© TZMI - NOT FOR REPRODUCTION

Will be second largest Tio2 producer with acquisition • Significant Pigment Portfolio • Will not likely spin off as 80% Huntsman ownership is required to use as part of consolidated earnings • Guild will see benefit through consolidation of Chloride and Sulfate businesses. Likely New Sulfate Grade to enter NA market in a significant way. • Look for P/L Pigments

The worlds largest Tio2 producer is for sale.

Has 10 billion in tax credits. If they merge with a buyer that can take advantage of the Reverse Morris Trust – Which it is believed DuPont or investment group can take advantage of the 10 billion tax credits, then it makes sense they will be acquired.

4 of the 5 are right around 50 days.

Kronos is still well above that; hence some of the deals.

Are we to the point where the Big 5 will leave commodity business to the Chinese?

How about the issue of Country, State or Private ownership in China?

Private money is drying up, partially because of new manufacturing and environmental regulations.

There are currently 70 plus producers in China, could that number be cut in half in 5 years? Without cash and with more strict manufacturing guidelines, many will just go out of business.

Survival of the fittest – Investments are being made in technology and equipment by SW, AKZO and PPG in some of the best Chinese producers. Very good quality products in next 12 – 14 months.

http://rds.yahoo.com/_ylt=A9G_bDlFfm5MpigAAA2jzbkF/SIG=1379l1vj4/EXP=1282396101/**http:/image.europeancarweb.com/f/18587505/epcp_0906_05_z+china_map+graphic.jpg�

Shortage of tio2…….

Cleveland doesn’t have one anymore….

2011 Guild CPO Presentation

and in all likelihood, neither will you

Every accomplishment starts with a decision to try

2014 Guild RMC Report

Liquid Trivia Question #1:

Guild CPO currently has 3 categories of Buying Programs: Standard Rebate Programs, __________ & __________.

Cooperating well

together can take us

to great new heights individually

Liquid Trivia Question #2:

Which type of buying program currently drives the most value to members? _____________

To be successful Guild CPO needs a cohesive foundation, YOU

Once cohesive, teamwork divides the task and multiplies the success. Tools are important to lighten the work load.

Your Guild CPO Tool Box

Guild CPO Tool Box:

Profitable Sustainable

Period Buy (PB) Standard Rebate

Program (SP)

Group Buy (GB)

Private Label (PL)

Only YOU can determine the amount of savings for your company

Membership Level One – AKA “S.P.”

Requirements: Open the tool box. Only use what you can see on the first layer. Guild notifies suppliers for rebates. Little involvement necessary from member.

Takeaways: Use Guild as a pulse on the market trends and pricing. Rebates are just fine! Some members at this level are not interested in the power tools in the bottom of the box.

Tool Box Tray Level “Standard Rebate

Program”

Guild Tools are designed to save you money

The deeper you dig into the tool box the more money you save

Group Buy (G.P.)

The Value of Guild CPO’s Rebates & Group Buys

-

10.0

20.0

30.0

40.0

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

USD

in M

illio

ns

Year

RebatesGroup Buys

P/L Tio2

It is an easy assumption that Guild CPO negotiates your Tio2 price with approximately 10% of the volume that is controlled by an SW Purchase

Order…..yet we remain just pennies away

http://www.guildcpo.com/�

$ 1.91/lb. or 3180 € MT

$ 1.41 or 2350 € MT

These chart movements correlate very close to the Guild CPO Price with an invoice price differential of 2% - 4%. Guild dropped closer to 29% during the same period. Clearly we led the first drop in 2013 and the two in 2014.

North America:

Chloride $1.32* – $1.60 Chinese Sulfate $1.08 – $1.25

EU:

Chloride & Sulfate 2000–2300 Euro MT Or $1.19 – $1.37 Chinese Sulfate $1.08 – $1.25

* If this is a blended cost we are very close to the same. If 100% chloride then they have a few pennies.

Private Label Program (P.L.)

Why P.L.?

Benefits of P.L.: • New innovation or old standby products from suppliers • You can launch new products using latest technology • Aggregate volume to common materials • We can move together using each others test results • Combine technical resources from members to meet

regulations • Once we have significant share, we can move at once to toll • Everyone sees lower costs

Paint Raw Material Spend

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

Raw MaterialSpend 2012

Raw MaterialSpend 2013

Guild Rebates and Group Buys Guild CPO History

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Guild Benefits: Guild CPO Rebates

Guild Rebates and Group Buys Guild CPO History

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Guild Benefits: Guild CPO Rebates

BASF resins

BYK/Southern Clay, B-Way, Troy, Dow, Chromaflo, Brenntag, OPC, Thor, Univar, FP Pigments, Cleveland Steel, PCCR, ISP, Dura

Huntsman

BASF Resins 300% Volume Growth and Climbing

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2007 2008 2009 2010 2011 2012 2013 2014 F/C 2015 F/C

LBS

Beauti-tone Paint & Home Products & BASF History

2007 – 29 formulas Optive 4230

2015 – 43 formulas including PL3/4641 and PL1 introduced

Designer Series Sales Up

$0$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000$7,000,000$8,000,000$9,000,000

$10,000,0002007200820092010201120122013

Designer Series Sales trending up 12% year to date

Market Size by Price Point CANADA PRICE MARKET SHARE

4%

7%

9%

15%

14%

13%

7%

6% 6%

3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

$10 - $14.99

$15 - $19.99

$20 - $24.99

$25 - $29.99

$30 - $34.99

$35 - $39.99

$40 - $44.99

$45 - $49.99

$50 - $59.99

$60 - $69.99

BT Signature Series

BT Designer Series

Ben Moore

Just 9% of market opp.

BASF Savings 2015 projected

$248,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

PL1 only

BASF Savings 2015 projected

$248,000

$478,000

$0$50,000

$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000

PL1 only All BASFCost savings from 4230, PL3, $20k delivery surcharges, $30k in price increases that were fully rolled back

Power Of Cooperation VS World Paint Majors

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Sher

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Beauti-Tone Guild CPO

purchasing group

Purchasing Power

Period Buys (P.B.)

P.B. P.B. P.B.

P.B. P.B. P.B.

P.B. P.B. P.B. P.B. P.B. P.B.

Introducing Commodity Period Buys

P.B. for short

Steps: 1. Select Buy of Interest 2. Input your data 3. Data aggregation 4. Guild Contacts suppliers 5. If new price is 5% or lower, your volume is

automatically committed for the period

Period Buy Process

Timeline before period begins: 45 days – submit invitation to members to enter buy. 30 days – aggregate volume, submit to suppliers. 15 days – bid awarded 15 days – notify member if savings is ↓5% for in/out 7 - 15 days out - place P.O.’s for delivery during period

Liquid Trivia Question #3:

Guild CPO NOW has 4 categories of Buying Programs: Standard Rebate Programs, __________ , __________ & __________.

P.L. & S.P.

Resins 40%

P.L., G.B. & S.P.

P.L. & S.P.

S.P.

G.B. & S.P.

S.P.

G.B.

• P.L. = Private Label • G.P. = Group Buy • S.P. = Standard Program • P.B. = Period Buy

Typical gallon of Architectural Paint

Cash Trivia Question #4:

Which type of buy is currently driving the most value to you now? _______________

In the next 12 months? ________________

Only perfect practice makes perfect Vince Lombardi

Talk about powerful tools, Belgian made antique

revolver; holds 18 bullets and shoots 3 at a time

Now, welcome one of the most powerful

tools in Guild CPO History

www.guildcpo.com

http://www.guildcpo.com/�

Your Log In credentials to the website

Please See Tina or Josh at the

Guild CPO Table at the trade show

Company Name:

Product

Interested in a Period Buy

Y or N

Your Estimated

Annual Volume

Gallon Pounds

Package Size: Bulk, Tote, Drum

XYLENE AROMATIC 100 BUTYL ACETATE NORMAL 99.5% ACETONE METHYL AMYL KETONE TOLUENE METHYL ETHYL KETONE VM&P TEXANOL MIN SPIRITS REGULAR ETHYLENE GLYCOL ISOPROPYL ALCOHOL 85% PROPYLENE GLYCOL INDUSTRIAL ISOBUTYL ACETATE MIN SPIRITS ODORLESS PCBTF MIBK

GUILD CPO 2014 MEETING RIGID PACKAGING QUESTIONNAIRE

Please return to Letica Booth #10 •Are you familiar with the Letica Rebate Program with the Guild CPO?

•Do you factor the rebate into your net pricing?

•Are you familiar Letica’s innovations in rigid packaging?

•If Letica Corporation is not your current supplier for rigid packaging, why?

•When did you last entertain a new business proposal from Letica Corporation (applies also to current Letica customers)?

Trade Show Challenge

Pick one new

supplier from S.B. G.B. P.L.

and start a

relationship

Reception Challenge

________________ is a powerful ______. Find 2 new people to cooperate with. Remember, accomplishments depend on trying.

British Dictionary definitions for entrepreneur entrepreneur

/ˌɒntrəprəˈnɜː; French ɑ̃trəprənœr/ noun

1. the owner or manager of a business enterprise who, by risk and initiative, attempts to make profits 2. a middleman or commercial intermediary

Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24Slide Number 25Slide Number 26Slide Number 27Tio2Slide Number 29Slide Number 30Slide Number 31Slide Number 32Slide Number 33Slide Number 34Slide Number 35Slide Number 36Slide Number 37Slide Number 38Slide Number 39Slide Number 40Slide Number 41Slide Number 42Slide Number 43Slide Number 44Slide Number 45Slide Number 46Slide Number 47Slide Number 48Slide Number 49Slide Number 50Slide Number 51Slide Number 52The Value of Guild CPO’s Rebates & Group BuysSlide Number 54P/L Tio2Slide Number 56Slide Number 57Slide Number 58Slide Number 59Private Labeled Products – P.L.Paint Raw Material Spend Guild Rebates and Group BuysGuild Rebates and Group BuysBASF Resins�300% Volume Growth and ClimbingDesigner Series Sales UpMarket Size by Price PointBASF Savings 2015 projectedBASF Savings 2015 projectedPower Of Cooperation�VS World Paint MajorsSlide Number 70Slide Number 71Slide Number 72Slide Number 73Slide Number 74Slide Number 75Slide Number 76Slide Number 77Slide Number 78Slide Number 79Slide Number 80Slide Number 81Slide Number 82Slide Number 83Slide Number 84Slide Number 85