An introduction to PPG Industries PPG is . . .

A global maker of paints, coatings, chemicals, optical products, specialty materials

Founded in 1883 Operator of more than 155 manufacturing facilities PPG is . . . 38,000 employees in 25 countries.

Headquartered in Pittsburgh, Pa.

Owned by 154,000 shareholders Composed of 4 major product areas: • Automotive & Industrial Coatings • Performance & Applied Coatings • Optical & Specialty Materials • Commodity Chemicals R&D

PPG invests hundreds of millions of dollars each year in developing new and improved products and processes as well as adapting current technologies to new markets. PPG coatings sites in Europe

22 Manufacturing Sites 3 Development Sites

Milano

HQ Quattordio Felizzano

Caivano

PPG Automotive Coatings Overview • PPG is the world’s leading supplier of automotive coatings

– Products supplied in 37 countries – Manufacturing sites in 15 countries – Laboratories in 17 countries

• Full portfolio of coating products and material-process management services

Global Manufacturing PPG Automotive Coatings Overview • PPG is the only coatings supplier to supply all global automotive companies.

PPG ITALY CUSTOMERS

 Aabsal ()  Lancia (Italy)  AIDCO Press (Iran)  Land Rover (England)  Alfa Romeo (Italy)  LDV (England - Italy)  Ariakian (Iran)  Mercedes ()  AR Machine (Iran)  Nissan (England - Egypt)  (Iran)  Pakshoma (Iran)  Bertone (Italy)  Piaggio (Italy)  BMW (England)  (Italy)  Decoma (England)  PSA ( - Slovakia)  Ettehad Motor (Iran)  (Spain - France - Romania)  Ferrari (Italy)  Saipa (Iran)  Fiat (Italy – Poland)  Saipa wheel (Iran)  Ford ()  Sevel (Italy)  FSO (Poland)  (Hungary - Egypt)  G.M. (Egypt)  Tagaz ()  Honda (England)  TOPCO – Bon Ro (Iran)  Hunday (Poland)  Top Khodro – Mercedes (Iran)  KIA (Slovakia)  Toyota (France - England)  Kerman Motor (Iran)  TPCA (Czech Republic)  Iveco (Italy)  VW (Germany)  (Iran)  (Iran)

VOLUMES & PRODUCTS

PPG QUATTORDIO 9% 19% 19% Adhesive & sealant

SB Paint

Pretreatment

SB Smal Batch

Resins

WB Paints 23% 16% Tint Pastes 1% 13%

PPG CAIVANO

6% 4% 3%

Decorative Resins

Ecoat Binder + Paste 29%

Clear Coat

Primer

58% Other PPG QUATTORDIO (AL) Water Basecoat Manufacturing

ton 9.000 8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 1999 2000 2001 2002 2003 2004 2005 2006 2007 EST. PPG CAIVANO (NA) Resin Production Typical OEM Coating System What is a Paint ?

 Binder - Additive  Resin  Polymer  Vehicle - Solvent

 Pigment - Resin  Additives

 Solvent - Pigment Function of each material

 Binder – film’s properties  Hardness  Flexibility  Appearance  Adhesion  Durability  Pigments - color, hiding, UV-protection  Additives - flow, durability  Solvents - flow, leveling Basecoat

Solventborne Waterborne

Solvent Water 50% 49% Polyurethane –Acrylic

Solvent 16% Solids 50% Solids 35%

4.1 #VOC / Gallon 1.6 #VOC / Gallon Clearcoat

 Epoxy/Acid

 2K-Isocyanate (polyester-acrylic/aliphatic polyisocyanate)

 Powder Typical OEM Line

Clean, Bake Pretreatment E-Coat Rinse Cycle

Body-in-White Cool

Bake Primer Sealer Sanding

Cool

Sanding Basecoat Pre-bake if WBBC

Inspection Cool Bake Pick-Up Clearcoat Basecoat Market Direction

Overview

• Designed for the high colour needs of the European OEM market.

• It provides excellent colour with class leading smoothness.

Clearcoat Market Direction

Overview • Clearcoat will remain predominately a SB based technology

• 2K growing relative to total performance potential and paint shop flexibility

PPG Scratch Resistant clearcoat ® Overview Ceramiclear

• PPG is the industrial leader (Mercedes in 2002)

• New standard in scratch resistance properties (>80% gloss retention in dry and humid tests)

• Use of nanomaterials in: 1K Acrylic-Melamine, Powder, 2K epoxy-acid

PPG Automotive Coatings

Overview More than just paint technologies

In addition to the protective and decorative products, PPG also offers improvement to the OEM’s process

Specialty Chemicals Added Value Services Compact Cycle: Primer’s elimination

Overview

Clean, Pretreatment Bake Body-in-White E-Coat Rinse Cycle Cool

Sanding Sealer + Gel Bake Bake Primer Cool

Sanding Interior Basecoat - bake Flash or Pre Flash

Inspection Cool Bake Clearcoat Pick-Up PPG Goals for Compact Coating Systems

Overview

Economical Preserve Quality • Eliminate or Combine Layers • Appearance • Reduce Operating Support • First Time Capability • Lower Investment • Regulatory Compliance • Warranty Environmental • Field Performance • Reduced VOC Emissions

• Reduced CO2 Emissions • Reduced hazardous waste

Energy • Reduced Total Energy Consumption

Environment