Freedonia Industry Study #1193 Study Publication Date: December 1999 Price: $3,600 Batteries Pages: 277

Batteries, a new study from The Freedonia Group, is designed to provide you with an in-depth analysis of major trends in the industry and the outlook for product segments and major markets -- critical information to help you with strategic planning.

This brochure gives you an indication of the scope, depth and value of Freedonia's new study, Batteries. Ordering information is included on the back page of the brochure.

Brochure Table of Contents

Study Highlights ...... 2 Table of Contents and List of Tables and Charts ...... 4 Sample Pages and Sample Tables from: Market Environment ...... 6 Products ...... 7 Markets...... 8 Industry Structure ...... 9 Company Profiles ...... 10 List of Companies Profiled ...... 11 Forecasting Methodology ...... 12 About the Company ...... 13 Advantages of Freedonia Reports ...... 13 About Our Customers ...... 14 About the Author ...... 14 Other Titles From Freedonia ...... 15 Ordering Information...... 16 Study Highlights US Supply and Demand

• Overall demand for primary and secondary batteries in the US is projected to increase 6.4 percent per year through 2003 to $12.8 Historical data (1989, 1993 and 1998) billion. and forecasts to the years 2003 and 2008 are provided for manufacturers' sales, • Shipments of batteries from US facilities will rise 5.9 percent per shipments and net exports for the aggre- year through 2003. gate primary and secondary battery • Although the differences are not substantial, demand for secondary categories as well as for the respective (rechargeable) batteries will exhibit somewhat faster growth than major segments (e.g., alkaline, lead-acid). primary (disposable) types through the early years of the new century.

• Fueling gains in the rechargeable segment will be sustained healthy demand for consumer-oriented portable devices that are powered by batteries, along with favorable replacement dynamics in the motor vehicles and backup power supplies markets.

• Stimulating demand in the primary battery segment will be expanding applications for higher-end lithium and zinc-air types beyond traditional uses in cameras and hearing aids.

Industry Structure

• Over 100 companies manufacture batteries in the US, but most segments of the industry are highly concentrated.

• For example, three producers -- (subsidiary of Gillette), Eveready Battery (slated to be spun off by Ralston Purina in the first half of 2000 into an independent entity known as Holdings) and Rayovac -- accounted for about 80 percent of the total US primary battery market as of the latter 1990s.

• As illustrated by Ralston’s Eveready/ Energizer spinoff and a host of merger, acquisition and joint venture activity, the US battery industry continues to restructure in a dynamic and highly competi- tive market environment.

Batteries #1193 Freedonia Industry Study 2 Study Highlights US Batteries Demand, 1993 Versus 1998

million dollars

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5000

4000 Primary 3000 Secondary

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1993 1998

US Batteries Supply & Demand (million dollars) % Annual Growth Item 1989 1998 2003 2008 98/89 03/98

Gross Domestic Product (bil $) 6558 8511 10705 13550 5.4 4.7 $ batteries/000$ GDP 1.01 1.11 1.20 1.30 -- --

Battery Sales 6624 9415 12825 17650 7.3 6.4 Primary: 2498 3355SUMMARY 4525 6150 TABLE 6.1 6.2 Alkaline 1440 2315 3250 4500 10.0 7.0 Others 1058 1040 1275 1650 -0.3 4.2

Secondary: 4126 6060 8300 11500 8.0 6.5 Lead-Acid 3039 3980 5075 6500 5.5 5.0 Nickel-Cadmium 902 985 750 500 1.8 -5.3 Nickel-Metal Hydride 57 325 500 725 41.6 9.0 Rechargeable Lithium 25 515 1500 3000 83.1 23.8 Others 103 255 475 775 19.9 13.2

net imports 98 535 1025 1725 40.4 13.9 Battery Shipments 6526 8880 11800 15925 6.4 5.9

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Batteries #1193 Order form on last page 3 Lithium ...... 40 Rechargeable Alkaline ...... 41 Nickel-Metal Hydride ...... 42 List of Contents, Zinc-Air ...... 42 Others ...... 43 Wireless Communications & Portable Computing ...... 44 Tables and Charts Table - Portable Information Exchange Devices Shipments ...... 45 Electric Vehicles...... 46 Table - Electric Vehicle Market Trends ...... 47 Fuel Cells...... 47 I. EXECUTIVE SUMMARY Summary Table 3 ...... IV. PRIMARY BATTERY PRODUCTS General ...... 49 II. MARKET ENVIRONMENT Table - Primary Battery Products Supply & Demand ...... 51 General ...... 4 Chart - Primary Battery Demand by Chemistry, 1998 ...... 52 Economic Environment ...... 5 Alkaline Batteries ...... 52 Cyclical Trends ...... 5 Table - Alkaline Batteries Supply & Demand ...... 55 Table - Macroeconomic Environment ...... 8 Chart - Unit Demand ...... 56 Long Term Trends ...... 8 Other Primary Batteries ...... 56 Table - Battery Products Market Volatility ...... 10 Table - Other Primary Batteries Supply & Demand ...... 57 Chart - Batteries Market Volatility...... 11 Zinc-Carbon/Zinc-Chloride ...... 58 Durable Goods Manufacturers Trends ...... 11 Table - Zinc-Carbon/Zinc-Chloride Batteries Demand .....60 Table - Durable Goods Shipments ...... 12 Primary Lithium ...... 60 Electrical & Electronics Sector Trends ...... 13 Table - Primary Lithium Batteries Demand ...... 62 Table - Electrical & Electronic Equipment Shipments ...... 15 Zinc-Air ...... 62 Pricing Patterns ...... 16 Table - Zinc-Air Batteries Demand ...... 64 Chart - Batteries Pricing Patterns ...... 18 Silver Oxide ...... 64 Legal & Regulatory Environment ...... 18 Table - Silver Oxide Batteries Demand ...... 66 International Environment ...... 20 Mercury...... 66 World Supply & Demand ...... 21 Table - Mercury Batteries Demand ...... 67 Table - World Battery Demand ...... 24 Specialty & All Other ...... 67 Trends in US Foreign Trade ...... 24 Table - Specialty & All Other Primary Batteries Demand ...... 69 Table - Trends in US Foreign Trade ...... 25 Primary Batteries 25 ...... V. SECONDARY BATTERY PRODUCTS Table - US Primary Batteries Foreign Trade ...... 26 General ...... 70 Chart - US Primary Battery Exports by Region, 199827 Table - Secondary Battery Products Supply & Demand ...... 73 Chart - US Primary Battery Imports by Region, 1998.27 Chart - Secondary Battery Demand by Chemistry, 1998 ...... 74 Secondary Batteries ...... 28 Lead-Acid Batteries ...... 74 Table - US Secondary Batteries Foreign Trade ...... 29 Table - Lead-Acid Batteries Supply & Demand ...... 76 Chart - US Secondary Battery Exports by Region, 199829 Starting/Lighting/Ignition ...... 76 Chart - US Secondary Battery Imports by Region, 199830 Table - Starting/Lighting/Ignition Batteries Demand ..79 Non-SLI ...... 79 III. TECHNOLOGY Table - Non-SLI Lead-Acid Batteries Demand ...... 80 General ...... 31 Nickel-Cadmium Batteries ...... 83 Table - Batteries Supply & Demand...... 33 Table - Nickel-Cadmium Batteries Supply & Demand ...... 86 Basic Electrical Properties ...... 34 Nickel-Metal Hydride Batteries ...... 86 Battery Construction & Operation 35 ...... Table - Nickel-Metal Hydride Batteries Conventional Battery Chemistries ...... 37 Supply & Demand ...... 89 Alkaline...... 37 Rechargeable Lithium Batteries ...... 89 Zinc-Carbon/Zinc-Chloride 38 ...... Table - Rechargeable Lithium Batteries Nickel-Cadmium ...... 38 Supply & Demand ...... 91 Lead-Acid ...... 39 Lithium Ion ...... 91 Others ...... 39 Lithium Polymer...... 92 Advanced Battery Chemistries ...... 40 Other Secondary Batteries...... 93

Batteries #1193 Freedonia Industry Study 4 Table - Other Secondary Batteries Supply & Demand .....94 Table - Personal Communications Devices Rechargeable Alkaline ...... 94 Battery Market ...... 139 Rechargeable Zinc-Air ...... 95 Portable Computers ...... 139 Nickel-Hydrogen ...... 95 Table - Portable Computers Battery Market...... 141 Sodium-Sulfur ...... 96 Power Tools ...... 141 Exotic & Miscellaneous ...... 96 Table - Power Tools Battery Market ...... 142 Other Portable Devices ...... 142 VI. PRIMARY BATTERY MARKETS Table - Other Portable Devices Battery Market ...... 144 General ...... 98 Motive Power Secondary Battery Markets ...... 144 Table - Primary Battery Market by Sector ...... 100 Table - Motive Power Secondary Battery Market ...... 145 Chart - Primary Battery Market by Sector, 1998 ...... 100 Industrial & Mining Vehicles ...... 146 Consumer Sector ...... 101 Recreational & Personal Mobility Vehicles ...... 147 Personal Income & Expenditure Trends...... 101 Other Motive Power Applications...... 148 Table - Consumer Income & Expenditure Patterns ... 103 Backup Power Supplies Secondary Battery Markets ...... 148 Consumer Primary Battery Markets ...... 103 Table - Backup Power Supplies Table - Consumer Primary Battery Market ...... 105 Secondary Battery Market ...... 150 Entertainment...... 105 Telecommunications...... 150 Lighting ...... 107 Industrial ...... 151 Toys & Games...... 108 Utility-Related ...... 152 Photography ...... 109 Government & Other Secondary Battery Markets ...... 153 Other Consumer Markets ...... 110 Table - Government & Other Industrial Sector...... 112 Secondary Battery Markets ...... 155 Industrial Production & Investment Trends...... 112 Table - Industrial Sector Indicators ...... 114 VIII. INDUSTRY STRUCTURE Industrial Primary Battery Market ...... 114 General ...... 156 Table - Industrial Primary Battery Market ...... 116 Industry Composition & Market Share ...... 157 Government Sector...... 117 Chart - Total US Batteries Government Spending & Investment Trends ...... 117 Market Share by Company, 1998 ...... 158 Table - Government Spending & Investment Trends .... 118 Primary Batteries ...... 158 Government Primary Battery Market...... 118 Chart - US Primary Batteries Table - Government Primary Battery Market ...... 120 Market Share by Company, 1998...... 159 Other Primary Battery Markets ...... 120 Lead-Acid Secondary Batteries ...... 159 Table - Other Primary Battery Markets ...... 122 Chart - US Lead-Acid Batteries Market Share by Company, 1998...... 160 VII. SECONDARY BATTERY MARKETS Other Secondary Batteries ...... 160 General ...... 123 Chart - US Non-Lead-Acid Secondary Batteries Table - Secondary Battery Market by Major Application ...... 125 Market Share by Company, 1998...... 161 Chart - Secondary Battery Market Research & Product Development ...... 161 by Major Application, 1998 ...... 125 Table - Research & Development Spending Patterns: Motor Vehicle Sector ...... 126 Selected Battery Manufacturers ...... 163 Motor Vehicle Outlook...... 126 Manufacturing ...... 163 Table - Motor Vehicle Outlook ...... 128 Table - Capital Spending Patterns: Motor Vehicle Secondary Battery Markets ...... 128 Selected Battery Manufacturers ...... 165 Table - Motor Vehicle Battery Market ...... 130 Marketing...... 165 Conventional OEM ...... 130 Table - Selected Strategic Partnerships ...... 168 Table - Conventional OEM Distribution ...... 174 Motor Vehicle Battery Market ...... 131 Financial Requirements...... 175 Conventional Replacement ...... 131 Table - Composite Financial Ratios: Table - Conventional Replacement Selected Battery Manufacturers, 1998 ...... 177 Motor Vehicle Battery Market ...... 133 Mergers, Acquisitions & Industry Restructuring ...... 178 Electric Vehicle ...... 133 Table - Selected Acquisitions & Divestitures ...... 179 Table - Electric Vehicle Battery Market ...... 135 Table - Revenue & Profits Data: Portable Devices Secondary Battery Markets ...... 135 Selected Battery Products Manufacturers, 1998 ...... 181 Table - Portable Devices Secondary Battery Market ...... 137 Company Profiles ...... 181-277 Personal Communications Devices ...... 137

Batteries #1193 Order form on last page 5 Market Environment

The Market Environment Section discusses factors influencing battery demand, including consumer spend-

ing, durable goods and electronics MARKET ENVIRONMENT trends.

Cyclical Trends This information provides you with an understanding and an analysis of the Batteries serve as sources of electrical energy in some of the most cyclically sensitive industries in the entire economy -- motor vehicles, industrial machinery, climate in which the battery industry electrical equipment, consumerSAMPLE durable products, PAGE etc. But the diversity of operates. applications and, in particular, the existence of vast replacement markets provide battery vendors with significant protection from the vicissitudes of the business cycle. This is particularly true on the primary side, where the purchase of a battery-powered original equipment product can generate multiple aftermarket battery purchases for many subsequent years. On the secondary side, the inherent rechargeability of the batteries generally precludes the need for replacement on as frequent a basis as is typical with primaries (although this convenience is typically accorded a pricing premium). In any event, it is likely that battery demand will become more rather than less cyclical over the next several years, due mainly to technological innovations that lengthen battery life (on both the primary and secondary sides) and increase the number of times the typical secondary battery can be recharged. Each of these will work to reduce the relative (if not absolute) importance of the replacement aftermarket to overall battery demand, and thus increase cyclical sensitivity.

The US economy, as measured by real (inflation-adjusted) gross domestic product, is projected to increase 2.3 percent per year through 2003, noticeably slower than the 3.4 percent annual rate averaged between 1993 and 1998. Most economic sectors will contribute to the slowdown, in particular consumer spending and business fixed investment. With growth in personal outlays significantly outstrip- ping incomes over the past several years, consumers at some point will have to retrench to pay down debt levels, which approached historically high levels (as a share of GDP, total disposable income, etc.) as of the latter 1990s. Similarly, capital investment will also decelerate as slowing final demand for manufactured

Batteries #1193 Freedonia Industry Study 6 Products

PRIMARY BATTERY PRODUCTS

The Product Sections provide demand Primary Lithium for historical years and forecast growth to 2003 and 2008. Primary batteries Demand for primary lithium batteries is projected to increase 9.7 percent per year through 2003 to $650 million, well above the forecast average pace for non- discussed include alkaline and other rechargeable batteries as a whole over the span.SAMPLE Fueling gains PAGE will be a prolifera- batteries. Secondary batteries analyzed tion of new applications for the devices, themselves stemming from technological include lead-acid, nickel-cadmium, upgrade along such parameters as energy density and longevity, as well as availability in a greater number of sizes and styles. For example, in April 1999 nickel-metal hydride and other Duracell launched four sizes of photo lithium batteries as part of its ULTRA high- secondary batteries. rate battery series, which reportedly outlast standard lithium batteries by as much as 40 percent. Lithium primary batteries are now available in an array of cylindrical sizes as well as traditional coin-shaped and button-type designs. This information helps you: Although lacking the dynamism of their counterparts in the secondary battery market (i.e., lithium ion and lithium polymer), primary lithium batteries are nonetheless benefitting from technological innovations in lithium electrochemistry • Analyze your company's and product designs. Illustrative of this is Gould Electronics (US-based subsidiary growth potential in of Japan Energy), whose POWERDEX line of ultra-thin primary lithium batteries the industry. are based on planar geometry, and are designed for OEM and other applications requiring a compact power source.

• Outline your strategic Lithium primary batteries feature a lithium anode and an electrolyte of either organic solvent, inorganic liquid or solid material. Typical chemistries include plans for five and ten thionyl chloride, sulfur dioxide, manganese dioxide and solid-state iodine. years out. Lithium power cells are valued for their high energy density and longevity, as they offer a nominal voltage of 3.0 V -- double that of alkalines -- and total energy output as much as three times higher than alkaline cells. Because of the • Establish sales goals. Lead-Acid Batteries Supply & Demand (million dollars)element's high response at the light frequencies (such as visible light), lithium batteries have long been popular in optical-related uses, including military/ Item industrial settings as well as more consumer-oriented1989 1993 photographic 1998 2003 equipment. 2008

Durable Goods Shipments (bil $) 1403 1545 2155 2696 3413 $ batteries/000$ shpt 2.08 1.97 1.85 1.88 1.90

Lead-Acid Battery Sales 2914 3039SAMPLE 3980 5075TABLE 6500 Starting/Lighting/Ignition 2385 2382 2945 3625 4500 Non-SLI 529 657 1035 1450 2000

net exports -63 84 50 75 100 Lead-Acid Battery Shipments 2851 3123 4030 5150 6600

price deflator (1992=100) 101.8 97.8 103.6 113.8 125.7 Lead-Acid Battery Shpts (mil 1992$) 2801 3194 3890 4525 5250

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Batteries #1193 Order form on last page 7 Markets

The Markets Section analyzes trends SECONDARY BATTERY MARKETS and considers the threats and opportunities in each of the major Portable Devices Secondary Battery Markets markets for batteries. Demand for rechargeable batteries used in portable electrical and electronic The information presented will devices is projected to increase 7.7 percentSAMPLE per year through PAGE 2003 to $2.7 billion, still among the best performances expected for any of the major secondary battery help you: markets, despite the prospects for some slowing. A number of factors will contribute to the somewhat more measured pace of growth likely over the next • Focus your sales and marketing several years, chief among them price moderation in just about all of the major efforts on high growth areas. battery types utilized in these applications. For example, low-cost nickel-cadmium batteries have already achieved virtual commodity status, and are in any event • Propose new areas for development. being phased out of higher-drain uses; the products supplanting nicads -- most notably nickel-metal hydride and lithium-based rechargeables, will decline further in price in response to both supply/demand conditions and technological upgrades in battery design and performance. Such dynamics will work to restrict the pace of market expansion when measured in value terms. In addition, cyclical slowing in OEM products demand in general will impact the portable devices segment, Consumer Primaryespecially Battery with respect Marketto more mature battery-using markets such as power tools. (million dollars) Finally, although still in a growth phase, per annum increases in demand for high- end products such as portable computers and wireless phones will inevitably Item decelerate as the market base (i.e.,1989 number 1993 in use) continues 1998 to 2003 expand. But 2008 despite the slowing, portable devices will remain among the most dynamic of any Consumer Durablessecondary Expend battery (bil markets, $) and will, 473 like electric 530 vehicles, 725 serve 825as a breeding 990 $ batteries/000$ expend 3.0 3.3 3.4 4.0 4.5 ground for product innovation on the part of battery suppliers.

Consumer Primary Battery Market 1433 1758 2435 3300 4500 By Application:Literally dozens of portable electrical and electronic products can be powered by Entertainmentrechargeable batteries, ranging from 496 notebook 667 computers 975 to toys1350 and games 1875 to Lightingmedical devices. As the number 357of such items 401 has proliferated 490 over 625 the past 800 Toys & Games 198 244 350 500 675 Photography 179 210 290 385 525 Other 203 236SAMPLE 330 TABLE 440 625 © Copyright by The Freedonia Group, Inc. By Chemistry: Alkaline 881 1197 1945 2725 3775 Zinc-Carbon/Zinc-Chloride 452 396 200 125 75 Primary Lithium 48 107 210 340 500 Other Primary 52 58 80 110 150

% consumer 70.1 70.4 72.6 72.9 73.2 Primary Battery Market 2043 2498 3355 4525 6150

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Batteries #1193 Freedonia Industry Study 8 Industry Structure Sample page from Freedonia Industry Study

Gain#1117 a better Fractional understanding Horsepower of your Motors competition and analyze your company's position in the industry with information about:

• industry composition INDUSTRY STRUCTURE

• primary battery market share Marketing

Perhaps in no aspect of battery producers’ competitive strategy alternatives do • lead-acid secondary battery market share differences in generic product type make more of a difference than they do in marketing. In many segments -- in particular consumer-oriented primary (and • other secondary battery market share most especially alkaline) batteries -- establishing and maintaining company and/or tradename visibility with consumers is so important that attaining such a status in • research & product development effect erects another barrier toSAMPLE entry, one comparable PAGE (or even higher) to economies of scale in manufacturing. For example, Duracell, Eveready (via the ENERGIZER tradename), Matsushita (via PANASONIC) and Rayovac all leverage • manufacturing their extensive brand name recognition into a position of dominance in the primary battery industry; other battery producers -- many based overseas, • marketing & distribution including in Third World countries -- desiring to reap the benefits of the leaders’ high name recognition engage in extensive private label manufacture. A similar situation exists in the replacement market for automotive SLI batteries, where • mergers & acquisitions brand name recognition is also important (again also sometimes in the form of private label brands like Sears’ DIEHARD, now manufactured by Johnson Controls). Thus marketing strategies for consumer-type batteries center around pricing, point-of-sales programs, promotional campaigns (coupons, rebates, etc.) and advertising. Battery displays in stores are important marketing tools, as are brand name symbols like Eveready’s ENERGIZER BUNNY.

Marketing batteries to industrial, government and other nonconsumer sectors requires an almost entirely different set of strategies. For more commodity-type batteries price, quantity discounts, delivery schedules and long term contract

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Batteries #1193 Order form on last page 9 Company Profiles

The profiles section analyzes 40 companies active in the U.S. battery market. These profiles represent a sampling or cross-section of the types of

companies involved in the industry. COMPANY PROFILES

Divisions, subsidiaries, joint Alcatel SA 54 Rue de la Boetie ventures, etc., are discussed under 75008 Paris appropriate parent companies. France 331-4076-1010

Sources for profiles included: Saft America Incorporated 711 Industrial Boulevard • Information provided by Valdosta, GA 31601 912-247-2331 key staff members in the respective companies Alcatel, which changed its name from Alcatel Alsthom in September 1998, provides high-technology systems and equipment for the telecommunications, • Annual reports energy and transportation industries. In March 1999, the Company reorganized into five business segments: Energy Cables, Telecom Components, Enterprise and Consumer, Internet and Optics, and Networking. In July 1999, Alcatel an- • 10-K reports nounced plans to sell off its Groupe Saft subsidiary through a leveraged buy-out that is expected to occur by the end of 1999. The Company had restated 1998 • Security analysts reports sales of $23.8 billion, with $3.8 billion in North America. Alcatel employs 118,270. SAMPLE PAGE • Corporate product literature The Company’s Battery division is part of Alcatel’s Energy Cables segment, which accounted for $4.1 billion of the Company’s restated 1998 sales. The Battery division primarily operates through Groupe Saft (France), a wholly-owned subsidiary involved in the manufacture of off-line power solutions. Groupe Saft consists of three global product groups: Portable Batteries, Industrial and Advanced Technology Batteries, and Power Systems. Groupe Saft operates in the US through Saft America Incorporated.

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Batteries #1193 Freedonia Industry Study 10 Companies AER Energy Resources Incorporated Ralston Purina Company Alcatel SA Eveready Battery Company Incorporated Profiled Saft America Incorporated Rayovac Corporation Alexander Technologies Incorporated BRISCO Alliant Techsystems Incorporated Sanyo Electric Company Limited Bolder Technologies Corporation Sony Corporation C&D Technologies Incorporated Thomas & Betts Corporation Crown Battery Manufacturing Company Toshiba Corporation Delphi Automotive Systems Corporation Trojan Battery Company Douglas Battery Manufacturing Company Ultralife Batteries Incorporated Eagle-Picher Industries Incorporated US Battery Manufacturing Company East Penn Manufacturing Company Inc. VARTA AG Eastman Kodak Company Enertec Matsushita-Ultra Tech Battery Wilson Greatbatch Limited Ener-Tek International Incorporated Yuasa Corporation Yardney Technical Products Incorporated Energy Conversion Devices Incorporated GM Ovonic LLC Ovonic Battery Company Incorporated Ovonic Energy Products Incorporated Exide Corporation Schumacher Corporation General Motors Corporation GM Ovonic LLC Ovonic Energy Products Incorporated Gillette Company Duracell Incorporated Gold Peak Industries (Holdings) Limited GP Batteries International Limited Invensys plc BTR plc Hawker Energy Products Incorporated Siebe plc Japan Energy Corporation Gould Electronics Incorporated Johnson Controls Incorporated Enertec Marathon Power Technologies Company Matsushita Electric Industrial Company Limited Matsushita-Ultra Tech Battery Panasonic EV Energy Company Limited Motorola Incorporated Pacific Dunlop Limited GNB Technologies Incorporated Polaroid Corporation Power Battery Company Incorporated Power-Sonic Corporation

Batteries #1193 Order form on last page 11 Forecasting Methodology

Freedonia does not just collect and reprint data; Freedonia develops data. Our analysts thoroughly investigate an industry by extensively interviewing key industry participants and analyzing information from sources such as associations, govern- ment and trade literature. Once this The Freedonia research is complete, Freedonia establishes Economics Group Freedonia one set of forecasts. All writing, editing In-house Research Consistent framework and forecasting is done in-house to assure of economic indicators on . . . • Quantitative forecasting quality and consistency. In cases where • Motor Vehicle Outlook • Industry structure & market • Electronic Sector Trends share analyses data does not exist, Freedonia develops the • Gross Domestic Product (GDP) • Product analyses & forecasts data based on input/output ratios, bills of . . . and many others materials and flow charts. The following chart summarizes Freedonia's methodology:

Methodology for Batteries

Proprietary Extensive Interviews Electronic Database • Key participants • Trade publications • Industry experts • Government reports • End-users • Corporate literature • Online databases . . . and many others

Batteries #1193 Freedonia Industry Study 12 The Freedonia Group, Inc. is a leading international industry study/ About database company. The Freedonia Group Since 1985, Freedonia has published over 1,500 titles covering areas such as chemicals, coatings and adhesives, building materials, plastics, industrial components and equipment, health care, packaging, household goods, security, and many other industries.

Freedonia has produced a wide variety of titles, including:

• Automotive Aftermarket • World Batteries • Electric Vehicles • Batteries - Private Companies Report

Because Freedonia is a reliable information source, our forecasts are cited in numerous publications such as The Wall Street Journal, The Financial Times, The Battery Man, Chemical Week and USA Today.

Advantages In-house operations of Freedonia Reports Because all of our staff work at the same location, interaction between analysts and departments provides a strong system of checks and balances.

Consistency Our Economics Group develops indicators that are used by all analysts. Therefore, every Freedonia study is based on a consistent set of economic assumptions (GDP, motor vehicle outlook, electronic sector trends, etc.)

Reliable forecasts Because all of our forecasts consider the environment in which a product or industry is operating, as well as threats and opportunities to the market, Freedonia forecasts are reliable indicators of future performance.

One-on-one interviews All studies are produced by conducting interviews with key industry participants and end-users.

Proprietary electronic database Freedonia’s analysts can tap into an extensive in-house electronic database containing corporate literature (including private company information), trade publications, government reports and many other sources of information.

Batteries #1193 Order form on last page 13 About Our Customers

Freedonia's clients include major US and international companies in the manufacturing, services, consulting and financial sectors.

Typical purchasers of Freedonia studies :

• Key Executives • Corporate Planners • Market Researchers • Financial Analysts • Information Centers • New Product Developers • Merger & Acquisition Specialists

Since 1985 we have provided research to customers ranging in size from global conglomerates to one person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning.

Some of Freedonia's customers in the battery market include: Eveready Battery, Panasonic, Duracell, VARTA AG and Exide Corporation.

About the Author Edward D. Hester Vice President

For over fifteen years, Mr. Hester has performed in-depth research on industrial components and equipment, producing titles such as: World Automotive Aftermarket, Automotive Aftermarket, OEM Automotive Electron- ics and World Batteries.

Before joining The Freedonia Group, Inc., Mr. Hester acted as Senior Research Analyst for Predicasts, Inc. and was editor of several business research publications. He holds degrees from Cleveland State University, earning a B.A. in communications (magna cum laude) and a M.B.A. emphasizing finance and strategic planning. Mr. Hester is also a member of several professional associations, including The Planning Forum and the National Association of Business Economists.

Batteries #1193 Freedonia Industry Study 14 Order Complete Coverage of the Battery Industry! Other Titles Batteries - Private Companies Report From Freedonia Private companies participate in all facets of the battery industry, manufacturing and dis- tributing batteries, battery components and related products such as battery chargers. At least three private companies have battery or related product sales of over $100 million. The report profiles more than 150 privately-held firms (e.g., Alexander Technologies, Douglas Battery and East Penn) and lists them by product and location. The report also presents For more information about market share, forecasts battery demand, and reviews acquisition trends. #1212...... 1/00...... $3,000 these or other Freedonia titles, please contact us at: World Batteries Global demand for batteries will grow nearly 8% annually to 2002. Rechargeable batteries The Freedonia Group, Inc. used in high-drain portable electronics will pace gains in industrialized countries. Rising personal and business incomes will broaden the market for battery-powered products in the Phone: (440) 684-9600 developing world, assuming financial troubles do not linger. This study analyzes the $38 billion global battery market to 2002 and 2007 by type in over 20 countries and subregions. (800) 927-5900 It also presents market share and profiles key firms. Fax: (440) 646-0484 #1076...... 1/99...... $4,200

World Automotive Aftermarket Global demand for under-the-hood automotive aftermarket parts and components will grow nearly 7% annually. Fueling gains will be a rise in the average age of light vehicles in use, as vehicle owners retain existing machines and re- Electric Vehicles quire more repair and maintenance. This study Electric vehicle (EV) demand in the US will be analyzes the world automotive aftermarket to driven by sales in California and other Sunbelt 2002 and 2007 for six geographic regions and states. While cost/performance problems re- over 30 countries. The study also presents mar- main and sales have been minimal, the EV in- ket share and profiles leading suppliers. dustry will continue to spend on R&D. EV us- ers are generally fleet operators or high income, #1093...... 2/99...... $4,200 eco-friendly individuals. This study analyzes the US battery powered, hybrid and fuel cell vehicle industry to 2003 and 2007. It also reviews tech- nology and profiles key companies. World Electric Vehicles #1037...... 9/98...... $3,400 World electric vehicle (EV) sales will increase 60% annually to over one million units in 2007. Sales will depend upon environmental is- sues, political pressures and competing low and Automotive Aftermarket no emission technologies (e.g., cleaner gasoline in North America combustion, alternative fuel vehicles). This The aftermarket for light vehicle parts in North study forecasts the world EV industry to 2003 America will grow over 5% per annum, based and 2007 by type (battery powered, hybrid, fuel mainly on the aging of the light vehicle park. cell), region and country. It also reviews tech- Also driving demand will be the number of ve- nology and market share, and profiles key firms. hicles added during the strong 1992-1997 mar- #1081...... 1/99...... $3,900 ket, and the growing popularity of larger ve- hicles. This study analyzes the automotive after- market in the US, Canada and Mexico to 2002 and 2007 by country and product. It also profiles key companies and details market shares. #1026...... 7/98...... $3,400

Batteries #1193 Order form on last page

15 How to Order

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