Overview of Radiation Curing Overview of Radiation Curing Market and Technologies in JapanMarket and Technologies in Japan

Teruo OrikasaTeruo OrikasaRadTechRadTech JapanJapan

RadTechRadTech North America 2012North America 2012

ContentsContents

Japan Economic vs. Radiation Curing Market Japan Economic vs. Radiation Curing Market Trend IndicationsTrend IndicationsRecent Advanced TechnologiesRecent Advanced TechnologiesFuture Growth ApplicationsFuture Growth Applications

Japan Economic Overview

20

40

60

80

100

120

140Ja

n-07

Apr

-07

Jul-

07

Oct

-07

Jan-

08

Apr

-08

Jul-

08

Oct

-08

Jan-

09

Apr

-09

Jul-

09

Oct

-09

Jan-

10

Apr

-10

Jul-

10

Oct

-10

Jan-

11

Apr

-11

Jul-

11

Oct

-11

Jan-

12

inde

x

Overall Japan Production Index still 16 to 20% down from the peak in late 2007 to early 2008 by the triple disaster and negative global economic situation.

Production Index by METI

20

40

60

80

100

120

140

Jan-

07

Apr

-07

Jul-0

7

Oct

-07

Jan-

08

Apr

-08

Jul-0

8

Oct

-08

Jan-

09

Apr

-09

Jul-0

9

Oct

-09

Jan-

10

Apr

-10

Jul-1

0

Oct

-10

Jan-

11

Apr

-11

Jul-1

1

Oct

-11

Jan-

12

Electrical ApplianceIT RelatedElectric Parts and DevicesSemiconductor DevicesAutomotives

Japan Economic Overviewin

dex

Production Index by METI

Japan major industries production index that indicates lower level flatten by the negative global economy situation, in addition with the higher JPY exchange rate. (JPY 120 vs. 80 / $)

Trend In Japanese Current Balance

Current TransferBalance

Services Balance

Trade Balance

Income Balance

Current Balance

-10

-5

0

5

10

15

20

25

30

1985 1990 1995 2000 2005 2010

Plaza Agreement(85’)

SII(89’~90’)China Join in WTO(01’)

Lehman’s Shock(08’)

Soviet Break up(91’)

JPY fall to 79 level (95’)

Ministry of Finance JapanFeb 2012

Oil / Gas rapid demand influenced by Nuclear Power Plant shut down as well as import component parts.

◆Labor Force Decreasing

◆Global Warming

◆Limited Natural Energy Resources

◆Clean Environment (Soil, Water, Air)

◆ Higher Capacity Information System 　Progressing

Manufacturing Industry◆Production Technology catch up / 　　competition by other countries by 　　　digitalization.

◆Strong JPY exchange rate

Higher Performance products with less energy consumption as well as no pollution generate.

Thinner, Smaller, Higher performance devices.

Structure control new technology

etc.

Japan Industry Structure changes / Direction

0

10

20

30

40

50

2006 2007 2008 2009 2010 2011 2012 est

Reactive Diluents Oligomers Photoinitiators

2011 slightly increased than in 2010.2012 expects higher than in 2007, which is robust economic year.

EB/UV Curing Raw Materials Market in Japan

EB/UV Curing Formulated Materials by Applications in Japan

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011 2012 est

Industrial coating Graphic Arts Photoresists Others

3.5% growth prediction in 2012, which is more than double from GDP prediction figure announcement.

UV functional coating on various plastic film UV functional coating on various plastic film substrates:substrates:

6% growth from the previous year (2010), 12% higher 6% growth from the previous year (2010), 12% higher than in 2007.than in 2007.Major portion of this growth is within FPD market Major portion of this growth is within FPD market related optical film.related optical film.Further higher functionality with low shrinkage and Further higher functionality with low shrinkage and distortion properties are demanded by the display distortion properties are demanded by the display technology progressing.technology progressing.Further more, this technologies are progressing to nonFurther more, this technologies are progressing to non--FPD applications including Touch panel, OLED FPD applications including Touch panel, OLED lighting, and Solar Cell. lighting, and Solar Cell.

Industrial CoatingIndustrial Coating

Graphic ArtsGraphic Arts

20% 20% of the formulated chemical volume is for the graphic of the formulated chemical volume is for the graphic arts inks and OPV.arts inks and OPV.Challenging by the decrease in printed paper consumption Challenging by the decrease in printed paper consumption and antiand anti--excessive packaging campaign as well as recent excessive packaging campaign as well as recent domestic economic downturn.domestic economic downturn.In fact, the volume has grown 9% compare with in 2007.In fact, the volume has grown 9% compare with in 2007.For the offset UV inks and OPV, although the demand has For the offset UV inks and OPV, although the demand has been flat, the volume is still the second largest application been flat, the volume is still the second largest application in Japan.in Japan.UVIJ has been forecast to grow rapidly, however, to date, UVIJ has been forecast to grow rapidly, however, to date, it has failed to meet the expectation.it has failed to meet the expectation.

Photo ResistPhoto Resist

This segment includes; This segment includes; ““Printed Circuit BoardPrinted Circuit Board””, , ““LCDLCD””, , ““Plasma Discharge PanelPlasma Discharge Panel””, , ““SemiconductorSemiconductor””, and , and ““Printing PlatePrinting Plate””..

Around 38% of the total volume of formulated Around 38% of the total volume of formulated products are from this market.products are from this market.

The growth is dependent on the consumer demand The growth is dependent on the consumer demand for the consumer electric products.for the consumer electric products.

The major consumption for this segment is Rapid The major consumption for this segment is Rapid Prototyping and Adhesive applications.Prototyping and Adhesive applications.

Significant growth is LOCA (Liquid Optical Clear Significant growth is LOCA (Liquid Optical Clear Adhesive) for the air gap under the display surface Adhesive) for the air gap under the display surface glass, plastic, or touch panel due to control the glass, plastic, or touch panel due to control the incident light reflection scattering by the refractive incident light reflection scattering by the refractive index control.index control.

Other Market SegmentsOther Market Segments

Future Growth Market for UV/EB Progressing

Green TechnologyGreen Technology

FPD related Technologies Into

Other Markets

FPD related Technologies Into

Other Markets

Nano Litho GraphicNano Litho Graphic

In Molding Texture film Replacement from the

spray coating

In Molding Texture film Replacement from the

spray coating

Functional Plastic Film Technology Direction

Technology Progress

Valu

e　Pr

opos

ition

PrecisionCoating

PrecisionCoating

Multi-layerCoating on

Various Plastic Substrate

Multi-layerCoating on

Various Plastic Substrate

Polymer NetworkStructure Control

Including New various Patterning Method

Polymer NetworkStructure Control

Including New various Patterning Method

Moth Eye Film / UV Nano Inprint

Source: Mitsubishi Rayon Co. Ltd

Light

Clear Acrylic Resin

Height

Refractiveindex

The Incident light goes into the clear Acrylic resin without having the reflection on the interface. Since the refractive index gradient varies by the very small uneven surface, which is shorter than the light wavelength.

Low Reflection structure

Source: The Nippon Synthetic Chemical Ind. Co., Ltd　

Ultra Hydrophobic / Lipophobic Coating by UV Organic / In-Organic Hybrid Coating

4H Pencil hardnessHardness ○

ExcellentScratch resistance

100/100TAC film

100/100PET film

Adhesion

100/100Polyacrylate plate

100/100Polycarbonate plate

○Excellent

Fingerprints removability

○Excellentink removabilityStain

guard

UV-AF300Properties

SHIKOH UV-AF300UV curable hard coating with stain guard and removability

SHIKOH SHIKOH UUVV--AF3AF30000UV curable hard coating withUV curable hard coating with stain guard and removabilitystain guard and removability【Properties】

UV-AF300 is 4TH generation UV curable hard coating resinGood stain guard and easy removability especially in fingerprintsGood adhesion to various plasticsGood balance of high hardness and crosslink densityHigh scratch resistance

Optical photographs of droplet on UV cured surface; SHIKOH UV-AF300. (a) Water, (b) Oleic acid

Contact angle = 68ﾟContact angle = 108ﾟ

(b) Oleic acid(a) Water

Optical photographs of artificial fingerprint on UV cured surface and after wiping 3 times with Kimwipes.

After wipingFingerprintAfter wipingFingerprint

UV-AF300Conventional grade

Self-Healing UV Coating

【Properties】Extremely quick self-healingOne-component UV curable urethane 　acrylate oligomerSoft feeling surfaceGood adhesion to various plastics

Right after scratching

Laser scanning microscope Laser scanning microscope

Optical microscope Optical microscope

0～1 second later

2B Pencil

hardnessOn PETSurface

◎Excellent

Healing ability

100/100ABS

100/100PET film

Adhesion

100/100PC

UV-SH100Properties

Diluted in Ethyl acetate (Oligomer/Ethyl acetate=60/40)

SHIKOH SHIKOH UVUV--SH100SH100SelfSelf--HealingHealing UV Curable ResinUV Curable Resin

Source: The Nippon Synthetic Chemical Ind. Co., Ltd　

As transparent as glass, and zero optical strain Heat resistant to more than 200℃,

pencil hardness >3H (max. 7H) Light, tough, good workability Scratch-resistant, chemical-resistant

Glass-Like Plastic

Source: The Nippon Synthetic Chemical Ind. Co., Ltd　

SummarySummary

UV/EB market in Japan has been robust as under UV/EB market in Japan has been robust as under the 2011 triple disaster and negative global the 2011 triple disaster and negative global economic situation.economic situation.UV/EB market growth direction in Japan is higher UV/EB market growth direction in Japan is higher performance of cured film structure control into performance of cured film structure control into various industries based upon Green and Energy various industries based upon Green and Energy save environment.save environment.The development of new innovative UV/EB The development of new innovative UV/EB chemistry, equipment, and process applications chemistry, equipment, and process applications will continue to drive the future growth in the use will continue to drive the future growth in the use of UV/EB technology.of UV/EB technology.

AcknowledgementAcknowledgement

Appreciated for the support and information / data Appreciated for the support and information / data from from RadTech RadTech Japan members.Japan members.

Special thanks for:Special thanks for:Mr. T.Ogawa, The Nippon Synthetic Chemical Ind. Co., Ltd.Mr. T.Ogawa, The Nippon Synthetic Chemical Ind. Co., Ltd.Mr. N.Saito, JSR Corp.Mr. N.Saito, JSR Corp.Mr. M.Mr. M.TokudaTokuda, DIC, DICMr. S.Mr. S.UshikiUshiki, Taiyo Inks, Taiyo InksMr. K.Mr. K.OhtaOhta, BASF Japan, BASF JapanMr. T.Mr. T.SugaharaSugahara, Daiichi Kogyo Chem., Daiichi Kogyo Chem.Mr. T.Mr. T.MuraiMurai, Daicel, Daicel--CytecCytecMr. Y.Mr. Y.TominagaTominaga, , Tominaga Tominaga Corp.Corp.Dr. K.Ashikaga, Fusion UV Systems Japan KK.Dr. K.Ashikaga, Fusion UV Systems Japan KK.