HEMPEL (HELLAS) S.A. 8-10, Stravonos Str. & 152 Vouliagmenis Ave. 166 74 Glyfada GREECE Dear Customers and Bus<strong>in</strong>ess Partners The year 2007 is reach<strong>in</strong>g its end, br<strong>in</strong>g<strong>in</strong>g several news and matters of <strong>in</strong>terest to you. It is perhaps time to look back and evaluate past challenges and accomplishments. We would like you to get acqua<strong>in</strong>ted with the hottest news from our product portfolio as well as with actual topics related to your bus<strong>in</strong>ess which you could be <strong>in</strong>terested <strong>in</strong>. The same way as last year we now have the pleasure to confi rm that <strong>Hempel</strong> has succeeded <strong>in</strong> meet<strong>in</strong>g its bus<strong>in</strong>ess goals. Expressed <strong>in</strong> numbers our company has <strong>in</strong>creased its turnover by 19% and has supplied our customers 9% more coat<strong>in</strong>gs, which has led to an result of 244 million litres of pa<strong>in</strong>ts sold <strong>in</strong> the year 2006. This great achievement was <strong>in</strong>fl uenced ma<strong>in</strong>ly by a fast growth of the Protective segment. Its <strong>in</strong>crease from last year results reached almost 30%. The growth was especially strong with<strong>in</strong> the Oil & Gas and W<strong>in</strong>d Turb<strong>in</strong>e sub-segments, attest<strong>in</strong>g <strong>Hempel</strong>’s lead<strong>in</strong>g position <strong>in</strong> these market areas. <strong>Hempel</strong>’s stable growth, does not <strong>in</strong>duce negligence towards future challenges. For the next fi ve years our company has set a new strategy called One <strong>Hempel</strong> – Everywhere. Its goal is to adapt the fast chang<strong>in</strong>g market conditions, standardize technology and procedures and <strong>in</strong> this way even more improve our work and effectiveness. Our ability to take decisive action <strong>in</strong> the face of new opportunities is our acquisition of Germany’s Lacor, a goal we worked towards throughout 2006. This acquisition is among the fi rst steps of the One <strong>Hempel</strong> - Everywhere philosophy and it shows clearly that <strong>Hempel</strong> will act courageously <strong>in</strong> order to meet the objectives. The acquisition gives us the opportunity to extend our targets <strong>in</strong> Germany and Central Europe and to strengthen our coverage of this market signifi cantly. Dur<strong>in</strong>g 2007, we launched new coat<strong>in</strong>g systems for all types of Infrastructure projects: HEMPADUR 47960, HEMPADUR MASTIC 4588W and HEMPATHANE HS 55610. By us<strong>in</strong>g these coat<strong>in</strong>g systems, our customers optimize their productivity, and comply fully with the strictest environmental legislation, due to the low VOC content of the products. Hand <strong>in</strong> hand with EU solvent emission directive 1999/13EC (SED) we also br<strong>in</strong>g solutions to our customers with a wide range of waterborne coat<strong>in</strong>gs. These are compliant with the EU regulation and offer excellent properties for your projects. The last but actual topic for both <strong>Hempel</strong> and its customers is the launch of new European REACH legislation. It br<strong>in</strong>gs a duty to register, evaluate and authorize all the chemicals for all manufacturers, producers and distributors who will produce more than 1 t of chemicals per year. However, HMP is prepared for this new situation with both upstream and downstream communication towards its customers. We hope that this issue will br<strong>in</strong>g you <strong>in</strong>formative <strong>in</strong>put, important data and contacts which will be relevant for your future projects. Sales Director Protective Recommended for Infrastructure projects <strong>Hempel</strong> <strong>in</strong>troduces new high productivity pa<strong>in</strong>t systems <strong>Hempel</strong> has come out with a range of new anticorrosive systems especially developed for steel structures such as stadia, exhibition halls, production and storage halls, cranes, airports, bridges, or supermarkets. Thanks to the most modern products and technologies used, the systems feature excellent application properties. Besides long last<strong>in</strong>g protection, these systems also focus on qualities that can br<strong>in</strong>g extra benefi ts to our customers by means of high productivity, fast application processes and low VOC emissions. Less Les Pa<strong>in</strong>t t Consumption Consumpt The coat<strong>in</strong>gs s have have high high vo volume solids solids, which whic hich ch results <strong>in</strong> lower pa<strong>in</strong>t consumption. cons nsumption. Compared Compared to standard ndard low low volume volum volume e solid pa<strong>in</strong>ts the new <strong>Hempel</strong> l systems syst stems ms achieve h up to 27% less le less pa<strong>in</strong>t consumption. co cons nsumption. Faster FFast aster r application aap pp pppliccation Optimization Optim imiza mizati atio on n of of f prod production duction is is also also reached reached due due to fast cur<strong>in</strong>g cu cur<strong>in</strong>g and dry<strong>in</strong>g g of of the th the e n nne new ew eww pro products ducts s even at aat low temperatures. This This makes makes th the application application nprocess process ocess s54 54% 54 4% % faster fas faste st teer on oon n average, avera a ge, not not to to mention mention th that that at t ccosts costs co associated associated with trans transportation sportation atio ation a and d storag storage rage are are also also m<strong>in</strong>im m<strong>in</strong>imized. miz mized. Meet<strong>in</strong>g M environm environmental mental legis legislation ion on A benefi bene efi fit t is is the th the fact fact ct tha that that the the new new H <strong>Hempel</strong> empel s systems release elease as se u up p to to 52 52% 2% less lessVo Volatile Organic O Compounds mp (VOC) (VOC <strong>in</strong>to the atmosphere phere re than ha han n standard sta dard type pa<strong>in</strong>ts, pa<strong>in</strong>ts, pa<strong>in</strong>ts nts, which makes makes mak them them fully fully fu compliant with h the the e strictest current current EU EU regulations regulations conc concern<strong>in</strong>g cern<strong>in</strong>g n<strong>in</strong> such such com compounds without the necessity necessity of of tak<strong>in</strong>g tak<strong>in</strong>g any any further further mmeasures. measur easures. asu HEMPADUR 47960 The new fast dry<strong>in</strong>g epoxy primer/mid-coat, also suitable for one coat selfprim<strong>in</strong>g top-coat at low corrosion classes. Conta<strong>in</strong>s z<strong>in</strong>c phosphate. HEMPADUR MASTIC 4588W The new fast-dry<strong>in</strong>g epoxy primer/mid-coat, witch forms a hard and tough coat<strong>in</strong>g, has good wett<strong>in</strong>g properties and low temperature cur<strong>in</strong>g. HEMPATHANE HS 55610 The new top-coat polyurethane with good gloss and colour retention, suitable for protection of newbuild or ma<strong>in</strong>ta<strong>in</strong>ed steel structures. 27% less pa<strong>in</strong>t consumption 52% less VOC released 88 2 388