1. © Copyright 2003 Frost & Sullivan. All Rights Reserved. The World Machine Tools: Cutting Tools Market Customers Demand Optimal Tooling Solutions Auto/ID Security Group “Companies are always looking to increase the productivity of end user companies by reducing their cycle times and reducing the costs of cutting metals. This is seen to be the major reason for the popularity of carbide tools.”

2. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Industry Trends In metal cutting the major technological trends are driven by the need to make tools last longer and cut faster. Hence there has been increased attention toward new materials and coatings Environmental concerns are causing companies to use more dry machining or semi-dry machining since it eliminates or restricts the use of coolants In the metal forming sector, super plastic forming is being used to form net-shaped, complex structures In the metal finishing segment most vendors are shifting to CBN as the abrasive of choice for finishing and superfinishing operations

3. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Industry Trends (Cont’d) Customers’ demand for reducing their cost and cycle time challenges tooling manufacturers to optimize the tooling solutions Globalization of world economies curbs the growth of the small North American and European companies Consolidation in the metal cutting industry forces smaller companies rethink their competitive strategies Difficult-to-machine metals used by the end user are stimulating the tooling companies to provide tooling solutions to meet this need gap

4. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Detailed insights into recent developments and trends Drivers, restraints, challenges, and strategic recommendations Analyst insights on ‘hot topics’ and emerging applications in the market Market sizing and competitive analysis Market forecasts and opportunity analysis

5. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What We Offer In-depth analysis of key end-user segments, major technologies, and regional analysis Proven methodology encompassing extensive primary and secondary data and research covering major cutting tool companies, end-user companies and products Credible revenue forecast based on accurate data and analysis that helps you to formulate right marketing strategies A detailed analysis of current market trends Comprehensive understanding of the machine cutting tools industry, market dynamics and strategic recommendations that help you formulate better business decisions

6. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants  Find out how you compare to the competition  Assess current and future drivers and restraints  Determine and exploit new market share opportunities New Entrants  Analyze challenges associated with the industry  Gauge your performance in comparison to players  Foresee what are the factors for success from other new entrants Investment Community  Analyze long-term strategies of machine tools / cutting tools companies  Determine which participants will outperform the competition  Assess attractiveness of investing in the machine tools / cutting tools market

7. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What’s Included Market drivers, restraints and challenges Market analysis with information on geographic region, technology and end-user groups and product type Pricing and distribution analysis Revenue forecasts by product type, end user and geography Frost & Sullivan Awards for deserving companies

8. © Copyright 2003 Frost & Sullivan. All Rights Reserved. 3M Abrasives Systems Amada America Guhring, Inc. Hemes IMC (Iscar and Ingersoll) Kennametal, Inc. Komet of America Kyocera Mate Precision Mitsubishi Materials Corp. Nachi Nagel Precision, Inc. Noritake Co., Ltd. Key Market Participants OSG Tap and Die, Inc. Radiac Abrasives Saint Gobain Abrasives Sandvik Seco-Carboloy SIA Sumitomo Carbide Sunnen Products Co. Toshiba Trumpf Tyrolit VSM Wilson Tooling International

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