Business Data and Charts 2014/2015 - PVCH · for more than 50 years. • Plastics production ramped...

Business Data and Charts 2014/2015Plastics Europe Market Research Group (PEMRG)Claus-Jürgen Simon Carolina HupferStatus: Dezember 2015

2

Contact:

Claus-Jürgen SimonCarolina HupferPhone: + 49 (0) 69 - 25 56 13 [email protected]@plasticseurope.org

This presentation contains forward-looking statements based on current assumptions and forecasts made by PlasticsEurope. The part of the monthly report is also based on official statistics by Eurostat and the European Commission.

Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the industry and the estimates given here. The association assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

This charts may be used to accompany reports on PlasticsEurope and the Plastics Industry provided the source is mentioned.

Commercial use and resale to third parties is prohibited.

“The Crisis and Beyond”Global Purchasing Managers´ Index (PMI)

3Source: J.P. Morgan, Markit – Global Manufacturing Index

30

35

40

45

50

55

60

65

70

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

June 200849.5

Dec 200833.7

April 2010 57.8

Feb. 2011 57.4

Nov. 201551.2

• North America and Europe continued to register solid

expansions of production in November.

• Output stagnated in China and Vietnam, and declined in

Taiwan, South Korea, Indonesia and Malaysia.

• A contraction was also signaled in Brazil.

• Price pressures remained on the downside during

November, with both input prices and output charges

falling during the latest survey month.

Global Crisis 2008/2009

Crisis in Eurozone 2011 - 2013

incr

ease

com

pare

d to

the

prev

ious

mon

th

no change compared to the previous month

decr

ease

com

pare

d to

th

e pr

evio

us m

onth

The Ifo World Economic Climate Indicator

* Quarterly data

• The assessment of the present situation deteriorates – mainly because the downward trend in China is stronger than expected

• However, a small majority of the expectations are still optimistic

• Risks from political crises and internal economical problems in Emerging-Markets countries are high

4Source: Ifo – World Economic Climate

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Present Situation Business Expectations

satisfactory/about the same

good/better

bad/worse

http://www.casperco.com/Ineos.jpg

Global GDP Growth Forecast European Union

Germany

NAFTA

Asia

Forecast date: 09.2015

BIP-Forecast

5Source: Eurostat, VCI, PlasticsEurope estimates for NAFTA and Asia

1.6% 1.6% 1.7%

0%

2%

4%

6%

2014 2015* 2016*

2.8%2.0% 2.0%

0%

2%

4%

2014 2015* 2016*

1.4%1.8% 1.8%

0%

2%

4%

2014 2015* 2016*

2.4% 2.4%

2.7%

0%

1%

2%

3%

4%

2014 2015* 2016*

5.0% 5.0% 5.5%

0%

3%

6%

2014 2015* 2016*

Vorführender

Präsentationsnotizen

Welt Die Aussichten für die Weltwirtschaft für sind gut. Getrieben wird dieses Wachstum vor allem von den guten Wachstumsraten in den USA. EU Im Euroraum bleibt es bei einer sehr schwachen Wirtschaftsentwicklung mit der Möglichkeit des Rückfalls in die Rezession. Besonders in Frankreich und Italien stehen die notwendigen Strukturreformen noch aus. USA Höhere Vermögenspreise, Beschäftigungsgewinne und der Wegfall fiskalischer Belastungen verbessern das Konsumklima. Im Zuge des steigenden Konsums erhöhen sich die Investitionen. Das mittelfristige Wachstumspotential ist aber noch gering. Asien In China versucht die Regierung mit Reformen die hohe Verschuldung abzubauen. Das hemmt kurzfristig das Wachstumspotential. Dagegen wirkt die expansive Geldpolitik, die ein Wachstum so um die 7% garantiert. Dies gefährdet gleichzeitig die Reformerfolg. Brasilien und Russland befinden sich in der Rezession. Deutschland Schaches 2. Quartal, Schwäche des EU Raumes wirkt sich aus. BIP Schätzung 2014 noch sehr optimistisch.

http://www.casperco.com/Ineos.jpg

Global Economic Development: What‘s next?

• The US economy remains the growth engine for the world in 2015 and 2016.

• The growth in China slows down.

• South and Latin America struggle with structural problems and the continuing weakness of the investment climate

• Structural adjustments in southern-European countries showed first positive effects in 2014.

• 2015/16: Global GDP growth will be moderate again.

6Source: VCI estimation for 2015 and 2016, Plastics Europe estimation for Asia and America

2014 2015* 2016*

World 2.4 2.4 2.7EU28 1.4 1.8 1.8Germany 1.6 1.6 1.7France 0.2 0.9 1.0Spain 1.4 3.1 2.8Italy -0.4 0.6 0.7UK 3.0 2.5 2.1Poland 3.4 3.5 3.1Asia 5.0 5.0 5.5China 7.3 6.8 6.3Japan -0.1 0.7 1.2South Korea 3.3 2.6 2.7India 7.1 6.9 7.0America 2.0 2.0 2.0US 2.4 2.4 2.4Brazil 0.2 -2.6 -0.4

Forecast date: 09.2015

Manufacturing production 2014 vs. 2013 in selected countries

• Production in manufacturing grew again in most European countries. Poland grew at an above-average rate

• Brazil’s production declined considerably

• Due to the economic sanctions the Russian manufacturing production stagnated

• The production growth in Asia was stable at a high level

7Source: FERI

9.0

5.5

4.6

2.72.1 2.0 2.0 1.9

0.4 0.1

-0.1 -0.1

-0.2

-4.3

-6

-4

-2

0

2

4

6

8

10Annual change in production index (2010=100); in %

World average: 3.8

Global Production of customer industries 2014-2016*

• 2015: The global growth rates of customer industries slow down

Reasons:

• The downshift of the Chinese economy

• The lower-than-expected growth of the US industry

• The ongoing recession in Russia and Brazil

• Remaining risks in the EU market

8

Plastics Processors refers to plastics and rubber productsSource: Chemdata, VCI estimation for 2015 and 2016 Forecast date: 09.2015

3.5

2.6

3.8 4.04.3

3.6 3.7

2.02.5

3.0

0.5

1.5

2.0

0.5

2.5 2.53.0

1.5

2.0 2.0

1.0

0

1

2

3

4

5

6

Cha

nge

in %

Annual change in production (2010=100)

2014 2015 2016

World Plastics Production 1950 – 2014

• Plastics are a global success story.

• Continuous growth for more than 50 years.

• Plastics productionramped up from 1.5 Mio t in 1950 to ~311 Mio t in 2014. In 2014 global plastic’s production grew by 3.8% compared to 2013

• Compound Annual Growth Rate (CAGR) from 1950 to 2014 is about 8.7%.

9

Includes Thermoplastics, Polyurethanes, Thermosets, Elastomers, Adhesives, Coatings and Sealants and PP-Fibers. Not included PET-, PA- and Polyacryl-FibersSource: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

Mio t

0

50

100

150

200

250

300

350

1950 1960 1970 1980 1990 2000 2010 2020

1950: 1.5

1977: 50

2002: 200

1989: 100

World

1950: 1.5

1977: 50

World

1950: 1.5

1977: 50

World

1950: 1.5

1977: 50

2009: 250

2011: ~280

2014: ~311

World

World Plastics Production 1950 – 2014

• Plastics are a global success story.

• Continuous growth for more than 50 years.

• Plastics productionramped up from 1.5 Mio t in 1950 to ~311 Mio t in 2014. In 2014 global plastic’s production grew by 3.8% compared to 2013

• Compound Annual Growth Rate (CAGR) from 1950 to 2014 is about 8.7%.

10

Includes Thermoplastics, Polyurethanes, Thermosets, Elastomers, Adhesives, Coatings and Sealants and PP-Fibers. Not included PET-, PA- and Polyacryl-FibersSource: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

Mio t

0

50

100

150

200

250

300

350

1950 1960 1970 1980 1990 2000 2010 2020

1950: 1.5

2002: 200

1989: 100

1977: 50

2009: 250

2011: ~280

2014: ~311

Europe

World

2014: ~59

World Plastics Material Production 2014 by Regions

• Asiawith the leading country China (26%) mean-while accounts for 47% of worldwide production.

• Europe and NAFTAare on a similar level each with a share of around 19%~20%.

• Due to the economic crisis, Europe lost global production shares.

11

*w/o Other Plastics (ncludes Thermosets, Elastomers, Adhesives, Coatings and Sealants and PP-Fibers. Not included PET-, PA- and Polyacryl-Fibers) = ~51 Mio tSource: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

NAFTA19%

Europe (WE + CEE)

20%

CIS3%China

26%

Japan4%

Rest of Asia16%

Latin America5%

Middle East, Africa

7%

260 Mio. t*

World Plastics Production by Regions

• Asiawith the leading country China (26%) mean-while accounts for more than 47% of worldwide production.

• Europe and NAFTAare on a similar level each with a share of around 19%~20%.

• Within a few years, China has risen to the most important plastics producer. All other regions lost global production shares

12

*w/o Other Plastics (ncludes Thermosets, Elastomers, Adhesives, Coatings and Sealants and PP-Fibers. Not included PET-, PA- and Polyacryl-Fibers), 2014 = ~51 Mio tSource: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

NAFTA19%

Europe (WE + CEE)20%

CIS3%China

26%

Japan4%

Rest of Asia16%

Latin America

5%

Middle East, Africa

7%

2014260 Mio. t*

NAFTA23%

Europe (WE + CEE)22%

CIS2%

China21%

Japan6%

Rest of Asia14%

Latin America

5%

Middle East, Africa

6%

2006205 Mio. t*

World Plastics Materials Demand 2014 by Types

• Polyolefinsaccount for more than 55% of global Plastics Materials demand.

• PVC is the second largest resin type following Polyolefins.

• Standard Plastics (Polyolefins, PVC, PS & EPS, PET) accountfor approx. 85% of thetotal demand.

13

*w/o Other Plastics (ncludes Thermosets, Elastomers, Adhesives, Coatings and Sealants and PP-Fibers. Not included PET-, PA- and Polyacryl-Fibers) = ~51 Mio tSource: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

LDPE, LLDPE17%

HDPE15%

PP23%

PVC16%

PS, EPS7%

ABS, ASA, SAN3%

PA1%

PC1%

PET7%

PUR6%

Other Thermopl.

4%

2014260 Mio. t*

WorldPlastics Materials Demand 2013– 2014

14

1) Fibres not included, only molding compounds 2) Including MDI, TDI, Polyol and Isocyanate Source: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

Demand in Mio t by type of plastic 2013 in 2014 Mio t Growth p.a.2013

– 2014e

PE-LD, PE-LLD 43.6 45.1 3.5%PE-HD 38.6 39.8 3.1%PP 56.5 58.9 4.3%PVC 38.9 40.5 4.1%PS 11.8 12 1.7%EPS 6 6.3 4.2%ABS, ASA, SAN, 7.6 7.9 4.1%

PA1) 3 3.2 5.2%PC 3.7 3.8 4.1%PET 18 18.9 4.8%

PUR2) 13.5 (16.3) 14.3 (17.0) 4.4%Other Thermoplastics 9.1 9.4 3.8%Total ~250 ~260 3.8%

WorldPlastics Materials Demand 1990 – 2019e

15

1) Fibres not included, only molding compounds 2) Including MDI, TDI, Polyol and Isocyanate Source: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

Demand in Mio t by type of plastic 1990 Mio t 2014 Mio t 2019e Mio t Growth p. a.

2014 – 2019e

PE-LD, PE-LLD 18.8 45.1 54.6 3.9%PE-HD 11.9 39.8 47.3 3.5%PP 12.9 58.9 72 4.1%PVC 17.7 40.5 49 3.9%PS 7.2 12 13 1.6%EPS 1.7 6.3 8.1 5.3%ABS, ASA, SAN 2.8 7.9 9.7 4.1%

PA1) 1 3.2 3.9 4.2%PC 0.5 3.8 4.5 3.5%PET 1.7 18.9 24.2 5.1%

PUR2) 4.6 (5.0) 14.3 (17.0) 18.1 (21.5) 4.8%Other Thermoplastics 2.8 9.4 11.4 3.9%Total ~83.6 ~260 ~316 4.0%

e = best estimate

World Thermoplastics Demand 2014 – 2019e

• In the recent past growth of Engineering Plastics strongly outpaced the growth of Standard Plastics

• The growth difference has nearly disappeared in the last few years

16

*PET Bottle grade **PET Injection gradeSource: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

0 5 10

ABS, SAN

PA

POM

PC

PBT, PET**

HP-Polymers

Ø Growth

Engineering Plastics

0 5 10

PP

HDPE

LDPE,LLDPE

PVC

PS

EPS

PET*

Ø Growth

Standard Plastics

CARG (%)

World Thermoplastics Demand by Types 2014

• Standard Plastics dominate the global market in tones

• Only 10 percent of the globally demanded plastics are Engineering plastics

• Polyolefins are the largest product group.Polyethylene: 35%Polypropylene: 24%

17

*PET Bottle grade **PET Injection gradeSource: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

PS; EPS8.2% PET*

8.5%

HDPE18.0%

PVC18.3%

LDPE, LLDPE20.4%

PP26.6%

Standard Plastics

221 Mio. t

POM5.3%

PBT, PET**6.2%

Others10.3%

Blends11.6%

PA14.1%PC

17.0%

ABS, SAN

35.4%


~ 24.3 Mio. t

World Benchmark Plastics / Steel 2014

18Source: Stahl-Zentrum/International Iron and Steel Institute (IISI), PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

• Plasticsin 1989, passed steel production by volume

Global Production 2014 :• Plastics:

311 Mio t = 311 billion litre

• Steel:1,662 Mio t = 208 billion litre

• Calculation Model:1 kg plastics = 1 litre8 kg steel = 1 litre

1950 1960 1970 1980 1990 2000 2010

Plastics

Steel*

Plastics production > Steel production

billion litre

50

100

150

200

250

300

Thermoplastics Classification 2014

• Standard Plastics include Polyolefins, PS, EPS, PVC and PET (Bottle grade).

• Engineering Plastics with improved perfor-mance at higher costs.

• High Performance Polymers permitting exceptional end-use-applications, specialized niche products at high costs.

19Source: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

amorphous structure semi-crystalline structure

StandardPlastics

EngineeringThermoplasticsTI = 100 - 150 °C

High PerformancePolymersTI > 150 °C

100 °C

150 °C

Capability by Temperature Index byUnderwriter Laboratories, USA

> 2,000 EUR/ton

> 4,000 EUR/ton

> 10,000 EUR/ton

PEEKFPLCPPPSPPA PA 46

PET (Injection)PBTPOMPA 6 PA 66

PPHDPELDPE LLDPE

PIPAIPEI

PESPSU

PPE mod.PC

PMMAPA 11 PA 12

ABS, SAN, ASA

EPS PSPET (Bottle grade) PVC

Triangle of Thermoplasticsby Structure, Capability and Price

Thermoplastics Classification 2014

• Standard Plastics are the basics materials.

• Polyolefinsare the largest product group.Polyethylene: 35%Polypropylene: 24%

• Engineering Plasticsare a small but valuable part of the market.

• High Performance Polymers are specialized for very demanding applications.

20Source: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

Triangle of ThermoplasticsClassified by Market Share

High Performance Polymers


PE34.6%

PP24.0%

PVC16.5%

PS & EPS7.4%

PET7.7%

~10% (~24.3 Mio t)

~90% (~221 Mio t)Standard Thermo-plastics

<1% (< 1 Mio t)

21

EU 28 Plastics Industry Structure 2014e

Source: Eurostat, PlasticsEurope Market Research Group (PEMRG), VDMA

Number ofCompanies

Number ofEmployees

TotalTurnover

~ 62,000 ~1,450,000 ~354 billion €

2014

59,011

2,573

2014

1,275,788

135,646

2014

249 bn €

92,6 bn €Plastics Producing Industry

Plastics Processing Industry

1) Most actual data for 2013, no data for 2014 available

1)990 Plastics Machinery53,000 12 bn €1)1)

22

EU 28 Public Finance and Welfare 2014

Corporate Tax 6.4 bn

Income Tax and Social Security Costs

20.7 bn

~ 27.1 bn

Generating about 27,1 billion euros for public finance and welfare, the European Plastics Industry is a pillar of economics and society

Source: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH

Europe Importance of the plastics sector

• The European plastics industry contributes 5 percent of the European industrial value added

• Total industry value added at factor cost: 1,650 billion. Euros

23

*Includes Plastics Producer, Converter and Machinery; measured by gross value added at factor prices; 2012Source: Eurostat, PlastcisEurope

Food and Beverages

13%

Textil1%

Chemical industry

7%

Pharmaceutical industry

5%

Plastics industry*

5%

Metal industry14%

Other15%

Mineral products

4%

Electro industry11%

Machinery12%

Automotive and transport

equipment13%

EU 28 Development of Sales 2006-2014

Plastics Producing:• Sales: -0.5% in 2014Plastics Processing: • Sales: +3.9% in 2014

Total Sales 2014• Sales: 342 bn €

24Source: Eurostat, PlasticsEurope Market Research Group (PEMRG)

107 111 108

84 88102 94 93 93

210220 216

183202

220 215

240249

0

50

100

150

200

250

300

2006 2007 2008 2009 2010 2011 2012 2013 2014

Sales(bn. Euro)

Plastics Producing Plastics Processing

EU 28 Development of Employment 2006-2014

Plastics Producing:• Employees: +1.7% in

2014Plastics Processing: • Employees: 1.6% in 2014

Total Workforce 2014• Employees: 1.4 million

25Source: Eurostat, PlasticsEurope Market Research Group (PEMRG)

184 171 139 137 134 134 136

1'349

1'200 1'240 1'280 1'250 1'254 1'276

0

200

400

600

800

1000

1200

1400

1600

2008 2009 2010 2011 2012 2013 2014

in 1000

Plastics Producing Plastics Processing

Europe Plastics Demand by Countries in 2014

• Demand Europe 2014: ~47.8 Mio t (+2.6% compared to 2013)

• Demand Europe 201346.5 Mio t

• Germany, Italy, France, Spain and UK covers ~64% of the European Market.

• Plastics demand in Western European countries increased by ~2.4%, while demand in Central European countries rose by ~4.0%in 2014.

26Source: PlasticsEurope Market Research Group (PEMRG) & in Cooperation with Eastern and Central European Business Development (ECEBD)/ Consultic Marketing & Industrieberatung GmbH

0 2000 4000 6000 8000 10000 12000

SwitzerlandNorway

United KingdomSweden

SpainSloveniaSlovakiaRomaniaPortugal

PolandNetherlands

LithuaniaLatvia

ItalyIreland

HungaryGreece

GermanyFranceFinlandEstonia

DenmarkCzech Republic

Cyprus/MaltaCroatia

BulgariaBelgium/Lux.

Austriak tonnes

2014

2013

2012

1011219637023354

1141519125551

459811880

609752274

6834153205

19493019801703468225

3533857

3681237785

27

• Demand Europe 2014:~47.8 Mio tdemand increased by 2.6%

• WE: 40.4 Mio t (+2.4%)• CE: 7.4 Mio t (+4.0%)

• Demand Europe 2013 46.5 Mio t

Europe Plastics Demand by Resin Types 2014

20142013

Source: PlasticsEurope Market Research Group (PEMRG) - for Central Europe in cooperation with my CEPPI and Consultic Marketing & Industrieberatung GmbH

0 3000 6000 9000

Others

PUR

Other ETP

PCS

PA

PMMA

ABS, SAN

PET

PVC

PS-E

PS

PP

PE-HD, -MD

PE-LD, -LLDin 1.000 tons

28

Europe Plastics Demand by Resin Types 2014

Development 2014 vs. 2013 (-/+)

Source: PlasticsEurope Market Research Group (PEMRG) - for Central Europe in cooperation with my CEPPI and Consultic Marketing & Industrieberatung GmbH

• Demand Europe 2014:~47.8 Mio tdemand increased by 2.6%

• WE: 40.4 Mio t (+2.4%)• CE: 7.4 Mio t (+4.0%)

• Demand Europe 2013 46.5 Mio t

0 3000 6000 9000

Others

PUR

Other ETP

PCS

PA

PMMA

ABS, SAN

PET

PVC

PS-E

PS

PP

PE-HD, -MD

PE-LD, -LLD

in 1.000 tons

20142013

4.0%

3.8%

3.8%

2.0%

3.8%

3.1%

6.4%

2.5%

0.7%

-0.9%

0.6%

4.2%

2.9%

0.8%

Europe Plastics Demand by Segments 2014

• Packaging and Building & Construction by far represent the largest end-use markets.

• The third biggest end-use market is the Automotive Industry.

• E & E accounts for 5.4%.

• Othersincludes consumer, agriculture, household, appliances, furniture, medical, etc.


Packaging40%

Building & Construction

20%

Automotive9%

E&E6%

Others26%

47.8 Mio t

EuropePlastics Demand by Segments 2014


Others

E&E

Automotive

Building & Construction

Packaging 40 %

20 %

9 %

6 %

26 %

PE-LD, PE-HD, PP PS PS-E PVC PET ABS, PMMA PA PCS Other PUR Others -LLD -MD SAN Eng.

Demand total: 47.8 Mio t


• Demand Europe 2014: ~47.8 Mio t (+2.6% to 2013)

• Demand Europe 201346.5 Mio t

• Germany, Italy, France, Spain and UK covers ~64% of the European Market.

• Plastics demand in Western European countries increased by ~2.4%, while demand in Central European countries rose by 4.0%in 2014.


Germany25%

Italy14%

France10%United

Kingdom8%

Spain7%

Poland6%

Belgium/Lux.5%

Netherlands4%

Others21%

47.8 Mio t


• The main consumer of plastics in primary forms are still located in Western Europe states

• steadily increasing enquiries from the Central European markets

• Poland is an important market for Plastics producer


Italy17%France

11%

Spain9%

Nether-lands5%

Others14%

Demand by WesternEurope

40.4 Mio. t

Germany30%

Poland41%

Demand by Central Europe

7.4 Mio. t

Bulgaria 5%

Slovakia6%

Romania10%

Hungary10% Czech

Republic15%

Others13%

Europe Plastics Demand by Segments in 2014

• The main segmentation of the consumer market is comparable in Central and Western Europe

• As a consumer industry packaging plays an even bigger role in Western Europe, while the automotive industry is more important in Central Europe


Packaging40%

Building & Const.20%

Automotive8%

E&E5%

Others26%

Demand by Western Europe

40.4 Mio. t

Western Europe

40.4 Mio. t

Packaging35%

Building & Const.21%

Automotive11%

E&E8%

Others25%

Demand by Western Europe

40.4 Mio. t

Cental Europe

7.4 Mio. t

EuropePlastics Demand 2004 – 2014

• During the economical crisis 2008/2009 the demand dropped stronglyby more than 15 percent compared to 2007

• The demand has not yet reached the pre-crisis level


47.8

46.545.9

47.146.6

44.4

48.0

52.4

50.8

48.1

43.9

20142013201220112010200920082007200620052004

in Mio. kg

Export Markets of the European Plastics Materials Industry* 2014

• The main export market of the European Plastics Producing Industry is Europe itself.

• Thus, the slow economic recovery and the increasing insecurities due to the Russia-Ukraine crisis in Europe hit the plastics producers especially hard.

35

*EU 28 Exports of Primary PlasticsSource: Eurostat

Europe 84%

NAFTA3%

Latin America2%

Asia9%

Others3%

EuropePlastics Demand for Packaging

• The European demand for Packaging was approx. 18,000 kt in 2013

• In 2013, the demand grew by 1.3 percent compared to the previous year

• The main polymers used for packaging are polyethylene, followed by polypropylene

36

*Others: PVC, ABS, SAN, ASA, PMMA, PA, PCS, PUR, other Plastics; ** in EU28Source: PlasticsEurope Market Research Group (PEMRG)

17.6

18.2

18.6

18.1

18.4

2009 2010 2011 2012 201317

17.2

17.4

17.6

17.8

18

18.2

18.4

18.6

18.8in 1000 kt

Local Demand**

2009-2013

PE-LD, LLD33%

PE-HD18%

PP20%

PS + PS-E6%

PET17%

Others*6%

Demand by Polymers

approx.18.400 kt

European Union (EU28) Plastics Industry Production

Source: Eurostat / PlasticsEurope Market Research Group (PEMRG)

Actual data status of Production: 10/2015

50

60

70

80

90

100

110

120

130

140

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Production Index(2010 = 100, Trend cycle data)

Plastics in Primary Forms Manufacture of Plastics Products Plastics Machinery

Plastics Industry Production trend by long term view (1992-2015):

• Long time series shows strong growth for production of Primary Plastics and Plastics Products during the 1990’s and a more sideways development from 2000 to 2005. Plastics Machinery shows a more fluctuating development in long-term view.

• After strong growth in all the three segments in 2006 and more constant development in 2007,the effects of the economical crisis are clearly recognizable in 2008 and first half of 2009.

• Economic recovery in all three segments lasted from mid 2009 to first half of 2011. Until the end of 2014, production quantities did not increase significantly.

Issue December 23, 2015 / Expiration 2016-01-15 / Slide 4



80

90

100

110

120

130

Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15

Index - Last 12 months(2010 = 100, Seasonally adjusted data)


50

60

70

80

90

100

110

120

130

140

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Production Index(2010 = 100, Trend cycle data)


Plastics Industry Production by short-term view (last 12 months):

• Primary Plastics production quantities had been on a highlevel in July and August 2015, but decreased in September and October.

• Plastics Products production quantities showed just minor ups and downs during the last 12 months.

• Plastics Machinery production develops more volatile in general. Nevertheless, from May to September 2015 production quantities remained on a clearly lower level compared to the months before.


Production Index (working day adjusted)Sectors Oct 15 Jan - Oct 15 Oct 15 Jan - Oct 15

Primary Plastics 98.7 100.6 -3.1 -3.0

Plastics Products 114.8 107.9 3.6 2.1

Plastics Machinery 109.7 103.8 -0.8 -0.8

Index 2010 = 100 y-o-y (%)



Production Index (seasonally adjusted)Sectors Jul 15 Aug 15 Sep 15 Oct 15



Plastics Machinery -0.3 -1.4 -2.3 8.2

Change in % against previous month

• After the time period from January to October 2015, production quantities in the Primary Plastics sector had been 3.0% lower compared to the same period in 2014. While July and August 2015 each showed slightly growing tendencies, September and October 2015 recorded decreasing tendencies.

• On the other hand, with +2.1%, production of Plastics Products from January to October 2015 was on a higher level compared to 2014.

• The Plastics Machinery segment recorded high output quantities in January and April 2015, but lower quantities in the following months. Total production after ten months in 2015 was slightly below (-0.8%) the level of 2014.


European Union (EU28) Manufacturing of Plastics Products


For the classification of the segments, see under "Definitions" on last page


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199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015

Index(2010 = 100, Trend cycle)

Manufacture of Plastics Products Plastic plates, sheets, tubes and profilesPackaging BuildersOthers

• From 2002 to 2005 production quantities of the Plastics Products sub-categories remained on a stable level.

• 2006 and 2007 showed clearly increasing production quantities, before the effects of the economical crisis are clearly recognizable in 2008 and first half of 2009.

• From mid 2009 to end of 2010 main segments of Plastics Products, except "Builders", have recovered strongly after the deep recession.

• 2011 and 2012 showed slightly decreasing trends for most of the Plastics Products sub-categories, followed by a growth in 2013 and a stable development in 2014.


European Union (EU28) Manufacturing of Plastics Products


Production Index (working day adjusted)

Sectors Oct 15 Jan - Oct 15 Oct 15 Jan - Oct 15


Plates, Sheets,Tubes and Profiles 105.7 102.8 2.8 2.0

Packaging 113.4 110.0 4.1 3.3

Builders 110.7 95.2 -2.3 -6.7

Others 122.0 114.2 5.9 4.5

Index 2010 = 100 y-o-y (%)

Production Index (seasonally adjusted)

Sectors Jul 15 Aug 15 Sep 15 Oct 15


Plates, Sheets,Tubes and Profiles -1.7 -1.2 0.7 0.4

Packaging -0.2 1.4 1.2 -0.1

Builders 2.7 1.7 -1.0 0.8

Others 0.4 -0.3 0.1 1.8


• Compared to 2014, total production quantities of Plastics Products from January to October 2015 had only been lower in the “Builders” segment. The other segments (“Plastics Packaging” as well as “Plates, Sheets, Tubes and Profiles” and “Other Plastics Products”) had been on a higher level compared to the same period in 2014.

• In July to August 2015, month-over-month comparison of production indices showed just minor changes for Plastics Products in total. September and October 2015 recorded slightly increasing tendencies.


European Union (EU28) GDP, Chemical and Plastics Industry

Source: Eurostat / European Commission / PlasticsEurope Market Research Group (PEMRG)

Actual data status: Q3/2015

5060708090

100110120130140150

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Index, Jan'06=100Manufacturing, Chemical and Plastics Industry

- Trend cycle, monthly -

Plastics Products Primary PlasticsChemical Industry Plastics MachineryManufacturing


• Uptrend in total Manufacturing and Chemical Industry especially in 2009 and 2010. After slightly decreasing tendencies in 2011 and 2012, slight upward trends had been recorded for both of the industry segments in 2013. The year 2014 and the first ten months of 2015 showed more stable production tendencies.

• The Primary Plastics segment showed a slightly decreasing production tendency in 2014 and beginning of 2015, while Plastics Products production remained more stable in total.

2 6002 7002 8002 9003 0003 1003 2003 3003 4003 5003 6003 700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

bn EuroGDP real

- seasonally adjusted, at 2010 prices, quarterly -

• Based on actual Eurostat data, the EU28 GDP increased by 1.4% in 2014, after stagnation (+0.2%) in 2013 and a 0.5% decline in 2012.

• For the third quarter of 2015, quarterly GDP data by Eurostat indicates another 0.4% growth compared to the second quarter.

• Actual GDP growth estimations for the EU28, published by the European Commission:2015: +1.9%; 2016: +2.0%


European Union (EU28) Plastics Customer Industries - Part I



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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Index, Jan'06=100Manufacturing, Automotive, Electrical Machinery

(Trend cycle, monthly)

Manufacturing Electrical Machinery Automotive

• The Manufacturing Industry in the EU28 countries slightly decreased in 2011 and 2012, but increased in 2013. A slight uptrend had been recorded at the end of 2014, while months from January to October 2015 remained very stable.

• The Automotive Industry recorded clearly growing production quantities during 2013. After a slight slowdown in mid 2014, production continued to grow until October 2015.

• After three years with primarily decreasing production tendencies in the Electrical Machinery Industry, a slight upward trend had been recorded during 2014 and the beginning of 2015.

• After ten months in 2015, industrial production activity in the EU28 manufacturing industry still remains below the pre-crisis level from 2008.


European Union (EU28) Plastics Customer Industries - Part II



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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Index, Jan'06=100Manufacturing, Construction, Food and Beverages

(Trend cycle, monthly)

Manufacturing Construction Food and Beverages

• The Construction Industry in the EU28 recorded a continuously decreasing trend from 2008 to 2012. In the second half of 2013, a slight upward trend had been recorded, followed by a stagnating tendency since the beginning of 2014.

• The Food and Beverages Industry was less hit by the recession than other industries and develops very stable in long-term view.


European Union (EU28) Plastics Customer Industries - Part III


• After the time period from January to October 2015, production quantities of the Electrical Machinery Industry (+2.6%) as well as in the Automotive Industry (+6.8%) had been on a clearly higher level compared to the same period in 2014.

• Output of the Construction Industry from January to October 2015 was slightly above the level of the previous year (+0.9%) and remains on a relatively low level in total.

• Month-over-month comparison of seasonally adjusted production indices showed slightly increasing tendencies for the total Manufacturing segment in July and October 2015.

Production Index (working day adjusted)

Sectors Oct 15 Jan - Oct 15 Oct 15 Jan - Oct 15

Manufacturing 113.1 105.8 2.5 1.9

Electrical Machinery 108.5 100.8 3.3 2.6

Automotive 136.3 124.0 12.3 6.8

Construction 105.8 94.0 1.2 0.9

Food & Beverages 108.5 102.0 -0.2 0.3

Index 2010 = 100 y-o-y (%)

Production Index (seasonally adjusted)

Sectors Jul 15 Aug 15 Sep 15 Oct 15

Manufacturing 0.4 0.0 0.0 0.5

Electrical Machinery -1.0 0.9 0.8 -0.8

Automotive 5.5 -6.5 4.1 4.2

Construction 0.3 -0.4 -0.2 0.1

Food & Beverages 1.0 0.3 -0.9 -0.6



European Union (EU28) Trade Primary Plastics


Intra EU Trade: Trade between the Member States of the European UnionExtra EU Trade: Trade of the European Union with Non-Member Countries

Actual data status of EU28 Trade: 08/2015(data for September 2015 not yet available by December 22nd, 2015)

Year Exports Imports

2008 23.8 13.92009 28.2 13.82010 26.8 14.82011 26.2 15.32012 27.2 15.22013 26.5 16.22014 27.0 16.1

2015YTD 08 25.8 15.9

Extra EU Trade - Primary PlasticsShare in Total (%)

• From mid 2011 to August 2015, total Import quantities of Primary Plastics showed a very slightly – but continuously – increasing trend. Total Export quantities of Primary Plastics showed a growth from the beginning of 2013 until the beginning of 2015.

• From January to August 2015, the share of Primary Plastics Exports to Non-EU countries (25.8%) was below the level of the years 2009-2014. Also the share of Imports from Non-EU countries (15.9%) was slightly lower compared to the years 2013 and 2014.

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Trends in EU28 Trade with Primary Plastics(Mio tons, Trend cycle, monthly)

EU28 Total Exports (Intra+Extra EU)EU28 Total Imports (Intra+Extra EU)EU28 Extra Exports (Extra EU)EU28 Extra Imports (Extra EU)


Year Exports Imports

2008 21.3 12.82009 20.2 12.82010 21.6 13.52011 21.7 15.52012 22.6 15.32013 22.5 16.02014 22.1 16.9

2015YTD 08 21.1 17.2

Extra EU Trade - Plastics ProductsShare in Total (%)

European Union (EU28) Trade Plastics Products


0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Trends in EU28 Trade with Plastics Products(Mio tons, Trend cycle, monthly)

EU28 Total Exports (Intra+Extra EU)EU28 Total Imports (Intra+Extra EU)EU28 Extra Exports (Extra EU)EU28 Extra Imports (Extra EU)

• While Import quantities of Plastics Products remain more or less stable since the beginning of 2014, total Export quantities showed an increasing trend until the first quarter of 2015.

• From January to August 2015, the share of Plastics Products Exports to Non-EU countries (21.1%) was below the level of the years 2010-2014.

• On the other hand, the share of Imports from Non-EU countries showed an increasing tendency over the last years and exceeded 17% after the time period from January to August 2015.

Intra EU Trade: Trade between the Member States of the European UnionExtra EU Trade: Trade of the European Union with Non-Member Countries



European Union (EU28) Trade Balance with Non-Member Countries


+ 0.0

+ 0.1

+ 0.2

+ 0.3

+ 0.4

+ 0.5

+ 0.6

+ 0.7

+ 0.8

+ 0.9

+ 1.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

(+ Surplus, - Deficit)EU28 Plastics Industry: Trade Balance with Non-Member Countries

(Mio tons, Trend cycle, monthly)

Primary Plastics Trade Balance (Extra EU)

Plastics Products Trade Balance (Extra EU)

Year Primary Plastics Plastics Products

2008 + 6.44 + 1.102009 + 8.96 + 0.902010 + 8.33 + 0.942011 + 7.60 + 0.902012 + 8.18 + 1.002013 + 7.10 + 0.952014 + 7.90 + 0.80

2015YTD 08 + 5.05 + 0.50

Extra EU28 Trade Balance (Mio tons)(+ Surplus, - Deficit)

• Last years showed a quite volatile trend for the Primary Plastics trade surplus.

• The trade surplus of the EU28 Primary Plastics Industry in 2014 exceeded the level of 2013.

• In the last years, the Plastics Products trade surplus varied just slightly around a level of 0.9 to 1.0 Mio. tons, but fell below this range in 2014 with around 0.8 Mio. tons.



European Union (EU28) Outlook Manufacturing of Plastics Products

• Production trend observed in recent months became slightly weaker over the course of 2014, but increased again in mid 2015. The latest November 2015 index remains positive.

• The business outlook for the months ahead (production expectations) remained positive in 2014 and 2015 so far. The November 2015, the index (+15) remains on a high level.


-80

-60

-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

balance in %

Balance of positive and negative answers, seasonally adjusted(+ increasing production, 0 remain unchanged, - decreasing production)

Production expectations for the months ahead (3 - 6 months)

Production trend observed in recent months

The business surveys includes the EU28 Plastics Products Industry (incl. Rubber).


Actual data status: 11/2015

Dec 14 10Jan 15 10Feb 15 6Mar 15 9Apr 15 9May 15 13Jun 15 12Jul 15 14Aug 15 12Sep 15 17Oct 15 16Nov 15 15

Production Expectations l balance in %

European Union (EU28) Plastics Industry Producer Prices

• After a decrease of Primary Plastics prices at the end of 2014 and beginning of 2015, prices grew again until July 2015. During the following months, prices recorded a decreasing tendency again.

• During 2013 and 2014 prices for Plastics Products remained very stable. Time period from April to October 2015 recorded a slightly growing price tendency.

• Plastics Machinery prices developed more or less stable during 2012 and 2013. The year 2014 recorded some diverging tendencies on a high level. In 2015, the price index reached another peak in October 2015.

Producer Prices: Total Output Prices (Domestic Market + Foreign Market)


Actual data status for Producer Prices: 10/2015

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100

105

110

115

120

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Index(2010 = 100, Monthly)

Plastics in Primary Forms Plastics Products Plastics Machinery


European Union (EU28) Plastics Industry Producer Prices


Producer price index (cumulative)Sectors Oct 15 Jan - Oct 15 Oct 15 Jan - Oct 15


Plastics Products 106.8 106.2 0.5 -0.2

Plastics Machinery 114.3 111.7 6.6 3.4

Producer Prices: Total Output Prices (Domestic Market + Foreign Market)

Index 2005 = 100 y-o-y (%)

Producer price index (monthly)Sectors Jul 15 Aug 15 Sep 15 Oct 15

Primary Plastics 0.4 -1.1 -1.6 -1.6

Plastics Products 0.5 0.2 -0.1 -0.3

Plastics Machinery -0.3 0.0 -0.7 1.7


• Primary PlasticsCompared to 2014, Primary Plastics prices from January to October 2015 had been 2.1% lower.

• Plastics ProductsIn total, Plastics Products prices from January to October 2015 had been on a slightly lower level (-0.2%) compared to the same period in 2014. Month-over-month comparison of price indices showed growing tendencies in July and August 2015, but slightly decreasing tendencies in September and October.

• Plastics MachineryIn total, Plastics Machinery prices from January to October 2015 recorded an increase of 3.4% compared to 2014. Month-over-month comparison showed just slight changes in July, August and September 2015, followed by a 1.7% increase in October.


Plastics IndustryExamples of Restructuring, M&A

52Source: Plastics Europe; Kunststoffweb

PPS

EVA

ASE

PVC Ineos (CH) and Doeflex Compounding (UK) merged their PVC-compound activities. The cooperative venture operates under the name Ineos Compounds and produces in UK, Switzerland and Sweden.

Additive In the wake of the realigned corporate strategy, Lanxess(D) merged the additive activities in the corporate division “Rhein Chemie Additives” and integrated “Keltan Elastomers” in the business unit “High Performance Elastomers”

Borealis (AT) acquired joint venture partner DuPont’s (US) shares of Speciality Polymers Antwerp NV. Speciality Polymers Antwerp NV will continue to supply DuPont with EVA and copolymers of acrylates.

Solvay (BE) acquired Chevron Phillips Chemical’s “Ryton” polyphenylsulphone (PPS) segment.The business will be fully consolidated in Solvay’s business unit “Specialty Polymers”.

PVC Vestolit (D) was taken over by Mexichem (MX). The acquisition highlights Mexichem’s strategy to become a integrated worldwide provider of PVC products. Vestolitwill be managed in Germany.

http://de.wikipedia.org/w/index.php?title=Datei:Vestolit_logo.svg&filetimestamp=20080824160029&

Competitiveness - Oxford Economics

• Oxford Economics and the European Chemical Industry Council (cefic) started the project in 2013

• October 2014, the final report was released

• The purpose was to evaluate the competitiveness of the European chemical sector compared to other countries since 1991

• Identify the main drivers behind competitiveness and their influence

• Polymers, as a major sub-sector of the chemical industry, was also analyzed

53

Competitiveness - Oxford Economics

• The European chemical sector is the seconded-largest global chemical sector worldwide (€527 billion in sales 2013)

• The majority of the decrease in extra-EU export market share of the EU chemical sector observed over the last 20 years is due to declining competitiveness

• China, Saudi Arabia and India became equal competitors. Europe’s decline of competitiveness is lager than that of the USA in the chemical sector

• Polymers and Petrochemicals lost more competitiveness than any other chemical industry sector or sub-sector

• There are political and economic reasons for the decrease in export market share, such as high energy costs, lagging innovations, currency appreciation, high labor costs, regulatory and tax burdens

54

Drivers of chemical competitiveness

Energyprice

R&D/ Innovation short-term

R&D/ Innovation long-term

Sector investment

Labor cost

Chemical industry --- / +++ ++ -Basic inorganics / +++ +++++ / -Petrochemicals ----- ++ ++ ++ -Polymers -- / +++ ++ /Specialty chemicals -- + ++ + -Consumer chemicals / ++ / + -

Pharmaceutical industry / + +++ + -Plastics products -- +++ +++ + -

55

Statistical relationship; + = positive influence; - = negative influence; quantity = statistically significance; / = statistically insignificant

For the whole industry statistically significant relationships between the changes in competitiveness and energy prices, R&D, investment and labor costs were identified.

Source: Oxford Economics, Haver Analytics, Cefic

Vorführender

Präsentationsnotizen

Factors that are important to industrial competitiveness. Main results: The competiveness of the European polymer sector is highly positive influenced by long-term innovation and sector investments. However, high energy prices are worsening the competiveness. The competiveness of the European polymer sector is highly positive influenced by both, short and long-term, innovation as well as sector investment. High energy prices and labor costs are worsening the competiveness. Guidance for the table: += competiveness rise if the driver is raised = competiveness decrease if the driver is raised quantity: how strong the influence is Some Extra information: Natural gas: Since mid-2000 prices decreased in the US Europe & Japan have to deal with strongly rising prices Electricity: Since 2000, the electricity price in Germany increased by 8.5 p.a., due to political intervention US: 0.4 p.a. R&D: Since 1995 global R&D spending has tripled (1995: 38.8 Bio. Euro; 2013: 112.2 Bio. Euro) 1995: 92% came from EU28, USA, Japan 2013: 64% came from EU28, USA, Japan R&D intensity: In the mid- 1990 the German chemical industry started reducing the share of sales re-invested in R&D

Europe (EU 28)Competiveness of Polymer Industry

• Europe lost export market share, due to losses of competitiveness

• Since 2003 the European polymers could profit from a positive structural effect

• Nevertheless, the global export market share diminish from 17% in the early 2000s to 13% in 2012

• Reasons for the ebbing competitiveness are lower feedstock and energy prices in US and Saudi-Arabia

56Source: Oxford Economics, Haver Analytics, Cefic

Europe (EU 28)Competiveness of Polymer Production

• Over all three periods polymers lost export market share due to ebbing competitiveness. Since the crisis, this trend gains momentum

• Only Petrochemicals lost more export competitiveness


Europe (EU 28)Competiveness of Plastics Products

• 1991, the European export market share for plastics products was 22%. Until 2012 only 14.8 % were left

• Growing demand outside of Europe explains the positive structural effect since 2000

• As well as polymers, plastics products suffer from lower feedstock and energy prices outside Europe


Europe (EU 28)Competiveness of Plastics Products

• Similar development as polymers

• Loses of export competitiveness since the early 90s

• Positive structural effect since 2000. The effect lessened after the crisis started


Drivers of Competiveness Natural gas prices

• The shale gas boom in the US has opened up a wide gap in natural gas costs relative else where in the world

• US prices are now just one-third of European levels

• Japan is in a worse situation, because the reduction of nuclear energy capacity in the wake of the Fukushima disaster has dramatically increased demand for fossil-fuelbased electricity generation.


Drivers of Competiveness R&D spending

• There has been a secular decline in chemical sector R&D intensity over the past 20 years in the developed world, although patterns in individual countries vary

• But perhaps the most surprising trend is China, where R&D intensity increases dramatically in the early 2000s as China entered the WTO


Drivers of Competiveness Business regulatory burden, 2013

• The EU still has a heavier burden than all other major countries except Brazil.

• The US regulatory burden has become heavier over the past seven years


Europe (EU 28 + 2)Recovery of Plastics Waste 2014

63Source: Consultic Marketing & Industrieberatung GmbH

RDF/SRF*

~3,681 kt(14.2%)

Recovery

17,872 kt (69.2%)

Energy recovery

10,215 kt (39.5%)

Plastic Post-Consumer Waste Treatment in Europe 2014

Post-Consumer Waste

25,832 kt (100%)

Disposal

7,960 kt (30.8%)

Recycling

7,657 kt (29.6%)

Landfill

7,932 kt (30.7%)

Mechanical recycling

7,560 kt (29.3%)

MSWI

~6,534 kt (25.3%)

Feedstock recycling

97 kt (0.4%)

Incineration without EfW**

~ 29 kt (0.1%)

Recovery Rate: 69.2%(63.5% / 59.6% / 57,7% / 54,3%)***

• Recycling Rate 29.6%(27.6% / 25.1% / 24,3% / 22,7%)***

- Mechanical Recycling 29.3%(27.3% /24.8% / 24,0% / 22,5%)***

- Feedstock Recycling 0.4%(0.3% / 0.3% / 0,3% / 0,3%)***

• Energy Recovery 39.5%(35.9% / 34.5% / 33,5% / 31,5%)***

Disposal Rate: 30.8%(36.5% / 40.4% / 42,3% / 45,7%)***



13.8%18.1%20.0%18.8%

24.2%28.1%

26.0%21.4%

25.5%33.7%

24.6%36.9%

30.9%28.6%27.0%

32.7%21.3%

34.3%34.1%

20.1%37.2%39.7%

31.2%33.7%

28.5%37.8%37.9%

30.3%28.0%

24.5%

13.8%18.1%

20.2%24.4%

28.0%32.5%

40.8%42.9%44.1%

49.6%49.8%

54.6%55.8%

59.2%59.9%60.5%

63.6%69.4%

77.0%81.9%82.5%

96.3%97.0%97.6%97.8%98.4%99.1%99.2%99.6%99.8%

0% 20% 40% 60% 80% 100%

MaltaCyprusGreece

BulgariaCroatia

LatviaRomaniaHungary

PolandSpain

LithuaniaCzechiaSlovakia

UKItaly

PortugalFrance

SloveniaEstoniaFinlandIreland

NorwayBelgium

DenmarkLuxembourg

SwedenGermany

NetherlandsAustria

Switzerland

Countries with

landfillban

9 countries in Europe reached a recovery ratio of more than 95% of the Post-consumer Plastic Waste.

These countries have a landfill ban.

Also 6 of these countries are amongst the 11 countries with the highest recycling rates (>30%).

Therefore „divert from landfill“ boosts higher recovery and recyclingquantities, also of waste streams, which have not been recovered so far.Overall recovery ratio

by weight for EU 28+2:69.2%(referred to Post-Consumer Plastic Waste) Recycling

Energy recovery



24.5 24.6 24.9 24.1 24.5 24.8 24.825.8

11.7 12.2

12.7 13.114.2 15.0 15.8

17.9

4.7 5.0 5.2 5.5 6.0 6.3 6.9 7.77.0 7.2 7.4 7.68.2 8.7 8.9

10.2

12.9 12.4

12.111.0

10.4 9.9 9.0

8.0

0 Mio. t

5 Mio. t

10 Mio. t

15 Mio. t

20 Mio. t

25 Mio. t

30 Mio. t

Total WasteGeneration

Recovery

Recycling

EnergyRecovery

Disposal/Landfill

-10% 0% 10%

+2.1%

+6.3%

+6.7%

Development2006-2014

CAGR Development2014 vs. 2012

-10% 0% 10%

+0.6%

+5.5%

+6.4%

+4.8%

-5.8%

CAGR2006-2014

Total plastics waste and recovery 2006 - 2014

In the period 2006-2014 the analysis of waste generation shows a slight growth. Besides economical impacts, plastic parts with lower weight (e.g. plastic bottles) play a significant role in that process. After the economical crisis, the waste quantity rose from 2009 to 2014 by about 1.7 mill. tons during the last five years. While disposal quantities decreased by ~4.9 million tons in the last eight years, recovery quantities rose by 6.2 mio. tons up to 17.9 mio. tons.


66

Packaging15,94962%

Building/ Construction1,4586%

Automotive1,2565%

WEEE1,2915%

House wares, Leisure, Sports etc.

9243%

Agriculture1,3575%

Others (Furniture etc.)3,59714%

Packaging Building/ Construction Automotive WEEE House wares, Leisure, Sports etc. Agriculture Others (Furniture etc.)

Total post-consumer plastic waste by applicationEU28 + 2 2014 The chart shows the total

generation of post-consumer plastic waste by substantial applications for 28 EUcountries + Norway and Switzerland.

The total volume of available post-consumer waste arising in 2014 was about 25.8 million tons, compared to 24.8 million in 2012.

In terms of waste generation packaging with a share of ~62 % remains the largest plastics waste fraction in the European countries by far, followed by Building and Construction, Automotive, WEEE and Agriculture with shares between 5-6%.

68

Western Europe (WE) EU15 + CH + N ( + Malta + Cyprus)

Central Europe (CE) EU 10 ( - Malta - Cyprus) + Romania + Bulgaria

Standard Plastics PE, PP, PVC, PS, EPS, PET (Bottle grade)

Engineering Plastics ABS, SAN, PA, PC, PBT, POM, PMMA, Blends, Others incl. High Performance Polymers

PUR Polyurethanes

Thermoplastics Standard Plastics + Engineering Plastics

Plastic Materials Standard Plastics + Engineering Plastics + PUR

Plastics Plastic Materials + Others (Thermosets, Adhesives, Coatings, Sealants)

Elastomers Synthetic Elastomers (SBR, IR, IIR, BR, NBR, CR, Others)

Fibres PA, Polyester, Acrylic, Other Synthetic Fibres

Synthetic Polymers Plastic Materials + Fibres + Elastomers + Others(Thermosets, Adhesives, Coatings, Sealants)

Polymers Primary Plastics + Chemical Fibres + Rubber

Definitions (1)

Definitions (2)

Data Source: Eurostat, European Commission Economic and Financial Affairs (Business Surveys), Ifo, Markit, Chemical week, CMAI, FERI, VCI for estimations on development of GDP, branches and chemical segments.

Classification of Economic Activities: Nace Rev.2 Classification of Eurostat

Sectors of the plastics industry are classified by the following NACE codes: C2016 (Plastics in Primary Forms), C222 (Manufacture of Plastics Products), C2221 (Plates, Sheets, Tubes and Profiles), C2222 (Packaging), C2223 (Builders), C2224 (Others), C2896 (Plastics Machinery incl. Rubber)

NACE codes for industries according to VCI classification : C (Manufacturing), C10 (Food products), C20 (Chemical Industry excl. pharmaceuticals), C22 (Plastics and Rubber Products) = Plastics Processors, C26 (Manufacture of computer, electronic and optical products), C27 (Electrical equipment), C28 (machinery), C29 (Automotive), F (Construction)

NACE codes for chemical sectors according to VCI classification: C2014 (Petrochemicals), C204 (Consumer chemicals), C2011/C2013/C2015 (Basic inorganics), C2012/C202/C203/C205 (Specialty chemicals), C2016/C2017/C206 (Polymers), C2016 (Primary Plastics)

In January 2013, Eurostat has changed to base year 2010 for production indices. Production index is presented as working day adjusted and "Trend-cycle“. The Trend-cycle is calculated by smoothing averages from working-day and seasonally adjusted data. For the production forecast, figures have been seasonally adjusted by using the FERI add-in.

PMI: The Purchasing Managers Index by Markit is derived from monthly surveys of private sector companies. It includes over 30 countries. PMI is a very important sentiment reading.

GDP real: Gross Domestic Product at 2000 prices and exchange rates, seasonally adjusted

Ifo World Economic Climate: Since 1981 the Ifo Institute has conducted a quarterly survey in numerous countries on business cycle developments and other economic factors in the experts’ home countries. The January 2013 survey received responses from 1,169 experts in 124 countries.

69

Definitions (3)

Data Source: Eurostat, European Commission Economic and Financial Affairs (Business Surveys)

Classification of Economic Activities: New Nace Rev.2 Classification of Eurostat since 2009

Sectors of the plastics industry are classified by the following NACE codes: C2016 (Plastics in Primary Forms), C222 (Manufacture of Plastics Products), C2221 (Plates, Sheets, Tubes and Profiles), C2222 (Packaging), C2223 (Builders), C2224 (Others), C2896 (Plastics Machinery incl. Rubber)

Main plastics related industries NACE codes: C10_12 (Food and Beverages), C20 (Chemical Industry excl. Pharmaceuticals), C26_27 (Electrical Machinery), C291 (Automotive), F (Construction)

Production index (base year 2005 = 100) is presented as "working-day-adjusted" and as "Trend-cycle“. The Trend-cycle is calculated by smoothing averages from working-day and seasonally adjusted data. Eurostat uses statistically and internationally accepted methods (Census X-12) for the seasonal adjustment of time series. With first publication of production indices for 2012, Eurostat changed from a direct to an indirect method of seasonal adjustment. The new method is applied to the complete time-series of production indices. This also affects data before 2012.

The producer price index for the plastics industry (base year 2005 = 100) measures the average price development of all goods resulting from that activity that are sold on the domestic market and foreign markets. The producer price index for the plastics industry is divided by Nace C2016 (Plastics in Primary Forms), C222 (Manufacture of Plastics Products) and C296 (Plastics Machinery incl. Rubber)

GDP real: Gross Domestic Product at 2000 prices and exchange rates, seasonally adjusted

Business Surveys: The results of the business surveys are based on representative samples of companies in the EU27 Plastics Products Industry (incl. Rubber Industry). Managers' answers obtained from the surveys are aggregated in the form of "Balances". Balances are constructed as the difference between the percentages of respondents giving positive and negative replies. The EU Commission seasonally adjusts the balance series.

Source: Eurostat / PlasticsEurope Market Research Group (PEMRG) 70

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