PU Flexible Foam Market Report Europe Ward Dupont EUROPUR President Europur General Assembly Vienna June 2014 1
SLABSTOCK FLEXIBLE FOAM MARKET REVIEW I. General economic outlook II. 2013 Slabstock production volumes Raw material prices III. The main markets Upholstered furniture Bedding Automotive Europur General Assembly Vienna June 2014 2
SLABSTOCK MARKET REVIEW ECONOMIC OUTLOOK EU-28 GDP - GROWTH Source: DG ECFIN Europur General Assembly Vienna June 2014 I. General economic outlook 3
SLABSTOCK MARKET REVIEW I. USA- JAPAN China EU28 KEY ECONOMIC INDICATORS GDP GROWTH ( % ) Inflation (%) Unenmployment rate ( % lab.f.) ' 12 ' 13 est. 14 est. 15 ' 12 ' 13 est. 14 est. 15 ' 12 ' 13 est. 14 est. 15 U.S.A 2,8 1,9 2,8 2,9 2,1 1,5 1,4 1,6 8,0 7,4 6,4 6,2 JAPAN 1,4 1,5 1,4 1,0-0,1 0,4 2,8 1,7 4,3 4,0 3,9 3,9 CHINA 7,7 7,7 7,5 7,3 2,7 2,6 3,0 3,0 4,1 4,1 4.1 4.1 INDIA 4,7 4,4 5,4 6,4 10,2 9,5 8,0 7,5 n/a n/a n/a n/a EU28-0,4 0,1 1,6 2,0 2,6 1,5 1,0 1,5 10,4 10,8 10,5 10,1 Source : IMF & DG ECFIN Europur General Assembly Vienna June 2014 I. General economic outlook 4
SLABSTOCK MARKET REVIEW 2014 GDP GROWTH FORECAST 0% 1% 2% 3% 4% Turkey Finland Greece Italy Netherlands Slovenia Spain Austria Belgium France Germany Ireland Portugal Hungary Poland Denmark Norway Russia Estonia Slovakia UK Sweden Switzerland Romania Source : IMF Europur General Assembly Vienna June 2014 I. General economic outlook 5
Euro - $ exchange rate EUR / USD 1,30 June 2013 Europur General Assembly Vienna June 2014 I. General economic outlook 6
Brent Crude Oil Prices $ / BARREL Europur General Assembly Vienna June 2014 I. General economic outlook 7
Economic Outlook EU-28 GDP - forecast 2014 : + 1,6 % Relative stable / strong Euro Stable / Moderate oil prices Low inflation Unemployment = main issue Europur General Assembly Vienna June 2014 I. General economic outlook 8
SLABSTOCK FLEXIBLE FOAM MARKET REVIEW I. General economic outlook II. 2013 Slabstock production volumes Raw material prices III. The main markets Upholstered furniture Bedding Automotive Europur General Assembly Vienna June 2014 9
EXECUTIVE SUMMARY 2011-2013 SLABSTOCK MARKET INDICATORS Item Source 2011 2012 2013 GDP-growth (EU28) DG ECFIN 1,5% -0,3% 0,2% Raw Material Price Index Slabstock foam production Upholstered Furniture Production (value) ICIS Ether 3,5% 4,7% -2,3% ICIS / TECNON Ester 4,5% 7,3% -0,2% EUROPUR Ether -4,8% EUROPUR Ester 16,7% CSIL 2,8% -2,4% -1,6% Bedding Market (volume) EBIA -5,5% -3,2% -4,9% Total W-EU vehicle assembly (volume) Total E-EU vehicle assembly (volume) Total EU + EFTA commercial vehicle registrations IHS 3,5% -7,7% 0,5% IHS 11,2% 1,5% 2,3% ACEA 9,9% -12,4% 1,0% Europur General Assembly Vienna June 2014 I. General economic outlook 10
SLABSTOCK MARKET REVIEW Slabstock Production Volumes EUROPUR Members (in kt): 2012 2013 Ether Foam 546 519 Ester Foam 31 36 Europur General Assembly Vienna June 2014 II. Prices & volumes 11
SLABSTOCK MARKET REVIEW RAW MATERIAL PRICE INDEX : Source : ICIS-LOR & TECNON Europur General Assembly Vienna June 2014 II. Prices & volumes 12
Formulation Cost Volatility Difference Highest / Lowest in % 2010 2011 2012 2013 Ether 11 11 15 8 Ester 24 19 9 3 Source: ICIS / TECNON Europur General Assembly Vienna June 2014 13
SLABSTOCK FLEXIBLE FOAM MARKET REVIEW I. General economic outlook II. 2011 Slabstock production volumes Raw material prices III. The main markets Upholstered furniture Bedding Automotive Europur General Assembly Vienna June 2014 14
Main markets 1. Upholstered furniture Europur General Assembly Vienna June 2014 15
EUROPEAN UPHOLSTERED FURNITURE MARKET 2012 & 2013 % CHANGE EU-17 EU-New Mbs* Non-EU Mbs** Production -5,0 5,9-1,2 Export -4,0 8,3 4,6 Import -6,0-1,9-1,3 Consumption -6,0-0,5-3,0 *Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Malta, Poland, Romania, Slovenia, Slovakia, Croatia * * Serbia, Ukraine, Turkey, Russia Source : CSIL - Milano Europur General Assembly Vienna June 2014 III. Main Markets 16
EUROPEAN UPHOLSTERED FURNITURE PRODUCTION 2013 in millions of EUR EU-28 Total: 12,515 MEUR Source : CSIL - Milano Europur General Assembly Vienna June 2014 III. Main Markets 17
EUROPEAN UPHOLSTERED FURNITURE PRODUCTION 2013 TOP-4 COUNTRIES M EU-17 New EU Mbs Non-Mbs Prod. Value % change Prod. Value % change Prod. Value % change IT 1951-2,1 PL 2556 4,8 TR 652 2,7 DE 1841-7,9 RO 493 25,3 RU 762-3,5 UK 1502-2,9 CZ 233-2,5 UA 148-5,1 FR 609-5,9 HU 210 4,0 Source : CSIL - Milano Europur General Assembly Vienna June 2014 III. Main Markets 18
EUROPEAN UPHOLSTERED FURNITURE MARKET 2013 EXPORT TOP 4 M EU-17 New EU Mbs Non-Mbs Prod. Value % change Prod. Value % change Prod. Value % change IT 1449 2,2 PL 1906 5,6 TR 232 7,4 DE 635-5,5 RO 404 31,5 NO 155-15,8 DK 205-0,8 HU 163 11,6 UA 64-3,1 BELUX 164-10,1 SK 133 0,2 SR 59-1,7 Source : CSIL - Milano Europur General Assembly Vienna June 2014 III. Main Markets 19
EU-17 degree of internationalisation 2013 % in value Export / Production Import / Consumption Austria 79 91 Belux 63 78 Denmark 86 88 Finland 9 35 France 24 67 Germany 34 56 Greece 12 63 Ireland 8 54 Italy 74 34 Netherlands 59 73 Portugal 63 35 Spain 29 38 Sweden 34 48 UK 6 56 TOTAL 42 56 Source : CSIL - Milano Europur General Assembly Vienna June 2014 III. Main Markets 20
Main markets 2. Bedding Europur General Assembly Vienna June 2014 21
7 Countries* Europe 2011-2012 Mattresses Consumption (in Manufacturers Prices) 2011 2012 Mattresses Value Mio % of market Volume 000 pcs % of market Value Mio % of market Volume 000 pcs % of market PUR 792 39,8 7860 47,2 799 41,0 7738 48,8 SPRINGS 883 44,3 6985 41,9 859 44,0 6548 41,3 LATEX 261 12,9 1444 8,7 238 12,2 1252 7,9 OTHER 55 2,9 349 2,2 51 2,7 324 2,0 TOTAL 1991 99,9 16638 100,0 1947 99,9 15862 100,0 * Belgium, The Netherlands, France, Germany, Austria, Spain, Italy Source : EBIA Europur General Assembly Vienna June 2014 III. Main Markets 22
7 Countries Europe 2013 (1st sem.) 2012(1st sem.) Mattresses Consumption (in Manufacturers Prices) First Semester 2012 First Semester 2013 Mattresses Value Mio % of market Volume 000 pcs % of market Value Mio % of market Volume 000 pcs % of market PUR 408 41,5 3848 50,0 397 42,1 3697 50,5 SPRINGS 432 44,0 3128 40,5 418 44,3 2978 40,7 LATEX 120 12,2 591 7,7 107 11,3 514 7,0 OTHER 21 2,3 135 1,8 21 2,3 134 1,8 TOTAL 981 100,0 7702 100,0 943 100,0 7323 100,0 * Belgium, The Netherlands, France, Germany, Austria, Spain, Italy Source : EBIA Europur General Assembly Vienna June 2014 III. Main Markets 23
7 Countries Europe 2013 1 st Semester Mattresses Consumption Preliminary market data Mattresses Value Volume Market Growth -3,9% -4,9 Pricing Market Average 1,6 PUR 0,9 Latex 2,4 Spring 1,4 Market Share (Volume) 2012 2013 PUR 50,0 50,5 Latex 7,7 7,0 Spring 40,6 40,7 Source : EBIA Europur General Assembly Vienna June 2014 III. Main Markets 24
Main markets 3. Automotive Europur General Assembly Vienna June 2014 25
MARKET SIZE DEVELOPMENT West-European assembly Index - all car types base 100 in 2004 * LTR : MPV s/suv s/pick-up/chassis-cabs Volume (000) 2012 2013 2014 (est) % change 2012-2013 % change 2013-2014 Cars 8007 7973 7851-0,4-1,5 LTR 4595 4694 4981 2,2 6,1 TOTAL 12602 12667 12832 0,5 1,3 Source : IHS (ex CSM) Europur General Assembly Vienna June 2014 III. Main Markets 26
CAR & LTR ASSEMBLY BY COUNTRY West-Europe 2013 : 12,666,539 cars & LTR s Source : IHS (ex CSM) Europur General Assembly Vienna June 2014 III. Main Markets 27
MARKET SIZE DEVELOPMENT East-European market Index - all car types base 100 in 2004 180 160 * LTR : MPV s/suv s/pick-up/chassis-cabs 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Volume (000) 2012 2013 2014 (est) % change 2012-2013 % change 2013-2014 Cars 4348 4259 4377-2 2,8 LTR 2334 2579 2343 10,5-9,2 TOTAL 6682 6838 6720 2,3-1,7 Source : IHS (ex CSM) Europur General Assembly Vienna June 2014 III. Main Markets 28
CAR & LTR ASSEMBLY BY COUNTRY East-Europe 2013: 6,837,849 cars & LTR s Source : IHS (ex CSM) Europur General Assembly Vienna June 2014 III. Main Markets 29
New Commercial Vehicle Registrations EU + EFTA Countries 2013 YTD April 2014 Volume (T units) % change (2013/2012) Volume (T units) % change (2014/2013) Light commercial vehicles (up to 3,5 T) Heavy commercial vehicles > 3,5 T 1375-0,2 494 +9,5 304 6,5 90 +4,7 Trucks > 16 T 231 8,6 71 +9,2 Buses and Coaches 33 2,8 10 +5,6 TOTAL 1943 1,0 666 +8,7 Europur General Assembly Vienna June 2014 30
Global Vehicle Production Forecast Cars + LTSs (Index base 100 in 2012) 2012 2013 2014 2015 Global Index Europe Index Market Share 100 103,8 106,5 110,9 100 101 101,6 106,2 23,7 23 22,6 22,6 Source : IHS Europur General Assembly Vienna June 2014 III. Main Markets 31
Global Vehicle Production Forecast Cars + LTSs (Mio Units) 2012 2013 2014 2015 2016 BRIC* 25,8 30,1 31,7 34,3 36,8 Mature** 34,6 34,9 35,1 35,3 35,2 ROW 21,1 19,6 20,1 20,8 22,0 * Brazil, Russia, India, China ** USA, Canada, Western Europe, Japan Source : IHS Europur General Assembly Vienna June 2014 III. Main Markets 32
EXECUTIVE SUMMARY 2014 FORECAST Item Source 2012 2013 2014 (est) GDP-growth (EU28) DG ECFIN -0,3 0,2 1,6 Raw Material Price Index Upholstered Furniture Production (value) ICIS Ether 4,7% -3,9% 0% ICIS / TECNON Ester 7,3% -0,2% 0% CSIL -2,4% -3,2% -2,1% Bedding Market (volume) EBIA -3,2% -4,9% n/a Total W-EU vehicle assembly (volume) Total E-EU vehicle assembly (volume) IHS -7,7% 0,5% 1,3% IHS 1,5% 2,3% -1,7% Europur General Assembly Vienna June 2014 33
Thank You For Your Attention Europur General Assembly Vienna June 2014 34