Dual Systems in Germany- Obligations of the initial distributor -

DeutschlandforumLjubljana

22 May 2014

One of the leading recycling systems worldwide

High demands on industry and trade

5th amendment change in the legal situation for visible imports and deliveries from other EU states

6th and 7th amendment are currently discussed and shall be implemented as of 01.01.2015

Fulfilling the legal requirements of recycling of sales packaging is very important also for foreign companies

The Dual System

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Packaging Recovery and Recycling in Germany

Obligation to participate in a dual system

• since 01 January 2009

• all initial distributors foreign companies included

Packaging, which accumulates at the private end users or comparable collection points, are to be participated in a dual system and/or industry solution

Non-licensed packaging = Product is not allowed to be distributed and can lead to fines up to 50.000 €

Licensing of sales packaging

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Packaging Recovery and Recycling in Germany

Companies, which put sales packaging filled with goods into circulation for the first time in Germany = initial distributor

Imported goods:

• The company, which at the border crossing bears the legal responsibility for the goods

Foreign companies have same obligations as German companies:

• Proper recovery and recycling of packaging via a dual system or an industry solution

Who is obliged?

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Packaging Recovery and Recycling in Germany

May have very unpleasant consequences:

• Sales embargo of the goods put into circulation

• High fines (up to 50.000 €)

• Legal competition warnings

Non-compliance with the licensing obligations

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Packaging Recovery and Recycling in Germany

German business partners are offering for the importers to license the goods by order of a third party

• responsibility stays at the importer

• is considered in pricing

• often related with higher costs than own licensing

Price comparison pays off

Implementation

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Packaging Recovery and Recycling in Germany

Life cycle of sales packaging

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Recovered substance cycle in the dual system

Dual Systems in Germany

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Dual System Redual Dual System Vfw

At the locations Herborn, Cologne, Vienna, Toronto and Berlin work today over 200 employees and achieve with 3.000 customers a turnover of more than 200 million euros.

Customer satisfaction is our top priority: 2010 we were once again distinguished with the IPS Award by a major customer of the food sector.

Environmental quality management and legal certainty are self-evident to us: we are certified according to DIN EN ISO 9001:2008 and DIN EN ISO 14001:2004

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Who we areCompany Portrait

HistoryCompany Portrait

2002 2008 2009 2010 20122004 2005 2006 2013 2014

Reclay GmbH

Founding by

R. Fruscio &

M. Schürmann

Curanus GmbH

LIZ AG

since 2012

Reclay GmbH

Redual GmbH & Co. KG

since 2012

Reclay Vfw GmbH

Majority shareholding

Waste & Energy AG

RE|CARBON GmbH

Reclay Österreich GmbH

Reclay UFH GmbH

WEM GmbH

since 2014

Reclay Materials GmbH

RE|PLA Cycle GmbH

Majority shareholding

StewardEdge

since the end of 2012

Reclay StewardEdge

Takeover

Vfw GmbH

Merger of Vfw GmbH

and Redual GmbH to

Reclay Vfw GmbH

Merger of

Tanzer Consulting into

Reclay Österreich GmbH

Locations

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Company Portrait

NORTH SEA

ATLANTIC

MEDITERRANEAN

Denmark

Finland

Poland

France

Germany

SpainPortugal

Greece

Italy

SwitzerlandAustria

Czech Republic

Estonia

Latvia

Lithuania

Belarus

Ukraine

RomaniaHungary

Slovakia Moldova

Bulgaria

IrelandGreatBritain

Monte-negro

Serbia

Slovenia Croatia

Bosnia -Herze-govina

Macedonia

Albania

Norway

The Netherlands

BelgiumLuxemburg

Malta

Sweden

Continuous growth characterises usDevelopment of Turnover

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2002 2005 2007 2009 2011 2012

0.04

16

73

97

148

166

Figures in millions of EUR

2007 2008 2009 2010 2011 2012 2013

6684 94

117135

220

270*

Facing the future togetherDevelopment of Staff Numbers

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* Status: November 2013

Paper, paperboard, cardboard

Glass Lightweight packaging

DSD 45,80 % 46,79 % 41,60 %

BellandVision 17,95 % 13,89 % 20,83 %

Reclay-Vfw* 5,04 % 19,26 % 14,44 %

Interseroh 9,73 % 3,61 % 5,22 %

Landbell 7,56 % 8,51 % 6,68 %

Zentek 3,15 % 0,71 % 3,38 %

Eko-Punkt 0,82 % 0,53 % 0,24 %

Veolia Dual 3,72 % 0,30 % 0,68 %

RKD 6,68 % 6,40 % 6,93 %

Market shares of the Dual Systems 2nd Quarter 2014

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Market Situation

*Dual System Redual and Dual System Vfw

One-stop environmental and waste management

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Full service provider

Report of dual system “Redual”

Report of industry solution “Curanus”

Organising correspondence with third

parties

Commissioning of auditors

Preparing of declaration of completeness

Settlement with other system providers

Green Dot processing

Customer

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Disposal of sales packaging by collection points

Licensing options

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Customer

Private end consumer

Same status as private end consumer*

Dual system § 6.1 VerpackV

Industry solution§ 6.2 VerpackV

Large-scale industry

Industrial disposal§ 7 VerpackV

* § 3.11 VerpackV: includes doctors’ surgeries, bakeries, copy shops, printers, airports, restaurants, hotels, snack bars, canteens, agricultural enterprises, museums, opticians, nursing homes, lawyers, sports stadiums, service stations, universities, administrations, Christmas markets, zoological gardens

Founded in Vienna in 2009

Start of a commercial system in form of Reclay UFH in 2010

Handling of the Austrian market and neighbouring CEE countries

The monopoly of ARA will end as of 01.01.2015

Licensing via Reclay Austria already in 2014 possible

Consulting in the field of packaging licensing with full legal compliance:

• Analysis of sales channels

• Optimisation of licensing

• Implementation of measures

Reliable packaging licensing as well in Austria

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Reclay Austria

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Reclay GmbHIm Zollhafen 2-4D-50678 Cologne

Mario Simon Nea Masur

Team Leader Sales Sales Assistant Europe

Tel. +49 (0)221 58 00 98 2542 +49 (0)221 58 00 98 2569

Fax +49 (0)221 58 00 98 777 +49 (0)221 58 00 98 777

Mobile +49 (0)175 576 50 21

e-mail m.simon@reclay-group.com n.masur@reclay-group.com

Contact