PETCO AGM 2018 A REVIEW OF 2017 WHILST LOOKING AHEAD

PETCO
AGM
2018
A REVIEW
OF 2017
WHILST
LOOKING
AHEAD

CATH GRENFELL
MC

Agenda
10h05: PETCO Highlights 2017 (Cheri Scholtz)

10h20: Chairperson’s Assessment (Dr Casper Durandt)

10h35: Financial Statements and Report of Auditors
       Appointment of Auditor for Coming Year

10h40: Introduction of Board of Directors 2018/2019

10h45: Any Other Business

10h50: Guest Speaker: Dr Tony Ribbink

11h30: Refreshments

11h55: The 2018 PETCO Awards (Janine Basson)

12h55: Closure and Thanks (Tshidi Ramogase)

13h00: Light Lunch and Networking

CHERI SCHOLTZ

PETCO 2017
Highlights

“Plastics aren’t
 inherently bad.
It’s what we do,
or don’t do, with
    them that
     counts.”
Dr Sylvia Earle

“EVERY single
piece of plastic
that has ever
been created
since the 19th
century is still
SOMEWHERE
on our planet.

So if it never
goes away,
where does it
go?”

“Plastic recycling is
only marginally better
for the environment
than landfill
disposal.”
         - NY Times

Guess how many bottles PETCO
has collected in 13 years?

Guess how many bottles PETCO
has collected in 13 years?

Guess how much landfill space
has been saved over 13 years?

Guess how much landfill space
has been saved over 13 years?

 That’s Equivalent to 1 500 Olympic Sized Swimming Pools.

Complete the Sentences:
2017 will go down as one of the most XXX
years we have ever experienced.

For the first time in PETCO’s 13-year history,
the total volume of PET consumption in South
Africa XXX year on year between 2016 and
2017.

Complete the Sentences:
2017 will go down as one of the most
challenging years we have ever experienced.

For the first time in PETCO’s 13-year history,
the total volume of PET consumption in South
Africa declined year on year between 2016
and 2017.

PET market consumption was
flat in 2017 because….

PET market consumption was
flat in 2017 because….
Of the economy performing below potential.

True or False?
Despite a 13% fall in the total PET market,
PET Recycling tonnage still grew by 3%.

TRUE.
• PETCO managed to
  collect 93,235 000
  tonnes of PET bottles
  or 2.15 billion bottles –
  a record 65% of post-
  consumer bottles.

• Despite a 13% fall in
  the total PET market,
  PET Recycling
  tonnage still grew by
  3%.

What is the Impact of Reduced
Consumption of PET?

What is the Impact of Reduced
Consumption of PET?
• Reduced bottle supply.
• Increases in the prices of post-
  consumer PET material.

What impact did virgin
material supply
disruptions have during
2017?

What impact did virgin
material supply
disruptions have during
2017?

Unanticipated
demand for
bottle- to-
bottle rPET.

What percentage of total
expenditure does PETCO pay out
to its recycling partners?

What percentage of total
expenditure does PETCO pay out
to its recycling partners?
PETCO’s support for high-volume commercial
recycling operations continued to make up
more than 70% of the organisation’s total
expenditure.
•   Da Run Fa Chemical Fibre
•   Extrupet
•   Kaytech
•   Mpact Polymers
•   Propet SA
•   Sen Li Da Chemical Fibre

What percentage of all bottles
collected were re-processed into
new end-use products?

What percentage of all bottles
collected were re-processed into
new end-use products?

96%
• 38% into bottle-2-food-grade
  products
• 58% into bottle-2-fibre (including
  geotextiles)
• 4% exported

What PETCO project is this
referring to?

All of our projects are monitored to track
performance and growth as part of our
mentoring philosophy, and trying to
move collectors up the value chain, in line
with the UN Sustainable Development
Goals.

What PETCO project is this
  referring to?
• PETCO supports projects through the
  sponsorship of infrastructure and equipment.
• PETCO supported 62 SMMEs with balers,
  cages, scales and other equipment.

What did PETCO do in 2017 to help
solve the challenges of Marine
Waste?

What did PETCO do in 2017 to help
 solve the challenges of Marine
 Waste?
• We helped to organise the first African Marine
  Waste Network conference in July 2017 - a
  significant step in solving the challenges of
  marine pollution.

What consumer campaign saw an
increase of 600% in PETCO’s social
media footprint?

What Outlook was launched at the
CSIR on 05 June 2018?

What Outlook was launched at the
CSIR on 05 June 2018?
The Africa Waste Management Outlook.

THANK
YOU

Chairperson’s
Assessment.

DR CASPER
DURANDT

“Plastic products and packaging have an undeniably
important role in our society. Plastic waste should not. Not
only does plastic waste pollute our land and ocean — to
the detriment of wildlife and humans — but the loss of
plastic from the current plastic economy is an economic
drain. Plastic waste is a problem we can solve and need
to solve now. And the solutions are many. But ultimately
this problem requires a circular economy approach, where
used plastic becomes a feedstock rather than a waste.
There has never been more political will and technical
ability to solve our plastic waste problem.”

CATHERINE NOVELLI
U.S. UNDER SECRETARY OF STATE FOR ECONOMIC
GROWTH, ENERGY AND THE ENVIRONMENT

RECYCLING MARKETS FACED MIXED
 FORTUNES
• In the wake of China’s ban on the import of waste streams,
  countries across the globe scrambled to deal with their
  waste.

• We have seen increased requests for the import of waste for
  recycling and we will monitor the situation closely.

• Fibre and food-grade market fundamentals weakened
  during the early part of 2017 but strengthened thereafter,
  buoyed by the weakening rand throughout the year.

• What is bearing fruit, is that PETCO’s focus since its
  incorporation in 2004 on supporting and growing local
  beneficiation of post-consumer PET, has meant that the
  South African PET Recycling rates have been remarkably
  resilient.

THANK
YOU

INDUSTRY WASTE MANAGEMENT PLAN
• We continue to engage with DEA and other stakeholders over
  the next few months, as we develop our own plan for the
  PET sector.
• Submission deadline of 6th September 2018.
• This has been long awaited and presents both challenges and
  opportunities.
• Challenges include measures regarding financing of industry
  plans via National Treasury, and the collection of the proposed
  tax.
• We are optimistic that we are going to maintain our
  collection and recycling percentage in the high 60s.
• The opportunities are far more exciting. If implemented with
  vision and insight, these plans have the potential to
  significantly improve the recycling economy, and result in well-
  run, cost-effective programmes, increased recycling and
  environmental benefits, coupled with skills development and
  job creation.

THE CONVERTER LANDSCAPE IS CHANGING
• The Austrian packaging company Alpla-Werke Alwin Lehner
  GmbH & Co KG continued its growth spurt with the acquisition
  of Boxmore Packaging.
• The RPC Group Plc acquired Astrapak.
• These acquisitions demonstrate investor confidence in the
  growth of the PET industry in Africa.

Recycling is not an environmental problem – it’s a
people problem …

THE OUTLOOK FOR 2018 AND BEYOND

• The outlook for 2018 is more positive.
• Uncertainty with the recent implementation of the ban in China
  for all recycled plastics
• Total market size will remain at 224 000 – 230 000 tonnes i.e.
  growth will be close to zero.
• Nonetheless PETCO is well placed to facilitate the collection
  and recycling of approximately 100 000 tonnes of post-
  consumer PET bottles in 2018.
• One of PETCO’s key programmes is Sustainable Enterprise
  Development (ED) that seeks to uplift the quality of life of
  marginalised and disadvantaged emerging entrepreneurs.
• Sugar Tax
• Developing a model to accredit or recognise brand owner
  products that carry the PET EPR fee.
• Plans to expand PETCO into Africa are being finalised.

Thanks to our voting members:

   Split Line
Manufacturing cc.

PETCO’S VALUED
ASSOCIATE MEMBERS:
1 Absolutely Pure Water (Pty) Ltd.    South Africa
2 aQuelle                             21 Oasis Association
3 Averda South Africa                 22 Oasis Water (Pty) Ltd.
4 Bonke Abantu                        23 Packaging SA
5 Bophelo Recycling                   24 PL Recycling and Multi Purpose
6 Checkers                            25 Polyco NPC
7 ColorMatrix, PolyOne                26 Postwink
8 Da Run Fa Chemical Fibre (Pty) Ltd. 27 Propet SA
9 Extrupet (Pty) Ltd.                 28 Regenize
10 Green Cycle                        29 Remade Recycling (Pty) Ltd.
11 Green Edge Communications          30 SANBWA (South African National
12 Greener Pastures Recycling         Bottled Water Association)
Company                               31 Sen Li Da Chemical Fibre (Pty) Ltd.
13 Greenvolution                      32 Sustainable Seas Trust
14 Henque Waste                       33 Tacoma Foods
15 HL Distributors                    34 The Joinery
16 Kaytech                            35 The Waste Trade Company
17 Krones Southern Africa
18 Milliqua
19 Mpact Polymers (Pty) Ltd.
20 National Zoological Gardens of

PETCO ACKNOWLEDGES OUR
PARTNERS:
• Department of Environmental Affairs (DEA)
• Packaging SA
• Paper Recycling Association (PRASA)
• National Recycling Forum (NRF)
•  Institute of Waste Management SA (IWMSA)
• PlasticslSA
• SA National Bottled Water Association
  (SANBWA)
• The International Labour Organisation (ILO) –
  UnitedNations
• The PEACE Foundation

WE THANK THE 2017/2018 BOARD
OF DIRECTORS:
Non-Executive Directors

•   Casper Durandt – Chairperson
•   Tshidi Ramogase – Vice Chairperson
•   David Drew
•   Vukani Magubane
•   Tom McLaughlin
•   Greg Morse
•   Andre Nel
•   Wessel Oelofse
•   Daniel Schoeman
•   Asyia Sheik
•   Chandru Wadhwani

WELCOME TO THE 2018/19
BOARD OF DIRECTORS:
Non-Executive Directors

•   Casper Durandt – Chair, Brand Owners
•   Tshidi Ramogase, Vice Chair, Bottlers
•   Gert Claasen, Resin Producers
•   David Drew, Converters
•   Linda Godfrey, Board Appointment
•   Lisa Ronquest, Retailers
•   Greg Morse, Bottlers
•   Kevin O’Brien, Retailers
•   Wessel Oelofse, Converters
•   Asyia Sheik, Brand Owners
•   Chandru Wadhwani, Collectors and Recyclers

CELEBRATING THE PETCO PEOPLE
•   Cheri Scholtz, CEO
•   Alistair Schorn, Business Development
•   Oscar Baruffa, Business & Strategy
•   Belinda Booker, Collections and Training
•   Janine Basson, Stakeholder Relations
•   Vainah Mbulo, JHB Office Administrator
•   Tlou Sebolo, Intern
•   Vicki Retief, Financial Controller
•   Pearl Molepo, Recycling Programmes
    (2018)

Contracted Resources:
• Martin Niebuhr, Accounting
• Annette Schell, Levy Manager
• Deloitte SA, Auditors

APPROVAL OF THE 12TH AGM
MINUTES

APPOINTMENT OF AUDITORS FOR
THE COMING YEAR

GENERAL:

ANY OTHER BUSINESS AS MAY
BE TRANSACTED AT THE AGM

Guest Speaker:
DR TONY
RIBBINK