GR The Future of Industry Focus On Plastics Manufacturing 042023

Contents
01 Sector
Demand 02 Sector
Supply 03 Local Market
Insight
i. Global demand i. Global supply i. Market challenges
ii. Overall value chain ii. Local key players ii. Future opportunities
iii. Sector size and growth iii. Comparative analysis
iv. Financial trends
© 2023 KPMG Advisors Single Member S.A., a Greek Societe Anonyme and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Document Classification: KPMG Public 2
Understanding the basics of the plastics industry
01 Industry Scope and Definition
The plastics industry produces, manufactures and trades plastic products.
02 Production Span
The plastics sector includes organisations that produce raw materials and manufacturers
that process semi-finished and consumer-ready products.
03 End-of-Life (EOL) Management

In the context of the plastics industry, EOL management includes the collection, recycling
and responsible disposal of plastic waste. Effective EOL management is crucial for
reducing the environmental impact of plastic waste and conserving resources.
04 Global Scale
The global plastics industry is growing, valued at ~$500 billion in 2020. Asia is the largest
market for plastics, with China and India being the largest producers and consumers.
05 Main Concerns
There is a growing global concern about plastic pollution and waste, and governments
and industry are taking steps to address this issue through regulations, taxes, and
voluntary commitments to reduce plastic waste.
01
Sector
Demand
Sector Global Overall Sector Financial Sector Global Local Key Comparative Local Market Market Future
Demand Demand Value Chain Size & Growth Trends Supply Supply Players Analysis Insight Challenges Opportunities
The global demand for plastics is steadily growing, while the

industry is transforming to overcome market risks
A growing market Growth factors
The global plastic market size was • Increasing demand from end-use industries like
valued at $ 584.7 billion in 2021 and is packaging, construction, automotive and
projected to reach $ 753.1 billion by electronics.
2026, growing at a CAGR of 5.2% from • Growth in population, urbanization and changing
2021 to 2026. lifestyles, leading to increased consumption of
packaged foods and beverages, personal care
products, personal protective equipment and
household items.
The key regional players Market’s risks

Asia-Pacific is the largest market of plastic The plastic industry has faced criticism and concerns
products, accounting for over 50% of the over its environmental impact, particularly with the
global demand. China is the leading growing accumulation of plastic waste in the oceans
consumer, followed by India, Japan, and which negatively impacts marine life and
South Korea. North America and Europe ecosystems.
are also significant markets for plastic Governments, organisations and consumers are
products. increasingly focusing on reducing plastic waste
through initiatives such as recycling, overall banning
of plastic products and using more sustainable
alternatives.
Petrochemical processors, raw-material & compound producers,

consumer-ready products and EOL players formulate the value chain
Our research focuses on organisations whose primary activity is the production within the Greek Plastics sector. Our analysis
does not cover aspects of retail that concerns the end user or final consumer.
01 02 03 04
Production
Raw material Raw Materials Compounds Processing & End of Life Management -
Processing Production Distribution (P&D) Recycling
Production of Design and Design and production of Resins and compounds Organisations managing
petrochemical, chemical production of resins. compounds from polymers are turned into final EOL products (waste
raw materials and mixtures and additives product, which is sold management, recyclers
additives. (masterbatches). by retailers/ distributors. and waste-to-energy
entities).
The Greek plastics sector has grown at an average annual

growth rate of 8.5% from 2017 to 2021
€ Mil. Value Chain Component
The Greek Plastics Sector in 2021 Revenue Trend
1.800
1.792
69
• 224 companies were identified as key players
1.650
+8%
of the sector. 49
• Annual growth at 16.2% compared to 2020. CAGR
224
1.500
• Average EBITDA Margin at 9.6%. 1.413 1.423 1.574
175
51
• This survey focused on organisations reporting 1.359 46
1.350
1.313 41
revenue greater than €10mil. 49 enterprises 36 1.228 1.251
1.168
make up 80% of the sector’s revenue.
• Sector represents ~1% the country’s total GDP. 1.142
111 126 113 92 122
24 24 26 29 28
0
€2.25b
2017 2018 2019 2020 2021
Sales of the entire Plastics 1.Raw material 3.P&D of Plastics
Sector for 2021 2.Raw material & Compound Production 4.EOL Management & Re-cycling
This spike in total revenue during 2021, can be mainly attributed to the
top 3 P&D revenue leaders, since they grew by 25%, 40% and 105%
32%
respectively. This was primarily due to the P&D sub-sector highly
Market size increase from 2021 contributing to healthcare Personal Protective Equipment (PPE)
compared to 2017 production during the pandemic. Nevertheless, the EBITDA increase of
the P&D sub-sector slowed in 2021, reported at 3.8% in contrast to
17.9% in 2020.
22% of organisations contribute 80% of the total sector’s

revenue and are highly concentrated in the P&D sub-sector
€1,792m
2 2 42 3
€27.5m €121.9m €1,574.2m €68.5m

Raw material Production Processing and distribution (P&D) EOL management -Recycling
• While the sub-sector’s revenue has on • While the sub-sector’s revenue has on • While the sub-sector’s has on average • While the sub-sector’s revenue has on
Revenue average been increasing by 3.3% average been increasing by 8.5% been increasing by 8.4% during the average been increasing by 17.4%
Trend during the past 5 years, in 2021 it during the past 5 years, in 2021 the past 5 years, in 2021 the increase during the past 5 years, in 2021 the
decreased by 3.9%. increase jumped to 32.2%. jumped to 25.8%. increase jumped to 33.2%.
24 out of 42 companies scored greater than AVG
EBITDA • In 2021, the average EBITDA margin of • In 2021, the average EBITDA margin of • In 2021, the average EBITDA margin of • In 2021, the average EBITDA margin of
Trend the selected organisations was 11.5%. the selected organisations was 11.1%. the selected organisations was 12.3%. the selected organisations was 6.1%.
18 out of 42 companies scored greater than AVG
• In 2021, the subsector’s liabilities • In 2021, the subsector’s liabilities

Liabilities
increased by 9.16% compared to 2020. increased by 13.7% compared to 2020.
# Number of organisations within each sub-sector Document Classification: KPMG Public 8
Although the sector has grown over the past 5 years, it has
been impacted by the rise of energy prices and material cost
Energy price evolution in Greece Plastic compound production price evolution
• On average, energy represents 30% of the total operating cost for the raw materials • Although material cost has been at a rise, supply chain disruptions
and compound producers. eased by the end of 2021 with shipping cost also on the decrease.
• By the end of 2021, raw materials and compound producers in Greece had to pay up • Plastic compound production prices have skyrocketed in the past 5
to 223% higher natural gas prices than at the beginning of 2017. years, achieving a 40% rise.
• Electricity prices in Greece have increased 358% between the beginning of 2017 and
the end of 2021, where prices reached a high point of 264 €/MWh. 3.500
280 264 3.000

260
Price € / Metric Tonne

240 2.500
220
2.000 1.869
200
180 1.355 1.398 1.377 1.314
1.500
Price €/MWh
160 +358%
140 1.000
120
500
100 100
80 70 0
58 2017 2018 2019 2020 2021
60
40
20 30 PVC base West Europe price €/MT PP resin EXW Europe price €/MT
20
0 HDPE resin EXW Europe price €/MT Average Price
Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Dec-21 PET resin EXW Europe price €/MT
ABS natural bulk West Europe price €/MT
Electricity price Natural gas price
02
Sector
Supply
The global supply map per value chain link

Key Global Players Key Characteristics
Dow Chemical, BASF, • Organisations within this subsegment significantly invest in R&D and develop new
01 Raw material LyondellBasell, SABIC, types of raw materials.
ExxonMobil Chemical
• Capital-intensive, with substantial barriers to entry.
Plastic Processors: • The plastic processing sub-sector is highly competitive, characterised by low
margins.
Raw Materials Berry Global Inc., Amcor plc,
Processing Sealed Air Corporation,
Production
Plastipak Holdings Inc.

02
Compounders: • Players often work closely with resin manufacturers to develop new materials and
Compounds PolyOne Corporation, Teknor formulations.
Production Apex, RTP Company, Ravago • The compound production sub-sector is highly fragmented, composed of many
small and medium sized organisations.
OEMs such as Procter & • These players often work closely with plastic processors and compounders to
Processing & Gamble, PepsiCo, Nestle, Ford develop and source required materials.
03 Distribution Motor Company
(P&D) • Original Equipment Manufacturers (OEMs) possess significant bargaining power
versus their suppliers, able to achieve low prices and high quality.
Veolia Environnement S.A., • Entities in this subsegment, often face logistical and technical challenges in
End of Life Suez S.A., Waste Management collecting and sorting plastic waste. Recyclable material quality also varies
04 Management - Inc. depending on the source and processing methods.
Recycling
• This sub-sector is subject to high volatility as it is highly regulated, subject to
changing environmental policies and intensely affected by consumer preferences.
In Greece, 10 organisations represent 50% of the market, while one

key player is outperforming the market in terms of EBITDA
2021 Market Size 5-year Revenue Growth Trend (€) Key Players Profitability 2021
€ 1,792.1m
200 Mil CAGR 15%
14%
13% THRACE PLASTICS PACK S.A.
FIBRAN D. ANASTASSIADIS S.A.
12%
150 Mil 11%
ATLAS TAPES S.A.
10%
(selected key players revenues)
9% HATZOPOULOS, A., S.A.
8%
100 Mil 7%
Market size evolution MONOTEZ S.A.
6%
RIVULIS S.A.
2017 – 2021 (mil €) 5%
FLEXOPACK S.A.
PLASTIKA KRITIS S.A.
4% SCHUR FLEXIBLES ABR S.A.
50 Mil
3%
2%
1.800 +8% 1%
POLISAN HELLAS
0 Mil 0%
1.600 2017 2018 2019 2020 2021 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
EBITDA Margin 2021

1.400
€ 1.460 Mil.
1.200
PLASTIKA KRITIS S.A. • During 2021, the top 3 stakeholders increased their reported revenues 21%, 39%
1.000 ATLAS TAPES S.A. and 104% respectively during 2021, leading to a sectoral revenue increase of
MONOTEZ S.A. 8.5%.
800
HATZOPOULOS, A., S.A.
• PLASTIKA KRITIS make up the industry leader in terms of revenues and in
600 FLEXOPACK S.A. PLASTICS INDUSTRY
EBITDA margin.
POLISAN HELLAS PRODUCTION
400
THRACE PLASTICS PACK S.A. • The average EBITDA (€) of the selected key players if the leader was to be
200 SCHUR FLEXIBLES ABR S.A. excepted are €10.8 Mil, while the mean EBITDA margin is 11.8%, indicating a
0 FIBRAN D. ANASTASSIADIS S.A. profitable sector.
2017 2018 2019 2020 2021 RIVULIS S.A. • Setting into perspective that the key players’ liabilities grew only 2% on average
during the last 5 years, while their mean debt to equity ratio was 0.99 in 2021, the
sector apart from profitable, is also healthy.
The raw materials extraction sub-sector has steadily grown at an

annual rate of 3% over the past 5 years
2021 Subsector Market Size 5-year Revenue Growth Trend (€) Key Players Profitability 2021
€27.5m
30 Mil
25 Mil
20 Mil
CAGR 16%
14%
12%
10%
8%
BASF HELLAS SINGLE MEMBER S.A.
Market size evolution 15 Mil
6%
2017 – 2021 (mil €)
10 Mil 4%
2% DIAXON SINGLE MEMBER S.A.

5 Mil
+50% 0%
30 +4% 0 Mil -2%
0% 5% 10% 15% 20%
2016 2017 2018 2019 2020 2021
25 EBITDA Margin 2021
€ 26 Mil.
20
BASF HELLAS SINGLE MEMBER S.A. • Over the past 5 years, 2 main industrial companies have been identified as the key
DIAXON SINGLE MEMBER S.A. players of the raw materials extraction subsector, leading to a sectoral revenue
15 increase of 15.7% from 2017.
Sub-Sector
10
• DIAXON possesses a slight advantage in the market share, while BASF has
increased its market share during the past 5 years by increasing its revenue by
50% in this specific BU.
5
• The average EBITDA (€) of the selected key players were €1.5 Mil in 2021, while
0 the mean EBITDA margin is 11.5%, indicating a profitable sector.
2017 2018 2019 2020 2021
The raw materials and compound production sub-sector has

steadily grown at an annual rate of 7% over the past 5 years
€121.9m
140 Mil
120 Mil
100 Mil
CAGR 15%
10%
BRIGHT COLORS S.A. Label
80 Mil
Market size evolution
60 Mil
+42%
2017 – 2021 (mil €) PLASTIKA KRITIS S.A.
5%
40 Mil
POLISAN HELLAS
20 Mil
140 +2%
0 Mil 0%
2016 2017 2018 2019 2020 2021 0% 5% 10% 15% 20% 25% 30%
120
EBITDA Margin 2021
100 € 113 Mil.
BRIGHT COLORS S.A. • Over the past 5 years, 3 main industrial companies have been identified as the
80
PLASTIKA KRITIS S.A. (Masterbatches)
key players of the raw materials and compound production subsector, leading to a
60
sectoral revenue increase of 9.8% from 2017.
POLISAN HELLAS
Sub-Sector • In 2021, POLISAN HELLAS possessed the 65% of the plastics masterbatch and
40 resin market, while PLASTIKA KRITIS BU of masterbatches made up a strong
pillar of the subsector, possessing the 25% of the market in 2021.
20
• The average EBITDA (€) of the selected key players were €4.5 Mil in 2021, while
0 the mean EBITDA margin is 11.1%, indicating a profitable sector.
2017 2018 2019 2020 2021
The processing anddistribution of plastics consists the

main pillar of the industry, with a CAGR of 8% during the past 5 years
€1,574.2m
1,600 Mil
1,250 Mil
1,200 Mil +38%

CAGR 15%
14%
13%
12%
11%
10%
9%
FIBRAN D. ANASTASSIADIS S.A.
THRACE PLASTICS PACK S.A.
ATLAS TAPES S.A.

Label
PLASTIKA KRITIS S.A.
8% HATZOPOULOS, A., S.A.

Market size evolution 1,150 Mil 7%
6%
2017 – 2021 (mil €) 150 Mil 5% SCHUR FLEXIBLES ABR S.A. MONOTEZ S.A.
4% FLEXOPACK S.A. PLASTICS INDUSTRY
100 Mil
3%
50 Mil 2%
1.600 1%
+8%
0 Mil 0%
0% 5% 10% 15% 20% 25% 30%
1.400 2017 2018 2019 2020 2021
EBITDA Margin 2021
1.200
€ 1.273 Mil.
1.000 PLASTIKA KRITIS S.A. (No MB) • Over the past 5 years, 42 main industrial companies have been identified as the
ATLAS TAPES S.A. key players of the processing and distribution of plastics subsector, leading to a
800 sectoral revenue increase of 37.8% from 2017.
MONOTEZ S.A.
600 HATZOPOULOS, A., S.A. • In 2021, the top 7 selected companies held 50% of the market, with PLASTIKA
FLEXOPACK S.A. PLASTICS INDUSTRY KRITIS being the market leader, while the upward path of ATLAS S.A. and
400
THRACE PLASTICS PACK S.A.
MONOTEZ S.A. have driven the sector to a 25% growth in terms of revenue.
200 SCHUR FLEXIBLES ABR S.A. • The average EBITDA (€) of the selected key players were €16.2 Mil in 2021, while
0 FIBRAN D. ANASTASSIADIS S.A. the mean EBITDA margin is 12.3%, indicating a profitable sector.
2017 2018 2019 2020 2021 Sub-Sector
The EOL Management and Recycling sub-sector makes up an

upcoming link in the value chain with a CAGR of 17%
€68.5m
70 Mil
60 Mil
50 Mil
CAGR 25%
20%
POKAS ARCADIAN RECYCLE COMPANY LTD
Label
15% DION S.A.

40 Mil
Market size evolution HELLENIC ENVIROMENTAL SYSTEMS INDUSTRY S.A.
2017 – 2021 (mil €) 30 Mil

+89% 10%
20 Mil
5%
10 Mil
70 +17%
0 Mil 0%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
2016 2017 2018 2019 2020 2021
60
EBITDA Margin 2021
50
HELLENIC ENVIRONM. SYSTEMS INDUSTRY S.A. • Over the past 5 years, 3 main industrial companies have been identified as the key
40 € 49 Mil.
POKAS ARCADIAN RECYCLE COMPANY LTD players of the EOL Management and Re-cycling subsector, leading to a sectoral
DION S.A. revenue increase of 88.8% from 2017.
30
Sub-sector • In 2021, HELLENIC ENVIRONMENTAL SYSTEMS INDUSTRY S.A. possessed
20 the 54% of the subsector, marking a 89% growth in revenue during the 5-years
span. Along with DION S.A. & POKAS growth during 2021, the sector gained
10 another 33.2% compared to 2020.
0
• The average EBITDA (€) of the selected key players though were €1.7 Mil in 2021,
2017 2018 2019 2020 2021 while the mean EBITDA margin is 6.1%, indicating that the last link of the Plastics
Industry value chain is not as profitable as the previous ones.
03
Local
Market
Insight
Market experts revealed that the local market is experiencing

conventional challenges…
Current loan rates to finance development remain high Regulatory measures and policies restricting
for the majority of organisations. Additionally, accessing the use of plastic products are a major growth
financial aid and appropriate tools are also reported as hinderance. Additionally, shifting consumer
current obstacles for growth. Moreover regulation doesn’t demand to alternative products is another
provide sufficient investment incentives compared to pressure the industry is experiencing.
other countries.
01 03
Energy
Crisis
02 Tax
Framework
04
Financing Regulation &
Hurdles Consumer
Shifts
The energy crisis has hit the industry with such severity, it The tax framework, which is characterized by instability
is threatening organisational competitiveness as well as and high tax rates, is a significant obstacle to business
sustainability. Producers are responding with partial activity which causes substantial distortions. The most
production reduction and even considering the overall profound example is the VAT exemption given to
suspension of certain production units. importers from the European Union countries.
…but also difficulties in the ESG arena

Market experts strongly support that embedding ESG principles into organisational business strategy is key for
the plastics sector. However transitioning to a circular economy posses unique challenges…
Infrastructure Research and ESG

Absence Development Legislation
The sector’s ability to transition to a circular Increasing recycling rates is pivotal for the Governance is crucial for the plastics sector. It
economy model, heavily depends on the circular economy transition. Therefore it is key is called upon to lead and manage challenges
appropriate infrastructure. In this context, to invest in product design since plastic related to the implementation of ESG specific
improving the Greek waste management packaging that contains only one material, legislation. As ESG principles are relatively
system is key. Unfortunately, the current from the large family of polymers, is easier to new, application is lacking expertise, with
situation is disappointing. Recycling remains separate in the recycling facilities. Significant plastics leaders called upon to adhere to
low due to lack of infrastructure and public research and development has already been directives that are constantly evolving.
awareness. The efficient waste management achieved. Moreover, develop technologies to
and recycling is an important and sustainable reduce energy consumption during the
solution. production but also the recycling process is
crucial.
Nevertheless, they also highlighted various opportunities

organisations should take advantage of
01 02 03 04 05 06
EOL Industrial Chemical Business Obligation Packaging
Management Renaissance Recycling Models Enforcement Redesign
• Creation of the • Tension between • Chemical recycling • It is necessary for • Current legislation • Product packaging
appropriate China and the USA are should be further Greek entities to have states that the should play an
infrastructure for the heading towards the developed, since it can easy and effortless collection of recyclable regarding EOL
sustainable product formation of a bipolar be utilised as an access to the latest materials should be management
and material end-of-life industrial world. alternative solution for information regarding carried out through a increasing role and
management. recycling materials that legislation that sorting system into specifically designed
• Local organisations in so that it can be
cannot been processed immediately affects separate streams at
• Implementation of cooperation with recycled and reused.
by mechanical them. the source.
large-scale awareness European professional This will ensure, from
recycling.
and educational bodies should increase • When information is • Nevertheless, this the design stage, the
programs. efforts in co-shaping • This is a crucial easily accessible and specific system has required waste
the advocacy agenda innovation of the legislation is revealed, been adopted only by a prevention.
• Such initiatives will
to the European Union, plastics industry in organisations should few municipalities
empower us nationally • Focus should also be
to create the becoming more carry out a thorough nation wide.
to achieve the given to extending
framework for a sustainable. assessment of their
objectives of the • Authorities should product robustness and
European “Industrial current business
European Green Deal further enforce this life duration for use
Renaissance”. model, products and all
targets and accelerate directive not only over multiple times.
the related processes
the adoption of the through “punishment”,
to define required
Circular Economy. but also through
changes.
incentives.
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related entities.
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Contents

03 End-of-Life (EOL) Management

The global demand for plastics is steadily growing, while the

The key regional players Market’s risks

Petrochemical processors, raw-material & compound producers,

The Greek plastics sector has grown at an average annual

111 126 113 92 122

Sales of the entire Plastics 1.Raw material 3.P&D of Plastics

22% of organisations contribute 80% of the total sector’s

€27.5m €121.9m €1,574.2m €68.5m

• In 2021, the subsector’s liabilities • In 2021, the subsector’s liabilities

280 264 3.000

Price € / Metric Tonne

The global supply map per value chain link

Plastipak Holdings Inc.

In Greece, 10 organisations represent 50% of the market, while one

EBITDA Margin 2021

The raw materials extraction sub-sector has steadily grown at an

2% DIAXON SINGLE MEMBER S.A.

The raw materials and compound production sub-sector has

100 € 113 Mil.

The processing anddistribution of plastics consists the

1,200 Mil +38%

ATLAS TAPES S.A.

PLASTIKA KRITIS S.A.

8% HATZOPOULOS, A., S.A.

The EOL Management and Recycling sub-sector makes up an

15% DION S.A.

2017 – 2021 (mil €) 30 Mil

Market experts revealed that the local market is experiencing

…but also difficulties in the ESG arena

Infrastructure Research and ESG

Nevertheless, they also highlighted various opportunities

Document Classification: KPMG Public

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