Recycling of Packaging Waste in Greece HERRCO’s Mission “Producers Responsibility Organization”

• Fulfilling the legal obligations on behalf of the affiliated packaging operators. • Meeting the National Objectives according to the System’s Financial and Technical programming

The System’s Structure

19 Shareholders 325 Municipalities • Producers and importers of products • Packaging producers Central Union of AYS Greek Municipalities (65%) (35%)

HERRCO (CAMS- RECYCLING)

1.730 CONTRACTED MEMBERS Shareholders

ATHINAIKI ZYTHOPOIIA AE ARTENIUS HELLAS SA COCA COLA – HBC Greece S.A.I.C. COLGATE PALMOLIVE (HELLAS) AEBE CROWN HELLAS CAN AE ELAIS – UNILEVER AEBET ELVAL AE FAGE AE FRIESLANDCAMPINA HELLAS AE ION AE KLIAFA THEODORE REFRIGERATORS AE 65% AYS SA MEVGAL AE NESTLE HELLAS AE PAPASTRATOS ABE CIGARETTES PEPSICO - HBH ABE PROCTER & GAMBLE HELLAS LTD TETRA PAK HELLAS AE VIVARTIA HOLDING AE YIOULA GLASS WORKS AE

Central Union of Municipalities of 35% Greece Basic Principles

• Open to all obligated by law packaging managers.

• Same contract for shareholders and non-shareholders.

• Non-profit operation, aiming to the effective use of the resources.

• Equal treatment towards all packaging materials.

• Close collaboration with the Local Authorities COOPERATION FRAMEWORK BETWEEN HERRCO - MUNICIPALITIES

Legal framework Law 2939/01 Article 8

• The Municipalities should organize recovery projects in cooperation with the PRO •The PRO should finance the Municipalities for the extra (“incremental”) cost (taking into consideration the savings from the reduced quantities for final disposal).

COOPERATION BETWEEN MUNICIPALITIES – HERRCO 1st Method (*)

HERRCO’s Obligations Municipalities’ Obligations

• Collection equipment (bins, • Provide the land for Sorting vehicles, etc.) Centres (if constructed by HERRCO)

• Sorting Centres (constructed by HERRCO or owned by 3rd • Operating Collection parties) • Residue management • Public Information campaign

* The majority of recycling projects COLLABORATION BETWEEN MUNICIPALITIES – HERRCO 2nd Method of Collaboration HERRCO’s Obligations Municipalities’ Obligations

• Collection equipment (bins, • Full responsibility for the vehicles, etc.) operation and management of the project • Economic support to the Municipalities (on a per recovered tonne basis)

• Public information campaign

HERRCO’s Activities

• Blue Bins (printed paper is also recycled– in some areas with multiple streams)

• Special Activities Glass collection from professional venues

• Audits / Certifications . Recording and certifying following control of recycling from Industrial and Commercial Packaging Waste (ICPW). . Other recycling sources (delivery from 3rd parties directly to industry i.e. Yioula Glassworks, Greek Aluminium Industry, energy recovery, etc.)

Blue Bin Project at a glance (Nov. 2013)

. 9,1 mil. Inhabitants in 245 Municipalities . 24 islands . 28 Sorting Centers . 130 thous. blue bins in use . 400 collection vehicles . 1.800 Jobs

. €230 mil. for investments and operating expenses since 2004. Nationwide Development of Centers for Collection of Recycled Materials 28 Sorting Centers

Serres Sindos Tagarades Alexandroupoli Neochorouda Thermi Katerini Ioannina Karditsa

Kozani Lesvos*Lesvos * Volos Kerkyra Lamia Koropi Sximatari Patra

Zakynthos Elefsina

Fili Kalamata Aspropyrgos (2) Korinthos Tripoli

Chania Iraklio

HERRCO Private Public *Will operate shortly HERRCO Results per activity (2013*)

ACTIVITY (‘000 tons)

Blue bins / Municipal packaging waste 141 Glass Recycling (special collection) 14

Industrial & Commercial Packaging Waste (ICPW) 218 Printed Paper (Blue Bins) 40 Other sources 10

Grand total 423

Blue Bin: 200 thous. tons recycling from MSW

(*) Forecast 1.730 Contracted Companies

ClothingFood - Shoes - Toys - Editions 2% 12% 5% 2% 7% E/E BeveragesAppliances - Alcoholic - Spare parts& soft drinks 26% 37% (vehicles, machines, etc) FoodDetergents - Cosmetics - Pharmaceuticals - 36% 20% Medical Equipment 17% ChemicalsChemicals - Machinery - construction materials 12%24% DetergentsE/E Appliances - Cosmetics - Auto and - machinery spare Medicinesparts - Medical Equipments Clothing - Footwear - Toys - Newspapers & Beverages - Alchool - Soft Drinks Magazines etc

% Revenues (according to various industries) Economic data 2011-2013 (mil. €)

Index 2011 2012 2013 (*)

Operational costs 19,8 15,8 15,3

Investments 7,9 6,2 6,4

Total expenditures 27,7 22,0 21,7

Total Income 23,3 21,7 20,5

Loss 4,4 0,3 1,2

The deficit is covered by the cash reserve which was created during the first years of operation

Contains projections and liquidation of assets and liabilities (*) Forecast National Targets vs HERRCO results

(*) 2012’s Achievement is temporary. The typical coverage is estimated at 70% (**) The total PW quantity is considered to be overestimated (***)The coverage is expected to be larger (apx. 90%) (non-certified recycling quantities from ICPW ). Revenues from fees vs Results in some EU countries (€/capita)

E

HERRCO 2011

HERRCO 2012