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1 Plastics , PEOPLE and PARTNERSHIPSAn Annual ReviewRLPEOEHsh2014 | 15 STPsAP2014 | 2015 PLASTICSPLASTICS, PEOPLE and PARTNERSHIPSAn Annual ReviewPLANETPARTNERSHIPSPEOPLEPROFIT2014 | 2015 Plastics |SA at a GlanceUnderstanding the Plastics IndustryPlastics Facts and Figures SA Plastics Industry Market Sectors (2011) Plastics Industry GDP Contribution Apparent Plastics Consumption 2014 Growth vs GPP Growth Apparent Consumption of Polymer Raw Materials (2014) Plastics Trade Balance (2014) Plastics Applications in SAPlastics Recycling Plastics Recycling Industry (2014) Total domestic Plastics consumption and recycling (2009 - 2014) Materials diverted from landfill (2009 - 2014) Source of Recycled Plastics (2014) Materials Recycled (2009 - 2014) Employment in Plastics recycling industryBoard of Directors 2014/2015 Executive CommitteeSustainability Council MembersTraining people in the Plastics Industry Strategic Partners and Processes Highlights of the Year Total Number of Learners (2010 - 2015) Top 10 Learning Programmes per region Total Number of Learners per region (2010 - 2015)

2 Chairperson s messageNote from the Executive DirectorPLASTICSPEOPLEPLASTICS, PEOPLE and PARTNERSHIPSA dvocacy Leadership Parliamentary Engagement, Policy and Programme Development Stakeholder Engagement Policy AnalysisThanks to our partnersMarketing and Communication Media Monitoring and Exposure Media coverage in Rand Value Online Communication Social Media Advertising Radio and TV CommercialsSustainability Leadership Key Strategic Focus Areas Key Strategies and Operational Plan Waste Management and Recycling Education and Training Resource Efficiency Marketing and Communication Sustainability Council Task TeamFinancial Statements Statement of Comprehensive Income Statement of Financial PositionPARTNERSHIPSPLANETPROFIT2014 | 2015 Firstly.

3 Let me say that although we certainly need to take heed of warnings from reliable economists, it is not all doom and gloom in the South African Plastics industry. Despite some of the Plastics sub-sectors experiencing a downturn in demand as they struggle to adjust to increased imports and changes in the market for their products, key opportunities still exist for growth. For instance, the growing middle-class increased demand for all applications of plastic, the recent phase-out of import tariffs on polymers and other inputs which will contribute to more competitive input year we set ourselves the aspirational target of diverting Plastics from the country s landfill sites: Zero Plastics to Landfill by 2030. According to the most recent recycling survey, plastic diverted from landfill increased by % from Plastics recycling industry is showing positive movement and due to the increase in the use of waste plastic as an input material in the conversion process, the demand for plastic waste locally has increased.

4 The total plastic tonnage recycled in 2014 was % of all Plastics manufactured in 2014 which is something that the Plastics recycling industry can be proud of. 22% of Plastics was diverted from landfill was mechanically recycled was exported for recycling elsewhereGovernment has requested Industry to submit their waste management plans for the various sectors. We are hopeful that this is an indication that Industry will be allowed to continue with current initiatives, without too much interference from government. Unemployment rates have reached a 12 year high in South Africa according to Statistics SA s report in June. The unemployment rate increased by % from the last quarter of the challenge remains that we become more innovative and agile in creating opportunities that can contribute to long-term and sustainable employment.

5 The recycling industry has shown leadership and entrepreneurship in this regard, employing more than 47 000 people in the informal you to the team for your contribution to yet another successful year, despite a myriad of challenges. We look forward to great things de WeerdtChairperson BoardCHAIRPERSON S MESSAGE12014 | 2015 During this financial year, the industry was forced to embrace change, adapt and face enormous challenges in a struggling economy which doesn t always facilitate local manufacturing. is grateful to those members of the industry who contribute towards our activities by way of membership fees. There are still raw material producers and importers who are not subscribing to the fees and we would like to encourage the industry to support the raw material producers and importers that support us, making it possible to fulfil our vision of enabling a vibrant and sustainable Plastics industry in South Africa.

6 I would like to take this opportunity to express my gratitude to my team at and to the Board whose input and guidance have proved invaluable and without whom we certainly could not have achieved the successes of the past financial hereby present Plastics , People and PartnershipsA review of s highlights of 2014 you,Anton HanekomExecutive DirectorNOTE FROM THE EXECUTIVE DIRECTOR22014 | 2015If a brand genuinely wants to make a social contribution, it should start with who they are, not what they do. For only when a brand has defined itself and its core values can it identify causes or social responsibility initiatives that are in alignment with its authentic brand story. Simon MainwaringPlasticsPLASTICS, PEOPLE and PARTNERSHIPSAn Annual Review[ Plastics ]The word plastic is derived from the plastikos (Greek) meaning capable of being shaped or molded , from plastos (Greek) meaning molded.

7 It refers to its malleability, or plasticity during manufacture, that allows it to be cast, pressed, or extruded into a variety of shapes such as films, fibers, plates, tubes, bottles, boxes, and much , PEOPLE and PARTNERSHIPSPLASTICS | 3, the umbrella organisation for the South African Plastics industry is registered as a Non Profit Company (NPC). It is funded by membership fees based on sales of locally manufactured and imported Plastics raw material, and other contributions and sponsorships from industry associations. Most of the income is derived from our own training activities in the Plastics Industry. represents all sectors of the South African Plastics Industry including polymer producers and importers, converters, machine suppliers, fabricators and with our associations we play an active role in the growth and development of the SA Plastics industry and strive to address Plastics related issues, influence role players and make Plastics the material of enable a vibrant and sustainable Plastics industry in South AfricaOur VisionValued and respected by local and international industry, customers, suppliers, government, community and employees;Promoting the use of Plastics as the material of choice;Developing the skills needed through accredited training programmes.

8 Supporting environmentally responsible actions that benefit industry and |SA AT A GLANCE operates from2014 | 2015 CENTRESOur 6 Core Focus AreasAdvocacy accessing and influencing key decision-makers, policies and strategies that affect our developing career paths to meet the needs of the Plastics industry, as reflected in the strategic development strategy. Courses are accredited and NQF relevant industry issues are shared with industry role players, the media and the general in conjunction with the polymer groups, providing strategic leadership to the Plastics industry on environmental issues. Research acquiring and compiling industry statistics, as well as research of strategic interest to the Services are provided to companies who belong to their respective industry associations and pay the membership Office Midrand, GautengRegional centre Pinetown, Kwa-Zulu NatalRegional centre Maitland, Cape Town03 Plastics .

9 PEOPLE and PARTNERSHIPSPLASTICS | 5 Understanding the Plastics IndustrySUSTAINABILITY COUNCILRAW MATERIAL SUPPLIERS AND IMPORTERSASSOCIATIONSPOLYMER ORGANISATIONSRECYCLING Polystyrene Association of South Institute of South of Rotational Moulders of South African Plastic Pipe Manufacturers AssociationSOUTHERN AFRICAN PLASTIC PIPEMANUFACTURERS | 2015 Plastics FACTS AND FIGURESA pproximately 55% of all polymer goes into packagingEstimated 1 800companies mainly SMMEsMarket size ex converter is estimated to be around R 50 billionEmploys > 60 000 people in the Plastics industryPLASTICS, PEOPLE and PARTNERSHIPSPLASTICS | 7SA Plastics Industry Market Sectors (2011)Europe ( 2014 )PackagingAutomotive 2,0%%Building & Construction15,0%Electric & Electronic & Appliances6,0%Flexible Packaging26,0%Rigid Packaging 29,0%Automotive & Transport5,0%Engineering 5,0%Sports & Leisure 1,0%Clothing & Footwear 1,0%Other 1,0%Furniture 2,0%Houseware 3,0%Agriculture 4,0% Plastics FACTS AND FIGURES2014 | 2015 Plastics FACTS AND FIGURESP lastics Industry GDP ContributionPlastics Manufacturing contributes approximately.

10 South Africa s Plastics Industry is defined as a priority sector by Government1,6% to South Africa s to the Manufacturing SectorPLASTICS, PEOPLE and PARTNERSHIPSPLASTICS | 9 Apparent Plastics Consumption (2014) Growth vs GDP Growth Plastics FACTS AND FIGURES 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Growth % 1086420-2-4-6-8 Tonnages 0001 8001 6001 4001 2001 0008006004002000 Virgin Tonnages% growth (virgin & recycled)GDP % growthRecycled (Diverted) Tonnages2014 | 2015 Plastics FACTS AND FIGURESA pparent Consumption of Polymer Raw Materials (2014)400 000350 000300 000250 000200 000150 000100 00050 0000 Tonnage per polymerPPPE-HDPE-LD/LLDPETPSPVC 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Plastics , PEOPLE and PARTNERSHIPSPLASTICS | 11 Plastics Trade Balance (2014)