www.vinylplus.eu

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“Vinyl Europe”VinylPlus, AGPU, PVC Forum Italia and the BPF Vinyls Group

May 12 2017Stefan Eingärtner

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Proposal „Vinyl Europe“ - Summary

4 Steps completed by end of 2018

1. A first (symbolic) step: The 3 National associations become „Associated Members“ of VinylPlus. They are the national partners for corporatecommunication, use the VinylPlus logo and follow the VinylPlus communicationand corporate branding strategy.

2. Forming a Leadership Team (LT): A new LT with european and national representatives is formed to cooperate closely, implement VinylPlus Board decisions and push the development of the VinylPlus brand value.

3. One common branding: The 3 national bodies will execute all sustainability activities under the brand “VinylPlus” (latest by December 2018), thus allowing one year of rebranding transition. The current legal entities remain in place. In 2018 a new format for the VinylPlus GA along with the VSF 2018 is realized.

4. One financial scheme: The LT develops a new financing scheme for VinylPlus in Europe to start 2019/2020. The VinylPlus Board will further improve working processes, management structures and composition on a European level.

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Memorandum of Understanding (MOU)

between AGPU, BPF Vinyls Grp, PVC Forum Italia and VinylPlus:

….have agreed to enter into a process to further increase their collaboration. Until end of 2018 we want to reach one common branding under “VinylPlus” for all PVC sustainability activities, one voice in form of a joint communication concept, one leadership team sharing learning and optimizing resources with a final step to have one common funding mechanism.

All other national PVC groups in Europe shall be invited to join this format of collaboration in the coming years.

….want to reach a higher return on the investment of all current supporters and attract more companies across the European PVC value chain to join the VinylPlus commitment.

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Step 1 (Semester 1 - 2017)

A/ The 3 national associations officially join VinylPlus as associations (status as “associated member”) for 1 € membership fee per year. The companies will be mentioned in the next VinylPlus progress report as a separate category (unless a company decides against).

B/ With this step the 3 national associations become the only national partner for corporate communication in their territory using the VinylPlus logo. They commit to follow the EU wide approved VinylPlus Communication strategy and corporate branding of VinylPlus.

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Step 2 ( Semester 2 - 2017)

A/ The new VinylPlus Leadership team (VinylPlus LT) is formed by the VinylPlus General Manager and the 3 association directors, one representative from the Vinyl Foundation and a VinylPlus advisor (upon request). The team will implement the strategic decisions of the VinylPlus board, develop a coordinated annual budget and push the development of a higher brand value.

B/ The VinylPlus LT members will consult about their exact collaboration rules, work priorities and allocated tasks with the “Vinyl Europe” Task Force. The team shall meet three times per year alongside the current PVC network meetings (work plan shown in annex 1). The VinylPlus GM will report to the VinylPlusBoard about the outcome of the LT work. Upon request LT members are invited in the VinylPlus Board. The Task Force “Vinyl Europe” will continue to assist the LT in the implementation process.

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Leadership Team work plan

LT work content

VinylPlus program elements

immediatly aligned, fully

implemented in the country VinylPlus program translation into the country

Draft version / LT to develop VinylPlus representation in front of all stakeholders

31.03.2017 Viceversa access to resources and information

Budgets and projects discussed and coordinated together

Recycling network

Joint action plan to increase number of partners

Advocacy

VinylPlus communication strategy

VinylPlus corporate branding strategy

Elements that will be step by

step integrated over 18

months until end of 2018,

today some grey zones with a

risk of competition,

promotion of PVC through

selling sustainability Input and development of VinyPlus content post 2020

Newsletters

Newspapers

Complete budget, all projects discussed and decided together

Specific local projects, pure

PVC promotion, points staying

outside the VinylPlus

branding for now, medium-

longterm logic has to evolve, Specific national industry projects (like Soft PVC campaign Germany)

PVC for pipes, cables and med

Others tbd

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Step 3 (Semester 1 - 2018) 1

A/ The VinylPlus LT will organize the first Annual General Assembly of VinylPlus in spring 2018 along with the Vinyl Sustainability Forum. (work starting in 2017) Three sessions will be held:

1. VinylPlus Board meeting and GA voting members

2. Extended GA to all the VinylPlus members (including de facto all members from the 3 National bodies and from the Vinyl Foundation)

3. Public event with external stakeholders (VSF).

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Step 3 (Semester 1 - 2018) 2

B/ The 3 national bodies will execute all sustainability activities under the brand “VinylPlus”, as soon as possible but latest by December 2018, thus allowing one year as a rebranding transition. The current legal entities remain formally in place. The VinylPlusLT will integrate all current initiatives of the 4 bodies step by step. As mentioned under annex 1 some specific local PVC projects and local promotion activities will remain primarily under the responsibility of the national organizations.

C/ The VinylPlus LT works on expanding the VinylPlus brand to other European countries.

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Step 4 (Semester 2 - 2018)

A/ The VinylPlus LT proposes a new financing scheme for VinylPlusin Europe which can start from 2019/2020 on. The proposal shall be submitted to the Task Force “Vinyl Europe” early in 2018. The scheme should include a suitable way to safeguard a national minimum income for staff, administration and purely national projects.

B/ The VinylPlus Board shall drive the process to further improve its working processes, management structure and composition on a European level. The VinylPlus LT will assist and propose such steps.

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Back up

1. Chronology „Vinyl Europe“/Task Force + Working Grp

2. Targets of „Vinyl Europe“ project (december 2016)

3. Updated organizational set up (proposed 10 / 2016)

4. Funding headlines

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1.1. Project „Vinyl Europe“ Chronology

September 2015: Task Force (TF) „Vinyl Europe“ (VinylPlus and AGPU) starts

January 2016: First proposal for a new organisational setup developed

March 2016: Working Group delivers first idea for a future financial scheme

May 2016: TF presents idea to VinylPlus board

June 2016: National organisations and sectors discuss proposal, give feed back

July 2016: TF evaluates feed back and adjusts concept

October 2016: Modified setup discussed at VinylPlus Board

December 2016: 4 step concept proposed by Brigitte Dero a.o.

January 2017: TF and Working Group agree to work along 4 step concept

March 2017: Working Group presents a joint 4 step proposal for a 2 year process

May 2 2017: TF and Working Group agree on MOU

May 10 2017: VinylPlus board approoves MOU

Until early July 2017: VinylPlus and national organisations sign MOU

December 2018: Proposed 4 step process completed

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1.2. Project team participants

Task Force Vinyl Europe

Dirk Breitbach

Axel Bruder

Josef Ertl

Andreas Hartleif

Ettore Nanni

Joachim Tremmel

Brigitte Dero

Working Group

Brigitte Dero

Carlo Ciotti

Thomas Hülsmann

Roger Mottram

Moderator Stefan Eingärtner

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2.1. Sharpening the target

Level 1

The PVC value chain in Europe wants to create a supportive business environment and position PVC as a material of choice.

PVC guarantees high performance in terms of quality, value and environmental safety throughout its value chain.

PVC helps others to reach their sustainability goals and is seen as a safe material providing convenience, comfort and high social value, as well as having good sustainability credentials.

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2.2. Sharpening the target

Level 2

Interlink all Vinyl activities and speak with 1 voice in Europe

Orchestrate all activities by leveraging the strengths and skills of all organizations involved (remain strong on national level)

Increase efficiency of all resources engaged

Convince more companies in the PVC value chain to join

Enhance visibility to all stakeholders

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2.3. Sharpening the target

Level 3

Reorganize the VinylPlus bodies to achieve national involvement and pan European orchestration

Start via a nucleus involving Brussels + 3 countries, then expand

Establish a “European Leadership Team” (LT) with one joint budget

Establish a “Steering Board”, tight control, leadership as companies

Develop a value proposition through a downstream brand / tag

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3. Organisation proposed (December 2016)

VinylPlus

General Assembly

VinylPlus Board

Steering Board

Leadership Team

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3.1.1. VinylPlus General Assembly

Involves all VinylPlus partners, sector associations, national bodies

Delivery / Key purpose:

• Divided into a public section (General Annual Meeting/convey

messages/discussion forum) and an internal section (General Assembly), where

specifically nominated company delegates execute their voting rights

• Highest decision making and representation level

• Delivers official approvals / formal decisions on strategy, overall targets, budget,

high level HR

• Fulfils the formal requirements as European association (Law/Tax)

Main agenda: • Make sure that PVC can keep “the licence to market / operate”, but also become

a “material of choice” where it performs best

• Determines longer term vision / concentrates on strategy debate and longer

term targets (time windows like in a company 3 to 5 years)

• Nominates members of the Steering Board

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3.1.2. VinylPlus General Assembly

Members:

• All companies participating in the VinylPlus program are invited to the public part

as well as representatives from national Vinyl organisations and sector

organizations.

• The delegates for the internal voting part should be company representatives, nominated by the four VPlus member associations, multi – representation (group of companies, speaker of sector association, country) welcome

Voting: • consensus preferred, if not possible voting / according to voting rights.

(Future option: distribute shares with voting rights: 1 Euro / 1 vote)

Frequency: • 1 x for the Annual Member Assembly / combined with the VSF (+ external guests)• 2 x / year (spring – annual report / VSF and autumn - budget) for the internal

voting part and the selected delegates.

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3.2.1. VinylPlus Steering Board

Involves nominated company representatives

Delivery / Key purpose: Detailed strategy, target setting and LT activity review Develop annual budget for formal approval by the VinylPlus GA Steer / control the budget / actual spending

Main agenda: Set annual work targets, review LT performance Determine priorities = most sustainable way to spend the money Push the development of a brand value, increase program participationNominate MT members and approve Committees/WorkingGroups/ TFs

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3.2.2. VinylPlus Steering Board

Members: Members are nominated by the VinylPlus GA and should be company

representatives 2 from converters (rigid/flexible) 2 from ECVM 1 from ESPA 1 from ECPI

(VinylPlus Chairman is chairman of this group)MT members to report and receive leadership

Voting:consensus decisions if possible, formal final decisions by VinylPlus GA.Frequency: 4 x / year (November = budget for next year / early summer = review), of which 2 meetings are organized in combination with the VinylPlus GA.

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4. Funding / Financial concept

“This project is not about saving money but about reaching a higher effectiveness and efficiency for the industry investment”.

The leading investors are committed to keep the current funding level during 3 years as long as the project shows progress and achieves the milestone targets.

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4.1. Shadow Budget (2016/2017)VinylPlus + 3 countries – ca. 6.200 TEuro

Technical projects, Recycling

47%

Direct staff23%

Communication, PR, Advocacy

24%

Others6%

Technical projects, Recycling Direct staff Communication, PR, Advocacy Others

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4.2. Funding „Vinyl Europe“

The long-term target for a funding model is to:

Invite all 101 national members that are not yet VinylPluspartners to join the VinylPlus program.

Offer to all 57 VinylPlus partners that are not yet national members to join the national organisations.

Attract as many of the 800 free riders who have so far not contributed at all.

A suitable long term financing model is currently developed as well as ideas for a transition period of 2 to 3 years.