EUROPUR General Assembly Cascais, June 14 & 15, 2001 SLABSTOCK FLEXIBLE FOAM MARKET REVIEW SLABSTOCK FLEXIBLE FOAM MARKET REVIEW General economic outlookGeneral

EUROPUR General AssemblyCascais, June 14 & 15, 2001

SLABSTOCK FLEXIBLE FOAMSLABSTOCK FLEXIBLE FOAM

MARKET REVIEWMARKET REVIEWSLABSTOCK FLEXIBLE FOAMSLABSTOCK FLEXIBLE FOAM

MARKET REVIEWMARKET REVIEW

• General economic outlookGeneral economic outlook

• 2000 - slabstock production volumes2000 - slabstock production volumes

• The main marketsThe main markets

• Upholstered furnitureUpholstered furniture

• BeddingBedding

• AutomotiveAutomotive

W. DupontW. Dupont


EXECUTIVE SUMMARYEXECUTIVE SUMMARY

’’99 & 99 & ’00’00 SLABSTOCK MARKET INDICATORS SLABSTOCK MARKET INDICATORS

19991999 20002000

GDP-growthGDP-growth + 2.4%+ 2.4% +3.4%+3.4%

Raw materials price index Raw materials price index etherether - 4.0% - 4.0% +13.0%+13.0% esterester - 6.0%- 6.0% + 8.0%+ 8.0%

Slabstock marketSlabstock market ether volumeether volume + 3.2% + 3.2%

+4.7%+4.7% ester volumeester volume + 3.8% +3.5%+ 3.8% +3.5%

Upholstered furniture marketUpholstered furniture market + 2.0% + 2.0%

+1.8%+1.8%

Bedding marketBedding market + 0.9%+ 0.9% +0.5% +0.5%

Car/LCV marketCar/LCV market + 1.8%+ 1.8% +0.3%+0.3%


SLABSTOCK MARKET REVIEWSLABSTOCK MARKET REVIEW

USA- JAPAN - EU USA- JAPAN - EU KEY ECONOMIC INDICATORSKEY ECONOMIC INDICATORS

Source : EOCD & EC (04/01)

’99 ’00 ’01 ’02 ’99 ’00 ’01 ’02 ’99 ’00 ’01 ’02

USA 4.2 5.2 3.5 3.3 1.8 2.5 2.1 2.2 4.2 4.0 4.2 4.5

Japan 0.2 1.9 2.3 2.0 -0.5 -0.5 0.0 -0.14.74.7 4.6 4.6

Euro zone2.4 3.4 2.7 2.7 1.4 2.1 2.3 2.1 9.1 8.2 7.6 7.2

GDP Growth (%) Inflation (%)Unemployment

rate (% lab.f.)



ECONOMIC OUTLOOKECONOMIC OUTLOOKMACRO-ECONOMIC STRUCTURAL CHANGESMACRO-ECONOMIC STRUCTURAL CHANGES

• Implementation of the monetary union & Implementation of the monetary union & EURO (12)EURO (12)

• Enlargement of the EU(15): +12 countriesEnlargement of the EU(15): +12 countries

• Information societyInformation society

• ImmigrationImmigration

• Active labour force vs retired population Active labour force vs retired population changingchanging

• Increase in age group (65+): +27 Mio people Increase in age group (65+): +27 Mio people in 25 yearsin 25 years•Source: Source:

OECD OECD


1999 2000

EU-15 + 3.8% + 4.3%

Non EU-member states+ 0.5% + 6.5%

Q1, 2001 + 1.2% *

* B/F/D/I/NL/SP


’’99 & ’00 POLYETHER FOAM PRODUCTION 99 & ’00 POLYETHER FOAM PRODUCTION EUROPEEUROPE

Source : Europur


in metric tonnes 19981998 19991999 20002000

EU15 +N+CH 393,120 416,197 433,795

Non EU-memberstates (Eastern E.)*58,350* 106,950* 113,860*

Total 451,470 523,147 547,655

*Estimated


’’00 POLYETHER FOAM PRODUCTION EUROPE00 POLYETHER FOAM PRODUCTION EUROPEEuropur membersEuropur members

Source : Europur



’’00 POLYETHER FOAM PRODUCTION BY 00 POLYETHER FOAM PRODUCTION BY COUNTRYCOUNTRY

Other

22%

Spain

5%NL

6%

Belgium

8% Poland

11%

UK

11%

France

11%

Germany

13%

I taly

14%

Source : Europur



POLYESTER FOAM PRODUCTION WEST-POLYESTER FOAM PRODUCTION WEST-EUROPEEUROPE

6365

6871

40

50

60

70

in '000 tonnes

'97 '98 '99 '00

in tonnes 62.813 65.139 67.610 70.623

Growth :Growth : + 8.6%+ 8.6% +3.7%+3.7%+ 3.8% +4.5%+ 3.8% +4.5%

Source : Europur



MAIN MARKETS : UPHOLSTERED FURNITUREMAIN MARKETS : UPHOLSTERED FURNITURE

INDUSTRY PROFILEINDUSTRY PROFILE• Production value ’00 : 12.2 billion Production value ’00 : 12.2 billion

EUROEURO

• Employment : 135,000Employment : 135,000

• Key players : Key players :

Welle,Schieder,Hukla,Steinhoff Welle,Schieder,Hukla,Steinhoff (Germany) (Germany)

Natuzzi (Italy)Natuzzi (Italy)Christy Tyler (UK)Christy Tyler (UK)Dumeste (Cauval Ind.,FR) Dumeste (Cauval Ind.,FR)

Source : UEA


• 2/3 fabric, 1/3 leather

• Volume ValueHigh end 10% 15%Medium 35% 45%Low end 55% 40%

• Contract furniture only 2-3% of total

UPHOLSTERED FURNITUREUPHOLSTERED FURNITURE

MARKET SEGMENTATIONMARKET SEGMENTATION


• MM Euro 1998 1999 2000

Value 11,300 11,582 12,220

% variation 2.7% 2.5% 5.5%

• In volume terms : 43.2 million armchair equivalents

• Volume growth is only 1/3 of value growth


PRODUCTION EU TOTALPRODUCTION EU TOTAL

Source: UEA


Germany

19%

Italy

31%

UK

14%

France

8%

Spain

8%

Others

20%

Over the last 2 years• market share Italy rose by 3% • market share Germany decreased by 3%


PRODUCTION ’00 BY COUNTRYPRODUCTION ’00 BY COUNTRY

Source: UEA


Extra

35%

Intra

65%

Total : 3.9 billion EURO

Growth : 19 % in 1998-2000 period


EXPORTSEXPORTS

Source: UEA


• Growth : + 13.9 % in 1998-2000 period

• Total ´00 : 3.0 billion EURO


IMPORTS ( Intra & Outside EU )IMPORTS ( Intra & Outside EU )

Source: UEA


UPHOLSTERED FURNITUREUPHOLSTERED FURNITUREAVERAGE MANUFACTURING COST AVERAGE MANUFACTURING COST

STRUCTURESTRUCTUREYEAR 2000YEAR 2000

Raw materialsRaw materials Variable & Variable & fixedfixed

productionproduction

49%49% 51%51%

WoodWood18%18%

FabricsFabrics25%25%

LeatherLeather20%20%

FoamFoam16%16%

OtherOther21%21%

Source : UEA


MAIN MARKETS : BEDDINGMAIN MARKETS : BEDDING

• European Bedding Industries Association (EBIA) founded 1st semester 2000

• Member countries : AustriaBelgiumFranceGermanyItalyNetherlands Spain

• Better statistical data available now


BEDDINGBEDDING

2000 MATTRESS MARKET SIZE2000 MATTRESS MARKET SIZE

# of units % of total

Austria 760,000 3%

Belgium 770,000 3%

France 4,850,000 19%

Germany 7,500,000 29%

Italy 4,350,000 17%

Netherlands 1,200,000 5%

Spain 2,580,000 10%

UK 3,650,000 14%

25,660,000


NL3%

D41%

F11%

B1%

A2%

I23%

E19%

A

B

F

D

I

NL

E

Market: Spring Mattresses 2000Market: Spring Mattresses 2000Total volume: 13.439.000 units


A3%

E1%

B7%

NL11%

I13%

D19%

F46%

A

B

F

D

I

NL

E

Market: FPF Mattresses 2000Market: FPF Mattresses 2000 Total volume : 5.710.000 units


E2%

NL6%

B5%A

10%

I18%

D33%

F26%

A

B

F

D

I

NL

E

Market: Latex Mattresses 2000Market: Latex Mattresses 2000 Total volume : 2.715.000 units


Volume (in ‘000) Value in mio € Average Price in €

Spring 13.500 61% 1.100 56% 82

FPF 5.800 26% 400 20% 69

Latex 2.700 12% 400 20% 148

Others 220 1% 75 4%343

Total 22.220 100% 1.975 100%

Mattress Market (2000)Mattress Market (2000)


97/98 98/99 99/00

+ 2.8% + 0.9% + 0.5%

BEDDINGBEDDING

ANNUAL VOLUME GROWTHANNUAL VOLUME GROWTH


MAIN MARKETS : AUTOMOTIVEMAIN MARKETS : AUTOMOTIVE

MARKET SIZE DEVELOPMENTMARKET SIZE DEVELOPMENTWest-European assemblyWest-European assembly

80

90

100

110

120

'97 '98 '99 '00

Volume Volume 20002000

Cars 14,634,000

LCV 1,680,000

Truck/bus 443,000

16,757,000

%


AUTOMOTIVEAUTOMOTIVE

CAR ASSEMBLY BY COUNTRYCAR ASSEMBLY BY COUNTRYWest-EuropeWest-Europe

Other

5%

Belgium

6%Italy

10%

UK

11%

Spain

17%

Germany

31%

France

20%

2000: 14.634.000 2000: 14.634.000 carscars Source: J.D. PowerSource: J.D. Power



MARKET SIZE DEVELOPMENTMARKET SIZE DEVELOPMENTEast-European market East-European market

((CZ,HU, PL, RO, RU, SK, SL, TU)CZ,HU, PL, RO, RU, SK, SL, TU)

100100

104108

110106

115118

75

100

125

'97 '98 '99 '00

Cars

LCV

Volume Volume 200020002,717,000

333,000

3,050,000

%



CAR ASSEMBLY BY COUNTRYCAR ASSEMBLY BY COUNTRYEast-EuropeEast-Europe

Slovenia

4%

Hungary

5%

Slovakia

7%

Turkey

12%

Czechia

13%

Russia

38%

Poland

21%

2000: 2.717.000 cars2000: 2.717.000 carsSource: J.D. PowerSource: J.D. Power


EXECUTIVE SUMMARYEXECUTIVE SUMMARY

2001 FORECAST2001 FORECAST

20002000 20012001

GDP-growthGDP-growth + 3.4%+ 3.4%+2.7%+2.7%

Raw materials price index Raw materials price index etherether + + 13% +3.5%13% +3.5%

esterester + 8% +3.2%+ 8% +3.2%

Slabstock market Slabstock market ether volumeether volume + + 4.7% + 1.0%4.7% + 1.0% ester volumeester volume + 3.5% + + 3.5% + 2.5%2.5%

Upholstered furniture marketUpholstered furniture market + 1.8% + + 1.8% + 1,0%1,0%

Bedding marketBedding market + 0.5% + 0.5% +0,75%+0,75%

Car market Car market + 0.3% -1.5%+ 0.3% -1.5%

Documents

EUROPUR General Assembly Cascais, June 14 & 15, 2001 SLABSTOCK FLEXIBLE FOAM MARKET REVIEW SLABSTOCK FLEXIBLE FOAM MARKET REVIEW General economic outlookGeneral