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RECOMMUNITY

MRN/SWANA – June 19, 2014Robert Anderson, Regional Business Development Manager North

East and Mid Atlantic Regions

Who is hoping for a long, hot, dry summer?

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Super Storm Sandy 11/2012

Port disruption 2/2013

Historic rainfall summer fall 2013 Polar Vortex coldest winter in memory

And SNOW is not an acceptable material!

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And to top it all off, Green Fence

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Overview

■ ReCommunity Overview

■ ReCommunity Delaware

■ Single stream trend – don’t forget to educate!

■ Green Fence Overview

■ ReCommunity and Green Fence

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RECOMMUNITY

OVERVIEW

30+ years of Industry Leading Experience

Formerly FCR, GLR, and Hudson Baylor

Headquartered in Charlotte, NC

ReCommunity is the largest pure-play recycling company

in the United States with 33 facilities in 14 states

More than 1.8 million annual tons processed

More than 1500 Employees

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Proven

ReCommunity Stats:

33 Facilities

29 MRFs

4 Transfer Stations

ReCommunity Locations

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Proven: Facility Map

No Conflicts

■ No conflicts mean:

‐ We don’t own landfills.

‐ We don’t own collection trucks.

‐ We don’t own paper mills.

‐ We live and breath on maximizing recovery.

‐ We designed our model that way.

■ We don’t own them because if we did, our decisions

would not be based solely on maximizing recovery for

communities.

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RECOMMUNITY

DELAWARE

Public-Private Partnership

ReCommunity has been a trusted recycling partner to the

Delaware Solid Waste Authority (DSWA) since 2007

On June 8, 2010 the State of Delaware signed the

Universal Recycling law requiring all haulers to provide

curbside collection and a cart for recyclable materials

The DSWA recognized the Universal Recycling Law would

require an in-state processing solution and issued an RFP

to re-purpose an existing recycling campus that was

dormant for many years.

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Public-Private Partnership

ReCommunity responded by providing a solution to

repurpose the existing DSWA asset and

design/build/operate a state-of-the-art MRF

On February 14, 2012 ReCommunity executed a 20-

year agreement with the DSWA

ReCommunity invested $15 million to install a leading-

edge BHS processing system by repurposing two

existing buildings with a total of 64,000 square feet at

the DSWA’s Delaware Recycling Center (DRC).

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Overall Project:• $15 Million

• $2 Million facility upgrades

• $13 Million in Equipment

• 40 new Delaware jobs

• 20 year contractual commitment

Scope of the Project

RePurposing DRC

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ReCommunity Delaware

ReCommunity Delaware

40+ green jobs

35 tons per hour of

single-stream

Capable of processing

150,000 TPY

Currently processing

7,000+ tons per month

Currently serves

communities in DE and

MD

ReCommunity Delaware

1 processing lines

2 balers

5 optical sorters

35 tons per hour

of single-stream

Less than 10%

residue rate

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RECOMMUNITY

MRF SYSTEMS

■ Continuously invest

in the most advanced

processing technologies to

maximize the volume and

quality of recyclables.

■ Efficient Site Design

■ Process starts at the tip floor

■ Pre-sort is crucial

Automated and

Efficient MRF’s

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State-of-the-Art MRFs

Reduces collection costs

Reduces carbon footprint

Reduces disposal fees

to landfill

Communities typically

increase recycling

tonnages by 25%-60%

Single Stream Conversion

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Trends – Single vs. Dual Stream

0

5

10

15

20

25

30

35

40

45

2009 2010 2011 2012

Single Stream

Dual Stream

Top 50 Communities in U.S.

Advanced processing technology

Commodity marketing expertise

Allows expanded acceptable

materials

Easier and simpler for recyclers

BEWARE: Continue Education and

don’t open it up to the Kitchen Sink

Acceptable Materials Expansion

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Interactive MRF

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Interactive

MRF

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Virtual MRF Tour

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GREEN FENCE

OVERVIEW

Green Fence Overview

■ What is Green Fence?

- In February 2013, the Chinese government initiated

a 10-month policy known as Operation Green Fence

- Green Fence was intended to curtail contaminated or

wet bales of plastics, fiber, and scrap metal

■ How did it start?

- For years, China has been importing material with

higher than acceptable contamination with little

enforcement

- Green Fence is focused on reversing that trend

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Green Fence Impact

■ Who does it impact?

- All stakeholders in the U.S. recycling industry have

been impacted directly or indirectly

- MRF operators have had serious problems with

rejected loads

- Chinese government will inspect every imported bale

and container and reject any shipment containing

1.5% or more contaminants and/or moisture of 12%.

- Containers that fail inspection will be returned to

sender, without ability to redirect

After several months of data, the results are clear:

The Chinese government has reported a 5.5%

decrease in plastic scrap imports from January to

May 2013

Q1 2013 vRecovered paper shipments are down 18.4

percent in comparison to the same period in 2012.

Several recovered paper shippers are more and

more unwilling to ship to China, and they are seeking

domestic orders instead.

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Early Results

After several months of data, the results are clear:

$5

247

800,000

$2,700

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Early Results

After several months of data, the results are clear:

$5 billion of recovered plastic sent to china annually

247

800,000

$2,700

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Early Results

After several months of data, the results are clear:

$5 billion of recovered plastic sent to china annually

247 export license have been suspended

800,000

$2,700

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Early Results

After several months of data, the results are clear:

$5 billion of recovered plastic sent to china annually

247 export license have been suspended

800,000 tons have been rejected since February

$2,700

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Early Results

After several months of data, the results are clear:

$5 billion of recovered plastic sent to china annually

247 export license have been suspended

800,000 tons have been rejected since February

$2,700 estimate cost to return container from china

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Early Results

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Making the Headlines

After 12 months, the results are clear:

Both fiber and plastic markets have experienced

significant disruptions in both movement and pricing

Layers of operational costs, confusion, and

inspections have been added.

Export buyers have become very selective about

which sellers from which they will purchase material.

Domestic mills are experiencing unusually high

inventories of newspaper and mixed paper

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12 Month Results

Going Forward

■ Green Fence went up and it most likely will not come

down

■ Material movement and price declines will eventually

rebound once other global markets ramp up.

■ Indonesia, Vietnam and Malaysia

Long-term there will be a shift to more domestic uses

and less reliance on foreign markets

Historical Commodity Pricing

Historical chart of average commodity prices based on a

standard mix of resources (ONP, OCC, Plastics, Aluminum,

Ferrous Metals, and Glass) across a national footprint.

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Commodity Volume

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31.9%

21.4% 20.8%

12.5%

3.4% 3.2%2.1% 2.0%

1.2% 0.9% 0.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

News #8 Glass OCC #11 Residue Other Fiber PET Ferrous Other HDPE Pig HDPE Nat AL

2013 Commodity Volume by Grade

Commodity Revenue

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29.4%

27.4%

12.7%

10.0%

6.7%5.3%

4.5%3.2%

2.3%

0.0%

-1.6%News #8 OCC #11 PET AL HDPE Nat HDPE Pig Ferrous Other Fiber Other Residue Glass

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2013 Commodity Revenue by Grade

ONP Domestic 12-Month Charts

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55

60

65

70

75

80

Feb '13 Mar '13 Apr '13 May '13 Jun '13 Jul '13 Aug '13 Sept '13 Oct "13 Nov '13 Dec '13 Jan '14

ONP - Domestic

ONP - Domestic

ONP Export 12-Month Charts

100

105

110

115

120

125

130

135

Feb '13 Mar '13 Apr '13 May '13 Jun '13 Jul '13 Aug '13 Sept '13 Oct "13 Nov '13 Dec '13 Jan '14

ONP - Export

ONP - Export

Going Forward

■ Green Fence has been successful at decreasing

contaminated materials from being imported into

China

■ Green Fence policies will most likely continue in

foreseeable future

■ Material movement and price declines will eventually

rebound once other global markets ramp up

Long-term there will be a shift to more domestic uses

and less reliance on foreign markets

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RECOMMUNITY

& GREEN FENCE

ReCommunity’s Response

■ ReCommunity has increased operational efforts to

maximize quality:

- Increased bale inspections 3x-4x to ensure bales

are dry and have minimal contaminants.

- Placed additional quality control workers throughout

our MRFs

- Additional measures are also additional costs

- However, ReCommunity will always focus on

maximizing the quality of material for our community

partners and downstream processors.

ReCommunity Partners

■ How does ReCommunity work with our partners on

Green Fence?

- Communicate the impacts and fairly share the

burden of these unexpected market changes

- Proactive operational measures

- Maximize recovery for our community partners

- Maximize value for our community partners

Long-Term Solution

How will ReCommunity solve the problem long-term?

- Further increase bale quality

- Find and establish better domestic markets

- Educate customers and generators

- Work with community partners to customize and

maximize solutions

- Continue to evolve and establish best practices

■ Interactive MRF

■ Animated Recycling

Videos

■ Teacher-approved

Recycling Lesson Plans

■ Acceptable Materials

Posters

■ Annual Sustainability

Reports

ReCommunity.com/Education

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Thank You

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