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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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%
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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.)
EUROPUR General AssemblyCascais, June 14 & 15, 2001
SLABSTOCK MARKET REVIEWSLABSTOCK MARKET REVIEW
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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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
SLABSTOCK MARKET REVIEWSLABSTOCK MARKET REVIEW
’’99 & ’00 POLYETHER FOAM PRODUCTION 99 & ’00 POLYETHER FOAM PRODUCTION EUROPEEUROPE
Source : Europur
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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
SLABSTOCK MARKET REVIEWSLABSTOCK MARKET REVIEW
’’00 POLYETHER FOAM PRODUCTION EUROPE00 POLYETHER FOAM PRODUCTION EUROPEEuropur membersEuropur members
Source : Europur
EUROPUR General AssemblyCascais, June 14 & 15, 2001
SLABSTOCK MARKET REVIEWSLABSTOCK MARKET REVIEW
’’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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
SLABSTOCK MARKET REVIEWSLABSTOCK MARKET REVIEW
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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
SLABSTOCK MARKET REVIEWSLABSTOCK MARKET REVIEW
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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
• 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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
• 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
UPHOLSTERED FURNITUREUPHOLSTERED FURNITURE
PRODUCTION EU TOTALPRODUCTION EU TOTAL
Source: UEA
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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%
UPHOLSTERED FURNITUREUPHOLSTERED FURNITURE
PRODUCTION ’00 BY COUNTRYPRODUCTION ’00 BY COUNTRY
Source: UEA
EUROPUR General AssemblyCascais, June 14 & 15, 2001
Extra
35%
Intra
65%
Total : 3.9 billion EURO
Growth : 19 % in 1998-2000 period
UPHOLSTERED FURNITUREUPHOLSTERED FURNITURE
EXPORTSEXPORTS
Source: UEA
EUROPUR General AssemblyCascais, June 14 & 15, 2001
• Growth : + 13.9 % in 1998-2000 period
• Total ´00 : 3.0 billion EURO
UPHOLSTERED FURNITUREUPHOLSTERED FURNITURE
IMPORTS ( Intra & Outside EU )IMPORTS ( Intra & Outside EU )
Source: UEA
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
MAIN MARKETS : BEDDINGMAIN MARKETS : BEDDING
• European Bedding Industries Association (EBIA) founded 1st semester 2000
• Member countries : AustriaBelgiumFranceGermanyItalyNetherlands Spain
• Better statistical data available now
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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)
EUROPUR General AssemblyCascais, June 14 & 15, 2001
97/98 98/99 99/00
+ 2.8% + 0.9% + 0.5%
BEDDINGBEDDING
ANNUAL VOLUME GROWTHANNUAL VOLUME GROWTH
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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
%
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
AUTOMOTIVEAUTOMOTIVE
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
%
EUROPUR General AssemblyCascais, June 14 & 15, 2001
AUTOMOTIVEAUTOMOTIVE
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
EUROPUR General AssemblyCascais, June 14 & 15, 2001
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%