Fecc THE European voice of the chemical distribution

“Fecc: THE European voice of the chemical distribution industry” Ass. ICC, General Assembly Rome, 26 May 2014 Dr. Uta Jensen-Korte, Director General, Fecc

Content • Fecc in a nutshell § Membership § The European distribution sector § Mission & Objectives • Fecc’s activities

Fecc Membership § National Associations: 15 § Company Members: 37 § Associate Members: 9 Fecc represents around 1650 companies of which 830 are distributors with around 30, 000 employees annual sales turnover of about 27 billion Euros Source: Fecc Statistics 2013 (2012 data)

Chemical distribution - ICCTA Key statistical data - Survey 2013 (Data 2012) Fecc Americas ICCTA (Fecc + Americas) 1. 617 609 2. 226 N. of Distributors: 832 455 1. 287 N. of Employees: 32. 158 37. 839 69. 997 27. 2 33. 0* 60. 2 1. 114** 2. 054** 3. 168 N. of Member Companies: Turnover (billion Euros): N. of sites: Source: Fecc/ICCTA Statistics 2013 (2012 data) * Canada not available ** Austria, Brazil Switzerland Denmark not available

Fecc company members 90% listed in the ICIS 2013 Top 100 EU chemical distributors § § § § § ALGOL OY AB AZELIS BARENTZ BIESTERFELD BRENNTAG BTC EUROPE CALDIC CHEMIE BV CAMPI Y JOVE CG CHEMIKALIEN C. H. ERBSLÖH SE CORNELIUS GROUP DKSH EIGENMANN & VERONELLI Sp. A FUCHS KIMYA (Turkey) GROLMAN GROUP HARKE GROUP Aug. HEDINGER Gmb. H & Co. KG HSH Chemie Distribution Group IMCD Group § § § § § INVENTEC (Dehon) JSC RUSKHIMSET (Russia) KRAHN CHEMIE Gmb. H LANXESS Distribution NORDMANN RASSMANN Gmb. H OMYA (Schweiz) AG QUIMIDROGA S. A. QUIMITECNICA. COM R 2 Group SAFECHEM EUROPE Gmb. H STERA CHEMICALS STOCKMEIER-GROUP TELKO TENNANTS DISTRIBUTION Ltd. TER Group UNIVAR Europe Ltd VELOX Gmb. H VWR International, LLC

Fecc membership 15 National Associations: AT (WKO), BE (BACD), CZ (SCHOD), DK (KLS), FI (TKL), FR (UFCC), IE (IACI), IT (Ass. ICC), NL (VHCP), PT (GROQIFAR), ES (AECQ), CH (SGCI), SE P&K), UK (CBA) 9 Associate members: § § § Akzo. Nobel Chemicals BASF Dow Corning Dow Europe Evonik § § Shell Chemicals Europe Solvay SQM Europe Wacker Chemie

European chemical distribution sector Source: BCG study - 2013 * Other W. Europe – Austria, Belgium, Denmark, Finland, Greece, Ireland, Luxembourg, Netherlands, Norway, Portugal & Sweden. ** Central & E. Europe – Bulgaria, Czech R, Estonia, Hungary, Latvia, Lithuania, Romania, Slovakia & Slovenia.

Chemical distribution sector 2011: % Members supplying this sector 2010: % Members with this activity 2011: % Members with this activity Source: Fecc Statistics 2012 (2011 data)

Chemical Distributor Types - Europe Geographical Presence Pan-European Distributors can with reasonable accuracy be characterised by their “business set-up“ and their geographical reach across Europe Pan-European Generalists („Full-line Distributors“) Schematic Pan-European Specialty Distributors („Buy & Build“ / LBO‘s) Traditional Specialty Distributors (often family owned) Regional Alliances National / “Sectorial” Specialty Distributors Regional / National Industrial Chemicals Distributors Focus on Specialities Focus on Industrial Chemicals Business Set-up Source: TER GROUP, Distri. Consult analysis

Chemical Distribution: Key considerations Value added services, access to emerging markets and ability to adapt to regulations and complexity (ATKearney 2013, BCG 2013, Accenture 2012) Projected key value added services Mixing, blending, formulating Customs handling Vendor managed inventory

Chemical Distribution: Forecast • From 2008 to 2012 the chemical distribution market grew by more than 9% (or 7% excluding inflation) • Growth is likely to continue – 6 -7% Source: BCG study - 2013

Mission & Objectives Mission Promote the European chemical distribution industry in order to ensure a sustainable business environment for the sector in the short, medium and long term § § Represent Fecc members' interests at European and international level Foster co-operation within the chemical distribution sector Objectives § § Regulatory affairs Responsible Care Communications Co-operation within the industry

Fecc Strategy 2011 -2014 “Become THE opinion maker within our industry so that we are the natural partner for our members, European Institutions and stakeholders” Motivating Improving Succeeding Sustaining Innovating Out Reaching Networking

Fecc Secretariat Director General Uta Jensen-korte ujk@fecc. org • ICCTA Fecc Secretariat • DCG • CARACAL • SQAS/ESAD etc… Office Assistant Communications assistantfecc@fecc. org Camila Diaz Oliveros cdi@fecc. org • Newsletter / Website • Invoicing • Congress / Events • Media relations • Publications • Copy writing • Administration • … HSE Life Science & Trade RC & LOG Ophélie Roblot Joel D’Silva Jan Thienpont (1 May 13) oro@fecc. org jds@fecc. org jth@fecc. org • SHE Cttee (REACH, CLP, Seveso, Biocides, etc. ) • ECHA contacts • CARACAL • Sherpa DCG etc… • • GTDP Cttee (Pharma, Food, Cosmetics) EXCi. PACT (Board Member & Treasurer) International Trade Cttee Distribution Agreements and Competition Law • Other legal issues • • • RC Cttee PS Cttee Logistics Cttee Precursors Cttee SQAS/ESAD steering Cttee ICCTA backup

Fecc’s activities § Product Stewardship • Joint committee of distributors & manufacturers • Joint Cefic/Fecc PS guidelines (revised) & Fecc PS good practices for Chemical distributors PS Cttee focusses on topics affecting the whole supply chain: • • • 2013: Chlorinated solvents: The time is over only to sell a product 2014: Food Safety: How to comply as a chemical distributor

Fecc’s activities § Responsible Care • Initiative of continuous improvement in health, safety , security and environmental performance • Together with Cefic a voluntary third party verification system was set-up to evaluate performance of chemical distributors, SQAS Distributor / ESAD • Cefic and Fecc works on the integration of corporate social responsibility and sustainability into SQAS and ESAD Fecc actively promotes RC within its membership!

RC/RD Implementation (data 2012) * % Distributors committed to RC/RD by country (2010 -2012) * DATA CH AND A NOT RECEIVED

Activities of the Working Committees § Good Trade and Distribution Practices • Active in all Pharma, food, feed and cosmetics related issues • EXCi. PACT -international GMP and GDP standard for excipients • Asbl set up January 2014 • Responded to EC consultations on APIs and Excipients. • Cosmetics Regulation update document – 2013 • Fecc Regulatory & Quality Symposium March 2014 § International Trade • Analysis/ Factsheets of trade in Magreb, Turkey and Russia • Trade Meeting – Russia and beyond? – November 2013 • Monitors developments pertaining to FTAs and trade barriers • Distribution Agreements & Competition Law Workshop‘s

Activities of the Working Committees • Logistics Committee § Monitors the developments in EU and international legislation § Development of guidance e. g. Best Practice Guidance on the safe (Un)Loading of Road Freight Vehicles § Precursors • Fecc/Cefic commented on the Regulation on explosive & drug precursors • Participation and input to the CBRN Advisory group & subgroups of the Commission • Fecc Model Agreement on voluntary measures on substances subject to Trade controls

Activities of the Working Committees § Safety, Health & Environment • Support for the 2018 REACH registration deadline (DCG, guidance) • Joint industry guidance on supply chain communication & on extended Safety Data Sheets • Involvement in the development of an electronic exchange format for Exposure Scenarios • Member of the ECHA Expert Network on Exposure Scenarios (ENES), 6 th Workshop (13/14 May 2014) • Update on the Seveso Directive & Biocidal Product Regulation

Hot topics § The 2018 deadline and the overall cost of registration • • Transparent and fair cost sharing in SIEFs Staged payment to help an SME that would like to buy a Lo. A Free letter of Access for multiple registered substances between 1 -10 t More acceptance of (Q)SAR for newly registered substances § Extended SDSs § Harmonisation of information to Poison Centres § Improvement of the C & L Inventory § EU Falsified Medicines Directive and related activities § EXCi. PACT § Fecc Model Distribution Agreement

Partnership in the supply chain Building alliances § ICCA-ICCTA, Cefic-Fecc § Fecc an Affiliated Association of Cefic • Joint forces for advoacy & expertise to mutual benefit § DUCC • A. I. S. E, CEPE, Cosmetics Europe, EFCC, ECPA, FEA, Fecc, FEICA, I&P Europe, IFRA • Contributing constructively to the implementation of REACH &CLP

Conclusions § Benefits of Fecc membership • Majority of chemicals legislation initiated in Brussels important to have contact with EU institutions to track and influence, to ensure your concerns are heard • • Technical advocacy and advice to membership • Networking opportunities with institutions and within membership • § Early awareness of legislative developments Industry visibility due to Fecc membership Fecc and NA’s have different roles – they are complementary We look forward to continuing enhanced cooperation!

Thank you for your attention! Visit our website www. fecc. org