PAKOMAK DOO Skopje Company for packaging and packaging waste management

1. PAKOMAK DOO Skopje Company for packaging and packaging waste management Plitvice, May 2014

2. Basic Data Founded: 03.12.2010 Address: blv. PartizanskiOdredi, PortaVlae Blok 4 1000 Skopje, R. Macedonia • Founders: • Pivara Skopje AD - Skopje • PrilepskaPivarnica AD - Prilep • Vitaminka AD - Prilep • Pelisterka DOO - Skopje • Magroni DOO - Skopje • KodingDooel - Kavadarci • Kozuvcanka DOO - Kavadarci • VivaksDooel - Skopje • BlagojGjorev AD - Veles • VV Tikves AD - Kavadarci • VV Stobi AD - Rosoman Population: 2,1 million Total Packaging Waste 2013: 106.000 tons annual License granted by the Ministry: 10.01.2011

3. Basic Data Estimated fractions of packaging waste in Macedonia: Paper 35-40% of the total volume Plastic 32-35% Glass 17-20% Metal 4-6% Composites 4-6% Wood 8-10% EUROSTAT data for 2008 shows that in EU the average packaging waste per capita is in the range of 40-233 kg/person/year. Average for EU in 2008 was 164 kg packaging waste /capita. In Macedonia the average is 50 kg packaging waste/capita. The total waste (all types) per capita in Macedonia is estimated at cc.300-330 kg/year.

4. Goals of PAKOMAK • Fulfil the National Goals for packaging waste, meaning that by 2020, 60% of total packaging waste (plastic, paper, metal cans, glass, wood) in Macedonia must be recycled or energy recovered! To achieve the goals, PAKOMAK and municipalities has to: • Increase the capacity of communal infrastructure for “primary separate collection” of packaging waste, apart from so called “wet” communal waste (bins, containers, trucks..) • Increase the capacity for “secondary selection” of primary collected packaging waste (sorting plants) • Increase the public awareness for the need of the separate selection and global and local eco-benefits of recycling

5. Five Principles of PAKOMAK • Fulfilment of the Packaging Ordinance with greatest possible ecological benefit and minimum economic effort • Fee calculation for clients WITHOUT PROFIT; no distribution of unintentional surplus to owners • Transparent and auditable operation • Equal treatment of clients • Acting in goodwill partnership with the state ministries and the local communities

6. Operational activities PAKOMAK estimates that by 2020 the municipalities together with packaging waste management companies, have to distribute min. 10.000 containers for “primary” separate collection of the packaging waste. It is 1.300 containers per year by 2020! Additionally, at least 3 regional sorting plants in the country has to be installed, to “secondary“ separate paper, plastic, metal and glass. Government institutions and municipalities has to plan these investments in infrastructure in their budgets. PAKOMAK, as an industry representative, always do so!

7. Operational activities

8. Operational activities

13. Sales and Marketing activities By 31.12.2013, PAKOMAK has over 680 clients/companies! Slogans: THE PACKAGING THAT HAS A PAST, MAY ALSO HAVE A FUTURE! Be IN, use RECYCLE BIN!

14. Sales and Marketing activities • The structure of the PAKOMAK’s Licensed Quantities in 2013 is as follows: • Plastic 33% • Paper and Cardboard 30% • Glass 23% • Metal 4% • Composites 5% • Wood 5% • Note: Share of glass is slightly bigger because of the structure of businesses of our founders and clients.

15. Print 1 “One ton of recycled paper saves 17 trees”Best business solution for managing your packaging waste

16. Print 2 “100.000 tonspackaging waste in Macedonia”Best business solution for managing your packaging waste

17. Print 3 “One ton ofrecycled plastic saves 900 lit. oil”Best business solution for managing your packaging waste

18. Trash-for-Artcontest133 artistic statues, 1.000 EUR first rewardExcellent PR

19. Sales and Marketing activities A computer game GreenТеамhas been designed, for children under age of 12, stimulating them to virtually collect separately packaging waste and put it in the appropriate bin!

20. Sales and Marketing activities Educational classes for pupils in Primary school.

21. Sales and Marketing activities Activities for cleaning of the environment

22. Sales and Marketing activities Fashion weekend – “Are you recyclINg”

23. Sales and Marketing activities Contest “We are painting in Green”

24. Sales and Marketing activities ECO concert of popular bands– bring 3 PET bottles and get free entrance

25. Sales and Marketing activities Summer beach activities – bring 3 PET bottles get one drink for free

26. Sales and Marketing activities Picture-book for children in kinder gardens

27. Competition • Since April 2012, there are 3 competitors: • EKO EURO-PAK (founded by retailer, recycler and 2 producers) • Market share: 10.500 tons or 10% • 2. EKO PAK-HIT (founded by 3 small producers) • Market share: 3.200 tons or 3% • 3. EKO CYCLE (founded by 2 small producers) • Market share: 1.300 tons or 1% • Pakomak with 38% market share is the largest, but FREE RIDERS are the biggest portion of the market (48%!)

28. Fee from the industry Sale of the waste Organization of managing packaging waste Transport to the recycling plant Contracts with municipalities for collection and services Collection and transport of the waste to the sorting plants Sorting of the waste to be prepared for recycling Movement of the waste Income Taking part into the activities

29. Thank you!