Paola Corbani - Senior Marketing Analyst – RadiciGroup The PCI Fibres Conference 2014 - Istanbul, 6‐7 November 2014

1. The Nylon Textile Filament Markets
in Europe
Trends and Challenges
Paola Corbani
Senior Marketing Analyst – RadiciGroup
The PCI Fibres Conference 2014
Istanbul, 6-7 November 2014

2. Agenda
 RadiciGroup’s Highlights
 Global Trends and Apparel
 World Trends in Nylon Textile filament
 The European scenario
 The Sustainability Issue
 Conclusions
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3. RadiciGroup’s Highlights
 Up-stream integration on PA6, PA66, PA 6.10, PA 6.12
and copolymers
 A Large Range of Materials (Chemicals, Polymers,
Compounds, fibres) available in all regions of the world
 Extensive Fibre Portfolio and Know-how:
Nylon Fibres: Textile Filament, Carpet Filament, High Yenacity
yarn, Staple fibre
Polyester Textile Yarn from virgin and recycled polymer
Nonwovens and Yarn for synthetic turf
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4. RadiciGroup Key Numbers
Radici Partecipazioni
Consolidated Sales Turnover 2013
1,045 million euros
3,200
Feimeldpsl oofy Aecetivsity:
 Chemicals
 Plastics
 Fibres & Nonwovens
A Global Presence:
Europe, USA, South America, China, India
Targeting diversified applications
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5. RadiciGroup
Synergy & Integration Polyamide 66
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6. RadiciGroup
Synergy & Integration Polyamide 6
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7. RadiciGroup Synergy & Integration
Polyamide 6.10 , 6.12 Other Polymers
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8. Radici Group
Synergy & Integration PET - PBT
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9. Agenda
 RadiciGroup’s Highlights
 Global Trends and Apparel
 World Trends in Nylon Textile filament
 The European scenario
 The Sustainability Issue
 Conclusions
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10. Global Trends and Apparel
 Economic trends:
 slow economic recovery in Europe and developed economies
 Fast economic growth in BRICS and new emerging countries
 Social trends:
World Population growth, Growing effluent middle class in
emerging countries
 Ageing population in developed countries
Women empowerment and Textile /apparel consumption
 Health, wellness and wellbeing
 Sustainability as a global driver of consumer demand
and business activities
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11. After BRICS, New High Growth Countries emerge
(2025 forecast)
 New emerging economies in Asia, Africa and America
 Turkey and Poland strong growth economies
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12. Agenda
 RadiciGroup’s Highlights
 Global Trends and Apparel
 World Trends in Nylon Textile filament
 The European scenario
 The Sustainability Issue
 Conclusions
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13. Global Trends in Nylon Textile Filament
World Demand to grow 1.3% p.a. by 2020
 NTF share of total fibre consumption after decline from 3%
in 2000 to 1.95% in 2007, seems set to stabilize around 2%
in the medium term.
 Demand of core nylon products to show moderate growth
in BRICS and emerging countries: growing population and
young effluent middle class with Western style consumption
 Demand growth in meters partially hidden by trend toward
finer yarns (less grams per meter of fabrics produced)
 Regional shift of business away from US/Europe/Japan in
the past 15-20 years
 China surge in Nylon Intermediates and textile filament
capacity/ production: reassessment of overall balances 13

14. Nylon Textile Filament Demand by Region
 China share of world NTF Mill Consumption: 47% in 2007, 63% in 2013
47%
65%
1,405
1,956
2,142
2500
2000
1500
1000
500
0
'000 of Metric Tonnes
Source: PCI Fibres Red Book 2013
OtherAsia
China
America
Europe +Turkey+ME
Africa
World
63%
AVERAGE ANNUAL
GROWTH 2013/20
0.6%
1.7%
0.0%
1.3%
1.3%
forecast to go up to 65% in 2020. Domestic consumption in 2013
accounted for 55-60 % of Chinese mill consumption.
 Nylon demand stabilizing in Europe, some growth in Turkey and Middle
East /Africa
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15. World Nylon Textile Filament Markets By Type
 Nylon 6 share up from 78% in 2000 to 85% in 2012 - to keep stable
 Growth in China mainly Nylon 6 based
 Nylon 6/66 competition to develop on the basis of core end uses and
global raw material competitiveness in America, Europe and China
78%
83%
1,409
1,552
1,957
2,142
2500
2000
1500
1000
500
0
'000 of Metric Tonnes
Nylon Textile Filament World Demand
AVERAGE ANNUAL
GROWTH 2013/20
PA6 TF
PA66 TF
Tot.PA TF
1.1%
2.2%
1.3%
Source: PCI Fibres 2014
85%
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16. The Main Applications
 Shift away from commodity taffeta fabrics and fashion apparel, in direct
competition with polyester.
 Demand in core nylon application- sportswear, swimwear, intimate apparel,
hosiery- forecast to be sustainable with moderate growth in BRICS and other
high growth economies, driven by emerging young middle class demand.
Nylon textile Filament Demand by Application
Outerwear
17.2%
Hosiery
16.8%
Intimate
22%
Sportswear
24%
Other
20%
Source: Opus BC/PCI Fibres
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17. Nylon Textile Yarn Trend to Finer Counts
 Change in product mix: less taffeta fabrics in 70-220 den and fashion apparel
70
60
50
30
20
10
0
40
average Nylon TF denier
Source: Opus BC
in 40-70 den.
 Focus on core nylon application with counts trending finer to exploit best
nylon features in terms of comfort, drape and versatility.
Trends in Nylon Textile Filament Counts
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18. Agenda
 RadiciGroup’s Highlights
 Global Trends and Apparel
 World Trends in Nylon Textile filament
 The European Scenario
 The Sustainability Issue
 Conclusions
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19. The European Scenario
Challenging Economic and social trends
Low economic growth with North/South divergence:
reduced consumer spending in Textile and Apparel.
Ageing population.
Textile /Apparel manufacturing base: some
stabilization after strong decline, high import
penetration. Positive developments in Turkey
Most complex market: sophisticated demand,
technological complexities, competitive issues
Environment and health a growing concern for
European consumers and opinion groups
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20. The Context of the European Union
A complex scenario
 EU Free Trade policy: EU Textile and apparel markets most open,
often no reciprocity and regards to non trade barriers, lack of
transparency
 High extra EU import penetration of Textiles and Apparel articles
 Lack of EU industrial and economic policy (apart from monetary)
 EU Environmental legislation
 most complex and costly (REACH, Industry Emission Directive )
 2020 climate and energy package: reduction of greenhouse gas emissions, increase in
energy from renewable sources, increase in EU energy efficiency
Resulting in increasing burdens and costs for European producers with
little controls on imported goods
 High energy costs in Europe versus North America: shale gas
advantage plus EU environmental legislation
 TTIP negotiations with USA: watch for costs/benefits on the
European textile/apparel/fibre business

21. Nylon Textile Filament
In Europe,Turkey, Middle East and Africa
 European market appears to be stabilizing, specialized market
 Some growth in Turkey, thanks to good textile, demand and
demographic trends.
 Reduced export opportunities due to China capacity surge
Nylon Textile Mill Consumption in Europe,Turkey, ME & Africa
Source: PCI Red Book 2013
250
200
150
100
50
0
2007 2008 2009 2010 2011 2012 2013 2016 2020
('000 of Metric Tonnes)
Turkey, ME, Africa
Europe
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22. Nylon Textile Filament in Europe
Complexity …
Focus on High /
Very high quality
ranges
Partial overlapping of
end use / Competition:
Shift to finer gauges
Sustainable
Products
Softness,
Drape, UV
Resistance
LightWeight
Thermal regulation,
Moisture
management
Shift to finer denier,
Fine denier per filament
No defects /
Durability
Technological
complexities
Colour fastness
Additives and dyestuff
No toxicity

23. Nylon Textile Filament: European Highlights
Europe is a specialized, segmented market
 needs flexibility and short time to market
Focus on medium/high and very high quality fabrics
 Complex fabric structures: Very Lightweight
 Machine shifting to finer gauges: higher elasticity and better covering power
 Need for finer denier yarns, finer denier per filament (microfiber)
 More demanding on dyeability: Deep/Bright colors with high color fastness
 Combined performance: softness, drape, thermal regulation, moisture
management, antimicrobial, stretch, durability, abrasion & stain resistance
 Functionalized fabrics: polymer chemistry versus fabric treatment
Very demanding on Nylon textile filament quality, range, performance
 Increasing focus on sustainability: process and product performance
versus environmental compatibility
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24. Agenda
 RadiciGroup’s Highlights
 Global Trends and Apparel
 World Trends in Nylon Textile filament
 The European scenario
 The Sustainability Issue
 Conclusions
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25. Sustainability & Environment
ENVIRONMENT & PLANT/
PROCESS EFFICIENCY
Sustainability
Is
Multifaceted
Energy efficiency
Green energy
Optimal use of
Land, Water, Air
Plant efficiency
Feedstocks
Bio-Feedstocks
Greenhouse
Emissions
Best Practices
Waste
Management
& Reduction
All within the framework of economic viability
BAT
(Best Available
Technologies)
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26. Sustainability, Rights & Products
PRODUCT RESPONSIBILITY
Sustainability
Is
Multifaceted
Smart products
Performance
Innovation
Bio-Materials
Biodegradable
Eco Design
Recycling:
post industrial
post consumer
HUMAN RIGHTS
Human Rights, Labour
Practices & Decent
work
Health & Safety
Protection from toxic
& chemical hazards
Continuous
Improvement
All within the framework of economic viability
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27. RadiciGroup: An integrated Approach to
Business and Sustainability
Full Control over the production chain through
upstream integration.
A sustainable approach to business: efficient
environmentally conscious processes along the
production chain, product offer to embed
sustainability… biomaterials… recycling
Organizational Models & Certifications
Transparency and Communication, Sustainability
Report
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28. Radici Group
Synergy & Integration Sustainability
Recycling of waste into plastics
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29. Radici Group
Synergy & Integration Sustainability
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Manufactured using biopolymers obtained from renewable
source materials
 Radilon® D: PA6.10-based engineering plastics
 Radilon® 6.10: PA6.10-based textile yarns
 dorix® 6.10: PA6.10-based staple fibre
 CornLeaf®: Ingeo™ polylactic acid (PLA) yarn
Solution-dyed saving water and energy
 Radifloor®: PA6 BCF yarn
 dorix®: PA6 staple
 Radilon® staple fibre: PA6 staple
 Radilon®: PA6 and PA6.6 textile yarn
 Radyarn®-Starlight®: polyester textile yarn

30. Radici Group Synergy & Integration
Sustainability PET– PBT
PET – Recycling Process
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31. RadiciGroup: Sustainability Guidelines
Sustainability Development
guidelines
1. ISO 9000, ISO 14000, OHSAS 18000,
SA 8000, ISO 50001 and ISO 14064
become RadiciGroup's organisation
models;
2. certifications (voluntary and mandatory),
Research & Development: Reach, LCA:
main product measurements, Eco-Profiles,
EPDs, Ecolabel, Oekotex, PEF and OEF.
3. Kyoto Protocol 20/20/20 + 20% of recycled materials . Sustainability
becomes the Group's guideline by following the Global Reporting
Initiative protocol;
4. Sustainability as an approach to corporate governance, an approach
based on GRI (Global Reporting Initiative) protocol.
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32. RadiciGroup For Sustainability
OUR REPORT REPRESENTS:
The more than 3,200 PEOPLE
who work for RadiciGroup
20 RADICIGROUP COMPANIES
100% of RADICIGROUP SALES REVENUES
GRI B+ APPLICATION LEVEL ASSURANCE
RECEIVED FROM CERTIQUALITY for 3rd consecutive
year
ELECTRIC ENERGY
CONSUMPTION
RadiciGroup 2013
Share of
44%RENEWABLE
ENERGY
90% -59% DIRECT EMISSIONS
From 2010 to 2013
of RadiciGroup’s employees
has a permanent agreement
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33. RadiciGroup For Sustainability
RadiciGroup defined
3 PRODUCT CATEGORY RULES
(PCRs)
- PCR CPC 8942 “NON METAL WASTE AND SCRAP
RECOVERY (RECYCLING) SERVICES”
- PCR CPC 347 “PLASTICS IN PRIMARY FORMS”
- PCR CPC 355 “MAN MADE FIBRES - FILAMENT OR
STAPLE”
Environmental Product Declaration
2014 EPD Process
Certification for
RADICIGROUP’s company
Radici Novacips
Radici Chimica SpA first chemical
company in Europe to obtain
certificates of conformity
OEF
ORGANIZATION ENVIRONMENTAL FOOTPRINT
PEF
PRODUCT ENVIRONMENTAL FOOTPRINT
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34. Conclusions
European demanding market:
 Economic, institutional and business context
 Sophisticated consumer demand
 Demand for environmentally conscious products
Requires
 Versatility to deploy competitive combinations of
functionalities to serve specialized markets needs
 Apply best know-how and technological solutions
along the production chain
 Comprehensive approach to sustainability
Work on post consumer recycling
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35. Thank You for Your Attention!
www.radicigroup.com
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