Household Care & Professional Cleaning and Hygiene Products Value Chain Socio-Economic Analysis Brussels November 30, 2016

Context Brexit negotiations A changing landscape across Europe with pressure for protectionism growing “Juncker Plan” – promoting investment and innovation Jobs, but which jobs?

SEA Objectives Communicate contribution that industries, their technologies, and their value chains make to modern societies Highlight public benefits, rather than private gains, of business activity Transform perceptions, inform public policy debates Link aspirations of citizens and activities of businesses

Industry Characteristics Two distinct sectors: Consumer Professional Hygiene and Cleaning Value added driven by extensive investments in customer innovation Scale: Output – Euro 27 billion (ex factory, ex VAT) Direct employment – 95,000 jobs Net exports – Euro 3 billion 650-700 production facilities (90 large-scale, multi-national company plants; 550-600 SME plants)

Value Chain – GVA & Jobs GVA JOBS + + + = + + + = Retail Impacts Direct Industry Euro 8.6 bn Retail Impacts Euro 3.9 bn Supplier Impacts Euro 8.0 bn Induced Effects Euro 4.1 bn Euro 24.6 bn VALUE CHAIN TOTAL GVA + + + = Direct Industry 95,000 Retail Impacts 125,000 Supplier Impacts 80,000 Induced Effects ...60,000... VALUE CHAIN 360,000 TOTAL JOBS + + + =

Public Benefits Protects us from infections and disease Underpins/facilitates modern lifestyles Improves the durability of our investments in the things we value Strengthens and protects investments in brands Enhances the efficiency of the economy

Efficient Economy – Sectors 19 million

Innovation Investment Need to illustrate importance of innovation Two ways to measure Financial reporting conventions (R&D 2-3% of sales) Resources consumed (9-10% of sales) R&D 2-3% New Product Development 1-2% Manufacturing, sales and marketing, advertising sales and promotion (new/improved products only) 4-5%

Types of Innovation Consumer Professional Creation of New Segments Creation of Additional Value in Existing Segments Improved Environmental Impact Professional Horizontal Solutions Vertical Solutions Worker & Environmental Safety

This Industry Supporting: Traditional skilled and semi-skilled jobs in e.g., tourism, food, pharma and horeca Brand “Europe” A bellwether for the efficiency of the European economy in socially important sectors Growth in the sector is essential

An Industry for Our Future Underpins our Efficient & Globally Competitive Economy A Major Industry Today A Vital and Desirable “Motor” of Innovation for Europe Enhances the Quality of our Modern Lifestyles Strengthens our Future Prosperity

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