36.1.2. Plastics

Plastics (granulates and films) are the basic raw materials of the Flexible Packaging Segment and represent about 75% of the value of the purchased raw materials. Polypropylene granulate is purchased both on the spot market and based on contracts. Polyester films and polyethylene granulate are purchased on spot market. The prices of the materials depend on market situation. Sales of BOPP films are based on spot market and every growth of raw materials prices translates into the product price. Packaging sales is mostly based on indexation models, which enable the transfer of raw materials price changes to customers, otherwise sales operate on the principles applicable to the BOPP films sales area.