13 November 2017

SELECTIVE CONSOLIDATION

IN EUROPE

CASE STUDY: FLEXIBLES

RPC – THE ESSENTIAL INGREDIENT

© 2017 RPC Group Plc. All Rights Reserved.

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Transformation process

Frank Doorenbosch

bpi group – business examples

Andrew Green

Agenda

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bpi financial performance

£m

Revenue 468

EBITDA 43

EBIT 29

RONOA 19.6%

Acquisition metrics (acquired August 2016)£m

EBITDA multiple(1) 7.1x

EBITDA multiple post synergy <5.5x

ROCE post synergy >15%

bpi run rate annualised performance£m

EBITDA >60

EBIT >50

RONOA >30%

(1) EBITDA based on published bpi Plc result as above adjusted for: plus £2.0m exceptional polymer impact plus £1.9m of reduced energy costs and provision movement less £0.9m contribution from discontinued Chinese bpi subsidiary. Multiple based on an enterprise value of £330m which includes pensions and minorities of £47.7m

Published bpi Plc result (December 2015)

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Transformation process

Frank Doorenbosch

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Transformation processHistoric bpi

Business profile

Market leading brands

Leader in various market segments (e.g. agriculture and recycling)

Sales of c.275kt of polythene films produced on 19 sites

Site focused organisation

Business reputation

Industry recognised leader in chosen markets and respected operator

Steady profit improvement but limited top line growth

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Transformation processRealisation of cost synergies

Procurement synergies

Supports and exploits RPC’s procurement strategy:

• bpi buys c. 200kt of polymer in Western Europe

• Focus on material flexibility

• Other procurement synergies

Cost synergies

Realising the projected cost synergies:

• Removed duplicate corporate overhead

• Manufacturing footprint optimisation program on track

• Product portfolio review and actions ongoing

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Transformation processFrom site to market focused business units (1/2)

Historic structure

19 individual sites

Regional and local management structure

Site optimisation focus

Recycled Products

Rhymney

Heanor

Stroud

Dumfries

Managing Director

Chief Executive

Consumer

VMB

Portadown

Industrial

Ardeer

Greenock

Flint

Films

Bromborough

Winsford

Promopack Europe

Zele

Roeselare

Hardenberg

Managing Director

UK Stretchfilms

Leominster

Bridgwater

Widnes

Managing Director

Edmonton

Westlock

North America

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Transformation processFrom site to market focused business units (2/2)

New structure

4 market focused business units

Empowered business unit management teams

Cross business unit coordination

Gerry McGarry Wim Warnier Johan van Landschoot Andrew Green

recycled products agriculture indupac protec

• Construction

• Waste management

• Plaswood

• Silage

• Flexible storage solutions

• Horticulture

• Bagging solutions

• Load security

• Labelling solutions

• Food preservation

• Multipack solutions

• Specialities

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Transformation processFocusing management on performance

Performance focus

Reset business model to exploit skill sets:

Business turnaround Worcester

Process re-engineering recycled products

Exploiting overall asset base

Highlights Worcester

Original business

Volume driven / Loss-making / Lack of focus

Operational focus

Bottom slicing / Remove cost of complexity / Operational excellence

Business focus

Apply strong key skill set / Added value innovation /Innovative labelling solutions

Current state

Returned to profitability / Growing in chosen markets / Strong innovation pipeline

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holding

picture

Transformation processFocusing management on innovation

Innovation focus

Focus on added value growth innovation:

• Defined key growth markets

• Exploiting key strengths of business

• Innovation directors by business unit

Engineering focus

Optimising performance through added value engineering:

• Redefining and optimsing processes and materials

• Reduction of cost of complexity

• Operational improvements

Added value design

Using core competencies, focusing on added value growth:

• Patented applications like WaveGrip

• Paper bag replacement for powder goods

• New gas-barrier films for construction industry

• In-mould and wrap around labels

Casestudy

Casestudy

Casestudy

Casestudy

WaveGrip

bpi indupac

bpi agricultural

bpi recycled

Business examples:

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Transformation processbpi today

FLEXIBLES PLATFORM READY FOR GROWTH

Highly profitable business

Empowered management team in place

Strong focus on innovation

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bpi group – business examples

Andrew Green

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WaveGrip and WaveTec

WaveGrip & WaveSafe

Colours and printing

Can & bottle carriers

Innovative

Lightest weight

Recyclable and recycled

Photo degradable

Sustainable

WaveTec machines

WaveTec installation & service

Wave-Carriers

Turn-key

Complete modular systems

Lowest moving parts

Highest run speeds

Simplicity

WaveGrip: simply the smartest multipack solution

www.wave-grip.com

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RPC bpi indupac

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Leading player form-fill-seal Market innovator Frozen food

RPC bpi indupac – smarter bagging solutions

• Growing market

• Consistent quality

• Lightest bag in the market

VentiSack®

• Store dry powders outside

FormiFor®

• Reducing transport cost

Bontite®

• Enhancing load security

Market leading position

• Constant quality

• Value engineering

• Geographical location

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RPC bpi agriculture

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RPC bpi agriculture

bpi agriculture at a glance

Farming efficiency Sustainability challenges Farming in the desert

Work with OEMs to enhance crop yields and harvest efficiency:

• Single application of double sheet

• Silage speed

• Long term sustainability of high yield farming

• Elimination of pesticides

• Circular economy of solutions

• Stable crop output eliminating impact of increasingly extreme weather conditions

• Temperature & water management

• Stand alone growing systems

• Protection solutions

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RPC bpi recycled products

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bpi recycling at a glance

Farm films Second life Fit and forget

Closing the loop for agriculture solutions;

• Strategic collection systems

• Unique recycling technology

Innovative collection andrecycling schemes reprocessing contaminated materials at end of life:

• Dedicated wash plants

• 75kt per annum

Wood replacement solutions made from mixed recycled material stream

RPC bpi recycled products

smarter

flexible

solutions

QUESTIONS?

RPC – THE ESSENTIAL INGREDIENT

© 2017 RPC Group Plc. All Rights Reserved.