Restructuring the Irish metals recycling business, including introducing new management and improving site coordination.

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1 21 June 2013 Dear Shareholder I am writing to update you on progress since the AGM in September The recent past has been a very busy time for the Group, executing on the 24 month Action Plan we presented to shareholders in The implementation of these actions has not been made any easier by the on-going difficult economic conditions, which have had a particularly negative impact on the wider waste management industry. Nevertheless, we have made significant progress on several fronts and the Group is better positioned today than it has been for some considerable time. Update on 2011 Action Plan The 2011 Action Plan identified a number of immediate objectives; namely paying down debt to a sustainable level, stabilising certain businesses and focusing the portfolio for future development. From an operational perspective, improving business performance has been the priority. In certain cases the closure of unsustainable loss making businesses was required; in other cases, for strategic reasons, selling specific businesses was the preferred option. The plan focused on developing and harnessing opportunities that offer the best potential for future value creation, and forms the first stage of a multi-year shareholder value restoration programme. Specific actions taken over the past 12 months include: Restructuring the Irish metals recycling business, including introducing new management and improving site coordination. Overhauling the metals recycling business in northern England, including the appointment of a new management team. Reorganising the UK Hazardous Waste Management business. Rationalising the Group cost base resulting in an annualised overhead saving of circa 5 million, including the reduction of central headcount by circa 50%. Closing the loss-making UK materials recycling business. Divesting of the plastic extrusion businesses (Enplast and Foamalite). Disposing of investments, including ICG plc, IFG plc, Thirdforce plc and Island Renewable Energy Ltd. Reducing debt by 57.5 million. Extending banking facilities to December Identifying opportunities for future growth.

2 2012 Results The Group s financial performance for the year ending December 2012 is summarised as follows: Group turnover 345, ,819 EBITDA* 18,176 36,563 Total operating profit (EBIT)* 4,997 20,680 Pre-tax profit / (loss)* (2,039) 10,936 Net debt 88, ,388 Exceptional items (before tax) (117,018) (120,796) Loss for the financial year attributable to group shareholders (115,528) (108,762) *Stated before exceptional items Earnings from operations were disappointing, although direct year-on-year comparisons are affected by on-going changes to One51 s portfolio of operating businesses and investments, including the cessation of dividend income previously received. The Group s Environmental Services and Food divisions both experienced declines in operating performance in 2012, versus the previous 12 months. This was somewhat offset by the strong performance of the Plastic Injection Moulding division. The performance of this division continues to improve, and it now represents a significant portion of Group earnings. The prolonged weak economic environment has demonstrated the high levels of cyclicality inherent in many of the Group s operating businesses particularly within the Environmental Services division. These ongoing economic conditions have resulted in lower volumes with a continued decline in operating performance in certain businesses. As a consequence, in finalising the 2012 results, One51 recognised a non-cash impairment to goodwill and intangible assets of 80.9 million in the year, which together with the impairment charges to investment property and tangible assets of 20.5 million, as well as other charges of 15.7 million, resulted in a loss for the financial year of c million (2011: c million). Group tangible net assets fell from million as at 31 December 2011 to 69.2 million as at 31 December 2012 ( 0.91 per share to 0.55 per share). I believe that the bottom has now been reached in terms of further material impairments of goodwill and fixed assets. In the context of underlying market conditions, One51 undertook a full appraisal of its portfolio of businesses. As a result of this appraisal, a number of corrective actions were taken. Head office costs, and other central overheads, were reduced significantly, resulting in an annualised cost saving of approximately 5.0 million. This included headcount reductions across the Group where necessary, most notably at the centre where circa 50% of the staff were unfortunately made redundant. Performance improvement plans were introduced across a number of the waste management and recycling businesses. These plans targeted definitive corrective actions to right size these businesses in the context of their operating environment. As part of the commitment made to shareholders, the One51 Board of Directors has undergone a process of renewal. In 2012, the following retired from the Board: Mr Denis Buckley (Chairman), Mr Michael Long (Executive Director) together with non-executive directors Mr Finbarr O Neill, Mr Hans Droog, Mr Hugo Maguire and Mr James Murphy. Meanwhile the following were co-opted onto the Board: Mr Pat Dalton (Chief Financial Officer) and non-executive directors Mr Paul Carroll, Mr Denis Cregan, Ms Rose Hynes and Mr Mike Wynne. Mr Denis Cregan joined the Board of One51 plc in April 2012, and was appointed Chairman at the end of the year. Ms Hynes was appointed Senior Independent Director in December In February 2013, Mr Wynne resigned his position and Mr Geoff Meagher was co-opted to the Board. 2

3 5 Month Period to End May 2013 (Direct year-on-year comparisons remain affected by on-going changes to One51 s portfolio of operating businesses and investments.) Unaudited Unaudited Period to May 2013 Period to May Group turnover 116, ,081 EBITDA* 8,127 8,010 Total operating profit (EBIT)* 3,926 1,932 Pre-tax profit / (loss)* 1,531 (1,858) Net debt 82, ,806 Exceptional items (before tax) 1,356 (1,469) Profit / (loss) on ordinary activities after tax 2,454 (3,514) *Stated before exceptional items Group performance for the first five months of 2013 has met expectations, and earnings at the EBITDA level are in line with the same period in This indicates that the extensive range of actions taken is yielding results. Importantly, the level of trading visibility is increasing, with obvious positive ramifications for business planning. Loss-making businesses have been successfully moved out of the portfolio, with a focus remaining on operations capable of providing a platform for future growth. An example of the actions taken to bring about positive change is the recent performance of the Irish metals recycling business. National scrap metal volumes have fallen dramatically in recent years, and performance of the Irish metals business declined accordingly. This business has been completely overhauled in the past 12 month period through a combination of significant cost reductions and organisational changes. The business is today led by a team of experienced managers with a long history in the sector. As a direct result of the actions taken, the Irish metals business is profitable despite on-going market challenges. The performance of both the UK and Irish metals recycling activities remains dependent on domestic industrial and construction activity on the input side, and international commodity demand on the output side. Additional adverse changes in either of these two variables would likely necessitate further counteractive measures. An important feature of the period to May 2013 has been a continued strong performance by the Plastics Injection Moulding division. The further development of this division will form a cornerstone of future strategic development. Subsequent to year-end, One51 agreed with its existing syndicate of six banks to extend a million banking facility out to 31 December This extension of the Group s banking facilities ensures that One51 has appropriate financial flexibility as we continue to reduce leverage to a sustainable level and complete the final elements of the Action Plan outlined to shareholders in September Future Strategy The immediate objectives since 2011 have been to reduce debt, stabilise on-going businesses and place the organisation in a position to develop into the future. This has involved large but necessary write-downs to the value of certain assets on the balance sheet. As a result of the significant accumulated losses recorded in the Group s balance sheet, a restructuring of the share capital will be required to remove the negative reserves. This will require certain procedural amendments to the Group s capital structure, which will need to be approved by shareholders in due course. As the Action Plan is nearing a conclusion, the focus has now shifted towards how to best develop One51 over the medium-term. The principal goal for One51 over the next five years is to rebuild shareholder value to the maximum extent possible. The Board and I believe that this will be best achieved by focusing on three key areas of the existing portfolio: a) Plastic Injection Moulding The Plastic Injection Moulding division manufactures containers of various sizes for the decorative coatings industry, from sites in Ireland and the UK. Among its customers are certain well-known household brands, with extensive operations across Europe and beyond. Plans to increase the geographic scope of the plastic injection 3

4 moulding products are advancing. The injection moulding businesses also continue to serve customers in the pharmaceutical and computer components industries. By focusing on customers needs, the business has developed deep relationships with multinational clients, where supporting customer led innovation is a priority. Overall, we are optimistic about the growth prospects for this division. b) Environmental Services One51 s Environmental Services business, ClearCircle Environmental is increasingly focused on Metals Recycling and Hazardous Waste Management, both in the UK and Ireland. These businesses have proven to be highly pro-cyclical, and so any positive change in outlook invariably depends on a meaningful recovery of the underlying economies in Ireland and the UK. That being said, the Irish Hazardous Waste Management business, Rilta Environmental has consistently proven to be highly innovative in its approach, despite an extremely difficult domestic market. I believe that a similar performance is possible by the Hazardous Waste Management business in the UK, Future Industrial Services. Further synergies exist between metals recycling and hazardous waste. Exploiting these synergies and maximising complementary activities across ClearCircle Environmental will ensure superior profitability. c) Investment Portfolio Despite recent asset sales, One51 continues to manage a valuable investment portfolio. The majority of this value is represented by the Group s interest in NTR plc, which had a book value of 53.1 million as at the end of NTR represented c. 50% of One51 s net assets as at 31 December Over the past number of years, One51 has recorded a significant write down on NTR; One51 s objective in managing this investment is to recover as much value as possible on behalf of shareholders over the medium term. Following the recent disposal of Greenstar LLC, NTR is currently in a significant positive cash position. In December 2010, NTR stated that it was their intention to deliver a liquidity event to shareholders within a three year period. One51 accordingly anticipates that NTR will make a material distribution to shareholders by the end of The proceeds of this distribution would be applied by One51 to further debt reduction. One51 also holds a 17.6% stake in Augean plc, a listed UK hazardous waste business. This stake had a book value of 6.7 million as at 31 December One51 s other assets and investments include OpenHydro Ltd, Irish Pride Bakeries Ltd, various properties and other minor interests. Over the medium term the Group s strategy is to continue simplifying the portfolio in order to focus on the Environmental Services and Plastic Injection Moulding businesses. Annual Report, Investor Presentation and AGM I attach the Group s Annual report, which contains further details on 2012 performance, including a review of the operating businesses. An updated Shareholder Presentation has also recently been added to the Group s website. This presentation outlines One51 s future strategy in greater detail, and will form the basis for meetings with shareholders over the coming months. The One51 AGM will be held in September/October 2013 on a date to be finalised. Conclusion While 2012 was another challenging year for the Group, a number of important steps were taken to position the Group for recovery over the longer term. We continue to make progress on restructuring One51 s balance sheet and undertook a number of strategic initiatives which have significantly reduced the cost base. Progress was also made in re-focusing the organisation on those divisions which can deliver value for shareholders over the medium term. Performance for the period to May 2013 has been in line with the same period in 2012, and in line with expectations. The Group continues to reduce indebtedness to a sustainable level. The anticipated distribution from NTR in 2013, together with other measures, will enable One51 to achieve a further material reduction in its net debt levels by the end of

5 One51 has narrowed its focus to those businesses offering the best opportunities for future growth and must decide how these opportunities are most appropriately financed. Aspects of the strategy will ultimately require additional financial resources if it is to maximise shareholder value recovery. This is a subject that will become increasingly relevant in the period ahead, and something I look forward to discussing with shareholders. As the Group begins to emerge from an extremely difficult period of consolidation and restructuring, there is increasing evidence of stability. I am confident that the tough decisions made over the past two years mean that shareholders can be reassured regarding the Group s future prospects. Yours sincerely, Alan Walsh Chief Executive Officer 5