RPC Group Plc 2016 / 17 Results

Transcription

1 THE ESSENTIAL INGREDIENT 7 June 2017 RPC Group Plc 2016 / 17 Results 100

2 Highlights 2016 / 17 Good like-for-like organic growth in targeted market segments Acquisitions bedding in well with cost synergies projection increased by 5m Continued innovation in both product design and engineering Letica acquisition providing a platform for future growth in North America - made a good start under RPC s ownership 101 Record profitability levels, good return on capital with strong cash flow generation / conversion Dividend increased by 50%, the 24 th successive year of dividend progression

3 Agenda Vision 2020 Strategy Financial Overview Market Developments Acquisitions and Integration Summary and Outlook Pim Vervaat Simon Kesterton Pim Vervaat Frank Doorenbosch / Pim Vervaat Pim Vervaat 102

4 Vision 2020 Strategy Progress in 2016 / 17 Focus on organic growth Overall organic growth of 3% which is above relevant GDP Continued innovation in both product design and process engineering Capital expenditure to support future organic growth in attractive market segments FOCUSED GROWTH Selective consolidation in Europe Creating a meaningful presence outside Europe Enhanced the Group s platform in healthcare through Plastiape acquisition Consolidated market segments through the Jagtenberg and Sanders acquisitions Successful entry into flexibles segment through the BPI acquisition Acquisition of Letica enhancing RPC s platform for future growth in North America Enhanced global presence through proposed acquisition of Astrapak (Africa) and completion of two smaller Australian acquisitions Start-up of Brazilian manufacturing of coffee capsules for multinational customer 103 Pursuing added value opportunities in non packaging markets Acquisition of ESE, a European leader in temporary waste solutions Successful first year under RPC ownership of Strata Products Investment in Chinese electroplating capacity to capture growth in automotive sector

5 * Excludes commercial synergies and subsequent organic growth # Acquisitions generally done at below market average EBITDA multiples see Appendix page 45 RPC Group Plc Vision 2020 Strategy Performance since Vision 2020 strategy launch (in 2013) Organic growth Expected returns on acquisitions Scale in polymer buying 2.0% GDP 3 year CAGR (weighted according to RPC s destination of sales) 3.2% RPC 3 year CAGR (like-for-like sales) 3 year organic growth > GDP m Enterprise value of acquisitions # 2,337 Associated acquisition costs 40 Cash costs of realising cost synergies 105 Invested amount 2,482 EBIT year prior to acquisition 214 Cost synergies realised 60 Cost synergies anticipated 41 Increase in central costs (15) Post synergy EBIT* 300 Return on acquisitions 12.1% Post tax returns 9.3% Good cost based returns Kt tonnes annualised ,100 13/14 14/15 15/16 16/17 Polymer represents 36% of the 2016 / 17 cost base Enhancing the Group s strategic buying position 104

6 RPC Group Plc Vision 2020 Strategy Performance since Vision 2020 strategy launch (in 2013) P&L improvements versus 2012 / 13 million 2016 / / 13 Δ Revenue 2, ,765 EBITDA EBITDA % 16.1% 14.0% 210bps EBIT EBIT % 11.2% 9.3% 190bps RONOA % 26.0% 20.6% 540bps ROCE % 15.1% 19.4% (430)bps EPS Adjusted 62.2p 28.4p 22% CAGR EPS Statutory 37.1p 15.8p 24% CAGR Strategic performance to date Good innovation and market focus driven organic growth ahead of GDP Value adding acquisitions in a consolidating market: Strengthening existing market positions Diversifying into adjacent markets with attractive growth and return profiles Entering new geographies following multinational customers Enhancing the Group s strategic buying position through building scale in polymer Improvement in operational return profile with EBIT % up 190 bps compared to 2012 / 13 ROCE remaining well above weighted average cost of capital 105 Implementation of the Vision 2020 strategy progressing well

7 Financial Overview 106

8 Financial Overview Income statement 2016 / / 16 m % m % Δ Revenue 2, , % Raw materials* (1,359.8) 49.5 (787.5) % Wages and salaries* (624.9) 22.7 (384.1) % Other expenses* (454.3) 16.5 (296.5) % Adjusted operating profit % Adjusted interest charge (22.8) (14.3) 59% 107 Adjusted profit before tax % Non underlying costs (131.4) (85.0) Taxation (22.7) (20.7) Profit after tax % Adjusted basic earnings per share 62.2p 40.4p 54% Statutory earnings per share 37.1p 18.1p 105% Return on capital employed % 15.1% 15.7% (60)bps * See appendix page 49

9 Financial Overview Sales bridge 3% (24) 2, ,642 1,799 Revenue FY 2015 / 16 Organic growth Impact FX translation Impact polymer price levels Underlying revenue FY 2015 / 16 Net acquisitions (prior year revenue) Organic growth Revenue FY 2016 / 17

10 Financial Overview Profit bridge Includes synergy* of 28m 59 6 (3) 84 (24) 23 Gross FX translation (11) Polymer Adjusted operating profit FY 2015/16 FX translation Polymer pass through variance Underlying operating profit FY 2015/16 Net acquisitions (prior year profit) Business improvement * From Promens / GCS / BPI only Cost inflation Adjusted operating profit FY 2016/17

11 Financial Overview Polymer pass through PER TONNE: average of Platts / Icis indices 1,750 1,650 Mainland Europe 1,550 1,450 1,350 1,250 1,150 1,050 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 PER TONNE: average of Platts / Icis indices 1,400 1,300 1,200 1,100 1, UK impacted by weakened sterling 800 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar Pass through time lag impact PP HOMO million FY14/15 FY 15/16 FY 16/17 P&L impact 9 11 (3) HDPE BM Polymer pass through mechanisms in place (based on c. 65 indices) albeit with a time lag Proactive raw material stock and purchase contract management mitigating the pass through time lag effect Flexibility in purchasing various polymer grades for similar applications enhanced Polymer price changes passed through to the customer base

12 Financial Overview Promens, GCS and BPI related synergy realisation costs Exceptional P&L charges Total P&L charges are anticipated to be 190m up from 180m previously announced The associated cash out is 120m with steady state benefits of at least 105m per annum By year Synergy realisation m (cumulative) /15 15/16 16/17 17/18 18/ P&L costs m (190)m (120)m 14/15 15/16 16/17 17/18 18/19 30m 40m 60 P&L charge Asset write downs Proceeds, working capital & asset sales Cash costs Cash costs m /15 15/16 16/17 17/18 18/19

13 Financial Overview Non-underlying costs (see Appendix page 54 for definitions) million 2016 / / / 15 Fitter for the Future Acquisition related expenditure Deferred consideration on earn-outs (11.2) (11.5) 5.8 Promens / GCS / BPI integration costs Other integration and exceptional items Total exceptional items Amortisation acquired intangibles Other (pension admin fees) Total non-underlying operating items Non underlying finance costs Total non-underlying costs

14 Financial Overview Underlying cash generation million 2016 / / / 15 Adjusted EBITDA Working capital 29 0 (2) Net capex (176) (101) (95) Other* - 2 (1) Operating cash flow Net interest & tax (55) (29) (29) Free cash flow Conversion** 95% 87% 68% Statutory conversion # 82% 85% 33% * Share based payments, disposal of fixed assets and other movements **Ratio of operating cash flow shown above to adjusted operating profit # see Appendix page 52 m /15 15/16 16/17 100% 90% 80% 70% 60% Adjusted operating profit Free cash flow Conversion (%) Free cash flow 3 year CAGR of 59%, 37% sales CAGR for the same period Continued investment in growth related capital expenditure with total capex to sales ratio of 6.4% (Capex / depreciation of 1.3x) Working capital synergy realised as acquisitions adopt RPC s approach Statutory cash flow conversion improved over the three year period 113

15 Financial Overview Net debt bridge Free cash flow 239m (744) (176) (55) (141) # (1,049) (941) 141 # 624 (81) (62) (84) 114 Net Debt Mar 2016 EBITDA Working Capital Investing Activities Interest & Tax Acquisitions (inc. debt) Equity Raise Exceptional Items Dividends Other* Net Debt Mar 2017 # 141m is non-cash equity consideration issued to BPI shareholders * Includes exchange rate movements: 36m, non-underlying cash provision movements: 39m, movement in provisions and financial instruments: 9m

16 Financial Overview Financial position KPIs Mar 2017 m 1,500 Renewal date main facilities Net debt ( m) 1,049 Headroom ( m) 1,128 1,250 1,000 TERM * Net debt to EBITDA ratio (pro forma) 1.8x Net debt to EBITDA covenant 3.5x USPP RCF RCF USPP *The 18 monthly term facility is extendable up to 2020 if required Calendar year

17 Financial Overview Segmental and geographical analysis Packaging Non-packaging million 2016 / / 16 million 2016 / / 16 Revenue 2,365 1,345 Revenue Operating profit Operating profit Return on sales 10.4% 9.9% Return on sales 16.2% 13.8% Good progress made in both the Packaging and Non-packaging segments 116 Europe million 2016 / / 16 Revenue 2,363 1,424 Operating profit Return on sales 10.4% 9.5% Rest of the World million 2016 / / 16 Revenue Operating profit Return on sales 16.4% 17.6% Non-European sales continue to attract better margins due to its higher added value content

18 Financial Overview Technical guidance For financial year 2017 / 18 Capex c. 225m Depreciation c. 190m Non-underlying cash provision utilisation c. 30m Tax rate c. 24% Interest c. 30m FX sensitivity: 1c move changes EBIT by c. 1.6m $1c move changes EBIT by c. 0.4m Progressive dividend policy with cover targeted to be 2.5x across the cycle Non-underlying costs Category Acquisition related expenditure Deferred consideration on earnouts Promens / GCS / BPI integration costs Other integration and exceptional items Amortisation acquired intangibles Other non-underlying items Guidance External cost on acquisition activity Ace: 50% c. 5m pa Letica 100% c. 55m pa P&L c. 26m ( 30m) with c. 52m ( 60m) cash c. 5m c. 50m pa Minor Non underlying finance costs Pension scheme interest c. 8m Interest on earn-outs c. 0.1m FX on earn-outs depends on FX rates 117

19 Financial Overview Key figures Sales ( m) +67% Adjusted Operating Profit ( m) +77% Adjusted basic EPS* +54% 2, ,047 1,222 1,642 12/13 13/14 14/15 15/16 16/ /13 13/14 14/15 15/16 16/ p 31.6p 35.4p 40.4p 62.2p 12/13 13/14 14/15 15/16 16/ Free cash flow ( m) +95% Return on net operating assets # Dividend per share* +50% +360bps /13 13/14 14/15 15/16 16/ % 20.6% 21.2% 21.9% 22.4% 12/13 13/14 14/15 15/16 16/ p 11.9p 13.3p 16.0p 24.0p 12/13 13/14 14/15 15/16 16/17 For continuing operations Adjusted = before restructuring costs, impairment losses, amortisation of acquired intangibles and other non-underlying items * Restated following Rights Issues in 2015, 2016 and 2017 # Includes acquisitions completed in 2016 and comparatives restated on a pro forma basis

20 Market Developments 119

21 Market Developments Organic growth in 2016 / 17 Overall like-for-like growth of 3% which is ahead of relevant GDP Global plastic packaging markets anticipated to grow >4%* with European growth rates at >2%* helped by ongoing material substitution 120 Growth in Europe higher than 3% with a particularly good performance in the UK Growth outside Europe 1.4% and is more turn-key related with key investments being made for future growth * Growth rates to 2020 (Source: Smithers Pira) Group targeting through the cycle growth ahead of GDP

22 Market Developments Segmental development Food Non-food Technical Components 755m 2016 / m 2016 / m 2016 / 17 5% Organic growth 4% Organic growth 4% Organic growth Key developments Key developments Key developments 121 RPC: higher sales in barrier solutions and convenience packaging more than offsetting lower spreads sales Market: growth driven by shelf-life enhancing solutions, portion control and minimizing food waste Outlook: continued growth with strong demand for innovative packaging RPC: good overall sales, particularly strong in tobacco. Flat sales in industrial packaging due to margin focus Market: diverse segments with different growth profiles depending on innovation levels Outlook: growth although with continued margin focus in industrial RPC: higher sales of moulds, automotive components and horticultural products Market: increasing demand for complex automotive products in China Outlook: strong order book for both moulds and electroplated products

23 Market Developments Segmental development (continued) Personal Care Beverage Healthcare 401m 2016 / m 2016 / m 2016 / 17 0% Organic growth 0% Organic growth -1% Organic growth Key developments Key developments Key developments 122 RPC: consolidating sales after year of strong growth, personal care improvement offset by lower cosmetic sales Market: increasing globalisation of demand Outlook: good growth opportunities in Asia and North America RPC: introduction of 2 nd supplier for coffee capsules impacted overall sales Market: demand continues to be strong for single serve beverage systems and higher added value closures Outlook: growth to resume through new capsule and (patented) closure projects RPC: good OTC sales offset by reduction in medical devices as major project was cancelled Market: overall demand for healthcare products increasing Outlook: building enhanced healthcare business with the Plastiape acquisition - healthy order book c. 1.8 billion or 67% of Group sales growing at 4%+

24 Market Developments Innovation in design and engineering Continued investment in innovative product design and process technology Group currently has 31 innovation centres and well over 1,000 patents Innovation capability is a key competitive advantage versus generally smaller and less well invested competitors GCS patented sport caps and CSD lite closure gaining traction in the marketplace Sports caps Key advantage: 180 degree hinge; easy to open with integrated tamper evidence CSD lite Key advantage: 20% weight saving with no loss of performance 123 Various innovation examples across all segments in Appendix pages Download our new innovation video Click here

25 Acquisitions and Integration 124

26 Acquisitions and Integration Disciplined and selective approach to acquisitions Core acquisition criteria Capital priorities and structure Strategic fit Profitable organic growth Strength of incumbent management Acquisitions that meet investment criteria Financial track record Financial criteria: ROCE > WACC of RPC Quantifiable synergies Impact on Group KPIs (ROS & RONOA) Earnings accretion Progressive dividend policy with dividend cover at 2.5x through the cycle Leverage to remain at a suitable and responsible level 125

27 Acquisitions and Integration Disciplined and selective approach to acquisitions Opportunity funnel since launch of Vision 2020 Acquisition process >300 opportunities approached or presented Industry is consolidating numerous opportunities presented Database maintained with attractive assets to be actively approached >200 (>70%) rejected without extensive review Desktop review of businesses and market segment Rejected where no strategic fit or value (<30%) targets reviewed in-depth In-depth review involving business management teams Rejected when target does not meet RPC s acquisition criteria 16 acquired (5%) In-depth due diligence Hand over to divisional management team and corporate purchasing Acquisitions generally done at below market average EBITDA multiples

28 Acquisitions and Integration Balanced portfolio of design and engineering companies in plastic products Competitive position Strong Good strategic fit Potential strategic fit Poor strategic fit 127 Weak Product Market Combinations - (size indicates m sales) Low Market Attractiveness High Source: management s qualitative estimate of business positions Strategic fit depends on strength of competitive position and attractiveness of the market

29 Acquisitions and Integration Decentralised organisation with multiple growth platforms RPC divisions Strategic business units Key features: 7 divisions with 35 strategic business units ( SBUs ) Divisional and SBU management teams focused on specific product market combinations Good group control and governance systems in place 128 Divisional structure underpinned by: Central back office functions Group procurement function Mini RPC sector management approach matching industry structure

30 Acquisitions and Integration Overview: acquisitions with turnover > 50m Revenue acquired Smaller deals in year Ace 1 Bebo 0 Bramlage M&H Group 450m Promens 1 167m Superfos 1 359m New division 1 468m Q4 15/16 Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 1,100 List of acquisitions concluded in 2016/17 in Appendix page 45 Larger acquisitions spread over time and across different divisions

31 Acquisitions and Integration Integration capability Quality businesses acquired with key management retained Central back office and procurement functions strengthened and scalable Multiple growth platforms with strong divisional leadership teams - larger acquisitions spread in time and in different parts of the organisation Proven track record of quickly integrating businesses and realising associated synergies 130 Organisations, systems and procedures in place to absorb multiple acquisitions

32 Acquisitions and Integration Acquisition Case Studies Consolidation * Plug and Play # # # million Acquired FY 2016 / 17 Revenue EBIT ROS 5.7% 10.3% RONOA 14% 25% Improvements driven by: Extensive cost synergies including removal duplicate corporate overhead and optimisation of manufacturing footprint Implementing a performance and innovation focused management style Enhancing profitability through commercial margin focus Positioning for growth by leveraging RPC s product range and engineering capabilities Outlook: further cost synergies to be realised whilst growth will resume million Acquired FY 2016 / 17 Revenue EBIT ROS 17.0% 19.5% RONOA 30% 29% Improvements driven by: Existing management accelerating its successful market strategy by leveraging RPC s product range, international customer base and geographic footprint Realising cost synergies through purchasing and best practice exchange Outlook: continued growth, particularly in China and USA * Acquired February 2015 # Acquired between December 2013 and June

33 Acquisitions and integration Promens / GCS / BPI related cost synergies Cost synergies Projected steady state cost synergies increased by 5m to at least 105m per annum as plan for optimising BPI s UK manufacturing footprint has been finalised 105m current projection (compares with 42m originally announced) which represents about 6% of acquired turnover In addition to best practice and purchasing cost synergies, removing duplicate overhead costs and optimising the manufacturing footprint has resulted in: 16 site closures (8 completed / 4 well advanced) Net headcount reduction of 845 people Progress in the year Good overall progress made during the year with an additional 33m of cost synergies delivered Slight delay in the realisation of the forward synergies due to an extensive labour dispute at the Pulheim site (Germany) BPI organisation changed from 9 site based to 4 market focused SBUs positioning BPI for future growth GCS duplicate corporate overhead removed with operational business integrated into the Bramlage division Polymer material flexibility enhanced in all businesses Two smaller businesses sold (turnover of 4m) as part of active portfolio management 132

34 Summary and Outlook 133

35 Summary and Outlook Vision 2020 growth strategy is progressing well, with continued organic growth, record profitability levels and robust cash generation Acquisitions continue to add value including the recent GCS and BPI acquisitions, whose performance in the year was better than expected Letica will provide an enhanced platform for growth in North America and has made a good start under RPC ownership The Group continues to explore opportunities for growth in line with its strategy The new financial year has started in line with management s expectations 134

36 Forward looking statements This presentation contains forward-looking statements, which: have been made by the directors in good faith based on the information available to them up to the time of their approval of this presentation; and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information. The Group undertakes no obligation to update these forward-looking statements and nothing in this presentation should be construed as a profit forecast. 135

37 Supplementary Material 136

38 Global reach Management team Product innovation Process technology innovation Selected plastic packaging transactions Acquisitions in 2016 / 17 Letica: a platform for growth in the key North American market Polymer capacity expectations Polymer pass through detail Income statement extract at FY 2014/15 polymer prices Balance sheet Pension Statutory cash flow Adjusted earning reconciliation Exceptional definitions Returns definitions Appendices 137

39 Supplementary Material Global reach Over 185 operating sites in 33 countries and 31 design & engineering centres Where we manufacture Where we sell RPC sites c. 23,800 employees 138 North America Europe Asia

40 Supplementary Material Experienced international management team Group Executive Executive Board Members Group Purchasing Business Improvement Corporate Development Pim Vervaat Simon Kesterton Darin Evans Frank Doorenbosch Tom Saunderson 9 years 14 years 20 yrs 27 yrs 6 yrs Chief Executive Group Finance Director René Valentin Alfons Böckmann Alistair Herd Divisional CEO s Michael Stegeman Jack Yeung Frank Doorenbosch David Duffield yrs 41 yrs 29 yrs 18 yrs 16 yrs 27 yrs 34 yrs Superfos Bramlage Promens Bebo Ace bpi group M&H Extended Group Executive Eric Chavent John Cotterell Andrew Green Günter Pohlmann Dragan Stjepanovic 24 yrs 2 yrs 29 yrs 48 yrs 19 yrs Global accounts Group HR bpi deputy CEO Bramlage director Promens director Experienced international management team with over 350 years' experience in the plastic conversion industry

41 Supplementary Material Product innovation Non-food Food Beverage New standard trigger spray Booster with patented pump system, applicable for foams and fluids. Improved ergonomics for the consumer. Bespoke SuperFlex paint system, introducing FlakeFree TM feature, preventing dry paint flakes back in paint and final surface. Food safety, longer shelf life, convenience and portion control. LoveMade has moved their organic babyfood range in shatterproof and long shelf life SuperLock pot. The customised Penguin sauce dispense system is showcase of RPC s full solution development ability. Combining new pump system and bottle shape. Breakthrough and patented development of standard ultra-light weighting CSD caps and retaining the high product demand of high pressure resistance and gas integrity. New customised and unique shaped capsules of Qbo offers longer shelf life single serve coffee, avoiding both aluminium and additional outer packaging. 140

42 Supplementary Material Product innovation Technical components Personal care Healthcare Changing the standard in waste separation management, includes a patented split lid storage and garbage truck emptying solution. Offering new and unrivalled colour schemes for electroplating products to our customers. Allowing new applications and light weighting Highly automated hot stamp process allowing other features such as metallised decoration In collaboration with Pierre Fabre, the DEFI product combines a new sterile airless pump combined with our patented air-free bottle, enabling packaging additive free hypoallergenic cosmetics New standard in dry powder dispensing solution. With consistent and reliable dosing and fitted with our patented dose counter and new ergonomic design Single dose counter for pmdi s can be pre-set to any number required. Enables users to keep accurate track of the levels of their medication. 141

43 Supplementary Material Process technology innovation Injection moulding Rotomoulding Rotational moulding Injection stretch blow moulding New IM barrier LongLife TM technology, giving customers the versatility of plastics in design and decoration. With high filling speed, offers customers metal can replacement opportunities Created step change in wall thickness control and thereby enabling weight reduction, through new Smart machine production technology. Newly developed multilayer PET technology with high barrier as RPC standard, allowed customers to unique shelf appearance and weight reduction. 142 Thermoforming Blow moulding Blown film extrusion IML-T combines the highend decoration with light and oxygen barrier for food applications in thermoformed solutions. Improving our customer s environmental footprint further by reducing food waste, this by combining a bio-based PE bottle and high oxygen barrier technology. Combining new materials and conversion technologies, WaveGrip gives the market: speed, convenience and integrity through smarter multipack solution.

44 Supplementary Material Process technology innovation Material development Printed technology To enhance shelf presence and keep a cost-efficient packaging solution, we are moving offset print technology closer to IML decoration through RPC s own HD printing process. Process engineering enables Sugar can as a sustainable 100% renewable material resource. Available for injection and blow moulded applications. Light management through material science in horticulture films to reduce use of pesticides, optimised temperature management and thereby enhancing yields and profits. Assembly technology New, own developed, inmould-assembly in injection moulding has, amongst others, enabled us to double our machine output and reduce the customer s investment for coffee capsule capacity. 143

45 Supplementary Material Selected plastic packaging transactions acquisition multiples Overview (EV / EBITDA LTM) 14x Average 7.8x Average 9.0x 12x x 8x 6x 4x Source Mergermarket, company information Sector trading multiples Transaction multiples RPC major transactions

46 Supplementary Material Acquisitions in 2016 / 17 Acquisition: BPI Sanders Jagtenberg Revenue: Date: Reporting Division: Products / Markets: 468m Aug 16 New Division Polythene films for a diverse range of end markets, including agriculture and horticulture, construction, industrial, food & non-food retail 23m Oct 16 BPI Specialist manufacturer of innovative high yield collation shrink films 20m Oct 16 Promens Blow moulded products for packaging and selected non-packaging markets Strategic Rationale: Selective consolidation in Europe Selective consolidation in Europe Selective consolidation in Europe Plastiape 43m Nov 16 Bramlage Specialist in pharmaceutical devices, also provides pharmaceutical, personal care and packaging Selective consolidation in Europe 145 Synergy Packaging 11m Nov 16 M&H PET blow moulded containers to personal care, pharmaceutical and food markets Creating a meaningful presence outside Europe HYC 4m Jan 17 Ace Specialist in forming and printing of components for smart electronics. Strong expertise in-mould labelling technology Added value opportunities in non-packaging ESE World 179m Jan 17 Promens Europe's leading design and engineering provider of temporary waste storage solutions with well known regional and pan European brands Added value opportunities in non-packaging Letica 366m Mar 17 Superfos Manufacturer and distributor of rigid plastic packaging and foodservice products serving construction, foodservice, chemical and retail markets Creating a meaningful presence outside Europe Amber Plastics 6m Mar 17 Superfos Injection moulded product range offering premium decoration capabilities for food markets Creating a meaningful presence outside Europe

47 Supplementary Material Letica: a platform for growth in the key North American market Revenues of $455m, EBITDA of $67m (y/e December 2016) representing an acquisition multiple of 7.3x EBITDA Platform for future growth leveraging RPC s extensive product range / process technologies and customer relationships Anticipated cost savings (including synergies) of $17m Increases RPC s North American sales $730m providing critical mass in regional polymer purchasing 146 Existing RPC Letica Letica HQ/Tech Center Letica as was FTEs 1,750 Good start under RPC s ownership

48 Supplementary Material Polymer capacity expected to increase Global PP & PE: Capacity continues to grow and outpace demand Ability to source from outside Europe will become a key competitive advantage RPC s scale and extensive network provide a leading position from which to access global markets Key capacity additions are North America and Middle East, both targeting exports as markets globalise. China will look to become self-sufficient in PP, freeing capacity for other geographies 147 RPC s European operations are well placed through scale, infrastructure and flexibility to take advantage of global markets

49 Supplementary Material Polymer pass through detail million 2016 / / / / 14 RPC (3) / 16 acquisitions (2) 2 3 P&L impact 2016 / 17 acquisitions 2 5 Total (3) RPC (2) 6 (11) 2015 / 16 acquisitions (1) Year-on-year change 2016 / 17 acquisitions (3) Total (14) (3) 6 148

50 Financial Overview Income statement extract at FY 2014 / 15 polymer prices 2016 / / / 15 m % m % m % Revenue 2,747 1,642 1,222 Restated revenue* 2,397 1,677 1,222 Raw materials (1,085) 45 (787) 47 (584) 48 Wages and salaries (558) 23 (384) 23 (280) 23 Other expenses (417) 17 (297) 18 (226) % of restated revenue All costs exclude restructuring costs Revenue restated to at FY 2014 / 15 polymer pricing and before 2016 / 17 acquisitions

51 Supplementary Material Consolidated balance sheet million MAR 2017 MAR 2016 Property, plant and equipment 1, Goodwill 1, Other non-current assets Working capital Employee benefit liabilities (LT) (256.0) (150.3) 150 Provisions, including deferred consideration (163.8) (159.9) Other assets & liabilities (312.0) (182.9) Assets held for sale Net debt (1,049.1) (744.0) Equity shareholder funds 1,

52 Supplementary Material Pension update million MAR 2017 MAR 2016 Retirement benefit liability UK DBs Other retirement benefit obligations Termination benefits Other employee benefit liabilities Total employee benefit liability (LT) m of the increase from March 2016 relates to BPI scheme Key assumptions: FY 2016/17 FY 2015/16 Discount rate 2.6% 3.5% Inflation rate 2.1% 1.9%

53 * Share based payments, disposal of fixed assets and other non-cash items ** Ratio of cash flow to statutory operating profit RPC Group Plc Supplementary Material Statutory cash flow million 2016/ / /15 Adjusted EBITDA Movement in working capital 29 0 (3) Payment in respect of nonunderlying items Movement in provisions and financial liabilities (81) (50) (32) (56) (21) (31) Cash generated by operations Net capex (176) (101) (95) Cash flow Statutory operating profit Conversion** 82% 85% 33% Statutory conversion more than doubled in two years Capex ahead of depreciation (1.3x) 19m of acquisition costs within exceptional cash payments in 2016 / 17 Total of 84% investment in one time costs related to Promens / GCS / BPI Only 65% of the related benefits received 152

54 Supplementary Material Adjusted earnings reconciliation Earnings ( m) Adjusted earnings & EPS p Acquisition and integration costs (85.7) (24.1)p Deferred consideration on earn-outs 11.2 Amortisation acquired intangibles (31.0) 3.1p (8.7)p 153 Other non-underlying items (25.9) (7.3)p Total non-underlying tax p Total adjustments (89.0) (25.1)p Basic earnings & EPS p

55 Supplementary Material Exceptional definitions Expense Fitter for the Future Acquisition related expenditure Deferred consideration on earn-outs Integration costs Other integration & exceptional items Amortisation acquired intangibles Other non-underlying items Non underlying finance costs Description All expenditure related to a business improvement programme announced before the Vision 2020 Focused Growth Strategy, which was centred on rationalising RPC s European manufacturing footprint, optimising its business portfolio and realised value for the Group by disposing of its non-core businesses and redundant properties. This scheme was largely completed by the end of the 2014/15 financial year. The advisors fees and other expenses directly relating to both the group s completed acquisitions and aborted processes The remuneration earned by the shareholders of Ace and other acquisitions who must remain as employees of the Group for the duration of the earn-out period to qualify for the remuneration. It also includes adjustments related to the current expectation of the final payment Costs relate to the integration of the Promens, GCS and BPI businesses into the RPC organisation, including related restructuring, redundancy, closure costs and impairment charges. Includes other items such as start up costs. It also includes restructuring, redundancy and closure costs of other business optimisation programmes not directly affected by the Promens, GCS and BPI integration Relates to amortisation of intangible assets such as brands and customer relationships related to acquired business (amortised to the income statement on a straight-line basis their estimated useful life) Other immaterial non underlying costs including the pension admin costs on closed DB schemes Includes finance charges related to the defined benefit pension schemes and the Ace contingent consideration finance cost and the associated foreign exchange impact on the US dollar liability. 154

56 Supplementary Material Return definitions Expense ROCE RONOA Description ROCE is measured over the previous 12 months and normalised for the effect of acquisitions, is adjusted operating profit for continuing operations, divided by the average of opening and closing shareholders equity, after adjusting for net retirement benefit obligations, assets held for sale, acquisition intangibles and net borrowings for the year concerned. All years exclude Q4 acquisitions (2016/17: ESE, Letica and Amber). RONOA is measured over the previous 12 months and normalised for the effect of acquisitions, is adjusted operating profit for continuing operations divided by the average of opening and closing property plant and equipment and working capital for continuing operations for the year concerned. Comparatives are restated to include acquisitions on a pro forma basis and current year 2016 / 17 Q4 acquisitions are excluded (ESE, Letica and Amber) 155