RPC GROUP PLC CAPITAL MARKETS DAY PDF Free Download

Agenda Setting the scene Vision 2020 strategy: Opportunities going forward In conclusion Breakout presentations: Innovation in rigid plastic packaging Selective consolidation in Europe. Case study: Flexibles Business strategy outside Europe Added value opportunities in non-packaging markets 2

3 SETTING THE SCENE

FOCUSED GROWTH Vision 2020 strategy: Focused growth Continuing focus on organic growth Plastic packaging market forecast to grow by 3.7% p.a. (1) globally in the next five years Innovative design and engineering company Selective consolidation in Europe Plastic packaging - whilst concentrated in selective niches remains a largely segmented market Leading strategic consolidator in Europe Creating a meaningful presence outside Europe Higher growth forecast outside Europe whilst 75% of RPC s sales are currently in Europe (2) High added value niche strategy outside Europe Pursuing added value opportunities in non-packaging markets Wide spectrum of polymer consuming markets; segments advanced by innovation offer attractive opportunities Leading polymer and engineering capabilities 5 (1) Smithers Pira, 2017 (2) Pro forma to include a full year of acquisitions

A leading global design and engineering company for plastic products RPC Sales 2016/17 - by end market* RPC Sales 2016/17 - by destination* 3.6bn sales Food 29% Non-Food 26% Personal Care 12% Beverage 11% Healthcare 5% Non-packaging Markets 17% 3.6bn sales Europe 75% North America 17% Asia 4% Rest of World 4% *Pro forma to include a full year of acquisitions 6

Global footprint - worldwide excellence in design and engineering Largest European plastic converter and industry leading innovator 194 operations 34 countries 32 design & engineering centres circa 25,000 employees 1993 listed on London Stock Exchange FTSE 250 member since 2011 Manufacturing countries Countries we sell into 7

Macro economic trends favouring growth in plastic packaging Packaging by material type Rigid Plastic Flexible Plastic 3.4% 4.0% Growth drivers Rising and ageing populations Rigid Plastic Flexible Plastic Card Metal Glass Card Metal 2.7% 1.4% Increasing number of smaller and single person households in developed economies Glass 2.4% $400 $200 USD $ billions $0 0% 2% 4% 6% CAGR Increasing income in emerging markets Plastic packaging by region Europe 2.8% Busier lifestyles and convenience packaging North America South & Central America Asia 2.0% 2.3% 5.0% Growing importance of lightweighting, sustainability and the circular economy 8 $150 $100 $50 USD $ billions $0 Rest of World 4.9% 0% 2% 4% 6% CAGR Move to e-commerce Level of impact: Significant Positive Neutral Negative Source: Smithers Pira - 2017-2022 Market forecast

Fibre Glass Metal Plastics / Specialties Global consolidation well advanced across non-plastic substrates Packaging segment 1980 Key players 2017 Key players 2017 Key players global market share Rigid plastics Flexibles Numerous Numerous 5 5 10% 30% Consolidation in progress Food cans 25 3 80% Beverage cans 14 3 80% Bottles 19 3 90% Consolidation well advanced Paperboard Numerous 5 75% 10 Containerboard, corrugated Numerous 5 75% Source: Deutsche Bank Research, Smithers Pira

Major plastic packaging peers Revenue (1) USD $bn $10.8 Combined revenue <15% market share rigid and flexible markets $9.2 $7.8 $8.1 $7.5 (2) $4.8 $5.4 $4.8 $4.7 (2) $4.0 $4.6 $3.7 $3.5 $1.3 $2.5 $2.3 $1.5 $2.3 $1.9 (2) $1.3 2017 2013 2017 2013 2017 2013 2017 2013 2017 2013 2017 2013 2017 2013 2017 2013 2017 2013 2017 2013 (3) (3) (3) 11 RPC IS THE MAJOR EUROPEAN STRATEGIC CONSOLIDATOR (1) Revenues for continuing operations for the financial years closest to RPC s 31 Mar year end. GBP revenue converted to USD using an exchange rate of 0.77, EUR converted using a rate of 0.88 (2) Pro forma to include a full year of acquisitions (3) Revenues exclude non-plastic divisions

Performance since Vision 2020 strategy launch (1/4) RPC as was year ended RPC pro forma to include a full year of acquisitions 25% % of RPC sales 890m 2.0% GDP 3 year average weighted to RPC s destination of sales 3.2% RPC 3 year average like-for-like sales 1,100 610 450 310 13/14 14/15 15/16 16/17 Tonnes annualised (Thousands) 5% 50m 2012 /13 15% 420m 2016 /17 RPC revenue outside Europe (by destination) 3 year organic growth > GDP Good innovation and market focus driven organic growth ahead of GDP Strategic scale in polymer procurement Access to global sources of polymer Secures supply in tight markets Opportunities for group wide enhancement exist Solid platforms outside Europe Entered new geographies, following multinational customers 12

Performance since Vision 2020 strategy launch (2/4) Sales ( m) Adjusted operating profit ( m) All figures are based on continuing operations Return on net operating assets* # 2,747 308 11.2% Return on sales 20.6% 26.0% 982 92 9.3 % 12/13 16/17 12/13 16/17 12/13 16/17 13 SIGNIFICANTLY ENLARGED BUSINESS WITH ENHANCED OPERATIONAL RETURNS *Normalised for the effect of acquisitions and excluding Q4 acquisitions (2013: None, 2017: ESE, Letica and Amber). Comparatives restated to include acquisitions on pro forma basis # Full definition included within supplementary material

Performance since Vision 2020 strategy launch (3/4) Capital employed ( m) Return on capital employed* # 2,195 EBIT and operating cash flow ( m) 308 95% 294 19.4% 1,720 Capital employed 13.9% ROCE 15.1% EBIT m Operating cash flow # m Cash conversion 92 192 157 82% 475 81% 74 62 70 % 44 2012 /13 RPC Group pre Vision 2020 5 years Acquisitions & organic investments 2016 /17 RPC Group March 2017 Adjusted Statutory Adjusted Statutory 2012 /13 2016 /17 14 Increased capital employed; well above WACC returns Cash flow improved whilst funding a large restructuring programme consolidating the European footprint *Normalised for the effect of acquisitions and excluding Q4 acquisitions (2013: None, 2017: ESE, Letica and Amber) # Full definition included within supplementary material

Performance since Vision 2020 strategy launch (4/4) Adjusted earnings per share vs. Dividends per share Restated following Rights Issues in 1996, 2011, 2015, 2016 and 2017 EPS 62.2p DPS 24.0p 5.1p 2.0p RPC s flotation 92/93 16/17 15 SIGNIFICANT SHAREHOLDER VALUE CREATED

VISION 2020 STRATEGY: OPPORTUNITIES GOING FORWARD 1. Innovation based organic growth 2. Selective acquisition opportunities in Europe 3. Leveraging our global platform 16

17 INNOVATION BASED ORGANIC GROWTH

Innovation based organic growth (1/4) Organic growth profile Overall like-for-like annual growth of c.3% achieved since the launch of Vision 2020, ahead of relevant GDP Global plastic packaging markets anticipated to grow by c.4%* with the highest growth rates outside Europe and North America Growth strategies focused on innovation with price / margin emphasis in more mature market segments Growth outside Europe more turn-key related, leveraging group wide innovation capability 18 TARGETING ORGANIC GROWTH THROUGH THE CYCLE AHEAD OF GDP * Growth rates to 2022 (Source: Smithers Pira, 2017)

Innovation based organic growth (2/4) Innovation in product design and engineering Consistent investment in product design and process technology Group currently has 32 focused innovation centres with well over 1,000 patents Innovation capability is a key competitive advantage over generally smaller and less well invested competitors Numerous innovative projects in the pipeline 19 LEADING INNOVATION CAPABILITIES DELIVERING ORGANIC GROWTH

Innovation based organic growth (3/4) Continued investment in growth related capital expenditure 1.2x m s Depreciation Maintenance related capex Growth related capex Capex / depreciation: 42 1.7x 1.4x 1.6x 50 52 33 74 54 36 42 49 129 1.4x 93 83 circa 190 circa 225 13/14 14/15 15/16 16/17 17/18 Technical guidance Revenue 1,047 1,222 1,642 2,747 Capex to revenue 6.5% 7.6% 6.2% 6.4% 21

Innovation based organic growth (4/4) RPC s key competitive advantages Innovation in product design, engineering and material science Providing security of supply Breadth of product ranges and conversion technologies Ability to invest in and manage global turn-key projects Scale and global geographical footprint Sector focused management teams providing best-in-class speed to market 23 RPC WELL PLACED VERSUS COMPETITION

24 SELECTIVE ACQUISITION OPPORTUNITIES IN EUROPE

Selective acquisition opportunities in Europe (1/3) Disciplined and selective approach to acquisitions Core acquisition criteria Strategic fit Strength of incumbent management Financial track record Financial criteria: ROCE > WACC of RPC Quantifiable cost and cash synergies Impact on Group KPIs (ROS & RONOA) Earnings accretion Acquisitions generally concluded at below market average EBITDA multiples Overview (EV / EBITDA LTM) 2011-2013 Average 7.8x 2014-2017 Average 9.3x Transaction multiples Sector trading multiples RPC major transactions = Source: Mergermarket, company information Adding value Improving RPC s overall commercial position Improving RPC s strategic buying position Realising cost synergies (including procurement) Enhancing performance and innovation focus of acquired businesses 25

Selective acquisition opportunities in Europe (2/3) Disciplined and selective approach to acquisitions Acquisition process >360 40% Rejected without extensive review Opportunities presented to RPC (since launch of Vision 2020) Industry is consolidating numerous opportunities presented Database maintained with attractive assets to be actively approached Desktop review Desktop review of businesses and market segment More attractive opportunities progressed to review involving business management teams Rejected where no strategic fit or value >215 Targets reviewed in-depth In-depth due diligence performed by RPC teams and external advisers Rejected when target does not meet RPC s acquisition criteria 26 94 17 Acquired Hand over to divisional management team and corporate purchasing Of those reviewed in-depth, 17 were acquired equating to 18% More than one in three acquisitions have been off-market, one-to-one processes initiated through existing industry relationships 60% 25% 5%

Selective acquisition opportunities in Europe (3/3) Size of the opportunity in Europe Rigid and flexible plastic packaging Actively monitored targets Note: Not representative of total market, only those targets actively monitored Europe* c. 63bn Size (by revenue) Number Combined revenues > 500m 12 > 13bn 50m- 500m 60 > 11bn < 50m >100 > 2bn RPC c. 3bn (European packaging only) Total > 26bn Numerous opportunities driven by: Short term hold periods of private equity Owner-managed business with succession challenges 27 IDENTIFIED GOOD QUALITY ACQUISITION OPPORTUNITIES IN EUROPE WITH COMBINED REVENUES OF > 26 BILLION *Smithers Pira, 2017; converted to EUR using an exchange rate of 0.88

28 LEVERAGING OUR GLOBAL PLATFORM

Leveraging our global platform (1/2) General approach RPC revenue outside Europe (by destination) Innovation and best practice sharing: Sports cap RPC as was year ended RPC pro forma to include a full year of acquisitions 890m 25% Sales 420m 15% Our approach: % of RPC sales 5% 50m 2012 /13 2016 /17 Key account management for major multi-national customers in support of their globalisation strategies Network of 32 centres of excellence providing an innovative and comprehensive product offering Utilising global manufacturing footprint with local management teams providing best-in-class speed to market Market leading beverage closure, developed in France Now produced in 6 countries across 3 continents; sold worldwide Efficient roll-out facilitated by internally developed standardised approach Patented innovation incorporating functionality for on-the-go consumption 29 INTERNATIONAL PLATFORM PROVIDING ATTRACTIVE GROWTH OPPORTUNITIES

Leveraging our global platform (2/2) Focus by region North America Introduce RPC s wider product offering through the enhanced geographic footprint Realising the previously announced US$17m of cost savings (including synergies) associated with Letica 22 locations c. 630m sales* Asia Continue to grow sales by extending the product range with higher added value solutions, utilising the Asian manufacturing network 11 locations c. 130m sales* South America Establish a wider manufacturing footprint Start-up plant in Brazil for key multi-national customer 1 location Start-up Africa Introduce RPC s wider product offering through the enhanced geographic footprint 12 locations c. 75m sales* 30 Australia Introduce RPC s wider product offering through the enhanced geographic footprint 2 locations c. 25m sales* *Pro forma to include a full year of acquisitions

31 CAPITAL MARKETS DAY: IN CONCLUSION

In conclusion Further developing the current business: Innovation based organic growth Leveraging global platform Concluding the European synergy programme Continuously reviewing performance of the current business portfolio Acquiring quality businesses that meet our strict acquisition criteria: Focus on a selective roll-up acquisition strategy in our core European markets Targeted bolt-on acquisitions in non-european markets 32 VISION 2020 STRATEGY TO CONTINUE TO ADD SHAREHOLDER VALUE

33 CAPITAL MARKETS DAY BREAKOUT PRESENTATIONS

Capital Markets Day breakout presentations Alfons Böckmann CEO - RPC Bramlage Andrew Green Deputy CEO - RPC bpi Group Björn Hedenström Promens ESE - CEO David Duffield CEO - RPC M&H Derek Hindle Bramlage - Business Development Director Eric Chavent Global Account Director Frank Doorenbosch Director Business Improvement CEO - RPC bpi group Gerry McGarry bpi Recycled Products Business Director Jack Yeung CEO - RPC Ace Johan Van Landschoot bpi Indupac - Business Director Marc Rademacher Bebo Plastik - General Manager René Valentin CEO - RPC Superfos 34 Robin Moore Superfos Astrapak - CEO Thierry Bernet Bramlage Sustainability Director Thorsten Fisher Bramlage Pharma Business Unit Manager Innovation in rigid plastic packaging Selective consolidation in Europe. Case study: Flexibles Anton Letica Superfos Letica - President CEO Vincent Clauzel Bramlage Astra Plastique & ZP Managing Director Business strategy outside Europe Added value opportunities in non-packaging markets Wim Warnier bpi Agriculture Business Director

Summary Vision 2020 strategy successful to date Good value creating opportunities going forward Underpinned by Innovation capabilities Depth in management 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 the approval of this presentation and such information 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. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. Nothing in this announcement shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other financial instruments, nor shall it constitute a recommendation or advice in respect of any securities or other financial instruments or any other matter. 38

39 Supplementary material

Return definitions Supplementary material Definition ROCE RONOA Operating cash flow 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 2016/17 Q4 acquisitions are excluded (ESE, Letica and Amber) Operating cash flow is cash generated from operations less net capital expenditure, adjusted to exclude exceptional cash flows and non-underlying cash provision movements 40

RPC GROUP PLC CAPITAL MARKETS DAY 2017