Folie 1 - Constantia Flexibles

Company Presentation

Constantia Flexibles People Passion Packaging

Constantia Flexibles at a glance Constantia Flexibles is one of the world's leading manufacturers of flexible packaging Serves multinational corporations and local market leaders

3 divisions

#2 in Europe, #4 globally

42 production plants in 18 countries

€1.7 bn in sales* 115 sales countries

Founded in 1994 Headquartered in Vienna, Austria Shareholders: Wendel Group (73%), H. Turnauer Stiftung (27%)

>3,000 customers >8,000 employees

* Pro forma sales 2013 are adjusted for full year revenues of acquisitions (sales impact: EUR 57 million)

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Global production network 42 plants in 18 countries Production Sites Sales Offices

3

6

Plants in North America

11

6

Plants in Europe

10

3

3

Plants in Emerging Markets

3

Sales by region and division in 2013 Sales by region

Asia Middle East 4% & Africa 5%

Americas

23%

Sales by division

Pharma 15%

Europe 68%

Labels 25%

Food 60%

4

Management Board

Thomas Unger

Peter Frauenknecht

Dr. Gerold Riegler

Franz Reiterer

(Chief Executive Officer)

(Chief Financial Officer)

(Chief Operating Officer)

(Chief Sales Officer Food)

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Executive Committee – Executive Vice Presidents

Stefan Bogoll

Stefan Grote

Friedrich Humer

Walter Ometto

Mike Henry

(Food North America)

(Food Europe)

(Food Emerging Markets)

(Pharma)

(Labels)

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Flexible packaging – what we offer

Flexible Packaging is the manufacture and supply of thin and flexible plastic films, aluminium foils and papers.

Used solely or in combination for direct and non-direct primary & secondary packaging for food and non-food products, retail, industrial and healthcare applications.

7

The 4 Ps of packaging – at the heart of our business Preservation

Protection

 Ensures optimal condition and longer shelf life

 Puncture resistance

 Barrier functions against UV light, moisture, oxygen, and seal integrity

 Tamper evidence

 Burst strength

Customers

Growth

Promotion  Promotional text  Design & shape  Customer convenience (microwaveable, heatable)

 Transportability  Hygiene standards

Presentation Employees

Society & environment

 Format  Ergonomics  Portion size  Essential information

 Functionality (easy to handle, carry, open, etc.)

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Our core values

Customers

Growth

Employees

Society & environment

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Our core values We focus on innovation and quality to make our customers more successful

We expand globally with our customers and create value for all stakeholders

Customers

We have an international team based on an corporate culture of trust, excellence and performance

Employees

Growth

x

Society & environment

We balance economic success with environmental and social responsibility

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Our customer benefits

Experienced people with passion for packaging

Complete range of solutions

Unrivaled customer service Continuous innovation Global production network Integrated production Long-term partnerships with customers

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Food solutions Lidding die cut Dairy

Dried food laminates Processed food

Lidding reel-fed

Coffee laminates

Confectionery foil

Alu-container systems

Confectionery

Processed meat Confectionery film

Pet food bags/pouches

Salted snack laminates Snacks Sweet snack laminates Broad portfolio of leading products for primary food packaging

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Pharma solutions Coldform foil

Blister lidding foil Pharma

Strip pack & suppository foil Sachet foil & laminate

Sachet foil

Home & Personal Care (HPC)

Wipe film Doypack foil Bag-on-Valve laminate

Stick pack foil

Broad portfolio of tailor-made products for Pharma and HPC

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Labels solutions

Beer, Wine & Spirits

Paper labels

Aluminum lid labels for beverage cans

Pressure sensitive labels

Paper labels

Soft drinks & Water Aluminum foil bottle neck

Wrap around labels Shrink sleeves In-Mould decoration In-Mould labels In-Mould with functionality

Targeted product offering focusing on the global beverage labels market

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Unrivaled customer service We manage for our clients:

Improving sustainability performance

Packaging trends

Food & beverage contact legislation

Packaging engineering

Logistics

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Long-term partnerships with customers

More than ten years relationship with the top 10 customers in all three divisions

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Integrated production Raw material sourcing and rolling  Strategic base material supply within the group  Distinctive know-how  Selected specialty film extrusion  State-of-the-art aluminum foil rolling facility

Lacquering / Lamination / Extrusion  Highly efficient lacquering, coating and lamination  In-house lacquer development

Printing / Cutting  UV flexo printing including in-line coating  Roto gravure printing incl. in-line lamination  Wide web conventional flexo printing  Offset printing for paper and film

Finishing / Aftermarket Service  Highly optimized diecutting and deepdrawing facilities  Bag & pouch making

We manage the entire value chain – ensuring high quality, quick response times, reliability & flexibility

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Quality and product safety Group quality standards – key elements  All sites have implemented a Quality Management System

 Specifically certified systems in dedicated plants  Full traceability of raw materials and processes  Raw materials only from approved suppliers  Implemented risk management  Fulfilment of legal requirements  Well-equipped quality labs at our sites  Full compliance with customer specifications

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Continuous innovation through formal process Technology-driven (push) innovation Innovation throughout the product life cycle

Idea

Marketing & performance analysis “CF Customer Academy” for training clients’ staff in flexible packaging

70 R&D personnel

Feasibility study

Product development

Application engineers

Customers

Product managers

Social macro trends (Sustainability, convenience, differentiation, high functionality, barrier protection)

Customer-driven (pull) innovation

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Competence centers  State-of-the-art competence centers for

Microscopy lab

Wet chemistry lab

Lab laminator

Co-extrusion pilot line

 Polymer films & film laminates  Aluminum & foil laminates  Labels (planned)  First technical contact to our suppliers to stimulate inhouse developments  In- and external consultant in the right raw material selection  Analytical capabilities

 Lab equipment to produce small samples and mock-ups

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Innovative product examples DieCut  New generation cup-lock system with self-developed co-extrusion  Increased production safety  Cost reduction vs today’s standard specification  Sustainability support (e.g. 50% aluminum reduction)

DryFoil  Reliable protection against moisture cross-diffusion  Shelf life extensions  Reliable system compatibility  PVC-free structure  High absorption capacity

SpearRC  Recyclable pressure-sensitive label alternative for PET bottles  Cost-effective recycling solution

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Innovation awards EAFA Alufoil trophies (2012-2014)*

International awards in the last 5 years

More than

12x

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*CFlex won the Alufoil Trophy that rewards the use of aluminum foil and aluminum closures in all its many forms and uses. Example: HiperWrap was awarded in 2013 in the category “Product Preservation”.

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Our core values

Customers

Growth

Employees

Society & environment

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Strong market position in attractive segments

Global #1

Global #2

Global #1

 Confectionery foil

 Blister lidding foils

 Die-cut lidding

 Coldform foils

 Beer labels (film and PSL, foil and paper)

 Alu-container systems Global #2  Reel-fed lidding

 In-mould labels

“

Every second beer on the planet has a Constantia Label

~60% of sales in attractive markets, where Constantia commands a #1 or 2 position

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Success story of continuous growth From a leading European supplier…  Network of medium-sized companies  Business focus on Europe  Mainly export sales  Supplier of packaging materials with focus on aluminum

…to a global player  A group with a mission and a clear strategy  Realizing global growth opportunities  Multi-domestic production  Solution provider with comprehensive material competence

Growth through M&A and organic growth €1.7bn** €1.0bn €0.7bn

Sales 2005

2010

2013

E 2020

*

CAGR including 2013 acquisitions of Globalpack, Spear and Parikh Packaging ** Pro forma sales 2013 are adjusted for full year revenues of acquisitions (sales impact: EUR 57 million)

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Investing for our customers Total investments 2011–2013: € 444 mn

CAPEX* 51%

Acquisitions 49%

Major CAPEX projects  Lacquering and Laminations Plant: Constantia Patz (AT)  Offset Printing Machines: Verstraete in mould labels (BE)  UV Flexoprinting Machine: Constantia Blythewood (USA)  Flexo Printing line: Constantia Aluprint San Luis Potosí (MEX)  Converting Center (Double Lacquering and Lamination Plant, Downstream Rotogravure Printing): Constantia Teich (AT)  Rotogravure Printing Machines: Constantia Hueck Folien (DE), Constantia Ebert (DE), Constantia Teich Poland(PL)

Major acquisitions  Asaş, TR (2011)  Parikh, IN (2013)  Spear, USA (2013)  Globalpack, MX (2013)

* Capital Expenditures

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Global trends drive demand for flexible packaging Global trend

Factors driving demand

Urbanization

 Demand for packed food with longer shelf lives  From large to small families

Packaged food

Emerging middle class

 Purchase based on social demands

Premium brand packaging

Premium products

 Demand for premium and functional packaging  Significance of marketing / branding

Premium and convenient packaging

Health

 Ageing society demands pharma products  Health standards in emerging markets rise

Pharma packaging

Sustainability

 Smaller carbon footprint  Reduction of material thickness, etc.

Environmentally friendly packaging

Flexible packaging solutions

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Our strategy for long-term profitable growth Strengthening customer relations with multinational companies Consolidation and extension of European market leadership Realizing selected growth opportunities in North America

Expansion in the fastest-growing emerging markets Maximization of Group synergy and optimization of operational performance

Strong relationships with international corporations Targeted acquisitions in growth sectors and regions

 

Established technological know-how Efficient production sites and processes

 

Strong foundation gives us competitive advantage

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Our core values

Customers

Growth

Employees

Society & environment

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Sustainability “Sustainability means balancing economic success with environmental and social responsibility. This strategy ensures long-term success.” Thomas Unger, Chief Executive Officer

Corporate carbon footprint goal

By 2012 Constantia Flexibles already achieved three-quarters of Product & Process its goal to reduceIntegrating CO2* emissions Sustainthe whole ability Supply to 2023. by 40% from 2005 Chain

Progress in reduction of CO2-emissions per produced m² Reduction of about 30% 100% 70%

2005

2012

* Related to m2 output, calculation based on Scope 1 and Scope 2 as defined by the Greenhouse Gas Protocol Initiative

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Committed to a responsible policy Economic responsibility  Systematic risk management

 Compliance guidelines  Comprehensive quality management

Environmental responsibility

Social responsibility

 Environmentally friendly and resource-sparing production technology, materials and ingredients

 Extensive measures to protect human rights

 Ethical sourcing (member of SEDEX)

 Social outreach project for disadvantaged groups

 Reduction of environmental pollution, waste & greenhouse gases

 Group Social Award for outstanding achievement

 Zero tolerance of discrimination against employees

Our sustainability policy focuses on our responsibility to the environment and our neighbors

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Transparency along the entire supply chain Full disclosure of our CSR KPIs at selected platforms for our stakeholders

 Aims at improving environmental and social practices by leveraging the influence of global supply chains

 Two objectives of EcoVadis: – Improve performance combining innovative information technologies with shared service expertise on sustainable procurement – Reduce costs associated with suppliers’ CSR performance monitoring



Enables companies to – Quickly determine their supply chain footprint – Encourage and support suppliers to measure and manage material business issues – Communicate with them on their performance over time – Drive long shared value for the business

Our ethical principles Endorsing SEDEX’ ethical standards

Part of Aluminum Stewardship Initiative (ASI)

 Non-profit member platform dedicated to improving ethical supply standards along the value chain



 SEDEX focuses on 4 areas – Labor standards – Health & safety – Environment – Business integrity



Non-profit initiative to foster greater sustainability and transparency throughout our industry ASI tries to mobilize a broad base of stakeholders to establish and promote responsible leading practices – Across the aluminum value chain – In business ethics – In environmental and social performance

 Tools for exchanging information include standardized questionnaires and audits (SMETA = Sedex Members Ethical Trade Audit)

Bauxite mining

Refining

Aluminum smelting

Further processing

Recycling

The Group Social Award We are committed to integrating social activities at all our sites We encourage our employees to support social projects, especially in Constantia’s immediate neighborhoods and annually award the best projects. Restoration of Elementary School in Guanos, Mexico

Cooking for the homeless at VinziRast house in Vienna, Austria

Help for schools and kindergartens in Poland

Free employee counseling in private or professional problems in Austria

Collaborative art book of mentally disturbed people in the US

Internships for young people with disabilities in Poland

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Our core values

Customers

Growth

Employees

Society & environment

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Our employees Number of employees by region (year-end)

x 2.9 8,093

Thereof approx. 7,000 in production

2,821

2000

2013 Europe

Americas

MEA

Asia

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Experienced people with passion for packaging An attractive employer with a corporate culture focused on employee development Culture & respect  Work beyond country borders  Foster proximity and openness  Encourage international transfers

Learning & development  Hiring the best candidates through structured processes  Develop employees’ skills and performance based on three core competencies: Driving customer value, fostering collaboration, passion for results  Strategic talent management

Rewards & fringe benefits  Design our reward and compensation system in order to: – Foster motivation and competitiveness – Increase performanceorientation

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Our employees live operational excellence  Goal of attaining operational excellence at all facilities  Increased efficiency through:  Efficiency programs such as the Continuous Improvement Process  Annual CIP prizes for individual projects and the Group’s best site  Lean manufacturing programs (incl. waste reduction, increased production speed, etc.)  Introduction of best practices through rollout of successful projects from one facility to all others

Operational excellence is attained when every employee understands how to create value for our customers

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www.cflex.com 39