RPC Group Half Year Presentation 2013

1. Bringing packaging to life
RPC GROUP PLC
2013/14 INTERIM RESULTS 28 NOVEMBER 2013

2. RPC Group Plc
2013/14 Interim Results
AGENDA
2
●Introduction PV
●Vision 2020 PV
●Business Review PV
●Fitter for the Future SK
●Financial review SK
●Outlook PV

3. RPC Group Plc
2013/14 Interim Results
VISION 2020
3
●RPC is a leading packaging company creating significant shareholder value
●Opportunities for focused growth – organically, consolidating in Europe through acquisitions and expanding our global presence
●Strong European asset base optimised by final phase of Fitter for the Future

4. RPC Group Plc
2013/14 Interim Results
● Progressive dividend with 2.5x dividend cover through the cycle
● Continue to target 20% ROCE through the cycle for existing business portfolio
4
VISION 2020
FINANCIAL METRICS
14.1% 16.5% 23.8% 22.3% 23.2%
FY 09/10 FY 10/11 FY 11/12 FY 12/13 HY 13/14
Adjusted operating profit (£m)
Return on sales (%)
Return on net
operating assets
40.9 55.3 94.9 90.4 46.6
6.2%
7.4%
9.0% 9.2%
8.9%
FY 09/10 FY 10/11 FY 11/12 FY 12/13 HY 13/14
VISION 2020: At least 20% VISION 2020: At least 8%
Reported figures for continuing operations

5. RPC Group Plc
2013/14 Interim Results
Focused growth
Continuing focus on organic growth
Selective consolidation in Europe
Creating a meaningful presence outside Europe
●Rigid plastic packaging market forecast to grow by 5.5% globally in the next five years with 2.7% growth in Europe
5
VISION 2020: FOCUSED GROWTH
●Plastic packaging – whilst concentrated in selective niches – remains a largely fragmented market
●Rigid plastic packaging is forecast to grow by 6.5% outside Europe whilst 94% of RPC’s sales are currently in Europe
Source: Smithers Pira, 2013

6. RPC Group Plc
2013/14 Interim Results
Focused growth
Continuing focus on organic growth
Selective consolidation in Europe
Creating a meaningful presence outside Europe
●More than 2% organic growth* achieved versus last year
6
VISION 2020: FOCUSED GROWTH PROGRESS
●Several opportunities to acquire being pursued actively
●Investment in US site of $9m to capture sales growth
* measured in polymer tonnes converted

7. RPC Group Plc
2013/14 Interim Results
BUSINESS REVIEW MARKET DEVELOPMENTS – GROWTH RESUMED
7
MARKET SEGMENT
ACTIVITY LEVELS
COMMENT
Personal care & Cosmetics

New product developments being converted into sales
Spreads & Dairy

Stable market with trend towards “In-Mould- Label” Injection moulding
Coffee

Continued strong growth in capsules for single-serve beverage systems
Surface coatings

Recovery of the Spanish economy supported growth
Pharmaceutical

Good opportunities in the pipeline, expected to come to the market in the medium term
Other food

Stable market. Overall sales has been adversely impacted by exit of vending
Other non-food

Slight reduction in activity levels to protect margins in leading market positions
6%
7%
10%
10%
23%
Other food
Long
shelf-life
Coffee
Spreads
Dairy
Products
Food 56%
4%
9%
15%
16%
Other
non- food
Pharmaceutical
Personal care and Cosmetics
Surface
coatings
Non- Food 44%

8. RPC Group Plc
2013/14 Interim Results
BUSINESS REVIEW SALES MIX CONTINUING TO IMPROVE
8
Higher added value products
24%
27%
30%
30%*
33%*
FY 09/10
FY 10/11
FY 11/12
HY 12/13
HY 13/14
Sales of higher added value products as % of group revenue (at constant FX rate)
*continuing operations only
●Higher added value products have grown to 33% of the Group’s turnover in the last four years
●Strong growth in the year of coffee capsules, personal care and Superfos thin wall/barrier food containers

9. RPC Group Plc
2013/14 Interim Results
Polymer price development
400
600
800
1,000
1,200
1,400
1,600
BUSINESS REVIEW
POLYMER PRICE PASS THROUGH - TIME LAG EFFECT NEUTRAL IN H1
PP polymer Supply/Demand
78%
80%
82%
84%
86%
88%
90%
92%
0
15
30
45
60
75
90
07 08 09 10 11 12 13 14 15 16 17
TONNES (M) OPERATING RATE %
Source: Chemical Market Associates, Inc.
9
Operating Rate Actual Demand Free Capacity Forecast Demand
Forecasts indicate favourable supply-demand going forward
€ PER TONNE
Source: Platts / ICIS
HDPE BM PP HOMO

10. RPC Group Plc
2013/14 Interim Results
“Fitter for the Future” optimisation programme
Rationalise manufacturing footprint
Optimise existing business portfolio
Realise value redundant properties
●Closure of 2 European locations and transfer of business to other RPC sites
10
FITTER FOR THE FUTURE PHASE 1 OVERVIEW
●Optimisation and efficiency programmes at 4 sites in Europe
●Value to be realised from 6 properties

11. RPC Group Plc
2013/14 Interim Results
(30)
(20)
(10)
(0)
P&L
exceptional
costs
Non-cash
asset
impairments
Working
capital
release
Sale of
properties
Net cash
outflow
FITTER FOR THE FUTURE
PHASE 1 – UPDATE
11
● Estimated cumulative P/L impact of at least:
* annualised £10m on continuing basis excluding
discontinued Cobelplast business
● Overall project within budget
● Savings delivered earlier than anticipated
● Progress on Oakham optimisation is showing
results in line with plan
● 2 properties sold in period
2 properties rented
2 properties being marketed for sale
£ million ACTUAL FORECAST
2012/13 2013/14 2014/15
EBIT Impact 2 6 9*
Cash outflow Fitter for the Future – HY 2013/14 (£m)
Incurred to date Remaining spend
(28)
(12)
3
4
8
(2)
(3)

12. RPC Group Plc
2013/14 Interim Results
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
RONOA < 10%
RONOA 10%–19%
RONOA >= 20%
FITTER FOR THE FUTURE FINAL PHASE RATIONALE
12
Final phase Fitter for the Future
2008/09 2009/10 2010/11 2011/12 2012/13
Business unit RONOA weighted by annual sales

13. RPC Group Plc
2013/14 Interim Results
FITTER FOR THE FUTURE FINAL PHASE
13
Programme main work streams:
Rationalise manufacturing footprint
Optimise existing business portfolio
Review of business portfolio
●Intended divestment of Cobelplast cluster
●Intended sale of disposable trading business
●Nordic region - merger of Tenhult into Mullsjö
●Merge French dairy operations
Programme contents:
●Strategic refocus Spanish operations
●Optimisation of overhead following internal re-organisation

14. RPC Group Plc
2013/14 Interim Results
(40)
(30)
(20)
(10)
0
P&L exceptional costs Non-cash asset
impairments
Working capital
release
Sale of business &
property
FITTER FOR THE FUTURE
FINANCIAL OVERVIEW
14
Estimated cumulative P/L EBIT impact of the
complete programme of at least:
£ million ACTUAL FORECAST
2012/13 2013/14 2014/15 2015/16 2016/17
F4F Phase 1* 2 6 9 10 10
F4F Final Phase - - 3 5 7
F4F Total 2 6 12 15 17
* annualised £10m on continuing basis excluding
discontinued Cobelplast business
P&L and Cash outflow Fitter for the Future Final Phase (£m)
(40)
23
17
Capital expenditure associated with the programme to be
funded from on-going investment budgets

15. RPC Group Plc
2013/14 Interim Results
FINANCIAL REVIEW KEY FIGURES
15
8.8p
11.8p
18.6p
18.4p
18.2p
12.3p
17.7p
19.3p
17.0p
09/10
10/11
11/12
12/13
13/14
18.1
22.0
46.0
47.0
46.6
22.8
33.3
48.9
43.4
09/10
10/11
11/12
12/13
13/14
Adjusted basic EPS*
All figures in £m (except adjusted basic EPS) and continuing operations
Adjusted = before restructuring costs, impairment losses and mark to market charges
* Restated following Rights Issue in 2011
Adjusted operating profit
Revenue
323
351
549
484
525
338
401
507
498
09/10
10/11
11/12
12/13
13/14

16. RPC Group Plc
2013/14 Interim Results
FINANCIAL REVIEW KEY FIGURES
16
2.5p
3.4p
4.2p
4.3p
4.5p
5.9p
8.1p
10.2p
10.6p
09/10
10/11
11/12
12/13
13/14
14.1%
16.5%
23.8%
22.3%
23.2%
Mar 10
Mar 11
Mar 12
Mar 13
Sep 13
28
22
21
31
51
37
47
79
55
09/10
10/11
11/12
12/13
13/14
Net cash from
operating activities (£m)
Dividend per share*
Return on
net operating assets
ROCE
13.5%
14.9%
20.2%
19.1%
20.0%
Dividend Cover
2.5
2.6
2.6
2.4
* Restated following Rights Issue in 2011
For continuing operations

17. RPC Group Plc
2013/14 Interim Results
FINANCIAL REVIEW CASHFLOW BRIDGE
17
(171)
(100)
(100)
(109)
(138)
(156)
(161)
(165)
71
0
(9)
(29)
(18)
(5)
(4)
* Includes discontinued operations, exchange rate movements, provision movements & movement on derivatives
Net Debt
Sep 2013
EBITDA
Working
Capital
Interest
& Tax
Investing Activities
Dividend
Other*
Net Debt
Mar 2013
Exceptional Spend

18. RPC Group Plc
2013/14 Interim Results
FINANCIAL REVIEW FINANCIAL POSITION
18
KPIs
SEP 2013
Gearing
65%
Net debt (£m)
165
Undrawn facilities (£m)
345
Net debt to EBITDA ratio
1.2x
0
50
100
150
200
250
2014
2015
2016
2017
2018
2019
2020
2021
Renewal date main facilities
USPP
USPP
RCF
Term
£m

19. RPC Group Plc
2013/14 Interim Results
OUTLOOK FINANCIAL POSITION
19
Vision 2020 to deliver profitable growth going forward
Second half of financial year has started well
Continued investment in second half to capture growth
Group is well placed to benefit from economic recovery in Europe

20. RPC Group Plc
2013/14 Interim Results
FORWARD LOOKING STATEMENTS
20
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 Company undertakes no obligation to update these forward-looking statements and nothing in this presentation should be construed as a profit forecast.

21. RPC Group Plc
2013/14 Interim Results
Supplementary material
21

22. RPC Group Plc
2013/14 Interim Results
FINANCIAL REVIEW CONSOLIDATED INCOME STATEMENT
22
£ million
H1 2013/14
H1 2012/13
Variance
Revenue
524.7
483.8
40.9
Operating profit – adjusted
46.6
47.0
(0.4)
Interest charge
(7.0)
(6.7)
(0.3)
Profit before tax – adjusted
39.6
40.3
(0.7)
Tax on adjusted profit before tax
(9.5)
(10.0)
0.5
Profit after tax – adjusted
30.1
30.3
(0.2)
Exceptional items
(9.5)
(11.1)
1.6
Discontinued operations
(16.1)
(7.7)
(8.4)
Tax relief on exceptional items & discontinued operations
1.5
2.0
(0.5)
Profit after tax – reported
6.0
13.5
(7.5)
Basic earnings per share (p) – adjusted & continuing
18.2p
18.4p
(0.2)p
Basic earnings per share (p) – reported & continuing
13.4p
12.9p
0.5p
Continuing operations

23. RPC Group Plc
2013/14 Interim Results
FINANCIAL REVIEW EXCEPTIONAL COSTS
23
£ million
H1 2013/14
Fitter for the Future project
5.4
Impairment – properties held for sale
0.8
Impairment – Assets held for sale
2.4
Other
0.9
9.5

24. RPC Group Plc
2013/14 Interim Results
FINANCIAL REVIEW SEGMENTAL ANALYSIS - IFRS 8 BASIS (Continuing operations)
24
* External sales only
** Based on adjusted operating profit before restructuring costs and impairment losses
£ million
H1 2013/14
H1 2012/13
Variance
Injection Moulding
Revenue*
341.1
302.1
39.0
Operating profit **
32.2
32.2
-
Return on sales **
9.4%
10.7%
(1.3)%
Return on net operating assets **
27.6%
26.7%
0.9%
Thermoforming
Revenue*
90.2
92.5
(2.3)
Operating profit **
8.2
8.9
(0.7)
Return on sales **
9.1%
9.6%
(0.5)%
Return on net operating assets **
28.1%
29.0%
(0.9)%
Blow Moulding
Revenue*
93.4
89.2
4.2
Operating profit **
6.2
5.9
0.3
Return on sales **
6.6%
6.6%
-
Return on net operating assets **
19.5%
19.0%
0.5%

25. RPC Group Plc
2013/14 Interim Results
FINANCIAL REVIEW SEGMENTAL ANALYSIS - IFRS 8 BASIS (Continuing operations)
25
£ million
H1 2013/14
H1 2012/13
Variance
UK
Revenue
123.1
116.2
6.9
Operating profit *
12.8
11.5
1.3
Return on sales
10.4%
9.9%
0.5%
Mainland Europe (including USA)
Revenue
401.6
367.6
34.0
Operating profit *
33.8
35.5
(1.7)
Return on sales
8.4%
9.7%
(1.3)%

26. RPC Group Plc
2013/14 Interim Results
FINANCIAL REVIEW CONSOLIDATED BALANCE SHEET
26
£ million
SEP 2013
MAR 2013
SEP 2012
Property, plant and equipment
372.7
395.3
364.8
Goodwill
90.3
93.1
87.5
Other non-current assets
27.9
33.1
28.4
Working capital
33.4
37.8
47.5
Employee benefit liabilities (LT)
(64.8)
(62.7)
(56.2)
Assets/liabilities held for sale excluding debt
8.7
4.7
5.1
Other assets & liabilities
(48.7)
(58.2)
(48.6)
Net debt
(165.3)
(171.4)
(165.5)
Equity shareholder funds
254.2
271.7
263.0

27. RPC Group Plc
2013/14 Interim Results
FINANCIAL REVIEW PENSIONS UPDATE
27
£ million
SEP 2013
MAR 2013
SEP 2012
Retirement benefit liability UK DB
37.5
33.5
27.6
Other retirement benefit obligations
23.4
24.5
23.6
Termination benefits
1.2
1.6
1.8
Other employee benefit liabilities
2.7
3.1
3.2
Total employee benefit liability (LT)
64.8
62.7
56.2