Jeff Anderson, Biffa COO - Capital Markets Day Resource presentation for sustainable waste management. 17th September 2019

1. Capital Markets Day
17 September 2019
Leading in UK
Sustainable Waste
Management

2. Mick Davis
Chief Operating Officer
Resources & Energy

3. Introduction to the
Resources & Energy
Division

4. Biffa’s Resources & Energy portfolio
47
InertsRecycling EfW developmentLandfill Gas
Key
Stats
 Treatment & disposal of
contaminated inerts
 Produces sands and
aggregates
 Provides landfill
disposal for untreatable
residues
 Sorting and trading of
dry recyclable
commodities
 Advanced closed loop
food grade plastic
recycling
 Treatment of organic
waste to produce
compost and renewable
energy
 Includes long term MBT
contracts at Leicester
and West Sussex
 Energy generation from
landfill gas extraction
Net Revenue: £61.7M
Tonnages: 0.5M
Sites: 5
 Treatment of general
waste for energy
recovery
Net Revenue: £79.2M
Tonnages: 0.5M
Sites: 8
Net Revenue: £45.5M
GWh: 350
Sites: 36
Net Revenue: £47.1M
Tonnages: 3.6M
Sites: 23
Organics
Overview
*Gross Revenue: £120M
Tonnages: 750ktpa
Sites: 2
Quoted figures refer to the 52 week period ended 29 March 2019 *Gross Project Revenue. Biffa’s share to be incorporated as part of share of net income from JV

5. A reminder of Biffa’s Integrated proposition
 Key to success is security of
feed-stock quality and quantity
 We have scale and are integrated
48
PRODUCTION
MANUFACTURING /
RAW MATERIALS
BIFFA
POLYMERS
EFW
UK

6. Plastics Recycling
Polymers
Resources & Energy:
Polymers – Leading in UK
plastic recycling

7. 50
 Blue Planet
 Consumer awareness – demand for recycled content
 Brand Value – Sustainability non-negotiable
 Legislation
 HMRC – plastic tax
 Recyclability – Extended Producer Responsibility
Public opinion and government policy are aligned
(1) Quant survey 2018, UK, CHI,INDO, FR, GER, SP, MEX
78% of consumers prefer more sustainable plastic packaging rather than choosing to abandon plastic completely1

8. Where the different policies for plastics sit in the waste hierarchy
Stages
Most
Preferred
Least
Preferred
Prevention
Re-use
Recycling
Other
recovery
Disposal
51
 Ban on single use plastics
 Bags for life
 Closed loop mechanical recycling
 Open loop mechanical recycling
 Chemical recycling
 Biodegradable plastics
Policy examples

9. 52
5
Process
lines
63,000
Tonnes
input pa
92
Customers
143
Full time
employees
Current Operations based in Redcar
Operating from one of the most technically advanced plastic
reprocessing facilities in the world, delivering solutions by
converting waste plastics into high value raw materials.
Biffa
Polymers
Redcar

10. 53
A Great Track Record to Build on
Completed In build
2000 ‘02 ‘04 ‘06 ’08 ‘10 ‘12 ‘14 ’16 ‘20
Pre-consumer
PP processing
World’s first food
grade HDPE (milk
bottle) plant
Post-consumer
mixed plastics
processing
2nd HDPE
line
’21
Extend mixed
plastics
capacity
PET Investments
‘18
FY00 FY08 FY16 FY19
Tonnage 6,000 24,000 52,000 63,000
Revenue £2m £10m £20m £40m

11.  Collaboration along the entire supply chain from
dairies to supermarkets
 In 2008 set a target to achieve 30% recycled content
by 2015
 Biffa developed the world’s first food-grade standard
recycling HDPE plant
 Won the Queen’s Award for Enterprise Innovation in
2009
 Industry standardised labels , glues and pigments to
boost recycling
 The result is Biffa’s recycled plastic is used in 85% of
plastic milk bottles
54
We pioneered a Sustainable Industry-wide Model

12. Delivering a True Closed-Loop Recycling Model
55
Collection SortingMixed Recycling
Hot Wash
Bales
Washed flake
Colour sort &
decontamination
PelletsBlow Moulding
Supermarket
Dairy

13. Long-standing Customer Relationships
56
57,000
Tonnes
input pa
38,000
Tonnes
output pa

14. Investment
Opportunity

15. Resources & Waste Strategy Dec 2018 :
 To achieve at least 65% recycling of
municipal waste by 2035
 To work towards all plastics placed on
the market being recyclable, reusable
or compostable by 2025 and
 To eliminate avoidable plastic waste
over the lifetime of the 25 year plan
58
 Launched by WRAP
in 2018
 Members represent
80% of plastics
packaging sold in UK
supermarkets
 The targets for 2025
are :
UK Government Policy is aligning with Europe and Public
Sentiment

16. 59
… and this is Feeding a Huge Uplift in Demand
Growth Drivers for UK processing capacity
 Extended producer responsibility boosting demand
 Plastic tax
 Deposit Return Schemes increasing supply
 Sustainability becoming a key measure of business
performance
 Increasing capture rates expected to meet
Government and Plastic Pact targets (66% and 70%
by 2025)
 Potential South East Asia ban on importing plastics
 Potential UK ban on export of plastics
UK processing market could grow 3 - 5x by
2025
- 2017 based on National Packaging Waste data and Biffa recycled tonnage.
- 2021 & 2025 indicative projections based on: exports declining to nil and 70% plastics
recycling target achieved by 2025; total plastics volume remains constant.

17. New PET Bottle Recycling Facility in Seaham
60
£27.5m
Investment
57,000
Tonnes
input pa
1.3bn
Bottles
recycled pa
96
Full time
employees
Biffa
Polymers
Seaham
When completed Seaham will be the most modern and technically advanced
PET facility in the world, converting waste plastic bottles into high purity food
contact material.
£40m
Annual
Revenues

18. Critical Success Factors
61
Biffa is uniquely positioned to succeed
 Long established team
 Pioneered food safety protocols in Europe
 Self-delivered HDPE expansion in 2017
 Flexible design to meet all end customers’
requirements
 Biffa collections: 2,800 trucks
 MRF network provides high quality
sorted materials
 Modifying MRFs to expand plastic
sorting capacity
 Long-standing relationships through
HDPE business
 Supply to blow moulders or brands
directly
 De-risked commercial model and long-
term commitments under negotiation
Development &
Operational Excellence
Control of Feedstock Trusted Offtake Partnerships

19. Indicative Expansion Strategy and Impact
62
 PP post-industrial 20,000
 PP post-consumer 7,000
 HDPE post-consumer 28,000
 PP wash plant expansion 8,000
63,000
Operational now: Tonnes pa
 PET (from FY21) 57,000
120,000
Committed and in-build (£27.5m):
 Expand PP post-consumer 15,000
 Expand HDPE 14,000
 Expand PET 57,000
206,000
Future potential projects (£30-50m):
Medium term targets:
 Revenue between £120M - £150M
 Operating Profit £10M - £15M

20. Conclusion

21. Concluding Remarks
 #1 in food grade recycled plastic
 Integrated supply chain
Market leader today
 Government policy alignment and taxes
 Brand producers response
 Closed loop - highest level of recycling
Unprecedented demand
 Same team
 Same technology
 Same customers
Demonstrated track record
 Control of feedstock
 Protected margins
 Strength of team
De-risked business model

22. Developing Energy
from Waste
Infrastructure