Speaker presentation at the Europack Summit 2017 Ana Fernandez, Global Innovations Director, Klöckner Pentaplast Group

1. Using Marketing Insight to Innovate Sustainable
Plastic Food Packaging Solutions
EuroPack Summit 2017 - Montreux, Switzerland
Tuesday 19th September, 2017
Ana Fernandez – Global Innovations Director

2. © kp 2017
Today’s Presenter
Dr. Ana Fernández
Klöckner Pentaplast – Food & Consumer Packaging Global Innovations Director
Prior to joining LINPAC she was a Researcher
at CIEMAT (Centre for Energy, Environment and
Technology) Madrid, Spain from 1986 till 1989.
From 1989 to 2016 she was Operations
Manager at LINPAC Packaging Pravia, Spain
Prior to joining Klöckner Pentaplast through
acquisition, between 2016 and 2017, she was
Global Innovations Director at LINPAC
Packaging
FCP Global Innovations Director since July
2017

3. kp’s New Global Footprint
> 6,300
Employees
> € 2 Billion*
Annual revenues
32
Locations
18
Countries
Food & Consumer PackagingPharmaceutical Films Label / Specialty Applications
*€ 1.254 Billion turnover
Status as of September 30, 2016

4. 4
What Sets Klöckner Pentaplast Apart
Global Reach R&D Powerhouse Cost Effective SolutionsHigh Standards
• Global sourcing
• Global manufacturing and
distribution facilities
• Halal certified films
• Bringing together two of
the most innovative firms
in the film and packaging
industry
• kp offers tailor-made to
address customer needs
• kp has the highest
production standards in the
business
• Every order meets your
precise specifications
• Using our expertise and
broad range of capabilities,
kp develops cost-effective
solutions
• Innovation hubs like the kp
i.centers – USA and Spain
– present the opportunity to
collaborate and find
solutions in real-time
Klöckner Pentaplast

5. Leader in Rigid and Flexible Packaging Solutions
A global market leader
A one-stop shop for
food customers
A true R&D powerhouse
Extended reach and
global footprint
combined annual
revenues exceeding
$2 billion
world class film
production
development of products,
solutions and design
capabilities
32 locations
across 18 countries
offerings in end markets
such as pharmaceuticals,
food and beverage, and
consumer and industrial
products
highly innovative film
production and
conversion capabilities
tailor-made films address
customer needs and will
unlock further growth
potential
approximately
6,300 employees
5Klöckner Pentaplast

6. Klöckner Pentaplast
Balanced business portfolio serving end markets of food, consumer packaging, pharmaceutical and medical device and labels and
specialty applications.
PHARMACEUTICAL
PACKAGING
Mono
Films
Barrier
Films
Cold
Form Foil
Medical
Device
Cards
Consumer
Packaging
Tape & Other
Applications
Labels
Food
Packaging
FOOD & CONSUMER
PACKAGING
LABEL FILMS & SPECIALTY
APPLICATIONS
Decorative Surfaces
6Klöckner Pentaplast

7. Klöckner Pentaplast Acquires LINPAC
7
32 combined locations
> 6.300 employees
~ €2 billion in revenues
Sales to 100 countries
Klöckner Pentaplast now
Food and Consumer Packaging
Pharmaceutical Packaging
Specialties
kp organized into 3 P&Ls
Flexible films - lidding and base web lamination
Thermoforming for food applications
Punnets business for tomatoes and loose fruit
LINPAC existing business is
heavily concentrated in
Western Europe and consists
of …
IMAGINE
Klöckner Pentaplast

8. With LINPAC’s multi-market sectors, kp Food is expanded as a leader in sustainable rigid and flexible
packaging solutions to deliver safe, fresh food.
kp Food Broadens Spectrum
Meat
Fish
Poultry
Bakery Food
Service
Fruit &
Vegetables
Prepared &
Chilled
Foods
Market Sectors
8Klöckner Pentaplast

9. Committed to Responsibility
Our sustainability commitment
Produce films that enhance quality of life and protect
the earth’s resources
Environmental Stewardship
Source materials responsibly; apply best practices to minimize depletion
of resources, emissions, wastewater, and solid waste
Responsibility
Provide a safe and secure environment for employees; promote
employee volunteerism; give back to communities
Innovation
Offer range of film options to meet customer sustainability goals (e.g.,
down gauging; recycled content; renewable content;
low carbon footprint)
Advise on Environmental Aspects
Help customers make informed choices
Create
Sustainable
Value
Reduce
Environmental
Footprint
Enhance
Corporate
Citizenship
Sustainability
Core
Economic
SocialEnvironmental

10. © kp 2017
Global Mega Trends Affect Consumers Everyday Life’s
Globalization &
Society
Development
Digitization & E-
Commerce
Development of
Global Trade
“By 2020 world trade
in goods will total
around US$35t, two
and a half times its
value in 2010.”1
Urbanization
“74% of the
European population
are living in urban
areas.”2Changing Retail
Structure
“leading retailers in
the EU are growing
above average
comparing to other
market players in
this industry.”3
Aging Population
“The number of
people in the world
over the age of 60
grew by 48%
between 2000 and
2015, from 607
million to 900
million.”4
Workforce
Development
“Women make up
40% of the
workforce in more
than 80 countries
globally.”5
Single Households
“17% of the
households
contained one
person in 1971; in
2013 the share was
increased to 29%.”6
Save Food
“1.3 billion tons of food
(~30% of total
production) are wasted
every year.”7
Recycling
“The EU proposed a
target for recycling 75%
of packaging waste by
2030.”8
Bioplastics
“The global bioplastics
(bio-based &
biodegradable)
production
capacity is set to grow
350% by 2019.”9
Localism
“About 1/2 the US
consumers agreed they
were willing to pay up to
10% more for locally
grown or produced
foods, and almost 1/3
said they were willing to
pay up to 25% more.”10
Fresh & Natural
“About 60% of global
consumers are actively
buying food/drink
products with claims for
natural and/or
freshness.”11
Focus on
Environmental
Sustainability
E-Commerce
60% of consumers have
completed a "buy online"
to "pickup in-store"
purchase via mobile.”12
Connectivity of products
“29% of consumers share an
update on an activity/
experience on social media
at least once a week or
more”13
Sharing
“33% of consumers consider
building a social community the
greatest benefit of sharing food
and drink with people they do not
know well.”13

11. Three in five people spend half an hour or less cooking an evening meal
59% of people spend no longer than 30
minutes to get a typical evening meal on
the table.
35% of adults would like to spend 20
minutes or less.
Millennials are more likely to spend less
time cooking.
Highlighting the need for the packaging
industry to continue to develop
convenience-led products.
Consumer Trends – Convenience

12. Mindful Packaging for an ageing population
59% of over 55
year olds think
easy open features
are important
69% of over 55 year
olds think the text on
food packaging is
too small
Source: Mintel – Base: 2,000 internet users aged 16+ | Source: Lightspeed GMI/Mintel
Ageing Population
The number of people in the world over the age of 60 grew by 48% between 2000
and 2015, from 607 million to 900 million.

13. Recyclable packaging
Eagerness for retailers to help more with recycling
Source: Mintel | Base: 2,000 internet users aged 16+ | Source: Lightspeed GMI/Mintel

14. © kp 2017
• Increasing population
• Single households
• Rise of middle class
• Ageing population
• Consumer 24/7 lifestyles
• Food security and safety regulations
• Fresh food increase
• Minimal waste
• Convenience
• Safe food distribution and transportation
• Packaging efficiency
• Distrust of food industry
• Movement of food around
the world
• Safe and fresh food supply
& access
• Resource scarcity
• Material waste
• Climate change & carbon
• Water
• Food waste
• Regulations
Demographic
and Social
Changes
Rapid
Urbanisation
Food Supply
Chains
Technology
Environment
Global
Economy
&
Demographics• Product protection
• Lightweighting
• Recyclability
• Intelligent packaging
• Internet of things
• Consumer appeal
Sustainability Driven by Global Megatrends

15. © kp 2017
Use of recycled
materials?
Recyclable?
Low carbon?
Renewable
materials?
Biodegradable?
Light weight?
Reduces food
waste?
What Makes a Pack “Sustainable”?

16. © kp 2017
General Trend from Stretch Overwrap to MAP Solutions across
Europe and in some cases Skin Tray Solutions

17. • Excellent environmental profile, driving towards a circular economy
• Can be recycled (bottles widely recycled)
• Does not absorb large molecules so easy to clean
• rPET is a food safe choice for food packaging
• Opportunity for high recycled content (95-100% recyclate in trays)
• Low CO2: up to 70% vs. virgin PET.
Emission factors Kg
CO2e/Kg
Virgin PET 3.40
rPET 1.16
Virgin PP 3.90
But other materials are
coming!!
• rHDPE
• rPP
• rPS
Some processes already getting
FDA NOL for those materials
Targeting Recyclability PET/ rPET Material of Choice

18. • Elite® & APET++ ® - fresh, crystal clear presentation
• High barrier pack for extended shelf life
• Peelable versions for an ageing population ease of
opening is seen as a key driver for the future of
packaging
• Manufactured from more than 95% rPET
• 25% lighter weight resulting in up to 10% reduction in
carbon footprint
IMAGINE.
Mono material solutions, Fully Recyclable. We Did.

19. IMAGINE.
Snapable PET Packaging for the Dairy Industry. We Did.
• SNAP A CUP
out of your multipack yogurts
• EXTENDED SHELF LIFE
up to 10 days
• SAFE & SUSTAINABLE
solution – based on PET

20. © kp 2017
Helps AVOID food waste
Provides PORTION control
Can be used for MEAL KITS
and other proteins
IMAGINE.
The Future of Food Waste Reduction. We Did.

21. © kp 2017
IMAGINE.
The Future of Single Serve Packaging. We Did.
• Single hand EASY OPENING
in one snap
• Audible “snap” enhancing PRODUCT
INTEGRITY & FRESHNESS
• Superior product
DISPENSING CONTROL

22. • Vacuum Skin application
• PRECOOKED in a sous vide bath
• Results in a shorter COOKING TIME in under 40 minutes
• Creating a convenient MID WEEK beef or lamb roast
IMAGINE.
Convenient Mid-week Roast Dinners. We Did.

23. © kp 2017
• New
products
• Analyses
• Training
• 3D Printer
• Tests
23
Innovation Workspaces & Workshops
• Creative atmosphere, working spaces, hospitality area & think tanks
• Seats and facilities for costumers (1-3 days workshops)
• Innovation workshops facilitation
High Tec. Lab. & Facilities Machines for testing and sampling
natural
i.center Barcelona: “Consumer Needs” meets “Technology
Provider” for sustainable and differentiating packaging
solutions
• Cooperation with industry machinery leaders
• New products & technology development aligned
• Validation of new films, tools, trays and flexibles
• Sampling of new packaging concepts
…from first Innovation workshop, in our
Inspirations room, the design options…
…towards virtual optimization…
..to real dummies and samples
• Supermarkets and kitchen inspiration room
• Design & Prototyping facilities (new shapes & materials)
Inspiration Room & Design Facilities

24. Thank you – Questions?