13 November 2017

ADDED VALUE OPPORTUNITIES

IN NON-PACKAGING MARKETS

RPC – THE ESSENTIAL INGREDIENT

© 2017 RPC Group Plc. All Rights Reserved.

2

Introduction: Non-packaging

Jack Yeung

Ace: Asian precision engineering platform and moulds

Jack Yeung

ESE: Temporary waste storage solutions

Björn Hedenström

Agenda

3

Introduction: Non-packaging

Jack Yeung

4

Introduction: Non-packaging

£67 £120 £92 £109 £173 £53

Non-packaging markets

17% of RPC Sales*2016/17

MouldsRoto

mouldingSpecialityvehicles

Asian precision engineering platform

Temporary waste storage solutions

Flexible non-packaging

products

Extracting value from core competencies:

Drawing from similar design and engineering capabilities as packaging

Focus on niche products and markets where good returns can be made from higher added value products

In-house mould making enables control in delivering technically challenging customer projects

Offers highly skilled platform to enter niche packaging markets in new regions (e.g. Ace)

Enhances Group’s overall strategic buying position

*Pro forma to include a full year of acquisitions

RPC Sales

2016/17* (£m)

Casestudy

Casestudy

Casestudy

5

Ace: Asian precision engineering platform and moulds

Jack Yeung

7

World-class injection moulder and mould maker

BEST-IN-CLASS MANUFACTURING FACILITIES WITH

INDUSTRY LEADING ENGINEERING CAPABILITIES

Provider of high added value solutions for niche segments:

Specialists in high added value plastic injection moulded components and mould making

Selective focus on niche segments where value creating opportunities exist

Few local suppliers able to offer complex moulding and intricate multi-part assembly to meet demanding European and North American standards

Highly skilled workforce: numerous international and domestic awards

Growing business: added new operations through acquisition and greenfield

73%

Precisionengineering

Moulds

Revenues:

Original

Acquired

Greenfield

Head office

Ace locations:

Hefei

Shanghai

Zhuhai

Hong Kong

Shenzhen

27%

8

PowerMedical Lifestyle Automotive Packaging

Introduction: Asian precision engineering platform

Precision engineering solution for complex mouldings

Domestic and international recognition

Multi-material moulding; up to three materials into same mould for advanced solutions

High decoration possibilities through electroplating and paint-over-chrome technologies

High quality platform to engage RPC’s international customers in selected niches

Principal markets

RECOGNISED SOLUTION PROVIDER SUPPORTING GROWTH IN

HIGHER ADDED VALUE OPPORTUNITIES IN ASIA AND WORLDWIDE

Workforce:

31 yearsAverage age

c.30%Engineers& technicians

9

Precision engineering: Premium decoration capabilities

Combining technologies to provide a premium finish

Applies a premium metalised finish onto complex and intricate plastic components

Through combining painting and plating processing, RPC has developed “paint-over-chrome” technology

Significantly improves paint adhesion to chrome resulting in a durable yet high gloss finish; meets demanding standards of leading automotive brands

Offers lightweight and flexibility benefits of plastic with a premium decorative finish

Suitable for automotive and lifestyle applications

COST EFFECTIVE METHOD FOR PREMIUM DECORATION WITH INFINITE COLOURS;

SUPPORTS THE GROWING TREND FOR HIGH CUSTOMISATION

10

Precision engineering: Improved performance and cost reduction

Plastic overmoulding: Integrating plastics with electronics

Process in which thermoplastics are moulded over another material to form one single plastic encapsulated finished product

Enables application of smart plastics through incorporation of printed circuit boards, LEDs, magnets and sensors

Suitable for wide range of aesthetic and functional applications; consumer electronics, medical devices and automotive products

Advantages:

Efficient manufacturing; removes secondary assembly operations

Overmoulding improves performance:

• Resistance to vibration, shock and water

• Longer component life due to superior protection

• Eliminating bonded materials removes weaknesses and improves reliability

• Enhanced design flexibility

COST EFFICIENT APPROACH TO COMPLEX PROCESSING

FOR ADDED VALUE SOLUTIONS

11

Precision engineering: In-mould labelling for smart plastics

Premium application for the future of smart plastics

Traditionally used for packaging applications, RPC has developed IML technology to apply smart plastics to applications requiring touch sensor design

Combines a decorative foil in black high-gloss optic with a functional foil in a sandwich construction

Incorporates capacitive sensors due to ‘multi-touch’ capability that can recognise more than one point of contact

Time and cost saving; alleviates complex circuit assembly

Applications include consumer electronics requiring touch activation, touchscreen control or biometric recognition software

DEVELOPMENT OF PROCESSING CAPABILITIES TARGETING

POTENTIAL HIGH GROWTH ADDED VALUE NICHES

Touch sensor with printed circuitry

Front panel

12

Precision engineering: Innovations utilising nanofibers

Nanofibers: Next generation plastics

Process of melting and reorganizing polymer compounds into nanofiber membranes utilising electrospinning technology

Nanofiber structures yield wide ranging benefits; flexibility, conductivity, water repellent, antibacterial, high porosity, high absorbency

Versatile technology suitable for a variety of applications:

• Germ repellent plastic materials; packaging, lifestyle, healthcare

• Nanofibrous barriers with advanced filtration; environmental treatments, wound dressings

• Superior conductivity and charge bearing; computing, communications, power sources

Typical

Common nanofiber structure

Cross-linked

Core-shell AlignedHollow

Structures developed by NAMI tech

Future application: Flexible batteries

RPC are currently partnering with Nano and Advanced Materials Institute(NAMI) on 2nd generation flexible batteries:

• Safe, powerful and rechargeable lithium ion battery based on nanofiber electrolytes

• 10-20% faster charging time, 20x longer life cycle than existing lithium batteries

• Maintains high and stable voltage through full flexing and even when punctured

• Applications: Wearable electronics (IoT), consumer electronics, medical devices

13

Relevance of mould making:

Steel tools for moulding rigid plastic components, both packaging and non-packaging

Critical to delivering to strict product specifications

Enables competitive time-to-market

Complex engineering skills required

Keeps know-how internal to RPC in cutting-edge applications

Introduction: Moulds

RPC’S SIGNIFICANT MOULD MAKING CAPABILITY UNDERPINS OUR ABILITY TO COMPETE

12 Mould making locations

6

Supplier awardsfrom international

customers

3

Mould makerof the year

awards

6

Mould designawards

North America Europe Asia

14

Moulds: Enhancing our speed to market

Best-in-class speed to market

Developed modular mould frame which facilitates standardisation of high use, time intensive components

Quick changeover between shapes and sizes enabled

Collaboration with wider RPC Group to offer full solutions utilising the most appropriate processing technology

Enhances RPC’s position as a partner for design and innovation

Unrivalled speed to market from concept to commercialisation

Production time

BEST-IN-CLASS ENGINEERING CAPABILITIES SUPPORTING THE

INCREASING CUSTOMER NEED FOR SPEED TO MARKET

Project LMNQ Project Crystal Project Cinderella

Ace extrusionblow moulded

Ace injection stretch blow moulded

Industry average 8 weeks

2 weeks

3 weeks

Prototype moulds

3 months 6 months 11 months

Design to commercialisation…

(bottle) (bottle)(complete pack,full range 1,2,3,4 & 5L)

15

Moulds: Advancing our processing capabilities through innovation

Engineering innovation: Irregular cooling channels

Cooling channels critical in processing molten plastic into finished components

Standard channel formation limited by traditional machining and drilling

3D printing and diffusion bonding technologies facilitate irregular cooling channels

RPC developed innovative channel design provides significantly improved surface coverage, thereby improving efficiencies

Advantages:

Reduce wastage due to less part deformation through more even heat transfer and reduced scope for shrinkage

Quicker cooling facilitating faster cycle times

More effective cooling; more efficient use of resources

Potential to improve processing of all rigid applications across the RPC Group

INNOVATION TO ENHANCE MOULD DESIGN LEVERAGING RPC’S LEADING

ENGINEERING CAPABILITIES

16

ESE: Temporary waste storage solutions

Björn Hedenström

17

ESE World (acquired January 2017)

A leading solution provider

Europe’s leading “pure play” provider of temporary waste storage solutions

Over 80 years experience in leading the industry through innovationwith >240 active patent and model protections

Broad geographic coverage served by best-in-class production capabilities

Specialist in development of innovative products and solutions with industry leading sustainability profile

Balanced and diversified customer base, long standing relationships with municipalities, key private waste management companies and industrial customers

Active in markets with visible and sustainable growth profile

LEADING DESIGN AND ENGINEERING COMPANY

IN TEMPORARY WASTE STORAGE SOLUTIONS

Mobile container production site

R&D centre & assembly for steel products

Markets with own sales offices

18

17% of sales 9% of sales74% of sales

Leading product range; added value solutions and services

c.£175m 2016 sales

2 and 4 wheel containers

Plastic mobile containers for temporary storage of general waste and recyclables

Broadest product range on the market

Strong market positions in all key European geographies with exports worldwide:

• Best placed to serve global waste management players based on ESE’s product range and credentials

Services

Internally developed range of complementary services

Includes data management, maintenance and fleet management

Important part of ESE’s customer offering:

• Complementary services differentiate ESE, particularly on large contracts

• Strengthens ongoing relationships and gives visibility over future opportunities

Other

Includes bring systems (underground and semi-underground), litter bins and hazardous waste systems

Range of ancillary products that strengthen the total solution and service offering:

• Numerous IOT based solutions to provide live consumer data

Product evolution

Highermargin

19

Supplementary market• Replacement need

• Population growth

• Upgrade of system

Following roll out(s)• Enhanced recycling targets

• Legislation

• Added features or full scale replacements

Supplementary market• Replacement need

• Population growth

• Upgrade of system

• Introduce new systems

High end solutions• Superior recycling targets

• Focus on aesthetics

• High-end client information systems

First roll out• European and national

directives and legislations

• Recycling targets

• System change (bag to container)

Attractive markets with visible and sustainable growth profiles

France/ Benelux Scandinavia

Poland

Emerging Markets

14% 19% 31% 27%

Germany

5%

Customer evolution

Highermargin

Market drivers and ESE sales by destination

General drivers

Growing populations in key markets

Increased waste generation

Enhanced recycling targets

Growing replacement needs

Available subsidies and funding

Market demands

Flexibility; high volume capabilities with small volume, local distribution network

Customers expect suppliers to drive innovation in products and services

Intelligence of regulatory requirements and competence in advisory support

Increased speed to market

ESE’s position

Proven track-record to manage large scale and demanding projects

National distribution hubs to service small volume/high speed demand

Local expertise in combination with central R&D to develop best practice solutions

Leading range of “high-end” solutions and services

UK

4%

21

Highly innovative company – strong overlap with RPC

A leading industry innovator with an established growth platform

Strong track record of innovation; well placed for future growth through continued investment in R&D

Attractive market positions with portfolio of entry points and added value solutions

Visible growth trajectory linked to long-term European led regulations and directives

Significant consumer of polymer; enhances overall procurement position

Attractive overlaps suitable for best practice sharing:

• Combining production technologies to develop superior products

• Manufacture products with industry leading recyclate content – opportunities in processing and supply

• Lightweighting opportunities

• Offering a closed loop for RPC’s packaging customers

Complementary to RPC’s material handling business and leading sustainability credentials

201620132012200319821976

ESE plastic waste

containers become the first

worldwide to be awarded

Blue Angel ecolabel

Launch of split lid –

ergonomic solution

Launch of 2-wheel CL line,

offering strong sustainability

credentials – first thin-

walled container with

optimum performance

Launch of Bagio semi-

underground systems,

targeting high volume waste

collection

The DIN comb, a patented

2 wheel container becomes

the world standard

First multi-compartment

Quattro system is delivered

– changing the whole

waste collection system

First injection-moulded 4

wheel container produced,

with the world’s largest

machine

22

Revolutionary ergonomic multi chamber waste container

• Superior function of system through use of blow moulding technology for the separating wall

• Developed in collaboration with RPC’s BM expertise

• Supports increasing trend for waste segregation at point of consumption

Opportunities going forward

Strategy:

Continue to innovate and develop market leading solutions using combined ESE and RPC competences

Continue to capitalise on strong underlying growth trends in the market

Leverage service relationships with large stakeholders to collaborate on future projects

Collaborations with wider RPC Group:

• Access to complementary products and technologies

• Design and mould making competences to increase speed to market

• Access to enlarged manufacturing footprint and wider geographic coverage

ATTRACTIVE, VISIBLE GROWTH OPPORTUNITIES; INDUSTRY LEADING PRODUCTS

AND TECHNICAL CAPABILITIES NOW SUPPORTED BY A WIDER GROUP

Examples of RPC collaborations to date:

Best-in-class rotational moulded semi underground waste collection system (600l to 5,000l)

• Unique design and construction, developed in co-operation with RPC

• Integrated full electronic volume measurement and access control features

• Utilises state of the art rotational moulding technology

QUESTIONS?

RPC – THE ESSENTIAL INGREDIENT

© 2017 RPC Group Plc. All Rights Reserved.