AN INTRODUCTION TO ECOLEAN

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1 AN INTRODUCTION TO ECOLEAN 2017 Ecolean s approach to packaging is light - to the benefit of both consumers and the environment. We are a global producer of lightweight packaging solutions for liquid food, for chilled and ambient distribution. We aim to reduce our impact on the environment with convenient, innovative and eye-catching packages, by using less resources from the start. Ecolean s innovative and lighter packaging solutions is the answer to the demands of the global liquid food industry and modern consumers asking for smart and safe packages. The unique shape and concept of our stand-up pouches makes it easier for our customers to be innovative in differentiating their brands, helping dairy and beverage producers in markets all over the world to increase visibility and stand out on store shelves. By using a minimal amount of raw material Ecolean produce a truly lightweight package and thus reduce the environmental impact. Its weight alone saves resources. Ecolean s packaging solutions also let producers and consumers make a statement in the challenge to make small changes in everyone s day-to-day actions. Letting us all tread a little bit more lightly and save on Earth s limited resources.

2 A brief history Ecolean was founded in 1996 in Helsingborg, Sweden. Innovation has always been fundamental for Ecolean. The concept of using a minimal amount of raw material to produce a unique flexible lightweight package and a filling system has been established by people with great knowledge and long experience within the global packaging industry. Today Ecolean is a fast growing and globally expanding company that continuously develops its products in order to meet new customer and consumer demands Ecolean is established in Helsingborg, Sweden Opening of top modern production facilities in Helsingborg, Sweden The Ecolean Base package is launched Ecolean opens a market company in Dubna, Russia and in Beijing, China Opening of a material production factory in Tianjin (TEDA), China The Ecolean Air package is launched Ecolean launch the aseptic packaging system for family sized packages In order to meet customers needs Ecolean launch the aseptic portion packaging platform The new feature SnapQuick is launched. SnapQuick is an easy-to-use reclosing device that is integrated with package Ecolean enters the Pakistan market and opens a market office in Lahore Ecolean launches the new innovation Ecolean Air Aseptic Clear a transparent, aseptic package Ecolean experience continued growth in the Asian markets. In order to meet customer demand, Ecolean adds new facilities in China that will increase Ecolean s production capacity of aseptic packaging material Ecolean opens a US market office for expansion in North and South America Ecolean opens a market office in Kuala Lumpur in Malaysia for expansion in the region Ecolean opens a market office in Tokyo, Japan as part of the continued geographical expansion Launch of EL4+, a faster aseptic filling machine producing 12,000 portion packages per hour Ecolean opens new production facilities in Helsingborg, Sweden Launch of a new smaller package size for the aseptic platform, 125 ml Ecolean opens a market office in Jakarta, Indonesia Ecolean opens a market office in Bangkok, Thailand, Seoul, South Korea and Sydney, Australia to further increase the expansion in Asia and Oceania Launch of EL2+, a faster filling machine for chilled distribution with 100% increase in capacity - 12,000 portion packages per hour. EL2+ filling machine for portion-sized packages for chilled distrubtion.

3 A quick guide to a lighter approach to packaging We believe in a lighter world. In everything we do. That goes for the manufacturing of innovative packaging systems for the dairy and liquid food industry packaging material, packaging, and filling machines for both ambient and chilled distribution but also in the way we conduct our business. By using a minimal amount of raw material we create a lightweight package with a low environmental impact. And by keeping an open mind towards everyone we meet, we strive to make our business relations as light as possible. Low weight equals low environmental impact An Ecolean package weighs only 14 grams, which is forty to fifty percent of a conventional liquid food carton or bottle. The trend is clear and apparent all around the world. Producers, consumers, retailers and governments all strive for more sustainable products. Reducing the amount of packaging material used, transported and disposed creates great gains in the whole product life cycle. Independent studies have shown the Ecolean package to be effective throughout the package s whole lifecycle, from the manufacturing to the waste end. Brand owners using lightweight packaging are not only reporting cost savings but also improved environmental profile, brand image and company reputation among other benefits. A global company based in Sweden We pride ourselves in being an global company. Our headquarters, manufacturing and development is in Sweden but we also have manufacturing in China and commercial activities in thirty countries. And we employ 320 people from different countries, making us a multicultural company as well. Currently, our largest markets are China, Russia, Europe and Pakistan. Customers in a wider perspective The typical Ecolean customer is a liquid food company in dairy or other types of beverages- that is a leader in their respective market(s). Many of our customers also pride themselves in being innovators and are driven by deep consumer insights. However, we see our customers in a wider perspective. Retail chains and consumers are just as important as producers. To continuously monitor and understand their needs and demands are vital to our continued innovation and production process. A package simply must function from production, filling and distribution to the kitchen table. Developed to save more Another obvious advantage is the fact that an empty Ecolean package is totally empty. When viscous products like yoghurt are sold in conventional one litre packages, as much as one decilitre stays in the package and is thrown away for no reason. Once empty, the Ecolean package is flat as an envelope, saving space in the trash bin, which naturally has a positive effect on the whole waste handling process.

4 Smart and attractive packaging solutions Smart thinking and engineering have resulted in an innovative and flexible stand up-package shaped like a pitcher. The air-filled handle is an important detail in the clever design. It adds stability to the package as well as being convenient to hold when pouring. The packaging material consists of forty percent chalk, so one could argue that half the package is actually made from chalk and air. The unique Ecolean package suits various purposes in sizes from portion packs to family size packages. The package also has a perfect surface for high-quality print, which together with a generous face display and the customers packaging design, attracts the attention of modern fast-moving consumers. The jug shaped flexible package has an air-filled handle which makes it easy to grip and pour from. Unique products for a global market Ecolean s packaging material consists of part plastic part calcium carbonate (chalk), up to 35% by weight. The calcium carbonate provides strength and stiffness to the package. The Aseptic package The material of each package is a multi-layer structure that protects the content. The Ecolean packages are hermetically sealed and sterilised using electron beam treatment at the Ecolean manufacturing plant, bringing the complexity from the customer back to Ecolean. The readyto-fill packages are distributed on reels. After disposal the package can either be material recycled as plastics or recovered as energy by incineration. Ecolean Air For chilled distribution in sizes 200ml ml. Ecolean Air Aseptic For ambient distribution in sizes 125ml ml.

5 Staying true to innovation Reclosing made easy. SnapQuick takes easy reclosing to the next level. It is a convenient reclosing device, easy enough for everyone to use. Unlike many other reclosing devices, SnapQuick is lightweight and part of the package. You just fold and snap. Clearly different. Ecolean Air Aseptic Clear packages holds a unique position as it is totally transparent. There is no similar cold fill aseptic package solution on the market. Suitable for all kind of still drinks, juices or ice tea. Thanks to the combination of transparency and great printability, it gives our customers an option to decide how much to show of the product. Ecolean Air Aseptic Clear is lightweight and has a low environmental impact. Once it is emptied it becomes flat as an envelope, which means less waste volume. Our customers agree Alquería Dairy is known for driving innovation, and the new Ecolean Snap- Quick packaging format fits perfectly in our product portfolio. We couldn t be happier with the introduction; the package has been well received as it suits our consumers and makes it more practical and fun to consume milk, Carlos Enrique Cavelier Lonzano, CEO at the dairy company Alqueria S.A in Bogota, Colombia. We have been able to double our sales since the time we have launched Ecolean. In terms of sales and consumer perception for the brand, the launch has been very successful and I think that this is something we can build on further. Syed Waqas Azhar, GM Marketing Dairy (Liquid & Powder) - Brand Activation at the dairy company Engro Foods Limited, Pakistan.

6 Innovation and simplicity are the key words The heart of the Ecolean packaging system is the filling machine, designed for efficient operations. When installing, setting up, operating and maintaining it, simplicity rules. Ecolean currently has four different filling machines, the EL1 and EL2/EL2+ filling packages for chilled distribution and EL3 and EL4/EL4+ for aseptic filling. The EL4+ is an updated version of the EL4 machine and was launched in March 2015 The EL2+ is an upgrade from where capacity increased by 100% while mainatining the same footprint - enabling customers to produce more using less.. FULL RANGE OF MACHINES EL1 for chilled distribution Automatic with double filling stations for filling liquid food products into Ecolean Air packages. Package sizes: 500ml, 1000ml and 1500ml. Capacity: Up to 2,900 packages/hour. EL2+ for chilled distribution Automatic with five filling stations for filling liquid food products into Ecolean Air packages. Package sizes: 200ml, 250ml and 450ml. Capacity: Up to 12,000 packages/hour. EL3 for ambient distribution Designed for aseptic filling of high and low-acid food products into Ecolean Air Aseptic packages. Package sizes: 500ml, 750ml and 1000ml. Capacity: Up to 6,000 packages/hour. EL4+ for ambient distribution Designed for aseptic filling of high and low-acid food products into Ecolean Air Aseptic packages. Package sizes: 125ml, 200ml, 250ml and 350ml. Capacity: Up to 12,000 packages/hour.

7 Quick facts Company name Ecolean AB Founded 1996 CEO Mr. Peter L Nilsson Board of directors Mr. Arne Karlsson, chairman Mr. Leif Johansson, board member Mr. Patrik Andersson, board member Mr. Hans Porat, board member Mrs. Lisbet Rausing, board member Mr. Peter L Nilsson, CEO Principal owner The family of Dr. Hans Rausing Number of employees 320 Commercial activities 30 countries around the world Biggest markets are China, Pakistan, Europe and Russia Headquarter and production facilities Helsingborg, Sweden - Head office and production facility. Tianjin, China - Production facility. Sales offices Beijing, China Dallas, USA Dubna, Russia Lahore, Pakistan Kuala Lumpur, Malaysia Tokyo, Japan Jakarta, Indonesia Bangkok, Thailand Seoul, South Korea Sydney, Australia Products - packages Package types: Ecolean Air (chilled distribution), Ecolean Air Aseptic (ambient distribution), Ecolean Air Aseptic Clear (ambient distribution), Ecolean Base (chilled distribution) Products - machine Machine types: EL1 for family-sized packages (chilled distribution), EL2/EL2+ for portion-sized packages (chilled distribution), EL3 for family-sized packages (ambient distribution), EL4/EL4+ for portion-sized packages (for ambient distribution) For further information, please contact: Anna Annerås, Marketing Director, Ecolean anna.anneras@ecolean.se Ecolean develops and manufactures innovative packaging systems for the dairy and liquid food industry. Ecolean s modern lightweight packaging is consumer convenience and environmental concern in one. Ecolean is a global company with headquarters in Sweden. Founded in 1996, it has commercial activities in more than 30 countries, China, Pakistan and Russia being the largest markets. Ecolean has over 300 employees.