SALES (MEUR) EBITDA (MEUR) EBITDA-MARGIN

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1 217 IN BRIEF

2 THIS IS AR PACKAGING WHO WE ARE AR Packaging is one of Europe s leading companies in the packaging sector with a sales of 6 MEUR and 3.2 employees with 18 plants in ten countries. The head office is located in Lund, Sweden. The Group creates added value for customers through a broad product offering and deep knowledge of packaging. The business is divided into three divisions: Barrier Packaging, Branded Products and Food Packaging. All three divisions are characterised by high demands on all of the criteria for good packaging: protecting the content, promoting it and assisting the consumer in using the product. Among the customers are blue chip companies mainly in the food, food service, confectionery and tobacco segments. The Group s products and solutions are mainly carton based and flexible packaging or combinations thereof. The offer includes everything from proprietary machinery systems to packaging design and development. MARKET POSITION The total European market is estimated to be worth 23 billion EUR. In the folding carton market, AR Packaging is positioned as number three in Europe. In flexible packaging, the Group focuses on Northwestern Europe and has a marketleading position in Scandinavia. OUR HISTORY AR Packaging was formed in 211 through the merger of A&R Carton, one of Europe s leading carton board packaging companies, and Flextrus, a market leader in northern Europe in flexible packaging. Both companies share the same origin from 1929 stemming from Akerlund & Rausing. The Group presents stable growth and has in latest years made three major acquisitions. The acquisition of the European operations of Mead- Westvaco Corporation elevated the company to a top three position in carton packaging in Europe. Mediaköket Grafiska AB in Helsingborg, Sweden strengthened the Group s capabilities in digital printing and services. The acquisition of PT Maju Jaya Sarana Grafika in Indonesia was an important step in AR Packaging s strategy to expand beyond Europe in selected segments and niches. SALES (MEUR) EBITDA (MEUR) EBITDA-MARGIN OUR THREE DIVISIONS BRANDED PRODUCTS Innovative packaging solutions for goods found in duty-free stores such as confectionery and tobacco. Being a reliable packaging supplier and having extensive geographical coverage are keys to our success. BARRIER PACKAGING Unique, high-performance packaging system solutions based on proprietary technologies, such as Sealio and Cekacan. A wide range of advanced flexible barrier materials supplied with world-class product customisation, service and lead times. FOOD PACKAGING Food-on-the-go packaging, in which consumer convenience is crucial and campaigns are frequent. High food safety and sustainability standards coupled with best-in-class key account management fulfil the food and consumer goods customers needs.

3 AR PACKAGING GEOGRAPHICAL FOOTPRINT Sales & Production Sales & Business support Kauttua Ingerois Business partners Sarpsborg Halmstad Helsingborg Rotherham Norrköping Tibro Lund St Petersburg Tabasalu Kaunas Moscow Atlanta Highbridge Frankfurt Augsburg Cholet Madrid Barcelona Murcia Graz Salerno Krakow Izmir Timashevsk Mumbai Tashkent Lahore Haridwar Goa Beijing Tokyo Bekasi Semarang EMPLOYEES FACTORIES COUNTRIES DISTRIBUTION OF SALES BY DIVISION BRANDED PRODUCTS BARRIER PACKAGING FOOD PACKAGING THE BENEFITS OF PACKAGING Packaging has three main purposes: to preserve and protect its contents, to attract at point of sale, and to make the use of the product convenient for the consumer. AR Packaging s ambition is to deliver top performance, to minimise material usage, to optimise production and logistics efficiency, and to maximise the opportunity for promotion. Innovation is always important, while food safety and sustainability aspects get increasing focus in the choice of packaging. The Group creates fit-for-purpose solutions in a wide range of consumer market segments. In close partnership with customers and designers, the Group finds the right packaging solution for every requirement. Products offered range from folding carton, trays, cups and flexible materials to high-tech system solutions. MISSION To optimise the benefits of packaging in the customers value chain. OWNERS CVC Capital Partners became the main owner of AR Packaging in 216. CVC is one of the world s leading private equity firms which manages capital on behalf of over 3 institutional, governmental and private investors worldwide. Over the years, CVC has secured commitments of more than US$71 billion in funds from investors. With CVC as owner, AR Packaging has a stable platform for continued expansion and development. BUSINESS STRATEGY AR Packaging s business strategy is based on three elements: To grow in segments and applications where the Group has competitive advantage and focus on profitability in other areas of its business. To adopt a global approach in core segments and aim to expand beyond its core European markets with selected packaging solutions. To further improve the Group s operational excellence and cost-efficiency through increased specialisation and investments in key technologies as well as optimisation of its manufacturing footprint.

4 EBITDA AND EBITA CONTINUED SUSTAINABLE GROWTH AND SOLID PERFORMANCE MEUR NEW MILESTONE REACHED IN 217 WITH SALES ABOVE 6 MEUR AR Packaging increased sales and further improved profitability in 217. The net sales for the whole year ended 6% up at 61 MEUR compared to 568 MEUR previous year. Organically the growth (acquisitions excluded) was 2%. The EBITDA for the whole year was 86 MEUR compared to 77 MEUR in 216 and the EBITDA margin has improved further to 14,2% from 13,6% in 216. This is another top record for the Group EBITDA EBITA STRATEGIC SALES GROWTH The strategic platform for further growth and expansion has during 217 proven successful with good sales growth in the strategic business segments. The prior year s acquisition in Indonesia and the establishment of a sales office in China forms a basis for sales growth in the Asian region while important successes at key customers supports the set strategy in Europe. NET SALES AND EBITDA MARGIN MEUR % 7 15 SUBSTANTIAL INVESTMENTS COUPLED WITH OPTIMISATION OF FOOTPRINT AR Packaging made during 217 cutting edge investments totalling up well above industry average. The overall operational footprint was optimised with the aim to professionally and sustainably meet the customers increasing expectations on high efficiency, broad expertise and strong innovation skills. The investments made cover a span from state-of-the-art equipment for improved efficiencies to expansion of selected plants and thereby enabled strengthened centres of excellence NET SALES EBITDA (%) KEY FIGURES 217 AND 216 CONTINUOUS FEED OF INNOVATIONS The Group puts great effort in developing new packaging solutions and support customers to turn market trends into business growth. Also in 217, AR Packaging won a number of well recognised packaging awards: Sileo, a child-proof pharmaceutical packaging produced by A&R Carton, Finland, continued its award winning path and got a World Star. A number of packaging design awards were received for the luxurious packaging for the electronic cigarette brand My von ERL, the packaging for Sloggi s Men Match and the Peek Box for a new high-tech screw. AR Packaging s strong dedication to packaging innovation was also proven by the launch of two new packaging system solutions, Sealio and Boardio which provide outstanding food safety and optimised environmental benefits respectively. KEUR Net sales EBITDA* EBITDA margin % 14.2% 13.6% Operating profit (EBIT)* Operating margin % 1.6% 1.3% Operating profit (EBIT) Operating margin % 7.4% 6.7% Cash available *Non recurring items excluded. NET SALES BY GEOGRAPHIC MARKET 217 Rest of the world United Kingdom Rest of Europe Russian Federation Sweden Poland France Germany

5 AR Packaging is a family of strong companies with vast experience and unique competencies in each field. We offer attractive packaging to customers looking for a long term partner delivering cutting edge solutions. AR PACKAGING GROUP AB MASKINV. 1 / P.O. BOX LUND, SWEDEN PHONE: + 46 ()