PRO-PAC PACKAGING LIMITED — AGM Information 2010

Nov 22, 2010

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Agenda

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• Formally declare meeting open

• Formal Resolutions

• AGM Presentation

• Questions

• Closure

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The Whole Box and Dice

Formal Resolutions

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1. Consider Financial Report

2. Adoption of Remuneration Report

3. Election of Mr David Herlihy as a Director

4. Election of Mr Elliott Kaplan as a Director

5. Election of Mr Hadrian Morrall as a Director

6. Cancellation of forfeited shares

7. Approval for the provision of financial assistance in accordance with section 260B(2) of the Corporations Act 2001 (Cth) in relation to Creative Packaging Pty Ltd

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The Whole Box and Dice

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CEO Presentation

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Company Profile

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• Leading manufacturer, importer and supplier of packaging solutions and services

• Established 1987

• Listed on ASX April 2005

• Major divisions -

• Rigid Packaging manufacture & distribution

• Industrial Packaging import, manufacture & distribution

• National footprint

• 10,000+ diverse customers

• 300+ staff (including casuals) - 60+ in sales

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The Whole Box and Dice

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The PPG Group

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Employees & Sites

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Permanent Staff (Casuals not included)

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National NSW VIC QLD WA SA

	National	NSW	VIC	QLD	WA	SA	TOTAL
Staff	24	98	86	71	3	4	286
Sites	n/a	7	3	5	1	1	17

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Shareholder Information

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• 750+ Shareholders

• Management own approximately 25% plus equity

• Substantial shareholders*:

Substantial Shareholders	No. of Shares	Percentage
CVC Group	40,899,299	29.9%
Bennamon Pty Limited	20,383,344	17.9%
Mr Brandon Penn	19,561,565	14.8%
Mr Hadrian Morrall	13,064,698	9.7%

*Balance at 22/10/2010

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The Whole Box and Dice

Rigid Packaging

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Manufacturer and distributor of rigid containers & all types of caps & closures

• Bottles

• Caps

• Cubes

• Drums

• Pumps/Triggers/Sprays

• Jars

• Jerry Cans

• Measures

• Pails

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Industrial Packaging

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• Manufacturer of biodegradable Voidfill

• Cartons

• Stretch & shrink film

• Packaging & specialty tapes

• Strapping – steel, poly & PET

• Labels

• Poly Bags

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• Bubble, paper & air pillow

• Disposable hygiene products

• Janitorial products

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• Packaging tools & machinery - full technical service & support

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Customer Base

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Strong and Diverse Customer Base servicing a range of industry segments:

• Automotive

• Oil

• Industrial

• Pharmaceuticals

• Manufacturing

• Food

• Entertainment

• Cosmetics

• Beverage

• Retail

• Transport

• FMCG

• •

• Fast Food Chains Agrichem

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Customer Value Proposition

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• Uniquely positioned total packaging solution and services provider

• The only Australian company able to provide full breadth end-to-end packaging solutions competitively.

From design to..packaging machinery to.. container to.. closure..to inner carton..to protective package..to outer carton..to label..to tape.. to stretch wrap..to strap…The Whole Box and Dice.

• Large national presence

• Strong diverse customer base servicing all industry segments

• Top 3 packaging supplier in 80% of key product lines

• Innovative:

• Design,

• Re-engineering

• New products

• Environmental solutions

• Extremely cost competitive leading distributor with strong buying power

• Industry expertise in vertical markets

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The Whole Box and Dice

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Financial Performance & Analysis

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Results Summary

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	Full Year 2010 $000’s	Full Year 2009 $000’s	% Change
Revenues	90,944	73,873	23%
PBT	7,162	3,080	133%
PAT	5,077	2,263	124%
EBITDA	10,138	5,768	76%
EPS (cents)	4.11	1.90	116%
Total Assets	88,070	73,425	20%
Shareholders’ Equity	57,854	50,694	14%

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2010 Financial Year Review

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• Record revenue and earnings

• Acquisitions:

• Creative Packaging in QLD – 1[st] March 2010

• Ruscon Plastics in VIC – 16[th] June 2010

• Consolidation of Industrial Packaging manufacturing and distribution sites

• in Victoria – June 2010

• Secured new sources of machinery from Europe and Asia to bolster machinery and service division nationally

• Strong organic growth with new major account wins

• Divisionalised strapping and cartons as core lines for future growth

• Rotational replacement and upgrading of manufacturing capital equipment.

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Subsequent to Financial Year End

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• Acquisition of Goodman Packaging with operations in WA & NSW – 1[st] July 2010

• Consolidation of Industrial Packaging distribution businesses in NSW

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Wetherill Park NSW

Dandenong South VIC

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Revenue Growth - $000’s

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150,000
112,000
100,000 90,944
71,723 73,873
50,000 24,063 26,074
0
000's
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PAT Growth - $000’s

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6,000
5,000 5,077
4,000
3,000
2,263
2,000 1,062 1,226 1,808
1,000
0
2006
2007
2008
2009
2010
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Balance Sheet

	Consolidated 2010 $000’s	Consolidated 2009 $000’s
Cash and cash equivalents	2,071	2,175
Trade and other receivables	15,301	12,547
Inventories	11,074	7,622
Prepayments	1,095	766
Total current assets	29,541	23,110
Property, plant and equipment	11,930	9,846
Intangible assets	44,477	38,195
Deferred tax assets	805	635
Prepayments	1,317	1,639
Total non-current assets	58,529	50,315
TOTAL ASSETS	88,070	73,425
Trade and other payables	11,717	9,933
Borrowings	1,503	1,568
Employee entitlements	1,837	1,547
Current tax liabilities	1,536	315
Total current liabilities	16,593	13,363
Employee entitlements	437	404
Borrowings	13,186	8,964
Total non-current liabilities	13,623	9,368
TOTAL LIABILITIES	30,216	22,731
NET ASSETS / SHAREHOLDERS EQUITY	57,854	50,694

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The Whole Box and Dice

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3. Outlook

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Sustainable Business Model

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Low Risk Business Model

• 10,000+ customers

• Supply almost every industry segment

• Ongoing repeatable business

• End to end solutions with full range of packaging products

• Uniquely placed to provide environmental solutions

• Established national footprint

• Highly cost competitive through strong local and international

• procurement and relationships

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Future

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• Continued consolidation of sites and operations

• Continued integration of acquisitions

• Aggressive organic growth

• Target national customers

• Diversify product supply into existing customers

• Cross-selling opportunities

• Innovative and new product introduction

• Supply chain logistics improvements

• Take advantage of industry consolidation

• Pipeline of value accretive and synergistic acquisitions

• Expansion of WA & SA divisions

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4. Summary

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Summary

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• Continuing site and operations consolidations nationally

• Short term cost implications

• Providing platforms and infrastructure for continued future growth

• First half sales growth of at least 20% predominantly due to acquisitions

• First half profit expected to be slightly ahead of previous corresponding period

• Strong dedicated senior management team with significant equity interest

• Solid and conservatively geared balance sheet

• Strong organic growth prospects

• Large motivated National Sales Team with product expertise

• Cross-selling opportunities

• Product innovation

• Distribution sector remains highly fragmented

• Current pipeline of synergistic acquisitions

• Sustainable business model

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Questions

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Disclaimer

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Some of the statements in this presentation constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. These forward-looking statements reflect Pro-Pac Packaging Limited’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Pro-Pac Packaging Limited’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include know and unknown risks. Because actual results could differ materially from Pro-Pac Packaging Limited’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this presentation with caution.

This management presentation may not be copied or otherwise reproduced.

Pro-Pac Packaging Limited

9 Widemere Road, Wetherill Park NSW 2164

T: (02) 8787 1900 F: (02) 8787 1989 www.ppgaust.com.au

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