PRO-PAC PACKAGING LIMITED — Capital/Financing Update 2013

Jun 6, 2013

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Pro-Pac Packaging Limited ACN 112 971 874

7 June 2013

Market Update

ASX listed packaging group, Pro-Pac Packaging Ltd, today provided a market update on its anticipated 2013 financial year trading performance, new acquisitions and outlook.

Trading Update

Subject to audit and any audit adjustments, EBITDA for the 2013 financial year is anticipated to be in the range of $10.7 million to $11 million and PAT to be circa $5 million. These anticipated results are after accounting for nonrecurring relocation, restructuring and business combination costs of approximately $1.4 million. Revenue for the 2013 financial year is anticipated to be circa $170 million. The financial performance has been impacted by very difficult trading conditions over the past three months and by the higher costs associated with the significantly increased infrastructure that was put in place over the past year to cope with future anticipated growth.

Acquisitions

The Company has today completed the purchase of the business and assets of Poly Product Co Pty Ltd (PPC) and the business and assets of Australian Flexographic Printers Pty Ltd (AFP).

PPC is an iconic 50-year-old Adelaide-based flexible extruder, printer and converter while Sydney-based AFP is in the business of printing and laminating flexible films. AFP will be relocated to Adelaide and merged with PPC creating a synergistic combined business with current annualised revenues of approximately $16 million. This business will be earnings accretive in the 2014 financial year and the acquisitions will be funded from existing cash and bank facilities.

Commenting on the acquisitions, Pro-Pac’s CEO, Brandon Penn, said 'the purchase of these businesses provides ProPac with more food focused product coverage in line with our strategy of further expanding into the Australian food packaging market.’

Outlook

While difficult trading conditions are anticipated to prevail for some months, the Company has a good pipeline of new business opportunities. The Company has also embarked on a number of cost out exercises and is implementing other cost reduction strategies. Continued growth in sales and an improved financial performance is forecast for the 2014 financial year.

For further information please contact Mr Brandon Penn, CEO, on Tel 02 8781 0500

About PPG

Pro-Pac Packaging Limited is a diversified manufacturing and distribution company, providing innovative, flexible and rigid packaging solutions for a broad group of customers. PPG is headquartered in Sydney with operations in Adelaide, Brisbane, Melbourne and Perth. PPG’s securities are listed and quoted on the ASX.

For further information on PPG visit www.ppgaust.com.au

Pro-Pac Packaging Limited ACN 112 971 874 147 -151 Newton Road, Wetherill Park NSW 2164 Tel: 02 8781 0500 Fax: 02 8781 0599 www.ppgaust.com.au