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PRO-PAC PACKAGING LIMITED Investor Presentation 2011

Nov 3, 2011

65602_rns_2011-11-03_6d81132d-4b87-4dd3-ad4b-3d5de8829c53.pdf

Investor Presentation

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Pro-Pac Packaging Ltd

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October 2011 Pro-Pac Investor Presentation

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Agenda
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Agenda

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Pro-Pac Company Overview Risk Profile Growth Opportunities Historical Financial Performance First Quarter Results Bennamon Contribution Current Shareholding Annexure A – About Pro-Pac

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Pro-Pac Company Overview
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Pro-Pac Company Overview

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Highly diversified packaging and related products Unique business model of broad business silos with in-depth expertise Strong value proposition with end-to-end supply Well positioned national distribution presence Very competitive with well-established procurement

 International

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  • In house local manufacture

10,000+ diverse customers 300+ staff with over 70 in sales

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Risk Profile
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Risk Profile

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Low risk business model with extremely high growth potential Recurring revenue streams Essential products Diverse “blue chip” customer base Service most industry segments Critical mass and infrastructure attained

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Strong balance sheet Strong cash flow generating businesses Conservatively geared

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Growth Opportunities
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Growth Opportunities

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Highly fragmented market Large horizontal breadth of product areas to pursue Difficult economy equates to increased realistic sellers Strong pipeline of potential acquisitions

  • Anticipate completion of 4 smaller acquisitions by December 2011

  • 4 Prospects > $50M

  • 5 Prospects between $10M - $50M

  • 11 Prospects < $10M

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Historical Financial Performance
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Sales Growth

Total Sales EBITDA Normalised

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140 14,000
120 12,000
100 10,000
80 8,000
60 6,000
40 4,000
20 2,000
0 0
Jan-09 Jan-10 Jan-11 Jan-12 2007 2008 2009 2010 2011 2012
Forecast Forecast
Group
$ M
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Historical Financial Performance
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Financial Performance

Industrial
Rigid
Total
Sales
Non-Executive
Growth Mode
Turn-
around
Jun 07
Jun-08
Jun-
09
Jun-10
Jun-11
Jun-12
$ m
$ m
$ m
$ m
$ m
$ m
Start up date
YTD
YTD
YTD
YTD
YTD
Forecast
1987
26.0
44.0
27.0
44.5
30.5
43.5
46.5
44.5
65.5
48.0
1989
70
72
74
91
114
125
Non-Executive
Growth Mode
Turn-
around
Jun 07
Jun-08
Jun-
09
Jun-10
Jun-11
Jun-12
$ m
$ m
$ m
$ m
$ m
$ m
Start up date
YTD
YTD
YTD
YTD
YTD
Forecast
1987
26.0
44.0
27.0
44.5
30.5
43.5
46.5
44.5
65.5
48.0
1989
70
72
74
91
114
125
Non-Executive
Growth Mode
Turn-
around
Jun 07
Jun-08
Jun-
09
Jun-10
Jun-11
Jun-12
$ m
$ m
$ m
$ m
$ m
$ m
Start up date
YTD
YTD
YTD
YTD
YTD
Forecast
1987
26.0
44.0
27.0
44.5
30.5
43.5
46.5
44.5
65.5
48.0
1989
70
72
74
91
114
125
Non-Executive
Growth Mode
Turn-
around
Jun 07
Jun-08
Jun-
09
Jun-10
Jun-11
Jun-12
$ m
$ m
$ m
$ m
$ m
$ m
Start up date
YTD
YTD
YTD
YTD
YTD
Forecast
1987
26.0
44.0
27.0
44.5
30.5
43.5
46.5
44.5
65.5
48.0
1989
70
72
74
91
114
125
Non-Executive
Growth Mode
Turn-
around
Jun 07
Jun-08
Jun-
09
Jun-10
Jun-11
Jun-12
$ m
$ m
$ m
$ m
$ m
$ m
Start up date
YTD
YTD
YTD
YTD
YTD
Forecast
1987
26.0
44.0
27.0
44.5
30.5
43.5
46.5
44.5
65.5
48.0
1989
70
72
74
91
114
125
Non-Executive
Growth Mode
Turn-
around
Jun 07
Jun-08
Jun-
09
Jun-10
Jun-11
Jun-12
$ m
$ m
$ m
$ m
$ m
$ m
Start up date
YTD
YTD
YTD
YTD
YTD
Forecast
1987
26.0
44.0
27.0
44.5
30.5
43.5
46.5
44.5
65.5
48.0
1989
70
72
74
91
114
125
Non-Executive
Growth Mode
Turn-
around
Jun 07
Jun-08
Jun-
09
Jun-10
Jun-11
Jun-12
$ m
$ m
$ m
$ m
$ m
$ m
Start up date
YTD
YTD
YTD
YTD
YTD
Forecast
1987
26.0
44.0
27.0
44.5
30.5
43.5
46.5
44.5
65.5
48.0
1989
70
72
74
91
114
125
Non-Executive
Growth Mode
Turn-
around
Jun 07
Jun-08
Jun-
09
Jun-10
Jun-11
Jun-12
$ m
$ m
$ m
$ m
$ m
$ m
Start up date
YTD
YTD
YTD
YTD
YTD
Forecast
1987
26.0
44.0
27.0
44.5
30.5
43.5
46.5
44.5
65.5
48.0
1989
70
72
74
91
114
125
FY
08 v 07
FY
09 v 08
FY
10 v 09
FY
11 v 10
FY
12 v 11
FY
08 v 07
FY
09 v 08
FY
10 v 09
FY
11 v 10
FY
12 v 11
FY
08 v 07
FY
09 v 08
FY
10 v 09
FY
11 v 10
FY
12 v 11
FY
08 v 07
FY
09 v 08
FY
10 v 09
FY
11 v 10
FY
12 v 11
FY
08 v 07
FY
09 v 08
FY
10 v 09
FY
11 v 10
FY
12 v 11
%
%
%
%
%
1987 26.0
44.0
27.0
44.5
30.5
43.5
46.5
44.5
65.5
48.0
4%
1%
52%
23%
52%
23%
41%
25%
1989
70 72 74 91 114 125 3% 3% 23% 25% 10%
Non-Executive Turn-
around
Growth Mode

Note: FY 2012 Forecast does not include acquisitions.

Industrial Division Growth 3 Years to June 11
Organic Growth
Acquisitions
Total Growth
48%
95%
143%

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First Quarter Results
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FY Q1 2012 vs. FY Q1 2011

PRO-PAC GROUP
TOTAL SALES
PROFIT BEFORE TAX
PROFIT BEFORE TAX %
EBITDA
EBITDA %
PPG
ACTUAL LAST YR % CHANGE
31,425,604 28,595,731 9%
2,521,113 1,921,792 24%
8.02% 6.72%
3,530,618 2,801,260 21%
11.23% 9.80%

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Indicative FY2012 Guidance
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Accelerate Growth

Acquisitive Continue roll up synergistic & strategic companies
Seek company transforming acquisitions
Cross-Selling Cross selling products in expanding customer base
Increase wallet share of existing customers
Organic Continue aggressive sales
Innovation and new products to market

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Bennamon Contribution
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Bennamon Contribution

Bennamon fully supports PPG to become the largest packaging distributor in ANZ Provides PPG with:

 Access to a significantly larger customer base to cross sell into

  • Access to overseas expansion

  • Product sourcing and innovation opportunities via extensive global contacts and

relationships

Enhanced trading opportunities with Bennamon / Geminder Holdings various related investments

Improved supply chain efficiencies through Bennamon experience

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Current Shareholding
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Current Shareholding

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Currently tightly held share register

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Bennamon 48% Brandon Penn 18%

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Several ex-acquired business owners employed by Pro-Pac on share register Key staff participating in ESPP scheme

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Annexure A – About Pro-Pac
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About Pro-Pac - Industrial Packaging Division

Manufacturer and distributor of:

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Biodegradable voidfill Packaging tools & machinery Cartons Stretch & shrink film Packaging & specialty tapes Strapping – Steel, Poly & PET Labels Poly bags Bubble, paper & air pillow Janitorial products Disposable hygiene products

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Annexure A – About Pro-Pac
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About Pro-Pac - Rigid Packaging Division Manufacturer and distributor of rigid containers & all types of caps & closures.

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Bottles Measures Caps Pails Cubes Sprays & Pumps Drums Jars Jerry Cans Triggers

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Annexure A – About Pro-Pac
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About Pro-Pac - Customer Base

[Strong and diverse customer base servicing most industry segments such as: ]

Automotive Oil Industrial Pharmaceuticals Manufacturing Food Fast food chains

Entertainment Cosmetics Beverage Retail Transport FMCG Agrichem

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Disclaimer

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 148 Newton Road Wetherill Park NSW 2164 T: (02) 8781 0500 F: (02) 8781 0599 www.ppgaust.com.au

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