PRO-PAC PACKAGING LIMITED — Investor Presentation 2012

Sep 9, 2012

Pro-Pac Packaging Ltd

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10[th] September 2012 Pro-Pac Perth Presentation

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Agenda
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Pro-Pac Packaging (PPG)

• Who are we and what do we do

• What is our unique value proposition and differentiation

• Low risk profile

• Growth opportunities and outlook

• Financial performance

• Current shareholding

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Who are we?
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Who we are and what we do:

• Established since 1987

• Highly diversified packaging and related products

• Supply products across every industrial segment

 Entrepreneurial culture with many ex business owners rather than corporate

• Essentially a trading company sourcing and selling

• 10,000+ diverse customers

• 400+ staff with over 70 in sales

• Recently established online ordering via website www.hills.net.au

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PPG Product Silo’s
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PPG Product Silo’s

Primary Secondary Safety & Food Packaging Washroom Online Packaging Packaging PPE Service / Machinery / Janitorial Ordering Processing Promoting Protecting Protecting Processing Packing Ensuring Packaging your your your people & packaging more your online product product • Gloves your food efficiently hygiene • General • Bottles • Cartons • Head, ear & • Cups • Stretch wrap • Paper towels industrial • Jars • Tape face protection • Wipers machinery • Toilet tissue packaging • Caps/closures • Bubble wrap • Hi-Visibility • Napkins • Carton sealers • Dispensers • Food service • Cubes • Stretch wrap clothing • Disposable • Strapping • Sanitisers • Washroom • Jerry cans • Strapping • Disposable cutlery machines • Cleaning • Sprays • Void fill protective • Food Trays • Hooding chemicals • Triggers • Padded apparel • Punnets machines • Bin liners • Pails mailers • Signage • Knives • Patty presses • Pouches & • Plastic sheets • Meat trade • Sausage filters rewind tools • Service and • Custom • Chain mesh maintenance printed gloves boxes/bags • Lashing and twine

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Pro-Pac Competitive Advantage
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Competitive Advantage

• Unique business model of broad business silos with in-depth product

• expertise

• Compete against the traditional-distribution model

• Our advantage “cut out the middle man”

• Competitive end-to-end supply

• Well positioned national distribution presence in a fragmented market

• Ability to service major customers with “stock and call off”

• Most competitive with well-established procurement

  • International sourcing and consolidation in Asia

  • Own branded products

  • In house local manufacture

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PPG Cross-Selling Capability
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Risk Profile
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Risk Profile

• Low risk business model with extremely high growth potential

• Recurring revenue streams with contracted customers

• Packaging an essential product

 Diverse “blue chip” customer base not susceptible to particular segment downturn

• Critical mass and infrastructure attained in each capital city

• Proven track record of acquisitions and integration

• Strong balance sheet

• Strong cash flow generating businesses

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• No principal debt with $25M in unused facilities

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Growth Strategies
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Fast Growing With a Three Pronged Approach

• Continue roll up synergistic & strategic companies Acquisitive • Seek company transforming acquisitions • Strong pipeline of potential acquisitions • Dedicated cross selling team Cross-Selling • Cross selling products in expanding customer base • Increase wallet share of existing customers • Continue aggressive sales with 70 plus sales people Organic • Innovation and sourcing of new products to market • Face to face, on-line, telemarketing and catalogue

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Growth Opportunities
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Growth Opportunities

• 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 3 smaller acquisitions by September 2012

• 2 Prospects > $100M

• 4 Prospects between $10M - $50M

• 10+ Prospects < $10M

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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
2009 2010 2011 2012 2007 2008 2009 2010 2011 2012
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 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 $ m $ m $ m $ m $ m $ m Start up date 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 85.2 47.9 1989 70 72 74 91 114 133	Non-Executive Growth Mode Turn- around FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 $ m $ m $ m $ m $ m $ m Start up date 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 85.2 47.9 1989 70 72 74 91 114 133	Non-Executive Growth Mode Turn- around FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 $ m $ m $ m $ m $ m $ m Start up date 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 85.2 47.9 1989 70 72 74 91 114 133	Non-Executive Growth Mode Turn- around FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 $ m $ m $ m $ m $ m $ m Start up date 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 85.2 47.9 1989 70 72 74 91 114 133	Non-Executive Growth Mode Turn- around FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 $ m $ m $ m $ m $ m $ m Start up date 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 85.2 47.9 1989 70 72 74 91 114 133	Non-Executive Growth Mode Turn- around FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 $ m $ m $ m $ m $ m $ m Start up date 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 85.2 47.9 1989 70 72 74 91 114 133	Non-Executive Growth Mode Turn- around FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 $ m $ m $ m $ m $ m $ m Start up date 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 85.2 47.9 1989 70 72 74 91 114 133	Non-Executive Growth Mode Turn- around FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 $ m $ m $ m $ m $ m $ m Start up date 1987 26.0 44.0 27.0 44.5 30.5 43.5 46.5 44.5 65.5 48.0 85.2 47.9 1989 70 72 74 91 114 133	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	85.2 47.9	4% 1%	52% 23%	52% 23%	41% 25%	30% 0%
1989
	70	72	74		91	114	133	3%	3%	23%	25%	17%
Non-Executive		Turn- around		Growth Mode

Industrial Division Growth 4 Years to June 12
Organic Growth Acquisitions Total Growth 49% 163% 212%

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Current Shareholding
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Current Shareholding

• Currently tightly held share register

• Bennamon 48%

• Penn family 16%

• New institutions in recent capital raising approx 12%

• Several ex-acquired business owners employed by Pro-Pac approx 5%

• Key staff participating in ESPP scheme

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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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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 147 – 151 Newton Road Wetherill Park NSW 2164 T: (02) 8781 0500 F: (02) 8781 0599 www.ppgaust.com.au

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