Investor Presentation – July 2015
Forward-Looking Statements The information in this presentation has not been independently verified and does not purport to be comprehensive. One51 is not undertaking any obligation to provide any additional information or to update this presentation or to correct any inaccuracies that become apparent. This presentation is neither a prospectus nor an offer nor an invitation to apply for securities. The information contained in this presentation is for background purposes only and is subject to material updating, completion, revision, amendment and verification. This presentation does not constitute or form a part of any offer for sale or solicitation of any offer to buy or subscribe for any securities. Any prospective investor must make its own investigation and assessments and consult with its own adviser concerning any evaluation of the Company and its prospects. No representation or warranty, express or implied, is or will be given by One51, its subsidiaries, its shareholders or their respective directors, officers, employees or advisers as to the accuracy or completeness of this presentation and, so far as permitted by law, no responsibility or liability is accepted for the accuracy or sufficiency of this presentation. In particular, without limitation, no representation or warranty is given as to the achievement or reasonableness of any projection, estimate, target or forecast in this presentation, which it should be noted is provided for illustrative purposes only. This presentation contains forward-looking statements which reflect management’s current views and estimates. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. Management undertake no responsibility to revise any such forward-looking statements to reflect any changes in management’s expectations or any change in circumstances, events or the Group’s plans and strategy. Accordingly, no reliance can be placed on the figures contained in such forward-looking statements. 2
Table of Contents Transaction Highlights.......................................................................................4 One51..............................................................................................................10 IPL....................................................................................................................14 OPG..................................................................................................................20 Strategy............................................................................................................27 Summary..........................................................................................................28 3
IPL Transaction Highlights • One51 together with 2 Canadian Equity Partners is acquiring IPL Inc. from Novacap and Fonds de solidarité FTQ (“FSTQ”) for a total consideration of CAD$280m • IPL is a leading North American manufacturer of injection moulded plastics with facilities in Canada and the US • One51 expanding its international reach to include significant North American markets and significantly increasing its scale • Caisse de dépôt et placement du Québec (“CDPQ”) becoming a shareholder in IPL (22%) and FSTQ (11%) remaining a shareholder • Investissement Quebec are also participating in the financing package 4
IPL Transaction Highlights contd. • Financing structure - Debt (CAD$155m) and Equity (CAD$135m) • One51 Equity contribution (CAD$90m) will be funded from cash reserves and existing banking facilities • Senior Debt and RCF provided by National Bank (CAD$110m) and HSBC (CAD$40m) • 2014 Revenue of CAD$215.2m and Adj. EBITDA of CAD$30.9m • Forecast pro forma Revenue for 2015 of c. CAD$240m and Adj. EBITDA of c. CAD$40m on an existing Canadian GAAP basis • Transaction expected to close by July 31 2015 5
Strategic Rationale • Acquisition of a platform position in a large fragmented market • One51 has secured a platform to develop an international plastics business with scale • Complementary products with new geographic markets • Entry to a new segment - food packaging - on a scale basis • People, Products and Production Facilities • Long standing, blue chip customer base • Operational improvement potential 6
One51 – International Scale • • € 122.5m Revenue CAD$215.2m Revenue • • € 15.7m EBITDA CAD$30.9m EBITDA • • 6 Facilities 5 Facilities • UK (4) • Canada (4) • Ireland (1) • US (1) • China (1) • • c. 455 people c. 800 people • • 150+ machines 80+ machines 7
One51 - International Reach 1 MGB PLASTICS PROTECH CHINA 6 Wheeled Bin Manufacturer Electronics 6,000 m 2 manufacturing 2,300 m 2 manufacturing facility with capacity to facility. produce 1.5 million wheeled bins per annum. 7 STRAIGHTS Wheeled Bin, Caddy & 2 PPC Kerbside Box Manufacturer Paint Can Manufacturer 12,000 m 2 manufacturing facility. 5,600 m 2 manufacturing 9 facility with a range of state 8 of the art machinery. 8 ST-DAMIEN Bulk Packaging & Environmental AAC PLASTICS 3 50,300 m 2 manufacturing Trade Moulding facility. 5,100 m 2 manufacturing facility with a well invested 9 EDMUNDSTON range of production Material Handling & Thin Wall machinery. Packaging for Food 4 PROTECH Applications 12,100 m 2 manufacturing Rigid Packaging & Electronics facility. 2,300 m 2 manufacturing LEE’S SUMMIT, MO facility with an additional 1,400 m 2 clean room Overcaps Business, Manufacturing Lids & facility. Composite Lids 1255 Employees 22,800 m 2 manufacturing PROTECH BOSTON 5 facility. Electronics 230+ Machines Representative office. 8
An Excellent Fit for One51 Deep Product Portfolio Market Positions Technologies Strong Client Access to North Relationships American Markets Experienced Entry to Food Management Team Packaging 9
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Group Overview € 52m 2 operating C. 950 people investment portfolio divisions book value* 22 locations - EBITDA* € 276.5m € 21.9m Ireland, UK and revenue* China *Financials relate to final results for the year ending 31 December 2014 11
Group Structure 12
Strategy • The Group’s strategy is to develop its core operating businesses, OnePlastics Group and ClearCircle Environmental whilst continuing to unlock value in its investment portfolio • OnePlastics Group and ClearCircle Environmental provide the opportunity to focus on higher margin businesses with good growth characteristics and strong competitive advantages • IPL represents the type of growth opportunity One51 is looking for over the medium term to augment its existing operations • The Group also believes there is upside in its investment portfolio versus book value • Appropriate liquidity options under consideration 13
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About IPL • Founded by Metivier Family in 1939 in St-Damien, Quebec • Leading North American manufacturer of injection moulded plastics • Serving Environmental, Bulk Food and Retail sectors • 5 Facilities – 4 in Canada and 1 in the US (3 manufacturing sites) • Employing 800 people • Producing c. 2.8bn product units annually 15
IPL Operations & Locations IPL Inc. St-Damien Edmundston IPL USA IPL Canada Plastics Enterprises Edmundston St-Damien Co. Plastics Enterprise Co., MO Retail Packaging Division Bulk Food & Environmental 16
IPL Operations Overview • Manufacturing focused on 3 main areas: − Environmental products i.e. Wheeled bins and associated recycling containers − Bulk Food packaging i.e. 1L – 24L round, square and rectangular pails primarily for the food services industry − Retail Food packaging i.e. 0.25L – 2.5L round, square and rectangular pails for retail food packaging (e.g. Deli salads etc.) and plastic lids for food packaging (e.g. Ground coffee cans, ice-cream tub lids etc.) 17
IPL – Bulk Food & Environmental Bulk Packaging Bulk Packaging Environmental Material Handling • The Bulk Packaging division primarily services the Food Services industry supplying a range of tamper evident pails from 1L to 24L for prepared salads, speciality cheeses, pastry fillings and icings etc. • IPL has grown its bulk packaging sales from c. C$42m in FY12 to c. C$62m in FY14 through a combination of a new sales team and expanding its product portfolio Environmental • The majority of IPL environmental sales are to local municipalities in Canada and distributors such as USD Inc. • It has also won some tenders in the US • IPL is the No. 1 supplier of wheeled bins to the Canadian market and has c. 60% of the Canadian wheeled bin market • IPL sells approximately c. 800k wheeled bins p.a. Material Handling • Relatively stable business which services a number of niche areas such as the Lobster & Fisheries industry and the Nursery & Forestry industry in Canada 18
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