Stanley Off-Piste Conference October 2014 www.mpact.co.za Mpact - PowerPoint PPT Presentation

MPACT RMB Morgan Stanley Off-Piste Conference October 2014 www.mpact.co.za

 Mpact business overview  Group 2014 interim performance review  Strategy  Annexures 2

SA packaging sector overview SA packaging ex-converter sales 1 2013 (Volume) SA packaging ex-converter sales 1 2013 (Value) Other, 0.8% Other, 4.3% Metal, 10.7% Plastic, Metal, 8.5% 24.0% Glass, 11.9% Plastic, 48.3% Glass, 31.1% Paper, Paper, 32.1% 28.3% Total packaging volume % growth (Volume) Total packaging volume % growth (Value) Value Volume 1200 CAGR CAGR 16 500 (’09 - ’13) (’09 - ’13) 1000 14 000 Corrugated 6.6% 2.7% 800 ‘000 tons R’m 11 500 Cartonboard 8.0% 1.3% 600 9 000 Flexibles 8.3% 3.1% 400 Rigids 8.3% 2.8% 6 500 Metal 2.1% (3.1%) 200 4 000 Glass 2.6% (1.8%) 1 500 0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Corrugated Cartonboard Rigids Corrugated Cartonboard Rigids Flexibles Metal Glass Flexibles Metal Glass 1. Source: BMI Report (2014) “Ex converter” sales refer to sales of packaging materials converted in the country by local producers (includes imports and exports) 2. 3 PAGE 3 Industry overview

Mpact business overview Mpact Paper Plastics Primary product categories Primary product categories   Recovered paper collection PET bottles and preforms, hot fill bottles, PET jars and closures   Packaging and industrial papers such as cartonboard and Large injection moulded containers containerboard  PET and styrene trays, fast food containers and clear plastic  Corrugated packaging films  Detpak – Quick Service Restaurant (QSR) packaging  Other plastic packaging   No. 1 in corrugated packaging No. 1 in PET preforms   No. 1 in recycled based cartonboard and containerboard No. 1 in styrene trays   No. 1 in recovered paper collection No. 1 in plastic jumbo bins CENTRES OF EXCELLENCE Human Resources, Safety, Health, Environment SHARED SERVICES Finance, IS&T, Stellenbosch R&D Employing 3,998 people, 32 operating sites Sources: Mpact, BMI Report (2014), PAMSA and PRASA 4

Paper business overview Divisions : Recycling Standard and customised : Paper Manufacturing cases Cartonboard : Corrugated and converting Key products : Cartonboard : Containerboard : Retail ready packaging : Regular slotted cartons : POS packaging and displays Containerboard : Die-cut solutions : Quick service restaurants total packaging solutions Key customers : Packaging converters (containerboard and cartonboard) : Agricultural producers Fruit and vegetable trays : FMCG companies : Quick service restaurants : Other consumer and industrial packaging companies Operations : Recycling (7) : Paper Manufacturing (3) : Corrugated and converting (13) 1 Employees : 2,693 Retail ready packaging Other External Revenue (2013) EBITDA (2013) 72% 79% R5,574m R835m Leader in recovered paper collection, production of cartonboard, containerboard and corrugated packaging Sources: Mpact and financial figures extracted from the 2013 audited Mpact financial information Notes: (1) Includes 2 sheet plants in Mozambique and Namibia in which it holds a controlling interest and a sales office in Bloemfontein 5 PAGE 5 Paper

Recycling Customer base  The largest paper recycler in SA MSN 1 and others, 27% 451k tons Geographic footprint  Recovery and recycling of paper in SA ensures local beneficiation of raw materials and creation of jobs  Over 100,000 people involved in the Pretoria Internal recycling industry in SA Midrand Johannesburg consumption, 73% Springs  Seven operations in major centres Key competitors and 42 buy-back centres Richards Bay Durban Sappi  Over 40 entrepreneurial companies empowered to facilitate collection Nampak East London strategies Kimberly Clark Cape Town Port Elizabeth Lothlorien Sources of recovered paper Collected volumes (kt) Gayatri 457 Independents Governments and local authorities 451 450 Schools 448 Current recovery rate of 62% Paper banks recoverable paper in SA 441 Converters Mpact Recycling Agents, dealers, waste management companies shareholding Business and offices 2009 2010 2011 2012 2013 75% Mpact Limited  Kerbside 25% Mondi Limited  Source: Mpact Imports Note: (1) Mondi Shanduka Newsprint Mobile cages and bakkies 6 PAGE 6 Paper

Paper Manufacturing Geographic footprint Customers Geographic sales  Containerboard and cartonboard packaging Export, 7% converters (internal and external) Johannesburg Springs Piet Retief Richards Bay Felixton Durban Domestic, 93% East London Cape Town Port Elizabeth Production capacity in kt Key competitors Capacity 2013 Mill/Plant Main products (ktpa) Non integrated Linerboard and semi-chemical Piet Retief 130 Sappi fluting Lothlorein Linerboard and semi-chemical Felixton 155 fluting Imports Springs Cartonboard and specialities 130 Integrated Nampak Additionally, Mpact distributes all containerboard products of Mondi Group’s Richards Bay Mill, selling mainly into South Africa and selected markets in sub-Saharan Africa and Indian Ocean Islands Gayatri Source: Mpact 7 PAGE 7 Paper

Paper Converting Geographic footprint Customers Overview  Localised customer base  Acquisition of Detpak SA in 2013  Customers include producers of agricultural,  Three high-graphic printing Kya Sands Windhoek 1 Nelspruit food durable and non durable goods 3 : (Detpak) Maputo 1 machines situated in Springs, Brakpan Johannesburg Walvis Bay 1 Springs Pinetown and Epping offering Sheet board, high-quality graphic printing on 19% Agricultural, corrugated board. These are Bloemfontein 2 37% Durban complimented by in-house graphic Other, 15% design facilities East London  ISO 14,000 and ISO 9,000 Epping Port Elizabeth Cape Town FMCG, 29% environmental and quality management systems, respectively Corrugated production in m 2 Key competitors  Paper converting packaging (million) products include: Nampak  Corrugated regular cases 432 413  Die-cut cases 391 387 381 New Era 369 367  328 Folded glued cases  Trays APL  Point of sale displays  Quick Service Restaurant total Corruseal packaging solutions  Industrial paper bags Houers 2006 2007 2008 2009 2010 2011 2012 2013 Lufil Sources: Mpact and BMI Report (2014) Notes: (1) Mpact has sheet plants in Mozambique and Namibia (holding a controlling interest) (2) Corrugated sales office in Bloemfontein (3) Management estimates 8 PAGE 8 Paper

Plastics business overview Key products : PET preforms, bottles and jars PET Preforms, Bottles and Jars : Plastic jumbo bins, wheelie bins, plastic crates : Plastic containers such as bottles, jars, closures, with in-mould labelling capability : Styrene and PET trays, fast food containers and clear plastic films Key customers : FMCG companies (carbonated soft drinks, personal care, Plastic Jumbo Bins, Wheelie Bins, Plastic Crates and Pallets pharmaceuticals, food producers) : Fast food producers : Agricultural producers : Retail chains Operations : Styrene trays and clear plastic films (3) FMCG Bottles, Jars, Closures and In-Mould : Large injection moulds (2) Labelling : PET injection (1) , FMCG plastic packaging (2) and closures (1) Employees : 1,196 External Revenue (2013) EBITDA (2013) Styrene and PET Trays, Fast Food Containers and Clear Plastic 21% Film 28% R2,124m R238m Leader in the manufacture of PET preforms, styrene trays and plastic jumbo bins Sources: Mpact and financial figures extracted from audited Mpact financial information 9 PAGE 9 Plastics

Plastics segment overview Geographic footprint Customer base Other, 4% Harare Food, 18% Distributors, 21% Brits Pretoria Agricultural, 10% Johannesburg Beverage, 25% 1 Wadeville Retail, 8% Personal care, 5% Pinetown Home care, 9% Durban Blackheath East London Atlantis Paarl Port Elizabeth Mills/plants and main products Key competitors Mill/Plant Main products PET preforms, jars, bottles and hot fill bottles, Nampak Wadeville closures Injection moulding, blow moulding Plastic jumbo bins, wheelie bins, plastic crates Atlantis (Large Injection) Astrapak Injection moulding Plastic jumbo bins, wheelie bins, plastic crates Brits Injection moulding Bowler Metcalf FMCG packaging bottles, jars, closures, in-mould Pinetown labels Injection moulding, blow moulding, IML Polyoak FMCG plastic bottles, jars, closures Atlantis (FMCG) Injection moulding, blow moulding, PET bottles CIBA and printing Styrene trays, fast food containers, PET trays and Versapak Paarl blisterpack and clear plastic films Boxmore Styrene trays, fast food containers and clear Versapak Harare plastic films Note: (1) A significant proportion of beverage sales is made up by an Amalgamated Beverages (ABI) contract for PET preforms. 10 PAGE 10 Plastics

 Mpact business overview  Group 2014 interim performance review  Strategy  Annexures 11