sample deliverable - plastic packaging market landscape

March 2019

05 November 2020

Market Overview, Competition and M&A

Sample Deliverable - Plastic Packaging Market Landscape

© 2020 RocSearch. All Rights Reserved. 2

Contents

I. Market Overview Global Packaging Market Plastic Packaging: Value Chain Rigid Plastic Packaging: Market Size and Outlook Rigid Plastic Packaging: Plastic Buckets Market Rigid Plastic Packaging: Large Sized Packaging

II. Key Market Trends

III. Competition

IV. M&A Landscape

Sample Only- Disguised and Abridged


01 Market Overview | Global Packaging Market (1/2)

The global packaging market will grow at mid-single digits during 2017-22; plastic will account for xx% by volume and xx% by value

Note: Currency conversion at USD 1 = EUR 0.8914Source: Plastics Europe; Global Packaging Market by Technavio; Trends in Packaging by Euromonitor

Historically, in most countries, the packaging industry has grownat a faster rate than its GDP

Structural changes such as a rising middle-income group indeveloping economies, growing number of small householdsand increasing urbanization will drive the market

Global spending on packaged products by the middle-incomegroup will grow from c. € xxtn in 2015 to c. € xxtn by 2020

Majority of the spending will come from Asia, where themiddle-income group population will reach xbn by 2020

Commodity prices are expected to remain low, which will keeprigid plastic packaging prices competitive

xxxx

xx

xx xx

xxxx

xx

xx xx

FlexiblePackaging

GlassPackaging

MetalPackaging

Paper-basedContainers

Rigid PlasticPackaging

2017 2022

2017 2022

xx

xx

x.x

x.x x.x x.x

x.x

x.x

x.x x.x x.x

x.x

FlexiblePackaging

GlassPackaging

MetalPackaging

Paper-basedContainers

Rigid PlasticPackaging

2017 2022

2017 2022

x.x

x.x

BY VALUE (€BN)

BY VOLUME (TRILLION UNITS)

xx%

x%xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%Flexible Packaging

Glass Packaging

Metal Packaging

Paper-based Containers

Rigid Plastic Packaging

Market by 2022 Value: €xxbn

Volume: x.xtn units

VOLUME VS. VALUE SHARE OF THE MARKET

VOLUME

VALUE



01 Market Overview | Global Packaging Market (2/2)

Asia will continue to account for c. xx% of the global packaging sector and Food packaging will remain the largest end market

Note: Currency conversion at USD 1 = EUR 0.8914Source: Plastics Europe; Global Packaging Market by Technavio; Trends in Packaging by Passport Euromonitor

PACKAGING MARKET BY END-USE APPLICATIONS (€BN) PACKAGING MARKET BY GEOGRAPHY (€BN)

EMEA The market is expected to grow at x%

between 2017-20

Many leading plastic packaging companieshave their production plants in this region.

NORTH AMERICA The market is expected to grow at x.x%

between 2017-20

E-commerce is a key driver. Food, beverageand pharma are the major end markets.

APAC The market is expected to grow at x.x%

between 2017-20

Consolidation and key players shifting theirbase to India and China will drive the market

REST OF THE WORLD The market is expected to grow at x.x%

between 2017-20

Meat, seafood and prepared baby food arethe dominant categories

xx.x%

xx.x%

x.x%

x.x%

xx.x% Food

Beverage

Healthcare

Personal Care

Other Consumer

More than xx% of all Food packages (in terms of value) areflexible packages

With an increase in the number of single-personhouseholds, the market for convenience foods haswitnessed a rise. Vendors are investing in products thatenable reclosability, single-handed use, and portability

The fastest growth in beverage categories is expected tocome from still drinks, sports drinks, and iced teas

The growing market for easy self-medication proceduresand OTC drugs will drive growth in the Healthcarepackaging end-market

xx

xx

xx

xx

2017

2018

2019

2020

xx

xx

xx

xx

2017

2018

2019

2020

xx

xx

xx

xx

2017

2018

2019

2020

xx

xx

xx

xx

2017

2018

2019

2020

Market Size 2017:

€ xxbn



01 Market Overview | Plastic Packaging Value Chain

In Europe, c. xx% of the plastic produced, across all end-use applications, is consumed for plastic packaging materials

Source: Citi Global Perspectives & Solutions; Plastics Europe

Oil & Gas Companies

Ethylene Cracker Polyethylene Producers Plastic Packaging Manufacturers

Consumer/ Industrial Companies

Player 1 Player 2 Player 3 Player 4 Player 5



Player 1 Player 2 Player 3 Player 4 Player 5LE

ADIN

GPL

AYER

S

xx%

x%

x%

xx%

xx%

xx%

xx%

Others

Agriculture

Household & Leisure

Electrical & Electronics

Automotive

Building & Construction

Packagingxx%

xx%

xx%

x%x%

x%

x%

xx%

LDPE

HDPE

PP

PS

PVC

PET

PUR

OTHERS

c. XXmn Tonnes of Plastic Packaging

Low Density Polyethylene Containers, Bags, Tubes

High Density Polyethylene Plastic Bottles, Pipes

Polypropylene Stationery

Polystyrene DVD Cases

Polyvinyl Chloride Blister Packs

Polyethylene Terephthalate Plastic Bottles

Polyurethane Phone Cases

PLASTIC PACKAGING VALUE CHAIN

End Use Applications of Plastic Across Sectors Packaging Application by Plastic Types

Plastic Production Across Europe

UKItaly

Benelux

Germany

Rest xx%

xx%

xx%

x%x%



01 Market Overview | Rigid Plastic Packaging: Market Size and Outlook (1/2)

The rigid plastic packaging market will be worth c. € xxbn by 2022, driven by its high demand in the food and beverage sector

Note: Currency conversion at USD 1 = EUR 0.8914Source: Global Packaging Market by Technavio; Trends in Packaging by Passport Euromonitor

GLOBAL RIGID PLASTIC PACKAGING MARKET (€BN)

c. € xxbnc. € xxbn

c. xxbnunits

c. xxbn units

2017 2022

2017 2022

By Value

By Volume

Preference for Rigid Plastic

Rigid plastic packaging is gaining preference over glass and metal because ofattributes like:– Low material density– Comparatively lower costs– Availability in various designs

Major End Markets

The food and beverage industry is the largest end market of rigid plasticpackaging, accounting for c. xx% of the packaging demand

Increasing consumption of packaged water and carbonated soft drinks,predominantly in PET bottles is major driver for rigid plastic packages

However, this end-market has reached maturity in most developedeconomies

Price Competitiveness

Reduced oil price, from more than €xx per barrel in January 2014 to below€xx per barrel in March 2019, has supported the market

Crude oil price is expected to remain below €xx per barrel during 2019-20,which will keep the raw material price lower

Sustainability Challenge Demand for sustainable packaging is driving some manufacturers towards

bioplastics (derived from plant sources)



01 Market Overview | Rigid Plastic Packaging: Market Size and Outlook (2/2)

In terms of volume, APAC is the largest market and PET Bottles and Thin Wall Containers are the dominant packaging types

Note: Currency conversion at USD 1 = EUR 0.8914; (1) Packaging for food, beverages and beauty and personal care end marketsSource: Global Packaging Market by Technavio; Trends in Packaging by Passport Euromonitor; Packaging World Report on Berry Global

SHARE OF RIGID PLASTIC PACKAGING IN OVERALL PACKAGING MARKET (IN TERMS OF VOLUME)

Western Europe Eastern Europe North America

Latin America Asia Pacific Middle East Africa

xx% xx% xx%

xx% xx% xx%

c. xxbnunits

GROWTH BY RIGID PLASTIC PACKAGING(1) TYPES 2016-21 (IN TERMS OF VOLUME)

x.x%

x.x%x.x%

x.x% x.x% x.x%x.x% x.x% x.x%

HDPE Bottles PET Bottles Plastic Bottles(excl. PET &

HDPE)

PET Jars Plastic Jars(excl. PET)

Thin WallPlastic

Containers

Other RigidContainers

Other PlasticTrays

SqueezablePlastic Tubes

c. xxbnunits

c. xxbnunits

c. xxbnunits

c. xxbnunits

c. xxbnunits

Rigid Packaging: Regional Markets Asia Pacific – Largest market for

rigid plastic, benefiting from its highgrowth economies

Middle East and Africa – Althoughsmall, expected to be the fastestgrowing region due to its beveragepackaging industry, which is forecastto grow by x% CAGR over 2016-21

Western Europe and North America– Slower growth in mature markets,however, their large size will offerpotential in unit volume increases

Rigid Packaging: Types PET Bottles – Extensively used in the

beverage industry

Thin Wall Plastic Containers – Mainlyused for dairy products like yoghurtand sour milk

Predominant Packaging Types – PETBottles and Thin Wall PlasticContainers account for xx% of totalvolumes for rigid plastic packaging infood, beverages, beauty andpersonal care industries



01 Market Overview | Rigid Plastic Packaging: Plastic Buckets Market

The global market for plastic buckets is estimated to be worth c. €xbn and is forecasted to grow at x% CAGR

Note: Currency conversion at USD 1 = EUR 0.8914Source: Plastic Pails Market by Transparency Research; APAC Driving Plastic Pails Market by Technavio

RIGID PLASTIC BUCKETS MARKET OVERVIEW

Definition

Plastic buckets are cylinder-shaped containers, usually with a capacity of about x liters to xx liters, primarily used for the storage of liquid/powder products

HDPE is the primary raw material used in the production of plastic buckets

There has been substantial improvement in the physical attributes of buckets and production capabilities of manufacturers

Market Size & Outlook

In 2018, the global plastic buckets market was valued at more than €xbn

The market is forecasted to grow at a CAGR of x% till 2020

End Markets

The APAC region has the largest share of the market, followed by Europe, North America and Latin America, respectively

Plastic buckets are used across a number of sectors including Paints & Coatings, Industrial Chemicals, Petroleum & Lubricants, Cleaning Solvents, Food &Beverage Ingredients, Agriculture (fertilizers / pesticides)

Key Trends

Key Sectors: Demand from food & beverage ingredients, oil lubricants and chemical sectors is expected to be the key driving factor for plastic buckets

Key Sectors: Industrial chemical manufacturers prefer cost-effective, lightweight and durable packaging solutions for bulk liquid packaging requirements.Plastic buckets meet these requirements and thus, several industries are switching to plastic buckets for product sales

Product Innovation: There have been a number of innovations in the shape and size of plastic buckets. Rectangular buckets are becoming popular as theyoffer excellent stacking capabilities and help optimize space during transit

Drivers for APAC: The APAC region is witnessing large construction and infrastructure activity which is driving demand for paints and construction chemicals.This, combined with a growing population, higher disposable income and increased urbanization, will make APAC the dominant global market for plasticbuckets



01 Market Overview | Rigid Plastic Packaging: Large Sized Packaging

xx% of all industrial packaging is Plastic Drums and Intermediate Bulk Containers, the market for which is estimated at € x.xbn

Note: Currency conversion at USD 1 = EUR 0.8914 and INR 1 = EUR 0.0127Source: Indsec Research; Plastic Drums Market by Transparency Research; UBS Equities Silgan Holdings; Prescient Strategic Intelligence

RIGID PLASTIC INDUSTRIAL PACKAGING MARKET

xx%

xx%

xx%

xx%

xx%

Global Industrial Packaging Market By

Package Type

Crates

Buckets

Sacks

Intermediate Bulk

Containers

Plastic Drums

Major End Market The specialty chemical industry (projected to grow at c.

x% during 2018-23) is a key growth driver for industrialpackaging products

Strategic Shift Over the years, major chemical manufacturers have

shifted from China to SE Asian countries due to risinglabour, transport & production costs

Countries like India, Indonesia, Vietnam, Malaysia andThailand are emerging as strategic manufacturingcentres and could soon assume an important role in theglobal chemical industry and consequently theindustrial packaging industry

Intermediate Bulk Containers Plastic Drums

Definition & Application

Large plastic vessels used to store/transport liquid and othermaterials in bulk

x-times in size compared tonormal polymer drums

Mostly made of Polyethylene. Canalso be made of HDPE orPolypropylene

Food grade and UN-certifiedplastic drums are used for F&B andhazardous chemicals industries.

Can be re-used c. xx times withreconditioning

Current Market Size

Value: c. € x.xbn

Volume: xxmn units

Value: c. € xbn

Volume: xxmn units

End Market/ Demand Driver

Over xx% of rigid intermediatebulk containers (IBC) are used bythe chemicals sector

Over xx% of all rigid plastic drumsare used in the chemicals sector

Demand for petrochemicals in thedeveloping regions such as theAsia Pacific and Latin America isboosting the plastic drums market

Top Players & Ranking

Rank 1 - Schütz (Germany)

Rank 2 - Mauser (Germany)

Rank 3 - TTL (India)

Rank 4 - Greif (US)

Rank 1 - TTL (India)

Rank 2 - Mauser (Germany)

Rank 3 -Schütz (Germany)

Rank 4 - Greif (US)



Contents

I. Market Overview


III. Competition

IV. M&A Landscape



02 Key Market Trends (1/3)

Plastic packaging will be driven by its superior material properties; industrial packaging will be driven by product enhancements

Source: RPC Group Analyst Report by Panmure Gordon & Co.; Plastic Drums Market by Transparency Research

Plastic packaging is growing, notjust in terms of its absolute size(volume and value), but also interms of its share in the overallpackaging market

The substitution of glass/metal for plasticsreflects advances in plastics technology anddesign capability

Features such as barrier technology areenabling extended shelf life of ambient food

Plastic packaging is also lighter and soreduces the carbon footprint, therebyyielding financial and CSR benefits for largeconsumer and industrial corporations

The global rigid plastic packaging market isforecasted to grow at c. x.x% between2017-22

This is higher than the c. x.x% growth rateforecasted for the overall packagingmarket

Share of rigid plastic in the overallpackaging market is also expected toincrease from c. xx% in 2017 to c. xx% in2022

DRIVER IMPACT

01

For efficient transportation, filling, handlingand emptying of plastic drums,manufacturers have to adhere to certainspecifications

Plastic drum manufacturers are looking forcertifications (e.g. FSSC 22000,Comprehensive Preventive MeasuresAccording to HACCP) to ensure the highestlevel of food safety

To enhance their products, plastic drummanufacturers are providing:

– Automatic seal cap and load securitysystem for preventing contamination

– Using fluorination processes to providean anti-permeation layer for sensitive/highly-permeable filling products

– Providing an inner layer of polyethylenefor resistance to surface-activechemicals (e.g. detergent and soda)

TREND

Plastic drum manufacturers areintroducing new product rangesand security systems to enhancethe performance of theirproducts

02

DRIVER IMPACTTREND



02 Key Market Trends (2/3)

China’s ban on waste plastic import and ban on single-use plastic in many countries will have strong impact on the packaging sector

Source: Citi Global Perspectives & Solutions; RPC Group Analyst Report by Panmure Gordon & Co.; Plastic Drums Market by Transparency Research

China, the importer c. xx% of theworld’s paper and plastic waste,has decided to no longer importplastic waste

China accounted for xx% of the world’s CO2emissions. Air quality in many of China’scities fails to meet international standardsfor health and safety

Water pollution is also a major concern asChina accounts for c. xx% of the globalpopulation but only c. x% of freshwater

China has estimated that pollutionnegatively impacts its economy by over $xxbn annually

As a result of the import ban, Westernports have seen plastic waste pile up atstorage sites. There is a collapse in theprice of various recovered plasticsmaterials

Exporting countries will likely be forced toexpand domestic recycling and/or cut backon the level of waste being produced

Import replacement could also boostdomestic virgin resins demand significantly

DRIVER IMPACT

03

TREND

Plastic bags and bottles take anywhere fromxx to x,xxx years to degrade and only ~xx% ofplastic packaging is recycled, while the restends up in landfills

Most common waste-generating polymersinclude LDPE and HDPE, PP and PET, whichare commonly used in bottles and bags

Environmental actions taken by China haverapidly accelerated the banning of single-useplastics

Chemical producers and plastic packagersare responding to pressures on single-useplastic by:

– Light-weighting their products– Investing in plastic recycling companies– Improving recycling systems– Creating bio-based polymers

Metal, glass, and paper may potentially bepositioned to gain back some market

Ban on single use plastics acrossEurope and Emerging Economies

04

DRIVER IMPACTTREND



Contents

I. Market Overview


III. Competition Plastic Packaging Competitive Landscape Profiles of Select Players

IV. M&A Landscape



03 Competition | Plastic Packaging Competitive Landscape

While the market is a highly fragmented (top 10 players have less than xx% market share), it is moving towards consolidation

Source: Citi Global Perspectives & Solutions; RPC Group Analyst Report by Panmure Gordon & Co.

MARKET SHARE OF LEADING PLAYERS

xx%

xx%

Global Plastic Packaging

Market

Globally, the Top 10 plastic packaging manufacturers have less than xx% share of the market

x.x%

x.x%

x.x%x.x%

x.x%

x.x%

x.x%

x.x%x.x%

x.x% Player 1Player 2Player 3Player 4Player 5Player 6Player 7Player 8Player 9Player 10

Fragmented Market Plastic packaging companies typically focus on specific end-

markets (geographic/ sectoral)

While the industry is moving towards consolidation, the top10 players still account for less than xx% of the market

Moving Towards Consolidation

Larger firms are able to invest in the R&D required to developrecyclable packaging and manufacture them at scale,therefore, largescale consolidation among plastic packagershas picked up in recent years

Top 10 Players Market ShareGlobal Plastic Packaging Market

CHALLENGES FACED BY BUSINESS OWNERS

Globally, plastic packaging industry developed during the 1960s and 70s. As foundersseek to pass their business to the next generation, the new owners must decide whetherto divest or invest in the business to cope with issues like:

Identifying demand for packaging that is consistent across multiple markets

Cost of investment in R&D

Material cost volatility that favors large players

Lower demand from developed markets

Sophisticated packaging solutions requiring multiple manufacturing processes

Rigid Plastics 1980 2017

# of Key Players Numerous xx

Market Share c. xx% c. xx%



03 Competition | Plastic Packaging Competitive Landscape

A scattered customer base, low entry barriers and raw material volatility, fosters high competitive rivalry in this sector

Source: Citi Global Perspectives & Solutions; RPC Group Analyst Report by Panmure Gordon & Co.; Global Packaging Market by Technavio

FIVE FORCE’S ANALYSIS

SUPPLIERS The price of resins is usually volatile

The impact of this volatility is feltmore by small and mid sized playersas large suppliers are able tosuccessfully hedge through long-term contracts

The bargaining power of resinmanufacturers is MODERATE

BUYERS The end-market of packaging

companies is spread across anumber of sectors (e.g. food,beverages, chemicals)

Buyers have the option to choosefrom a large number of vendors

A scattered customer base in afragmented market makes for aMODERATE bargaining power

NEW ENTRANTS There are few barriers to entry

Players who can launch innovative,environment friendly and scalablerigid packaging solutions will be ableto capture the market

The threat from new entrants istherefore HIGH

SUBSTITUTES While alternative options do exist in

the market (i.e. metal, glass, woodand paper), analysts believe theshare of plastic in the overallpackaging market will grow till 2022

The threat of substitutes to plasticpackaging is relatively LOW

COMPETITION The market is highly fragmented

with the top players having arelatively small share of the market

The incumbents are also pursuinginorganic growth options

The competitive rivalry is relativelyHIGH in this sector

Impact of Consolidation on Bargaining Power of Packaging Companies Resin can account for more than half of

the cost of goods sold for plasticpackagers

While the top 10 plastic packagingproducers globally hold less than xx%market, the top 10 producers ofpolyethylene hold c. xx% of the globalmarket

Consolidation in this sector willgenerate meaningful cost synergiesespecially in the area of resinprocurement

BENEFITS OF LARGE SCALE RESIN PROCUREMENT: RPC CASE EXAMPLE

Scale is the key to participating in theglobal polymer market and scale requiresinvestment in infrastructure (processingnetwork and storage capacity)

RPC has arrangements with its customersto pass-on price changes to managevolatility

It designs products that can be made frommore than one grade of a certain polymer,allowing for security of supply



Contents

I. Market Overview


III. Competition Plastic Packaging Competitive Landscape Select Player Profiles

IV. M&A Landscape

i. Player 1

ii. Player 2

iii. Jokey Group

iv. Player 3

v. Player 4

vi. Player 5

vii. Player 6

viii. Player 7



03 COMPETITION | Leading Players: Jokey Group (1/2)

Company: Jokey Plastik Wipperfürth GmbH

Entity Type: Private

HQ: Germany

DoI: 1968

Revenue: € 93 mn

Employees: 2,000

Address: August-Mittelsten-Scheid-Strasse 23, D-51688 Wipperfuerth

URL: www.jokey.com

PRODUCTS & SERVICES

Develops plastic packaging solutions, primarily rigid plastics with lids

Provides plastic buckets, plastic boxes and plastic trays using a plasticinjection molding process. It also offers caps and closures for bottles, tubes aswell as flexible packaging products

Additionally, offers bathroom products such as mirrored cabinets and mirrors

ENDMARKETS

Offers industry-specific solutions for packers of food and non-food goods

Also offers products for paints and construction chemicals, chemicalproducts, food for livestock and pets, toys, tools, household goods andmedical disposal containers

Within the food sector, the company provides packaging solutions for icecream, dairy products, cereals, dietary supplements, processed food, ready-to-use mixtures, confectionary, meat and vegetables

For the chemicals sector, the company provides packaging solutions forhomecare, cosmetics, car care, greases, oils, wet wipes, fertilizers, etc.

GEOGRAPHICPRESENCE

The company has 15 production plants in 12 countries and caters tocustomers in over 80 countries

BUSINESSSTRATEGY

Jokey focusses on industry specific solutions and custom made packagingsolutions through custom mould packaging, high-resolution, photorealisticimages produced in the In-mould labelling process (IML) and precisepreproduction of brand colors

OWNERSHIP

Family Owned

Owned and operated by the second and third generation of the Kemmerichfamily. Herbert Kemmerich and Ralf Kemmerich are the Managing Partners

KEY OBSERVATIONS

Jokey’s revenue has grown significantly since2014, however, margins have sharply declined

The company reinvests c. 10% of its turnoverinto R&D, distribution solutions and employeedevelopment

Jokey is pursuing organic growth in terms ofincreasing its distribution channels andmanufacturing sites. Jokey is also pursuingcross-border acquisitions opportunities forinorganic growth

Note: Currency conversion at USD 1 = EUR 0.8914Source: Company Website; Bundesanzeiger; S&P Capital IQ; LinkedIn



03 COMPETITION | Leading Players: Jokey Group (2/2)

93

87

9091

93

12.1%11.0%

24.1%

7.9%

3.6%

2013 2014 2015 2016 2017

REVENUE & EBITDA MARGIN (€MN, %)

MANAGEMENT TEAM

NAME DESIGNATION DoJ EMAIL

Herbert Kemmerich CEO & Managing Partner 2018 [email protected]

Peter Dörmbach CFO 2010 n/a

Jens Stadter Managing Director 1971 [email protected]

Ralf Kemmerich COO & Managing Partner 1971 [email protected]

RECENT DEVELOPMENTS

Mergers & Acquisitions

May 2017: Acquired Spanish packaging producer TreplasS.L., hence broadening their operations and customerreach

Expansion

June 2017: Opened their online distribution channel atwww.jokey-shop.com, for direct ordering by customers

January 2017: Opened new UK storage and distributionfacility in Ferrybridge, in response to Brexit

March 2016: Opened their first packaging plant in Russiaby setting up a plant worth €11mn in Ulyanovsk

Appointments

January 2019: Jens Stadter will take over the chairmanshipfrom Herbert Kemmerich, following the conversion of theWipperfürth and Gummersbach parent plants into aEuropean stock corporation, Jokey SE

Awards

November 2018: Awarded the Pack The Future Award inthe Eco Design category at the ALL4PACK packaging tradefair in Paris, France

November 2017: Awarded the 2017 BME Innovation Priceby the Bundesverband Materialwirtschaft, Einkauf undLogistik e.V, for successful repositioning of group-wideprocurement operations

Note: Currency conversion at USD 1 = EUR 0.8914Source: Company Website; Bundesanzeiger; S&P Capital IQ; LinkedIn



Contents

I. Market Overview


III. Competition

IV. M&A Landscape



04 M&A Landscape

The global packaging market is moving towards consolidation; emerging market M&A activity in 2018 was higher than 2016-17

Note: Currency conversion at USD 1 = EUR 0.8914Source: Packaging M&A Activity - William Blair; Bloomberg; Mergermarket; S&P CapitalIQ; Thomson Reuters EIKON

xx xx

xx

xx

xx

xx xx xxxx

xxxx xx

xx

x.x

x.x

x.xx.x

x.x x.xx.x x.x

x.xx.x x.x

x.x

x.x

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of Deals Value of Deals (€bn)

GLOBAL PACKAGING MARKET M&A TRENDS

xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx%

xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Emerging Markets Developed Markets

Transaction Volume Vs. Value

Developed Vs. Emerging Markets

M&A Activity Continues to Accelerate in2018 Both strategic buyers and financial

sponsors aggressively pursuedopportunities

In H1 2018, the total deal volume andvalue witnessed a sharp increase

M&A deals are being driven by:– Ongoing consolidation of an industry

that remains largely fragmented– Growth tailwinds provided by

eCommerce, on-the-go food andbeverage and healthcare markets

– Growing interest from financialsponsors drawn to the industry’sdefensive characteristics

Emerging Markets Picking Up

In 2018, emerging market M&A activityincreased from its 2016-17 levels,accounting for c. xx% of all deals, up fromxx% in 2017

This increased activity in emergingmarkets is being driven by strategicacquirors turning to global markets toexpand their addressable market andparticipate in higher growth regions



04 M&A Landscape

Demand for packaging assets is reflected in their valuations; financial sponsors are paying a premium for these assets

Note: Currency conversion at USD 1 = EUR 0.8914Source: Packaging M&A Activity - William Blair; Bloomberg; Mergermarket; S&P CapitalIQ; Thomson Reuters EIKON

VALUATION TRENDS (EV/ EBITDA)

x.x

x.xx.x

x.x

x.x

x.x

x.xx.x

x.x x.x x.x

x.xx.x

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Median: x.x

STRATEGIC BUYERS VS. FINANCIAL SPONSORS

Valuations in 2018 are Well Above the 10-year Median There is robust demand for packaging

assets, which is reflected in the valuationsof these companies

In H1 2018, the median EV/EBITDAmultiple for packaging acquisitions wasx.x, well above the longer-term median ofx.x

Healthy valuations achieved by sellershave been supported by lenderswillingness to finance packagingacquisitions

Financial Sponsors Outbidding StrategicBuyers Financial sponsors are increasingly

outbidding strategic buyers for packagingcompanies that are large enough to serveas platform assets (c. €xxmn+ in EBITDA)

Strong cash flow, relatively low capex anddefensive nature of many end markets,make these companies attractive assetsfor PE firms

Financial sponsors continue to look forpotential platform assets with strongmanagement teams, proven ability toexecute on an acquisition strategy and afocus on less cyclical end markets

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

2010

2011

2012

2013

2014

2015

2016

2017

2018

x.x x.x

x.xx.x

x.x

x.x

2015 2016 2017

Strategic Buyers Financial Sponsors

Number of Deals EV/ EBITDA



Glossary: Rigid Plastic Packaging Types

HDPE Bottles

PET Bottles

Plastic Bottles

(excl. PET & HDPE)

PET Jars

Rigid Containers

Plastic Trays

Plastic Jars (excl. PET)

Thin Wall Plastic

Containers

Squeezable Plastic Tubes

Intermediate Bulk

Containers

Plastic Drums

Plastic Buckets



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sample deliverable - plastic packaging market landscape

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