Cup The difference and why it s important

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1 Cup The difference and why it s important Raw Materials Why it s important: 49% of the CO2 emissions associated with a paper cup are from the raw materials. It is therefore imperative to source materials with low carbon footprints and minimal environmental impacts. Paper pulp sourced from managed plantations: MWV, Stora Enso, Weyerhaeuser, and Clearwater Why it s important:: Biodiversity of forest ecosystems is maintained or enhanced The range of ecosystem services that forests provide is sustained They provide food, fibre, biomass and wood They are a key part of the water cycle, act as sinks capturing and storing carbon, and prevent soil erosion They provide habitats and shelter for people and wildlife; and they offer spiritual and recreational benefits Chemicals are substituted by natural alternatives or their use is minimized Workers rights and welfare are protected Local employment is encouraged Indigenous peoples rights are respected Operations are undertaken within the legal framework and following best practices. Lining & lid made from rapidly renewable plant based bioplastic: Natureworks Ingeo - 70% less GHG emissions compared to conventional plastic Why it s important: There are two major advantages of biobased plastic products compared to their conventional versions: they save fossil resources by using biomass which regenerates (annually) and providing the unique potential of carbon neutrality. Furthermore, biodegradability is an add-on property of certain types of bioplastics. It offers additional means of recovery at the end of a product s life. Where industrial compost facilities are available, the Ingeo coating on BioCups enables composting as an end of life option. Soy or water based inks used Why it s important: Soy Based inks: It has a number of environmental benefits. Much of the soybean crop requires no irrigation, limited fixed nutrients, and leaves fewer agricultural residues than other crops. Soy ink also has low levels of VOCs, (volatile organic compounds) which helps to reduce air pollution by minimizing toxic emissions. Since naturally clearer Soybean oil is available, it is possible to obtain as brightly colored ink as by using clear petroleum distillates. By using clearer soy bean oil grades, less pigment is necessary to produce the same optical effect, which reduces the overall cost of the ink. Soy ink has been found to spread approximately 15% further, reducing ink use and printer cleanup costs. Water Based inks: Oil based inks contain PVC and phthalates that are harmful to the environment and have been linked to numerous medical disorders. They also require the use of harmful solvents in the cleaning process. Water based inks do not contain PVC or phthalates and you don t need solvents to clean up after they ve been used - you can clean them with water.

2 Industry Associations At BioPak we believe its important to do everything possible to reduce our environmental impact, we are constantly looking for ways to improve. We engage with independent organizations with relevant skills, and aligned visions to asses and guide us in our journey towards sustainability. We proudly display our associations with these visionary leaders. In the interests of transparency and accountability, we publish and make available for all to see, the key performance indicators of our social and environmental goals. By doing so we hope to inspire more business to follow a sustainable path. Signatory to Australian Packaging Covenant Why it s important: The APC is a sustainable packaging initiative which aims to change the culture of business to design more sustainable packaging, increase recycling rates and reduce packaging litter. It is an agreement between government, industry and community groups to find and fund solutions to address packaging sustainability issues. Through the APC BioPak has agreed take a leading role in managing the impact of its packaging. Certified by Greenbizcheck Why it s important: GreenBizCheck s world-leading, online, high impact annual certification programs have been heavily researched and comprise the latest European and Asian best practice standards. They cover energy, water, waste and recycling, transportation and travel, procurement and supply chain sustainability. Member of NZ Public Place Recycling Scheme Why it s important: There is increasing pressure on companies from the community and local and central government to address the end of life impacts of packaging through product stewardship. The Waste Minimisation Act provides a framework for voluntary (and if necessary mandatory) product stewardship and having accreditation helps provide protection for industry against regulation. Carbon reduaction Institute All emissions associated with production, distribution and disposal are offset through the carbon reduction institute and the purchase of carbon credits tons in 2013 Why it s important: Social responsibility is very much part of today s business marketing activities. With Climate Change being at the forefront of everyones mind, many businesses are choosing to negate their environmental impact. Reducing carbon emissions is now becoming a business necessity. More and more companies, consumers, government departments, NGOs and other organisations are requesting information on actions their suppliers are taking to reduce their carbon emissions. SEDEX Member Supplier Ethical Data Exchange, is a not for profit membership organisation dedicated to driving improvements in responsible and ethical business practices in global supply chains. Why it s important: Retailers, consumer brands, governments and NGOs are under constant pressure to monitor and understand their supply chains. Revelations of unfair or unsafe labour practices, corruption, or environmental negligence in the supply chain can damage a company s reputation and lead to a loss of revenue. Sedex is an important tool for sharing good practice and helping to drive environmental and social improvements in the supply chain.

3 best of breed manufacturing Production accounts for 29% of carbon emissions of a paper cup. It is therefore important to ensure the production facility and equipment are modern and and energy efficient in order to keep co2 emissions at this stage of production to a minimum. Modern state of the art production facility With complete vertical integration Why it s important: Large onsite warehouse ensures sufficient buffer stock. Complete control over all components of cup production, from raw materials including paper coating and printing to final assembly. Our facility provides us with increased production capacity to fulfil customers expectations as well as focus on environmental needs. Production with precision to the highest quality standards. Production facility certified to ISO Why it s important: The ISO standard specifies a process for the control and the continuous improvement of an organisation s environmental performance. Organisations which have implemented an effective ISO environmental management system benefit by improving environmental performance, understanding and meeting legal requirements as well as social responsibilities, and demonstrating due diligence. Production facility certified to ISO Why it s important: The ISO international standard specifies the requirements for a food safety management system that involves the following elements: Interactive communication System management Prerequisite programs HACCP principles Ensure that all relevant food safety hazards are identified and adequately controlled at each step within the food chain. This implies communication between organizations both upstream and downstream in the food chain. Communication with customers and suppliers about identified hazards and control measures will assist in clarifying customer and supplier requirements. Recognition of the organization s role and position within the food chain is essential to ensure effective interactive communication throughout the chain in order to deliver safe food products to the final consumer. The most effective food safety systems are established, operated and updated within the framework of a structured management system and incorporated into the overall management activities of the organization. This provides maximum benefit for the organization and interested parties. ISO has been aligned with ISO 9001 in order to enhance the compatibility of the two standards.

4 BioCup Production facility BioCups are produced in a state of the art production facility. At the Taichung plant, cups are produced for a number of leading global beverage and packaging brands. Environmental Initiatives All paper is sourced from managed plantations Paper is coated with Ingeo PLA a renewable starch-based bioplastic with a CO2 footprint 70% smaller than conventional plastics BioPlastic Lids are made from Ingeo PLA which unlike polystyrene lids contain no potential harmful carcinogens Printing inks are soy or water based Printer Komori Lithodrone C40 All emissions associated with the production, distribution and disposal of the cups and lids are offset through the purchase of carbon credits Certifications Certified to ISO Certified to ISO 22000: an international standard for a food safety management system, involving: Interactive communication System management Prerequisite programs HACCP principles The facility has had a social accountability audit by NSF and is a member of SEDEX to measure social compliance. It takes a management systems approach by setting out the structures and procedures that companies must adopt in order to ensure that compliance with the standard is continuously reviewed. The production facility has adopted policies and procedures that protect the basic human rights of workers Factory data Energy 1,678,000 Kwh per month The factory has recently completed a major upgrade increasing the plant size from 22,000sqm to 44,000sqm and annual production capacity has doubled to 2.8 billion cups. An USD $800,000 state of the art central drum offset printing machine has been installed ensuring we offer the best quality print results. Energy WATER General waste Water 1,476 tons per month Waste 4.8 tons per annum

5 BioCUP FUTURE INNOVATIONS Paper with 25% recycled content is an option Cup lid innovations We have identified more cost effective raw material with excellent environmental performance for the production of cup lids, this material will provide environmental benefits at a cost 20 to 30% lower than conventional PLA bioplastic lids. New lid tooling in currently in production. Aesthetically designed to enhance the experience of drinking a take out coffee. Extending your brand. The new tooling was specifically designed to provide a cost effective way for customers to emboss a message or image onto the centre part of the cup lid, allowing BioPak customers to extend their brand message. 8oz BioCup and uni-lid Extending our range in response to market demands within 3 months we will be introducing a 10oz single and double wall cup with 90mm lid as well as a 6oz single wall cup. Biobased PE coated cups. Biobased plastics are rapidly becoming the preferred choice for companies looking for ways to reduce the environmental impact of their products. Often biodegradable plastics have limited applications and this is where conventional plastics made from renewable resources fill the gap. Working with the leader in this field we are currently trialling polyethylene board coating made from sugar cane.

6 what s in your cup? Knowing what resources are consumed to create a paper cup allows us to identify and address the areas that have the largest environmental impact. Raw materials (Paper & Plastic) account for the highest proportion of CO 2 emissions of a conventional paper cup.the production (Combinig and converting the raw materials into a finished product accounts for 29% of the CO2 emissions. The end of life disposal option accounts for 18% of a cups CO 2 emissions. Transporting a cup from the production facility to the consumer accounts for 5% of the CO 2 emissions. Lifecycle C0 2 emissions at each stage - Hot Cup PE Cup PLA Cup Material Production Transport Raw Material Embodied Emissions per item (kgc02e) Production Embodied Emissions per item (kgc02e) Lifecycle C0 2 emissions at each stage - Cup Lid Material Production Transport Raw Material Embodied Emissions per item (kgc02e) PS Lid PLA Lid Production Embodied Emissions per item (kgc02e)

7 PATNER WITH US & benefit We add value to your brand not only through the quality of our product offering and the associated environmental benefits, but also with our ability to partner with you and assume all responsibility for forecasting, warehousing and distributing. We guarantee you will never run out of stock. Partner with us Superior quality product Multiple cup sizes with matching lids for 4oz, 6oz, 8oz & 12oz lids Cups with A grade food standards in the country of supply and consumption Consistent manufacturing and packing standards Excellent and consistent print quality Branded boxes clearly labelled Customer service excellence Excellence in customer service is part of the BioPak difference Utilising a cloud based enterprise resource platform that provides us with accurate real time data across all products at all locations allows us to monitor and analyse trends in demand to ensure that you never run out of stock We are proactive and focused on your business, this allows us to identity distribution efficiencies and pass on the savings. We manage your inventory using historical sales data and always having sufficient buffer stock to ensure you never run out of product Environmentally responsible and innovative Environmental responsibility is in the BioPak DNA We are constantly reviewing and revising the product life cycle of each of all our products. We ensure you are using the most sustainable manufacturing processed and raw materials on the market We offset carbon emissions at each stage of our products lifecycle including production, transportation and disposal Comprehensive solutions Ability to receive orders at one centralised point from any of the locations below and deliver to multiple locations direct Local contact, warehousing and distribution in each location: Australia New Zealand Competitive pricing All warehousing and delivery costs are integrated into our product unit pricing No hidden costs

8 Customer service EXCELLEnce Customer services is a crucial part of the BioPak difference. We make is a point to work with our clients as partners. This way we can work towards the same goals. Partners We integrate into you company as a partner. We do this to really understand the nuances of your business, enabling us to add value across logistics, delivery, warehousing and lead generation. Excellent customer service Our customer care is second-to-none. The efficiency of our systems allow us to provide what you need when you need it. DE payment terms 95 days from end of month Delivery without delay Another BioPak innovation is our custom freight booking application. This sophisticated piece of software provides access to a massive fleet vehicles and a variety of delivery options unmatched by any other packaging supplier, enabling us to dispatch all orders on the same day they are received and deliver them in the quickest and most cost effective way possible. Business integration As a BioPak customer the client is able to leverage the inventory managemanet and order prediction smarts of our custom developed ERP platform with a sophisticated order predictor that constantly monitors and analyses inventory data and automatically raises purchase orders enabling us to provide you with the guarantee you will never run out of stock. customer service, logistics and inventory management teams are able to order for you. We can guarantee that you will never run out of stock.

9 BioPak S ERP/CRM global Systems At BioPak we have implemented Netsuite, a cloud based ERP/CRM solution. NetSuite is the world s largest cloud based ERP/CRM solution running off an Oracle platform. The platform allows us to scale up infinitely and to expand and replicate our operations into other geographic locations in a matter of days. This short clip is one produced by NetSuite Our warehouse & logistics management systems are seamlessly integrated into our ERP platform. Orders received via fax, , online or phone, are captured into the system and electronically routed to the relevant warehouse. Warehouse staff equipped with portable devices receive picking slips and all stock items identified with bar codes are scanned as they are picked, once orders are fulfilled, freight is automatically booked. This solution is automated from start to finish and ensures extremely efficient and high accuracy order fulfilment. In our quest to streamline operations and improve our efficiency further, we are willing to offer complete integration for cup and lid inventory and order entry functions directly into our back office at no cost. Options include a simple portal allowing clients to place orders directly in our system or a more complex integration that monitors stock levels at all locations and combined with current and historical consumption data will then automatically generate PO alerts that can be either manually or automatically fulfilled. Due to our significant investment in and development of a robust integrated and automated inventory, logistics and warehouse management solution we have the ability to provide you with the option to outsource large volumes of daily deliveries to every client across Australia and New Zealand, and can guarantee same day dispatch for all orders placed before 1pm. The BioPak solution provides clients with the option to expand, without the need to add and manage additional warehousing and customer deliveries. Even if utilised only for emergency, over capacity situations or future planning, we believe there is significant value in leveraging BioPak s world class systems, proven logistics and delivery ability. Our IT and logistics strategy has been specifically designed and developed with our customer requirements in mind, to provide them with a valuable and strategic advantage that no other packaging supplier is able to offer. We currently process all orders at our Sydney office and dispatch to all locations throughout Australia and New Zealand. All orders are captured, processed and picked within two hours of order receipt. Taking into account a number of different time zones, all orders received before 1pm (at relevant local time) are despatched on the same day. While all customer service functions are performed by our Australian and New Zealand teams, we have established an office in the Philippines that provides administrative support from 7am New Zealand time to 6pm Perth time. This gives us the ability to process 90% of all electronic orders within 20 minutes of receipt whilst still meeting all above stated service levels. We have through ongoing investments in systems and back office infrastructure demonstrated our intent to ensure that as we grow our pricing remains competitive and our level of service and customer care remain the best in the industry in all locations where we have a presence.

10 A comprehensive solution Australia Warehousing BioPak has warehousing in Sydney, Melbourne, Brisbane and Perth that services the whole of Australia. All orders to these locations received before 1pm are despatched same day, unless requested differently. Minimum inventory level BioPak ensures there is sufficient stock to meet demand with a minimum buffer of one month of inventory. Our minimum inventory level policy has allowed us to ensure product continuity even when faced with these significant increases in demand. Delivery without delay We know how important it is to maintain sufficient inventory and we always ensure you get your orders without delay. All orders are dispatched on the same day they are received. From our warehouse locations across Australia we offer free freight to most cities and BioPak subsidised freight to remote locations (conditions apply). New South Wales Sydney Free freight and same day delivery Rest of NSW BioPak subsidised freight and mostly overnight delivery Victoria Melbourne Free freight and same day delivery Rest of Victoria BioPak subsidised freight and mostly overnight delivery Queensland Brisbane Free freight and same day delivery Rest of QLD BioPak subsidised freight and mostly overnight delivery Western Australia Perth Free freight and next day delivery Rest of WA BioPak subsidised freight and mostly 2-3 day delivery Northern Territories Darwin BioPak subsidised freight and mostly 5 day delivery Rest of WA BioPak subsidised freight and mostly 5-6 day delivery ACT Canberra Free freight and next day delivery Tasmania Hobart & Launceston BioPak subsidised freight and 3 day delivery Rest of TAS BioPak subsidised freight and mostly 3-4 day delivery South Australia Adelaide Free freight and next day delivery Rest of SA BioPak subsidised freight and mostly 2 day delivery BioPak offers free or subsidised freight if you are not in a free freight area, BioPak will pay between 50-60% of the freight costs All delivery times above apply to orders received before 1pm Free freight and BioPak subsidised freight applies to orders of 4 or more cartons Free freight Same day dispatch Never run out of stock

11 A comprehensive solution Free storage Free artwork No deposit Draw & pay as you need New Zealand Warehousing BioPak has warehousing in Auckland that services the North Island and South Island. All orders to these locations received before 1pm will be despatched same day, unless requested differently. Minimum inventory level BioPak ensures there is sufficient stock to meet demand with a minimum buffer of one month of inventory. Delivery without delay We know how important it is to maintain sufficient inventory and we always ensure you get your orders without delay. All orders are dispatched on the same day they are received. Auckland & North Island Auckland Free freight and same day delivery Rest of North Island Free freight and next day delivery South Island Free freight and two day delivery BioPak offers free freight and prompt delivery Same day delivery applies to orders received before 10am Next day and two day delivery applies to orders received before 1pm Auckland Free freight applies to orders of four or more cartons North & South Island Free freight applies to orders of more than NZ $1,000 (excluding GST) Free freight Same day dispatch Never run out of stock