Constantia Flexibles Company Presentation
Global production network: 53 plants in 23 countries 4 5 9 8 11 6 10 2
Leading manufacturer of flexible packaging Serves multinational corporations and local market leaders #2 in Europe, #4 globally 53 production plants in 23 countries 3 divisions ~48% aluminum-based products ~44% film-based products ~8% paper-based products Headquartered in Vienna, Austria Shareholders: Wendel Group (~61%), H. Turnauer Stiftung (~27%) Maxburg Capital Partners (~11%) 1.9 bn in sales 140 sales countries >4,000 customers >10,000 employees* *incl. Afripack and Pemara 3
Sales by region and division 2015 Sales by region Labels Sales by division Asia Middle East/Africa 3,5% 5,0% Pharma; 14,5% America 26,4% (USA/Mexiko) 65,1% Europe Labels; 28,3% Food; 57,2% 4
Management Board Alexander Baumgartner (Chief Executive Officer) Dr. Gerold Riegler (Chief Operating Officer) 5
Executive Committee Executive Vice Presidents Stefan Bogoll (Food North America) Stefan Grote (Food Europe) Friedrich Humer (Food Emerging Markets) Pierre-Henri Bruchon (Pharma) Mike Henry (Labels) 5
The 4 Ps of packaging at the heart of our business Preservation Ensures longer shelf life Barrier functions against UV light, moisture, oxygen, and seal integrity Hygiene standards Protection Puncture resistance Burst strength Tamper evidence Promotion Promotional text Customer convenience (microwave ability) Functionality (carrying, opening) Presentation Shape Portion size Essential information 7
Our core values We focus on innovation and quality to make our customers more successful We expand globally with our customers and create value for all stakeholders Customers Kunden Wachstum Growth We have an international team based on a corporate culture of trust, excellence and performance Employees Mitarbeiter Gesellschaft Society & environment & Umwelt We balance economic success with environmental and social responsibility 8
Our customer benefits Experienced people with passion for packaging Complete range of solutions Unrivaled customer service Continuous innovation Global production network Integrated production Long-term partnerships with customers 9
Food solutions Dairy Lidding die cut Lidding reel-fed Processed food Dried food laminates Coffee laminates Confectionery Confectionery foil Confectionery film Processed meat Alu-container systems Bags, Pouches, MAP, Snacks Salted snack laminates Sweet snack laminates 10
Pharma and Home & Personal Care (HPC) solutions Coldform foil Sachet foil Pharma Blister lidding foil Strip pack & suppository foil Home & Personal HPC Care (HPC) Wipe film Doypack foil Sachet foil & laminate Bag-on-Valve laminate Stick pack foil 11
Labels solutions Paper labels Aluminum lid labels for beverage cans Beer, Wine & Spirits Pressure sensitive labels Aluminum foil bottle neck Soft drinks & Water Paper labels Wrap around labels Shrink sleeves In-Mouldlabels In-Mould decoration In-Mould with functionality 12
For our customers we manage the following services Improving sustainability performance Packaging trends Food & beverage contact legislation Packaging engineering Logistics 13
Long-term partnerships with customers More than ten years relationship with the top 10 customers in all three divisions 14
Integrated production Raw material sourcing and rolling Lacquering / Lamination / Extrusion Printing / Cutting Finishing / Aftermarket Service Strategic base material supply within the group Distinctive know-how Selected specialty film extrusion State-of-the-art aluminum foil rolling facility Highly efficient lacquering, coating and lamination In-house lacquer development UV flexo printing including in-line coating Roto gravure printing incl. in-line lamination Wide web conventional flexo printing Offset printing for paper and film Highly optimized diecutting and deep-drawing facilities Bag & pouch making We manage the entire value chain ensuring high quality, quick responses, reliability & flexibility 15
Quality and product safety All sites have implemented a Quality Management System Specifically certified systems in dedicated plants Full traceability of raw materials and processes Raw materials only from approved suppliers Implemented risk management Fulfillment of legal requirements Well-equipped quality labs at our sites Full compliance with customer specifications 16
Continuous innovation through formal process Technology-driven (push) innovation Innovation throughout the product life cycle Idea Feasibility study Product development Marketing & performance analysis Customers CF Customer Academy for training clients staff in flexible packaging 80 R&D personnel Application engineers Product managers Social macro trends (Sustainability, convenience, differentiation, high functionality, barrier protection) Customer-driven (pull) innovation 17
Modern Competence Centers for film, aluminum & polymer films First technical contact to our suppliers to stimulate in-house developments In- and external consultant in the right raw material selection Analytical capabilities Lab equipment to produce small samples and mock-ups Weiden (Germany) Opening 2015 Mühlhofen (Austria) Opening 2012 15 experts working on close to 100 projects every year 30 experts working on close to 100 projects every year 18
Innovative product samples DieCut DryFoil SpearRC New generation cup-lock system with self-developed co-extrusion Increased production safety Cost reduction vs today s standard specification Sustainability support (e.g. 50% aluminum reduction) Reliable protection against moisture cross-diffusion Shelf life extensions Reliable system compatibility PVC-free structure High absorption capacity Recyclable pressure-sensitive label alternative for PET bottles Cost-effective recycling solution 19
Innovative product examples highlights 2015 Die-Cut Lidding Seasonals-Foil CONSTANTIA DryFoil CONSTANTIA Safemax Spear RC Smart Bow Alufoil- Container CONSTANTIA Blister Eco Thermowash 20
Innovation awards 14x EAFA Alufoil Trophies (2012-2015) More than 20 International awards in the last 5 years 21
Strong market position in attractive segments Global #1 Confectionery foil Die-cut lidding Alu-container systems Global #2 Reel-fed lidding Global #2 Blister lidding foils Coldform foils Global #1 Beer labels In-mould labels ~ 56% of sales in attractive markets, where Constantia commands a #1 or 2 position 22
Success story of continuous growth From a leading European supplier Network of medium-sized companies Business focus on Europe Mainly export sales Supplier of packaging materials with focus on aluminum to a global player A group with a mission and a clear strategy Realizing global growth opportunities Multi-domestic production Solution provider with comprehensive material competence Sales 0.7bn 1.0bn 1.9bn Growth through M&A and organic growth 2005 2010 2015 E 2020 Family owned / listed OEP Since March Wendel Group 2015 One of Europe s leading listed investment firms *Compound Annual Growth Rate 23
Growth development over the last 10 years Sales ( mn) and sales growth (%) Operative EBITDA ( mn) and EBITDA growth (%) 1.634 1.712 1.870 105 108 143 139 136 158 170 188 234 256 263 1.213 1.314 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 745 766 1.029 1.026 977 1.047 EBITDA Margin (%) 14,1% 14.1% 13,9% 13,5% 13,9% 15,1% 14,0% 14,3% 14,3% 14,9% 13,9% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 *sales revenue 2015 adjusted by waste sales of 29 million 24
Total Investment 2011-2015: 718 Mio. Acquisitions 40% 60% Capex* Major acquisitions Major CAPEX projects Asaş, Türkei (2011) Parikh, Indien (2013) Spear, USA (2013) Globalpack, Mexico (2013) Afripack, Africa (2015) Pemara, Southeast Asia (2015) Extrusion facility in Austria Expansion of IML production in Belgium Gravure press in Turkey Duplex laminating line in Poland Narrow web-printing presses in America *Capital Expenditures 25
Global trends drive demand for flexible packaging Global trends Factors driving demands Flexible packaging solutions Urbanization Demand for packed food with longer shelf lives From large to small families Packaged food Emerging middle class Purchase based on social demands Premium brand packaging Premium products Demand for premium and functional packaging Significance of marketing / branding Premium and convenient packaging Health Ageing society demands pharma products Health standards in emerging markets rise Pharma packaging Sustainability Smaller carbon footprint Reduction of material thickness, etc. More environmentally friendly packaging 26
Our strategy for long-term profitable growth Strengthening customer relations with multinational companies Consolidation and extension of European market leadership Realizing selected growth opportunities in North America Expansion in the fastest-growing emerging markets Maximization of Group synergy and optimization of operational performance Strong relationships with international corporations Established technological know-how Targeted acquisitions in growth sectors and regions Efficient production sites and processes Strong foundation gives us competitive advantage 27
Sustainability Sustainability means balancing economic success with environmental and social responsibility. This strategy ensures long-term success. Alexander Baumgartner, Chief Executive Officer Corporate carbon footprint goal By 2015 Constantia Flexibles already achieved 45% of its goal to Product & reduce Process CO Sustainability 2 * emissions by 40% from 2005 to 2023. Integrating the whole Supply Chain Progress in reduction of CO 2 - emissions per produced m² 100% Reduction of about 18% 82% 2005 2015 28
Our sustainability policy focuses on our responsibility to the environment and our neighbors Economic responsibility Environmental responsibility Social responsibility Systematic risk management Compliance guidelines Comprehensive quality management Environmentally friendly and resource-sparing production technology, materials and ingredients Ethical sourcing (member of SEDEX) Reduction of environmental pollution, waste & greenhouse gases Extensive measures to protect human rights Zero tolerance of discrimination against employees Social outreach project for disadvantaged groups Group Social Award for outstanding achievement 29
Transparency along the entire supply chain Full disclosure of our CSR KPIs at selected platforms for our stakeholders Aims at improving and social practices by leveraging the influence of global supply chains Two objectives of EcoVadis: Improve performance combining innovative information technologies with shared service expertise on sustainable procurement Reduce costs associated with suppliers CSR performance monitoring Enables companies to Quickly determine their supply chain footprint Encourage and support suppliers to measure and manage material business issues Communicate with them on their performance over time Drive long shared value for the business 30
Our ethical principles Endorsing SEDEX ethical standards Part of Aluminum Stewardship Initiative (ASI) Non-profit member platform dedicated to improving ethical supply standards along the value chain SEDEX focuses on 4 areas Labor standards Health & safety Environment Business integrity Tools for exchanging information include standardized questionnaires and audits (SMETA = Sedex Members Ethical Trade Audit) Non-profit initiative to foster greater sustainability and transparency throughout our industry ASI tries to mobilize a broad base of stakeholders to establish and promote responsible leading practices Across the aluminum value chain In business ethics In environmental and social performance Bauxite mining Refining Aluminum smelting Further processing Recycling 31
The Group Social Award We are committed to integrating social activities at all our site We encourage our employees to support social projects, especially in Constantia s immediate neighborhoods and annually award the best projects. Restoration of Elementary School in Guanos, Mexico Cooking for the homeless at VinziRast house in Vienna, Austria Help for schools and kindergartens in Poland Free employee counseling in private or professional problems in Austria Collaborative art book of mentally disturbed people in the US Internships for young people with disabilities in Poland 32
Number of employees by region* 8,079 + 6 % 8,564** 2,821 Approx. 7,000 in production 2014 2015 Europa Amerika Nahost/Afrika Asien *Full Time Equivalent (FTE) **excl. Afripack and Pemara 33
Experienced people with passion for packaging An attractive employer with a corporate culture focused on employee development Culture & respect Learning & development Rewards & fringe benefits Work beyond country borders Foster proximity and openness Encourage international transfers Collaboration to culture and respect Hiring the best candidates through structured processes Develop employees skills and performance based on three core competencies: Driving customer value, fostering collaboration, passion for results Strategic talent management Design our reward and compensation system in order to: Foster motivation and competitiveness Increase performanceorientation 34
Our employees live operational excellence Operational Excellence is a culture of Leadership Teamwork Problem solving resulting in continuous improvement throughout the organization Focus areas: Optimizing all processes and systems to deliver value efficiently to the customers (with Lean SixSigma* methods) Empowering all employees to improve their processes and systems themselves Learning with and from each other and sharing knowledge ** We create value for our customers 35
PEOPLE. PASSION. PACKAGING. 36