ASX ANNOUNCEMENT DATE: 19 February 2020 Pact Group Holdings Ltd - PDF document

ASX ANNOUNCEMENT DATE: 19 February 2020 Pact Group Holdings Ltd 2020 Half-Year Results Presentation Please find enclosed for release Pact Group Holdings Ltd 2020 Half-Year Results Presentation. Jonathon West Company Secretary For further information, contact: Anita James GM – Finance & Investor Relations T +61 3 8825 4100 This document has been authorised for release by the Board of Directors. PACT GROUP HOLDINGS LTD ABN 55 145 989 644 Building 3, 658 Church Street, Cremorne VIC 3121 Australia T +61 3 8825 4100 F +61 3 9815 8388 W pactgroup.com.au

20 Half Year Results 20 and Strategy Overview Sanjay Dayal – Managing Director and Chief Executive Offjcer Richard Betts – Chief Financial Offjcer 19 February, 2020 Pact Group Holdings Ltd 1 / PACT GROUP HALF YEAR RESULTS - FEBRUARY 2020 ABN: 55 145 989 644

IMPORTANT INFORMATION This Presentation contains the summary information about the current activities of Pact Group Holdings Ltd (Pact) and its subsidiaries (Pact Group). It should be read in conjunction with Pact’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), including the Half Year Consolidated Financial Report and associated Media Release released today, which are available at www.asx.com.au. No member of the Pact Group gives any warranties in relation to the statements or information contained in this Presentation. The information contained in this Presentation is of a general nature and has been prepared by Pact in good faith and with due care but no representation or warranty, express or implied, is provided in relation to the accuracy or completeness of the information. This Presentation is for information purposes only and is not a prospectus, product disclosure statement or other disclosure or ofgering document under Australian or any other law. This Presentation does not constitute an ofger, invitation or recommendation to subscribe for or purchase any security and neither this Presentation nor anything contained in it shall form the basis of any contract or commitment. This Presentation is not a recommendation to acquire Pact shares. The information provided in this Presentation is not fjnancial product advice and has been prepared without taking into account any recipient’s investment objectives, fjnancial circumstances or particular needs, and should not be considered to be comprehensive or to comprise all the information which a recipient may require in order to make an investment decision regarding Pact shares. Neither Pact nor any other person warrants or guarantees the future performance of Pact shares nor any return on any investment made in Pact shares. This Presentation may contain certain ‘forward- looking statements’. The words ‘anticipate’, ‘believe’, ‘expect’, ‘project’, ‘forecast’, ‘estimate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘target’, ‘plan’ and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, fjnancial position and performance are also forward-looking statements. Any forecasts or other forward-looking statements contained in this Presentation are subject to known and unknown risks and uncertainties and may involve signifjcant elements of subjective judgement and assumptions as to future events which may or may not be correct. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Pact and they may cause actual results to difger materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not difger materially from these statements. You are cautioned not to place undue reliance on forward-looking statements. Except as required by law or regulation (including the ASX Listing Rules), Pact undertakes no obligation to update these forward-looking statements. Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. All dollar values are in Australian dollars (A$) unless otherwise stated. Non IFRS Financial Information This presentation uses Non-IFRS fjnancial information including EBITDA, EBIT, NPAT, operating cashfmow, capex, free cashfmow, operating cashfmow conversion, gearing, interest cover and net debt. These measures are Non-IFRS key fjnancial performance measures used by Pact, the investment community and Pact’s Australian peers with similar business portfolios. Pact uses these measures for its internal management reporting as it better refmects what Pact considers to be its underlying performance. EBITDA and EBIT before signifjcant items are used to measure segment performance and have been extracted from the Segment Information disclosed in the Half Year Consolidated Financial Report. All Non-IFRS information has not been subject to review by the Company's external auditor. Refer to Page 32 for the reconciliation of EBITDA and EBIT before signifjcant items. Refer to Page 33 for the reconciliation of operating cashfmows. Refer to page 35 for defjnitions of non-IFRS fjnancial measures. 2 / PACT GROUP HALF YEAR RESULTS - FEBRUARY 2020

Half Year Results 3 / PACT GROUP HALF YEAR RESULTS - FEBRUARY 2020

OVERVIEW Results Summary Lower volumes in some sectors - Revenue down 3% to $885 million • Lower volumes in Australian packaging and weak demand for health and wellness products (pcp: $915 million) • Modest volume growth in Asia and New Zealand - Statutory net profjt after tax of $35 million (pcp: statutory net loss Improved margins after tax of $320 million) • Favourable resin costs have allowed for the part recovery of pricing lags - Excluding the impact of AASB16: • Strong cost management and overhead reductions • Expansion of crate pooling services into the ALDI fresh produce supply chain - EBITDA up 2% to $113 million (pcp: $110 million) Disciplined balance sheet management and improved leverage - NPAT of $37 million (pcp: $36 • Leverage improved and within targeted range at 2.9x (excluding the impact AASB16) million) • Strong operating cashfmows and capital expenditure well controlled • No interim dividend with cash to be retained to fund strategic initiatives and reduce debt Statutory fjnancial results New strategy endorsed and strategic initiatives progressed for the period refmect the adoption of AASB16: Leases. Board has endorsed new strategy to “Lead the Circular Economy”, with several strategic initiatives progressed: Comparatives have not been • A sale process in respect of the Contract Manufacturing division has commenced restated. The Company has • Continued focus on business fundamentals and reinvestment in the core presented results excluding • A MoU with Cleanaway and Asahi to develop local recycling capability impacts of AASB16 to compare • Acquisition of Australian Recycled Plastics (51% share), expanding our recycling footprint current year results to the proior • Expansion of hanger reuse operations to support major contract win in USA year on a consistent basis. 4 / PACT GROUP HALF YEAR RESULTS - FEBRUARY 2020

FOCUSED ON ZERO HARM H1 2020 FY 2019 Lost time injury frequency rate 4.5 4.7 Operational excellence programs and ongoing cultural change initiatives continue to deliver improved safety outcomes 5 / PACT GROUP HALF YEAR RESULTS - FEBRUARY 2020

FINANCIAL RESULTS SUMMARY 1H 2020 1H 2020 Movement $A millions Statutory Excl AASB16 1H 2019 Excl AASB16 Sales revenue 885 885 915 (3%) EBITDA 145 113 110 2% EBITDA margin 16.4% 12.7% 12.0% EBIT 79 71 70 3% EBIT margin 8.9% 8.1% 7.6% NPAT 33 37 36 4% Statutory NPAT 35 35 (320) Operating cash fmow 101 71 42 68% Gearing 1,2 3.8x 2.9x 3.3x 0.4x 1 1H 2020 statutory gearing has been normalised to include a full rolling 12 months impact of AASB16. 2 Changes arising from AASB16 do not impact our current banking arrangements. Covenants are grandfathered applying previous EBITDA defjnitions. 6 / PACT GROUP HALF YEAR RESULTS - FEBRUARY 2020

PACKAGING AND SUSTAINABILITY 1H 2020 1H 2020 Movement $A millions Statutory Excl AASB16 1H 2019 Excl AASB16 21 5 Sales revenue 585 585 615 (5%) (10) 6 EBITDA 96 75 74 0% 96 EBITDA Margin 16.4% 12.7% 12.1% 74 75 EBIT 51 45 46 (1%) H119 Effjciency Input Volume H120 AASB16 H120 EBIT Margin 8.6% 7.8% 7.4% EBITDA and Other costs EBITDA Excl EBITDA AASB16 Effjciency and other Volume - Restructuring benefjts delivered in line with expectation - Lower volume into the dairy, food and beverage sector - Weak demand in the health and wellness sector Input costs - Lower demand in industrial sectors due to unfavorable macro-economic - Net cost benefjt from lower resin input prices, recovering, in part, pricing lags conditions from prior periods 7 / PACT GROUP HALF YEAR RESULTS - FEBRUARY 2020