strictly confidential seizing opportunities sig …

SEIZING OPPORTUNITIESSIG CAPITAL MARKETS DAY

STRICTLY CONFIDENTIAL

Estavayer-le-Lac, 12 November 2019

DISCLAIMER

SIG COMBIBLOC - CMD1 NOVEMBER 19

The information contained in this presentation is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorized to access or use any such information. This presentation may contain “forward-looking statements” that are based on our current expectations, assumptions, estimates and projections about us and our industry. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “may”, “will”, “should”, “continue”, “believe”, “anticipate”, “expect”, “estimate”, “intend”, “project”, “plan”, “will likely continue”, “will likely result”, or words or phrases with similar meaning. Undue reliance should not be placed on such statements because, by their nature, forward-looking statements involve risks and uncertainties, including, without limitation, economic, competitive, governmental and technological factors outside of the control of SIG Combibloc Group AG (“SIG” or the “Group”), that may cause SIG’s business, strategy or actual results to differ materially from the forward-looking statements (or from past results). For any factors that could cause actual results to differ materially from the forward-looking statements contained in this presentation, please see our offering memorandum for the IPO. Nothing contained in this presentation is or should be relied upon as a promise or representation as to the future. It is up to the recipient of the presentation to make its own assessment as to the validity of such forward-looking statements and assumptions.

The information contained in the presentation does not purport to be comprehensive. SIG undertakes no obligation to publicly update or revise any information contained herein or forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. It should further be noted, that past performance is not a guide to future performance.Please also note that interim results are not necessarily indicative of the full-year results. Persons requiring advice should consult an independent adviser. Some financial information in this presentation has been rounded and, as a result, the figures shown as totals in this presentation may vary slightly from the exact arithmetic aggregation of the figures that precede them. While we are making great efforts to include accurate and up-to-date information, we make no representations or warranties, expressed or implied, and no reliance may be placed by any person as to the accuracy and completeness of the information provided in this presentation and we disclaim any liability for the use of it. Neither SIG nor any of its directors, officers, employees, agents, affiliates or advisers is under an obligation to update, correct or keep current the information contained in this presentation to which it relates or to provide

the recipient of it with access to any additional information that may arise in connection with it and any opinions expressed in this presentation are subject to change.

The presentation may not be reproduced, published or transmitted, in whole or in part, directly or indirectly, to any person (whether within or outside such person’s organization or firm) other than its intended recipients. The attached information is not an offer to sell or a solicitation of an offer to purchase any security in the United States or elsewhere and shall not constitute an offer, solicitation or sale any securities of SIG in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or investment decision. No securities may be offered or sold within the United States or to U.S. persons absent registration or an applicable exemption from registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from any issuer of such securities and that will contain detailed information about us. Any failure to comply with the restrictions set out in this paragraph may constitute a violation of the securities laws of any such jurisdiction.

This presentation is not an offering circular within the meaning of article 652a of the Swiss Code of Obligations, nor is it a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange or a prospectus under any other applicable laws.

In this presentation, we utilise certain alternative performance measures, including EBITDA, adjusted EBITDA, core revenue and adjusted net income that in each case are not recognized under International Financial Reporting Standards (“IFRS”). These non-IFRS measures are presented as we believe that they and similar measures are widely used in the markets in which we operate as a means of evaluating a company’s operating performance and financing structure. They may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles, nor should they be considered as substitutes for the information contained in the financial statements included in this presentation.

EBITDA, a measure used by our management to measure operating performance, is defined as profit (loss) before net finance expense, income tax expense, depreciation of property, plant and equipment and right-of-use assets, and amortisation of intangible assets.

Adjusted EBITDA is defined as EBITDA adjusted to exclude certain non-cash transactions and items of a significant or unusual nature including, but not limited to, transaction- and acquisition-related costs, restructuring costs,unrealised gains or losses on derivatives, gains or losses on the sale of non-strategic assets, asset impairments and write-downs and share of profit or loss of joint ventures, and to include the cash impact of dividends received from joint ventures.

Adjusted net income is defined as profit or loss adjusted to exclude certain items of significant or unusual nature, including, but not limited to, the non-cash foreign exchange impact of non-functional currency loans, amortization of transaction costs, the net change in fair value of financing-related derivatives, purchase price allocation depreciation and amortization, adjustments made to reconcile EBITDA to adjusted EBITDA and the estimated tax impact of the foregoing adjustments.

Adjusted EBITDA and adjusted net income are not performance measures under IFRS, are not measures of financial condition, liquidity or profitability and should not be considered as alternatives to profit (loss) for the period, operating profit or any other performance measures determined or derived in accordance with IFRS or operating cash flows determined in accordance with IFRS.

Additionally, adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not take into account certain items such as interest and principal payments on our indebtedness, working capital needs and tax payments. We believe that the inclusion of adjusted EBITDA and adjusted net income in this presentation is appropriate to provide additional information to investors about our operating performance to provide a measure of operating results unaffected by differences in capital structures, capital investment cycles and ages of related assets among otherwise comparable companies. Because not all companies calculate adjusted EBITDA, core revenue and adjusted net income identically, the presentation of these non-IFRS performance measures may not be comparable to other similarly titled measures in other companies.

For additional information about alternative performance measures used by management that are not defined in IFRS, including definitions and reconciliations to measures defined in IFRS, refer to the SIG 2019 Interim Report.

Please note that combismile is currently not available in Germany, Great Britain, France, Italy and Japan.

OUR AGENDAAND PRESENTERS FOR TODAY

NOVEMBER 19 SIG COMBIBLOC - CMD2

1. THE OPPORTUNITY Rolf Stangl

2. SUSTAINABILITY Rolf Stangl

EXTERNAL SPEAKER: MINTEL

3. INNOVATION Markus Boehm

Q&A

4. REGIONAL CASE STUDIES

A. EMEA M. Herrenbrück, A. Eladib

B. Americas Ricardo Rodriguez

EXTERNAL SPEAKER: Alpura – leading Mexican dairy

C. Asia Pacific Lawrence Fok

Q&A

COFFEE BREAK

5. OPERATIONAL EXCELLENCE Ian Wood

6. FINANCIAL PERFORMANCE Samuel Sigrist

7. WRAP-UP AND Q&A R. Stangl, S. Sigrist

Rolf Stangl

Chief Executive Officer

Samuel Sigrist

Chief Financial Officer

Markus Boehm

Chief Market Officer

Ian Wood

Chief Supply Chain Officer

Martin Herrenbrück

President & General Manager, Europe

Lawrence Fok

President & General Manager, Asia Pacific

Ricardo Rodriguez

President & General Manager, Americas

AbdelghanyEladib

Chief Operating Officer,JV MEA

ROLF STANGL

CHIEF EXECUTIVE OFFICER

15 years with SIG, CEO since 2008

Previous positions includeChief Market Officer SIG Beverage Chief Executive OfficerHead of Corporate Development and M&A

WE ARE A LEADING SUPPLIER OF ASEPTIC CARTON FILLING SOLUTIONS Sustainability is at the core of our DNA with carton being the most eco-friendly substrate


UNIQUE SLEEVE-BASED FILLING TECHNOLOGY

▪ Unprecedented reliability, robustness and uptimes

▪ Volume and format flexibility: up to 16 product variants on one filler

▪ Superior filling capabilities for particulate and highly viscous content

▪ Affordable and safe packaging solutions based on lightweight carton structures (e.g., Lite, cb12)

▪ With differentiating packaging and filling solutions (e.g. combidome, combismile, drinksplus, Heat&Go, broad sustainability portfolio) we serve premium beverage categories

▪ With our global integrated footprint and supply chains we support customers locally – unlike most other providers

▪ ~550 service engineers with deep technical expertise and application know-how

WE ARE AT THE HEART OF OUR CUSTOMERS' OPERATIONS


Raw Milk Raw Milk Reception

Raw Milk Storage

MilkPasteuriser

Milk Tanks UHT Filling Line Sleeves & Closures

Outbound Logistics

Consumer

Raw Material Reception Processing Packaging Systems Distribution & Retail

Filling and packaging operations are at the heart of our customers’ operations. The OEE and reliability of our machinery is crucial. With co-investments and long-term contracts we're in true partnerships

Our service engineers are deeply integrated into our customers’ dayto day operations. 550 service colleagues take care of approx. 1,180 filling lines1, ensuring efficiency and sterility

Our packaging solutions are key to our customers’ brand experienceand help them to interact with consumers on- and off-line

1. 2018 data

BUILDING ON LONG-TERMCUSTOMER PARTNERSHIPS WITH GLOBAL AND REGIONAL LEADERS


TOP 10 CUSTOMERS

CUSTOMER LENGTH OF RELATIONSHIP

1 >15 YEARS

2 >10 YEARS

3 >35 YEARS

4 >40 YEARS

5 >30 YEARS

6 >30 YEARS

7 >35 YEARS

8 >35 YEARS

9 >5 YEARS

10 >10 YEARS

TOTAL >25 YEARS ON AVERAGEANNUAL CUSTOMER RETENTION RATE OF ~99%

2018 data

NOVEMBER 19

CONSUMER LED INNOVATION: WE THINK CONSUMERS

New consumption occasions with drinkable snacks

Premiumisejuices through real fruit inclusions

On-the-go breakfast milk with healthy cereals

Add perceptible value: Tomato passata with real tomato chunks

Deliver nutritious soups with food particulates

Target new consumers with rich protein drinks

SIG COMBIBLOC - CMD7

Innovation process starts with observation of consumer behaviour, pain points and needs

Testing and prototyping in two established test centres in Europe and China

Co-development of beverage products with customers in our test filling centres

Test trials with consumers in supermarkets

GLOBAL FOOTPRINT1 WITH INTEGRATED SUPPLY CHAINS

Aseptic carton share3

(volume)End-markets2

LEADING SYSTEMS AND SOLUTIONS PROVIDERFOR ASEPTIC PACKAGING


1. Core revenues 2. Estimated volume split (B liters) 2018; Other: wine, syrups, water, etc.3. Share of global aseptic liquid dairy, non-carbonated soft drinks & aseptic/retort liquid food carton supply in core geographies excl. Japan, India, Peru, Argentina, Chile in 2018

Note: Financials and other statistics as of December 31, 2018 unless noted otherwiseSource: Company information (FY 2018) and SIG Market Study

#2 globally in resilient and growing end-markets

Around 1,180 fillers in the field

Razor/razor-blade business model with long-term customer relationships

Core revenue €1.64bn

Track record of growth and margin expansion

Adj. EBITDA margin 27.5%

Post-tax ROCE20.6%

21

1465

Food

Liquid dairy

Non-carbonated-soft drinks

Other

Other

Tetra Pak

SIG

25%

6%

2%

67%

18%Americas

37%Asia Pacific

45%EMEA

THE OPPORTUNITY

NOVEMBER 199 SIG COMBIBLOC - CMD

01

02

03

05

06

07

Key trends fuelling our business1.1

Growth outlook: From total addressable to the aseptic carton market

1.204

FOUR MAJOR TRENDS AND THEIRIMPACT ON THE ASEPTIC CARTON INDUSTRY


THE OPPORTUNITY Key trends

04SUSTAINABILITY & GOING GREENImpact of packaging on the environment is monitored by regulators, NGOs, brand owners and consumers

DEMANDING CONSUMERSInnovative packaging and filling solutions required to meet demand for “on the go”, differentiation and convenience

GROWING DEMAND FOR PROCESSED FOODSafe and affordable packaging solutions required to serve the growing middle class in developing markets

EFFICIENT AND SAFE SUPPLY CHAINFood safety and cost pressure drive packaging and machinery suppliers to increase efficiency and transparency

GROWTH OF PROCESSED FOOD AND DEMANDING CONSUMERS

PROCESSED FOODGROWING 2X RATE OF GLOBAL POPULATION


THE OPPORTUNITY

Size 2018

Growth(CAGR '18-'30)

Population with access to

processed food

Global spend for processed foodGlobal population

+2.4%

€2.4T

+1.2%

7.3B people7.6B people

+1.1%

Key trends

+1.1B people by 2030

Source: United Nations, Euromonitor, Company information

Loose milk & beveragesSales via un-organized market

Sweetened milkPouch

Still fruit drinks and plain milk (single serve)

Flavoured milk

<5.000 5.000-15.000 15.000-45.000 45.000-100.000 >100.000

ASEPTIC CARTON CATERS TO NEEDS OFCONSUMERS ACROSS CLASSES AND REGIONS


THE OPPORTUNITY

0

2,500

5,000

7,500

10,000

12,500

POOR POOR & UPCOMING ASPIRANT EMERGINGESTABLISHED/UPPER

CLASS

Avg. yearly household spend Food & non-alcoholic Beverages ($)

India MEA AM-S AP-N AP-S EU AM-N

Growing demand

Household income groups in PPP-$

Key trends

Ambient drinking yogurtPlain white milk

Milk alternatives

Source: Euromonitor, Company information

ASEPTIC CARTON PACKAGING SHOWS HIGHEST GROWTH RATES


THE OPPORTUNITY Growth outlook

2017-2022 CAGRS

92BLitres of aseptic carton

229BLitres of ambient packaging

Aseptic carton packaging of liquid food

and beverages

533BLitres of beverages

579Bkg of packaged food

579B KG OFPACKAGED FOOD

533B LITRES OFBEVERAGES

Ambient packaging of liquid food and

beverages

Packaging for food and beverages

+3.6%+2.8%+2.6%

Core geographies and categories

67B

Additional geographies2

22B

Aseptic carton92B

Other substrates137B

Ambient packaging 229B

Fresh packaging 85B

Other 220B

Packaged food579B

Additional categories1

3B

1. Additional categories include alcoholic beverages, water, nutritional, medical and sports drinks (carton only) 2. Includes 47 countries outside SIG’s current core geographiesCompany information

SHAPING THE FUTURE OFASEPTIC CARTON ACROSS REGIONS


THE OPPORTUNITY Growth outlook

2017 20232022

AMERICAS

2017 20232022

EUROPE

MEA APAC

2017 20232022 2017 20232022

CAGR '17-'22

3.4%

5.7%

0.1%

6.5%

25

35 38

1317 18

2125 26

33 33 33

Source: Company information

SAFE AND AFFORDABLE PACKAGING AND FILLING SOLUTIONS

▪ Filling flexibility for customers to adjust to shifts in market demand and run multiple products on one filler

▪ Safe and affordable packaging formats (Lite, cb12) for transition from pouch and/or powder milk

PIONEERING IN SUSTAINABLE PACKAGING SOLUTIONS

▪ Our cartons with lowest CO2 footprint compared to other packaging alternatives

▪ Our SIGNATURE PACK is the world’s first aseptic pack 100% linked to plant-based renewable

material with aluminium-free design

EFFICIENT PACKAGING OPERATIONS AND SAFE SUPPLY CHAINS

▪ SIG's integrated global supply chain - we support our customers locally

▪ In partnership with our customers we constantlyimprove line efficiency

▪ Connected pack enables transparency along supply chain

DIFFERENTIATING PACKAGING SOLUTIONS FOR PREMIUM CATEGORIES

▪ Format/filling flexibility to cater for SKU proliferation

▪ Low waste rates to minimise losses of premium ingredients

▪ Particulate filling capabilities to meet on-the-go/snacking trend

SIG IDEALLY POSITIONEDTO MEET MARKET AND CONSUMER TRENDS


THE OPPORTUNITY SIG's strengths

CLEAR GROWTH AGENDATO UNLOCK MARKET OPPORTUNITIES


THE OPPORTUNITY Growth Agenda

RESILIENT END-MARKETS

STRONG FILLER BASE AND RECENT INVESTMENTS

CONTINUED CONSUMER-LED INNOVATION

EXPLOIT WHITE SPACE OPPORTUNITIES

ACCELERATE EXPANSION IN FAST GROWING NICHE SEGMENTS

SUSTAINABILITY


01

02

03

05

06

07

Our responsibility ambition2.1

Aseptic carton advantages over alternative substrates

2.204

RESPONSIBLE COMPANYPursuing a net positive corporate footprint in the long run

TOP 1%of over 30,000 businesses in 2017, Ecovadis Gold rated responsibility

1 OF 100 companies globally with science-based CO2 reduction target in place

RESPONSIBLE SOURCINGStriving for certified sustainable supply of all materials, products and services

100%of sleeves shipped covered by FSCTM

COC1 certification2

ASI certificationResponsible aluminium sourcing

RESPONSIBLE PRODUCTSInnovating and delivering smarter solutions with proven sustainability across the entire life-cycle

PROMOTING RECYCLING infrastructure and awareness

ALL ASEPTIC CARTONS fully recyclable

70-80% average renewable content of all cartons

COMBATTING CLIMATE CHANGEAND INCREASING RECYCLING


SIG’s ULTIMATE GOAL IS TO CONTRIBUTE MORE TO SOCIETY AND THE ENVIRONMENT THAN WE TAKE OUT ACROSS OUR VALUE CHAIN

1. Forest Stewardship Council TM Chain of Custody2. 98% of products labelled with FSCTM

SUSTAINABILITY Our responsibility ambition

2030 GOALHalve value chain environmental impacts and double societal benefits while meeting business growth targets

2030 GOALAll raw materials from certified responsible sources and 50% of total sourcing spend on net positive suppliers

2030 GOALOffer customers the most sustainable food packaging solutions on the market

SIG ASEPTIC CARTON PACKAGINGSUSTAINABLE BY NATURE


RENEWABLE

OUR BEVERAGE CARTONS ARE ON AVERAGE MADE OF 75% PAPERBOARD, A RENEWABLE MATERIAL.

RESPONSIBLE

100% OF THE PAPERBOARD USED TO MANUFACTURE OUR CARTONS COMES FROM PAPER MILLS THAT HAVE AN FSCTM CERTIFIED CHAIN-OF-CUSTODY.

RESOURCE EFFICIENT

THE BEVERAGE CARTON INDUSTRY NOW PRODUCES 40% MORE CARTONS WITH THE SAME AMOUNT OF WOOD FIBRES AS 20 YEARS AGO.

RECYCLABLE

ALL THE MATERIALS USED IN BEVERAGE CARTONS ARE RECYCLABLE.

LOWEST CARBON FOOTPRINT

OUR CARTONS PERFORM BEST COMPARED TO OTHER PACKAGING ALTERNATIVES PROVEN BY LIFE CYCLE ASSESSMENTS.

SUSTAINABILITY Responsible company Responsible sourcing

Affordable &sustainable packaging

Responsible products

LIQUID DAIRY NON-CARBONATED SOFT DRINKS

FOOD

LOWEST CARBON FOOTPRINT:CARTONS WIN EVERY TIME


kg CO2 equivalent per packaging required for 1,000L UHT milk

Beveragecarton

HDPE bottle PET bottle

-45%

-34%

85 129 155


kg CO2 equivalent per packaging required for 1,000L non-carbonated soft drinks

Beveragecarton

MonolayerPET bottle

MultilayerPET bottle

Disposableglass bottle

88 121 145 295

-70%

-39%

-28%

SUSTAINABILITY

Asepticcarton

Pouch Pot Can Glass

224 378 540 580 609

-63%-61%-58%

-40%

kg CO2 equivalent per packaging required for 1,000L food

Responsible products

GO BEYOND (25-75% LESS) WITH SIG :

EcoPlusalu-free structureand/orSIGNATURE PACK Plant-based plastics

-20-75%

*1 50% PCR scenario would reduce the impact to 106 g

*2 50% PCR scenario would reduce the impact to 132 g

*3 Includes 59% recycled glass

*4 Includes 5,8% post-consumer recycled material

*5 Includes 59% recycled glass

European average (EU27)/IFEU Institute Heidelberg using ISO 14040 international standard

CONTRIBUTING TO A CIRCULAR ECONOMY WITH FOCUS ON SOURCING, INNOVATION AND COLLECTION & RECYCLING



SUSTAINABILITY Our responsibility ambition

DRIVE RESPONSIBLE SOURCINGFor all primary materials

INCENTIVISING USE OF RENEWABLE MATERIALS AND/OR BIO-BASED

Unique packaging innovation

ENSURING THAT ALL RECYCLABLE PACKAGING IS RECYCLED

Efficient collection is base for effective recycling

SOURCING FROM RESPONSIBLY MANAGED FORESTSTRACEABLE WORLDWIDE AND VERIFIED FSCTM

CHAINOF CUSTODY CERTIFICATION

SIG BEVERAGE CARTON PRODUCTION & INNOVATION

75%paperboard

21%polymers

4%aluminium

SIG pioneering and driving with FSC sourced wood fibre

1st in plant-based plastics and recycled plastics

First with ASI certified aluminium / unique offer of aluminium-free

CONSUMPTION RE-USE

COLLECTIONRECYCLING

20 EU1

beverage cartonrecycling plants

beverage cartonsrecycled 2018 in EU, increasing tendency

49%1

PALUREC & MORE

beverage cartonrecycling innovation

SIG encourage collectionssystems worldwide, e.g. Brazil

SOMA

GRACE

SIG is member of global recycling alliance for beverage cartons

1. The Alliance for Beverage Cartons and the Environment

INNOVATION


01

02

03

05

06

07

A holistic approach: Consumer-led innovation made by SIG

3.1

Technology solutions as main R&D focus area

3.204

MARKUS BOEHM

CHIEF MARKET OFFICER

15 years with SIG and Chief Market Officer since 2009

PREVIOUS POSITIONS INCLUDEChief Executive Officer, ChinaChief Financial Officer, ChinaPrior leadership positions at Hilti and P&G

Addressing multiple customer and consumer needs

Growing with combiblocXSlim(co-development with Friesland) Small packages with volume flexibility down to 80 ml for various categories to increase convenience

Traceability solutions

7

Supply chain solutions

6

Service solutions

5

End-to-end design solutions

3

Digital marketing solutions

8

Filling line solutions

4

Packaging solutions

2

1

OUR PROMISEExcellence – Engineered.

Solutions – Delivered.

Product solutions

EXCELLENCE – ENGINEERED.SOLUTIONS – DELIVERED


INNOVATION SIG promise & solutions

SIGNIA SIGNATURE PACKfor environmentally aware consumers

drinksplus (co-developmentMengniu) Allowing customers to access new consumer groups and consumption occasions

Transforming & Modernising PlantsGreenfields, brownfields and E2E solutions for customer plants

360 Asset ManagementDigitalised asset management enabling condition-based maintenance

One-Click TrackingUnique QR code empowering consumers to track food to production origin

INCREASING REVENUE OPPORTUNITIESWITH CUSTOMERS BEYOND PACKAGING SOLUTIONS

SLEEVE & FILLING TECHNOLOGY:THE SIG PLATFORM ENABLING A BROAD AND FLEXIBLE OFFERING


Innovation

VOLUME AND FORMAT FLEXIBILITY

Rapid switching to cater for changing needs while keeping asset utilisation high

▪ Up to 16 product variants possible on one filler

▪ Range of fill volumes from 80ml to 2,000ml across portfolio

MODULAR OPTIONS TO UPGRADE INSTALLED BASE

Different filler and product features can be added with distinct advantages

FORMAT FLEXIBILITY (format change <10 min)

VOLUME FLEXIBILITY (volume change <5 min)

DRINKSPLUS FOOD OPTION HEAT & GOSIGNATURE

PACKSPOUT & STRAW APPLICATIONS

▪ High viscosity filling

▪ Particulates

▪ Paper straws

▪ Convenience for consumers

▪ Filling of soups and sauces

▪ Particulates

▪ Microwaveable for hot drinks

▪ Aluminium-free

▪ Plant-based renewable material

▪ Aluminium-free

INNOVATION Modular SIG platform

CONSUMER RESEARCHETHNOGRAPHIC RESEARCH CAPTURES MULTITUDE OF CONSUMER PREFERENCES

OBSERVEGAIN A DEEP UNDERSTANDING BY OBSERVING ARTICULATED AND UNARTICULATED CONSUMER PROBLEMS AND NEEDS (E.G., NO CONTENT LEAKAGE BETWEEN SIPS)

DOMAINCONDENSE THESE CONSUMER INSIGHTSINTO ACTIONABLE “GROUP NEED” AREAS IN ORDER TO GENERATE STRUCTURED IDEAS (E.G. ON-THE-GO)

PROTOTYPEWORK WITH LEADING EXPERTS AND AGENCIES TO DEVELOP COMPREHENSIVE CONCEPTS/MOCK-UPS AND SOLUTIONS(E.G., DIFFERENTLY SHAPED SMALL-SIZE PACKAGES WITH SINGLE-ACTION CLOSURE)

TESTFUNCTIONAL TEST WITH ACTUAL CONSUMERS THROUGHOUT THE ENTIRE CONSUMPTION JOURNEY (E.G., CHOOSE, TRANSPORT, USE, DISPOSE)

CONSUMER-LEDINNOVATION


Innovation

INNOVATION Consumer-led innovation

COMBISMILE:END-TO-END SOLUTION INCLUDING DRINKSPLUS INNOVATIVE PRODUCT SOLUTIONS


COMBISMILE AS PLATFORM CATERING TO KEY GROWING CATEGORIES

Differentiation for premium

categories

INNOVATION Technology solutions

WHITE MILKAMBIENT YOGURT + PARTICULATES

FLAVOURED MILK + PARTICULATES

DAIRY ALTERNATIVES

COMBISMILE VARIANTS

ADDRESSED TRENDS

combismileSmallwith straw

combismileSmallwith combiGo

combismileBigwith straw

combismileBigwith combiGo

Premiumisation

Convenience

Premiumisation

Convenience

On-the-go

Convenience

On-the-go

Premiumisation

HOT DRINKS SHOW A GROWING POTENTIAL FOR EXPANSION INTO READY-TO-DRINK VARIANTS.

COFFEE AND TEA: ONE OF THE MOST IMPORTANT “EVERYDAY CONSUMPTION” BEVERAGES FOR A LARGE AND GROWING SEGMENT OF THE WORLD’S POPULATION.

NEW GROWTH OPPORTUNITIES FOR BRANDS TO SERVE A RANGE OF NEW PRODUCTS FOR NEW CONSUMPTION OCCASIONS.

HEAT&GOINNOVATIVE PACKAGING SOLUTIONS


01MICROWAVE DRINKS WITHOUT COMPROMISING PROTECTION AND PRODUCT QUALITY

02UNIQUE INNOVATION FROM SIG, NEW PACK SOLUTIONS FOR HOT DRINKS

03SIMILAR BARRIER FUNCTION & SHELF-LIFE AS STANDARD STRUCTURE

04USES EXISTING FILLERS: FAST TIME TO MARKET



categories

GE Digital – SIGPARTNERSHIP

DIGITAL SERVICEGE Digital - SIG

DIGITAL SERVICE –PARTNERSHIP WITH GE DIGITAL



Efficiency and safety

Enhanced customer service and TCO1

• Frontrunner in Industrial IoT

• Track record in asset monitoring and predictive maintenance (oil & gas, wind turbines, jet engines etc.)

• System business

• ~1,180 fillers

• Connected filling lines providing “live” data for >20yrs

• Deep understanding of our customers’ operations

• Improve asset efficiency and productivity

• Increase service levels

• Reduce capex and opex(labour cost)

• Improve quality within customers’ operations

• Avoid out-of-stock situations and reduce inventory costs

• Improve customer satisfaction

Partnership to establish a first-in-industry integrated digital solution for asset monitoring and service delivery based on predictive analytics

1. Total cost of ownership

RAMP-UP OF EXISTING AND NEW TECHNOLOGIES

• COMBISMILE EXPANSION INTO NEW AND GROWING CATEGORIES, E.G. AMBIENT YOGURT, DAIRY ALTERNATIVES, VEGETABLE PROTEIN DRINK, YOGURT DRINKS, AMBIENT FLAVOURED MILK

• TOTAL SOLUTIONS OFFERING – UPSTREAM, DOWNSTREAM AND FORMULATIONS

• PRODUCT CONTENT AND PACKAGING DIFFERENTIATION

• CLOSER TO OUR CUSTOMERS AND PARTNERING IN INNOVATION

• CATERING FASTER TO INNOVATION CYCLES, ESPECIALLY IN APAC

Tw

o T

ec

h

Ce

ntr

es

Linnich

China

WE TEST

Innovative structures, new shapes, product formulations

Upstream, downstream, product formulations

OUR CUSTOMERSCAN TEST

Consumer trials

WE LETCONSUMERS TEST


THREE-FACETED TESTING ENHANCED BY NEW REGIONAL TECH CENTRE IN CHINA

NEW REGIONAL TECH CENTRE IN CHINA

INNOVATIONInnovation

Technology solutions


01

02

03

REGIONAL CASE STUDIES

05

06

07

04

EMEA4.1

Americas4.2

Asia Pacific4.3

MARTIN HERRENBRÜCK

PRESIDENT & GENERAL MANAGER, EUROPE

13 years with SIG and President & General Manager, Europe since 2017

PREVIOUS POSITIONS INCLUDEHead of Cluster Asia - Pacific SouthHead of Global MarketingCorporate Development Roles

EMEAKEY FIGURES

NOVEMBER 1933

ASEPTIC CARTON SHARE (2018)

33.5%ADJ. EBITDA MARGIN1

(2018)

€733mCORE REVENUE1

(2018)

Tetra Pak

Other

SIG

16%

25%58%

5%

71%

24%

Europe Middle East Africa

1 Consolidated EMEA reporting segment

50/50MEA: JOINT VENTURE WITH OBEIKANINVESTMENT GROUP FOUNDED IN 2001

EUROPE AT A GLANCE


DAIRY AND JUICE PROCESSING MARKETS HIGHLY CONSOLIDATED, PLAYERS WITH HIGH LEVEL OF TECHNICAL EXPERTISE AND FOCUS ON EFFICIENCY AND COST

FLAT OR SLIGHTLY DECLINING VOLUMES IN CERTAIN CATEGORIES (E.G. WHITE MILK)

GROWTH FROM EMERGING CATEGORIES SUCH AS PLANT-BASED DAIRY ALTERNATIVES, FOOD OR WATER AS NEW CATEGORIES FOR CARTON

TWO STRATEGIC THRUSTS ON GO-TO-MARKET

DEFEND AND SELECTIVELY GROW WITH EXISTING CUSTOMERS

WIN NEW CUSTOMERS AND CATEGORIES WHILE BROADENING THE EUROPEAN REACH

PROLIFERATION OF SKUS AND FLEXIBILISATION OF THE VALUE CHAIN E.G. VIA CO-PACKERS

SIG'SGO-TO-MARKET STRATEGY

ENABLED BY SIG’S CORE STRENGTHS IN

OPERATIONAL EXCELLENCE

INNOVATIVE AND SUSTAINABLE PACKAGING SOLUTIONS

ADVANCED AFTER-SALES SERVICES

UPGRADED SOLUTION SELLING APPROACH

REGIONAL CASE STORIES Europe


REGIONAL SUCCESS STORIES

DEFEND AND SELECTIVELY GROW WITH EXISTING CUSTOMERS

WIN NEW CUSTOMERS AND BROADENING THE REACH

(Spain, 2016) (Portugal, 2017) (Austria, 2016) (Ireland, 2017) (Germany, 2019) (Poland, 2018) (UK, 2019) (Finland, 2019) (BA, 2018) (France, 2017) (UK, 2019) (Germany, 2017)

Advanced solutions offerings to deliver customised solutions

Development of innovative and sustainable packaging solutions

Extension of after-sales service offerings

Sales approach and tools to strengthen sales effectiveness and efficiency

Upgrade of sales tools and processes (e.g., CRM system, sales cycle, holistic pricing)

Solution-based selling model

Europe

GO-TO-MARKET TO DEFEND AND GROW

GAINING VOLUME SHARE THROUGH NEW CUSTOMERSAND WINNING REPLACEMENT PROJECTS



Key Reasons for Wins

Format andVolume

Flexibility

TCO Advantage

Holistic Service Solutions –

Wins in Green and Brownfield

Innovation –Product Design and Concepts

# New / Contracted Fillers

1

3

1

1

2

4

1

2

1

3

1

3

1

1

1

2

2

2

1

1

6

2

1

2

6

Region

East

West

East

East

South

South

North

Central

Central

East

South

Central

South

Central

East

Central

North

South

North

East

North

Central

Central

South

Central

Timeline of New Projects: Significant wins 2016/H2-2020/H1

2016/H2 2017 2018 2019 2020/H1

Aug-16

Oct-16

Q4/17

Jun-17

Jun-17

Aug-17

Apr-17

Q4/17

May-17

Jun-17

Aug-17

Q1/17

Jun-17

Q2/18 Q4/18

Q2/18

Q4/18

Q4/18

Q4/18

Q3/18

Q4/18

Q4/18

Q3/18

Q4/18

Q1/18

Q3/19

Dec-19

Q1/19

Q3/19

Q1/19

Q4/19

Q3/19 Q4/19

Q219 Q4/19

Q1/19

Q1/19 Q2/19

Q3/19

Q3/19 Q4/19

Q1/19

Q1/19

Q2/19

New Customer

Existing Customer

First FillerPlaced

Additional fillersplaced

Volumeramp-up

Europe

SIG OFFERED DIFFERENTIATION AND A NEW LEVEL OF CONVENIENCE WITH COMBIDOME PACKAGING SOLUTION. CONCEPT DEVELOPMENT OF NEW SKUS TO LEVERAGE SIG’S VOLUME FLEXIBILITY AND TO ATTRACT NEW CONSUMER GROUPS

INSTALLATION OF 3 FILLING LINES AND SUCCESSFUL MARKET LAUNCH OF TYMBARKPRODUCT RANGE.

UNLOCKING NEW CONSUMPTION OCCASION AND TARGET GROUPS BY INTRODUCING 500ML ON-THE-GO “VEGETABLE JUICE” SKUS

MASPEX NEEDED TO REFRESH CONSUMER APPEAL FOR ITS NATURAL FRUIT JUICE RANGE AND TO REJUVENATE AND STRENGTHEN TYMBARK BRAND

▪ MASPEX IS MARKET LEADERIN NCSD WITH NO. 1 JUICE BRAND TYMBARK IN POLAND

▪ SUCCESSFUL PARTNERSHIP WITH SIG SINCE 2001

▪ 10 SIG LINES RUNNING IN 3 PLANTS

INCREASING SHARE OF WALLET:HELPING MASPEX TO INNOVATE



SOLUTION: OUTCOME:OPPORTUNITY:


categories

Europe

SIG PROVIDING HIGHEST SYSTEM QUALITY LEVEL,ADDED VALUE SERVICE AND REDUCING TOTAL FILLING COST THROUGH SUPERIOR LINE EFFICIENCY

PASSING 24-MONTHS SYSTEM AND PERFORMANCE TEST AND THEREBY QUALIFYING AS STRATEGIC PARTNER OF COVAP

SUCCESSFULLY CONCLUDING ON PHASE 1 OF TECHNOLOGY UPGRADE PROGRAM AND FIRST FILLING LINES PLACED FOR COMMERCIAL PRODUCTION

COVAP NEEDED TO UPGRADE AND INCREASE CAPACITY WHILE IMPROVING TOTAL QUALITY AND PRODUCTION EFFICIENCY

COVAP IS A LARGE DAIRY COOPERATIVE IN SPAIN

RELYING EXCLUSIVELY ON COMPETITOR'S SYSTEM IN THREE PLANTS

A LONG-TERM PARTNER AND A LEADING SUPPLIER OF RETAILER


NEW CUSTOMER WINS:HELPING COVAP TO ELEVATE OPERATIONAL EXCELLENCE


REGIONAL SUCCESS STORIES Europe

Efficiency and safety

EVERYONE LOVES OUR PACKS


REGIONAL SUCCESS STORIES Europe

ABDELGHANYELADIB

CHIEF OPERATING OFFICER, MEA

Joined SIG Combibloc Obeikanin 2017 as Chief Operating Officer

PREVIOUS EXPERIENCE INCLUDES26 years of Food & Beverage industry experience in various leadership positions including P&G, Cadbury, Bel Foods, and Mars


REGIONAL CASE STORIES Middle East Africa

2018 sales

€275m

50/50joint venture with ObeikanInvestment Group founded in 2001

REGIONAL HEADQUARTERS

SLEEVE PLANT

MIDDLE EAST AFRICAAT A GLANCE


MARKETS RECOVERING FROM CHALLENGING CONDITIONS IN 2018

POSITIVE LONG-TERM TRENDS

DRIVEN BY GROWTH IN MIDDLE-INCOME HOUSEHOLD EXPENDITURE AND IN POPULATION

FOCUS ON TECHNICAL ROBUSTNESS AND FLEXIBILITY OF OUR OFFER

RISING DEMAND FOR CONVENIENT ON-THE-GO PACKAGED PRODUCTS

DUE TO CHANGING CONSUMPTION BEHAVIOURS, E.G. AT WORK


REGIONAL CASE STORIES

PARTNERING WITH CUSTOMERS TO DRIVE DIFFERENTIATION AND INNOVATION

FOCUS ON AFFORDABILITY WHEN NEEDED

DEVELOPMENT OF SMART FACTORY SOLUTIONS

E.G. ALMARAI PLANT 360 ASSET MANAGEMENT

NEW INNOVATION AND RELIABILITY CENTRE IN DUBAI

Middle East Africa

ENABLING EXPANSION IN DAIRY NIGERIA:NEW PRODUCT DESIGN FOR HOLLANDIA




categories

Middle East Africa

SIG’s 125ml combiblocMinipack: perfect filling quantity and shelf perception at an affordable price

125 ml carton has better shelf appearance than 160 gr can

Consumers judge quantity by height

Hollandia evaporated milk sales increased to 6 million packs per month 6 months after launch

Hollandia is a leading dairy brand in Nigeria

To provide a convenient, affordable single use evaporated milk product


SIG’s filling line size flexibility enabled switch from 6x200ml multipacks for 6SAR to 6x150ml for 5SAR with improved margins and without further investment

Following Almarai the entire Saudi flavoured milk market shifted to 150ml. Almarai became market leader in this segment

Almarai aiming to increase margins and market share in single serve flavoured milk category

PRODUCT DIFFERENTIATIONAND ASSET EFFICIENCY




categories

Middle East Africa

Almarai is the leading food and beverage company in the Middle East

SIG installed the first global pilot of Plant 360 AM at Almarai factory: change to condition-based maintenance

Digitalisation Targeting higher line availability and improved asset health for Almarai

Controlled costs for SIG


RICARDO RODRIGUEZ

PRESIDENT & GENERAL MANAGER, AMERICAS

16 years with SIG and President & General Manager, Americas, since 2015

PREVIOUS POSITIONS INCLUDEDirector & General Manager, South AmericaTechnical Service Director, South America


83%


REGIONAL CASE STORIES Americas

ADJ. EBITDA MARGIN (2018)

27.2%

CORE REVENUE (2018)

€297m

AMERICAS – KEY FIGURES

16%1%

Tetra Pak OtherSIG

AMERICASAT A GLANCE




USA / CANADA

Predominantly a fresh milk market but strong growth in plant-based milks in aseptic carton

Rise of small brands using co-manufacturing models

BRAZIL

Second-largest aseptic market globally

Consolidation of dairy players

Key trends are affordability, naturalness, premiumisation

MEXICO

6th largest aseptic carton market globally

Strong growth in white milk consumption driven by growing share of recombined milk

USA / CANADA

Developing strong relationships with US/Canadian co-manufacturers, e.g. Steuben

Delivering formats and designs for new categories

BRAZIL

Filling solutions improve customer efficiency and enable affordable products

New digital solutions ensure traceability

MEXICO

Serving key players in highly concentrated liquid dairy and juice markets

Extending share with affordable filling and packaging solution, e.g. Alpura with white and recombined milk

Americas

SIG proposed a solutionfor switching two lines to one filler. New line can fill three different product categories on the same filler.

Lower production footprint

Higher output

Lower energy and water consumption

Reduced manpower

Reduced waste and higher technical efficiency

Quata worked with competitor’s fillers for milk.

Chose SIG for TCO in milk and to enter new categories of sweetened condensed milk and liquid cream/ flavoured milk.

BRAZILMEETING MARKET TRENDS – AFFORDABILITY


REGIONAL SUCCESS STORIES Americas



categories

Quata – One of Brazil’s largest milk producers

"One Click Tracking" for better traceability to assure qualityand food safety

End-to-end supply chain control through fully automated data collection

QR code became Languiru’s quality stamp. One-to-one consumer communication and engagement led to increased sales

Languiru needed to recover consumer trust and deliver profitable growth by leveraging consumer interaction with the brand

BRAZILMEETING MARKET TRENDS – TRACEABILITY





categories

Languiru– One of Brazil’s largest producers of meat, poultry and dairy products

Americas

US/CANADA:LEVERAGING CO-MANUFACTURERS TO GROW IN HOT NEW SEGMENTS



Differentiation for premium categoriesEfficiency and safety

CO-MANUFACTURING MODEL ENABLES BROAD ACCESS AND PENETRATION IN FRAGMENTED MARKET

EXAMPLE: STEUBEN

Leading US co-packer for multiple low acid products with access to leading brands

Focused on value added product application and packaging innovations

Patented processing and ingredient technologyStrategic partner with 8 installed fillers

Americas

5 key players represent ~80% of carton volume

MEXICO:GROWTH IN LIQUID DAIRY WITH THE LEADING PLAYER



▪ Largest dairy cooperative in Mexico▪ 2nd largest aseptic milk producer in Mexico

▪ Began in 2015 with installation of first filler for evaporated milk as an alternative to the can

▪ Recent launches include Forti Leche brand for recombined milk, the fastest and largest growing white milk category in Mexico – based on affordable filling and packaging solution

Partnership with alpura

LD NCSD

SIG Mexico’s 2nd largest customer with 7 installed fillers

2019

>75%

<25%

Others

<30%

>70%

1.9 bn

litres

1.4 bn

litres

Others

alpura – Largest dairy cooperative in Mexico

Americas

WHITE MILKDRIVING EXPANSION

LAWRENCE FOK

PRESIDENT AND GENERAL MANAGER, APAC

7 years with SIG and President & General Manager, Asia Pacific since 2012

PREVIOUS EXPERIENCE INCLUDESManagement positions at Norgen, Alcan Global Pharmaceutical and SCA Packaging




58%

ADJ. EBITDA MARGIN (2018)

30.3%

CORE REVENUE (2018)

€598m

ASIA PACIFIC – KEY FIGURES

23%

19%

Tetra Pak OtherSIG

Asia Pacific

ASIA PACIFICAT A GLANCE


MARKETS DRIVEN BY DEMOGRAPHICS

rising disposable income, urbanisation

INCREASING DEMAND FOR

convenience, health & wellness, premium and sustainable products

STRONG RELATIONSHIPS

with China’s leading dairies Yili and Mengniu and with Friesland Campina, DPO & Lactasoy in South East Asia

AFFORDABILITY

still a primary consideration for many customers



FOCUSED NEW CUSTOMER DEVELOPMENT STRATEGY

building upon SIG's quality, flexibility, reliability and competitive TCO

NEW PRODUCTS AND FORMATS

to expand into new categories

CHINA DEMAND FOR

premium milk growing by 7% p.a.

RAPID INNOVATION CYCLES

INNOVATION in partnership with customers: launch of combismile, Heat&Go, new regional tech centre

REGIONAL EXPANSION

through acquisition of Visy Cartons and new factory in China

Asia Pacific

CHINABUILDING OUR RELATIONSHIP WITH YILI AND MENGNIU



Mengniu#10 dairy globally1

Yili#8 dairy globally1

PREMIUMISING NEW CATEGORY

Entering new “ambient yogurt” category

Higher viscosity – more texture for more taste

Packaged in combismileSmall200ml

Only high quality ingredients

TRUE ON-THE-GO CONSUMPTION

Fibre shake milk with cereals as meal replacement,

Packaged in combismileBig250ml with combiGo Big

New selling channel/platform on WeChat

EXPLORING NEW CATEGORIES

GuoguoXi is an added-value yogurt smoothie with rich fruit juice and fruit pieces

Packaged in combismileSmall220ml with combiGo Small

Launched with the famous Chinese actress Zhou Dongyu’stestimonial

SHUHUA MILK IN NEW PACKAGE

No. 1 functional milk in China with 37% market share in sales value

New Shuhua SKU in new packaging and size – premium whole fat functional milk

Packaged in combismileSmall220ml

Patented LHT lactose hydrolysis technology

Asia Pacific

1. MARKETING92

https://www.google.de/url?sa=i&source=images&cd=&ved=2ahUKEwisxpW7t4fbAhUBHRQKHaTaBvIQjRx6BAgBEAU&url=http://logok.org/yili-logo/&psig=AOvVaw1shpIgbVhsWS7pOj22pYDe&ust=1526463943353490

DPO THE DAIRY FARMING PROMOTION ORGANIZATION OF THAILAND



Efficiency and safetySustainable packaging

DPO's volume share in mainstream milk market

Thai-Denmark: One of Thailand's most chosen & admired brands

Iconic Thai Denmark UHT milk in SIG Cb1 aseptic packaging

2015 2018Share of total

volume

49%

DPO

51%

OthersOthers

44%56%

DPO

Share of total volume

Asia Pacific

Source: Nielsen Retail Index, DPO

Locations of DPO’s dairy plants

EXPANSIONOF SIG’S PARTNERSHIP WITH DPO



Efficiency and safetySustainable packaging

Evolution of SIG share at 4 DPO aseptic plants

20182015

~20%

2016

~25%

~50%

2017

~75%

~1.25

Competition~1.13

~1.30 ~1.33

SIG attributed Muaklek Phase 2

SIG attributed Muaklek Phase 1

B sleeves (packaging units)

SIG offer:▪ Line efficiency: 24k packs/hour▪ Volume flexibility▪ Lowest waste rate

Chiang Mai - Pasteurized

Sukhotai - UHT

Khonkaen - UHT

Muaklek - Flagship - UHT

Prachuapkhirikhan - UHT

100% SIG fillers

100% SIG fillers

Asia Pacific

Source: Company information, DPO

HIGHLIGHTS

LICENSEE WITH LEADING POSITION IN AUSTRALIA

23 ACTIVE FILLERS

SIGNIFICANT SCOPE FOR SYNERGIES• SUPPLY CHAIN OPTIMISATION• INTRODUCTION OF LATEST TECHNOLOGY AND

SOLUTIONS

REVENUE FY JUNE 19: €52M1

OPPORTUNITIES FOR GROWTH

ANZ MARKET GROWING AT 3% CAGR OVER NEXT 5 YEARS2

DAIRIES INVESTING TO EXPORT MILK TO CHINA AND OTHER ASIAN COUNTRIES

EXPANSION OF VISY BUSINESS IN NEW ZEALAND

ENTERING INTO NEW MARKETS:AUSTRALIA AND NEW ZEALANDACQUISITION OF VISY CARTONS


REGIONAL CASE STORIES Asia Pacific

1 At current exchange rates 2 Source: Euromonitor, company information

INDIA MARKET PROJECTIONS

CUSTOMERSUCCESS STORIES

New customer Amul this year – largest dairy player with 63% share of white milk market

Second contract this year with Dabur –largest juice and nectar player with 58% market share

Ladhani Group

Customers value volume flexibility and ability to fill particulates enabling them to launch value-added “premium economy” products

KEY UNDERLYING TRENDS

Rising Indian urban middle class drives growth in demand for aseptic products – largest loose milk market in the world

Demand for more convenience and new/differentiated products

Regulation in favour of carton vs. plastic in selected states

ENTERING INTO NEW MARKETS



LD ASEPTIC

1,000

1,870

1,968

2017 2023

1,111

+10.0%

CAGR (P.A.)

Carton Others

+11%

2023

1,350

2017

4,031

3,000

8,015

CAGR (P.A.)

+20%

NCSD ASEPTIC

INDIA SIG OPPORTUNITY

Build a strong #2 position

Launch new value-added products with particulates

+17.8%

Asia Pacific



01

02

03

04

OPERATIONAL EXCELLENCE05

06

07

Taking manufacturing to the next level from a strong base

5.1

Proven raw material strategy5.2

Disciplined CAPEX approach providing support for tangible growth

5.3

IAN WOOD

CHIEF SUPPLY CHAIN OFFICER

Joined SIG in 2018 as Chief Supply Chain Officer

PREVIOUS EXPERIENCE INCLUDES15 years at Honeywell as VP & General Manager of various business units as well in the Supply Chain function initially

REGIONALLY INTEGRATED GLOBAL FOOTPRINT


OPERATIONAL EXCELLENCE Next level manufacturing

Wittenberg

Linnich

Neuhausen¹

Saalfelden

Riyadh

Suzhou

RayongCuritiba

Whakatane LPB

Australia

Melbourne

Sleeve production Assembly Spouts production

LOCALISED SLEEVE AND SPOUT MANUFACTURING

ADVANTAGESOF LOCALISED PRODUCTION

▪ Lower lead time

▪ Lower transportation cost and duties

▪ Natural hedging for production cost

▪ Lower NWC due to reduced safety stock

1. Represents approx. 30% of spout productionSource: Company information

SIG Excellence System delivers world-class manufacturing

SIG EXCELLENCE SYSTEM



STRATEGY & KPI DEPLOYMENT

SafetyPlanned

MaintenanceQuality

MaintenanceLean Flow

Focused Improvement

Autonomous Maintenance

Innovation & Early Involvement

Training & Education

SIG EXCELLENCE

SAFETY, QUALITY, DISTRIBUTION, COST

Daily Management Improvement

Lean Administration

Leadership & Cultural Change CIS Organisation

SES with lean principles deeply embedded into plant operations model

The SES journey is tracked by annual maturity assessments

Balance between performance and practice

Basis for improvement roadmaps, standardisation and best practice sharing

PROVEN RAW MATERIALS STRATEGY WITH CYCLICAL RESILIENCE



KEY MATERIALS KEY THIRD PARTY SUPPLIERS SUPPLY DETAILS

Whakatane(internal)

• Largest raw material cost

• Historically experienced relatively stable pricing

• Long-term strategic partnerships with key suppliers

LPB(~49% of raw material spend)

• Pricing follows an index based pricing formula

• Variation in price based on balance of polymer production capacity and demand

• Hedging strategy in place

Polymers(~27% of raw material spend)

• The two main cost components are aluminium-metal and aluminium-conversion costs (50:50 split)

• Globally traded commodity with prices subject to global market factors

• Hedging strategy in place

Aluminium(~15% of raw material spend)

Source: 2018 data

DESIGNING FOR VALUE


REDUCING MATERIAL INPUT WHILE IMPROVING QUALITY AND CUSTOMER VALUE

LDPE

Board

LDPE

Adhesive

Al foil

Adhesive

LDPE

mPE

LDPE

Board

Robust layer

Adhesive

Al foil

Adhesive

mPE

Robust layer

LDPE

LDPE layers of current structure

RS structure adaption

No changes of structure

RobustStructure (RS)

Incumbent SXStructure

Sealing

SX RS

REDUCED MATERIAL CONTENT

INCREASED ROBUSTNESS due to change of internal LDPE layers

IMPROVED ENVIRONMENTAL PERFORMANCE with improved CO2

footprint of up to 6%

KEEPING PROVEN PROPERTIES for barrier, stiffness, printability, opening, recyclability

Operational window

Security buffer

Operational window

Security buffer

Security bufferSecurity buffer

Tem

per

atu

re



CAPITAL EXPENDITUREWELL CONTROLLED


OPERATIONAL EXCELLENCE Disciplined CAPEX approach

70 7360 57

PPE CAPEX (€M)

4.1% 4.2%3.6% 3.4%

TOTAL PPE CAPEX AS % REVENUE

▪Plant automation and digital manufacturing▪European plants transformation▪Robust sleeve structure

▪ Capacity expansion – Brazil, Asia, spouts▪ Proprietary quality assurance systems▪ SIG Tech Centre in China

SELECTED MAJOR PROJECTS

CONTINUED INVESTMENT TO SUPPORT GROWTH AND COST EFFICIENCY

2015 2016 2017 2018

ROBUST DEMAND FOR LIQUID DAIRY IN CHINA AND SOUTH EAST ASIA LEADING TO HIGH CAPACITY UTILISATION AT CHINESE AND THAI PLANTS

NEW PLANT TO BE CONSTRUCTED AT SUZHOU INDUSTRIAL PARK

OPERATIONAL AND OVERHEAD SYNERGIES WITH EXISTING PLANT

LOCATED CLOSE TO NEW SIG TECH CENTRE: COMPREHENSIVE ABILITY TO SERVE CUSTOMERS

TOTAL INVESTMENT €180M OVER SEVERAL YEARS

FINANCED WITHIN EXISTING CAPEX GUIDANCE

GOVERNMENT SUBSIDIES

ONSTREAM EARLY 2021

EXPANSION OF PLANT NETWORK IN ASIA PACIFICTO SUSTAIN FURTHER GROWTH IN THE REGION

Operational excellence Disciplined CAPEX approach


OPPORTUNITY TO ACCELERATE PAYBACK WITH VISY ACQUISITION


01

02

03

04

FINANCIAL PERFORMANCE

05

06

07

Financial resilience6.1

Financial outlook6.2

SAMUEL SIGRIST

CHIEF FINANCIAL OFFICER

14 years with SIG, CFO and Chairman of Middle East JV since 2017

PREVIOUS POSITIONS INCLUDEPresident & General Manager Europe (2013-2017)Director of Group Controlling & ReportingHead of Finance / CFO EuropeHead of Group Projects

SEIZING OPPORTUNITIES AND DRIVING GROWTHREVENUE GROWTH TARGET 4%-6%1


FINANCIAL PERFORMANCE Financial resilience

Well positioned in aseptic carton market which is outperforming other substrates

Track record of share gain through differentiated technology and excellence in customer service

Strong presence in growth regions with favourable demographics and socio-economic trends

Consumer-led innovation meeting and anticipating rapidly evolving trends

State-of-the art production and filler flexibility enable SKU proliferation

Sustainability leader : a pioneer in sourcing and innovating for greener products

1. Core revenue growth at constant currency

Essential role in preserving food quality and safety

Long term customer relationships

Serving non-discretionary food and beverage categories

Complete solutions offering enabling customers to maximise efficiency and productivity

Proprietary differentiated technology

KEY ROLE IN FOOD & BEVERAGEVALUE CHAIN



RAZOR / RAZORBLADE BUSINESS MODELGENERATING STABLE CASH FLOWS


FILLERS 6% (OF TOTAL REVENUE2)

SERVICE 6%(OF TOTAL REVENUE2)

SLEEVES & CLOSURES 88% (OF TOTAL REVENUE2)

Year 0 Year 2 Year 4 Year 6 Year 8 Year 10

Attractive IRR

CU

M. C

AS

H F

LO

W1

FILLER INSTALLED

+

2-3 Year breakeven on new filler placements


Key criteria for investment decisions

DYNAMIC PAYBACK IRRGROSS PROFIT

BEFORE DEPRECIATION

Key filler placement models

SALE LEASESALE AND LEASE ARRANGEMENTS

Accounting treatment

Cost capitalised as fixed assets and depreciated over 10 years

Upfront cash recognised as deferred revenue

HIGH CUSTOMER RETENTION AND RECURRING SALES

1. Illustrative chart based on consistent gross margin throughout customer relationship2. Revenue split based on revenue generated through sale of system components and sleeves & closures for 2018

ABILITY TO GENERATE GROWTH AND INCREASE PROFITABILITY THROUGH THE CYCLE


ADJ. EBITDA MARGIN 24% 29% 28% 23% 24% 24% 26% 25% 27% 27% 28%

ADJ. EBITDA – CAPEX2 MARGIN 16% 23% 19% 14% 16% 15% 18% 18% 18% 17% 19%

281 341 389 342 389 409 417 436 467 455 462

1.163 1.167

1.294 1.355

1.4831.546 1.568 1.563 1.590 1.644

2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A

1,4831,546

1,494 1,563

TOTAL REVENUE (€M)

CORE REVENUE1 (€M)

ADJ. EBITDA (€M)

CONSTANT CURRENCY

CORE REVENUE1 GROWTH

%

%

1,163 1,1671,294 1,355

1,568 1,590 1,644


5% 3

2008-18 REVENUE CAGR:

4%

2008-18 ADJ. EBITDA CAGR:

5%

2008-18 ADJ. EBITDA MARGIN EXPANSION:

~400BPS

ROCE:

>20%3

1. Core revenue represents the revenue to external customers and excludes (i) sales of laminated board (LB) to the Middle East Joint Venture and (ii) sales of folding box board (FBB) to third parties 2. Capex represents Net Capex calculated as Gross Capex less Upfront Cash 3. Post-tax ROCE presented above is calculated by adjusting pre-tax ROCE by applying a 30% REFERENCE TAX RATE to the pre-tax ROCE

2008 2014 2018

INCREASING FOCUS ON GROWTH REGIONS


Financial performance Financial resilience

Core revenue: €1,163m Core revenue: €1,494m Core revenue: €1,644m

EMEA

77%

ASIA PACIFIC

17%

Non-EMEA23%

AMERICAS 6%

Adj. EBITDA: €281m

AMERICAS

17%

EMEA

54%ASIA PACIFIC

29%


Non-EMEA46%

EMEA

45%

ASIA PACIFIC

37%

AMERICAS

18%

Non-EMEA55%


CURRENCY AND RAW MATERIALS HEDGINGTO MANAGE VOLATILITY


Further mitigation of transaction risk in EBITDA, on top of natural hedging

Systematic hedging of key currencies vs EUR: CNY, THB, BRL, USD

6-12 month rolling layered approach

Multi-year contracts for liquid paper board

12 month rolling hedges for aluminium and polymers covering ~80% of purchases


LOW BETA REFLECTS RESILIENCE OF BUSINESS


SIG beta reflects strong non-cyclical resilience

Beta as per 01/11/2019

Packaging peers1 Industrial peers2

0.43 0.56 1.04

Low beta in line with attractive financial profile (top line growth, industry-leading margins)

Robust business model against a backdrop of stable end markets

Best-in-class defensiveness evidenced during the 2008-09 financial crisis


1. Packaging peers include Ball, Amcor, Crown, Sealed Air, Berry Global, Huhtamaki, Silgan, BillerudKorsnas, Aptar and Vidrala2. Industrial peers include: Atlas Copco, Kone, Schindler, Assa Abloy, Legrand, Geberit, Halma, Alfa Laval, Spirax-Sarco, GEA, VAT Group, Georg Fischer, Renishaw, Sulzer, Rotork, Belimo, SFS Group, IMA, Landis + Gyr,

Burckhardt, Bobst, Nordson and ITW

KEY FINANCIAL METRICS FOCUSED ON PROFITABLE GROWTH AND RETURN ON CAPITAL


Core revenue

€1.6bnTarget4-6% growth p.a.at constant currency

Adjusted EBITDA margin

27.5%Target27-28% in 2019~29% mid-term

2018 data

Net CAPEX€143m (8.5% of revenue)Target8-10% of revenue

Net working capital

€114m (6.8% of revenue)Target5-7% of revenue mid-term

Adjusted net income1 €213m

ROCE Post tax 20.6% -Pre-tax: 29.4%

Leverage3.2xTargetTowards 2.0x mid-term

Adjusted EPS1

Free cash flow1

Cash conversion

€0.66

€212m

69%


1. Pro forma

LOW WORKING CAPITAL BASE FURTHER SUPPORTS CASH FLOW



€m 2018 2017 2016

Inventory 144 122 126

Trade receivables 135 173 153

Trade payables (166) (153) (165)

NET WORKING CAPITAL 114 143 113

% REVENUE 6.8% 8.6% 6.6%

OTHER RECEIVABLES / PAYABLES1 (179) (133) (74)

OPERATING NWC (66) 10 39

% REVENUE (3.9%) 0.6 % 2.3%

1. Including accruals for volume bonuses to customers settled in following yearDifferences due to rounding

CAPITAL EXPENDITURE REMAINING WITHIN TARGET RANGE - CLEAR HURDLE RATES



CAPEXOutlook

2015-18: Accelerated filler investment in Asia Pacific and Americas

2019-24: PPE investment in new China plant (front-loaded)

Net capex to remain within 8-10% of revenue range

CAPEX filler (net)

CAPEX PPE

Total CAPEX

(net) % of rev.

2015 2016 2017 2018

7.2% 9.2% 9.9% 8.5%

70.1

54.6

73.1

86.3

60.1

104.1

86.2

57.0

124.7

159.4164.2

143.2

ROCE AS REFERENCE POINTFOR INVESTMENT HURDLE RATES



(in €M or %) 2018

Adjusted EBITDA 461.5

Dividends received from joint ventures (23.7)

Depreciation of PP&E (172.3)

ROCE EBITA 265.5

Current assets (excluding cash and cash equivalents) 407.3

Current liabilities (excluding interest-bearing liabilities) (574.3)

PP&E 1,068.8

Capital employed 901.8

Pre-tax ROCE 29.4%

ROCE tax rate of 30% 30.0%

Post tax ROCE1 20.6%

In 2018, pre-tax ROCE Outlook

Net PP&E will increase with investment in new plant

Reduction in net working capital targeted (in line with target of 5-7% of revenue)

Ongoing investment in fillers with rapid payback criterion maintained – cash flow break-even in 2-3 years

Business growth expected to more than compensate for growth in capital employed

1. Post-tax ROCE is calculated by adjusting pre-tax ROCE by applying a 30% tax rate, which management has determined reflects a reference tax rate to provide comparability between years

LEVERAGE


FINANCIAL PERFORMANCE Leverage

€M

2019H1

2018A

CashSenior secured term loans

Lease liabilities1 Net total debtTOTAL NET LEVERAGE RATIO

79 1,577 45 1,543

157 1,592 26 1,462

3.3X

3.2X

STRONG CASH FLOW GENERATION

S&P RATING BB+MOODY’S UPGRADE IN OCTOBER 2019: FROM BA3 TO BA2

TARGETING INVESTMENT GRADE RATING

MID TERM LEVERAGE TARGET TOWARDS 2X

1. Lease liabilities include €14m related to the adoption of IFRS 16Differences due to rounding

CLEAR PRIORITIES FOR USE OF FUNDS


FINANCIAL PERFORMANCE Use of funds

State of the art production facilities to meet demandNew filler placements

€99M (CHF 0.35 per share) paid in 2019

End-2018 net leverage ratio 3.2x: end-2019 expected to be slightly lower

Net capex to remain within 8–10% of revenue range

Target payout ratio:50–60% of adjusted net

income

Mid-term target towards 2×

Invest in the business Dividend payout Deleveraging

KEY INVESTMENT HIGHLIGHTS


WRAP-UP Key investment highlights

WINNING BUSINESS MODEL ENABLING GROWTH

STRONG FINANCIAL PROFILE

Global leadership – strong #2 globallyA

Resilient growing end marketsB

Proprietary technology and engineering know-how

C

End to end solutions with value-adding support and service

D

Longstanding customer partnership modelE

Consumer-led innovationF

Best-in-class margins and strong cash flow generation

G

Multi-faceted growth strategyH

ATTRACTIVE INDUSTRY CHARACTERISTICS

THANKYOU

NOVEMBER 19

strictly confidential seizing opportunities sig …

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