Interim Management Statement

Interim Management Statement

6 May 2010

Rexam PLC, the global consumer packaging company, today issues its interim management statement for the period from 1 January 2010.

First quarter results for the Group were ahead of our expectations, with improved volumes in Beverage Cans, and Plastic Packaging performing in line with our plans. Our cost reduction initiatives remain on track. 

In Beverage Cans, European volumes grew due to a strong performance in specialty cans. In the Americas, volumes in North America were in line with the market, which was down 1%, due to good progress in specialty cans, whilst the business in South America continued to grow strongly. The execution of the cost reduction programme in Beverage Cans is complete and will reduce costs year on year by about £19m in 2010. Profits in Beverage Cans are somewhat higher than we anticipated at this stage, although it is early in the year, and there remains uncertainty in Russia.

In Plastic Packaging, volumes in Personal Care are showing some signs of recovery and performance in Healthcare was broadly stable versus last year despite increased pricing pressures. As expected, Closures continued to decline due to weak demand for carbonated soft drink and bottled water closures. Cost reduction initiatives to close and consolidate eight plants and reduce the workforce by approximately 10% are on track to deliver the expected £24m year on year savings in 2010. Overall, our trading outlook for Plastic Packaging remains unchanged.

Net debt at March 2010, at just under £2bn, was up on December 2009, mainly due to our normal seasonal inventory build and £100m of foreign exchange translation movements. The ratio of net debt/EBITDA on a banking covenant basis was 2.2x (Q1 2009: 2.9x). Our committed bank facilities maturing in 2011 and 2012 have been refinanced for 5 years to 2015 at better rates than our existing facilities. The rate reduction will only marginally affect the 2010 interest charge as most of our outstanding debt is in bonds.

Graham Chipchase, Rexam's Chief Executive said:

"Trading in the first quarter was encouraging, with Beverage Can volumes better than expected in Europe and North America. However, it is still early in the year, and trading in the traditionally busy summer season will influence our full year performance. As previously expected, we are seeing some recovery in Plastic Packaging, although Closures remains weak. The execution of our cost reduction initiatives and our continued focus on cash generation gives us confidence of improved performance in 2010."

Enquiries

Rexam

Graham Chipchase, Chief Executive +44 20 7227 4100

David Robbie, Finance Director

Sandra Moura, Head of Investor Relations

Financial Dynamics

Richard Mountain +44 20 7269 7291

Rexam will host a conference call for investors and analysts on Thursday 6 May at 08:00 (UK time).

Participants dial-in number:

UK 0808 238 9699

From abroad +44 (0) 7906 8509

A replay service will be available until 20 May, 2010 Dial-in no: +44 (0) 20 3364 5943 Password: 266745#

Notes to Editors

Rexam is a leading global beverage can maker, and a major global player in rigid plastic packaging. Our vision is to be the best global consumer packaging company. We are business partners to some of the world's most famous and successful consumer brands as well as young, entrepreneurial start-ups. We offer a broad range of packaging services and solutions for different industries, using different materials and technologies. Three things characterise us - leadership in our industry, our commitment to innovation and our passion to deliver exceptional value. We employ some c.23,000 people in more than 20 countries and are a member of the FTSE 100. Rexam's ordinary shares are listed with the UK Listing Authority and trade on the London Stock Exchange under the symbol REX. For further information, visit Rexam's website at www.rexam.com