Interim Management Statement

18 July 2012

RPC Group Plc

Interim Management Statement

RPC Group Plc is issuing the following Interim Management Statement ahead of its Annual General Meeting to be held today at 12:00 p.m. at Painters' Hall, 9 Little Trinity Lane, London EC4 2AD.

Performance in the Period

Revenues (on a constant currency basis) in the first quarter of the financial year 2012/13 (1 April - 30 June 2012) were on a similar level to last year with growth in higher added value products such as coffee capsules continuing whilst the activity levels in the Spanish and UK markets remain generally subdued. Capital expenditure continues to run above depreciation level as significant investments in growth areas such as pharmaceutical products and coffee capsules are being made. The strategic exit from mainland European vending cups and automotive components announced in January 2012 is progressing to plan. The closure of the Superfos plant in Runcorn (UK) and the associated transfer of the business to other sites was successfully completed. Polymer prices reached record levels in May before falling significantly in June with further reductions occurring in July.

Operating profit (before restructuring and impairment charges) in the first quarter was satisfactory and in line with management expectations with the performance benefiting from the improved sales mix and further Superfos synergies. As expected gross margins were negatively impacted by the time lag in passing through polymer price variations to the customer base, this is anticipated to reverse in the second quarter as selling prices adjust upwards and raw material costs fall. The cash flow performance was satisfactory and the Group's financial position has improved compared with the same period last year. Significant head room is available under the Group's financing facilities.

Commenting on the performance in the period, Ron Marsh, RPC's Chief Executive Officer said:

"It is encouraging to see that the operating profit level achieved in the first quarter is in line with our expectations despite the general macro-economic weakness and having not yet fully recovered the polymer price increases. With the growth in higher added value products set to continue, I am confident that RPC is well positioned to deliver on its strategy."

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