Investor Day - Focused Growth Strategy

5 November 2013

RPC Group Plc

FOCUSED GROWTH STRATEGY AND

FINAL PHASE OF FITTER FOR THE FUTURE

RPC Group Plc ("RPC" or "the Group"), Europe's leading rigid plastic packaging supplier, will hold a Capital Markets Day this afternoon to update the market on its Focused Growth Strategy, which includes new Key Performance Indicators ("KPIs"), and to announce the Final Phase of its Fitter For The Future programme.

Focused Growth Strategy: Vision 2020

Today RPC unveils Vision 2020, its Focused Growth Strategy, which will build on its strong market positions, leading innovation capabilities and the success of its investment programmes over the past three years. The key components of Vision 2020 are to:

· continue growing organically in selected areas of the plastic packaging markets;

· selectively consolidate the still-fragmented European plastic packaging market through targeted acquisitions; and

· establish a meaningful presence outside Europe.

RPC is targeting the following KPIs which will be used to measure its financial progress going forward:

· a minimum 20% RONOA (Return On Net Operating Assets);

· an adjusted ROS (Return On Sales) of at least 8%; and

· maintaining a progressive dividend policy targeting 2.5x cover through the cycle.

The Group will continue to target ROCE (Return On Capital Employed) of 20% for its existing business portfolio.

Fitter for the Future: the Final Phase

During the formulation of Vision 2020, the Group identified a number of opportunities to optimise its existing asset base - these constitute the final phase of Fitter for the Future and fall under the following workstreams:

· Rationalise manufacturing footprint: this includes the anticipated closure of the Tenhult factory in Sweden, with its operations merged into the nearby Mullsjo plant and the anticipated closure of the Troyes factory in France, following a flood in May.

· Optimise existing business portfolio: this includes a strategic refocus of the Spanish blow moulding operations and various other cost optimisation initiatives, such as overhead savings relating to internal re-organisation programmes.

· Divesting non-core businesses: the Group has taken the decision to seek to sell its Cobelplast group of sheet businesses ("Cobelplast") and Offenburg, a disposables stockist. The combined revenue of these businesses in 2012/13 was £82m with an associated adjusted operating loss of £1m.

The total costs of the final phase of Fitter for the Future, including the asset write-down associated with the intended sale of the Cobelplast Cluster and Offenburg, is estimated to be £40m of which c.£23m is related to non-cash asset impairments. The associated cash impact is projected to be neutral as the disposal proceeds and working capital releases are anticipated to offset the cash costs of the restructuring.

The steady state benefits of the final phase of Fitter for the Future are estimated to be £7m, to be completed in the financial year ending March 2016, with the full financial benefit realised in 2016/17.

Commenting on today's announcement, Pim Vervaat, Chief Executive, said:

"Vision 2020 sets out our aspirations for the future of RPC and, as a new management team, we are excited about progressing our Focused Growth Strategy. Vision 2020 builds on the platform created by our previous strategic actions, clearly outlines how our performance should be measured and demonstrates our commitment to delivering shareholder value."

RPC will next update the market on its trading performance on Thursday 28 November 2013. Therefore no new trading information will be disclosed during the course of the Capital Markets Day.

Various slides from today's events will be available later today on the Group's website: www.rpc-group.com