Pact : 2021 AGM Speeches

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ASX Announcement

29 November 2021

Pact Group Holdings Limited's 2021 Annual General Meeting Speeches

Please find attached addresses to shareholders to be delivered by the Chairman and the Managing Director and Group Chief Executive Officer, at Pact Group Holdings Limited's Annual General Meeting, commencing at 12:00PM (AEDT), to be held virtually.

The business to be conducted at the Annual General Meeting will be determined by polls. The poll results will be released to the market after the conclusion of the company's Annual General Meeting.

A copy of the presentation which accompanies these addresses will follow.

ENDS

For further information contact:

Fiona Zafirakos

Legal Counsel & Group Manager Corporate Governance

T [phone]

This document has been authorised for release by Jonathon West, Company Secretary.

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2021 Annual General Meeting

Speeches

2021 IN REVIEW

At the risk of stating the obvious, it's fair to say that the past year has been challenging, not just for us here in Australia, but globally. For more than 18 months, COVID 19 has done enormous social and economic damage globally and while vaccination rates are high in Australia, recent events in Europe would seem to confirm that the battle against this insidious pandemic, is not quite yet over.

Nevertheless, I am pleased to report another successful year for our Company. During the year, the Group delivered strong earnings growth, improved margins, a robust cash performance and lower net debt. We made great progress in our strategy. Our performance in the year demonstrates the capability and commitment of our people to maintaining the safe and efficient operation of our facilities and diligently supporting the needs of our customers.

Against the challenging backdrop in the period, our financial performance was pleasing. The Group delivered revenue of $1.8 billion, EBIT of $183 million and underlying NPAT of $94 million. Group operating cash flows were strong, net debt reduced, and balance sheet metrics were improved. The Board increased dividends, with total dividends declared of 11 cents per share, franked to 65%, up 8 cents per share.

In the year, the Company has driven business improvements, captured new growth opportunities and made great progress in the delivery of our strategy to Lead the Circular Economy.

Sanjay will provide you with further comments on these achievements shortly.

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SUSTAINABILITY

Sustainability is at the heart of everything we do at Pact.

We are committed to protecting the environment and the world in which we live through the supply of recycling, reuse and sustainable packaging solutions for our customers.

We strive to be recognised as the partner of choice for sustainable packaging and a leader in the circular economy. We divert plastic material from landfill through our recycling and reuse operations, and in our packaging manufacturing operations we repurpose recycled materials into value-add products.

We believe this is not only good business … but it is also the right thing to do. And that is why we have set ourselves ambitious goals.

By 2025 we plan to:

• eliminate all non-recyclable packaging that we produce;
• have solutions to reduce, reuse and recycle all single use secondary packaging; and
• offer 30% recycled content across our packaging portfolio.

We will do this by collaborating with our customers and other stakeholders in product innovation and by investing in new manufacturing technology to improve the sustainability of our packaging.

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Some of our key achievements in FY21 include:

• We continued to decrease consumption of polystyrene resin, our most significant non- recyclable resin, and are working closely with customers to transition products to alternative substrates. Since 2018 we have reduced our use of non-recyclable resins by 34% or 3,000 tonnes. We have now fully decommissioned the production lines in NZ used to make
• Expanded Polystyrene foam trays for the meat industry and have transitioned these customers into 100% Recycled Polyethylene Terephthalate food trays.
• We continued to grow the use of returnable produce crates in Australia's supermarket supply chain. We have reduced single-use corrugate secondary packaging by more than 2,700 tonnes since 2018.
• Our retail accessories business continued to grow and is now supporting the reuse of 1.2 million garment hangers each day through global retailers.
• We produced over 33,000 tonnes of recycled resins, 59% of our 2025 target. Our products averaged 8% recycled content and we are on track to increase this to more than 10% in the next twelve months; and
• Critically, we are expanding our recycling and manufacturing capability to provide recycled content solutions to our customers and promote the development of an effective local circular economy. Sanjay will speak to some exciting projects we are undertaking in this area shortly.

I am proud of the progress we have made and reaffirm our commitment to becoming the number one partner for sustainable choices in the packaging industry.

INNOVATION

Pact is Australia's most innovative packaging company. Our technical, design and engineering experts challenge conventional thinking and identify new opportunities through insight led innovation. We continue to receive prestigious industry awards and customer recognition for our innovative packaging solutions.

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Recently, Pact was honoured to be recognised as one of Australia and New Zealand's Most Innovative Companies by the Australian Financial Review for the ninth consecutive year. We won this award from over 800 nominated organisations, for our innovative freeway noisewalls made from up to 75% recycled plastic.

Situated along Mordialloc Freeway, the walls transform approximately 570 tonnes of hard-to-recycle plastic materials into panels spanning 32,000 square metres, providing a second life for single use plastic milk bottles. At the end of their 40-year lifespan, each panel will be 100 per cent recyclable.

This is an outstanding example of value creation opportunities that exist in the circular economy. And a testament to the hard work, the vision and the commitment of our people at Pact.

Congratulations

I will now hand over to our Managing Director and Group CEO, Sanjay Dayal.