Papeles y Cartones de Europa : EUROPAC WILL DISTRIBUTE 29.8 MILLION EUROS TO ITS SHAREHOLDERS, 78% MORE THAN THE PREVIOUS YEAR

GENERAL SHAREHOLDERS' MEETING

EUROPAC WILL DISTRIBUTE 29.8 MILLION EUROS TO ITS SHAREHOLDERS, 78% MORE THAN THE PREVIOUS YEAR

• Between the ordinary dividend of 23 February and the extraordinary dividend approved today, the company will pay a total of 0.318 euros per share charged to 2016 earnings

• Europac's shareholders also improved a bonus issue and cancellation of 1,947,368 treasury shares, equivalent to 2% of the share capital

• The General Shareholders' Meeting also approved the 2016 accounts, which recorded a net profit of 48.9 million euros, 51% up on the previous year

Madrid, 28 June 2017.- the General Shareholders' Meeting of the Europac Group (Papeles y Cartones de Europa, S.A.), held in Madrid this morning (Wednesday, 28 June) with a quorum of greater than 86%, approved all the resolution proposals submitted by the Board of Directors. Among these, the shareholders approved the distribution on 17 July of a final dividend of 0.223 euros per share, which is added to the 2016 interim dividend of 0.095 euros per share paid on 23 February.

The Europac Group will therefore distribute a total of 0.318 euros per share to its shareholders, a dividend yield of 4.3% on the share price at the end of yesterday's session (Tuesday, 27 June). In total, the dividend charged to 2016 earnings amounts to 28.9 million euros, 78.4% up on the previous year. On an exceptional basis, the payout for 2016 amounted to 60% compared with 50% in the last three years.

Furthermore, the General Shareholders' Meeting also approved a bonus issue charged to unrestricted reserves through the issue of up to 3,894,735 shares with a free allocation of 1 new share for every 25 old shares. It also approved the cancellation of 1,947,368 treasury shares, which account for 2% of the company's share capital.

The shareholders delegated to the Board of Directors the power to execute the bonus issue and the cancellation of the treasury shares in a maximum period of 12 months.

José Miguel Isidro, Chairman of the Europac Group, highlighted that, "the company's remuneration policy reflects our commitment to create shareholder value. Given the company's good financial situation, in addition to the distribution of the dividend and the bonus issue, this year we have decided that it is a good time to cancel treasury shares as a form of supplementary remuneration, thus increasing the value of the shareholders' interests".

Approval of the 2016 accounts

The General Shareholders' Meeting also approved the 2016 balance sheet and annual accounts. With aggregate sales in 2016 similar to those of the previous year, the company recorded an increase in net profit of 51% to 48.9 million euros. Consolidated EBITDA stood at 126.6 million euros, 14% up on the 111.1 million euros recorded in the previous year, while recurring EBITDA stood at 128.8 million euros, 5% up on the previous year.

In this context of good results in an adverse scenario, it should be highlighted that after publishing the 2014 results, Europac informed of its commitment to create shareholder value, which consisted in achieving an EBITDA margin of 16%, ROCE of 15% and a debt/EBITDA ratio of

2.0 at year-end 2018. Two years later, the EBITDA margin and ROCE have grown by four

percentage points to 15.8% and 11.7%, respectively, and the debt/EBITDA ratio stands at 2.0.

Lastly, finance costs fell by 37% in 2016 as a result of the management of the financial structure and cost optimisation following the first full year of application of the financing conditions of the new syndicated loan signed in July 2015 and the reduction in the volume of debt.

Further information

Fernando Vidal Tel. [phone] [e-mail]