Pro Pac Packaging : 27/09/16 Full Year Statutory Accounts

PRO-PAC PACKAGING LIMITED ACN 112 971 874 ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016 Corporate Information

ABN No. 36 112 971 874

Directors

Ahmed Fahour (Chairman) Elliott Kaplan

Brandon Penn Dr Gary Weiss

Company Secretary

Mark Saus

Registered Office

147 -151 Newton Rd, Wetherill Park,

NSW 2164

Principal Place of Business

147 -151 Newton Rd, Wetherill Park,

NSW 2164

Share Register

Boardroom Limited

Level 12, 225 George Street

Sydney NSW 2000

Solicitors

Thomson Geer

Level 25, 1 O' Connell Street

Sydney NSW 2000

Bankers

Commonwealth Bank of Australia Premium Business Services

Level 1, 430 Forest Road

Hurstville NSW 2220

Auditors

UHY Haines Norton Level 11, 1 York Street

Sydney NSW 2000

Stock exchange listing

Pro-Pac Packaging Limited shares are listed on the Australian Securities Exchange (ASX code: PPG)

Website

www.ppgaust.com.au

CONTENTS DIRECTORS' REPORT 4 AUDITORS' INDEPENDENCE DECLARATION 13 CORPORATE GOVERNANCE STATEMENT 14 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER 24 COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF FINANCIAL POSITION 25 CONSOLIDATED STATEMENT OF CASH FLOWS 26 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 27 NOTES TO THE FINANCIAL STATEMENTS 28 DIRECTORS' DECLARATION 60 INDEPENDENT AUDITOR'S REPORT 61 ADDITIONAL COMPANY INFORMATION 63

Pro-Pac Packaging Limited and Controlled Entities - Directors' Report

DIRECTORS' REPORT

The Directors present their report, together with the financial statements, on the consolidated entity ("the Group") consisting of Pro-Pac Packaging Limited ("the Company") and the entities it controlled at the end of the year ended 30 June 2016.

DIRECTORS

The Directors in office at the date of this report and during the whole of the financial year are as follows:

Ahmed Fahour B Econ, MBA (Non-Executive Director - appointed director 28 March 2015 and Chairman 25 November 2015)

Mr Fahour is the Managing Director and CEO of Australia Post. He has held a number of senior executive positions within the finance and banking industries in Australia and overseas and was previously CEO of Citigroup (Australia and New Zealand) and National Australia Bank (Australia). He is the chairman of LaunchVic and is also an Adjunct Professor in the Faculty of Business, Economics and Law at La Trobe University.

Mr Fahour is Chairman of the Remuneration Committee of Pro-Pac.

Elliott Kaplan BAcc, CA (Non-Executive Director - appointed Director 1 March 2005)

Mr Kaplan is a Chartered Accountant with extensive Board experience following numerous senior financial and chief executive officer roles in both private and public listed companies. His experience, from both an investor and investee perspective, spans a diverse range of industries including manufacturing, environmental, distribution and services. Mr Kaplan is a Director of Eildon Capital Limited (formerly CVC Private Equity Limited), a non- executive director of Cellnet Limited and a director of a number of unlisted companies. Mr Kaplan is also a former director of Dolomatrix Limited, The Environmental Group Limited and Grays Ecommerce Group Limited.

Mr Kaplan is Chairman of the Audit and a member of the Remuneration Committees.

Brandon Penn B. Com (Non-Executive Director - appointed 16 August 2007, resigned as CEO 12 May 2016, appointed Acting CEO 13 July 2016)

Mr Penn is the founding director of the PB Group which merged with PPG in 2007. He has had a number of business interests alongside the PB Group including the establishment of a dominant software development company, Dealing Information Systems (DIS), which developed wholesale banking systems. DIS was acquired in 1996 by Sungard Data Systems NYSE. Mr Penn assumed Asia-Pacific responsibility for the Sungard companies and offices throughout the Asia Pacific region.

Mr Penn is a member of the Remuneration Committee.

Dr Gary Weiss LL.B (Hons), LL.M (with dist.), Doctor of Juridical Science (JSD) (Non-Executive Director - appointed 28 May 2012)

Dr Weiss is Chairman of Ridley Corporation Ltd. He is Executive Director of Ariadne Australia Ltd and a director of several other public companies including Premier Investments Ltd, Thorney Opportunities Ltd and The Straits Trading Company Ltd.

Dr Weiss is a member of both the Audit and Remuneration Committees.