13 November 2017
ADDED VALUE OPPORTUNITIES
IN NON-PACKAGING MARKETS
RPC – THE ESSENTIAL INGREDIENT
© 2017 RPC Group Plc. All Rights Reserved.
2
Introduction: Non-packaging
Jack Yeung
Ace: Asian precision engineering platform and moulds
Jack Yeung
ESE: Temporary waste storage solutions
Björn Hedenström
Agenda
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Introduction: Non-packaging
Jack Yeung
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Introduction: Non-packaging
£67 £120 £92 £109 £173 £53
Non-packaging markets
17% of RPC Sales*2016/17
MouldsRoto
mouldingSpecialityvehicles
Asian precision engineering platform
Temporary waste storage solutions
Flexible non-packaging
products
Extracting value from core competencies:
Drawing from similar design and engineering capabilities as packaging
Focus on niche products and markets where good returns can be made from higher added value products
In-house mould making enables control in delivering technically challenging customer projects
Offers highly skilled platform to enter niche packaging markets in new regions (e.g. Ace)
Enhances Group’s overall strategic buying position
*Pro forma to include a full year of acquisitions
RPC Sales
2016/17* (£m)
Casestudy
Casestudy
Casestudy
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Ace: Asian precision engineering platform and moulds
Jack Yeung
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World-class injection moulder and mould maker
BEST-IN-CLASS MANUFACTURING FACILITIES WITH
INDUSTRY LEADING ENGINEERING CAPABILITIES
Provider of high added value solutions for niche segments:
Specialists in high added value plastic injection moulded components and mould making
Selective focus on niche segments where value creating opportunities exist
Few local suppliers able to offer complex moulding and intricate multi-part assembly to meet demanding European and North American standards
Highly skilled workforce: numerous international and domestic awards
Growing business: added new operations through acquisition and greenfield
73%
Precisionengineering
Moulds
Revenues:
Original
Acquired
Greenfield
Head office
Ace locations:
Hefei
Shanghai
Zhuhai
Hong Kong
Shenzhen
27%
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PowerMedical Lifestyle Automotive Packaging
Introduction: Asian precision engineering platform
Precision engineering solution for complex mouldings
Domestic and international recognition
Multi-material moulding; up to three materials into same mould for advanced solutions
High decoration possibilities through electroplating and paint-over-chrome technologies
High quality platform to engage RPC’s international customers in selected niches
Principal markets
RECOGNISED SOLUTION PROVIDER SUPPORTING GROWTH IN
HIGHER ADDED VALUE OPPORTUNITIES IN ASIA AND WORLDWIDE
Workforce:
31 yearsAverage age
c.30%Engineers& technicians
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Precision engineering: Premium decoration capabilities
Combining technologies to provide a premium finish
Applies a premium metalised finish onto complex and intricate plastic components
Through combining painting and plating processing, RPC has developed “paint-over-chrome” technology
Significantly improves paint adhesion to chrome resulting in a durable yet high gloss finish; meets demanding standards of leading automotive brands
Offers lightweight and flexibility benefits of plastic with a premium decorative finish
Suitable for automotive and lifestyle applications
COST EFFECTIVE METHOD FOR PREMIUM DECORATION WITH INFINITE COLOURS;
SUPPORTS THE GROWING TREND FOR HIGH CUSTOMISATION
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Precision engineering: Improved performance and cost reduction
Plastic overmoulding: Integrating plastics with electronics
Process in which thermoplastics are moulded over another material to form one single plastic encapsulated finished product
Enables application of smart plastics through incorporation of printed circuit boards, LEDs, magnets and sensors
Suitable for wide range of aesthetic and functional applications; consumer electronics, medical devices and automotive products
Advantages:
Efficient manufacturing; removes secondary assembly operations
Overmoulding improves performance:
• Resistance to vibration, shock and water
• Longer component life due to superior protection
• Eliminating bonded materials removes weaknesses and improves reliability
• Enhanced design flexibility
COST EFFICIENT APPROACH TO COMPLEX PROCESSING
FOR ADDED VALUE SOLUTIONS
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Precision engineering: In-mould labelling for smart plastics
Premium application for the future of smart plastics
Traditionally used for packaging applications, RPC has developed IML technology to apply smart plastics to applications requiring touch sensor design
Combines a decorative foil in black high-gloss optic with a functional foil in a sandwich construction
Incorporates capacitive sensors due to ‘multi-touch’ capability that can recognise more than one point of contact
Time and cost saving; alleviates complex circuit assembly
Applications include consumer electronics requiring touch activation, touchscreen control or biometric recognition software
DEVELOPMENT OF PROCESSING CAPABILITIES TARGETING
POTENTIAL HIGH GROWTH ADDED VALUE NICHES
Touch sensor with printed circuitry
Front panel
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Precision engineering: Innovations utilising nanofibers
Nanofibers: Next generation plastics
Process of melting and reorganizing polymer compounds into nanofiber membranes utilising electrospinning technology
Nanofiber structures yield wide ranging benefits; flexibility, conductivity, water repellent, antibacterial, high porosity, high absorbency
Versatile technology suitable for a variety of applications:
• Germ repellent plastic materials; packaging, lifestyle, healthcare
• Nanofibrous barriers with advanced filtration; environmental treatments, wound dressings
• Superior conductivity and charge bearing; computing, communications, power sources
Typical
Common nanofiber structure
Cross-linked
Core-shell AlignedHollow
Structures developed by NAMI tech
Future application: Flexible batteries
RPC are currently partnering with Nano and Advanced Materials Institute(NAMI) on 2nd generation flexible batteries:
• Safe, powerful and rechargeable lithium ion battery based on nanofiber electrolytes
• 10-20% faster charging time, 20x longer life cycle than existing lithium batteries
• Maintains high and stable voltage through full flexing and even when punctured
• Applications: Wearable electronics (IoT), consumer electronics, medical devices
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Relevance of mould making:
Steel tools for moulding rigid plastic components, both packaging and non-packaging
Critical to delivering to strict product specifications
Enables competitive time-to-market
Complex engineering skills required
Keeps know-how internal to RPC in cutting-edge applications
Introduction: Moulds
RPC’S SIGNIFICANT MOULD MAKING CAPABILITY UNDERPINS OUR ABILITY TO COMPETE
12 Mould making locations
6
Supplier awardsfrom international
customers
3
Mould makerof the year
awards
6
Mould designawards
North America Europe Asia
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Moulds: Enhancing our speed to market
Best-in-class speed to market
Developed modular mould frame which facilitates standardisation of high use, time intensive components
Quick changeover between shapes and sizes enabled
Collaboration with wider RPC Group to offer full solutions utilising the most appropriate processing technology
Enhances RPC’s position as a partner for design and innovation
Unrivalled speed to market from concept to commercialisation
Production time
BEST-IN-CLASS ENGINEERING CAPABILITIES SUPPORTING THE
INCREASING CUSTOMER NEED FOR SPEED TO MARKET
Project LMNQ Project Crystal Project Cinderella
Ace extrusionblow moulded
Ace injection stretch blow moulded
Industry average 8 weeks
2 weeks
3 weeks
Prototype moulds
3 months 6 months 11 months
Design to commercialisation…
(bottle) (bottle)(complete pack,full range 1,2,3,4 & 5L)
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Moulds: Advancing our processing capabilities through innovation
Engineering innovation: Irregular cooling channels
Cooling channels critical in processing molten plastic into finished components
Standard channel formation limited by traditional machining and drilling
3D printing and diffusion bonding technologies facilitate irregular cooling channels
RPC developed innovative channel design provides significantly improved surface coverage, thereby improving efficiencies
Advantages:
Reduce wastage due to less part deformation through more even heat transfer and reduced scope for shrinkage
Quicker cooling facilitating faster cycle times
More effective cooling; more efficient use of resources
Potential to improve processing of all rigid applications across the RPC Group
INNOVATION TO ENHANCE MOULD DESIGN LEVERAGING RPC’S LEADING
ENGINEERING CAPABILITIES
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ESE: Temporary waste storage solutions
Björn Hedenström
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ESE World (acquired January 2017)
A leading solution provider
Europe’s leading “pure play” provider of temporary waste storage solutions
Over 80 years experience in leading the industry through innovationwith >240 active patent and model protections
Broad geographic coverage served by best-in-class production capabilities
Specialist in development of innovative products and solutions with industry leading sustainability profile
Balanced and diversified customer base, long standing relationships with municipalities, key private waste management companies and industrial customers
Active in markets with visible and sustainable growth profile
LEADING DESIGN AND ENGINEERING COMPANY
IN TEMPORARY WASTE STORAGE SOLUTIONS
Mobile container production site
R&D centre & assembly for steel products
Markets with own sales offices
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17% of sales 9% of sales74% of sales
Leading product range; added value solutions and services
c.£175m 2016 sales
2 and 4 wheel containers
Plastic mobile containers for temporary storage of general waste and recyclables
Broadest product range on the market
Strong market positions in all key European geographies with exports worldwide:
• Best placed to serve global waste management players based on ESE’s product range and credentials
Services
Internally developed range of complementary services
Includes data management, maintenance and fleet management
Important part of ESE’s customer offering:
• Complementary services differentiate ESE, particularly on large contracts
• Strengthens ongoing relationships and gives visibility over future opportunities
Other
Includes bring systems (underground and semi-underground), litter bins and hazardous waste systems
Range of ancillary products that strengthen the total solution and service offering:
• Numerous IOT based solutions to provide live consumer data
Product evolution
Highermargin
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Supplementary market• Replacement need
• Population growth
• Upgrade of system
Following roll out(s)• Enhanced recycling targets
• Legislation
• Added features or full scale replacements
Supplementary market• Replacement need
• Population growth
• Upgrade of system
• Introduce new systems
High end solutions• Superior recycling targets
• Focus on aesthetics
• High-end client information systems
First roll out• European and national
directives and legislations
• Recycling targets
• System change (bag to container)
Attractive markets with visible and sustainable growth profiles
France/ Benelux Scandinavia
Poland
Emerging Markets
14% 19% 31% 27%
Germany
5%
Customer evolution
Highermargin
Market drivers and ESE sales by destination
General drivers
Growing populations in key markets
Increased waste generation
Enhanced recycling targets
Growing replacement needs
Available subsidies and funding
Market demands
Flexibility; high volume capabilities with small volume, local distribution network
Customers expect suppliers to drive innovation in products and services
Intelligence of regulatory requirements and competence in advisory support
Increased speed to market
ESE’s position
Proven track-record to manage large scale and demanding projects
National distribution hubs to service small volume/high speed demand
Local expertise in combination with central R&D to develop best practice solutions
Leading range of “high-end” solutions and services
UK
4%
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Highly innovative company – strong overlap with RPC
A leading industry innovator with an established growth platform
Strong track record of innovation; well placed for future growth through continued investment in R&D
Attractive market positions with portfolio of entry points and added value solutions
Visible growth trajectory linked to long-term European led regulations and directives
Significant consumer of polymer; enhances overall procurement position
Attractive overlaps suitable for best practice sharing:
• Combining production technologies to develop superior products
• Manufacture products with industry leading recyclate content – opportunities in processing and supply
• Lightweighting opportunities
• Offering a closed loop for RPC’s packaging customers
Complementary to RPC’s material handling business and leading sustainability credentials
201620132012200319821976
ESE plastic waste
containers become the first
worldwide to be awarded
Blue Angel ecolabel
Launch of split lid –
ergonomic solution
Launch of 2-wheel CL line,
offering strong sustainability
credentials – first thin-
walled container with
optimum performance
Launch of Bagio semi-
underground systems,
targeting high volume waste
collection
The DIN comb, a patented
2 wheel container becomes
the world standard
First multi-compartment
Quattro system is delivered
– changing the whole
waste collection system
First injection-moulded 4
wheel container produced,
with the world’s largest
machine
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Revolutionary ergonomic multi chamber waste container
• Superior function of system through use of blow moulding technology for the separating wall
• Developed in collaboration with RPC’s BM expertise
• Supports increasing trend for waste segregation at point of consumption
Opportunities going forward
Strategy:
Continue to innovate and develop market leading solutions using combined ESE and RPC competences
Continue to capitalise on strong underlying growth trends in the market
Leverage service relationships with large stakeholders to collaborate on future projects
Collaborations with wider RPC Group:
• Access to complementary products and technologies
• Design and mould making competences to increase speed to market
• Access to enlarged manufacturing footprint and wider geographic coverage
ATTRACTIVE, VISIBLE GROWTH OPPORTUNITIES; INDUSTRY LEADING PRODUCTS
AND TECHNICAL CAPABILITIES NOW SUPPORTED BY A WIDER GROUP
Examples of RPC collaborations to date:
Best-in-class rotational moulded semi underground waste collection system (600l to 5,000l)
• Unique design and construction, developed in co-operation with RPC
• Integrated full electronic volume measurement and access control features
• Utilises state of the art rotational moulding technology
QUESTIONS?
RPC – THE ESSENTIAL INGREDIENT
© 2017 RPC Group Plc. All Rights Reserved.