Ardagh Glass Finance plc - Irish Stock Exchange

will continue to be preferred by our customers’ end-users and that consumer preference will not shift
from glass containers to non-glass containers. A material shift in consumer preference away from glass
containers, or competitive pressures from our direct and indirect competitors, could result in a decline
in sales volume or pricing pressure that would have a material adverse effect on our business, financial
condition and results of operations.
Higher energy costs and interrupted energy supplies may have a material adverse effect on our business,
financial condition and results of operations.
We use natural gas, electrical power, oil, oxygen and, in limited circumstances, liquefied petroleum
gas to manufacture our products. These energy sources are vital to our operations and we rely on a
continuous power supply to conduct our business. In recent years, the cost of natural gas and electricity
has increased substantially in all locations in which we have operations. The cost increases in the
United Kingdom have been particularly sharp and accompanied by considerable volatility. We are not
able to predict to what extent energy prices will rise in the future. If energy costs increase further in
the future, we could experience a significant increase in operating costs, which could, if we are not able
to recover these costs increases from our customers through selling price increases, have a material
adverse effect on our business, financial condition and results of operations.
In addition, certain locations in which we have operations, such as Italy and Poland, have
experienced power shortages. Frequent power interruptions may have a material adverse effect on our
operations and therefore our business, financial condition and results of operations.
Our expansion strategy may adversely affect our business, financial condition and results of operations.
We aim over the longer term to continue to capitalize on strategic opportunities to expand our
glass container activities. We believe that such future expansion is likely to require the further
acquisition of existing businesses. Because we believe that such businesses may be acquired with modest
equity and relatively high levels of financial leverage given the cash generating capabilities of glass
container businesses, we may need to contemplate further increases in our leverage in the future in
connection with any acquisitions. This could have an adverse affect on our business, financial condition
and results of operations. In addition, any future expansion is subject to various risks and uncertainties,
including the inability to integrate effectively the operations, personnel or products of acquired
companies and the potential disruption of existing businesses and diversion of management’s attention
from our existing businesses. Furthermore, we cannot assure you that any future expansions will achieve
positive results.
As our customers are concentrated, our business could be adversely affected if we were unable to
maintain relationships with our largest customers.
Our ten largest customers accounted for approximately 41% of our glass container revenues for
the year ended December 31, 2009. We believe our relationships with these customers are good, but we
cannot assure you that we will be able to maintain these relationships. We typically sell most of our
glass containers directly to customers under one to three-year arrangements. Although these
arrangements have provided, and we expect they will continue to provide, the basis for long-term
partnerships with our customers, they are not binding and there can be no assurance that our
customers will not cease purchasing our products. If our customers unexpectedly reduce the amount of
glass containers they purchase from us, or cease purchasing our glass containers altogether, our
revenues could decrease and our inventory levels could increase, both of which could have an adverse
effect on our business, financial condition and results of operations. In addition, while we believe that
the arrangements that we have with our customers will be renewed, there can be no assurance that
such arrangements will be renewed upon their expiration or that the terms of any renewal will be as
favorable to us as the terms of the current arrangements. There is also the risk that our customers may
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