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Ardagh Glass Finance plc - Irish Stock Exchange

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Changes in laws and regulations relating to deposits on, and recycling of, glass containers could<br />

adversely affect our business if implemented on a large scale in the major markets in which we operate.<br />

Changes in laws and regulations laying down restrictions on, and conditions for use of, food contact<br />

materials or on the use of materials and agents in the production of our products could likewise<br />

adversely affect our business. Changes to health and food safety regulations could increase costs and<br />

also might have a material adverse effect on revenues if, as a result, the public attitude toward end<br />

products, for which we provide packaging, were substantially affected.<br />

Changes in consumer lifestyle, nutritional preferences and health related concerns could adversely affect<br />

our business.<br />

Certain end products, for example, carbonated drinks and alcoholic beverages, represent a<br />

significant proportion of our packaging market. Any decline in the popularity of these product types as<br />

a result of lifestyle, nutrition and health considerations could have a significant impact on our<br />

customers and could have a material adverse impact on our business, financial condition and results of<br />

operations.<br />

Organized strikes or work stoppages by unionized employees may have a material adverse effect on our<br />

business, financial condition and results of operations.<br />

Many of our operating companies are party to collective bargaining agreements with trade unions.<br />

These agreements cover the majority of our employees. Upon the expiration of any collective<br />

bargaining agreement, our operating companies’ inability to negotiate acceptable contracts with trade<br />

unions could result in strikes by the affected workers and increased operating costs as a result of higher<br />

wages or benefits paid to union members. If the unionized workers were to engage in a strike or other<br />

work stoppage, we could experience a significant disruption of operations and/or higher ongoing labor<br />

costs, which may have a material adverse effect on our business, financial condition and results of<br />

operations.<br />

Our manufacturing facilities are subject to operating hazards.<br />

Our manufacturing processes involve heating glass to extremely high temperatures and operating<br />

heavy machinery and equipment, which entail a number of risks and hazards, including industrial<br />

accidents, leaks and ruptures, explosions, fires, mechanical failures and environmental hazards, such as<br />

spills, storage tank leaks, discharges or releases of hot glass or toxic or hazardous substances and gases,<br />

all with potential requirements for environmental remediation and civil, criminal and administrative<br />

sanctions and liabilities. These hazards may cause unplanned business interruptions, unscheduled<br />

downtime, transportation interruptions, personal injury and loss of life, severe damage to, or<br />

destruction of, property and equipment, environmental contamination and other environmental damage,<br />

civil, criminal and administrative sanctions and liabilities and third party claims, any of which may have<br />

a material adverse effect on our business, financial condition and results of operations.<br />

Failure of control measures and systems resulting in faulty or contaminated product could have a<br />

material adverse effect on our business.<br />

We have strict control measures and systems in place to ensure the maximum safety and quality of<br />

our products is maintained. The consequences of a product not meeting these rigorous standards, due<br />

to, among other things, accidental or malicious raw material contamination or due to supply chain<br />

contamination caused by human error or equipment fault, could be severe. Such consequences might<br />

include adverse effects on consumer health, litigation exposures, loss of market share, financial costs<br />

and loss of revenues.<br />

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