Ardagh Glass Finance plc - Irish Stock Exchange

BUSINESS
Overview
Ardagh is one of the leading suppliers of glass packaging to the food and beverage sectors in
Europe. The business has glass container manufacturing operations in Germany, the United Kingdom,
Poland, The Netherlands, Sweden, Denmark and Italy. In addition, Ardagh Glass Engineering Group,
provides technology, engineering and mould manufacturing activities.
Revenues and EBITDA for Ardagh for the year ended December 31, 2008 were A1,357.2 million
and A262.1 million, respectively, and for the nine months ended September 30, 2009 were
A935.2 million and A172.2 million, respectively. Although our revenues for the nine months ended
September 30, 2009 have decreased from the corresponding period in the prior year, Ardagh was able
to implement price increases which helped to offset volume declines. In addition, negative translation
effects from currency fluctuations had a significant impact. Revenues and EBITDA for Ardagh for the
twelve months ended September 30, 2009 were A1,264.4 million and A234.3 million, respectively.
Ardagh operates 20 glass plants with 40 glass furnaces and 101 production lines in seven countries.
In 2009, the aggregate production of Ardagh’s glass container businesses was approximately 2.9 million
tonnes. For the year ended December 31, 2009, Ardagh had an approximate one-third share of the
Northern European glass container production by volume and an approximate 16% share of the total
European glass container production by volume, based on management estimates.
The following table illustrates our combined market position based on 2009 glass container
production volumes.
Country/Region
Market Position of
Ardagh on the Basis
of 2009 Glass
Container Production
Volumes
Germany ...................................................... #1
United Kingdom ................................................. #1
Poland ........................................................ #2
Benelux ....................................................... #2
The Nordic Region ............................................... #1
Europe ........................................................ #3
Source: Ardagh management estimate.
Germany. Ardagh’s operations in Germany consist of eight manufacturing sites with 13 glass
furnaces. Ardagh produces a broad range of glass containers in the German beer, wine, spirits, dairy,
food, non-alcoholic beverage and pharmaceutical sectors, with the leading market position in food and
beer in Germany. Ardagh’s German operations supply leading global customers such as AB InBev,
Bacardi, Heineken, Kraft, MEK and Merck, as well as regional leaders such as DEK, Göbber and
Stute.
United Kingdom. In the United Kingdom, Ardagh operates four manufacturing sites with 12 glass
furnaces. Ardagh produces and markets an extensive range of glass containers in a variety of shapes,
sizes, colors and weights for the U.K. food, beer, spirits, premium packaged spirits, soft drinks, wine,
dairy and cider sectors. Ardagh accounted for approximately 66%, 52% and 29% of glass containers
produced in the United Kingdom in 2009 in the food, beer and spirits sectors, respectively. Ardagh’s
U.K. operations supply a broad range of glass containers to some of the leading European and global
food and beverage manufacturers such as AB InBev, Bacardi, Carlsberg, Coca-Cola Schweppes
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