Ardagh Glass Finance plc - Irish Stock Exchange

The Polish Glass Container Market
The principal markets for glass containers in Poland are the food, beer, spirits, wine and NAB
sectors. In 2005 and 2006, reasonable growth returned to all market segments in the Polish glass
container industry. The following table shows the total volume of glass containers produced by the
Polish glass container market during the five-year period ended December 31, 2008.
2004 2005 2006 2007 2008
Total number of glass containers produced (in millions of units) . 4,912 5,083 5,254 5,543 5,631
Total volume of glass containers produced (in thousands of
tonnes) ........................................ 1,041 1,088 1,119 1,230 1,332
Source: Forum Opakowan Szklanych.
Ardagh estimates that in 2009 it had a 20% market share of the Polish production of glass
containers.
The Nordic Glass Container Market (including Finland)
The principal markets for glass containers in the Nordic region are the food, beer, spirits, NAB
and pharmaceutical sectors. In this region, growth in the beer sector is largely driven by exports, but
the spirits sector is the largest product segment by value, with exports by companies such as Vin &
Sprit (now owned by Pernod Ricard) driving growth. The food sector is broadly stable and
characterized by a high degree of product fragmentation.
2004 2005 2006 2007 2008
Total number of glass containers produced (in millions of units) . 1,354 1,331 1,374 1,401 1,544
Total volume of glass containers produced (in thousands of
tonnes) ........................................ 373 370 377 383 425
Source: Ardagh management estimate.
Ardagh estimates that in 2009 it had a 74% market share of the Nordic production of glass
containers.
Italy
In Italy, Ardagh is a small market player, focused on beer bottles, with just over 2% market share
of Italian production of glass containers.
Ardagh’s Products
Glass Containers
Ardagh’s production consists of proprietary glass packaging, i.e. containers that are designed and
manufactured specifically to a customer’s specification, usually related to their brand and marketing
strategy, and non-proprietary containers, those that could be considered standard or ‘off the shelf’.
Many of the containers produced are then decorated at one of Ardagh’s specialist ‘added value’
facilities.
In 2009, Ardagh manufactured approximately 11.4 billion containers. The majority of production
was for the food and beverage industries with beer accounting for the largest proportion of revenue, at
an estimated one third of the total revenue. A small percentage of production was for the
pharmaceutical industry, mainly in the German and Swedish operations.
67