Ardagh Glass Finance plc - Irish Stock Exchange

Asbestos is present, or may be present, at a number of Ardagh sites. The rules governing the
management of asbestos vary between Member States and it is possible that remediation measures to
remove asbestos containing materials (‘‘ACMs’’) will be required, in particular where friable ACMs are
present or where a site is decommissioned.
Prior to the acquisition of the various facilities that make up the Ardagh business, independent
environmental studies were commissioned by Ardagh as acquirer or by the various vendors from which
the facilities were acquired. While the reports resulting from these studies highlight some actual or
potential issues, no material environmental issues were reported. These studies identified that asbestos
is present, or may be present, at a number of sites which may require remediation. The reports came to
the conclusion that at certain German sites there are indications of soil or groundwater contamination
which may require investigation and/or remediation. Possible soil and groundwater contamination issues
were also identified at the sites in The Netherlands, the materiality of which was not established. There
is significant potential for contamination to be present at the Gostyn site and potential contamination
at the Wyszków site in Poland. Therefore, the possibility of future remediation costs cannot be
excluded. There is known contamination at the site in Sweden and Denmark. Hydrocarbon
contamination was discovered in 1997 at the Swedish site and the authorities were informed, although
no requests for further actions have been made. The remediation of the site in Denmark is on-going.
Based on the currently known conditions, Ardagh does not believe that any pending or likely
remediation and compliance costs will have a material adverse effect on Ardagh’s business or results of
operations.
The European Union’s regulation concerning REACH places onerous obligations on the
manufacturers and importers of substances, preparations and articles containing chemicals and may
affect Ardagh’s ability, as a downstream user of certain chemicals, to continue to source those
chemicals used in the manufacture of glass or may affect the price of such substances.
A European Union Directive on packaging and packaging waste, which must be implemented in
each Member State, regulates packaging, including glass containers, placed on the market in the
European Union and requires that certain rates of recycling and recovery be achieved by
manufacturers. The Directive sets out requirements regarding the composition and the reusable and
recoverable nature of packaging and packaging waste. Some Member States have enacted legislation
which imposes more onerous obligations in relation to packaging, including packaging taxes and
mandatory deposit schemes. Member States are obliged to develop waste prevention programmes.
Measures to strengthen Member State implementation of the requirements of the Directive can also be
expected. European Union and national legislation sets out specific, onerous rules concerning waste
management, including transport, recovery and disposal. Ardagh is required to comply with EU and
national regulations that require a percentage of packaging and packaging wastes to be recovered and a
designated percentage to be recycled, including contributing fees toward the costs of recycling and
recovery activities.
Ardagh is an enthusiastic supporter of glass recycling programmes as increased success in recycling
normally increases the supply of cullet in the marketplace. Packaging used for food products must be
safe for consumption and is subject to limitations on the extent to which packaging material
components may migrate into packaged foods, which may become more stringent in the future. Ardagh
designs its food packaging products to satisfy European Union and individual Member State
requirements.
Sustainable Development
Ardagh Glass is committed to reducing its environmental impact by investing in efficient processes
and management systems.
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