Overview Who we are 3 Company snapshot 4 Financial highlights 6 Global presence 10 Operational highlights 12 Chairman’s statement 14 Business review Frigoglass Jebel Ali 18 European Central Warehouse 20 Towards sustainable development 22 Strategy 24 Cool Operations 28 Western Europe 30 Eastern Europe 31 Africa / Middle East 32 Asia / Oceania 33 North America 34 Glass Operations 38 Management and governance Financial risks 40 Board of Directors 42 Remuneration and compensation 44 Corporate governance 45 Shareholder information 48 Contact 50 Frigoglass Annual Report 2011 Overview 3 Who we are Frigoglass is the leading player in the global Ice-Cold History Merchandisers (Beverage Coolers) market and one 1996 of the largest glass bottle producers in West Africa Frigoglass is established and the Middle East. We serve some of the world’s as a stand-alone company best known beverage companies offering them superior bespoke solutions in commercial refrigeration and 1999 Frigoglass is listed on the complete packaging solutions through our Athens Exchange Glass operations. Acquisition of Norcool We are a global company with 12 production plants 2001 and 22 sales offices in five continents. Our key drivers Acquisition of Husky in South Africa are quality, innovation and sustainability and our aim is to offer our customers superior customized 2007 products and solutions. Greenfield plant in Guangzhou, China 2008 Acquisition of SFA in Turkey 2009 Acquisition of Universal Nolin LLC in the USA 2 011 Acquisition of Jebel Ali Container Glass in Dubai 4 Overview Frigoglass Annual Report 2011 Company snapshot Our business Global player Blue chip customers 12 production plants, We serve the world’s Cool Operations 22 stand-alone sales best-known beverage offices and sales in more companies. Our customers than 150 countries. include The Coca-Cola Company bottlers, major 81% brewers (AB InBev, SAB Miller, Carlsberg, Heineken, Glass Operations Diageo, Efes and others), Pepsi bottlers and dairy companies (Nestle, Danone). % 19* of consolidated sales Frigoglass Annual Report 2011 Overview 5 After sales service Putting the customer first Through Frigoserve, we provide our We are committed to offering our customers a comprehensive and fully customers superior bespoke solutions integrated service offering. and we achieve this by building our business model around 3 pillars: quality, innovation and sustainability. Quality Competitive cost structure Putting the customer We manufacture in low cost countries, first generate economies of scale and have access to the world’s most competitive Sustainability Innovation supplier base. 6 Overview Frigoglass Annual Report 2011 Financial highlights 2 011 Sales EBITDA Net Profit 21.4% 9.9% 2.4% Year €m Year €m Year €m 2011 555.2 2011 81.6 2011 20.1 2010 457.2 2010 74.2 2010 20.5 2009 346.7 2009 53.4 2009* 8.5 2008 500.7 2008* 88.4 2008** 37.0 2007 466.1 2007 90.6 2007 45.5 * Comparable FY08 EBITDA excludes restructuring charges * Comparable FY09 net profit excludes one-off Special and capital gains (Reported FY08 EBITDA: € 85.5 million) Contribution Tax (Reported FY09 net profit: € 3 million) ** Comparable FY08 net profit excludes restructuring charges (Reported FY08 net profit: € 19.5 million) Frigoglass Annual Report 2011 Overview 7 Consolidated revenue breakdown By geography By customer group 2 011 % 2 011 % Western Europe 18.2 Coca-Cola bottlers 26.1 Eastern Europe 29.4 Coca-Cola Hellenic 27.4 Asia / Oceania 16.0 Breweries 25.9 Africa / Middle East 33.8 All other 20.6 North America 2.6 8 Overview Frigoglass Annual Report 2011 ICM sales 20.4% 81% Cool Operations of consolidated Global presence sales Ice-Cold Merchandisers (ICMs) stimulate the promotion and selling of ice-cold drinks. ICMs are an integral part of beverage companies’ strategy towards on-trade drink consumption. Frigoglass Annual Report 2011 Overview 9 Glass sales 26.3% 19 % of consolidated Glass Operations sales Africa/Middle East We manufacture glass containers and jars for beverage, pharmaceutical and cosmetic companies. Metal crowns and plastic crates complement the glass packaging solution offering. 10 Overview Frigoglass Annual Report 2011 Global presence Norway UK/Ireland Russia Germany Poland France Kazakhstan Romania Spain Turkey Cool Operations USA China Greece Western Europe Eastern Europe Africa/Middle East India Production plants Production plants Production plants and Sales offices: and Sales offices: and Sales offices: Dubai Greece Russia, Romania, Nigeria, Malaysia Turkey South Africa Kenya Sales offices: Nigeria Indonesia France, Germany, Sales offices: Sales offices: UK/Ireland, Norway, Poland Kenya, Dubai Spain Asia/Oceania North America South Africa Production plants Production plants and Sales offices: and Sales offices: Australia India, Indonesia, USA China Sales offices: Malaysia, Australia, Kazakhstan Glass Operations Africa/Middle East Production plants and Sales offices: Nigeria, Dubai Frigoglass Annual Report 2011 Overview 11 Norway UK/Ireland Russia Germany Poland France Kazakhstan Romania Spain Turkey USA China Greece India Dubai Malaysia Kenya Nigeria Indonesia South Africa Australia 12 Overview Frigoglass Annual Report 2011 Operational highlights Cool Operations Glass Operations Continued recovery in Europe Glass operations achieved its and strong performance in Africa . strongest ever result in 2011. Strong double digit growth In April 2011, Frigoglass acquired in Ecocool sales. 80% of the Dubai-based glass bottle and jar manufacturer, Jebel Ali Container Glass Factory, allowing us to expand our glass operations in new geographies and markets. Frigoglass Annual Report 2011 Overview 13 2011 Capex Awards New products We won the “Gold Award for Best Supplier of the Consolidated Year” at the 2nd Coca-Cola Capex Bottlers Philippines (CCBPI) Supplier Relationship € m Management Summit. 42.9 New products launched in 2011. Frigoglass was named Glass Operations “Best Supplier of the € m Cool Year 2011” by Britvic. 14.7 Operations €28.2m 14 Overview Frigoglass Annual Report 2011 Chairman’s statement I am pleased to report another year of 2011 was the most successful year yet for our The strength of our business reflects continued progress for Frigoglass, despite Glass Operations, during which we achieved our unwavering commitment to our the ongoing challenges posed by the a 26.3% growth in sales. We demonstrated corporate priorities. Quality, innovation macroeconomic environment. Against our commitment to growing this increasingly and sustainability are the three pillars at a difficult backdrop, we delivered strong important division through the acquisition the core of our success and have formed growth in Africa and North America of the Dubai-based Jebel Ali Glass. This the foundation for our strong customer and continued our recovery in Europe, acquisition strengthened our operations relationships. Frigoglass Ecocool, the world’s demonstrating the strength and resilience through additional technical expertise, first comprehensive range of environmentally of our business. customer relationships and enhanced market friendly Ice-Cold Merchandisers, is a perfect presence. The integration of Jebel Ali Glass example of how we have combined our The growth momentum we have developed into our business is progressing well and corporate priorities to achieve success. over recent years continued into 2011, and according to plan. We recognised early on the importance of during the year we recorded strong sales providing environmentally-friendly solutions to growth in both of our businesses. Our Cool The strong performance in both Cool and our customers which, like us, are committed Operations maintained its position as the Glass Operations is all the more encouraging to sustainability. We then focussed on leading player in the global market, delivering considering that it was achieved during a developing a world-class, innovative product a sales increase of 20.4%. The division period of rapidly increasing input costs. to address this need. Ecocool has become achieved growth across most of its markets, However, we maintained a keen focus on one of our most popular solutions, delivering with particularly impressive growth in Europe. tightly controlling operating costs, enabling double digit sales growth in 2011 and us to partially offset the impact of the volatile demonstrating the progress we can achieve commodity environment. Cost control is a through our focus on quality, innovation crucial discipline for us, and we are confident and sustainability. that by maintaining this focus we will be able to drive further efficiencies going forward. Frigoglass Annual Report 2011 Overview 15 Looking ahead, we anticipate that the We are grateful to all of our stakeholders macroeconomic environment will remain for their ongoing support. There are many challenging, especially in Europe. However, exciting opportunities ahead for Frigoglass we continue to benefit from the underlying and we are extremely optimistic about our strength of our business model, our future. As always, the driving force behind geographic diversity and the momentum our business is our commitment to delivering we have built over recent years – in spite the best returns for our stakeholders, and of this challenging economic backdrop. ensuring that they benefit from the future We are particularly optimistic of continued value which we believe we can create. strong performance in emerging markets, We are confident that, despite the challenges in line with our strategy for geographic