1. Glass Packaging and Sustainability – Global Approach Günter Lubitz, Vetropack Bülach, Switzerland World Packaging Days 2012, Split, Croatia

2. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 2 Agenda 1.The Vetropack Group 2.Packaging Glass 3.Sustainability at Vetropack 3.1. Economical 3.2. Social 3.3. Ecological 3.3.1. Use of Cullet (recycled glass) 3.3.2. Batch (raw materials) and Cullet Preheating 3.3.3. Lightweight Technology 3.3.4. Hardglass 4.Summary

3. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 3 1. The Vetropack Group  7 plants  4.2 bn unit sales  589 m CHF gross revenue  59 m CHF annual profit  85 m CHF investments  2,971 employees Bülach, Vetropack Holding Ltd Production Plants CH: St-Prex, Vetropack Ltd AT: Pöchlarn, Vetropack Austria GmbH Kremsmünster, Vetropack Austria GmbH CZ: Kyjov, Vetropack Moravia Glass, a.s. SK: Nemšová, Vetropack Nemšová, s.r.o. HR: Hum Na Sutli, Vetropack Straža d.d. UA: Gostomel, JSC Vetropack Gostomel

4. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 4 2. Packaging Glass  Made from natural and abundant raw materials  Environmentally safe and 100% unlimited recyclability  Pure, inert, gas-tight  ultimate preservation of filled goods  Flow chart of production process

5. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 5 3. Sustainability at Vetropack

6. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 6 3.1. Economical  Sustainability and long-term economic success are interdependent  Family company with long-term success before short-term profit maximization 3.2. Social  Socially committed – from the beginning  Comprehensive health and safety regulations  Meeting employees’ social requirements – irrespective of location

7. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 7 3.3. Ecological  Manufacturing Process – taking responsibility for our environment  Use of cullet (recycled)  Batch (raw materials) and cullet preheating  Product – taking responsibility for the product and its quality  Lightweight technology  Hardglass

8. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 8 3.3.1. Recycling Rates in Europe – 2010  Benefits of cullet use - 2.4% less energy per 10% cullet increase - 5.5% less CO 2 per 10% cullet increase  Effect for Europe - More than 12m tons of raw materials conserved - More than 7m tons of CO 2 avoided  Average cullet use of Vetropack Group is 60% Source: FEVE

9. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 9 3.3.2. Batch and Cullet Preheating  Goal: Waste heat from flue gases to preheat raw materials and cullet  Flexibility regarding cullet ratios (15 – 90% in trials)  Benefits: Preheater works with batch/cullet ratio of only 14%  A full-scale preheater will result in up to 15% energy savings Energy input 100% Wall losses 22% Energy in flue gas 30% Energy in glass 48% Scource: Horn Source: Zippe

10. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 10 3.3.3. Lightweight Technology Source: Emhart Glass  Goal: Weight reductions  Benefits:  raw material savings  energy savings  CO 2 reduction  smaller carbon footprint

11. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 11 3.3.3.1. Weight Reduction of Wine & Beer Bottles 100cl Bordeaux 75cl Bordeaux –16% to 420g–13% to 350g 33cl Beer –13% to 165g 33cl Beer –10% to 185g

12. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 12 3.3.4. Hardglass – Goals and Process De-palletizer Bottle Spacer Lehr Hard Glass Machine Cooling Conveyors Cold End Coating Stacker Hard Glass Inspection FlexInspect  Goal – to produce a more robust and/or a lighter bottle  Hardglass – a process to thermally strengthen glass containers  Post process – bottles are heated to 615°C – 650°C  Bottles are lifted from the lehr belt and placed into cooling shrouds  Air enters the shrouds to cool the external surface and air enters through a tube to cool the internal surface  Glass surface compression stress is generated inside and outside  Tensile stress is generated within the glass

13. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 13 3.3.4.1. Hardglass Process

14. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 14 3.3.4.2. What Does It All Mean?  Improvement of mechanical and thermal properties of glass containers  Typical test results  31% increase in average internal pressure resistance  35% increase in average impact strength  significant improvement  in line simulation  in drop test  in vertical load  in thermal shock 200ml 130gm

15. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 15 3.3.4.3. Drop Test

16. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 16 3.3.4.4. Drop Test Results – Long Neck Beer Bottle

17. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 17 3.3.4.5. Potential for Weight Reduction

18. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 18 3.3.4.6. Benefits for End Consumers and Bottlers  More robust packaging glass  Fewer filling line breakages expected  Possibilities for optimizing packaging, e.g. no cardboard separators  Possibilities for reducing weight of  returnable  non-returnable bottles  Perhaps non-returnable bottles could be used as returnable bottles (?)  Smaller carbon footprint through weight reduction  Leveraging drop test results – use of packaging glass in stadiums, vending machines, bars and restaurants, homes ….

19. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 19 3.3.4.7. Realization and Commercialization  Market launch as joint project between &  Installation of most flexible Hardglass post process  48 bottle-per-minute line to be installed at Pöchlarn, Austria -2.0 million/month  Ware range -100 to 1,000ml -50 to 95mm diameter - 100 to 320mm height under finish  Production start early 2013  Strong interest from Vetropack’s key accounts  2013 & 2014 - Design and build higher-capacity version (≥ 250 bpm) for in-process production (after forming machine)

20. © VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach 06.06.2012 | Slide 20 4. Summary  Glass Packaging is inert, gas-tight, and ensures taste preservation  It is environmentally friendly with 100% unlimited recyclability  Packaging glass industry has a global sustainability approach  Sustainability covers economical, social and ecological aspects  Use of cullet saves energy and reduces CO 2 emissions  Batch and cullet preheating improves energy efficiency for melting  Lightweight technology helps to conserve raw materials and energy  Hardglass is an innovative approach to produce a more robust and lighter glass packaging and improve its carbon footprint  Container glass is the sustainable packaging material