CREATING LONG-TERM VALUE How RDM Group is developing a sustainable business modelHighlights 2017

www.rdmgroup.com

Circular economy is the challenge of the future. For RDM Group it is already the present.

Further information is available at http://rdmgroup.com/sustainability/reporting/

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CORPORATE HIGHLIGHT

In RDM Group we are committed to developing a business model which combines the well-being of the people working with us and of the communities we are a part of, together with protecting natural resources and increasing the economic profitability.

PLANET

PEOPLE PROFIT

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1,567 RDM Group employees and collaborators

97% Employees with permanent contracts

42% in Italy 35% in France

22% in Germany 1% in the rest of EU

58% Recycled input materials over the total raw materials

87% Renewable materials over the total raw materials

71% Wood and its derivatives FSC® or PEFC™ certified

569.1 mio € Revenue from sales

45.8 mio € EBITDA

8.1% EBITDA’s margin

14.6 mio € Net results

PLANET

PROFIT

PEOPLE

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WHERE WE ARE

HEADQUARTERS PAPER MILLCUTTING CENTRE SALES OFFICE

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HEADQUARTERS AND SALES OFFICES

PAPER MILLS

CUTTING CENTRES

ITALY Reno De Medici S.p.A.Viale Isonzo, 2520135 Milano (Mi)info.italia@rdmgroup.com

SPAINR.D.M. Marketing Spain S.L.U.C/ Solsonés, 2 2º Local 3Edifici Muntadas 1 – Esc. B08220 El Prat de Llobregatinfo.espana@rdmgroup.com

FRANCER.D.M. Marketing France S.A.S.7, Rue Fraizier93210 Saint-Denisinfo.france@rdmgroup.com

HUNGARY, BOSNIA AND HERZEGOVINA, BULGARIA, CROATIA, MACEDONIA, ROMANIA, SERBIA, SLOVENIAR.D.M. Marketing Hungaria Kft.Ötvös Janos u.31021 Budapest, Hungaryinfo.budapest@rdmgroup.com

CZECH REPUBLIC, SLOVAKIAR.D.M. Marketing Czech Republic S.r.o.Jinonická 8015800 Praha 5, Czech Republic info.praha@rdmgroup.com

UNITED KINGDOM, IRELANDR.D.M. Marketing UK LimitedUnit 7, Hill Top Industrial EstateB70 0TX West Bromwich, West Midlands, United Kingdominfo.uk@rdmgroup.com

GERMANY, AUSTRIA, SWITZERLAND, SCANDINAVIAR.D.M. Marketing German GmbHUerdinger Strasse, 99D-47799 Krefeld, Germanyinfo.dach@rdmgroup.com

POLAND, RUSSIA, BELARUS, ESTONIA, LATVIA, LITHUANIA, UKRAINER.D.M. Marketing Poland sp. z o.o.Altowa 602386 Warszawa, Polandinfo.warszawa@rdmgroup.com

ITALY R.D.M. Magenta S.r.l.Via Giacomo de Medici, 3920013 Magenta (Mi)info.italia@rdmgroup.com

PAC SERVICE Via Julia, 47 35010 Vigonza (Pd) ordini@pacservice.com

ITALYReno De Medici S.p.A. Reno De Medici Villa Santa Lucia millVia Casilina, km 134,503030 Villa Santa Lucia (Fr)info.italia@rdmgroup.com

Reno De Medici S.p.A.Reno De Medici Santa Giustina millLocalità Campo 32035 Santa Giustina (Bl)info.italia@rdmgroup.com

R.D.M. Ovaro S.p.A.Via Cartiera, 27 33025 Ovaro (Ud)info.italia@rdmgroup.com

ADDRESSES

FRANCER.D.M. La Rochette S.A.S.23, Avenue Maurice Franck73110 La Rochette

R.D.M. Blendecques S.A.S.Rue de l’HermitageCS 53006 - Blendecques62501 Saint Omer Cedexcontact.blendecques@rdmgroup.com

GERMANYR.D.M. Arnsberg GmbHHellefelder Strasse, 51 59821 Arnsberginfo.arnsberg@rdmgroup.com

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Price

Environmental awareness

Bulk

Stiffness

Printability

(Bleached) Chemi-thermo

mechanical pulping (B)CTMP

with odour and taint sensitive

products

Printability and surface quality

Whiteness/brightness

Purity

Textile/Shoes

Detergents

Paper goods

Dry food

Beverages

Sports/Toys

Software/Hardware

Bakery/Pastry

Wet/frozen food

Music sleeves

Beauty & Health care

Global brand cigarettes

Pharmaceuticals

High-quality cosmetics

Premium cigarettes

PRODUCTS

Our product portfolio, made from both recycled and virgin fibres, allows us to cover a wide range of different sectors and features.

100% of production units with a certified quality management system in compliance with the ISO:9001

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•••••••

PRODUCTS FEATURES SECTORS

WLC

WHITE LINED CHIPBOARD

(COATED CARTONBOARD

MADE OF RECYCLED FIBRES)

FBB

FOLDING BOX BOARD

(CARTONBOARD FOR FOLDING

BOXES MADE OF VIRGIN

FIBRES)

OG-UD-UT LAMINATED BOARD

(CARDBOARD WELL SUITED

FOR SPECIALTIES AND LUXURY

PACKAGING)

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S. Giustina

Villa S. Lucia

Ovaro

Magenta

PAC Service

La Rochette

Blendecques

Arnsberg

ISO 9001

ISO 9001

ISO 14001

ISO 14001

EMAS

EMAS

PEFC

PEFC

ISO 50001

ISO 50001

BLAUEENGEL

BLAUEENGEL

OHSAS 18001

OHSAS 18001

-

-

-

-

-

2014

2013

2016

1992

1995

1996

1996

1997

1996

1996

1996

1997

-

-

-

-

2004

2001

2005

1997

-

-

-

-

-

-

-

-

-

-

-

-

2015

-

-

-

2014

-

-

-

2015

2015

2015

2010

2008

2014

2010

2010

2009

2010

2010

-

-

2006

-

2009

2017

2016

-

CERTIFICATIONS

PAPER MILLS

CUTTING CENTRES

ACTIVE CERTIFICATIONS WITH THE YEAR OF FIRST APPROVAL

FSC®

FSC®

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Cartiera del Reno

SAFFA

Cascades

1986

1928

1964

1986 1988

19671986

HISTORY

Giacomo De Medici opens a factory for producing matches in Milan, then transferred to Magenta

Foundation of “Luigi De Medici e Compagnia”. Two paper mills: in Cafasse Torinese and in Cirié

Reno De Medici emerges out of the fusion of Cartiera del Reno and De Medici

Foundation of the “Limited Stock Company Factories Matches and Similar products” (SAFFA)

Foundation of Cascades

SAFFA acquires Cartiere di Verona

Spin-off the paper production branch: foundation of a new Company located in Spain

Listing on the Stock Exchange of Milan

Foundation of Cartiera del Reno

1871

1876

1974

Cartiere De Medici

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2008

1997 2010

20171990

2016

1996

2016

1997

Reno De Medici acquires SAFFA

Publishing of the first Socio-Environmental Report of Reno De Medici

Vision, Values and Governance completely renewed

Merge of Cartiere SAFFA in Sarrio, a Spanish company listed on Madrid Stock Exchange

Merger of Cartiera di Ovaro into Reno De Medici Reno De Medici,

Cascades La Rochette e Careo confluiscono in RDM Group

Cascades Europe acquires control of Reno De Medici by the assignment of the property of Blendecques and Arnsberg mills

Listing of Reno De Medici on the Stock Exchange of Milan

First Code of Ethics Reno De Medici

2008

1996

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RENO DE MEDICI S.P.A.

SALES

STRUCTURE

CUTTING

CENTRES

PAPER

MILLS

(*) Company owned 94% by Reno De Medici S.p.A. and 6% by Cascades Grundstück GmbH & Co.KG(**) Company in liquidation(***) Company owned 60% by Reno De Medici S.p.A. and 40% by BELLIM S.r.l.

STRUCTURE

Cascades GrundstuckGmbH & Co.KG100%

R.D.M. Blendecques S.A.S.100%

R.D.M.La Rochette S.A.S.100%

R.D.M. Arnsberg GmbH(*)100%

R.D.M. Ovaro S.p.A.90%

Zar S.r.l. (***)33,33%

R.D.M. MarketingFrance S.A.S.100%

R.D.M. MarketingGerman GmbH100%

R.D.M. MarketingSpain S.L.U.100%

R.D.M. MarketingHungaria Kft100%

R.D.M. MarketingPoland Sp.z.o.o.100%

R.D.M. MarketingUK Ltd100%

R.D.M. MarketingCzech Republic S.r.o.100%

Cartiere Alto Milanese S.r.l.(**) 100%

R.D.M. Magenta S.r.l.100%

Emmaus Pack S.r.l.34,39%

BELLIM S.r.l.100%

PAC Service S.p.A.100%

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CEPI

CEPI CARTONBOARD

EUROPEAN CARTON MAKERS ASSOCIATIONS

PRO CARTON

Assocarta

Copacel

MEDEF

CLUB M.C.A.S.

Aticelca

Gipse

Gas Intensive Società Consortile A.R.L.

COLLABORATIONS

AT INTERNATIONAL LEVEL

AT LOCAL LEVEL

Assolombarda, Unione Degli Industriali E Delle Imprese Di Roma Frosinone Latina

Rieti E Viterbo, Confindustria Belluno

Comieco – Consorzio Nazionale Recupero E Riciclo Degli Imballaggi A Base Cellulosica

GIFCO – Assografici

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OFFERING SUPERBPRODUCTS AND SERVICES

OPTIMIZING COSTS

MAXIMIZING STAKEHOLDERS’ SATISFACTION

VISION

To become Partner of Choice by...

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GROUP-WIDE VISION

RESPONSIBLE DECISION-MAKING

EMPATHY

TOGETHERNESS

VALUES

THE CODE OF ETHICS OF THE GROUP IS AVAILABLE AT HTTP://RDMGROUP.COM/GOVERNANCE

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WE SHAPE THE FUTURE

The 2030 Agenda of the United Nations summarized the most urgent challenges to be addressed in a detailed program of “Sustainable Development Goals” (SDG’s); among these, we identified the Goals we can contribute to in a tangible way.

ENSURING THE AVAILABILITY OF WATER RESOURCES AND PROTECTING WATER-RELATED ECOSYSTEMS

How we contribute: programs to reduce water consumption and monitor waste water quality

PROMOTING LIFELONG LEARNING OPPORTUNITIES AND SKILLS DEVELOPMENT

How we contribute: investing in training activities and strengthening knowledge-sharing and informal learning tools

IMPROVING ENERGY EFFICIENCY AND PROMOTING THE DISSEMINATION OF TECHNOLOGIES FOR CLEAN ENERGY PRODUCTION

How we contribute: gradual reduction of energy consumption per ton of produced cartonboard

ENSURING FULL EMPLOYMENT, PROVIDING OPPORTUNITIES FOR DECENT WORK

How we contribute: employment opportunity for over 1,500 people, maintaining a level of employment practically unvaried in the last three-year period

PROTECTING THE HEALTH AND WELLBEING OF PEOPLE AT THE WORKPLACE

How we contribute: “Zero Accidents” Strategy

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MODERNISING INDUSTRIAL PROCESSES BY ENCOURAGING THE DISSEMINATION OF THE BEST AVAILABLE TECHNOLOGIES

How we contribute: investments of over 179 million Euros over the past 10 years in unit and technological modernisation

REDUCING WASTE PRODUCTION THROUGH PREVENTION, REDUCTION, RECYCLING AND REUSING

How we contribute: development of a production system based on a circular economic model, in which about 60% of the materials used comes from recycling

TAKING URGENT ACTION TO COMBAT CLIMATE CHANGE AND ITS CONSEQUENCES

How we contribute: reducing emissions of greenhouse gases, and of other pollutants through energy efficiency programs, reassessment of our energy mix, and interventions to make emissions more environmentally compatible

PROMOTING THE IMPLEMENTATION OF SUSTAINABLE FOREST MANAGEMENT, HALTING DEFORESTATION AND PROMOTING REFORESTATION

How we contribute: purchase of certified forest based virgin materials coming from controlled and sustainable supply chains

STRENGTHENING THE MEANS FOR IMPLEMENTING AND RENEWING THE GLOBAL PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT

How we contribute: joining various working groups, both locally and internationally, that support industry development in cellulose-based packaging and recycling

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By listening carefully to our stakeholders, we can assess the extent to which we meet their interests and legitimate expectations, and we can identify our strengths and the areas in which the commitment needs to be strengthened.

EMPLOYEES AND COLLABORATORS

FUTURE GENERATIONS

CUSTOMERS

FINAL CONSUMERS

NATIONAL AND INTERNATIONAL

INSTITUTIONS

PEERS E COMPETITORS

SUPPLIERS

INVESTORS

LOCAL COMMUNITIES

STAKEHOLDERS

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2017

2016

386

29

80

135

137

71

51

9

8

28

5

102284

24

8

RDM peoplemen

Collaboratorsmen

RDM peoplewomen

Collaboratorswomen

Total RDM Group people and collaborators

Total RDM Group people and collaborators

Blue-collars

White-collars

Executives

GEOGRAPHICAL DISTRIBUTION

FRANCE GERMANYITALY REST OF EU

654 people 550 people 340 people 23 people

1,567

1,596

1,072

1,487

1,352

1,400

1,044

RDM GROUP PEOPLE

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100%PRODUCTION UNITS WITH QUALITY MANAGEMENT SYSTEM CERTIFIED ISO:9001

0WITHDRAWALS OR RECALLS FROM THE MARKET DUE TO FOOD SAFETY RISKS OR OTHER REASONS

76%CUSTOMERS EXPRESS A POSITIVE OPINION OF RDM GROUP

Results of customer satisfaction survey.1,584 respondents, Response rate of 47%

2017

2016

2015

% ItalyTotal % Restof EU

% Restof the world

Number of complaints per 100 tons of products

SALES BY GEOGRAPHICAL AREA

0.36

0.38

0.41

CUSTOMERS AND FINAL CONSUMERS

COMPLAINTS AND REPORTS

33% 55% 12%

14%

16%

52%

47%

34%

37%

569mns €

478 mns €

438mns €

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CIRCULAR ECONOMY

recycled input material over the total raw materials

of fibres are recycled

800.000 tons of recycled fibres

Equal to paper packaging waste generated in one year by 11,7 million Europeans

renewable materials over the total raw materials

Virgin fibres

Virgin fibres

Recycled fibres

Chemical substances

Chemicals Oil and grease

Wooden pallets

Paper for laminatedmultilayer board

Wood

Cartonboard core spacer for reels

Starch

Polythene

Lattice

Recycled fibres

FIBRES

OTHER MATERIALS FOR THE CARTONBOARD AND ITS COATING

MATERIALS FOR PACKAGING

MATERIALS FOR MAINTENANCE OF EQUIPMENT

RDM Group products 100% biodegradable, reusable, and

recyclable

Materials used for our products:

58%

80%

87%

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2017

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•

•

•

6 7 15

ENVIRONMENTAL PROTECTION

of virgin fi bres used for manufacturing of the products and as biomass originates from supply chains certifi ed to FSC®, PEFC™ or FSC Controlled Wood®.

2016

2015

ENERGY WATERCLIMATE CHANGE

Monitoring consumptionImprovement of energy efficiencyCo-generation plantsISO:50001 certification

Monitoring emissionsReviewing energy supply mixEmission trading system (EU ETS)

Monitoring water withdrawal and quality of waste waterReusing process water in more than one processing cycleISO:14001 certification

2.56MWh/t

production

2.61

2.60

0.522

0.519

22.1

22.6

22.3cu.m/t

production

0.517t C02 eq./tproduction

••

••

71%

21

2017

2016

2015

209 268 254 039

225 252 262 0129

110 170 049

116

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QUALITY OF WORK

FREQUENCY INDEXRatio between number of accidents and hours worked, multiplied by 200,000

SEVERITY INDEXRatio between number of lost days due to accidents and hours worked, multiplied by 200,000

Total Italy France Germany Rest of EU

6.3 4.8 8.5 6.6 0

6.8 5.9 8.4 6.8 0

- 35%COMPARED TO 2015

- 49%COMPARED TO 2015

3.1 7.0 3.6 0

4.4

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4

INTELLECTUAL CAPITAL

Th anks to low personnel turnover and the high seniority in role of the personnel (on average 16 years of seniority) we can count on a strategic heritage of skills, one of the Group’s main intangible assets.

OVER THE LAST THREE YEARS:

over 50,000 hours of training supplied

2 mio Euros invested in training activities

IN 2017:

1,015 people involved in training courses, equal to 68% of the Company employees

over 12 hours of training per capita, with a 39% increase compared to 2015

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2017

3 8 12 13 15

242 57

SUPPLY CHAIN RELATIONSHIPS

Over 4,000 suppliers, mainly local companies.We are a major driver of economic growth in the neighbouring territories.

We invest in a supply chain which shares our commitment in developing a sustainable business model. Th e respect of our Code of Ethics is an integral part of purchase agreements with RDM Group.

Purchases from suppliers operating in the countries where RDM Group is present

Purchases from suppliers operating in other countries where RDM Group is not present

Suppliers subject to environmental or social due diligence

New suppliers

86%

19%

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INFO

Reno De Medici S.p.A. Viale Isonzo 25, 20135 Milan, Italy Tel.: +39 02 89966111 - Fax: +39 02 89966200info.italia@rdmgroup.com www.rdmgroup.com

Sustainability and Risk Manager E-mail: sustainability@rdmgroup.com

Communication & Marketing Manager E-mail: RDMcommunication@rdmgroup.com