A View from the Chairman

Dear Fellow Shareholders

On behalf of the Board of Directors of Pact Group, it is my pleasure to present to you our Annual Report for the year ended 30 June 2022. In FY22 we faced a further period of significant volatility in the markets in which we operate, influenced by the COVID pandemic, geopolitical factors, and disruption to global supply chains. I am extremely proud of the way in which our people have responded to those challenges, demonstrating the resilience of our business, and continuing to drive innovative solutions for our customers. Our teams have made great progress this year in delivering on our Vision to Lead the Circular Economy and supporting our customers on their own sustainability journeys. Our Sustainability Journey At Pact, sustainability underpins our Vision, strategy, and business decisions. We have been a leader in sustainability for many years and it is an ongoing process of development, seeking to improve our performance, and helping us to make positive changes in alignment with our customers and other stakeholders. Pact’s latest initiative in our drive for a more sustainable future is an emissions reduction target. We have committed to reducing greenhouse gas emissions by 50% in Australia and New Zealand by 2030 in relation to the emissions produced directly at recycling and manufacturing facilities, and the indirect emissions from purchasing electricity from the grid to power those facilities, from a FY21 baseline.

In what is a first for an Australian-based manufacturing company, Pact Group has also reached an agreement to convert $420 million of existing loan facilities into Sustainability-Linked Loans (SLLs). Under this arrangement, Pact will receive loan margin benefits if annual sustainability performance targets are achieved, and a margin penalty if it underperforms. The sustainability performance targets are: 1. An increase in the percentage of recycled content across Pact's packaging portfolio. 2. Increasing the amount of recycled material processed and distributed to the external market. 3. Reducing scope 1 and 2 greenhouse gas emissions. 4. Reducing the gender pay gap. Our recycled content in packaging target aligns with Australian Packaging Covenant Organisation (APCO) targets, to which Pact is a signatory. Pact's 2025 End of Waste Promise is to eliminate all non-recyclable packaging and offer 30% average recycled content across Pact's plastic packaging portfolio. To help achieve these targets, Pact is investing $75 million over three years to install new technology and equipment with the capability to increase the recycled content in products including milk bottles, food packaging, mobile garbage bins and industrial packaging across our Australian network. This will also assist our customers in meeting their own ambitious APCO targets. In addition, we have recently announced that we are working to establish a strategic partnership with Woolworths that will see Pact use approximately 18,000 tonnes of recycled plastic each year to manufacture and supply for Woolworths’ own brand range, including milk bottles, meat trays, fruit and vegetable punnets, and beverage bottles. As part of this partnership Woolworths plans to replace corrugate boxes for transporting produce with Pact’s reusable plastic produce crates over the next three years, increasing usage from approximately 50 million to 80 million crates a year. Pact is also leading the way in the construction of a national network of recycling infrastructure, alongside our industry and government partners, creating food grade recycled resins for use in packaging. This pipeline has the potential to lift our recycling capacity up to 120,000 tonnes each year and will also help to create thousands of sustainable jobs. Our Innovation

Innovation is in Pact’s DNA. In FY22 Pact was proud to be recognised as one of Australia and New Zealand’s Most Innovative Companies for the ninth consecutive year in the prestigious annual list published by The Australian Financial Review and Boss Magazine. We were ranked ninth on the Manufacturing list from more than 700 nominated organisations. Pact was recognised for our world first innovative freeway noisewalls made from up to 75% recycled plastic, including traditionally hard to recycle soft plastics. We win when our customers win. Through our market leading innovative recycled plastic solutions, we have helped solve a number of challenges for our customers and convert numerous products to recycled product. We have achieved a number of firsts for the use of recycled content and these showcase the kind of solutions that can be achieved by an integrated, industry-wide approach and each of these innovations represents another step towards the End of Waste.

Dividend

The Board has resolved to pay a final dividend of 1.5 cents per share, franked to 65%, in respect of the year ended 30 June 2022. This will take total dividends for the year to 5 cents per share and represents a payout ratio of 25% of underlying net profit after tax. This is lower than our medium-term target to pay dividends greater than 40% of underlying net profit after tax, however in view of the current economic environment we believe this to be a prudent approach. The Board intends to return to our target payout ratio as economic conditions improve and normalise. Ray Horsburgh On behalf of all of us at Pact Group, I would like to pay tribute to Ray Horsburgh, who passed away in August. Ray was a distinguished and highly respected industry leader who served on the Pact Board for five years between 2015 and 2020. We remain grateful for his invaluable advice and the contribution he made to growing our business. He will be deeply missed and remembered fondly by many people. Thank you I would like to express my thanks and appreciation to you, our shareholders, for your continued support. Thank you also to my fellow Directors and to our dedicated management team. Most importantly, thank you to our talented and innovative people right around the Group. Through our collaboration and creativity, we are delivering on our commitments and continuing to see momentum in our strategic transformation. We have come a long way on our journey to delivering a more sustainable future, and I look forward to partnering with our customers and other stakeholders to continue that journey, creating an exciting future for our Company and delivering returns to you, our shareholders.

Raphael Geminder Non-Executive Chairman

At Pact, sustainability underpins our Vision, strategy, and business decisions.