TRANSFORMATIONS 2015 Corporate Social Responsibility Report

TRANSFORMATIONS 2015 Corporate Social Responsibility Report OUR RESPONSIBILITIES Dear Fellow Stakeholders, At Berry Plastics, our corporate socia...
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TRANSFORMATIONS

2015 Corporate Social Responsibility Report

OUR RESPONSIBILITIES

Dear Fellow Stakeholders,

At Berry Plastics, our corporate social responsibility vision is to create and maintain a safe working environment where we develop innovative and socially responsible products. We will accomplish this by operating our business in an ethically-sound manner to foster the satisfaction and growth of our employees, who in turn join with us in being stewards for our communities.

A key attribute of Berry Plastics is our ability to design and implement strategic initiatives that result in positive transformation not only within our Company, but also within the markets we serve and the communities where we have facilities.   This commitment to positive transformation is not new to Berry Plastics; it is a fundamental pillar upon which our Company was founded. From our infancy and throughout our organic and acquisition growth, our dedication to generating positive change has been “Creating transformations is a unwavering. commitment we have to ourselves,   our customers, our stakeholders, and our communities. Our pledge to you These transformations have allowed us to is that we will continue on this path.” prudently grow our footprint to best service our customers, perfect our processes so that we maximize efficiencies in our facilities, develop products that help foster the reduction of our carbon footprint, as well as that of our customers, and maintain a culture that allows our employees to reach their full potential and in turn give back to our communities.   The ability to create positive transformations is in our DNA. Creating positive transformations is a commitment we have to ourselves, our customers, our stakeholders, and our communities.   I hope that you enjoy reading this report and the highlights it offers of some of the initiatives that we viewed as key in 2015.

Environment

Safety

Community & Corporate Citizenship

Ethics & Compliance

Jon Rich Chairman Chief Executive Officer

OUR COMPANY In July 2015, we announced the intent to acquire AVINTIV, Inc. (AVINTIV). Following, on October 1, we completed this transformational acquisition that will allow us to capitalize on the rapidly growing global markets for hygiene and healthcare, with products complementary to our existing portfolio. Through this acquisition, we added 23 locations in 14 countries, over 4,500 employees, and one of the broadest range of process technologies in the nonwovens industry. As one of the world’s leading developers, producers, and marketers of specialty materials used in infection prevention, personal care, and high-performance solutions, AVINTIV supplied product to many of the same leading consumer and industrial product manufacturers that  Berry Plastics  supplies. With this acquisition and the addition of both products and global facilities, we will be able to better meet the needs of our customers on a global basis. Through fiscal year 2016, we will remain focused on the integration of the heritage AVINTIV facilities, products, and employees into our Company. To take full advantage of the AVINTIV acquisition, we have reorganized the total Company into three marketfocused divisions that are designed to allow us to best serve our customers, drive future growth, and maximize our shareholder value. At Berry Plastics, we take great pride in how our Company has transformed and in the products and services we offer. Our ability to strategically grow and to support our customers at every stage of the product development process — including expertise in consumer insights, ideation and design, manufacturing, and research and development — is what has allowed us to become a leader in the industry.

300+ MILL ION lbs

of closures produced annually

1,286

active granted patents

3,321

primary manufacturing machines

3.3 BILLION lbs

of resin purchased annually

Numbers reported are approximate.

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OUR MARKETS The AVINTIV acquisition in 2015 was transformational for the Company. Not only did the acquisition allow us to expand into new geographic regions, it also allows us to expand into new markets. Our expertise in value-added consumer packaging, engineered materials and now specialty materials is part of what makes us a leader in the marketplace. With an expanded offering in personal care, health care, household, industrial building and construction, and foodservice products, we are well positioned for growth in 2016.

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Personal Care

Health Care

Foodservice

Household

Food

Industrial

Beverage

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TRANSFORMING PRODUCTS Essential to our ability to create positive transformation within our industry is our ability to work closely with our customers to develop new, and improve existing, products. To support this, located under the same roof as one of our largest manufacturing facilities, we have a state-of-the-art design studio — Blue Clover Studios. Blue Clover Studios specialize in designing packaging that is not only creative, but also meets the demands of manufacturing. In conjunction with Blue Clover Studios, we work with clients on projects ranging from line extensions to fully disruptive designs. With our expertise in manufacturing and Blue Clover Studios’ mastery of design, we can help our customers get to market faster than ever before. Our design team is focused on finding the perfect blend of creativity and functionality that fits our customers’packaging needs,while optimizing efficiencies in manufacturing and the supply chain. By using an on-site model shop, we have the ability to work as fast as our clients can make decisions — leading to a real speed to market advantage.

Creativity meets functionality. Our design team focuses on finding the sweet spot between what is imaginable and what is manufacturable. Designing for the world’s leading brands. We blend inspiration with our customers’ vision and brand essence to create winning designs. Bringing package design to life. From 3D renderings to our full-service model shop, we have the tools necessary to breathe life into the future of our customers’ brand.

Blue Clover Studios knows design and manufacturing. Our key advantage is that we understand the process from start to finish, including production equipment and how it works, supply chain, shipping and logistics, and how package design and shape impacts each.

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SUSTAINABILITY: MORE THAN A TREND At Berry Plastics, sustainability is more than a trend, more than a report, and more than a statement. It is stewardship — stewardship of the environment, stewardship of our economic and fiscal results, and stewardship of the communities in which we live and work. We believe we can provide quality consumer packaging, engineered materials, and specialty products, as well as grow our business, while also sustaining our environment, our local communities, and our employees. We practice stewardship every day through operational excellence, utility and waste reduction initiatives, source reduction, recycling, efficient transportation, research of new materials, charitable giving, volunteering, and providing a safe and prosperous workplace.

Materials are at the heart of every product we manufacture. At Berry Plastics, we strive to provide the highest quality products and services that consistently exceed our customers’ expectations. We are focused on continually optimizing our product designs to reduce material usage and design for recyclability. Furthermore, we support the research and development of practical and economical alternatives to conventional fossil fuel based raw materials. Waste We are minimizing waste in our manufacturing plants and finding new ways to put our waste to use. We use the EPA’s waste hierarchy of reduce, reuse, and recycle to guide us in our decisions. Plant level sustainability teams provide best practices that are leveraged across the Company. This is done in support of our waste reduction program which has a target of decreasing landfill waste intensity by 5% in 2016 versus 2015.

People

SUSTAINABILITY Profit

Materials

Planet

Not only are we concerned about our direct waste, we are also concerned about the entire life cycle of our products. At Berry Plastics, we support the research and development of practical and economical end-of-life scenarios for our products that prevent them from accumulating in the landfill or the natural environment. Secondary Packaging

Berry Plastics’ sustainability vision is to continuously improve our operations, products, and services to become more environmentally, socially, and economically sustainable.

TRANSFORMING OUR PROCESSES Utilities We strive to minimize our environmental footprint and conserve natural resources by reducing our electricity, natural gas, and water consumption. Our manufacturing sites each have a utilities leader responsible for spearheading utility reduction by identifying, implementing, and translating utilities best practices. Our target is to reduce electricity, natural gas, and water intensity each by 1% per year.

As a leading packaging manufacturer, we know the criticality of packaging – protection of products for the safety of consumers. Every product we create requires packaging to get to our customers, such as corrugated boxes, stretch wrap, polyliners, and pallets. We optimize our secondary packaging to minimize its environmental impact, while still protecting our products, including the use of reusable packaging where feasible. By focusing on these areas, we strive to manufacture products that delight our customers, minimize our environmental impact, and provide profitable results.

Emissions We acknowledge the importance of knowing and mitigating our greenhouse gas (GHG) emissions, which is why we track both our Scope 1 and Scope 2 GHG emissions. Our GHG inventory was initially verified for method and accuracy by the EPA as part of the Climate Leaders program. Our target is to reduce our GHG intensity by 1% per year.

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THE IMPORTANCE OF RECYCLING

Robert Flores, Director of Sustainability for Berry Plastics

ENVIRONMENT

Similar to change, transformation is a word that often generates questions —how long will the period last, will the anticipated result be realized? For me, and many others at Berry Plastics, the words transformation and change generate excitement — we see transitions as opportunities for the betterment of the whole.

ENERGY USE As our facility footprint continues to grow and as we increase automation in our facilities, we are cognizant of the fact that our energy usage will grow as well. To maximize our energy efficiency, we: • Identify, share, and translate utilities best practices across our Company • Systematically replace energy intensive processes with energy efficient processes • Train our employees to identify electrical, gas, and water waste • Implement ISO 50001 Energy Management Systems compliant processes to reduce energy intensity

ENVIRONMENTAL PERFORMANCE (per thousand pounds processed)* Electricity (MWh)

2013

2014

Improvement

0.63

0.62

0.9%

Natural Gas (therms)

1.12

1.20

-7.1%

Greenhouse Gas Emissions (Metric Tonnes CO2 eq)

0.32

0.32

0.2%

Water (gal)

153

145

5.4%

Landfill Waste (lbs)

11.9

11.0

7.6%

* The data presented in this table is based on manufacturing sites operated by Berry Plastics for the full reporting year. This data has not been audited by a third party.

Similar to Berry Plastics, positive transformations have also been occurring in the recycling industry. While the industry’s efforts have not been without naysayers, education and awareness seem to be key factors in boosting the industry’s success. According to a recent study, the recycling industry recycled nearly 300 billion pounds in 2014 and is responsible for nearly half a million jobs and over 100 billion dollars of economic impact in the United States alone¹. Specifically for plastics, one of the many benefits is their recyclability. Although postconsumer plastic recycling began with #1 PETE and #2 HDPE bottles, most recyclers now accept all rigid plastics in their recycling programs². While most communities do not accept flexible plastic films and bags in curbside recycling programs, they can be recycled through the extensive network of drop-off recycling centers³. At Berry Plastics, we strive to encourage recycling through increased awareness and participation in recycling programs. Much of our efforts are through partnerships with organizations such as the Association of Plastic Recyclers, the American Chemistry Council’s Flexible Film Recycling Group, SPI: The Plastics Industry Trade Association’s Recycling Committee, the Wrap Recycling Action Program, and Preserve’s Gimme5 program. Many of our facilities also host a variety of events, ranging from Earth Day celebrations to recycling drop-offs, designed to encourage recycling at the local level. Each partnership and activity has a different focus and intended audience. Our efforts in this area are intentionally broad, because we believe in recycling and want as many of our products as possible to be recycled. Lastly, we not only encourage post-consumer recycling, but we also practice recycling as a part of our manufacturing processes. Every day at our facilities we recycle scrap we generate — ranging from plastic web trim to corrugated cardboard boxes to stretch wrap. We also use millions of pounds of post-consumer recycled plastic in our products every year. ¹John Dunham and Associates on behalf of the Institute for Scrap Recycling Industries, Inc. “Economic Impact Study U.S.- Based Scrap Recycling Industry 2015”. 2015. ²The Association of Postconsumer Plastic Recyclers. “Survey of Each State’s Largest Municipality Residential Plastic Collection Programs 2014 Overview”. 2014. ³Moore Recycling Associates Inc. “Plastic Film and Bag Recycling Collection: National Reach Study”. 2012.

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SAFETY OUR NUMBER ONE PRIORITY Our number one priority and core commitment at Berry Plastics is the safety of our employees and contractors. Because we continually transform our safety practices and procedures, our employees have diminished the incident rate to be far below the industry average of 4.3. We believe that education and empowerment are fundamentals to a safe working environment in every facility. Day-one orientation includes a general safety training course for new employees and first contractor visits. To supplement every employees’ education of safety according to their specific responsibilities, we offer online courses through Berry University that all employees must complete. At Berry Plastics, we are committed to conducting our operations with the highest regard for the safety and health of our employees, the public, our customers, and the protection and preservation of the environment. We believe that injuries and environmental impacts can be eliminated through effective awareness, training, accountability, and compliance. It is the direct responsibility, dedication, and commitment of all Berry Plastics employees to maintain a safe workplace and support the sustainability efforts.

EHS FRAMEWORK Special Risk Areas Ergonomics

Environmental

Health & Wellness

Emergency Preparedness & Fire Prevention

Motor Vehicle Safety

Chemical Management

Contractor Safety

Hazard Management

“By transforming the safety practices of Berry Plastics, we are focused on creating the best safety environment possible for our employees. In recent years, we have used statistical analysis to recognize when safety incidents occur. With statistical findings, we have found it is imperative to place emphasis on employees with less than six months of experience in our Company. The education continues on a daily basis to all employees through safety discussions, on-going training, evaluation of near miss incidents, and recognition of safe behaviors.”

Jim Alexander, Vice President of EH&S/Operational Excellence

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Machine Guarding

Management of Change

Personal Protective Equipment

Equipment Inspections & Preventative Maintenance

Hazardous Energy Control

Training & Communications

Foundational Employee Engagement & Behavioral Safety Incident Reporting & Investigation

Leadership & Accountability

Regulatory Compliance

Hazard Analysis & Higher Hazard Tasks

Corrective & Preventative Actions

Housekeeping & 5S

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COMMUNITY & CORPORATE CITIZENSHIP GIVING BACK IN PRYOR, OKLAHOMA At Berry Plastics, we encourage our employees and facilities to pursue initiatives for the betterment of our communities. A prime example of this is the Community Involvement Team at our Pryor, Oklahoma, facility. The group regularly organizes events so that employees can give back to the community by providing assistance to an assortment of organizations. While the team has raised monetary funds for local charities, they also prioritize volunteering their time as well. Our Pryor Community Involvement Team has donated to Pryor Animal League, Relay for Life, Blue Star Mothers, Special Olympics, Wallis Manor Retirement Village, conducted a local winter clothing drive, and assisted a host of varied organizations.

“I enjoy being on the Community Involvement Team because when a group of people is focused on helping others, they forget their differences and work together with a purpose that is much stronger than when the focus is just making product or profit. It’s important for us to be involved in the community because everyone is having a tough time in one way or another, and it’s our responsibility to spread kindness as much as possible. Bring a smile to someone’s face and maybe it will balance out a frown somewhere down the road.”

Paul Martin, Warehouse/Forklift Driver­, Pryor, Oklahoma

TEACHER BOOTCAMP IN EVANSVILLE, INDIANA With changing demographics and an increasing retirement pool within their local community, our downtown Evansville plant realized that in order to ensure an available talent pool they must work closely with local educators. By partnering with four local manufacturing corporations, the group was able to raise the awareness of careers in manufacturing and provide teachers and counselors with first-hand knowledge of the growth in manufacturing and related careers. The two-week program was designed to break stereotypes of manufacturing, and help close the skills gap so our community is prepared for future growth. This program also aided in providing educators with hands-on experience, to take back to their classrooms, in relation to job availability and responsibilities, wages, work conditions, and career potential. Thirty educators attended Teacher Bootcamp consisting of presentations, demonstrations, hands-on work experience, and plant tours. We are dedicated to helping educate our communities on our transforming society, and specifically assist those interested in a manufacturing career — it is planned for this initiative to be an annual event.

“The facilities we visited had many things I will bring back to my students, but the one fact that touched me the most was the pride that the employees beamed to us at all levels. This validates the concept that you need to find and or prepare for a job that you will like, and be ready for your path to change. It also shows how important it is to treat your employees fairly, and reward them for a job well done. I will bring these stories back to my students and hopefully encourage them to think they can do this if they are willing to work hard. I am thankful for the new people I have met and were willing to come and share their success stories with the classrooms.”

Kathy Hughes, Teacher Bootcamp Attendee

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EARTH DAY AT BERRY PLASTICS

EMPLOYEE VOLUNTEER SPOTLIGHT - FREDDY TREJO

From hosting students on a facility tour to learn about recycling, to planting trees, picking up litter, and hosting coloring contests, our facilities embraced Earth Day 2015 in their own fashion. Each event left a lasting impression not only on the individuals who participated, but also on the communities where the events were conducted. As part of the Corporate-wide celebration of Earth Day 2015, we announced that we would begin a global scholarship program for eligible dependents of Berry Plastics employees.  As a part of the program, applicants are required to complete an Earth Day or sustainability oriented project. We will announce scholarship recipients on Earth Day 2016.

Creating positive changes for our employees, within our communities, and for the environment continues to be a common trend among Berry Plastic facilities. One employee, Freddy Trejo (Printing Supervisor at Berry Plastics’ Henderson, Nevada, facility), dedicates his time not just to the community, but to the United States. Freddy has been with Berry Plastics for over three years, but has committed himself to the United States Army for over 26 years. Freddy, Battalion Command Sergeant Major, has transformed himself into a commander, employee, husband, and father. As the first in his family to attend college, Freddy decided the United States Army was his guide to carving the future of his education and career. After attending several community colleges, he graduated with a Bachelor’s degree in business management from the University of Phoenix in 2000. Freddy believes that education is never ending; consequently, he is currently enrolled in the United States Army Sergeant Major Academy where he was honored as the first of a brigade size element to complete the Senior Enlisted Joint Professional Military Education II. From decorating plastics to commanding American soldiers, Freddy strives to make a difference in his personal family, his United States Army family, and his Berry Plastics family. The Army molded Freddy into the man he is today, and he carries that mantra throughout all aspects of his life, especially in his career with Berry Plastics. Preparing for his next deployment within the year, Freddy has already completed two deployments to Iraq. Freddy exemplifies the idea of giving back. The Command Sergeant Major spends his weekends driving about his community with bags of clothes and food in his back seat to donate to homeless veterans he discovers throughout the city. He believes that every veteran is his brother or sister, and it is his duty to hug, clothe, and feed them.

“I will never leave a fallen comrade. My comrades come from many different backgrounds, some decorate plastics containers, and some bear the uniforms of American service members. We all, sometime in our lives, need a hand to make it in life. I will never leave you fallen, I will always extend an ear to listen, I will always extend a hand to help, in whatever is humanly possible, I will always embrace our differences and love you just the same. You will never be left behind by me,” said Freddy Trejo in referencing the Warrior Ethos.

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Risk Management

ETHICS & COMPLIANCE

As a measure to mitigate risk, we have in place a series of procedures and training modules surrounding emergency response. In addition, we have in place committees, procedures, and reporting avenues to ensure ethical behavior.

Conflict of Interest We believe our employees are our most valuable asset and are the fuel that drive the transformation throughout the Company, with our customers, and throughout our communities. In fact, we attribute our success as a company in significant part to our ability to recruit, hire, maintain, and develop a positive and productive work force. As such, we are committed to a work environment where all employees can thrive and meet their potential.

ETHICS AND COMPLIANCE PROGRAM It is the policy of Berry Plastics and its subsidiaries to conduct business in accordance with the highest ethical, moral, and legal standards. In so doing, we conduct our business efficiently, in good faith, with due care, and in the best interest of our Company, our employees, and our shareholders. In 2014, as we increased our global footprint, we rolled-out an enhanced Ethics and Compliance Program. The new Program provides greater detail into the structure, training, and behavioral expectations of our employees, dedicated groups and committees within our company, and of those with whom we conduct business.

We firmly believe that directors, officers, and employees of Berry Plastics have a duty to be free from the influence of any conflicting interest when they represent our Company. They are expected to deal with customers, suppliers, vendors, and all others doing business with Berry Plastics on the basis of what is in the best interests of the Company without favor or preference based on personal considerations.

Our Customers We conduct a yearly online customer satisfaction survey and act accordingly to address feedback. Our sales force, product line managers, and executive management teams are trained in anti-corruption measures yearly through Berry University with periodic updates and reminders provided by our legal department. As a Company, we require that our employees and suppliers comply with all antichild and forced labor and related laws, including those designed to eliminate human and animal suffering. And, we have adopted policies and procedures in line with the stated purpose of those laws. Our Global Acquisition and Accountability policy can be found on our website at berryplastics.com.

A key component of this program is an enhanced Ethics Hotline, providing local alert line numbers to ensure that employees at our facilities across the globe have an avenue through which they can report any concerns surrounding a possible compliance issue or violation of Company policy.

POLICY STATEMENTS We are committed to creating a positive work environment where employees can build skills and competencies to grow their careers. This includes adopting U.S. and/ or local country safety standards (whichever is greater) and ensuring fair employment practices in all of our sites around the world.

Code of Business Ethics We have a Code of Business Ethics which all employees and Board members must follow. The Company’s Code of Business Ethics is posted externally in the investor section of our website at berryplastics.com.

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BOARD OF DIRECTORS

CONTACTS

The Company’s Board of Directors has Audit, Compensation, Nominating and Governance, and Executive committees. Each committee has operating procedures which outline how members are selected and their duties as a committee member.

SUSTAINABILITY

B. Evan Bayh

Senior Advisor of Apollo Global Management and Partner at McGuireWoods, LLP Joined 2011

Jonathan D. Rich Chairman and Chief Executive Officer Joined 2010

Robert V. Seminara Senior Partner of Apollo Global Management Joined 2006

Jonathan F. Foster

Founding and Managing Director of Current Capital LLC Joined 2014

Carl J. (Rick) Rickertsen Managing Partner of Pine Creek Partners Joined 2013

Robert A. Steele

Former Vice Chairman of Health Care at Procter & Gamble™ Joined 2014

Idalene F. Kesner

Dean of Indiana University’s Kelley School of Business Joined 2014

Ronald S. Rolfe

Former Partner of the Litigation Department of Cravath Joined 2013

Stephen E. Sterrett

Former Senior EVP and CFO of Simon Property Group Joined 2015

Robert Flores +1 (812) 306-2277 [email protected] berryplastics.com/about-us/sustainability

CORPORATE COMMUNICATIONS Eva Schmitz +1 (812) 306-2424 [email protected] berryplastics.com/press

INVESTOR RELATIONS Dustin Stilwell +1 (812) 306-2964 [email protected] ir.berryplastics.com

CONNECT WITH US linkedin.com/company/berry-plastics

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Forward-Looking Statements This report contains “forward-looking” statements concerning future events and financial performance. Words such as “expects,”“anticipates,” “estimates” and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Factors that might affect: a) our packaging segments include product demand fluctuations; availability/cost of raw materials; competitive packaging, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve productivity improvements or cost reductions; mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange or tax rates; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the company as a whole include those listed plus: changes in senior management; successful or unsuccessful acquisitions and divestitures; regulatory action or issues including tax, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; litigation; strikes; labor cost changes; rates of return on assets of the company’s defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget, sequestration and debt limit; reduced cash flow; ability to achieve cost-out initiatives; interest rates affecting our debt.

101 Oakley Street | Evansville, IN 47710 | 1.877.662.3779 | berryplastics.com

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