1. Leiyi Huang (Sally) Siyang Zhang Hui Li Qun Yu (Jett) April 22 nd, 2014 1

2.  Introduction  Company Overview  Macro Review  Financial Ratio Analysis  DCF Valuation  Comparable Comps Valuation  Recommendation 2

3. Founded in 1987  Employee: 2500 + 7000  Public traded since 1997 (NASDAQ: SLGN)  52wk Range: $43.77 – $50.79  P/E: 17.52  Market Cap: 3.19 billion  Price @2014/04/21: $50.28 3

4. 4 margin 8%

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6.  Raw material  Demand from canned fruit and vegetable processing  Global economic condition 6

7.  Life cycle: ◦ Decline, Mature, Mature  Industry consolidation 7  Flat profitability ◦ Metal container: value-added features ◦ Closure: variety ◦ Plastic container: custom design

8. 8 Strengths Multi-year supply agreement Predictable cash flows Economies of Scale Weaknesses Indebtedness Unionized employee Opportunities Acquisition Cost reduction initiatives Threats Tighten of credit Seasonality Q3 Environmental and health regulations SWOT Analysis

9. 9 Bargaining power of Customers Bargaining power of Suppliers Threats of Substitute Intensity of Industry Rivalry Threats from New Entrants High Medium Low High Medium

10. Silgan HoldingsS&P 500Consumer Goods P/E17.618.619.2 10 @source from Yahoo.Finance

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13.  Raise debt for acquisitions and share buyback  Concerns about the quality of acquisitions: 1. Quality of Assets 2. Declined EBIT Margin 3. Accruals ratio improved 13 12/31/0912/31/1012/31/1112/31/1212/31/13 Tangible/TA62.0%59.3%60.5%53.9%47.6% Goodwill/TA13.7%14.9%13.1%15.5%19.6% FY2009FY2010FY2011FY2012FY2013 Accruals Ratios -27.7%42.6%80.6%52.3%45.6%

14. 14 High Leverage Cyclical Rated BB+ on bonds BB+ Average Yields are currently very low

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20. 20 Current Price: $50.28

21.  Debt management  Acquisition activities  Investment in R&D  Operating efficiency 21 Watch List