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Rexam PLC 07 July 2008

Company news alert

Significant decline in common stock price

Common BUY Rexam PLC’s (Rexam) common stock has declined significantly since our last update report, primarily
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prices. In light free ofraw
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stock http://www.iirgroup.com/researchoracle/viewreport/show/20213
margin estimates for Rexam in our next update report. However, given the significant decline in
common stock price, we do not expect a change to our current rating.
Ticker: REX.L
Target price: GBp495.64
Current price: GBp357.501
Price change since (19.8%) We will reassess the common stock rating after the company releases its 1H 08 results in July 2008.
previous report:

ADR BUY The ADR has depreciated significantly since our previous update report, in line with the decline in
common stock. However, given the current price levels, we reiterate the ADR as a BUY.
Ticker: REXMY.PK
Target price: US$55.26
Current price: US$35.401
Price change since (20.6%) We will reassess the ADR (1 ADR= 5 common stock) rating after the company releases its 1H 08
previous report: results in July 2008.

Supervisor: Bhavesh Chauhan

Analyst: Ami Shah
Editor: Adil Bahar, PhD
Global Research Director:
Satish Betadpur, CFA
Next news due:
1H 08 results, July 2008
Investment horizon - short term actionable trading strategies
This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If
this report is provided to you by your broker under the Global Settlement, you may now also access (free of
charge) the short term trading outlook that we publish from time to time for this issuer, looking at the coming
5-30 days for readers with a shorter trading horizon. These are available online only at
www.researchoracle.com

In our FY 2007 update report, dated 03 April 2008; our fundamental valuation of the Rexam’s
common stock resulted in a target price of GBp495.64, representing a potential 11% upside. Since
then, the common stock has declined 21.3%.

The significant decline in Rexam’s stock prices is primarily attributable to the increase in the price of
crude oil and the concomitant increase in raw material for Rexam. The price of crude oil has increased
from US$101.68 per barrel since our last update report, dated 03 April 2008, to US$144.42 per barrel
on 04 July 2008, leading to an increase in prices of ethylene, a by–product of crude oil. Ethylene is a
major raw material for plastic manufacturers; hence, any increase in the price of ethylene will
negatively impact margins of plastic packaging manufacturers, including Rexam.

Footnote
1 We have taken the closing price for the common stock and US stock as of 03 July 2008, as US markets were closed on 04 July 2008 due

to American Independence day. The common stock price on 04 July 2008 was GBp350.50.

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