Orora Limited · ASX:ORA
Orora — Shareholder Meeting (October 2017)
28 slides from Orora's shareholder meeting presentation, Oct 17, 2017
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING 17 October 2017
Slide 2: Chris Roberts, Chairman
Chris Roberts Chairman
Slide 3: Important information
Important information This presentation contains certain forward looking statements which are subject to significant uncertainties which may be outside the control or knowledge of Orora. No representation, warranty or assurance (express or implied) is given or made by Orora in relation to any forwar
Slide 4: 2017 financial year highlights
2017 financial year highlights* NET PROFIT AFTER TAX (NPAT) EARNINGS BEFORE INTEREST AND TAX (EBIT) 14.4% $186.2m 11.1% $302.3m Double-digit underlying earnings growth EARNINGS PER SHARE (EPS) SALES REVENUE delivered for the 3rd year 14.6% 15.6¢ 4.9% $4,039m OPERATING CASH FLOW RETURN ON AVERAGE FUN
Slide 5: Strong shareholder returns
Strong shareholder returns Annual 11.0¢ Dividend AUD Per share Payout Ratio ~70% of Net profit after tax Orora Ltd 2017 5
Slide 6: Value-creating strategy
Value-creating strategy Orora Ltd 2017 6
Slide 7: Governance
Governance …strong corporate governance practices are designed to meet the interests of Orora’s stakeholders Orora Ltd 2017 7
Slide 8: Nigel Garrard, Managing Director & CEO
Nigel Garrard Managing Director & CEO
Slide 9: The Orora Way
The Orora Way ORS ZRA as THE OR) -RA WAY OUR SeUEF OUR VALUER Focus our OUTPERFORMANCE
Slide 10: Orora's blueprint for creating shareholder value
Orora’s blueprint for creating shareholder value ORGANIC RETURNS FOCUSED GROWTH SUSTAINABLE GROWTH CAPITAL ALLOCATION DIVIDEND Orora Orora North Australasia America Organic Growth Bolt-on M&A Adjacent 60-70% GDP Sales GDP+ Sales Capital (North America Focused) M&A Pay Out Ratio Growth Growth GDP bas
Slide 11: Safety
Safety LTIFR 1.6 1.6 (Lost time injury JUNE JUNE frequency rate) 2016 2017 RCFR 6.8 6.8 (Recordable case JUNE JUNE frequency rate) 2016 2017 Note: Safety metrics are calculated on a rolling 12 month basis. To enable accurate comparison, prior year statistics have been presented on a pro forma basis
Slide 12: Business performance
Business performance Orora Australasia Orora North America Fibre Beverage Orora Packaging Solutions Orora Visual Orora Ltd 2017 12
Slide 13: Business performance – Australasia
Business performance – Australasia EBIT 6.6% $213.6m SALES REVENUE 2.3% $2,001.6m Orora Ltd 2017 13
Slide 14: Glass facility, Gawler, South Australia
Glass facility, Gawler, South Australia $42 million investment to increase glass manufacturing capacity completed on time and on budget Orora Ltd 2017 14
Slide 15: Recycled paper mill (B9), Botany, NSW
Recycled paper mill (B9), Botany, NSW • 373,000 tonnes of paper produced in FY17 • Exited FY17 with production running approximately at nameplate Orora Ltd 2017 15
Slide 16: Business performance – a successful period
Business performance – a successful period Orora North America Orora Packaging Solutions Orora Visual Landsberg Packaging Solutions Manufacturing Orora Ltd 2017 16
Slide 17: Business performance – North America
Business performance – North America USD SALES GROWTH 11.4% $1,536m USD EBIT 23.1% $88.6m Orora Ltd 2017 17
Slide 18: Orora Visual
Orora Visual Orora Ltd 2017 18
Slide 19: Orora Visual - Video
Orora Visual - Video Orora Ltd 2017 To watch the video visit https://www.ororagroup.com/about/orora-visual 19
Slide 20: Point of Purchase (POP) market
Point of Purchase (POP) market Estimated target market size: USD10b (total market is USD20b) USD180m invested over Fragmented and regional industry structure provides growth last 12 months to opportunity establish a national • Multiple market participants footprint in the • Orora Visual is a top 5 p
Slide 21: Orora Visual customer segments
Orora Visual customer segments Orora Visual is a well balanced business with a broad customer base Orora Ltd 2017 21
Slide 22: Grow and innovation
Grow and innovation Orora Ltd 2017 22
Slide 23: Growth and innovation investment
Growth and innovation investment ~$25m committed to upgrade Fibre Packaging manufacturing capability at Revesby $23m committed for waste water treatment plant at B9 Orora Ltd 2017 23
Slide 24: Growth and innovation investment
Growth and innovation investment ~$29 million committed since 2015 to new product and $45 million process innovations Global Innovation Initiative • ~$15m committed in FY17 • Glass sleeving technology • Large format digital printer • Laser cutter AFR 50 Most Innovative Companies List Orora Ltd 2017
Slide 25: First quarter trading
First quarter trading • Australasia and North American businesses are ahead of the same period last year and trading in line with expectations • Major capital projects are progressing as expected Orora Ltd 2017 25
Slide 26: Old corrugated cardboard (OCC)
Old corrugated cardboard (OCC) OCC AUD$ / tonne OCC prices have retreated from highs seen in July/August 2017 Source: Average of various RISI OCC indexes in AUD Orora Ltd 2017 26
Slide 27: Outlook
Outlook Orora expects to deliver underlying earnings growth in FY18, subject to global economic conditions Orora Ltd 2017 27
Slide 28: Thank you
THANK YOU