Winpak Ltd. · TSX:WPK
Winpak — Shareholder Meeting (April 2024)
48 slides from Winpak's shareholder meeting presentation, Apr 23, 2024
Slide 1: Annual Meeting of Shareholders April 23, 2024
TM Annual Meeting of Shareholders April 23, 2024 Beginning at 4:00 pm CDT
Slide 2: Voting Polls Are Open
VOTING POLLS ARE OPEN Voting on all matters will be conducted by electronic ballot. Please register your votes by selecting the “For” or “Against” button next to the name of each proposed director. For the resolution with respect to the appointment of KPMG LLP as the Company’s Auditors please select
Slide 3: Annual Shareholders Meeting: President & CEO Presentation
TM Annual Shareholders Meeting PRESIDENT & CEO PRESENTATION APRIL 23, 2024 3
Slide 4: Disclaimer
Disclaimer Certain statements made in the following discussion contain forward-looking statements including, but not limited to, statements concerning possible or assumed future results of operations of the Company. Forward-looking statements represent the Company’s intentions, plans, expectations a
Slide 5: To Our Valued Shareholders & Others
To Our Valued Shareholders & Others Winpak has established and published a Disclosure Policy. This Policy actively encourages meetings by investors, potential investors and others with Winpak’s Spokespersons. When conducting such meetings, Spokespersons must not disclose material information that ha
Slide 6: 2023 Results in Review
A\\ 2023 Results in Review ey 6
Slide 7: Revenue Comparison
REVENUE COMPARISON 2023 $US Millions 2023 2022 Decrease $1,141 $1,181 3.4% 1141 1181 1002 887 890 874 853 787 797 823 715 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Ten-Year Compound Average Growth Rate (CAGR): 4.8% 7
Slide 8: Geographic Markets
GEOGRAPHIC MARKETS 2023 Winpak markets its products globally, with a prime focus on North America. Revenue United States 79% 14% 7% Canada Other 8
Slide 9: Products & Markets
PRODUCTS & MARKETS 2023 Sales Flexible Packaging 53% 44% Rigid Container & 3% Flexible Lidding Packaging Machines 9
Slide 10: Net Income Comparison
NET INCOME COMPARISON 2023 $US Millions 2023 2022 Increase $148.1 $128.3 $19.8 15.4% 148.1 128.3 119.3 114.8 111.6 106.3 99.2 104.3 103.8 71.4 78.4 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Ten-Year Compounded Average Growth Rate (CAGR): 7.6% 10
Slide 11: Net Earnings Per Share 2022-23 Comparison
NET EARNINGS PER SHARE 2022-23 COMPARISON 2023 (Cents) 11
Slide 12: EBITDA and EBITDA Margin
EBITDA and EBITDA MARGIN 2023 ($US Millions, %-age) 250 228.5 25 220.0 200.2 198.5 200 179.2 192.0 190.2 191.5 187.8 20 150 131.5 145.6 15 100 10 50 5 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 EBITDA EBITDA-Margin 12
Slide 13: 2023 Results Recap
2023 RESULTS RECAP. 2023 US $ Millions Increase 2023 2022 $ % Revenue $1,141 $1,181 $(39.7) (3.4)% EBITDA $228.5 $220.0 $8.5 3.9% Overall, Volumes in 2023 decreased by 3.4 percent. Rigid and Modified Atmosphere packaging declined only marginally, whereas other flexibles activities suffered from dest
Slide 14: 2024 – First Quarter Results
2024 – First Quarter Results 14
Slide 15: Quarter Revenue Comparison
Quarter 1 REVENUE COMPARISON 2024 vs 2023 ($US Millions) Decrease 2024 2023 _$_ _%_ $276.8 $304.5 $(27.7) (9.1)% Adjusted Volumes in Q1 2024 were essentially equal compared to the same period in 2023, with volume growth of 2 percent in Flexibles. 15
Slide 16: First Quarter Net Earnings Per Share Comparison
FIRST QUARTER NET EARNINGS PER SHARE COMPARISON Q1 2024 (Cents) 70 65 55 60 55 60 50 45 52 40 35 44 44 38 30 41 36 25 35 20 25 25 15 10 5 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 16
Slide 17: Earnings Per Share Comparison Q1 2024 vs Q1 2023
EARNINGS PER SHARE COMPARISON Q1 2024 VS Q1 2023 17
Slide 18: Raw Materials and Foreign Exchange Index
RAW MATERIALS AND FOREIGN EXCHANGE INDEX 2024 (Raw Materials Index) (Exchange Rate) 210 0.82 200 0.8 190 180 0.78 170 0.76 160 150 0.74 140 0.72 130 120 0.7 2017 2018 2019 2020 2021 2022 2023 2024 Winpak's 8 most important Raw Materials CD Dollar Exchange 18
Slide 19: Capital Projects
W | WINPAK IT’S OUR NATURE TO PROTECT™ CAPITAL PROJECTS
Slide 20: CAPEX Investments Review
CAPEX INVESTMENTS REVIEW ($US millions) (%-Revenue) 80 10.0% 72.2 71.2 70 68.7 9.0% 58.1 8.0% 60 53.7 51.1 51.3 7.0% 48.1 48.3 49.1 50 6.0% 40 5.0% 30 4.0% 3.0% 20 2.0% 10 1.0% 0 0.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CAPEX % of Revenue Over the past decade, CAPEX of $572 million has
Slide 21: Sustainability Values and Pillars
Company Overview Sustainability values and pillars IT’S OUR NATURE TO PROTECT Provide the best packaging solutions for people and planet 21
Slide 22: Our Sustainability Transformation
OUR SUSTAINABILY TRANSFORMATION Change the Perspective • Winpak files its Scope 1, 2 and 3 disclosure for “climate change” with • 2023 Score of A- “Leadership Category” – Top 18% of companies • Next steps: • 3rd Party verification for Scope 3 Customers/Retailers • Science-Based-Targeting (SBTi): Agr
Slide 23: Sustainable Products - Go Forward Outlook
SUSTAINABLE PRODUCTS - GO FORWARD OUTLOOK Sustainable Product Platforms – Continued Focus in 2024 PCR Content Recyclable Recycle Ready Renewable Downgauge & PET Semi-rigid PP Trays Repouch Content Lightweight PCR BOPET PP Cups Reform *EcoWrap VFFS Films Laminates Platform HFFS *RAPS FFS Sheet *Retop
Slide 24: Winpak Division Winnipeg, MB North Side Expansion
WINPAK DIVISION WINNIPEG, MB North Side Expansion Eco-Form and Re-Form Building 24
Slide 25: North Side Expansion
North side Expansion April 2024 • 210,000 sq.ft. expansion • Under construction, piling complete, steel erection under way. - • Project on time and on cost • Room for 3 major production lines • R&D & Application Center • Start-up Q2, 2025 25
Slide 26: New Fourth Extrusion Coating Line
NEW FOURTH EXTRUSION COATING LINE 2024 26
Slide 27: New Flexo Printing Press
NEW FLEXO PRINTING PRESS 2024 27
Slide 28: Products: A Fresh Start to Sustainable Packaging
Products A Fresh Start to Sustainable Packaging • ReForm • Flexible thermoformable polyolefin-based film with low haze and high clarity • ReLam • Flexible non-forming polyolefin-based film with low haze and high clarity • ReLid – ReTop !New in 2024! • High speed heat sealable polyolefin-based liddin
Slide 29: Products: Eco-Form Renewables
Products Eco-Form - Renewables (Thermoplastic Starch, TPS) • EcoForm – TPS based forming and lidding films, pre- dominantly semi-rigid applications but can be leveraged into rigid and flexibles. • Collaboration with National Research Council (NRC) • High Oxygen barrier (long shelf-life) • Low Carbon
Slide 30: American Biaxis Inc. Winnipeg: BOPA Expansion
AMERICAN BIAXIS INC. WINNIPEG: BOPA 3 EXPANSION
Slide 31: American Biaxis: Examples of Current BOPA Uses
AMERICAN BIAXIS INC. EXAMPLES OF CURRENT BOPA USES 31
Slide 32: Winpak Lane, Inc. Rialto, CA
WINPAK LANE, INC. RIALTO, CA 32
Slide 33: Go Forward Outlook
GO FORWARD OUTLOOK Innovation/Product Requirements • Reengineering and marketing new models. Phoenix (W-18) and Genesis (W25H) and Titan (WVF) branding along with new features and benefits will bring fresh look to WLI machinery offerings. Titan performance at installation site is very good. Customer
Slide 34: Winpak Heat Seal – Extrusion Coating Expansion
WINPAK HEAT SEAL – Extrusion Coating Expansion LAND ACQUISITION / Site Expansion with new High-performance Converting Line
Slide 35: Products: EcoSeal Recyclable Polypropylene Lidding
Products EcoSeal - Recyclable Polypropylene lidding to seal to Polypropylene cup • We are developing a sustainable solution: a 100% polypropylene lid that not only enhances recyclability but also resolves the issue of 2-dimensional and small-sized lids acting as contaminants in the recycling stream.
Slide 36: WCG – WiiCare / WinSpeed Site Acquisition Northvale, NJ
WCG – WIICARE / WINSPEED SITE ACQUISITION NORTHVALE, NJ
Slide 37: Products: Pharmaceutical Product Tree
Products Pharmaceutical Product Tree 37
Slide 38: Winpak Portion Packaging Sauk Village, IL
WINPAK PORTION PACKAGING SAUK VILLAGE, IL 38
Slide 39: Winpak Portion Packaging: Examples of Current Products
WINPAK PORTION PACKAGING EXAMPLES OF CURRENT PRODUCTS 39
Slide 40: New In-Mold-Label Injection Molding Center
WINPAK PORTION PACKAGING New In-Mold-Label (IML) Injection Molding Center 40
Slide 41: FlexPod and SqueezPod Family
FLEXPOD and SQUEEZPOD FAMILY RECYCLABLE, MINIMALIST, HIGH BARRIER AND FUNCTIONALITY
Slide 42: High Barrier Pouch Barrier Spouts/Caps
HIGH BARRIER POUCH BARRIER SPPOUT/CAPS A WORLD PREMIERE: HIGH BARRIER SPOUTS AND CAPS Winpak’s new barrier spouts and caps are lighter, space saving Winpak’s new and almost barrier oxygen spouts migration and caps free* are lighter, to almost space saving and keep your foodmigration oxygen fresher,
Slide 43: Overview and Forward-Looking Statements
TM OVERVIEW AND FORWARD-LOOKING STATEMENTS
Slide 44: Company Overview: Strong Financial Position
COMPANY OVERVIEW Strong Financial Position Debt-free • Remaining long-term debt was retired in Q1/09. • Net cash position of $541.9 million at end of December 2023, an increase of $143.2 million. The net investment in working capital decreased by $46.6 million. Shareholders’ equity of $1,350 million
Slide 45: Company Overview: Looking Forward - Raw Materials
COMPANY OVERVIEW Looking Forward - 1 Raw Materials • Input costs have stabilized. On an annual average, raw materials decreased in 2023 by 13.9% from 2022 after rising by an unprecedented 43.8 percent in 2021. Thus far in 2024, raw materials have increased by 9%. • In any event, 76 percent of Winpak
Slide 46: Company Overview: Forward Looking - Foreign Exchange
COMPANY OVERVIEW Forward Looking - 2 Foreign exchange impacts • 1 cent increase in CDN $ equates to approx. 0.8 of a cent decrease in EPS. However, the effect is not immediate due to the Company’s hedging policy which covers 50% to 80% of conversion requirements for the ensuing 9 to 15 months. • The
Slide 47: Question & Answers
QUESTION & ANSWERS Please submit questions using the instant messaging feature of the virtual interface and limit your questions to topics relating to today’s subject matters. When asking your question, please state your name; the entity you represent, if any, and confirm you are a registered shareh
Slide 48: Thank you for your participation.
Thank you for your participation.