Orora Limited · ASX:ORA
Orora — Shareholder Meeting (October 2023)
25 slides from Orora's shareholder meeting presentation, Oct 19, 2023
Slide 1: Orora Limited Annual General Meeting – Chair's Address
Orora Limited Annual General Meeting 10.30 am Thursday 19 October 2023 Chair’s Address Good morning ladies and gentlemen. I'm Rob Sindel, Chair of Orora Limited, and I will Chair the meeting today. On behalf of the Board of Directors, I'm pleased to welcome you to the tenth Annual General Meeting of
Slide 2: Dividend, financial performance and sustainability
The Board declared a final ordinary dividend of 9.0 cents per share, unfranked. This brought the total dividend in FY23 to 17.5 cents per share, a 6.1% increase on FY22. This represented a total dividend payout ratio of 72.6%. Financial performance Post the sale of the Fibre business in 2020 underly
Slide 3: Conclusion / Compelling investment proposition
Conclusion / Compelling investment proposition Orora continues to present a compelling investment proposition to our valued shareholders and investors. This is underpinned by the company’s clear and consistent strategy and the differentiated value we offer as a design-led, sustainable packaging solu
Slide 4: Managing Director and Chief Executive Officer's Address
Managing Director and Chief Executive Officer’s Address Thank you, Rob. And thank you all for your continued support of Orora. Continued focus on safety The health, safety and wellbeing of our people remains a fundamental and ongoing commitment at Orora. Lost Time Injury rates remained relatively st
Slide 5: Australasia results and progressing our strategy
• Australasia’s EBIT was in-line with forecast, up 1.8% on prior year. This was driven by approximately 10% sales volume growth in Cans, across all formats, which offset the softness in Glass volumes. Pleasingly, revenue and earnings from new Glass products were all higher than the prior year. • Imp
Slide 6: Saverglass acquisition price and investment highlights
The Acquisition price is €1.29 billion Euro or approximately A$2.15 billion Australian dollars. As Rob mentioned, we have successfully completed the A$1.35 billion equity raising and we are well progressed with our acquisition debt financing. The works council consultation processes have successfull
Slide 7: Outlook
Outlook Finally, before I hand back to the Chair for the procedural part of the meeting, I would like to cover Orora’s outlook for FY24. In North America, as anticipated, volume softness in the second half of FY23 has continued in the first quarter of FY24, and these trading conditions are expected
Slide 8: Orora Annual General Meeting October 2023
Orora Annual General Meeting 19 October 2023
Slide 9: Important information
Important information Forward Looking Statements This presentation contains forward looking statements that involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to Orora. Forward look
Slide 10: Rob Sindel, Chair
Rob Sindel Chair 3
Slide 11: Board of Directors
Board of Directors Rob Sindel Brian Lowe Abi Cleland Chair Managing Director Independent & CEO Non-Executive Director Tom Gorman Sam Lewis Michael Fraser Independent Independent Independent Non-Executive Director Non-Executive Director Non-Executive Director 4
Slide 12: FY23 financial highlights
FY23 financial highlights • Disciplined execution of strategy delivers another solid increase in Group earnings, with underlying EBIT and underlying NPAT up 12.3% and 8.5% respectively Revenue Underlying Earnings Before Underlying Net Profit After • Earnings growth largely driven by continued Intere
Slide 13: Financial performance
Revenue ($m) Underlying EBIT ($m) 6.4% CAGR 12.6% CAGR 4,291.3 4,090.8 320.5 3,566.2 3,538.0 285.5 249.1 Financial 2,026.8 224.3 2,102.2 154.7 1,731.0 1,723.9 131.0 109.1 91.2 performance 1,835.2 1,814.1 1,988.6 2,264.5 133.1 140.0 154.5 165.8 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 1H 2H 1H 2H Stro
Slide 14: Sustainability goals
Sustainability goals Net zero emissions2 60% recycled content1 Prioritising action for our by 2050 for Glass beverage people and our 40% reduction in emissions2 containers by 2025 community by 2035 7 1. Pre and post-consumer 2. Scope 1 and 2 from FY19 baseline
Slide 15: Corporate governance
Corporate governance • Good corporate governance is integral • Board is committed to ensuring that it to our culture and business practices is comprised of individuals who collectively have the appropriate skills • Orora’s corporate governance and experience to develop and practices for FY23 comply
Slide 16: Compelling investment proposition
Compelling investment proposition Orora provides investors with a robust and defensive earnings profile with attractive growth upside Leadership Robust and Well invested Long term positions in diversified assets and customer trading attractive business model defensive growth relationships markets pr
Slide 17: Brian Lowe, Managing Director and CEO
Brian Lowe Managing Director and CEO 10
Slide 18: Orora safety performance update
Lost time injury frequency rate (LTIFR)* Recordable case frequency rate (RCFR)^ Orora safety performance update 9.5 7.2 2.5 2.6 FY22 FY23 FY22 FY23 LTIFR* = (Number of lost time injuries / Total number of hours worked for employees and contractors) x 1,000,000 RCFR^ = (Number of recordable case inju
Slide 19: FY23 operating and segment highlights
FY23 operating and segment highlights Strong earnings growth in North America with continued resilient earnings performance in Australasia North America Australasia Revenue Revenue impacted Continued Driven by strong EBIT Increase in revenue Underlying (USD) by softer macro- optimisation gains Reven
Slide 20: Progressing our business group strategies
Progressing our business group strategies Continued disciplined execution of our strategy to drive sustainable earnings growth Orora Packaging Solutions in North America – FY23 Progress Orora Beverage in Australasia – FY23 Progress Continued improvement in OPS financial performance and operating d
Slide 21: Introduction to Saverglass
Introduction to Saverglass Saverglass is a global leader in the design, manufacturing, customisation and decoration of high-end glass bottles for the premium and ultra-premium spirit and wine markets Sales by end-market Sales by geography Key investment highlights (CY22A, Glass)(1) (CY22A, Glass)(1)
Slide 22: Investment highlights
Investment highlights Unique acquisition of a market leader and a logical and compelling extension of Orora’s growth strategy as a global, sustainable value-added packaging solutions player 1 Unique acquisition of a global market leader, extending and enhancing Orora’s core competencies in premium s
Slide 23: FY23 sustainability performance highlights
FY23 sustainability performance highlights We continue to invest and make good progress with our sustainability goals and commitments • Achieved 38% recycled content (cullet) in • Scope 1 & 2 greenhouse gas emissions • Continued rollout of Our Orora Culture manufactured glass products, in line with
Slide 24: FY24 outlook
FY24 outlook • Whilst global economic conditions remain uncertain, Orora Group earnings are expected to be higher in FY241 • In North America, further margin accretion through account profitability programs and a continued focus on cost management, is expected to be largely offset by ongoing volume
Slide 25: Orora Annual General Meeting – Thank you
Orora Annual General Meeting 19 October 2023 Thank you