Winpak Ltd. · TSX:WPK
Winpak — Shareholder Meeting (April 2022)
47 slides from Winpak's shareholder meeting presentation, Apr 26, 2022
Slide 1: Annual Shareholders Meeting
TM ANNUAL SHAREHOLDERS MEETING PRESIDENT & CEO PRESENTATION APRIL 26, 2022
Slide 2: 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 3: 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 4: 2021 Results Review
A\\ 2021 * RESULTS REVIEW
Slide 5: Revenue Comparison
REVENUE COMPARISON 2021 $US Millions 2021 2020 Increase $1,002 $852.5 17.5% 1002 1,002 1000 800 886.8 889.6 873.8 852.5 822.5 600 786.8 797.2 670.1 714.9 400 200 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 6: Geographic Markets
GEOGRAPHIC MARKETS 2021 Winpak markets its products globally, with a prime focus on North America. Revenue United States 80% 13% 7% Canada Other 6
Slide 7: Products & Markets
PRODUCTS & MARKETS 2021 Sales Flexible Packaging 52% 45% 3% Rigid Container & Packaging Flexible Machines Lidding 7
Slide 8: Net Income Comparison
NET INCOME COMPARISON 2021 $US Millions 2021 2020 Decrease $103.8 $106.3 $2.5 2.4% 125 103.8 100 114.8 119.3 108.9 106.3 75 99.2 104.3 50 71.4 78.4 25 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 8
Slide 9: Net Income Comparison
NET INCOME COMPARISON 2021 10-Year Compound Annual Growth Rate (CAGR) of 5.6% $US Millions 140 120 100 80 60 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 All references to net income relate to net income attributable to equity holders. 9
Slide 10: Net Earnings Per Share 2019-20 Comparison
NET EARNINGS PER SHARE 2019-20 COMPARISON 2021 (Cents) 10
Slide 11: EBITDA and EBITDA Margin
EBITDA and EBITDA MARGIN 2021 ($US Millions, %-age) 250 25.0% 200.2 198.5 200 190.2 191.5 20.0% 187.8 18.8% 150 15.0% 100 10.0% 50 5.0% 0 0.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 EBITDA EBITDA Margin 11
Slide 12: 2021 Results Recap
2021 RESULTS RECAP. 2021 US $ Millions (De-)Increase 2021 2020 $ % Revenue $1,002 $852.5 $149.6 17.5% EBITDA $187.8 $191.5 $(3.7) (1.9)% Volumes in 2021 increased by 9.7 percent from growth of 12 percent in our rigid and lidding business and 9 percent in flexibles. Machinery volume receded by 5% as
Slide 13: First Quarter Results
2022 • FIRST QUARTER RESULTS 13
Slide 14: First Quarter Revenue Comparison
FIRST QUARTER REVENUE COMPARISON 2022 vs 2021 ($US Millions) Increase 2022 2021 _$_ _%_ $276.0 $224.8 $51.2 22.8% 14
Slide 15: First Quarter Net Earnings Per Share Comparison
FIRST QUARTER NET EARNINGS PER SHARE COMPARISON Q1 2022 (Cents) 55 52 50 45 38 40 44 44 35 41 36 30 35 25 20 25 25 25 15 23 10 5 0 2012* 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 * Restated for retrospective application of IAS 19-Pensions 15
Slide 16: Earnings Per Share Comparison Q1 2022 vs Q1 2021
EARNINGS PER SHARE COMPARISON Q1 2022 VS Q1 2021 (Cents)
Slide 17: Raw Materials and Foreign Exchange Index
RAW MATERIALS AND FOREIGN EXCHANGE INDEX 2020 - 2021 (Raw Materials Index) (Exchange Rate) 200 0.82 190 0.8 180 0.78 170 160 0.76 150 0.74 140 0.72 130 120 0.7 2016 2017 2018 2019 2020 2021 2022 Winpak's 8 most important Raw Materials CD Dollar Exchange 17
Slide 18: Capital Projects
W | WINPAK IT’S OUR NATURE TO PROTECT™ CAPITAL PROJECTS
Slide 19: CAPEX Investments Review
CAPEX INVESTMENTS REVIEW ($US millions) (%-Revenue) 80 72.2 71.2 12.0% 68.4 10.0% 58.1 60 51.2 53.7 51.1 51.3 48.1 48.3 8.0% 40 6.0% 4.0% 20 2.0% 0 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CAPEX % of Revenue Over the past decade, CAPEX of $574 million has averaged 6.9% of revenue. 19
Slide 20: American Biaxis Winnipeg
AMERICAN BIAXIS WINNIPEG 20
Slide 21: American Biaxis: Examples of Current BOPA Uses
AMERICAN BIAXIS EXAMPLES OF CURRENT BOPA USES 21
Slide 22: American Biaxis: BOPA Start-up
AMERICAN BIAXIS BOPA 3 START-UP 22
Slide 23: Winpak Division Winnipeg, MB
WINPAK DIVISION WINNIPEG, MB 23
Slide 24: WD Multibarrier Line for Recycle-Ready Films
WD MULTIBARRIER LINE FOR RECYCLE-READY FILMS 2021 24
Slide 25: WD New Extrusion Line, Now Commercial
WD NEW EXTRUSION LINE, NOW COMMERCIAL 2021 25
Slide 26: WD: DCR and Pouch-Making
WD: DCR AND POUCH-MAKING 2021 26
Slide 27: Winpak Division Winnipeg: Examples of Current Products
WINPAK DIVISION WINNIPEG, MB EXAMPLES OF CURRENT PRODUCTS 27
Slide 28: Winpak Portion Packaging, Sauk Village, IL
WINPAK PORTION PACKAGING SAUK VILLAGE, IL 28
Slide 29: New In-Mold-Label Injection Molding Center
WINPAK PORTION PACKAGING New In-Mold-Label (IML) Injection Molding Center 29
Slide 30: Winpak Portion Packaging: Examples of Current Products
WINPAK PORTION PACKAGING EXAMPLES OF CURRENT PRODUCTS 30
Slide 31: Winpak Portion Packaging: Examples of Current Products
WINPAK PORTION PACKAGING EXAMPLES OF CURRENT PRODUCTS 31
Slide 32: Winpak Films Senoia GA: Expanded Site
WINPAK FILMS SENOIA GA EXPANDED SITE 32
Slide 33: Winpak Films Senoia GA
WINPAK FILMS SENOIA GA 33
Slide 34: Winpak Films Senoia GA: Examples of Current Products
WINPAK FILMS SENOIA GA EXAMPLES OF CURRENT PRODUCTS 34
Slide 35: New Home for Winpak Lane, Inc.
NEW HOME FOR WINPAK LANE, Inc. RIALTO, CA 35
Slide 36: New Generation Round Cup Machine
Products New Generation Round Cup Machine • High throughput equipment to position Winpak in high performance value proposition and deliver a complete system offer • Cup machines are relatively large pieces of equipment: offer maximum throughput per floor space allotment as industry’s best • Ease of
Slide 37: Winpak Control Group: Healthcare Service Model
WINPAK CONTROL GROUP, Inc. Healthcare Service Model 37
Slide 38: Winpak ControlGroup: Some Product Examples
Winpak ControlGroup Some Product Examples 38
Slide 39: Sustainability Mandate
TM SUSTAINABILITY MANDATE 39
Slide 40: Sustainability Values and Pillars
Company Overview Sustainability values and pillars IT’S OUR NATURE TO PROTECT™ Winpak’s vision is to excel in sustainable business practices to create products, processes and services that deliver net positive economic, social and environmental benefits while growing profitably and responsibly. 40
Slide 41: Sustainability Pillars & KPIs
Sustainability Growing as a “Valued Partner” Pillars & KPIs • Customer Satisfaction • Materials Management • Sustainable Products Keeping our “Extended Family” Safe and Engaged Health & Safety Employee Retention Employee Satisfaction Proud of our “Roots” Code of Conduct Responsible Supply Chain Corp
Slide 42: Sustainable Products - Go Forward Outlook
SUSTAINABLE PRODUCTS - GO FORWARD OUTLOOK Sustainable Product Platforms – Continued Focus in 2022 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 *Ret
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 $377.5 million at end of 2021, despite extension of special dividend of $159.4 million. Shareholders’ equity of $1,080 million Current ratio of 7.8 to 1 Consistent strong gener
Slide 45: Looking Forward: Raw Materials
COMPANY OVERVIEW Looking Forward - 1 Raw Materials • Input costs have stabilized, but threaten to climb again with recent oil price spike and supply uncertainty as well as on-going logistics difficulties. On an annual average, raw materials increased by unprecedented 43.8 percent in 2021, following
Slide 46: Forward Looking: Foreign Exchange Impacts
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: Winpak
IWINPAK IT’S OUR NATURE TO PROTECT