Ardagh Metal Packaging S.a. · NYSE:AMBP
Ardagh Metal Packaging — Q3 2023 Earnings Presentation
26 slides from Ardagh Metal Packaging's earnings presentation, Oct 26, 2023
Slide 1: Third Quarter 2023 Update
Ardagh Metal Packaging S.A. Third Quarter 2023 Update Oliver Graham CEO David Bourne CFO 26th October 2023 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts
Slide 3: Introduction
Introduction nm
Slide 4: Ardagh Metal Packaging at a glance
Ardagh Metal Packaging at a glance Revenue by destination Specialty mix • Ardagh Metal Packaging (AMP) (NYSE: AMBP) is a leading global 63% metal beverage can manufacturer 42% ~$4.8bn North America Q3-2023 47% Rest of World • Geographically diversified - #2 player LTM Europe in Europe and #3 player
Slide 5: Key messages
Key messages NA volume strength & strong cash generation Can Global shipment growth of 8% in Q3 2023 driven by North America ❑ Shipment growth of 20% in North America (NA) - contract gains and portfolio strength underpin continued momentum ❑ Europe shipments below expectations. Brazil shipment growt
Slide 6: Volume snapshot
Volume snapshot Shipment growth of 8% in Q3 Market AMP performance Recent market trends Europe: Europe • Strong start to summer gave way to softness -2% growth in Q3 due to reduced consumer spending, adverse weather and customer destocking • Energy drink segment proving resilient North America: +18%
Slide 7: Drivers of secular growth remain intact
Drivers of secular growth remain intact North America Europe Brazil Traditional categories Category growth New categories (e.g., health & wellness) TCO(a) / convenience Pack advantages Imagery, quality, ‘coolness’ Plastics substitution Sustainability / Environmental / ecological benefit regulation R
Slide 8: Recent highlights
Recent highlights 8
Slide 9: Progressing our sustainability agenda
Progressing our sustainability agenda Momentum and recognition in the quarter ❑ Partnership launched with Brazilian Social Service for Industry (SESI) to deliver STEM programmes in our Brazilian communities, to benefit 200,000+ students ❑ AMP has partnered with Cargo Service Europe (CSE) in the Neth
Slide 10: Pivot to cash generation
Pivot to cash generation Investment program largely complete Significant capex reductions in 2023 and in 2024 ❑ Outstanding investment reflects the completion of Growth investment spend 2021-2024F projects and building in greater network flexibility ❑ Well positioned for strong investment-free growt
Slide 11: Disciplined capacity management
Disciplined capacity management Maintain balance and address fixed cost under-absorption Consultation initiated over the possible closure of Whitehouse, Ohio production facility ❑ Possible closure in Q1 2024 to optimise volume across the overall network, with a decision due before 31st December Inte
Slide 12: Q3 Financial review
Q3 Financial review 12
Slide 13: Key financial metrics
Key financial metrics Third quarter 2023 $m except per share data Three months ended Three months ended Change Change September 30, 2023 September 30, 2022 reported constant currency Revenue 1,294 1,173 10% 7% Profit for the period 17 68 Adjusted EBITDA 171 140 22% 20% Earnings per share 0.02 0.10 A
Slide 14: Financial bridge
Financial bridge Three months ended September 30, 2023 Revenue $m Europe Americas Group Revenue 2022 493 680 1,173 ➢ Group revenue increase of 10% Organic 30 52 82 (7% constant currency [CCY]) and Adjusted EBITDA increase by 22% FX translation 39 - 39 (20% CCY) Revenue 2023 562 732 1,294 ➢ Americas
Slide 15: Net debt and liquidity
Net debt and liquidity Strong liquidity and maturity profile At September 30, 2023 Trailing leverage $m Senior Secured Green and Senior Green Notes 3,257 ➢ No bonds maturing before 2027 Lease obligations/other borrowings/credit lines 429 and a weighted average maturity of 5.2 years, with all green b
Slide 16: Fiscal 2023 guidance
Fiscal 2023 guidance Cash optimisation and footprint actions Envi ronmental Global shipments growth of approximately a mid-single digit % ❑ Strong shipments growth in NA of over 10% driven by contracted capacity and portfolio strength ❑ Positioned to outperform, supported by our diverse customer por
Slide 17: Investment highlights
Investment highlights 17
Slide 18: Business strengths
Business strengths Leading pure play global beverage can company focused on sustainable products • Scale network player operating in a long-term growth industry with defensive qualities • Geographically diversified - #2 player in Europe and #3 player in North America and Brazil • Experienced managem
Slide 19: Summary historic financials
Summary historic financials Adj. EBITDA less maintenance Revenue ($ billion) Adjusted EBITDA ($ million) capex & cash conversion ratio 5.0 700 662 700 90% 625 611 600 545 600 4.5 519 503 85% 500 500 86.7% 4.0 400 400 80% 81.7% 300 300 82.6% 3.5 79.5% 200 200 75% 3.0 100 100 0 0 70% 2.5 2018 2019 202
Slide 20: Supplemental information
Supplemental information 20
Slide 21: Reconciliation of profit to Adjusted profit
Reconciliation of profit to Adjusted profit Three months ended September 30, 2023 2022 $m $m Profit for the period as presented in the income statement 17 68 Less: Dividend on preferred shares (6) (6) Profit for the period used in calculating earnings per share 11 62 Exceptional items, net of tax (4
Slide 22: Reconciliation of profit to Adjusted EBITDA
Reconciliation of profit to Adjusted EBITDA Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 $m $m $m $m Profit for the period 17 68 6 225 Income tax charge/(credit) - 1 (11) 20 Net finance expense/(income) 44 (41) 90 (104) Depreciation and amortization 103 86 301
Slide 23: Reconciliation of Adjusted EBITDA to Adjusted operating cash flow and free cash flow
Reconciliation of Adjusted EBITDA to Adjusted operating cash flow and Adjusted free cash flow Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 $m $m $m $m Adjusted EBITDA 171 140 452 466 Movement in working capital 53 (50) (122) (445) Maintenance capital expenditu
Slide 24: Sustainability strategy
Sustainability strategy Built on three key pillars Emissions & ecology Social Minimize our GHG emissions Minimize our ecological impact Our people & communities • Align with Science-Based Target Initiative • Achieve excellence in water management Our People: • Achieve 100% renewable electricity • Pr
Slide 25: Sustainability leadership recognition
Sustainability leadership recognition Leadership ratings of A for Supplier Engagement and A- rating for Water Management from global not-for-profit Awarded the highest platinum rating(i) by CDP and a B rating for Climate Change EcoVadis for Sustainability (i) Ardagh Group rating 25
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