Orora Limited · ASX:ORA
Orora — Investor Presentation (August 2023)
29 slides from Orora's investor presentation, Aug 17, 2023
Slide 1: Financial Results Full Year Ended 30 June 2023
Financial Results Full Year Ended 30 June 2023 17 August 2023
Slide 2: 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 3: FY23 Highlights and Group Strategy
FY23 Highlights and Group Strategy Brian Lowe Managing Director & Chief Executive Officer 3
Slide 4: FY23 financial highlights
• Disciplined execution of strategy delivers FY23 financial highlights 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 5: 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 6: Orora safety performance update
Lost time injury frequency rate (LTIFR)* Recordable case frequency rate (RCFR)^ Orora safety performance 9.5 update 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 7: 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 2,026.8 224.3 Financial 2,102.2 154.7 1,731.0 131.0 1,723.9 109.1 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 8: 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 9: Orora's strategic advantage
Orora’s strategic advantage Orora’s purpose is to be a leading sustainable packaging solutions provider, designing and delivering products and services that enable our customers’ brands to thrive Vertically integrated provider Leading designer and manufacturer of of custom packaging solutions multi-
Slide 10: 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 11: Beverage Cans capacity expansion
Beverage Cans capacity expansion Three stages of Beverage Cans capacity expansion, with Stages 1 and 2 now in place Stage 1 Stage 2 Stage 3 $30m $80m $85m Ballarat (VIC) Line C Dandenong (VIC) Line 2 Revesby (NSW) Line 2 ~40% ends capacity ~10% network capacity ~10% network capacity increase increas
Slide 12: Orora Beverage launches Helio
Orora What is Helio1? • Transformative game-changer for differentiated • ~$14.0m initial capital investment with Beverage • design and decoration Agreement with global provider Velox, to supply • deployment in late 2H24 First state-of-the-art digital printer to be located launches Helio 1 • state-of
Slide 13: Financial Results
Financial Results Shaun Hughes Chief Financial Officer 13
Slide 14: FY23 group financial performance
FY23 group financial performance Underlying ($m) FY23 FY22 Var$ Var% CC% Revenue 4,291.3 4,090.8 200.5 4.9% (0.9%) • Revenue up 4.9%, driven by a 14.1% increase in Australasia and a 2.3% increase in North America EBITDA 443.5 403.4 40.1 9.9% • Underlying EBIT of $320.5m, up 12.3%, or 7.7% on a Depre
Slide 15: FY23 North America financial highlights
FY23 North America OPS business performance financial highlights • Continued strong earnings growth in OPS, with EBIT up 15.0% and further margin improvement • Lower revenue reflects a decline in the broader manufacturing industry, the Revenue (USD) EBIT (USD) flow-through impacts of price (paper) d
Slide 16: FY23 Australasia financial highlights
Beverage business performance FY23 Australasia • Revenue growth of 14.1%, driven by 2.7% net volume growth, 3.5% higher aluminium cost passthrough and 7.9% through price increases and product mix financial highlights • Continued strong Cans volume demand, with revenue benefiting from both a growth i
Slide 17: Operating cash flow
Operating cash flow $m FY23 FY22 Var$ Var% • Cash EBITDA increased $31.8m, or 8.6%, to $402.9m Underlying EBITDA 443.5 403.4 40.1 9.9% • Underlying operating cash flow of $269.9m was $2.7m lower than FY22, with the increase in Cash EBITDA offset by an Lease payments (65.6) (59.1) (6.5) increase in w
Slide 18: Group capex profile
Group capex profile Growth capex underpins incremental future earnings growth in Australasia Base and Growth capex ($m) Significant ongoing capex projects Continuing operations 193.8 Spend Capital 13.0 Initiative Type Purpose Period Spend Cans – Revesby second canning line Growth +10% capacity FY23
Slide 19: Balance sheet and net debt
Balance sheet and net debt Strong balance sheet providing operating and strategic flexibility to support Orora’s growth strategy Balance sheet Net debt and leverage ratio 2.0x $m FY23 FY22 1.8x 774 1.5x Average funds employed 1,471.9 1,275.6 629 Net debt 774.0 629.0 453 365 0.9x 365 Net assets 800.2
Slide 20: FY23 dividend
FY23 dividend 6.1% dividend growth reflects underlying earnings performance FY23 final dividend Total FY23 dividends Ordinary dividends per share (cps) 9.0 cps 17.5 cps 13.4% CAGR 17.5 +0.5 cps +1.0 cps 16.5 5.9% increase 6.1% increase 14.0 12.0 8.5 9.0 Payout ratio 5.5 7.5 72.6% 6.5 6.5 8.0 8.5 60-
Slide 21: Sustainability Update
Sustainability Update Brian Lowe Managing Director & Chief Executive Officer 21
Slide 22: 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 23: FY24 Perspectives and Outlook
FY24 Perspectives and Outlook Brian Lowe Managing Director & Chief Executive Officer 23
Slide 24: Perspectives for FY24
Perspectives for FY24 Disciplined execution of our strategy to continue to drive through the cycle sustainable earnings growth Orora Packaging Solutions in North America Orora Beverage in Australasia • Inflationary pressures stabilising, and for some commodities prices have decreased; • Expected con
Slide 25: FY24 outlook
FY24 outlook • Whilst global economic conditions remain uncertain, Orora Group earnings are expected to be higher in FY24 • 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 s
Slide 26: Supporting Information
o* ele ae Supporting Information
Slide 27: Shareholder value blueprint
Shareholder value blueprint Orora applies a returns-focussed, risk-weighted approach to investment and capital management decisions TSR COMPONENT ORGANIC GROWTH RETURNS-FOCUSED INVESTMENT CAPITAL MANAGEMENT STRATEGIC Enhance and Enter new PILLAR Optimise to Grow Disciplined approach to capital alloc
Slide 28: Statutory to underlying reconciliations
Statutory to underlying reconciliations Statutory to underlying results FY23 FY22 ($m) EBIT PBT NPAT EBIT PBT NPAT Statutory result 294.5 247.0 184.8 285.5 258.8 184.7 Add significant items: - Continuing operations – Petrie decommissioning 26.0 26.0 18.2 - - - - Discontinued operations – net (profit
Slide 29: Liquidity and debt maturity profile
Liquidity and debt maturity profile Strong liquidity and debt facilities to support growth investments and repayment of maturing debt facilities Liquidity Profile ($m) Debt Maturity Profile ($m) As at 30 June 2023 As at 30 June 2023 495 495 75 290 290 250 250 35 495 215 150 420 150 150 150 58 255 24