Slide 1: Orora Full Year Results
Orora Full Year Results Year Ended 30 June 2015 Nigel Garrard – Managing Director and CEO Stuart Hutton – Chief Financial Officer 26 August 2015
Slide 2: Disclaimer
Disclaimer 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-looking stateme
Slide 3: Orora Business Highlights
Orora Business Highlights Earnings Summary Strong 25.9% EPS earnings growth • B9 production ramp up on track and translating into earnings benefits Pro Forma • On target delivery of remaining “self help” cost reduction programs A$ Million FY14 FY15 ∆% • Double digit EBIT growth in Australasia and No
Slide 4: Safety performance
Orora safety performance Safety improvement remains a priority – an ongoing journey June 2013 June 2014 June 2015 • Steady reduction in RCFR over past few years RCFR 8.5 6.6 5.9 • LTIFR remains stable – an area of ongoing focus LTIFR 1.9 1.8 1.9 Continued emphasis on implementing best practice & pro
Slide 5: Full Year results
Full Year results Full Year Financial Highlights Increased sales and earnings growth • Underlying sales growth in Australia was 2.5% Pro Forma • Increased Beverage volumes aided by Glass market share gains. A$ million FY14 FY15 ∆% Higher NZ Corrugated volumes. Volumes generally stable in remaining d
Slide 6: Orora Australasia
Orora Australasia Earnings Summary (EBIT) Operating results in line with expectations despite flat market conditions • Underlying sales growth(1) of 2.5%, in line with GDP Pro Forma o Higher Beverage volume – Glass market share gains offsetting slight A$ Million FY14 FY15 ∆. underlying volume declin
Slide 7: Realisation of targeted B9 'self help' benefits remain a focus
Realisation of targeted B9 ‘self help’ benefits remain a focus A$ Million B9 production ramp on track • Continued manufacturing stability enabled greater focus on lowering cost of production Net B9 ‘self help’ target1 42.5 • Produced 367,000 tonnes during the year (vs. 335,000 tonnes in pcp) • Expor
Slide 8: Australasia EBIT growth
Australasia EBIT growth 11.8% Earnings Growth 7.3 (4.6) 25.3 (7.4) (1.5) 181.6 162.5 (A$’M) Pro Forma Self Help Vol/Mix/ Gas Glass Furnace Other FY15 EBIT FY14 EBIT Efficiency (Glass Division) (G1) Rebuild On target delivery of cost reduction & B9 benefits and positive vol/mix/efficiency driving ear
Slide 9: Orora North America
Orora North America Earnings Summary (EBIT) Top line driven by Landsberg Packaging Solutions sales growth of 8.7% • Increased organic sales, market share gains and benefits from the World Wide Pro Forma Plastics acquisition A$ Million FY14 FY15 ∆. • Continued success in winning large corporate accou
Slide 10: North America EBIT growth
North America EBIT growth 25.4% Earnings Growth (14.1% excluding FX impact) 5.7 71.6 8.8 57.1 (A$’M) FY14 EBIT Vol/Mix/Efficiency FX FY15 EBIT Increased organic sales, winning market share & margin improvement initiatives driving higher earnings Favourable FX benefit Orora Ltd 2014 10
Slide 11: Orora Corporate
Orora Corporate Earnings Summary (EBIT) Corporate costs remain stable • Corporate costs of $28.1M, in line with pcp • Included in Corporate are costs associated with the New Zealand Pro Forma Cartons reorganisation partially offset by the net profit result A$ Million FY14 FY15 ∆% related to sale of
Slide 12: Strong underlying operating cash flow
Strong underlying operating cash flow Pro Forma... Continued conversion of increased earnings into cash • Underlying operating cash flow up $41.9M (19.1%) despite capex on A$ Million FY14... FY15. key business projects EBITDA 290.8.... 323.2. • Above target cash conversion(2) of 76% (target is appro
Slide 13: Balance Sheet and Debt
Balance Sheet and Debt Balance Sheet A$ Million Healthy balance sheet enabling investment for growth June 14 June 15 • Reduced leverage through conversion of earnings into cash Funds Employed (period end) 2,018(2) 2,049 o Leverage of 1.9x - down from 2.2x at June 2014 (2.1x at December 2014) Net Deb
Slide 14: Returns focused capital allocation
Returns focused capital allocation Committed to maintaining sensible debt levels Total Debt Facility – June 2015 $1,000 million • Targeting investment grade credit metrics • Given deleveraging, available headroom and management of undrawn line fees, the Net debt $607 million bank debt facility was r
Slide 15: Our Orora – culture of driving outperformance
Our Orora – culture of driving outperformance Customer led culture to drive sustainable outperformance Orora Ltd 2014 15
Slide 16: Shareholder value creation blue print
Shareholder value creation blue print Sustainable Organic Growth Returns Focused Growth Capital Allocation Dividend Orora Orora 60-70% North Australasia Bolt-on M&A Pay Out America Organic Growth Capital Adjacent M&A GDP Sales (North America Focused) Ratio GDP+ Sales Growth Growth GDP based growth O
Slide 17: Orora acquires Jakait – in line with growth strategy
Orora acquires Jakait – in line with growth strategy North America Orora North America has signed an agreement to acquire the assets and business of Jakait Strategy • Supplier of packaging, logistics services and label Targeted synergies expected to products to the greenhouse produce sector Bolt on
Slide 18: Committed to creating shareholder value
Committed to creating shareholder value What we said we would do What we have done in FY15 Shareholder value creation • Ongoing delivery of cost reduction programs • Delivered $25.3M of incremental cost reduction • Total shareholder return in excess of 15% benefits in FY15 over pcp in the 12 months
Slide 19: Perspectives for 2016
Perspectives for 2016 Orora Australasia • Anticipated B9 will exit FY16 on a monthly production run rate approaching name plate capacity of 400,000 tonnes • Expect to deliver approximately $15.0M of incremental B9 ‘self help’ benefits – will take cumulative benefits to approx $37M • Export of B9 pap
Slide 20: Outlook
Outlook • Orora expects to continue to drive organic growth, deliver on the B9 ‘self help’ initiatives and invest in innovation and growth during 2016, with earnings expected to be higher than reported in 2015, subject to global economic conditions Orora Ltd 2014 20