Orora Limited · ASX:ORA
Orora — Shareholder Meeting (October 2019)
29 slides from Orora's shareholder meeting presentation, Oct 15, 2019
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING 15 October 2019
Slide 2: Chris Roberts, Chairman
Chris Roberts Chairman
Slide 3: 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 4: Leadership transition – Brian Lowe
Leadership transition – Brian Lowe • Brian Lowe commenced as Managing Director and CEO, 1 October 2019 • Brian joined Orora in 2011, brings broad global experience and has successfully led the key Orora Fibre and Beverage business groups Orora Ltd 4
Slide 5: Leadership transition – Nigel Garrard
Leadership transition – Nigel Garrard • Nigel Garrard retired at Managing Director and CEO on 30 September, 2019 • Nigel led the Orora business for more than 10 years, including Orora’s inaugural listing on the ASX and generated substantial value for stakeholders during his tenure Orora Ltd 5
Slide 6: Transaction summary
Transaction summary Orora has announced the sale of its Australasian Fibre business for A$1,720 million to Nippon Paper Industries Co., Limited Gross and net proceeds • Enterprise value - A$1,720 million Net gain on disposal • Net proceeds after tax and costs ~ A$1,550 million • Estimated net gain o
Slide 7: 2019 financial year highlights
2019 financial year highlights UNDERLYING UNDERLYING EARNINGS BEFORE NET PROFIT AFTER TAX (NPAT) INTEREST AND TAX (EBIT) • Earnings growth and $217.0m $335.2m increased dividends • Continuing to invest 4.0% INCREASE 3.7% INCREASE • Strong cash flows and balance sheet to continue to UNDERLYING pursue
Slide 8: Shareholder returns
Shareholder returns Annual 13.0¢ Dividend AUD Per share Payout Ratio ~72% of Net profit after tax Orora Ltd 8
Slide 9: Orora's strategy
Orora’s strategy Committed to being the industry-leading packaging and visual solutions company Orora Ltd 9
Slide 10: Governance
Governance The Orora Board continues to refine and enhance corporate governance practices to ensure they meet the interests of Orora’s stakeholders Orora Ltd 10
Slide 11: Board composition and performance
Board composition and performance • Board continues to regularly monitor and assess Board composition and performance • A number of announcements have been made regarding Board composition Orora Ltd 11
Slide 12: Board composition
Board composition Rob Sindel (BEng, MBA, GAICD, FIEAust, CPEng) Stands for election today as an Independent Non-Executive Director Orora Ltd 12
Slide 13: Board composition
Board composition Tom Gorman (BA, MBA) Stands for election today as an Independent Non-Executive Director Orora Ltd 13
Slide 14: Board composition
Board composition Sam Lewis (BA (Hons), CA, ACA, GAICD) Stands for re-election today as an Independent Non-Executive Director Orora Ltd 14
Slide 15: 15
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Slide 16: Brian Lowe, Managing Director & CEO
Brian Lowe Managing Director & CEO
Slide 17: Orora will continue to provide an extensive range of packaging solutions and displays
Orora will continue to provide an extensive range of packaging solutions and displays Orora Ltd 17
Slide 18: Priorities
Priorities North America Innovation • Implementation of stabilisation and • Bringing new customer-led product optimisation initiatives across the solutions to life North American businesses • Improving plant productivity • Sustainable sales growth to capitalize on future growth opportunities Orora L
Slide 19: Priorities
Priorities Sustainable packaging solutions Glass Cans • Glass bottles manufactured with high levels • Aluminium cans manufactured with high of recycled content levels of recycled content • Orora recycles approx. 80% of all glass • Orora sources coils of aluminium that collected through South Austral
Slide 20: Safety
Safety Lost time injury frequency rate Recordable case frequency rate (LTIFR) (RCFR) 1.8 2.3 6.8 8.1 JUNE 2018 JUNE 2019 JUNE 2018 JUNE 2019 Orora Ltd 20
Slide 21: Business performance
Business performance Orora Australasia Orora North America Fibre Beverage Orora Packaging Solutions Orora Visual Orora Ltd 21
Slide 22: Business performance – Australasia
Business performance – Australasia EARNINGS BEFORE INTEREST AND TAX (EBIT) $246.6m 6.2% INCREASE SALES REVENUE $2,150m 2.3% 2.1% INCREASE Orora Ltd 22
Slide 23: Australasia highlights
Australasia highlights In Fibre Packaging, higher earnings driven by: • Record production volumes at B9 • Sales growth in targeted market segments • Benefits from recent organic and innovation investments In Beverage, higher earnings driven by: • Higher can volumes • Favourable product mix in Cans a
Slide 24: Business performance – North America
Business performance – North America EARNINGS BEFORE INTEREST AND TAX (EBIT) USD83.4m 11.1% Decrease SALES REVENUE USD1,867.8m 12.4% INCREASE Orora Ltd 24
Slide 25: North America highlights
North America highlights • Businesses right-sized for future growth • Orora Packaging Solutions ERP system rollout completed • Acquisitions of Pollock and Bronco completed during the year and integration is delivering to expectation • Orora Visual continues to steadily improve Orora Ltd 25
Slide 26: Sale of Australasian Fibre business to Nippon Paper Group
Sale of Australasian Fibre business to Nippon Paper Group • The offer fully values the Australasian Fibre Business with reference to the outlook for the business • The transaction allows Orora to divest a mature, market leading business operating across multiple end markets • The Australasian Fibre
Slide 27: Orora following the transaction
Orora following the transaction Orora generated sales revenue of ~A$3.4 billion and EBITDA of ~A$350(1) million from the Australasian Beverage and North American Businesses in FY19 Two market leading businesses with attractive growth outlooks and strong financial profiles • Leading supplier of alumi
Slide 28: Trading update
Trading update FY20 Trading update • With the sale of the Australasian Fibre businesses announced last week, this update is limited to the Beverage and North American businesses only. • Subdued trading conditions have continued in both Australasia and North America and Orora has not seen any materia
Slide 29: Thank you
Thank you