Orora Limited · ASX:ORA
Orora — Investor Presentation (February 2025)
36 slides from Orora's investor presentation, Feb 13, 2025
Slide 1: Financial Results
Financial Results Six months ended 31 December 2024 13 February 2025
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: Group Strategy and 1H25 Highlights
Group Strategy and 1H25 Highlights Brian Lowe Managing Director & Chief Executive Officer
Slide 4: Key messages
Key messages 1 2 3 Portfolio Organic growth Strong balance sheet simplified focus enables shareholder distributions 4
Slide 5: Portfolio simplified and balance sheet strengthened
Portfolio simplified and balance sheet strengthened Orora is focused on global beverage packaging New Orora Sale of OPS and Global Glass Australasian Cans Closures completed OPS sold to Veritiv • ~$1.8bn sale price Revenue1 ~$1,350m ~$700m • 9.9x EBITDA • ~$1.7bn net proceeds EBIT1 ~$160m ~$95m Clos
Slide 6: Defensive growth exposure through Glass and Cans
Defensive growth exposure through Glass and Cans Leading market positions in Cans and global premium+ spirits and wine packaging Glass1 Cans1 ANZ beer ANZ alcohol 5% 27% Top 3 global premium+ Segment Wine ANZ non- #1 in Australasia 42% Spirits alcohol #2 Australasia 53% 73% Ongoing premiumisation
Slide 7: Gawler production capacity review
Gawler production capacity review Structural decline in Australian commercial wine market to result in closure of G1 furnace at Gawler Transition to two furnace operation at Gawler in second half of CY25 • Successful completion of G3 rebuild and oxygen plant construction in December which improves e
Slide 8: Saverglass production capacity review
Saverglass production capacity review Rebuild and modernisation of Ghlin plant in Belgium Market softness has resulted in widespread reductions in global industry capacity over last 12 months Orora has reviewed its capacity requirements to determine future needs Belgium UAE • Intention to modernise
Slide 9: Glass production capacity review
Glass production capacity review Global network provides optimal shift of production flows Footprint Europe Acatlan RAK Gawler Global 6 Furnaces / 29 Lines 2 Furnaces / 9 Lines 1 Furnace / 4 Lines 3 Furnaces / 6 Lines 12 Furnaces / 48 Lines Today 546 KT 210 KT 118 KT 360 KT 1,234 KT (1 Furnace / 2 L
Slide 10: Capital allocation strategy
Capital allocation strategy Framework refined following sale of OPS • Objective to maintain balance sheet consistent with investment grade credit rating Investment grade • Capital intensity has increased following disposal of OPS 1 balance sheet • Long-term target leverage range remains 2.0x – 2.5x
Slide 11: 1HFY25 financial highlights
1HFY25 financial highlights Continuing operations only1 Underlying Earnings Before1 Underlying EBIT Underlying Net Profit After Interest and Tax (EBIT) excluding Saverglass Tax (NPAT) $120.8m $58.4m $58.8m +24.6% Down 30.1% +1.2% Underlying Earnings Underlying operating Shareholder distributions Per
Slide 12: 1HFY25 operating highlights
1HFY25 operating highlights Global Glass Saverglass Australasian Cans Revenue EBIT Revenue EBIT Revenue EBIT A$655.5m A$71.4m €306.0m €38.1m A$372.8m A$49.4m up 143.1% up 41.3% down 14.5%1 down 6.4%1 up 5.2% up 6.4% Revenue includes six months of Saverglass compared Revenue reflects 13% volume d
Slide 13: Financial Results
Financial Results Shaun Hughes Chief Financial Officer
Slide 14: 1H25 Group financial performance
1H25 Group financial performance Underlying – continuing ($m) 1H25 1H24 Var$ Var% CC% Underlying results (continuing operations excluding OPS) Revenue 1,028.3 624.2 404.1 64.8% 65.7% • Revenue growth reflects six months of Saverglass contribution EBITDA 190.6 131.8 58.8 44.7% 45.8% compared to one m
Slide 15: 1H25 Global Glass financial highlights
1H25 Global Glass financial highlights Revenue Underlying EBIT Business performance $655.5m $71.4m • Significant growth for Global Glass earnings from acquisition of Saverglass with only one month of earnings in the prior period 143.1% increase 41.3% increase • Excluding Saverglass: 0.1% decrease ex
Slide 16: 1H25 Saverglass financial highlights
1H25 Saverglass financial highlights Revenue EBIT incl. AASB 16 Business performance €306.0m €38.1m • Revenue of €306.0m declined 14.5% from 2H24 with volumes down 13% due to prolonged global de-stocking A$501.2m A$62.4m • EBIT of €38.1m declined 6.4% from 2H24 with revenue decline partly offset by
Slide 17: 1H25 Australasian Cans financial highlights
1H25 Australasian Cans financial highlights Revenue Underlying EBIT Business performance $372.8m $49.4m • Revenue reflects 1.1% volume growth, improved mix and higher aluminium prices • Revenue excluding pass-through aluminium prices increased 1.6% 5.2% increase 6.4% increase • Unit costs held const
Slide 18: Operating cash flow
Operating cash flow $m 1H25 1H241 Var% • Underlying operating cash flow of $125.7m was 14.9% lower than Underlying EBITDA 190.6 131.8 44.7% 1H24 with higher cash EBITDA offset by an increase in base capex Lease payments (13.0) (3.8) reflecting the G3 furnace rebuild and the inclusion of Saverglass N
Slide 19: Group capex spend
Group capex spend Moderate reduction in FY25 capex post OPS disposal. Cans growth capex to accelerate in 2H Capex ($m) Key Projects Project Spend to 2H25 FY26 Total ~340-360 $m date spend spend 58 G3 (rebuild - base) 98 ~14 - ~112 256 G3 (oxy-fuel conversion - growth) 65 ~7 - ~72 194 37 ~180-200 16
Slide 20: Cans capacity expansions
Cans capacity expansions Rocklea expansion brings total capacity increase to more than 30%, driving future EBIT growth. Digital printing solution (Helio) to arrive 2H25 Australasian Cans network Cans capacity expansion capex Capacity FY25 spend Total spend Site Type Capex spend by project Status inc
Slide 21: Balance sheet and net debt
Balance sheet and net debt Balance sheet provides operating and strategic flexibility to support Orora’s growth strategy Balance sheet Net debt and leverage ratio $m Dec-24 Jun-24 2.8x 2,000 3.0x Net debt 155.5 1,753.5 2.5x 1.9x 2.0x 1,500 1.8x Net assets 2,967.7 2,091.7 1.5x 2.0x 1,000 1.5x 890 0.9
Slide 22: Shareholder distributions
Shareholder distributions Balance sheet capacity available for capital management 5.0 cps Interim dividend of 5.0 cents per share (unfranked), represents a Cents per $67.2m gross dividend share 114% payout ratio FY25 interim dividend payout ratio of 114% is above the target payout range of 60 – 80%
Slide 23: Safety and Sustainability Update
Safety and Sustainability Update Brian Lowe Managing Director & Chief Executive Officer
Slide 24: Safety performance
Safety performance Lost time injury frequency rate (LTIFR)* Update on our approach to improving safety • FY24 has been restated to include Saverglass data. • No Serious Injuries or Fatalities (SIF) have occurred. 4.3 • LTIFR and RCFR have significantly decreased since December 3.4 2023, with fewer L
Slide 25: Our progress on sustainability
Our progress on sustainability We are making good progress with our sustainability goals and commitments Circular Economy Climate Change Community • We remain on track to meet our 60% • The newly rebuilt G3 oxy-furnace at Gawler • We have continued improvement of safety recycled content in glass tar
Slide 26: FY25 Perspectives and Outlook
FY25 Perspectives and Outlook Brian Lowe Managing Director & Chief Executive Officer
Slide 27: Perspectives for FY25 and beyond
Perspectives for FY25 and beyond Disciplined execution of our strategy to continue to drive through the cycle sustainable earnings growth Global Glass – Gawler Global Glass – Saverglass Australasian Cans • Increase in wine volumes from Chinese exports but • Strengthening order intake in America and
Slide 28: Saverglass orders and inventory
Saverglass orders and inventory Inventory continues to reduce with recent order intake showing signs of recovery Order intake Inventory Oct-24 Oct-22 Oct-23 Feb-23 Feb-24 Sep-24 Jan-23 Mar-23 Sep-23 Jan-24 Mar-24 Jan-25 Nov-22 Nov-23 Nov-24 May-23 May-24 Jun-23 Jun-24 Apr-23 Apr-24 Jul-23 Jul-24 Aug
Slide 29: FY25 outlook
FY25 outlook Group Second half FY25 EBIT to be broadly in line with 2H24 (continuing operations) EBIT for each business to be higher in 2H compared to 1H Group overhead allocation to reflect disposal of OPS business Global Glass – Gawler Australasian Cans • G3 fully operational – no further impact f
Slide 30: Supporting Information
Supporting Information
Slide 31: Our identity
Our identity Harnessing One Orora to be a leading sustainable packaging solutions provider 31
Slide 32: Historic earnings under new segments
Historic earnings under new segments A$m FY20 FY21 FY22 FY23 1H24 2H24 FY24 1H25 Cans Revenue 435.0 484.2 569.4 697.0 354.5 338.8 693.3 372.8 EBITDA 86.7 94.1 96.6 106.8 55.5 62.8 118.3 56.1 EBIT 71.0 80.3 82.9 91.3 46.4 57.2 103.6 49.4 ROS% 16.3% 16.6% 14.6% 13.1% 13.1% 16.9% 14.9% 13.3% Gawler Rev
Slide 33: 1H25 Gawler Glass financial highlights
1H25 Gawler Glass financial highlights Revenue Underlying EBIT Business performance • Revenue flat with volumes down 1% which was offset by contracted $154.3m $9.0m price increases • Declines in wine and beer volumes were partly offset by increases in 0.1% decrease 75.9% decrease other products such
Slide 34: Statutory to underlying reconciliations
Statutory to underlying reconciliations Statutory to underlying results 1H25 1H24 ($m) EBIT PBT NPAT EBIT PBT NPAT Continuing Operations Statutory result 37.1 (11.8) 0.2 56.5 40.6 17.7 Add significant items: - Gawler production capacity review 83.7 83.7 58.6 - - - - Acquisition transaction costs - -
Slide 35: Liquidity and debt maturity profile
Liquidity and debt maturity profile Debt Maturity and Liquidity Profile ($m) As at 31 December 2024 691 651 435 305 255 45 30 Cash on hand FY25 FY26 FY27 FY28 FY29 FY30 FY31 Drawn amount Committed and available facilities 35
Slide 36: Chris Vagg
Chris Vagg General Manager Investor Relations +61 409 406 128 Chris.vagg@ororagroup.com ASX: ORA