Ardagh Metal Packaging S.a. · NYSE:AMBP
Ardagh Metal Packaging — Q3 2022 Earnings Presentation
26 slides from Ardagh Metal Packaging's earnings presentation, Oct 27, 2022
Slide 1: Ardagh Metal Packaging S.A. Third Quarter 2022 Update
Ardagh Metal Packaging S.A. Third Quarter 2022 Update Oliver Graham CEO David Bourne CFO 27th October 2022 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 3
Slide 4: Ardagh Metal Packaging at a glance
Ardagh Metal Packaging at a glance • Ardagh Metal Packaging (AMP)(NYSE: AMBP) is a leading global beverage can manufacturer • Geographically diversified - #2 player in Europe and #3 player in North America and Brazil • 24 strategically located production facilities serving a diversified mix of custo
Slide 5: Key messages
Key messages Q3-2022 Challenging Q3 with demand below expectations ❑ Despite shipment growth of 9%, demand below our forecasts ❑ Slower growth due to higher retail prices in core categories and further weakness in Hard Seltzers Secular growth trends remain intact ❑ As reflected in pack-mix shifts aw
Slide 6: Volume snapshot
Volume snapshot Strong shipment growth of 9% Market AMP performance Recent market trends • Resilient non-alcoholic consumption +9% - positive contribution Europe • On-trade re-opening, particularly in the UK from growth investments • Continued weakness in the export market • Signs of consumer inflat
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: SBTi approval
SBTi approval Validating AMP’s sustainability leadership position • SBTi approval of our targets builds on our well-established sustainability commitments and credentials. AMP commits to: – reduce absolute scope 1 and 2 GHG emissions 42% by 2030 from a 2020 base year – reduce absolute scope 3 GHG em
Slide 10: European energy: improved near-term outlook
European energy Improved near-term outlook TTF Gas Monthly Futures €/mwh European gas storage levels running ahead of 250 25 Oct '22 30 Sep '22 expectations 200 • supported by favourable weather, LNG imports and a 150 reduction in gas demand 100 Supportive national measures 50 • German ‘defensive sh
Slide 11: European energy: progress on recovery into 2023
European energy Progress on recovery into 2023 Continued customer engagement over German producer prices yoy % recovery of exceptional 2022 energy charge 50 30%+ 40 inflation Plan to treat energy separately under multi- 30 Mid-single year contracts well progressed digit • for a more timely and effec
Slide 12: Capacity management
Capacity management Growth investment plan now well advanced Continue to adjust capacity to reflect demand conditions • Planned growth investment for 2022 lowered to c. $0.6bn through capacity re-phasing. Cash outflow minimised through leasing activity. • In total 2022 planned growth investment has
Slide 13: Q3 Financial review
Q3 Financial review 13
Slide 14: Key financial metrics
Key financial metrics Third quarter $m except per share data Three months ended Three months ended Change Change September 30, 2022 September 30, 2021 reported constant currency Revenue 1,173 1,038 13% 21% Profit/(loss) for the period 68 (178) Adjusted EBITDA 140 176 (20%) (15%) Earnings/(loss) per
Slide 15: Financial bridge
Financial bridge Three months ended September 30, 2022 Revenue $m Europe Americas Group Revenue 2021 483 555 1,038 At constant currency: Organic 80 125 205 ➢ Group revenue growth of 21% and Adjusted EBITDA decline FX translation (70) — (70) of 15% Revenue 2022 493 680 1,173 ➢ Americas revenue growth
Slide 16: Net debt and liquidity
Net debt and liquidity At September 30, 2022 Trailing leverage ➢ Strong liquidity and maturity $m profile, with no bonds maturing Senior Secured Green and before 2027 & a weighted 3,143 Senior Green Notes (i) average maturity of c. 6.2 years Lease obligations/other (i) 260 Net borrowings 3,403 ➢ All
Slide 17: Fiscal 2022 guidance
Fiscal 2022 guidance Mid-single-digit % global shipments growth o Growth supported by the contribution from the multi-year investment plan Adjusted EBITDA of $640-650 million, assuming $/€ parity for the remainder of 2022(i) o vs. $662 million reported in 2021 ($630 million at constant currency) Bus
Slide 18: Investment highlights
Investment highlights 18
Slide 19: Business strengths
Business strengths Leading pure play global beverage can company focused on sustainable products • Scale network player operating in a long-term growth industry with defensive qualities • Geographically diversified - #2 player in Europe and #3 player in North America and Brazil • Experienced managem
Slide 20: Proven delivery & cash generation
Proven delivery & cash generation Revenue ($ billion) Adjusted EBITDA ($ million) Adj. EBITDA less maintenance capex & cash conversion ratio 5.0 700 700 4.7 662 650 600 574 4.5 531 600 630 500 445 4.1 545 4.0 550 519 503 400 86.7% 84.3% 500 81.7% 3.5 300 3.5 3.3 3.3 450 200 400 3.0 350 100 2.5 300 0
Slide 21: Supplemental information
Supplemental information 21
Slide 22: Reconciliation of profit/(loss) to Adjusted profit
Reconciliation of profit/(loss) to Adjusted profit Three months ended Three months ended September 30, 2022 September 30, 2021 $m $m Profit/(loss) for the period as presented in the income statement 68 (178) Less: Dividend on preferred shares (6) - Profit/(loss) for the period used in calculating ea
Slide 23: Reconciliation of profit/(loss) to Adjusted EBITDA
Reconciliation of profit/(loss) to Adjusted EBITDA Three months ended September 30, 2022 2021 $m $m Profit/(loss)for the period 68 (178) Income tax charge 1 14 Net finance (income)/expense (41) 18 Depreciation and amortization 86 84 Exceptional operating items 26 238 Adjusted EBITDA 140 176 23
Slide 24: Sustainability strategy
Sustainability strategy Built on three key pillars Emissions & ecology Social Minimize our Minimize our Our people & GHG emissions ecological impact communities • Achieve 100% renewable electricity • Reduce water intensity by 20% • Engage proactively with local • Implement energy efficiency projects
Slide 25: Sustainability leadership recognition
Sustainability leadership recognition • Leadership positions from global not-for-profit CDP(i) • Awarded the highest platinum rating(i) • A- rating for Climate Change & Water Management by EcoVadis for Sustainability • A rating for Supplier Engagement (i) Ardagh Group ratings 25
Slide 26: Ardagh Metal Packaging
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