Slide 1: Full Year Financial Results
FULL YEAR FINANCIAL RESULTS YEAR ENDING 30 JUNE 2021 Presentation by Brian Lowe — Managing Director and CEO Shaun Hughes — CFO
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: FY21 Highlights & Group Strategy
FY21 Highlights & Group Strategy Brian Lowe – Managing Director and CEO
Slide 4: FY21 financial highlights
FY21 financial highlights EARNINGS BEFORE INTEREST UNDERLYING NET PROFIT SALES REVENUE AND TAX (EBIT) AFTER TAX (NPAT) • Material improvement in $3,538.0M $249.1M $156.7M Group constant currency EBIT and NPAT, up 17.3% 0.8% decrease 11.6% increase 23.7% increase and 34.1% respectively + 7.8% constan
Slide 5: FY21 business & operating highlights
FY21 business & operating highlights • Strong improvement on FY20 results, with Group earnings and NPAT increasing 17.3% and 34.1% respectively on a constant currency basis. • The benefits of a disciplined and continued focus on the execution of strategy is shown in the Group’s FY21 performance, wit
Slide 6: Orora safety performance update
Orora safety performance update • Operating during COVID-19 has added complexity Recordable case Lost time injury and challenge to our operating environment. frequency rate frequency rate • A range of health and safety measures have been (RCFR)^ (LTIFR)* maintained and implemented in response to COV
Slide 7: Orora's strategic pillars and enablers
Orora’s strategic pillars and enablers New strategic pillars were established during FY20 as part of Orora’s refreshed corporate strategy - these have guided our actions and supported the delivery of our achievements in FY21. ENABLERS Safety 1 OPTIMISE AND GROW To be a leading Diverse talent sustain
Slide 8: Returns-focused, risk-weighted approach to investment and capital management
Orora applies a returns-focused, risk-weighted approach to investment and capital management decisions Shareholder value blueprint TSR COMPONENT ORGANIC GROWTH RETURNS-FOCUSED INVESTMENT CAPITAL MANAGEMENT STRATEGIC Enhance & Enter new Balanced & disciplined approach to Optimise & Grow PILLAR Expand
Slide 9: Delivering an attractive growth outlook
Delivering an attractive growth outlook Each business has a clear set of strategic priorities aligned to our strategic pillars. Collectively these position Orora to deliver Shareholders with consistent, above-market, long-term growth Enter new segments – Enhance & Expand – mid‐term targets everyday
Slide 10: Progressing our strategy
Progressing our strategy - We continue to progress our strategy and remain focused on our strategic priorities FY21 PROGRESS FY22+ PRIORITIES Australasia • ~$34.2M capital invested during FY21 • Maintain, renew and win key customer contracts • Slim Can expansion at Revesby completed • Build capacity
Slide 11: Orora Strategic Objectives – Beverage & OPS
Orora Strategic Objectives – Beverage & OPS Brian Lowe – Managing Director and CEO
Slide 12: Beverage Strategic Objectives Roadmap
Beverage Strategic Objectives Roadmap Beverage continues its focus on enhancing capabilities to deliver for customers and expand its market reach Longer-term Near-term Enter new segments Today Enhance & Expand • Consolidate any ANZ Optimise & Grow • Anticipate new capacity online in 2023 to adjacenc
Slide 13: OPS Strategic Objectives Roadmap
OPS Strategic Objectives Roadmap OPS is making excellent progress as we continue to rebuild a stronger platform for future sustainable growth Longer-term Near-term Expand Today Enhance • Continue digital transformation Optimise • Build out operating platform and internal (i.e. omni-channel digital c
Slide 14: Orora – Sustainability a key component to our DNA
Orora– Sustainability a key component to our DNA Brian Lowe – Managing Director and CEO
Slide 15: Sustainability – a key component to Orora's DNA
Sustainability – a key component to Orora’s DNA Driving our ambition to be a leading sustainable packaging solutions company Australasia: Eco Targets - Consistent increases to glass recycled content from CDS and other initiatives - Significant investment in glass beneficiation plant - Continuation o
Slide 16: A new chapter in sustainability
A new chapter in sustainability Orora Ltd 16
Slide 17: Our commitment to addressing climate change
Our commitment to addressing climate change • Orora is committed to achieving net zero greenhouse gas emissions by 2050 for Scope 1 & 2 • Orora is committed to achieving an interim goal of 40% reduction in greenhouse gas emissions by 2035 for Scope 1 & 2 from FY19. Our well defined plan to achieve t
Slide 18: We're a proven leader in the Circular Economy
We’re a proven leader in the Circular Economy Orora is targeting 60% recycled content* for glass beverage containers by 2025 Orora Ltd *pre and post-consumer 18
Slide 19: Our pathway to 60% recycled content in glass
Our pathway to 60% recycled content in glass Building a better future through investment in glass beneficiation plant at Gawler $25 million committed to build a Cullet Beneficiation Plant adjacent to existing production facility at Gawler in South Australia (including $8 million in government fundin
Slide 20: We're working to enrich our communities
We’re working to enrich our communities We’re focused on initiatives that benefit our Modern Slavery Statement teams and our communities through: Supplier Assurance Framework • Protecting safety, health and human DEI Council North America rights Safety Management System • Championing diversity, equi
Slide 21: Financial Results
Financial Results Shaun Hughes – CFO
Slide 22: FY21 Group financial summary – Underlying and Statutory Results
FY21 Group financial summary – Underlying and Statutory Results A$M – Underlying FY21 FY20 Var$ Var% CC% Revenue and EBIT Revenue 3,538.0 3,566.2 (28.2) (0.8%) 7.8% • Reported Group revenue increased 7.8% on a constant currency basis compared to FY20, down 0.8% on a reported basis. EBITDA 369.3 348.
Slide 23: FY21 Australasian financial highlights
FY21 Australasian financial highlights Business Performance SALES REVENUE UNDERLYING EBIT • Sales up 6.1%, reflecting strong demand for Cans and Closures offset by the anticipated revenue impacts in Glass due to Chinese tariffs on Australian $834.1M $150.3M wine exports. • EBIT growth of 2.5% unders
Slide 24: Australasia EBIT FY21 bridge
Australasia EBIT FY21 bridge – continued resilience and diversified strength 2.5% EBIT increase 14.3 10.6 146.6 150.3 FY20 Organic Growth Glass impacts & cost headwinds FY21 (A$’M) “ ” Strong growth in Cans across all formats and categories partially offset by weakness in Glass, driven by a reductio
Slide 25: FY21 North American financial highlights
FY21 North American financial highlights Business Performance USD SALES REVENUE USD EBIT • North America significantly improved operating and financial performance in FY21, with local currency revenue up 8.2% and EBIT up 43.0%. $2,019.8M $73.8M OPS • Continued improvement in performance and margins
Slide 26: North American FY21 EBIT bridge
North American FY21 EBIT bridge – increased operating leverage & margin expansion 28.8% EBIT growth 1.3 43.0% constant currency EBIT growth 12.9 36.3 98.8 76.7 (A$’M) FY20 Organic Growth Cost Headwinds FX FY21 Strong growth in local currency earnings, up ~43%, with revenue growth and continued margi
Slide 27: Operating cash flow
Operating cash flow – continued strength and resilience A$ Million FY21 FY20 Operating cash flow(1) increased by $76.2M or ~45% to $246.0M • Increase in cash EBITDA broadly in line with lease adjusted earnings. EBITDA 369.3 348.6 • Lease repayments and non-cash items broadly in line with FY20. Lease
Slide 28: Group balance sheet and debt
Group balance sheet and debt Strong balance sheet provides operating and strategic flexibility A$ Million June 21 June 20 • Balance sheet remains strong and provides a solid foundation for the next phase of Orora’s enhance, expand and grow strategy. Average Funds Employed 1,252 1,403 • The Board’s p
Slide 29: Final Dividend
Final Dividend • Final dividend of 7.5 cents per share (unfranked). • Brings total FY21 dividend to 14.0 cents per share, a 2.0 cents per Final FY21 share or 16.7% increase on FY20. dividend 7.5cps • Represents a payout ratio of ~80% of NPAT – the upper end of Orora’s 60 – 80% target payout ratio. (
Slide 30: FY22 Perspectives & Outlook
FY22 Perspectives & Outlook Brian Lowe – Managing Director and CEO Orora Limited ABN 55 004 275 165
Slide 31: Perspectives for FY22
Perspectives for FY22 Australasia North America Cashflow & Capex • Continue to implement cost reduction • Build on the demonstrated FY21 • Ongoing investment in existing businesses - initiatives. improvements in performance – driving base and growth capex. further earnings, cost efficiency and margi
Slide 32: FY22 Outlook
FY22 Outlook • In Australasia, we expect FY22 EBIT to be broadly in line with FY21. Continued strength in the Cans business is expected to offset the impact of subdued Glass volumes as the impacts of China wine tariffs are cycled in 1H22. • In North America, significant progress made on the implemen