Ranpak Holdings Corp · NYSE:PACK
Ranpak — Baird Industrials Conference (November 2019)
35 slides from Ranpak's conference presentation, Nov 5, 2019
Slide 1: Baird Industrials Conference
0 Baird Industrials Conference Omar Asali, Chairman and Chief Executive Officer Deliver A Better World TM
Slide 2: Caution About Forward-Looking Statements
Deliver A Better World TM CAUTION ABOUT FORWARD - LOOKING STATEMENTS This presentation contains “forward - looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amen ded (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the
Slide 3: Table of contents
Deliver A Better World TM 2 Table of contents Introduction Ranpak Business Overview Industry Overview Financial Overview 5 3 2 1 Appendix Growth Opportunities 4
Slide 4: Ranpak Introduction
Ranpak Introduction
Slide 5: Snapshot of Ranpak
Deliver A Better World TM 4 Snapshot of Ranpak Industry leader offering full suite of environmentally sustainable, systems - based packaging solutions for e - Commerce and industrial supply chains Installed base of over 100,000 machines using Ranpak consumables exclusively Global business with stron
Slide 6: Attractive Business Model with Strong Tailwinds
Deliver A Better World TM 5 Attractive Business Model with Strong Tailwinds $7bn (1) addressable global market with growth driven by e - Commerce Significant growth potential , particularly in wrapping, thermal and APAC Ranpak can serve as a platform for additional industry - leading eco - fri
Slide 7: The new Ranpak team
Deliver A Better World TM The new Ranpak team Board of Directors 6 Ranpak Senior Leadership Team Collective experience Collective experience Omar Asali Chairman & CEO of Ranpak - Former CEO and President, HRG Group - Former Co - Head of Goldman Sachs Hedge Fund Strategies Robert King Director of One
Slide 8: Ranpak Business Overview
Deliver A Better World TM 7 Ranpak Business Overview
Slide 9: Attractive & Diverse Business Fundamentals
Deliver A Better World TM 8 Note: Based on audited 2018 financial statements of Rack Holdings Inc. included in the Registration Statement on Form S - 4, as am ended, filed by One Madison with the SEC on April 23, 2019. (1) North America includes Mexico; Europe includes Western Europe, Central & East
Slide 10: Fast growing, high return and resilient worldwide leader
Deliver A Better World TM 9 Fast growing, high return and resilient worldwide leader in sustainable systems - based packaging solutions Compelling financial attributes – high growth and high margins (1) Adjusted EBITDA is a non - GAAP measure. Refer to the Appendix to this presentation for a reconci
Slide 11: Strong growth driven by machine placement
Deliver A Better World TM 24 24 27 31 36 45 50 52 54 57 60 64 70 76 82 91 97 02A 03A 04A 05A 06A 07A 08A 09A 10A 11A 12A 13A 14A 15A 16A 17A 18A 10 Strong growth driven by machine placement $85 $89 $100 $112 $128 $149 $158 $144 $156 $176 $176 $188 $216 $218 $233 $246 $264 02A 03A 04A 05A 06A 07A 08A
Slide 12: Market leader in sustainable systems with a full suite of solutions
Deliver A Better World TM 11 Market leader in sustainable systems with a full suite of solutions for global commerce Leading Provider of Sustainable Packaging Solutions Wrapping (7% of sales) Cushioning (45% of sales) Automation (4% of sales) Void - Fill (44% of sales) Focused on filling empty spa
Slide 13: Full suite of solutions for global commerce
Deliver A Better World TM Full suite of solutions for global commerce
Slide 14: Diversified and growing end-markets
Deliver A Better World TM % of market ~40% ~5% ~5% ~10% ~2% % of Ranpak sales (1) ~35% ~10% ~8% ~7% ~6% Est. growth rate Low to mid teens GDP plus B2C B2B 13 Diversified and growing end - markets Source: Freedonia and US Census. (1) Based on 2018 financial statements of Rack Holdings Inc. included i
Slide 15: Why customers choose Ranpak
Deliver A Better World TM 14 Why customers choose Ranpak #1 #2 No capital outlay required for end users to improve efficiency of their business High speed and reduced handling results in higher productivity Cost Effective Highly protective Systems placed at no cost to end user #3 Throughput and
Slide 16: Razor / razorblade model supports long-term relationships
Deliver A Better World TM Customers exclusively use Ranpak’s consumables High customer satisfaction due to reliability and high quality Reliable provider of fulfillment service 15 Razor / razorblade model supports long - term relationships and favorable economics Machines provided at low cos
Slide 17: Asset-Light Distribution Model Through Distributors
Deliver A Better World TM Sales breakdown by relationship length (1) Number of distributor - serviced accounts by size (1) 16 Asset - Light Distribution Model Through Distributors Sells value - added consumables to end - users through an established network of more than 240 exclusive distributors
Slide 18: Industry Overview
Deliver A Better World TM 17 Industry Overview
Slide 19: Global protective packaging market
Deliver A Better World TM + Other additional regional players 50% + 18 Market leader in sustainable, system - based solutions for e - Commerce and industrial supply chains Source: Management Estimates, Freedonia . (1) Represents estimates for the North America and Europe systems based segment of pro
Slide 20: Fiber is the preferred solution
Deliver A Better World TM 19 Fiber is the preferred solution … Ranpak’s fiber - based solution is winning in the marketplace Source: Company management, industry research. Fiber Airbags Foam Bubble wrap Loose fill (peanuts) Main application Cushioning Void - fill Wrapping Void - fill Cushi
Slide 21: Paper packaging, the sustainable solution for in-the-box protection
Deliver A Better World TM 20 Paper packaging, the sustainable solution for in - the - box protection Sustainable Sourcing Sustainable Resources x 85% of Ranpak’s paper packaging in the US consists of either entirely or partially recycled content x Significant cost savings via reduced packing time an
Slide 22: Growth Opportunities
Deliver A Better World TM 21 Growth Opportunities
Slide 23: Compelling building blocks for targeted growth
Deliver A Better World TM 22 Compelling building blocks for targeted growth 4.5% - 6.5% e-Commerce Auto aftermarket IT/Electronics Machinery Home goods Other Initiatives Ranpak base growth M&A and global focus on sustainability Wrapping (Geami) Geographic expansion − Asia − E. Europe − C. / S. A
Slide 24: Priority growth opportunities
Deliver A Better World TM Focus on areas with: higher labor costs, internet penetration, IP protection, industrial growth Aggressively pursue growth in China and India, especially related to e - Commerce Leverage relationships with existing multi - national customers Partner with local distributors
Slide 25: Value creation levers and growth opportunities
Deliver A Better World TM 24 Value creation levers and growth opportunities Retail Distribution for Wrapping Enhance Performance through Technology Throughput, machine placement, and servicing Enhanced Branding and Consumer Outreach Cold Chain / Thermal Substantial opportunity in growing grocery, me
Slide 26: Financial Overview
Deliver A Better World TM 25 Financial Overview
Slide 27: Capitalization
Deliver A Better World TM ($ in mm, except per share values) Shares outstanding (mm) (2) 47.0 Share price (3) $5.97 Equity value $281 Net debt (4) 528 Enterprise value $808 EV and leverage multiples EV / '19E Adj. EBITDA ($92.5) 8.7x Net debt ($528) / '19E Adj EBITDA ($92.5) 5.7 26 Capitalization (1
Slide 28: Financial summary
Deliver A Better World TM Capex in constant currency (3) Free cash flow (4) % Growth (constant currency) - 3% 7% (1%) 27 Financial summary Source: Company management. Figures shown for historical periods derived from GAAP financial statements. (1) Adjusted net sales is a non - GAAP measure, consisti
Slide 29: 3Q19 year over year performance update
Deliver A Better World TM 31 32 56 60 9 11 0 20 40 60 80 100 3Q18 3Q19 Cushioning Void-fill Wrapping $65.1 $64.7 $69.1 $70.4 $50 $55 $60 $65 $70 $75 GAAP Net Sales Pro Forma Adj. Net Sales 3Q18 3Q19 28 3Q19 year over year performance update Note: Figures based on Unaudited Preliminary internal compa
Slide 30: 3Q19 year over year performance update
Deliver A Better World TM $20.6 $22.0 31.9% 31.3% 25.0% 27.0% 29.0% 31.0% 33.0% 35.0% $10 $12 $14 $16 $18 $20 $22 3Q18 3Q19 PF Adj EBITDA % Margin $27.4 $27.2 $29.5 $31.1 $20 $25 $30 $35 GAAP Gross Profit Pro Forma Adj. Gross Profit 3Q18 3Q19 29 3Q19 year over year performance update Note: Figures b
Slide 31: Investment highlights
Deliver A Better World TM 30 Investment highlights (1) Adj EBITDA is a non - GAAP metric. FCF Conversion defined as Adj. EBITDA - Maintenance Capex / Adj. EBITDA. Refer to the Appendi x to this presentation for a reconciliation of Adjusted EBITDA to net income, the most directly comparable US GAAP m
Slide 32: Appendix
Deliver A Better World TM 31 Appendix
Slide 33: Board of Directors
Deliver A Better World TM 32 Board of Directors Industry and functional expertise to drive growth at Ranpak Managing Director, Blue Strat Advisors Previous roles − Chief Information Officer for the National Basketball Association (NBA) − Senior Vice President, Application Development for Viacom,
Slide 34: Ranpak's experienced and proven management team
Deliver A Better World TM William Drew Chief of Staff Bharani Bobba Head of Growth Strategies 33 Ranpak’s experienced and proven management team Eric Laurensse Managing Director Europe Momentive General Electric Tetra Pak Alfa Laval Mondi Greatview Antonio Grassotti Managing Director APA
Slide 35: Non GAAP metric reconciliation
Deliver A Better World TM 34 Non GAAP metric reconciliation Note: 2016 – 2018 financials derived from audited financial statements of Rack Holdings Inc. included in the Registration Statem ent on Form S - 4 filed by One Madison with the SEC on March 1, 2019. (1) 2015 financial statement data of Rack
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