Winpak Ltd. · TSX:WPK
Winpak — Shareholder Meeting (April 2023)
48 slides from Winpak's shareholder meeting presentation, Apr 25, 2023
Slide 1: Annual Meeting of Shareholders
TM Annual Meeting of Shareholders April 25, 2023 Beginning at 11:00 am CDT
Slide 2: Annual Shareholders Meeting – President & CEO Presentation
TM Annual Shareholders Meeting PRESIDENT & CEO PRESENTATION APRIL 25, 2023
Slide 3: Disclaimer
Disclaimer Certain statements made in the following discussion contain forward-looking statements including, but not limited to, statements concerning possible or assumed future results of operations of the Company. Forward-looking statements represent the Company’s intentions, plans, expectations a
Slide 4: To Our Valued Shareholders & Others
To Our Valued Shareholders & Others Winpak has established and published a Disclosure Policy. This Policy actively encourages meetings by investors, potential investors and others with Winpak’s Spokespersons. When conducting such meetings, Spokespersons must not disclose material information that ha
Slide 5: 2022 Results in Review
A\\ 2022 Results in Review ey 5
Slide 6: Revenue Comparison
REVENUE COMPARISON 2022 $US Millions 2022 2021 Increase $1,181 $1,002 17.9% 1181 1002 887 890 874 853 787 797 823 715 670 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Ten-Year Compound Average Growth Rate (CAGR): 5.8% 6
Slide 7: Geographic Markets
GEOGRAPHIC MARKETS 2022 Winpak markets its products globally, with a prime focus on North America. Revenue United States 80% 13% 7% Canada Other 7
Slide 8: Products & Markets
PRODUCTS & MARKETS 2022 Sales Flexible Packaging 54% 43% Rigid Container & 3% Flexible Lidding Packaging Machines 8
Slide 9: Net Income Comparison
NET INCOME COMPARISON 2022 $US Millions 2022 2021 Increase $128.3 $103.8 $24.5 23.6% 128.3 119.3 114.8 111.6 104.3 106.3 103.8 99.2 78.4 71.3 71.4 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Ten-Year Compounded Average Growth Rate (CAGR): 6.1% 9
Slide 10: Net Earnings Per Share 2021-22 Comparison
NET EARNINGS PER SHARE 2021-22 COMPARISON 2022 (Cents) 10
Slide 11: EBITDA and EBITDA Margin
EBITDA and EBITDA MARGIN 2022 ($US Millions, %-age) 250 25.0% 220.0 200.2 198.5 200 190.2 191.5 20.0% 187.8 18.6% 150 15.0% 100 10.0% 50 5.0% 0 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 EBITDA EBITDA Margin 11
Slide 12: 2022 Results Recap
2022 RESULTS RECAP. 2022 US $ Millions Increase 2022 2021 $ % Revenue $1,181 $1,002 $179.1 17.9% EBITDA $220.0 $187.8 $32.2 17.1% Volumes in 2022 increased by 0.6 percent from strong growth in our flexibles business, whereas our rigid and lidding business was negatively impacted by Aluminum foil sup
Slide 13: 2023 – First Quarter Results
2023 – First Quarter Results 1
Slide 14: Quarter Revenue Comparison 2023 vs 2022
Quarter 1 REVENUE COMPARISON 2023 vs 2022 ($US Millions) Increase 2023 2022 _$_ _%_ $304.5 $276.0 $28.5 10.3% 14
Slide 15: First Quarter Net Earnings Per Share Comparison
FIRST QUARTER NET EARNINGS PER SHARE COMPARISON Q1 2023 (Cents) 65 60 55 50 52 45 40 35 44 44 38 41 36 30 35 25 20 25 25 25 15 10 5 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 15
Slide 16: Earnings Per Share Comparison Q1 2023 vs Q1 2022
EARNINGS PER SHARE COMPARISON Q1 2023 VS Q1 2022
Slide 17: Raw Materials and Foreign Exchange Index
RAW MATERIALS AND FOREIGN EXCHANGE INDEX 2022 (Raw Materials Index) (Exchange Rate) 210 0.82 200 0.8 190 180 0.78 170 0.76 160 150 0.74 140 0.72 130 120 0.7 2016 2017 2018 2019 2020 2021 2022 2023 Winpak's 8 most important Raw Materials CD Dollar Exchange 17
Slide 18: Capital Projects
W | WINPAK IT’S OUR NATURE TO PROTECT™ CAPITAL PROJECTS
Slide 19: CAPEX Investments Review
CAPEX INVESTMENTS REVIEW ($US millions) (%-Revenue) 80 10.0% 72.2 71.2 70 9.0% 58.1 8.0% 60 53.7 51.2 51.1 51.3 7.0% 48.1 48.3 49.1 50 6.0% 40 5.0% 30 4.0% 3.0% 20 2.0% 10 1.0% 0 0.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CAPEX % of Revenue Over the past decade, CAPEX of $554 million has
Slide 20: Sustainability Values and Pillars
Company Overview Sustainability values and pillars IT’S OUR NATURE TO PROTECT™ Winpak’s vision is to excel in sustainable business practices to create products, processes and services that deliver net positive economic, social and environmental benefits while growing profitably and responsibly. 20
Slide 21: Mission - Vision
Mission - Vision Lifecycle Analysis of Food Packaging and Food Waste • To provide the best packaging solutions for people and planet • USDA estimates that 30-40% of edible food is wasted in the U.S., an equivalent of 33 million avg. passenger cars driven for a full year • Packaging can help reduce f
Slide 22: Sustainable Products - Go Forward Outlook
SUSTAINABLE PRODUCTS - GO FORWARD OUTLOOK Sustainable Product Platforms – Continued Focus in 2023 PCR Content Recyclable Recycle Ready Renewable Downgauge & PET Semi-rigid PP Trays Repouch™ Content Lightweight PCR BOPET PP Cups Reform™ *EcoWrap VFFS Films Laminates Platform HFFS *RAPS FFS Sheet *Ret
Slide 23: Winpak Division Winnipeg, MB – North Side Expansion
WINPAK DIVISION WINNIPEG, MB North Side Expansion 23
Slide 24: New Fourth Extrusion Coating Line
NEW FOURTH EXTRUSION COATING LINE 2023 24
Slide 25: New Flexo Printing Press
NEW FLEXO PRINTING PRESS 2023 25
Slide 26: New Tandem Laminator
NEW TANDEM LAMINATOR 2023 26
Slide 27: Winpak Division Winnipeg – Examples of Current Products
WINPAK DIVISION WINNIPEG, MB EXAMPLES OF CURRENT PRODUCTS 27
Slide 28: Products: A Fresh Start to Sustainable Packaging
Products A Fresh Start to Sustainable Packaging • ReForm • Flexible thermoformable polyolefin-based film with low haze and high clarity • ReLam • Flexible non-forming polyolefin-based film with low haze and high clarity • ReLid • High speed heat sealable polyolefin-based lidding film with excellent
Slide 29: Products: Eco-Form Renewables
Products Eco-Form™ - Renewables (Thermoplastic Starch, TPS) • EcoForm – TPS based forming and lidding films, pre- dominantly semi-rigid applications but can be leveraged into rigid and flexibles. • Collaboration with National Research Council (NRC) • High Oxygen barrier (long shelf-life) • Low Carbo
Slide 30: Products: Case-ready Retail Flowpak
Products Case-ready Retail Flowpak • Eliminate the need for rigid trays and overwrap: • EPS + Saran-type cling-on overwrap • Provide a new solution for a trend that eliminates lidded trays and uses flexible film as the primary package • 65 – 70% lower carbon footprint • This new product offers excep
Slide 31: American Biaxis Inc. – Winnipeg BOPA Expansion
AMERICAN BIAXIS INC. WINNIPEG: BOPA 3 EXPANSION
Slide 32: American Biaxis – Examples of Current BOPA Uses
AMERICAN BIAXIS EXAMPLES OF CURRENT BOPA USES 32
Slide 33: Winpak Heat Seal Corp., Peoria IL
WINPAK HEAT SEAL CORP., Peoria IL AUTOMATION AND EXPANSION AT N.A. LARGEST DIE-CUT CENTER 33
Slide 34: Winpak Heat Seal Corp. – Robotic Die-Cutters and Expansion
WINPAK HEAT SEAL CORP. ADDITION OF ROBOTIC DIE-CUTTERS AND SITE EXPANSION 34
Slide 35: Winpak Heat Seal Corp. – Examples of Current Products
WINPAK HEAT SEAL CORP. EXAMPLES OF CURRENT PRODUCTS 35
Slide 36: New Home for Winpak Lane, Inc.
NEW HOME FOR WINPAK LANE, Inc. RIALTO, CA 36
Slide 37: Next Generation Round Cup Machine
NEXT Generation Round Cup Machine TITAN Cup Machine NEW GENERATION CUP- AND SACHET MACHONES • High throughput, high performance • Complete system offer • Highest productivity per floor space • Ease of operation and maintenance, • Full CIP capability. • Configured for various round cup sizes • Runnin
Slide 38: Next Generation Sachet Machine
NEXT Generation Sachet Machine PHOENIX SACHET MACHINE PHOENIX HIGH SPEED, HIGH OUTPUT MACHINE • High throughput, high performance • Complete system offer • Highest productivity per floor space • Ease of operation and maintenance • Full CIP capability.
Slide 39: Winpak Portion Packaging, Sauk Village, IL
WINPAK PORTION PACKAGING SAUK VILLAGE, IL 39
Slide 40: Winpak Portion Packaging – Examples of Current Products
WINPAK PORTION PACKAGING EXAMPLES OF CURRENT PRODUCTS 40
Slide 41: New In-Mold-Label Injection Molding Center
WINPAK PORTION PACKAGING New In-Mold-Label (IML) Injection Molding Center 41
Slide 42: FlexPod and SqueezPod Family
FLEXPOD and SQUEEZPOD FAMILY RECYCLABLE, MINIMALIST, HIGH BARRIER AND FUNCTIONALITY
Slide 43: High Barrier Pouch Spouts and Caps
HIGH BARRIER POUCH BARRIER SPPOUT/CAPS A WORLD PREMIERE: HIGH BARRIER SPOUTS AND CAPS When BARRIER means PROTECTION When BARRIER means PROTECTION Winpak’s new barrier spouts and caps are lighter, space saving Winpak’s new and almost barrier oxygen spouts migration and caps free* are lighter, to almo
Slide 44: Overview and Forward-Looking Statements
TM OVERVIEW AND FORWARD-LOOKING STATEMENTS
Slide 45: Company Overview: Strong Financial Position
COMPANY OVERVIEW Strong Financial Position Debt-free • Remaining long-term debt was retired in Q1/09. • Net cash position of $398.7 million at end of December 2022, an increase of $21.2 million, despite net increase in working capital of $116.4 million. Shareholders’ equity of $1,203 million Current
Slide 46: Company Overview: Looking Forward – Raw Materials
COMPANY OVERVIEW Looking Forward - 1 Raw Materials • Input costs have stabilized. On an annual average, raw materials increased by a further 9.4% in 2022 after rising by an unprecedented 43.8 percent in 2021. Thus far in 2023, raw materials declined by 3%. • In any event, 75 percent of Winpak’s reve
Slide 47: Company Overview: Forward Looking – Foreign Exchange
COMPANY OVERVIEW Forward Looking - 2 Foreign exchange impacts • 1 cent increase in CDN $ equates to approx. 0.8 of a cent decrease in EPS. However, the effect is not immediate due to the Company’s hedging policy which covers 50% to 80% of conversion requirements for the ensuing 9 to 15 months. • The
Slide 48: Thank you for your participation
Thank you for your participation.