Ardagh Metal Packaging S.a. · NYSE:AMBP
Ardagh Metal Packaging — Q2 2024 Earnings Presentation
30 slides from Ardagh Metal Packaging's earnings presentation, Jul 25, 2024
Slide 1: Second Quarter 2024 Update
Ardagh Metal Packaging S.A. Second Quarter 2024 Update Oliver Graham CEO David Bourne CFO 25th July 2024 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 nm
Slide 4: Ardagh Metal Packaging at a glance
Ardagh Metal Packaging at a glance Revenue by destination Specialty mix as % of total shipments • Ardagh Metal Packaging (AMP) H1 2024 (NYSE: AMBP) is a leading global 63% metal beverage can manufacturer 42% ~$4.8bn North America Q2-2024 48% Rest of World • Geographically diversified - #2 player LTM
Slide 5: Key messages
Key messages Europe recovery underpins quarterly guidance beat Can Global shipment growth of 3% in Q2 ❑ Europe shipments growth of 5%, demonstrating improved momentum following the rebound in Q1 ❑ Americas shipments growth of 1%: ❑ Above-market growth of 3% in NA shipments, despite strong prior year
Slide 6: Volume snapshot
Volume snapshot Shipment growth of 3% in Q2 Market AMP performance Recent market trends +5% growth in Q2 • Continued recovery into busy summer period Europe with sporting events • Broad-based market recovery, but focus now on consumer sell-through +1% growth in Q2 North America: Americas • Strength
Slide 7: Drivers of secular growth remain strong
Drivers of secular growth remain strong Category Pack Sustainability/ growth advantages regulation Traditional categories Convenience, efficiency Plastics substitution New categories Environmental / Imagery, quality, ‘coolness’ (e.g., health & wellness) ecological benefit Regulatory changes 7
Slide 8: Recent highlights
Recent highlights 8
Slide 9: Sustainability
Sustainability Continued progress Solar power purchase agreement in Germany signed earlier this year with Sunnic Lighthouse GmbH has been extended (and for higher volume) to 2030, which will cover up to 40% of German demand needs Huron achieved ISO 14001 Certification. ISO 14001 sets out the criteri
Slide 10: Strengthening the balance sheet
Strengthening the balance sheet Conservative action on liquidity • New $300 million secured financing commitment with Apollo Capital Management to further strengthen liquidity in H2 and supplement expected seasonal cash inflows • This Term Loan facility is expected to be drawn down in Q3, will have
Slide 11: Europe market
Europe market Strong H1 recovery • European shipments have recovered strongly during H1 supported by sporting events, a change in customers’ pricing strategies and sustainability goals. AMP is closely monitoring the sell- through to consumers over the summer period • Broad-based growth across AMP’s
Slide 12: North America market
North America market Contracted new volume maintains above-market growth • Contracted new volume supports above market growth and greater diversification in customer portfolio mix • Recent uptick in promotional activity across non-alcoholic categories. Softness in energy drinks category • Increased
Slide 13: Brazil market
Brazil market Strong industry growth against supportive macro backdrop • Continued growth in industry beverage can shipments, supported by pack-mix trends. Favorable macro backdrop underpinned by labour market strength and real income growth • AMP volume/mix included a modest decline in can volumes
Slide 14: Q2 Financial review
Q2 Financial review 14
Slide 15: Key financial metrics
Key financial metrics Second quarter 2024 $m except per share data Three months ended Three months ended Change Change June 30, 2024 June 30, 2023 reported constant currency Revenue 1,259 1,255 - - Profit/(loss) for the period 2 (10) Adjusted EBITDA 178 151 18% 18% Loss per share (0.01) (0.03) Adjus
Slide 16: Financial bridge
Financial bridge Three months ended June 30, 2024 Revenue $m Europe Americas Group Revenue 2023 555 700 1,255 ➢ Group revenue was broadly Organic 6 (7) (1) unchanged versus the prior year and Adjusted EBITDA increased by FX translation 5 - 5 18% on both a reported and Revenue 2024 566 693 1,259 cons
Slide 17: Net debt and liquidity
Net debt and liquidity Strong liquidity and maturity profile June 30, 2024 ➢ No bonds maturing before 2027 Drawn amount Available liquidity and a weighted average maturity $m $m of 4.4 years, with all green bond finance on fixed rate terms Senior Secured Green and Senior Green Notes 3,267 Global Ass
Slide 18: Fiscal 2024 guidance
Fiscal 2024 guidance Tightening guidance range after encouraging first half En i ronmental Global shipments growth approaching a mid-single digit % ❑ Increased confidence in Europe’s growth outlook, while closely monitoring the summer consumer sell-through ❑ Brazil market backdrop remains strong but
Slide 19: Investment highlights
Investment highlights 19
Slide 20: Business strengths
Business strengths Leading pure play global beverage can company focused on sustainable products • Scale network player operating in a long-term growth industry with defensive qualities • Geographically diversified - #2 player in Europe and #3 player in North America and Brazil • Experienced managem
Slide 21: Summary historic financials
Summary historic financials Adj. EBITDA less maintenance Revenue ($ billion) Adjusted EBITDA ($ million) capex & cash conversion ratio 5.0 700 662 700 90% 625 631 600 600 545 600 4.5 519 503 86.7% 85% 500 500 84.2% 4.0 400 400 82.6% 81.7% 81.3% 80% 300 300 3.5 200 200 75% 3.0 100 100 2.5 0 0 70% 201
Slide 22: Supplemental information
Supplemental information 22
Slide 23: Reconciliation of profit/(loss) for the period to Adjusted profit
Reconciliation of profit/(loss) for the period to Adjusted profit Three months ended June 30, 2024 2023 $m $m Profit/(loss) for the period as presented in the income statement 2 (10) Less: Dividend on preferred shares (6) (6) Loss for the period used in calculating earnings per share (4) (16) Except
Slide 24: Reconciliation of profit/(loss) for the period to Adjusted EBITDA
Reconciliation of profit/(loss) for the period to Adjusted EBITDA Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 $m $m $m $m Profit/(loss) for the period 2 (10) (10) (11) Income tax charge/(credit) 2 (2) (7) (11) Net finance expense 51 23 86 46 Depreciation and amortizatio
Slide 25: Reconciliation of Adjusted EBITDA to Adjusted operating cash flow and free cash flow
Reconciliation of Adjusted EBITDA to Adjusted operating cash flow and Adjusted free cash flow Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 $m $m $m $m Adjusted EBITDA 178 151 312 281 Movement in working capital 152 171 (271) (175) Maintenance capital expenditure (26) (26
Slide 26: Sustainability strategy
Sustainability strategy Built on three key pillars 26
Slide 27: Sustainability leadership recognition
Sustainability leadership recognition Leadership ratings of A for Supplier Engagement and A- rating for Climate Change from global not-for-profit CDP Awarded the highest platinum rating by and a B rating for Water Management EcoVadis for Sustainability* *Ardagh Group rating 27
Slide 28: Core Values
Valuing contribution Development Empowerment + Mutual respect Integrity Transparency Collaboration Safety and responsibility Communication es t a | Cc Continuous improvement Innovation Sustainability
Slide 29: Purpose
ArdaghMetalPackaging hy) We make packaging for good | We work We are proud of Our sustainable, infinitely We are shaping a sustainable future together as our manufacturing recyclable, quality as part of the circular economy while one team. heritage and packaging protects our actively supporting and
Slide 30: ArdaghMetalPackaging hy
ee ArdaghMetalPackaging hy
Ardagh Metal Packaging — Q2 2024 Earnings Presentation on 6ix