Smurfit Westrock Plc · NYSE:SW

Smurfit Westrock — Q3 2024 Earnings Presentation

24 slides from Smurfit Westrock's earnings presentation, Oct 30, 2024

  1. Slide 1: Third Quarter Results

    2024 Third Quarter Results Paper | Packaging | Solutions

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements The presentation includes certain “forward-looking statements” (including within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding, among other things, the plans, strategies,

  3. Slide 3: Non-GAAP Financial Measures and Reconciliations

    Non-GAAP Financial Measures and Reconciliations Smurfit Westrock plc (“Smurfit Westrock”) reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, management believes certain non-GAAP financial measures provide Smurfit Westrock

  4. Slide 4: Introduction

    Introduction 4 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.

  5. Slide 5: What we've said

    What we’ve said Creating the global leader in sustainable packaging • Delivering problem solving, value adding packaging through the most innovative approach in the industry • Leveraging the deepest data sets, across an unrivalled geographic footprint, to further develop our unparalleled product div

  6. Slide 6: Opportunities we've identified

    Opportunities we’ve identified • Already excellent market positions • Experienced and motivated people at operational level • Opportunity for growth and cost-reducing capital allocation is significant • Opportunity to develop sharper commercial focus across the organization • Opportunity to promote

  7. Slide 7: What we've done so far

    What we’ve done so far First 100 days • Aligned leadership teams around culture and operating model • Senior management have visited 85% of the SWNA paper capacity • Fostering a sharper commercial focus – prioritizing value over volume • Identified opportunities to drive greater operational efficien

  8. Slide 8: Strategic asset optimization

    Strategic asset optimization Ongoing business improvement Over the last 22 months we have: North America Europe, MEA & APAC • Closed 10 corrugated • Closed one mill packaging facilities • Closed six • Closed 13 consumer packaging facilities packaging facilities • Closed two mills • Divested four mil

  9. Slide 9: Financials

    Financials 9 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.

  10. Slide 10: Q3 2024 Smurfit Westrock results

    Q3 2024 Smurfit Westrock results $7.671bn $1.265bn 16.5% $118m Net Sales Adj. EBITDA* Adj. EBITDA Margin* Adjusted Free Cash Flow* *Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Free Cash Flow are non-GAAP financial measures. See the Appendix for the discussion and reconciliation of these me

  11. Slide 11: Q3 2024 Operating segments

    Q3 2024 Operating segments North America Europe, MEA & APAC LATAM Net sales (aggregate) $4.6 billion $2.7 billion $0.5 billion Adjusted EBITDA* $780 million $411 million $116 million Adjusted EBITDA margin* 16.8% 15.5% 23.1% *Adjusted EBITDA and Adjusted EBITDA margin are our GAAP measures of segmen

  12. Slide 12: Q3 2024 Smurfit Westrock combined

    Option A Q3 2024 Smurfit Westrock NEED TO ADJUST FOR THE combined FIRST TRADING WEEK Q3*** YTD* Net Sales Net Sales $7,931m $23,365m Adjusted EBITDA** Adjusted EBITDA** $1,298m $3,540m Adjusted EBITDA Margin** Adjusted EBITDA Margin** 16.4% 15.2% Net Leverage Ratio** 2.8x *For the six months ended J

  13. Slide 13: Capital allocation

    Capital Capital expenditure Growth, integration and Balance sheet Strong investment allocation sustainability focused 2025 – $2.2 bn - $2.4bn grade credit rating with a long-term target of <2x net leverage ratio Capital allocation Disciplined approach – returns based Dividend Other shareholder Progr

  14. Slide 14: Conclusion

    Conclusion 14 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.

  15. Slide 15: Proven track record of delivery

    Proven track EBITDA margin** Dividend % € cent 20 160 record of 19 140 18 120 17 delivery 16 100 15 80 14 60 13 40 12 11 20 10 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net leverage ratio** Return on capital employe

  16. Slide 16: Continuing the journey

    Continuing the journey Optimizing the Customer- Performance Disciplined Sustainability operating focused culture capital leadership model innovation allocation Cost Centralized Increased Sharper Ongoing business to profit to decentralized operating efficiency commercial focus improvement 16 Paper |

  17. Slide 17: Delivering to combined potential

    Delivering to combined potential The opportunity is bigger and better than what we initially anticipated “ • Affirming stated $400 million synergy target Our third quarter • Significantly more value to be created through operational and commercial performance, combined improvement (at least equal to

  18. Slide 18: Appendices

    Appendices 18 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.

  19. Slide 19: 2024 Full Year Guidance (combined)

    2024 Full Year Guidance (combined) Cash interest ~$0.7 billion Cash tax ~$0.7 billion Effective tax rate ~26% Capital expenditure ~$2.1 – $2.3 billion 2024 Full Year Combined Adjusted EBITDA* ~ $4.7 billion *2024 Full Year Combined Adjusted EBITDA is a non-GAAP financial measure. We have not reconci

  20. Slide 20: Reconciliations to most comparable GAAP measure

    Reconciliations Set forth below is a reconciliation of the non-GAAP financial measures Adjusted EBITDA and Adjusted EBITDA Margin to Net income and Net Income Margin, the most directly comparable GAAP measures, for the periods indicated. to most in $ millions, except margin percentages Three months

  21. Slide 21: Reconciliations to most comparable GAAP measure

    Reconciliations Set forth below is a reconciliation of the non-GAAP financial measure Adjusted Free Cash Flow to Net cash provided by operating activities, the most directly comparable GAAP measure, for the periods indicated. to most Three months ended in $ millions Nine months ended comparable Sept

  22. Slide 22: Reconciliations to most comparable GAAP measure for combined Adjusted EBITDA

    Reconciliations Set forth below is a reconciliation of the non-GAAP financial measures Adjusted EBITDA and Adjusted EBITDA Margin to Net income and Net Income Margin, the most directly comparable GAAP measures, for the periods indicated. to most Three Months Ended in $ millions September 30, 2024 Ni

  23. Slide 23: Our purpose

    Our purpose Create Protect Care 23 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.

  24. Slide 24: Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.

    24 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.

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