Orora Limited · ASX:ORA
Orora — Shareholder Meeting (October 2021)
34 slides from Orora's shareholder meeting presentation, Oct 21, 2021
Slide 1: Orora Limited – Annual General Meeting: Chair's Address
21 October 2021 Orora Limited – Annual General Meeting 10.30AM THURSDAY 21 OCTOBER 2021 Chair’s Address Introduction Good morning ladies and gentlemen. I'm Rob Sindel, Chair of Orora Limited, and will Chair the meeting today. On behalf of the Board of Directors, I'm pleased to welcome you to the eig
Slide 2: Capital management, strategic pillars and sustainability
ASX ANNOUNCEMENT Capital management Today we are also announcing a new capital management initiative – a $150 million on-market buyback. This follows on from the successful capital management activities undertaken in the last two years, namely: • In FY20, Orora returned $600 million via a $450 milli
Slide 3: Conclusion and Managing Director and CEO's Address
ASX ANNOUNCEMENT Conclusion As we build on our strong foundations, Orora will continue to protect and empower our people, be partners to our customers, and drive innovation and our new sustainability goals to differentiate us from our competitors. Orora is in a strong financial position and the posi
Slide 4: Shareholder Value Blueprint
ASX ANNOUNCEMENT Shareholder Value Blueprint As the Chair noted earlier, our strategic pillars have guided our actions and the delivery of our achievements in FY21. I would like to draw your attention to some important changes. • Firstly, in relation to capital investments, in addition to investing
Slide 5: Beverage and OPS Strategic Objectives Roadmaps
ASX ANNOUNCEMENT For OV: • We are capitalising on the solid foundations established in FY21 and are on track to complete the end-to-end review of the strategic direction by the end of 2021. I will now set out our Beverage and OPS Strategic Objectives Roadmaps. Beverage Strategic Objectives Roadmap T
Slide 6: Our new chapter in sustainability
ASX ANNOUNCEMENT Our new chapter in sustainability As the Chair discussed earlier, in August we announced a new Chapter in Orora’s sustainability journey, building on the great foundations we already have in place. Climate change We will address the issue of climate change by our commitment to achie
Slide 7: Orora Annual General Meeting October 2021
Orora Annual General Meeting 21 October 2021
Slide 8: Rob Sindel, Chair
Rob Sindel Chair
Slide 9: 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 10: Orora's Board of Directors
Orora’s Board of Directors Rob Sindel Brian Lowe Abi Cleland Chair Managing Director & CEO Independent Non-Executive Director Tom Gorman Sam Lewis Jeremy Sutcliffe Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director 4
Slide 11: Rob Sindel, Chair
Rob Sindel Chair
Slide 12: FY21 financial highlights
FY21 financial highlights SALES REVENUE EARNINGS BEFORE INTEREST UNDERLYING NET PROFIT 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 13: 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 14: 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 - Substantial ongoing increased use of glass recycled content from CDS and other initiatives - Significant investment of $25M in glass beneficiation p
Slide 15: A new chapter in sustainability
A new chapter in sustainability 9
Slide 16: Governance
Governance • Good corporate governance is integral to culture and business practices at Orora • Orora’s corporate governance practices for FY21 comply with the ASX Principles and Recommendations 4th edition and are summarised in our Corporate Governance Statement, which this year was incorporated in
Slide 17: Rob Sindel, Chair
Rob Sindel Chair
Slide 18: Brian Lowe, Managing Director and CEO
Brian Lowe Managing Director and CEO
Slide 19: Continued focus on safety
Continued focus on safety • Operating during COVID-19 has added complexity and challenge to our operating environment. Recordable case Lost time injury frequency rate frequency rate • Health and safety measures maintained and implemented in response to COVID-19, mitigating (RCFR)^ (LTIFR)* the risk
Slide 20: 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 21: 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 22: Capital Management – FY22 $150 million on-market buyback
Capital Management – FY22 $150 million on-market buyback Shareholder • Strong balance sheet provides value creation optionality Value • Leverage at 1.5x at June 2021 Blueprint • Continued reliable Cashflow generation - In FY21: RoAFE 19.9% & cashflow conversion 72.9% • Balanced and disciplined appro
Slide 23: Progressing our strategy
Progressing our strategy 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 to meet increased customer demand in Cans – new $110M can line and increased ends cap
Slide 24: 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 • New Eastern seaboard can line and adjacencies in
Slide 25: 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 (i.e. omni-channel digital • Build out operating platform and internal
Slide 26: A new chapter in sustainability
A new chapter in sustainability 20
Slide 27: 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 28: 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 *pre and post-consumer 22
Slide 29: 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 30: We're working to enrich our communities
We’re working to enrich our communities Modern Slavery Statement We’re focused on initiatives that benefit our teams and Supplier Assurance Framework our communities through: DEI Council North America • Protecting safety, health and human rights Safety Management System • Championing diversity, equi
Slide 31: Diversity, Equity & Inclusion Goals
Diversity, Equity & Inclusion Goals Building on our achievements to date including: New goals: • Gender diversity - FY21 achieved 32% female new team member • Focus on initiatives to develop diversity, equity and hires inclusion across Orora • Women in Leadership at Orora (WILO) fifth annual program
Slide 32: FY22 Outlook
FY22 Outlook • In Australasia, whilst 1H22 EBIT is expected to decline as the impacts of China wine tariffs are cycled, the Beverage business will return to EBIT growth from 2H22 and is expected to be broadly in line with FY21 for the full year. • In North America, significant progress made on the i
Slide 33: Further Questions
Further Questions
Slide 34: Thank you
Thank you OR;,, MZ =a sRA