Sig Group Ag · SIX:SIGN
Sig — BNP Future of Packaging Conference 2024
24 slides from Sig's conference presentation, May 2024
Slide 1: BNP Future of Packaging Conference
BNP Future of Packaging Conference SIG Group AG Anne Erkens, CFO Gavin Steiner, CTO May, 2024
Slide 2: Disclaimer and cautionary statement
Disclaimer and cautionary statement The information contained in this presentation is not for use within any Neither SIG nor any of its directors, officers, employees, agents, affiliates or These alternative non-IFRS measures are presented as we believe that they country or jurisdiction or by any pe
Slide 3: Industry-leading innovation
Industry-leading innovation Striving Gavin Steiner, Chief Technology Officer for better. May, 2024 | BNP Packaging Conference 3
Slide 4: R&D ensures attractiveness of SIG's core and creates breakthrough innovations across substrates
R&D ensures attractiveness of SIG’s core and creates breakthrough innovations across substrates Continuous Step-change Value improvement development creation Aseptic technology/ microbiology expertise Engineering Continuously Customers know-how Growing our strengthening business through SIG’s platfo
Slide 5: Structured and integrated R&D approach delivers superior value creation
Structured and integrated R&D approach delivers superior value creation Discovery Develop Deploy Pre- Continuous Step change Value development improvement development creation Customers Ongoing Laying the Growing our strengthening foundation for business through Consumers SIG’s platform development
Slide 6: Our global R&D network spans across three continents
Our global R&D network spans across three continents SIG R&D Center Neuhausen, Switzerland SIG R&D Center Linnich, Germany SIG R&D Center Northlake, USA SIG R&D Center Barcelona, Spain SIG R&D Center Suzhou, China India Future Opportunity 5 SIG Packaging and Technology R&D Centers May, 2024 | BNP Pa
Slide 7: Key areas of R&D: Aseptic Filling and Packaging
Key areas of R&D Aseptic Filling Industry-leading innovations Aseptic technology new levels of aseptic performance Leverage our differentiating Packaging Filling capabilities R&D capabilities TCO advancements and product versatility Packaging differentiation consumer centricity Material science & su
Slide 8: Aseptic filling expertise shared across all SIG packaging platforms, improving TCO
Aseptic filling expertise shared across all SIG packaging platforms, improving TCO Spouted pouch Aseptic carton Cross-substrate Bag-in-box technology expertise May, 2024 | BNP Packaging Conference 8
Slide 9: Consumer-centric development approach is a key lever for packaging differentiation
SIG’s consumer-centric development approach is a key lever for packaging differentiation SIG LinkCap SIG Vita Consumer centricity Differentiation Ethnographic Functional Consumer Research Consumer Testing SIG Smile SIG DomeMini May, 2024 | BNP Packaging Conference 9
Slide 10: Deep knowledge of material science pushing boundaries for new packaging development
SIG’s deep knowledge of material science is pushing the boundaries for new packaging development Structure composition Material selection Sustainability & Barrier functions Package stability Shelf-life performance Performance Machine applicability Category fit May, 2024 | BNP Packaging Conference 10
Slide 11: Forward. Sustainability.
Forward. Sustainability. We’re on a journey to create packaging for better! Packaging that gives more to the people and the planet than it takes out. May, 2024 | BNP Packaging Conference 11
Slide 12: SIG is working closely with customers to meet tomorrow's needs
When it comes to meeting tomorrow’s needs, SIG is working closely with customers Keeping our materials in circulation Achieving Making packaging climate targets recyclable anywhere Using less virgin fossil- based polymers Using more renewable Eliminating unnecessary materials packaging May, 2024 | B
Slide 13: SIG Terra, moving towards a more sustainable future together
SIG Terra, moving towards a more sustainable future together Simplified Renewed Circular Simplified packaging materials Packaging materials linked to Packaging materials linked to that are even easier to recycle. forest-based polymers and other recycled materials. renewable materials. May, 2024 | BN
Slide 14: Removing aluminum
Rethink what you know about real impact in aseptic carton 90% We believe in: We believe in: Only We believe in: We believe in: 2 Replacing fossil- Removing based polymers Increasing the Taking up to 25% Simplifying our Replacing virgin aluminum paper share of paper in CO2* out of the packaging desig
Slide 15: Rethink what you know about real impact in bag-in-box
Rethink what you know about real impact in bag-in-box We believe in: Optimizing the polymer usage in our packaging as much as possible without losing functional properties, We believe in: offering lightest alternatives vs. We believe in: Our 100% recycle-ready competing substrates. Simplifying the c
Slide 16: Rethink what you know about real impact in spouted pouches
Rethink what you know about real impact in spouted pouches We believe in: We believe in: We believe in: Striving for simple material Our 100% recycle-ready Further optimizing compositions by applying commitment. By 2025, we the product weight of our cutting-edge material aim to offer 100% recycle- f
Slide 17: Q1 2024 financials
Q1 2024 financials Anne Erkens, Chief Financial Officer May, 2024 | BNP Packaging Conference 17
Slide 18: Q1 2024 business summary
Q1 2024 business summary Stable volume, initial signs of recovery, progress on future production footprint and continued innovation Revenue Strategic Aseptic filling Financing performance investments to technology support future innovation growth Volume growth in Transfer of Shanghai Speed up kits l
Slide 19: Q1 2024 financial summary
Q1 2024 financial summary Performance reflects expected phasing throughout the year Revenue Adjusted EBITDA Adjusted net Free cashflow €722 million income (1.0)% €155 €40 €(101) reported million million million (Q1 2023: €175 m) (Q1 2023: €65 m) (Q1 2023: €(95) m) 0.0% Adjusted EBITDA margin Net cap
Slide 20: Q1 2024 adjusted EBITDA bridge
Q1 2024 adjusted EBITDA bridge Margin recovery expected from Q2 2024 FX headwinds compared to prior year 24.0%(1) 21.5%(1) Top line impacted by unfavorable mix Raw material benefit from lower hedged prices for polymers and aluminum -10 -6 6 1 -7 -4 Production includes lower freight rates 175
Slide 21: Free cash flow
Free cash flow Reflects Q1 seasonality Three months Three months Free cash flow broadly inline with prior ended March ended March year period € million 31, 2024 31, 2023 Net cash from operating activities 8 30 Lease liability payment reflects increase Acquisition of property, plant and in right
Slide 22: Leverage and financing
Leverage and financing Net leverage reflects seasonality but remains below 3x € million Mar 31, 2024 Dec 31, 2023 Year-on-year improvement in net Gross debt 2,548 2,458 leverage (March 31, 2023: 3.1x) Cash 266 281 Group expects to reduce net leverage to around 2.5x by year-end 2024 Net debt 2,28
Slide 23: 2024 guidance confirmed
2024 guidance confirmed H1 reflects seasonality volume recovery accelerating in H2 4–6% Revenue growth Low end of the range Resin escalator for bag-in- (constant currency) box & spouted pouch not included in guidance 25-26% Guidance subject to end- Adjusted EBITDA Within lower half of margin the
Slide 24: May, 2024 | BNP Packaging Conference
May, 2024 | BNP Packaging Conference 24