Orora Limited · ASX:ORA
Orora — Investor Presentation (February 2024)
28 slides from Orora's investor presentation, Feb 19, 2024
Slide 1: Financial Results Half Year Ended 31 December 2023
Financial Results Half Year Ended 31 December 2023 19 February 2024
Slide 2: 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 3: 1H24 Highlights and Group Strategy
1H24 Highlights and Group Strategy Brian Lowe Managing Director & Chief Executive Officer 3
Slide 4: 1H24 financial highlights
1H24 financial highlights • Set against the backdrop of a challenging macro- economic environment, revenue softness in OPS Includes one month of Saverglass following completion on 1 December 20231 and Orora Glass was offset by Orora Cans growth, strong cost control measures and margin Revenue Underl
Slide 5: 1H24 operating highlights
1H24 operating highlights Resilient earnings performance across North America and Australasia, with Saverglass in-line with expectations North America Australasia Saverglass Revenue Revenue 3.0% volume growth in Cans (USD) Volumes impacted by Revenue down continued macro-economic down offset by alum
Slide 6: Orora safety performance update
Lost time injury frequency rate (LTIFR)* Recordable case frequency rate (RCFR)^ Orora safety performance update 8.4 7.4 2.8 2.0 1H23 1H24 1H23 1H24 LTIFR* = (Number of lost time injuries / Total number of hours worked for employees and contractors) x 1,000,000 RCFR^ = (Number of recordable case inju
Slide 7: Compelling investment proposition
Compelling investment proposition Orora provides investors with a robust and defensive earnings profile with attractive growth upside Leadership Robust and Well invested Long term positions in diversified assets and customer trading attractive business model defensive growth relationships markets pr
Slide 8: Saverglass enhances Orora's business model and presents compelling growth opportunities
Saverglass enhances Orora’s business model and presents compelling growth opportunities Leadership Robust and Well invested Long term Disciplined Strong Experienced Favourably positions in diversified assets and customer approach to financial track stable positioned in attractive business defensive
Slide 9: Progressing our strategy
Progressing our strategy Disciplined execution of our strategy to continue to drive through the cycle sustainable earnings growth Orora Packaging Solutions in North America Orora Beverage in Australasia Saverglass Continued improvement in financial performance and Record production in Cans drivi
Slide 10: Financial Results
Financial Results Shaun Hughes Chief Financial Officer 10
Slide 11: 1H24 Group financial performance
1H24 Group financial performance 1H24 1H24 Underlying ($m) 1H23 Var$3 Var%3 CC%3 Underlying excluding Saverglass incl. SVG1 excl. SVG2 Revenue 2,139.1 2,023.9 2,264.5 (240.6) (10.6%) (12.4%) • Revenue down 10.6%, driven by a 13.6% decrease in EBITDA 268.9 244.0 225.9 18.1 8.0% 6.3% North America (15
Slide 12: 1H24 North America financial highlights
1H24 North America North America business performance financial highlights • Lower revenue reflects continued softness in the broader North American manufacturing industry and the flow-through impact of price deflation, with revenues declining 15.9% Revenue (USD) EBIT (USD) • Continued proactive chu
Slide 13: 1H24 Australasia financial highlights
1H24 Australasia Beverage business performance • Slight revenue decline of 0.9%, reflecting inflation cost recovery and improved financial highlights product mix (+4.2%), offset by lower aluminium cost passthrough (-3.8%) and net volume decline attributable to Glass and Closures (-1.3%) • Record can
Slide 14: Saverglass acquisition update
Saverglass acquisition update Saverglass is a global leader in the design, manufacturing and decoration of high-end bottles for the premium and ultra-premium spirit and wine markets Completion details Final purchase consideration • The acquisition of Saverglass was completed on 1 December 2023 and w
Slide 15: 1H24 Saverglass financial highlights
1H24 Saverglass financial highlights Saverglass business performance Revenue • Financial performance for the first month under Orora ownership was in line €69.5m • with the December 2023 trading update Revenue of €69.5m, EBITDA of €15.1m (French GAAP: €14.2m) and EBIT of €8.1m (French GAAP: €8.0m) D
Slide 16: Operating cash flow
Operating cash flow • Cash EBITDA increased $20.3m, or 9.2%, to $241.5m $m 1H241 1H23 Var$ Var% • Underlying operating cash flow of $240.5m was $79.4m higher Underlying EBITDA 268.9 225.9 43.0 19.0% than 1H23, with one month of Saverglass cash flow and reduced Lease payments (44.4) (31.2) (13.2) wor
Slide 17: Group capex profile
Group capex profile Growth capex underpins incremental future earnings growth in Australasia Base and Growth capex ($m) Cullet beneficiation plant G3 furnace and Oxygen plant 193.8 Aug-22 to budget Expected 1HFY25 13.0 Dandenong 2nd SVG F23 furnace rebuild canning line Expected 1HFY25 116.2 Jun-23 b
Slide 18: Balance sheet and net debt
Balance sheet and net debt Balance sheet provides operating and strategic flexibility to support Orora’s growth strategy Balance sheet Net debt and leverage ratio 2.59x $m 1H24 FY23 2.05x 1.83x 1.88x 1,658 Average funds employed 1,639.0 1,471.9 1.58x Net debt 1,658.2 774.0 Net assets 2,032.6 800.2 7
Slide 19: Interim dividend
Interim dividend Lower 1H24 dividend reflects higher shares on issue Cents per share Gross interim dividend Payout ratio 5.0 cps $67.2m 62.0% -3.5 cps 60-80% target payout ratio 1H23: $71.9m 1H23: 8.5 cps 1H23: 66.4% • Interim dividend of 5.0 cents per share (unfranked), comprising a $67.2m • The Di
Slide 20: Sustainability Update
Sustainability Update Brian Lowe Managing Director & Chief Executive Officer 20
Slide 21: 1H24 Sustainability performance highlights
1H24 Sustainability performance highlights We continue to invest and make good progress with our sustainability goals and commitments • Achieved 38% recycled content (cullet) in • Scope 1 & 2 greenhouse gas emissions decreased • Continued rollout of Our Orora Culture Shaping manufactured glass produ
Slide 22: FY24 Perspectives and Outlook
FY24 Perspectives and Outlook Brian Lowe Managing Director & Chief Executive Officer 22
Slide 23: Perspectives for FY24
Perspectives for FY24 Disciplined execution of our strategy to continue to drive through the cycle sustainable earnings growth Orora Packaging Solutions in North America Orora Beverage in Australasia Saverglass • Improved operating leverage through embedded • Expected continued earnings growth in Ca
Slide 24: FY24 outlook
FY24 outlook • Whilst global consumer demand remains uncertain, Orora Group EBIT is expected to be higher in FY24, excluding the EBIT contribution from Saverglass • In North America, in line with 1H24, ongoing margin accretion through account profitability programs and a continued focus on cost mana
Slide 25: Supporting Information
oO* re —~—T Supporting Information C
Slide 26: Statutory to underlying reconciliations
Statutory to underlying reconciliations Statutory to underlying results 1H24 1H23 ($m) EBIT PBT NPAT EBIT PBT NPAT Statutory result 143.7 111.2 68.2 165.8 144.7 108.1 Add significant items: - Acquisition transaction costs 40.4 40.4 40.4 - - - Underlying result1 184.1 151.6 108.6 165.8 144.7 108.1 St
Slide 27: Liquidity and debt maturity profile
Liquidity and debt maturity profile Balance sheet with appropriate liquidity and debt facilities to support growth investments Liquidity Profile ($m) Debt Maturity Profile ($m) As at 31 December 2023 As at 31 December 2023 676 676 628 628 571 571 235 100 339 350 350 268 285 - 285 676 628 15 471 571
Slide 28: ororagroup.com/investors
x iL OR: SRA ororagroup.com/investors v/a