Smurfit Westrock Plc · NYSE:SW
Smurfit Westrock — Q4 2024 Earnings Presentation
29 slides from Smurfit Westrock's earnings presentation, Feb 12, 2025
Slide 1: Fourth Quarter and Full Year Results
2024 Fourth Quarter and Full Year Results February 12, 2025 Paper | Packaging | Solutions
Slide 2: Forward Looking Statements
Smurfit Westrock Q4 | 2024 Results | 2 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, amon
Slide 3: Non-GAAP Financial Measures and Reconciliations
Smurfit Westrock Q4 | 2024 Results | 3 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 fin
Slide 4: Delivering
Smurfit Westrock Q4 | 2024 Results | 4 Delivering Paper | Packaging | Solutions
Slide 5: Our global operating platform supports local implementation
Smurfit Westrock Q4 | 2024 Results | 5 Our global operating platform supports local implementation North America Europe, MEA, and APAC Latin America Paper | Packaging | Solutions
Slide 6: Smurfit Westrock
Smurfit Westrock Q4 | 2024 Results | 6 ~$31 ~500 billion net sales packaging and other facilities Smurfit Westrock The go-to sustainable packaging partner of 40 countries choice. We offer an unrivalled product portfolio and bring expertise, scale and a 62 14 global presence of ~500 packaging and mil
Slide 7: Leadership team with a strong track record of delivery
Smurfit Westrock Q4 | 2024 Results | 7 Leadership team with a strong track Tony Smurfit President and Group Ken Bowles Executive Vice Alvaro Henao President and CEO, Saverio Mayer Laurent Sellier President and CEO, President and CEO, record of delivery CEO President and Group CFO LATAM EMEA + APAC N
Slide 8: Strong track record of delivery
Smurfit Westrock Q4 | 2024 Results | 8 Strong track record of delivery • Applied an owner/operator, performance- led culture % EBITDA margin* € cent Dividend** • De-centralized operations 20 200 18 • Visibility on plant level P&L and balance 150 16 sheet 100 14 50 • A sharp commercial focus 12 10 0
Slide 9: Successful initial phase of the transformation journey
Smurfit Westrock Smurfit Q4 | Q4 Westrock 2024 Results | 2024 | 9 | 9 Results Successful initial phase of the transformation journey ✓ Delivering to plan – Full Year Combined Adjusted EBITDA* of $4.7 billion in FY 2024 ✓ Synergy program of $400 million on track to complete in FY 2025 ✓ Opportunities
Slide 10: Optimizing production
Smurfit Westrock Smurfit Q4 | Q4 Westrock 2024 Results | 2024 | 10| 10 Results Optimizing production Since the beginning of 2023 we have: ✓ Closed 32 packaging facilities ✓ Closed three mills ✓ Divested four mills Improve Achieve Enhance operational cost savings focus on core efficiency by reducing
Slide 11: Investing for growth
Smurfit Westrock Smurfit Q4 | Q4 Westrock 2024 Results | 2024 | 11| 11 Results Investing for growth Significant ongoing investment in the mill and packaging facility network to take out cost, increase efficiency and meet the needs of our diverse customer base, including: Recent Significant Capex • M
Slide 12: What's next
Smurfit Westrock Smurfit Q4 | Q4 Westrock 2024 Results | 2024 | 12| 12 Results What’s next: ✓ Capitalizing on our excellent market positions and asset quality ✓ Empowering experienced and motivated people who want to be part of a winning team ✓ Further sharpening of commercial focus across the organ
Slide 13: Financials
Smurfit Westrock Q4 | 2024 Results | 13 Financials Paper | Packaging | Solutions
Slide 14: Q4 2024 Smurfit Westrock results
Smurfit Westrock Smurfit Q4 | Q4 Westrock 2024 Results | 2024 | 14| 14 Results Q4 2024 Smurfit Westrock results $7.539 $1.166 15.5% $257m Billion Billion Adjusted Adjusted Net Sales Adjusted EBITDA* EBITDA Margin* Free Cash Flow* *Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Free Cash Flow
Slide 15: Q4 Highlights: North America
Smurfit Westrock Smurfit Q4 | Q4 Westrock 2024 Results | 2024 | 15| 15 Results Q4 Highlights Smurfit Westrock | North America • Focus on value over volume • Positive overall trend in safety statistics, emphasis on Q4 24 local accountability, leadership, employee engagement • Further reduction in ove
Slide 16: Q4 Highlights: EMEA + APAC
Smurfit Westrock Smurfit Q4 | Q4 Westrock 2024 Results | 2024 | 16| 16 Results Q4 Highlights Smurfit Westrock | EMEA + APAC • Record performance from a safety perspective Q4 24 • Record On-Time-In-Full (service) statistics • Record corrugator productivity Net Sales (aggregate) $2.5 billion • New con
Slide 17: Q4 Highlights: LATAM
Smurfit Westrock Smurfit Q4 | Q4 Westrock 2024 Results | 2024 | 17| 17 Results Q4 Highlights Smurfit Westrock | LATAM • Further investment in 2025 on mill expansion projects, new converting equipment and paper machine Q4 24 upgrades will capture growth in this dynamic region • Value over volume appr
Slide 18: Capital allocation
Smurfit Westrock Q4 | 2024 Results | 18 Capital expenditure Balance sheet Capital Growth, integration and Strong investment allocation sustainability focused grade credit rating 2025 – $2.2bn - $2.4bn with a long-term target of <2x net leverage ratio Capital allocation Disciplined approach – returns
Slide 19: Conclusion
Smurfit Westrock Q4 | 2024 Results | 19 Conclusion Paper | Packaging | Solutions
Slide 20: Increasingly excited about the opportunities and prospects ahead
Smurfit Westrock Q4 | 2024 Results | 20 Increasingly excited about the opportunities and prospects ahead “The operational and financial Why we will win expertise that are hallmarks of this management team are ✓ Experienced and motivated people already being applied as we transform the combined busin
Slide 21: Attractive long-term fundamentals
Smurfit Westrock Smurfit Q4 | Q4 Westrock 2024 Results | 2024 | 21| 21 Results Attractive long-term fundamentals “ ✓ Continued and meaningful progress on our transformation journey While we are at the beginning of our journey, ✓ Strong structural growth drivers I am immensely proud of ✓ Product that
Slide 22: Appendices
Smurfit Westrock Q4 | 2024 Results | 22 Appendices Paper | Packaging | Solutions
Slide 23: Full Year 2024 Smurfit Westrock combined
Smurfit Westrock Q4 | 2024 Results | 23 Full Year 2024 Smurfit Westrock combined YTD* Combined Net Sales $30,904m Combined Adjusted EBITDA** $4,706m Combined Adjusted EBITDA Margin** 15.2% Combined Net Leverage Ratio** 2.7x *Full Year Combined Adjusted EBITDA reflects unaudited financial information
Slide 24: 2025 Guidance
Smurfit Westrock Q4 | 2024 Results | 24 2025 Guidance Cash interest ~$0.7 billion Cash tax ~$0.6 billion Effective tax rate ~26% Capital expenditure ~$2.2 – $2.4 billion 2025 Q1 Adjusted EBITDA* ~ $1.25 billion *Adjusted EBITDA is a non-GAAP financial measure. We have not reconciled Adjusted EBITDA
Slide 25: Reconciliations to most comparable GAAP measure
Smurfit Westrock Q4 | 2024 Results | 25 Reconciliations to most comparable GAAP measure 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 i
Slide 26: Reconciliations to most comparable GAAP measure (continued)
Smurfit Westrock Q4 | 2024 Results | 26 Reconciliations to most comparable GAAP measure (continued) 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 i
Slide 27: Reconciliations for Full Year Combined Adjusted EBITDA
Smurfit Westrock Q4 | 2024 Results | 27 Reconciliations to most comparable GAAP measure for Full Year Combined Adjusted EBITDA Set forth below is a reconciliation of the non-GAAP financial measures Full Year Combined Adjusted EBITDA to Net Income, the most directly comparable GAAP measure. in $ mill
Slide 28: Our Purpose
Smurfit Westrock Q4 | 2024 Results | 28 Our Purpose Create Protect Care Paper | Packaging | Solutions
Slide 29: Smurfit Westrock Q4 | 2024 Results | 29 Paper | Packaging | Solutions
Smurfit Westrock Q4 | 2024 Results | 29 Paper | Packaging | Solutions