Packaging Corporation Of America · NYSE:PKG
Packaging Corporation Of America — Packaging Corp of America — KeyBanc Industrials & Basic Materials Conference 2021
8 slides from Packaging Corporation Of America's conference presentation, Jun 4, 2021
Slide 1: Packaging Corporation of America KeyBanc Industrials & Basic Materials Conference
Exhibit 99.1 Packaging Corporation of America KeyBanc Industrials & Basic Materials Conference June 4, 2021 Mark W. Kowlzan Robert P. Mundy Chairman & CEO Executive V. P. & CFOExhibit 99.1 Packaging Corporation of America KeyBanc Industrials & Basic Materials Conference June 4, 2021 Mark W. Kowlzan
Slide 2: Forward-Looking Statements
Packaging Corporation of America Certain statements in this presentation are forward-looking statements. Forward-looking statements include statements about our future financial condition, our industry and our business strategy. Statements that contain words such as “anticipate”, “believe”, “expect”
Slide 3: 2Q21 Update
2Q21 Update • Packaging Segment - Demand remains broad-based and very strong; box shipments on pace to exceed 2Q20 by double-digit % - All four planned annual mill outages have been successfully completed on budget - Expect to replenish some inventory during the quarter by utilizing our Jackson Mill
Slide 4: Continuing to Identify Tactical/Strategic, Value-Creating Initiatives and Projects
Continuing to Identify Tactical/Strategic, Value-Creating Initiatives and Projects …… • Pre-pandemic, N.A. uncoated freesheet market was in secular decline of 3-4% per year; sharp decline in demand in 2020 due to nationwide responses to COVID-19 pandemic • Record demand in Packaging segment created
Slide 5: That Will Sustain Our Industry-leading ROIC Performance
……. That Will Sustain Our Industry-leading ROIC Performance Five Year Average ROIC of 16% 18% 17% 14% 14% 13% 2020 WACC 8% 2017 2018 2019 2020 LTM 1Q21 5 Note: ROIC = net operating profit after tax (adjusted to exclude special items) / average invested capital (equity & net debt); see Appendix A for
Slide 6: Strategic Focus Areas
Strategic Focus Areas • Continued Operational Excellence in Manufacturing and Sales • Containerboard / Corrugated System Optimization with Jackson No. 3 Machine Linerboard Conversion • Enhance Revenue in Packaging Segment thru Profitable Organic Box Volume Growth and Strategic Capital Spending in Co
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Slide 8: Appendix A
Appendix A LTM 2017 2018 2019 2020 1Q 2021 1Q 2021 Return on invested capital (ROIC) is calculated as follows: Reported income from operations $ 932 $ 1,068 $ 1,054 $ 724 $ 238 $ 753 Special items and adjustments: - Jackson mill conversion - - - - 1 1 - Hurricane Laura impact - - - 10 - 10 - Goodwil
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