Smurfit Westrock Plc · NYSE:SW
Smurfit Westrock — Q2 2024 Earnings Presentation
26 slides from Smurfit Westrock's earnings presentation, Jul 30, 2024
Slide 1: Consistently Delivering: 2024 Second Quarter Results
Consistently Delivering 2024 Second Quarter Results Paper | Packaging | Solutions
Slide 2: Forward Looking Statements
Forward Looking Statements This 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, among other things, the plans, strategies,
Slide 3: A globally admired business, dynamically and sustainably delivering returns
A globally admired business, dynamically and sustainably delivering secure and superior returns for all stakeholders 3 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.
Slide 4: A defining moment
A defining We believe this combination creates the leader in sustainable packaging with: moment • An unparalleled footprint around the world • A unique portfolio of packaging solutions serving diverse, growing end markets Presents a unique • Industry leading operational execution & innovation opport
Slide 5: Performance measures
EBITDA margin** Dividend % € cent 20 160 19 Performance 140 18 120 17 100 measures* 16 15 80 14 60 13 40 12 11 20 10 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net leverage ratio** Return on capital employed** % 3 21
Slide 6: Our journey so far
Our journey so far Fostered a Embedded Transformed performance-led, core values of perceptions of the entrepreneurial loyalty, integrity, European and winning respect and industry culture safety 6 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.
Slide 7: A global leader in sustainable packaging
A global leader in sustainable packaging • Leading integrated corrugated packaging company • Leading North American corrugated and consumer packaging company • European leader in containerboard and corrugated and large scale pan regional player in the Americas • Strong positions in Brazil and Mexico
Slide 8: Major areas of focus post-close
Major areas of focus post-close A great foundation Put the Support Focus on customer first our people execution and value Continue to keep the focus on our Build a cohesive culture that Promote our performance-led culture core business; providing our harnesses the best of Smurfit Kappa to deliver fo
Slide 9: Financials
Financials 9 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.
Slide 10: Q2 2024 financial highlights
Q2 2024 financial highlights* Approx. $3bn $480m 16.2% $186m 1.6x Net Adjusted Adjusted EBITDA Adjusted Free Net Leverage Sales EBITDA** Margin** Cash Flow** Ratio** *Due to the timing of the completion of the combination of Smurfit Kappa and WestRock Company subsequent to the end of the quarter, th
Slide 11: H1 2024 Smurfit Kappa & WestRock
H1 2024 Smurfit Kappa & WestRock* Approx. Approx. $15.4bn* $2.24bn* 14.5%* 2.5x* Net Adjusted Adjusted EBITDA Net Leverage Sales EBITDA** Margin** Ratio** *The non-GAAP combined information included in this presentation with respect to Smurfit Westrock for the six months ended June 30, 2024, represe
Slide 12: Capturing opportunities
Capturing Procurement Significant opportunities identified at a category- opportunities specific level, with expected upside following further analysis. Paper Integration Enhanced integration across North America, Latin America, and Europe, optimizing supply chains and substituting third-party purch
Slide 13: Capital allocation
Capital expenditure Balance sheet Capital Growth, integration and Strong investment sustainability focused grade credit rating allocation Capital allocation Disciplined approach – returns based Dividend Other shareholder Progressive policy returns is a key component Selective when other of capital a
Slide 14: Conclusion
Conclusion 14 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.
Slide 15: A portfolio of unparalleled scale
Paper Corrugated packaging Bag-in-box Paper sack Trays A portfolio of unparalleled Folding cartons Cans/tubes Rigid boxes Specialty packaging Displays scale Uniquely positioned to deliver to customers Cerepak® EnduraGrip® EnShield® PET Collar® WetTech® + kraft bag Punnets Beverage packaging Packagin
Slide 16: Key pillars
Key pillars Optimising the Customer Disciplined Performance Sustainability integrated focused capital culture leadership model innovation allocation 16 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.
Slide 17: Creating the future
Creating the future Loyalty Loyalty Integrity Respect Safety 17 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.
Slide 18: Smurfit Westrock will become the go-to sustainable packaging company
I believe that given the strength of our market position and the quality of our people, we are creating something truly unique. Smurfit Westrock will become the go-to sustainable packaging company, with the right product, in the right space, at the right time. 18 Paper | Packaging | Solutions © 2024
Slide 19: Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.
19 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.
Slide 20: Appendix
Appendix 20 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.
Slide 21: Our purpose
Our purpose Create Protect Care 21 Paper | Packaging | Solutions © 2024 Smurfit Westrock. All Rights Reserved.
Slide 22: Non-GAAP Financial Measures and Reconciliations
Non-GAAP Financial Measures and Reconciliations Smurfit Westrock plc (“Smurfit Westrock”) and Smurfit Kappa Group plc (“Smurfit Kappa”) report their financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, management believes certain non-G
Slide 23: Reconciliations to most comparable GAAP measure
(in $ millions) Three months ended Six months ended June 30 June 30 June 30 June 30 2024 2023 2024 2023 Net income $ 132 $ 267 $ 323 $ 548 Income tax expense 55 72 131 185 Depreciation, depletion and amortization 160 143 308 283 Reconciliations Transaction-related expenses associated with the Combin
Slide 24: 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 indicated. (in $ millions) Three months ended Six months ended June 30 June 30 June 30 June 30 2024 2
Slide 25: Reconciliations for Smurfit Kappa & WestRock
Set forth below is a reconciliation of the non-GAAP financial measure Adjusted EBITDA to Net income, the most directly comparable GAAP measure, for the periods indicated ($ in millions) Combined Six Months Ended Reconciliations June 30, 2024 Net income 421 Income tax expense 164 to most Depreciation
Slide 26: Reconciliations for Smurfit Kappa & WestRock (continued)
Reconciliations 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 indicated. to most ($ in millions, except Net Leverage comparable Ratio) Combined Jun