Elopak Asa · OSL:ELO
Elopak Asa — Investor Day (September 2024)
107 slides from Elopak Asa's investor day presentation, Sep 4, 2024
Slide 1: Repackaging tomorrow
Repackaging tomorrow Capital markets day September 4, 2024 1
Slide 2: Disclaimer
Disclaimer Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Elopak management concerning plans, objectives and strategies, such as planned expansion
Slide 3: Agenda
Agenda 09:00 10:00 10:45 Welcome Break Break Christian Gjerde Head of Treasury and Investor Relations 10:10 11:00 09:05 Realize global growth Financials and mid-term targets Lionel Ettedgui Bent K. Axelsen A leader in sustainable packaging EVP Region North America CFO Thomas Körmendi Strengthen lead
Slide 4: Refocusing priorities to accelerate profitable growth
Refocusing priorities to accelerate profitable growth A strategy focused on creating change: #1 A sustainability frontrunner, offering market leading ~2 By 2030; above market revenue growth with 3 Realize global growth Strengthen position technology in fiber- EURbn improved EBITDA strategic leadersh
Slide 5: Large categories exist without sustainable packaging options
Today, large categories exist without sustainable packaging options 349 Index g/CO2 eq/half-gallon 100% 100 80 206 g/CO2 eq/half-gallon 59% 60 141 g/CO2 eq/half-gallon 40% 95 40 g/CO2 eq/half-gallon 27% 20 0 PET HDPE Fresh cartons Fresh brown board cartons g/CO2 eq/half-gallon Source: Anthesis for E
Slide 6: Introducing a leader in sustainable packaging
Introducing a leader in sustainable packaging Thomas Körmendi, CEO Introducing a world leader Market drivers shaping Repackaging tomorrow Realize global growth Strengthen Leverage plastic Financials and Q&A session in sustainable packaging future priorities leadership in core replacement shift mid-t
Slide 7: We're in the business of sustainable packaging
We’re in the business of Protecting essential commodities sustainable Enabling world nutrition Reducing plastics packaging Chosen by people, packaged by nature 7
Slide 8: Elopak at a glance
Revenue end markets FY23 Revenue by region FY23 Elopak at a glance Other Aseptic 4% 20% Pure-Pak® The world’s largest player in fresh liquid carton packaging cartons 14 billion cartons produced in 2023 76% Fresh Sales to 70+ markets EMEA: ~75% Americas: ~25% 2,700 employees Russia Historical revenue
Slide 9: Offering system solutions known for high quality
Filling Packaging Aftermarket machines solutions services Offering system State of the art offerings Known for quality Value added solutions known across segments and innovation aftermarket support for high quality and innovation Revenue share: 5% Revenue share: 90% Revenue share: 5% 9
Slide 10: A preferred supplier of liquid carton packaging to several industries
A preferred supplier of liquid carton packaging to several industries Juice and Home and Dairy plant based personal care 10
Slide 11: Product portfolio with innovative packaging formats for every need
Product portfolio with innovative packaging formats for every need 11
Slide 12: Global footprint in attractive regions
Global footprint in attractive regions Machine production Coating plants Converting plants Roll Fed production Market unit offices HQ, Corporate office, Technology center Joint ventures Licensee partners 12
Slide 13: Experienced Group Leadership Team (GLT)
Experienced Group Leadership Team (GLT) CEO Thomas Körmendi Product and Development Region North and India Finance and IT Uwe Schulze Stephen Naumann Bent Kilsund Axelsen Packaging and Procurement Region South and MENA People and Organization Ivan Ferrini Finn M. Tørjesen Nete Bechmann Equipment and
Slide 14: Since our foundation, we have set new standards
Since our foundation, we have set new standards for innovative and sustainable packaging 1957 2011 2016 2021 2022 Today First order for Pure-Pak® is Mönchengladbach Elopak is a carbon Listed on Oslo Net zero Introducing strategy placed in Europe plant (GER) is opened neutral company Stock Exchange t
Slide 15: Recognized for our strong commitment to sustainability
Recognized for our strong commitment to sustainability Product certification Commitment Recognitions Green bond framework 15
Slide 16: First packaging company to commit to science based targets
The first packaging company to Current performance puts Elopak on top 2% of all rated companies worldwide: commit to scienced based targets Progress as of end 2023 33% Scope 1 and 2 emissions reduction from 2020 baseline Scope 1 Scope 2 Scope 3 100% Natural gas, propane, heating, Electricity, distri
Slide 17: Significant progress delivered on our 2021 strategy
Significant progress delivered on our 2021 strategy Fresh opportunity in Aseptic growth Broaden geographic Plastic to carton Commercial North America roadmap footprint conversion excellence Expand our end-to-end, Leverage our historical Broaden our geographical Grow accessible potential, Drive busin
Slide 18: Since the IPO, we have grown to a leader in sustainable fiber-based packaging
Since the IPO, we have grown from a fresh liquid packaging provider to a leader in sustainable, fiber-based packaging 2021: Now: Low geographical diversification Global footprint with #1 position in 1| with >80% of revenues from core European markets, of which ~10% from Russia 1| fresh in MENA and J
Slide 19: Market drivers shaping our priorities
Market drivers shaping our priorities Runar Bakken, Head of Strategy Office Emilie Olderskog, Head of Sustainability Introducing a world leader Market drivers shaping Repackaging tomorrow Realize global growth Strengthen Leverage plastic Financials and Q&A session in sustainable packaging future pri
Slide 20: Global macro trends present new opportunities
Global macro trends present new opportunities Population growth Higher disposable income Accelerating urbanisation 20
Slide 21: Growing demand for beverage carton packaging
Growing demand for beverage carton packaging Mature markets Emerging markets (Europe, North America) (MENA, APAC) Europe North America MENA India (incl. Central America) -1 to +1% p.a. 0 to 2% p.a. 1 to 3% p.a. 4 to 7% p.a. Beverage carton packaging market growth (liters) Source: See Appendix for da
Slide 22: Increasing sustainability focus drives shift in packaging trends
Increasing sustainability focus drives shift in packaging trends Consumers demand more sustainable products Driven by increased awareness of sustainability Brands demand more sustainable packaging Integrating sustainable packaging as a strategic imperative for brand reputation Increased regulations
Slide 23: Consumers demand more sustainable products
Consumers demand more sustainable products… 69% of consumers say sustainability has become more important to them over the last two years 74% of US adults agree that food and beverage companies should try to limit their use of plastics 53% Of consumers will pay 10% more for sustainable food and drin
Slide 24: … and so do our customers
… and so do our customers Packaging customers are determined to deliver on the following: Renowned brands with ambitious targets Recyclability Plastics reduction CO2 reductions Many large customers Several large food and Our customers are have defined ambitious beverage players have committed to red
Slide 25: A driver for emerging regulations
Number of laws passed annually linked to packaging sustainability Increased global sustainability focus: A driver for emerging regulations Source: National Conference of State Legislatures; Press Search 25 25
Slide 26: Most regulations are targeting plastic packaging
177 So far, most Metals, glass and others 7 regulations are targeting plastic packaging Flexible, rigid and/or composite plastics 166 ~83% of regulations are on plastic Flexible paper and paper-based containers 4 Number of legal measures per substrate, Global scope, 2018-2021 Source: National Confer
Slide 27: Europe targeting reduced emissions of 55% by 2030
Europe is targeting reduced emissions of 55% by 2030 and climate neutrality by 2050 Example: The EU Packaging and Packaging Waste Regulation (PPWR) Regulation in a nutshell Main topics included Approval is expected in Q4 2024, and will enter into force by 2026 Packaging minimization Design for recyc
Slide 28: Harmonized standards represent net advantages for fiber-based packaging and Elopak
Harmonized standards represent net advantages for fiber-based packaging and Elopak Industry implications Implications for Elopak Standardized requirements Preliminary impact examples: Increased cooperation and efficiency ‒ Majority of today’s carton portfolio already or near proposed New incentives
Slide 29: We will meet the expected PPWR recyclability requirements
We will meet the expected PPWR Our new mid-term recyclability target: recyclability 100% requirements. In fact, we introduce globally… of cartons designed for recycling 29
Slide 30: Elopak is well positioned to realize upcoming growth opportunities
Elopak is well positioned to realize upcoming growth opportunities Global macro trends drive industry growth Consumer awareness and sustainability trends Increased regulations 30
Slide 31: Introducing our strategy 'Repackaging tomorrow'
Introducing our strategy ‘Repackaging tomorrow’’ Thomas Körmendi, CEO Introducing a world leader Market drivers shaping Repackaging tomorrow Realize global growth Strengthen Leverage plastic Financials and Q&A session in sustainable packaging future priorities leadership in core replacement shift mi
Slide 32: Ingoing beliefs refocusing our future priorities
Ingoing beliefs refocusing our future priorities 1 Current position, resilience and scalable business model enable 2 Changing consumer expectations and increasing regulations us to leverage global mega trends accelerate growth opportunities 3 Plastic to fiber shift estimated to double our addressabl
Slide 33: Refocusing priorities to accelerate profitable growth
Refocusing priorities to accelerate profitable growth Realize global Strengthen Leverage plastic growth potential leadership in core replacement shift A sustainability frontrunner with innovative solutions across multiple packaging segments 33
Slide 34: Realize global growth
Strategic priority #1 Realize global growth Lionel Ettedgui, EVP Region North America Introducing a world leader Market drivers shaping Repackaging tomorrow Realize global growth Strengthen Leverage plastic Financials and Q&A session in sustainable packaging future priorities leadership in core repl
Slide 35: Accelerating growth in margin accretive markets
Accelerating growth in margin . accretive markets 1. Americas 2. MENA 3. India Growth ambitions (sales EURm) ~800 India ~650 MENA 360 Americas 2023 Within 5 years 2030 Share of revenue 2023 from key growth regions1: Americas 26% MENA 4% India 2% 1) Share of revenue excludes others and eliminations 3
Slide 36: Aspiring for leadership in Americas
1 Aspiring for leadership in Americas 2023 Market opportunities: #2 market position Large traditional carton market of more 1 USDbn, historically dominated by a single player EUR 291m as a reliable partner for top-tier clients Strong demand for high-quality, innovative and sustainable solutions With
Slide 37: Today we are offering end-to-end solutions
I In 2021, the Americas business model was focused on sale of blanks Today we are offering end-to-end solutions Filling machines Packaging solutions Aftermarket services 37
Slide 38: #2 position realized by being end-to-end solutions provider
1 #2 position realized by being end-to-end solutions provider Revenues (EURm), adjusted EBITDA margin (%), Americas 291 299 CAGR +7.9% 261 215 194 192 23.2% 23.7% 19.8% 17.2% 18.4% 13.1% 2019 2020 2021 2022 2023 LTM 2024 Carton market insights Americas Elopak in America Beverage carton packaging 17b
Slide 39: Increasing production capacity with new plant to meet strong US demand
1 Increasing production capacity with new plant to meet strong US demand The project is developing according to plan: USD 70m On plan H1 2025 Sold out Phase 2 Capex for land, Construction Planned production Production capacity Investment in building and first progressing as start for first productio
Slide 40: Keys to success: Americas
Americas Keys to success Leverage expanded high technology production 1| capacity and build on well-functioning operations Be the most reliable partner in North America, with 2| highly competent personnel and world class service Be the frontrunner in the industry transition to more 3| sustainable ca
Slide 41: Leveraging our position in MENA
2 Leveraging our position in MENA 2023 Growth opportunities: #1 market position in fresh Attractive market fundamentals with growing population, urbanization and consumer demands EUR 45m with production plants in Morocco and Saudi Arabia Increasing demand for sustainable, full-service packaging solu
Slide 42: Today, we are offering a broader range of packaging solutions
In 2022, we entered MENA with acquisition of the #1 fresh player in the region Today, we are offering a broader range of packaging solutions 42
Slide 43: As market leader in fresh, we seek to expand into other segments
2 As the market leader in the fresh market, we seek to expand our footprint in other segments Strategic priorities Leverage local production capabilities to expand sales in the MENA region through quality and extended shelf-life performance Introduce high-margin extended shelf-life and aseptic solut
Slide 44: Broadening the offering in India
3 Broadening the offering in India Growth opportunities: 2023 EBITDA positive, after successful market entry High per capita milk consumption, strong growth and demand for sustainable solutions EUR 24m Leverage our position to unlock growth in the world’s largest dairy market Within 5 years Increase
Slide 45: Extending our position with Pure-Pak cartons in the world's largest dairy market
In 2022, we entered India through a JV with GLS Annual consumption of fluid cow milk worldwide in 2023, by country Now, we extend our (in 1,000 metric tons) position by 87 introducing our Pure-Pak® carton solutions to the world’s largest dairy 24 market 21 17 11 7 6 India EU US China Brazil Russia U
Slide 46: Use our position to unlock growth in the world's largest dairy market
3 Use our position to unlock growth in the world’s largest dairy market Strategic priorities Increase local Roll Fed production capacity to respond to high demand for sustainable, high-quality products Expand local operations with Pure-Pak® production line and introduce fresh Pure-Pak® cartons to th
Slide 47: Our keys to success: MENA and India
MENA and India Our keys to success 1 | Leverage local production facilities and add capacity, offering the market local products and flexibility 2 | Optimize product portfolio by introducing high-quality, consumer preferred products and low risk system solutions 3| Be a reliable partner in the indus
Slide 48: Strengthen leadership in core
Strategic priority #2 Strengthen leadership in core Stephen D. Naumann, EVP Region Europe North Uwe Schulze, EVP Product and Development Introducing a world leader Market drivers shaping Repackaging tomorrow Realize global growth Strengthen Leverage plastic Financials and Q&A session in sustainable
Slide 49: The #1 player in Europe
The #1 player in Europe Market opportunity: Regulations that call for action across the packaging industry Strong demand for more sustainable packaging solutions Ambitions: Strengthen our #1 position and leverage shift towards fiber in core markets Deliver above-market growth by leveraging sustainab
Slide 50: Gaining market share in mature markets with shifting consumer preferences
Revenues (EURm), Europe1 Gaining market CAGR +6%* 803 816 share in mature 748 646 662 675 markets with shifting consumer preferences 13.1% 803 2019 2020 2021 2022 2023 LTM2024 Carton market insights Europe Elopak in Europe Beverage carton packaging ~28bn Est. market size in bn liters in 20232) -1 to
Slide 51: Continued growth expected, with top European brands choosing fiber-based packaging
Continued growth expected, with top European brands choosing fiber- based packaging 51
Slide 52: Examples of European customers selecting Pure-Pak cartons
Examples of European customers selecting Pure-Pak® cartons 52
Slide 53: Successful launch of next generation filling machines
Successful launch of next generation filling machines Successful launch of new filling machines in Europe, with installations for major dairy brands in Central Europe and increasing demand ahead Features exceptional hygiene standards and designed to fill a wide range of chilled products Extends prod
Slide 54: Leveraging our leading innovation capabilities for continued growth
. Elopak is well positioned to seek net advantages of PPWR and works on multiple dimensions: Organization and capabilities Leveraging our leading Technology and product innovations innovation capabilities for continued growth Supplier collaboration initiatives Customer testing and collaboration Advo
Slide 55: Building on a long history of innovations
Building on a long history of innovations… 1957 2003 2017 2022 2022 Introducing the Launch of different Pure-Pak® Pure-TwistFlip Pure-Pak® Pure-Pak ® carton Pure-Pak ® carton fresh cartons with eSense in Norway shapes natural brown board Key features: 12 months 100% Shelf life Aluminium free 1915 19
Slide 56: A strong foundation to find the most sustainable solution
…we have a strong foundation to develop further and find the most sustainable solution while ensuring optimal shelf-life and product properties 56
Slide 57: Four focus areas for innovation
Four focus areas for innovation Designed for recycling Aluminium free portfolio Maximize fiber yield Replace plastic closures with more sustainable openings 57
Slide 58: A sneak peak at the next generation of sustainable closures
A sneak peak at the next generation of sustainable closures 58
Slide 59: Key enablers
Strengthen leadership in core Key enablers 1| Ability to leverage our #1 positions in fresh and our long industry expertise to seek net advantages of upcoming regulations 2| Customer wins by an already large and established product portfolio within 100% aluminium free, 100% renewable solutions 3| Ab
Slide 60: Leverage plastic replacement shift
Strategic priority #3 Leverage plastic replacement shift Dirk Endlich, VP Plastic to carton Introducing a world leader Market drivers shaping Repackaging tomorrow Realize global growth Strengthen Leverage plastic Financials and Q&A session in sustainable packaging future priorities leadership in cor
Slide 61: 1,000,000 plastic bottles bought per minute
1,000,000 plastic bottles bought per minute ~8% 40% 3x of plastics produced of plastic waste is global plastic waste is set have been recycled from packaging to close to triple by 2060 61 Source: The United Nations Environment Program (UNEP), Business Waste (UK) and The Organisation for Economic Co-
Slide 62: Plastic dominates grocery packaging, a new and large addressable market
Plastic dominates grocery packaging with ~60% share, representing a new and large addressable market Plastic replacement : Conversion potential in 2030 (EURbn)1) 105 13-17 7-8 Near term organic opportunities ~15% of plastic Non-carbonated bottle market with soft drinks, home total plastic care, fami
Slide 63: Ready to leverage the shift
Plastic replacement shift Ready to leverage the shift Market opportunity ‒ Sustainability trend drives shift in packaging towards carton solutions ‒ Customer and regulatory push boosts orders for our D-PAK cartons from top-tier FMCG suppliers ‒ Explore food related segments adjacent to current core
Slide 64: Home and personal care: Multiple possibilities
Home and personal care: Multiple possibilities Home and personal care market potential >60% Sees a consolidated customer landscape ~1.5bn Est. market size in EUR by 20301) 14bn Est. targetable end-use areas by 2030 (bn units)1) with top-tier customers representing >60% of addressable market 64 Sourc
Slide 65: Already supplying top-tier players within home and personal care
Already supplying top-tier players within home and personal care McBride: Surcare Orkla Home and Personal Care P&G: Fairy Max 65
Slide 66: Continuous development of product portfolio
Continuous development of product portfolio Sneak peak: Generation 1 Generation 2 66 66
Slide 67: Zooming in on Generation 2
Zooming in on: To be made in Duo pack Generation 2 To be made in Duo pack solutions solutions 67
Slide 68: Key innovation areas to future-proof Elopak
Key innovation areas to future-proof Elopak Design advancement D-PAK next generations Portfolio advancement to expand offering in new adjacencies 68
Slide 69: Why not use fiber-based packaging solutions?
Why not use fiber-based packaging solutions? Yoghurt and cream Firm dairy products Sauces and spreads ~1.8 EURbn ~0.5 EURbn ~0.4 EURbn 69 Source: Company research
Slide 70: Partnerships and acquisitions as tools for value accretive growth
Partnerships and acquisitions could be tools for value accretive growth Exploration will be based on some key criteria: Segments exposed to the plastic replacement shift Consumer and customer synergies Leverage our barrier and filling technology Deep knowledge in new fiber end-use Compliance with up
Slide 71: Keys to success: Plastic replacement shift
Plastic replacement shift Keys to success 1| Leverage first-mover advantage in home and personal care markets with already existing products 2| Strong relationships with key customers with demand for more sustainable solutions 3| Ability to adapt and seize opportunities by shaping our priorities to
Slide 72: Financials and mid-term targets
Financials and mid-term targets Bent K. Axelsen, CFO Introducing a world leader Market drivers shaping Repackaging tomorrow Realize global growth Strengthen Leverage plastic Financials and Q&A session in sustainable packaging future priorities leadership in core replacement shift mid-term targets 72
Slide 73: Attractive shareholder returns delivered since IPO
Attractive shareholder returns delivered since IPO Total Shareholder Return since IPO in July 2021 Dividend per share (NOK) 1.46 180 ELO OSEBX 160 140 120 0.86 100 0.76 80 60 40 20 0 2021 2022 2023 2024 FY 2021 FY 2022 FY 2023 73
Slide 74: Resilient financial profile with profitable growth momentum
Resilient financial profile with profitable growth momentum Revenues (EURm)1 Adjusted EBITDA (EURm) and margin (%)2 1,132 1,151 Russia 1,024 15.1% 15.5% 940 909 906 909 178 85 13.5% 13.3% 171 11.7% 11.2% 122 119 9.1% 114 101 83 855 2018A 2019A 2020A 2021A 2022A 2023A LTM Q2 2018A 2019A 2020A 2021A 2
Slide 75: Delivering competitive returns on our capital base
Delivering competitive returns on our capital base Return on capital employed (ROCE)1 18% 17% 17% 17% Peer 1 16% Peer 2 14% Elopak 13% 12% 12% 12% 12% 10% 9% 9% 8% 8% 7% 6% 4% 2% 2% 0% 2021 2022 2023 Q1 2024 Q2 2024 Source: Company information, 1) Return on capital employed is calculated as adjusted
Slide 76: All IPO targets were realized by 2023
All IPO targets were realized by 2023, well ahead of the 3-5 years mid-term horizon 2021-2023 What we said: What we delivered: LTM/Q2-2024: Revenue growth 2-3% 10.1% CAGR 4.5% (organic, p.a.) EBITDA margin 14-15% 15.1%, 2023 15.5% (of adjusted EBITDA) Capex EUR ~50m p.a. Avg. EUR 41m EUR 56m Dividen
Slide 77: Our mid-term targets for the next 3-5 years
People (2030) Safety <3.2 TRI frequency per 1m hours worked Planet (2030) Our mid-term C02 -25% (SBTi – absolute Scope 3) targets for the Recyclability 100% next 3-5 years of cartons designed for recycling Profit (3-5 years) Revenue 4-6% organic growth p.a. EBITDA 15-17% adjusted EBITDA margin Divid
Slide 78: Ambitious people and planet targets
Ambitious people and planet targets People (2030) Planet (2030) Our commitments: Safety C02 ▹ Elopak makes no compromises on safety and aims for zero work related injuries <3.2 -25% TRI frequency per 1m hours worked (SBTi – absolute scope 3) ▹ Reduce scope 3 GHG emissions with 25% in absolute by Rec
Slide 79: Above market revenue growth in margin accretive markets
We will deliver above market revenue growth in margin accretive markets and segments IPO target: 2-3% organic growth p.a. Updated target: 4-6% organic growth p.a. 2.000 2.000 1.900 1.800 1.700 +4-6% 1.600 1.500 ~35 ~60 ~40 1.400 MENA India ~65 1.300 1.200 Americas ~190 1.132 1.100 1.000 ~1.520 900 8
Slide 80: Continue to strengthen our operating margins
Continue to strengthen our operating margins IPO target: 14-15% adjusted EBITDA margin Updated target: 15-17% adjusted EBITDA margin Our commitments Continue to strengthen our operating margins: +2.0pp. ▹Accelerating growth in margin accretive ~15-17% markets and products MENA +1.8pp. India ▹Leverag
Slide 81: Increase in investments to accelerate profitable growth
Increase in investments to accelerate profitable growth Highlights: Capex programme, 2025-2028, 5-7% of revenues1 ▹Higher investments, driven by: − New US plant 70 USDm in 2024; investment in second production line under evaluation − Replacement of multiple production lines in core with higher effic
Slide 82: Extend dividend commitment to our shareholders
Extend dividend commitment to our shareholders IPO target:~50–60% of adjusted net profit Reiterate target:50-60% of normalized net profit Our commitments 34 ▹Provide competitive returns to our shareholders in the form of dividends and increase in the share price over time − Dividend commitment remai
Slide 83: Solid financial position supporting our plans and ambitions
Solid financial position supporting our plans and ambitions IPO target:~2.0x net debt/adjusted EBITDA Reiterate target: ~2.0x net debt/adjusted EBITDA Our commitments: Net debt (EURm) Leverage ratio 450 4,5x ▹Maintain investment grade balance sheet in 392 Mid-term leverage ratio target 400 4,0x line
Slide 84: Balanced bond portfolio with low refinancing risk
Balanced bond portfolio with low refinancing risk Highlights: Bond maturity profile, average debt maturity of ~4.5 years ▹Good access to capital market supported by: 108 − BBB-rating from Nordic Credit Rating and − Green Bond Framework with “Dark Green Shading” from S&P Global 65 − Books >2.5x overs
Slide 85: Our mid-term targets for the next 3-5 years
People (2030) Safety <3.2 TRI frequency per 1m hours worked Planet (2030) Our mid-term C02 -25% (SBTi – absolute Scope 3) targets for the Recyclability 100% next 3-5 years of cartons designed for recycling Profit (3-5 years) Revenue 4-6% organic growth p.a. EBITDA 15-17% adjusted EBITDA margin Divid
Slide 86: Key takeaways
Key takeaways Thomas Körmendi, CEO Introducing a world leader Market drivers shaping Repackaging tomorrow Realize global growth Strengthen Leverage plastic Financials and Q&A session in sustainable packaging future priorities leadership in core replacement shift mid-term targets 86
Slide 87: A sustainability frontrunner, powered by innovation
Key investment highlights A sustainability frontrunner, powered by innovation 1| A global market player with leading positions in fresh liquid carton packaging and a resilient business model 2| Attractive exposure to global megatrends in growing end-markets, increased sustainability awareness and mo
Slide 88: Refocusing priorities to accelerate profitable growth
Refocusing priorities to accelerate profitable growth A strategy focused on creating change: #1 A sustainability frontrunner, offering market leading ~2 By 2030; above market revenue growth with 3 Realize global growth Strengthen position technology in fiber- EURbn improved EBITDA strategic leadersh
Slide 89: Q&A
@ ELOPAK Q&A
Slide 90: Appendix
@ ELOPAK Appendix
Slide 91: Revised dividend policy
Elopak is committed to provide its shareholders with competitive returns compared to similar companies in the form of dividends and increase in the share price over time. The Board of Directors aims to distribute an annual ordinary dividend per share corresponding to 50-60% of the Group’s normalized
Slide 92: Elopak in the value chain
Elopak in the value chain Elopak in the value chain Key terms in the Market insights packaging industry 92
Slide 93: Elopak in the value chain
@ ELOPAK he Raw materials Board production Carton production Filling Retail Elopak in the value chain Forrest grows back New paper products Recycling Consumer Aa 2 93
Slide 94: Elopak's product portfolio covers integrated filling and packaging solutions
Elopak’s product portfolio covers integrated filling and packaging solutions for fresh and aseptic applications Overview of portfolio Fresh Aseptic Blank-fed Blank-fed Roll-fed Filling machines Non-system Non-system Cartons System System Closures After- market Own Commercial partnerships with Own po
Slide 95: Key terms in the packaging industry
Key terms in the packaging industry Elopak in the value chain Key terms in the Market insights packaging industry 95
Slide 96: Fresh vs. Aseptic carton packaging material and use cases
Fresh vs. Aseptic carton packaging material and use cases Fresh packaging applications have short expiry dates and require refrigeration, whereas aseptic provides products with longer shelf-life Fresh Aseptic For aseptic applications, thermally sterilized liquid products are packaged into Descriptio
Slide 97: Fresh vs. Aseptic carton packaging material and use cases
Fresh vs. Aseptic carton packaging material and use cases Fresh packaging applications have short expiry dates and require refrigeration, whereas aseptic provides products with longer shelf-life Fresh Aseptic Packaging Standard for short shelf life: Long shelf life of aseptic − Cardboard provides st
Slide 98: Two distinct filling technologies exist for cartons
Two distinct filling technologies exist for cartons Overview of filling machine technologies Roll-fed system Blank-fed system Description − In a roll-fed system the filling machine is fed with − In a blank-fed system the filling machine is fed with packaging material in the form of reels individual
Slide 99: System and non-system sales
System and non-system sales The business model within carton can be divided into non-system and system sales as a combination of machine and consumables offering System sales Non-system sales Description − Supply of equipment in combination with material or supply of − Supply of carton consumables (
Slide 100: Market insights
Market insights Elopak in the value chain Key terms in the Market insights packaging industry 100
Slide 101: Overview of liquid carton market per region
Overview of liquid carton market per region Europe North America MENA India Historical Forecast Historical Forecast Historical Forecast 2019-'23 2023-'27E 2019-'23 2023-'27E 2019-'23 2023-'27E -1.8% +0.6% +1.2% Fresh 7.3 6.9 6.8 -1 to 1% 7.9 8.2 8.1 -1 to 1% 0 to 2% n/a [bn liters] CAGR CAGR 1.2 1.2
Slide 102: Volume split total beverage market per region
Volume split total beverage market per region Billion liters (2023) Europe North America MENA India 47 34 2 32 3 11 3 45 1 17 15 2 11 20 8 2 8 2 11 5 3 2 2 1 1 5 2 4 0 1 0 1 2 2 2 1 Dairy Plant based Juice Dairy Plant based Juice Dairy Plant based Juice Dairy Plant based Juice Board Carton Glass bot
Slide 103: Consumption of beverage cartons by type in key geographies, 2023
Consumption of beverage cartons by type in key geographies, 2023 Southern Europe Northern Europe Central Europe Fresh Fresh Aseptic 25% Fresh Aseptic 77% 93% Aseptic The prevalence of fresh and aseptic varies across regions, driven by living standards, logistics, and consumer perception Americas MEN
Slide 104: Description of key applications for beverage carton packaging
Description of key applications for beverage carton packaging, global view Dairy Juice Plant-based drinks Other Fresh milk – regular drinking Juice – includes all types of juice: Plant-based – includes dairy-free Coffee and tea drinks – drinks milk, including both preserved fruit juices, nectars and
Slide 105: Plastic replacement shift can unlock a large market opportunity
Plastic replacement shift can unlock a large market opportunity in the gable top carton and adjacent segments Plastic replacement Total flexible, semi-rigid and potential in 2030 plastic bottle market (EURbn) 105 EURbn 15% plastic replacement potential long-term 13-17 EURbn Gable top carton: Non-car
Slide 106: Definitions of liquid carton market per region
Definitions and descriptions of liquid carton market per region Europe North America MENA India The forecasts are built on analysis and interviews with The forecasts are built on analysis and interviews The forecasts are built on analysis and interviews The forecasts are built on analysis and interv
Slide 107: Visit us at Elopak.com
Visit us at Elopak.com