Loews Corporation · NYSE:L
Loews — Altium Packaging — FY2022 Earnings Presentation
15 slides from Loews's earnings presentation, Mar 31, 2023
Slide 1: FY2022 4th Quarter Review
FY2022 4th Quarter Review March 31, 2023
Slide 2: Notices & Disclaimer
Notices & Disclaimer • Forward-Looking Statements. The statements made in the course of this presentation and/or contained in the presentation materials may include statements that relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical ev
Slide 3: FY2022 Overview
FY2022 Overview • Strong year in overall business performance • Margin recovery from implementation of inflation offsetting actions • Strong outcomes on contract renewals and progress on new business awards • Successful year of highly strategic acquisitions • Despite late year demand headwinds, Envi
Slide 4: Altium Packaging Overview
Altium Packaging Overview • Specialty Chemical A leading North American manufacturer • Household Chemical of rigid plastic packaging • Industrial Chemical • Automotive Headquartered in Atlanta, GA Packaging • Personal Care 77 North American • Food & Nutrition manufacturing facilities(1) • Water Appr
Slide 5: 2022 Performance Against Strategy
2022 Performance Against Strategy STRATEGY – To drive performance to Goals Accelerate Leverage Continuous Develop Solutions Selectively Develop a Organic Growth Improvement to That Meet Customers’ Acquire for Scale Diverse Team Through Safely Deliver Needs for Improved and to Expand Aligned with our
Slide 6: Building Commercial Momentum
Building Commercial Momentum ➢ Successful year for contract renewals ➢ Significant pricing actions completed during year to offset inflation impact ➢ New business awards trended in positive direction during the year with robust win rate in the second half of 2022 ➢ Strong momentum heading into 2023
Slide 7: Significant Impact from Strategic Acquisitions
Significant Impact from Strategic Acquisitions • Plastic Industries and Andersen Plastics acquisitions completed in August 2022 • Synergy capture on track to meet or exceed in all areas – Leveraging procurement scale to drive cost reduction across the new platform – Top graded talent in multiple are
Slide 8: Envision Had Another Strong Year
Envision Had Another Strong Year ➢ Envision closed our second-best financial performance year despite soft industry demand later in 2022 ➢ Product mix continues to shift increasingly more to unique, differentiated products driving better, more sustainable profitability ➢ EcoPrime® capacity expansion
Slide 9: 4Q 2022 Results
4Q 2022 Results 4Q 2022 Rigid Packaging COR(1) 4Q 2022 Proforma Adj EBITDA Actual vs Prior Year vs Prior Year ($ millions) ($ millions) $182 $52 $139 $33 9.0% 15.1% 4Q 21 4Q 22 4Q 21(2)(3) 4Q 22(3) Estimated temporary resin lag impact = Normalized proforma margin percentages = 1. Core Operating Reve
Slide 10: December 2022 Full Year Results
December 2022 Full Year Results FY 2022 Rigid Packaging COR(1) FY 2022 Proforma Adj EBITDA Actual vs Prior Year vs Prior Year ($ millions) ($ millions) $663 $249 $579 $246 $184 $160 14.8% 17.1% FY 2021 FY 2022 FY 2021(2)(3) FY 2022 (3) Estimated temporary resin lag and Feb’21 winter storm impact = N
Slide 11: Summary Financial Performance
Summary Financial Performance PF Rigid Packaging COR(1)(2) PF Adjusted EBITDA(1) ($M) ($M) $738 $249 $215 $593 $196 $579 $528 $157 $163 $160 $445 $399 $411 $131 $374 $114 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020(3) 2021(3) 2022 (3) PF Capex(4) Free Cash Flow(5) ($M) ($M)
Slide 12: Balance Sheet as of 12/31/2022
Balance Sheet as of 12/31/2022 (in '000's) APKG LLC December 31 December 31 2022 2021 (Audited) (Audited) ASSETS CURRENT ASSETS: CASH $ 11,132 $ 2,205 ACCOUNTS RECEIVABLE, NET 183,702 158,933 INVENTORIES 106,698 98,262 OTHER CURRENT ASSETS 25,465 22,723 TOTAL CURRENT ASSETS 326,997 282,123 PROPERTY
Slide 13: Appendix
Altium Packaging APPENDIX
Slide 14: 4Q 2022 Financial Performance Summary
4Q 2022 Financial Performance Summary Performance continued to improve in 4Q 2022 with resin lag normalized EBITDA in the last three quarters of 2022 all improving on a year-over-year basis 4Q 2022 performance improved driven by margin improvements including continued pricing Overview initiative
Slide 15: Historical Adjusted EBITDA Reconciliation
Historical Adjusted EBITDA Reconciliation 2016 – 2022 EBITDA Reconciliation Commentary Plant Closure Costs and Related Charges: Completed two plant ($ milllions) 2016 2017 2018 2019 2020 2021 2022 1 consolidations in 2018 and one in 2019, and the closure of the accounting office in 2020 Net Income (