Slide 1: Fiscal First Quarter 2024 Earnings Conference Call
Fiscal First Quarter 2024 Earnings Conference Call February 29, 2024
Slide 2: Safe Harbor
Safe Harbor February 29, 2024 P.2
Slide 3: Build to Last: Purpose and Strategy in Action
Build to Last: Purpose and Strategy in Action OUR PURPOSE We create packaging solutions for life’s essentials OUR VISION Be the best performing customer service company in the world OUR BUILD TO LAST CREATING DELIVERING PROTECTING ENSURING STRATEGIC THRIVING COMMUNITIES LEGENDARY OUR FUTURE FINANCIA
Slide 4: Build to Last: Growing and Transforming our Product Portfolio
Build to Last: Growing and Transforming our Product Portfolio Progress under Build to Last Small Build a global network of small plastics and Proactively transforming portfolio mix Plastics jerry cans Vertical Growth Objectives ▪ Higher margin, higher free cash conversion Build scale regionally by g
Slide 5: Effectively Navigating Dynamic and Changing Global Markets
Effectively Navigating Dynamic and Changing Global Markets Regional volume performance and current market trends North GIP (-19%) America PPS ( -3%) EMEA +2% ▪ Low level of industrial end market activity for bulk ▪ Lube and petrochemical demand patterns chemicals driven by broad macroeconomic sequen
Slide 6: Fiscal First Quarter 2024 Key Highlights
Fiscal First Quarter 2024 Key Highlights Solid results in Q1 2024 despite continued volatile demand and price/cost environment ▪ Adj. EBITDA1 of $128.0M ▪ Adj. Free Cash Flow1 use of $48.2M ▪ Adj. Class A EPS1 of $1.27/share Continuing to advance our Build to Last strategy while managing short-term
Slide 7: Global Industrial Packaging (GIP) Review
Global Industrial Packaging (GIP) Review FINANCIAL PERFORMANCE ($M) Q1 FY23 Q1 FY24 Net sales $705.8 $686.6 Gross profit $125.3 $135.3 Adjusted EBITDA1 $71.8 $70.9 Adjusted EBITDA % 10.2% 10.3% FQ1 ‘24 TAKEAWAYS ▪ Global volume pressures largely continued but improving in some regions; customers hav
Slide 8: Paper Packaging & Services (PPS) Review
Paper Packaging & Services (PPS) Review FINANCIAL PERFORMANCE ($M) Q1 FY23 Q1 FY24 Net sales $560.2 $514.6 Gross profit $124.2 $84.4 Adjusted EBITDA1 $90.7 $55.5 Adjusted EBITDA % 16.2% 10.8% FQ1 ‘24 TAKEAWAYS ▪ Mixed volume performance at the Mills, with CB strength offset by weaker demand in URB a
Slide 9: FY 2024 Low-End Guidance Update
FY 2024 Low-End Guidance Update FISCAL 2024 LOW-END GUIDANCE KEY LOW-END ASSUMPTIONS Provided Provided Financial outlook ($M) Q4’23 Q1’24 Change ▪ Legacy GIP volumes (excluding M&A) flat year-over-year Adj. EBITDA1 $585m $610m $25m ▪ Marginal uplift in PPS volumes driven primarily by improving deman
Slide 10: Driving Long-Term Value Creation through Build to Last
Driving Long-Term Value Creation through Build to Last Advancing our Growth strategy through organic growth investments and disciplined M&A ▪ Allocated over $1b of capital to portfolio-enhancing acquisitions in FY 20231 ▪ Funding high-impact organic growth projects in our key converting operations ▪
Slide 11: Appendix
Fiscal First Quarter 2024 Earnings Conference Call Appendix February 29, 2024 P.11
Slide 12: Sales Breakdown for Primary Products
Sales Breakdown for Primary Products February 29, 2024 P.12
Slide 13: Build to Last: Ensuring financial strength through disciplined capital allocation
Build to Last: Ensuring financial strength through disciplined capital allocation ▪ Fund critical maintenance and safety capex to protect the Maintenance Maintain a Strong business and ensure continuity of cash generation CAPEX Foundation ~40% ▪ Manage the balance sheet and debt levels appropriately
Slide 14: GAAP to Non-GAAP Reconciliation: Net Income to Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Reconciliation of Net Income to Adjusted EBITDA Non-GAAP measures are intended to supplement and should be read together with our financial results. They should not be considered an alternative or substitute for, and should not be considered superior to, our reported
Slide 15: GAAP to Non-GAAP Reconciliation: Segment Operating Profit to Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Reconciliation of Segment Operating Profit to Adjusted EBITDA Non-GAAP measures are intended to supplement and should be read together with our financial results. They should not be considered an alternative or substitute for, and should not be considered superior to
Slide 16: GAAP to Non-GAAP Reconciliation: Adjusted Free Cash Flow
GAAP to Non-GAAP Reconciliation: Reconciliation of Adjusted Free Cash Flow Non-GAAP measures are intended to supplement and should be read together with our financial results. They should not be considered an alternative or substitute for, and should not be considered superior to, our reported finan
Slide 17: GAAP to Non-GAAP Reconciliation: Net Income and Class A EPS Excluding Adjustments
GAAP to Non-GAAP Reconciliation: Reconciliation of Net Income and Class A Earnings Per Share Excluding Adjustments Non-GAAP measures are intended to supplement and should be read together with our financial results. They should not be considered an alternative or substitute for, and should not be co
Slide 18: GAAP to Non-GAAP Reconciliation: Net Debt
GAAP to Non-GAAP Reconciliation: Reconciliation of Net Debt Non-GAAP measures are intended to supplement and should be read together with our financial results. They should not be considered an alternative or substitute for, and should not be considered superior to, our reported financial results. A
Slide 19: GAAP to Non-GAAP Reconciliation: Compliance Leverage Ratio
GAAP to Non-GAAP Reconciliation: Reconciliation of Compliance Leverage Ratio Non-GAAP measures are intended to supplement and should be read together with our financial results. They should not be considered an alternative or substitute for, and should not be considered superior to, our reported fin
Slide 20: GAAP to Non-GAAP Reconciliation: 2024 Adjusted Free Cash Flow Guidance
GAAP to Non-GAAP Reconciliation: Reconciliation of 2024 Adjusted Free Cash Flow Guidance Non-GAAP measures are intended to supplement and should be read together with our financial results. They should not be considered an alternative or substitute for, and should not be considered superior to, our