Orora Limited · ASX:ORA
Orora — Investor Day (May 2025)
31 slides from Orora's investor day presentation, May 15, 2025
Slide 1: Orora Limited (ORA) – Investor Day 15 May 2025
15 May 2025 ASX Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Orora Limited (ORA) – Investor Day 15 May 2025 Please see attached the ‘Orora Investor Update – 15 May 2025’. The event will be available via webcast from 10.00am on Thursday 15 May at the fol
Slide 2: Investor Update
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Slide 3: Important information
Important information Forward Looking Statements This presentation contains forward looking statements that involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to Orora. Forward look
Slide 4: Orora investor proposition
Orora investor proposition Orora provides investors with defensive growth exposure, a well-invested asset base and strong balance sheet to support ongoing shareholder returns Addressing investor priorities Key metrics / targets Focused value-added >15% Well invested assets to Disciplined approach Ta
Slide 5: Key Topics
Key Topics 1 2 3 Trading update Strategy update Capital allocation and outlook 4
Slide 6: Trading update & outlook
MOUNTAIN Trading update {+ eke & outlook Boi PAVITO SS |
Slide 7: Trading and operational update (January – April)
TRADING UPDATE & OUTLOOK Trading and operational update (January – April) Cans Saverglass Gawler • Stronger 2H25 volumes consistent with • Modest volume growth being offset by • Domestic commercial wine market outlook change in product mix skewed to premium remains structurally challenged wine and c
Slide 8: Saverglass orders and inventory
TRADING UPDATE & OUTLOOK Saverglass orders and inventory Solid increase in orders, albeit change in mix towards standard premium wine since March 2025 Order intake Inventory Customer owned inventory down 50% from peak Mar-24 Jan-25 Mar-25 Jan-23 Mar-23 Jan-24 May-23 May-24 Sep-23 Sep-24 Dec-24 Feb-2
Slide 9: Global glass production network and tariff implications
TRADING STRATEGY UPDATE UPDATE & OUTLOOK Global glass production network and tariff implications Direct sales to the US represent 15% of Saverglass sales, of which 7 percentage points are currently tariff- exempt. Geographically diverse footprint enables Orora to flex location of production Estimate
Slide 10: FY25 guidance
TRADING UPDATE & OUTLOOK FY25 guidance1 Group Saverglass • On an underlying and continuing • Modest volume growth being offset by operations basis, 2H25 EBIT to be product mix skewed more to premium wine broadly in line with 2H24 and champagne • This is before reallocation of corporate • Tariff unce
Slide 11: Strategy Update
2 Strategy Update
Slide 12: Strategic evolution of our portfolio
STRATEGY UPDATE Strategic evolution of our portfolio Portfolio actions have transformed Orora into a focused beverage packaging business, with market-leading positions in cans, premium+ spirits and wine packaging 2019 2023 2024 Sale of Australian Fibre Acquisition of Saverglass Sale of OPS • Sale to
Slide 13: Defensive growth exposure through Cans and Glass
STRATEGY UPDATE Defensive growth exposure through Cans and Glass Cans Saverglass Gawler • • Market size1 ~$1.2bn1 ~$21bn2 ~$700m1 Volume growth ~4 – 6%1 ~3 – 6%1 ~Flat3 Market trends Shift to aluminum Premiumisation Category growth Brand proliferation Lower commercial wine consumption Br
Slide 14: Growth capex in context – Cans
STRATEGY UPDATE Growth capex in context – Cans Cans expansion projects expected to generate >15% return1 with >$50m of additional EBIT (in real terms) post completion of Rocklea. No additional capacity required until after 2030 Key messages Cans expansion projects Spend to date 2H25 FY26 Total • Sig
Slide 15: Project Skywalker (Dandenong) case study
STRATEGY UPDATE Project Skywalker (Dandenong) case study Delivered: Completed on-time and on-budget, with +10% capacity and ~14% return achieved by Year 21 and on track to achieve 15%+ return2 10% Capacity increase Project Skywalker $12m • Strong customer demand resulting in FY24 Cans EBIT growt
Slide 16: Glass network optimisation update – Saverglass
STRATEGY UPDATE Glass network optimisation update – Saverglass Cost management continuing amid softer volume environment. Capacity to support volume recovery with no significant growth capex required in the medium term Sales volume (kt) and utilisation (%)1 Key messages • Customer destocking has bee
Slide 17: Glass network optimisation update – Saverglass
STRATEGY UPDATE Glass network optimisation update – Saverglass Glass network optimisation to reduce emissions, improve margins, while maintaining capacity for growth Year announced 2025 2025 Planned Ghlin rebuild & modernisation Planned Le Havre F4 closure • Consolidation of premium European wine an
Slide 18: Glass network optimisation update – Gawler
STRATEGY UPDATE Glass network optimisation update – Gawler Closure of high-cost production at G1 enables fully utilised two-furnace operation Key messages Gawler sales volume (kt) and utilisation (%)1 • Decision to proceed with G3 rebuild in 2022 was in 100% 99% 96% 90% 81% a different market enviro
Slide 19: Glass network optimisation update – Gawler
STRATEGY UPDATE Glass network optimisation update – Gawler Glass network optimisation in response to declining commercial wine volumes; G1 closure delivers better economic outcome compared to running three furnaces Year announced 2022 2025 G3 rebuild & oxygen plant G1 closure • Capacity required to
Slide 20: Key near-term operational priorities
CONCLUSION STRATEGY UPDATE AND NEAR-TERM PRIORITIES Key near-term operational priorities Cans capacity expansion Saverglass network Gawler network and digital capability optimisation optimisation • Commissioning of second line at • Optimising capacity and driving cost- • Transition to two furnace op
Slide 21: Capital Allocation
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Slide 22: Balanced approach to capital allocation
CAPITAL ALLOCATION Balanced approach to capital allocation Returns-focused and risk-weighted approach to investment and capital management decisions Capital allocation breakdown (since FY15)1 SOURCES USES Operating Capex & other 31% Shareholder returns 32% $2.8bn free cashflow Focus on organic Orora
Slide 23: Key financial priorities
CAPITAL ALLOCATION Key financial priorities Ongoing focus on capital allocation to deliver strong cash realisation, maintain investment grade credit metrics, and maximise shareholder returns Deliver strong operating cash Strict capital allocation / realisation with disciplined investment approach wo
Slide 24: Capital allocation framework
CAPITAL ALLOCATION Capital allocation framework Orora’s capital allocation framework to drive discipline across all capital decisions Key messages Operating cash flow Asset sales / divestments Available capital • Shareholder returns via dividends and buybacks Leverage target 1.5 – 2.5x Commitment to
Slide 25: Long-term base capex
CAPITAL ALLOCATION Long-term base capex Long-term base capex has been reduced to $70 – 95m p.a.1 In addition, Saverglass will invest $15 – 25m p.a. of decarbonisation capex. Post Rocklea, no new capacity investment required until after 2030 Base capex ($m)2 Saverglass rebuild & repair schedule – yea
Slide 26: Focus on cash realisation
CAPITAL ALLOCATION Focus on cash realisation Orora has delivered cash realisation of >80%1,2,3 Cash realisation (%)1,2 and working capital ($m)2 Key messages 294 317 390 555 538 479 • Strong track record of generating underlying operating cash flow and Increase in working capital to support Increase
Slide 27: Balance sheet capacity available for capital management
CAPITAL ALLOCATION Balance sheet capacity available for capital management Entering a stronger FCF period post FY26; strong balance sheet supports ongoing shareholder distributions Group net debt ($m) and leverage (x)1 Balance sheet and shareholder distributions 890 292 453 629 774 1,753 156 • Commi
Slide 28: Conclusion
4 Conclusion Capital Allocation
Slide 29: Concluding remarks
Concluding remarks 1 2 3 Trading update and Strategy update Capital FY25 outlook allocation • Cans volume growth has returned to • Strategic portfolio actions have • Entering stronger FCF period as long term run rates in 2H25 transformed Orora into a focused growth capex projects complete (approxim
Slide 30: Chris Vagg
Chris Vagg General Manager, Investor Relations +61 409 406 128 chris.vagg@ororagroup.com ASX: ORA
Slide 31: FY25 outlook compared to previous guidance
APPENDIX FY25 outlook compared to previous guidance Prior guidance Current guidance • Second half FY25 EBIT to be broadly in • On an underlying and continuing operations basis, 2H25 EBIT to be broadly in line line with 2H24 (continuing operations) with 2H24 (before reallocation of corporate overhead