Graphic Packaging Holding Company · NYSE:GPK

Graphic Packaging — Q3 2024 Earnings Presentation

18 slides from Graphic Packaging's earnings presentation, Oct 29, 2024

  1. Slide 1: Third Quarter 2024 Earnings

    Third Quarter 2024 Earnings October 29, 2024 © 2024 Graphic Packaging Holding Company

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Any statements of the Company’s expectations in these slides, including, but not limited to, statements regarding 2024 Innovation Sales Growth, second- half 2024 volume/mix growth range, Adjusted EBITDA and Adjusted

  3. Slide 3: Third Quarter 2024 Highlights

    Third Quarter 2024 Highlights Strategic Updates  Waco coated recycled paperboard investment on schedule; hiring commenced; on track for Q4 2025 startup  Packaging network investments expanding capabilities and driving productivity  Virtual Power Purchase Agreement advances commitment to reduce gr

  4. Slide 4: Products in the hands of tens of millions of consumers multiple times a day

    Graphic Packaging’s products are in the hands of tens of millions of consumers multiple times a day Food Beverage Foodservice Household Health & Beauty 39% 22% 22% 13% 4% 4 Note: Percentages represent 2023 Sales Mix

  5. Slide 5: Consumer Packaging Sales by Market

    Consumer Packaging Sales by Market Incremental improvement in Food, Household, and Health & Beauty 2022 FY 2023 FY 2024 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Food Beverage Foodservice Household Health & Beauty Total 5 Note: YoY unadjusted; excludes Russia.

  6. Slide 6: Seasonality, Experience, and Expectations

    Seasonality, Experience, and Expectations Typical Third Quarter 2024 Experience Q1 Q2 Q3 Q4 Seasonality Food  Pivot to positive volume growth Beverage  Higher promotional activity Foodservice  Private label outpacing branded growth Household  Pricing similar to Second Quarter Health & Beauty Tot

  7. Slide 7: Customer Focus on Innovation Remains High

    Customer Focus on Innovation Remains High Addressable Market Opportunity $15 Billion $5.0B $4.0B $1.5B $2.5B $2.0B Trays & Bowls Cups & Containers Multi-Packs Paperboard Canisters Strength Packaging 7

  8. Slide 8: Commercializing Innovation: Cups and Containers

    Commercializing Innovation: Cups and Containers OLD CONTAINER INNOVATION ADDRESSABLE OPPORTUNITY (United States) McDonald’s McFlurry and Mini McFlurry paperboard cups with ✚ $4.0B cup & container opportunity built-in, four-flap lid reduces ✚ Primarily plastic/foam replacement plastic use and support

  9. Slide 9: Global Leader in Sustainable Consumer Packaging

    Global Leader in Sustainable Consumer Packaging Innovation Culture Planet Results Build the leading Enable a safe, inclusive, Steadily and measurably Consistently execute for sustainability-focused customer-focused improve the environmental customers, shareholders consumer packaging culture footprin

  10. Slide 10: Third Quarter 2024 Financials

    Third Quarter 2024 Financials Sales  Packaging sales ($35M), or (1.5%) ($M excl EPS) Q3’24 Q3’23 ∆ YoY  Volume/Mix up 1%  Price down (2%) Net Sales $2,216 $2,349 -6%  Impact of Augusta divestiture and related bleached paperboard sales ($109M) YoY, or (5%) Net Income $165 $170 -$5  Other M&A $9M

  11. Slide 11: Delivering consistent results across a wide range of market conditions

    Delivering consistent results across a wide range of market conditions Strong margin performance despite recent volume weakness Packaging Volume1 Adj EBITDA Margin 7% Customer Destocking Consumer Affordability Customer Destocking Consumer Affordability 21% 5% 3% 19% * * 1% -1% -3% -5% -7% Q1'23 Q2'2

  12. Slide 12: Operations and Capital Investment

    Operations and Capital Investment Paperboard Manufacturing Facilities  Strong overall performance despite weather and power disruptions  No material impact from Hurricanes Helene & Milton Packaging Operations  No significant weather-related packaging plant or customer disruptions  New Heidelberg

  13. Slide 13: Guidance & Commentary

    Guidance & Commentary 2024:  Second half volume/mix growth range revised to 1% - 2%  Adjusted EBITDA range revised to $1,680M - $1,730M1  Impacted by weather & power disruptions; volume growth expectations; and unplanned Q4 digester maintenance  Adjusted EBITDA margin in 19% - 19.5% range  Adju

  14. Slide 14: Vision 2030 Base Financial Model and Capital Allocation Priorities

    Vision 2030 Base Financial Model and Capital Allocation Priorities Base Model: Annual Sales Annual Adj Annual Adj Normalized Capex Growth EBITDA Growth EPS Growth (% of sales) Low-Single Digits Mid-Single Digits High-Single Digits ~5% Base1: $8.8B Base1: $1.7B Base1: $2.52 After 2025 Capital Priorit

  15. Slide 15: Significant Cash Flow to Deploy for Value Creation

    Significant Cash Flow to Deploy for Value Creation ~$5B+ Cash Flow (~$17/share) 2024-2030 Vision ~$2.5B Cash Flow (~$8/share) 2030 2024-2027 2029 2028 ~$1B Cash Flow ~$1B Cash Flow 2027 2nd incremental 2026 $80M Waco Incremental EBITDA 2025 $80M Waco ~$900M to ~$1B EBITDA Cash Flow CapEx Cycle 2024

  16. Slide 16: Appendix

    Appendix 16 16 © 2024 Graphic Packaging International, LLC.

  17. Slide 17: Supplemental Guidance Information

    Supplemental Guidance Information $ in millions 2024 Capital Spending ~$1,100 Interest Expense ~$235 Cash Interest ~$220 Cash Taxes, Working Capital, Pension ~$300 Effective Tax Rate ~25% Depreciation & Amortization ~$4501 Estimated Year-end Net Leverage <3.0x 17 1. Excludes accelerated depreciation

  18. Slide 18: Graphic Packaging Holding Company

    ZZ raphic Packaging HOLDING COMPANY

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