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Inspired Packaging. A World of Difference.
Investor PresentationNovember 2020
2
FORWARD LOOKING STATEMENTS
©2020 Graphic Packaging International
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Any statements of the Company’s expectations in these slides, including but not limited to expectations regarding 2020 Adjusted EBITDA and cashflow
(including expectations for certain components thereof), timing and commercialization of PaperSealTM, reductions in costs due to CRB mill consolidation, the
cost impact of mill market and maintenance downtime, pension expense, depreciation and amortization, pension amortization, effective tax rate, and net
leverage, constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently
available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present
expectations. These risks and uncertainties include, but are not limited to, the effects of the COVID-19 pandemic on the Company’s operations and business,
inflation of and volatility in raw material and energy costs, cutbacks in consumer spending that reduce demand for the Company’s products, continuing
pressure for lower cost products, the Company’s ability to implement its business strategies, including productivity initiatives, cost reduction plans, and
integration activities, as well as currency movements and other risks of conducting business internationally, and the impact of regulatory and litigation matters,
including the continued availability of the Company’s net operating loss offset to taxable income, and those that impact the Company’s ability to protect and
use its intellectual property. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which
they are made and the Company undertakes no obligation to update such statements except as required by law. Additional information regarding these and
other risks is contained in the Company's periodic filings with the SEC.
NON-GAAP FINANCIAL MEASURES
This presentation includes certain financial measures that exclude or adjust for charges or income associated with business combinations, facility shutdowns,
extended mill outages, sales of assets and other special charges or income. The Company’s management believes that the presentation of these financial
measures provides useful information to investors because these measures are regularly used by management in assessing the Company’s performance.
These financial measures are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”) and should be
considered in addition to results prepared in accordance with GAAP, but should not be considered substitutes for or superior to GAAP results. In addition,
these non-GAAP financial measures may not be comparable to similarly-titled measures utilized by other companies, since such other companies may not
calculate such measure in the same manner as we do. A reconciliation of these measures to the most relevant GAAP measure is available in our latest
earnings press release which can be found in the Investors section on the Graphic Packaging website at www.graphicpkg.com.
INVESTMENT CASE AND COMPANY BACKGROUND
©2020 Graphic Packaging International
GRAPHIC PACKAGING: LONG-TERM INVESTMENT CASE
• REDEFINING INDUSTRY LEADERSHIP WITH VISION 2025
• CAPTURING SUSTAINABILITY SUPPORTED ORGANIC GROWTH
• CLEAR PATH TO DELIVER PRODUCTIVITY DRIVEN MARGIN IMPROVEMENT
• STRONG FINANCIAL FLEXIBLITY TO ACHIEVE VISION 2025
• BALANCED CAPITAL ALLOCATION MAXIMIZING LONG-TERM STOCKHOLDER RETURN
4©2020 Graphic Packaging International
5
FOOD, BEVERAGE, FOODSERVICE & CONSUMER PRODUCTS PAPERBOARD PACKAGING LEADER
$6.2B2019 SALES
87% 11% 2%Americas Europe ROW
8 75 3.8MPaperboard Mills Converting
Plants
Tons
Produced
MARKETS
Food
Beverage
Foodservice
Other Consumer
37%
20%
23%
20%
©2020 Graphic Packaging International
6
KEY CUSTOMERS ACROSS FOOD, BEVERAGE, FOODSERVICE & CONSUMER PRODUCTS MARKETS
©2020 Graphic Packaging International
37%of all folding cartons
in NorthAmerica
30%
SUSTAINED MARKET LEADERSHIP
#2 SBS Producer
22%5.4M ton U.S. market
#1 CUK Producer
58%2.8M ton U.S. market
#1 CRB Producer
52%1.9M ton U.S. market
of all paper cups in the U.S.
Source: PPC, AF&PA, RISI, GPI estimates
7©2020 Graphic Packaging International
POWERFUL, VERTICALLY INTEGRATED BUSINESS MODEL
PRODUCTS WE USE EVERYDAYHIGHLY EFFICIENT CONVERTING &PACKAGING MACHINERY
70% vertical integration results in best-in-class EBITDA margins; significant opportunities to drive integration rates higher
LOW COST, HIGH QUALITYPAPERBOARD MILLS
8©2020 Graphic Packaging International
2016-2018 PRICE / COMMODITY COST DISCLOCATION FULLY RECOVERED
100-200 BPS / YEAR NET ORGANICREVENUE GROWTH MATERIALIZING
POISED FOR SALES, VOLUME, MARGIN & CASH GENERATION GROWTH
From 9 to 6 months
PRICE LAGS REDUCED
9©2020 Graphic Packaging International
-$8
$141
$124
-$2
2016-2018 2019-Sep 2020 YTD
Grow converting volume
VERTICALLY INTEGRATED BUSINESS MODEL OFFERS TREMENDOUS OPERATING LEVERAGE
• Europe
• Asia/Australia/New Zealand
• NorthAmerica
• Sustainability supported organic
growth
• Targeted share gains/acquisitions
• Increase integration across all
paperboard grades
• Conversions into CRB, CUK, SBS to
optimize mix
• Add incremental capacity for growth
(when clearly required)
• Reduce costs
• Expand product offering to support
customer requirementsOutsource to support
additional demand
Fill the millsInvest in the mills
Model
Drives EBITDA
& Cash Flow
10©2020 Graphic Packaging International
BALANCED APPROACH TO CAPITAL ALLOCATIONFROM 2015 TO 2019, $3.4B IN ADJ(1) OPERATING CASH FLOW
NET DEBT LEVERAGE RATIOCommitted to long-term range 2.5x–3.0x range
STOCKHOLDER RETURNReturned significant value to stockholders
~19%Reduction in
share count
$511MDividends
$785MShare
repurchases
$244$295
$260
CAPITAL INVESTMENTS & PRODUCTIVITY(2)
Invested $1.5B in capital
~6% of sales driving $355M in productivity
$395$353
$74 $73 $57 $77 $74
TARGETED ACQUISITIONSAcquired 15 businesses for ~$1Bat compelling post synergy valuations
Combined with IP’s Consumer Packaging business in 2018 adding ~$200M in ADJ EBITDA and ~$75Msynergies
Multiples
(Pre/Post)
ADJ EBITDA
($M)
~8.5X
~$100
~5.6X
~$190
3.5%Current weighted
avg. interest rate
$ 1.6BLiquidity
3.1-3.3xEst Year End 2020
2015 2016 2017 2018 2019(2) 2018 productivity includes $35m in synergies; 2019 productivity excludes $36M of incentives & pension
(3) Includes $23M for CRB consolidation
11
(5) (5)
(1) Operating cash flow in 2018 and 2019 adjusted to recognize net cash from receivables program
(4) Includes distributions to GPIP partner
(5) Share repurchases through Sep 30, 2020
(3)
(4)
©2020 Graphic Packaging International
ROBUST STOCKHOLDER RETURN COMMITMENT
• $500M Partnership Redemption in 2020
• $247M Shares Repurchased Sep 2020 YTD at $13.30/share
• Since February 2015 repurchased $785 million of shares, representing 19% gross reduction from shares outstanding at program inception
SHARE REPURCHASE SCHEDULE
TRACK RECORD OF STOCKHOLDER RETURN
SHARE REPURCHASE HISTORY $(M)
US $(M) $ Per ShareNumber of
Shares (M)
% of GPK
Shares At
Inception(1)
Since Jan 2018
(1Q’18 – 3Q’20)$495 $12.59 39 12%
Since Inception
(1Q’15 – 3Q’20)$785 $12.74 62 19%
(1) Represents gross shares repurchased since inception
©2020 Graphic Packaging International 12
VISION 2025 / PIVOT TO SUSTAINABILITY-SUPPORTED GROWTH
©2020 Graphic Packaging International
VISION 2025
Partners
GROW WITH THE BEST CUSTOMERS IN THE BESTMARKETS
Profit
GENERATE SUPERIOR RETURNS
Planet
LEVERAGE SUSTAINABILITY PROFILE & REDUCE ENVIRONMENTAL IMPACT
People
ENGAGE EMPLOYEES IN A HIGH-PERFORMANCE CULTURE
©2020 Graphic Packaging International 14
VISION 2025
PartnersGrow with the best customers in the best markets
#1 paperboard market
share in North America&
Europe
$400M – $700M net new
product sales 2020-2025
included in organic growth
100 – 200 bps/year
sustainability supported,
organic growth
Strategic,
high return M&A
$400M – $500M in
productivity 2020-2025
to drive margin growth
15©2020 Graphic Packaging International
VISION 2025
ProfitGenerate superior returns
2019 Vision 2025
Paperboard Integration 68% 80 – 90%
Sales $6.2B ~$10B
ADJ EBITDA Margins 16.7% 18 – 20%
ROIC 8% 10 – 12%
ADJ EPS $0.87 $2.00+
Normalized Capex(% Sales) 5% 5%
16©2020 Graphic Packaging International
VISION 2025
Reduce water
usage by 15%
Reduce LDPE usage
by 40%
Reduce green house
gases by 15%
PlanetLeverage industry leading sustainability profile, reducing impact on the environment
4
Reduce energy
consumption by 15%
GPI products
100% recyclable
17©2020 Graphic Packaging International
VISION 2025
PeopleEngage employees in a high-performance culture
Top quartile
engagement scores
Reduce LTIR from
0.3 to 0.2 (Safety)
GPI University
30 hours of trainingper
employee, per year
Attract and retain the right
talent
Play on a winning team
18©2020 Graphic Packaging International
SUSTAINABILITY HAS BECOME A GLOBAL PHENOMENON & MANDATE WHAT BRANDS ARE SAYING….
19©2020 Graphic Packaging International
“Tackling plastic waste is one of my top priorities and I take this challenge personally. We are doing our part to address the issue head on by reducing, recycling and reinventing our packaging.”
—Ramon Laguarta, CEO PepsiCo
Soft drink giants Coca-Cola & PepsiCo have announced they are cutting ties with a trade association representing the plastic industry over concerns their memberships contradict a commitment to reducing waste.
—Newsweek, July 2019
Starbucks is aiming to double therecycled content in [their] cup by2022. It’s also testing more than 12greener technologies for paper cupliners.
—CNN, February 2019
Pepsi has committed to using only recyclable, compostable or biodegradable packaging by 2025.
—CNN, July 2019
In Germany, Aldi scrapped single-use bags. Aligned to its pledge to cut down plastic packaging by 25% by 2024, the new compostable bags are made of biodegradable material.
—Forbes, July 2019
Source: Goldman Sachs
The Kellogg Company is expanding its global sustainability commitments to include a goal of working towards 100% reusable, recyclable or compostable packaging by the end of 2025.
—Kellogg Company PR, October 2018
[McDonald’s] wants to have 100% of its customer packaging come from renewable, recycled, or certified sources and have recycling available in all its restaurants [by 2025].
—USA Today, January 2018
GPI SUSTAINABILITY INITIATIVES SUPPORT CUSTOMER ASPIRATIONS
Source: Goldman Sachs; Molson Coors Sustainability Report 2019
Renewable / Recyclable Sources
100% by2025
PBP Recyclable / Reusable / Compostable
100% by2025
PBP Recycled Content
17% by2025
Recyclable / Reusable Materials
100% by 2025
Elimination of 10 ProblematicPlastics
100% by2024
Recyclable / Reusable / Compostable
100% by2025
Recycled Content
25% by2025
Reusable / Recyclable / Compostable / Biodegradable
100% by2025
Recycled Content
30% by202550% by 2030
Recyclable Packaging
100% by 2030Recycled Content
Recyclable Products
100% by 2025Water Usage
-15%
Energy
-15%
20©2020 Graphic Packaging International
Green house gases
-15%
LDPE usage
-40%
Microwaveable Technologies
Paperboard Bowls and Trays
STRENGTH PACKAGINGPLASTIC SUBSTITUTION
EXPANDING GROWTH PLATFORMS DRIVING ORGANIC SALES
Foodservice Cups and Cartons
Beverage Multi-packs
Food Trays(non cooking)
PACKAGING DESIGN ANDPREMIUMIZATION
PLATFORM ENABLERS
COOKING SOLUTIONS
Club Stores and Mass Retailers
E-commerce
©2020 Graphic Packaging International 21
Foam Cups
$1B
Plastic Cups
$1B
Foam Containers
$1B
Beverage Packaging
$1B
CPET Trays, Bowls
$500M
Stand-up Pouches
$250M
LARGE $5 BILLION ADDRESSABLE MARKET ESTIMATEDIN NORTH AMERICA AND EUROPE FOR PAPERBOARD CONVERSIONS
CURRENT MARKET OFFERING
22©2020 Graphic Packaging International
KeelClipTM
• Introduced in 2019
• Offers brands and retailers sustainability advantages and merchandising benefits compared to other packaging options
• Solution for full range of cans including sleek and slim with high-speed multipack machinery
• Commercialized in Europe and Scandinavia; expanding further into additional regions in Eastern and Western Europe
• Beverage machinery placements up ~40% in 2020 versus normal baseline year
DEMAND FOR SUSTAINABLE PACKAGING CONTINUES NEW MARKETS / NEW PRODUCT DEVELOPMENT
©2020 Graphic Packaging International 23
DEMAND FOR SUSTAINABLE PACKAGING CONTINUESNEW MARKETS / NEW PRODUCT DEVELOPMENT
PaperSeal®
• Launched in 2020
• Offers brands and retailers a new barrier-lined paperboard alternative, increasing food tray recyclability
• Customer programs underway with positive results
• Commercialized in a number ofEuropean countries and Australia; expect to be commercialized in North America in 2021
• Large $1B total market opportunity
• Range of applications including fresh meat, poultry, fish, cheeses and salads
©2020 Graphic Packaging International 24
CONTINUED INVESTMENT BACK INTO THE BUSINESS
©2020 Graphic Packaging International
Project Date
West Monroe #7 Curtain Coater Q3 2020
West Monroe Recovery Boiler Q3 2020
Texarkana #3 Headbox Q3 2020
2 Greif Converting Facilities Closure Q3 2020
White Pigeon CRB Mill Closure Q2 2020
Corrugated Machine Closure Q2 2020
Monroe Converting Facility at Run-Rate Q1 2020
Macon Curtain Coater #1 Q4 2019
Texarkana Recovery Boiler Q3 2019
Augusta Recovery Boiler Q4 2018
SUCCESSFULLY EXECUTING AND COMPLETING MULTIPLE STRATEGIC
PROJECTS
Completed In-Process
Project Date
Sneek, Netherlands Converting Facility Q4 2020
K2 Machine Investment in Kalamazoo Q1 2022
©2020 Graphic Packaging International 26
ONGOING PROJECTS SUPPORT $50-70M IN ANNUALIZED PRODUCTIVITY
SNEEK FACILITY MONROE FACILITY CURTAIN COATERS
• Invested Capital: $25M
• Most productive and flexible folding carton
manufacturing facility in Europe
• Increase sales capacity by $40M to support
conversions from shrink/plastic to paperboard
• Expect ~$10M run-rate EBITDA
• Invested Capital: $180M
• State Of The Art Fully Automated
1.3M ft2 of manufacturing & warehousespace
• Strategically located near West Monroe
paperboard mill to reduce logistics costs
• 400K converting tons per year
• Expect ~$30M run-rate EBITDA
• Invested Capital: ~$115M
• Macon and Kalamazoo investments in place
• West Monroe planned over the next two years
• Significant reduction in Latex and TiO2 usage
• Expect ~$40M run-rate EBITDA
27©2020 Graphic Packaging International
~$70M ~$30MANNUAL FIXEDCOSTS
28©2020 Graphic Packaging International
VARIABLE COSTS
K2 MACHINE INVESTMENT IN KALAMAZOO AND CRB MILL CONSOLIDATION
EXPECTED TO YIELD $100M BENEFIT TO EBITDA
Cost Savings Cost Savings
STRATEGIC AND UNIQUE OPPORTUNITY TO INVEST IN CRB PLATFORM
Kalamazoo, Michigan
• World-class
paperboard
technology
• Best in class
cost structure
• Lowest
ongoing
maintenance
capital
• Lowest basis
weight and caliper
profile in North
America
©2020 Graphic Packaging International 29
• 95% equipment purchase orders issued
• 60% of installation purchase orders issued
• 85% of building steel erected
• Siding and roof work ongoing; expected building to be enclosed November 2020
• No current delays in equipment deliveries or construction due to COVID
• OCC plant and boilers will start operation well ahead of the K2 machine to allow more
focus on the machine start up
• Training of employees is underway in preparation of K2 start up
KALAMAZOO K2 MACHINE INVESTMENT AND CONSOLIDATION PROJECT
PROGRESSING ON PLAN
©2020 Graphic Packaging International 30
UNMATCHED CRB COST STRUCTURE POST INVESTMENT
Source: RISI
GPK Mills
Competitor Mills
CRB MILL CONSOLIDATION REVIEW
GP
K K
ala
mazoo
GP
KE
astA
ngus
GPK $400/ton
Competitors (Avg)
$532/ton
~$130/ton
advantage
Production = ~2M tons
31
Kalamazoo
©2020 Graphic Packaging International
COMPELLING POSITIVE ENVIRONMENTAL IMPACT
32©2020 Graphic Packaging International
*Information based on Legacy GPI / Source: Schneider Electric and GPK Management Estimates
CRB MILL CONSOLIDATION REVIEW
Current Future % Change
Green House Gases(Metric Tons)
497K 400 - 419K - 16% to - 20%
Water Usage(Gallons/Ton)
916 614 - 33%
Purchased Energy(KWH/Ton)
1,901 1,562 - 18%
ANNUAL CRB PROFILE
CURRENT ENVIRONMENT AND FINANCIAL RESULTS
©2020 Graphic Packaging International
• Continued Solid Financial Performance Driven by Net Organic Sales Growth, Acquisitions,
Exceptional Customer Service and Strong Operational Execution
• Agility, Preparedness and Focus on Employee Safety has Resulted in Best-in-Class Customer
Service and Continuity of Supply During Current Challenging COVID-19 Environment
• Pivot to Growth Culture with 3.5% Organic Sales Growth Driven by Customer Conversions to GPK Board Solutions
and Increased Food & Beverage At-Home Consumption
• Continued Progress of our Strategic Priority to Increase Paperboard Integration Rate; Improved 200 Basis Points from
68% in 2019 to 70% 2020 YTD
• Critical Investments and Strategic Actions Remain On Track
o Kalamazoo CRB Investment On Time and On Budget
o White Pigeon CRB Mill Closed & PM1 Containerboard Machine Shut Down
o Matching Supply with Demand (100,000 Annualized Tons of CUK to SBS Folding Carton Grades; 30,000 Tons of
SBS Cupstock Downtime)
• Returned $828 Million to Stakeholders in Share Repurchases, Dividends, Partnership Distributions and Redemptions
SEPTEMBER 2020 YEAR-TO-DATE HIGHLIGHTS
©2020 Graphic Packaging International 34
SEPTEMBER 2020 YEAR-TO-DATE FINANCIAL RESULTS
(US$ M) YTD 2020 YTD 2019 % Chg
Net Sales $4,908 $4,640 +6%
Adj. EBITDA $805 $771 +4%
Adj. EBITDA Margin 16.4% 16.6% -20bps
Adj. EPS $0.83 $0.64 +30%
Global Liquidity $1,557 $1,487 +5%
• Net Sales up 6% y/y
o Net organic sales(1) growth of 3.5% y/y
• Adj. EBITDA +4% y/y
• Adj. EPS +30% y/y
• $1.6B in Global Liquidity
• Integration rate increased 200bps to 70%
(1) Net organic sales = Net sales - open market sales - sales from acquisitions closed within the last 12 months - pricing - FX impact
Adjusted figures and global liquidity represent non-GAAP measures. Please refer to earnings press release for reconciliations to GAAP measures.
EXECUTION & SOLID PERFORMANCE
©2020 Graphic Packaging International 35
SEPTEMBER 2020 YEAR-TO-DATE NET SALES PERFORMANCE
$s in millions
+6%
©2020 Graphic Packaging International 36
SEPTEMBER 2020 YEAR-TO-DATE ADJUSTED EBITDA PERFORMANCE
$s in millions +4%
Net productivity $53.2M
Maintenance/Market Downtime $(36.6M)
©2020 Graphic Packaging International 37
Cash Flow Components
Cap Ex ($~625M)
Interest ($125M – $135M)
Tax ($30M – $40M)
Working Capital $25 – $50M
Pension ($15M – $20M)
EBITDA Components
Price $0M – $20M
Volume $10M – $30M
Commodity Input Costs(1) $10M – $30M
Net Performance $40M – $60M
L&B / Other(2) ($50M – $60M)
FX(3) ($0M – $5M)
(1) Represents input cost deflation
(2) Other primarily includes inflation associated with insurance and property taxes
(3) FX range at current rates
2020 ADJUSTED EBITDA AND CASH FLOW GUIDANCE
Adjusted EBITDA $1,060M - $1,080M Cash Flow $275M - $300M
Significant cash flow generation expected in 2022Cap Ex ($M)
350 ~625
2019 2020 2021
$ $ ~625$
Normalized
~325-$350$
©2020 Graphic Packaging International 38
APPENDIX
©2020 Graphic Packaging International
COMMODITY ANNUAL CONSUMPTION 2019 REVENUE BY CURRENCY
SUPPLEMENTAL INFORMATION
Categories Units
Wood (Million tons)
10
Recycled Fiber (Million tons)
1
Natural Gas (MMBTU)
22
Caustic Soda (000, tons)
40
Starch (Million lbs.)
150
TiO2 (Million lbs.)
25
Polyethylene (Million lbs.)
105
80.7%
2.2%
0.4%
0.8%
2.6%0.4%
2.0%5.6% 4.6% 0.7%
USD AUD NZD BRL CAD
CNY MXN GBP EUR JPY
©2020 Graphic Packaging International 40
©2020 Graphic Packaging International