Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
SEIZING OPPORTUNITIESSIG CAPITAL MARKETS DAY
STRICTLY CONFIDENTIAL
Estavayer-le-Lac, 12 November 2019
DISCLAIMER
SIG COMBIBLOC - CMD1 NOVEMBER 19
The information contained in this presentation is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorized to access or use any such information. This presentation may contain “forward-looking statements” that are based on our current expectations, assumptions, estimates and projections about us and our industry. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “may”, “will”, “should”, “continue”, “believe”, “anticipate”, “expect”, “estimate”, “intend”, “project”, “plan”, “will likely continue”, “will likely result”, or words or phrases with similar meaning. Undue reliance should not be placed on such statements because, by their nature, forward-looking statements involve risks and uncertainties, including, without limitation, economic, competitive, governmental and technological factors outside of the control of SIG Combibloc Group AG (“SIG” or the “Group”), that may cause SIG’s business, strategy or actual results to differ materially from the forward-looking statements (or from past results). For any factors that could cause actual results to differ materially from the forward-looking statements contained in this presentation, please see our offering memorandum for the IPO. Nothing contained in this presentation is or should be relied upon as a promise or representation as to the future. It is up to the recipient of the presentation to make its own assessment as to the validity of such forward-looking statements and assumptions.
The information contained in the presentation does not purport to be comprehensive. SIG undertakes no obligation to publicly update or revise any information contained herein or forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. It should further be noted, that past performance is not a guide to future performance.Please also note that interim results are not necessarily indicative of the full-year results. Persons requiring advice should consult an independent adviser. Some financial information in this presentation has been rounded and, as a result, the figures shown as totals in this presentation may vary slightly from the exact arithmetic aggregation of the figures that precede them. While we are making great efforts to include accurate and up-to-date information, we make no representations or warranties, expressed or implied, and no reliance may be placed by any person as to the accuracy and completeness of the information provided in this presentation and we disclaim any liability for the use of it. Neither SIG nor any of its directors, officers, employees, agents, affiliates or advisers is under an obligation to update, correct or keep current the information contained in this presentation to which it relates or to provide
the recipient of it with access to any additional information that may arise in connection with it and any opinions expressed in this presentation are subject to change.
The presentation may not be reproduced, published or transmitted, in whole or in part, directly or indirectly, to any person (whether within or outside such person’s organization or firm) other than its intended recipients. The attached information is not an offer to sell or a solicitation of an offer to purchase any security in the United States or elsewhere and shall not constitute an offer, solicitation or sale any securities of SIG in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or investment decision. No securities may be offered or sold within the United States or to U.S. persons absent registration or an applicable exemption from registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from any issuer of such securities and that will contain detailed information about us. Any failure to comply with the restrictions set out in this paragraph may constitute a violation of the securities laws of any such jurisdiction.
This presentation is not an offering circular within the meaning of article 652a of the Swiss Code of Obligations, nor is it a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange or a prospectus under any other applicable laws.
In this presentation, we utilise certain alternative performance measures, including EBITDA, adjusted EBITDA, core revenue and adjusted net income that in each case are not recognized under International Financial Reporting Standards (“IFRS”). These non-IFRS measures are presented as we believe that they and similar measures are widely used in the markets in which we operate as a means of evaluating a company’s operating performance and financing structure. They may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles, nor should they be considered as substitutes for the information contained in the financial statements included in this presentation.
EBITDA, a measure used by our management to measure operating performance, is defined as profit (loss) before net finance expense, income tax expense, depreciation of property, plant and equipment and right-of-use assets, and amortisation of intangible assets.
Adjusted EBITDA is defined as EBITDA adjusted to exclude certain non-cash transactions and items of a significant or unusual nature including, but not limited to, transaction- and acquisition-related costs, restructuring costs,unrealised gains or losses on derivatives, gains or losses on the sale of non-strategic assets, asset impairments and write-downs and share of profit or loss of joint ventures, and to include the cash impact of dividends received from joint ventures.
Adjusted net income is defined as profit or loss adjusted to exclude certain items of significant or unusual nature, including, but not limited to, the non-cash foreign exchange impact of non-functional currency loans, amortization of transaction costs, the net change in fair value of financing-related derivatives, purchase price allocation depreciation and amortization, adjustments made to reconcile EBITDA to adjusted EBITDA and the estimated tax impact of the foregoing adjustments.
Adjusted EBITDA and adjusted net income are not performance measures under IFRS, are not measures of financial condition, liquidity or profitability and should not be considered as alternatives to profit (loss) for the period, operating profit or any other performance measures determined or derived in accordance with IFRS or operating cash flows determined in accordance with IFRS.
Additionally, adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not take into account certain items such as interest and principal payments on our indebtedness, working capital needs and tax payments. We believe that the inclusion of adjusted EBITDA and adjusted net income in this presentation is appropriate to provide additional information to investors about our operating performance to provide a measure of operating results unaffected by differences in capital structures, capital investment cycles and ages of related assets among otherwise comparable companies. Because not all companies calculate adjusted EBITDA, core revenue and adjusted net income identically, the presentation of these non-IFRS performance measures may not be comparable to other similarly titled measures in other companies.
For additional information about alternative performance measures used by management that are not defined in IFRS, including definitions and reconciliations to measures defined in IFRS, refer to the SIG 2019 Interim Report.
Please note that combismile is currently not available in Germany, Great Britain, France, Italy and Japan.
OUR AGENDAAND PRESENTERS FOR TODAY
NOVEMBER 19 SIG COMBIBLOC - CMD2
1. THE OPPORTUNITY Rolf Stangl
2. SUSTAINABILITY Rolf Stangl
EXTERNAL SPEAKER: MINTEL
3. INNOVATION Markus Boehm
Q&A
4. REGIONAL CASE STUDIES
A. EMEA M. Herrenbrück, A. Eladib
B. Americas Ricardo Rodriguez
EXTERNAL SPEAKER: Alpura – leading Mexican dairy
C. Asia Pacific Lawrence Fok
Q&A
COFFEE BREAK
5. OPERATIONAL EXCELLENCE Ian Wood
6. FINANCIAL PERFORMANCE Samuel Sigrist
7. WRAP-UP AND Q&A R. Stangl, S. Sigrist
Rolf Stangl
Chief Executive Officer
Samuel Sigrist
Chief Financial Officer
Markus Boehm
Chief Market Officer
Ian Wood
Chief Supply Chain Officer
Martin Herrenbrück
President & General Manager, Europe
Lawrence Fok
President & General Manager, Asia Pacific
Ricardo Rodriguez
President & General Manager, Americas
AbdelghanyEladib
Chief Operating Officer,JV MEA
ROLF STANGL
CHIEF EXECUTIVE OFFICER
15 years with SIG, CEO since 2008
Previous positions includeChief Market Officer SIG Beverage Chief Executive OfficerHead of Corporate Development and M&A
WE ARE A LEADING SUPPLIER OF ASEPTIC CARTON FILLING SOLUTIONS Sustainability is at the core of our DNA with carton being the most eco-friendly substrate
NOVEMBER 19 SIG COMBIBLOC - CMD4
UNIQUE SLEEVE-BASED FILLING TECHNOLOGY
▪ Unprecedented reliability, robustness and uptimes
▪ Volume and format flexibility: up to 16 product variants on one filler
▪ Superior filling capabilities for particulate and highly viscous content
▪ Affordable and safe packaging solutions based on lightweight carton structures (e.g., Lite, cb12)
▪ With differentiating packaging and filling solutions (e.g. combidome, combismile, drinksplus, Heat&Go, broad sustainability portfolio) we serve premium beverage categories
▪ With our global integrated footprint and supply chains we support customers locally – unlike most other providers
▪ ~550 service engineers with deep technical expertise and application know-how
WE ARE AT THE HEART OF OUR CUSTOMERS' OPERATIONS
NOVEMBER 19 SIG COMBIBLOC - CMD5
Raw Milk Raw Milk Reception
Raw Milk Storage
MilkPasteuriser
Milk Tanks UHT Filling Line Sleeves & Closures
Outbound Logistics
Consumer
Raw Material Reception Processing Packaging Systems Distribution & Retail
Filling and packaging operations are at the heart of our customers’ operations. The OEE and reliability of our machinery is crucial. With co-investments and long-term contracts we're in true partnerships
Our service engineers are deeply integrated into our customers’ dayto day operations. 550 service colleagues take care of approx. 1,180 filling lines1, ensuring efficiency and sterility
Our packaging solutions are key to our customers’ brand experienceand help them to interact with consumers on- and off-line
1. 2018 data
BUILDING ON LONG-TERMCUSTOMER PARTNERSHIPS WITH GLOBAL AND REGIONAL LEADERS
NOVEMBER 19 SIG COMBIBLOC - CMD6
TOP 10 CUSTOMERS
CUSTOMER LENGTH OF RELATIONSHIP
1 >15 YEARS
2 >10 YEARS
3 >35 YEARS
4 >40 YEARS
5 >30 YEARS
6 >30 YEARS
7 >35 YEARS
8 >35 YEARS
9 >5 YEARS
10 >10 YEARS
TOTAL >25 YEARS ON AVERAGEANNUAL CUSTOMER RETENTION RATE OF ~99%
2018 data
NOVEMBER 19
CONSUMER LED INNOVATION: WE THINK CONSUMERS
New consumption occasions with drinkable snacks
Premiumisejuices through real fruit inclusions
On-the-go breakfast milk with healthy cereals
Add perceptible value: Tomato passata with real tomato chunks
Deliver nutritious soups with food particulates
Target new consumers with rich protein drinks
SIG COMBIBLOC - CMD7
Innovation process starts with observation of consumer behaviour, pain points and needs
Testing and prototyping in two established test centres in Europe and China
Co-development of beverage products with customers in our test filling centres
Test trials with consumers in supermarkets
GLOBAL FOOTPRINT1 WITH INTEGRATED SUPPLY CHAINS
Aseptic carton share3
(volume)End-markets2
LEADING SYSTEMS AND SOLUTIONS PROVIDERFOR ASEPTIC PACKAGING
NOVEMBER 19 SIG COMBIBLOC - CMD8
1. Core revenues 2. Estimated volume split (B liters) 2018; Other: wine, syrups, water, etc.3. Share of global aseptic liquid dairy, non-carbonated soft drinks & aseptic/retort liquid food carton supply in core geographies excl. Japan, India, Peru, Argentina, Chile in 2018
Note: Financials and other statistics as of December 31, 2018 unless noted otherwiseSource: Company information (FY 2018) and SIG Market Study
#2 globally in resilient and growing end-markets
Around 1,180 fillers in the field
Razor/razor-blade business model with long-term customer relationships
Core revenue €1.64bn
Track record of growth and margin expansion
Adj. EBITDA margin 27.5%
Post-tax ROCE20.6%
21
1465
Food
Liquid dairy
Non-carbonated-soft drinks
Other
Other
Tetra Pak
SIG
25%
6%
2%
67%
18%Americas
37%Asia Pacific
45%EMEA
THE OPPORTUNITY
NOVEMBER 199 SIG COMBIBLOC - CMD
01
02
03
05
06
07
Key trends fuelling our business1.1
Growth outlook: From total addressable to the aseptic carton market
1.204
FOUR MAJOR TRENDS AND THEIRIMPACT ON THE ASEPTIC CARTON INDUSTRY
NOVEMBER 19 SIG COMBIBLOC - CMD10
THE OPPORTUNITY Key trends
04SUSTAINABILITY & GOING GREENImpact of packaging on the environment is monitored by regulators, NGOs, brand owners and consumers
DEMANDING CONSUMERSInnovative packaging and filling solutions required to meet demand for “on the go”, differentiation and convenience
GROWING DEMAND FOR PROCESSED FOODSafe and affordable packaging solutions required to serve the growing middle class in developing markets
EFFICIENT AND SAFE SUPPLY CHAINFood safety and cost pressure drive packaging and machinery suppliers to increase efficiency and transparency
GROWTH OF PROCESSED FOOD AND DEMANDING CONSUMERS
PROCESSED FOODGROWING 2X RATE OF GLOBAL POPULATION
NOVEMBER 19 SIG COMBIBLOC - CMD11
THE OPPORTUNITY
Size 2018
Growth(CAGR '18-'30)
Population with access to
processed food
Global spend for processed foodGlobal population
+2.4%
€2.4T
+1.2%
7.3B people7.6B people
+1.1%
Key trends
+1.1B people by 2030
Source: United Nations, Euromonitor, Company information
Loose milk & beveragesSales via un-organized market
Sweetened milkPouch
Still fruit drinks and plain milk (single serve)
Flavoured milk
<5.000 5.000-15.000 15.000-45.000 45.000-100.000 >100.000
ASEPTIC CARTON CATERS TO NEEDS OFCONSUMERS ACROSS CLASSES AND REGIONS
NOVEMBER 19 SIG COMBIBLOC - CMD12
THE OPPORTUNITY
0
2,500
5,000
7,500
10,000
12,500
POOR POOR & UPCOMING ASPIRANT EMERGINGESTABLISHED/UPPER
CLASS
Avg. yearly household spend Food & non-alcoholic Beverages ($)
India MEA AM-S AP-N AP-S EU AM-N
Growing demand
Household income groups in PPP-$
Key trends
Ambient drinking yogurtPlain white milk
Milk alternatives
Source: Euromonitor, Company information
ASEPTIC CARTON PACKAGING SHOWS HIGHEST GROWTH RATES
NOVEMBER 19 SIG COMBIBLOC - CMD13
THE OPPORTUNITY Growth outlook
2017-2022 CAGRS
92BLitres of aseptic carton
229BLitres of ambient packaging
Aseptic carton packaging of liquid food
and beverages
533BLitres of beverages
579Bkg of packaged food
579B KG OFPACKAGED FOOD
533B LITRES OFBEVERAGES
Ambient packaging of liquid food and
beverages
Packaging for food and beverages
+3.6%+2.8%+2.6%
Core geographies and categories
67B
Additional geographies2
22B
Aseptic carton92B
Other substrates137B
Ambient packaging 229B
Fresh packaging 85B
Other 220B
Packaged food579B
Additional categories1
3B
1. Additional categories include alcoholic beverages, water, nutritional, medical and sports drinks (carton only) 2. Includes 47 countries outside SIG’s current core geographiesCompany information
SHAPING THE FUTURE OFASEPTIC CARTON ACROSS REGIONS
NOVEMBER 19 SIG COMBIBLOC - CMD14
THE OPPORTUNITY Growth outlook
2017 20232022
AMERICAS
2017 20232022
EUROPE
MEA APAC
2017 20232022 2017 20232022
CAGR '17-'22
3.4%
5.7%
0.1%
6.5%
25
35 38
1317 18
2125 26
33 33 33
Source: Company information
SAFE AND AFFORDABLE PACKAGING AND FILLING SOLUTIONS
▪ Filling flexibility for customers to adjust to shifts in market demand and run multiple products on one filler
▪ Safe and affordable packaging formats (Lite, cb12) for transition from pouch and/or powder milk
PIONEERING IN SUSTAINABLE PACKAGING SOLUTIONS
▪ Our cartons with lowest CO2 footprint compared to other packaging alternatives
▪ Our SIGNATURE PACK is the world’s first aseptic pack 100% linked to plant-based renewable
material with aluminium-free design
EFFICIENT PACKAGING OPERATIONS AND SAFE SUPPLY CHAINS
▪ SIG's integrated global supply chain - we support our customers locally
▪ In partnership with our customers we constantlyimprove line efficiency
▪ Connected pack enables transparency along supply chain
DIFFERENTIATING PACKAGING SOLUTIONS FOR PREMIUM CATEGORIES
▪ Format/filling flexibility to cater for SKU proliferation
▪ Low waste rates to minimise losses of premium ingredients
▪ Particulate filling capabilities to meet on-the-go/snacking trend
SIG IDEALLY POSITIONEDTO MEET MARKET AND CONSUMER TRENDS
NOVEMBER 19 SIG COMBIBLOC - CMD15
THE OPPORTUNITY SIG's strengths
CLEAR GROWTH AGENDATO UNLOCK MARKET OPPORTUNITIES
NOVEMBER 19 SIG COMBIBLOC - CMD16
THE OPPORTUNITY Growth Agenda
RESILIENT END-MARKETS
STRONG FILLER BASE AND RECENT INVESTMENTS
CONTINUED CONSUMER-LED INNOVATION
EXPLOIT WHITE SPACE OPPORTUNITIES
ACCELERATE EXPANSION IN FAST GROWING NICHE SEGMENTS
SUSTAINABILITY
NOVEMBER 1917 SIG COMBIBLOC - CMD
01
02
03
05
06
07
Our responsibility ambition2.1
Aseptic carton advantages over alternative substrates
2.204
RESPONSIBLE COMPANYPursuing a net positive corporate footprint in the long run
TOP 1%of over 30,000 businesses in 2017, Ecovadis Gold rated responsibility
1 OF 100 companies globally with science-based CO2 reduction target in place
RESPONSIBLE SOURCINGStriving for certified sustainable supply of all materials, products and services
100%of sleeves shipped covered by FSCTM
COC1 certification2
ASI certificationResponsible aluminium sourcing
RESPONSIBLE PRODUCTSInnovating and delivering smarter solutions with proven sustainability across the entire life-cycle
PROMOTING RECYCLING infrastructure and awareness
ALL ASEPTIC CARTONS fully recyclable
70-80% average renewable content of all cartons
COMBATTING CLIMATE CHANGEAND INCREASING RECYCLING
NOVEMBER 19 SIG COMBIBLOC - CMD18
SIG’s ULTIMATE GOAL IS TO CONTRIBUTE MORE TO SOCIETY AND THE ENVIRONMENT THAN WE TAKE OUT ACROSS OUR VALUE CHAIN
1. Forest Stewardship Council TM Chain of Custody2. 98% of products labelled with FSCTM
SUSTAINABILITY Our responsibility ambition
2030 GOALHalve value chain environmental impacts and double societal benefits while meeting business growth targets
2030 GOALAll raw materials from certified responsible sources and 50% of total sourcing spend on net positive suppliers
2030 GOALOffer customers the most sustainable food packaging solutions on the market
SIG ASEPTIC CARTON PACKAGINGSUSTAINABLE BY NATURE
NOVEMBER 19 SIG COMBIBLOC - CMD19
RENEWABLE
OUR BEVERAGE CARTONS ARE ON AVERAGE MADE OF 75% PAPERBOARD, A RENEWABLE MATERIAL.
RESPONSIBLE
100% OF THE PAPERBOARD USED TO MANUFACTURE OUR CARTONS COMES FROM PAPER MILLS THAT HAVE AN FSCTM CERTIFIED CHAIN-OF-CUSTODY.
RESOURCE EFFICIENT
THE BEVERAGE CARTON INDUSTRY NOW PRODUCES 40% MORE CARTONS WITH THE SAME AMOUNT OF WOOD FIBRES AS 20 YEARS AGO.
RECYCLABLE
ALL THE MATERIALS USED IN BEVERAGE CARTONS ARE RECYCLABLE.
LOWEST CARBON FOOTPRINT
OUR CARTONS PERFORM BEST COMPARED TO OTHER PACKAGING ALTERNATIVES PROVEN BY LIFE CYCLE ASSESSMENTS.
SUSTAINABILITY Responsible company Responsible sourcing
Affordable &sustainable packaging
Responsible products
LIQUID DAIRY NON-CARBONATED SOFT DRINKS
FOOD
LOWEST CARBON FOOTPRINT:CARTONS WIN EVERY TIME
NOVEMBER 19 SIG COMBIBLOC - CMD20
kg CO2 equivalent per packaging required for 1,000L UHT milk
Beveragecarton
HDPE bottle PET bottle
-45%
-34%
85 129 155
Affordable &sustainable packaging
kg CO2 equivalent per packaging required for 1,000L non-carbonated soft drinks
Beveragecarton
MonolayerPET bottle
MultilayerPET bottle
Disposableglass bottle
88 121 145 295
-70%
-39%
-28%
SUSTAINABILITY
Asepticcarton
Pouch Pot Can Glass
224 378 540 580 609
-63%-61%-58%
-40%
kg CO2 equivalent per packaging required for 1,000L food
Responsible products
GO BEYOND (25-75% LESS) WITH SIG :
EcoPlusalu-free structureand/orSIGNATURE PACK Plant-based plastics
-20-75%
*1 50% PCR scenario would reduce the impact to 106 g
*2 50% PCR scenario would reduce the impact to 132 g
*3 Includes 59% recycled glass
*4 Includes 5,8% post-consumer recycled material
*5 Includes 59% recycled glass
European average (EU27)/IFEU Institute Heidelberg using ISO 14040 international standard
CONTRIBUTING TO A CIRCULAR ECONOMY WITH FOCUS ON SOURCING, INNOVATION AND COLLECTION & RECYCLING
NOVEMBER 19 SIG COMBIBLOC - CMD21
Affordable &sustainable packaging
SUSTAINABILITY Our responsibility ambition
DRIVE RESPONSIBLE SOURCINGFor all primary materials
INCENTIVISING USE OF RENEWABLE MATERIALS AND/OR BIO-BASED
Unique packaging innovation
ENSURING THAT ALL RECYCLABLE PACKAGING IS RECYCLED
Efficient collection is base for effective recycling
SOURCING FROM RESPONSIBLY MANAGED FORESTSTRACEABLE WORLDWIDE AND VERIFIED FSCTM
CHAINOF CUSTODY CERTIFICATION
SIG BEVERAGE CARTON PRODUCTION & INNOVATION
75%paperboard
21%polymers
4%aluminium
SIG pioneering and driving with FSC sourced wood fibre
1st in plant-based plastics and recycled plastics
First with ASI certified aluminium / unique offer of aluminium-free
CONSUMPTION RE-USE
COLLECTIONRECYCLING
20 EU1
beverage cartonrecycling plants
beverage cartonsrecycled 2018 in EU, increasing tendency
49%1
PALUREC & MORE
beverage cartonrecycling innovation
SIG encourage collectionssystems worldwide, e.g. Brazil
SOMA
GRACE
SIG is member of global recycling alliance for beverage cartons
1. The Alliance for Beverage Cartons and the Environment
INNOVATION
NOVEMBER 1922 SIG COMBIBLOC - CMD
01
02
03
05
06
07
A holistic approach: Consumer-led innovation made by SIG
3.1
Technology solutions as main R&D focus area
3.204
MARKUS BOEHM
CHIEF MARKET OFFICER
15 years with SIG and Chief Market Officer since 2009
PREVIOUS POSITIONS INCLUDEChief Executive Officer, ChinaChief Financial Officer, ChinaPrior leadership positions at Hilti and P&G
Addressing multiple customer and consumer needs
Growing with combiblocXSlim(co-development with Friesland) Small packages with volume flexibility down to 80 ml for various categories to increase convenience
Traceability solutions
7
Supply chain solutions
6
Service solutions
5
End-to-end design solutions
3
Digital marketing solutions
8
Filling line solutions
4
Packaging solutions
2
1
OUR PROMISEExcellence – Engineered.
Solutions – Delivered.
Product solutions
EXCELLENCE – ENGINEERED.SOLUTIONS – DELIVERED
NOVEMBER 19 SIG COMBIBLOC - CMD24
INNOVATION SIG promise & solutions
SIGNIA SIGNATURE PACKfor environmentally aware consumers
drinksplus (co-developmentMengniu) Allowing customers to access new consumer groups and consumption occasions
Transforming & Modernising PlantsGreenfields, brownfields and E2E solutions for customer plants
360 Asset ManagementDigitalised asset management enabling condition-based maintenance
One-Click TrackingUnique QR code empowering consumers to track food to production origin
INCREASING REVENUE OPPORTUNITIESWITH CUSTOMERS BEYOND PACKAGING SOLUTIONS
SLEEVE & FILLING TECHNOLOGY:THE SIG PLATFORM ENABLING A BROAD AND FLEXIBLE OFFERING
NOVEMBER 19 SIG COMBIBLOC - CMD25
Innovation
VOLUME AND FORMAT FLEXIBILITY
Rapid switching to cater for changing needs while keeping asset utilisation high
▪ Up to 16 product variants possible on one filler
▪ Range of fill volumes from 80ml to 2,000ml across portfolio
MODULAR OPTIONS TO UPGRADE INSTALLED BASE
Different filler and product features can be added with distinct advantages
FORMAT FLEXIBILITY (format change <10 min)
VOLUME FLEXIBILITY (volume change <5 min)
DRINKSPLUS FOOD OPTION HEAT & GOSIGNATURE
PACKSPOUT & STRAW APPLICATIONS
▪ High viscosity filling
▪ Particulates
▪ Paper straws
▪ Convenience for consumers
▪ Filling of soups and sauces
▪ Particulates
▪ Microwaveable for hot drinks
▪ Aluminium-free
▪ Plant-based renewable material
▪ Aluminium-free
INNOVATION Modular SIG platform
CONSUMER RESEARCHETHNOGRAPHIC RESEARCH CAPTURES MULTITUDE OF CONSUMER PREFERENCES
OBSERVEGAIN A DEEP UNDERSTANDING BY OBSERVING ARTICULATED AND UNARTICULATED CONSUMER PROBLEMS AND NEEDS (E.G., NO CONTENT LEAKAGE BETWEEN SIPS)
DOMAINCONDENSE THESE CONSUMER INSIGHTSINTO ACTIONABLE “GROUP NEED” AREAS IN ORDER TO GENERATE STRUCTURED IDEAS (E.G. ON-THE-GO)
PROTOTYPEWORK WITH LEADING EXPERTS AND AGENCIES TO DEVELOP COMPREHENSIVE CONCEPTS/MOCK-UPS AND SOLUTIONS(E.G., DIFFERENTLY SHAPED SMALL-SIZE PACKAGES WITH SINGLE-ACTION CLOSURE)
TESTFUNCTIONAL TEST WITH ACTUAL CONSUMERS THROUGHOUT THE ENTIRE CONSUMPTION JOURNEY (E.G., CHOOSE, TRANSPORT, USE, DISPOSE)
CONSUMER-LEDINNOVATION
NOVEMBER 19 SIG COMBIBLOC - CMD26
Innovation
INNOVATION Consumer-led innovation
COMBISMILE:END-TO-END SOLUTION INCLUDING DRINKSPLUS INNOVATIVE PRODUCT SOLUTIONS
NOVEMBER 19 SIG COMBIBLOC - CMD27
COMBISMILE AS PLATFORM CATERING TO KEY GROWING CATEGORIES
Differentiation for premium
categories
INNOVATION Technology solutions
WHITE MILKAMBIENT YOGURT + PARTICULATES
FLAVOURED MILK + PARTICULATES
DAIRY ALTERNATIVES
COMBISMILE VARIANTS
ADDRESSED TRENDS
combismileSmallwith straw
combismileSmallwith combiGo
combismileBigwith straw
combismileBigwith combiGo
Premiumisation
Convenience
Premiumisation
Convenience
On-the-go
Convenience
On-the-go
Premiumisation
HOT DRINKS SHOW A GROWING POTENTIAL FOR EXPANSION INTO READY-TO-DRINK VARIANTS.
COFFEE AND TEA: ONE OF THE MOST IMPORTANT “EVERYDAY CONSUMPTION” BEVERAGES FOR A LARGE AND GROWING SEGMENT OF THE WORLD’S POPULATION.
NEW GROWTH OPPORTUNITIES FOR BRANDS TO SERVE A RANGE OF NEW PRODUCTS FOR NEW CONSUMPTION OCCASIONS.
HEAT&GOINNOVATIVE PACKAGING SOLUTIONS
NOVEMBER 19 SIG COMBIBLOC - CMD28
01MICROWAVE DRINKS WITHOUT COMPROMISING PROTECTION AND PRODUCT QUALITY
02UNIQUE INNOVATION FROM SIG, NEW PACK SOLUTIONS FOR HOT DRINKS
03SIMILAR BARRIER FUNCTION & SHELF-LIFE AS STANDARD STRUCTURE
04USES EXISTING FILLERS: FAST TIME TO MARKET
INNOVATION Technology solutions
Differentiation for premium
categories
GE Digital – SIGPARTNERSHIP
DIGITAL SERVICEGE Digital - SIG
DIGITAL SERVICE –PARTNERSHIP WITH GE DIGITAL
NOVEMBER 19 SIG COMBIBLOC - CMD29
INNOVATION Technology solutions
Efficiency and safety
Enhanced customer service and TCO1
• Frontrunner in Industrial IoT
• Track record in asset monitoring and predictive maintenance (oil & gas, wind turbines, jet engines etc.)
• System business
• ~1,180 fillers
• Connected filling lines providing “live” data for >20yrs
• Deep understanding of our customers’ operations
• Improve asset efficiency and productivity
• Increase service levels
• Reduce capex and opex(labour cost)
• Improve quality within customers’ operations
• Avoid out-of-stock situations and reduce inventory costs
• Improve customer satisfaction
Partnership to establish a first-in-industry integrated digital solution for asset monitoring and service delivery based on predictive analytics
1. Total cost of ownership
RAMP-UP OF EXISTING AND NEW TECHNOLOGIES
• COMBISMILE EXPANSION INTO NEW AND GROWING CATEGORIES, E.G. AMBIENT YOGURT, DAIRY ALTERNATIVES, VEGETABLE PROTEIN DRINK, YOGURT DRINKS, AMBIENT FLAVOURED MILK
• TOTAL SOLUTIONS OFFERING – UPSTREAM, DOWNSTREAM AND FORMULATIONS
• PRODUCT CONTENT AND PACKAGING DIFFERENTIATION
• CLOSER TO OUR CUSTOMERS AND PARTNERING IN INNOVATION
• CATERING FASTER TO INNOVATION CYCLES, ESPECIALLY IN APAC
Tw
o T
ec
h
Ce
ntr
es
Linnich
China
WE TEST
Innovative structures, new shapes, product formulations
Upstream, downstream, product formulations
OUR CUSTOMERSCAN TEST
Consumer trials
WE LETCONSUMERS TEST
NOVEMBER 19 SIG COMBIBLOC - CMD30
THREE-FACETED TESTING ENHANCED BY NEW REGIONAL TECH CENTRE IN CHINA
NEW REGIONAL TECH CENTRE IN CHINA
INNOVATIONInnovation
Technology solutions
NOVEMBER 1931 SIG COMBIBLOC - CMD
01
02
03
REGIONAL CASE STUDIES
05
06
07
04
EMEA4.1
Americas4.2
Asia Pacific4.3
MARTIN HERRENBRÜCK
PRESIDENT & GENERAL MANAGER, EUROPE
13 years with SIG and President & General Manager, Europe since 2017
PREVIOUS POSITIONS INCLUDEHead of Cluster Asia - Pacific SouthHead of Global MarketingCorporate Development Roles
EMEAKEY FIGURES
NOVEMBER 1933
ASEPTIC CARTON SHARE (2018)
33.5%ADJ. EBITDA MARGIN1
(2018)
€733mCORE REVENUE1
(2018)
Tetra Pak
Other
SIG
16%
25%58%
5%
71%
24%
Europe Middle East Africa
1 Consolidated EMEA reporting segment
50/50MEA: JOINT VENTURE WITH OBEIKANINVESTMENT GROUP FOUNDED IN 2001
EUROPE AT A GLANCE
NOVEMBER 19 SIG COMBIBLOC - CMD34
DAIRY AND JUICE PROCESSING MARKETS HIGHLY CONSOLIDATED, PLAYERS WITH HIGH LEVEL OF TECHNICAL EXPERTISE AND FOCUS ON EFFICIENCY AND COST
FLAT OR SLIGHTLY DECLINING VOLUMES IN CERTAIN CATEGORIES (E.G. WHITE MILK)
GROWTH FROM EMERGING CATEGORIES SUCH AS PLANT-BASED DAIRY ALTERNATIVES, FOOD OR WATER AS NEW CATEGORIES FOR CARTON
TWO STRATEGIC THRUSTS ON GO-TO-MARKET
DEFEND AND SELECTIVELY GROW WITH EXISTING CUSTOMERS
WIN NEW CUSTOMERS AND CATEGORIES WHILE BROADENING THE EUROPEAN REACH
PROLIFERATION OF SKUS AND FLEXIBILISATION OF THE VALUE CHAIN E.G. VIA CO-PACKERS
SIG'SGO-TO-MARKET STRATEGY
ENABLED BY SIG’S CORE STRENGTHS IN
OPERATIONAL EXCELLENCE
INNOVATIVE AND SUSTAINABLE PACKAGING SOLUTIONS
ADVANCED AFTER-SALES SERVICES
UPGRADED SOLUTION SELLING APPROACH
REGIONAL CASE STORIES Europe
NOVEMBER 19 SIG COMBIBLOC - CMD35
REGIONAL SUCCESS STORIES
DEFEND AND SELECTIVELY GROW WITH EXISTING CUSTOMERS
WIN NEW CUSTOMERS AND BROADENING THE REACH
(Spain, 2016) (Portugal, 2017) (Austria, 2016) (Ireland, 2017) (Germany, 2019) (Poland, 2018) (UK, 2019) (Finland, 2019) (BA, 2018) (France, 2017) (UK, 2019) (Germany, 2017)
Advanced solutions offerings to deliver customised solutions
Development of innovative and sustainable packaging solutions
Extension of after-sales service offerings
Sales approach and tools to strengthen sales effectiveness and efficiency
Upgrade of sales tools and processes (e.g., CRM system, sales cycle, holistic pricing)
Solution-based selling model
Europe
GO-TO-MARKET TO DEFEND AND GROW
GAINING VOLUME SHARE THROUGH NEW CUSTOMERSAND WINNING REPLACEMENT PROJECTS
NOVEMBER 19 SIG COMBIBLOC - CMD36
REGIONAL SUCCESS STORIES
Key Reasons for Wins
Format andVolume
Flexibility
TCO Advantage
Holistic Service Solutions –
Wins in Green and Brownfield
Innovation –Product Design and Concepts
# New / Contracted Fillers
1
3
1
1
2
4
1
2
1
3
1
3
1
1
1
2
2
2
1
1
6
2
1
2
6
Region
East
West
East
East
South
South
North
Central
Central
East
South
Central
South
Central
East
Central
North
South
North
East
North
Central
Central
South
Central
Timeline of New Projects: Significant wins 2016/H2-2020/H1
2016/H2 2017 2018 2019 2020/H1
Aug-16
Oct-16
Q4/17
Jun-17
Jun-17
Aug-17
Apr-17
Q4/17
May-17
Jun-17
Aug-17
Q1/17
Jun-17
Q2/18 Q4/18
Q2/18
Q4/18
Q4/18
Q4/18
Q3/18
Q4/18
Q4/18
Q3/18
Q4/18
Q1/18
Q3/19
Dec-19
Q1/19
Q3/19
Q1/19
Q4/19
Q3/19 Q4/19
Q219 Q4/19
Q1/19
Q1/19 Q2/19
Q3/19
Q3/19 Q4/19
Q1/19
Q1/19
Q2/19
New Customer
Existing Customer
First FillerPlaced
Additional fillersplaced
Volumeramp-up
Europe
SIG OFFERED DIFFERENTIATION AND A NEW LEVEL OF CONVENIENCE WITH COMBIDOME PACKAGING SOLUTION. CONCEPT DEVELOPMENT OF NEW SKUS TO LEVERAGE SIG’S VOLUME FLEXIBILITY AND TO ATTRACT NEW CONSUMER GROUPS
INSTALLATION OF 3 FILLING LINES AND SUCCESSFUL MARKET LAUNCH OF TYMBARKPRODUCT RANGE.
UNLOCKING NEW CONSUMPTION OCCASION AND TARGET GROUPS BY INTRODUCING 500ML ON-THE-GO “VEGETABLE JUICE” SKUS
MASPEX NEEDED TO REFRESH CONSUMER APPEAL FOR ITS NATURAL FRUIT JUICE RANGE AND TO REJUVENATE AND STRENGTHEN TYMBARK BRAND
▪ MASPEX IS MARKET LEADERIN NCSD WITH NO. 1 JUICE BRAND TYMBARK IN POLAND
▪ SUCCESSFUL PARTNERSHIP WITH SIG SINCE 2001
▪ 10 SIG LINES RUNNING IN 3 PLANTS
INCREASING SHARE OF WALLET:HELPING MASPEX TO INNOVATE
NOVEMBER 19 SIG COMBIBLOC - CMD37
REGIONAL SUCCESS STORIES
SOLUTION: OUTCOME:OPPORTUNITY:
Differentiation for premium
categories
Europe
SIG PROVIDING HIGHEST SYSTEM QUALITY LEVEL,ADDED VALUE SERVICE AND REDUCING TOTAL FILLING COST THROUGH SUPERIOR LINE EFFICIENCY
PASSING 24-MONTHS SYSTEM AND PERFORMANCE TEST AND THEREBY QUALIFYING AS STRATEGIC PARTNER OF COVAP
SUCCESSFULLY CONCLUDING ON PHASE 1 OF TECHNOLOGY UPGRADE PROGRAM AND FIRST FILLING LINES PLACED FOR COMMERCIAL PRODUCTION
COVAP NEEDED TO UPGRADE AND INCREASE CAPACITY WHILE IMPROVING TOTAL QUALITY AND PRODUCTION EFFICIENCY
COVAP IS A LARGE DAIRY COOPERATIVE IN SPAIN
RELYING EXCLUSIVELY ON COMPETITOR'S SYSTEM IN THREE PLANTS
A LONG-TERM PARTNER AND A LEADING SUPPLIER OF RETAILER
SOLUTION: OUTCOME:OPPORTUNITY:
NEW CUSTOMER WINS:HELPING COVAP TO ELEVATE OPERATIONAL EXCELLENCE
NOVEMBER 19 SIG COMBIBLOC - CMD38
REGIONAL SUCCESS STORIES Europe
Efficiency and safety
EVERYONE LOVES OUR PACKS
NOVEMBER 19 SIG COMBIBLOC - CMD39
REGIONAL SUCCESS STORIES Europe
ABDELGHANYELADIB
CHIEF OPERATING OFFICER, MEA
Joined SIG Combibloc Obeikanin 2017 as Chief Operating Officer
PREVIOUS EXPERIENCE INCLUDES26 years of Food & Beverage industry experience in various leadership positions including P&G, Cadbury, Bel Foods, and Mars
NOVEMBER 19 SIG COMBIBLOC - CMD41
REGIONAL CASE STORIES Middle East Africa
2018 sales
€275m
50/50joint venture with ObeikanInvestment Group founded in 2001
REGIONAL HEADQUARTERS
SLEEVE PLANT
MIDDLE EAST AFRICAAT A GLANCE
NOVEMBER 19 SIG COMBIBLOC - CMD42
MARKETS RECOVERING FROM CHALLENGING CONDITIONS IN 2018
POSITIVE LONG-TERM TRENDS
DRIVEN BY GROWTH IN MIDDLE-INCOME HOUSEHOLD EXPENDITURE AND IN POPULATION
FOCUS ON TECHNICAL ROBUSTNESS AND FLEXIBILITY OF OUR OFFER
RISING DEMAND FOR CONVENIENT ON-THE-GO PACKAGED PRODUCTS
DUE TO CHANGING CONSUMPTION BEHAVIOURS, E.G. AT WORK
SIG'SGO-TO-MARKET STRATEGY
REGIONAL CASE STORIES
PARTNERING WITH CUSTOMERS TO DRIVE DIFFERENTIATION AND INNOVATION
FOCUS ON AFFORDABILITY WHEN NEEDED
DEVELOPMENT OF SMART FACTORY SOLUTIONS
E.G. ALMARAI PLANT 360 ASSET MANAGEMENT
NEW INNOVATION AND RELIABILITY CENTRE IN DUBAI
Middle East Africa
ENABLING EXPANSION IN DAIRY NIGERIA:NEW PRODUCT DESIGN FOR HOLLANDIA
NOVEMBER 19 SIG COMBIBLOC - CMD43
REGIONAL SUCCESS STORIES
Differentiation for premium
categories
Middle East Africa
SIG’s 125ml combiblocMinipack: perfect filling quantity and shelf perception at an affordable price
125 ml carton has better shelf appearance than 160 gr can
Consumers judge quantity by height
Hollandia evaporated milk sales increased to 6 million packs per month 6 months after launch
Hollandia is a leading dairy brand in Nigeria
To provide a convenient, affordable single use evaporated milk product
SOLUTION: OUTCOME:OPPORTUNITY:
SIG’s filling line size flexibility enabled switch from 6x200ml multipacks for 6SAR to 6x150ml for 5SAR with improved margins and without further investment
Following Almarai the entire Saudi flavoured milk market shifted to 150ml. Almarai became market leader in this segment
Almarai aiming to increase margins and market share in single serve flavoured milk category
PRODUCT DIFFERENTIATIONAND ASSET EFFICIENCY
NOVEMBER 19 SIG COMBIBLOC - CMD44
REGIONAL SUCCESS STORIES
Differentiation for premium
categories
Middle East Africa
Almarai is the leading food and beverage company in the Middle East
SIG installed the first global pilot of Plant 360 AM at Almarai factory: change to condition-based maintenance
Digitalisation Targeting higher line availability and improved asset health for Almarai
Controlled costs for SIG
SOLUTION: OUTCOME:OPPORTUNITY:
RICARDO RODRIGUEZ
PRESIDENT & GENERAL MANAGER, AMERICAS
16 years with SIG and President & General Manager, Americas, since 2015
PREVIOUS POSITIONS INCLUDEDirector & General Manager, South AmericaTechnical Service Director, South America
ASEPTIC CARTON SHARE (2018)
83%
NOVEMBER 19 SIG COMBIBLOC - CMD46
REGIONAL CASE STORIES Americas
ADJ. EBITDA MARGIN (2018)
27.2%
CORE REVENUE (2018)
€297m
AMERICAS – KEY FIGURES
16%1%
Tetra Pak OtherSIG
AMERICASAT A GLANCE
NOVEMBER 19 SIG COMBIBLOC - CMD47
SIG'SGO-TO-MARKET STRATEGY
REGIONAL CASE STORIES
USA / CANADA
Predominantly a fresh milk market but strong growth in plant-based milks in aseptic carton
Rise of small brands using co-manufacturing models
BRAZIL
Second-largest aseptic market globally
Consolidation of dairy players
Key trends are affordability, naturalness, premiumisation
MEXICO
6th largest aseptic carton market globally
Strong growth in white milk consumption driven by growing share of recombined milk
USA / CANADA
Developing strong relationships with US/Canadian co-manufacturers, e.g. Steuben
Delivering formats and designs for new categories
BRAZIL
Filling solutions improve customer efficiency and enable affordable products
New digital solutions ensure traceability
MEXICO
Serving key players in highly concentrated liquid dairy and juice markets
Extending share with affordable filling and packaging solution, e.g. Alpura with white and recombined milk
Americas
SIG proposed a solutionfor switching two lines to one filler. New line can fill three different product categories on the same filler.
Lower production footprint
Higher output
Lower energy and water consumption
Reduced manpower
Reduced waste and higher technical efficiency
Quata worked with competitor’s fillers for milk.
Chose SIG for TCO in milk and to enter new categories of sweetened condensed milk and liquid cream/ flavoured milk.
BRAZILMEETING MARKET TRENDS – AFFORDABILITY
NOVEMBER 19 SIG COMBIBLOC - CMD48
REGIONAL SUCCESS STORIES Americas
SOLUTION: OUTCOME:OPPORTUNITY:
Differentiation for premium
categories
Quata – One of Brazil’s largest milk producers
"One Click Tracking" for better traceability to assure qualityand food safety
End-to-end supply chain control through fully automated data collection
QR code became Languiru’s quality stamp. One-to-one consumer communication and engagement led to increased sales
Languiru needed to recover consumer trust and deliver profitable growth by leveraging consumer interaction with the brand
BRAZILMEETING MARKET TRENDS – TRACEABILITY
NOVEMBER 19 SIG COMBIBLOC - CMD49
REGIONAL SUCCESS STORIES
SOLUTION: OUTCOME:OPPORTUNITY:
Differentiation for premium
categories
Languiru– One of Brazil’s largest producers of meat, poultry and dairy products
Americas
US/CANADA:LEVERAGING CO-MANUFACTURERS TO GROW IN HOT NEW SEGMENTS
NOVEMBER 19 SIG COMBIBLOC - CMD50
REGIONAL CASE STORIES
Differentiation for premium categoriesEfficiency and safety
CO-MANUFACTURING MODEL ENABLES BROAD ACCESS AND PENETRATION IN FRAGMENTED MARKET
EXAMPLE: STEUBEN
Leading US co-packer for multiple low acid products with access to leading brands
Focused on value added product application and packaging innovations
Patented processing and ingredient technologyStrategic partner with 8 installed fillers
Americas
5 key players represent ~80% of carton volume
MEXICO:GROWTH IN LIQUID DAIRY WITH THE LEADING PLAYER
NOVEMBER 19 SIG COMBIBLOC - CMD51
REGIONAL CASE STORIES
▪ Largest dairy cooperative in Mexico▪ 2nd largest aseptic milk producer in Mexico
▪ Began in 2015 with installation of first filler for evaporated milk as an alternative to the can
▪ Recent launches include Forti Leche brand for recombined milk, the fastest and largest growing white milk category in Mexico – based on affordable filling and packaging solution
Partnership with alpura
LD NCSD
SIG Mexico’s 2nd largest customer with 7 installed fillers
2019
>75%
<25%
Others
<30%
>70%
1.9 bn
litres
1.4 bn
litres
Others
alpura – Largest dairy cooperative in Mexico
Americas
WHITE MILKDRIVING EXPANSION
LAWRENCE FOK
PRESIDENT AND GENERAL MANAGER, APAC
7 years with SIG and President & General Manager, Asia Pacific since 2012
PREVIOUS EXPERIENCE INCLUDESManagement positions at Norgen, Alcan Global Pharmaceutical and SCA Packaging
NOVEMBER 19 SIG COMBIBLOC - CMD53
REGIONAL CASE STORIES
ASEPTIC CARTON SHARE (2018)
58%
ADJ. EBITDA MARGIN (2018)
30.3%
CORE REVENUE (2018)
€598m
ASIA PACIFIC – KEY FIGURES
23%
19%
Tetra Pak OtherSIG
Asia Pacific
ASIA PACIFICAT A GLANCE
NOVEMBER 19 SIG COMBIBLOC - CMD54
MARKETS DRIVEN BY DEMOGRAPHICS
rising disposable income, urbanisation
INCREASING DEMAND FOR
convenience, health & wellness, premium and sustainable products
STRONG RELATIONSHIPS
with China’s leading dairies Yili and Mengniu and with Friesland Campina, DPO & Lactasoy in South East Asia
AFFORDABILITY
still a primary consideration for many customers
SIG'SGO-TO-MARKET STRATEGY
REGIONAL CASE STORIES
FOCUSED NEW CUSTOMER DEVELOPMENT STRATEGY
building upon SIG's quality, flexibility, reliability and competitive TCO
NEW PRODUCTS AND FORMATS
to expand into new categories
CHINA DEMAND FOR
premium milk growing by 7% p.a.
RAPID INNOVATION CYCLES
INNOVATION in partnership with customers: launch of combismile, Heat&Go, new regional tech centre
REGIONAL EXPANSION
through acquisition of Visy Cartons and new factory in China
Asia Pacific
CHINABUILDING OUR RELATIONSHIP WITH YILI AND MENGNIU
NOVEMBER 19 SIG COMBIBLOC - CMD55
REGIONAL CASE STORIES
Mengniu#10 dairy globally1
Yili#8 dairy globally1
PREMIUMISING NEW CATEGORY
Entering new “ambient yogurt” category
Higher viscosity – more texture for more taste
Packaged in combismileSmall200ml
Only high quality ingredients
TRUE ON-THE-GO CONSUMPTION
Fibre shake milk with cereals as meal replacement,
Packaged in combismileBig250ml with combiGo Big
New selling channel/platform on WeChat
EXPLORING NEW CATEGORIES
GuoguoXi is an added-value yogurt smoothie with rich fruit juice and fruit pieces
Packaged in combismileSmall220ml with combiGo Small
Launched with the famous Chinese actress Zhou Dongyu’stestimonial
SHUHUA MILK IN NEW PACKAGE
No. 1 functional milk in China with 37% market share in sales value
New Shuhua SKU in new packaging and size – premium whole fat functional milk
Packaged in combismileSmall220ml
Patented LHT lactose hydrolysis technology
Asia Pacific
1. MARKETING92
DPO THE DAIRY FARMING PROMOTION ORGANIZATION OF THAILAND
NOVEMBER 19 SIG COMBIBLOC - CMD56
REGIONAL CASE STORIES
Efficiency and safetySustainable packaging
DPO's volume share in mainstream milk market
Thai-Denmark: One of Thailand's most chosen & admired brands
Iconic Thai Denmark UHT milk in SIG Cb1 aseptic packaging
2015 2018Share of total
volume
49%
DPO
51%
OthersOthers
44%56%
DPO
Share of total volume
Asia Pacific
Source: Nielsen Retail Index, DPO
Locations of DPO’s dairy plants
EXPANSIONOF SIG’S PARTNERSHIP WITH DPO
NOVEMBER 19 SIG COMBIBLOC - CMD57
REGIONAL CASE STORIES
Efficiency and safetySustainable packaging
Evolution of SIG share at 4 DPO aseptic plants
20182015
~20%
2016
~25%
~50%
2017
~75%
~1.25
Competition~1.13
~1.30 ~1.33
SIG attributed Muaklek Phase 2
SIG attributed Muaklek Phase 1
B sleeves (packaging units)
SIG offer:▪ Line efficiency: 24k packs/hour▪ Volume flexibility▪ Lowest waste rate
Chiang Mai - Pasteurized
Sukhotai - UHT
Khonkaen - UHT
Muaklek - Flagship - UHT
Prachuapkhirikhan - UHT
100% SIG fillers
100% SIG fillers
Asia Pacific
Source: Company information, DPO
HIGHLIGHTS
LICENSEE WITH LEADING POSITION IN AUSTRALIA
23 ACTIVE FILLERS
SIGNIFICANT SCOPE FOR SYNERGIES• SUPPLY CHAIN OPTIMISATION• INTRODUCTION OF LATEST TECHNOLOGY AND
SOLUTIONS
REVENUE FY JUNE 19: €52M1
OPPORTUNITIES FOR GROWTH
ANZ MARKET GROWING AT 3% CAGR OVER NEXT 5 YEARS2
DAIRIES INVESTING TO EXPORT MILK TO CHINA AND OTHER ASIAN COUNTRIES
EXPANSION OF VISY BUSINESS IN NEW ZEALAND
ENTERING INTO NEW MARKETS:AUSTRALIA AND NEW ZEALANDACQUISITION OF VISY CARTONS
NOVEMBER 19 SIG COMBIBLOC - CMD58
REGIONAL CASE STORIES Asia Pacific
1 At current exchange rates 2 Source: Euromonitor, company information
INDIA MARKET PROJECTIONS
CUSTOMERSUCCESS STORIES
New customer Amul this year – largest dairy player with 63% share of white milk market
Second contract this year with Dabur –largest juice and nectar player with 58% market share
Ladhani Group
Customers value volume flexibility and ability to fill particulates enabling them to launch value-added “premium economy” products
KEY UNDERLYING TRENDS
Rising Indian urban middle class drives growth in demand for aseptic products – largest loose milk market in the world
Demand for more convenience and new/differentiated products
Regulation in favour of carton vs. plastic in selected states
ENTERING INTO NEW MARKETS
NOVEMBER 19 SIG COMBIBLOC - CMD59
REGIONAL CASE STORIES
LD ASEPTIC
1,000
1,870
1,968
2017 2023
1,111
+10.0%
CAGR (P.A.)
Carton Others
+11%
2023
1,350
2017
4,031
3,000
8,015
CAGR (P.A.)
+20%
NCSD ASEPTIC
INDIA SIG OPPORTUNITY
Build a strong #2 position
Launch new value-added products with particulates
+17.8%
Asia Pacific
Source: Company information
NOVEMBER 1960 SIG COMBIBLOC - CMD
01
02
03
04
OPERATIONAL EXCELLENCE05
06
07
Taking manufacturing to the next level from a strong base
5.1
Proven raw material strategy5.2
Disciplined CAPEX approach providing support for tangible growth
5.3
IAN WOOD
CHIEF SUPPLY CHAIN OFFICER
Joined SIG in 2018 as Chief Supply Chain Officer
PREVIOUS EXPERIENCE INCLUDES15 years at Honeywell as VP & General Manager of various business units as well in the Supply Chain function initially
REGIONALLY INTEGRATED GLOBAL FOOTPRINT
NOVEMBER 19 SIG COMBIBLOC - CMD62
OPERATIONAL EXCELLENCE Next level manufacturing
Wittenberg
Linnich
Neuhausen¹
Saalfelden
Riyadh
Suzhou
RayongCuritiba
Whakatane LPB
Australia
Melbourne
Sleeve production Assembly Spouts production
LOCALISED SLEEVE AND SPOUT MANUFACTURING
ADVANTAGESOF LOCALISED PRODUCTION
▪ Lower lead time
▪ Lower transportation cost and duties
▪ Natural hedging for production cost
▪ Lower NWC due to reduced safety stock
1. Represents approx. 30% of spout productionSource: Company information
SIG Excellence System delivers world-class manufacturing
SIG EXCELLENCE SYSTEM
NOVEMBER 19 SIG COMBIBLOC - CMD63
OPERATIONAL EXCELLENCE Next level manufacturing
STRATEGY & KPI DEPLOYMENT
SafetyPlanned
MaintenanceQuality
MaintenanceLean Flow
Focused Improvement
Autonomous Maintenance
Innovation & Early Involvement
Training & Education
SIG EXCELLENCE
SAFETY, QUALITY, DISTRIBUTION, COST
Daily Management Improvement
Lean Administration
Leadership & Cultural Change CIS Organisation
SES with lean principles deeply embedded into plant operations model
The SES journey is tracked by annual maturity assessments
Balance between performance and practice
Basis for improvement roadmaps, standardisation and best practice sharing
PROVEN RAW MATERIALS STRATEGY WITH CYCLICAL RESILIENCE
NOVEMBER 19 SIG COMBIBLOC - CMD64
OPERATIONAL EXCELLENCE Next level manufacturing
KEY MATERIALS KEY THIRD PARTY SUPPLIERS SUPPLY DETAILS
Whakatane(internal)
• Largest raw material cost
• Historically experienced relatively stable pricing
• Long-term strategic partnerships with key suppliers
LPB(~49% of raw material spend)
• Pricing follows an index based pricing formula
• Variation in price based on balance of polymer production capacity and demand
• Hedging strategy in place
Polymers(~27% of raw material spend)
• The two main cost components are aluminium-metal and aluminium-conversion costs (50:50 split)
• Globally traded commodity with prices subject to global market factors
• Hedging strategy in place
Aluminium(~15% of raw material spend)
Source: 2018 data
DESIGNING FOR VALUE
NOVEMBER 19 SIG COMBIBLOC - CMD65
REDUCING MATERIAL INPUT WHILE IMPROVING QUALITY AND CUSTOMER VALUE
LDPE
Board
LDPE
Adhesive
Al foil
Adhesive
LDPE
mPE
LDPE
Board
Robust layer
Adhesive
Al foil
Adhesive
mPE
Robust layer
LDPE
LDPE layers of current structure
RS structure adaption
No changes of structure
RobustStructure (RS)
Incumbent SXStructure
Sealing
SX RS
REDUCED MATERIAL CONTENT
INCREASED ROBUSTNESS due to change of internal LDPE layers
IMPROVED ENVIRONMENTAL PERFORMANCE with improved CO2
footprint of up to 6%
KEEPING PROVEN PROPERTIES for barrier, stiffness, printability, opening, recyclability
Operational window
Security buffer
Operational window
Security buffer
Security bufferSecurity buffer
Tem
per
atu
re
OPERATIONAL EXCELLENCE Next level manufacturing
Source: Company information
CAPITAL EXPENDITUREWELL CONTROLLED
NOVEMBER 19 SIG COMBIBLOC - CMD66
OPERATIONAL EXCELLENCE Disciplined CAPEX approach
70 7360 57
PPE CAPEX (€M)
4.1% 4.2%3.6% 3.4%
TOTAL PPE CAPEX AS % REVENUE
▪Plant automation and digital manufacturing▪European plants transformation▪Robust sleeve structure
▪ Capacity expansion – Brazil, Asia, spouts▪ Proprietary quality assurance systems▪ SIG Tech Centre in China
SELECTED MAJOR PROJECTS
CONTINUED INVESTMENT TO SUPPORT GROWTH AND COST EFFICIENCY
2015 2016 2017 2018
ROBUST DEMAND FOR LIQUID DAIRY IN CHINA AND SOUTH EAST ASIA LEADING TO HIGH CAPACITY UTILISATION AT CHINESE AND THAI PLANTS
NEW PLANT TO BE CONSTRUCTED AT SUZHOU INDUSTRIAL PARK
OPERATIONAL AND OVERHEAD SYNERGIES WITH EXISTING PLANT
LOCATED CLOSE TO NEW SIG TECH CENTRE: COMPREHENSIVE ABILITY TO SERVE CUSTOMERS
TOTAL INVESTMENT €180M OVER SEVERAL YEARS
FINANCED WITHIN EXISTING CAPEX GUIDANCE
GOVERNMENT SUBSIDIES
ONSTREAM EARLY 2021
EXPANSION OF PLANT NETWORK IN ASIA PACIFICTO SUSTAIN FURTHER GROWTH IN THE REGION
Operational excellence Disciplined CAPEX approach
NOVEMBER 19 SIG COMBIBLOC - CMD67
OPPORTUNITY TO ACCELERATE PAYBACK WITH VISY ACQUISITION
NOVEMBER 1968 SIG COMBIBLOC - CMD
01
02
03
04
FINANCIAL PERFORMANCE
05
06
07
Financial resilience6.1
Financial outlook6.2
SAMUEL SIGRIST
CHIEF FINANCIAL OFFICER
14 years with SIG, CFO and Chairman of Middle East JV since 2017
PREVIOUS POSITIONS INCLUDEPresident & General Manager Europe (2013-2017)Director of Group Controlling & ReportingHead of Finance / CFO EuropeHead of Group Projects
SEIZING OPPORTUNITIES AND DRIVING GROWTHREVENUE GROWTH TARGET 4%-6%1
NOVEMBER 19 SIG COMBIBLOC - CMD70
FINANCIAL PERFORMANCE Financial resilience
Well positioned in aseptic carton market which is outperforming other substrates
Track record of share gain through differentiated technology and excellence in customer service
Strong presence in growth regions with favourable demographics and socio-economic trends
Consumer-led innovation meeting and anticipating rapidly evolving trends
State-of-the art production and filler flexibility enable SKU proliferation
Sustainability leader : a pioneer in sourcing and innovating for greener products
1. Core revenue growth at constant currency
Essential role in preserving food quality and safety
Long term customer relationships
Serving non-discretionary food and beverage categories
Complete solutions offering enabling customers to maximise efficiency and productivity
Proprietary differentiated technology
KEY ROLE IN FOOD & BEVERAGEVALUE CHAIN
NOVEMBER 19 SIG COMBIBLOC - CMD71
FINANCIAL PERFORMANCE Financial resilience
RAZOR / RAZORBLADE BUSINESS MODELGENERATING STABLE CASH FLOWS
NOVEMBER 19 SIG COMBIBLOC - CMD72
FILLERS 6% (OF TOTAL REVENUE2)
SERVICE 6%(OF TOTAL REVENUE2)
SLEEVES & CLOSURES 88% (OF TOTAL REVENUE2)
Year 0 Year 2 Year 4 Year 6 Year 8 Year 10
Attractive IRR
CU
M. C
AS
H F
LO
W1
FILLER INSTALLED
+
2-3 Year breakeven on new filler placements
FINANCIAL PERFORMANCE Financial resilience
Key criteria for investment decisions
DYNAMIC PAYBACK IRRGROSS PROFIT
BEFORE DEPRECIATION
Key filler placement models
SALE LEASESALE AND LEASE ARRANGEMENTS
Accounting treatment
Cost capitalised as fixed assets and depreciated over 10 years
Upfront cash recognised as deferred revenue
HIGH CUSTOMER RETENTION AND RECURRING SALES
1. Illustrative chart based on consistent gross margin throughout customer relationship2. Revenue split based on revenue generated through sale of system components and sleeves & closures for 2018
ABILITY TO GENERATE GROWTH AND INCREASE PROFITABILITY THROUGH THE CYCLE
NOVEMBER 19 SIG COMBIBLOC - CMD73
ADJ. EBITDA MARGIN 24% 29% 28% 23% 24% 24% 26% 25% 27% 27% 28%
ADJ. EBITDA – CAPEX2 MARGIN 16% 23% 19% 14% 16% 15% 18% 18% 18% 17% 19%
281 341 389 342 389 409 417 436 467 455 462
1.163 1.167
1.294 1.355
1.4831.546 1.568 1.563 1.590 1.644
2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A
1,4831,546
1,494 1,563
TOTAL REVENUE (€M)
CORE REVENUE1 (€M)
ADJ. EBITDA (€M)
CONSTANT CURRENCY
CORE REVENUE1 GROWTH
%
%
1,163 1,1671,294 1,355
1,568 1,590 1,644
FINANCIAL PERFORMANCE Financial resilience
5% 3
2008-18 REVENUE CAGR:
4%
2008-18 ADJ. EBITDA CAGR:
5%
2008-18 ADJ. EBITDA MARGIN EXPANSION:
~400BPS
ROCE:
>20%3
1. Core revenue represents the revenue to external customers and excludes (i) sales of laminated board (LB) to the Middle East Joint Venture and (ii) sales of folding box board (FBB) to third parties 2. Capex represents Net Capex calculated as Gross Capex less Upfront Cash 3. Post-tax ROCE presented above is calculated by adjusting pre-tax ROCE by applying a 30% REFERENCE TAX RATE to the pre-tax ROCE
2008 2014 2018
INCREASING FOCUS ON GROWTH REGIONS
NOVEMBER 19 SIG COMBIBLOC - CMD74
Financial performance Financial resilience
Core revenue: €1,163m Core revenue: €1,494m Core revenue: €1,644m
EMEA
77%
ASIA PACIFIC
17%
Non-EMEA23%
AMERICAS 6%
Adj. EBITDA: €281m
AMERICAS
17%
EMEA
54%ASIA PACIFIC
29%
Adj. EBITDA: €417m
Non-EMEA46%
EMEA
45%
ASIA PACIFIC
37%
AMERICAS
18%
Non-EMEA55%
Adj. EBITDA: €462m
CURRENCY AND RAW MATERIALS HEDGINGTO MANAGE VOLATILITY
NOVEMBER 19 SIG COMBIBLOC - CMD75
Further mitigation of transaction risk in EBITDA, on top of natural hedging
Systematic hedging of key currencies vs EUR: CNY, THB, BRL, USD
6-12 month rolling layered approach
Multi-year contracts for liquid paper board
12 month rolling hedges for aluminium and polymers covering ~80% of purchases
Financial performance Financial resilience
LOW BETA REFLECTS RESILIENCE OF BUSINESS
NOVEMBER 19 SIG COMBIBLOC - CMD76
SIG beta reflects strong non-cyclical resilience
Beta as per 01/11/2019
Packaging peers1 Industrial peers2
0.43 0.56 1.04
Low beta in line with attractive financial profile (top line growth, industry-leading margins)
Robust business model against a backdrop of stable end markets
Best-in-class defensiveness evidenced during the 2008-09 financial crisis
Financial performance Financial resilience
1. Packaging peers include Ball, Amcor, Crown, Sealed Air, Berry Global, Huhtamaki, Silgan, BillerudKorsnas, Aptar and Vidrala2. Industrial peers include: Atlas Copco, Kone, Schindler, Assa Abloy, Legrand, Geberit, Halma, Alfa Laval, Spirax-Sarco, GEA, VAT Group, Georg Fischer, Renishaw, Sulzer, Rotork, Belimo, SFS Group, IMA, Landis + Gyr,
Burckhardt, Bobst, Nordson and ITW
KEY FINANCIAL METRICS FOCUSED ON PROFITABLE GROWTH AND RETURN ON CAPITAL
NOVEMBER 19 SIG COMBIBLOC - CMD77
Core revenue
€1.6bnTarget4-6% growth p.a.at constant currency
Adjusted EBITDA margin
27.5%Target27-28% in 2019~29% mid-term
2018 data
Net CAPEX€143m (8.5% of revenue)Target8-10% of revenue
Net working capital
€114m (6.8% of revenue)Target5-7% of revenue mid-term
Adjusted net income1 €213m
ROCE Post tax 20.6% -Pre-tax: 29.4%
Leverage3.2xTargetTowards 2.0x mid-term
Adjusted EPS1
Free cash flow1
Cash conversion
€0.66
€212m
69%
Financial performance Financial resilience
1. Pro forma
LOW WORKING CAPITAL BASE FURTHER SUPPORTS CASH FLOW
NOVEMBER 19 SIG COMBIBLOC - CMD78
FINANCIAL PERFORMANCE Financial resilience
€m 2018 2017 2016
Inventory 144 122 126
Trade receivables 135 173 153
Trade payables (166) (153) (165)
NET WORKING CAPITAL 114 143 113
% REVENUE 6.8% 8.6% 6.6%
OTHER RECEIVABLES / PAYABLES1 (179) (133) (74)
OPERATING NWC (66) 10 39
% REVENUE (3.9%) 0.6 % 2.3%
1. Including accruals for volume bonuses to customers settled in following yearDifferences due to rounding
CAPITAL EXPENDITURE REMAINING WITHIN TARGET RANGE - CLEAR HURDLE RATES
NOVEMBER 19 SIG COMBIBLOC - CMD79
FINANCIAL PERFORMANCE Financial resilience
CAPEXOutlook
2015-18: Accelerated filler investment in Asia Pacific and Americas
2019-24: PPE investment in new China plant (front-loaded)
Net capex to remain within 8-10% of revenue range
CAPEX filler (net)
CAPEX PPE
Total CAPEX
(net) % of rev.
2015 2016 2017 2018
7.2% 9.2% 9.9% 8.5%
70.1
54.6
73.1
86.3
60.1
104.1
86.2
57.0
124.7
159.4164.2
143.2
ROCE AS REFERENCE POINTFOR INVESTMENT HURDLE RATES
NOVEMBER 19 SIG COMBIBLOC - CMD80
FINANCIAL PERFORMANCE Financial resilience
(in €M or %) 2018
Adjusted EBITDA 461.5
Dividends received from joint ventures (23.7)
Depreciation of PP&E (172.3)
ROCE EBITA 265.5
Current assets (excluding cash and cash equivalents) 407.3
Current liabilities (excluding interest-bearing liabilities) (574.3)
PP&E 1,068.8
Capital employed 901.8
Pre-tax ROCE 29.4%
ROCE tax rate of 30% 30.0%
Post tax ROCE1 20.6%
In 2018, pre-tax ROCE Outlook
Net PP&E will increase with investment in new plant
Reduction in net working capital targeted (in line with target of 5-7% of revenue)
Ongoing investment in fillers with rapid payback criterion maintained – cash flow break-even in 2-3 years
Business growth expected to more than compensate for growth in capital employed
1. Post-tax ROCE is calculated by adjusting pre-tax ROCE by applying a 30% tax rate, which management has determined reflects a reference tax rate to provide comparability between years
LEVERAGE
NOVEMBER 19 SIG COMBIBLOC - CMD81
FINANCIAL PERFORMANCE Leverage
€M
2019H1
2018A
CashSenior secured term loans
Lease liabilities1 Net total debtTOTAL NET LEVERAGE RATIO
79 1,577 45 1,543
157 1,592 26 1,462
3.3X
3.2X
STRONG CASH FLOW GENERATION
S&P RATING BB+MOODY’S UPGRADE IN OCTOBER 2019: FROM BA3 TO BA2
TARGETING INVESTMENT GRADE RATING
MID TERM LEVERAGE TARGET TOWARDS 2X
1. Lease liabilities include €14m related to the adoption of IFRS 16Differences due to rounding
CLEAR PRIORITIES FOR USE OF FUNDS
NOVEMBER 19 SIG COMBIBLOC - CMD82
FINANCIAL PERFORMANCE Use of funds
State of the art production facilities to meet demandNew filler placements
€99M (CHF 0.35 per share) paid in 2019
End-2018 net leverage ratio 3.2x: end-2019 expected to be slightly lower
Net capex to remain within 8–10% of revenue range
Target payout ratio:50–60% of adjusted net
income
Mid-term target towards 2×
Invest in the business Dividend payout Deleveraging
KEY INVESTMENT HIGHLIGHTS
NOVEMBER 19 SIG COMBIBLOC - CMD83
WRAP-UP Key investment highlights
WINNING BUSINESS MODEL ENABLING GROWTH
STRONG FINANCIAL PROFILE
Global leadership – strong #2 globallyA
Resilient growing end marketsB
Proprietary technology and engineering know-how
C
End to end solutions with value-adding support and service
D
Longstanding customer partnership modelE
Consumer-led innovationF
Best-in-class margins and strong cash flow generation
G
Multi-faceted growth strategyH
ATTRACTIVE INDUSTRY CHARACTERISTICS
THANKYOU
NOVEMBER 19