Ardagh Metal Packaging S.A. · NYSE:AMBP
Ardagh Metal Packaging — Q2 2023 Earnings Presentation
26 slides from Ardagh Metal Packaging's earnings presentation, Jul 27, 2023
Slide 1: Second Quarter 2023 Update
Ardagh Metal Packaging S.A. Second Quarter 2023 Update Oliver Graham CEO David Bourne CFO 27th July 2023 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This release contains "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts and a
Slide 3: Introduction
Introduction 3
Slide 4: Ardagh Metal Packaging at a glance
Ardagh Metal Packaging at a glance Revenue by destination Specialty mix • Ardagh Metal Packaging (AMP) (NYSE: AMBP) is a leading global 61% metal beverage can manufacturer 42% ~$4.6bn North America 48% • Geographically diversified - #2 player Q2-2023 Rest of World LTM in Europe and #3 player in Nort
Slide 5: Key messages
Key messages Can Global shipment growth of 5% in Q2 driven by developed markets ❑ Growth of 18% in North America (NA) and 2% in Europe. Increased promotional activity but below normal levels ❑ Adjusted EBITDA below expectations due to Brazil weakness, inventory actions in NA and unfavorable ends per
Slide 6: Volume snapshot
Volume snapshot Shipment growth of 5% in Q2 Market AMP performance Recent market trends Europe: Europe • Resilient non-alcoholic consumption, with +2% growth in Q2 particular strength in the energy segment • Beer softness, but strength in value brands • Weather-related boost into the summer period N
Slide 7: Drivers of secular growth remain intact
Drivers of secular growth remain intact North America Europe Brazil Traditional categories Category growth New categories (e.g., health & wellness) TCO(a) / convenience Pack advantages Imagery, quality, ‘coolness’ Plastics substitution Sustainability / Environmental / ecological benefit regulation R
Slide 8: Recent highlights
Recent highlights 8
Slide 9: Pivot to cash generation
Pivot to cash generation Investment program largely complete Significant capex reductions in 2023 and in 2024 Growth investment spend 2021-2024F ❑ Outstanding investment reflects the completion of projects and developing greater network flexibility ❑ Well positioned for strong investment-free growth
Slide 10: North America shipments growth
North America shipments growth Contracted capacity supports growth outlook Strong growth underpinned by investment program and AMP’s exposure to high-growth categories customer mix ❑ Growth investment program drives increased volume through multi-year agreements ❑ Overall volume weighted to higher g
Slide 11: Progressing our sustainability agenda
Progressing our sustainability agenda Continued momentum in the quarter 2022 Green Bond raise – use of proceeds ❑ Green projects align financial strategy with sustainability strategy Recognition of sustainability leadership through ASI certification ❑ Certification awarded to Manaus beverage ends pr
Slide 12: Q2 Financial review
Q2 Financial review 12
Slide 13: Key financial metrics
Key financial metrics Second quarter $m except per share data Three months ended Three months ended Change Change June 30, 2023 June 30, 2023 reported constant currency Revenue 1,255 1,303 (4%) (4%) (Loss)/profit for the period (10) 100 Adjusted EBITDA 151 181 (17%) (17%) (Loss)/earnings per share (
Slide 14: Financial bridge
Financial bridge Three months ended June 30, 2023 Revenue $m Europe Americas Group Revenue 2022 533 770 1,303 At constant currency: Organic 21 (69) (48) ➢ Group revenue decline of 4% and FX translation 1 (1) — Adjusted EBITDA decreased by 17% Revenue 2023 555 700 1,255 ➢ Americas revenue declined by
Slide 15: Net debt and liquidity
Net debt and liquidity Strong liquidity and maturity profile At June 30, 2023 Trailing leverage $m Senior Secured Green and Senior Green Notes 3,282 ➢ No bonds maturing before 2027 Lease obligations/other borrowings/credit lines 502 and a weighted average maturity of 5.5 years, with all green bond T
Slide 16: Fiscal 2023 guidance
Fiscal 2023 guidance Resumption of earnings growth in H2 Envi ronmental Global shipments growth of a mid-single digit % ❑ Strong shipments growth in NA of a high-single digit % driven by contracted capacity and resilient growth in Europe ❑ Flat shipments in Brazil due to challenging market condition
Slide 17: Investment highlights
Investment highlights 17
Slide 18: Business strengths
Business strengths Leading pure play global beverage can company focused on sustainable products • Scale network player operating in a long-term growth industry with defensive qualities • Geographically diversified - #2 player in Europe and #3 player in North America and Brazil • Experienced managem
Slide 19: Summary historic financials
Summary historic financials Adj. EBITDA less maintenance Revenue ($ billion) Adjusted EBITDA ($ million) capex & cash conversion ratio 5.0 700 662 700 90% 625 580 600 600 545 4.5 519 503 85% 500 500 86.7% 4.0 400 400 81.7% 80% 300 82.6% 300 3.5 79.0% 200 200 75% 3.0 100 100 2.5 0 0 70% 2018 2019 202
Slide 20: Supplemental information
Supplemental information 20
Slide 21: Reconciliation of (loss)/profit to Adjusted profit
Reconciliation of (loss)/profit to Adjusted profit Three months ended June 30, 2023 2022 $m $m (Loss)/profit for the period as presented in the income statement (10) 100 Less: Dividend on preferred shares (6) — (Loss)/profit for the period used in calculating earnings per share (16) 100 Exceptional
Slide 22: Reconciliation of (loss)/profit to Adjusted EBITDA
Reconciliation of (loss)/profit to Adjusted EBITDA Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 $m $m $m $m (Loss)/profit for the period (10) 100 (11) 157 Income tax (credit)/charge (2) 12 (11) 19 Net finance expense/(income) 23 (40) 46 (63) Depreciation and amortization
Slide 23: Reconciliation of Adjusted EBITDA to Adjusted free cash flow
Reconciliation of Adjusted EBITDA to Adjusted operating cash flow and Adjusted free cash flow Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 $m $m $m $m Adjusted EBITDA 151 181 281 326 Movement in working capital 171 (70) (175) (395) Maintenance capital expenditure (26) (2
Slide 24: Sustainability strategy
Sustainability strategy Built on three key pillars Emissions & ecology Social Minimize our GHG emissions Minimize our ecological impact Our people & communities • Align with Science-Based Target Initiative • Achieve excellence in water management Our People: • Achieve 100% renewable electricity • Pr
Slide 25: Sustainability leadership recognition
Sustainability leadership recognition Leadership ratings of A for Supplier Engagement and A- rating for Water Management from global not-for-profit Awarded the highest platinum rating(i) by CDP and a B rating for Climate Change EcoVadis for Sustainability (i) Ardagh Group rating 25
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