Ardagh Metal Packaging S.A. · NYSE:AMBP
Ardagh Metal Packaging — Q4 2022 Earnings Presentation
30 slides from Ardagh Metal Packaging's earnings presentation, Feb 23, 2023
Slide 1: Fourth Quarter 2022 Update
Ardagh Metal Packaging S.A. Fourth Quarter 2022 Update Oliver Graham CEO David Bourne CFO 23rd February 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 • Ardagh Metal Packaging (AMP)(NYSE: AMBP) is a leading global beverage can manufacturer • Geographically diversified - #2 player in Europe and #3 player in North America and Brazil • 24 strategically located production facilities serving a diversified mix of custo
Slide 5: Key messages
Key messages Modest volume growth in Q4 in the face of challenging market conditions ❑ Due to higher retail prices in core categories, further weakness in Hard Seltzers and a softer Brazil market ❑ Secular growth trends remain intact, evident in pack-mix trends and innovation favouring the beverage
Slide 6: Volume snapshot
Volume snapshot Shipment growth of 1% in Q4 and 5% in 2022 Market AMP performance Recent market trends • Resilient non-alcoholic consumption +1% growth in Q4 Europe • Some softness in the beer market, reflecting consumer inflationary pressures +4% growth in 2022 • Export market to slowly recover Nor
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: Strong foundation for growth
Strong foundation for growth In 2023 and beyond Investments – Rephased investment program to complete in H1 2023 and drive above market growth and benefit from the secular growth outlook Capacity management - Near-term curtailment to maintain supply/demand discipline and fixed cost absorption to imp
Slide 10: While remaining disciplined on capacity
While remaining disciplined on capacity Growth investment plan now well advanced Industry growth by beverage packaging type: 2022-2025 CAGR • The majority of our growth plan has now been spent with growth investment expected to reduce in 4% 2023 and significantly again in 2024 3% 2% • Well positione
Slide 11: Progressing our sustainability agenda
Progressing our sustainability agenda Successful conclusion to a year of progress * * * As part of Ardagh Group 11
Slide 12: European progress
European progress Accelerated rebalancing of the energy market Wind & Solar surpass coal & gas as a % of electricity generation • Gas storage levels remain strong with winter 2022 25% successfully navigated, helped by favourable weather 20% policy actions and lower demand 15% • Significant reduction
Slide 13: European energy
European energy Improved outlook supports margin recovery Dutch TTF Gas Monthly Futures €/mwh • Successful conclusion to negotiations with 250. 31-Dec-22 30-Sep-22 21-Feb-23 customers on the pass-through of direct energy 200. costs 150. • Well hedged for 2023 and continue to build out future 100. he
Slide 14: Q4 Financial review
Q4 Financial review 14
Slide 15: Key financial metrics
Key financial metrics Fourth quarter $m except per share data Three months ended Three months ended Change Change December 31, 2022 December 31, 2021 reported constant currency Revenue 1,076 1,087 (1%) 5% Profit for the period 12 16 Adjusted EBITDA 159 165 (4%) 1% Earnings per share 0.02 0.03 Adjust
Slide 16: Financial bridge
Financial bridge Three months ended December 31, 2022 Revenue $m Europe Americas Group Revenue 2021 455 632 1,087 At constant currency: Organic 46 6 52 ➢ Group revenue growth of 5% and Adjusted EBITDA increased by FX translation (63) — (63) 1% Revenue 2022 438 638 1,076 ➢ Americas revenue growth of
Slide 17: Net debt and liquidity
Net debt and liquidity Strong liquidity and maturity profile At December 31, 2022 Trailing leverage ➢ No bonds maturing before $m 2027 and a weighted average Senior Secured Green and maturity of 5.9 years 3,231 Senior Green Notes (i) Lease obligations/other ➢ All green bond finance is on 361 borrowi
Slide 18: Fiscal 2023 guidance
Fiscal 2023 guidance Global shipments growth of a mid-high single digit % o Industry growth expected in each of our core markets o Positioned to outperform, supported by our investment program Adjusted EBITDA growth of the order of 10%, with growth weighted towards the second half (i) o Margin impro
Slide 19: Investment highlights
Investment highlights 19
Slide 20: Business strengths
Business strengths Leading pure play global beverage can company focused on sustainable products • Scale network player operating in a long-term growth industry with defensive qualities • Geographically diversified - #2 player in Europe and #3 player in North America and Brazil • Experienced managem
Slide 21: Proven delivery & cash generation
Proven delivery & cash generation Revenue ($ billion) Adjusted EBITDA ($ million) Adj. EBITDA less maintenance capex & cash conversion ratio 5.0 700 700 4.7 662 650 600 574 4.5 516 600 625 500 4.1 445 550 545 4.0 400 519 86.7% 503 82.6% 500 81.7% 3.5 300 3.5 3.3 3.3 450 200 400 3.0 350 100 2.5 300 0
Slide 22: Supplemental information
Supplemental information 22
Slide 23: Key financial metrics
Key financial metrics Full year $m except per share data Twelve months ended Twelve months ended Change Change December 31, 2022 December 31, 2021 reported constant currency Revenue 4,689 4,055 16% 22% Profit/(loss) for the year 237 (210) Adjusted EBITDA 625 662 (6%) (1%) Earnings/(loss) per share 0
Slide 24: Financial bridge
Financial bridge Year ended December 31, 2022 Revenue $m Europe Americas Group Revenue 2021 1,838 2,217 4,055 At constant currency: Organic 335 509 844 ➢ Group revenue growth of 22% and Adjusted EBITDA decreased by FX translation (210) — (210) 1% Revenue 2022 1,963 2,726 4,689 ➢ Americas revenue gro
Slide 25: Reconciliation of profit to Adjusted profit
Reconciliation of profit to Adjusted profit Three months ended Three months ended December 31, 2022 December 31, 2021 $m $m Profit for the period as presented in the income statement 12 16 Less: Dividend on preferred shares (5) - Profit for the period used in calculating earnings per share 7 16 Exce
Slide 26: Reconciliation of profit/(loss) to Adjusted EBITDA
Reconciliation of profit/(loss) to Adjusted EBITDA Three months ended December 31, Year ended December 31, 2022 2021 2022 2021 $m $m $m $m Profit/(loss) for the period 12 16 237 (210) Income tax (credit)/charge (1) (2) 19 22 Net finance 24 46 (80) 235 expense/(income) Depreciation and 98 89 359 343
Slide 27: 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 December 31, Year ended December 31, 2022 2021 2022 2021 (i) $m $m $m $m Adjusted EBITDA 159 165 625 662 Movement in working capital 243 209 (202) 16 Maintenance capital expenditure (35)
Slide 28: Sustainability strategy
Sustainability strategy Built on three key pillars Emissions & ecology Social Minimize our Minimize our Our people & GHG emissions ecological impact communities • Achieve 100% renewable electricity • Reduce water intensity by 20% • Engage proactively with local • Implement energy efficiency projects
Slide 29: Sustainability leadership recognition
Sustainability leadership recognition • Leadership A- rating from global not-for-profit CDP • Awarded the highest platinum rating (i) for Water Management and a B rating for Climate by EcoVadis for Sustainability Change (i) Ardagh Group rating 29
Slide 30: ArdaghMetalPackaging hy
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