Silgan Holdings Inc. · NYSE:SLGN
Silgan — Investor Presentation (March 2023)
37 slides from Silgan's investor presentation, March 2023
Slide 1: Silgan Holdings Inc. Investor Relations Presentation
WELCOME Silgan Holdings Inc. Investor Relations Presentation March 2023
Slide 2: Presentation Notes
PRESENTATION NOTES This presentation, and the statements made during the course of this presentation, are not intended to and do not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities. Statements made in or
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Generally accepted accounting principles in the United States are commonly referred to as GAAP. A non-GAAP financial measure is generally defined as a financial measure that purports to measure financial performance, financial position or liquidity but excludes or include
Slide 4: Investment Overview
Investment Overview Defensive end markets with portfolio evolution to organic growth Meaningful capital deployment opportunity with strong track record creating value Product offering strategically positioned to benefit from sustainability trends in packaging 4 ©2023 Silgan Holdings Inc. All Rights
Slide 5: $6.4B Sustainable Rigid Packaging Company for Consumer Goods
$6.4B¹ Sustainable Rigid Packaging Company for Consumer Goods Health Other Care 1% 3% Personal Dispensing ROW Care & & Specialty Closures 9% Beauty 49% 12% Home Care, 36% Lawn & Europe Garden Custom 19% 6% End Food Segments 11% Containers Beverage Geography Markets 52% 13% 9% 2022 Revenue 53% USA Pe
Slide 6: Unique Business Model
Unique Business Model Our cash deployment model gives us the flexibility to selectively grow and create Proven leadership team franchise positions in the packaging industry Focused segment management Customer-focused Metric-driven culture Track record of value creation Disciplined deploy
Slide 7: Cornerstone Business Strategy
Cornerstone Business Strategy Build and enhance Deploy strong Earnings growth franchise positions Free Cash Flow and value creation Sustainable competitive Growth through Top tier earnings advantage targeted acquisitions growth in Packaging sector Supply best value in Other cash deployment
Slide 8: Leading Positions in Our Markets
Leading Positions in Our Markets SEGMENT OUR OUTLOOK Dispensing & Specialty Closures Leading positions in: • Global trigger sprayers Dispensing packaging solutions growth drives mix • Global dispensing pumps and margin enhancement • Global metal closures for food and beverage • North American plas
Slide 9: Sustainability Highlights
Sustainability Highlights Product Highlights – ~95% of the products our company produces are recyclable • Metal can and closures highlights: • Plastic closures, bottles, and dispensers highlights: • 100% recyclable • Products provide unique attributes only available in plastics • Infinitely recyclab
Slide 10: Dispensing and Specialty Closures
DISPENSING AND SPECIALTY CLOSURES ©2023 Silgan Holdings Inc. All Rights Reserved.
Slide 11: Dispensing & Specialty Closures
Dispensing & Specialty Closures Sales: $2.3B Adj. Segment EBITDA: $458M Strong Market Positions with Attractive Growth Opportunities Other 3% Health Care Personal ROW Care, Plastic 4% 14% Fragrance & 21% Beauty Food 29% 27% End USA Products Dispensing Geography Markets 53% 51% Europe Home Care, 35%
Slide 12: Dispensing & Specialty Closures: Competitively Advantaged Growth Business
Dispensing & Specialty Closures Competitively Advantaged Growth Business 2,500 500 Adjusted Segment EBITDA 2,000 400 Segment Sales ($ in millions) ($ in millions) 1,500 300 1,000 200 500 100 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Segment Sales Adjusted Segment EBITDA • Engineered disp
Slide 13: Broad Portfolio of Products in Diverse End Markets
Broad Portfolio of Products in Diverse End Markets Metal Plastic Beverage Plastic Dairy Dispensing Closures Closures Closures Manufacturing Injection Molding, Product Injection & Compression Injection & Compression Coating, Metal Forming Technology Assembly Molding Molding Segment % 53% 26% 11% 10%
Slide 14: Dispensing & Specialty Closures: Advancements in Sustainability
Dispensing & Specialty Closures Advancements in Sustainability Fully Recyclable Fully Recyclable Post-Consumer Recycled (PCR) • Fully recyclable metal closures for glass and metal containers • Helping customers meet their sustainability goals (recyclability • Market leading PCR dispensing products p
Slide 15: Metal Containers
METAL CONTAINERS ©2023 Silgan Holdings Inc. All Rights Reserved.
Slide 16: Metal Containers
Metal Containers Sales: $3.4B Adj. Segment EBITDA: $359M Most Sustainable Food Package Other Other 9% 14% Europe 12% Protein 10% Protein Pet Food End Markets Pet Food 18% End Markets 45% Geography Soup 48% (Intl.) (US) 15% Vegetable Vegetable North America & Fruit & Fruit 88% 18% 23% 2022 Volume (Un
Slide 17: Metal Containers: Portfolio Evolving Towards Growth
Metal Containers Portfolio Evolving Towards Growth 33% of 48% of total total volume volume 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Pet Protein Vegetable Other Soup • Market leader in North American food cans • Pet food accounts for approximately 50% of volume • Contracts: 90% long-term con
Slide 18: Sustainability Advantaged Package
Sustainability Advantaged Package Infinitely recyclable package Highest recycling rate of any food or beverage package in U.S. – 58% Food Cans contain as much as 77% recycled content • Drastically reduced carbon footprint Shelf stable food cans preserve food for years with no refrigeration
Slide 19: Custom Containers
CUSTOM CONTAINERS ©2023 Silgan Holdings Inc. All Rights Reserved.
Slide 20: Custom Containers
Custom Containers Sales: $723M Adj. Segment EBITDA: $122M Competitive Advantage through Service Model Pet Food ROW 10% 1% Canada Beauty & 14% Personal Care 11% Food End 45% Geography Consumer Markets Health 17% USA Home Care 85% 17% 2022 Revenue 2022 Revenue >20 15 8 countries US plants Canada plant
Slide 21: Custom Containers: Transitioning to Growth
Custom Containers Transitioning to Growth 140 20% 18% Adjusted Segment EBITDA Adjusted Segment EBITDA 120 16% 100 14% ($ in millions) 80 12% Margin 10% 60 8% 40 6% 4% 20 2% 0 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Adjusted Segment EBITDA Adjusted Segment EBITDA Margin • Service model -
Slide 22: Diverse End Markets With Large Customers
Diverse End Markets With Large Customers Beauty & Consumer Food Home Care Personal Care Health Pet Food Manufacturing Thermoform, Blow Mold, Blow Mold, Injection Mold Blow Mold, Injection Mold Blow Mold, Injection Mold Thermoform Technology Injection Mold Segment % 45% 17% 17% 11% 10% (2022 Revenue)
Slide 23: Custom Containers: Sustainability in Plastic Packaging
Custom Containers Sustainability in Plastic Packaging • Focus on multi-serve products where resin-based packaging • Strategic alliances to promote responsible plastic use, provides unique utility (weight, safety, flexibility, etc.) increase recycling rates and reduce waste: • Recyclability: 99% of C
Slide 24: Financial Overview
FINANCIAL OVERVIEW ©2023 Silgan Holdings Inc. All Rights Reserved.
Slide 25: Silgan Financial Attributes
Silgan Financial Attributes Consistent & sustainable growth Strong free cash flow generation Disciplined capital deployment Balanced view of shareholder value creation Focus on efficiency of balance sheet Strong returns profile 25 ©2023 Silgan Holdings Inc. All Rights Reserved.
Slide 26: Strong Recent and Long-Term Financial Performance
Strong Recent and Long-Term Financial Performance CAGR = 11.2% CAGR = 10.5% Adjusted EBITDA $5.00 Free Cash Flow Per $1,000 Diluted Share $4.00 $800 $3.00 (millions) $600 $2.00 $400 $200 $1.00 $0 $0.00 CAGR = 19.3% CAGR = 12.2% $4.50 Adjusted Net Income Per $0.75 Dividends Per $4.00 $3.50 Diluted Sh
Slide 27: High Free Cash Flow Conversion
High Free Cash Flow Conversion $500 $1,000 $450 $900 (Free Cash Flow & Capex, $ in millions) $400 $800 Since 2017: (Adjusted EBITDA, $ in millions) $350 $700 • Free Cash Flow conversion of Adjusted $300 $600 EBITDA has averaged 49% $250 $500 • Adjusted EBITDA has grown 70% $200 $400 $150 $300 • Cape
Slide 28: Disciplined & Balanced Capital Deployment Strategy
Disciplined & Balanced Capital Deployment Strategy $1,400 180% 160% $1,200 140% Total Shareholder Return $1,000 120% Aggregate spend 2013 – 2022: $800 • Acquisitions: $3.0B (millions) 100% $600 80% • Capital Expenditures: 60% $1.9B / 4.3% of sales $400 40% • Dividends: $479M $200 20% • Share Repurch
Slide 29: Efficient Balance Sheet
Efficient Balance Sheet 4.5x Total Net Leverage Ratio 4.0x 4.0x 3.5x 3.5x 3.5x 3.4x 3.3x 3.2x • Management is committed to 3.0x 2.9x 2.9x 3.0x reducing debt via free cash flow 2.6x generation 2.5x • Consistent track record of 2.0x $746M in deleveraging post-acquisition $1B Acquisitions: Acquisition:
Slide 30: Appendix A: Reconciliation of Non-GAAP Financial Measures
Appendix A: Reconciliation of Non-GAAP Financial Measures ©2023 Silgan Holdings Inc. All Rights Reserved.
Slide 31: Appendix A: Total Company Adjusted EBITDA Reconciliation
APPENDIX A Silgan Holdings Inc. Reconciliation of Total Company Income Before Interest and Income Taxes to EBITDA and Adjusted EBITDA ($ in millions) Year Ended December 31, Total Company 2017 2018 2019 2020 2021 2022 Income before interest and income taxes $ 357.0 $ 412.1 $ 359.5 $ 512.4 $ 576.1 $
Slide 32: Appendix A: Segment Adjusted EBITDA Reconciliation
APPENDIX A Silgan Holdings Inc. Reconciliation of Segment Income to Segment EBITDA and Adjusted Segment EBITDA ($ in millions) Year Ended December 31, 2022 Dispensing & Specialty Metal Custom Segment Total Closures Containers Containers Total Corporate Company Segment Income, as reported $ 323.0 $ 2
Slide 33: Appendix A: Dispensing and Specialty Closures Reconciliation
APPENDIX A Silgan Holdings Inc. Reconciliation of Dispensing and Specialty Closures Segment Income to Dispensing and Specialty Closures Segment EBITDA and Dispensing and Specialty Closures Adjusted Segment EBITDA ($ in millions) Year Ended December 31, Dispensing and Specialty Closures Segment 2013
Slide 34: Appendix A: Custom Containers Reconciliation
APPENDIX A Silgan Holdings Inc. Reconciliation of Custom Containers Segment Income to Custom Containers Segment EBITDA and Custom Containers Adjusted Segment EBITDA ($ in millions) Year Ended December 31, Custom Containers Segment 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sales $ 647.0 $ 659
Slide 35: Appendix A: Free Cash Flow Reconciliation
APPENDIX A Silgan Holdings Inc. Reconciliation of Net Cash Provided by Operating Activities and Net Cash Provided by Operating Activities Per Diluted Share to Free Cash Flow and Free Cash Flow Per Diluted Share ($ in millions, except per share data) Year Ended December 31, 2017 2018 2019 2020 2021 2
Slide 36: Appendix A: Adjusted Net Income Per Diluted Share Reconciliation
APPENDIX A Silgan Holdings Inc. Reconciliation of Net Income Per Diluted Share to Adjusted Net Income Per Diluted Share Year Ended December 31, 2017 2018 2019 2020 2021 2022 Net Income per diluted share as reported $ 2.42 $ 2.01 $ 1.74 $ 2.77 $ 3.23 $ 3.07 Adjustments Acquired intangible asset amort
Slide 37: Thank You
THANK YOU www.silganholdings.com