Berry Global Group, Inc. (NYSE:BERY) Q3 2022 Earnings Conference Call August 3, 2022 10:00 AM ET Company Participants Dustin Stilwell - Head of IR Thomas Salmon - CEO Mark Miles - CFO Conference Call Participants Ghansham Panjabi - Baird Kieran de Brun - Mizuho George Staphos - Bank of America Anthony Pettinari - Citi Angel Castillo - Morgan Stanley Kyle White - Deutsche Bank Adam Samuelson - Goldman Sachs Jeffrey Zekauskas - JPMorgan Michael Roxland - Truist Securities Arun Viswanathan - RBC Capital Market ...

Financial Performance - Net sales for the quarter reached $3.726 billion, a 1% increase from the prior quarter's $3.675 billion, primarily driven by increased selling prices of $301 million due to inflation [51]. - Operating income for the quarter was $336 million, a decrease of 2% from $343 million in the prior quarter, impacted by a $22 million unfavorable foreign currency effect [52]. - For the year-to-date (YTD), net sales totaled $11.074 billion, a 9% increase from $10.181 billion in the prior YTD, mainly due to increased selling prices of $1.6 billion [67]. - Operating income for the YTD decreased to $906 million from $980 million in the prior YTD, influenced by unfavorable foreign currency impacts and volume declines [67]. - Comprehensive income declined by $262 million, mainly due to a $340 million unfavorable change in currency translation [83]. Segment Performance - The Consumer Packaging North America segment reported net sales of $927 million, a 9% increase from $847 million in the prior quarter, attributed to increased selling prices of $80 million [55]. - The Health, Hygiene & Specialties segment experienced a net sales decline of 5%, down to $788 million from $828 million, primarily due to a 3% volume decline and unfavorable foreign currency changes [59]. - Net sales in the Health, Hygiene & Specialties segment increased by $80 million, or 3%, primarily due to a $227 million increase in selling prices, despite a 3% volume decline [78]. - Operating income in the Health, Hygiene & Specialties segment decreased by $137 million, or 42%, mainly due to a $121 million unfavorable impact from price cost spread and negative product mix [79]. - The Engineered Materials segment's net sales increased by 1% to $915 million, driven by increased selling prices of $81 million, despite a 4% volume decline [61]. - Net sales in the Engineered Materials segment grew by $271 million, or 11%, driven by a $507 million increase in selling prices, offset by a 5% volume decline [80]. - Operating income in the Engineered Materials segment increased by $6 million, or 3%, attributed to a $42 million favorable impact from price cost spread [81]. Cash Flow and Capital Management - For fiscal 2022, the company projects cash flow from operations of $1.5 billion and free cash flow of $750 million, assuming $750 million in capital spending [48]. - The company repurchased approximately 11 million shares for $637 million in fiscal 2022 year-to-date and plans to purchase at least $700 million of shares [48]. - Free cash flow for the year-to-date was $(211) million, with an outlook of $750 million for fiscal 2022 [88]. - Net cash from operating activities decreased by $567 million, primarily due to working capital inflation and timing of payables [86]. Interest and Currency Impact - Interest expense decreased by $45 million, or 18%, primarily due to refinancing activities and repayments of borrowings [82]. - A 10% decline in foreign currency exchange rates would have resulted in a $15 million unfavorable impact on net income for the three quarterly periods ended July 2, 2022 [97]. Supply Chain and Operational Challenges - The company expects ongoing supply chain challenges and will continue to work closely with suppliers and customers to mitigate impacts [47].

Fiscal 2022 – 2ndQuarter Results | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------------------------|---------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | Earnings Conference Call Supplement Thursday, May 5, 2022 @ Tom Salmon Chairman and CEO Mark Miles CFO | 10AM ET | | | | | | | | | | | | | | Safe Harbor Statements and Important Information Forward-Looking Statements Statements in this present ...

Financial Data and Key Metrics Changes - The company reported record net sales of $3.8 billion, which is 12% higher than the prior year and up 31% on a two-year basis [19][7] - Organic volumes were 2% lower than last year, in line with expectations, while operating EBITDA was down 6% from the prior year quarter [19][20] - Adjusted earnings per share increased by 21% on a two-year basis, driven by a focused strategy to invest organically in each business [21][19] Business Line Data and Key Metrics Changes - Consumer Packaging International division saw a 7% increase in revenue over the prior year and a 17% improvement on a two-year basis, with organic volume growth of 4% [24] - Consumer Packaging North America division delivered a 20% increase in revenue over the prior year and a 39% improvement on a two-year basis, including organic volume growth of 5% [25] - Health, Hygiene & Specialties division reported a 30% increase in revenue on a two-year basis, with organic volume growth of 5% [28] - Engineered Materials division experienced a 17% increase in revenue over the prior year and a 36% increase on a two-year basis, despite a modest volume decline [30] Market Data and Key Metrics Changes - The company noted strong demand from food and beverage markets, particularly for recyclable drink cups used by quick service restaurants [27] - In Europe, the war in Ukraine has caused energy instability, impacting input costs and leading to a slower recovery in the industrial complex compared to the U.S. [59] Company Strategy and Development Direction - The company is committed to driving shareholder value through share repurchases, having repurchased $300 million of shares in the quarter [8][9] - Investments are being made in faster-growing product categories and geographies, with a focus on sustainability-led opportunities [11][12] - The company aims to minimize product impact by ensuring that 100% of fast-moving consumer packaging products are reusable, recyclable, or compostable by 2025 [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering inflation and improving supply chain conditions in the second half of the year [55][33] - The company anticipates low single-digit organic volume growth in the second half of the year, coming off 4% organic volume growth in fiscal 2021 [34] - Management highlighted the importance of innovation and sustainability as key growth drivers [45][46] Other Important Information - The company has received an A- rating for leadership action on climate change from the Carbon Disclosure Project [51] - The company plans to invest over $100 million globally in its new Wave product line, focusing on sustainable dispensing solutions [48] Q&A Session Summary Question: Are there any major constraints impacting service levels for customers? - Management noted improvements in supply chains but highlighted specific challenges related to specialty chemicals and resin formats, particularly in Europe due to the war in Ukraine [59] Question: What is the expected net leverage by year-end and its impact on buybacks? - Management expects to operate within the targeted leverage range and indicated that cash flow generation typically occurs in the third and fourth quarters [62] Question: How will the company achieve low single-digit growth across segments? - Management expressed confidence in new product initiatives and strong demand in key markets, particularly in Consumer Packaging North America and Health, Hygiene & Specialties [66][68] Question: What is the company's approach to capital allocation and share repurchases? - Management emphasized the importance of balancing share repurchases with maintaining leverage within targeted ranges, taking advantage of current market dislocations [74][90] Question: How is the company addressing price cost assumptions and inflation? - Management is actively working on passing through inflationary costs and has implemented various mechanisms to address energy, freight, and labor costs [100][102]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 2, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 001-35672 BERRY GLOBAL GROUP, INC. A Delaware corporation 101 Oakley Street, Evansville, Indiana, 47710 (812) 424-2904 IRS emp ...

Financial Data and Key Metrics Changes - For Q1 2022, reported sales were $3.6 billion, with normalized sales 18% higher than the prior year and up 30% on a two-year basis [19] - Organic volumes were 3% lower than last year, but up 4% compared to pre-COVID levels two years ago [20] - Operating EBITDA was $457 million, down from the prior year due to product mix benefits and inflation, but increased 4% on a two-year basis [21] Business Line Data and Key Metrics Changes - **Consumer Packaging International**: Revenue increased by 7% year-over-year and 15% on a two-year basis, with organic volume growth of 3% [24] - **Consumer Packaging North America**: Revenue improved by 40% on a two-year basis, with organic volume growth of 6% and selling prices up over 30% [27] - **Health, Hygiene and Specialties**: Revenue increased by 36% on a two-year basis, with organic volume growth of 11% [28] - **Engineered Materials**: Revenue increased by 36% on a two-year basis, but volumes declined modestly due to supply chain challenges [30] Market Data and Key Metrics Changes - Modest positive volumes were seen in developed markets, with stronger growth in emerging markets like India and Eastern Europe [25] - Solid demand was noted in food, beverage, and healthcare markets, while industrial markets faced headwinds due to supply disruptions [27] Company Strategy and Development Direction - The company reaffirmed its fiscal 2022 outlook despite inflation and supply chain challenges, focusing on customer demands and innovative products [7][8] - A $1 billion share repurchase program was approved, reflecting confidence in future cash flow generation [11][12] - The company is committed to a balanced capital allocation strategy, investing in organic growth while returning capital to shareholders [12][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2022 targets, anticipating a stronger second half of the year as supply chains improve [33][52] - The company is optimistic about its long-term growth strategy, supported by a strong order backlog and planned organic growth initiatives [13][41] Other Important Information - The company aims for 30% circular content use across fast-moving consumer goods packaging by 2030, increasing from an original target of 10% [49][50] - Berry Global has received recognition for its sustainability efforts, including a leadership rating from the Carbon Disclosure Project [46][47] Q&A Session Summary Question: What gives confidence in achieving 2% volume growth for fiscal 2022? - Management indicated that investments in each business enable low single-digit growth, with a strong pipeline and backlog supporting confidence [56] Question: Will resin price declines benefit the March quarter? - Management anticipates being neutral on price-cost by no later than Q3 [58] Question: What is the impact of Omicron on the second quarter? - Management estimated a $10 million drag from Omicron-related absenteeism in Q2 [117] Question: How does the company view the demand for disposable wipes and e-commerce films? - Management believes e-commerce will continue to create growth opportunities, and demand for disinfectant wipes remains strong [106] Question: Is the company considering diversifying beyond plastics? - Management stated that while they see value in plastics, they will consider opportunities in other materials if they create value [109]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 1, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 001-35672 BERRY GLOBAL GROUP, INC. A Delaware corporation 101 Oakley Street, Evansville, Indiana, 47710 (812) 424-2904 IRS e ...

Financial Data and Key Metrics Changes - For Q4 2021, revenue increased by 22%, marking a record for any September quarter, with free cash flow reaching a record $512 million [13][6][7] - Fiscal year 2021 saw an 18% increase in revenue and a 20% increase in adjusted earnings per share, both annual records [7][16] - Operating EBITDA for the fiscal year increased by 3% to a record $2.224 billion, with adjusted earnings per share rising to $5.80 [16][15] Business Line Data and Key Metrics Changes - Consumer Packaging-International division revenue improved by 12% in Q4, driven by an 11% increase in selling prices, while volumes remained flat [17] - Consumer Packaging-North America division revenue rose by 31% in Q4, with a 2% decline in volumes due to supply chain challenges [19] - Health, Hygiene, & Specialties division revenue increased by 21% in Q4, with a 3% organic volume decline [21] - Engineered Materials division revenue was up 38% in Q4, with organic volume growth of 1% [23] Market Data and Key Metrics Changes - Overall demand for products remained solid, with certain markets recovering from pandemic headwinds [13] - Emerging markets, such as India and Eastern Europe, showed stronger growth compared to developed markets [17] Company Strategy and Development Direction - The company aims to improve its balance sheet and reduce leverage, ending the year at 3.8x net debt to adjusted EBITDA [8] - Focus on capitalizing on organic growth initiatives, including innovation and sustainability projects [9] - Commitment to sustainability with a goal of 30% circular plastic use across fast-moving consumer goods packaging by 2030 [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve consistent low single-digit growth, supported by a robust pipeline of new business [32][47] - Anticipation of improved supply chain reliability and cost recovery in fiscal 2022 [50][64] Other Important Information - The company has reduced net debt by over $1 billion in the last four quarters [16] - Significant investments in health care solutions and sustainable packaging are underway [34][36] Q&A Session Summary Question: Can you provide volume growth guidance for '22 across segments? - Management typically does not provide segment-specific volume guidance but expects all businesses to deliver low single-digit volume growth [48] Question: What are the resin assumptions for '22 and the outlook on inflation? - Current pricing for resin is assumed, with expectations for supply chain improvements throughout the fiscal year [49][51] Question: Why are there no specific targets for dividends or buybacks? - The company prioritizes organic growth investments and maintains a flexible capital allocation strategy [54][56] Question: What is the timeline for recovering supply chain constraints? - Management anticipates being price cost-neutral by the third quarter of fiscal year [63] Question: How does the company plan to achieve its circularity goals? - A combination of mechanically recycled resin, chemically recycled resin, and bioplastics will be utilized to meet the 30% goal by 2030 [65]

Financial Performance - Berry's FY21 revenue reached $13.9 billion[6], a 18% increase compared to FY20's $11.7 billion[17] - Adjusted EPS for FY21 was $5.80[17], a 20% increase from FY20's $4.86[17] - Berry's FY21 Adjusted EBITDA was $2.2 billion[6] - Berry's Q4 2021 revenue was $3.7 billion[7], up 22% from Q4 2020's $3.008 billion[14] - Free cash flow increased by 32% in Q4 2021[7] Segment Performance - Consumer Packaging – International revenue for FY21 was $4.242 billion[18], a 12% increase from FY20's $3.789 billion[18] - Consumer Packaging – North America revenue for FY21 was $3.141 billion[18], a 23% increase from FY20's $2.560 billion[18] - Health, Hygiene & Specialties revenue for FY21 was $3.158 billion[20], a 22% increase from FY20's $2.594 billion[20] - Engineered Materials revenue for FY21 was $3.309 billion[20], a 24% increase from FY20's $2.766 billion[20] Future Outlook - Berry provides FY22 Adjusted EPS guidance of $7.20 - $7.70[24] - Berry anticipates FY22 free cash flow to be between $900 million and $1 billion[24]

Sales Contribution - In fiscal 2021, Consumer Packaging International accounted for 30% of the company's consolidated net sales[12] - Consumer Packaging North America contributed 23% to the consolidated net sales in fiscal 2021[13] - Engineered Materials segment represented 24% of the consolidated net sales in fiscal 2021[14] - Health, Hygiene & Specialties accounted for 23% of the consolidated net sales in fiscal 2021[15] Financial Position - As of October 2, 2021, the company had $3.4 billion in term loans and an $850 million revolving credit facility with no borrowings outstanding[33] - A 0.25% change in LIBOR would increase the annual interest expense by $3 million on variable rate term loans[33] Foreign Currency Risk - A 10% decline in foreign currency exchange rates would have had a $44 million unfavorable impact on fiscal 2021 net income[104] - The company is party to cross-currency swaps to hedge a portion of foreign currency risk, maturing in May 2022 and June 2024[105] Sustainability Goals - The company targets 100% reusable, recyclable, or compostable packaging by 2025[22] - The company aims to achieve 30% circular materials by 2030 through increased use of circular materials and expanded recycling operations[22]