Financial Performance - Net revenue increased by 29.1% on a constant currency basis, reaching $87.5 million in Q2 2021 compared to $67.8 million in Q2 2020[7] - Adjusted EBITDA increased by 34.7% year-over-year to $25.6 million (29.3% margin) from $19.0 million in Q2 2020[7] - Paper revenue for the three months ended June 30, 2021, was $73.5 million, compared to $52.9 million for the three months ended June 30, 2020[17] - Machine lease revenue for the three months ended June 30, 2021, was $12.4 million, compared to $9.4 million for the three months ended June 30, 2020[17] Regional Performance - North America revenue increased by 26.6% year-over-year[7] - Europe/APAC revenue increased by 30.8% on a constant currency basis[7] Capitalization and Liquidity - Completed a $110 million equity offering to reduce debt, increase liquidity, and improve float[8, 15] - Repaid $20.9 million of debt[8] - Finished Q2 2021 with a strong cash position of $125.3 million and full availability on the revolver[8, 15] System Placement - Machine placement increased by 12.9% year-over-year to more than 123,600[7]

[Part I – Financial Information](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) This section provides the unaudited condensed consolidated financial statements, management's discussion and analysis, and disclosures on market risk and internal controls [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows, with detailed notes on accounting policies and financial components Financial Performance Overview | Financial Metric | Three Months Ended June 30, 2021 (Millions USD) | Three Months Ended June 30, 2020 (Millions USD) | Six Months Ended June 30, 2021 (Millions USD) | Six Months Ended June 30, 2020 (Millions USD) | | :--- | :--- | :--- | :--- | :--- | | **Net Revenue** | $90.0 million | $66.1 million | $177.7 million | $129.5 million | | **Gross Profit** | $35.7 million | $27.0 million | $72.0 million | $53.8 million | | **Income (Loss) from Operations** | $1.1 million | $(2.1) million | $8.8 million | $(2.7) million | | **Net Income (Loss)** | $(5.2) million | $(8.5) million | $1.1 million | $(12.1) million | | **Diluted EPS** | $(0.07) | $(0.12) | $0.01 | $(0.17) | Consolidated Balance Sheet Highlights | Balance Sheet Item | June 30, 2021 (Millions USD) | December 31, 2020 (Millions USD) | | :--- | :--- | :--- | | **Cash and cash equivalents** | $125.3 million | $48.5 million | | **Total Assets** | $1,222.2 million | $1,133.5 million | | **Long-term debt** | $408.1 million | $432.7 million | | **Total Liabilities** | $592.9 million | $610.6 million | | **Total Shareholders' Equity** | $629.3 million | $522.9 million | Consolidated Cash Flow Summary | Cash Flow Activity | Six Months Ended June 30, 2021 (Millions USD) | Six Months Ended June 30, 2020 (Millions USD) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $30.8 million | $22.3 million | | **Net cash used in investing activities** | $(26.8) million | $(18.6) million | | **Net cash provided by (used in) financing activities** | $73.2 million | $(0.7) million | | **Net Increase in Cash and Cash Equivalents** | $76.8 million | $2.9 million | [Note 4 — Segment and Geographic Information](index=12&type=section&id=Note%204%20%E2%80%94%20Segment%20and%20Geographic%20Information) The company operates as a single reportable segment, with Europe/Asia contributing significantly more revenue and gross profit than North America in the first six months of 2021 Revenue by Geography | Revenue by Geography | Six Months Ended June 30, 2021 (Millions USD) | Six Months Ended June 30, 2020 (Millions USD) | | :--- | :--- | :--- | | North America | $63.8 million | $55.3 million | | Europe/Asia | $113.9 million | $74.2 million | | **Total Net Revenue** | **$177.7 million** | **$129.5 million** | [Note 7 — Long-Term Debt](index=15&type=section&id=Note%207%20%E2%80%94%20Long-Term%20Debt) The company's long-term debt primarily consists of dollar and euro term facilities, with a $20.9 million prepayment in June 2021 reducing total debt to $409.2 million - In June 2021, the company prepaid **$20.9 million** of principal on its First Lien Dollar Term Facility[68](index=68&type=chunk) - An **$8.2 million** exit payment, triggered by a lower leverage ratio at year-end 2020, was paid to lenders in the first quarter of 2021[80](index=80&type=chunk) [Note 15 — Shareholders' Equity](index=29&type=section&id=Note%2015%20%E2%80%94%20Shareholders%27%20Equity) Shareholders' equity significantly increased due to a May 2021 public offering raising $103.4 million and the conversion of 3.6 million Class C shares to Class A - In May 2021, the company completed an equity offering of approximately **5.3 million** shares of Class A common stock, generating net proceeds of **$103.4 million**[129](index=129&type=chunk) - A shareholder converted **3.6 million** Class C shares into **3.6 million** Class A shares in April 2021[129](index=129&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting significant revenue growth driven by e-commerce demand, liquidity improvements from an equity offering, and the impact of rising costs - The installed base of protective packaging systems grew **12.9%** year-over-year to **123,600 units** as of June 30, 2021, driven by a **14.1%** increase in Void-fill machines and a **29.6%** increase in Wrapping machines[157](index=157&type=chunk) - The company anticipates pressure on gross margins due to rising costs for paper and freight, which it will attempt to pass on to customers[157](index=157&type=chunk) - The COVID-19 pandemic has boosted demand from e-commerce end-users, offsetting reductions in other industries, though social distancing measures have delayed some new packaging system installations[155](index=155&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) The company achieved strong year-over-year growth, with Q2 2021 net revenue increasing 36.2% to $90.0 million and H1 2021 net income reaching $1.1 million Three Months Ended June 30 Financial Performance | Metric | Three Months Ended June 30, 2021 (Millions USD) | Three Months Ended June 30, 2020 (Millions USD) | % Change | | :--- | :--- | :--- | :--- | | **Net Revenue** | $90.0 million | $66.1 million | +36.2% | | North America Revenue | $35.7 million | $28.2 million | +26.6% | | Europe/Asia Revenue | $54.3 million | $37.9 million | +43.3% | | **Net Loss** | $(5.2) million | $(8.5) million | N/A | Six Months Ended June 30 Financial Performance | Metric | Six Months Ended June 30, 2021 (Millions USD) | Six Months Ended June 30, 2020 (Millions USD) | % Change | | :--- | :--- | :--- | :--- | | **Net Revenue** | $177.7 million | $129.5 million | +37.2% | | North America Revenue | $63.8 million | $55.3 million | +15.4% | | Europe/Asia Revenue | $113.9 million | $74.2 million | +53.5% | | **Net Income (Loss)** | $1.1 million | $(12.1) million | N/A | - Constant currency AEBITDA, a non-GAAP measure, increased by **34.7%** to **$25.6 million** for Q2 2021 and by **44.5%** to **$53.6 million** for H1 2021, compared to the respective prior-year periods[180](index=180&type=chunk)[194](index=194&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly improved, with cash and cash equivalents rising to $125.3 million due to a $103.4 million equity offering and increased operating cash flow - Cash and cash equivalents stood at **$125.3 million** as of June 30, 2021[206](index=206&type=chunk) - The May 2021 Equity Offering generated net proceeds of **$103.4 million**, which were used for a **$20.9 million** debt prepayment and a **$70.0 million** investment in a money market fund[206](index=206&type=chunk) - Total debt decreased to **$414.8 million** as of June 30, 2021, from **$439.8 million** at December 31, 2020[207](index=207&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies interest rate, foreign currency, and commodity price risks, with foreign currency risk from Euro exposure being significant and unhedged - A hypothetical **100 basis point** change in interest rates would have impacted cash interest expense by **$3.3 million** for the first six months of 2021[232](index=232&type=chunk) - For H1 2021, **67.0%** of net revenue was denominated in currencies other than the U.S. dollar, primarily the Euro, where a **10%** change in the Euro/USD exchange rate would have impacted reported net revenue by approximately **$11.4 million**[235](index=235&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of the end of the period[238](index=238&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[239](index=239&type=chunk) [Part II – Other Information](index=55&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) This section covers legal proceedings, risk factors by reference to prior filings, and a list of exhibits filed with the quarterly report [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no legal proceedings for the period - None[240](index=240&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) The report refers to the detailed discussion of risk factors in the company's Annual Report on Form 10-K for the year ended December 31, 2020, without introducing new ones - There are no material changes from the risk factors previously disclosed in the company's 2020 Form 10-K[241](index=241&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, incentive plans, a credit agreement amendment, and required certifications - Key exhibits filed include the Permitted Exit Payment Amendment to the First Lien Credit Agreement, CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and Inline XBRL data files[247](index=247&type=chunk)

Ranpak First Quarter 2021 Earnings Update May 6, 2021 Disclaimers CAUTION ABOUT FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Our forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. Statements that are not historical facts, including ...

Financial Data and Key Metrics Changes - Consolidated net revenue increased 31.2% year-over-year to $85 million, driven by robust demand for protective packaging products [20][32] - Adjusted EBITDA grew 54.7% year-over-year to $28 million, with a margin improvement of approximately 500 basis points to 32.9% [27][36] - Gross margin for the quarter was 41.3%, slightly down from 42.3% in the prior year due to increased freight and production costs [33] Business Line Data and Key Metrics Changes - Wrapping products saw an impressive growth of over 41% year-over-year, contributing significantly to topline growth [32][75] - Cushioning and Void-Fill applications both increased more than 30% over the prior period, indicating strong performance across these segments [32] - Machine placements increased by 12.9% year-over-year, with over 3,000 machines placed in the quarter, totaling more than 120,000 machines globally [31] Market Data and Key Metrics Changes - North America net revenue increased 3.7% year-over-year, with strong adoption of newer products and a focus on sustainability [21][22] - Europe experienced strong performance with all applications up significantly year-over-year, driven by continuous e-commerce growth and a rebound in industrial activity [23][24] - Asia-Pacific showed robust performance, particularly in Australia, Japan, and South Korea, with strong growth in e-commerce and industrial segments [26][27] Company Strategy and Development Direction - The company is focused on executing growth strategies by adding technology, hiring talent, and improving capabilities in key expansion areas [15] - Investments in automation and artificial intelligence are ongoing, positioning the company for long-term success in sustainability and automation supercycle [16] - The company aims to expand its presence in the Asia-Pacific region through new distribution partnerships and increased trial activity [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow the business despite near-term volatility, citing strong demand and operational execution [19][46] - The company is optimistic about outperforming its annual plan for 2021, driven by positive macro trends and strong customer demand [46][69] - Management highlighted the importance of sustainability as a key driver for new customer acquisition, with a significant increase in customers citing sustainability as a reason for switching to paper solutions [57][64] Other Important Information - The company is committed to its ESG goals, including reducing greenhouse gas emissions and sourcing a significant portion of its paper supply from recycled materials by 2030 [49][50] - The balance sheet remains strong, with a cash position of $40.5 million as of March 31, 2021, despite a one-time exit payment to a lender [38][39] Q&A Session Summary Question: Insights on geographical performance, particularly Europe and APAC - Management noted that growth in Europe is driven by both existing and new customers, with sustainability being a key factor for new customer acquisition [56][57] - In Asia-Pacific, growth is attributed to e-commerce and industrial activity, with new distribution partners aiding expansion [59] Question: Impact of rising substrate costs on customer conversion from plastic to paper - Management confirmed that rising resin prices are acting as a catalyst for customers to switch to paper solutions, with early signs of increased demand [64][66] Question: Clarification on guidance updates - Management stated they do not intend to update guidance quarterly but are confident in surpassing their annual plan based on strong Q1 performance [67][69] Question: Revenue growth from new product offerings - New products, particularly in Wrapping and cold chain, are contributing significantly to topline growth, with expectations for continued expansion [75][78] Question: Capital allocation strategy and potential acquisitions - The primary focus is on meeting customer demand and investing in supply chain capabilities, with some exploration of small tuck-in acquisitions [88][90]

[Part I – Financial Information](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Ranpak achieved a net income of $6.3 million in Q1 2021, reversing a prior-year loss, driven by a 38.3% increase in net revenue to $87.7 million Condensed Consolidated Statements of Operations (Q1 2021 vs Q1 2020) | Metric | Three Months Ended March 31, 2021 (Millions USD) | Three Months Ended March 31, 2020 (Millions USD) | | :--- | :--- | :--- | | **Net revenue** | **$87.7 million** | **$63.4 million** | | Gross profit | $36.3 million | $26.8 million | | Income (loss) from operations | $7.7 million | ($0.6) million | | **Net income (loss)** | **$6.3 million** | **($3.6) million** | | Basic EPS | $0.09 | ($0.05) | | Diluted EPS | $0.08 | ($0.05) | Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2021 (Millions USD) | December 31, 2020 (Millions USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $40.5 million | $48.5 million | | Total current assets | $108.8 million | $107.2 million | | Goodwill | $453.6 million | $458.4 million | | **Total assets** | **$1,126.1 million** | **$1,133.5 million** | | Total current liabilities | $55.4 million | $57.5 million | | Long-term debt | $427.0 million | $432.7 million | | **Total liabilities** | **$602.3 million** | **$610.6 million** | | **Total shareholders' equity** | **$523.8 million** | **$522.9 million** | Condensed Consolidated Statements of Cash Flows (Q1 2021 vs Q1 2020) | Cash Flow Activity | Three Months Ended March 31, 2021 (Millions USD) | Three Months Ended March 31, 2020 (Millions USD) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$12.5 million** | **$11.6 million** | | Net cash used in investing activities | ($11.2) million | ($10.5) million | | Net cash used in financing activities | ($8.8) million | ($0.4) million | | Net (Decrease) Increase in Cash | ($8.0) million | $0.5 million | | Cash and Cash Equivalents, end of period | $40.5 million | $20.2 million | - The company adopted ASC 842, Leases, on January 1, 2021, using the modified retrospective method, resulting in the recognition of right-of-use assets and lease liabilities on the balance sheet for the first time[29](index=29&type=chunk)[31](index=31&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Strong Q1 2021 performance, with 38.3% revenue growth driven by e-commerce demand and a 12.9% increase in the installed packaging system base, led to a 54.7% rise in constant currency Adjusted EBITDA - The installed base of protective packaging systems grew by **12.9%** year-over-year, reaching **120.7 thousand units** as of March 31, 2021, with the largest growth in Void-fill (**13.5%**) and Wrapping (**31.7%**) machines[146](index=146&type=chunk) - The COVID-19 pandemic positively impacted demand from e-commerce end-users, though social distancing measures delayed some new packaging system installations[144](index=144&type=chunk) Net Revenue by Geography (GAAP) | Region | Q1 2021 Revenue (Millions USD) | Q1 2020 Revenue (Millions USD) | % Change | | :--- | :--- | :--- | :--- | | North America | $28.1 million | $27.1 million | +3.7% | | Europe/Asia | $59.6 million | $36.3 million | +64.2% | | **Total** | **$87.7 million** | **$63.4 million** | **+38.3%** | Non-GAAP Constant Currency AEBITDA Reconciliation | Metric | Three Months Ended March 31, 2021 (Millions USD) | Three Months Ended March 31, 2020 (Millions USD) | % Change | | :--- | :--- | :--- | :--- | | Net income (loss) (GAAP) | $6.3 million | ($3.6) million | N/A | | Constant currency net income (loss) | $6.1 million | ($3.6) million | N/A | | **Constant currency EBITDA** | **$28.5 million** | **$15.5 million** | **+83.9%** | | **Constant currency AEBITDA** | **$28.0 million** | **$18.1 million** | **+54.7%** | - The company paid an **$8.2 million** "Exit Payment" to its lenders in Q1 2021, as required by its credit agreement due to achieving a lower leverage ratio at year-end 2020[187](index=187&type=chunk)[195](index=195&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate, foreign currency, and commodity price risks, with significant foreign currency exposure as 70.4% of Q1 2021 revenue was non-USD denominated, primarily in Euro - A hypothetical **100 basis point** change in interest rates would have impacted cash interest expense by **$1.1 million** for Q1 2021, a risk managed with interest rate swaps[201](index=201&type=chunk) - The company has significant foreign currency exchange risk, with **70.4%** of Q1 2021 net revenue denominated in non-U.S. dollar currencies, mainly the Euro, where a **10%** fluctuation would change reported net revenue by about **$6.0 million**[204](index=204&type=chunk) - The company does not currently hedge its foreign exchange transaction or translation exposure but may consider it in the future[203](index=203&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[207](index=207&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the first quarter of 2021[208](index=208&type=chunk) [Part II – Other Information](index=40&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[209](index=209&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from those disclosed in the 2020 Annual Report on Form 10-K - There are no material changes in risk factors from those disclosed in the 2020 10-K[210](index=210&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[211](index=211&type=chunk) [Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[211](index=211&type=chunk) [Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[212](index=212&type=chunk) [Other Information](index=40&type=section&id=Item%205.%20Other%20Information) The company reported no other information - None[213](index=213&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents and CEO/CFO certifications - The exhibits filed with this report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, and Inline XBRL documents[215](index=215&type=chunk)

Financial Data and Key Metrics Changes - The company reported its Q4 earnings, with specific financial results and metrics to be discussed in detail during the call [1] - Forward-looking statements were made, indicating potential variances in actual results due to various factors [2][3] Business Line Data and Key Metrics Changes - Specific performance metrics for each business line were not detailed in the provided content [1] Market Data and Key Metrics Changes - Market performance and metrics were not explicitly mentioned in the provided content [1] Company Strategy and Development Direction and Industry Competition - The company emphasized its commitment to sustainability and forward-looking strategies, although specific strategic initiatives were not detailed in the provided content [2][3] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainties in the operating environment and the potential impact on future results, highlighting the importance of not placing undue reliance on forward-looking statements [2][3] Other Important Information - The earnings release and presentation materials were made available in the Investor Relations section, indicating transparency and accessibility of information for stakeholders [4] Q&A Session All Questions and Answers Question: Inquiry about future growth and market conditions - Specific questions and answers from the Q&A session were not included in the provided content [1]

Ranpak Fourth Quarter and Full Year 2020 Earnings Update March 4, 2021 Disclaimers CAUTION ABOUT FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Our forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. Statements that are not historical ...

[PART I](index=3&type=section&id=Part%20I) [ITEM 1. BUSINESS](index=4&type=section&id=Item%201%20Business) Ranpak is a global provider of sustainable product protection and automation solutions, utilizing a 'razor/razor-blade' business model - Ranpak operates a **'razor/razor-blade' business model**, primarily generating revenue from **high-margin paper consumables** used with its installed protective packaging systems[21](index=21&type=chunk)[40](index=40&type=chunk) - Paper packaging consumables are **fiber-based, biodegradable, renewable, and curb-side recyclable**, with a majority from **recycled content** and **SFI/FSC certified suppliers**, meeting sustainability demands[23](index=23&type=chunk)[27](index=27&type=chunk) 2020 Net Revenue by Product Line and Geography | Category | % of Net Revenue (2020) | | :------------------- | :---------------------- | | Void-Fill | 41.9% | | Cushioning | 42.2% | | Wrapping | 13.0% | | Automation | 2.9% | | Region | % of Net Revenue (2020) | | :---------- | :---------------------- | | North America | 42.7% | | Europe | 47.0% | | Asia & Other | 10.3% | [ITEM 1A. RISK FACTORS](index=16&type=section&id=Item%201A%20Risk%20Factors) The company faces risks from COVID-19, supply chain, paper pricing, distributor reliance, consumer preferences, and indebtedness - The COVID-19 pandemic caused **delays in component acquisition** and **product installation**, potentially impacting future growth in protective packaging systems and automation sales[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - Ranpak is **highly dependent on limited paper suppliers**, with **44.9% of North American raw paper from a single source in 2020**, risking supply disruption and price increases[91](index=91&type=chunk)[111](index=111&type=chunk) - The business model **relies heavily on third-party distributors** (accounting for **85.5% of 2020 net revenue**), creating vulnerability to relationship changes or unmet sales expectations[28](index=28&type=chunk)[188](index=188&type=chunk) - **Outstanding indebtedness** could **adversely affect financial condition**, requiring a **substantial portion of cash flow for debt payments** and **limiting future growth financing**[150](index=150&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=33&type=section&id=Item%201B%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report - The company has no unresolved staff comments[204](index=204&type=chunk) [ITEM 2. PROPERTIES](index=33&type=section&id=Item%202%20Properties) Ranpak's global headquarters are in Ohio, European headquarters in The Netherlands, with assembly and paper conversion facilities across regions - Ranpak's global headquarters are in Concord Township, Ohio, and European headquarters in Heerlen, The Netherlands[205](index=205&type=chunk) - The company has assembly facilities in Concord Township, Ohio; Heerlen, The Netherlands; and Nyrany, Czech Republic[206](index=206&type=chunk) - Paper consumables are converted in Concord Township, Ohio; Kansas City, Missouri; Raleigh, North Carolina; Reno, Nevada; Heerlen, The Netherlands; and Nyrany, Czech Republic[206](index=206&type=chunk) - A new dedicated Ranpak Automation facility was opened in Kerkrade, the Netherlands in 2020 to enhance production capacity and R&D[88](index=88&type=chunk)[206](index=206&type=chunk) [ITEM 3. LEGAL PROCEEDINGS](index=33&type=section&id=Item%203%20Legal%20Proceedings) Ranpak is involved in various legal proceedings, including intellectual property litigation, with management assessing and accruing for potential losses - Ranpak is subject to legal proceedings and claims in the ordinary course of business, including intellectual property litigation[101](index=101&type=chunk)[208](index=208&type=chunk) - Management evaluates claims and accrues for probable and reasonably estimable losses, anticipating no material adverse effect on financial condition, liquidity, or cash flows from currently known contingencies[521](index=521&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=34&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is not applicable to Ranpak Holdings Corp - The company has no mine safety disclosures to report[209](index=209&type=chunk) [PART II](index=34&type=section&id=Part%20II) [ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=34&type=section&id=Item%205%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Ranpak's Class A Common Shares are listed on the NYSE under 'PACK', with no cash dividends intended due to debt covenants - Ranpak's Class A Common Shares are listed on the NYSE under the ticker symbol **'PACK'**[210](index=210&type=chunk) - As of March 2, 2021, there were **23 holders of record for Class A Common Shares** and **2 for Class C Common Shares**[210](index=210&type=chunk) - The company has not paid cash dividends and does not intend to in the foreseeable future, with dividend payments limited by restrictive covenants in its credit facilities[211](index=211&type=chunk) [ITEM 6. SELECTED FINANCIAL DATA](index=35&type=section&id=Item%206%20Selected%20Financial%20Data) Ranpak has eliminated the five-year selected financial data requirement due to recent amendments and non-comparable Predecessor/Successor periods - Ranpak has elected to provide disclosure consistent with the November 2020 Amendments, eliminating the requirement for five-year selected financial data in tabular form[217](index=217&type=chunk) - Financial statements are presented on a Predecessor/Successor basis due to the Ranpak Business Combination on June 3, 2019, which created a new basis of accounting and makes periods non-comparable[216](index=216&type=chunk) [ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=35&type=section&id=Item%207%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Ranpak's financial performance for 2020, covering revenue, expenses, non-GAAP measures, liquidity, and accounting policies Key Financial Highlights (GAAP) (in millions) | Metric | 2020 | Successor Period (Jun 3 - Dec 31, 2019) | 1H 2019 Predecessor Period (Jan 1 - Jun 2, 2019) | | :---------------------- | :------ | :-------------------------------------- | :----------------------------------------------- | | Net Revenue | $298.2 | $163.1 | $106.4 | | Gross Profit | $122.6 | $65.7 | $45.2 | | Income (Loss) from Operations | $11.7 | $8.1 | $(5.9) | | Net Loss | $(23.4) | $(17.2) | $(19.0) | Key Financial Highlights (Non-GAAP Pro Forma) (in millions) | Metric | 2020 | 2019 | $ Change | % Change | | :---------------------- | :------ | :------ | :------- | :------- | | Net Revenue | $298.9 | $277.4 | $21.5 | 7.8% | | Gross Profit | $123.0 | $118.8 | $4.2 | 3.5% | | Income (Loss) from Operations | $11.5 | $23.4 | $(11.9) | (50.9)% | | Net Loss | $(23.4) | $(11.0) | $(12.4) | 112.7% | | EBITDA | $67.9 | $84.5 | $(16.6) | (19.6)% | | AEBITDA | $93.7 | $87.3 | $6.4 | 7.3% | - Net revenue increased by **$28.7 million (10.6%) in 2020** compared to 2019 (combined Predecessor/Successor periods), driven by a **13.1% increase in paper consumable product volume**, partially offset by a **5.2% decrease in price**[254](index=254&type=chunk) - Pro forma AEBITDA increased by **$6.4 million (7.3%) to $93.7 million in 2020** on a constant currency basis, reflecting growth despite increased public company costs and severance[266](index=266&type=chunk) [ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=52&type=section&id=Item%207A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Ranpak manages interest rate risk with swaps, faces foreign currency exposure (primarily Euro), and mitigates commodity price risk through annual negotiations - A hypothetical **100 basis point increase or decrease** in applicable base interest rates would have resulted in a **$4.4 million impact on cash interest expense in 2020**[324](index=324&type=chunk) - **57.3% of Ranpak's 2020 net revenue ($170.8 million)** was denominated in non-U.S. dollars, primarily Euro, exposing the company to foreign currency exchange risk[329](index=329&type=chunk) - The company uses **fixed interest rate swap agreements** to manage exposure to fluctuations in interest rates on variable interest rate debt[324](index=324&type=chunk) - Ranpak negotiates paper prices annually with suppliers to mitigate commodity price fluctuations, but its competitive market makes it difficult to pass on all increases[236](index=236&type=chunk)[330](index=330&type=chunk) [ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=54&type=section&id=Item%208%20Financial%20Statements%20and%20Supplementary%20Data) This section includes Ranpak's audited consolidated financial statements, notes, and the independent auditor's report, presented on a Predecessor/Successor basis - The consolidated financial statements include the Report of Independent Registered Public Accounting Firm, affirming fair presentation in accordance with U.S. GAAP[338](index=338&type=chunk) - Financial statements are presented on a Predecessor/Successor basis due to the Ranpak Business Combination on June 3, 2019, impacting comparability across periods[362](index=362&type=chunk)[363](index=363&type=chunk) Consolidated Balance Sheet Highlights (in millions) | Metric | December 31, 2020 | December 31, 2019 | | :---------------------- | :---------------- | :---------------- | | Total Assets | $1,133.5 | $1,104.4 | | Total Liabilities | $610.6 | $572.6 | | Total Shareholders' Equity | $522.9 | $531.8 | Consolidated Cash Flow Highlights (in millions) | Metric | 2020 | Successor Period (Jun 3 - Dec 31, 2019) | 1H 2019 Predecessor Period (Jan 1 - Jun 2, 2019) | | :------------------------------------ | :------ | :-------------------------------------- | :----------------------------------------------- | | Net Cash Provided by Operating Activities | $63.8 | $9.6 | $16.7 | | Net Cash Used in Investing Activities | $(34.5) | $(657.1) | $(10.8) | | Net Cash Provided by (Used in) Financing Activities | $(1.6) | $665.4 | $(14.4) | | Cash and Cash Equivalents, End of Period | $48.5 | $19.7 | $10.2 | [ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES](index=90&type=section&id=Item%209%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There have been no changes in or disagreements with accountants on accounting and financial disclosures - The company reports no changes in or disagreements with accountants on accounting and financial disclosures[565](index=565&type=chunk) [ITEM 9A. CONTROLS AND PROCEDURES](index=90&type=section&id=Item%209A%20Controls%20and%20Procedures) Ranpak's disclosure controls and internal control over financial reporting were effective as of December 31, 2020, with prior material weaknesses remediated - Disclosure controls and procedures were evaluated and concluded to be **effective as of December 31, 2020**[566](index=566&type=chunk) - Management assessed and concluded that internal control over financial reporting was **effective as of December 31, 2020**[567](index=567&type=chunk) - Previously reported material weaknesses related to control environment, risk assessment, and control activities were **fully remediated in 2020** by hiring qualified staff and implementing new controls[568](index=568&type=chunk) [ITEM 9B. OTHER INFORMATION](index=91&type=section&id=Item%209B%20Other%20Information) There is no other information to report under this item - The company has no other information to report under this item[570](index=570&type=chunk) [PART III](index=91&type=section&id=Part%20III) [ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE](index=91&type=section&id=Item%2010%20Directors,%20Executive%20Officers,%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2021 proxy statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy statement[571](index=571&type=chunk) [ITEM 11. EXECUTIVE COMPENSATION](index=91&type=section&id=Item%2011%20Executive%20Compensation) Information concerning executive compensation is incorporated by reference from the 2021 proxy statement - Executive compensation details are incorporated by reference from the 2021 Annual Meeting of Stockholders proxy statement[572](index=572&type=chunk) [ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](index=91&type=section&id=Item%2012%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management is incorporated by reference from the 2021 proxy statement - Security ownership information for beneficial owners and management is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy statement[573](index=573&type=chunk) [ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](index=91&type=section&id=Item%2013%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on certain relationships, related person transactions, and director independence is incorporated by reference from the 2021 proxy statement - Details on certain relationships, related person transactions, and director independence are incorporated by reference from the 2021 Annual Meeting of Stockholders proxy statement[574](index=574&type=chunk) [ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES](index=91&type=section&id=Item%2014%20Principal%20Accounting%20Fees%20and%20Services) Information concerning principal accounting fees and services is incorporated by reference from the 2021 proxy statement - Information on principal accounting fees and services is incorporated by reference from the 2021 Annual Meeting of Stockholders proxy statement[575](index=575&type=chunk) [PART IV](index=91&type=section&id=Part%20IV) [ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](index=91&type=section&id=Item%2015%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements, Schedule II, and a comprehensive index of exhibits - The report includes consolidated financial statements, Schedule II – Valuation and Qualifying Accounts and Reserves for 2020, 2019, and 2018[576](index=576&type=chunk)[577](index=577&type=chunk) - A comprehensive exhibit index lists all documents filed or incorporated by reference[582](index=582&type=chunk) [ITEM 16. FORM 10-K SUMMARY](index=92&type=section&id=Item%2016%20Form%2010-K%20Summary) This item indicates that no Form 10-K Summary is provided - No Form 10-K Summary is provided[579](index=579&type=chunk) [SIGNATURES](index=95&type=section&id=SIGNATURES) The report is duly signed by Ranpak Holdings Corp.'s Senior Vice President and Chief Financial Officer, affirming compliance with the Securities Exchange Act - The report is signed by the Senior Vice President and Chief Financial Officer, William Drew, and other directors[588](index=588&type=chunk)[591](index=591&type=chunk) - Signatures affirm compliance with Section 13 or 15(d) of the Securities Exchange Act of 1934[586](index=586&type=chunk)[590](index=590&type=chunk)

Ranpak Holdings Corp. (NYSE:PACK) Q3 2020 Earnings Conference Call November 6, 2020 8:30 AM ET Company Participants David Murgio - Chief Sustainability Officer Omar Asali - Chairman & Chief Executive Officer Bill Drew - Chief Financial Officer Conference Call Participants Greg Palm - Craig-Hallum Capital Stefanos Crist - CJS Securities Chris McGinnis - Sidoti & Company Matt Dell Orfano - Discovery Capital Operator Ladies and gentlemen thank you for standing by, and welcome to the Ranpak Holdings Corp. Third ...

Ranpak Third Quarter 2020 Earnings Update November 6, 2020 Disclaimers CAUTION ABOUT FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Our forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. Statements that are not historical facts, incl ...