UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number: 001-39528 PACTIV EVERGREEN INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) Delaware 88-0927268 (I.R.S. Employer Identification Number) FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF T ...

Pactiv Evergreen Inc. (NASDAQ:PTVE) Q2 2023 Earnings Conference Call August 3, 2023 8:30 AM ET Company Participants Curt Worthington - VP, IR & Strategy Mike King - CEO Jon Baksht - CFO Conference Call Participants Matthew Krueger - Robert W. Baird Adam Samuelson - Goldman Sachs Unidentified Analyst - Bank of America Arun Viswanathan - RBC Capital Markets Operator Good day and thank you for standing by. Welcome to the Pactiv Evergreen’s Second Quarter 2023 Earnings Conference Call. At this time, all partici ...

| --- | --- | |-------------------------------------------------------------|----------------| | | | | | | | 2Q 2023 Earnings Presentation Results through June 30, 2023 | August 3, 2023 | This presentation contains forward-looking statements. All statements contained in this presentation other than statements of historical fact are forward-looking statements, including statements regarding our guidance as to our future financial and operational results. In some cases, you can identify forward-looking statem ...

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 June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to __________ Commission File Number: 001-39528 PACTIV EVERGREEN INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorp ...

Financial Data and Key Metrics Changes - The company reported net revenues of $1.4 billion for Q1 2023, reflecting a 4% decrease compared to Q1 2022, but was essentially flat when excluding divestitures [4][17] - Adjusted EBITDA for the quarter was $189 million, a $22 million increase from Q4 2022 levels, despite a slight decline in revenue [7][41] - Free cash flow for Q1 was $25 million, lower than Q4 due to the timing of annual incentive compensation payments [7][41] Business Line Data and Key Metrics Changes - In the Foodservice segment, net revenues were down 6% year-over-year, with a volume decline of 5% primarily due to a focus on value over volume [6][12] - The Beverage Merchandising segment saw an 8% decrease in net revenues year-over-year, with a 6% decline in volume attributed to market softening amid inflationary pressures [18][44] - The Food Merchandising segment experienced a 9% increase in net revenues year-over-year, driven by a 15% increase in price/mix, although volume was down 7% [44] Market Data and Key Metrics Changes - The operating environment remains influenced by inflationary pressures, affecting both cost structures and consumer behavior [6][19] - Foot traffic in quick-service and full-service restaurant markets has trended down compared to 2022, with consumers shifting spending to mid- to lower-tier options [6][19] - The company anticipates that destocking impacts from previous quarters have largely completed, which may benefit future performance [6][19] Company Strategy and Development Direction - The company is focusing on its core converting operations for food and beverage packaging to position itself for profitable growth [15][48] - A restructuring plan for Beverage Merchandising is underway, with operations at the Canton Mill and Olmsted Falls facilities expected to cease by June [15][48] - The company aims to achieve 100% of net revenue from products made of recycled, recyclable, or renewable materials by 2030 [48][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the uncertain macroeconomic environment, emphasizing the resilience of its business model [14][19] - The full-year adjusted EBITDA guidance has been increased to a range of $775 million to $800 million, reflecting expectations for improved productivity and customer service levels [9][42] - The company expects a modest sequential upward trajectory in performance through 2023, with challenging year-over-year comparisons for Q2 [9][70] Other Important Information - The company has reduced its net leverage ratio from 7.6x at the end of 2021 to 4.5x as of Q1 2023, with a target to reach the low 4s by year-end [22][45] - Capital expenditures for the year are expected to be around $280 million, with a focus on sustaining capital and growth projects [67][82] - The company is committed to maintaining its dividend policy as part of its long-term capital allocation plans [45][46] Q&A Session Summary Question: Can you discuss the impact of consumer spending on volumes? - Management noted that consumer moderation on foot traffic is real, but shifts from Foodservice to Food Merchandising channels mitigate volume loss [52] Question: What are the expectations for pricing and volume trends? - The company anticipates that pricing strategies will support margins, and there is no large volume degradation assumption related to the value-over-volume strategy [28][30] Question: How do you view the EBITDA progression through the year? - Management indicated that the second quarter faces tough comparisons but expects growth in the second half of the year [33][56] Question: What are the expectations for SG&A costs? - SG&A costs are expected to decrease due to restructuring efforts, with a target of around $30 million in benefits from these actions [62] Question: How will the Beverage Merchandising restructuring impact margins? - The restructuring is expected to normalize margins in the Beverage Merchandising segment, leading to overall corporate margin improvements [60]

Jon Baksht Chief Financial Officer Pactiv Evergreen Investor Presentation 3 Agenda 1 | --- | --- | |----------------------------------|-------------| | | | | | | | | | | | | | | | | | | | 1Q 2023 Investor Presentation | | | Results Through March 31, 2023 | May 9, 2023 | Important Information Forward-Looking Statements and Other Information This presentation contains forward-looking statements. All statements contained in this presentation other than statements of historical fact are forward-looking statemen ...

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 March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to __________ Commission File Number: 001-39528 PACTIV EVERGREEN INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incor ...

Financial Data and Key Metrics Changes - The company reported full year net revenues of $6.2 billion, a 14% increase over the prior year, driven by strong pricing and cost pass-throughs, along with the acquisition of Fabri-Kal [28][30] - Full year adjusted EBITDA was $785 million, exceeding guidance, reflecting resilience amid challenging market conditions [30][48] - The net leverage ratio improved to 4.6 times, down from 7.6 times at the end of 2021, indicating a stronger balance sheet [64][79] Business Line Data and Key Metrics Changes - In the fourth quarter, net revenues were $1.5 billion, down 3% year-over-year, with a 10% decline in volume attributed to market softening and inflationary pressures [34][39] - The food service segment saw a year-over-year revenue decline of 7%, while the beverage merchandising segment experienced a 7% revenue drop, primarily due to the sale of the Beverage Merchandising Asia business [96][77] - Adjusted EBITDA for the fourth quarter was $167 million, a decline of 53% year-over-year, primarily due to higher manufacturing costs and lower sales volume [45][72] Market Data and Key Metrics Changes - The company noted a moderation in consumer demand, particularly in the food service segment, with customers destocking due to reduced foot traffic in quick-service restaurants [38][92] - Inflationary pressures remained elevated, particularly in the food sector, impacting sales volumes [36][68] - Resin prices have plateaued and begun to decline modestly, which may positively affect input costs moving forward [37][70] Company Strategy and Development Direction - The company is focused on North America for profitable growth opportunities and has executed multiple divestitures of non-core businesses to streamline operations [7][9] - A significant restructuring plan for the beverage merchandising segment aims to enhance competitiveness and optimize manufacturing footprint, with a workforce reduction of approximately 1,300 positions [19][24] - The company is committed to sustainability, targeting 100% of net revenues to come from recycled, recyclable, or renewable materials by 2030 [65][88] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting that inflation and interest rates remain elevated, which could pressure consumer spending [106] - The company expects to deliver first quarter adjusted EBITDA of approximately $160 million, with a goal of achieving full year adjusted EBITDA in the range of $755 million to $780 million [84][86] - Management anticipates modest improvement in the second half of the year as restructuring benefits begin to materialize [87][109] Other Important Information - The company plans to incur cash charges related to restructuring in the range of $130 million to $185 million during 2023 and 2024 [26][111] - Full year free cash flow was strong at $156 million, despite significant investments to rebuild inventory [82][79] - The Legacy Pactiv Evergreen pension plan is fully funded, with no material funding obligations for the foreseeable future [103] Q&A Session Summary Question: Thoughts on balance sheet ratings and conversations with rating agencies - Management acknowledged that ratings may be lagging behind improvements in the balance sheet and expressed commitment to achieving a higher rating [1] Question: Guidance for Q1 and full year performance - Management indicated that Q1 would show year-over-year growth had it not been for the impact of Winter Storm Elliot, and they expect to see improvements in the second half of the year [120][121] Question: Volume trends and destocking effects - Management noted that destocking is largely complete and expects consumer confidence to stabilize, leading to improved volumes in the latter half of the year [127][129] Question: Input costs and pricing strategies - Management discussed the iterative process of managing pricing in relation to input costs, emphasizing the importance of contractual pass-throughs [131][134] Question: Interest expense and working capital expectations - Management provided guidance on cash interest and taxes, indicating a focus on improving financial position while managing working capital effectively [137] Question: Future leverage expectations - Management reaffirmed the commitment to reducing the net leverage ratio below four times by the end of the year [140][141] Question: Restructuring and divestment plans - Management clarified that the restructuring will lead to a more integrated food and beverage merchandising business, with no plans to change the substrate portfolio [150]

Forward-Looking Statements and Other Information In addition to U.S. GAAP financial measures, this presentation includes references to Adjusted EBITDA, Free Cash Flow, Net Debt and the Net Leverage Ratio, which are nonGAAP financial measures. All references in this presentation to Adjusted EBITDA and net income (loss) are to Adjusted EBITDA and net income (loss) from continuing operations, respectively. Today's Presenters 1 ESG Update and 2023 Outlook pactiv 鲁 evergreen" Food and Beverage Packaging ▪ Operat ...

Business Strategy - In Q1 2023, the company announced a Beverage Merchandising Restructuring plan aimed at increasing production efficiency and reducing capital expenditures[20]. - The company's ten largest customers accounted for 40% of net revenues in 2022, with no single customer exceeding 10%[21]. - The company experienced moderate seasonality, with Foodservice and Food Merchandising operations peaking in summer and fall, while Beverage Merchandising saw increased sales during the academic year[22]. Operations and Manufacturing - The company operates 22 Foodservice and 24 Food Merchandising manufacturing plants, along with 6 U.S. beverage carton manufacturing plants[26]. - In 2022, approximately 50% of the company's annual energy consumption came from renewable sources, including biomass, hydropower, wind, and solar[49]. - The company reported that 97% of its water intake occurs at two mills located in low or low-medium baseline water risk areas[50]. Research and Development - In 2022, the company spent $33 million on research and development, focusing on product innovation and sustainability[36]. - The company launched over 100 new sustainable products since 2020, aligning with customer goals for sustainability[46]. - The company has over 300 patents related to product design and material formulations as of December 31, 2022[32]. Sustainability and Environmental Impact - Approximately 66% of the company's net revenues in 2022 came from products made from recycled, recyclable, or renewable materials, with a goal of reaching 100% by 2030[45]. - The company is subject to various environmental regulations, including the California Plastic Pollution Prevention and Packaging Producer Responsibility Act, which mandates a 25% reduction in plastics by 2032[39]. - The company committed to reducing greenhouse gas emissions and energy consumption as part of the Science Based Targets initiative, aiming for significant reductions in the near and long term[48]. Safety and Workforce - As of December 31, 2022, the company employed approximately 16,000 people globally, with about 30% represented by labor unions[56]. - The total recordable incidence rate for workplace safety was 1.10, significantly better than the industry average of 3.00 in 2022[57]. Waste Management and Recycling - In 2022, the company initiated a waste and recycling audit at each facility to identify areas for improvement and efficiency in waste management[51]. - The company established targets to ensure that by the end of 2025, 100% of its procured virgin fiber meets the SFI Fiber Sourcing standard and the FSC Controlled Wood Standard[53]. Financial Management - The company entered into interest rate swap agreements to hedge a portion of its interest rate exposure, fixing the LIBO rate to a weighted average annual rate of 4.12% for an aggregate notional amount of $1,000 million[308]. - A 100 basis point increase in interest rates would result in a $12 million increase in interest expense based on outstanding debt commitments as of December 31, 2022[309]. - The company utilizes futures and swaps to mitigate exposure to commodity price fluctuations[316]. - As of December 31, 2022, a 10% movement in the price curve for commodity derivatives would result in a change of less than $1 million in unrealized loss[317]. - Details of commodity derivative contracts are available in Note 12 of the consolidated financial statements for the years ending December 31, 2022, and 2021[316].