Sealed Air Corporation (NYSE:SEE) Q3 2023 Earnings Conference Call November 2, 2023 10:00 AM ET Company Participants Brian Sullivan - Executive Director, Investor Relations and Assistant Treasurer Emile Chammas - Interim Co-CEO and COO Dustin Semach - Interim Co-CEO and CFO Conference Call Participants George Staphos - BofA Securities Adam Samuelson - Goldman Sachs Ghansham Panjabi - Robert W. Baird & Co. Matthew Roberts - Raymond James Jeff Zekauskas - JPMorgan Joshua Spector - UBS Anthony Pettinari - Citi ...

© 2023 SEE | 17 Food SEE Accelerating High Quality Growth Emile Chammas Interim Co-CEO, COO Safe Harbor and Regulation G Statement Our management uses non-U.S. GAAP financial measures to evaluate the Company's performance, which exclude items we consider unusual or special items. We believe that the use of nonU.S. GAAP measures helps investors to gain a better understanding of core operating results and future prospects, consistent with how management measures and forecasts the Company's performance, especi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ 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 Or For the transition period from to Commission File Number: 1-12139 SEALED AIR CORPORATION (Exact name of registrant as specified in its charter) | Delaware | 65-0654331 | | --- | --- | | (Sta ...

Financial Data and Key Metrics Changes - In the second quarter, net sales were $881 million for the food segment, up 3% on an organic basis, primarily driven by price realization, while adjusted EBITDA was $191 million, up 16% in constant dollars compared to last year [8][29] - Overall, adjusted EBITDA for the second quarter was $280 million, down 5% compared to last year, with adjusted earnings per share at $0.80, down 22% year-over-year but up 8% sequentially [29][75] - The company closed the second quarter with a net leverage ratio of approximately 4.1x and expects to use free cash flow generation to de-lever throughout the year and into 2024 [9][31] Business Line Data and Key Metrics Changes - Automation grew approximately 20% in the second quarter, with food automation particularly strong, increasing by about 40% year-over-year [6][72] - Protective solutions saw net sales of $500 million, down 18%, driven by volume declines across all regions due to market pressures and customer destocking [56][72] - The Fluids and Liquids segment experienced mid-single-digit growth, with the contribution from Liquibox expected to be approximately $300 million in sales for 2023 [31][75] Market Data and Key Metrics Changes - The APAC region grew by 6%, while the Americas declined by 2% and EMEA was flat [30] - The company anticipates continued retail softness in the U.S. and a headwind from the U.S. cattle cycle, partially offset by tailwinds from the Australian herd cycle [5][13] Company Strategy and Development Direction - The company is focusing on a Cost Take-Out to Grow program as part of Reinvent SEE 2.0, targeting annual savings of $140 million to $160 million by the end of 2025 [10][71] - The strategic pillars include Automation, Digital, and Sustainability, aimed at addressing customer packaging challenges and driving profitable growth [6][49] - The company is actively reviewing its protective portfolio to optimize and unlock value, including the closure of non-core businesses [73][116] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the global economic outlook and the lingering impact of inflation, while remaining confident in the Cost Take-Out to Grow program to restore earnings growth [78][110] - The company expects an L-shaped recovery through 2023 and into 2024, reflecting a post-COVID lower growth environment [57][110] - Management highlighted the importance of getting closer to customers to better understand volume outlook and address their needs amid changing market conditions [19][87] Other Important Information - The company reported a free cash flow use of $130 million in the second quarter, compared to a source of cash in the same period last year, primarily due to a $175 million IRS deposit [76] - The digital online transactions grew to 16% of total company sales, reflecting the rapid growth of the company's digital transformation efforts [52][54] Q&A Session Summary Question: Can you provide detail on volume expectations by segment for the second half of 2023? - Management indicated a shift in the U.S. cattle cycle impacting food volumes, with expectations of a 4% decline in volume for the second half [13][15] Question: What are the expectations for margins in the Protective segment? - Management expects margin expansion in the Protective segment due to cost control and a shift in product mix [102][105] Question: How does the company plan to address increased competition in the food packaging market? - Management emphasized strong product offerings and a focus on automation to regain market share lost to competitors [21][116] Question: What is the outlook for Liquibox's contribution to sales? - Liquibox is expected to contribute approximately $300 million in sales for 2023, although operational issues have led to a downward revision of expectations [31][99] Question: How confident is management in returning to growth in 2024? - Management expressed confidence in achieving low single-digit growth in 2024, supported by the Cost Take-Out to Grow program and new product introductions [78][110]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ 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 Or For the transition period from to Commission File Number: 1-12139 SEALED AIR CORPORATION (Exact name of registrant as specified in its charter) | Delaware | 65-0654331 | | --- | --- | | (St ...

Financial Data and Key Metrics Changes - In Q1 2023, net sales decreased by 2% on a constant currency basis, with adjusted EBITDA of $267 million down 18% compared to the previous year, reflecting lower volumes and unfavorable operating leverage [18][41][42] - Adjusted earnings per diluted share were $0.74, a decrease of 33% year-over-year on a constant currency basis [41] - The pro forma net leverage ratio at the end of Q1 was 3.7 times, with expectations to reduce it to approximately 3.5 times by the end of 2023 [19] Business Line Data and Key Metrics Changes - Food segment net sales were $853 million, up 1% on an organic basis, driven by a 4% increase from price realization, offset by a 2% decline in volume [8] - Protective Solutions segment net sales were $496 million, down 17% in constant dollars, primarily due to volume declines from recessionary pressures [42] - Automation sales increased by 5% in constant dollars, driven by automated protein solutions [17] Market Data and Key Metrics Changes - EMEA region grew by 4%, while the Americas and APAC regions saw declines of 4% and 1%, respectively [18] - The fastest-growing market was Fluids and Liquids, which grew double digits in Q1, representing close to 10% of total company sales [5][39] Company Strategy and Development Direction - The company is focused on transforming into a market-driven, customer-first solutions provider, with a strong emphasis on digital transformation and automation [5][39] - The acquisition of Liquibox is expected to enhance growth, contributing approximately $340 million to $360 million in sales for 2023 [19] - The company aims to exceed $1 billion in revenue from the Fluids and Liquids vertical by 2025, leveraging CRYOVAC and Liquibox technologies [39] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging first half of 2023 but expects a recovery in the second half driven by growth in Automation, Fluids, and Liquids businesses [17][19] - The company remains confident in its full-year guidance, expecting net sales in the range of $5.85 billion to $6.1 billion, with adjusted EBITDA margins around 21% [19] Other Important Information - The company repurchased approximately $80 million worth of shares in Q1 2023, with $537 million remaining under the authorized share repurchase program [18][19] - The company is implementing cost reduction efforts under the "Reinvent SEE 2.0" initiative, targeting $35 million to $45 million in savings within 12 to 18 months [17] Q&A Session Summary Question: Volume trends by region and end market - Management noted a tough quarter with Food overall volume down 3%, particularly in EMEA, while APAC faced challenges due to chaotic conditions post-lockdown in China [21][46] Question: Full year outlook and volume growth - The company is holding its full-year guidance, anticipating a slight uptick in Food volume and a decline of 2% to 3% in Protective [31][47] Question: Automation trends in a recessionary environment - Automation remains strong, with Food automation up 13% in Q1, while Protective automation was flat due to destocking [48][49] Question: Impact of destocking on Protective segment - Destocking has significantly impacted Protective volumes, with about one-third of the 18% decline attributed to this factor [53][78] Question: Price and volume expectations for 2024 - Management is addressing inflationary pressures with customers and believes automation will help maintain price realization while driving volume [81]

Acquisition and Expansion - The company acquired LB Holdco, Inc. (Liquibox) for $1.15 billion in cash, enhancing its sustainable packaging solutions[30] - In 2022, the company launched the BUBBLE WRAP brand paper bubble mailer, expanding its sustainable product portfolio[45] - The company operates four Packaging Solutions Development and Innovation Centers globally, focusing on innovation in packaging solutions[39] Research and Development - Research and development expenses were $103 million in 2022, up from $100 million in 2021 and $96 million in 2020, indicating a focus on innovation[37] - The company has approximately 2,630 patents and applications, emphasizing its focus on innovation and intellectual property[38] - The company owns or is the licensee of approximately 2,630 patents and 2,350 trademark registrations, filing an average of 185 patent applications annually[38] Sustainability and Environmental Goals - The company aims for net-zero carbon dioxide emissions within its operations by 2040, reflecting its commitment to sustainability[41] - The company integrates environmental sustainability into its business strategy through its Net Positive Circular Ecosystem approach[39] - The company is developing long-term expenditure forecasts to meet its sustainability goals, with costs not material in 2022 but potentially significant in future years[42] Workforce and Diversity - The company employs approximately 16,300 people, with a significant portion (10,200) in direct manufacturing roles[53] - As of December 31, 2022, 25% of the global employee base are female and 35% of the U.S. workforce belong to racial and ethnic minority groups[69] - The company aims to increase gender diversity across employees globally to more than 30% and the representation of racial and ethnic minorities in the U.S. workforce to above 35% by 2025[68] Financial Performance and Market Dynamics - The company experienced slightly higher net sales in the first half compared to the second half due to supply disruptions and recessionary pressures[87] - Raw materials typically represent approximately one-third of the consolidated cost of sales, with significant supply chain disruptions and sharp price increases experienced throughout 2022[82] - Minimal seasonality is observed in the business, with slightly higher net sales in the second half of the year due to holiday events[86] Supply Chain and Operational Efficiency - The company has a centralized supply chain organization aimed at achieving purchasing efficiencies and reducing total delivered costs across all regions[85] - The company faced supply chain disruptions and sharp raw material price increases in 2022 due to inflation, limited availability, and geopolitical factors[82] - The company is focused on operational excellence and aims to simplify and digitize its organizational structure to adapt to global market changes[34] Customer Base and Sales Distribution - The company’s customer base is diversified, with no single customer representing more than 10% of net sales in the past three years[33] - Approximately 50% of Protective sales were sold through distributors in 2022, with no single customer representing more than 10% of segment revenue[79] - In 2022, no single customer represented more than 10% of segment revenue in the Food segment, indicating a diversified customer base[75] Compliance and Regulations - The company has implemented an environmental management system to comply with various laws and regulations regarding the safe storage and use of raw materials and production chemicals[88] - Compliance with environmental regulations has not materially affected the company's capital expenditures or financial condition[88]

Sealed Air Corporation (NYSE:SEE) Q4 2022 Earnings Conference Call February 9, 2023 10:00 AM ET Company Participants Brian Sullivan - Investor Relations Ted Doheny - Chief Executive Officer Emile Chammas - Chief Operating Officer Christopher Stephens - Chief Financial Officer Conference Call Participants Arun Viswanathan - RBC Capital Markets George Staphos - Bank of America Ghansham Panjabi - R.W. Baird Phil Ng - Jefferies Anthony Pettinari - Citi Angel Castillo - Morgan Stanley Adam Josephson - KeyBanc Ad ...

Q4 & FY 2022 Earnings and 2023 Outlook SEE Accelerating to High Quality Growth Company Ted Doheny, President & CEO Chris Stephens, SVP & CFO Emile Chammas, SVP & COO Brian Sullivan, Executive Director Assistant Treasurer & Investor Relations February 9, 2023 Conference Call Supplement (Unaudited Results) This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of hist ...

Sealed Air Corp (NYSE:SEE) Q3 2022 Earnings Conference Call November 1, 2022 10:00 AM ET Company Participants Brian Sullivan - Executive Director, IR & Assistant Treasurer Edward Doheny - CEO, President & Director Chris Stephens - SVP & CFO Sergio Pupkin - SVP and Chief Growth & Strategy Officer Susan Yang - Corporate Treasurer & Finance Leader, SEE Automation Conference Call Participants George Staphos - Bank of America Merrill Lynch Ghansham Panjabi - Robert W. Baird & Co. Lawrence De Maria - William Blai ...