Orora : Annual Report 2022

Orora

Annual

Report

Contents

1. Orora at a glance
2. FY22 financial overview and highlights

1. A message from the Chair

1. A message from the Managing Director and CEO

1. We are One Orora
2. Orora Group strategy update

1. Orora's sustainability approach

1. Group financial review summary

1. Operational review Australasia

1. Operational review North America

1. Corporate Governance Statement

1. Principal risks

1. Board of Directors

1. Executive Leadership team

1. Directors' report

1. Remuneration report

1. Directors' declaration (Directors' report)
2. Auditor's independence declaration
3. Financial report

1. Directors' declaration (Financial report)
2. Independent auditor's report to the members of Orora Limited

1. Statement of shareholdings

1. Five-yearhistorical financial information
2. Shareholder information
3. Financial calendar
4. Corporate directory

Investor Centre

To view this report online or to download a copy, visit Orora's website: www.ororagroup.com

Orora AGM

Orora's Annual General Meeting (AGM) will be held on Thursday, 20 October 2022.

To access more information, visit www.ororagroup.com/agm

Orora at a glance

We are manufacturers and distributors of sustainable and innovative packaging and visual solutions to customers all over the world.

An ASX-listed public company headquartered in Melbourne, Australia with over A$4 billion in sales in FY22, Orora's purpose is to be a leading sustainable packaging solutions provider, designing and delivering products and services that enable our customers' brands to thrive.

Our portfolio

Our values

We operate a portfolio of three businesses across two key geographic segments.

Beverage Australasia

Across Australia and New Zealand Orora Beverage provides innovative, state-of-the-art packaging design and manufacturing solutions to customers in the beverage industry. Working within three specialist business units in Glass, Cans and Closures, we craft and produce

the glass bottles, aluminium cans, tabs and ends, closures and caps that keep consumers' favourite beverages safe for transportation and consumption.

OPS North America

Orora Packaging Solutions (OPS) leads the US market in custom packaging design and solutions, and supply chain optimisation. From corrugate manufacturing to equipment and automation, we create sustainable packaging solutions to serve a range of sectors including food and beverage, industrial, warehouse and shipping, healthcare and beauty, technology and automotive, offering complementary services in global product sourcing, testing, printing and distribution.

Orora Visual North America

Orora Visual delivers cutting-edge visual and product marketing solutions including Point-of- Purchase (PoP) displays, promotional signage, retail-ready and consumer packaging, and labels and tags for packaging, horticulture and retail customers across segments such as food, beauty, home and apparel, hospitality and entertainment. We provide design and creative services, print, finishing, fulfilment and distribution plus a range of value-add services.

4.8k

Team members

41k

Shareholders

22

Manufacturing plants

77

Distribution sites

ORORA LIMITED ANNUAL REPORT 2022

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FY22 financial overview and highlights

Our financial year 2022 results reflect the benefits of Orora's diversified packaging assets, underpinned by strong pricing discipline and the continued execution of our strategy. We delivered strong earnings growth against the backdrop of a higher inflationary operating environment and supply chain disruptions.

Financial overview[1]

• Strong increase in both Group Earnings Before Interest and Tax (EBIT) and Net Profit After Tax (NPAT), up 14.6% and 19.4% respectively.
• Earnings Per Share (EPS) of 21.7 cps, representing growth of 28.2%.
• North American EBIT up 32.6% in local currency terms, on the back of revenue growth and continued margin improvement.
• Robust earnings performance in Australasia supported by growth in the Beverage Cans business.

• Disciplined working capital management, robust cash generation and a strong balance sheet supports further investment and growth.
• Final ordinary dividend of
• 1. cps (unfranked), taking the full-year dividend to 16.5 cps, representing 76.2% of Group NPAT[2] -­the top end of the target payout range.
• $109.0 million of capital returned to shareholders with
• 1. million shares acquired via the on-market share buyback announced in October 2021.

NOTE REGARDING NON-IFRS FINANCIAL INFORMATION: Throughout this report, certain non-IFRS financial information has been included. This information is presented to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. Orora use these measures to assess the performance of the business and believe that the information is useful to investors. The following non-IFRS measures have not been audited but have been extracted from Orora's audited financial statements: Earnings Before Interest and Tax before significant items (EBIT); Earnings Before Interest, Tax, Depreciation and Amortisation before significant items (EBITDA); and Return on Average Funds Employed (RoAFE). Performance measures such as Earnings Per Share (EPS), RoAFE and EBIT margins have been calculated using the non-IFRS measures listed above. All other non-IFRS measures, unless otherwise stated, have not been extracted from Orora's audited financial statements. The financial periods presented in this report represent underlying earnings from continuing operations of the Group excluding the impact of significant items.

2	ORORA LIMITED ANNUAL REPORT 2022

Group sales revenue

Australasia (AUD million)

$909.1m

$4,090.8m 9.0%

North America (USD million)

15.6%$2,308.3m

14.3%

	Australasia (AUD million)
	$150.6m
Group EBIT	0.2%

$285.5m

North America (USD million)

14.6%	$97.9m
32.6%

RoAFE[2]	Net Profit After Tax	EPS	Underlying	Dividend
(NPAT) [2]	operating cash flow	per share

22.4% $187.1m 21.7cps $272.6m 16.5cps

250bps

19.4%

28.2%

10.8%

17.9%

1. Except as expressly defined in this Annual Report, $ refers to Australian dollars.
2. The financial periods presented above represent underlying earnings from continuing operations of the Group excluding the impact of significant items. FY21 excludes a significant item expense of $38.6 million recognised with respect to the decommissioning of the former Petrie mill site. Further details can be found in the 2021 Annual Report.

ORORA LIMITED ANNUAL REPORT 2022

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