SIG Capital Markets Day 2022: Creating value with packaging solutions for a more sustainable world

MEDIA RELEASE

16 June 2022

SIG Group AG (“SIG” or “the Company”)

SIG Capital Markets Day 2022: Creating value with packaging solutions for a more sustainable world

At today’s Capital Markets Day, SIG will provide a deeper insight into its strategy following the acquisitions of Scholle IPN and Evergreen Asia. The company's medium-term financial targets remain unchanged.

Since its IPO in 2018, SIG has consistently delivered on its growth strategy and reported strong financial results. The business model has proven to be resilient even in a challenging global environment, including most recently the pandemic. With the acquisition of Scholle IPN, which closed on 1 June 2022, and of Evergreen Asia, expected to close in the third quarter of 2022, SIG is further strengthening its position in terms of geography, categories, channels as well as technological capabilities, and has created a unique platform to serve the growing global liquid food and beverage markets. At today's Capital Markets Day, SIG's leadership team will demonstrate how it aims to create additional value for customers, employees and shareholders from its expanded platform, while setting industry standards in sustainability.

Population growth, urbanization and rising disposable incomes are driving demand for packaged food and beverages, including convenience and premium products. Megatrends such as a stronger focus on sustainability, food safety, quality and health consciousness are at the heart of SIG's excellent growth prospects. As a system provider for sustainable packaging solutions, SIG offers its customers unparalleled flexibility and reliability, based on its unique technology as well as its leading customer service. Thus, SIG is deeply embedded in its customers’ value chain which supports long-term customer relationships ensuring reliable and recurring revenues.

The Company maintains its mid-term revenue growth guidance of 4-6% at constant currency, while the recent acquisitions are expected to enable resilient growth in the upper half of this range. For the enlarged group, the adjusted EBITDA margin is expected to be above 27% in the mid-term driven by continued margin expansion in the aseptic carton business as well as the realisation of synergies and margin expansion from the acquisitions. SIG will continue to deliver strong cash generation and the Company maintains its mid-term leverage guidance of towards 2x with a milestone of around 2.5x at the end of 2024. SIG also expects to maintain its policy of progressive growth of its absolute dividend with a pay-out ratio of at least 50-60% of adjusted net income.

Samuel Sigrist, Chief Executive Officer of SIG, said: "SIG is setting industry standards for sustainable packaging of liquid food and beverages. The Company aims to supply the growing world population with food products in a safe, sustainable and affordable way. With our new members in the SIG family, we will be able to further develop our business in terms of geography, categories, channels and, most importantly, technological capabilities underpinning our ability to enhance and create new sustainable packaging solutions. These dynamics will drive exciting growth opportunities and deliver value to shareholders."

Documents and webcast information

Today’s presentations are available from 11.00 CET on www.sig.biz/investors and the webcast of the plenary presentation starting at 13.30 CET will be accessible under this link.

About SIG

SIG is a leading packaging solutions provider for a more sustainable world. With our unique portfolio of aseptic carton, bag-in-box, and spouted pouch we work in partnership with our customers to bring food and beverage products to consumers around the world in a safe, sustainable and affordable way. Our technology and outstanding innovation capabilities enable us to provide our customers with end-to-end solutions for differentiated products, smarter factories and connected packs, all to address the ever-changing needs of consumers. Sustainability is integral to our business and we are going Way Beyond Good to create a net positive food packaging system. 

Founded in 1853, SIG is headquartered in Neuhausen, Switzerland. The skills and experience of our approximately 8,000 employees worldwide enable us to respond quickly and effectively to the needs of our customers in over 100 countries. In 2021, SIG produced 45 billion packs and generated €2.5 billion in revenue (incl. Scholle IPN unaudited revenue). SIG has an AA ESG rating by MSCI, a 13.4 (low risk) score by Sustainalytics and a Platinum CSR rating by EcoVadis. For more information, visit www.sig.biz

For insights into trends that drive the food and beverage industry, visit our SIGnals blog: www.sig.biz/signals/en.

Investor contact:

Ingrid McMahon  +41 52 543 1224
Director Investor Relations
SIG Group AG
Neuhausen am Rheinfall, Switzerland
[email protected]

Media contact:

Lemongrass Communications
Andreas Hildenbrand  +41 44 202 5238
[email protected] 

Disclaimer and cautionary statement

The information contained in this media release and in any link to our website indicated herein is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorised to access or use any such information.

This media release contains “forward-looking statements” that are based on our current expectations, assumptions, estimates and projections about us and our industry. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “may”, “will”, “should”, “continue”, “believe”, “anticipate”, “expect”, “estimate”, “intend”, “project”, “plan”, “will likely continue”, “will likely result”, or words or phrases with similar meaning. Undue reliance should not be placed on such statements because, by their nature, forward-looking statements involve risks and uncertainties, including, without limitation, economic, competitive, governmental and technological factors outside of the control of SIG Group AG (“SIG”, the “Company” or the “Group”), that may cause SIG’s business, strategy or actual results to differ materially from the forward-looking statements (or from past results). For any factors that could cause actual results to differ materially from the forward-looking statements contained in this media release, please see our offering circular for the issue of notes in June 2020. SIG undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. It should further be noted that past performance is not a guide to future performance. Please also note that quarterly results are not necessarily indicative of the full-year results. Persons requiring advice should consult an independent adviser

The declaration and payment by the Company of any future dividends and the amounts of any such dividends will depend upon SIG’s ability to maintain its credit rating, its investments, results, financial condition, future prospects, profits being available for distribution, consideration of certain covenants under the terms of outstanding indebtedness and any other factors deemed by the Directors to be relevant at the time, subject always to the requirements of applicable laws.

Some financial information in this media release has been rounded and, as a result, the figures shown as totals in this media release may vary slightly from the exact arithmetic aggregation of the figures that precede them.

In this media release, we utilise certain alternative performance measures, including but not limited to, EBITDA, adjusted EBITDA, adjusted EBITDA margin, net capex, adjusted net income, free cash flow and net leverage ratio that in each case are not defined in International Financial Reporting Standards (“IFRS”). These measures are presented as we believe that they and similar measures are widely used in the markets in which we operate as a means of evaluating a company’s operating performance and financing structure. Our definition of and method of calculating the alternative performance measures stated above may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles, are not measures of financial condition, liquidity or profitability and should not be considered as an alternative to profit from operations for the period or operating cash flows determined in accordance with IFRS, nor should they be considered as substitutes for the information contained in our consolidated financial statements. You are cautioned not to place undue reliance on any alternative performance measures and ratios not defined in IFRS included in this media release.

Alternative performance measures

For additional information about alternative performance measures used by management that are not defined in IFRS, including definitions and reconciliations to measures defined in IFRS, please refer to the link below:

https://www.sig.biz/investors/en/performance/definitions