Sealed Air Corporation

Thank you for standing by, and welcome to the Q3 2022 Sealed Earnings Conference Call. At this time, all participants are on a listen-only mode. After this speaker's presentation, there will be a question and answer session. To ask a question at that time, please press star 11 on your touch-tone telephone. As a reminder, today's conference call is being recorded. I will now turn to the conference to host Mr. Brian Sullivan, Executive Director, Investor Relations, and Assistant Treasurer. Sir, you may begin.

Thank you, and good morning, everyone. With me today are Ted Dehaney, our CEO, Chris Stevens, our CFO, Sergio Pupkin, our Chief Growth and Strategy Officer, and Susan Yang, our Automation Finance Leader and Treasurer. Before we begin our call, I would like to note that we have provided a slide presentation to help guide our discussion. Please visit our website where today's webcast and presentation can be downloaded from our IR website at sealedair.com. Statements made during this call stating management's outlook or predictions for future periods are forward-looking statements. These statements are based solely on information that is now available to us. We encourage you to review the information in the section entitled Forward-Looking Statements in our earnings release and slide presentation, which applies to this call. Additionally, our future performance may differ due to a number of factors. Many of these factors are listed in our most recent annual report on Form 10-K. and as revised and updated on our quarterly reports on Form 10-Q and current reports on Form 8-K, which you can also find on our website or on the SEC's website. We discuss financial measures that do not conform to US GAAP. You will find important information on our use of these measures and their reconciliation to US GAAP in our earnings release. In the appendix of today's presentation, you will find US GAAP financial results that correspond to the non-US GAAP measures we referenced throughout the presentation. Before we start the call, I would like to highlight our press release on our exciting new acquisition of Liquibox, along with a separate press release for our Q3 earnings. For today's call, we'll include a summary of the Liquibox transaction, and we'll have an extended call. I will now turn the call over to Ted. Operator, please turn to slide three.

Ted? Thank you, Brian, and thank you for joining our third quarter 2022 earnings call. Starting on slide three, the graphic is showing where we are taking packaging with automation, digital, and sustainable solutions. We start with our purpose. We are in business to protect, to solve critical packaging challenges, and to make our world better than we find it. This enables our vision to become a world-class, digitally-driven company automating sustainable packaging solutions. Our purpose and vision lay solid foundations to drive value creation for our people, customers, and shareholders. Moving to slide four, today we announced that we have entered into a definitive agreement to acquire LiquiBox, a global leader in sustainable packaging for the fluids and liquids industry and the pioneer innovator of bag-in-box solutions. We're truly excited about this transaction. This highly strategic acquisition resonates deeply in the core of our transformation journey to provide market-driven solutions. Fluids and liquids have been the fastest-growing and most profitable area for Cryovac, growing more than 30% year-to-date. We are going to combine LiquiVox development, innovation, and converting capabilities, fitments and dispensers technologies, and strengthen it with CryoVac's broad portfolio of performance films, global operations, and barrier bag technology to partner with customers and create savings through innovative, world-class solutions. During our call today, Chris and I will discuss the details of the transaction. Afterwards, we'll discuss our Q3 results and our updated 2022 outlook and initial thoughts for 2023. On slide five, we illustrate LiquiVox Business, its pioneering bag-in-box technology and broad solutions portfolio. LiquiVox is a leader in the fast-growing fluids and liquid space, partnering with diverse customer base by providing a full range of integrated solutions and systems. Its track record of innovation and sustainability has supported strong revenue and earnings growth while solidifying long-term loyal customers. Liquibox brings us valuable new capabilities with its expertise in fitments and dispensers portfolio that are highly complementary to sea automation and cryovac fluids and liquids business. On slide six, we outline how this highly strategic acquisition fits into our vision of becoming a world-class digitally-driven company automating sustainable packaging solutions. This combination brings together two leading innovators in sustainable packaging, disrupting rigid containers for the global fluids and liquids industry. LiquiBox expected 2022 full-year revenue is $362 million, an adjusted EBITDA of $85 million, representing a margin of 23.5%. Secular trends in the fluids and liquid space, like e-commerce and sustainability, provide compelling new growth opportunities. LiquiBox increases our exposure to attractive end markets, like consumer packaging goods, wine and spirits, quick service restaurants, and enables us to create a new platform when combined with Cryovac. With the acquisition, C advances its commitment to sustainability and circularity, including key growth drivers with disruptive technologies like LiquiBox, new innovation branded LiquiPure. This is the first recycle-ready bag-in-box format. LiquiBox's solutions and technologies are well aligned with SEAS' net positive circular ecosystem strategy. Moving to slide seven, with complementary operations and technologies, Cryovax food packaging enters a new competitive arena while creating an economic value through strong cost and growth synergies. Cryovax and LiquiVox combined solutions will comprise automated filling equipment, best-in-class bag-in-box, and highly engineered fitments and dispensers. This will enable profitable growth into fast-growing categories such as food service fluids and consumer goods. LiquiBox's e-commerce ready solutions will benefit from C's integrated approach to digital and the advancement of prismic digital packaging and printing solutions. By expanding our fluids and liquids capabilities, we're broadening the scope of cryovac solutions and making it more resilient to grow in a recessionary environment. Quick service restaurant customers will benefit from reduced waste and productivity benefits through cryovac and LiquiBox's automation and high-performance barrier bag solutions. When adding LiquiBox Blue Chip customer base to Cryovac's global footprint, we will unlock geographic and cross-selling synergies to address a potential $7 billion in revenue opportunities. Now, Chris will walk through the attractive financial case.