Q2 2024 Smurfit WestRock PLC Earnings Call

July 30, 2024

Yeah.

Operator: Welcome to the second quarter, 2024 financial result for Smurfit WestRock conference call.

Operator 1: Welcome to Smurfit Westrock's Q2 2024 Financial Results Conference Call. My name is Ellen, and I'll be your coordinator for today's event. Please note this call is being recorded, and for the duration, your lines will be on listen only. However, you will have the opportunity to ask questions at the end. This can be done by pressing star 1 on your telephone keypad. If you require assistance at any time, please press star 0, and you'll be connected to an operator. I'll now hand you over to Ciaran Potts, Head of Investor Relations at Smurfit Westrock. Please go ahead.

Operator: Welcome to Smurfit Westrock's Q2 2024 Financial Results Conference Call. My name is Ellen, and I'll be your coordinator for today's event. Please note this call is being recorded, and for the duration, your lines will be on listen only. However, you will have the opportunity to ask questions at the end. This can be done by pressing star 1 on your telephone keypad. If you require assistance at any time, please press star 0, and you'll be connected to an operator. I'll now hand you over to Ciaran Potts, Head of Investor Relations at Smurfit Westrock. Please go ahead.

Speaker Change: Welcome to 2nd Quarter 2024 Financial Results for Smurfit WestRock Conference Call.

Operator: My name is Alan, and I will be a coordinator for today's event.

Operator: Please note, this call is being recorded and for the duration your lines will be only-silent only. However, you will have the opportunity to ask questions at the end. This can be done by pressing star one on your telephone keypad. If you require assistance at any time, please press star zero, and you'll be connected to an operator.

Ellen: My name is Alan and I'll be your

Speaker Change: Please note this call has been recorded, and for the duration, your lines will be on listen only. However, you will have the opportunity to ask questions at the end. This can be done by pressing star 1 on your telephone keypad.

Speaker Change: If you require assistance at any time, please press star zero and you'll be connected to an operator. I'll now hand you over to Kiran Pod, Head of Investor Relations at Smurfit WestRock. Please go ahead.

Kiran Pot: I will now hand you over to Kiran Pot, head of Investor Relations at Smurfit WestRock.

Kiran Pot: Thank you, Alan. This call will include certain forward-looking information regarding our current plan, police and expectations, which are not guarantees of future performance and are subject to a number of risks and uncertainties and other factors that could cause actual results and events to differ materially from results and events contested by such forward-looking statements. These risks and uncertainties include those said as in our earnings release and our filings with the Securities and Exchange Commissions.

Ciarán Potts: Thank you, Ellen. This call will include certain forward-looking information regarding our current plans, beliefs, and expectations, which are not guarantees of future performance and are subject to a number of risks, uncertainties, and other factors that could cause actual results and events to differ materially from results and events quantifiable by such forward-looking statements. These risks and uncertainties include those set out in our earnings release and our filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date indicated, and except as required by law, we undertake no obligation to update or revise any of them, whether as a result of new information, future events, or otherwise. In addition, today's call will reference certain non-GAAP financial measures.

Ciaran: This call will include certain forward-looking information regarding our current plans, beliefs, and expectations, which are not guarantees of future performance and are subject to a number of risks and uncertainties and other factors that could cause actual results and events to differ materially from results and events contemplated by Flush Forward Looking Safe. These risks and uncertainties include those set out in our earnings release and our filings with the Securities and Exchange Commission.

Kiran Pod: Thank you, Alan.

Kiran Pod: This poll will include certain forward-looking information regarding our current plans, beliefs and expectations which are not guarantees of future performance and are subject to a number of risks and uncertainties and other factors that could cause actual results and events to differ materially.

Kiran Pod: from results and events contemplated by such forward-looking statements.

Kiran Pod: These risks and uncertainties include those set out in our earnings release and our filings with the Securities and Exchange Commission.

Kiran Pot: The forward-looking statements are made only as of today's indicators and accept, as required by law. We undertake no obligations to update or revise any of them, whether as results of new information, future events, or otherwise.

Ciaran: These forward-looking statements are made only as of the date indicated, and, except as required by law, we undertake no obligation to update or revise any of them, whether as a result of new information, future events, or otherwise. In addition... Today's call will reference certain non-GAAP financial measures. Definitions and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings release and our presentation as well as in our filings with the Securities and Exchange Commission and the UK Financial Conduct Authority and are reports available on the UK National Storage Mechanism and our website.

Kiran Pod: These forward-looking statements are made only as of the date indicated, and except as required by law, we undertake no obligation to update or revise any of them, whether as a result of new information, future events, or otherwise.

Kiran Pot: In addition, today's call will reference certain non-GAAP financial measures. Definitions and recommendations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings release and our presentation, as well as in our filings with the Securities and Exchange Commissions and the UK Financial Conduct Authority, and our reports available on the UK National Storage Mechanism and our website.

Kiran Pod: In addition...

Ciarán Potts: Definitions and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings release and our presentation, as well as in our filings with the Securities and Exchange Commission and the UK Financial Conduct Authority, and our reports available on the UK National Storage Mechanism and our website. Given time constraints and demand, I would ask that you keep to two questions and hold detailed modeling questions. I will now hand over to Tony Smurfit, CEO of Smurfit Westrock.

Kiran Pod: Today's call will reference certain non-GAAP financial measures.

Kiran Pod: Definitions and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings release and our presentation.

Kiran Pod: as well as in our filings with the Securities and Exchange Commission and the UK Financial Conduct Authority and our reports available on the UK National Storage Mechanism and our website.

Kiran Pot: Given time constraints and demands, I would ask that you keep the two questions and hold detailed modeling questions.

Kiran Pod: Given time constraints and demand, I would ask that you keep to two questions and hold detailed modeling questions. I will now hand over to Tony Smurfit, CEO of Smurfit WestRock.

Ciaran: Given time constraints and demand, I would ask that you keep to two questions and refrain from detailed modeling questions. I will now hand over to Tony Smurfit, CEO of Smurfit West. Thank you, Ciarán, and good evening, everyone. I am delighted to be with you this evening.

Tony Smirfit: I will now hand over to Tony Smirkel, CEO of Smirkel Best Rock.

Tony Smirfit: Thank you, Kiran, and good evening, everyone. I am delighted to be with you this evening, and I thank you for taking the time to listen to this call, which is held together with Ken Bowles, RCFO. July 5th was a truly momentous day for our company and our stakeholders when we concluded the combination of Smirkel Kappa and West Rock, and then on July 8th when we commenced trading on the New York Stock Exchange with our primary listing, Smirkel West Rock. And in doing so, we became the largest listed packaging company in the world. Interesting, you'll see from this slide a picture of a gigantic corrugated bill, full, which attracted worldwide attention from everyone who saw it and posted it online.

Tony Smurfit: Thank you, Ciaran, and good evening, everyone. I am delighted to be with you this evening, and I thank you for taking the time to listen to this call, which is held together with Ken Bowles, our CFO. 5 July was a truly momentous day for our company and our stakeholders when we concluded the combination of Smurfit Kappa and WestRock, and then on 8 July when we commenced trading on the New York Stock Exchange with our primary listing, Smurfit Westrock, and in doing so, we became the largest listed packaging company in the world. Interesting, you'll see from this slide a picture of a gigantic corrugated billboard, which attracted worldwide attention from everyone who saw it and posted it online. Not only is corrugated packaging highly interesting, creative, and innovative, it is, of course, recyclable, renewable, and biodegradable.

Tony Smurfit: And I thank you for taking the time to listen to this call, which is held together with Ken Bowles, our CFO. July 5th was a truly momentous day for our company and our stakeholders when we concluded the combination of Smurfit Kappa and WestRock, and then on July 8th, when we commenced trading on the New York Stock Exchange with our primary listing, Smurfit WestRock, and in doing so, we became the largest listed packaging company in the world.

Tony Smirkoff: Thank you Kieran and good evening everyone. I am delighted to be with you this evening and I thank you for taking the time to listen to this call which is held together with Ken Bowles, our CFO .

Tony Smurfit: July 5th was a truly momentous day for our company and our stakeholders when we concluded the combination of Smurfit Kappa and WestRock and then on July 8th when we commenced trading on the New York Stock Exchange with our primary listing Smurfit WestRock.

Tony Smurfit: Interesting, you'll see on this slide a picture of a gigantic corrugated bill, full, which attracted worldwide attention from everyone who saw it and posted it online. Not only is corrugated packaging highly interesting, creative, and innovative, but it is, of course, recyclable, renewable, and biodegradable.

Tony Smurfit: And in doing so, we became the largest listed packaging company in the world.

Tony Smurfit: Interesting, you'll see from this slide a picture of a gigantic corrugated bill bull which attracted worldwide attention from everyone who saw it and posted it online.

Tony Smirfit: Not only is corrugated packaging highly interesting, creative and innovative, it is of course recyclable, renewable and biodegradable.

Tony Smurfit: Not only is corrugated packaging highly interesting, creative and innovative, it is of course recyclable, renewable and biodegradable.

Tony Smirfit: The vision of our company is to be a globally admired business, dynamically and sustainably delivering secure and superior returns for all stakeholders. I think over the years we have shown that we are well on our way to realizing this vision. As part of that journey, we've taken certain steps over many years. These include continuous investments, selective acquisitions, development of innovation and service for our customers, and the extensive training and development of our people. Along the way, we have had many defining moments, including the merger with Kappa Packaging in 2005. It's subsequent IPO in 2007. Navigating the financial crisis of 2008 and 2009.

Tony Smurfit: The vision of our company is to be a globally admired business, dynamically and sustainably delivering secure and superior returns for all stakeholders. I think over the years, we have shown that we are well on our way to realizing this vision. As part of that journey, we've taken certain steps over many years. These include continuous investments, selective acquisitions, development of innovation and service for our customers, and the extensive training and development of our people. Along the way, we have had many defining moments, including the merger with Kappa Packaging in 2005, its subsequent IPO in 2007, navigating the financial crisis of 2008 and 2009, the successful defense of the unsolicited approach by International Paper, and, of course, the defining moment not only for our company but also for the industry by combining with WestRock, all the while delivering outstanding operational and financial performance.

Tony Smurfit: The vision of our company is to be a globally admired business, dynamically and sustainably delivering secure and superior returns for all stakeholders.

Tony Smurfit: I think over the years we have shown that we are well on our way to realizing this vision.

Tony Smurfit: As part of that journey, we've taken certain steps over many years. These include continuous investments, selective acquisitions, development of innovation and service for our customers, and the extensive training and development of our people.

Tony Smurfit: Along the way, we have had many defining moments, including the merger with Kappa Packaging in 2005, its subsequent IPO in 2007, navigating the financial crisis of 2008 and 2009, the successful defense of the unsolicited approach by an international paper, and, of course, the defining moment not only for our company but also for the industry, by combining with WestRock, all the while delivering outstanding operational and financial performance. The combination gives Smurfit WestRock the opportunity to give our customers world-class packaging solutions across four continents and 40 countries with unrivaled innovation and a unique footprint for our customers.

Tony Smurfit: Along the way, we have had many defining moments, including the merger with Kappa Packaging in 2005, its subsequent IPO in 2007,

Tony Smirfit: The successful defense of the unsolicited approach by International Paper. And of course, the defining moment not only for our company, but also for the industry by combining with WestRock all the while delivering outstanding operational and financial performance. The combination gives Smurfit WestRock the opportunity to give our customers world-class packaging solutions across four continents and 40 countries, with unrivaled innovation and a unique footprint for our customers. Our combination to form Smurfit WestRock will be run by a management team that has a proven track record and has consistently delivered superior performance. Moreover, it is also a management team that has a track record of identifying, acquiring, and optimizing the performance of undervalued assets.

Tony Smurfit: Navigating the financial crisis of 2008 and 2009, the successful defense of the unsolicited approach by an international paper

Tony Smurfit: And of course, the defining moment, not only for our company, but also for the industry, by combining with WestRock, all the while delivering outstanding operational and financial performance.

Tony Smurfit: The combination gives Smurfit Westrock the opportunity to give our customers world-class packaging solutions across four continents and 40 countries with unrivaled innovation and a unique footprint for our customers. Our combination to form Smurfit Westrock will be run by a management team that has a proven track record and has consistently delivered superior performance. Moreover, it is also a management team that has a track record of identifying, acquiring, and optimizing the performance of undervalued assets. In that context, it is important to note that the transaction was concluded at an optimal time, whereby both sets of stakeholders will benefit from and participate in the go-to sustainable packaging company in our industry. I would likely like to briefly recap on the factors that have sustained Smurfit Kappa's success.

Speaker Change: The combination gives Smurfit WestRock the opportunity to give our customers world-class packaging solutions across four continents and 40 countries with unrivaled innovation and a unique footprint for our customers.

Tony Smurfit: Our combination to form Smurfit WestRock will be run by a management team that has a proven track record and has consistently delivered superior performance. Moreover, it is also a management team that has a track record of identifying, acquiring, and optimizing the performance of undervalued assets. In that context, it is important to note that the transaction was concluded at an optimal time whereby both sets of stakeholders will benefit from and participate in the go-to sustainable packaging company in our industry. I would like to briefly recap the factors that have sustained Smurfit Kappa's success.

Speaker Change: Our combination to form Smurfit WestRock will be run by a management team that has a proven track record and has consistently delivered superior performance.

Speaker Change: Moreover, it is also a management team that has a track record of identifying, acquiring, and optimizing the performance of undervalued assets.

Tony Smirfit: In that context, it is important to note that the transaction was concluded at an optimal time, whereby both sets of stakeholders would benefit from and participate in the go-to sustainable packaging company in our industry.

Speaker Change: In that context, it is important to note that the transaction was concluded at an optimal time, whereby both sets of stakeholders will benefit from and participate in the go-to sustainable packaging company in our industry.

Tony Smirfit: I would like to briefly recap on the factors that have sustained Smurfit Kappa's success. What you've often heard me say is that success is never a straight line. What you will see here is a structural growth story. This slide also shows the continuing benefits of our medium-term capital plan. In 2015, we invested some six billion to optimize our integrated operating model. We also acquired complementary businesses with an aggregate value of two billion. Outperformance had generated substantial free cash flow while delivering a progressive income stream for our shareholders. Those capital allocation decisions, together with ongoing operating excellence, have, over the last eight years, the end of 2023, delivered 100% increase in EBITDA, a 470 basis point increase in EBITDA margin, and a 520 basis point increase in ROC.

Speaker Change: I would like to briefly recap on the factors that have sustained Smurfit Capital's success.

Tony Smurfit: While you've often heard me say that success is never a straight line, what you will see here is a structural growth story. This slide also shows the continuing benefits of our medium-term capital plan. Since 2015, we invested some $6 billion to optimize our integrated operating model. We also acquired complementary businesses with an aggregate value of $2 billion. Outperformance has generated substantial free cash flow while delivering a progressive income stream for our shareholders. Those capital allocation decisions, together with ongoing operating excellence, have, over the last eight years to the end of 2023, delivered a 100% increase in EBITDA, a 470 basis point increase in EBITDA margin, and a 520 basis point increase in ROCE, all the while building balance sheet strength and sustaining a highly attractive income stream.

Speaker Change: While you've often heard me say that success is never a straight line, what you will see here is a structural growth story.

Speaker Change: This slide also shows the continuing benefits of our medium-term capital plan.

Speaker Change: Since 2015, we invested some $6 billion to optimize our integrated operating model.

Speaker Change: We also acquired complementary businesses with an aggregate value of $2 billion.

Tony Smurfit: Outperformance has generated substantial free cash flow while delivering a progressive income stream for our shareholders. Those capital allocation decisions, together with ongoing operating excellence, have, over the last eight years to the end of 2023, delivered a 100% increase in EBITDA, a 470 basis point increase in EBITDA margin, and a 520 basis point increase in ROCE, all the while building balance sheet strength and sustaining a highly attractive income stream. This performance has continued, where we have again delivered a strong set of results against the backdrop of higher recovered fiber costs and lower corrugated costs, which are now being recovered. Ken will take you through these results in greater detail in a few minutes.

Speaker Change: Outperformance has generated substantial free cash flow while delivering a progressive income stream for our shareholders.

Speaker Change: Those capital allocation decisions, together with ongoing operating excellence, have, over the last eight years to the end of 2023, delivered a 100% increase in EBITDA, a 470 basis point increase in EBITDA margin, and a 520 basis point increase in ROSI.

Tony Smirfit: All the while, while building balance sheet strength and sustaining a highly attractive income stream. This performance has continued where we have, again, delivered a strong set of results against the backdrop of higher recovered fiber costs and lower corrugated costs, which are now being recovered. Ken will take you through these results in greater detail in a few minutes.

Speaker Change: all the while building balance sheet strength and sustaining a highly attractive income stream.

Tony Smurfit: This performance has continued, where we have, again, delivered a strong set of results against the backdrop of higher recovered fiber costs and lower corrugated costs, which are now being recovered. Ken will take you through these results in greater detail in a few minutes. For those of you that don't know the company, we've been able to deliver consistently through a fundamental element of our business, and that is our people and our culture. The only true differentiating factor in any company is culture. And we in Smurfit Kappa have fostered a winning owner-operator culture and adherence to our core values of loyalty, integrity, respect, and safety at work. Along the way, we have provided our customers with more and more sophisticated and innovative packaging to meet the various demands of sustainability, innovation, and merchandising.

Speaker Change: This performance has continued where we have again delivered a strong set of results against the backdrop of higher recovered fiber costs and lower corrugated costs which are now being recovered.

Speaker Change: Ken will take you through these results in greater detail in a few minutes.

Tony Smirfit: For those of you that don't know the company, we've been able to deliver consistently through a fundamental element of our business, and that is our deeper and our culture. The only true differentiating factor in any company is culture. And we in Smurf and Kappa have fostered a winning owner-operator culture and adherence to our core values of loyalty, integrity, respect, and safety at work. Along the way, we have provided our customers with more and more sophisticated and innovative packaging to meet the various demands of sustainability, innovation, and merchandising. Through performance, we have transferred the perception of our product away from being merely a transport medium towards being seen by customers.

Tony Smurfit: For those of you that don't know the company, we've been able to deliver consistently through a fundamental element of our business, and that is our team and our culture. The only true differentiating factor in any company is culture, and we at Smurfit Kappa have fostered a winning owner-operator culture and adherence to our core values of loyalty, integrity, respect, and safety at work. Along the way, we have provided our customers with more and more sophisticated and innovative packaging to meet the various demands of sustainability, innovation, and retail.

Ken Bowles: For those of you that don't know the company, we've been able to deliver consistently through a fundamental element of our business and that is our people and our culture.

Speaker Change: The only true differentiating factor in any company is culture and we in Smurfit Kappa have fostered a winning owner-operator culture and adherence to our core values of loyalty, integrity, respect and safety at work.

Speaker Change: Along the way we have provided our customers with more and more sophisticated and innovative packaging to meet the various demands of sustainability, innovation and merchandising.

Tony Smurfit: Through performance, we have transferred the perception of our product away from being merely a transport medium towards being seen by customers as a vital, value-added product in their supply chain. This came into sharp focus during COVID when corrugated was deemed essential and critical to the supply chain. And while the past is no guarantee of future success, it is, however, a good guide. The Smurfit and WestRock combination marries up extremely well.

Tony Smurfit: Through performance, we have transferred the perception of our product away from being merely a transport medium towards being seen by customers as a vital value-added product in their supply chain. This came into sharp focus during COVID, when corrugated was deemed as essential and critical to the supply chain. And while the past is no guarantee of future success, it is, however, a good guide. The Smurfit and WestRock combination marries up extremely well. We have more product ranges in sustainable packaging. We are more integrated. We have significant synergy potential, and we have a unique global footprint. Our significant product range is diverse, with high margin product areas, and we occupy number 1 or number 2 positions in most of the countries and markets in which we operate.

Speaker Change: Through performance, we have transferred the perception of our product away from being merely a transport medium towards being seen by customers as a vital value-added product in their supply chain.

Tony Smirfit: As a vital value-added product in their supply chain. This came into such sharp focus during COVID when corrugated was deemed as essential and critical to the supply chain. And while the past is no guarantee of future success, it is, however, a good guide. The Smurfit and WestRock combination marries up extremely well. We have more product ranges, insustainable packaging, we're more integrators, we have nisk and synergy potential and we have a unique global footprint. Our significant project range is diverse with high margin product areas, and we occupy number one, our number two positions in most of the countries and markets in which we operate.

Speaker Change: This came into sharp focus during COVID when corrugated was deemed as essential and critical to the supply chain.

Speaker Change: And while the past is no guarantee of future success, it is, however, a good guide.

Tony Smurfit: We have more product ranges in sustainable packaging, we're more integrated, we have significant synergy potential, and we have a unique global footprint. Our extensive project range is diverse with high-margin product areas, and we occupy number one or number two positions in most of the countries and markets in which we operate. The uniqueness of Smurfit WestRock cannot be underestimated, and the coming together of the two organizations brings incredible expertise to be harnessed with far broader opportunities for every stakeholder. Clearly, the question is, what is next for the combination?

Speaker Change: The Smurfit and WestRock combination marries up extremely well.

Speaker Change: We have more product ranges in sustainable packaging, we're more integrated, we have significant synergy potential, and we have a unique global footprint.

Speaker Change: Our significant project range is diverse with high margin product areas and we occupy number one or number two positions in most of the countries and markets in which we operate.

Tony Smirfit: The uniqueness of Smurfit WestRock cannot be underestimated, and the coming together of the two organizations brings incredible expertise to be harnessed with far broader opportunities for every stakeholder.

Tony Smurfit: The uniqueness of Smurfit Westrock cannot be underestimated, and the coming together of the two organizations brings incredible expertise to be harnessed, with far broader opportunities for every stakeholder. Clearly, the question is, what is next for the combination? We intend to follow the model that has been successful for Smurfit Kappa across our world and operations. As I said before, the next phase of our journey will take time, as we focus on the execution of putting these two excellent companies together, as we develop a cohesive performance-led culture within the new Smurfit Westrock, and as we focus on putting our customers at the heart of everything that we do. What I have seen so far within the legacy WestRock business is impressive.

Speaker Change: The uniqueness of Smurfit WestRock cannot be underestimated and the coming together of the two organizations brings incredible expertise to be harnessed with far broader opportunities for every stakeholder.

Tony Smirfit: Clearly, the question is what is next for the combination? We intend to follow the model that has been successful for Smurfit Kappa across our world and operations. As I said before, the next phase of our journey will take time as we focus on the execution of putting these two excellent companies together, as we develop a cohesive performance-led culture within the new Smurfit WestRock and as we focus on putting our customers at the heart of everything that we do. What I have seen so far within the legacy WestRock business is impressive. Today, together with my colleagues, we have seen an excess of over a hundred operating units and met with thousands of energized and excited employees, providing an excellent foundation from which to build.

Tony Smurfit: We intend to follow the model that has been successful for Smurfit Kappa across our world and operations. As I said before, the next phase of our journey will take time as we focus on the execution of putting these two excellent companies together, as we develop a cohesive performance-led culture within the new Smurfit WestRock, and as we focus on putting our customers at the heart of everything that we do. What I've seen so far within the legacy WestRock business is impressive.

Speaker Change: Clearly, the question is, what is next for the combination?

Speaker Change: We intend to follow the model that has been successful for Smurfit Kappa across our world and operations.

Speaker Change: As I said before, the next phase of our journey will take time, as we focus on the execution of putting these two excellent companies together.

Speaker Change: as we develop a cohesive performance-led culture within the new Smurfit WestRock and as we focus on putting our customers at the heart of everything that we do.

Tony Smurfit: To date, together with my colleagues, we have seen an excess of over 100 operating units and met with thousands of energized and excited employees, providing an excellent foundation from which to build. I'm also encouraged by the energy, enthusiasm, and resolve across the organization to realize the success that the combination will present for all stakeholders. Now I'll pass it over to Ken to take you through some of the financials.

Tony Smurfit: To date, together with my colleagues, we have seen in excess of 100 operating units and met with thousands of energized and excited employees, providing an excellent foundation from which to build. I'm also encouraged by the energy, enthusiasm, and resolve across the organization to realize the success that the combination will present for all stakeholders. Now I'll pass it over to Ken to take you through some of the financials. Thank you, Tony, and good evening, everyone.

Speaker Change: What I've seen so far within the legacy WestRock business is impressive.

Speaker Change: To date, together with my colleagues, we have seen in excess of over 100 operating units and met with thousands of energized and excited employees, providing an excellent foundation from which to build.

Tony Smirfit: I am also encouraged by the energy, enthusiasm, and resolve across the organization to realize the success that the combination will present for all stakeholders.

Speaker Change: I'm also encouraged by the energy, enthusiasm and resolve across the organisation to realise the success that the combination will present for all stakeholders.

Ken Bowles: Now pass it over to Ken to take you through some of the financials.

Ken Bowles: Thank you, Tony, and good evening, everyone. Turning now to slide 10 and Smurfit Kappa Q2 2024 results, which are reported in US dollars and prepared on the US GAAP. As outlined in the release, due to the timing of the completion of the combination of Smurfit Kappa and WestRock, the GAAP results for the combined company of Smurfit Westrock will be reported from the Q3 2024. These results, another strong set, should be seen in the right context, which is against the backdrop of higher input costs, particularly OCC, but also before the expected recovery of those input costs through box price increases. As you can see, not only by the EBITDA outcome, but also the margin of 16.2%, we are in excellent shape as we enter the second half of the year. Now just some more detail on those numbers.

Ken Bowles: Thank you, Tony, and good evening, everyone. Turning that to slide 10 and Smurfit Kappa Group's second quarter 2024 results, which are reported in US dollars and prepared on the US GAAP. As it lined in the release due to the timing of the completion of the combination of Smurfit Kappa and WestRock, the gap results for the combined company of Smurfit WestRock will be reported from the third quarter of 2024. These results, another strong set, should be seen in the right context, which is against the backdrop of higher input costs, particularly OCC, but also before the expected recovery of those input costs to a boss price increase.

Ken Bowles: Turning now to slide 10, Smurfit Kappa Group's second quarter 2024 results, which are reported in U.S. dollars and prepared in the U.S. As outlined in the release, due to the timing of the completion of the combination of SmurfaGap and WestRock, the gap results for the combined company of SmurfaWestRock will be reported in the third quarter of 2024. These results, another strong set, should be seen in the right context, which is against the backdrop of higher input costs, in particular OCC, but also before the expected recovery of those input costs to box prices.

Speaker Change: Now I'll pass it over to Ken to take you through some of the financials.

Ken Bowles: Thank you, Tony, and good evening, everyone. Turning now to slide 10 on Smurfit Capital Group's second quarter 2024 results, which are reported in US dollars and prepared under the US GAAP.

Ken Bowles: As outlined in the release, due to the timing of the completion of the combination of SmurfaGap and WestRock, the gap results for the combined company of SmurfaWestRock will be reported from the third quarter of 2024.

Ken Bowles: These results, another strong set, should be seen in the right context, which is against the backdrop of higher input costs, in particular OCC, but also before the expected recovery of those input costs through box price increases.

Ken Bowles: As you can see, not only by the EBITDA outcome, but also the margin of 16.2 percent, we are in excellent shape as we enter the second half of the year. And now just some more detail in those numbers. In the second quarter, net sales are about to be $3 billion or 3 percent lower compared to the same period last year, with the decrease primarily driven by lower average box pricing in our European business year and year. However, this is partially offset by an increase in group targeted volumes of 3.1 percent. A $28 million net positive impact on foreign currency fluctuations and a $4 million positive impact on acquisition.

Ken Bowles: As you can see, not only by the EBITDA outcome but also by the margin of 16.2%, we are in excellent shape as we enter the second half of the year. Now, just some more detail on those numbers. In the second quarter, net sales were approximately $3 billion, or 3% lower compared to the same period last year, with the decrease primarily driven by lower average box pricing in our European business year-in-year.

Speaker Change: As you can see, not only by the EBITDA outcome, but also the margin of 16.2%, we are in excellent shape as we enter the second half of the year.

Ken Bowles: In Q2, net sales are approximately $3 billion, or 3% lower compared to the same period last year, with the decrease primarily driven by lower average box pricing in our European business year-on-year. However, this was partially offset by an increase in group corrugated volumes of 3.1%, a $28 million net positive impact from foreign currency fluctuations, and a $4 million positive impact from acquisitions. Adjusted EBITDA after group was $480 million, with an adjusted EBITDA margin of 16.2% in Q2 2024 compared to $556 million and a margin of 18.1% in Q2 2023. In Europe, adjusted EBITDA decreased by $77 million year-on-year, $355 million in Q2. This decrease was primarily due to a $143 million reduction in net sales and increased costs for labor, distribution, and recovered fiber.

Ken Bowles: And now just some more detail on those numbers.

Ken Bowles: In the second quarter, net sales were approximately $3 billion, or 3% lower compared to the same period last year, with the decrease primarily driven by lower average box pricing in our European business year in year.

Ken Bowles: However, this is partially offset by an increase in group targeted volumes of 3.1%, a $28 million net positive impact on foreign currency fluctuations, and a $4 million positive impact on acquisitions. Adjusted EBITDA for the group was $480 million, with an adjusted EBITDA margin of 16.2% in the second quarter of 2024 compared to $556 million and a margin of 18.1% in the second quarter of 2023. In Europe, adjusted EBITDA decreased by $77 million year-on-year to $355 million in the second quarter.

Ken Bowles: However, this is partially offset by an increase in group targeted volumes of 3.1%, a $28 million net positive impact from foreign currency fluctuations, and a $4 million positive impact from acquisitions.

Ken Bowles: Adjust the EBITDA after group was $480 million, with an adjusted EBITDA margin of 16.2 percent in the second quarter of 2024 compared to $556 million and a margin of 18.1 percent in the second quarter of 2023. In Europe, adjusted EBITDA decreased by 77 million year and year, 355 million in the second quarter. This decrease was primarily due to 143 million reduction in that sales, and increased cost for labor, distribution, and recovered fiber. However, these cost headwinds were partially offset by a decrease in energy and other raw material costs. The adjusted EBITDA margin in Europe was 16.1% in the second quarter of 2024, compared to 18.4% in the same quarter of the prior year.

Ken Bowles: Adjusted EBITDA of the group was $480 million, with an adjusted EBITDA margin of 16.2% in the second quarter of 2024, compared to $556 million and a margin of 18.1% in the second quarter of 2023.

Ken Bowles: In Europe , adjusted EBITDA decreased by $77 million year-on-year, $355 million in the second quarter.

Ken Bowles: This decrease was primarily due to a $143 million reduction in net sales and increased costs for labor, distribution, and recovered fiber. However, these cost headwinds were partially offset by a decrease in energy and other raw material costs. The adjusted EBITDA margin in Europe was 16.1% in the second quarter of 2024 compared to 18.4% in the same quarter of the prior year. Conversely, our Americas business saw an increase in adjusted EBITDA compared to the prior year of $6 million, reaching $146 million in the second quarter of 2020.

Ken Bowles: This decrease was primarily due to a 143 million reduction in net sales and increased cost for labour, distribution and recovered fibre.

Ken Bowles: However, these cost headwinds were partially offset by a decrease in energy and other raw material costs. The adjusted EBITDA margin in Europe was 16.1% in the second quarter of 2024 compared to 18.4% in the same quarter of the prior year. Conversely, our Americas business saw an increase in adjusted EBITDA compared to the prior year of $6 million, reaching $146 million in the second quarter of 2024. This increase was mostly due to a $36 million rise in net sales, partially offset by higher costs for raw materials and labor. The adjusted EBITDA margin in the Americas was 19.2% in the second quarter of 2024 compared to 19.3% in the same period of the previous year. Net cash provided by operating activities increased by $33 million to $340 million in the second quarter.

Ken Bowles: However, these cost headwinds were partially offset by a decrease in energy and other raw material costs.

Ken Bowles: The adjusted EBITDA margin in Europe was 16.1% in the second quarter of 2024 compared to 18.4% in the same quarter of the prior year.

Ken Bowles: Conversely, our America's business on increase in the adjusted EBITDA, compared to the prior year of 6 million, reaching $146 million in the second quarter of 2024. This increase was mostly due to a 36 million rise in that sales, partially offset by higher cost for raw materials and labor. The adjusted EBITDA margin in the Americas was 19.2% in the second quarter of 2024, compared to 19.3% in the same period of the previous year. Net cash provided by operating activities increased by 33 million dollars, 340 million in the second quarter. The increase was primarily due to reduction in tax payments and a positive change in working capital and net cash interest, partially offset by a reduction in consolidation at income adjusted for non-cash items. Included in capital expenditure of 177 million in the second quarter of 2024, compared to 224 million in the same period last year, annexed in transaction costs paid associated with the smurf of less raw accommodation, amended to 23 million, adjusted pre-cash was 186 million in the second quarter, all from 83 million in the same period of last year.

Ken Bowles: Conversely, our America's business saw an increase in adjusted EBITDA compared to the prior year of $6 million, reaching $146 million in the second quarter of 2024.

Ken Bowles: This increase was mostly due to a £36 million rise in net sales, partially offset by higher costs for raw materials and labor. The adjusted EBITDA margin in the Americas was 19.2% in the second quarter of 2024, compared to 19.3% in the same period of the previous year. Net cash provided by operating activities increased by $33 million to $340 million in the second quarter. The increase was primarily due to a reduction in tax payments and a positive change in working capital and net cash interest, partially offset by a reduction in consolidated net income adjusted for non-cash items, including capital expenditure of $177 million in the second quarter of 2024 compared to $224 million in the same period last year, and excluding transaction costs paid associated with Adjusted free cash flow was $186 million in the second quarter, up from $83 million in the same period last year.

Ken Bowles: This increase was mostly due to a 36 million rise in net sales, partially offset by higher costs for raw materials and labour.

Ken Bowles: The adjusted EBITDA margin in the Americas was 19.2% in the second quarter of 2024, compared to 19.3% in the same period of the previous year.

Ken Bowles: Net cash provided by operating activities increased by $33 million to $340 million in the second quarter.

Ken Bowles: The increase was primarily due to a reduction in tax payments, and a positive change in working capital and net cash interest, partially offset by a reduction in consolidated net income adjusted for non-cash items. Including capital expenditure of $177 million in Q2 2024 compared to $224 million in the same period last year, and excluding transaction costs paid associated with the Smurfit Westrock combination amounted to $23 million, adjusted free cash flow was $186 million in the second quarter, up from $83 million in the same period of last year. Net debt was $3.1 billion at the end of June, resulting in a net leverage ratio of 1.6x compared to 1.3x at the end of December 2023, and well within the stated leverage range of 1.5x to 2x for legacy Smurfit Kappa.

Ken Bowles: The increase was primarily due to a reduction in tax payments and a positive change in working capital and net cash interest, partially offset by a reduction in consolidated net income adjusted for non-cash items.

Ken Bowles: including capital expenditure of $177 million in the second quarter of 2024 compared to $224 million in the same period last year and excluding transaction costs paid associated with the Smurfit WestRock combination amended to $23 million

Ken Bowles: A just-to-free cash flow of $186 million in the second quarter opened $83 million in the same period of last year.

Ken Bowles: Netcash was 3.1 billion at the end of June, resulting in a net leverage ratio of 1.6 times, compared to 1.3 times at the end of December 2023, and well within the stated leverage range of 1.5 to 2 times for legacy smurfing capital. And finally, on July 26, Smurf of Less Raw Exports declared a 40-dividend of 30.25 per share table in September. While not part of these results we were reporting today, we felt it might be useful, particularly for comparative purposes, to illustrate on a very simplistic basis legacy smurfing capital and legacy less raw for the first six months of the year.

Ken Bowles: Net debt was $3.1 billion at the end of June, resulting in a net leverage ratio of 1.6 times compared to 1.3 times at the end of December 2023, and well within the stated leverage range of one and a half to two times for legacy Smurfit caps. And finally, on July 26th, Smurfit WestRock's board declared a quarterly dividend of $0.3025 per share payable in September. While not part of these results we're reporting today, we felt it might be useful, particularly for comparative purposes, to illustrate on a very simplistic basis legacy Smurfit Kappa and legacy WestRock for the first six months of the year.

Ken Bowles: Net debt was $3.1 billion at the end of June , resulting in a net leverage ratio of 1.6x compared to 1.3x at the end of December 2023, and well within the stated leverage range of 1.5x to 2x for legacy Smurfit Kappa.

Ken Bowles: Finally, on 26 July, Smurfit Westrock's board declared a quarterly dividend of $0.3025 per share payable in September. While not part of these results we're reporting today, we felt it might be useful, particularly for comparative purposes, to illustrate on a very simplistic basis legacy Smurfit Kappa and legacy Westrock for the first six months of the year. I don't propose to dwell on the numbers, but based on the numbers here, the legacy Westrock business delivered on a Smurfit Westrock adjusted EBITDA basis $669 million for the quarter to June. Further detail on the calculation and reconciliation can be found in the appendix to this presentation. When we announced the combination back in September, we had outlined a synergy number of $400 million to be achieved by the end of 2025.

Speaker Change: And finally, on July 26, Smurfit WestRock's board declared a quarterly dividend of $0.3025 per share payable in September .

Speaker Change: While not part of these results we're reporting today, we felt it might be useful, particularly for comparative purposes, to illustrate on a very simplistic basis legacy Smurfit Kappa and legacy WestRock for the first six months of the year.

Ken Bowles: I don't propose to dwell on the numbers, but based on the numbers here, the legacy was raw business delivered on a smurf of was raw for just a deep dive basis, $669 million for the course of June. For the detail on the calculation and reconciliation, can be found in the appendix to this presentation. When we announced the compensation back in September, we had aligned a synergy number of $400 million to be achieved by the end of 2025. Now that we are one organization, the detailed work in relation to those entities has begun, with teams validating that number.

Ken Bowles: I don't propose to dwell on the numbers, but based on the numbers here, the legacy WestRock business delivered $669 million for the course of June. Further detail on the calculation and reconciliation can be found in the appendix to this presentation.

Speaker Change: I don't propose to dwell on the numbers, but based on the numbers here, the legacy WestRock business delivered, on a Smurfit WestRock adjusted EBDA basis, $669 million for the course of June .

Speaker Change: Further detail on the calculation of reconciliation can be found in the appendix to this presentation.

Ken Bowles: When we announced the combination back in September, we had aligned a synergy number of $400 million to be achieved by the end of 2025. Now that we are one organization, the detailed work in relation to those synergies has become a team that is validating that number. The teams are also beginning to scope out other areas of synergy and value creation or indeed dive deeper into initial areas, such as Mexico, to explore further opportunities.

Speaker Change: When we announced the compensation back in September , we had outlined a synergy number of $400 million to be achieved by the end of 2025.

Ken Bowles: Now that we are one organization, the detailed work in relation to those synergies has begun with teams validating that number. The teams are also beginning to scope out other areas of synergy and value creation, or indeed dive deeper on initial areas such as Mexico to explore further opportunities. We will update you more formally later on this year around synergies, but for now, we feel ever more comfortable about the initial estimate and excited about new areas of opportunity. I'm looking now at slide 13 and capital allocation. For anyone who is new to the Smurfit Kappa side of the story, our capital allocation framework is well established. Returns focus at its core, both flexible and agile, it has been and will continue to be a key underpin to our success. From Tony's earlier slides, you can see the evidence of that.

Speaker Change: Now that we are one organization, the detailed work in relation to those synergies has become a team validating that number.

Ken Bowles: The teams are also beginning to scope out other areas of synergy and value creation, or indeed dive deeper on initial areas, such as Mexico, to explore further opportunities. We will update you more formally later on this year around synergies, but for now, we feel ever more comfortable about the initial estimates and excise about new areas of opportunity.

Speaker Change: The teams are also beginning to scope out other areas of synergy and value creation, or indeed dive deeper on initial areas, such as Mexico, to explore further opportunities.

Ken Bowles: We will update you more formally later this year around synergies, but for now, we feel ever more comfortable about the initial estimate and excited about new areas of opportunity. Now, look at slide 13 on capital allocation. For anyone who is new to the Smurfit Capital Sizer story, our capital allocation framework is well established. Returns focus at its core, both flexible and agile, it has been and will continue to be a key underpinning to our success. From Tony's earlier slides, you can see the evidence for that. That framework will now be the basis of capital allocation at Smurfit WestRock. That's probably not a surprise.

Speaker Change: We will update you more formally later on this year around synergies, but for now, we feel ever more comfortable about the initial estimate and excited about new areas of opportunity.

Ken Bowles: I'm looking now at slide 13 on capital allocation. For anyone who is new to the smurf of capital size of the story, our capital allocation framework is well established. Returns focus at its core, both flexible and agile; it has been and will continue to be a key underpin to our success. From Tony's earlier slides, you can see the evidence of that. That framework will now be the basis of the capital allocation of Smurfit WestRock. That's probably not a surprise. At Smurfit WestRock, we believe that capital allocates to internal projects will be central to our future success.

Speaker Change: Looking now at slide 13 on capital allocation.

Speaker Change: For anyone who is new to the Smurfit Capital Sizer story, our capital allocation framework is well established.

Speaker Change: Returns focused at its core, both flexible and agile, it has been and will continue to be a key underpin to our success.

Ken Bowles: That framework will now be the basis of capital allocation at Smurfit Westrock. That's probably not a surprise. At Smurfit Westrock, we believe that capital allocated to internal projects will be central to our future success. Today, more than ever before, we are seeing the benefits of having well-invested asset bases with integrated mill systems and box plants sitting low on the cost curve and primed for future growth. Well-timed and well-executed capital expenditure programs were a hallmark of SKG, and we are bringing the experience and tenure of the senior management team who executed those programs to Smurfit Westrock. The dividend is another cornerstone of our capital allocation strategy. As a reminder, Smurfit Westrock intends to pay a dividend in line with the progressive dividend policy of SKG.

Tony: From Tony's earlier slides, you can see the evidence of that.

Tony: That framework will now be the basis of capital allocation at Smurfit WestRock. That's probably not a surprise.

Ken Bowles: At Smurfit WestRock, we believe that capital allocated to internal projects will be central to our future success. Today, more than ever before, we are seeing the benefits of having well-invested asset bases with integrated mill systems and box plans sitting low on the cost curve and primed for future growth. Well-timed and well-executed capital expenditure programs were a hallmark of SKG, and we are bringing the experience and tenure of the senior management team who executed those programs to Smurfit WestRock.

Smurf: At Smurfit WestRock, we believe that capital allocated to internal projects will be central to our future success.

Ken Bowles: Today, more than ever before, we are seeing the benefits of having well-invested asset bases with integrated middle systems and boss plans that you know in the cost curve and prime for future growth. Well-timed and well-executed capital expenditure programs were a hallmark of SKG, and we are bringing the experience and tenure of the senior management team who executed those programs to Smurfit WestRock. The dividend is another cornerstone of our capital allocation strategy. As a reminder, Smurfit WestRock intends to pay a dividend in line with the progressive dividend policy of SKG. As you see, to harmonize the different dividend streams and payments cycles for the remainder of 2024, as noted before, we are paying a dividend for this quarter of 30.25 cents.

Smurf: Today, more than ever before, we are seeing the benefits of having well-invested asset bases with integrated mill systems and box plans sitting low on the cost curve and primed for future growth.

Smurf: Well-timed and well-executed capital expenditure programs were a hallmark of SKG and we are bringing the experience and tenure of the senior management team who executed those programs to Smurfit WestRock.

Ken Bowles: The dividend is another cornerstone of our capital allocation strategy. As a reminder, Smurfit WestRock intends to pay a dividend in line with the Progressive Dividend Policy of SKG. As we see, to harmonize the different dividend streams and payment cycles for the remainder of 2024, as noted before, we are paying a dividend for this quarter of $0.3025.

Smurf: The dividend is another cornerstone of our capital allocation strategy.

Smurf: As a reminder, Smurfit WestRock intends to pay a dividend in line with the Progressive Dividend Policy of SKG.

Ken Bowles: As we seek to harmonize the different dividend streams and payment cycles for the remainder of 2024, as noted before, we are paying a dividend for this quarter of $0.3025. As we begin the first full year of Smurfit Westrock in 2025, we expect the base for that dividend to be indicative of the last full financial year of Smurfit Kappa Group and very much in line with our progressive dividend policy, subject to the appropriate board review and approvals. In Smurfit Westrock, we plan to be disciplined with M&A and benchmark those opportunities against all other capital allocation alternatives. The combination between Smurfit Kappa and WestRock, the integration of which will clearly be our focus, was undoubtedly transformative in nature, rooted in our history of discipline, and best illustrated by combining both companies on equivalent enterprise multiples to create a global leader in sustainable packaging.

Smurf: And as we see, to harmonize the different dividend streams and payment cycles for the remainder of 2024, as noted before, we are paying a dividend for this quarter of $0.3025.

Ken Bowles: As we begin the first full year of Smurfit WestRock in 2025, we expect the base for that dividend to be indicative of the last full financial year of Smurfit Apple Group and very much in line with a progressive dividend policy, subject to the appropriate board review and approvals. In Smurfit WestRock, we plan to be disciplined with M&A and benchmark those opportunities against all other capital allocation, aren't it? The combination in Smurfit Apple and WestRock, the integration of which will clearly be our focus, was undoubtedly transformative in nature, rooted in our history of discipline, and best illustrated by combining both companies on equivalent enterprise multiples to create a global leader in sustainable packaging.

Ken Bowles: As we begin the first full year of Smurfit WestRock in 2025, we expect the base for that dividend to be indicative of the last full financial year of Smurfit Epic Group and very much in line with our progressive dividend policy, subject to the appropriate board review and approval. In Smurfit WestRock, we plan to be disciplined with M&A and benchmark those opportunities against all other capital allocation alternatives. The combination between SmurfitGAP and WestRock, the integration of which will clearly be our focus, was undoubtedly transformative in nature, rooted in our history of discipline, and best illustrated by combining both companies on equivalent enterprise multiples to create a global leader in sustainable practice.

Smurf: As we begin the first full year of Smurfit WestRock in 2025, we expect the base for that dividend to be indicative of the last full financial year of Smurfit Kappa Group, and very much in line with our progressive dividend policy, subject to the appropriate board review and approvals.

Speaker Change: In Smurfit WestRock, we plan to be disillusioned with M&A and benchmark those opportunities against all other capital allocation alternatives.

Speaker Change: The combination between Smurfit Gap and WestRock, the integration of which will clearly be our focus, was undoubtedly transformative in nature, rooted in our history of discipline, and best illustrated by combining both companies on equivalent enterprise multiples to create a global leader in sustainable packaging.

Ken Bowles: The balance sheet of Smurfit WestRock begins its journey with a significant strength of flexibility; a ratings upgrade from all three agencies on legacy SKG and positive outlook from two is testament to that. The track record of SKG was to deploy capital towards internal investments, be disciplined around M&A, and grow the dividend over the years, while also managing to reduce our leverage. And given the strength of the balance sheet and the improved business profile to scale and reach, we do not believe our current rating would be the summit of our ambition. And the expansion of our capital allocation framework to do other forms of shareholder returns underscores the flexibility and agility of this framework and ensures that all avenues to create and return values where shareholders are considered and benchmark against all options.

Ken Bowles: The balance sheet of Smurfit WestRock begins its journey with a significant strength of flexibility; a Ratings Upgrade from all three agencies on Legacy SKG and a Positive Outlook from two is testament to... The track record of SKG is to deploy capital towards internal investment, be disciplined around M&A, and grow the dividend over the years, while also managing to reduce our leverage. Given the strength of the balance sheet and the improved business profile through scale and reach, we do not believe our current rating would be the summit of our ambition, and the expansion of our capital allocation framework to include other forms of shareholder returns underscores the flexibility and agility of this framework, and ensures that all Ultimately, the framework, at its simplest, is about creating long-term value for all states. I'll now pass you back to Tony for some concluding... Thank you, Ken.

Ken Bowles: The balance sheet of Smurfit Westrock begins its journey with a significant strength and flexibility. A ratings upgrade from all three agencies on legacy SKG, and positive outlook from two, is testament to that. The track record of SKG was to deploy capital towards internal investment, be disciplined around M&A, and grow the dividend over the years while also managing to reduce our leverage. Given the strength of the balance sheet and the improved business profile through scale and reach, we do not believe our current rating would be the summit of our ambition. The expansion of our capital allocation framework to include other forms of shareholder returns underscores the flexibility and agility of this framework and ensures that all avenues to create and return value to our shareholders are considered and benchmarked against all options.

Speaker Change: The balance sheet of Smurfit WestRock begins its journey with a significant strength of flexibility.

Speaker Change: A ratings upgrade from all three agencies on Legacy SKG and positive outlook from two is testament to that.

Speaker Change: The track record of SKG was to deploy capital towards internal investment, be disciplined around M&A and grow the dividend over the years, while also managing to reduce our leverage.

Speaker Change: And given the strength of the balance sheet and the improved business profile through scale and reach, we do not believe our current rating would be the summit of our ambition.

Speaker Change: And the expansion of our capital allocation framework to include other forms of shareholder returns underscores the flexibility and agility of this framework.

Speaker Change: and ensures that all avenues to create and return value to our shareholders are considered and benchmarked against all options.

Ken Bowles: Ultimately, the framework at its simplest is by creating long-term value for all stakeholders, and then patch it back to Tony for some concluding remarks.

Ken Bowles: Ultimately, the framework at its simplest is about creating long-term value for all stakeholders. I'll now pass you back to Tony for some concluding remarks.

Speaker Change: Ultimately the framework at its simplest is about creating long-term value for all stakeholders.

Tony Smirfit: Thank you, Ken. Just to remind everybody, as I said, the new Smurfit WestRock is a company that has a global leadership position in sustainable paper-based packaging products. As you can see from this slide, we cover every area that any customer, larger, small, would require, complemented by the best R&D and innovative tools in the industry, with a world-fast R&D center in Virginia and 36 innovation centers or experience centers solely focused on giving customers optimum packaging solutions. As you will have seen from the Smurfit capital results, we have delivered another excellent performance, with the market now turning in our favor as we look forward.

Tony Smurfit: Thank you, Ken. Just to remind everybody, as I said, the new Smurfit Westrock is a company that has a global leadership position in sustainable paper-based packaging products. As you can see from this slide, we cover every area that any customer, large or small, would require, complemented by the best R&D and innovative tools in the industry, with a world-class R&D center in Virginia and 36 innovation centers or experience centers solely focused on giving customers optimum packaging solutions. As you will have seen from the Smurfit Kappa results, we have delivered another excellent performance, with the market now turning in our favor as we look forward. The current quarter looks like a low point with plenty of scope for both cyclical and structural growth as we recover and improve pricing and as we invest in the business in our usual disciplined way.

Tony Smurfit: Just to remind everybody, as I said, the new Smurfit WestRock is a company that has a global leadership position in sustainable paper-based packaging products. As you can see from this slide, we cover every area that any customer, large or small, would require. Complemented by the best R&D and innovative tools in the industry, with a world-class R&D center in Virginia and 36 innovation centers or experience centers solely focused on giving customers optimum packaging solutions.

Speaker Change: I'm going to pass you back to Tony for some concluding remarks.

Tony: Thank you, Ken. Just to remind everybody, as I said, the new Smurfit WestRock is a company that has a global leadership position in sustainable paper-based packaging products.

Tony: As you can see from this slide, we cover every area that any customer, large or small, would require.

Tony: complemented by the best R&D and innovative tools in the industry, with a world-class R&D center in Virginia and 36 innovation centers or experience centers solely focused on giving customers optimal packaging solutions.

Tony Smurfit: As you will have seen from the Smurfit Kappa results, we have delivered another excellent performance, with the market now turning in our favor as we look forward. The current quarter looks like a low point, with plenty of scope for both cyclical and structural growth as we recover and improve pricing and as we invest in the business in our usual disciplined way. As we conclude the Smurfit Kappa journey and embark on the next and exciting phase of our journey, I would like to thank our shareholders for the support they have given us through those many defining moments which I mentioned earlier.

Speaker Change: As you will have seen from the Smurfit Kappa results, we have delivered another excellent performance with the market now turning in our favor as we look forward.

Tony Smirfit: The current quarter looks like a low point with plenty of scope for both cyclical and structural growth as we recover and improve pricing and as we invest in the business in our usual disciplined way.

Speaker Change: The current quarter looks like a low point with plenty of scope for both cyclical and structural growth as we recover and improve pricing and as we invest in the business in our usual disciplined way.

Tony Smirfit: As we conclude the Smurfit Cafe journey and embark on the next and exciting phase of our journey, I would like to thank our shareholders for the support they have given us through those many defining moments, which I mentioned earlier. To remind you what has made us the success that we are, we will continue to optimize our integrated model. We will continue to put customers at the center of every commercial decision. We will foster a broad-based performance-like culture that is decentralized in its nature, simplifying the business with quick decision-making and making every manager responsible for their own P&Ls, treating capital as their own.

Tony Smurfit: As we conclude the Smurfit Kappa journey and embark on the next and exciting phase of our journey, I would like to thank our shareholders for the support they have given us through those many defining moments which I mentioned earlier. To remind you what has made us the success that we are, we will continue to optimize our integrated model. We will continue to put customers at the center of every commercial decision. We will foster a broad-based performance-led culture that is decentralized in its nature, simplifying the business with quick decision-making and making every manager responsible for their own P&Ls, treating capital as their own. As always, we will be measured, disciplined, and returns-focused in our capital allocation decisions while keeping sustainability leadership at our core.

Speaker Change: As we conclude the Smurfit CAFA journey and embark on the next and exciting phase of our journey, I would like to thank our shareholders for the support they have given us through those many defining moments which I mentioned earlier.

Tony Smurfit: To remind you what has made us the success that we are, we will continue to optimize our integrated model. We will continue to put customers at the center of every commercial decision. We will foster a broad-based, performance-led culture that is decentralized in its nature, simplifying the business with quick decision making and making every manager responsible for their own P&Ls, treating capital as their own. As always, we will be measured, disciplined, and returns-focused in our capital allocation decisions while keeping sustainability leadership at our core.

Speaker Change: To remind you what has made us the success that we are, we will continue to optimize our integrated model. We will continue to put customers at the center of every commercial decision.

Speaker Change: We will foster a broad-based performance-led culture that is decentralized in its nature, simplifying the business with quick decision makings and making every manager responsible for their own P&Ls treating capital as their own.

Tony Smirfit: As always, we will be measured, disciplined, and return-focused in our capital allocation decisions while keeping sustainability leadership at our core. As we drive this forward in the news, Smurfit WestRock through a performance-led culture, but never at the expense of our core values of loyalty, integrity, and respect and, of course, safety at work. These values have delivered and will continue to do so on a much bigger platform. Smurfit WestRock has the right market position, the right products at the right time, and most importantly, the right people.

Speaker Change: As always, we will be measured, disciplined and return-focused in our capital allocation decisions, while keeping sustainability leadership at a core.

Tony Smurfit: As we drive this forward in the new Smurfit Westrock through a performance-led culture, but never at the expense of our core values of loyalty, integrity, and respect, and of course, safety at work. These values have delivered and will continue to do so on a much bigger platform. Smurfit Westrock has the right market positions, the right products at the right time, and most importantly, the right people. 2024, through the creation of the global leader in sustainable packaging, marks the next and most exciting phase in our journey. Thanks for taking the time to listen to this. Now we will turn it over to you to ask any questions that you have. Thank you, operator.

Tony Smurfit: As we drive this forward in the new Smurfit WestRock through a performance-driven culture, but never at the expense of our core values of loyalty, integrity, and respect, and, of course, safety at work. These values have delivered and will continue to do so on a much bigger platform. Smurfit WestRock has the right market position, the right products, at the right time, and, most importantly, the right people. 2024, through the creation of a global leader in sustainable packaging, marks the next and most exciting phase in our journey.

Speaker Change: As we drive this forward in the new Smurfit WestRock through a performance-led culture but never at the expense of our core values of loyalty, integrity and respect, and of course safety at work.

Speaker Change: These values have delivered and will continue to do so on a much bigger platform.

Speaker Change: Smurfit WestRock has the right market positions, the right products, at the right time and most importantly the right people.

Tony Smirfit: 2024 through the creation of the Global Leader in Sustainable Taxing marks the next and most exciting phase in our journey.

Speaker Change: 2024 through the creation of the global leader in sustainable packaging marks the next and most exciting phase in our journey.

Operator: Thanks for taking the time to listen to this, and now we will turn it over to you to ask any questions that you have.

Tony Smurfit: Thanks for taking the time to listen to this, and now we will turn it over to you to ask any questions that you have. Thank you, operator. Thank you. If you'd like to ask a question or make a contribution during today's call, please press star 1 on your telephone keypad. To withdraw your question, please press start.

Speaker Change: Thanks for taking the time to listen to this, and now we will turn it over to you to ask any questions that you have. Thank you, operator.

Operator: Thank you, operator. Thank you. If you would like to ask a question or make a contribution on today's call, please press star one on your telephone keypad. To withdraw your question, please press star two. You will be advised when to ask your questions.

Operator 2: Thank you. If you'd like to ask a question or make a contribution on today's call, please press star one on your telephone keypad. To withdraw your question, please press star two. You'll be advised when to ask your questions. We will take our first question from Charlie Muir-Sands, BNP Paribas Exane. Your line is open. Please go ahead.

Operator: Thank you. If you'd like to ask a question or make a contribution on today's call, please press star one on your telephone keypad. To withdraw your question, please press star two. You'll be advised when to ask your questions. We will take our first question from Charlie Muir-Sands, BNP Paribas Exane. Your line is open. Please go ahead.

Speaker Change: Thank you. If you'd like to ask a contribution on today's call, please press star 1 on your telephone keypad. To withdraw your question, please press star 2. You'll be advised when to ask your questions.

Charlie Liu Sans: We will take our first question from Charlie Liu Sans, the NB Paris bus exit. Your line is open to go ahead.

Operator: You'll be advised when to ask your question. We will take our first question from Charlie Millsands, BNB Paribas, Exane, your line is open, please go ahead. Good evening, good afternoon, guys. Congratulations first of all on closing the deal and listing. I had two questions, or I had plenty, but I'll limit myself to two.

Speaker Change: We will take our first question from Charlie Mills Sands, BNB Paribas, Exane. Your line is open, please go ahead.

Charlie Muir-Sands: Good evening. Good afternoon, guys. Congratulations, first of all, for closing the deal and listing. I had two questions, or I had plenty, but I'll limit myself to two. The first question is, apologies for the short-termism. But Tony, in your remarks, you said you thought that the current quarter looked like a cyclical low point. I just wanted to clarify. Were you talking now about Q3 or Q2? Do you think that Q.

Tony Smirfit: Good evening, good afternoon, guys. Congratulations, first of all, for closing the deal and listing. I've had two questions, so I had plenty, but I'll limit myself to the first question. Apologies for the short term. But Tony, in your remarks, you said you thought that the current quarter looks like a sicker called low point. I just wanted to clarify: were you talking now about Q3 or Q2? Do you think that Q2? Q2, the Q2, Charlie. We expect prices, price rises to be following through in Q3 and Q4. And those stock prices to be is moving forward in Q3 and Q4 and into next year.

Speaker Change: Good evening, good afternoon guys. Congratulations first of all for closing the deal and lifting.

Charlie Millsands: The first question is... Apologies for the short-termism, but Tony, in your remarks, you said that the current quarter looks like a cyclical low point. I just want you to clarify, are you talking now about Q3 or Q2, you know, do you think that Q2... Charlie? We expect prices, price rises to be following through in Q3 and Q4 and those box prices to be moving forward in Q3 and Q4 and into next year, and so clearly, with the paper price increases that are already in the marketplace, on the assumption that nothing bad happens in the world, we say that that's a low point.

Speaker Change: I have two questions, or I have plenty, but I'll limit myself to two. The first question is...

Speaker Change: Apologies for the short-termism but Tony in your remarks you said you thought that the current quarter looks like a thicker call low point I just want you to clarify were you

Tony Smurfit: Q2, Charlie. We expect price rises to be following through into Q3 and Q4, and those box prices to be moving forward in Q3 and Q4 and into next year. And so clearly, with the paper price increases that are already in the marketplace, on the assumption that nothing bad happens in the world. But say that that seems to be the low point. There is one question mark that we have to just continue to look at, is some of the maintenance downtime that is in new WestRock—sorry, in old WestRock, I should say, legacy WestRock—is substantial in the second half, but we still think that that should be dealable with as we look forward.

Speaker Change: Talking now about Q3 or Q2, you know, do you think that Q2? Q2 Charlie, we really expect

Speaker Change: We expect price rises to be following through Q3 and Q4 and those stock prices to be moving forward in Q3 and Q4 and into next year. And so clearly, with the paper price increases that are already in the marketplace,

Tony Smirfit: And so clearly, with the pay for price increases that are already in the marketplace, on the assumption that nothing bad happens in the world, but say that that's the key to the low point. There is one question mark that we have to just continue to look at.

Charlie: on the assumption that nothing bad happens in the world, but say that that seems to be the low point.

Charlie Millsands: There is one question mark that we have to just continue to look at some of the maintenance downtime that is in the new WestRock, sorry, in the old WestRock, I should say, legacy WestRock, is substantial in the second half, but we still think that that should be dealable as we look forward. Then, just looking a little bit further forward, at this stage, what would you envisage? Could be the combined run rate for CapEx for the, Uh, new business, particularly as we think into the following year, 2025. It's a little bit early for us to button that down, Charlie.

Tony Smirfit: Some of the maintenance sound time that is in New Westrop, sorry, in Old Westrop, I should say legacy Westrop, is substantial in the second half, but we still think that that should be feelable with as we look forward. I'm just looking a little bit further forward.

Charlie: There is one question mark that we have to just continue to look at, is some of the maintenance downtime that is in new WestRock?

Charlie: sorry in old WestRock I should say legacy WestRock is substantial in the second half but but we still think that that should be should be a dealable with as we look forward

Charlie Muir-Sands: Then just looking a little bit further forward, at this stage, what would you envisage could be the combined run rate for CapEx for the new business, particularly as we think into the full year 2025?

Tony Smirfit: At this stage, what would you envisage could be the combined run rate, the catat for the new business, if we think into the 40 years, 2025? It's a little bit early for us to gotten that down, Charlie. I mean, you know, as we've said before, there are some things to be done in legacy WestRock. Smurfit Kappa is in very good shape, although we do have some expansion projects and things like our bag and box business, which is doing very well. We are going through legacy WestRock now, as we're starting to get into the weeds a little bit.

Speaker Change: Then I'm just looking a little bit further forward, at this stage what would you envisage

Speaker Change: could be the combined run rate per capex for the

Speaker Change: new business.

Tony Smurfit: It's a little bit early for us to button that down, Charlie. I mean, as we've said before, there are some things to be done in legacy WestRock. I mean, Smurfit Kappa is in very good shape, although we do have some expansion projects and things like our bag-and-box business, which is doing very well. We are going through legacy WestRock now as we're starting to get into the weeds a little bit. But as I've said, I think, to you, we've been very happy with many of the things that have already occurred in legacy WestRock. There are still some things to do, and we just need to check those out over the next quarter or so before we be definitive. But it won't be a million miles away from the model, probably just a bit less than the year one.

Speaker Change: Particularly as we think into the following year, 2025.

Speaker Change: It's a little bit early for us to button that down, Charlie. I mean, you know, as we've said before, there is some things to be done in Legacy WestRock. I mean, Smurfit Kappa is in very good shape, although we do have some expansion projects and things like our Bag and Box business, which is doing very well.

Tony Smurfit: I mean, you know, as we've said before, there are some things to be done in Legacy WestRock. I mean, Smurfit Kappa is in very good shape, although we do have some expansion projects and things like our bag and box business, which is doing very well. We are going through Legacy WestRock now as we're starting to get into the weeds a little bit.

Speaker Change: We are going through legacy WestRock now as we're starting to get into the weeds a little bit. But, you know, as I've said, I think, to you, we've been very happy with many of the things that have...

Tony Smurfit: But you know, as I've said, I think you and I have been very happy with many of the things that have already occurred in Legacy WestRock. There are still some things to do, and we just need to check those out over the next quarter or so before we'd be definitive. But you know it won't be a million miles away from the model, probably a bit less than the year one.

Tony Smirfit: As I said, I think to you, we've been very happy with many of the things that have already occurred in Legacy WestRock. There are still some things to do, and we just need to check those out over the next quarter before we be definitive. But, you know, it won't be a million miles away from the model; probably a bit less in the year one. And as you know, a couple of projects we're still looking at over as to whether or not they make sense. But overall, I would say, you know, very happy with the aspect that we've seen, you know, some things to fix, but you know, WestRock had already done quite a bit of it, especially in some of the converting areas.

Speaker Change: have already occurred in Legacy WestRock.

Speaker Change: There are still some things to do and we just need to check those out over the next quarter or so before we'd be definitive. But, you know, it won't be a million miles away from the model, probably a bit less than the year one. And as...

Tony Smurfit: And as you know, a couple of projects we're still looking at as to whether or not they make sense. But overall, I would say I'm very happy with the asset base that we've seen. There are some things to fix, but WestRock had already done quite a bit of that, especially in some of the converting areas.

Tony Smurfit: As a couple of projects, we're still looking at over as to whether or not they make sense. But overall, I would say very happy with the asset base that we've seen. Some things to fix, but WestRock had already done quite a bit of it, especially in some of the converting areas.

Speaker Change: as you know a couple of projects we're still we're still looking at over as to whether or not they make sense but but overall I would say you know very happy with the asset base that we've seen you know some things to fix but but you know

Speaker Change: WestRock had already done quite a bit of it, especially in some of the converting areas.

Charlie Muir-Sands: Many thanks.

Speaker Change: Many thanks.

Justin Jordan: We will take our next question from Justin Jordan, David. Your line is open. Please go ahead. Thank you.

Speaker Change: Bye.

Ken Bowles: We will take our next question from Justin Jordan. Davey, your line is open, please go ahead. Thank you, good afternoon, gentlemen. Again, well done clearly on the merger, many decades in the planning, and well done on the execution thus far. I've got, I guess, two slightly related questions. Firstly Ken, you talked about old Smurfit Kappa having a sort of target leverage ratio of 1.5 to 2 times Net-A-Dividar. Can you give us any early thoughts on what target leverage ratio we should be thinking about for Smurfit WestRock going forward?

Operator 2: We will take our next question from Justin Jordan. Davy, your line is open. Please go ahead.

Operator: We will take our next question from Justin Jordan. Davy, your line is open. Please go ahead.

Speaker Change: We will take our next question from Justin Jordan, Davey, your line is open, please go ahead.

Ken Bowles: And secondly, related to I suppose Charlie's question on CapEx, I just want to clarify that clearly old Smurfit Kappa had CapEx guidance for calendar 24 of about 900 million euros or approaching a billion US dollars, and old WestRock, as it were, had CapEx guidance of 1.2 billion to 2.5 billion. So that would imply a pro forma CapEx of something in the neighborhood of 2.2 to 2.5 billion dollars. Is that the sort of zip code we should be thinking about, or is there anything in particular you want to call out positively or negatively within that range? No, I think to take the second one first, and I think I think you're probably right, certainly for the remainder 24 to kind of keep the back on a run rate.

Justin Jordan: Thank you. Good afternoon, gentlemen. Again, well done, clearly, on the merger. Many decades in the planning and well done on the execution thus far. I've got, I guess, two slightly related questions. Firstly, Ken, you talked about old Smurfit Kappa having a sort of target leverage ratio of 1.5 to 2 times net EBITDA. Can you give us any early thoughts on what target net EBITDA we should be thinking about for Smurfit Westrock going forward? And secondly, related to, I suppose, Charlie's question on CapEx, I just want to clarify. Clearly, old Smurfit Kappa had CapEx guidance for calendar 2024 of about EUR 900 million or approaching $1 billion. And old WestRock, as it were, had CapEx guidance of $1.2 billion to $1.5 billion. So that would imply a pro forma CapEx of something in the neighborhood of $2.2 to $2.5 billion.

Ken Bowles: Good afternoon, gentlemen. Again, well done; clearly on the merger, many decades of the planning, and well done the execution thus far. I guess two slightly related questions. Firstly, Ken, you talked about, you know, old Smurfy Kappa having a sort of target leverage ratio of 1.5 to 2 times nettedy bidar. Can you give us any early thoughts on what target nettedy bidar we should be thinking about for a Smurfy WestRock going forward? And secondly, related to, I suppose, Charlie's question of Capix. I just wanted to clarify that he, old Smurfy Kappa had CapEx guidance for calendar 24 of about 900 million euros or approaching you billion US dollars and old WestRock as it were, had CapEx guidance of 1.2 billion to billion five.

Speaker Change: Thank you. Good afternoon, gentlemen. Again, well done, clearly, on the merger. Many decades in the planning, and well done on the execution thus far. I've got, I guess, two slightly related questions. Firstly, Ken, you talked about, you know, old Smurfit Kappa having a sort of target leverage ratio of 1.5 to 2 times NTTBDAR.

Speaker Change: Can you give us any early thoughts on what target Netanyahu should be thinking about for Smurfit WestRock going forward? And secondly, related to, I suppose, Charlie's question on CapEx.

Speaker Change: I just want to clarify clearly, old Smurfit Kappa had CapEx guidance for calendar 24 of about 900 million euros or approaching a billion US dollars and old WestRock as it were had CapEx guidance of 1.2 billion to 2.5 billion.

Ken Bowles: So that would imply a pro forma of CapEx as something in the neighborhood of 2.2 to 2.5 billion dollars. Is that the sort of zip coach that we say we should be thinking about, or is there anything in particular you want to call out positively or negatively within that range?

Speaker Change: So that would imply a pro forma capex of something in the neighborhood of $2.2 to $2.5 billion. Is that the sort of zip code, shall we say, we should be thinking about, or is there anything in particular you want to call out positively or negatively within that range?

Justin Jordan: Is that the sort of zip code, shall we say, we should be thinking about? Or is there anything in particular you want to call out positively or negatively within that range?

Ken Bowles: No, I think it takes a second one for us. And I think you're probably right, certainly for the remainder 24 to kind of keep the back kind of run rate. As you know, we're coming to the end of our kind of four-year capital program. WestRock, as Tony said, has done a lot of good work. Our normal cycle will be through October and November. We start to look at budgets for 25. And then, in February 25, we give you a very clear size of what within the Capix requirements will be for 25. And then beyond if we think that's relevant.

Ken Bowles: No, I think take the second one first, Justin. I think you're probably right, certainly for the remainder of 2024, to kind of keep the backhand of run rate. As you know, we're coming to the end of our kind of four-year capital program. WestRock, as Tony said, has done a lot of good work. Our normal cycle would be through October, November; we start to look at budgets for 2025. And then in February 2025, we give you a very clear sight of what we think the CapEx requirements would be for 2025 and then beyond if we think that's relevant. But for now, I think you're not going to be a million miles away if you kind of stick to that kind of zip code in terms of numbers, to keep it really simple.

Ken Bowles: As you know, we're coming to the end of our kind of four-year capital program. WestRock, as Tony said, has done a lot of good work. Our normal cycle would be through October and November; we start to look at budgets for 25. And then in February 25, we give you a very clear picture of what we think the capex requirements would be for 25 and then beyond if we need if we think that's relevant. But for now, I think you're not going to be a million miles away if you kind of stick to that kind of zip code in terms of numbers. Keep it really simple.

Speaker Change: No, I think to take the second one first, I think you're probably right, certainly for the remainder 24 to kind of keep the back on the run rate. As you know, we're coming to the end of our kind of four year capital program. WestRock, as Tony said, has done a lot of good work. Our normal cycle would be

Speaker Change: through October and November we start to look at budgets for 2025 and then in February 2025 we give you a very clear sight of what we think the CapEx requirements would be for 2025 and then and then beyond if we need if we think that's relevant. But for now, I think you're not going to be a million miles away if you kind of stick to that kind of zip code in terms of numbers.

Ken Bowles: But for now, I think you're not going to be a million miles away if you kind of stick to that kind of zip code in terms of numbers.

Ken Bowles: And keep it really simple. on the first one, I suppose look, you know, on a kind of simple form of basis. We start off about two and a half times. I don't think that's necessarily effective of the enhanced business profile or reach. I think it's, you know, in the radio, as you were old, Smurfit WestRock while both being investment, great companies is a new issue in that sense. So I think that if you like, the ambition is to be below where we currently are, but again, all in the fullness and times in terms of when we sit back and look at that kind of broader plan, but I think if you like, out of the box.

Ken Bowles: On the first one, I suppose, look, you know, on a kind of simple performance basis, we start off about two and a half times. But I don't think that's necessarily reflective of an enhanced business profile or reach. I think it's, you know, in the rating agency world, Smurfit WestRock, while both being investment grade companies, is a new issue in that sense. So I think that, if you like, the ambition is to be below where we currently are, but again, all in the fullness and time in terms of when we sit back and look at that kind of broader plan.

Ken Bowles: On the first one, I suppose, look, on a kind of simple pro forma basis, we start off about 2.5x. I don't think that's necessarily reflective of the enhanced business profile or reach. I think it's in the rating agency world, Smurfit Westrock, while both being investment-grade companies, is a new issuer in that sense. So I think that if you like, the ambition is to be below where we currently are, but again, all in the fullness and times in terms of when we sit back and look at that kind of broader plan. But I think if you're out-of-the-box, strong investment-grade credit rating, but clearly the ambition to be north of that and that clearly that means sub where we are now, if you're out-of-the-box, just 2.5x.

Speaker Change: and to keep it really simple.

Speaker Change: On the first one, I suppose, look, you know, on a kind of simple form of basis, we start off about two and a half times. I don't think that's necessarily reflective of.

Speaker Change: of the enhanced business profile or reach I think it's you know in the rating agency world Smurfit WestRock while both being investment grade companies is a new issue in that sense.

Speaker Change: So I think if you like the ambition is to be below where we currently are but again all in the fullness and times in terms of when we sit back and look at that kind of broader plan but I think if you like out of the box

Ken Bowles: But I think if you, a strong investment-grade credit rating, but clearly the ambition to be north of that, and clearly that means below where we are now, if you like, out of the box, just two and a half times. But again, it should be able through the year end to give you better clarity and more targets on that. Thank you, Ken. We will take our next question from George Stafford, Bank of America Securities. Your line is open, please. Thanks so much, everyone. Good evening, and congratulations again on the transaction.

Ken Bowles: Strong enough, we're very credit rating, but clearly the ambition to be north of that and that that means so, so where we are now, if you like out of the box, just two and a half times. But again, you should be able to, through the year end, give you better clarity and more target on that.

Speaker Change: you know strong investment credit rating but clearly the ambition to be north of that and that clearly that means sub where we are now if you like out of the box just two and a half times.

Ken Bowles: But again, should be able through the year-end to give you better clarity and more target on that.

Speaker Change: But again, it should be able, through the year-end, give you better clarity and more target on that.

Ken Bowles: Thank you again.

Justin Jordan: Thank you, Ken.

Ken Bowles: Thanks, Susan.

Ken Bowles: Thanks, Justin.

Ken Bowles: Thank you, Ken.

Ken Bowles: Thanks, Justin.

George Stephoff: We will take our next question from George Stephoff, Bank of America Securities; your line is open, please go ahead. Thanks so much, everyone. Good evening, and congratulations again on the transaction. Two-part question: Tony and Ken, recognizing it's early days.

Operator 2: We will take our next question from George Staphos, Bank of America Securities. Your line is open. Please go ahead.

Operator: We will take our next question from George Staphos, Bank of America Securities. Your line is open. Please go ahead.

Speaker Change: We will take our next question from George Stefos, Bank of America Securities. Your line is open. Please go ahead.

George Staphos: Thanks so much, everyone. Good evening and congratulations again on the transaction. Two-part question, Tony and Ken, recognizing it's early days. As you look at the legacy corrugated and consumer businesses of WestRock, recognizing that a lot of good work had already been done by David and Alex and the prior management team, which of those two businesses is already more closely aligned to the Smurfit model? Which of those two businesses has maybe more opportunity to track to the Smurfit model over time to create opportunity? Relatedly, how do you feel about the systems and information that you're getting regarding WestRock? Are you getting the data, the analytics that you need? It wasn't that long ago that WestRock had had some issues in terms of its information systems or ransomware. How do you feel about the state of systems there? Thanks so much and good luck in the next period.

George Stafford: Two-part question, Tony and Ken, recognizing that it's early days. As you look at the legacy car rental and consumer businesses of WestRock, recognizing that a lot of good work had already been done by David and Alex and the product management team, which of those two businesses is already more closely aligned to the Smurfit model? Which of those businesses has maybe more opportunity to track to the Smurfit model over time to create opportunities? Relatedly, how do you feel about the systems and information that you're getting regarding WestRock? Are you getting the data and the analytics that you need?

George Stafford: Thanks so much, everyone. Good evening.

George Stafford: Congratulations again on the transaction. A two-part question, Tony and Ken, recognizing it's early days.

Tony Smirfit: As you looked at the legacy cargated and consumer businesses of WestRock, recognizing that a lot of good work had already been done by David and Alex and the part of management team, which of those two businesses is already more closely aligned to the Smurfit model, which of those businesses has maybe more opportunity to track to the Smurfit model over time to create opportunity. So, how do you feel about the systems and information that you're getting regarding WestRock? Are you getting the data, the analytics that you need? Wasn't that long ago that WestRock had had some issues in terms of its information systems around somewhere?

Speaker Change: As you look at the legacy cargated and consumer businesses of WestRock, recognizing that a lot of good work had already been done by David and Alex and the product management team.

Speaker Change: Which of those two businesses is already more closely aligned to the Smurfit model? Which of those businesses has maybe more opportunity to track to the Smurfit model over time to create opportunity? Relatedly,

Speaker Change: How do you feel about the systems and information that you're getting regarding WestRock?

Speaker Change: Are you getting the data, the analytics?

Tony Smurfit: You know, it wasn't that long ago that WestRock had some issues with its information systems or ransomware. How do you feel about the data systems there? Thanks so much, and good luck in the next period. Thank you, George. I'll take the first one.

Speaker Change: that you need. It wasn't that long ago that WestRock had had some issues in terms of its information systems or ransomware. How do you feel about the state of systems there? Thanks so much and good luck in the next period.

Ken Bowles: How do you feel about the state of systems there?

George Stephoff: Thanks so much, and good luck in the next period.

Tony Smirfit: Thank you, George. I'll take the first one. I think there are elements of both businesses that are very similar or will track with our businesses. I mean, if you take the CUK business, it's fully integrated or practically fully integrated and is a very good business. And that's, you know, the thinking in the mindset is similar to ours. Much of their cargated businesses is in line with us. And, you know, obviously some of the synergies that we're going to get is going to make it even more integrated business. There's still some work to do. George and some of the legacy cargated boss plants.

Tony Smurfit: I think, you know, there are elements of both businesses that are very similar or will track with our businesses. I mean, if you take the CUK business, it's fully integrated or practically fully integrated and is a very good business. And that's, you know, the thinking and the mindset are similar to ours.

Tony Smurfit: So thank you, George. I'll take the first one. I think there are elements of both businesses that are very similar or will track with our businesses. I mean, if you take the CUK business, it's fully integrated or practically fully integrated and is a very good business. The thinking and the mindset is similar to ours. Much of their corrugated business is in line with us. And obviously, some of the synergies that we're going to get is going to make it an even more integrated business. There's still some work to do, George, in some of the legacy corrugated box plants in legacy WestRock due to some of the takeovers they've done. So there's some work to do in the corrugated business there still.

Speaker Change: Well, thank you, George. I'll take the first one. I think, you know, there are elements of both businesses that are very similar or will track with with our businesses. I mean, if you take.

Speaker Change: The CUK business is fully integrated, or practically fully integrated, and is a very good business.

Tony Smurfit: Much of their corrugated business is in line with us, and, you know, obviously, some of the synergies that we're going to get are going to make it an even more integrated business. There's still some work to do, George, and some of the legacy corrugated box plants in legacy WestRock due to some of the takeovers they've done. So there's some work to do in the corrugated business there still. With regard to, you know, one of the things that is an open question in a sense is the SPS board, because they don't really integrate forward fully in that business. And we need to figure out over the course of the next little while how to do that, if it's possible to do that.

Speaker Change: You know, the thinking and the mindset is similar to ours.

Speaker Change: much of their corrugated businesses.

Speaker Change: is in line with us, and obviously some of the synergies that we're going to get is going to make it an even more integrated business. There's still some work to do, George, in some of the legacy corrugated box plants.

Tony Smirfit: In legacy WestRock, due to some of the takeovers they've taken, they've done. So, there's some work to do in the cargated business there still with regard to, you know, one of the things that is an open question in is essentially is SBS forward because they're not, they don't really integrate forward fully in that business. And we need to figure out over the course of the next little while is how to, how to do that. If it's possible to that, what, what are our market positioning in that? As you know, there's a lot of movements in that space with regard to a couple of acquisitions that are just being made by others in the space.

George Stafford: in Legacy WestRock.

George Stafford: due to some of the takeovers they've done. So there's some work to do in the corrugated business there still. With regard to, you know, one of the things that is an open question in a sense is SBS.

Tony Smurfit: With regard to one of the things that is an open question is, in a sense, the SBS board because they don't really integrate forward fully in that business. And we need to figure out over the course of the next little while is how to do that, if it's possible to do that, what is our market positioning in that. As you know, there's a lot of movements in that space with regard to a couple of acquisitions that have just been made by others in the space. So that's something that is a little bit away from where we sit in our legacy corrugated businesses and our specialty businesses. So that's something that we're going to have to take a look at. But they do have reasonably good or good assets in that area.

George Stafford: board because they don't really integrate forward fully in that business and we need to figure out over the course of the next little while is how to do that, if it's possible to do that, what is our market positioning in that. As you know there's a lot of movements in that space with regard to a couple of acquisitions that have just been made.

Tony Smurfit: What is our market positioning in that, as you know, there's a lot of movement in that space with regard to a couple of acquisitions that have just been made by others in the space. So that's something that, you know, is a little bit away from where we sit in our legacy in our legacy corrugated businesses and our specialty businesses. So that's something that we're going to have to take a look at.

Tony Smirfit: So, that's something that, you know, is a little bit away from where we sit in our legacy, our in our legacy cargated businesses and our specialty businesses. So, that's something that we're going to have to take a look at. But, you know, they do have reasonably good or good assets in that area. So, I just need to analyze that over the next period of time. And to figure out where that market is going, frankly.

George Stafford: by others in the space. So that's something that, you know, is a little bit away from where we sit in our legacy corrugated businesses and our specialty businesses.

Tony Smurfit: But, you know, they do have reasonably good or good assets in that area, so I just need to analyze that over the next period of time and figure out where that market is going, frankly. Hey, George, on the IT systems one, I think you first mentioned the cyber attack that WestRock had a couple of years ago.

George Stafford: So that's something that we're going to have to take a look at, but they do have reasonably good or good assets in that area, so I just need to analyze that over the next period of time and to figure out where that market is going, frankly.

Tony Smurfit: I just need to analyze that over the next period of time and to figure out where that market is going, frankly.

Ken Bowles: Hey George, on the IT systems ones, I think first you mentioned the cyber attack that WestRock had a couple of years ago. I think it's fair to say that the team and WestRock responded fairly strongly to that in terms of the security architecture that they put around the organization following that. And I mean, the symptoms of that is that we, you know, we both get third-party assurance on a security framework. And I'm both of us having this score, which is well of the average for paper packaging and quite well said. So from that perspective, they've carefully invested in the security architecture.

Ken Bowles: I think it's fair to say that the team at WestRock responded fairly strongly to that in terms of the security architecture that they put in place around the organization following that. And the simplest evidence of that is that we both get third-party assurance on our security frameworks, and both of us have a NIST score, which is well above the average for paper packaging and quite well set. So from that perspective, they've clearly invested in security architecture.

Ken Bowles: Hey, George. On the IT systems one, I think first you mentioned the cyber attack that WestRock had a couple of years ago. I think it's fair to say that the team in WestRock responded fairly strongly to that in terms of the security architecture that they put around the organization following that. And I mean, the simplest evidence of that is that we both get third-party assurance on our security frameworks. And both of us have a NIST score, which is well above the average for paper packaging and quite well set. So from that perspective, they've clearly invested in the security architecture. From a broader systems perspective, I suppose there is a bit of work to be done simply because Smurfit Kappa has had an SAP ERP environment since 1998 in reality.

George Stafford: Hey George, on the IT systems one, I think first you mentioned the cyber attack that WestRock had a couple of years ago. I think it's fair to say that the team in WestRock responded fairly strongly to that in terms of the security architecture that they put around the organization following that.

Speaker Change: The simplest evidence of that is that we both get third-party assurance on our security frameworks and both of us have a NIST score.

Speaker Change: which is well above the average for paper packaging and quite well set. So from that perspective, they've clearly invested in the security architecture. From a broader systems perspective, you know, I suppose there is a bit of work to be done simply because Smurfa Kappa has had an SAP ERP environment.

Ken Bowles: From a broader systems perspective, you know, I suppose there is a bit of work to be done simply because Smurfit Kappa has had an SAP ERP environment. You know, since 1998 in reality, so whereas WestRock was really only beginning that journey in terms of one ERP system, and they had chosen SAP for Hannah as that system. As has Smurfit Kappa for the next phase. So there are no burning platforms in terms of accounting systems or data systems within WestRock. I think it's as much what Tony talked about: the decentralized model, and if you like, aligning the kind of role and transition to those IT systems following the operational model.

Ken Bowles: From a broader systems perspective, I suppose there is a bit of work to be done simply because Smurfa Kappa has had an SAP ERP environment since 1998, in reality, whereas WestRock was really only beginning that journey in terms of one ERP system, and they had chosen SAP for HANA as that system, as had Smurfit Capital for the next phases. There are no burning platforms in terms of accounting systems or data systems within WestRock.

Ken Bowles: So whereas WestRock was really only beginning that journey in terms of one ERP system, and they had chosen SAP S/4HANA as that system, as had Smurfit Kappa for the next phase of it. So there are no burning platforms in terms of accounting systems or data systems within WestRock. I think it's as much what Tony talked about, the decentralized model, and if you like, aligning the kind of rollout and transition to those IT systems following the operational model so it can support it best. But in the interim, access to data, the roll-up of data, the aggregation data, not an issue given the current systems in WestRock. But clearly, as we begin to kind of redefine and define that operating model, the IT systems that fall behind will make that process more efficient.

Speaker Change: you know since 1998 in reality. So whereas WestRock was really only beginning that journey in terms of one ERP system and they had chosen SAP for HANA as that system as has Smurfit Capital for the next phases.

Ken Bowles: I think it's as much what Tony talked about, the decentralized model, and, if you like, aligning the kind of rollout and transition to those IT systems following the operational model who can support it best. But in the interim, access to data, the rollup of data, the aggregation of data, is not an issue given the current systems in WestRock. But clearly, as we begin to kind of redefine and define that operating model, the IT systems that fall behind will make that process more efficient.

Speaker Change: There are no burning platforms in terms of accounting systems or data systems within WestRock.

Speaker Change: What Tony talked about the decentralized model, and if you like aligning the kind of rollout and transition to those IT systems following the operational model, who can support it best.

Ken Bowles: So it can support the best. But in the interim, access to data, the role of update, the aggregation data, not an issue given the current systems in WestRock, but clearly as we begin to kind of redefine and define that operating model. The IT systems are far behind will make that that process more efficient, but a lot of commonality systems, which is a great starting point. And carry two projects around the next version of SAP S/4HANA, which means that that certainly does a lot of good work already on both sides of the organization in terms of the next phase at IT deployment.

Speaker Change: But in the interim, access to data, the roll-up of data, the aggregation of data is not an issue given the current systems in WestRock, but clearly as we begin to kind of redefine and define that operating model.

Ken Bowles: But a lot of commonality of systems, which is a great starting point, and clearly two projects around the next version of SAP S/4HANA, which means that certainly there's a lot of good work already done on both sides of the organization in terms of the next phase of IT deployment.

Speaker Change: The IT systems are far behind, we'll make up that process.

Ken Bowles: But a lot of commonality of systems, which is a great starting point anchoring two projects around the next version of SAP S4 HANA, which means that certainly there's a lot of good work already done on both sides of the organization in terms of the next phase of IT deployment. Thanks very much.

Speaker Change: more efficient but a lot of commonality of systems which is a great starting point and carrying two projects around the next version of SAP S4 HANA which means that certainly there's a lot of good work already done on both sides of the organization in terms of the next phase of IT deployment.

Ken Bowles: Thanks very much. Thanks, George.

Justin Jordan: Thanks very much.

Tony Smurfit: Thanks, George.

Speaker Change: Thanks very much.

Raj Jabal: We will take our next question from Raj Jabal. Steve, your line is open. Please go ahead.

Operator: Thanks, George. We will take our next question from Lars Jelbuk-Stefan. Your line is open, please go ahead.

Operator 2: We will take our next question from Lars Kjellberg. Stefan, your line is open. Please go ahead.

Operator: We will take our next question from Lars Kjellberg. Stefan, your line is open. Please go ahead.

Speaker Change: We will take our next question from

Lars Jelbuk-Stefan: Thank you and thank you for taking the questions. So coming back to what you just said, Ken, about the decentralized operating model, which is obviously something that's been very successful at Smurfit Kappa, and a few years ago WestRock did the opposite, centralizing that. What sort of actions are you taking to roll out your business model into the legacy WestRock system and what sort of time frame would you have us think about that? And also on the metrics of value-based pricing for your commercial success in boxes in Europe. What are the opportunities you see in the US?

Tony Smirfit: Thank you, and thank you for taking the questions. So coming back to which just I can about the centralized operating model, which is obviously something that's been very successful at Smurfit Kappa, and a few years ago, WestRock did the opposite centralized in that.

Lars Kjellberg: Thank you. And thank you for taking the questions. So coming back to what you just said, Ken, about decentralized operating model, which is obviously something that's been very successful at Smurfit Kappa. And a few years ago, WestRock did the opposite, centralizing that. What sort of actions are you taking to roll out sort of your business model into the legacy WestRock system, and what sort of timeframe would you have us think about that? And also on the metrics of value-based pricing on your commercial success in boxes in Europe, what are the opportunities you see in the US to get to that same stage where, in a way, sort of take away the strong link between containerboard and corrugated in the US business as you have, to a degree at least, in the European side?

Tony Smurfit: to get to that same stage for you. Anyway, sort of take away the strong link between containable and corrugated in the U.S. business, as you have to agree, at least on the European side. Let me take the second question there, Lars.

Speaker Change: Thank you and thank you for taking the questions. So, coming back to what Jessica said, Ken, about the decentralized operating model, which is obviously something that's been very successful at Smurfit Kappa, and a few years ago WestRock did the opposite, centralizing that.

Tony Smirfit: What sort of actions are you taking to roll out your code so your business model into the legacy WestRock system, and what sort of time frame would you have us think about that.

Speaker Change: What sort of actions are you taking to roll out your business model?

Speaker Change: into the legacy WestRock system and what sort of time frame would you have us think about that? And also on the metrics of value-based pricing on your commercial success in boxes in Europe , what are the opportunities you see in the US?

Tony Smirfit: And also on the metrics of value-based pricing on your commercial success and boxes in Europe, what are the opportunities you see in the US to get to that same stage in a way sort of take away the strong link between container board and corrugated in the US business as you have two degree at least in European side.

Speaker Change: to get to that same stage where you in a way sort of take away the strong link between Containable and corrugated in the US business as you have to a degree at least in the European side

Tony Smirfit: Let me take the second question there, Lars. I would say that we have a very strong link between container board and corrugated. That's why the integrated model works for us. What we intend to do is have a very clear focus on unit profitability and empowering people to ensure that they are able to make their own decisions, but overlaying that with some centralization. I mean, there is no question that we in Europe and they were in the Smurfit WestRock will always have some centralized functions that are important to support the local businesses. And that could be an area of purchasing; it can be an area of pan-European or pan-American or global accounts.

Tony Smurfit: Let me take the second question there, Lars. I mean, I would say that we have a very strong link between containerboard and corrugated. That's why the integrated model works for us. What we intend to do is have a very clear focus on unit profitability and empowering people to ensure that they are able to make their own decisions. But overlaying that with some centralization, I mean, there is no question that we in Europe and they in the Smurfit Westrock will always have some centralized functions that are important to support the local businesses. And that could be in areas of purchasing. It can be in areas of pan-European or pan-American or global accounts. There is legal accounting. There are things that are very, very important to give to local management.

Tony Smurfit: I mean, I would say that we have a very strong link between container board and corrugated. That's why the integrated model works for us. You know, what we intend to do is have a very clear focus on unit profitability and empower people to ensure that they are able to make their own decisions. But overlaying that with some centralization. I mean, there is no question that we, we in Europe, and they were in the perfect WestRock, will always have some centralized functions that are important to support the local businesses. And that could be in areas of purchasing. It can be in areas of pan-European or pan-American or global accounts. There is legal accounting.

Speaker Change: Let me take the second question there Lars. I mean I would say that we have a very strong link between container board and corrugated. That's why the integrated model works for us.

Speaker Change: You know, what we intend to do is have a very clear focus on unit profitability and empowering people.

Speaker Change: to ensure that they are able to make their own decisions but overlaying that with some centralization. I mean there is no question that we in Europe and they were in the Smurfit WestRock.

Speaker Change: will always have some centralised functions that are important to support the local businesses.

Speaker Change: and that can be in areas of purchasing, it can be in areas of pan-European or pan-American or global accounts.

Tony Smirfit: There are legal accounting. There are things that are very, very important to give to local management. But at the end of the day, it's the heart of it is to empower local management to develop businesses in their own areas, to deal with their own issues in their own area and become profit centers. And that's what has worked for us through decades. And frankly, speaking when I, the number of facilities I've been to in Legacy WestRock are very excited by this, because that's where a number of the operations came from, whether it's Southern Container, Midwest Echo, people, you know, Gandhi. Those operations were very focused on central our decentralized profitability.

Tony Smurfit: There are things that are very, very important to give to local management. But at the end of the day, at the heart of it is to empower local management to develop businesses in their own area, deal with their own issues in their own area, and become profit centers. And that's what has worked for us for decades.

Speaker Change: There is legal accounting. There are things that are very, very important to give to local management. But at the end of the day, at the heart of it is to empower local management to develop businesses in their own area, to deal with their own issues in their own area and become profit centers. And that's what has worked for us.

Tony Smurfit: But at the end of the day, at the heart of it is to empower local management to develop businesses in their own area, to deal with their own issues in their own area, and become profit centers. And that's what has worked for us through decades. And frankly speaking, the number of facilities I've been to in legacy WestRock are very excited by this because that's where a number of the operations came from, whether it's Southern Container, MeadWestvaco, Gandhi. Those operations were very focused on decentralized profitability. And I think that's going to be a very good thing for the organization and a very good thing for profitability. And ultimately, yes, that does bring higher margins and higher profitability because you go after more local accounts and you look after local accounts rather than just centralized big accounts.

Tony Smurfit: And and frankly speaking, when I the number of facilities I've been to in legacy WestRock are very excited by this because that's where a number of the operations came from, whether it's Southern Container, Midwest Seiko, people, you know, Gandhi, those operations were very focused on central or decentralized profitability. And I think that that's going to be a very good thing for for the organization and very good thing for profitability. And ultimately, yes, that does bring higher margins and higher profitability because, you know, you go after more local accounts and you look after local accounts rather than than just just centralized big accounts. And that's that unleashes the entrepreneurialism, which which we intend to do. We won't get it right in every factory.

Speaker Change: through decades and

Speaker Change: and frankly speaking when I...

Speaker Change: the number of facilities I've been to in Legacy WestRock are very excited by this because that's where a number of the operations came from, whether it's Southern Container, Midwest Baco, people, you know, Gandhi, those operations were very focused on central or decentralized profitability and I think that's

Tony Smirfit: And I think that's going to be a very good thing for the organization and a very good thing for profitability. And ultimately, yes, that does bring higher margins and higher profitability, because you go after more local accounts, and you look after local accounts rather than just centralized big accounts. And that unleashes entrepreneurialism, which we intend to do. We won't get it right in every factory. Not every manager is going to be able to make a transition. But, you know, as I say, what I detect so far is huge enthusiasm for everybody for this kind of model.

Speaker Change: That's going to be a very good thing for the organization and a very good thing for profitability. And ultimately, yes, that does bring higher margins and higher profitability because, you know, you go after more local accounts and you look after local accounts rather than just centralized big accounts.

Tony Smurfit: And that unleashes entrepreneurialism, which we intend to do. We won't get it right in every factory. Not every manager is going to be able to make the transition. But as I say, what I detect so far is huge enthusiasm for everybody for this kind of model.

Speaker Change: that unleashes the entrepreneurialism which which we intend to do. We won't get it right in every factory, not every manager is going to be able to make transition and but you know as I say what I detect so far is is huge enthusiasm for everybody for this kind of model.

Ken Bowles: Not every manager is going to be able to make the transition. But, you know, as I say, what I've detected so far is huge enthusiasm from everybody for this kind of model. Yeah, I think a lot of other questions are wrapped up in there. I think it's about, you know, full income statement responsibility rather than the idea that you're, you know, your, your purpose is to kind of push the box plan.

Ken Bowles: Yeah. I think, Lars, look, a lot of both questions are wrapped up in there. I think it's about full income statement responsibility rather than the idea that your purpose is to kind of cost push into the box plans. But it's not a model that's new to legacy WestRock. I mean, it's a model they had in place. So the journey to kind of total decentralization is not that long and not fully complete in a lot of areas. So it's not that the model is not understood. There's lots of people who will remember it. But it's about, as Tony said, it's getting around the place and kind of pushing that down and getting access to the data.

Ken Bowles: Yeah, I think a lot of other questions arrived up in there. I think it's about, you know, full and stable responsibility rather than the idea that you're, you know, you're your purpose is to kind of push into the box fan. So, but it's not a model that's, you know, new to legacy. Legacy WestRock means the model they had in place. So the journey to kind of totally centralization is not that long and not fully completely in a lot of areas. So it's not that the model is not understood. There's lots of people who will remember it, but it's a very, as Tony said, it's getting around the basin and pushing that down and getting access to the data.

Speaker Change: Yeah, I think a lot of those questions are wrapped up in there. I think it's about, you know, full income statement responsibility rather than the idea that you're, you know, your purpose is to kind of push into the box plan. So, but it's not a model that.

Ken Bowles: So, but it's not a model that, you know, is new to Legacy WestRock. I mean, it's the model they had in place. So the journey to kind of total decentralization is not that long and is not fully complete in a lot of areas. So it's not that the model is not understood. There are lots of people who will remember it.

Speaker Change: you know, new to Legacy WestRock. I mean, it's the model they had in place. So the journey to kind of

Speaker Change: Total decentralization is not that long and not fully complete in a lot of areas. So it's not that the model is not understood. There's lots of people who will remember it. But it's about, as Tony said, it's getting around the place and pushing that down and getting access to the data. So.

Ken Bowles: But it's about, as Tony said, getting around the pace and pushing that down and getting access to the data. So, and if you like, understanding that the role of the central function is to support capital allocation and take away, if you like, the pain of governance compliance and those things in the operations allow the operations to do what they should be doing, which is making paper consumer packaging and boxes.

Ken Bowles: So, and if you like, you know, understanding that the role of the central function is to support around capital allocation and take away, if you like, take away the pain of governance compliance and those things in the operations and allow the operations to do what they should be doing, which is making paper consumer packaging and boxes.

Ken Bowles: If you like, understanding that the role of the central function is to support around capital allocation and take away, if you like, the pain of governance, compliance, and those things in the operations, allow the operations to do what they should be doing, which is making paper, consumer packaging, and boxes. In terms of the second one, I think Tony wrapped some of it up there too, which is that price over volume. In reality, you know, the journey we went on there around, if you like, proving to our customers where we could add value to the chain. But we have to demonstrate that. And I think it's around innovation. I think it's around the ever-increasing push for sustainability and where we can kind of fit into our customers' pictures around all those things.

Tony: and if you like you know understanding that the role of the central function is to support around capital allocation and take away if you like take away the pain of governance compliance and those things the operations allow the operations to do what they should be doing which is making paper consumer packaging and boxes

Ken Bowles: In terms of the second one, I think Tony wraps it a little bit up there too, which is that price over volume. In reality, you know, the journey we went on there around, you know, if you like, proving to our customers where we can add value to the chain, but we have to demonstrate that. And I think it's around innovation. I think it's around the ever, ever increasing push for sustainability and where we can kind of fit into our customers' pictures around all those things. I think they're relatively new in the U.S. context, particularly around ESG and where that fits.

Tony Smirfit: In terms of the second one, Tony wraps a little bit up there too, which is that twice over volume and reality. You know the journey we went on there around, you know, if you like, proven to our approach, wherever we could add value to the chain, but we have to demonstrate that. And I think it's around innovation. I think it's around the ever, ever increasing push with sustainability and where we can kind of sit into our customers' pictures around all those things. I think they're relatively new in the US context, particularly I think we're at ESG and where that sits.

Tony: In terms of the second one, I think Tony wraps it up there too, which is that price over volume in reality.

Tony: You know the journey we went on there around.

Tony: If you like proving to our customers where we can add value to the chain.

Tony: but we have to demonstrate that and I think it's around innovation, I think it's around the ever ever increasing push for sustainability and where we can kind of fit into our customers pictures around all those things.

Ken Bowles: I think, particularly within that, let's go through emissions and where we can really play a part, particularly in the FMCG space. So, I think, you know, the pattern and journey are not going to be that dissimilar from what we've seen in Europe. I think a lot of it, though, is around, again, like we have to do with the European model, prove it out in terms of the tools, technology, data, experience centers, innovation centers, which WestRock also has, and showing that value to our customers, and by that, you know, coming through Margin as we've made it come through in Smurfit Kappa. Thank you. We will take our next question from Philippe Lange. Jeffries, your line is open. Please go ahead.

Ken Bowles: I think they're relatively new in the US context, particularly, I think, around ESG and where that sits. I think particularly within that, Scope 3 emissions and where we can really play a part, particularly in the FMCG space. So I think the pattern and journey is not that going to be that dissimilar from what we've seen in Europe. I think a lot of it, though, is around, again, like we had to do with the European model, is prove it out in terms of the tools, technology, data, experience centers, innovation centers, which WestRock also have, and showing that value to our customers. And by that, coming through margin as we've made it come through in Smurfit Kappa.

Tony: I think they're relatively new in the U.S. context, particularly I think around ESG and where that sits. I think particularly within that, let's go through emissions and where we can really play a part, particularly in the FMCG space.

Tony Smirfit: I think particularly within that scope through emissions and where we can really play a part, particularly in the FMCG space. So, I think, you know, the passion and journey is not that going to be that dissimilar from what we've seen in Europe. I think a lot of it though is around, again, like we have to do in the European model, is proven out in terms of the tools, technology, data, experience centers, innovation centers, which restaurant also have, and showing that value to our customers. And by that, you know, coming through margin, as we've made it come through in Swerveh Kappa.

Tony: So I think the pattern and journey is not going to be that dissimilar from what we've seen in Europe . I think a lot of it, though, is around, again, like we have to do with the European model, is prove it out in terms of the tools, technology, data, experience centers, innovation centers, which WestRock also has, and showing that value to our customers.

Tony: and by that you know coming through margin as we've made it come through in Smurfit Kappa.

Philippe: Thank you. We will take our next question from Philippe and Jeffrey. So, line is open; please go ahead.

Lars Kjellberg: Thank you.

Tony: Thank you.

Operator 2: We will take our next question from Philip Ng, Jefferies. Your line is open. Please go ahead.

Operator: We will take our next question from Philip Ng, Jefferies. Your line is open. Please go ahead.

Speaker Change: We will take our next question from

Tony Smirfit: Hey guys, I'm looking forward to working with you going forward. A lot of opportunity here. Tony and team, you guys talked about how you want to run it locally, empower local box managers to kind of help us contextualize how that ramp will happen called the next few years. You know, appreciating the European system. There's work to be done on the harmonization. Those things are usually a little bumpy out of the gate. So, is there any disruption that we should be mindful of in terms of the PNL unpack? What kind of investments you have to make on the box side?

Philippe Lange: Hey guys, looking forward to working with you going forward. There is a lot of opportunity here. Tony and team, you guys talked about how you want to run it locally, empower local box managers to kind of help us contextualize how that ramp will happen, call it the next few years, you know, appreciating the ERP system, there's work to be done on the harmonization, those things are usually a little bumpy out of the gate. So is there any disruption that we should be mindful in terms of the P&L impact? What kind of investments do you have to make on the box side?

Philip Ng: Hey, guys. Looking forward to working with you going forward. A lot of opportunity here. Tony and team, you guys talked about how you want to run it locally, empower local box managers to kind of help us contextualize how that ramp will happen, call it, the next few years. Appreciating the European system, there's work to be done on the harmonization. Those things are usually a little bumpy out of the gate. So is there any disruption that we should be mindful of in terms of the P&L impact? What kind of investments do you have to make on the box side? And then from a people standpoint, this is a big cultural shift. Is there a big step-up investment on the sales force and kind of relying on the KPIs?

Speaker Change: Hey guys, looking forward to working with you going forward. A lot of opportunity here.

Speaker Change: Tony and team, you guys talked about how you want to run it locally.

Speaker Change: empower local box managers to kind of help us contextualize how that ramp will happen, call it the next few years, you know appreciating the ERP system.

Speaker Change: there's work to be done on the harmonization. Those things are usually a little bumpy out of the gate. So is there any disruption that we should be mindful in terms of the P&L unpack?

Tony Smurfit: And then from a people standpoint, you know, this is a big cultural shift. You know, is there a big step up in investment from the sales force and kind of relying on KPIs? So a lot to unpack, but just kind of help us contextualize and think through how this ramp and integration is going to progress next year. And we've already started some of the dismantling of some of the issues that are centralized and pushing them back to the divisions first and then ultimately down to the local level. So this is not going to be a massive cultural change for a lot of people. For some, it will, and some people will get on the journey, and some people won't.

Tony Smirfit: And then, from a people's standpoint, you know, this is a big cultural shift. You know, is there a big top-up investment from the Salesforce and kind of relying the KPIs? So, a lot's unpacked, but just kind of help us contextualize and think through how this ramp and integration is going to progress next year. So, Philippe, I think, as I said, there's already a lot of enthusiasm and a lot of the legacy people within the company are attuned to what we are doing and excited about what we're doing. So, I think I don't think it's going to be a big cultural shift as you are mentioning there.

Speaker Change: What kind of investments do you have to make on the box side?

Speaker Change: And then from a people standpoint, you know, this is a big cultural shift.

Philip Ng: So a lot to unpack, but just kind of help us contextualize and think through how this ramp and integration is going to progress the next few years.

Speaker Change: Is there a big step up investment from the sales force in kind of relying on the KPIs? So a lot to unpack, but just kind of help us contextualize and think through how this ramp in integration is going to progress next year.

Tony Smurfit: So Philip, I think, as I said, there's already a lot of enthusiasm, and a lot of the legacy people within the companies are attuned to what we're doing and excited about what we're doing. So I don't think it's going to be as big a cultural shift as you are mentioning there. I think, as I said, we've seen over 100 operations now, and there's a degree of really big enthusiasm for what we're doing and what we're going to do. And we've already started some of the dismantling of some of the issues that are centralized and pushing them back to the divisions first and then ultimately down to the local level. So this is not going to be a massive cultural change for a lot of people. For some, it will. And some people will get on the journey, and some people won't.

Philip: Philip, I think as I said there's already a lot of enthusiasm and a lot of the legacy people within the companies are

Philip: are attuned to what we're doing and excited about what we're doing. So I don't think it's going to be as big a cultural shift as you are mentioning there. I think as I said we've seen over 100 operations now and there's a degree of really big enthusiasm for what we're doing and what we're going to do and we've already started some of the dismantling of some of the issues that

Tony Smirfit: I think, as I said, we've seen over a hundred operations now, and there's a degree of really big enthusiasm for what we're doing and what we're going to do. And we've already started some dismantling of some of the issues that are centralized and pushing them back to the divisions first and then ultimately down to the local level. So, this is not going to be a massive cultural change for a lot of people; for some, it will, and some people will get on the journey and some people won't. And that's just the fact of the way we're going to run the business.

Philip: that are centralized and pushing them back to the divisions first and then ultimately down to the local level. So this is not going to be a massive

Philip: cultural change for a lot of people. For some, it will, and some people will get on the journey, and some people won't, and that's just the...

Tony Smurfit: That's just a fact of the way we're going to run the business. I think with regard to the investments that will be needed, the investments are already in there, so to speak. Obviously, there'll be some more investments to be made, but they'll be based upon where we can get the best returns and the best opportunities for developing the business on a local and integrated way. And that's what we've always done, Philip, and that's what we'll continue to do. So I don't think it's a lot of it. It's a very exciting journey for these people.

Ken Bowles: I think, with regard to the investments that will be needed, the investments are already in there, so to speak. Obviously, there'll be some more investments to be made, but they'll be based upon where we can get the best returns and the best opportunities for developing the business in a local and integrated way. And that's what we've always done, set up, and that's what we'll continue to do. So I don't think it's it's it's it's it's it's it's it's a lot a lot of it's very exciting journey for our people for these people. Yeah, I think Philip as well.

Tony Smurfit: And that's just a fact of the way we're going to run the business. I think with regard to the investment that will be needed, the investments are already in place, so to speak. Obviously, there'll be some more investments to be made, but they'll be based on where we can get the best returns and the best opportunities for developing the business in a local and integrated way. And that's what we've always done, Philip, and that's what we'll continue to do.

Philip: the fact of the way we're going to run the business, I think.

Philip: I think with regard to the investments that will be needed, that investments are already.

Philip: in there, so to speak. Obviously, there'll be some more investments to be made, but they'll be based upon where we can get the best returns and the best opportunities for developing the business on a local and integrated way. And that's what we've always done, Philip, and that's what we'll continue to do.

Tony Smurfit: So I don't think it's, it's a lot of it's a very exciting journey for our people, for these people. I think, Philip, as well, just on the disturbance point, having spent many years and many roles on the SKG side, implementing IT systems, I think the one thing that you always need to be mindful of is not disturbing the business because, as my colleagues remind me, our job is to sell boxes. It's not to put in an IT system.

Philip: So I don't think it's, it's a lot of it's very exciting journey for our people, for these people.

Ken Bowles: Yeah. I think, Philip, as well, just on the disturbance point, having spent many years in many roles on the SKG side implementing IT systems, I think the one thing that you always need to be mindful of is not disturbing the business. Because the reality is, as my colleagues will remind me, our job is to sell boxes. It's not to put an IT system. So what we will do is to follow and support the business with as little disruption as possible. That may mean it takes slightly longer than we might like, but it's about making sure that the business does what the business has to do because that's the most important thing. And kind of like I was saying earlier, there's no burning platforms in WestRock. So those systems can run quite happily, and we can manage with them for a good period of time.

Ken Bowles: I'll just on the disturbance point. You know, haven't haven't spent many years and many roles on the SKG side implementing IT systems. I think the one thing that you always need to be mindful of is not disturbing the business because the reality is, as my colleagues remind me, our job is to sell boxes. It's not to put an IT system. So, you know, what we will do is to follow and support the business with as little disruption as possible, but that may mean it takes slightly longer than we might like. But it's about making sure that the business does what the business has to do because that's the most important thing.

Philip: Yeah, I think Philip as well, just on the disturbance point, you know, having spent many years and many roles on the SKG side implementing IT systems, I think the one thing that you always need to be mindful of is not disturbing the business, because the reality is...

Ken Bowles: So, you know, what we will do is to follow and support the business with as little disruption as possible. That may mean it takes slightly longer than we might like, but it's about making sure that the business does what the business has to do because that's the most important thing. And, kind of like I was saying earlier, there are no burning platforms in WestRock.

Speaker Change: As my colleagues remind me, our job is to sell boxes, it's not to put an IT system.

Speaker Change: You know, what we will do is to follow and support the business with as little disruption as possible. That may mean...

Speaker Change: It takes slightly longer than we might like, but it's about making sure that the business does what the business has to do, because that's the most important thing.

Ken Bowles: I'm kind of like I said earlier, there's no burning platforms in Westrock, so those systems can run quite happily and we can manage with them for a good period of time. But I think ultimately that we the idea is these programs and projects which are bumpy or a dead rise should happen. And with this little noise and disturbance to the online business as possible, that's how it goes.

Speaker Change: And kind of like I was saying earlier, there's no burning platforms in WestRock. So those systems can run quite happily and we can manage with them for a good period of time.

Ken Bowles: But I think ultimately, the idea of this is these programs and projects, which are bumpy or dead right, should happen with as little noise and disturbance to the underlying business as possible. That's always the goal.

Ken Bowles: So those systems can run quite happily, and we can manage with them for a good period of time. But I think ultimately, the idea of it is these programs and projects, which are bumpy or dead right, should happen with as little noise and disturbance to the underlying business as possible. That's always the goal.

Speaker Change: but I think ultimately the idea of this is these programs and projects which are bumpy or dead right should happen with with as little noise and disturbance to the online business as possible. That's always the goal.

Ken Bowles: Gotcha. You guys mentioned there's work to be done in certain pockets of the legacy, Westrock, and harmonize. It's perfect in Westrock collectively.

Tony Smurfit: You guys mentioned there's work to be done in certain pockets of the legacy of WestRock and harmonize Smurfit and WestRock collectively. What are some of the areas that you see the best opportunities to really, really unlock value? Is it on the mill side? Is it on the box side?

Philip Ng: Gotcha. And you guys mentioned there's work to be done in certain pockets, the legacy WestRock and harmonize Smurfit and WestRock collectively. What are some of the areas that you see the best opportunities to really, really unlock values? On the mill side or on the box side? Just give us a little more perspective in terms of the opportunities there and then the $400 million synergies. What are the big buckets and how that kind of phases in?

Speaker Change: Gotcha. You guys mentioned there's work to be done in certain pockets of the legacy WestRock and harmonize Smurfin and WestRock collectively.

Tony Smirfit: What are some of the areas that you see the best opportunities to really, really unlock values on the mill side and in the box side. Just give us a little more perspective in terms of the opportunities there and then the 400 million synergies. What are the big buckets and how that kind of phases in?

Speaker Change: What are some of the areas that you see the best opportunities to really, really unlock values? Is it in the mill side? Is it in the box side? Just give us a little more perspective in terms of the opportunities there and then the 400 million synergies. What are the big buckets and how that kind of phases in?

Tony Smurfit: Just give us a little more perspective in terms of the opportunities there and then the 400 million synergies. What are the big buckets and how that kind of phases in? I think on the, I'll leave Ken to talk about the synergies, but on the operating side there's a bit of both to be honest. I mean you know we are going to continue to look at the mill system and make sure that we optimize that mill system with regard to the supply chain, make sure that the mills run the grades that suit them like we do in Europe, make sure that the whole organization is focused on ensuring the lowest costs to the box plants from the integrated mill system and obviously with the synergies that we're bringing in the mill system I think that's going to be, that's going to allow us to do that even even better as we go into the second half and into the next year.

Tony Smirfit: Well, I think I think on the I'll leave Ken talk about the Sooners, but on the operating side, there's a bit of both to be honest. I mean, you know, we are going to continue to look at the mill system and make sure that we optimize that mill system with regard to the supply chain. Make sure that the mills run the grades that suit them like we do in Europe. Make sure that the whole organization is focused on ensuring the lowest cost to the box bands from the integrated mill system. And obviously, with the synergies that we're bringing in the mill system, I think that's going to be, that's going to allow it to that even better as we go into the second half and into the next year.

Tony Smurfit: Well, I think on that, I'll leave Ken to talk about the synergies. But on the operating side, there's a bit of both, to be honest. I mean, we are going to continue to look at the mill system and make sure that we optimize that mill system with regard to the supply chain, make sure that the mills run the grades that suit them like we do in Europe, make sure that the whole organization is focused on ensuring the lowest cost to the box plants from the integrated mill system. And obviously, with the synergies that we're bringing in the mill system, I think that's going to allow us to do that even better as we go into the second half and into the next year.

Speaker Change: Well, I think on the... I can't talk about the synergies, but on the...

Speaker Change: Operating side there there's a bit of both to be honest I mean you know we we are going to continue to operate in

Speaker Change: look at the mill system and make sure that we optimize that mill system with regard to the supply chain, make sure that the the mills run the grades that suit them like we do in Europe , make sure that the whole organization is focused on ensuring the lowest costs to the box plant from the integrated mill system.

Speaker Change: obviously with the synergies that we're bringing in the mill system.

Speaker Change: I think that's going to allow us to do that even better as we go into the second half and into the next year. With regard to the box system, there's just a few legacy...

Tony Smirfit: With regard to the box system, there's just a few legacy box bands that really I would say that we just need to to develop out to make sure that they are either going to be efficient box plans or they won't be existing. So we just need to figure out which ones those are. But, as I say, the legacy Westrock business has already been doing quite a bit of that. And we're going to continue on doing some of that, maybe a little bit more speed as we move forward.

Tony Smurfit: With regard to the box system, there's just a few legacy box plans that really, I would say, that we just need to develop out to make sure that they are either going to be efficient box plants or they won't be existing. So we just need to figure out which ones those are. But as I say, the legacy WestRock business has already been doing quite a bit of that, and we're just going to continue on doing some of that, maybe with a little bit more speed as we move forward.

Tony Smurfit: With regard to the box system, there are just a few legacy box plants that really I would say that we just need to develop out to make sure that they are either going to be efficient box plants or they won't exist, so we just need to figure out which ones those are.

Speaker Change: box bath that really I would say that we just need to to to

Speaker Change: develop out to make sure that they they are either going to be efficient box plants or they won't be existing so we just need to figure out which ones those are.

Tony Smurfit: But as I say, the legacy WestRock business has already been doing quite a bit of that, and we're going to continue to do some of that, maybe with a little bit more speed as we move forward. And on the synergy number, if you track back to the presentation back in September, Phillip, you have a lot of detail, but broadly, one of the biggest focus areas there was around paper integration. If you remember that Smurfit Capital was short about 400,000 tons, and particularly in our Latin American business, and we bought some of that paper from WestRock, but not all of it. So a good chunk around paper integration. A lot of the other synergies, and they're all, remember, cost synergies.

Speaker Change: but as I say

Speaker Change: The legacy WestRock business has already been doing quite a bit of that and we're just going to continue on doing some of that, maybe with a little bit more speed as we move forward.

Ken Bowles: And on the synergy number, if you track back to the presentation back in September, if you have a lot of detail, but broadly, one of the biggest focus there was on paper integration, if you remember that. So for Kappa was was short with 4,500,000 tons and in particular, our Latin American business. And we bought some of that paper from WestRock and all of it. So a good chunk around paper integration. A lot of the other synergies, and they're all remember cost synergies. There's no real revenue synergies in there. A lot around logistic and distribution, you know, particularly around the overlap and cross between both organizations.

Ken Bowles: And on the synergy number, if you track back to the presentation back in September, Philip, you have a lot of detail. But broadly, one of the biggest focuses there was around paper integration, if you remember that. Smurfit Kappa was short about 400,000, 500,000 tons, particularly in our Latin American business. And we bought some of that paper from WestRock, but not all of it. So a good chunk around paper integration. A lot of the other synergies, and they're all, remember, cost synergies. There's no real revenue synergies in there. A lot around logistics and distribution, particularly around the overlap and cross between both organizations, simple things. Where WestRock would have shipped paper to Europe and held it in external warehouses, we clearly take that into our own locations now and kind of save the cost there, which can be quite significant.

Speaker Change: On the Synergy number, if you track back to the presentation back in September , you have a lot of detail, but broadly one of the biggest focus there was around paper integration, if you remember that.

Speaker Change: Smurfit Kappa was short about 4,500,000 tons in our Latin American business.

Speaker Change: and we bought some of that paper from WestRock, but not all of it, so a good chunk around paper integration. A lot of the other synergies, and they're all, remember, cost synergies, there's no real revenue synergies in there, a lot around logistics and distribution, you know, particularly around the overlap and cross between both organizations.

Ken Bowles: There's no real revenue synergies in there, a lot around logistics and distribution, particularly around the overlap and cross between both organizations. Simple things, like where WestRock would have shipped paper to Europe and held it in external warehouses.

Ken Bowles: Simple things, you know, where Westrock put a ship paper to Europe and held it next down, whereas we clearly take that into our own locations now and kind of save the cost there, which can be quite significant. So the presentation back to September gives you glorious detail, but suffice to say that off those focus, the biggest one is integration of paper, which was always, you know, our strategic priority in the region anyway. And just to remind you that the run rate of those is to be done by the end of 2025.

Speaker Change: simple things, you know, where WestRock would have shipped paper to Europe and held it in external warehouses. We clearly take that into our own locations now and kind of save the cost there, which can be quite significant.

Ken Bowles: We clearly take that into our own locations now and save the cost there, which can be quite significant. So the presentation back in September gives you glorious detail, but suffice to say that of these five focus areas, the biggest one is integration of paper, which was always our strategic priority in the region anyway. And just to remind you that the run rate of these is to be done by the end of 2025. We will take our next question from Gabe Haight, Wells Fargo. Your line is open. Please go ahead.

Ken Bowles: So the presentation back in September gives you glorious detail. But suffice to say that of those focuses, the biggest one is integration of paper, which was always our strategic priority in the region anyway. And just to remind you that the run rate of those is to be done by the end of 2025.

Speaker Change: So the presentation back in September gives you glorious detail, but suffice it to say that Opto's focus, the biggest one, is integration of paper, which was always, you know, our strategic priority in the region anyway. And just to remind you that the run rate of those is to be done by the end of 2025.

Gabe Hate: We will take our next question from Gabe Hate, Wells Fargo. Your line is open. Please go ahead.

Operator 2: We will take our next question from Gabe Hajde, Wells Fargo. Your line is open. Please go ahead.

Operator: We will take our next question from Gabe Hajde, Wells Fargo. Your line is open. Please go ahead.

Speaker Change: We will take our next question from Gabe Haight, Wells Fargo. Your line is open. Please go ahead. Tony, Ken, good afternoon. Thanks for taking the question.

Gabe Hate: So, 2010, Good afternoon. Thanks for taking the question.

Gabe Haight: Tony, Ken, good afternoon. Thanks for taking the question. I wanted to start, I guess, with the global paper and the similar line of questioning as Mr. Staphos. As you evaluate that segment, I'm assuming that a portion of that is what you're talking about here in terms of forward integration, but maybe the decision tree and how you think about increasing vertical integration across the corrugated system or coming to a conclusion that maybe a mill is better served or more valuable for someone else versus yourself Yeah, hi Gabe.

Gabe Hajde: Tony, Ken, good afternoon. Thanks for taking the question. Wanted to start, I guess, with global paper and a similar line of questioning as Mr. Staphos. As you evaluate that segment, I'm assuming that a portion of that is what you're talking about here in terms of forward integration. But maybe the decision tree and how you think about increasing vertical integration across the corrugated system or coming to a conclusion that maybe a mill is better served or more valuable for someone else versus yourself.

Tony Smirfit: I wanted to start, I guess, with global paper and similar line of questioning as Mr. Staffel. As you evaluate that segment, I'm assuming that a portion of that is what you're talking about here in terms of forward integration, but maybe the decision tree and how you think about increasing vertical integration across the corrugated system, or coming to a conclusion that maybe a mill is better served or more valuable for someone else versus yourself. Yeah, hi, Gabe. I think when we look at it, I don't see a particular forward problem going forward with the corrugated papers and corrugated paper for corrugated.

Gabe Haight: I wanted to start, I guess, with Global Paper and similar.

Speaker Change: line of questioning as Mr. Staphos, as you evaluate that segment.

Gabe Haight: I'm assuming that a portion of that is what you're talking about here in terms of forward integration, but maybe the decision tree and how you think about

Speaker Change: increasing vertical integration across the corrugated system or coming to a conclusion that maybe a mill is better served or more valuable for someone else versus yourself.

Tony Smurfit: I think when we look at it, you know, I don't see a particular forward problem going forward with corrugated papers and corrugated paper for corrugated. So I think if you take craft liners and white tops and mediums out of it, you know, I think then we should look at some of the consumer grades and specifically SPS. And that's something we just need a little bit of time to evaluate. You know, I think there is a very good market for SBS. The question is, how good is it going to be?

Tony Smurfit: Yeah. Hi, Gabe. I think when we look at it, I don't see a particular forward problem going forward with corrugated papers and paper for corrugated. So I think if you take Kraft liners and white tops and mediums out of it, I think then we look at some of the consumer grades and specifically SBS. And that's something we just need a little bit of time to evaluate. I think there's a very good market for SBS. The question is, how good is it going to be? And that's something that we need some time to evaluate. I think that others are betting on the space, and some are not betting on the space. And as I say, we'll look at it and decide over the next little period of time. But it has been a very good business for legacy WestRock in the past and highly profitable.

Speaker Change: Yeah, hi Gabe. I think when we look at it, you know, I don't see a particular forward problem going forward with

Tony Smirfit: So I think if you take craft liners and white tops and mediums out of it, I think then we then look at some of the consumer grades and specifically SPS, and that's something we just need a little bit of time to evaluate. I think there's a very good market for SPS; the question is how good is it going to be, and that's something that we need some time to evaluate. I think that others are betting on the space, and some are not betting on the space, and as I say, we'll look at it and decide over the next little period of time. But it has been a very good business for legacy Westrock in the past and highly profitable, and it's something that obviously, if we can see a way to integrate forward more and develop it, then we will. And if it doesn't, isn't in that scenario, we'll reevaluate and then look at it.

Speaker Change: corrugated papers and corrugated paper for corrugated so

Tony Smurfit: And that's something that we need some time to evaluate. I think that others are betting on the space, and some are not. And as I say, we'll look at it and decide over the next little period of time. But, you know, it has been a very good business for Legacy WestRock in the past and highly profitable. And something that, you know, obviously, if we can see a way to integrate it forward more and develop it, then we will.

Speaker Change: You know, I think, I think there's...

Speaker Change: A very good market for SBS. The question is how good is it going to be and that's something that we need some time to evaluate.

Speaker Change: I think that...

Speaker Change: Others are betting on the space and some are not betting on the space and, as I say, we'll look at it and decide over the next little period of time. But, you know, it has been a very good business for Legacy WestRock in the past and highly profitable and something that, you know, obviously, if we can see a way to

Tony Smurfit: And it's something that, obviously, if we can see a way to integrate forward more and develop it, then we will. And if it isn't in that scenario, we'll reevaluate and look at it. But at the moment, I would say that it's part of the team, and we'll continue to look at it as we get to know the business a bit better.

Tony Smurfit: And if it isn't in that scenario, we'll reevaluate and look at it. But at the moment, I would say that it's part of the team, and we'll continue to look at it as we get to know the business a bit better.

Speaker Change: integrate forward more and develop it, then we will. And if it isn't in that scenario, we'll re-evaluate and look at it. But at the moment I would say that it's part of the team and we'll continue to look at it as we get to know the business a bit better.

Tony Smirfit: But at the moment, I would say that it's part of the team, and we'll continue to look at it as we get to know the business a bit better. Appreciate it.

Gabe Haight: Thank you. And I guess for the second question, your key learnings in running your North American system, there's a lot of shakeup right now in terms of maybe how corrugated businesses are managed and run. When you look at the maybe the food value chain specifically, or food and beverage value chain in Europe relative to the United States, there's a little bit closer linkage, I think, from for merchandisers over in Europe versus the US.

Gabe Hajde: I appreciate it. Thank you. I guess for the second question, your key learnings in running your North American system, there's a lot of shake-up right now in terms of maybe how corrugated businesses are managed and run. When you look at maybe the food value chain specifically or food and beverage value chain over in Europe relative to the United States, there's a little bit closer linkage, I think, for merchandisers over in Europe versus the US. Do you see that as maybe an impediment to executing kind of some of this decentralized approach or value-based selling to your customers or more as an opportunity?

Tony Smirfit: Thank you.

Tony Smirfit: I guess for the second question, your key learnings in running your North American system, there's a lot of shake-up right now in terms of maybe how corrugated businesses are managed and run. When you look at the food value chain specifically, or food and beverage value chain, over in Europe relative to the United States, there's a little bit closer linkage, I think, from merchandiseers over in Europe versus the US. Do you see that as maybe an impediment to executing some of this decentralized approach or value-based selling to your customers, or more as an opportunity?

Speaker Change: Appreciate it. Thank you. And I guess for the second question...

Speaker Change: your key learnings in running your North American system.

Speaker Change: There's there's a lot of shake-up right now in terms of maybe how corrugated businesses are managed and run When you look at the maybe the the food value chain specifically or food and beverage value chain over in Europe relative to the United States There's a little bit closer linkage. I think from for merchandisers

Gabe Haight: Do you see that maybe as maybe an impediment to executing kind of some of this decentralized approach or value-based selling to your customers, or more as an opportunity? No, I think, I think, Gabe, I think it's a huge opportunity. I think when you look at the innovations that we've brought to our customers, who are, you know, many of the same customers in Europe as they are in the United States, and you look at the innovations that we brought to them in Europe, a lot of them want the same innovations in the United States. And that's something that we will, it doesn't, it's not a magic wand, we can't just come over and sprinkle some dust in the United States, and everybody will change their ways.

Speaker Change: over in Europe versus the U.S., do you see that as maybe an impediment to executing kind of some of this decentralized approach or value-based selling to your customers or more as an opportunity?

Tony Smirfit: No, I think it's a huge opportunity. I think when you look at the innovations that we brought to our customers, who are many of the same customers in Europe as they are in the United States, and you look at the innovations that we brought to them in Europe, a lot of them want the same innovations in the United States, and that's something that we will, it's not a magic wand. We can't just come over and sprinkle some dust in the United States, and everybody's going to change their way. But we are going to bring our tools and our innovation to our Salesforce, and over time, we will sell much more on innovation and value than going after a transactional type business. And like others in the space, it is funny how other people have been copying what we are doing.

Tony Smurfit: No, I think, Gabe, I think it's a huge opportunity. I think when you look at the innovations that we've brought to our customers, who are many of the same customers in Europe as they are in the United States, and you look at the innovations that we've brought to them in Europe, a lot of them want the same innovations in the United States. And that's something that we will; it's not a magic wand. We can't just come over and sprinkle some dust in the United States, and everybody's going to change their way. But we are going to bring our tools and our innovation to our sales force. And over time, we will sell much more on innovation and value than going after a transactional-type business. And like others in the space, I mean, it is funny how other people have been copying what we're doing.

Speaker Change: No, I think, I think Gabe, I think it's a huge opportunity. I think when you look at the innovations that we've brought to

Speaker Change: our customers who are, you know, many of the same customers in Europe as they are in the United States and you look at the innovations that we brought to them in Europe .

Speaker Change: A lot of them want the same innovations in the United States, and that's something that we will... It's not a magic wand. We can't just come over and sprinkle some dust in the United States, and everybody's going to change their way. But, you know, we are going to bring our tools and our innovation to our sales force. And over time...

Tony Smurfit: But, you know, we are going to bring our tools and our innovation to our sales force. And over time, we will sell much more on innovation and value than, you know, going after a transactional type business. And, you know, like others in the space, I mean, it is funny how other people have been copying what we're doing. Like others in the space, we will be looking to make sure that we extract value from everything that we do. I mean, the last thing I want to be doing is putting in new machines and running lousy workovers. And because that's just the way it is, it's fool's errands.

Speaker Change: We will sell much more on innovation and value than, you know, going after...

Speaker Change: transactional type business and and you know like others in the space I mean

Tony Smirfit: Like others in the space, we will be looking to make sure that we extract value from everything that we do. The last thing I want to be doing is putting in new machines and running lousy workovers, and because that's just a way, it's just a full variance.

Tony Smurfit: Like others in the space, we will be looking to make sure that we extract value from everything that we do. I mean, the last thing I want to be doing is putting in new machines and running lousy workovers because that's just a waste. It's just a fool's errand. So we have always in Smurfit Kappa looked at profitability of accounts and ensuring that we are able to make money on them. Or if we don't make money on them initially, if we can't turn it into making money on it, we leave those accounts there because then you're just being busy fools. So that has been the way, that's why our margins have grown over time. We make sure that we offer value for our customers. We make sure we give them innovation. But if we don't get paid for it, we then don't do it.

Speaker Change: It is funny how other people have been copying what we are doing. Like others in the space, we will be looking to make sure that we extract value from everything that we do. I mean, the last thing I want to be doing is putting in new machines and running lousy workovers.

Tony Smurfit: So, we have always in Smurf and Cappa looked at the profitability of accounts and ensured that we are able to make money on them. Or if we don't make money on them initially, if we can't turn it into making money on them, we leave those accounts because, you know, then you're just being busy fools. So, that has been the way, and that's why our margins have grown over time. We make sure that we offer value to our customers.

Speaker Change: because that's just a waste, it's a fool's errand. So we have always, in Smurfit Kappa, looked at profitability of accounts and ensuring that we are able to make money on them, or if we don't make money on them initially, if we...

Tony Smirfit: So we have always in Smyr Fakaba looked at profitability of accounts, and ensuring that we are able to make money on them, or if we don't make money on them initially, if we can't turn it into making money on it, we leave those accounts, because then you're just being busy fools. So that has been the way; that's why our margins have grown over time. We make sure that we offer value for our customers; we make sure we give them innovation. But if we don't get paid for it, we then don't do it, and that's what we've been doing for a long period of time in our history, and that's what West Rock will do.

Speaker Change: If we can't turn it into making money on it, we leave those accounts because, you know, then you're just being busy fools. So that has been the way, that's why our margins have grown over time. We make sure that we offer value for our customers. We make sure we give them innovation. But if we don't get paid for it, we then don't do it. And that's what we've been doing for...

Tony Smurfit: We make sure we give them innovation, but if we don't get paid for it, we then don't do it. And that's what we've been doing for, you know, a long period of time in our history. And that's what Westrock will do.

Tony Smurfit: And that's what we've been doing for a long period of time in our history. And that's what WestRock will do. So that's a very clear strategy of ours and will be to make sure that we get paid for the great work that we do.

Speaker Change: you know, a long period of time in our history and that's what WestRock will do. So that's a very clear strategy of ours and will be to make sure that we get paid for the great work that we do.

Tony Smurfit: So, that's a very clear strategy of ours. And we'll make sure that we get paid for the great work that we do. Thank you. Thank you. We will take our next question from Gaurav Jain. Barclays, your line is open. Please go ahead. Hi. Good afternoon or good evening.

Tony Smirfit: So that's a very clear strategy of ours, and we'll be to make sure that we get paid for the great work that we do.

Tony Smirfit: Thank you, thank you, thank you.

Ken Bowles: Thank you.

Tony Smurfit: Thank you.

Speaker Change: Thank you. Thank you.

Gore: We will take our next question from Gore of Jane Barclays. Your line is open; please go ahead. Good afternoon or good evening.

Gaurav Jain: So two questions from me. One is that if I look at your last 12-month EBITDA, it's $4.5 billion. I think if I combine the peak EBITDA of both companies, it was around 5.5. Now, we have a long-term plan laid out by one of your key competitors, which is talking of doubling EBITDA over the medium term. So can you frame the long-term opportunity here? And I'm not asking for guidance, but how high can this four and a half billion dollars go in the medium term, assuming sort of normal macro conditions? Hey Gaurav, well that's a question for nearly 11 o'clock at night in Europe.

Operator 2: We will take our next question from Gaurav Jain, Barclays. Your line is open. Please go ahead.

Operator: We will take our next question from Gaurav Jain, Barclays. Your line is open. Please go ahead.

Speaker Change: We will take our next question from Gaurav Jain. Barclays, your line is open. Please go ahead.

Gaurav Jain: Hi. Good afternoon or good evening. So two questions from me. One is that if I look at your last 12-month EBITDA, it's $4.5 billion. I think if I combine the peak EBITDA of both the companies, it was around $5.5 billion. We had a long-term plan laid out by one of your key competitors, which is talking of doubling EBITDA over the medium term. So can you frame the long-term opportunity here? And I'm not asking for guidance, but how high can this $4.5 billion EBITDA go in the medium term, assuming sort of normal macro conditions?

Ken Bowles: So two questions from me. One is that if I look at your last 12 months, with that's 4.5 billion dollars. I think if I combine the peak a bit of both the companies, it was around 5.5.

Gaurav Jain: Hi, good afternoon or good evening. So two questions from me. One is that if I look at your last 12-month EBITDA at 4.5 billion dollars, I think if I combine the peak EBITDA of both the companies it was around 5.5.

Ken Bowles: No, we had a long-term plan laid out by one of your key competitors, which is talking about doubling a bit that over the medium terms. So can you frame the long-term opportunity here and I'm not asking for guidance, but how high can this poor and a half billion a bit that go in the medium term assuming sort of normal macro conditions. That's a question for nearly 11 o'clock at night in Europe. Look, I think I think the long term ambition has kind of been wrapped up in a lot of what we said today. You know, I think as we start this journey, we start off with two organizations that have had quite different parts where we get to.

Speaker Change: Now, we had a long-term plan laid out by one of your key competitors, which is talking of doubling the bid price.

Speaker Change: over the medium term so can you frame the long-term opportunity here and I'm not asking for guidance but how high can this four and a half billion widder go in the medium term assuming sort of normal macro conditions?

Ken Bowles: Hey, Gaurav. Well, that's a question for nearly 11:00 PM in Europe. Look, I think the long-term ambition has kind of been wrapped up in a lot of what we said today. I think as we start this journey, we start off with two organizations that have had quite different paths to where we get to in the sense that we're coming probably to the end of our last capital cycle. And like I said, the WestRock team are coming through their capital cycle, a lot of good work done. But also fundamentally, I think at a point in the cycle, if you like, from where we sit at joining together, you can consider one of the lower points in terms of where pricing is.

Ken Bowles: Look, I think the long-term ambition has kind of been wrapped up in a lot of what we said today. You know, I think as we start this journey, we start off with two organizations that have had quite different paths to where we get to, in the sense that we know we're coming probably to the end of our last capital cycle. And by death, the WestRock team is coming through their capital cycle; a lot of good work has been done.

Speaker Change: Look, I think the long-term ambition has kind of been wrapped up in a lot of what we've said today. You know, I think as we start this journey, we start off with two organizations that have had quite different paths where we get to.

Ken Bowles: In a sense that we know we're coming probably at the end of our last capital cycle, and by step, the Westrop team are coming through their capital cycle a lot of good work done. But also fundamentally, I think at a point in the cycle, I feel like from where we sit at joining together at you can consider one of the lower points in terms of pricing. Pricing is. I think even if you look back from when we did the deal to where we sit now in terms of. You know, we talked about it in Tony specifically talked about it at the year and quarter one around the unsustainable levels of paper pricing, for example, in Europe, and where companies got to old last couple years and since then, we've seen.

Speaker Change: in a sense that we know we're coming probably to the end of our last capital cycle and by death the WestRock team...

Ken Bowles: But also fundamentally, I think at a point in the cycle, I feel like from where we sit at joining together, you could consider one of the lower points in terms of pricing. I think even if you look back from when we did the deal to where we sit now in terms of, you know, we talked about it, and Tony specifically talked about it at year-end and quarter one around the unsustainable levels of paper pricing, for example, in Europe and where companies have got to over the last couple of years.

Speaker Change: are coming through their capital cycle, a lot of good work done.

Speaker Change: but also fundamentally, I think, at a point in the cycle, I feel like, from where we sit, at joining together, you can consider one of the lower points in terms of where pricing is. I think even if you look back from...

Ken Bowles: I think even if you look back from when we did the deal to where we sit now in terms of we talked about it, and Tony specifically talked about it at the year-end and Q1 around the unsustainable levels of paper pricing, for example, in Europe and where companies have got to over the last couple of years. And since then, we've seen not only a kind of push on paper prices both sides of the Atlantic, but quite clearly a significant step up in OCC as well. So the backdrop conditions as we begin the second half of this year and further on are clearly better. Clearly, also, the backdrop for recovery of those through box pricing is better through the second half, and indeed what that clearly means for 2025 and beyond.

Speaker Change: from when we did the deal to where we sit now in terms of we talked about it and Tony specifically talked about it at the year end and quarter one.

Ken Bowles: And since then, we've seen not only a kind of push on paper prices, both sides of the Atlantic, but clearly a significant step up in OCC as well. So the backdrop conditions as we begin the second half of this year and further on are clearly better. Clearly, also, you know, the backdrop for recovery of those through box pricing is better in the second half.

Tony: Around the unsustainable levels of paper pricing for example in Europe and where companies have got to over the last couple years and since then we've seen

Ken Bowles: Not only a kind of push on paper prices, both sides of the Atlantic was quite clearly a significant step of an OCC as well. So the backdrop conditions, as we begin the second half of this year and further on, are clearly better. Clearly, also, you know, the backdrop for recovery, those true box pricing is better through the second half and indeed what that clearly means for 25 and beyond, but I think.

Tony: Not only a push on paper prices both sides of the Atlantic, but clearly a significant step up in OCC as well.

Tony: The backdrop conditions as we begin the second half of this year and further on are clearly better.

Ken Bowles: And indeed, what that clearly means for 25 and beyond. But I think, you know, we haven't even begun to really understand what the total long-term opportunity of SmartPay WestRock is. I think, you know, you've got two companies that are culturally aligned in terms of how they go to the market commercially. I think you've got two companies who are innovative by nature and two companies who, you know, traditionally have kind of brought their best stuff to their customers.

Tony: Clearly also, you know, the backdrop for recovery of those through box pricing is better through the second half and indeed what that clearly means for 2025 and beyond. But I think, you know, we haven't even begun really to knit together what the total long-term opportunity of Smurfit WestRock is.

Ken Bowles: But I think we haven't even begun really to knit together what the total long-term opportunity of Smurfit Westrock is. I think, though, you've got two companies that are culturally aligned in terms of how they go to the market commercially. I think you've got two companies who are innovative at their nature and two companies who traditionally have kind of brought their best up to their customers. I think it's about unpacking that on a global scale to be what we are, which is the largest and the most sustainable packaging partner on the planet. But that also will take time, as Tony has said.

Ken Bowles: You know, we haven't even begun really to knit together what the total long-term opportunity of the Westrop is. I think, though, you know, you've got two companies that are culturally aligned in terms of how they go to the market commercially. I think you got two companies who are innovative at their nature and two companies who, you know, traditionally have kind of brought their best off to their customers. I think it's on on packing that on a global scale to be, you know, what we are, which is which is large, the largest and the most sustainable patching far from the planet.

Tony: I think though, you know, you've got two companies that are...

Tony: culturally aligned in terms of how they go to the market commercially.

Tony: I think you've got two companies who are innovative at their nature.

Tony: and the two companies who...

Ken Bowles: I think it's about unpacking that on a global scale to be, you know, what we are, which is the largest and the most sustainable packaging partner on the planet. But that also will take time, as Tony has said.

Tony: you know, traditionally have kind of brought their best up to their customers.

Tony: I think it's about unpacking that on a global scale to be what we are, which is the largest and the most sustainable packaging factory on the planet. But that also will take time, as Tony has said.

Ken Bowles: But that is that also will take time, as Tony said. But it's clear from our interactions over the, you know, the soft interactions over the last nine months. Plus the excitement and energy and enthusiasm that we feel as we go around the organization post closed. That there's a willingness, if you like, from us, from the Westrop side, to make sure there's nothing but a roaring success. And that clearly is backed up by the disciplines around capital allocation, you know, in channel investment and the returns focus to brains. What the attention to in terms of the end comes from what they need.

Ken Bowles: But it's clear from our interactions over the soft interactions over the last 9 months, plus the excitement and energy and enthusiasm that we feel as we go around the organization post-close, that there's a willingness, if you like, from a Smurfit side and the WestRock side to make sure that the thing is nothing but a roaring success. And that clearly is backed up by the disciplines around capital allocation, internal investment, and the returns focus it brings, but the attention too in terms of the end customer, what they need. And that's not just, if you like, day-to-day, but clearly the longer-term opportunity because we do exist in an industry that is sectorally in a good shape, but a product, as Tony says, the right place, right time is what the world needs.

Ken Bowles: But it's clear from our interactions over the, you know, the soft interactions over the last nine months, plus the excitement, and energy, and enthusiasm that we feel as we go around the organization post-close, that there's a willingness, if you like, from the Smurfit side and the WestRock side to make sure that this thing is nothing but a roaring success. And that clearly is backed up by the disciplines around capital allocation, you know, internal investment and the returns focus it brings, but attention, too, in terms of the end customer and what they need.

Tony: but it's clear from our interactions over the, you know, the soft interactions over the last nine months.

Tony: Plus the excitement and energy and enthusiasm that we feel as we go around the organization post-close

Speaker Change: that there's a willingness, if you like, from a Smurfit side and a WestRock side to make sure that the thing is nothing but a roaring success.

Speaker Change: and that clearly is backed up by...

Speaker Change: the disciplines around capital allocation, internal investment, and the returns focus that it brings.

Ken Bowles: And that's not just, if you like, day-to-day, but clearly, the longer term is an opportunity because we do exist in an industry that is sectorally in good shape, but a product, as Tony says, the right place, right time, is what the world needs. I think that's only ever going to grow because the consumer continues to desire ever more sustainable products. And in reality, where corrugated or consumer packaging can replace the less sustainable substrate, it's clearly still making that shift.

Ken Bowles: And that's not just if you like day to day, look here; the longer terms opportunity because we do, we do exist in an industry that is sectorally in a good shape. But a product of Tony says the right place, right time is what the world needs. I think that's only ever going to grow because the consumer continues to desire ever more sustainable products, and in reality, where corrugated or consumer patching can replace the less. It's clearly still making that shift.

Speaker Change: with the attention to in terms of the end customer and what they need. And that's not just, if you like, day-to-day, but to the longer-term is opportunity, because we do exist in an industry that is sectorally in a good shape.

Ken Bowles: I think that's only ever going to grow because the consumer continues to desire ever more sustainable products. And in reality, where corrugated or consumer packaging can replace a less sustainable substrate, it's clearly still making that shift. So I think in time, we'll probably frame that longer-term opportunity a lot better. But I think it's fair to say that we start off in a great place and a reality with the backdrop of an industry that's also in a great place.

Speaker Change: But a product, as Tony said, is the right place, right time, is what the world needs. I think that's only ever going to grow because the consumer continues to desire ever more sustainable products and in reality, where corrugated or consumer packaging can replace the less.

Ken Bowles: So I think in time, we'll probably frame that longer-term opportunity a lot better. But I think it's fair to say that we start off in a great place and a reality with the backdrop of an industry that's also in great shape. Sure, thank you so much.

Ken Bowles: So think in time we probably frame that longer term our opportunity a lot better, but I think it's fair to say that we start off in a great place and a reality with the backdrop of the industry that's also a great place.

Tony: less sustainable substrate, it's clearly still making that shift. So I think in time we probably frame that longer term opportunity a lot better, but I think it's fair to say that we start off in a great place, and a reality with the backdrop of an industry that's also in a great place.

Gaurav Jain: Sure. Thank you so much. My second question is that so we'll get Q1 next time for the combined company. So what would be the metrics on which you would guide on a quarterly basis, or you would not guide at all, or would it be something like an adjusted EBITDA number, or free cash flow, or EPS? What is going to be the key metric for this?

Ken Bowles: So much on my second question is that we'll get the first quarter next time for the combined company. So what would be the metrics on which you would guide on a quarterly basis, or you would not guide at all, or wouldn't be something like an adjusted but that number of free cash flow or repairs. Like what is going to be the key metric? We haven't. We haven't kind of settled on what you know the key metrics are probably the ones you see in this release. In reality. Because we've tended to focus on the Smurfit Cafe on EBITAC, clearly the margin quite specifically.

Gaurav Jain: And my second question is that, so we'll get the first quarter next time for the combined company. So what would be the metrics on which you would guide on a quarterly basis, or would you not guide at all, or would it be something like an adjusted EBITDA number or free cash flow or EPS? Like, what is going to be the key metric? We haven't, Gaurav, kind of settled on what, you know, the key metrics are probably the ones that you see in this release.

Speaker Change: Thank you so much and my second question is that so we will get the first quarter next time for the combined company.

Speaker Change: So, what would be the metrics on which you would guide on a quarterly basis or you would not guide at all or would it be something like an adjusted EBITDA number or free cash flow or EPS?

Ken Bowles: We haven't, Gaurav, we haven't kind of settled on what the key metrics are, probably the ones you see in this release. In reality, we've tended to focus in the Smurfit Kappa on EBITDA, clearly the margin quite specifically. And indeed, both organizations traditionally have been strong free cash flow generators. I think whether we guide on a quarterly basis or annual is to be decided. But I think generally, we've always guided annually because I think it gives you a better feel for the year, and you stop getting trapped into the weeds of a kind of quarter-to-quarter analysis. And it allows you to focus much more on the longer term and much more on the thematic drivers of an industry rather than getting caught up on the kind of minutiae. But all three decide and play it out. Thank you so much.

Speaker Change: like what is going to be the key metric?

Speaker Change: We haven't kind of settled on what you know the key metrics are probably the ones that you see in this release. In reality you know we've tended to focus on the Smurfit Kappa on EBITDA clearly the margin quite specifically and indeed you know both organizations traditionally have been strong free cash flow generators.

Ken Bowles: In reality, you know, we've tended to focus on Smurfit Capital on EBITDA, clearly the margin quite specifically. And indeed, you know, both organizations traditionally have been strong free cash flow generators. I think whether we guide on a quarterly basis or annually is to be decided, but I think, generally, we've always guided annually because I think it gives you a better feel for the year and you stop getting trapped in the weeds of a kind of quarterly analysis and allows you to focus much more on the longer term and much more on the thematic drivers of an industry rather than getting caught up on the kind of minutiae. But all three are decided and played out.

Ken Bowles: And indeed, both organizations traditionally have been strong free cash flow generators. I think whether we guide on a quarterly basis or annual is to be decided. I think generally we've always guided annually because I think it gives you a better feel for the year, and you stop getting trapped into the weeds for quarter analysis and allows you to focus much more on the longer term and much more on the dramatic drivers of an industry rather than getting caught up on the kind of minutiae. But all three decide on play days. Thank you so much.

Speaker Change: I think you know whether we guide on a quarterly basis or annual is to be decided. I think we you know generally we've always guided annually because I think it gives you a better feel for the year and you stop getting trapped.

Speaker Change: into the weeds of a kind of quarter-to-quarter analysis that allows you to focus much more on the longer term and much more on the thematic drivers of an industry rather than getting caught up on the kind of minutiae. But all three decided and played out.

Tony Smurfit: Thanks, Gaurav.

Tony Smirfit: That is all the time we have for the question and answer session for today. So I will hand you back to Tony Smurfit for closing remarks.

Ken Bowles: Thank you so much. Well, that is all the time we have for the question and answer session today. So I will hand you back to Tony Smurfit for his closing remarks. Thank you, operator, and thank you all for joining us today. I think we have put together an incredible company. This is going to be a company that will deliver great results as we go forward. And this is a company that is going to be a leader in its field. It's a company that has got really great people. It'll have great assets, and it'll be incredibly uniquely positioned.

Operator 2: That is all the time we have for a question-and-answer session for today. So I will hand you back to Tony Smurfit for closing remarks.

Operator: That is all the time we have for a question-and-answer session for today. So I will hand you back to Tony Smurfit for closing remarks.

Speaker Change: That is all the time we have for question and answer session for today. So I will hand you back to Tony Smurfit for closing remarks.

Tony Smirfit: Yeah, thank you, operator, and thank you all for joining us today. I think we have put together an incredible company. This is going to be a company that will deliver great results as we go forward, and this is a company that is going to be a company that is a leader in its field. It's a company that has got really great people. It will have great assets, and it will be incredibly uniquely positioned to deliver superior returns along with our vision as we go forward. So thank you all. Thank you for your support.

Tony Smurfit: And to deliver superior returns along with our vision as we go forward. So I thank you all. Thank you for your support. It was a moment to say this July 8th, July 5th, I should say. And we look forward to continuing to deliver for this company going forward. Thank you all for joining us. Thank you for joining today's call. You may now disconnect.

Tony Smurfit: Yeah. Thank you, operator. And thank you all for joining us today. I think we have put together an incredible company. This is going to be a company that will deliver great results as we go forward. This is a company that is going to be a company that is a leader in its field. It's a company that has got really great people. It'll have great assets, and it'll be incredibly uniquely positioned to deliver superior returns along with our vision as we go forward. So I thank you all. I thank you for your support. It was a moment to say this 5 July 2024, I should say. We look forward to continuing to deliver for this company going forward. Thank you all for joining.

Tony Smurfitt: Thank you, operator, and thank you all for joining us today. I think we have put together an incredible company. This is going to be a company

Tony Smurfitt: that will deliver great results as we go forward. And this is a company that is going to be a company that is a leader in its field. It's a company that has got really great people.

Tony Smurfitt: It'll have great assets and it'll be incredibly uniquely positioned.

Tony Smurfitt: and to deliver superior returns along with our vision as we go forward. So, I thank you all, I thank you for your support. It was a momentous day this July 8th, or July 5th I should say, and we look forward to continuing to deliver for this company going forward.

Tony Smirfit: It was a moment to say this July 8, or July 5, I should say. And we look forward to continuing to deliver for this company going forward. Thank you all for joining.

Operator: Thank you for joining today's call.

Operator 2: Thank you for joining today's call. You may now disconnect.

Tony Smurfit: Thank you for joining today's call. You may now disconnect.

Operator: You may now disconnect.

Tony Smurfitt: Thank you all for joining.

Q2 2024 Smurfit WestRock PLC Earnings Call

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