Q3 2024 Smurfit WestRock PLC Earnings Call

October 30, 2024

I'm not a good man.

Operator 1: Good day, and thank you for standing by. Welcome to the Smurfit Westrock 2024 Q3 results webcast and conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Ciaran Potts, Smurfit Westrock Group VP, Investor Relations. Please go ahead.

Speaker Change: Good day and thank you for sounding by. Welcome to the Smurfitt West drop 2024 Q3 results webcast and conference call.

Speaker Change: At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question and else's session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised.

Speaker Change: Please be advised that today's conference is being recorded. We will now let hands conference over to Keir and Pots. Snuff it, Weststroke, Group, BP, Investor Relations. Please go ahead.

Ciarán Potts: Thank you, Sarah. As a reminder, statements in today's earnings release, presentation, and the comments made by management during this call may be considered forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, the factors identified in the earnings release, and in our SEC filings. The company undertakes no obligation to revise any forward-looking statements. Today's remarks also refer to certain non-GAAP financial measures. Reconciliations to the most comparable GAAP measures are included in today's earnings release, and in the appendix to the presentation, which are available at investors.smurfitwestrock.com.

Keir Pots: Thank you, Sarah.

Keir Pots: Other reminder, statements in today's earnings release on presentation and the comments made by management during this call may be considered forward looking statement.

Keir Pots: These statements are subject to risks and uncertainties that could cause our actual results to differ material from our expectations and projections.

Keir Pots: These risks, and on the first these include, but are not limited to the fact that the identified in the running release and in our SEC filing.

Keir Pots: The company undertakes no obligation to revise any forward-looking statements. Today's remark also referred to certain non-gaps financial measures. Reconciliation to the most comparable gap measures are included in today's earnings release And in the appendix to the presentation which are available as investors.smervittwestruck.com

Ciarán Potts: In order to accommodate all those who want to ask questions, we ask that participants limit themselves to 2 questions during the Q&A, and should you require any clarifications on what we are discussing today, myself and Frank will make ourselves available after the call. I will now hand you over to Tony Smurfit, CEO of Smurfit Westrock.

Keir Pots: In order to accommodate all those who want to ask questions, we have a participant's limit themselves to two questions during Q&A and should you require any clarification on what we are discussing today myself, I'm Frank, will make ourselves available after the call. I will now hand you over to Tony's Marvers CEO, Smurfle Grassrock.

Tony Smurfit: Thank you, Ciaran, and good morning or good afternoon, everyone, and thank you for taking the time to join us today. As you will have seen from this morning's release, which is the first reporting period for Smurfit Westrock, I think it's fair to say we reported an excellent third quarter performance with Adjusted EBITDA of $1.265 billion and a margin of 16.5%. Since combining our two companies on 5 July 2024, which is a little over 100 days ago, we have made great progress in bringing these two companies together, and I think the results demonstrate that we are building a strong foundation for the continued development and success of Smurfit Westrock.

Tony Marvers: Thank you, Kieran and good morning, or good afternoon everyone and thank you for taking the time to join us today.

Tony Marvers: As you will have seen from this morning's release, which is the first reporting period for Smurf at West Rock, I think it's fair to say we reported an next and third quarter performance with a just a diva dial of 1.265 billion in the margin of 16 million.

Tony Marvers: Since combining our two companies on July 5th which is a little over a hundred days ago, we have made great progress in bringing these two companies together. And I think the results demonstrate that we are building a strong foundation for the continued development and success of Smurf at West Rock.

Tony Smurfit: I want to emphasize the enthusiasm and resolve I have seen across Smurfit Westrock to deliver on the combined potential, and I fully anticipate as time progresses, this will be absolutely apparent. When combining Smurfit Kappa and WestRock, we were very clear on the kind of company that we could create. We were going to create the global leader in sustainable packaging, and with the applications that we have and the knowledge we have of the industry, we would be able to deliver the most value-adding and innovative packaging across the industry. We will be able to leverage all of our applications and knowledge across a broader geographic reach and across an unparalleled product diversity. We felt very confident that we could deliver improved operating efficiency and drive excellence for our customers.

Tony Marvers: I want to emphasize the enthusiasm and resolve I have seen across the Murford Westrock to deliver on the combined potential and I fully anticipate as time progresses this will be absolutely apparent.

Speaker Change: Welcome to my favorite video, we're very clear on the kind of company that we could create.

Speaker Change: We were going to create the global leader in sustainable packaging and with the applications that we have and the knowledge we have of the industry, we would be able to deliver the most value adding and innovative packaging across the industry.

Tony Smurfit: We will be able to leverage all of our applications and knowledge across a broader geographic reach and across an unparalleled product diversity. We felt very confident that we could deliver improved operating efficiency and drive excellence for our customers.

Speaker Change: We will be able to leverage all our applications in knowledge across a broader geographic reach and across an unparalleled product diversity.

Speaker Change: We felt very confident that we could deliver improved operating efficiency and drive excellence for our customers.

Tony Smurfit: We also felt that in legacy Smurfit Kappa, we had developed a tremendous culture, which we could bring to the new Smurfit Westrock. A culture that is performance-driven, teamwork-oriented, with accountability for results, and a deep desire to perform and deliver for all stakeholders. We also felt that our capital allocation approach, which is the foundation for the success of legacy Smurfit Kappa in creating value for shareholders, would be a fundamental pillar for success in Smurfit Westrock. After the first 100-plus days, we have even more confidence as we enter the next phase of our journey. It is interesting, after such a short period of time, to see what we have identified in the new Smurfit Westrock, which is nothing short of compelling. Across our world, across our industries, we have excellent, strong, and defendable market positions.

Speaker Change: We also felt that in legacy Smurfacapa we had developed a tremendous culture, which we could bring to the new Smurfac Westrock.

Speaker Change: A culture that is performance driven, teamwork orientated with accountability for results and a deep desire to perform and deliver for all stakeholders.

Speaker Change: And we also felt that our capital allocation approach, which is the foundation for the success of legacy smurfac capas, in creating value for shareholders, would be a fundamental pillar for success in smurfac Westrock.

Tony Smurfit: After the first 100-plus days, we have even more confidence as we enter the next phase of our journey. It is interesting, after such a short period of time, to see what we have identified in the new Smurfit Westrock, which is nothing short of compelling. Across our world, across our industries, we have excellent, strong, and defendable market positions.

Speaker Change: After the first 100 plus days, we have even more confidence as we enter the next phase of our journey.

Speaker Change: It is interesting after such a short period of time to see what we have identified in the new Smurf at West Rock, which is nothing short of compelling.

Speaker Change: Cross our world across our industries we have excellent strong and defendable market positions

Tony Smurfit: What I have been so impressed with is the level of experience and knowledge at the operational and level of legacy WestRock. For sure, we've seen many opportunities for growth and cost reduction. We've also been able to identify a much sharper customer focus, where value over volume will be a philosophy to be adhered to. Additionally, all designers, all product innovations, all supply chain knowledge, has a much larger pool of customers. This will take time as we develop the systems, but it is an immense opportunity for growth and for customers to attain unique, bespoke packaging to help reduce their costs and increase their sales. And finally, but by no means least, across the spectrum of businesses in the combination, a renewed focus on quality and service, and right first time, through productivity initiatives, through further footprint initiatives, will deliver higher operating efficiency and customer retention.

Speaker Change: What I have been so impressed with is the level of experience and knowledge at the operational and level of legacy Westrock.

Speaker Change: For sure, we've seen many opportunities for growth and cost reduction.

Speaker Change: We've also been able to identify a much sharper customer focus, where value over volume will be a philosophy to be adhered to.

Speaker Change: Additionally, all designers, all product innovations, all supply chain knowledge, has a much larger pool of customers.

Tony Smurfit: This will take time as we develop the systems, but it is an immense opportunity for growth and for customers to attain unique, bespoke packaging to help reduce their costs and increase their sales. And finally, but by no means least, across the spectrum of businesses in the combination, a renewed focus on quality and service, and right first time, through productivity initiatives, through further footprint initiatives, will deliver higher operating efficiency and customer retention.

Speaker Change: This will take time as we develop the systems, but is an immense opportunity for growth and for customers to attain unique, be spoke packaging to help reduce their costs and increase their sales.

Speaker Change: And finally, but by no means least, across the spectrum of businesses in the combination, a renewed focus on quality and service and right first time through productivity initiatives, through further footprint initiatives, will deliver higher operating efficiency and customer attention.

Tony Smurfit: So that's all good and well, but what have we done so far? I'm very proud of what we've accomplished to date. The new leadership teams across Smurfit Westrock organization are now in place, and all are, all are aligned around the culture and the way forward for the business. We have already put over 80 legacy WestRock managers through a short INSEAD program, and a further 80 will soon commence the program. 400 legacy Smurfit Kappa managers have already completed this development course. As many of you will note, there have been multiple plant visits occurred with over 85% of the legacy WestRock paper system already visited, along with many converting facilities across all regions. We like what we see, and we have generally a very well-invested asset base.

Speaker Change: So that's all good and well, but what have we done so far? I'm very proud of what we've accomplished today.

Speaker Change: The new leadership teams across the Murphy West Rock organization are now in place, and all are aligned around the culture and the way forward for the business.

Tony Smurfit: We have already put over 80 legacy WestRock managers through a short INSEAD program, and a further 80 will soon commence the program. 400 legacy Smurfit Kappa managers have already completed this development course. As many of you will note, there have been multiple plant visits occurred with over 85% of the legacy WestRock paper system already visited, along with many converting facilities across all regions. We like what we see, and we have generally a very well-invested asset base.

Speaker Change: We have already put over 80 legacy West Rock managers to a short in-cead program, and a further 80 will soon commence the program.

Speaker Change: 400 legacy smurf at capa managers have already completed this development course.

Speaker Change: As many of you will note, there have been multiple plant visits occurred with over 85% of the legacy West Rock paper system already visited, along with many converting facilities across all regions.

Speaker Change: We like what we see and we have generally very well invested asset base.

Tony Smurfit: We've introduced a much sharper commercial focus, whereby we are not going to use expensive machines to run loss-making products. This is an anathema to us, and also not good business for our customers. Of course, on a step-by-step basis, we're identifying operational efficiencies, reducing SG&A, reducing the use of external consultants, and taking the hard decisions on the reduction in headcounts. Again, on a step-by-step basis, whereby recently we've eliminated some 800 positions. Sometimes you have to look back to see how far you've come. In this case, you can see that neither legacy organizations have been standing still. Over the last 22 months, nearly 30 consumer and corrugated facilities have closed, as well as three paper mills who have also closed, and four paper mills have been divested. This has radically improved the operational footprint of the combination.

Speaker Change: We've introduced a much sharper commercial focus, whereby we are not going to use expensive machines to run las making products.

Speaker Change: This is an Anathema to us and also not good business for our customers.

Speaker Change: And of course, on a step by step basis, we're identifying operational efficiencies, reducing SGNA, reducing the use of external consultants, and taking the hard decisions on the reduction in head counts.

Tony Smurfit: Again, on a step-by-step basis, whereby recently we've eliminated some 800 positions. Sometimes you have to look back to see how far you've come. In this case, you can see that neither legacy organizations have been standing still. Over the last 22 months, nearly 30 consumer and corrugated facilities have closed, as well as three paper mills who have also closed, and four paper mills have been divested. This has radically improved the operational footprint of the combination.

Speaker Change: Again, on a step-by-step basis, whereby recently we've eliminated some 800 positions.

Speaker Change: Sometimes you have to look back to see how far you've come.

Speaker Change: In this case, you can see that neither legacy organizations have been standing still.

Speaker Change: Over the last 22 months, nearly 30 consumer and corrugated facilities have closed.

Speaker Change: as well as three paper mills who have also closed and four paper mills have been devastated.

Speaker Change: This is radically improved the operational footprint of the combination.

Tony Smurfit: In a company of this size, there will always be a continued need to look at different operations based upon operating efficiency and market positioning. But over the last period of time, the combination has radically improved as a result of these closures. Significant cost savings have been achieved, and of course, this allows for us to better allocate capital and resources in the future. We know we've done a lot, with a lot more still to do, but we've developed a very strong foundation and platform for growth and development. I'll now pass you over to Ken, who will take you through the financial performance, and I'll wrap up at the end.

Speaker Change: In a company of this size, there will always be a continued need to look at different operations based on operating efficiency and market positioning.

Speaker Change: But over the last period of time, the combination has radically improved as a result of these closures. Significant cost savings have been achieved. And of course, this allows for us to better allocate capital and resources in the future.

Speaker Change: We know we've done a lot, with a lot more still to do, but we've developed a very strong foundation and platform for growth and development.

Speaker Change: I'm now passed you over to Ken who will take you through the financial performance and I'll wrap up at the end.

Ken Bowles: Thank you, Tony, and good morning, everyone. As Tony mentioned at the top, this is our first set of results reporting as a combined business, and with net sales in the quarter of nearly $7.7 billion, adjusted EBITDA of $1.265 billion, an EBITDA margin above 16%, and adjusted free cash flow of almost $120 million, this is a strong foundation from which we begin our journey. As you'll have seen in the release, and likely know already, legacy Smurfit Kappa was the accounting acquirer in the period, and as such, with the combination closing on 5 July 2024, the reported numbers here on slide 10 will not include the first five days of legacy WestRock earnings, which equates to around $33 million in adjusted EBITDA for the group.

Ken: Thank you Tony and good morning everyone. As Tony mentioned at the top, this is our first set of results reporting as a combined business and with net sales in the quarter of nearly 7.7 billion. I just had EBITDA 1.265 billion and EBITDA margin above 16% and adjusted free cash, so I'm a 120 million dollars.

Speaker Change: This is a strong foundation from which we begin our journey.

Ken Bowles: As you'll have seen in the release, and likely know already, legacy Smurfit Kappa was the accounting acquirer in the period, and as such, with the combination closing on 5 July 2024, the reported numbers here on slide 10 will not include the first five days of legacy WestRock earnings, which equates to around $33 million in adjusted EBITDA for the group.

Speaker Change: As you have seen in the release and likely know already, Legacy Smurfly Capa was the accounting acquire in the period and a such with the combination closing on July 5th. The reported numbers here on slide 10 will not include the first five days of Legacy West Rock earnings, which equates to around 33 million dollars in a just to diva da for the group.

Ken Bowles: Furthermore, any prior numbers in the earnings release will be legacy Smurfit Kappa numbers reported on the US GAAP. We have, however, recreated the company's Q3 2024 results on a combined non-GAAP basis, a little further down in the presentation, and I'll take you through that in a few moments. Turning now to the reported performance for our three segments in the quarter. As a reminder, our North American segment includes the US, Canada, and Mexico, and I'm delighted to report a very strong quarter. Smurfit Westrock North America has leading market positions in both corrugated and consumer packaging, and security of supply across a number of paper grades to feed our diverse network of converting operations. As Tony also mentioned, operational improvements have begun already, and we have an even greater conviction in the growth potential of the business.

Speaker Change: For the more any prior numbers in the earnings release will be legacy smurfer cap of numbers reported on the US cap.

Speaker Change: We have whoever recreated the company's third quarter 2020 for results on a combined on gap basis. I did a further down in the presentation, and I will take you through that in a few moments.

Speaker Change: Turning now to the reported performance for a three-segment in the quarter. As a reminder, our North American segment includes the US, Canada, and Mexico, and emdelizes the report of very strong quarter.

Ken Bowles: Smurfit Westrock North America has leading market positions in both corrugated and consumer packaging, and security of supply across a number of paper grades to feed our diverse network of converting operations. As Tony also mentioned, operational improvements have begun already, and we have an even greater conviction in the growth potential of the business.

Speaker Change: Swirfoot Westrock, North America, has leading market positions in both cargygaz and consumer packaging and security supply across a number of paper grades to feed our diverse network of conversion operations.

Speaker Change: As Tony also mentioned, operational improvements have begun already, and we have in even greater conviction in the growth potential of the business. Having spent the first three months gaining a far deeper understanding of the legacy West Rock Operations.

Ken Bowles: Having spent the first three months gaining a far deeper understanding of the legacy WestRock operations. Those of you who followed the Smurfit Kappa journey over the years, will be familiar with our long-standing approach of delivering differentiated packaging solutions, becoming supply chain partner of choice, and prioritizing the value we deliver to our customers over delivering volume. This is a track record we are very proud of, and as Smurfit Westrock, we are already seeing the initial benefits of aligning this commercial strategy across the organization. In the quarter, our North American operations delivered gross sales of $4.6 billion, with Adjusted EBITDA of $780 million, and a very solid Adjusted EBITDA margin of 16.8%.

Speaker Change: Those of you who followed the Smurfacapad journey over the years will be familiar with our longstanding approach of delivering differentiated vaccine solutions, becoming supply chain partner of choice and prioritizing the value we deliver to our customers over delivering volume.

Ken Bowles: This is a track record we are very proud of, and as Smurfit Westrock, we are already seeing the initial benefits of aligning this commercial strategy across the organization. In the quarter, our North American operations delivered gross sales of $4.6 billion, with Adjusted EBITDA of $780 million, and a very solid Adjusted EBITDA margin of 16.8%.

Speaker Change: This is the track record we are very proud of. And as part of a West Rock, we are already seeing the initial benefits of aligning this commercial strategy across the organization.

Speaker Change: In the quarter, our North American operations delivered gross sales of 4.6 billion with a just a DB-Dive 780 million and a very solid adjusted DB-Dive margin of 16.8%.

Ken Bowles: Looking at the comparative performance for the segment on a combined non-GAAP basis, as per the AK filed on 24 September 2024, we saw significant margin improvement year-on-year due to both higher volumes and higher selling prices, with cost headwinds on items such as recovered fiber, energy and distribution, alongside wages and other inflationary costs, which were more than offset by reduced economic downtime, aided by increased internal paper integration and operational improvements. Corrugated box pricing was up compared to the prior year, while volumes were 1.1% lower on a same-day basis. We saw weaker demand in the South and Midwest region, stable volumes in the North Atlantic region, and solid growth in Western states. Finally, consumer packaging performed well with food and beverage demand growth of 4% year-on-year. And now looking at our Europe, EMEA, and APAC division.

Speaker Change: wo

Speaker Change: Looking at the comparative performance of the segment on a combined on gap bases as by the AK file on 24th of September

Speaker Change: We saw significant margin improvement year in year due to both higher volumes and higher setting prices. With cost headwinds and items such as recover fiber, energy and distribution, alongside wages and other inflationary costs. Which were more than offset by reduced economic downtime, aided by increased internal pay for integration and operational improvements.

Speaker Change: Carregate a box pricing was up compared to the prior year, while volumes are 1% 1.1% lower on the same day basis.

Speaker Change: We saw weaker demand in the south and Midwest region, stable volumes in the North Atlantic region, and solid growth in western states.

Ken Bowles: Finally, consumer packaging performed well with food and beverage demand growth of 4% year-on-year. And now looking at our Europe, EMEA, and APAC division.

Speaker Change: Finally, consumer packaging performed well with food and beverage demand growth of 4% year and year.

Speaker Change: And now looking at a European media and a拍k TV.

Ken Bowles: Much like the US and Canadian elements of our North America segment, our European operations saw limited operational overlap post-5 July, with an addition of mainly consumer converting facilities to complement legacy Smurfit Kappa's number one market position in corrugated and containerboard, and our existing consumer and specialty packaging operations. In the quarter, the business delivered gross sales of $2.7 billion, with adjusted EBITDA of $411 million, and an adjusted EBITDA margin of 15.5%. Corrugated box prices were down year-on-year, although they continued higher versus the previous quarter, and we expect to see continued box price recovery going forward. Corrugated volumes were up 2.7% on an absolute basis, or 0.7% higher on a same-day basis.

Speaker Change: Much like the US and Canadian elements of our North America segments, our European operations are limited operational overlap post-life.

Speaker Change: With an addition of mainly consumer converting facilities to Contman's Legacy Smurfic Apples, number one market position in carigases and container board, and are existing consumer, especially packaging operations.

Ken Bowles: In the quarter, the business delivered gross sales of $2.7 billion, with adjusted EBITDA of $411 million, and an adjusted EBITDA margin of 15.5%. Corrugated box prices were down year-on-year, although they continued higher versus the previous quarter, and we expect to see continued box price recovery going forward. Corrugated volumes were up 2.7% on an absolute basis, or 0.7% higher on a same-day basis.

Speaker Change: In the quarter, the business delivered gross sales at 2.7 billion, with a just a $411 million, and then a just a $1.5 million of 15.5%.

Speaker Change: Carried at a boxbicycle where down here and here, although they continue higher verset the previous quarter, I'm expect to see continued boxbicycle where we're going forward.

Speaker Change: Carigated volumes are up 2.7% on an absolute basis, or 0.7% higher on the same day basis.

Ken Bowles: The adjusted EBITDA margin was lower year-on-year, predominantly due to lower corrugated prices and higher recovered fiber costs, partly offset by higher volumes. Our Latin American segment remained very strong in the third quarter, and as you can see here, with gross sales of $500 million, adjusted EBITDA of $116 million, and an adjusted EBITDA margin of above 23%, this is an excellent outcome for a region we have operated in for over 40 years. And again, when looking at the comparative performance of the segment on a combined non-GAAP basis, as per the September pack, year-on-year EBITDA was broadly unchanged. The region saw lower average box prices and lower box volumes year-on-year, as shipments per day were down 2.7%, with demand in Argentina being a particular drag on segment volumes.

Speaker Change: The Justice Department of Management was lower year and year, predominately due to lower corrugated prices and higher recovered fiber costs, partly offset by higher volumes.

Speaker Change: Our Latin American segment remains very strong in the third quarter, and as you can see here, with gross sales of half billion, adjusted to the E.B.D.A.116 million, and an adjusted E.B.D. margin of above 23%. This is an excellent outcome for region we have operated in for over 40 years.

Ken Bowles: And again, when looking at the comparative performance of the segment on a combined non-GAAP basis, as per the September pack, year-on-year EBITDA was broadly unchanged. The region saw lower average box prices and lower box volumes year-on-year, as shipments per day were down 2.7%, with demand in Argentina being a particular drag on segment volumes.

Speaker Change: And again, when looking at the comparison performance of the segments on a combined on gap bases as part of the September AK, year in your EBITDA was brought you unchanged.

Speaker Change: The region saw lower average box prices and lower box volumes in year as shipments per day were down 2.7%. With demand and Argentina being a particular drag on segment volumes.

Ken Bowles: However, we also saw generally lower operating costs offsetting these movements, with the margin performance being held by our unrelenting focus on costs and operational efficiency. As mentioned earlier, slide 12 shows our Q3 results for the group, prepared on a combined non-GAAP basis. I don't propose to dwell on this slide, as the reported numbers for the three segments are included here, plus the legacy WestRock sales and earnings for the first five days of July, which I think gives a more complete picture of the company's performance in the Q3. With WestRock's Adjusted EBITDA margin of over 6-- Smurfit Westrock's Adjusted EBITDA margin of over 16%, the company is beginning its first chapter from a position of strength. Speaking about that journey ahead, slide 13 maps out our capital allocation framework.

Speaker Change: However, we also saw January lower operating costs upsetting these movements with the margin performance being held by our own relanting focus on costs and operational efficiency.

Speaker Change: As mentioned earlier, fly 12 shows our third quarter results for the group prepared on a combined non-gap basis.

Ken Bowles: I don't propose to dwell on this slide, as the reported numbers for the three segments are included here, plus the legacy WestRock sales and earnings for the first five days of July, which I think gives a more complete picture of the company's performance in the Q3. With WestRock's Adjusted EBITDA margin of over 6-- Smurfit Westrock's Adjusted EBITDA margin of over 16%, the company is beginning its first chapter from a position of strength. Speaking about that journey ahead, slide 13 maps out our capital allocation framework.

Speaker Change: I don't propose to dwell on this slide at the reported numbers for the three segments are included here. Put the Legacy West Rock sales and earnings for the first five days of July.

Speaker Change: which I think give the more complete picture of the company's performance in the third quarter.

Speaker Change: Would West Rocks adjust the number of emergency operations. The company is beginning its first chapter from a physician's friend.

Speaker Change: And speaking about that journey ahead, slide 13 maps that are capital allocation framework.

Ken Bowles: Those who have followed the performance of Smurfit Kappa over the years will be familiar with it. Our capital allocation framework will remain flexible and returns focused at its core. As a team with long-standing experience in the industry, we believe that capital allocated to internal projects, what we see as the lowest risk form of capital, will be central to our future success. We are taking a disciplined bottom-up approach to assessing the capital needs of the business, and as Tony said earlier, having visited the vast majority of the legacy WestRock operations, we are very happy with the asset base and the opportunities to unlock significant value through operational improvements and empowering local plant managers who are closer to the customer.

Speaker Change: Those who have followed the performance of Smurfacap over the years will be familiar with it. Our capital allocation framework will remain flexible and returns focused at its core.

Speaker Change: As a team with longstanding experience in the industry, we believe that capital allocates to internal projects, what we see as the lowest risk form of capital, will be central to our future success.

Ken Bowles: We are taking a disciplined bottom-up approach to assessing the capital needs of the business, and as Tony said earlier, having visited the vast majority of the legacy WestRock operations, we are very happy with the asset base and the opportunities to unlock significant value through operational improvements and empowering local plant managers who are closer to the customer.

Speaker Change: We are taking a disciplined, bottom of approach to assessing the capital these are the business. And as Tony said earlier, having visits the vast majority of the legacy West Recoperations, we are very happy with the asset base and the opportunities to adopt significant value through operational improvements and empowering local plant managers who are closer to the customer.

Ken Bowles: Having spent some time assessing the initial capital needs of the combined company, we believe that for the full year 2025, total CapEx will be in the range of $2.2 to 2.4 billion. The dividend is another cornerstone of our capital allocation strategy, and as a reminder, subject to board approvals, Smurfit Westrock intends to pay a dividend in line with the progressive dividend policy of legacy Smurfit Kappa. As we harmonize the different dividend streams and payment cycles for the remainder of 2024, we are paying a dividend for this quarter of $0.3025 per share. In Smurfit Westrock, we plan to remain disciplined in relation to M&A, and benchmark those opportunities against all other forms of capital allocation.

Speaker Change: Having spent some time assessing the initial capital needs for the coin company, we believe that for the full year 2025, total capex will be in the range of 2.2 to 2.4 billion.

Speaker Change: The dividend is another cornerstone of our capital allocation strategy. And as a reminder, subject to border provisals, Smurfer West Rock intends to pay a dividend in line with the progressive dividend policy of Legacy Smurfer Capa.

Speaker Change: As we harmonize the different different streams and payments cycles for the remainder of 2024, we are paying a dividend for this quarter of 3.25 cents for share.

Speaker Change: In the report, West Rock, we found to remain disabend in relation to M&A and benchmarked those opportunities against all other forms of cat-fallocation.

Ken Bowles: The combination between Smurfit Kappa and WestRock, undoubtedly transformative in nature, was rooted in our history of discipline, best illustrated by combining both companies on equivalent enterprise multiples to create a global leader in sustainable packaging. The balance sheet of Smurfit Westrock has significant strength and flexibility, and we are committed to maintaining a strong investment-grade credit rating. We also believe that given the size and strength of our operations, and the ability to generate significant free cash flow, Smurfit Westrock can be less than 2x levered through the cycle. The inclusion of 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 other options. Ultimately, the framework at its simplest, is about creating long-term value for all stakeholders.

Speaker Change: The combination between Smurfacap and West Rock on does it transformer to the nature was rooted in our history of discipline. Best illustrated by combining both companies on equivalent enterprise multiple to create a global leader in sustainable packaging.

Speaker Change: The balance sheet of smurf or west rock has significant strength of flexibility and we are committed to maintaining a strong investment grade credit raising

Ken Bowles: We also believe that given the size and strength of our operations, and the ability to generate significant free cash flow, Smurfit Westrock can be less than 2x levered through the cycle. The inclusion of 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 other options. Ultimately, the framework at its simplest, is about creating long-term value for all stakeholders.

Speaker Change: We also believe that given the size and strength of operations and the ability to generate significant freak-hassos, several restaurants can be less than two times the effort to recycle.

Speaker Change: And the inclusion of other forms of shareholders turns on just course, 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 other options.

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

Ken Bowles: With that, I'll pass you back to Tony for some concluding remarks.

Speaker Change: And with that I'll pass you back to Tony for some concluding remarks.

Tony Smurfit: Thank you, Ken. You know, I have a saying that success is never a straight line, but in legacy Smurfit Kappa, we have proved over a long period of time that we deliver against all performance measures, and this is evident on the slide in front of you. I won't go through every point, but please note that as Rome wasn't built in a day, neither is a great company, and Smurfit Kappa was a great company. But I have the utmost confidence that Smurfit Westrock will be an even better company, with an even better coverage, with a better product portfolio, and with great people consistently delivering for our stakeholders. This is a journey and not a destination. We will continue to optimize our operating model. We will continue to be customer-centric in all that we do.

Tony Marvers: Thank you, Ken. You know I have a saying that success is never a straight line. But in legacy, Smurf at Kappa, we have proved over a long period of time that we deliver against all performance measures. And this is evidence on the slide in front of you.

Tony Marvers: I won't go through every point, but please note that as Rome wasn't built in a day, neither is a great company. And Smurfacata was a great company.

Tony Smurfit: But I have the utmost confidence that Smurfit Westrock will be an even better company, with an even better coverage, with a better product portfolio, and with great people consistently delivering for our stakeholders. This is a journey and not a destination. We will continue to optimize our operating model. We will continue to be customer-centric in all that we do.

Tony Marvers: But I have the utmost confidence that Smurf at West Rock will be an even better company, with an even better coverage, with a better product portfolio, and with great people consistently delivering for our stakeholders.

Tony Marvers: This is a journey and not a destination.

Tony Marvers: We will continue to optimize our operating model.

Tony Marvers: We'll continue to be customer-centric in all that we do.

Tony Smurfit: We'll continue to have a performance-led culture, where responsibility lands at the local plant level. We'll continue to capital discipline, which has stood Smurfit from its inception back in the '30s, recognizing that all capital must be paid for, and that all capital invested in the business must return, provide a return for our stakeholders. Layering on top of that is ensuring that we continue our sustainability and innovation leadership. We believe this is a central element to our success, both now and in the years ahead. Of course, with that, as you're all aware, we identified some $400 million of synergies, which I would call hard synergies, which will be delivered. I would make the point that there is considerably more potential than this $400 million, at least the same again, as we implement commercial practices and improve our operating efficiency through the combination.

Tony Marvers: We continue to have a performance-led culture where responsibility lands at the local plant level.

Tony Marvers: And we'll continue to capital discipline, which is stood smart fit from its inception back in the 30s, recognizing that all capital must be paid for, and that all capital invested in the business must return, provide a return for our stakeholders.

Tony Marvers: The thing that we continue is the sustainability and innovation leadership.

Tony Smurfit: We believe this is a central element to our success, both now and in the years ahead. Of course, with that, as you're all aware, we identified some $400 million of synergies, which I would call hard synergies, which will be delivered. I would make the point that there is considerably more potential than this $400 million, at least the same again, as we implement commercial practices and improve our operating efficiency through the combination.

Tony Marvers: We believe this is a central element to our success both now and in the years ahead.

Tony Marvers: And of course, with that, as you're all aware, we identified some 400 million of synergies, which I would call hard synergies, which will be delivered.

Tony Marvers: To make the point that there is considerably more potential than this 400 million, at least the same again as we implement commercial practices and improve our operating efficiency through the combination.

Tony Smurfit: This is driven by the owner/operator mentality that we have introduced at Smurfit Westrock. All senior managers are significant shareholders, and as such, understand the need for higher returns. As I said earlier, I'm deeply encouraged by the level of skill, experience, and knowledge that exists at local level, which we in Smurfit Westrock will unleash. I'm also encouraged by the initial benefits we're seeing from this approach. While we expect this year to be approximately $4.7 billion, this is, of course, not the summit of our ambitions. As Ken said, in the year ahead, we will invest somewhere between $2.2 and 2.4 billion, which is lower than our initial estimate for year one, without affecting our expected returns.

Tony Marvers: This is driven by the owner operator mentality that we have introduced at Smurf at West Rock.

Tony Marvers: All senior managers are significant shareholders, and that's such understand the need for higher returns.

Tony Marvers: As I said earlier, I'm deeply encouraged by the level of skill, experience and knowledge that exists at local level, which we in Smurfet West Rock will unleash.

Tony Smurfit: I'm also encouraged by the initial benefits we're seeing from this approach. While we expect this year to be approximately $4.7 billion, this is, of course, not the summit of our ambitions. As Ken said, in the year ahead, we will invest somewhere between $2.2 and 2.4 billion, which is lower than our initial estimate for year one, without affecting our expected returns.

Tony Marvers: I'm also encouraged by the initial benefits we're seeing from this approach.

Tony Marvers: And while we expect this year to be approximately 4.7 billion US dollars, this is of course not the sum of the ramdations.

Speaker Change: As Ken said, in the year ahead we will invest somewhere between 2.2 and 2.4 billion, which is lower than our initial effort in 1 year one without affecting our expected returns.

Tony Smurfit: As we run through the course of next year, we will be assessing our capital needs to take advantage of the opportunities for development across our world for the new Smurfit Westrock, and we'll update you further as our thinking progresses. I do hope that you'll all understand that we have very significant opportunities ahead for this company, and we look forward to delivering on those opportunities in the short, medium, and long term. And now with that operator, myself and Ken, we're open to taking any questions from anyone on the call.

Speaker Change: As we run through the course of next year we will be assessing our capital needs to take advantage of the opportunities for development across our world for the new Smurf at West Rock. And we'll update you further as we as our thinking progresses.

Speaker Change: I do hope that you all understand that we have very significant opportunities ahead for this company. And we look forward to delivering on those opportunities in the short, medium and long term.

Speaker Change: And now with that operator, myself and Ken, we're open to taking any questions from a phone call.

Operator 2: Thank you. To ask a question, you'll need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, you can press star one and one again. Thank you. We'll now take our first question. This is from the line of Charlie Muir-Sands from BNP Paribas Exane. Please go ahead.

Speaker Change: Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced.

Speaker Change: To enjoy your question, you can press star 1 and 1 again.

Speaker Change: Thank you, we'll now take off first question.

Speaker Change: This is from the line of Charlie Muir's sounds from BMP Power by Xon. Please go ahead.

Charlie Muir-Sands: Good morning, good afternoon, guys. Thank you for taking my questions. Just two, please. Firstly, on the full year guidance, if taken literally with no decimal places beyond what you've given, it suggests a slight reduction in EBITDA in Q4 versus Q3. Is that a fair assumption, or is there a bit of conservatism or just rounding in there? Or are there any particular factors we should bear in mind, such as maintenance downtime in the long paper position in North America, for example?

Speaker Change: Good morning, good afternoon guys. Thank you for taking my questions. Just two please.

Speaker Change: Firstly, on the fully agedance, it's taken literally with no decimal places beyond what you've given. It suggests a slight reduction of habitat in the fourth quarter versus the third quarter.

Speaker Change: Is that a fair assumption or is there a bit of conservatives and orders rounding in there? Or are there any of the cofactors we should bear in mind such as maintenance downtime in the long paper position in North America for example?

Tony Smurfit: Yeah, Charlie, the guidance is based on... You know, this is the first time we've gone into a December with the new co. So therefore, you know, obviously, we tend to be a little bit conservative, but also there is, there's $60 million of additional downtime and a small-- some downtime and maintenance downtime that we have built into this quarter that we didn't have for Q3. So there's an additional $60 million hit for downtime, both for commercial downtime in some of our consumer mills, and also in just regular maintenance downtime that is more than in Q3. So some degree of conservatism we hope. I mean, you know, obviously, December is always a funny month. And then, you know, the $60 million hit.

Speaker Change: Yeah, I'm Charlie, the guidance is based on, you know, this the first time we're going into a December with a new coach so therefore, you know, obviously we tend to be a little bit conservative, but also there is

Speaker Change: There's 60 million of additional downtime and small, some downtime and maintenance downtime that we have built into this quarter that we didn't have for Q3. So there's an additional 60 million hit for downtime.

Speaker Change: both for commercial downtime in some of our consumer meals and also in just regular maintenance downtime that is more than in Q3.

Speaker Change: So some degree of conservatism we hope, I mean, you know, obviously December is always a funny month and and then, you know, the 60 million hits.

Ken Bowles: I think, Charlie, as well. Hey, Charlie, it's Ken. I think as well, if you look at the year-over-year, you can see the progression. Q4 versus Q4 is still quite significant, and 2024 over 2023 for the combined non-GAAP basis. So keep that in mind as well.

Speaker Change: I think as well if you look at the year on year you can see the progression quarter-four versus quarter-four is quite significant and 24 over 23 for the combined non-gap basis. Keep that in mind as well.

Charlie Muir-Sands: Yeah, will do. And secondly, just on the CapEx plan for next year, and I guess the midterm. Historically, you guys have managed to target a mid- to high-teens pre-tax return on anything that could be considered, you know, beyond maintenance spend. Given what you've seen from the WestRock business, is the opportunity better there, perhaps because, you know, there's more low-hanging fruit or less because of sort of more of that budget needs to go into sort of catch-up maintenance?

Speaker Change: Yeah, we'll do. And secondly, you just saw the CapEx plan for the next year. And I guess the midterm historically.

Speaker Change: You guys have managed to target as a mid-Dahyteens pre-tax return on anything that could be considered beyond maintenance spend. Given what you've seen from the Westrop business is the opportunity better there, perhaps because there's more low hanging fruit or less because of the sort of...

Speaker Change: More of that budget needs to go into the capture of maintenance.

Tony Smurfit: I wouldn't say it's catch up. I mean, Listen, we think that's a reasonable number to be looking to go for on non-maintenance CapEx, and I wouldn't rush to change that right now. But obviously, you know, there is a lot of opportunity as we are bringing the two businesses together and are thinking together to and how we approach the customer, and that includes some investment to make sure that we deliver right on time, first on time, to have OTIF to our customers at the historical levels of Smurfit Kappa. And that's not an overnight job, Charlie, but I mean, you know, I think we have a plan.

Speaker Change: I wouldn't say it's catch up, I mean, listen, we think that's a reasonable number to be looking to go for on non.

Speaker Change: Non-maintenance, capex and I wouldn't rush to change that right now, but obviously, you know, there is...

Speaker Change: A lot of opportunity, as we are bringing the two businesses together and are thinking together and how we approach the customer, and that includes some investment to make sure that we deliver right on time, first on time, to have OTIF.

Speaker Change: To our customers at the historical levels of Smurf at Capba. And that's not an overnight job, Charlie, but I mean, you know, I think we have a plan. And the capital investment that we see for next year is taking into account.

Tony Smurfit: And the capital investments that we see for next year is taking into account what we need for next year. But then obviously, as we go through the year and we see where the opportunities are and the way to continue to reduce costs, you know, we'll develop that out as we go through the year and then communicate accordingly.

Speaker Change: What we need for next year, but then obviously as we go through the year and we see where the opportunities are and the way to continue to reduce costs, you know, we'll develop that out as we go through the year and then communicate accordingly.

Operator 3: Thank you.

Charlie Muir-Sands: Thank you.

Tony Smurfit: Thanks.

Speaker Change: Thank you.

Operator 1: Thank you. We'll now take our next question. This is from Lars Kilberg, from Stifel. Please go ahead.

Speaker Change: Thanks.

Speaker Change: Thank you.

Speaker Change: We'll now take our next question.

Speaker Change: This is from Lars Kilberg from Steve Folt, please go ahead.

Lars Kjellberg: Thank you for taking the questions, and congrats on the first 100 days. Just a couple of questions on, you know, synergies. You seem to be executing quite rapidly, so can you share with us how we should think about the cadence of those $400 million that you've spoken to? And then secondly, of course, the next comment that you made about finding incremental, meaningful, incremental, operational, commercial improvements that could deliver a similar or greater number than that. Anything you can share today, and again, in terms of pace and delivering that and what you've identified?

Lars Kilberg: Thank you for taking the questions and congrats on the first 100 days. Just a couple of questions on synergies. You seem to be executing quite rapidly. Can you share with us?

Lars Kilberg: How we should think about the cadence of 400 million as she is spoken to. And then secondly, of course, the next comment that you made about finding incremental.

Lars Kjellberg: And then secondly, of course, the next comment that you made about finding incremental, meaningful, incremental, operational, commercial improvements that could deliver a similar or greater number than that. Anything you can share today, and again, in terms of pace and delivering that and what you've identified?

Lars Kilberg: meaningful and incremental operational and commercial improvements that could deliver a similar or greater number than that. Anything you can share today and again, in terms of pace and delivering that and what what we've identified.

Ken Bowles: Hey, hey, Lars, Ken here. On the... What Tony described in his script as the hard synergies, I think we're still on track, as you would have outlined in September, that by the end of next year, we would have trapped all that 400. So as you go into 2026, if you like, you've got the full year run rate on that number, and we are getting through some of those. Some take longer, as you can imagine, particularly in terms of optimizing the system and integrating tons and not displacing the market. So we're very much on track in terms of what Tony describes as the hard synergies, very much in line with what we would have said back when we closed the deal in July.

Lars Kilberg: Thank you.

Lars Kilberg: Hey, Lars, can hear on the auto-need describing as script as the heart's energies.

Lars Kilberg: I think we're still on track as you would have outlined in September that by the end of next year we would have.

Lars Kilberg: [inaudible]

Speaker Change: particularly in terms of optimizing the system and integrating tones and not the space in the market. So we're very much on track and in terms of what Tony describes as the hard synergies, very much in line, what we would have said back.

Ken Bowles: On the other bucket, if you like, the number we expect to get through operational improvement and everything else, that's probably gonna take slightly longer. You know, we would expect to get some of that during 2025, and the rest during 2026. It's probably more like an 18-month, 2-year timeframe to execute all of that, simply because a lot of that's probably wrapped up in terms of commercial opportunity and when contracts roll off and how we see about it, and linking back to Tony's point around, you know, improvements around OTIF and quality and service and everything else. But in terms of simple wins, you know, it's taking cost out around some areas like consultants and extra in 2025, which will come through fairly quickly.

Speaker Change: When we co-state in July on the other bucket if you like the number we expect to get through operation improvement and everything else That's probably going to take slightly longer. You know we would expect to get some of that during 25

Ken Bowles: It's probably more like an 18-month, 2-year timeframe to execute all of that, simply because a lot of that's probably wrapped up in terms of commercial opportunity and when contracts roll off and how we see about it, and linking back to Tony's point around, you know, improvements around OTIF and quality and service and everything else. But in terms of simple wins, you know, it's taking cost out around some areas like consultants and extra in 2025, which will come through fairly quickly.

Speaker Change: In the rest of the year, it's probably more like an 18-month-to-year timeframe to execute all of that. It's simply because a lot of that's probably wrapped up in terms of commercial opportunity. I'm on contracts roll off and how we see it better than linking back to Tony's point around improvements, and OTF and quality and service and everything else.

Speaker Change: But in terms of simple wins, you know, it's taking cost-outs.

Speaker Change: around some areas like consultants in X-Ren 25 which are come through fairly quickly. So it's probably slightly longer time frame than the hard synergies but it's not a long-term goal. It's still 12, 18, 12, 18, 12, 24 at the max.

Ken Bowles: So, you know, it's probably a slightly longer timeframe than the hard synergies, but it's not a long-term goal. It's still, you know, 12, 18 months, 24 at the max.

Tony Smurfit: I think, Lars, just as an overall view on it, we're very much streamlining the business to devolve responsibility back to plant level and to operational level. You know, that you know, head office is there to support, not to run the business. And, you know, that is, you know, empowering people to understand that their P&L is their responsibility. And, you know, obviously, when you look at your P&L and you find you've got contracts that are not necessarily good ones, of course, some of them are, take a while to unwind. But, you know, they do unwind, and then obviously we'll. I mean, I hate, and we hate, as a company, to have expensive machinery running businesses where you don't get a return.

Speaker Change: I think large as an overall view on it, we're very much streamlining the business to devolve responsibility back to plant level and to operational level.

Speaker Change: You know, that head office is there to support, not to run the business. And you know, that is empowering people to understand that their P&L is their responsibility. And, you know, obviously when you look at your P&L and you find you've got a...

Tony Smurfit: And, you know, obviously, when you look at your P&L and you find you've got contracts that are not necessarily good ones, of course, some of them are, take a while to unwind. But, you know, they do unwind, and then obviously we'll. I mean, I hate, and we hate, as a company, to have expensive machinery running businesses where you don't get a return.

Speaker Change: Contracts that are not necessarily good ones. Of course, some of them are take a while to own wine.

Speaker Change: and

Speaker Change: But, you know, they do unwind and then obviously we'll, I mean, I hate, we hate as a company to have an ends of a machinery running businesses where you don't get a return. And it's no good for our customers either because, you know, then you get yourself in a situation where you're not able to continue to invest in the business and grow the business. And so...

Tony Smurfit: And it's no good for our customers either, because, you know, then you get yourself in a situation where you're not able to continue to invest in the business and grow the business. And so we have a very strong view in how we run the business, as you know, over the years. And I think, you know, when you add into it that all the applications and the tools that we have to give to our customers to help them reduce their costs, not necessarily reduce our margins, but help them reduce their costs, then it's a very powerful organization and what you can bring to customers, and customers want to work with you. So I think we've proven over the years in legacy Smurfit Kappa, how to do it, and, you know, it's not an overnight success.

Speaker Change: So we have a very strong view in how we run as you know over the years. And I think, you know, when you add into it, that all the applications and the tools that we have to give to our customers to help them reduce their costs, not necessarily reduce our margins, but help them reduce their costs.

Tony Smurfit: And I think, you know, when you add into it that all the applications and the tools that we have to give to our customers to help them reduce their costs, not necessarily reduce our margins, but help them reduce their costs, then it's a very powerful organization and what you can bring to customers, and customers want to work with you. So I think we've proven over the years in legacy Smurfit Kappa, how to do it, and, you know, it's not an overnight success.

Speaker Change: Then it's a very powerful organization and what you can bring to customers and customers want to work with you. So I think.

Speaker Change: We've proven over the years in Legacy Smurf at Kappa.

Speaker Change: How to do it and you know it's not an overnight success. It doesn't just happen straight away, but over time with the entire most living.

Tony Smurfit: It doesn't just happen straight away, but over time, and with the empowerment we're giving, I feel really comfortable when I see some of the people that we've met in legacy, Smurfit Westrock... Or sorry, legacy WestRock, that, we've got a huge opportunity here.

Speaker Change: I feel really comfortable when I see some of the people that we've met in legacy, Smurf of West Rock, I'm sorry, legacy West Rock, that we've got a huge opportunity here.

Lars Kjellberg: One follow-up, if I may. You know, you spoke to somewhat lower CapEx requirements, at least near term in 2025. What have you found as you toured those 85% of the mills that has potentially surprised you? You alluded to that obviously; there's been an ongoing business improvement. Does that have anything to do with that lower CapEx number, or is it just we need a bit more time to identify where we're gonna spend more money?

Speaker Change: 1 photo of what did I make, you spoke to someone who were cap extra requirements, at least the atom in 2025. What have you found as you tour those 85% of the males?

Speaker Change: That is potentially surprised to you. If you alluded to that, the obvious of there's been an ongoing difference in improvement. That's had anything to do with that lower capics number, we need a bit more time to identify where we're going to spend more money.

Tony Smurfit: Well, we are spending a bit more in legacy WestRock and a bit less in legacy Smurfit Kappa, because, you know, you know, we are very well invested in Smurfit Kappa through the programs that we've done, and we are spending a bit more. You know, there are. I mean, obviously, like even in legacy Smurfit Kappa, not all of our assets are perfect. And, you know, we've just closed this year, a mill in France, and, you know, we tend to deal with things when we need to. So there will be always things to do in the asset base of the business. But what I've been very happy with is that the assets are very well maintained with very good people.

Speaker Change: Well, we are studying a bit more in legacy, legacy, West Rock and a bit less in legacy Smurf at Kappa, because you know...

Speaker Change: We are very well invested in some of the capital through the programs that we've done. We are spending a bit more. I mean, obviously, even in legacy of the capital, not all of our assets are perfect. We've just closed this year, a million in France. We tend to deal with things when we need to. There will be always things to do in the asset base of the business. But what I've been very happy with is that the assets are very well maintained.

Tony Smurfit: Most of the consumer plants that we've seen are good or excellent, and that's across the world. Sometimes I have to pinch myself of how good they are, frankly. Some corrugated box plants need work, but there's some that are truly excellent. The mills, on the mill side, you know, there are some mills that are, you know, won't be around in 5, 10, 20 years, but there are many that are, you know, I think 65% of the corrugated mills are in the first or the second quartile, as we see it, and you know, plenty of opportunity to improve those in the third quartile, as we go forward.

Speaker Change: with very good people most of the

Speaker Change: consumer plants that we see in our good or excellent, and that's across the world. Sometimes I have to pinch myself as I have good day are. Frankly, the...

Speaker Change: Some car-gate box plants need work, but there's some that are truly excellent. And so, you know, sometimes a bit, you know, and the males on the male side, you know, there are some males that are, you know, won't be around.

Speaker Change: 5, 10, 20 years. But there are many that are, you know, I think about

Speaker Change: I think 65% of the

Speaker Change: The corrugated males are in the first of the second quartile as we see it. And plenty of opportunity to improve those in the third quartile.

Tony Smurfit: So I think we've got a strong mill system, which is, at this moment in time, relatively sold out. And as we integrate more to our own businesses in Mexico, as we do a little bit of small movement of product around the place, you know, it gives us a lot of hope for the future.

Speaker Change: And as we go forward, so I think we've got a strong milk system, which is, at this moment, I'm relatively sold out and as we integrate more to our own businesses in Mexico, as we do a little bit of...

Speaker Change: small and movement of product around the place. You know, it gives us a lot of hope for the future.

Gabe Hajde: Very good. Thank you.

Lars Kjellberg: Very good. Thank you.

Speaker Change: Thank you.

Tony Smurfit: Thanks, Marcus.

Tony Smurfit: Thanks, Lars.

Operator 3: Thank you. We'll now take our next question. This is from the line of Gabe Hady from Wells Fargo. Please go ahead.

Operator 2: Thank you. We'll now take our next question. This is from the line of Gabe Hady from Wells Fargo. Please go ahead.

Speaker Change: Thank you.

Speaker Change: For now, take our next question.

Speaker Change: This is from the line of Gabe Haydee from World Fargo. Please go ahead.

Gabe Hajde: Good morning, Tony and Ken. I had a question, I, I guess maybe on, based on the, the information that we have in our modeling, and it's our model, I appreciate that. It looks like legacy kind of Smurfit was a little bit below what we would have expected. And I'm just curious if you can give us a cadence of kind of price or what you expect to continue to realize based on movements that have already transpired, if that question makes sense.

Gabe Haydee: Good morning, Tony. Can I have a question? I guess maybe based on the information that we have.

Gabe Haydee: And I'm modeling in TomaWi. I appreciate that. It looks like legacy kind of most of it was a little bit below what we were expected.

Gabe Haydee: um

Gabe Haydee: And I'm just curious if you can give us a cadence of kind of price or what you expect to continue to realize based on movements that have already transpired if that question makes sense.

Tony Smurfit: Yeah, I think, basically, you know, our, if you look at our European system, the German market has not. I mean, it's promised to improve all through the year, but it hasn't. I mean, and so it's a bit of an anchor in business. You know, it's our largest market in Europe. So I suppose if we were to say, where is disappointing, I'd say Germany, slightly. It's not slightly, it's disappointing in relation to, you know, how we have a very good system there that hasn't been able to exploit its strategic advantages because we haven't had the volume this year that we would have expected.

Speaker Change: Yeah, um

Speaker Change: I think basically, you know, are...

Speaker Change: If you look at our European system

Speaker Change: The German market.

Speaker Change: It has not, I mean, it's promised to improve.

Speaker Change: all through the year, but it happens. I mean, and so it's a bit of an anchor.

Speaker Change: in business, you know, it's hard to larger the market in Europe.

Speaker Change: So as both, if we were to say where is disappointing, I'd say Germany slightly, it's not slightly disappointing in relation to, you know, how we have a very good system there that hasn't been able to exploit.

Speaker Change: It's strategic advantageous because we haven't had the volume this year that we would have expected. So if you said where were we falling down a little bit, it's in our German operations that really happens from you.

Tony Smurfit: So if you said, where we've fallen down a little bit, it's in our German operations that really haven't, you know, hit the ball out of the park. Most other businesses, Gabe, have done okay to our expectations, and, you know, we've had some very strong performances in places like Spain and the Eastern European businesses. But overall, you know, we would have liked to be a little bit better in Europe. And, you know, where we're not is because, I suppose, of Germany, and I don't think that's going to be a surprise to you. Obviously, we would have expected slightly more. You know, when we sat here in April, and we were talking to you, we would have expected that the Olympics and the European Cup would have brought forward some consumer spending.

Speaker Change: You know hit the ball out of the park. Most other businesses gave have done okay to our expectations and You know we've had some very strong performances in places like Spain and and the Eastern European businesses But

Speaker Change: Overall, we would have liked to be a little bit better in Europe.

Speaker Change: And you know, where we're not is because I suppose with Germany and I don't think that's going to be surprised to you. Obviously we would have expected slightly more, you know, when we sat here in April.

Tony Smurfit: I suppose, of Germany, and I don't think that's going to be a surprise to you. Obviously, we would have expected slightly more. You know, when we sat here in April, and we were talking to you, we would have expected that the Olympics and the European Cup would have brought forward some consumer spending.

Speaker Change: We were talking to you, we would have expected that the Olympics and the European Cup would have brought forward some consumer spending.

Tony Smurfit: And while, you know, comparisons are, you know, getting tougher, and we're staying line ball with those comparisons versus last year, which is, I suppose, a good thing, it's still not, you know, massively improving. I think we're about 3%, 2.5% up year-on-year, but that's not, that's not on the same day basis. We're about 1% up on the same day basis in Europe. Overall, taking into account the weak Germany, not particularly great in France, you know, so we didn't see the pickup of demand that we would have anticipated when we were sitting here back in April, based upon the events that were supposed to happen. But it's not awful either.

Speaker Change: And while, you know, comparisons are, you know, getting tougher and we're staying in line ball with those comparisons versus last year, which is, as opposed to good thing, it's still not...

Speaker Change: You know, massive improvement. I think we're about 3% 2.5% up year on year, but that's not on the same day basis. We're about 1% up on the same day basis. In Europe, overall taking into account the week Germany.

Speaker Change: not particularly great in France, you know. So we didn't see the pickup.

Speaker Change: I'm demand that we would anticipate it when we were sitting here back in April based upon the events that were supposed to happen. But it's not awful either. It's just a big sort of, let's get out of the year and let's see if, you know, at lower interest rates next year, we'll start to hopefully help consumers spend it.

Tony Smurfit: You know, it's just, it's just a big sort of, let's get out of the year and let's see if, you know, lower interest rates next year will start to hopefully help consumer spending.

Ken Bowles: I suppose, Gabe, just to add on Tony, you know, where the volumes are sitting in relation to the consumer remaining strong, I think it's also fair to say, while corrugated pricing is probably down 4% year-over-year, you know, I think sequentially through Q3 over Q2, we saw a bit of improvement there, too. So it's not all, not all doom and gloom. Well, it could be slightly better.

Speaker Change: I suppose gave just that on Tony, you know, where the volumes are sitting in relation to the constant, relaming strong, and it's also very say while corrugated pricing is probably down.

Speaker Change: You know, for a percent year and year, I think sequentially true to you three over Q2 we saw a bit of improvement there too. So it's not all, not all, not all doom and doom, it could be slightly better.

Gabe Hajde: No, listen, I mean, I think the data in North America hasn't been great either. Okay. I'm gonna try to frame this up for you all. Maybe second half EBITDA combined of 2,465 is directionally what we're coming up with. Trying to think about kind of calendar 2025, and I appreciate you gave us a CapEx number. If we were to double that, and you already told us the Q4 is tough to predict, and then layer in some, you know, $250 to 300 million of synergies, would that directionally be what we should be thinking about for 2025? And then we can make our own assumptions for volumes. Any other moving parts that you would point us to would be helpful as well.

Speaker Change: No, listen, I think the data in North America hasn't been great either. Okay, I'm going to try to frame this up for you all. Maybe second half, EVA DA combined of two four, six five is direction and well we're coming up with.

Speaker Change: Trying to think about kind of calendar 25 and appreciate you gave us a cap action number.

Gabe Hajde: If we were to double that, and you already told us the Q4 is tough to predict, and then layer in some, you know, $250 to 300 million of synergies, would that directionally be what we should be thinking about for 2025? And then we can make our own assumptions for volumes. Any other moving parts that you would point us to would be helpful as well.

Speaker Change: If we were to double that and you already told us that December quarter is tough to predict. And then lay her in some, you know, $250, 300 million of synergies.

Speaker Change: Would that directly be what we should be thinking about for 25? And then we can make our own assumptions for volumes. Any other moving parts that you would point us to would be helpful as well.

Tony Smurfit: I'm definitely giving that one over to Ken.

Ken Bowles: Yes, I can see myself and Tony visually kind of say, No, you take it. No, you take it. I suppose, Gabe, the first thing to say is we haven't produced a budget for 25 yet, and we haven't taken it to our board. But, I suppose in the round, I don't think your direction of travel is off what we see, because I think, you know, if you look sequentially through 2024, you see improvement Q2 on Q1 as a combined Q3 on Q2 and indeed Q4 on Q3 and Q4 on Q4 last year.

Speaker Change: I'm definitely giving that one over to Ken. I can see myself at the 720, visually, I can say, no, you take it. You take it. I was gave the first thing to say, we haven't produced the budget for 25 years, and we haven't taken to our board.

Speaker Change: I was in the ran and only in direction travel is awful we see because I think

Speaker Change: If you look the quenches through 2024, you see

Speaker Change: and that's a combined 3 on 2 and in these 4 and 3 and 4 on 4 last year. So I don't think where your starting point is and as Karen and Frank said they can care of the applications they can have it with anyway.

Ken Bowles: So I don't think where your starting point is, and as Ciaran and Frank said, they've taken clarifications they can help you with anyway, but we haven't kind of finished and finalized on a budget for 25 yet. But I don't think your thought process is that off the mark either.

Speaker Change: We haven't finished and finalized on a budget for 25 years. But I don't think your top-rightscess is that off the marketer. And I wouldn't disagree.

Tony Smurfit: I wouldn't disagree. We're agreeing.

Gabe Hajde: Thank you, gentlemen.

Speaker Change: So we're agreeing. Thank you. Okay, thanks.

Tony Smurfit: Okay, thanks.

Operator 3: Thank you. We'll now take our next question. This is from the line of Anthony Pettinari from Citi. Please go ahead.

Operator 2: Thank you. We'll now take our next question. This is from the line of Anthony Pettinari from Citi. Please go ahead.

Speaker Change: Thank you.

Speaker Change: We'll now take our next question.

Speaker Change: This is from the line of Antony Petanari from City. Please go ahead.

Gabe Hajde: Good morning.

Anthony Pettinari: Good morning.

Anthony Pettinari: ... I was wondering if you could, hey, looking at North America, I was wondering if you could talk about and maybe contrast the performance of the corrugated and the consumer businesses. And Tony, I guess, could you talk about your impressions of the consumer business more broadly, you know, given that it's a little bit of a different exposure than the Smurfit business?

Antony Petanari: I'm good morning. I was wondering if you could, looking at North America, I was wondering if you could talk about and maybe contrast the performance of the corrugated and the consumer businesses.

Speaker Change: And Tony, I guess, can you talk about your impressions of the consumer business more broadly? You can give it a little bit of a different exposure than the specific business.

Tony Smurfit: Okay. Well, you know, we have obviously consumer businesses, not just in the United States, but also in Europe and actually the rest of the world, which is where WestRock had businesses. So my overall impression of the consumer business is a very good business, very well run, good equipment, good people. We've segmented it now into three different areas, which are food, beverage, and health and beauty. And they're very complementary to our businesses, and we expect to continue to improve those businesses, both through investment and through putting plant level responsibility back. And as I say, I be nothing short of very impressed with the consumer side of those businesses.

Speaker Change: Okay, well, you know, we have obviously consumer business, not just in the United States, but also in

Speaker Change: In Europe and actually the rest of the world, which is where West Rocker had businesses. And so my overall impression of the consumer business is a very good business, very well-run.

Speaker Change: Good equipment, good people, we segmented it now into three different areas which are food.

Tony Smurfit: We've segmented it now into three different areas, which are food, beverage, and health and beauty. And they're very complementary to our businesses, and we expect to continue to improve those businesses, both through investment and through putting plant level responsibility back. And as I say, I be nothing short of very impressed with the consumer side of those businesses.

Speaker Change: into beverage and into health and beauty.

Speaker Change: And they're very complementary to our businesses and we expect to continue to improve those businesses, both through investment and through putting flat-level responsibility back and as I say, I have nothing short of.

Speaker Change: very impressed with the consumer side of those businesses. Still lots to do and you know we'd like the market to be a little bit stronger in certain areas, but overall good, meal systems for consumer are our...

Tony Smurfit: Still lots to do, and, you know, we'd like the market to be a little bit stronger in certain areas, but overall, good. Mill systems for consumer are, you know, certain parts are good. Obviously, there's an issue with SBS in the marketplace, and we need to figure strategically out how to deal with that. Our folding box board machines are, you know, they're smaller than the main competition, but there is basically ourselves and the main competition, which is Graphic Packaging. And while we're going to be obviously way smaller mills, but, you know, way significantly less capital invested in those mills. So we just need to figure out, you know, what's the shape of those as we go forward.

Speaker Change: You know, it's certain parts are good. Obviously there's an issue with SPS in the marketplace and we need to

Speaker Change: to figure out how to deal with that. Our folding boxboard machines are smaller than the main competition, but there is basically ourselves.

Speaker Change: and the main competition was coming with graphic packaging and while we're going to be obviously way smaller mills but you know way significantly less capital invested in those mills so we just need to figure out what's the shape of those as we as we go forward.

Tony Smurfit: And while we're going to be obviously way smaller mills, but, you know, way significantly less capital invested in those mills. So we just need to figure out, you know, what's the shape of those as we go forward.

Tony Smurfit: With regard to the corrugated business, you know, I think, as I said earlier, I'm pretty happy with all the mills. You know, there's one or two that we, we'd have question mark for the long term, but we need to figure those out. But basically, you know, what I've seen is good or very good, and especially internationally, when you go to the Mexican mill system or the Brazilian mill system, it's outstanding. And then on the corrugated side, we have certain areas and certain regions that are, you know, we need to change the focus of certain of the box plants. But, you know, that's just work in progress and normal stuff.

Speaker Change: With regard to the corrugated business.

Speaker Change: I think as I said earlier, I'm pretty happy with all the meals. There's one or two that we'd have question mark for the long term, but we need to figure those out. But basically, what I've seen is good are very good, and especially internationally when you go to.

Speaker Change: And then on the corrugated side, we have certain areas in certain regions that are, you know, we need to, you know, change the focus of certain box plants. But, you know, that's just, that's where it can progress and normal stuff.

Tony Smurfit: But, you know, we haven't even started right now, Anthony, in bringing in our innovation from Europe into the United States yet. That's work in progress. That's gonna take us a little bit of time to get the system, as I mentioned on my script, get the systems right, make sure that, and we have the right person leading that. So a little bit of time to get there before we're able to transfer all the worldwide knowledge of packaging that we have into our corrugated system. But it's coming, and it's gonna be huge for our customers, and it's gonna be a big opportunity for our customers to have better packaging in the United States.

Speaker Change: But you know we haven't even started

Speaker Change: Right now, Anthony, in bringing in our innovation from Europe into the United States. That's work and progress. That's going to take a little bit of time to get the system, as I mentioned on my script. Get the systems, where I make sure that we have the right person leading that.

Speaker Change: And so, a little bit of time to get there before we're able to transfer all the worldwide knowledge of

Speaker Change: packaging that we have into our corrugated system, but it's coming

Speaker Change: And it's going to be huge for our customers and it's going to be a big opportunity for our customers to to have better packaging in the United States.

Anthony Pettinari: Okay. That, that's very helpful. And then, you know, with your approach to the box business or the carton business and the focus on value over volume, I think you referenced maybe potentially some contracts turning over. And I guess to the extent that you anticipate, you know, maybe some churn in customers or maybe a period where, you know, volumes could be a little bit, a bit choppier, how long does that process take to kind of sort that out? I mean, is that, you know, six months or a year or two years or?

Speaker Change: Okay, that's very helpful.

Speaker Change: And then with your approach to the box business or the carton business.

Speaker Change: and the focus on value over volume. I think you referenced maybe potentially some contracts turning over. And I guess to the extent that you anticipate

Speaker Change: Maybe some churn and customers are making it clear where volumes could get chopped here.

Speaker Change: How long does that process take to kind of sort that out?

Speaker Change: six months or a year or two years although it's not it's

Tony Smurfit: Oh, no, it's not. It's basically, Anthony, if you've bad business, if you have salespeople who can't replace bad business with slightly better business, then you don't have good salespeople. So, you know, obviously, you know, we believe that all the poor business that we will lose or could lose over time, you know, will be replaced with better business. Because, you know, we will, you know, there's we're still only, I don't know, 20% of the market or so, so there's 80% to go for. And, you know, there's plenty of good business out there as long as you're offering something different. And, you know, this is something that we have been doing for decades. I mean, you know, this is the way that we sell.

Speaker Change: It...

Speaker Change: Basically, Anthony, if you have bad business...

Speaker Change: you have sales people who can't replace bad business with slightly better business, then you don't have good sales people. So, you know, obviously, you know, we believe that all the poor business that we will lose or could lose over time, you know, will be replaced with better business because, you know, we will, you know, there's, we're still only

Speaker Change: I don't know, 20% of the market or so, so there's 80% to go for and and.

Tony Smurfit: And, you know, there's plenty of good business out there as long as you're offering something different. And, you know, this is something that we have been doing for decades. I mean, you know, this is the way that we sell.

Speaker Change: there's plenty of good business out there, as long as you're offering something different. And this is something that we have been doing for.

Speaker Change: Decades I mean, you know, this is the way that we sell this is the way that we we we don't we don't We give our customers better value by

Tony Smurfit: This is the way that we give our customers better value by producing better boxes rather than just a straight brown box. And it doesn't happen overnight, but, you know, we will have the systems to be able to give our salespeople the tools to sell better. And that's, you know, when you lose a big chunk of business, it might hurt a factory for, let's say, a year, but you typically come back within a year. If it's bad business.

Speaker Change: producing better boxes rather than just a straight brown box and it doesn't happen overnight but you know we will have the systems to be able to give our sales people the tools.

Speaker Change: sell better and that's you know when you lose a big chunk of business it might hurt a factory for let's say a year but you typically come back within a year.

Anthony Pettinari: Okay. Understood. Yep, understood. That's, that's very helpful. I'll turn it over.

Speaker Change: if it's bad business. Okay, understood, yeah, understood. That's very helpful. I'll turn it over. Thanks, Anthony.

Tony Smurfit: Thanks, Anthony.

Operator 3: Thank you. We'll take our next question. This is from the line of Matthew McKellar from RBC Capital Markets. Please go ahead.

Operator 2: Thank you. We'll take our next question. This is from the line of Matthew McKellar from RBC Capital Markets. Please go ahead.

Speaker Change: Thank you.

Speaker Change: We'll take our next question. This is from the line of Matthew McKellar from RBC Capital Markets. Please go ahead.

Matthew McKellar: Good morning. Thanks for taking my question. You talked about retaining and winning business through quality and service improvements, and I think you've talked around quality, but can you maybe give a bit more color here on what execution and service improvement in particular looks like to you and what your focus items are here?

Matthew Mckellar: Good morning, thanks for taking my question. You talked about retaining and winning business through quality and service improvements and I think you've talked around quality but can you maybe give a bit more color here on what execution and service improvement in particular looks like to you and what your focus items are here?

Tony Smurfit: Matt, I mean, at the end of the day, you know, we believe in, you know, delivering on time in full, at, you know, close to 100%. You know, we have a measure in our European business of PPM, parts per million, of defects. You know, we expect all of our plants to have less than 500 parts per million boxes in defects. You know, obviously, not all plants are there at the same time. A lot depends on the equipment that you have. A lot depends on the planning systems you have. A lot depends on your customer mix, but basically, the gold standard is to have a PPM under 300, and an OTIF around 98%.

Speaker Change: Matt, I mean, at the end of the day, you know, we, we believe in.

Speaker Change: You know

Speaker Change: delivering on time and full at you know close to a hundred percent.

Speaker Change: And, you know, we have a measure in our European business of PPM, parts per million of defects. And, you know, we expect all of our plants to have less than 500 parts per million boxes in defects. And, you know, obviously not all plants are there at the same time. A lot depends on the equipment that you have. A lot depends on the planning systems you have.

Speaker Change: That depends on your customer mix, but basically the gold standard is to have a PPM under 300.

Speaker Change: and an OTIF around 98% and you know, you've got to be set up for that. You've got to have, it doesn't happen overnight, but that's where we need to get to.

Tony Smurfit: You know, you've got to be set up for that. You've got to have it. It doesn't happen overnight, but that's where we need to get to. Certainly under 500 PPM.

Mark Weintraub: Okay, thank you.

Matthew McKellar: Okay, thank you.

Speaker Change: Certainly on the 500 PCF.

Matthew McKellar: Thank you. And maybe just one for Ken. In terms of timing, are you able to share whether you'll capture the full benefit of the recent headcount reduction you noted in Q4, or whether there are further cost savings as a result of these reductions that will flow through in 25? Thanks.

Speaker Change: Thank you.

Speaker Change: Thank you and maybe just one for Ken. In terms of timing, are you able to share whether you'll capture the full benefit of the recent headcount reduction you noted at Q4 or whether there are further cost savings as a result of these reductions that will flow through in 2025? Thanks.

Ken Bowles: Most, most of the, Matt, most of the headcount reduction in 2024, we tracked in 2024, it'd be very little bleed over into 2025 in that sense.

Speaker Change: Most of the head count reduction in 24, we trapped in 24, there'd be very little bleed over into 25 in that sense.

Tony Smurfit: There's still a lot of reengineering to be done then, Matt, and that's part of the synergy program.

Speaker Change: But there is still a lot of re-engineering to be done, Matt.

Speaker Change: And that's part of the Synergy Program.

Matthew McKellar: Okay, thanks very much. I'll turn it back.

Speaker Change: Okay, thanks very much. I'll turn it back. Thank you. Thank you. We'll take our next question.

Tony Smurfit: Thank you.

Operator 3: Thank you. We'll take our next question. This is from Patrick Mann from Bank of America. Please go ahead.

Speaker Change: Go to Beadaholique.com for all of your beading supply needs!

Speaker Change: This is from Patrick Mann from Bank of America. Please go ahead.

Patrick Mann: Hi. Good day. Thanks very much for taking the question and for the presentation. I think it's a bit of a follow-up question, just on the value over volume approach, which you've mentioned a few times. How should we think about this playing out? I mean, Tony, I was listening to you saying, you know, we can replace bad business with good business over time. So should we think about it as, you know, kind of the same base business, but with improving margins, improving commercial success over time? Or does it end up, at least partly, that you have a, you know, smaller but more profitable business over time through divestments or closures or restructuring? I mean, just help us through practically how that takes hold or gets implemented over time. Thanks.

Patrick Mann: Good day. Thanks very much for taking the question and for the presentation. I think it's a bit of a follow-up question just on the value over volume approach, which you've mentioned a few times.

Speaker Change: How should we think about this playing out? I mean, Tony, I was listening to you saying, we can replace bad business with good business over time. So should we think about it as, kind of the same base business, but with improving margins, improving commercial success over time, or does it end up?

Speaker Change: at least partly, that you have a smaller but more profitable business over time through divestments or closures or restructuring. I mean, just help us through practically how that works.

Tony Marvers: takes hold or gets implemented over time, thanks. Patrick, thank you, it's a lot of everything there that you've said, I mean, you know, clearly if you have...

Tony Smurfit: Patrick, Patrick, thank you. It's a lot of everything there that you've said. I mean, you know, clearly, if you have a number of facilities in the same area, you can rationalize a little bit some of those facilities, and that's something that Legacy WestRock was doing. So that's part of it. But also, you know, it is really about recognizing what you're offering the customer, and can you offer him something other than just a brown box? And that is about selling for value rather than just for price. And so our whole ethos has always been in Smurfit Kappa, is to deliver something more for customers and understand what the customer's pain is. You know, and each customer has different pain.

Tony Marvers: number of facilities in the same area you can you can rationalize a little bit some of those facilities and that's something that Legacy Westrock was doing and that's so that's part of it.

Tony Smurfit: So that's part of it. But also, you know, it is really about recognizing what you're offering the customer, and can you offer him something other than just a brown box? And that is about selling for value rather than just for price. And so our whole ethos has always been in Smurfit Kappa, is to deliver something more for customers and understand what the customer's pain is. You know, and each customer has different pain.

Tony Marvers: but also you know it is really about recognizing what you're offering the customer and can you offer him something other than just a brown box and and that is about selling for value rather than for just for for price.

Tony Marvers: And so our whole ethos has always been in Smurf Kappa is to deliver something more for customers and understand what the customer's pain is.

Tony Smurfit: Some is in the logistics, some is in their sustainability agenda, some is in their, their own machine line efficiencies. And we have all the ability to offer all of the things for the customer, because each individual customer has a different requirement. And, you know, there are, you know, hundreds of thousands of customers. It's not just, you know, it's not just the big customers that we all know and love. It's. There's many, many small manufacturers around the place, many small businesses that require TLC and help in how to package their products more efficiently. And as I say, we do that. That's what, that's what we. That's where we come from. That's what we built our business on. That's what Smurfit Kappa is acknowledged as the leader in Europe by practically every customer.

Tony Marvers: you know, each customer has different pain. Some is in the logistics, some is in the sustainability agenda.

Tony Marvers: Someone's in there.

Tony Marvers: their own machine line efficiencies and we have all the ability to offer.

Tony Marvers: all of the things for the customer to each individual customer has a different requirements and you know there

Tony Marvers: hundreds of thousands of customers. It's not just the big customers that we all know and love. There's many, many small manufacturers around the place, many small businesses that require TLC and help in how to package their products more efficiently. And as I say, we do that. That's where we come from. That's what we built our business on. That's what Smurfa Kappa is acknowledged as.

Tony Smurfit: And as I say, we do that. That's what, that's what we. That's where we come from. That's what we built our business on. That's what Smurfit Kappa is acknowledged as the leader in Europe by practically every customer.

Tony Marvers: the leader in Europe by practically every customer and you know there's no reason why we won't do that in time in Europe and are in the United States and in the rest of Latin America and you can already see that we're we're making good progress we can see we're making good progress and

Tony Smurfit: and, you know, there's no reason why we won't do that in time in Europe and/or in the United States and in the rest of Latin America. You can already see that we're making good progress. We can see we're making good progress, and that's not there yet, and that's the extra $400+ million that we would expect to get as we move forward.

Tony Marvers: That's not there yet, and that's the extra 400-plus million that we would expect to get as we move forward.

Patrick Mann: Got it. Thank you.

Tony Smurfit: Thank you very much.

Speaker Change: Got it. Thank you. Thank you very much.

Operator 3: Thank you. We'll take our next question. This is from the line of Mark Weintraub, from Seaport Research Partners. Please go ahead.

Operator 2: Thank you. We'll take our next question. This is from the line of Mark Weintraub, from Seaport Research Partners. Please go ahead.

Speaker Change: Thank you.

Speaker Change: We'll take our next question.

Speaker Change: Bye.

Speaker Change: This is from the line of Mark Weintraub from Seaport Research Partners. Please go ahead.

Mark Weintraub: Thank you. So you know, there looks like there's a fair bit of capacity coming on in Europe next year. When sitting in North America, when that's happening, we tend to get worried. But I know Europe's a different market, but I don't know it nearly as well as you do. So I was hoping to get some perspective on how we should be thinking about the new capacity that, at least on paper, is supposed to be coming on in Europe next year.

Mark Weintraub: Thank you.

Mark Weintraub: So, there looks like there's a fair bit of capacity coming on in Europe next year. When it's in North America, when that's happening, we tend to get worried. But I know Europe's a different market, but I don't know it nearly as well as you do. So, I was hoping to get some perspective on that.

Mark Weintraub: how we should be thinking about the new capacity that, at least on paper, is supposed to be coming on in Europe next year.

Tony Smurfit: Yeah, there's new capacity, and it tends to be lumpy. But you know, at the moment, you saw last week, Mark, the announced bankruptcy of an independent paper maker. It's pretty well the same kind of structure in Europe as it is in the US to some extent, that new capacity has to find a home, and if they don't have people to sell it to, they you know have to take downtime. And you know, we saw that last year. And honestly, with the amount of independents out there who are not doing very well, actually, in the business, you've seen some you know large groups being sold recently, a large group being sold recently.

Speaker Change: Yeah, there's new capacity and it tends to be lumpy, but at the moment, you saw last week, Mark, the announced bankruptcy of an independent papermaker. It's pretty well the same kind of structure in Europe as it is in the U.S. to some extent.

Speaker Change: That new capacity has to find a home and if they don't have people to sell it to they, you know, they have to take downtime and, you know, we saw that last year.

Speaker Change: And honestly, with the amount of independents out there who are not doing very well actually in the business, you've seen some large groups being sold recently. So you can...

Tony Smurfit: You know, so you can, you can readily say, "Well, where is the new capacity going to go?" And frankly speaking, you know, there is no answer to that other than downtime, which is what happened during 2022 or 2023 when the market got soft. People took a lot of downtime because they had to, and, you know, there just won't be a market for it. And, you know, most of the new capacity that's coming on in Europe is owned by people who have existing capacity. So, you know, if they take the price down, you know, they're only taking the price down on their other business, and that's not a good strategy. So I suspect there'll be a lot of downtime as this capacity is being introduced.

Speaker Change: readily say where is the new capacity going to go and frankly speaking there is no answer to that other than downtime which is what happens during 2000 and.

Speaker Change: 22 or 23 when the market got soft people took a lot of downtime because they have to and you know, there just won't be a market for it and

Speaker Change: Most of the new capacity, Mark, that's coming on in Europe

Speaker Change: is owned by people who have existing capacity, so, you know, if they take the price down...

Speaker Change: You know, they're only taking the price down on their other business and that's not a good strategy. So I suspect there'll be a lot of downtime as this capacity is being introduced or exported out to the rest of the world, which is, generally speaking, Asia or some of the Middle Eastern countries.

Tony Smurfit: are exported out to rest of the world, which is generally speaking, Asia or some of the Middle Eastern and other areas.

Ken Bowles: I then think the other thing with those list markets, just remember that, you know, they tend to have a rose-colored view on machines starting up a jam one and running full for the year. So it tends to, the tons never really come on in the way that they're listed on those sheets.

Speaker Change: I think the other thing with those list markets, just remember that they tend to have a rose-colored view on machines starting up at Jam 1 and running full for the year, so the tons never really come on in the way that they're listed on those sheets.

Mark Weintraub: Yeah, appreciate that.

Tony Smurfit: I think we've had new capacity in Europe. I mean, I've been in the business now for nearly 40 years, and it's always been new capacity coming on in Europe. It's always been either absorbed or other stuff has been shut down, and you know, you continue to see non-integrated mills suffering and will continue to suffer if they don't have the integrated strategy, which we and others have.

Speaker Change: I think we've had new capacity in Europe.

Speaker Change: nearly 40 years and it's always been new capacity coming on in Europe. It's always been either absorbed

Speaker Change: Our other stuff has been shut down and you continue to see non-integrated mills suffering and will continue to suffer if they don't have the integrated strategy which we and others have.

Mark Weintraub: Thank you very much. And it just you had mentioned, you know, smaller machines in folding boxboard in North America. Is that a reference to coated recycled board, I assume? That's not SBS, correct? Is that coated recycled board?

Speaker Change: Thank you very much. And just, you had mentioned, you know, smaller machines and folding boxwork in North America. That's a reference to coded recycle board, I assume? That's not SPS, correct? Is that coded recycle board? That's coded recycle, yeah. Okay. And there's some that are very, you know,

Tony Smurfit: That's coated recycled, yep.

Mark Weintraub: Okay, appreciate.

Tony Smurfit: There's some that are very, you know, niche-oriented, Mark. They're in areas that are fully integrated and, you know, that doesn't really cause us any particular long-term problem. There are some that we'll just have to continue to look at. Do they have the quality? It's not really do they have the price, 'cause we have almost no invested capital in those businesses. But do they have the quality that is gonna be existing in the marketplace going forward? And that's something we'll have to analyze over the next couple of years or so.

Speaker Change: niche orientated, Mark, so they're not.

Speaker Change: They're in areas that.

Speaker Change: are are fully integrated and you know that doesn't really cause any particular long-term problem that there's a there's some that will just have to continue to look at do they have the quality not really do they have the price because we have almost no invested capital in those businesses.

Speaker Change: But do they have the quality that is going to be existing in the marketplace going forward? And that's something we'll have to analyze over the next.

Speaker Change: a couple of years or so.

Mark Weintraub: Thanks very much.

Tony Smurfit: Thank you.

Speaker Change: Thanks very much. Thank you.

Operator 3: Thank you. We'll now take our next question. This is from the line of Gaurav Chain from Barclays. Please go ahead.

Operator 2: Thank you. We'll now take our next question. This is from the line of Gaurav Chain from Barclays. Please go ahead.

Speaker Change: Thank you.

Speaker Change: We'll now take our next question.

Speaker Change: This is from the line of Gourav Chain from Barclays. Please go ahead.

Gaurav Jain: Hi, good afternoon, Tony and Ken. So a couple of questions from me. One is on, you know, free cash flow and net debt. So the net debt number is slightly higher than what we had, and this is the first time we have a combined balance sheet, and the free cash flow is lower. So is there some quarterly thing happening, and Q4 will be a much better free cash flow quarter than what we had? So, that was my question number one. And secondly, you know, you have touched about upon US container board, European container board, US consumer board separately, but could you just talk about what you are seeing in the near term? Because some of your peers have been sounding concerns, especially on the European container board side.

Gourav Chain: Hi. Good afternoon, Tony and Ken. A couple of questions from me. One is on, you know, free cash flow and net debt. So the net debt number is slightly higher than what we had. And this is the first time we have a combined balance sheet.

Gourav Chain: and the free cash flow is lower. So is there some quarterly swing happening and Q4 will be a much better free cash flow quarter than what we had?

Gaurav Jain: So, that was my question number one. And secondly, you know, you have touched about upon US container board, European container board, US consumer board separately, but could you just talk about what you are seeing in the near term? Because some of your peers have been sounding concerns, especially on the European container board side.

Gourav Chain: So...

Gourav Chain: That was my question number one. And secondly, you know, you have talked about upon U.S. container board, European container board, U.S. consumer board separately, but could you just talk about what you are seeing in the near term, because some of your peers...

Gourav Chain: have been sounding concerns, especially on the European container mode side.

Ken Bowles: I think it's probably around pricing, Gaurav. I think what we've seen is broadly flat pricing in North America, but I mean, the European price had gone up by about $140 a ton. It's just come up $40 in the last month or so, so not, not necessarily a cause for concern.

Speaker Change: I think it's probably around pricing graph. I think what we've seen is broadly flat pricing in North America, but I mean the European price.

Speaker Change: I'd gone up by about 140 tons, it's just come up 40 in the last month or so, so not necessarily a call for concern. And that's just as a result of lower waste paper prices. Yeah, on the back, recovered fiber prices dropping also. So I think that's probably where we sit. On the first one, I think there's probably a bit of a seasonal effect. I think also as recovered fiber drops.

Tony Smurfit: And as a result of lower waste paper prices.

Ken Bowles: Yeah, so... Yeah, and the bulk recovered fiber price is dropping also. So I think that's probably where we sit. On the first one, I think there's probably a bit of a seasonal effect. I think also as recovered fiber drops, you have less creditors. So there's a slightly bigger creditor outflow than we might have thought, but also sequentially, box prices rose. So in, you get the adverse effect of that, which is a slightly more investment in working capital. I think you're probably slightly higher than that debt level, too, because, you know, we did get through a fair bit of work in terms of cost and headcount reduction and things like that, that probably drove the numbers slightly higher.

Ken Bowles: So there's a slightly bigger creditor outflow than we might have thought, but also sequentially, box prices rose. So in, you get the adverse effect of that, which is a slightly more investment in working capital. I think you're probably slightly higher than that debt level, too, because, you know, we did get through a fair bit of work in terms of cost and headcount reduction and things like that, that probably drove the numbers slightly higher.

Speaker Change: you have less creditors, so there's a small, bigger creditor outflow than we might have thought, but also sequentially box prices rope, so you get the adverse effect of that, which is a slight more investment in working capital. I think you're probably slightly higher than that debt level too, because we did get through a fair bit of work.

Speaker Change: in terms of cost and headcount reduction and things like that, that probably drove the number slightly higher. But I think out of kind of combined net debt basis of 2.8 times.

Ken Bowles: But I think at a kind of, you know, combined net debt basis of 2.8 times, it's probably not materially higher than where you are. And generally, the back half of the year tends to be slightly more cash generative. But there's probably nothing fundamental there, but probably the moving parts around where creditors sit and falling prices around some of those creditor items versus, you know, investment in investment in working capital as a result of box price increases are probably two big sizes. Inventory tends to be in good shape, so but beyond that, they're really the only moving parts.

Speaker Change: It's probably not materially higher than where you are. And generally, the back half of the year tends to be slightly more cash generative. But there's probably nothing fundamental there, but probably the moving parts around where creditors sit and falling prices around some of those creditor items.

Speaker Change: versus, you know, investment in working capital as a result of box price increases are probably two big sides. But inventory tends to be in good shape, so that beyond that, they're really the only moving parts.

Gaurav Jain: Thank you so much.

Speaker Change: Thank you so much.

Operator 3: Thank you. We'll now take the next question. This is from the line of Phil Ng, from Jefferies. Please go ahead.

Operator 2: Thank you. We'll now take the next question. This is from the line of Phil Ng, from Jefferies. Please go ahead.

Speaker Change: Thank you.

Speaker Change: We'll now take the next question.

Speaker Change: This is from the line of Phil Ng from Jefferies. Please go ahead.

Philip Ng: Hey, guys. Now that you've had some time to look at your assets, you know, what are some areas where you wanna put capital to work, whether it's on the mill net level or box side of things? You know, the $2.2 to 2.4 billion CapEx framework you've provided, is that a reasonable framework for the next few years? And then lastly, when you kind of look at your footprint, any assets that stand out? You know, I know SBS isn't something that you're sure if it's a strategic fit over long term, but that market's very oversupplied. Is that something you plan to tackle in making sure supply-demand is in a better spot, call it, in the medium term?

Phil Ng: Hey guys, now that you've had some time to look at your assets, what are some areas where you want to put capital to work, whether it's on the mill level or box side of things?

Phil Ng: the 2.2 to 2.4 billion CapEx framework you've provided, is that a reasonable framework for the next few years? And then lastly, when you kind of look at your footprint, any assets that stand out, you know, I know SPS,

Phil Ng: isn't something that you're sure if it's a strategic fit over a long term but that markets very oversupplied. Is that something you plan to tackle in making sure supply demand is in a better spot call it in the medium term?

Tony Smurfit: Hi, Philip. Yeah, I mean, just on the SBS side, I mean, it's it. You know, we're still analyzing that business. You know, we're into it 3 months now, and you know, it has been a very good business. We need to figure out how we deal with the imports of the replacement product of SBS into the marketplace, which is FBB. And we need to figure out, you know, where does SBS sit versus that? You know, obviously, the imported product that's replacing it has got some issues attached to that, which are, you know, you've seen the port strikes, you've seen the uncertainty that some of those imports can have.

Speaker Change: Hi Philip, yeah I mean just on the SPS side I mean you know we're still analyzing that business you know we're into it three months now and you know there has been a very it has been a very good business we need to figure out how we deal with

Speaker Change: The imports of the replacement product of SBS into the marketplace, which is FBB, and we need to figure out where does SBS sit versus that. Obviously, the imported product that's replacing it has got some issues attached to that, which are...

Speaker Change: You've seen the port strikes, you've seen the uncertainty that some of those imports can have. So we're not 100% sure yet where SBS sits, but I would say that...

Tony Smurfit: So we're not 100% sure yet where SBS sits, but I would say that, you know, the two big mills that we have are actually good mills. So we need to figure out, you know, and they're very efficient mills. So I think we've got a very good starting point to figure out, you know, where do we stand with that grade. You know, it is somewhat integrated. We'd like it to be more integrated, but, you know, it's something that we'll have to look at over time. But I don't—we're not ready to make a decision on SBS. All I can say is, for the moment, it's staying with us. With regard to, like-

Speaker Change: You know the two big mills that we have are actually good mills, so we need to figure out you know And they're they're they're very efficient mills

Speaker Change: So I think we've got.

Speaker Change: very good starting point to figure out you know where do we where do we stand with that grade you know it is somewhat integrated we'd like it to be more integrated but you know it's

Speaker Change: It's something that we'll have to look at over time, but I don't we're not ready to make a decision on SPS All I could say is for the moment. It's staying with us

Speaker Change: With regard to

Philip Ng: Where we put the money.

Tony Smurfit: Where we put the money. I mean, you know, we have some work to do on our converting businesses to make sure that they are able to give the quality and service that our customers require and is going to make us different. So we've got some work to do, not necessarily on the consumer side, but more on the corrugated side, but not in a massive way. It's just some of our facilities; we need to continue to upgrade some of our corrugators. And obviously, as I said earlier, maybe some smaller rationalizations as we look forward.

Speaker Change: Where we put the money. Where we put the money. I mean, you know, we have some work to do on our converting businesses to make sure that they are able to give the quality and service that our customers require and is going to make us different.

Speaker Change: So we've got some work to do, not necessarily in the consumer side, but more in the corrugated side.

Speaker Change: Not in a may not in a massive way It's just something some some of our facilities. We need to continue to upgrade some upgraded some of our corrugators

Speaker Change: And obviously, as I said earlier, maybe some smaller rationalizations as we look forward. So that's probably where we'll be concentrating our efforts.

Tony Smurfit: So that's probably where we'll be concentrating our efforts, you know, other than the normal maintenance capital, you know, the winders, the electrical things that we have to do in some of the mills that are sort of pretty standard. You know, and then going forward, you know, we are going to develop a plan, and we don't know yet whether it's, you know, gonna sit in the $2.2 to 2.4 or higher than that. I would say it's gonna be higher than that because we've got a lot of opportunities, as we can see right now. But we want to do that more in a more cohesive way, rather than just jump into it in our first year. We have initiated a program of what we call quick wins.

Speaker Change: you know, other than the normal maintenance capital, you know, the winders, the electrical things that we have to do, and some of the mills that are sort of pretty standard, you know, and then going forward, you know, we are going to develop a plan, and we don't know yet whether it's

Speaker Change: you know, going to fit in the 2.2 to 2.4 or higher than that. I would say it's going to be higher than that, because we've got a lot of opportunities as we can see right now, but we want to do that more in a.

Speaker Change: more cohesive way rather than just jump into it in our first year. We have initiated a program of what we call quick wins, so anything that has got a very quick payback.

Tony Smurfit: So anything that has got a very quick payback, we just authorized $150 million last week at the board, for some quick wins, which have really quick paybacks, like, you know, less than two-year paybacks, that we can get. And we see a lot more opportunities there, but we just need some time to, you know, engineer those correctly. So that's the kind of thing we're looking at. And then, you know, obviously, as the returns get worse, we'll look at that.

Speaker Change: We just authorised $150 million last week at the board for some quick wins which have really quick paybacks, like less than...

Speaker Change: less than two-year paybacks that we can get and we see a lot more opportunities there but we just need some time to to you know engineer those correctly but so that's the kind of thing we're looking at and then you know obviously as a

Speaker Change: returns get worse, we'll look at that.

Philip Ng: And then, I was really impressed by your comment earlier that on the commercial front, you could see another $400 million and potentially unlock that, call it the next 18 to 24 months. So my question really is, you have the ability to kind of do the Smurfit's kind of things in terms of being decentralized, empowering the people, having the KPIs aligned. Your biggest competitor in the US on the containerboard side, they're taking a much more rigorous approach on the commercial side. They're expecting significant disruption on the box side of things. Like, how are you gonna manage that process, call it the next 18 to 24 months? It sounds like it might be less choppy, but give us some perspective. That'd be helpful.

Speaker Change: Thank you.

Speaker Change: I was really impressed by your comment earlier that on the commercial front, you could see another $40 million and potentially unlock that, call it the next 18 to 24 months. My question really is, do you have the ability to kind of do...

Speaker Change: the Smurfits kind of things in terms of being decentralized, empowering the people, having the KPIs aligned.

Philip Ng: Your biggest competitor in the US on the containerboard side, they're taking a much more rigorous approach on the commercial side. They're expecting significant disruption on the box side of things. Like, how are you gonna manage that process, call it the next 18 to 24 months? It sounds like it might be less choppy, but give us some perspective. That'd be helpful.

Speaker Change: Your biggest competitor in the U.S. on the container board side, they're taking a much more rigorous approach on the commercial side. They're expecting significant disruption on the box side of things. How are you going to manage that process, call it the next 18 to 24 months? It sounds like it might be less choppy, but give us some perspective. That would be helpful.

Tony Smurfit: I think it's already happening, Philip. We're already empowering with our operations. We've already taken responsibility back to the divisional level, and then ultimately drilling down into the regional level, and then ultimately delivering down into the plant level. Now, plant level can be two or three plants in a particular region that we manage with a central, let's say, sales service or central purchasing or central administration for three plants, but they are in their local market, in their local market setting. So we're already... We've already done that.

Speaker Change: I think it's already happening, Philip. We're already empowering our operations.

Speaker Change: taking responsibility back to the divisional level and then ultimately drilling down into the regional level and then ultimately drilling down into the plant level. Now plant level can be two or three plants.

Speaker Change: in a particular region that we manage.

Speaker Change: with a central, let's say, sales service or central purchasing or central administration for three plants, but they are in their local market selling. So we've already done that.

Tony Smurfit: That doesn't mean that every person in our organization is going to be able to make that adjustment, but I can tell you that there's a palpable sense of enthusiasm for people, you know, to say, "Okay, we're now responsible for our P&L." I mean, for a plant manager, for a regional manager, as long as they know they're getting the price of paper at the market price, there can be no excuse for not having a decent return, I mean, or a plan to get to a decent return. And that's what we've already implemented. And as I said, you know, that's starting. You know, that's the first 100 days of work, 120 days of work. And, you know, our team there is rigorously pushing that through.

Speaker Change: That doesn't mean that every person in our organization...

Speaker Change: is going to be able to make that adjustment, but I can tell you that there's a...

Speaker Change: palpable sense of enthusiasm for people, you know, to say, okay, we're now responsible for our P&L. I mean, for a plant manager, for a regional manager, as long as they know they're getting the price of paper at the market price.

Speaker Change: There can be no excuse for not having a decent return, I mean, or a plan to get to a decent return. And that's what we've already implemented and as I said, that's starting, that's the first step.

Tony Smurfit: And that's what we've already implemented. And as I said, you know, that's starting. You know, that's the first 100 days of work, 120 days of work. And, you know, our team there is rigorously pushing that through.

Speaker Change: 100 days of work, 120 days of work and you know our team there is rigorously pushing that through and as you've seen that we have already taken out some central staff.

Tony Smurfit: And as you've seen, that we have already taken out some central staff, that is speaking to that particular business model that we have. And you know, we've-- that's what we've done all of our lives, and you know, since the time that we started back in 1934, you know, we have had local plant responsibility, and that's what we're gonna continue.

Speaker Change: that is speaking to that particular business model that we have. That's what we've done all of our lives and since the time that we started back in 1934, we have had local plant responsibility and that's what we're going to continue.

Speaker Change: Thank you.

Philip Ng: Any thoughts on the disruption, the next few years as you kind of transition to this, or fairly smooth?

Speaker Change: Thank you.

Speaker Change: Any thoughts on disruption in the next few years as you kind of transition to this or fairly smooth?

Tony Smurfit: Listen, there'll always be some, Philip, but I don't envision—I mean, you know, the interesting thing about the WestRock group of companies is many of the managers were already operating in that kind of environment. If you go to Southern Container, you go to the old Rock-Tenn companies, you know, that were folding carton-based, they were all profit responsible in the past. And so for a lot of them, this is, you know, going back to what they knew and what they wanted and what they liked. So it's not rocket science for many of them. For some of them, it will be different, and we'll have to adjust as we move forward. But I wouldn't say it would be massively disruptive.

Speaker Change #100: There will always be some, Philip, but I don't envisage – I mean the interesting thing about the Westrock group of companies is many of the managers

Speaker Change #101: we're already operating in that kind of environment. If you go to Southern Container, you go to the old Rock 10 companies, you know, that were folding carton bags. They were all profit responsible in the past and and so for a lot of them this is...

Tony Smurfit: And so for a lot of them, this is, you know, going back to what they knew and what they wanted and what they liked. So it's not rocket science for many of them. For some of them, it will be different, and we'll have to adjust as we move forward. But I wouldn't say it would be massively disruptive.

Speaker Change #101: you know, going back to what they knew and what they wanted and what they liked. So it's not rocket science for many of them. For some of them it will be different and we'll have to adjust as we move forward.

Philip Ng: Okay. Appreciate all the great color, guys. Thank you.

Speaker Change #101: But I wouldn't say it would be massively disruptive.

Tony Smurfit: Thanks, Philip. So I think, operator, we have to tie up. So guys, everybody, thank you so much for joining us, this morning and this afternoon, really appreciate your time, and we look forward to reporting again, at the end of the year, and the continued progress of Smurfit Westrock. We're very excited about the future. A lot to do, a lot more to do, a lot done, but an exciting future ahead for us, I'm quite sure. So thanks for joining, and have a good rest of the day.

Speaker Change #102: Okay. Appreciate all the great coverage, guys.

Speaker Change #103: Thanks Philip. So I think operator we have to tie up so

Speaker Change #104: Guys, everybody, thank you so much for joining us this morning and this afternoon. Really appreciate your time and we look forward to reporting again at the end of the year.

Speaker Change #104: and the continued progress of Smurf at Westrock.

Speaker Change #104: We're very excited about the future, a lot to do, a lot more to do, a lot done, but an exciting future ahead for us, I'm quite sure. So thanks for joining and have a good rest of the day.

Operator 3: Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect.

Operator 2: Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect.

Speaker Change #105: Thank you. This concludes today's conference call. Thank you for participating and you may now disconnect.

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Q3 2024 Smurfit WestRock PLC Earnings Call

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