ArdaghGroup Interim Report For the three and six months ended 30 June 2016 Ardagh Packaging Holdings Limited
TABLE OF CONTENTS Page Selected financial information .......................................................................................................................................... 2 Operating and financial review ......................................................................................................................................... 3 UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION Consolidated Interim Statement of Financial Position at 30 June 2016 ........................................................................... 9 Consolidated Interim Income Statement for the three months ended 30 June 2016 ........................................................ 10 Consolidated Interim Income Statement for the six months ended 30 June 2016 ............................................................ 11 Consolidated Interim Statement of Comprehensive Income for the three and six months ended 30 June 2016 ……….. . 12 Consolidated Interim Statement of Changes in Equity for the six months ended 30 June 2016 ...................................... 13 Consolidated Interim Statement of Cash Flows for the six months ended 30 June 2016 ................................................. 14 Notes to the unaudited condensed consolidated interim financial statements ................................................................. 15 Ardagh Finance Holdings S.A. – Interim Statement of Financial Position at 30 June 2016 ............................................. 24 As used herein, “APHL” or the “Company” refer to Ardagh Packaging Holdings Limited, and “we”, “our”, “us”, “Ardagh” and the “Group” refer to APHL and its consolidated subsidiaries, unless the context requires otherwise. Forward-Looking Statements The Group and its representatives may from time to time make written or verbal statements which, to the extent that they are not historical fact, constitute “forward - looking statements”. By their nature, forward -looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results to differ materially from those expressed or implied by these forward- looking statements. Any statements regarding past trends or activities should not be taken as a representation that such activities or trends will continue in the future. The Group undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written or verbal forward-looking statements attributable to the Group or to persons acting on the Group’s behalf are expressly qualified by the cautionary statements referred to above. 1 Ardagh Packaging Holdings Limited
SELECTED FINANCIAL INFORMATION The following discussion should be read in conjunction with, and is qualified in its entirety by, reference to the unaudited condensed consolidated interim financial information and the related notes thereto included in this document. On 30 June 2016 the Group completed the acquisition of certain metal beverage can manufacturing assets from Ball Corporation and Rexam PLC (‘the Metal Beverage business’). With the e xception of the pro forma ratio of net debt to EBITDA and the balance sheet data, the consolidated results presented below exclude the results of the Metal Beverage business. Pro forma EBITDA and net debt include the Metal Beverage business last twelve months EBITDA and deferred consideration respectively. The following table sets forth summary consolidated financial information for the Group. Unaudited - Reported (in € millions, except ratios and percentages) Year Three months ended Six months ended ended 30 June 30 June 30 June 30 June 30 June 2016 2015 2016 2015 2016 Income statement data Revenue 1,281 1,303 2,499 2,510 5,188 EBITDA (1) 256 249 473 453 954 Depreciation and amortisation (97) (98) (195) (188) (410) Exceptional items (2) (93) (18) (98) (37) (155) Finance expense (3) (83) (88) (175) (177) (351) (Loss)/profit before tax (17) 45 5 51 38 Income tax charge (10) (19) (27) (35) (35) (Loss)/profit for the period (27) 26 (22) 16 3 Cash flow data Operating cash flow (4) 184 144 213 152 761 Free cash flow (5) 59 36 16 (35) 369 Other data EBITDA margin (1) 20.0% 19.1% 18.9% 18.0% 18.4% Debt service costs (6) 79 82 162 162 324 Capital expenditure (7) 65 64 129 163 270 Ratio of EBITDA to debt service costs (1) (6) 3.2x 3.0x 2.9x 2.8x 2.9x Pro forma ratio of net debt to EBITDA (1) (10) (11) 5.7x Unaudited – Reported (in € millions) 30 June 31 March 31 December 30 June 2016 2016 2015 2015 Balance sheet data Cash (8) 536 485 550 189 Total assets 10,001 6,225 6,335 6,316 Total borrowings (9) 8,060 5,273 5,440 5,382 Total equity (1,482) (1,350) (1,360) (1,358) Net debt (10) 7,365 4,763 4,842 5,063 All footnotes are on page 7 of this document. 2 Ardagh Packaging Holdings Limited
OPERATING AND FINANCIAL REVIEW Operating Results The consolidated results for the three and six months ended 30 June 2016 and 2015 and for the year ended June 2016 are presented below. With the exception of the pro forma ratio of net debt to EBITDA the consolidated results presented below exclude the results of the Metal Beverage business. Unaudited (in € millions, except ratios and where indicated) Three months ended Six months ended Year ended 30 June 30 June 30 June 30 June 30 June 2016 2015 2016 2015 2016 Revenue Glass Packaging North America 429 453 851 851 1,707 Glass Packaging Europe 371 361 692 698 1,446 Metal Packaging 481 489 956 961 2,035 Group 1,281 1,303 2,499 2,510 5,188 EBITDA (1) Glass Packaging North America 96 94 181 171 356 Glass Packaging Europe 79 75 142 138 288 Metal Packaging 81 80 150 144 310 Group 256 249 473 453 954 EBITDA Margin (1) Glass Packaging North America 22.4% 20.8% 21.3% 20.1% 20.9% Glass Packaging Europe 21.3% 20.8% 20.5% 19.8% 19.9% Metal Packaging 16.8% 16.4% 15.7% 15.0% 15.2% Group 20.0% 19.1% 18.9% 18.0% 18.4% Pro forma ratio of net debt to EBITDA (1) (10) (11) 5.7x All footnotes are on page 7 of this document. 3 Ardagh Packaging Holdings Limited
Financial Review Bridge of 2015 Revenue to 2016 Revenue Three months ended 30 June (unaudited) Glass Packaging Glass Glass North Packaging Packaging Metal America Europe Total Packaging Group €m € m €m €m €m Reported revenue 2015 453 361 814 489 1,303 Organic (5) 18 13 (1) 12 Reclassification (12) (7) - (7) - (7) FX translation (12) (8) (20) (7) (27) Reported revenue 2016 429 371 800 481 1,281 Bridge of 2015 EBITDA to 2016 EBITDA Three months ended 30 June (unaudited) Glass Packaging Glass Glass North Packaging Packaging Metal America Europe Total Packaging Group €m €m €m €m €m Reported EBITDA 2015 94 75 169 80 249 Organic 4 6 10 2 12 FX translation (2) (2) (4) (1) (5) Reported EBITDA 2016 96 79 175 81 256 Reported EBITDA 2016 margin 22.4% 21.3% 21.9% 16.8% 20.0% Reported EBITDA 2015 margin 20.8% 20.8% 20.8% 16.4% 19.1% All footnotes are on page 7 of this document. 4 Ardagh Packaging Holdings Limited
Bridge of 2015 Revenue to 2016 Revenue Six months ended 30 June (unaudited) Glass Packaging Glass Glass North Packaging Packaging Metal America Europe Total Packaging Group €m € m €m €m €m Reported revenue 2015 851 698 1,549 961 2,510 Organic (4) 4 - 2 2 Reclassification (12) (7) - (7) - (7) FX translation 11 (10) 1 (7) (6) Reported revenue 2016 851 692 1,543 956 2,499 Bridge of 2015 EBITDA to 2016 EBITDA Six months ended 30 June (unaudited) Glass Packaging Glass Glass North Packaging Packaging Metal America Europe Total Packaging Group €m €m €m €m €m Reported EBITDA 2015 171 138 309 144 453 Organic 8 6 14 7 21 FX translation 2 (2) - (1) (1) Reported EBITDA 2016 181 142 323 150 473 Reported EBITDA 2016 margin 21.3% 20.5% 20.9% 15.7% 18.9% Reported EBITDA 2015 margin 20.1% 19.8% 19.9% 15.0% 18.0% Operating and Free Cash Flow Three months ended Six months ended Year ended (unaudited) (unaudited) (unaudited) 30 June 30 June 30 June 30 June 30 June 2016 2015 2016 2015 2016 €m €m €m €m €m Reported EBITDA 256 249 473 453 954 Movement in working capital (3) (37) (125) (121) 86 Capital expenditure (7) (65) (64) (129) (163) (270) Exceptional restructuring paid (4) (4) (6) (17) (9) Operating Cash Flow 184 144 213 152 761 Interest paid * (99) (93) (165) (169) (319) Income tax (26) (15) (32) (18) (73) Free Cash Flow 59 36 16 (35) 369 *Interest paid in the three and six month s ended 30 June 2016 excludes €9 million of interest, paid in lieu of notice, relating to the 9.250% and 9.125% Senior Notes. The notes were repaid in full in May 2016 in accordance with their terms. The non-GAAP information in the above table has been extracted from the Consolidated Interim Statement of Cash Flows on page 14 and related notes. All footnotes are on page 7 of this document. 5 Ardagh Packaging Holdings Limited
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