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ORRA INVESTOR RESULTS RELEASE Orora announces results for the half year ended 31 December 2020 FINANCIAL SUMMARY • Underlying net profit after tax ( NPAT ) before significant items was $ 91.1M , up 18.9 % on the prior corresponding period ( pcp ) . Underlying earnings per share ( EPS ) was 9.6 cents per share ( cps ) , up 20.0 % on the pcp . • • • • • Statutory NPAT was $ 97.4M and EPS was 10.2 cps . Sales revenue was $ 1,814.1M , down 1.2 % on the pcp . On a constant currency basis , revenue was up 3.1 % on the pcp . Underlying Earnings Before Interest and Tax ( EBIT ) was $ 140.0M , up 5.2 % on the pcp . Constant currency underlying EBIT was up 7.5 % on the pcp . Significant items ( " SI " ) income after tax of $ 6.3M comprised of an incremental net gain from the disposal of the Australasian Fibre business ( " Fibre " ) sale ( $ 12.8M after tax ) arising from the post 30 June 2020 completion accounts process , partially offset by additional decommissioning costs at Petrie ( $ 6.5M after tax ) . Operating cash flow was $ 144.8M , $ 17.6M above the pcp . Cash conversion was ~ 79 % , up from ~ 72 % in the pcp . The key movements were stronger period earnings , the phasing of base capital expenditure which is weighted to 2H21 and the spend on the G2 rebuild in the pcp ( ~ $ 25M ) which is not repeated in FY21 . The outlook for cash conversion for the full year is in excess of 70.0 % . Interim ordinary dividend is 6.5 cps , in - line with the pcp . The interim dividend is unfranked and sourced from the conduit foreign income account . The interim dividend represents a pay - out ratio of ~ 68.0 % . The ex - dividend date is 3 March 2021 , the record date is 4 March 2021 and the payment date is 1 April 2021 . Net bank debt at 31 December 2020 was ~ $ 277M , down from ~ $ 292M at 30 June 2020 , primarily reflecting stronger period earnings , reduced first half capital expenditure , the receipt of a substantial tax refund and the settlement of the working capital completion account adjustment process related to the sale of Fibre , largely offset by the on - market share buyback ( " buyback " ) . Leverage was 0.9 times , in - line with June 2020 and down from 2.3 times at December 2019 . ROAFE was 21.4 % , up from 19.2 % at pcp , reflecting higher earnings across all business units . DISCONTINUED OPERATIONS • • On 30 April 2020 , Orora completed the sale of Fibre to a wholly owned subsidiary of Nippon Paper Industries Co. , Limited for an enterprise value of $ 1,720.0M . Net proceeds received in FY20 were ~ $ 1,550.0M . In the first half of FY21 , Orora finalised the working capital completion account adjustment process which resulted in further cash inflows of ~ $ 19.7M . There are further amounts to be received in due course related to the deferred settlement of two properties . EBIT NPAT EPS ( cents ) ³ FINANCIAL SUMMARY - ( refer to footnotes ) ( A $ mil ) 1H211 1H20 Change % Change % Constant Currency Sales revenue EBITDA² 1,814.1 1,835.2 ( 1.2 % ) 3.1 % 199.4 194.8 2.4 % 5.1 % 140.0 133.1 5.2 % 7.5 % 91.1 76.6 18.9 % 9.6 8.0 20.0 % Return on sales4 7.7 % 7.3 % Operating cash flow5 144.8 127.2 13.8 % Cash conversion 6 79 % 72 % ROAFE7 21.4 % 19.2 % Dividend per share ( cents ) 6.5 6.5 Net bank debt8 277 996 Leverage⁹ Gearing 0.9x 2.3x 23 % 39 % The Fibre business delivered EBIT of $ 33.7M in 1H20 . CAPITAL MANAGEMENT UPDATE • In August 2020 , Orora announced an on - market buyback 10 of up to 10 percent of issued share capital , representing ~ 96.5 million shares . As at 31 December 2020 , the buyback is ~ 44 % complete , with ~ 42.7 million shares bought back at an average price of $ 2.59 , for total consideration of $ 110.7M . The buyback is forecast to be complete by 30 June 2021. The buyback is expected to cost ~ $ 260M¹¹ . The buyback reflects the strength of Orora's balance sheet , current liquidity position and the strong cash generation capability of the Group's businesses ( targeting a Group cash conversion of greater than 70 % in FY21 ) . Shareholders need to ensure their account details are up to date by 4 March 2021 ( record date ) in order to receive their dividend payment on 1 April 2021. The Dividend Reinvestment Plan will be suspended for the interim dividend . 1 This report includes certain non - IFRS financial information ( operating cash flow , average funds employed , EBIT and EBITDA ) . This information is considered by Management in assessing the operating performance of the business and has been included for the benefit of investors . References to earnings throughout this report are references to earnings before interest and tax and significant items . 2Earnings before interest , tax , depreciation , and amortisation 3 Calculated as NPAT / weighted average ordinary shares ( net of Treasury Shares ) * Calculated as EBIT / Sales 5 Excludes cash significant items that are considered to be outside the ordinary course of operations and discontinuing operations 6 Calculated as underlying operating cash flow / underlying cash EBITDA 7 Calculated as annualised 1H21 EBIT / trailing 12 month average funds employed . 8 Net bank debt excludes the impact of AASB16 Lease Accounting 9 Calculated as Net Debt ( excluding AASB16 ) / trailing 12 month underlying EBITDA including discontinued operations ( excluding AASB16 ) 10 An Appendix 3C was released on 17 August 2020. The buyback commenced on 14 September 2020. Orora reserves the right to vary , suspend or terminate the share buyback at any time and to buy back less than the 96.5 million shares . Based on actual cost to date and using Orora's closing share price on 17 February 2021 of $ 2.73 to complete the remaining outstanding amount . Orora Limited www.ororagroup.com 1/9