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4Q24 Earnings Presentation March 6, 2025
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Disclaimers CAUTION ABOUT FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements that are not historical facts are forward-looking statements. Our forward- looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to estimates, projections, forecast s or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this presentation include, for example, statements about our expectations around the future performance of the business, including our forward-looking guidance. The forward-looking statements contained in this presentation are based on our current expectations and beliefs concerning futur e developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (i) our inability to secure a sufficient supply of paper to meet our production requirements; (ii) the impact of rising prices on production inputs, including labor, energy, and freight on our results of operations; (iii) the impact of the price of kraft paper on our results of operations; (iv) our reliance on third party suppliers; (v) geopolitical conflicts and other social and political unrest or potential tariffs on the import of goods (vi) the high degree of competition and continued consolidation in the markets in which we operate; (vii) consumer sensitivity to increases in the prices of our products, changes in consumer preferences with respect to paper products generally or customer inventory rebalancing; (viii) economic, competitive and market conditions generally, including macroeconomic uncertainty, the impact of inflation, and variability in energy, freight, labor and other input costs; (ix) the loss of certain customers; (x) our failure to develop new products that meet our sales or margin expectations or the failure of those products to achieve market acceptance; (xi) our ability to achieve our environmental, social and governance (“ESG”) goals and maintain the sustainable nature of our product portfolio and fulfill our obligations under evolving ESG standards; (xii) our ability to fulfill our obligations under new disclosure regimes relating to ESG matters, such as the European Sustainability Disclosure Standards recently adopted by the European Union (“EU”) under the EU’s Corporate Sustainability Reporting Directive (“CSRD”); (xiii) our future operating results fluctuating, failing to match performance or to meet expectations; (xiv) our ability to fulfill our public company obligations; and (xv) other risks and uncertainties indicated from time to time in filings made with the SEC. Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. We are not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements. USE OF NON-GAAP FINANCIAL MEASURES This investor presentation includes non-GAAP financial measures including EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, and supplemental non-GAAP constant currency change measures. Management believes presentation of these non- GAAP measures is useful because they allow management to more effectively evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to financing methods or capital structure. Management does not consider these non-GAAP measures in isolation or as an alternative to similar financial measures determined in accordance with GAAP. The computations of non-GAAP constant currency change measures may not be comparable to other similarly titled measures of other companies. These non-GAAP financial measures should not be considered as alternatives to, or more meaningful than, measures of financial performance as determined in accordance with GAAP or as indicators of operating performance. We are changing our presentation of supplemental non-GAAP constant currency metrics, beginning with our 2024 results, to no longer utilize an exchange rate of 1 Euro to 1.15 USD when calculating and discussing these metrics. In calculating the Constant Currency (Non-GAAP) % Change, the fiscal year and fourth quarter 2024 results are translated at an exchange rate of 1 E uro to 1.0818 USD and 1 Euro to 1.0766 USD, respectively, which represents the average exchange rates for the comparable periods in 2023, when comparing current results to the prior year. We believe that our Constant Currency (Non-GAAP) % Change presentation provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, we include certain other unaudited non-GAAP data and Constant Currency (Non-GAAP) % Change data for the quarter and year ended December 31, 2024 and 2023. This data is based on our historical financial statements. This press release also includes forecasts for certain non-GAAP metrics. Our forecast of 2025 net revenue is calculated by translating forecasted 2025 net revenue at an exchange rate of 1 Euro to 1.0822 USD, which represents the average exchange rate for 2024. A reconciliation of our forecast for AEBITDA for 2025 to a forecast for GAAP net income cannot be provided without unreasonable effort because we are unable to forecast with reasonable certainty several of the items necessary to calculate such comparable GAAP measure, including asset impairments, integration related expenses, reorganizations and discontinued operations related expenses, legal settlement costs, as well as other unusual or non-recurring gains or losses. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with GAAP. We believe the inherent uncertainties in reconciling such non-GAAP measures for projected periods to the most comparable GAAP measures would make the forecasted comparable GAAP measures difficult to predict with reasonable certainty or reliability. 2 The results of operations data contained in this presentation are based on our preliminary, unaudited results of operations for the quarter and year ended December 31, 2024. Such preliminary data should not be viewed as a comprehensive statement of our financial results for the quarter ended December 31, 2024
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3 Ranpak Fourth Quarter Performance Commentary Higher volumes drove 17% increase in sales on constant currency basis vs. prior year (increased 16% on an actual basis) Large e-Commerce accounts driving growth while industrial activity weighs on Cushioning • North America revenue increased 36% vs prior year due to strong holiday season at e-Commerce accounts as well as increased contribution from Distribution channel • EMEA/APAC revenue increased 1% driven by Automation, offset by lack of strong holiday season and industrial headwinds • Gross profit increased 21% driven by higher volumes and lower depreciation, implying a gross margin of 39% • Refinanced credit facility into new 7 year Term Loan B due December 2031 • Improved cash to finish year at $76.1mm cash on hand compared to $62mm as of Q423 • Cash generation and deleveraging remain a top priority • Reduced full year capex by 40% • Finished year at 4.0x net debt / LTM Adj EBITDA Performance indicators: • Net revenue increased 17% on a constant currency basis driven by higher volumes (+12%) and Automation (+5%). Net revenue increased 16% on an actual basis • Adjusted EBITDA increased 8% on a constant currency basis driven by improved volumes and gross profit Strong growth in North American volume and Automation revenue drove top-line
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4 Revenue North America • Enterprise e-Commerce accounts delivering strong top-line results • 39% volume growth as plastic to paper conversion and a strong holiday season resulted in record North America sales for the quarter Europe / APAC • Growth in Automation offset lower PPS activity levels due to lack of strong holiday season and uncertainty post-election Key Takeaways • Overall volume growth of 12% drove top-line performance • Automation delivered its largest revenue quarter ever providing strong momentum into 2025 • Plastic to paper conversion in North America provides momentum into 2025 Note: Figures based on unaudited internal company financial statements. 1. Constant Currency (Non-GAAP) % Change is a non-GAAP measure. In calculating the Constant Currency (Non-GAAP) % Change, fourth quarter results are translated at the average exchange rate for the prior year period, which in this case was 1 Euro to 1.0766 USD System Installed Base (‘000s) Net Revenue Constant Currency (Non- GAAP) % Change(1) 17% (1.1)% 2.4% (0.4)% 0.8% $ in millions 36.3% 1.1%
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5 Adj. EBITDA up 7.7% vs 4Q23 • Gross profit up 22% on constant currency basis driven by: ◦ e-Commerce volume growth in North America ◦ Lower depreciation due to acquisition asset life cycle ending ◦ Input cost slight headwind vs prior year • Adj. EBITDA increase driven by volume growth and controlled G&A Key Takeaways • Volume growth, profitability, and cash generation remain key priorities ◦ Volume: 6 quarters in a row ◦ Profitability: Continue to grow Adj EBITDA vs prior year ◦ Cash: Improved cash vs 3Q24 by $6.6 million to $76.1 million Profitability Note: Figures based on unaudited internal company financial statements. 1. Adjusted EBITDA is a non-GAAP measure. Refer to the Appendix to this presentation for a reconciliation of Adjusted EBITDA to net income, the most directly comparable U.S. GAAP measure. Adjusted EBITDA is earnings before interest expense, income taxes, depreciation and amortization plus other non-core and non-cash adjustments including recruiting fees and non-recurring professional fees. Adjusted EBITDA(1) 7.7% $ in millions
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Adjusted EBITDA(1) Constant Currency (Non-GAAP) % Change(1) 14.3% $ in millions Full Year Net Revenue $ in millions Constant Currency (Non-GAAP) % Change(1) 9.7% Note: Figures based on unaudited internal company financial statements. 1. Constant Currency (Non-GAAP) % Change and Adjusted EBITDA are non-GAAP measures. In calculating the Constant Currency (Non-GAAP) % Change, the current year results are translated at the average exchange rate for the prior year period, which in this case was 1 Euro to 1.0818 USD. Refer to the Appendix to this presentation for reconciliation of Adjusted EBITDA to net income, the most directly comparable U.S. GAAP measures. Adjusted EBITDA is earnings before interest expense, income taxes, depreciation and amortization plus other non-core and non-cash adjustments. 6
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7 2025 Guidance Top line expectations include: • Normalizing operating environment in e-Commerce • Continued lackluster industrial activity • Automation growth of 50%+ Expected growth in Adj EBITDA reflects steady gross margin profile and top-line increase • Higher volumes drive improved operating leverage 2025 Guidance Constant Currency Adjusted Net Revenue Growth: +5% - 11% $387 - $409 million at $1.0822 / EUR estimated rate Constant Currency Adjusted EBITDA Growth: +5% - 16% $88 - $97 million at $1.0822 / EUR estimated rate This guidance reflects the expectation of a reported non-cash net revenue and AEBITDA reduction of $3 million - $5 million in 2025 related to the recognition of Warrant expense against Amazon revenue.
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8 Liquidity and Capitalization • Ranpak completed 4Q24 with a solid liquidity position - cash balance of $76.1 million and no drawings on its Revolving Credit Facility • Reported Net Leverage Ratio of 4.0x as of 12/31/24 utilizing $83.8 million Adj EBITDA • As of 12/31/2024 the Company had a new First Lien Term Loan and Revolving Credit facility outstanding: • $410.0 million U.S. dollar denominated - $4.1 million principal payments required annually until 2031 maturity • Interest Rate: SOFR + 450. Floating as of June 2024
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9 Unaudited GAAP Income Statement Data $ in millions except per share values Year Ended December 31, 2024 2023 2022 Net product revenue $ 315.5 $ 284.8 $ 276.4 Machine lease revenue 53.4 51.5 50.1 Net revenue 368.9 336.3 326.5 Cost of product sales 202.9 181.3 192.6 Cost of leased machines 26.2 31.7 34.3 Gross profit 139.8 123.3 99.6 Selling, general and administrative expenses 111.9 91.8 105.5 Depreciation and amortization expense 35.1 33.8 32.1 Other operating expense, net 5.6 5.2 4.5 Loss from operations (12.8) (7.5) (42.5) Interest expense 28.6 24.3 20.7 Foreign currency gain (1.6) (0.3) (2.2) Loss on extinguishment of debt 4.8 — — Other non-operating income, net (20.9) (0.2) (4.3) Loss before income tax benefit (23.7) (31.3) (56.7) Income tax benefit (5.0) (4.2) (15.3) Net loss $ (18.7) $ (27.1) $ (41.4) Basic and diluted loss per share $ (0.23) $ (0.33) $ (0.51) Weighted average number of shares outstanding – Class A and C – basic and diluted 83,059,187 82,374,605 81,877,334 Other comprehensive income (loss), before tax Foreign currency translation adjustments $ (4.2) $ 2.0 $ (7.2) Interest rate swap adjustments (3.4) (7.9) 14.1 Total other comprehensive income (loss), before tax (7.6) (5.9) 6.9 Provision (benefit) for income taxes related to other comprehensive income (loss) 0.7 (2.8) 4.3 Total other comprehensive income (loss), net of tax (8.3) (3.1) 2.6 Comprehensive loss, net of tax $ (27.0) $ (30.2) $ (38.8)
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10 1. Reconciliations of EBITDA and AEBITDA for each period presented are to net loss, the nearest U.S. GAAP equivalent. 2. Adjustments are related to non-cash unusual or infrequent costs such as: effects of non-cash foreign currency remeasurement or adjustment; impairment of returned machines; costs associated with the evaluation of acquisitions; costs associated with executive severance; costs associated with restructuring actions such as plant rationalization or realignment, reorganization, and reductions in force; costs associated with the implementation of the global ERP system; and other items deemed by management to be unusual, infrequent, or non-recurring. 3. Represents amortization of capitalized costs primarily related to the implementation of the global ERP system, which are included in SG&A. 4. Third-party professional services and consulting fees related to post-implementation system remediation. 5. In the fourth quarter of 2024 and 2023, Other adjustments are comprised of individually immaterial items deemed by management to be unusual, infrequent, or non-recurring. 6. The Constant Currency (Non-GAAP) % Change excludes the impact of foreign currency translation effects when comparing current results to the prior year. In calculating the Constant Currency (Non-GAAP) % Change, the current year results are translated at the average exchange rate for the prior year period, which in this case was 1 Euro to 1.0766 USD. Non-GAAP Measures Constant Currency (Non-GAAP) % Change(6) Three Months Ended December 31, 2024 2023 $ Change % Change Net loss $ (8.0) $ (9.3) $ 1.3 (14.0) (14.0) Depreciation and amortization expense – COS 5.7 10.6 (4.9) (46.2) Depreciation and amortization expense – D&A 10.2 9.6 0.6 6.3 Interest expense 7.8 5.9 1.9 32.2 Income tax benefit (2.8) (1.3) (1.5) 115.4 EBITDA(1) 12.9 15.5 (2.6) (16.8) (18.1) Adjustments(2) Foreign currency gain (0.5) (0.5) — — Non-cash impairment losses 0.3 0.6 (0.3) (50.0) M&A, restructuring, severance 2.8 2.8 — — Stock-based compensation expense 1.7 1.6 0.1 6.3 Amortization of cloud-based software implementation costs(3) 1.0 0.8 0.2 25.0 Cloud-based software implementation costs (4) 0.3 1.2 (0.9) (75.0) SOX remediation costs 1.2 0.8 0.4 50.0 Loss on extinguishment of debt 4.8 — 4.8 NM Other adjustments (5) 0.8 0.7 0.1 14.3 AEBITDA(1) $ 25.3 $ 23.5 $ 1.8 7.7 7.7 Reconciliation of Non-GAAP metrics