Press release
Paris, 14 February 2024

2023 annual results:
Verallia records an excellent financial performance amid
weaker market conditions and aims to generate an EBITDA ofaround €1bn in 2024
HIGHLIGHTS•+16.5% increase in revenue to €3,904 million in 2023 (+21.4% at constant scopeand exchange rates) compared with 2022•

Growth in adjusted EBITDA to €1,108 million in 2023, 28.0% higher than in 2022 (€866
million)•Improvement in adjusted EBITDA margin to 28.4% in 2023 compared with 25.8% in
2022 (+256 bps), reaching the margin target set out in the 2022-24 plan (28-30%)
a year in advance•Sharply higher net profit 1 at €475 million compared with €356 million in 2022(+33.7%) and earnings per share of €4.02 (+37.7% versus 2022)•

Robust cash generation, with free cash flow reaching €365 million after an alreadystrong 2022 (€364 million)•

Decrease in net debt ratio to 1.2x 2023 adjusted EBITDA compared with 1.6x at 31
December 2022•

-5.6% reduction in Scope 1 & 2 CO2 emissions 2 compared with 2022 (i.e. -15.8%
versus 2019) despite a lower external cullet rate2 of 54.1% in 2023 (-1.6 point versus
2022)

•

Proposed dividend per share of €2.15 3

1 Net profit for 2023 includes an amortisation expense for customer relationships, recognised upon the acquisition of Saint-

Gobain's packaging business in 2015 and applicable until 2027, of €45 million or €0.38 per share (net of taxes). If this expense
had not been taken into account, net profit would be €520 million or €4.40 per share. This expense was €44 million or €0.38
per share in 2022.
2 Cullet = recycled glass; the external cullet rate and amount of CO emissions are expressed at constant scope and exclude2
the contribution from Allied Glass / Verallia UK so as to make them comparable with the starting point of 2019.
3 Subject to approval at the Annual General Shareholders’ Meeting which will take place on 26 April 2024.

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“Verallia delivered an excellent performance in 2023 amid weaker market conditions,especially in the second half. The Group’s financial performance was remarkable, witha very strong surge in EBITDA and robust cash generation. This performance was madepossible by the exceptional commitment of our teams and the continued roll out of the
Performance Action Plan (PAP), despite the decision to adjust our production capacity
in order to manage our inventories.
Verallia enters 2024 in good conditions and should benefit from a gradual rebound inactivity. Meanwhile we maintain a strict cost discipline. We are confident in our ability
to generate an adjusted EBITDA of around €1bn in 2024.
We also continue to push forward with our decarbonation roadmap by introducing
new, lighter products, tightly managing our cullet supply chain and continuing work to
start up our first electric (Cognac) and hybrid (Zaragoza) furnaces in 2024”, noted
Patrice Lucas, Chief Executive Officer of Verallia.
REVENUE
Revenue breakdown by regionin millions of euros

2023

2022

% change

Of which organic
growth 4

Southern and Western Europe

2,527.2

2,236.4+13.0%+14.2%

Northern and Eastern Europe

979.8

695.3

+40.9%+18.0%

Latin America

396.8

419.8

-5.5%

+65.8%(+5.6% excluding
Argentina)

Group Total

3,903.8

3,351.5+16.5%+21.4%(+14.3% excluding
Argentina)

2023 revenue totalled €3,904 million, reflecting a 16.5% increase on the previous year
on a reported basis.
Foreign exchange impact was negative by -11.0% in 2023 (-€369 million). This was mainly
due to the Argentinian peso’s depreciation of almost ~80% in 2023, including adevaluation of more than 50% in a single day in December. The impact of exchange
rates in the fourth quarter was negative by -€189 million.
At constant scope and exchange rates, revenue increased by +21.4% over the full year
and by +14.3% excluding Argentina. Revenue in the fourth quarter was stable (-0.6%
versus Q4 2022), with strong organic growth at +18.1% fully offset by the exchange rate
impact (Argentinian peso). Since the Summer of 2023 demand has fallen significantly inEurope due to both a decline in end demand and large-scale inventory clearance
across the whole downstream value chain.
In terms of end markets beer was the segment most impacted by weaker demand in
2023 as soon as the first half of the year. Volumes in the still wine segment also declined
while activity in the spirits segment, having remained solid in the first half of the year,
deteriorated in the second half after several half-year periods of vigorous growth. In
4 Revenue growth at constant scope and exchange rates. Revenue growth at constant exchange rates is calculated byapplying the same exchange rates to the financial indicators presented for the two periods being compared (by applying
the exchange rates of the previous period to the financial indicators for the current period). Growth in revenue at constantscope and exchange rates excluding Argentina was +14.3% in 2023 compared with 2022.

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contrast, sales of food jars and bottles for non-alcoholic beverages and sparkling wines
were more resilient, with Champagne and Prosecco volumes holding up well.
The increase in average selling prices compared with 2022 largely fuelled top-line
growth albeit with a waning effect over the course of the year reflecting both agradually rising comparison base (due to a series of price hikes in 2022) and a contained
but steady drop in selling prices in 2023 in Europe. The pricing policy and mix in Latin
America remained dynamic throughout the year, especially in Argentina where local
inflation remained particularly high. Lastly, product mix was positive throughout the year
thanks to the contribution from Italy.
By region, revenue for 2023 breaks down as follows:• Southern and Western Europe saw revenue grow by +13.0% on a reported basis
and by +14.2% at constant scope and exchange rates. Volumes fell sharply over
the year despite more resilient activity in Iberia and Italy. Volumes of beer and, toa lesser extent, still wines recorded the steepest falls but activity in the spirits
segment was also affected by declining Cognac volumes in the second half of theyear, which the more resilient sparkling wines segment failed to offset.
• In Northern and Eastern Europe, revenue grew by +40.9% on a reported basis andby +18.0% at constant scope and exchange rates. The region benefited from avery positive scope effect (+29.2%) thanks to the full-year consolidation of Allied
Glass, which was acquired in November 2022 and renamed Verallia UK on 1
January 2023. Foreign exchange fluctuations had a negative impact of -6.3%,
mainly due to the devaluation of the Russian rouble over the period. Sales volumes
fell sharply, mainly because of declining beer and still wine volumes in Germany,
which contrasted with resilient volumes of food jars and a solid performance insparkling wines (Sekt). Activity was stronger in Russia and Ukraine, where the swift
restart of the second furnace at the Zorya site fuelled a marked recovery in activity.
As the situation in the country remains uncertain, Verallia’s priority is to keep its
teams safe and serve its local customers.
• In Latin America, revenue was down -5.5% on a reported basis, in contrast withstrong organic growth of +65.8%. However, these figures were deeply impacted by
activity in Argentina which experienced vigorous organic growth, driven byrepeated price increases in a context of high inflation, but a deeply negative
foreign exchange effect linked to the unprecedented devaluation of the peso,
which lost almost 80% of its value against the euro in 2023. Excluding Argentina,
Latin America recorded organic growth of +5.6% as higher Brazilian volumes
following the opening in December 2022 of the second furnace at the Jacutingasite was partly offset by weaker activity in Chile, which had a challenging start tothe year.

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ADJUSTED EBITDA
Breakdown of adjusted EBITDA by region
2023

2022

Adjusted EBITDA 5

725.2

554.5

Adjusted EBITDA margin

28.7%

24.8%

Adjusted EBITDA7

244.2

146.5

Adjusted EBITDA margin

24.9%

21.1%

Adjusted EBITDA7

138.5

164.6

Adjusted EBITDA margin

34.9%

39.2%

Adjusted EBITDA7

1,108.0

865.5

Adjusted EBITDA margin

28.4%

25.8%

in millions of euros
Southern and Western Europe

Northern and Eastern Europe

Latin America

Group Total

Adjusted EBITDA increased by +28.0% in 2023 (and by +32.5% at constant scope andexchange rates) to exceed the €1 billion mark for the first time in the Group’s history
and reach €1,108 million. The unfavourable effect of exchange rates, mainly
attributable to the very steep depreciation of the Argentinian peso, reached -€89
million in 2023, while the positive scope effect was mainly linked to the consolidation
over 12 months of Allied Glass, acquired in November 2022.
In 2023, Verallia generated a largely positive inflation spread 6 at Group level and in alldivisions, as the cumulative effect of price rises in 2022 and early 2023, together with apositive mix effect, more than offset another sharp rise in production costs. However,this effect gradually waned over the course of the year.
Sharply lower cash production costs (PAP) once again contributed significantly to theimprovement in adjusted EBITDA, by €53 million or 2.1% of cash production costs,
beating the Group’s 2% target.
Adjusted EBITDA margin increased to 28.4% from 25.8% in 2022.

Adjusted EBITDA is calculated based on operating profit adjusted for depreciation, amortisation and impairment,
restructuring costs, acquisition and M&A costs, hyperinflationary effects, management share ownership plan costs, disposalrelated effects and subsidiary contingencies, site closure costs, and other items.
6 The spread corresponds to the difference between (i) the increase in selling prices and the mix applied by the Group after
passing any increase in production costs onto these selling prices and (ii) the increase in production costs. The spread is
positive when the increase in selling prices applied by the Group is greater than the increase in its production costs. The
increase in production costs is recorded by the Group at constant production volumes, before industrial variance and taking
into consideration the impact of the Performance Action Plan (PAP).
5

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By region, adjusted EBITDA for 2023 breaks down as follows:• Southern and Western Europe reported adjusted EBITDA of €725 million (versus €555
million in 2022) and a margin of 28.7% compared with 24.8% a year earlier. The
positive inflation spread, especially in the first half of the year, fuelled the increasein EBITDA despite the sharp rise in costs; the positive impact of the PAP and thefavourable mix (Italy) also contributed.
• In Northern and Eastern Europe, adjusted EBITDA totalled €244 million (versus €147
million in 2022), raising its margin to 24.9% compared with 21.1%. Growth in adjusted
EBITDA was primarily organic (+€60 million), driven by a positive inflation spread andthe positive impact of the PAP. The full-year consolidation of Allied Glass also
contributed to this increase whereas foreign exchange rate effect was negative (€11 million) due to the rouble’s devaluation. The rapid restart of the second furnace
at our Zorya site, made possible by the dedication and professionalism of our local
teams, drove a sharp increase in EBITDA in Ukraine.
• In Latin America, adjusted EBITDA came to €139 million (versus €165 million in 2022),
reaching a margin of 34.9% compared with 39.2% a year earlier. This decrease wasentirely due to the devaluation of the Argentinian peso, which generated astrongly negative translation effect of local earnings into euros. Excluding
Argentina, adjusted EBITDA improved as strong activity in Brazil, the positive inflation
spread and the effect of the PAP more than offset the drop in volumes in Chile,which was particularly strong at the start of the year.
The increase in net profit to €475 million (i.e. €4.02 per share) was mainly due to theimprovement in adjusted EBITDA, which more than offset higher financial expenses andincome tax. Net profit for 2023 includes, as it does every year, an amortisation expense
for customer relationships, recognised upon the acquisition of Saint-Gobain's
packaging business in 2015 and scheduled to end in 2027, of €45 million or €0.38 pershare (net of taxes). Net profit would be €520 million or €4.40 per share excluding thisexpense. This expense was €44 million or €0.38 per share in 2022.
Book capital expenditure amounted to €418 million (i.e. 10.7% of total revenue),compared with €367 million in 2022. This capital expenditure comprised €234 million ofrecurring capital expenditure (versus €270 million in 2022) and €184 million of strategic
capital expenditure (versus €97 million in 2022) mainly related to the construction of
new furnaces at Jacutinga in Brazil and Pescia in Italy and the electric furnace at
Cognac in France, as well as investments linked to reductions in CO2 emissions.
Operating cash flow 7 rose to €582 million compared with €538 million in 2022, thanks tostrong growth in adjusted EBITDA and despite higher outflows for capital expenditureand higher working capital requirements due to the Group’s inventory rebuild in the firsthalf of the year.
Free cash flow 8 amounted to €365 million, in line with an already very robust 2022 figure(€364 million).

7 Operating cash flow corresponds to adjusted EBITDA less capex, plus changes in operating working capital requirements

including changes in payables to fixed asset suppliers.

8 Defined as operating cash flow - other operating impacts - interest paid & other financing costs - taxes paid.

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A VERY STRONG BALANCE SHEET
Verallia improved its net debt ratio over the course of 2023 thanks to sharply higher
EBITDA combined with lower net debt.
Verallia’s net debt stood at €1,365 million at end-December 2023, down by more than
€40 million despite €209 million returned to shareholders (€167 million in dividends and€42 million in share buybacks) and the acquisition of five cullet processing plants fromthe Santaolalla Group in Iberia. The ratio thus stood at 1.2x 2023 adjusted EBITDA
compared with 1.6x at end-December 2022.
Verallia closed a €1.1 billion syndicated credit facility refinancing in April 2023 allowing
it to refinance in advance its existing bank debt. Its long term corporate credit ratings
were upgraded by Moody’s and Standard & Poor’s in the second quarter of 2023 andthe Group is now rated Investment Grade with both agencies.
The Group had €866 million of liquidity 9 at 31 December 2023 and does not face any
significant maturities until 2027.
ACQUISITION OF FIVE CULLET PROCESSING PLANTS FROM THE SANTAOLALLA GROUP IN
IBERIA
Verallia has finalised the acquisition of three companies in Spain and Portugal from theSantaolalla Group: Ecosan Ambiental, Ecolabora and Vidrologic. In doing so, it has
taken over five new cullet processing plants, both for industrial flat glass and hollow
glass.
The main objective of this investment is to continue Verallia’s strategy of maximisingcullet use in its production process and to progress towards its CO2 reduction target, thefirst major milestone of which is a 46% reduction in emissions by 2030 compared to 2019.
Each 10-point increase in the cullet rate used by Verallia’s furnaces reduces CO2
emissions by around 5%.
These five new cullet processing plants join Verallia’s four existing plants in the Iberian
Peninsula, two of which - Calcin Ibérico and Revimon in joint venture with TMA Recicla- have started up recently.
VERALLIA IS REVOLUTIONISING THE TIMELESS BORDELAISE BOTTLE BY INTRODUCING ONE
OF THE MOST INNOVATIVE BOTTLES IN THE MARKET: THE BORDELAISE AIR 300G
As the leading European and third-largest global producer of glass packaging forbeverages and food products, Verallia has designed one of the lightest Bordelaisebottles ever while preserving the iconic aesthetic contours that have defined the classic
Bordelaise bottle for generations. This innovation represents a major revolution in termsof eco-design, positioning Verallia at the forefront of innovative and sustainable
packaging.
With a remarkable weight of just 300 grams, this ground-breaking innovation reflects
Verallia’s commitment to its purpose of “Re-imagining glass for a sustainable future”.
This has been achieved without compromising on the bottle’s aesthetics, a hallmark of
the Bordelaise Air 300G.
The continuous reduction in bottle weight is a significant strategic challenge forwinemakers as they strive to meet their CO2 emission reduction commitments.
9 Calculated as available cash + undrawn revolving credit facilities – outstanding commercial paper (Neu CP).

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For the French market, this innovation will be launched with a white and green screw
neck. The Bordelaise Air 300G was exhibited at the SITEVI trade fair in Montpellier at theend of November 2023.
SUSTAINABLE DEVELOPMENT INDICATORS
Verallia's Scope 1 & 2 CO2 emissions totalled 2,602 kt CO2 for the year 2023, a decreaseof -5.6% compared with 2022 emissions of 2,756 kt CO2 (i.e. -15.8% versus 2019). Verallia
is therefore in line with its trajectory of reducing its Scope 1 & 2 CO2 emissions 10 by 46%
in absolute terms by 2030 (reference year 2019) 11.
Emissions decreased even as the external cullet usage rate11 fell to 54.1% in 2023, 1.6
points lower than in 2022 (55.7%). However the year saw Verallia continue to deploy its
long-term strategy for cullet rate increase with for instance the acquisition of 6 cullet
centres in Spain and Portugal, in order to reach its objective of 59% of external cullet
rate in 2025.
As part of the roll-out of its decarbonation strategy, the Group also confirmed that it isstarting up its first 100%-electric furnace in Cognac (France) in the second quarter of2024; this technology should emit 60% fewer CO2 emissions than a traditional furnace.
Moreover, the first hybrid furnace is set to become operational in Zaragoza (Spain) at
the end of 2024, lowering CO2 emissions by 50% compared with a traditional furnace.
CAPACITY INCREASES
Verallia is moving forward with the construction of two new furnaces in Brazil (Campo
Bom) and Italy (Pescia). The startup of these two furnaces is scheduled in the third
quarter of 2024 for Campo Bom and in the second quarter of 2025 for Pescia. The Groupwill continue to monitor demand trends in order to confirm these startup dates.
Regarding planned capacity additions scheduled in Spain in 2025 (Montblanc) andagain in Italy in 2026, the Group has decided to postpone their commissioning beyond
2026. Pre-engineering studies are in progress and the Group will begin investing inconstruction as soon as demand has sufficiently recovered.
SHARE BUYBACKAs part of its capital allocation strategy, and having finalised the acquisition of Allied
Glass, Verallia launched a share buyback programme in December 2022 and entrusted
an investment services provider with a share buyback mandate for a maximum amountof €50 million over a period running from 7 December 2022 to November 2023. This
programme was completed in November 2023 and involved as planned a total
amount of €50 million, of which €42 million in the course of 2023.
As part of the share buyback programme implemented between December 2022 andNovember 2023, Verallia has repurchased a total 1,484,080 own shares for an amountof approximately €50 million. On 14 February 2024, Verallia consequently decided toproceed with the cancellation of 1,484,080 own shares.

10 Scope 1 “direct emissions” = CO emissions within the physical perimeter of the plant, in other words, carbonated raw
2materials, heavy and domestic fuel oil, and natural gas (melting and non-melting activities). Scope 2 “indirect emissions” =emissions related to electricity consumption required for the operation of the plant.
11 Cullet = recycled glass; the external cullet rate and amount of CO emissions are expressed at constant scope and exclude2
the contribution from Allied Glass / Verallia UK so as to make them comparable with the starting point of 2019.

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2023 DIVIDEND
Verallia’s Board of Directors decided during their meeting on 14 February 2024 topropose the payment of a €2.15 cash dividend per share for the 2023 financial year.
This amount will be subject to the approval of the Annual General Shareholders'Meeting which will take place on 26 April 2024.
2024 OUTLOOKAfter 2023 saw a sharp weakening in demand in Europe under the combined effect ofa drop in end consumption and destocking downstream of the value chain, we foreseea gradual recovery in activity over the course of 2024.
In this context and in spite of limited visibility, Verallia has set itself a target to generate
adjusted EBITDA of around €1 billion in 2024, with such EBITDA down year-on-year in thefirst half (high 2023 comparison base) but up year-on-year in the second half (reboundin volumes).
This objective will be achieved thanks to the expected growth in activity combined withanother annual reduction in cash production costs (PAP) of 2%.
Verallia is also set to continue its developments in the areas of new eco-designed
products, cullet processing and decarbonation, which lie at the heart of its CSR
roadmap.

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The Verallia Group's consolidated financial statements for the financial year ended 31
December 2023 were approved by the Board of Directors on 14 February 2024. The
consolidated financial statements have been audited by the Statutory Auditors.
An analysts’ conference call will be held at 9.00am (CET) on Thursday 15 February 2024
via an audio webcast service (live and replay) and the earnings presentation will beavailable on www.verallia.com.
FINANCIAL CALENDAR• 3 April 2024: start of the quiet period.
• 24 April 2024: financial results for Q1 2024 - Press release after the market close andconference call/presentation the next day at 9.00am CET.
• 26 April 2024: Annual General Shareholders' Meeting.
• 3 July 2024: start of the quiet period.
• 24 July 2024: results for H1 2024 - Press release after the market close andconference call/presentation the next day at 9.00am CET.
• 1 October 2024: start of the quiet period.
• 22 October 2024: financial results for 9M 2024 - Press release after the market closeand conference call/presentation the next day at 9.00am CET.
About Verallia
At Verallia, our purpose is to re-imagine glass for a sustainable future. We want to redefine how glass is
produced, reused and recycled, to make it the world’s most sustainable packaging material. We are joining
forces with our customers, suppliers and other partners across the value chain to develop new, beneficial
and sustainable solutions for all.
With more than 10,000 employees and 34 glass production facilities in 12 countries, we are the European
leader and world's third-largest producer of glass packaging for beverages and food products. We offer
innovative, customised and environmentally friendly solutions to over 10,000 businesses worldwide.
Verallia produced more than 16 billion glass bottles and jars in 2023 and recorded revenue of €3.9 billion.
Verallia is listed on compartment A of the regulated market of Euronext Paris (Ticker: VRLA – ISIN:
FR0013447729) and trades on the following indices: CAC SBT 1.5°, STOXX600, SBF 120, CAC Mid 60, CAC Mid& Small and CAC All-Tradable.

Verallia press contacts
Annabel Fuder & Stéphanie Piereverallia@wellcom.fr | +33 (0)1 46 34 60 60
Verallia investor relations contact
David Placet | david.placet@verallia.com

www.verallia.com

9|17Disclaimer
Certain information included in this press release consists not of historical facts but of forward-looking
statements. These forward-looking statements are based on current beliefs, expectations and assumptions,
including, without limitation, assumptions regarding Verallia’s present and future business strategies and theeconomic environment in which Verallia operates. They involve known and unknown risks, uncertainties andother factors, which may cause actual performance and results to be materially different from thoseexpressed or implied by these forward-looking statements. These risks and uncertainties include those
discussed and identified in Chapter 4 ‘Risk Factors” of the Universal Registration Document approved by the
AMF and available on both the Company’s website (www.verallia.com) and that of the AMF (www.amffrance.org). These forward-looking information and statements are no guarantee of future performance.
This press release includes only summary information and does not purport to be comprehensive.

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email address: investors@verallia.com. Press releases will still be available via the website
https://www.verallia.com/en/investors/.
Verallia SA, as data controller, processes personal data for the purpose of implementing and managing its
internal and external communication. This processing is based on legitimate interests. The data collected (lastname, first name, professional contact details, profiles, relationship history) is essential for this processing andis used by the relevant departments of the Verallia Group and, where applicable, its subcontractors. Verallia
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and request for it to be rectified or erased. You also have a right to restrict the processing of your data. To
exercise any of these rights, please contact the Group Financial Communication Department at
investors@verallia.com. If, after having contacted us, you believe that your rights have not been respectedor that the processing does not comply with data protection regulations, you may submit a complaint to the
CNIL (Commission nationale de l'informatique et des libertés — France’s regulatory body).

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APPENDICES - Key figuresin millions of euros

2023

2022

Revenue

3,903.8

3,351.5

Reported growth+16.5%+25.3%

Organic growth+21.4%+26.5%of which Southern and Western Europe

2,527.2

2,236.4of which Northern and Eastern Europeof which Latin America
Cost of sales

979.8
396.8
(2,853.5)

695.3
419.8
(2,527.1)

Selling, general and administrative expenses
Acquisition-related items(212.4)(71.3)(194.4)(65.6)

Other operating income and expenses
Operating profit/(loss)

(5.2)
761.3

(6.1)
558.3

Financial income/(expense)(119.0)(80.7)

Profit (loss) before tax

642.4

477.6

Income tax
Share of net profit (loss) of associates(167.4)0.3(122.1)
0.2

Net profit/(loss) 12
Earnings per share

475.3
€4.02

355.6
€2.92

Adjusted EBITDA 13

1,108.0865.5Group marginof which Southern and Western Europe

28.4%
725.2

25.8%
554.5

Southern and Western Europe margin

28.7%

24.8%

of which Northern and Eastern Europe

244.2

146.5

Northern and Eastern Europe margin

24.9%

21.1%

of which Latin America
Latin America margin

138.5
34.9%

164.6
39.2%

Net debt at end of period
Last 12 months adjusted EBITDA
Net debt/last 12 months adjusted EBITDA

1,364,5
1,108.0
1.2x

1,405,9865.5
1.6x

Total capex 14

418.0

367.0

Cash conversion 15
Change in operating working capital
Operating cash flow 16

62.3%(108.3)
581.7

57.6%
39.4
537.9

Free cash flow 17
Strategic capex 18
Recurring capex 19

365.3
183.6
234.4

363.8
97.4
269.6

12 Net profit for 2023 includes an amortisation expense for customer relationships, recognised upon the acquisition of Saint-

Gobain's packaging business in 2015, of €45 million or €0.38 per share (net of taxes). If this expense had not been taken into
account, net profit would be €520 million or €4.40 per share. This expense was €44 million or €0.38 per share in 2022.
13 Adjusted EBITDA is calculated based on operating profit adjusted for depreciation, amortisation and impairment,
restructuring costs, acquisition and M&A costs, hyperinflationary effects, management share ownership plan costs, disposalrelated effects and subsidiary contingencies, site closure costs, and other items.
14 Capex (capital expenditure) corresponds to purchases of property, plant and equipment and intangible assets necessary
to maintain the value of an asset and/or adapt to market demand and to environmental, health and safety requirements,
or to increase the Group’s capacity. The acquisition of securities is excluded from this category.
15 Cash conversion is defined as adjusted EBITDA less capex, divided by adjusted EBITDA.
16 Operating cash flow corresponds to adjusted EBITDA less capex, plus changes in operating working capital requirements
including changes in payables to fixed asset suppliers.
17 Defined as operating cash flow - other operating impacts - interest paid & other financing costs - taxes paid.
18 Strategic capex corresponds to purchases of strategic assets that significantly enhance the Group’s capacity or its scope(for example, the acquisition of plants or similar facilities, greenfield or brownfield investments), including the building ofadditional new furnaces. Since 2021, they have also included investments associated with implementing the plan to reduce
CO2 emissions.
19 Recurring capex corresponds to purchases of property, plant and equipment and intangible assets necessary to maintainthe value of an asset and/or adapt to market demand and to environmental, health and safety requirements. They mainly
include furnace renovations and maintenance of IS machines.

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11|17Change in revenue by type in millions of euros during 2023
in millions of euros
2022 revenue

3,351.5

Volumes(149.2)

Price/Mix+867.5

Foreign exchange impact(369.2)

Scope effect+203.22023 revenue

3,903.8

Change in adjusted EBITDA by type in millions of euros during 2023
in millions of euros
2022 adjusted EBITDA 20

865.5

Activity contribution-155.1Price-mix/Cost spread+392.8Net productivity+52.5

Foreign exchange impact

-89.3

Other

+41.6

2023 adjusted EBITDA

1,108.0

Change in last 12 months adjusted EBITDA since 2017
1 108
866

504

12/17

544

12/18

615

626

12/19

12/20

678

12/21

12/22

12/23

LTM EBITDA (€m)

Adjusted EBITDA is calculated based on operating profit adjusted for depreciation, amortisation and impairment,
restructuring costs, acquisition and M&A costs, hyperinflationary effects, management share ownership plan costs, disposalrelated effects and subsidiary contingencies, site closure costs, and other items.

20

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Key figures for the fourth quarterin millions of euros

Q4 2023

Q4 2022

Revenue

829.2

833.9

Reported growth-0.6%+27.9%

Organic growth+18.1%+32.9%

Adjusted EBITDA

192.9

211.3

Adjusted EBITDA margin

23.3%

25.3%

Reconciliation of operating profit (loss) to adjusted EBITDA
in millions of euros

2023

2022

Operating profit/(loss)

761.3

558.3

Depreciation and amortisation 21

326.7

295.9

Restructuring costs

3.4

(0.8)

IAS 29 Hyperinflation (Argentina) 22

5.8

4.3

Management share ownership plan and associated costs

6.2

6.2

Company acquisition costs and earn-outs

0.7

5.1

Other

3.9

(3.5)

Adjusted EBITDA

1,108.0

865.5

Adjusted EBITDA and cash conversion are alternative performance measuresaccording to AMF Position n°2015-12.
Adjusted EBITDA and cash conversion are not standardised accounting measures
meeting a single definition generally accepted by IFRS. They must not be considered
as a substitute for operating income or cash flows from operating activities, which aremeasures defined by IFRS, or as a measure of liquidity. Other issuers may calculate
adjusted EBITDA and cash conversion differently from the definitions used by the Group.
IAS 29: Hyperinflation (Argentina)
The Group has applied IAS 29 in Argentina since 2018. The adoption of this standard
requires the restatement of non-monetary assets and liabilities and of the statement ofincome to reflect changes in purchasing power in the local currency. These
restatements may lead to a gain or loss on the net monetary position included infinancial income and expense.
Financial items for the Argentinian subsidiary are converted into euros using the closing
exchange rate for the relevant period.
In 2023, the net impact on revenue was -€53.4 million. The hyperinflation impact has
been excluded from consolidated adjusted EBITDA as shown in the table“Reconciliation of operating profit (loss) to adjusted EBITDA”.

21 Includes depreciation and amortisation of intangible assets and property, plant and equipment, amortisation of

intangible assets acquired through business combinations, and impairment of property, plant and equipment.

22 The Group has applied IAS 29 (Hyperinflation) since 2018.

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Financial structurein millions of euros

Nominalamount or
maximum
amountdrawable

Nominal rate

Finalmaturity

31 Dec2023

Sustainability-linked bondMay 2021 23500

1.625%

May 2028

503.2

Sustainability-linked bond November 202125

500

1.875%

Nov. 2031

494.6

Term Loan B – TLB25

550

Euribor +1.25%

Apr. 2027

550.2

Revolving credit facility (RCF)

550

Euribor +0.75%

Apr. 2028-

Negotiable commercial paper (Neu CP)25

500

158.2

Other borrowings 24

132.9

Total borrowings

1,839.1

Cash and cash equivalents(474.6)

Net debt

1,364.5

Consolidated statement of income
in millions of euros

2023

2022

Revenue

3,903.8

3,351.5

Cost of sales(2,853.5)(2,527.1)

Selling, general and administrative expenses(212.4)(194.4)

Acquisition-related items(71.3)(65.6)

Other operating income and expenses

(5.2)

(6.1)

Operating profit/(loss)

761.3

558.3

Financial income/(expense)(119.0)(80.7)

Profit (loss) before tax

642.4

477.6

Income tax(167.4)(122.1)

Share of net profit (loss) of associates

0.3

0.2

Net profit/(loss) 25

475.3

355.6

Attributable to shareholders of the Company

470.0

342.0

Attributable to non-controlling interests

5.3

13.6

Basic earnings per share (in euros)

4.02

2.92

Diluted earnings per share (in euros)

4.01

2.92

23 Including accrued interest.

24 Of which IFRS16 leases (€61.5 million).

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Consolidated balance sheet
31 Dec. 2023

31 Dec. 2022

Goodwill

687.8

664.0

Other intangible assets

416.2

482.4

Property, plant and equipment

1,795.6

1,609.0

Investments in associates

6.7

5.9

Deferred tax

33.6

27.5

Other non-current assets

57.8

186.3

Non-current assets

2,997.7

2,975.1

Current portion of non-current and financial assets

1.4

1.3

Inventories

711.5

536.8

Trade receivables

144.3

250.4

Current tax receivables

15.1

5.4

Other current assets

115.7

392.3

Cash and cash equivalents

474.6

330.8

Current assets

1,462.6

1,517.0

Total assets

4,460.3

4,492.1

Share capital

413.3

413.3

Consolidated reserves

494.6

590.1

Equity attributable to shareholders

907.9

1,003.4

Non-controlling interests

50.6

64.0

Equity958.5

1,067.4

Non-current financial liabilities and derivatives

1,610.5

1,562.2

Provisions for pensions and other employee benefits

88.9

87.4

Deferred tax

141.9

276.2

Provisions and other non-current financial liabilities

45.5

23.2

Non-current liabilities

1,886.8

1,949.0

Current financial liabilities and derivatives

249.2

200.9

Current portion of provisions and other non-current financial
liabilities

49.8

54.3

Trade payables

627.1

740.6

Current tax liabilities

66.3

44.3

Other current liabilities

622.6

435.6

Current liabilities

1,615.0

1,475.7

Total equity and liabilities

4,460.3

4,492.1

in millions of euros
ASSETSLIABILITIES

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Consolidated cash flow statementin millions of euros

2023

2022

Net profit/(loss)

475.3

355.6

Depreciation, amortisation and impairment of assets

326.7

295.9

Interest expense on financial liabilities

53.2

29.4

Change in inventories(191.8)(92.8)

Change in trade receivables, trade payables & other receivables& payables

92.7

50.9

Current tax expense

176.8

135.5

Cash tax paid

(131.4)(105.9)Changes in deferred taxes and provisions

0.2

0.8

Other

56.2

29.8

Net cash flow from (used in) operating activities

857.9

699.2

Acquisition of property, plant and equipment and intangible
assets(418.0)(367.0)

Increase (decrease) in debt on fixed assets

(1.5)

75.2

Acquisitions of subsidiaries, net of cash acquired(35.5)(247.9)

Other

(4.6)

(0.3)

Net cash flow from (used in) investing activities(459.6)(540.0)Capital increase (decrease)

18.6

13.0

Dividends paid

(163.8)(122.7)

Increase (decrease) in own shares(41.7)(8.4)

Transactions with shareholders of the parent company(186.9)(118.1)

Transactions with non-controlling interests

(3.1)

(2.7)

Increase (decrease) in bank overdrafts and other short-termborrowings

34.5

(1.7)

Increase in long-term debt

569.7

6.8

Decrease in long-term debt

(565.0)(172.3)Financial interest paid

(51.2)(28.1)

Change in gross debt

(12.0)(195.3)

Net cash flow from (used in) financing activities(202.0)(316.1)

Increase (decrease) in cash and cash equivalents

196.3(156.9)Impact of changes in foreign exchange rates on cash and cash
equivalents(52.6)(6.9)

Opening cash and cash equivalents

330.8

494.6

Closing cash and cash equivalents

474.6

330.8

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GLOSSARY
Activity: corresponds to the sum of the change in volumes plus or minus the change in inventories.
Organic growth: corresponds to revenue growth at constant scope and exchange rates. Revenue growth atconstant exchange rates is calculated by applying the same exchange rates to the financial indicatorspresented for the two periods being compared (by applying the exchange rates of the previous period tothe financial indicators for the current period).
Adjusted EBITDA: this is a non-IFRS financial measure. It is an indicator for monitoring the underlying
performance of businesses adjusted for certain expenses and/or income which are non-recurring or liable todistort the Company’s performance. Adjusted EBITDA is calculated on the basis of operating profit adjusted
for depreciation, amortisation and impairment, restructuring costs, acquisition and M&A costs,
hyperinflationary effects, management share ownership plans, subsidiary disposal-related effects andsubsidiary contingencies, site closure costs, and other items.
Capex: short for “capital expenditure”, this corresponds to purchases of property, plant and equipment andintangible assets necessary to maintain the value of an asset and/or adapt to market demand and toenvironmental, health and safety requirements, or to increase the Group’s capacity. The acquisition of
securities is excluded from this category.
Recurring capex: recurring capex corresponds to purchases of property, plant and equipment and intangible
assets necessary to maintain the value of an asset and/or adapt to market demand and to environmental,
health and safety requirements. It mainly includes furnace renovations and maintenance of IS machines.
Strategic capex: strategic capex corresponds to purchases of strategic assets that significantly enhance theGroup’s capacity or its scope (for example, the acquisition of plants or similar facilities, greenfield or
brownfield investments), including the building of additional new furnaces. Since 2021 it has also included
investments associated with implementing the plan to reduce CO2 emissions.
Cash conversion: refers to the ratio between cash flow and adjusted EBITDA. Cash flow refers to adjusted
EBITDA less capex.
Free cash flow: defined as operating cash flow - other operating impacts - interest paid & other financing
costs - taxes paid.
The Southern and Western Europe segment comprises production sites located in France, Spain, Portugal and
Italy. It is also designated by its acronym “SWE”.
The Northern and Eastern Europe segment comprises production sites located in Germany, the United
Kingdom, Russia, Ukraine and Poland. It is also designated by its acronym “NEE”.
The Latin America segment comprises production sites located in Brazil, Argentina and Chile and, since
January 1, 2023, Verallia’s operations in the USA.
Liquidity: calculated as available cash + undrawn revolving credit facilities – outstanding negotiable
commercial paper (Neu CP).
Amortisation of intangible assets acquired through business combinations: corresponds to the amortisationof customer relationships recognised upon acquisition.

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