Constantia Flexibles announces acquisition of Aluflexpack

*Earnings before interest, taxes, depreciation and amortization ("EBITDA") from ongoing operations for Aluminum Extrusions was $5.1 million in the third quarter of 2023 versus $12.1 million in the third quarter of last year due to sluggish market conditions. EBITDA from ongoing operations during the last four quarters has been weak, in a range of $5.1 million to $14.6 million. -Sales volume of 32.5 million pounds in the third quarter of 2023 declined significantly versus 45.5 million pounds in the third quarter of last year. -Open orders at the end of the third quarter of 2023 were approximately 17 million pounds (versus 20 million pounds at the end of the second quarter of 2023), which is below the quarterly range of 21 to 27 million pounds in 2019 before pandemic-related disruptions that resulted in excessive open orders, which peaked in the first quarter of 2022 at approximately 100 million pounds. *EBITDA from ongoing operations for PE Films was $4.0 million in the third quarter of 2023 versus $0.4 million in the third quarter of 2022. EBITDA from ongoing operations during the last four quarters has been low with a range of negative $2.6 million to positive $4.0 million. *EBITDA from ongoing operations for Flexible Packaging Films (also referred to as "Terphane") was $0.5 million during the third quarter of 2023 versus $7.8 million in the third quarter of 2022 primarily due to lower sales volume and lower margins that the Company believes were driven by customer inventory corrections earlier in the year and now are being driven by global excess capacity and competition in Brazil from imports. See the Status of Current Corporate Strategic Initiatives section of this report for information on the sale of Terphane.

The investment is part of our Packaging’s ambitious growth strategy in East Europe, driving leadership in sustainable packaging solutions across the region and creating value for our customers and partners. The first steps have already been taken by harmonising the business processes of both sites, including quality management and system standardiation. These initiatives are supported by investments in new machinery at both sites increasing quality, productivity as well as innovation capabilities. Reinier Schlatmann, DS Smith Regional Managing Director East Europe: "Our investments in technology, automation, and process improvement, enable DS Smith to drive innovation in packaging solutions. With a strong focus on the transition towards a circular economy, we are reshaping the industry and supporting customer sustainability goals at the same time. DS Smith's commitment in this respect is supported by our development of corrugated packaging that offers alternatives for problematic plastics. The investments in Austria significantly strengthen our position in the market and make a long-term contribution to the environment and economy.”

“SEE is on a journey to become a world-class, digitally driven company automating sustainable packaging solutions. Over the past five years, Ted has architected our purpose-driven transformation and energized our growth during one of the most challenging times in the company’s history. We are confident that Ted is the right leader to continue to successfully advance our long-term strategy and accomplish our vision,” said Henry Keizer, SEE’s Chairman of the Board. “SEE has a bright future ahead of it. I’m grateful to serve as CEO for another five years and for the opportunity to continue to lead our talented people to reach our vision,” said Ted Doheny. “Since 2017, we have transformed the business significantly, and there is still more to accomplish. We are cultivating a diverse and caring growth culture for our people and creating exceptional experiences for our customers by accelerating our growth in digital, automation and sustainability. We work each day to deliver world-class performance, create long-term value for our shareholders and make our world better than we found it.”