Specialist
Former Director, Financial Planning Analysis at Sealed Air Corp
Agenda
- US protective packaging market overview and Sealed Air Corp’s (NYSE: SEE) positioning
- Demand trends and pricing dynamics
- Sealed Air’s growth prospects and speed-to-market on innovations
- Product cost-efficiency and channel optimisation
- H2 2019 outlook
Questions
1.
Could you begin with your updated perspective on the packaging industry, identifying any key trends and
developments you are noticing?
2.
What are your thoughts on the recent performance and the health of Sealed Air, particularly around the
Reinvent programme?
3.
What changes over time are you noticing from the Reinvent programme? What do you like or dislike about
the plan? What are the key risks?
4.
Do you have any insight on how the changes so far have been received by employees? Has the culture or
sentiment within the organisation changed?
5.
Do you feel that the company is moving in the right direction through this plan? Outside of headcount
reduction, do you think the realignment of the business was necessary and is for the better?
6.
Post-restructuring, do you feel that EBITDA margins could likely be in the range of 25-30%? Is that a
realistic estimate?
7.
Do you have any insight into recent resin pricing trends?
8.
Why is there so much emphasis on the cash flow cycle?
9.
How common is the value-add pricing methodology becoming? Do you think that shift is a net-positive for
a player such as Sealed Air, and if so, why?
10.
Do you have any other examples of value-share opportunities that Sealed Air has capitalised on? What is
your confidence level in its innovation pipeline and ability to continue to capitalise on this?
11.
Would you highlight any other competitive advantages Sealed Air has in the food care business? Could it
gain additional competitive advantage, or is the rest of the industry catching up technology-wise?
12.
Are you aware of any business trends specifically on shrink bags or case-ready?
13.
The utility segment has had major declines in late 2018 and early 2019. There has been no mention of a
product exit in that segment. Do you think it is safe to assume this decline is due to a large customer or large
distributor leaving?
14.
Could you outline any recent demand trends in product care, including key drivers within that segment?
15.
Amazon seems to be shifting towards more flexible packaging and mailers, which presumably could be a
huge opportunity for a company with the right scale. Is that an area where Sealed Air could partner with
Amazon?
16.
You mentioned the opportunity of Sealed Air being on Amazon premises or sorting warehouses. Do you
think that is the way things are trending in the packaging sector? How would you gauge that offer?
17.
What are your thoughts on Sealed Air’s recent price increases over the past couple of years, and do you
know if it has either won or lost share or if it has changed its relationship with Amazon?
18.
Do you have any insight into the newly acquired Automated Packaging Systems, the product offering and
any synergies the company would hope to establish there?
19.
What do you think is Sealed Air’s appetite for further acquisitions, based on its leadership and corporate
culture?
20.
What are your thoughts on company leadership and their strategic vision for the company? Do you have
any experience of working with the leadership team or Ted Doheny, and what do you think of the general
direction in which he is taking the company?
21.
To outline some risks or challenges the company is facing, to what extent do you think the strong US dollar
and tariffs have been detrimental for foreign business?
