Ball (BALL) Baird 2024 Global Industrials Conference summary

Strategic overview and recent actions

• Transitioned to focus solely on aluminum packaging after selling the aerospace business, using proceeds to pay down debt and increase shareholder returns.

• Operating in Europe, South America, and North America, with North America facing the most volatility due to supply-demand imbalances and consumer pressures.

• Navigated tariff challenges by diversifying aluminum supply sources and preparing for future regulatory changes.

• Raised share repurchase guidance multiple times, with plans to return $1.5–$1.6 billion to shareholders this year.

• Implemented the Ball Business System to drive operational efficiency and standardization across regions.

Market and regional performance

• North America: Consumer affordability remains a challenge, but recent rate cuts and tax relief are improving the outlook for 2025.

• Volume trends show growth at the low and high ends of the beer market, while premium light beers remain depressed.

• Europe: Outperformed expectations with mid-single-digit growth, driven by energy cost relief and a shift from glass to cans.

• South America: Brazil is strong heading into peak season, while Argentina and Chile are recovering from economic headwinds.

• Supply-demand in Europe is tight, with customers increasing can-filling capacity and inventory to avoid shortages.

Financial outlook and shareholder returns

• Projecting consistent delivery of a 10%+ EPS growth algorithm through 2027, with $5 billion+ in shareholder returns planned for 2024–2027.

• Share buyback for 2023 increased to $1.5–$1.6 billion, up from the previous $1.4 billion plan.

• Operational improvements and cost reductions targeted at 2–3% of controllable spend annually.

• Confident in contract stability, with only 10–15% of the market up for renewal in the next 12–18 months.