Measuring Our Progress

We are redefining packaging through our four strategic goals: delighting our customers, realising the potential of our people, leading the way in sustainability and doubling our size and profitability. If we deliver in this way, we will meet our vision to be the leading supplier of sustainable packaging solutions. Our strategic goals are aligned with the requirements of our stakeholders to ensure we are delivering for all.

To delight our customers

We do this by:

• Delivering on our commitment for quality and service
• Driving innovation and value-added packaging solutions
• Improving service levels
• Driving circularity and continuing to deliver market-leading sustainable solutions.
  
  

KPIs

1. On-time, in-full delivery (OTIF) 

The proportion of our orders that are delivered on-time, in-full across our businesses.   Packaging is an essential part of an efficient supply chain. Delivering as promised is a critical component to ensuring we remain a trusted partner to our customers.

2. Our corrugated packaging customers by volume 

We have a higher proportion of FMCG and other consumer goods customers than the market average. We work with large customers in resilient sectors such as FMCG and aim to grow share with these customers.  

To realise the potential of our people 

We do this by:

• Ensuring the health, safety and well-being of all our employees 
• Creating a working environment where they feel proud, engaged and developed 
• Focusing on embedding diversity and inclusion by expanding resource groups and local networks.
   

KPIs

1. Accident Frequency Rate (AFR) 

The number of lost time accidents (LTAs) per million hours worked. We believe all employees contribute to a safe working environment and culture, and our focus is on individual ownership.

2. FTSE Women Leaders Report 2023

This report is an independent framework which sets recommendations to improve the representation of women on boards and in leadership positions. We are using this as a KPI to track progress in delivering gender balance aligned to the FTSE 350 and 50 of the largest private companies.

To lead the way in sustainability

We do this by: 

• Designing out waste and pollution and keeping materials in use
• Decarbonising our operations and value chain
• Creating a safe, diverse and inclusive workplace and being active in our communities
• Protecting and regenerating nature.
  
  

KPIs

1. Carbon reduction 

Reduce Scope 1, 2 and 3 GHG emissions by 46 per cent by 2030 compared to 2019 and reach Net Zero by 2050. It is important that we play our part in reducing global greenhouse gas emissions, helping prevent the worst impacts of climate change and future proofing business growth in line with the goals of the Paris Agreement.

2. Plastic replacement  

Help our customers replace one billion pieces of plastic by 2025. Our customers approve of corrugated packaging as a renewable alternative to plastic that, when recycled, prevents waste from entering landfills and oceans, reducing the impact on marine life and the natural world.  

To double the size and profitability of the business

We do this by:

• Being well positioned in developed markets 
• Working with major FMCG brands
• Driving market share gains
• Investing behind fundamental growth drivers
  
  

KPIs

1. LFL corrugated box volume growth 

Like for like (LFL) volume of corrugated box products sold measured by area.  We target volume growth of at least GDP +1 per cent because we expect to win market share by delivering value to our customers. 

2. Return on sales  

Earnings before interest, tax, amortisation and adjusting items as a percentage of revenue.  The margin we achieve reflects the value we deliver to our customers and our ability to charge for that value. It is also driven by our scale. A higher return on sales makes the profit more resilient to adverse effects. 

3. Adjusted return on average capital employed

Earnings before interest, tax, amortisation and adjusting items as a percentage of average capital employed, including goodwill, over the prior 12-month period. 

 Our target ROACE to be delivered throughout the economic cycle is above our cost of capital. ROACE is a key measure of financial success and sustainability of returns and reflects the returns available for investment in the business and for the servicing of debt and equity. All investments and acquisitions are assessed with reference to this target. 

4. Net debt/EBITDA 

Met debt (calculated at average FX rates and after deducting IFRS 16 lease liabilities) over earnings before interest, tax, depreciation, amortisation and adjusting items for the preceding 12-month period (adjusted for acquisitions and disposals made during the financial year and to remove the income effect of IFRS 16, Leases). This definition is in accordance with the Group’s covenants.

Net debt/EBITDA is a key measure of balance sheet strength and financial stability. 

5. Cash conversion  

Free cash flow before tax, net interest, growth capex, pension payments and adjusting items as a percentage of earnings before interest, tax, amortisation and adjusting items. Free cash flow is the net movement on debt before cash outflow for adjusting items, dividends paid, acquisition and disposal of subsidiary businesses (including borrowings acquired) and proceeds from issue of share capital.

We focus on cash conversion as part of our wider focus on capital management and maintaining a prudent balance sheet. Working capital is a key focus within the business so that all capital is employed to best deliver returns for the company.