INVESTOR PRESENTATION

Transcription

1 Always Advancing To Protect What s Important INVESTOR PRESENTATION August 2018 NYSE: BERY

2 Safe Harbor Statements Forward-Looking Statements Statements in this presentation that are not historical, including statements relating to the expected future performance of thecompany, are considered forward looking and are presented pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of You can identify forward-looking statements because they contain words such as believes, expects, may, will, should, would, could, seeks, approximately, intends, plans, estimates, anticipates outlook, or looking forward, or similar expressions that relate to our strategy, plans or intentions. All statements we make relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results or to our expectations regarding future industry trends are forward-looking statements. In addition, we, through our senior management team, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those that we expected. Important factors that could cause actual results to differ materially from our expectations, which we refer to as cautionarystatements, are disclosed under Risk Factors and elsewhere in our Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission, including, without limitation, inconjunction with the forward-looking statements included in this release. All forward-looking information and subsequent written and oral forward-looking statements attributable to us, orto persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements. Some of the factors that we believe could affect our results include: (1) risks associated with our substantial indebtedness and debt service; (2) changes in prices and availability of resin and other raw materials and our ability to pass on changes in raw material prices on a timely basis; (3) the impact of potential changes in interest rates; (4) performance of our business and future operating results; (5) risks related to our acquisition strategy and integration of acquired businesses; (6) reliance on unpatented know-how and trade secrets; (7) increases in the cost of compliance with laws and regulations, including environmental, safety, and production and product laws and regulations; (8) risks related to disruptions in the overall economy and the financial markets may adversely impact our business; (9) catastrophic loss of one of our key manufacturing facilities, natural disasters, and other unplanned business interruptions; (10) risks of competition, including foreign competition, in our existing and future markets;(11) general business and economic conditions, particularly an economic downturn; (12) potential failure to realize the intended benefits of acquisitions, including the inability to realize the anticipated cost synergies in the anticipated amounts or within the contemplated timeframes or cost expectations; (13) risks related to international business, including foreign currency exchange rate risk and the risks of compliance with applicable export controls, sanctions, anticorruption laws and regulations and (14) the ability of our insurance to fully cover potential exposures; and (15) the other factors discussed in the under the heading Risk Factors in our Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. We caution you that the foregoing list of important factors may not contain all of the material factors that are important to you. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. This presentation should be read together with Management s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and the related notes thereto included in our public filings. Non-GAAP Financial Measures This presentation includes certain non-gaap financial measures such as operating EBITDA, adjusted EBITDA, adjusted net income, and adjusted free cash flow to supplement, not substitute for, comparable measures. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to thosemeasures provided in our earnings release, presentations, and SEC filings. Adjusted EBITDA is a non-gaap financial measure used by management to measure performance of the Company s operations, and also among the criteria upon which performancebased compensation may be based. Adjusted EBITDA also is used by our lenders for debt covenant compliance purposes. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided in this presentation, our earnings releases and SEC filings. Forfurther information about our non-gaap measures, please see our earnings release, SEC filings and supplemental data at the end of this presentation. Website Information We often post important information for investors on our website, in the Investor Relations section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor theinvestor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations, and webcasts. The information contained on, or thatmay be accessed through our website, is not incorporated by reference into, and is not a part of this document. 2

3 3 BERRY OVERVIEW

4 Who is Berry? Leading Global Supplier Of Value-Added Protective Solutions $8B Annual Revenues* 135 Facilities Worldwide 13,000+ Customers 90,000+ Items Low cost manufacturer of products used everyday in stable end markets Strong, consistent, and predictable free cash flow Proven acquisition strategy with a robust pipeline Blue Chip Customers Include 4 * Pro forma revenue includes Adchem and Clopay acquisitions for the LTM period ended June 2018

5 Three Complementary Segments Berry Revenue: $8B (1) Engineered Materials Health, Hygiene & Specialties Consumer Packaging 34% of Revenue (1) 36% of Revenue (1) 30% of Revenue Revenue (1) $2.7B EBITDA (1) $508M Consumer and industrial flexible packaging Industrial & specialty tapes Can liners Revenue (1) $2.9B EBITDA (1) $500M Diapers Adult incont. Feminine care Medical garments Disinfectant wipes Dryer sheets Filtration Revenue $2.4B EBITDA $441M Closures Drink cups Bottles Prescription vials Containers Tubes 5 (1) Pro forma revenues and EBITDA includes Adchem and Clopay acquisitions and expected annual cost synergies -Revenues and EBITDA are for the LTM period ended June Berry produces components of some of the products in the HH&S segment

6 Acquisition History 44 acquisitions in 30 years Core competency of integrating acquisitions Disciplined approach drives significant value creation Decades of consolidation opportunity remains Track record of strong synergy capture ~$8 Revenue 2008-Current <$200M Revenues Assets from SDRF Division of Alpha Products 6 APM

7 Why Berry? Leadership Position With Scale Consistent Free Cash Flow History of Revenue and EBITDA Growth Unique M&A Strategy With Proven Track Record Margin Stability Across Input Cost Cycles Serves Stable End Markets With Favorable Long-Term Dynamics.. We Are Continuing The Same Strategy We Have Always Done 7

8 Significant Scale Advantages Largest resin buyer with ~4.5 billion+ lbs procured annually #1 or #2 leadership position across ~75% of portfolio Low cost manufacturer sustainable competitive advantage Leadership Position With Scale Consistent Free Cash Flow $8.0 $8.0 Revenue History of Revenue and EBITDA Growth Unique M&A Strategy With Proven Track Record $6.0 Margin Stability Across Input Cost Cycles Serves Stable End Markets With Favorable Long-Term Dynamics $4.0 $5.0 $4.5 $4.1 $4.0 $2.5 $2.0 $- BERY SON SEE SLGN BMS ATR 8 Berry revenue pro forma for most recent acquisitions. Competitor group based on plastic producing peers. Competitor group revenue based on most recent public TTM revenue

9 Consistent Free Cash Flow 5-year free cash flow CAGR of 25% Exceeded free cash flow guidance every year since IPO Leadership Position With Scale Consistent Free Cash Flow History of Revenue and EBITDA Growth Unique M&A Strategy With Proven Track Record Margin Stability Across Input Cost Cycles Serves Stable End Markets With Favorable Long-Term Dynamics $650 $600 $550 $500 $450 $400 $350 $300 $250 $ $630 $ $550 $517 $ $ $320 $302 $270 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Guidance Actual Berry s LTM FCF yield is ~9% (1) still well above the peer group average of ~4.5% (2) 9 (1) Based on latest shares outstanding and stock price as of the end of the June 2018 quarter (2) Packaging peer group includes: Aptar Group, Ball Corporation, Bemis, Crown Holdings, Graphic Packaging, Owens Illinois, Sealed Air, Silgan, and Sonoco. Packaging peer average based on the latest calculated public data available as of August 2, Free cash flow calculated as cash flow from operations less net capital expenditures

10 Strong Financial Performance Track Record Revenue Operating EBITDA Leadership Position With Scale Consistent Free Cash Flow History of Revenue and EBITDA Growth Unique M&A Strategy With Proven Track Record $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $196 $7, $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $1,327 $ Margin Stability Across Input Cost Cycles Adjusted Earnings Per Diluted Share Shareholder Returns Serves Stable End Markets With Favorable Long-Term Dynamics $3.50 $3.00 $2.50 $2.48 $3.09 $2.00 $1.50 $1.32 $1.56 $1.70 $1.00 $16 $ IPO Current Proven Track Record of Net Sales, Earnings, and Shareholder Return Growth 10 Dollars in millions, except per share data Represents fiscal revenue and operating EBITDA for respective years

11 Robust Acquisition Pipeline + Fragmented Markets Completed 44 acquisitions to date Average ~5% cost synergies of acquired targets revenue Rigid Plastics Flexible Plastics Nonwovens Leadership Position With Scale Consistent Free Cash Flow History of Revenue and EBITDA Growth Unique M&A Strategy With Proven Track Record Margin Stability Across Input Cost Cycles 49% 27% 24% 49% 24% 27% 40% 30% 29% Serves Stable End Markets With Favorable Long-Term Dynamics Top 3 #4-10 # We Believe There Will Be Decades Of Consolidation Opportunities In A Growing Substrate 11 Source: Plastics News (N.A. only) and Nonwoven Industry Magazines Rigid Plastics includes thermoforming, blow molding and injection molding. Flexible Plastics includes film and sheet

12 Berry s Acquisition Model Further Acquisition Opportunities Berry s Acquisition Model Discipline and conservative approach Robust pipeline in all 3 segments Fragmented markets Proven systematic integration Identify best people and practices no consultants needed Completed 44 acquisitions to date Identify Integrate Synergy Realization Focus on buying and operating businesses for the long-term Last 15 Acquisitions Have Averaged 5.2x -Post Synergy Multiple Average 5% Cost Synergies of Targets Revenue Significant Shareholder Value Generated Through Proven Acquisition Strategy 12 Includes the most recent acquisition of Clopay and expected $20 million of cost synergies Source Company Management

13 Acquisitions : Case Studies Acquisition Example A (2014) Synergistic fit within our healthcare product portfolio Common customers Common raw material (PP) Purchase Price $ 133 million Purchase Multiple 7.9x Synergy Estimate Actual Synergies $ 13 million $ 18 million Post Synergy Multiple 3.8x Acquisition Example B (2017) Direct overlapping products Common customers Additive to procurement scale benefit Common raw material (PE) Purchase Price $791 million Purchase Multiple 7.0x Synergy Estimate Actual Synergies $ 50 million $ 80 million Post Synergy Multiple 4.1x Operating EBITDA: At Acquisition Date $ 17 million 3 years later* $ 65 million Operating EBITDA: At Acquisition Date $ 113 million 1 year later* $ 183 million ROIC 49% ROIC 23% 13 ROIC is calculated as operating EBITDA divided by purchase price * Acquisition example A 3-year estimated operating EBITDA is calculated as operating income of $43 million, plus D&A of $16 million and other expenses of $6 million. Acquisition example B 1-year estimated operating EBITDA is calculated as operating income of $105 million plus D&A of $59 million and other expenses of $19 million. All amounts are estimates by management

14 Resin Is a Pass-Through Over the past 8 quarters resin volatility was ~40%; BERY margins remained in a range of 18-19% 80 Leadership Position With Scale Consistent Free Cash Flow 70 History of Revenue and EBITDA Growth Unique M&A Strategy With Proven Track Record Margin Stability Across Input Cost Cycles Serves Stable End Markets With Favorable Long-Term Dynamics Cents per LB % 19.0% 18.7% 18.7% 18.7% 18.5% 18.2% 18.0% PE Price PP Price LTM EBITDA Margin 40 Resin Primary Raw Material Resin comprises approximately 50% of COGS ~75% of resin pounds sold are on contractual pass through ~4.5 billion pounds purchased annually 14 Approximately 55% of our buy is polyethylene and 45% is polypropylene

15 Growing Substrate 2000 Global Packaging Market 2015 Global Packaging Market 2025 E Global Packaging Market Leadership Position With Scale <30% 37% 40+% Consistent Free Cash Flow History of Revenue and EBITDA Growth Unique M&A Strategy With Proven Track Record Margin Stability Across Input Cost Cycles Plastics Packaging Other Packaging Serves Stable End Markets With Favorable Long-Term Dynamics Durability Plastic Packaging Offers Design versatility Cost advantage Lowest carbon footprint Lightweight Recyclability 15 Sources: WPO Market Statistics and Future Trends in Global Packaging and Smithers Pira

16 Segment Opportunities & Trends Engineered Materials E-commerce Material science Improved load management Film strength Health, Hygiene & Specialties Emerging markets (higher growth GDP) Rising middle class Infection prevention Consumer Packaging One-stop shop Design flexibility Clarity and sustainability Convenience Advantaged Products In Targeted Markets 16

17 17 CAPITAL ALLOCATION STRATEGY

18 Cash Deployment Strategy Cash Flow From Operations Further Opportunities (Dividend) ~$1 Billion projected in FY 2018 Capex $320 million projected in FY 2018 Targeted capital spending for organic growth & cost reduction $500 Million Share Repurchase Authorization Share Repurchases Debt Paydown Debt reduction increases M&A capacity M&A Spent >$3 billion over the past 5 years Continued disciplined and conservative approach to target accretive acquisitions Robust pipeline Strong, Stable Free Cash Flow Allows Allocation Flexibility 18

19 Growing Free Cash Flow While Lowering Risk Significant Cash Flow Growth Since IPO Utilizing Our Proven Strategy.. All While Improving Our Risk Profile IPO Oct FY 2013 FY 2014 FY 2015 FY 2016 FY Yr. CAGRs Adj. Free cash flow $ 243 $ 302 $ 436 $ 517 $ % Adj. FCF/share $ 2.03 $ 2.49 $ 3.53 $ 4.14 $ % Net leverage 4.8x 4.6x 4.2x 4.5x 3.8x Adj. EPS $ 1.32 $ 1.56 $ 1.70 $ 2.48 $ % Op. EBI TDA $ 774 $ 795 $ 815 $ 1,210 $ 1,327 14% Rev enue $ 4,715 $ 5,038 $ 4,881 $ 6,489 $ 7,095 11% I nterest cov erage FY 2018 Free Cash Flow Guidance Of $630 Million 19

20 20 FINANCIAL

21 Three Quarters Ended 2018 Financial Highlights $ 5.8B Revenue 11% Increase vs PY $363M Net Income 58% Increase vs PY $567M Operating Income 6% Increase vs PY $ 1.0B Operating EBITDA 6% Increase vs PY $ 2.47 Adj. Earnings Per Diluted Share 15% Increase vs PY 21

22 Cash Flow Highlights Components of Free Cash Flow LTM Jun-2018 Operating EBITDA $1,384 Capital expenditures (334) Cash interest expense (252) Taxes (1) (212) Working capital (29) Restructuring and other (2) (27) Adjusted free cash flow $530 $650 $600 $550 $500 $450 $400 $350 $300 $250 $200 Projected and Actual FCF by Year +51 $630 $ $550 $ $475 $ $320 $302 $270 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Guidance Actual Operating Cash From Operations Expected To Be ~ $1 Billion in FY 2018 History of Exceeding Free Cash Flow Guidance 22 Note: Dollars in millions (1) Includes tax receivable agreement payment in the LTM period ended Jun-2018 of $88 million along with other cash taxes. (2) Includes integration expenses and other business optimization costs

23 Fiscal Year 2018 Guidance & Assumptions Cash flow from operations $987 Less: capital expenditures (320) Less: tax receivable agreement (1) (37) Adjusted free cash flow $630 Key Objective - Maximize Shareholder Value 23 Note: All dollar amounts in millions (1) Includes tax receivable payment made in the Dec-17 quarter of $37 million

24 24 Appendix: Current Topics

25 Limited Exposure To Short-Term Interest Rate Volatility Term Loans 3,753 Term Loan Hedges (1,450) Total Variable 2,303 38% Capital leases and other 138 Term Loan Hedge 1,450 2nd Lien Notes 2,100 Total Fixed 3,688 62% A 0.25% increase in LIBOR would increase our annual interest expense by <$6 million on variable term loans Over $1.4 billion of interest rate hedges (swapped variable to fixed) Over 70% of our revenue is in stable, consumer-centric end markets Very stable volumes, free cash flow, and earnings 25

26 26 Appendix: Our Business

27 Our Leadership Tom Salmon, Chairman & CEO Passionate leader focused on improving Berry s financial performance, creating an entrepreneurial-like workplace while helping our customers succeed Named CEO February 2017 Prior 11 years with Berry: various leadership roles, including President and COO; led both Engineered Materials and Consumer Packaging divisions Prior experience includes leadership roles at Tyco Adhesives, Honeywell and General Electric Mark Miles, CFO & Treasurer Disciplined and financially driven leader highly focused on creating long-term value for Berry Named CFO January 2014 Previous 10 years with Berry as EVP, Controller and Treasurer Started with Berry in 1997 as Corporate Controller Integral part of management for 35 of Berry s 44 acquisitions 27

28 Total Company End Markets and Regions Revenue by End Markets: Revenue by Regions: Engineered Materials Non-Woven Spec. Materials 20% 9% 41% Health Care & Hygiene South Asia America 4% 4% Pac 4% 4% EMEAI 10% Retail Beverage 3% 11% 16% 82% North America Food Over 40%of our revenue in attractive personal and healthcare marketswith over 70%of sales in stable, consumer-oriented end markets #1 or #2 market position in ~75% of our FY 2017 revenues 28

29 Segment Breakdown End Markets and Regions Engineered Materials Health, Hygiene & Specialties Consumer Packaging Revenue by End Markets: Retail Industrial/ B&C Ag & Other 6% 12% 17% 32% Food & Beverage 33% Distribution Healthcare/ Medical Industrial/ Tech. Specialties 32% 16% 52% Personal care/ Hygiene Beverage 27% 33% Personal & Health Care 40% Food Revenue by Regions: 29 Berry estimates

30 Engineered Materials Shrink Films Stretch Films Converter Films Food Films Product Examples Competitors All American Bemis Colormasters Hillside Inteplast Malpack Paragon Sigma Bemis Charter NEX Next Gen Sealed Air Bemis Printpack Sealed Air WinPak Tapes Retail Bags Can Liners PVC Films Product Examples 3M Clorox Aluf Anchor Competitors IPG Scapa Polyamerica Reynolds Inteplast Novolex Rine Pkg Polyvinyl Shurtape Sigma Reynolds 30 Not inclusive of all products or competitors

31 Health, Hygiene & Specialties Product Examples Diapers Feminine Care Adult Incont. Surgical Products & Medical Packaging Pharmaceutical & Rigid Medical Competitors Avgol Fitesa Gulsan Toray Avgol Fitesa Pegas RKW Avgol Fitesa Gulsan Pegas Ahlstrom- Munksjö Amcor Fitesa SAAF Gerresheimer Nypro West Pharmaceutical Wipes Filtration Geosynthetics Ag & Other Building Wraps Product Examples Competitors Jacob Holm Sandler Spuntech Suominen Freudenberg John Mansville Mogul Low & Bonar Naue TenCate Thrace Fitesa Mogul Owens Corning TenCate Barricade DuPont Kingspan 31 Not inclusive of all products or competitors

32 Consumer Packaging Containers Closures Drink Cups Bottles Product Examples Airlite Aptar Dart Alpha Competitors IPL Polytainer Reynolds Mold-Rite LidWorks Reynolds Amcor Reynolds RPC Group Silgan Silgan Tubes Rx Vials Overcaps Jars Product Examples Competitors Albea CCL Essel Propack Viva Apothecary Products Centor Tri State Aptar Cobra Dubuque Underwood Alpha Mold-Rite Intrapack Omega 32 Not inclusive of all products or competitors

33 Sustainability Advantages Compared to alternative packaging protection materials Plastic typically: Uses less natural resources Requires less energy to produce Has a lower overall environmental impact Natural Resources Energy Greenhouse Gas It would require 4.1pounds of alternative materials to replace 1 pound of plastic Source: S&P Trucost It requires 82%more energy to produce, process, and transport plastic alternatives than it does plastic Source: Franklin Associates Using alternatives instead of plastic would generate 2.6 times more greenhouse gas emissions than using plastic Source: S&P Trucost 33

34 Benefits of Plastic On an annualized basis, plastics save the greenhouse gas equivalent of: 186 million 834 million 2 billion cars off the road acres of forest barrels of oil 34 Based on data from S&P Trucost and the U.S. EPA GHG Equivalencies Calculator

35 Our Sustainability Goals As a company that has grown significantly via acquisition, we use near-term goals which allow us to accurately compare year-over-year performance while driving continuous improvement toward our long-term goals. Natural Resources Reduce electricity, natural gas, and water consumption intensity each year Long-term, we aspire to achieve best-in-class energy and water efficiency Climate Change Reduce Scope 1&2 greenhouse gas emissions intensity each year Long-term, we aspire to be carbon neutral in our operations Waste Reduce landfill waste intensity processed each year Long-term, we aspire to generate zero waste to landfill Berry is also a proud partner in Operation Clean Sweep a commitment to implement processes and procedures to keep resin out of the natural environment 35

36 Corporate Sustainability Report Report in accordance with Global Reporting Initiative (GRI) Standards Includes assurance statements for absolute energy, carbon emissions and renewable purchases Provides examples of the work Berry has done to: Reduce waste to landfill Source renewable energy Test and evaluate new, more efficient equipment Institute standardized management plans to reduce environmental impacts Conduct product life cycle assessments and explore sustainable materials Promote social initiatives in the communities where we live and work To view our Sustainability Report documents go to 36

37 Appendix: Supplemental Data (1) Adjusted EBITDA, adjusted free cash flow, and adjusted net income should not be considered in isolation or construed as an alternative to our net income (loss) or other measures as determined in accordance with GAAP. In addition, other companies in our industry or across different industries may calculate adjusted EBITDA, adjusted free cash flow, and adjusted net income and the related definitions differently than we do, limiting the usefulness of our calculation of adjusted EBITDA, adjusted free cash flow, and adjusted net income as comparative measures. EBIT, operating EBITDA, adjusted EBITDA, adjusted free cash flow, and adjusted net income are among the indicators used by the Company s management to measure the performance of the Company s operations and thus the Company s management believes such information may be useful to investors. Such measures are also among the criteria upon which performance-based compensation may be based 37

38 Non-GAAP Financial Measures Actual Original Guidance Actual Original Guidance Actual Original Guidance Actual Original Guidance Actual Guidance FY 2013 FY 2014 FY 2014 FY 2015 FY 2015 FY 2016 FY 2016 FY 2017 FY 2017 FY 2018 Cash flow from operations $464 $532 $530 $589 $637 $817 $857 $925 $975 $987 Capital expenditures, net (221) (230) (196) (230) (162) (285) (283) (315) (263) (320) Payment of tax receivable agreement - (32) (32) (39) (39) (57) (57) (60) (111) (37) Adjusted free cash flow $243 $270 $302 $320 $436 $475 $517 $550 $601 $ Note: Dollars in millions

39 Non-GAAP Financial Measures Fiscal Year U.S. GAAP Operating income $18 $52 $69 $42 $732 Add: restructuring and impairment Add: business optimization and other costs (1) Add: depreciation & amortization Operating EBITDA $35 $108 $180 $656 $1,327 Fiscal Year Net income per diluted share $ 0.47 $ 0.51 $ 0.70 $ 1.87 $ 2.54 Other expense (income) (0.18) 0.03 Non-cash amortization Restructuring and impairment Other non-cash charges Business optimization Tax reform adjustments, net Income tax impact on items above (0.29) (0.25) Adjusted net income per diluted share $ 1.32 $ 1.56 $ 1.70 $ 2.48 $ Note: Dollars in millions (1) Includes integration expenses and other business optimization costs

40 Non-GAAP Financial Measures Engineered Materials FQ4 '17 FQ1 '18 FQ2 '18 FQ3 '18 LTM Operating income $97 $88 $94 $94 $373 Add: restructuring and impairment Add: business optimization and other costs (1) Add: D&A Operating EBITDA $133 $119 $127 $129 $508 Pro forma for acquisition EBITDA and unrealized cost synergies - LTM EBITDA including unrealized cost synergies $508 Health, Hygiene, & Specialties FQ4 '17 FQ1 '18 FQ1 '18 FQ3 '18 LTM Operating income $52 $37 $41 $62 $192 Add: restructuring and impairment Add: business optimization and other costs (1) Add: D&A Operating EBITDA $106 $96 $110 $123 $435 Pro forma for acquisition EBITDA and unrealized cost synergies $65 LTM EBITDA including unrealized cost synergies $500 Consumer Packaging FQ4 '17 FQ1 '18 FQ1 '18 FQ3 '18 LTM Operating income $50 $38 $53 $60 $201 Add: restructuring and impairment Add: business optimization and other costs (1) Add: D&A Operating EBITDA $111 $95 $113 $122 $441 Pro forma for acquisition EBITDA and unrealized cost synergies - LTM EBITDA including unrealized cost synergies $ Note: Dollars in millions Expected synergies includes the Clopay acquisition in the HHS division (1) Includes integration expenses and other business optimization costs

41 Non-GAAP Financial Measures Operating Depreciation & Business Op. Operating LTM Operating (1) Quarterly Period Income Amortization Restructuring and Other EBITDA Net Sales EBITDA Margins Dec '15 $ 86 $ 139 $ 16 $ 35 $ 276 $ 1,612 Mar ' ,614 Jun ' ,645 Sept ' , % Dec ' , % Mar ' , % Jun ' , % Sept ' , % Dec ' , % Mar ' , % Jun ' , % 41 Note: Dollars in millions LTM operating EBITDA margins calculated by dividing the sum of the previous four quarters operating EBITDA by the sum of the previous four quarters net sales (1) Includes integration expenses and other business optimization costs

42 Non-GAAP Reconciliation Quarterly Period Ended Three Quarterly Periods Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Net income $110 $107 $363 $230 Add: other expense (income), net 3 (1) Add: interest expense, net Add: income tax expense (benefit) Operating income $216 $212 $567 $533 Add: non-cash amortization from 2006 private sale Add: restructuring and impairment Add: other non-cash charges (1) Add: business optimization costs (2) Adjusted operating income (6) $245 $240 $658 $618 Add: depreciation Add: amortization of intangibles (3) Operating EBITDA (6) $374 $364 $1,034 $977 Net income per diluted share $0.81 $0.79 Other expense (income), net 0.02 (0.01) Non-cash amortization from 2006 private sale Restructuring and impairment Other non-cash charges (4) Business optimization costs (2) Income tax impact on items above (5) (0.04) (0.05) Adjusted net income per diluted share (6) $0.96 $ Note: Dollars in millions. Unaudited * See next page for footnote disclosures

43 Non-GAAP Reconciliation (continued) (1) Other non-cash charges in the June 2018 quarter includes $6 million of stock compensation expense and other non-cash charges. Other non-cash charges in the June 2017 quarter primarily includes $5 million of stock compensation expense along with other non-cash charges. (2) Includes integration expenses and other business optimization costs. (3) Amortization excludes non-cash amortization from the 2006 private sale of $7 million and $8 million for the June 2018 and June 2017 quarters, respectively. (4) Other non-cash charges excludes $6 million and $5 million of stock compensation expense for the quarter ended June 30, 2018 and July 1, 2017, respectively. (5) Income tax effects on adjusted net income is calculated using 25% for the March 2018 quarter and 32% for the March 2017 quarter. The rates used for each represents the Company s expected effective tax rate for each respective period. (6) Supplemental financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States ( GAAP ). These non-gaap financial measures should not be considered as alternatives to operating or net income or cash flows from operating activities, in each case determined in accordance with GAAP. These non-gaap financial measures may be calculated differently by other companies, including other companies in our industry, limiting their usefulness as comparative measures. We define adjusted free cash flow as cash flow from operating activities less additions to property, plant, and equipment and payments under the tax receivable agreement. We believe adjusted free cash flow is useful to an investor in evaluating our liquidity because adjusted free cash flow and similar measures are widely used by investors, securities analysts, and other interested parties in our industry to measure a company s liquidity. We also believe adjusted cash flow is useful to an investor in evaluating our liquidity as it can assist in assessing a company s ability to fund its growth through its generation of cash. Adjusted EBITDA is used by our lenders for debt covenant compliance purposes. We also use Adjusted EBITDA and Operating EBITDAamong other measures to evaluate management performance and in determining performance-based compensation. Adjusted EBITDA and Operating EBITDA and similar measures are widely used by investors, securities analysts, and other interested parties in our industry to measure a company s performance. We also believe EBITDA and adjusted net income are useful to an investor in evaluating our performance without regard to revenue and expense recognition, which can vary depending upon accounting methods. 43

44 Dustin M. Stilwell Director, Investor Relations Berry Global Group, Inc. 101 Oakley Street, 3 rd floor P. O. Box 959 Evansville, IN Tel: ir@berryglobal.com 44