Smurfit Kappa Half-Year Report 2023

Key points:
• Revenue of €5.8 billion
• EBITDA of €1.1 billion and an EBITDA margin of 19.1%
• Return on capital employed of 19.0%
• Free Cash Flow of €119 million
• Interim dividend increased by 6% to 33.5 cent per share

The working capital outflow in 2023 was €262 million compared to €501 million in 2022. The outflow in 2023 was a combination of a significant decrease in creditors along with an increase in debtors, partly offset by a decrease in stock. The increase in debtors reflects higher box prices. The decrease in creditors reflects considerably lower recovered fibre, energy and other raw material costs. Working capital amounted to €1,326 million at 30 June 2023 and represented 11.7% of annualised revenue compared to 9.7% at 30 June 2022.

2023 First Half | Financial Performance

Revenue for the first half was €5,837 million, down 9% on the first half of 2022 or 7% lower on an underlying2
basis.

EBITDA for the first half was €1,113 million, down 5% on the first half of 2022. On an underlying basis, Group
EBITDA was down 3% year-on-year, with Europe down 4% and the Americas up 3%.

Operating profit before exceptional items for the first half of 2023 at €779 million was 7% lower than the
€839 million for the same period of 2022.

Exceptional items charged within operating profit in the first half of 2023 amounted to €34 million due to the
recycling of currency, an impairment loss on assets and other costs relating to the sale of our Russian operations.

There were no exceptional items charged within operating profit in the same period of 2022.