Investor Presentaiton
Key risks - Orora and its business
While the risks set out in this section are stated to relate to Orora and its business, investors should consider that some or all of these risks
will also apply to Saverglass and its business, which Orora will own following completion of the Acquisition
Changes in customer and consumer
preferences
Orora has strong relationships with key customers for the supply of packaging and point of purchase products and related services. These relationships are critical to Orora's success. The
loss of a key customer, or a significant quality issue, could have a negative impact on Orora's financial performance and position.
Changes in consumer preferences may result in some of Orora's existing product range becoming obsolete or new products not meeting sales and margin expectations. Consumer
preferences may be influenced by many factors, including Orora's inability to accurately predict demand, end-user preferences, regulation change and environmental risk, including climate
risk.
Supply chain
Disruption to Orora's supply chain caused by an interruption to the availability of key components, raw materials, technology failure, energy supply, or cost-effective transportation may
adversely impact delivery timelines for capital expenditure projects, sales and/or customer relations, resulting in unexpected delays or increased costs. Orora's business is sensitive to input
price risks, specifically energy and other commodities, in various forms and with varying degrees of impact. Although Orora seeks to mitigate these risks through various input pricing
strategies and pass-through mechanisms, there is no guarantee that Orora will be able to manage all future energy and commodity price movements. Failure to do so may adversely affect
Orora's operations and financial performance.
Competition
Orora operates in highly competitive markets with varying barriers to entry, industry structures and competitor motivational patterns. Orora's financial performance or operating margins
could be adversely affected if the actions of competitors or potential competitors become more effective, or if new competitors (including offshore competitors) enter the market and
Orora is unable to counter these actions. Some of Orora's competitors may now or in the future have access to greater financial resources than Orora. If Orora is unable to successfully
compete, its business, financial position and prospects may be adversely affected.
Business interruption and disruption
Cyber Security
Orora operates numerous sites across a number of countries. Circumstances such as natural disasters, pandemics, technology failure, cyber breaches, operational failure or industrial
disruption may occur, which may preclude key sites from operating. In these circumstances, Orora's operational and financial performance may be adversely impacted.
While Orora has implemented a number of measures to improve cyber defences, it is possible that measures taken by Orora to prevent technology breaches may prove to be inadequate.
Any accidental or deliberate security breaches or other unauthorised access to Orora's information technology systems or customer data may subject Orora to reputational damage, a loss
of confidence in the services provided, a disruption of services, claims by customers, loss of customers, theft and misappropriation of funds, legal action and regulatory scrutiny. Orora may
also be required to incur costs to rectify system vulnerabilities or introduce additional safeguards to minimise the risk of future security breaches.
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