希悅爾 (SEE) 2023 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the first quarter of 2023 Sealed Air Earnings Conference Call. (Operator Instructions). Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎來到 2023 年第一季度 Sealed Air 收益電話會議。 （操作員說明）。請注意，今天的會議正在錄製中。

I would now like to hand over the conference to our speaker today, Brian Sullivan.

我現在想把會議交給我們今天的發言人 Brian Sullivan。

Thank you, and good morning, everyone. With me today are Ted Doheny, our CEO; Dustin Semach, our CFO; and Susan Yang, our VP of Automation Finance and Treasurer.

謝謝大家，早上好。今天和我在一起的是我們的首席執行官 Ted Doheny；我們的首席財務官 Dustin Semach；和我們的自動化財務副總裁兼財務主管 Susan Yang。

Before we begin our call, I would like to note that we have provided a slide presentation with enhanced visuals to illustrate who we are, what we do and where we're going. Please visit sealedair.com where today's webcast and presentation can be downloaded from our Investors page.

在我們開始通話之前，我想指出，我們提供了具有增強視覺效果的幻燈片演示來說明我們是誰、我們做什麼以及我們要去哪裡。請訪問 sealedair.com，可以從我們的投資者頁面下載今天的網絡廣播和演示文稿。

Statements made during this call stating management's outlook or predictions for future periods are forward-looking statements. These statements are based solely on information that is now available to us. We encourage you to review the information in the section entitled Forward-Looking Statements in our earnings release and slide presentation, which applies to this call.

在本次電話會議中發表的聲明管理層對未來時期的展望或預測是前瞻性聲明。這些陳述僅基於我們現在可獲得的信息。我們鼓勵您在我們的收益發布和幻燈片演示文稿中查看標題為“前瞻性陳述”的部分中的信息，這些信息適用於本次電話會議。

Additionally, our future performance may differ due to a number of factors. Many of these factors are listed in our most recent annual report on Form 10-K and as revised and updated on our quarterly reports on Form 10-Q and current reports on Form 8-K, which you can also find on our website or on the SEC's website.

此外，由於多種因素，我們未來的表現可能會有所不同。其中許多因素列在我們最近的 10-K 表格年度報告中，並在我們的 10-Q 表格季度報告和 8-K 表格當前報告中進行了修訂和更新，您也可以在我們的網站或美國證券交易委員會的網站。

We discuss financial measures that do not conform to U.S. GAAP. You will find important information on our use of these measures and their reconciliation to U.S. GAAP in our earnings release. Included in the appendix of today's presentation, you will find U.S. GAAP financial results that correspond to the non-U.S. GAAP measures we reference throughout the presentation.

我們討論不符合美國公認會計原則的財務指標。您將在我們的收益發布中找到有關我們使用這些措施及其與美國公認會計原則的對賬的重要信息。在今天的演講附錄中，您會發現美國 GAAP 財務結果與我們在整個演講中引用的非美國 GAAP 指標相對應。

I will now turn the call over to Ted. Operator, please turn to Slide 3. Ted?

我現在將把電話轉給泰德。接線員，請轉到幻燈片 3。泰德？

Thank you, Brian, and thank you for joining our call. Today, we'll discuss our first quarter results, provide an update on Liquibox integration, our new corporate brand and our continuous journey to Reinvent SEE. After that, we'll open up the call for your questions.

謝謝你，Brian，也感謝你加入我們的電話會議。今天，我們將討論我們的第一季度業績，提供有關 Liquibox 集成、我們新的企業品牌以及我們不斷重塑 SEE 的最新進展。之後，我們將打開您的問題電話。

Starting with Slide 3, I'm excited to share that as part of our Reinvent journey, we are changing our corporate brand to SEE. Our new SEE brand brings clarity to our markets, customers and people of who we are, what we do and where we are going. We are a market-driven, customer-first solutions company. The new logo unites automation, digital and packaging, with the full circle representing SEE's Net Positive Circular Ecosystem and our purpose to make our world better than we find it. We enter a new phase in our journey to lead the industry by redefining what packaging does and can do. The new brand positions SEE as a world-class, high-quality growth company solving critical packaging challenges unlike anyone else. Whenever our customers have a packaging issue or opportunity, we will be at the table in top of mind.

從幻燈片 3 開始，我很高興與大家分享，作為我們重塑旅程的一部分，我們正在將我們的企業品牌更改為 SEE。我們的新 SEE 品牌讓我們的市場、客戶和人們清楚地了解我們是誰、我們做什麼以及我們要去哪裡。我們是一家以市場為導向、客戶至上的解決方案公司。新標誌結合了自動化、數字化和包裝，完整的圓圈代表 SEE 的淨正循環生態系統和我們讓我們的世界比我們發現的更美好的目標。通過重新定義包裝的功能和能力，我們進入了引領行業的新階段。新品牌將 SEE 定位為世界級、高質量的成長型公司，以與眾不同的方式解決關鍵的包裝挑戰。每當我們的客戶遇到包裝問題或機會時，我們都會站在第一位。

Now moving to Slide 4. We'd like to share how we are creating high-quality growth. We break down our growth by geography, market, product and MySEE, our online digital platform. In the first quarter, our digital online sales grew to 14% of total company sales, representing a sequential increase from 5% in Q3 and 10% in Q4 of 2022. This rapid growth reflects the speed of our digital transformation and our ability to adapt to the changing needs of our customers.

現在轉到幻燈片 4。我們想分享我們如何創造高質量的增長。我們按地域、市場、產品和在線數字平台 MySEE 細分我們的增長。第一季度，我們的數字在線銷售額增長到公司總銷售額的 14%，較 2022 年第三季度的 5% 和第四季度的 10% 連續增長。這種快速增長反映了我們數字化轉型的速度和我們的適應能力以滿足客戶不斷變化的需求。

You can see our top 13 markets. We continue to reinvent the company from product-based to a market-driven, customer-first solutions company. The fastest-growing markets was Fluids and Liquids, which grew double digits in the quarter before counting Liquibox. With Liquibox, this market represents close to 10% of company sales in the quarter.

您可以看到我們的前 13 個市場。我們繼續將公司從以產品為基礎轉變為以市場為導向、客戶至上的解決方案公司。增長最快的市場是流體和液體，在計算 Liquibox 之前，該市場在本季度增長了兩位數。對於 Liquibox，該市場佔本季度公司銷售額的近 10%。

Our Consumer Ready solutions are designed to meet the evolving needs of food processors, retailers and brand owners if they seek to respond to shifting consumer preferences and changing shopping patterns. Through our innovative solutions, we integrate high-performance, sustainable materials, state-of-the-art trays and pouches and advanced automation technologies to deliver versatile packaging formats that can be tailored to a wide range of products.

我們的 Consumer Ready 解決方案旨在滿足食品加工商、零售商和品牌所有者不斷變化的需求，如果他們尋求響應不斷變化的消費者偏好和不斷變化的購物模式。通過我們的創新解決方案，我們整合了高性能、可持續的材料、最先進的托盤和包裝袋以及先進的自動化技術，以提供可針對各種產品量身定制的多功能包裝形式。

We leveraged digital packaging capabilities to enhance the overall impact and appeal of our customers' products. This vertical space represents 1 of our largest growth markets, with more than $10 billion in addressable opportunities. Drawing on our market-leading CRYOVAC material science and SEE automation expertise, we are able to expand our reach deeper into the proteins market encompassing fresh red meat, smoked and processed meats, poultry and seafood. Our capabilities also extend to other food markets, allowing us to offer an unparalleled level of flexibility and customization to our valued customers. We are driving continued innovation and growth in this space with our highly differentiated products and packaging solutions.

我們利用數字包裝功能來增強客戶產品的整體影響力和吸引力。這個垂直空間代表了我們最大的增長市場之一，擁有超過 100 億美元的潛在機會。憑藉我們市場領先的 CRYOVAC 材料科學和 SEE 自動化專業知識，我們能夠更深入地進入蛋白質市場，包括新鮮紅肉、熏制和加工肉類、家禽和海鮮。我們的能力還擴展到其他食品市場，使我們能夠為我們尊貴的客戶提供無與倫比的靈活性和定制化水平。我們通過高度差異化的產品和包裝解決方案推動這一領域的持續創新和增長。

The next vertical, Fluids and Liquids, now representing 10% of our company sales, is our highest margin, fastest-growing product line. With CRYOVAC and Liquibox technologies converging, we are well positioned to capitalize on new opportunities in areas such as ready-to-drink liquids, consumer packaged goods, sauces and condiments, wine and spirits and many more. We're disrupting the rigid container market, providing customers with lower cost, higher value and more sustainable solutions. Our goal is to exceed $1 billion in revenue from this vertical by 2027. We are now driving internally to achieve this by 2025.

下一個垂直領域是流體和液體，現在占我們公司銷售額的 10%，是我們利潤率最高、增長最快的產品線。隨著 CRYOVAC 和 Liquibox 技術的融合，我們可以很好地利用即飲液體、包裝消費品、醬汁和調味品、葡萄酒和烈酒等領域的新機遇。我們正在顛覆剛性容器市場，為客戶提供成本更低、價值更高和更可持續的解決方案。我們的目標是到 2027 年這個垂直領域的收入超過 10 億美元。我們現在正在內部推動到 2025 年實現這一目標。

The third growth vertical for us is our Automated Protective Solutions, which represents approximately 35% of our business today, focusing on a variety of markets and customers ranging from industrial to e-commerce fulfillment. I will describe shortly how we are working to broaden and optimize our existing portfolio while expanding market penetration.

我們的第三個垂直增長點是我們的自動化保護解決方案，它約占我們今天業務的 35%，專注於從工業到電子商務履行的各種市場和客戶。我將簡要介紹我們如何努力擴大和優化我們現有的產品組合，同時擴大市場滲透率。

Now moving to Slide 5 for visual depiction of a fully automated form fill-and-seal system that is currently being commissioned by 1 of our large wine customers, targeting the fast-growing $100 million wine and box market.

現在轉到幻燈片 5，以直觀地描述我們的一位大型葡萄酒客戶目前正在委託的全自動表格填充和密封系統，目標是快速增長的價值 1 億美元的葡萄酒和盒子市場。

Compared with traditional bottling operations, our automated solution requires less than 1/10 of the footprint and half the cost. Our innovative bag-in-box solutions reduce waste and preserve the freshness of the product longer than any of the traditional packaging options without affecting its flavor or quality. This automated system combines our high-performance barrier CRYOVAC materials, fitment capabilities and our engineering expertise to bring the full solution into the box.

與傳統裝瓶操作相比，我們的自動化解決方案只需要不到 1/10 的佔地面積和一半的成本。我們創新的盒中袋解決方案可減少浪費，並比任何傳統包裝選項更長時間地保持產品的新鮮度，而不會影響其風味或質量。該自動化系統結合了我們的高性能阻隔 CRYOVAC 材料、裝配能力和我們的工程專業知識，將完整的解決方案集成到盒子中。

Starting on the left of this slide, we show the critical process steps of the system, including bag forming, fitment attaching, wine filling and bag sealing. I'd like to highlight the fitment attachment process on the bottom left of the picture. Our engineers have developed a novel, high-speed method of attaching the fitment while the bag is being formed, eliminating leakage and oxygen content by avoiding punching a hole.

從這張幻燈片的左側開始，我們展示了系統的關鍵工藝步驟，包括製袋、附件連接、葡萄酒灌裝和袋密封。我想在圖片的左下方突出顯示配件連接過程。我們的工程師開發了一種新穎、高速的方法，可以在袋子成型時連接配件，通過避免打孔來消除洩漏和氧氣含量。

Moving across the slide, you can see an automated box-making operation. The filled bags are placed in this digitally-printed fabricated box in a touchless process.

在幻燈片上移動，您可以看到自動制盒操作。裝滿的袋子以非接觸式工藝放置在這個數字印刷的製造盒子中。

On the upper right corner, we show our end product in a restaurant environment where wine boxes are available for single-serve uses. The single pour of the wine from the bag enables extending the shelf life from hours to weeks, reducing waste and spoilage, which can represent over 30% of our restaurants' wine cost. This cutting-edge system solution, valued at $3 million, provides our customers with less than a 3-year payback. This also represents the highest solution multiplier in our portfolio, exceeding 25 times. We are well positioned to drive widespread adoption of the system.

在右上角，我們在餐廳環境中展示了我們的最終產品，其中酒盒可供單次使用。從袋子裡倒出葡萄酒可以將保質期從幾小時延長到幾週，減少浪費和變質，這可能占我們餐廳葡萄酒成本的 30% 以上。這個價值 300 萬美元的尖端系統解決方案為我們的客戶提供了不到 3 年的回報。這也代表了我們產品組合中最高的解決方案乘數，超過 25 倍。我們有能力推動該系統的廣泛採用。

By integrating SEE automation, CRYOVAC materials and Liquibox innovations, we are driving powerful synergies.

通過整合 SEE 自動化、CRYOVAC 材料和 Liquibox 創新，我們正在推動強大的協同效應。

Moving to Slide 6. We outline what we are doing to turn around our Automated Protective Solutions platform with an estimated addressable market of $15 billion. By leveraging SEE automation and our industry-leading materials, we solve our customers' pressing packaging challenges such as safety, labor and productivity. Our portfolio of brand solutions include BUBBLE WRAP, Instapak, AUTOBAG, Auto Boxing, among others, is the widest in the industry. We're actively working to broaden our portfolio by bringing our total solution strategy across our platforms, aggressively expanding our fiber-based solutions as well as our equipment agnostic systems. This is opening new opportunities for customer engagement and growth.

轉到幻燈片 6。我們概述了我們正在做些什麼來扭轉我們的自動化保護解決方案平台，估計潛在市場為 150 億美元。通過利用 SEE 自動化和我們行業領先的材料，我們解決了客戶面臨的緊迫包裝挑戰，例如安全、勞動力和生產力。我們的品牌解決方案組合包括 BUBBLE WRAP、Instapak、AUTOBAG、Auto Boxing 等，是業內最廣泛的。我們正在積極努力擴大我們的產品組合，將我們的整體解決方案戰略引入我們的平台，積極擴展我們基於光纖的解決方案以及我們的設備不可知系統。這為客戶參與和增長開闢了新的機會。

Our MySEE platform allows us to expand our customer reach into new segments while lowering our sales and service costs and making it easier to do business with us. Our online studios create new ways to interact with our customers, providing digital printing, packaging design and services.

我們的 MySEE 平台使我們能夠將客戶範圍擴大到新的細分市場，同時降低我們的銷售和服務成本，並使與我們開展業務更加容易。我們的在線工作室創造了與客戶互動的新方式，提供數字印刷、包裝設計和服務。

On Slide 7, we can see a solution to a major challenge we were asked to fix by Continental and our 3PL partner, UPS. In the last quarter, we generated $2 million in revenue from an Auto Wrap tire packaging system, which addressed the issue of shipping individual tires with conveyable solutions for common carriers. With this innovative tire packaging solution, we were able to eliminate safety concerns for the carrier to achieve a greater than fivefold improvement in throughput, reduced labor by 50% and create an entirely new revenue stream that was previously unattainable. Each individual tire is marked with an RFID mark, allowing for track and trace. The tires are wrapped in CRYOVAC technology film that is fully recyclable, highly durable and 65% wider than the previous packaging materials. This solution represents an opportunity to capture more than $50 million in the individual tire packaging market.

在幻燈片 7 上，我們可以看到大陸集團和我們的 3PL 合作夥伴 UPS 要求我們解決的一項重大挑戰的解決方案。在上個季度，我們從 Auto Wrap 輪胎包裝系統中獲得了 200 萬美元的收入，該系統解決了為普通承運人提供運輸解決方案的運輸單個輪胎的問題。借助這種創新的輪胎包裝解決方案，我們能夠消除承運人的安全顧慮，使吞吐量提高五倍以上，減少 50% 的勞動力，並創造了以前無法實現的全新收入來源。每個單獨的輪胎都標有 RFID 標記，便於跟踪和追踪。輪胎包裹在 CRYOVAC 技術薄膜中，該薄膜完全可回收、高度耐用且比以前的包裝材料寬 65%。該解決方案代表了在單個輪胎包裝市場獲得超過 5000 萬美元的機會。

Moving to Slide 8, showing our SEE operating model. Fueled by Reinvent SEE 2.0, together with the Liquibox acquisition, our growth trajectory remains the same despite 2023's near-term recessionary challenges. For this year, we anticipated a very challenging first half. With the first quarter in line with our expectations, we continue to execute our plan to drive profitable growth in the second half of the year on the back of a broad market recovery.

轉到幻燈片 8，展示我們的 SEE 運營模式。在重塑 SEE 2.0 以及收購 Liquibox 的推動下，儘管 2023 年面臨近期經濟衰退挑戰，但我們的增長軌跡保持不變。對於今年，我們預計上半年將非常具有挑戰性。由於第一季度符合我們的預期，我們將繼續執行我們的計劃，在廣泛的市場復甦的支持下推動下半年的盈利增長。

In Q1, we completed the acquisition of Liquibox. Our traditional Fluids and Liquids business was up double-digit year-over-year in the first quarter. Liquibox is performing on track with expectations thus far, and we expect to realize the cost synergies laid out in our deal thesis.

第一季度，我們完成了對 Liquibox 的收購。我們傳統的流體和液體業務在第一季度同比增長了兩位數。到目前為止，Liquibox 的表現符合預期，我們希望實現我們交易主題中提出的成本協同效應。

Reinvent SEE 2.0 cost reduction efforts are on track to reduce expenses in line with our $35 million to $45 million target within 12 to 18 months. SEE automation revenue continues to fuel our growth. Automation sales were up 5% in constant dollars for the quarter driven by automated protein solutions. We are on track to deliver more than $525 million sales for the year. In a tough quarter, Fluids and Automation continue to drive growth in a recessionary environment.

Reinvent SEE 2.0 成本削減工作有望在 12 至 18 個月內減少開支，以實現我們 3500 萬至 4500 萬美元的目標。 SEE 自動化收入繼續推動我們的增長。在自動化蛋白質解決方案的推動下，本季度自動化銷售額按不變美元計算增長了 5%。我們今年有望實現超過 5.25 億美元的銷售額。在艱難的季度，流體和自動化繼續在經濟衰退的環境中推動增長。

Now, I'd like to turn it over to Dustin to review our financial results. But before I do that, I'd like to give him an official welcome and share that we're really excited to have Dustin on board. Dustin?

現在，我想把它交給達斯汀來審查我們的財務業績。但在我這樣做之前，我想正式地歡迎他並分享我們對達斯汀的加入感到非常興奮。達斯汀？

Thank you, Ted, and good morning, everyone. Today, I will go over a couple of opening remarks before moving to the first quarter results and our outlook for 2023.

謝謝你，泰德，大家早上好。今天，在談到第一季度業績和我們對 2023 年的展望之前，我將重溫幾句開場白。

First, I'm really excited to be joining SEE at a pivotal time during its transformation. I'm impressed by what Ted and the rest of the management team have been able to accomplish over the past few years. I see the market opportunity ahead of us and look forward to leveraging my background in digital to help accelerate our journey to becoming a world-class market-driven automation, digital and sustainable packaging solutions company.

首先，我很高興能在SEE轉型的關鍵時刻加入SEE。泰德和管理團隊其他成員在過去幾年所取得的成就給我留下了深刻印象。我看到了擺在我們面前的市場機遇，並期待利用我在數字領域的背景來幫助加快我們成為世界級市場驅動型自動化、數字化和可持續包裝解決方案公司的進程。

Now moving to first quarter results. Let's turn to Slide 9. In the quarter, on a constant currency basis, net sales were down 2% and adjusted EBITDA of $267 million was down 17% compared to a very strong first quarter last year. Adjusted earnings per share in the quarter of $0.74 were down 33% compared to a year ago on a constant currency basis.

現在轉到第一季度的結果。讓我們轉到幻燈片 9。本季度，按固定匯率計算，淨銷售額下降 2%，調整後的 EBITDA 為 2.67 億美元，與去年第一季度的強勁表現相比下降 17%。按固定匯率計算，本季度調整後每股收益為 0.74 美元，較上年同期下降 33%。

On Slide 10, we review our first quarter net sales by segment and by region. In constant dollars, net sales were down 2%, with 9% growth in Food, while Protective was down 17%. By region, we grew EMEA by 4%, offset by declines in Americas of 4% and APAC of 1%. On Slide 11, we summarized the first quarter performance. Liquibox contributed 4% to top line sales or approximately $57 million, but was more than offset by organic declines driven by the recessionary market backdrop and continued destocking in Protective as well as some weakness in food retail end markets.

在幻燈片 10 上，我們按部門和地區回顧了第一季度的淨銷售額。按不變美元計算，淨銷售額下降了 2%，食品增長了 9%，而防護產品下降了 17%。按地區劃分，我們在歐洲、中東和非洲地區增長了 4%，被美洲 4% 和亞太地區 1% 的下滑所抵消。在幻燈片 11 上，我們總結了第一季度的業績。 Liquibox 貢獻了 4% 的總銷售額或約 5700 萬美元，但被經濟衰退的市場背景和 Protective 的持續去庫存以及食品零售終端市場的一些疲軟所導致的有機下降所抵消。

First quarter adjusted EBITDA of $267 million, which included $13 million contribution from Liquibox, decreased $60 million or 18% compared to last year, with margins of 19.8%, down 330 basis points. This performance was mainly driven by lower volumes and the resulting unfavorable operating leverage primarily within Protective. As it relates to adjusted earnings per diluted share in the first quarter of $0.74, our adjusted tax rate was 24% compared to 25.2% in the same period last year. We repurchased approximately $80 million or 1.5 million shares in the first quarter. Our weighted average diluted shares outstanding in the first quarter of 2023 was $144.8 million. At quarter end, we had approximately $537 million remaining under our authorized share repurchase program.

第一季度調整後的 EBITDA 為 2.67 億美元，其中包括 Liquibox 貢獻的 1300 萬美元，與去年同期相比減少 6000 萬美元或 18%，利潤率為 19.8%，下降 330 個基點。這一業績主要是由於銷量下降以及由此產生的不利運營槓桿，主要是在 Protective 內。由於第一季度調整後每股攤薄收益為 0.74 美元，我們調整後的稅率為 24%，而去年同期為 25.2%。我們在第一季度回購了大約 8000 萬美元或 150 萬股股票。我們在 2023 年第一季度的加權平均稀釋流通股為 1.448 億美元。截至季度末，我們的授權股票回購計劃剩餘約 5.37 億美元。

Turning to quarterly segment results on Slide 12, starting with Food. In the first quarter, Food net sales of $853 million were up 1% on an organic basis which consisted of 4% from price realization offset by volume declines of 3%, primarily from food retail softness, partially offset by strong volumes in Automation, Fluids and Liquids. Food adjusted EBITDA of $195 million in the first quarter was relatively flat in constant dollars compared to last year with margins at 22.8%, down 200 basis points, mainly due to unfavorable year-over-year impact from net price realization, lower volumes and related unfavorable operating leverage.

轉向幻燈片 12 上的季度分部結果，從食品開始。第一季度，食品淨銷售額為 8.53 億美元，有機增長 1%，其中 4% 來自價格實現，被銷量下降 3% 所抵消，主要來自食品零售疲軟，部分被自動化、流體的強勁銷量所抵消和液體。第一季度食品調整後 EBITDA 為 1.95 億美元，與去年同期相比持平，利潤率為 22.8%，下降 200 個基點，這主要是由於淨價實現、銷量下降和相關的同比不利影響不利的經營槓桿。

Protective first quarter net sales of $496 million were down 17% in constant dollars, driven by volume declines from recessionary pressures in the industrial fulfillment markets and continued destocking activities from our channel partners. We see these headwinds continuing in the second quarter, but expect an inflection point in the second half with more favorable market conditions, easier comparables and recovery from areas such as China as they normalize from recent reopenings from lockdowns. Protective adjusted EBITDA of $80 million was down 35% in constant dollars in the first quarter with margins of 16.2%, down 470 basis points due to lower volumes and associated operational leverage.

受保護的第一季度淨銷售額 4.96 億美元按不變美元計算下降 17%，這是由於工業履行市場的衰退壓力導致銷量下降以及我們的渠道合作夥伴持續進行去庫存活動。我們認為這些不利因素將在第二季度繼續存在，但預計下半年將出現拐點，市場條件更有利，可比性更容易以及中國等地區從最近解除封鎖後重新開放正常化中復蘇。第一季度保護性調整後 EBITDA 為 8000 萬美元，按固定美元計算下降 35%，利潤率為 16.2%，下降 470 個基點，原因是銷量和相關運營槓桿下降。

Now let's turn to free cash flow on Slide 13. In the first quarter, free cash flow with a use of cash of $13 million compared to $19 million use of cash in the same period a year ago. Slight improvement in free cash flow was driven primarily by improved working capital performance.

現在讓我們轉向幻燈片 13 上的自由現金流。第一季度，使用現金的自由現金流為 1300 萬美元，而去年同期為 1900 萬美元。自由現金流的小幅改善主要是由於營運資本績效的改善。

On Slide 14, we outlined our purpose-driven capital allocation strategy focused on maximizing value for our shareholders. As anticipated, we closed out the first quarter with a pro forma net leverage ratio of 3.7x. We expect to use free cash flow generation to delever throughout the year, estimating approximately 3.5x or below by the end of 2023 and approximately 3x by the end of 2024.

在幻燈片 14 上，我們概述了以目標為導向的資本配置戰略，重點是為股東實現價值最大化。正如預期的那樣，我們以 3.7 倍的備考淨槓桿率結束了第一季度。我們預計將在全年使用自由現金流量去槓桿化，估計到 2023 年底約為 3.5 倍或以下，到 2024 年底約為 3 倍。

Let's turn to Slide 15 to review our 2023 outlook. We are reiterating our full year guidance, which includes the following. We expect net sales to be in the range of $5.85 billion to $6.1 billion, which at the midpoint assumes mid-single-digit growth on a reported basis and low single-digit growth organically. We expect Liquibox to contribute between approximately $340 million and $360 million in sales for 2023, given 11 months under our ownership.

讓我們轉到幻燈片 15 來回顧我們的 2023 年展望。我們重申我們的全年指導，其中包括以下內容。我們預計淨銷售額將在 58.5 億美元至 61 億美元之間，中點假設報告基礎上的中個位數增長和低個位數的有機增長。在我們擁有 11 個月的時間裡，我們預計 Liquibox 將在 2023 年貢獻約 3.4 億美元至 3.6 億美元的銷售額。

We expect full year adjusted EBITDA to be in the range of $1.25 billion to $1.3 billion, which assumes adjusted EBITDA margins of approximately 21%. Full year adjusted EPS is expected to be in the range of $3.50 to $3.80. Lastly, we expect full year 2023 free cash flow in the range of $475 million to $525 million, which implies a free cash flow conversion of greater than 90%. This range excludes $175 million tax deposit to the IRS in April with respect to a tentative settlement agreement reached in December of 2022.

我們預計全年調整後的 EBITDA 將在 12.5 億美元至 13 億美元之間，假設調整後的 EBITDA 利潤率約為 21%。全年調整後每股收益預計在 3.50 美元至 3.80 美元之間。最後，我們預計 2023 年全年的自由現金流將在 4.75 億美元至 5.25 億美元之間，這意味著自由現金流轉換率將超過 90%。這一範圍不包括 4 月份根據 2022 年 12 月達成的暫定和解協議向美國國稅局繳納的 1.75 億美元稅金。

As we look ahead to the rest of 2023, we expect the second quarter to be a slight improvement from the first end quarter impacted by ongoing destocking activities that we expect to ease by the end of the first half. As Ted mentioned earlier, we remain focused on driving growth in the second half, driven by accelerating momentum within our Automation, Fluids and liquids businesses, coupled with a broader market recovery, especially within Protective.

展望 2023 年剩餘時間，我們預計第二季度將比第一季度略有改善，這是受到持續的去庫存活動的影響，我們預計到上半年末這些活動將有所緩解。正如 Ted 之前提到的，我們仍然專注於推動下半年的增長，這得益於我們的自動化、流體和液體業務的加速勢頭，以及更廣泛的市場復甦，尤其是在 Protective 領域。

With that, let me now pass the call back to Ted for closing remarks. Ted, over to you.

有了這個，現在讓我將電話轉回給 Ted 以作結束語。泰德，交給你了。

Thanks, Dustin. In summary, we had a tough quarter and expect market softness to continue through the first half. We're staying the course on our strategy, driving automation, digital and sustainable packaging solutions now under SEE, our new corporate brand. For the year, we have a strong growth and cost actions in place to deal with the current recessionary environment. Our Liquibox performance is on track to exceed expectations to drive growth for the business in 2023.

謝謝，達斯汀。總而言之，我們度過了一個艱難的季度，預計上半年市場將持續疲軟。我們將堅持我們的戰略，推動自動化、數字和可持續包裝解決方案，現在我們的新企業品牌 SEE 下。今年，我們採取了強勁的增長和成本行動來應對當前的衰退環境。我們的 Liquibox 業績有望超出預期，推動 2023 年業務增長。

With that, I'll open up the call for questions. Operator, we'd like to begin the Q&A.

有了這個，我會打開問題的電話。接線員，我們想開始問答。

(Operator Instructions) Our first question comes from the line of Adam Samuelson of Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的亞當薩繆爾森。

Yes. So I was hoping to maybe just get a little bit more color on the volume trends kind of by region, by end market as you think about the balance of the year? Appreciate that the comps get considerably easier as you move into the second half, but help us think about the kind of visibility you have today from backlog, from kind of orders and any customer activity that's really pointing to an improvement in acceleration in volumes and obviously that drives to the bottom line, so that's driving a big step-up in profitability.

是的。因此，我希望在您考慮今年餘下的時間時，按地區、按終端市場來了解銷量趨勢的更多顏色？感謝您進入下半年時，補償變得相當容易，但請幫助我們考慮您今天從積壓訂單、訂單類型和任何客戶活動中獲得的可見性，這些活動確實表明銷量加速增長，而且顯然這推動了底線，因此這推動了盈利能力的大幅提升。

Yes. Adam, this is Susan. Let me first give you some numbers that we outlined in our guidance there, then Ted can jump in to give some color on the business side.

是的。亞當，這是蘇珊。讓我先給你一些我們在指南中概述的數字，然後 Ted 可以跳進來給業務方面一些顏色。

You specifically ask for volume and wanted the color on the region-wise. Q1, we definitely see a very tough quarter there with Food overall volume down 3%, and the volume down is driven by the weak retail markets which we see across the board globally. EMEA particularly is harder than the rest of the region there. In APAC, we all know China through the lockdown and opening up has been chaotic. There's also an impact there. On the Protective side, our volume for Q1 is negative 18% compared with the negative 20% in Q4. This was also in line with the end market performance we're seeing. Of course, destocking is a big part of it. And the destocking, very heavy in Americas for the e-commerce fulfillment segment, but overall, the weak overall market is across the board on all regions as well.

您特別要求體積並且想要區域方面的顏色。第一季度，我們肯定會看到一個非常艱難的季度，食品總銷量下降了 3%，而銷量下降是由我們在全球範圍內看到的零售市場疲軟所推動的。 EMEA 尤其比該地區的其他地區更難。在亞太地區，我們都知道中國通過封鎖和開放一直很混亂。那裡也有影響。在保護方面，我們第一季度的成交量為負 18%，而第四季度為負 20%。這也符合我們所看到的終端市場表現。當然，去庫存是其中很大一部分。去庫存，在美洲的電子商務履行領域非常嚴重，但總體而言，所有地區的整體市場都普遍疲軟。

So Ted, maybe you wanted to add a little bit on the results.

所以 Ted，也許你想在結果上添加一點。

Yes. Just to add in some more color behind the numbers. So basically, start with Food. If we look at, again, how we're framing up first half to second half, as Susan highlighted, we have seen Food flat. And on the second half, what we're actually in the guide, we see Food to be up slightly. And where we're getting that is we definitely see it with we have still the issue with our specialty resins, getting that share back. We've gotten some, but that will probably go through the year with most of that gain back coming in the first half, but we still have some more to do in the second half.

是的。只是在數字後面添加更多顏色。所以基本上，從食物開始。如果我們再次審視我們如何將上半場和下半場構建起來，正如 Susan 強調的那樣，我們已經看到 Food 持平。而在下半年，我們在指南中實際看到的是食品略有上漲。我們得到的是我們肯定看到它，我們的特種樹脂仍然存在問題，重新獲得份額。我們已經得到了一些，但這可能會持續一年，大部分收益會在上半年出現，但我們在下半年還有更多工作要做。

We have seen on the Food, the Automation in the first quarter actually up double digit in the first quarter, so we see continued gain and also the market share gain coming through. And then the last piece of seeing Liquibox really making a stronger impact on the numbers in the second half.

我們在食品方面看到，第一季度的自動化實際上在第一季度增長了兩位數，因此我們看到持續增長以及市場份額增長。然後最後看到 Liquibox 確實對下半場的數據產生了更大的影響。

On the Protective side, that's the area that's why I went into the detail on the turnaround. Really, the heavy destocking, we actually stock, we saw this starting last year when we saw the volumes in the third quarter, fourth quarter. That's going to be working its way through the quarter. Some of the markets there that we're really seeing hit. Susan mentioned China, but also the electronics markets. We see that as a recovery, again, on the second half, the comps are going to be much easier, and we also see the automation coming in to help our second half.

在保護方面，這就是為什麼我要詳細介紹轉變的原因。真的，大量去庫存，我們實際上有庫存，我們從去年開始看到了這一點，當時我們看到了第三季度、第四季度的銷量。這將在本季度發揮作用。我們真正看到的一些市場受到了衝擊。蘇珊提到了中國，也提到了電子市場。我們再次將其視為恢復，在下半場，比賽將變得更加容易，我們也看到自動化將幫助我們的下半場。

We went back and we looked at 5 years on this. We said, "Hey, with pre-Covid, what do the volumes look like on the Protective? " And so in '19, actually on the second half, you see in our numbers to get the materials back to where we were in '19. That's what's in the guide. And then adding in the automation and our new products, we feel that, that second half is doable. It's going to be a double-digit growth in the second half. Still Protective will be slightly negative, though, for the year.

我們回過頭來看了 5 年。我們說，“嘿，在 Covid 之前，Protective 上的體積是什麼樣的？”所以在 19 年，實際上是在下半年，你會在我們的數字中看到將材料恢復到我們在的位置19.這就是指南中的內容。然後添加自動化和我們的新產品，我們認為下半年是可行的。下半年將實現兩位數的增長。不過，今年的 Still Protective 將略有負面影響。

Okay, next question.

好的，下一個問題。

Our next question comes from the line of George Staphos of Bank of America Securities, Inc.

我們的下一個問題來自美國銀行證券公司的 George Staphos。

This is actually (inaudible) sitting in for George this morning. We had conflicting conference calls.

這實際上是（聽不清）今天早上代替 George 發言。我們有相互矛盾的電話會議。

So I appreciate you covered this in the prepared remarks and a little bit on the last question. But I guess just in terms of automation, what are you seeing in terms of marginal trends there, particularly given the weak macro? And are you seeing any difference in trends as it relates to Food or Protective on the automation front?

所以我感謝你在準備好的評論中涵蓋了這一點，並在最後一個問題上做了一些介紹。但我想就自動化而言，你在邊際趨勢方面看到了什麼，特別是考慮到疲軟的宏觀經濟？在自動化方面，您是否看到與食品或防護相關的趨勢有何不同？

Yes. Good question.

是的。好問題。

The automation definitely is where we're driving the business, and on -- between the 2, as I highlighted on the Food side, we actually see it up 13% in the quarter. We have a lot of projects in place.

自動化絕對是我們推動業務發展的地方——在兩者之間，正如我在食品方面強調的那樣，我們實際上看到它在本季度增長了 13%。我們有很多項目。

On the Protective side, we actually -- the first quarter was flat. We had the issue with our APS business, which was booming last year. We have some that also got hit by the destocking. We see, though, the growth on the automation on the Protective side recovering in the second half.

在保護方面，我們實際上 - 第一季度持平。我們的 APS 業務存在問題，該業務去年蓬勃發展。我們有一些也受到去庫存的打擊。不過，我們看到下半年保護方面的自動化增長正在恢復。

With the automation, we're also struggling right now a little bit with the customers right now in the recessionary environment holding CapEx, so we're fighting through that. But we're actually going to see our customers talking through. This is where we can really help our customers the most right now in automation. So we still think the automation growth for the year will be quite strong.

通過自動化，我們現在也在與持有資本支出的衰退環境中的客戶進行一些鬥爭，所以我們正在努力解決這個問題。但我們實際上會看到我們的客戶進行交談。這是我們現在真正可以在自動化方面為客戶提供最大幫助的地方。所以我們仍然認為今年的自動化增長將相當強勁。

And again, mentioning on the Liquibox, we see the opportunity on the Liquids business. More on the traditional CRYOVAC liquid side of the business on automation, but we're seeing actually orders progressing right now in the first quarter, more coming in the second quarter and the second half. So the automation on the Liquid side is actually a real strong positive for us.

再次提到 Liquibox，我們看到了液體業務的機會。更多關於自動化業務的傳統 CRYOVAC 液體方面，但我們實際上看到第一季度的訂單正在取得進展，第二季度和下半年會有更多訂單。所以 Liquid 方面的自動化實際上對我們來說是一個非常強大的積極因素。

Just to add on, even though Ted talks about see some customers are pulling back on CapEx project, in Q1, we continue to see bookings over pacing the revenue, and we are on track to hit the $525 million for the full year.

補充一下，儘管 Ted 談到看到一些客戶正在撤回資本支出項目，但在第一季度，我們繼續看到預訂量超過了收入，我們有望在全年達到 5.25 億美元。

Thank you, Susan. Next question, please.

謝謝你，蘇珊。請下一個問題。

Our next question is from the line of Ghansham Panjabi of Baird.

我們的下一個問題來自 Baird 的 Ghansham Panjabi。

This is actually Matt Krueger sitting in for Ghansham.

這實際上是 Matt Krueger 代替 Ghansham。

I guess I just wanted to expand on the prior question. So given the shift in the operating backdrop towards a more recessionary outlook, can you talk a little bit more about how this has impacted equipment sales, customer willingness to invest? I know you mentioned kind of a hold off in CapEx spending. Maybe can you quantify the impact there on the quarter? And then does it have any impact on premium product sales across your portfolio or any trade-down impact? That detail would be helpful.

我想我只是想擴展之前的問題。因此，鑑於運營背景向更加衰退的前景轉變，您能否多談談這對設備銷售和客戶投資意願的影響？我知道你提到了資本支出支出的推遲。也許您可以量化該季度的影響？然後它對您的產品組合中的優質產品銷售有任何影響或任何折衷影響嗎？這個細節會很有幫助。

Matt, it's kind of -- that conflicted couple of points, so let me just give that more summary on the automation. And then if we want to talk a little bit about the market on the trade down, and that's probably where you're addressing in the meat business.

馬特，這有點——矛盾的幾點，所以讓我對自動化做更多的總結。然後，如果我們想談一談關於貿易的市場，那可能就是你在肉類業務中要解決的問題。

But as far as the CapEx piece, we're actually not seeing that slows down because where we have automation, we're really driving just significant savings for our customers. So they're running through cost issues, they're running through labor issues, so the automation is still quite strong. A little bit of the slowdown is our backlogs were so high on the Protective side. For instance, our Auto Boxing, we had almost a 50-week lead time. AUTOBAG was up to months. Those lead times are now down as part of the destocking and maybe the over buy, so we still see the demand very, very strong in our automation.

但就資本支出而言，我們實際上並沒有看到它放緩，因為在我們擁有自動化的地方，我們真的只是在為我們的客戶節省大量資金。所以他們正在經歷成本問題，他們正在經歷勞動力問題，所以自動化仍然非常強大。一點點放緩是我們在保護方面的積壓如此之高。例如，我們的自動裝箱，我們有將近 50 週的交貨時間。 AUTOBAG 長達數月。作為去庫存的一部分，這些交貨時間現在已經縮短，也許是過度購買，所以我們仍然看到我們的自動化需求非常非常強勁。

To the second part of your question when you were talking about what's going on with the markets, we are seeing some downgrading especially in the meat market right now. With the inflationary pressures, we are seeing the meat moving to lower cost cuts on the meat. We are seeing the poultry business, actually for us, picking up. We think that's part of that recessionary environment. But as far as the automation side, we actually see on the meat side, on the protein side, quite strong, and we expect it to be even stronger in the second half.

關於你的問題的第二部分，當你談到市場正在發生什麼時，我們看到一些降級，特別是目前在肉類市場。在通貨膨脹壓力下，我們看到肉類轉向降低肉類成本。我們看到家禽業，實際上對我們來說，正在復蘇。我們認為這是經濟衰退環境的一部分。但就自動化方面而言，我們實際上看到在肉類方面，在蛋白質方面，相當強勁，我們預計下半年它會更強勁。

Next question, operator?

下一個問題，運營商？

Going to our next question. Our question comes from the line of Christopher Parkinson of Mizuho Securities.

轉到我們的下一個問題。我們的問題來自瑞穗證券的Christopher Parkinson。

Great. Obviously, there's -- I just want to close the loop on customer destocking, especially you just given the trends of Protective over the last several quarters which seems to have obviously affected 1Q numbers fairly significantly. But at the same time, it seems like you're pretty confident in the $350 million to $380 million for the year. Perhaps could you just comment on kind of some additional thoughts on the destocking trends and whether or not you think those are entirely complete? And then perhaps the 2 to 3 things that kind of give you the confidence for increasingly better performance for the balance of the year to reach the, let's just say, hypothetically, the midpoint of guidance.

偉大的。顯然，我只是想結束客戶去庫存的循環，特別是你剛剛給出了過去幾個季度的保護趨勢，這似乎對第一季度的數字產生了相當大的影響。但與此同時，您似乎對今年的 3.5 億至 3.8 億美元很有信心。或許您能談談關於去庫存趨勢的一些額外想法，以及您是否認為這些想法是完全完整的？然後，也許 2 到 3 件事會讓你有信心在今年餘下的時間裡取得越來越好的表現，讓我們假設，假設，指導的中點。

Yes. I'll answer the question on the destocking, and then Ted can add comments on the second half confidence there.

是的。我會回答關於去庫存的問題，然後 Ted 可以在那裡添加關於下半年信心的評論。

In the destocking in Q1, we certainly have seen a very fair amount very similar to Q4. I would estimate out of the 18% volume decline in Q1 in Protective, about 1/3 is roughly destocking. And at this point, we're in close contact with our major channel partners. The channel partners destocking is largely over. We are anticipating still other parts of the business, smaller customers and then APS portfolio, in particular, having destocking continue into second quarter. Similar situation as Q1. But those fulfillment segments why destocking should be over around mid-year.

在第一季度的去庫存中，我們當然看到了與第四季度非常相似的數量。我估計，在第一季度 Protective 銷量下降 18% 的情況下，大約 1/3 大致是去庫存。在這一點上，我們正在與我們的主要渠道合作夥伴保持密切聯繫。渠道夥伴去庫存基本結束。我們預計業務的其他部分，較小的客戶，然後是 APS 產品組合，尤其是去庫存將持續到第二季度。與Q1類似的情況。但是那些履行部門為什麼去庫存應該在年中左右結束。

And then to add to that, then the confidence on the second half. So part of what we've been doing also is working on and directly talking to our customers and our channel partners. And as I mentioned earlier in the prepared remarks, moving our business online is really giving us better visibility. And as we move the business online, we're getting visibility to smaller customers, broader reach. So we actually think in the recovery, we can actually come out stronger, also on the cost side.

然後再加上下半場的信心。因此，我們一直在做的部分工作也是致力於並直接與我們的客戶和渠道合作夥伴交談。正如我之前在準備好的評論中提到的那樣，將我們的業務轉移到網上確實讓我們有了更好的知名度。當我們將業務轉移到網上時，我們可以看到更小的客戶，更廣泛的影響範圍。所以我們實際上認為在復蘇中，我們實際上可以變得更強大，在成本方面也是如此。

So going through this, we definitely think as we talked about Reinvent 2.0, we looked at our leverage and actually our deleverage in the quarter on the Protective side. We think that's actually an upside opportunity as we continue to get more cost efficient, get the system in line, their businesses in line, become more online, available to our customers and our channel partners, we can be more effective and efficient. And that our upside leverage on that positive volume in the second half, that's what's giving us confidence to hold our guidance for the year.

因此，通過這個，我們肯定會認為，當我們談論 Reinvent 2.0 時，我們在保護方面研究了我們的槓桿率，實際上是我們在本季度的去槓桿化。我們認為這實際上是一個上行機會，因為我們繼續提高成本效率，使系統保持一致，他們的業務保持一致，變得更加在線，可供我們的客戶和渠道合作夥伴使用，我們可以更加有效和高效。而我們在下半年對這一積極交易量的上行槓桿作用，這讓我們有信心保持今年的指導。

Next question, please.

請下一個問題。

Getting to our next question. Our next question comes from the line of Anthony Pettinari of Citi.

進入我們的下一個問題。我們的下一個問題來自花旗銀行的 Anthony Pettinari。

This is actually Bryan Burgmeier sitting in for Anthony.

這實際上是 Bryan Burgmeier 代替 Anthony。

Two questions on the full year outlook. On the last quarter's call, you talked about maybe 46%, 47% of total company earnings landing in the first half, and then you also guided to kind of low single-digit volume growth in Food. Are either of those still intact? And if not, what are the offsets that you found to sort of make up for those in the second half potentially?

關於全年展望的兩個問題。在上一季度的電話會議上，您談到了上半年公司總收益的 46% 和 47%，然後您還指出了食品行業的低個位數銷量增長。其中任何一個仍然完好無損嗎？如果沒有，您發現有哪些抵消可能彌補下半年的抵消？

Yes. We're holding our full year guidance, so we're seeing ourselves playing into the same range here. Around first half, second half, from an EBITDA perspective, we're anticipating roughly between 43% to 45% in EBITDA hitting Q1, if you're taking the full year -- midyear -- midpoint of guidance there.

是的。我們保持全年指導，因此我們看到自己在這裡發揮相同的範圍。大約上半年，下半年，從 EBITDA 的角度來看，我們預計 EBITDA 大約在 43% 到 45% 之間達到第一季度，如果你把全年 - 年中 - 那裡的指導中點。

And in terms of specific volume growth for the segments, for Food, we're roughly anticipating 1% uptick in overall for full year volume. And for Protective, down 2% to 3%.

就各細分市場的具體銷量增長而言，對於食品，我們粗略預計全年銷量總體增長 1%。而對於保護性產品，下降了 2% 至 3%。

Next question, operator?

下一個問題，運營商？

Our next question comes from the line of Josh Spector of UBS. Please go ahead.

我們的下一個問題來自瑞銀的 Josh Spector。請繼續。

Just curious if you could talk about Fluids broadly, including Liquibox. What was organic growth in those combined businesses for the quarter? And is that playing out generally as you expected? I think some of those markets might be more consumer sensitive. Are you seeing any declines there or new wins offsetting that?

只是好奇您是否可以廣泛地談論 Fluids，包括 Liquibox。本季度這些合併業務的有機增長是多少？總體上是否如您預期的那樣發揮作用？我認為其中一些市場可能對消費者更敏感。你看到那裡有任何下降或新的勝利抵消了嗎？

Josh, I'll break it up into our organic business, what we had in Fluids and Liquids with -- and then separate conversation on what we're seeing on Liquibox with 2 months.

喬希，我將把它分解成我們的有機業務，我們在流體和液體方面的業務——然後將我們在 Liquibox 上看到的內容分開討論 2 個月。

So on the Liquid -- Fluids and Liquids business for us in the quarter, we actually up -- were up double digit. And we are seeing that business move especially as we're offering, where I gave the example, in the Fluid space. It's a significant cost advantage for as we're converting the rigid container market. So in the quarter, strong on the equipment side of the Liquids business as well as the pull-through for an existing business, and we expect that to continue through the year.

因此，在液體方面——本季度我們的流體和液體業務，我們實際上增長了——增長了兩位數。我們看到業務正在發生變化，尤其是在我提供示例的 Fluid 空間中。這是一個顯著的成本優勢，因為我們正在轉變剛性容器市場。因此，在本季度，液體業務的設備方面表現強勁，現有業務也表現強勁，我們預計這一趨勢將持續到全年。

On the Liquibox side, and it's been 2 months as we've worked with the teams together. It's actually been quite good, seeing the 2 cultures come together, their business heavy on the foodservice side of the business. They are seeing pressure from a recessionary environment, but we are seeing growth there. We're seeing -- our first piece is on the synergy side. We think we're well ahead on the synergies that we committed to, and we said $30 million in the next 3 years. We think -- if you broke that down $10 million, $10 million, $10 million, we think we're well on our way to hit that synergy side in year 1.

在 Liquibox 方面，我們與團隊一起工作已經 2 個月了。這實際上非常好，看到這兩種文化融合在一起，他們的業務主要集中在餐飲服務方面。他們看到了來自衰退環境的壓力，但我們看到了那裡的增長。我們看到了——我們的第一部分是在協同方面。我們認為我們在我們承諾的協同效應方面遙遙領先，我們說在未來 3 年內投入 3000 萬美元。我們認為——如果你把它分解為 1000 萬美元、1000 萬美元、1000 萬美元，我們認為我們在第一年就可以很好地實現協同效應。

So far, after 2 months, we're excited about what that Liquibox can be, Fluids and Liquids. And as I highlighted, Fluids and Liquids is our fastest-growing higher-margin business. It's also part of the EBITDA story for the second half. This business leverages higher than our existing business, leveraging it actually 40% versus 30% in our model. So it's also part of our second half recovery.

到目前為止，在 2 個月後，我們對 Liquibox 的功能、流體和液體感到興奮。正如我強調的那樣，流體和液體是我們增長最快的高利潤業務。這也是下半年 EBITDA 故事的一部分。該業務的槓桿率高於我們現有的業務，實際上是 40%，而在我們的模型中是 30%。所以這也是我們下半年復甦的一部分。

Our next question comes from the line of Angel Castillo of Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Angel Castillo。

I was just hoping we could dive in a little bit deeper into the Protective segment margins. It seems like the decremental there or the operating leverage hit a little bit of a tipping point in terms of how much weaker the quarter was. So could you just break that down a little bit more, give us a bit of a sense for exactly, I guess, what some of the factors were in the first quarter? And then as you look at the second half, I'm curious what the type of incremental margins you would kind of anticipate or kind of the margin trajectory based on what's kind of assumed? And in particular, I'm just, I guess, a little bit surprised just given that digital seems to be a little bit of a margin enhancing strategy that you were just seeing a little bit more benefit, given that went to 14%. So comments on that would be helpful as well.

我只是希望我們能更深入地研究保護性細分市場的利潤率。就該季度的疲軟程度而言，那裡的遞減或經營槓桿似乎達到了一個臨界點。那麼，您能否將其進一步分解，讓我們對第一季度的一些因素有一些確切的了解？然後當你看下半年時，我很好奇你會根據什麼樣的假設來預測什麼樣的增量利潤率或什麼樣的利潤率軌跡？特別是，我想，我只是有點驚訝，因為數字似乎是一種提高利潤率的策略，你只是看到了更多的好處，因為它達到了 14%。所以對此的評論也會有所幫助。

Yes. Angel, I'll talk a little bit of the Q1 margin and then Ted can jump into the Q2 part of it.

是的。 Angel，我會談談 Q1 利潤率，然後 Ted 可以跳到其中的 Q2 部分。

Q1 EBITDA margin of Protective is around 16.2%, certainly is on the low end. And if we dive into detail, really, it's a volume story. For the volume, we have been down 18%. It's been down for a while. And then overall, the decremental leverage for volume is roughly between 40% to 45%, so you can see the magnitude of that from the overall margin profile there.

Protective 的第一季度 EBITDA 利潤率約為 16.2%，當然處於低端。如果我們深入細節，真的，這是一個卷故事。對於數量，我們已經下降了 18%。它已經下降了一段時間。然後總體而言，交易量的遞減槓桿率大約在 40% 到 45% 之間，因此您可以從那裡的整體利潤率概況中看到其幅度。

And we do believe this is a transient move. It's not permanent. It's not a reflection of the business fundamentals. And volume turned back on in the second half, those leverage will definitely improve.

我們確實相信這是一個短暫的舉動。它不是永久性的。這不是業務基本面的反映。下半年成交量回升，這些槓桿肯定會提高。

Good. And building on what Susan said on the second half, the incrementals being at 30% with us getting our costs. And even on the Protective side on the turnaround, we anticipate to have strong, incremental margins north of 30%.

好的。根據 Susan 在下半年所說的話，隨著我們獲得成本，增量為 30%。甚至在轉機的保護方面，我們預計將有超過 30% 的強勁增量利潤率。

To your second part of your question where you would expect to see more of the cost improvement on digital, that's in the transitory phase right now on lower markets. Right now, we're going, moving business online, but we're doing that very carefully with our customers. So seeing the cost benefit of that, that's going to take time. But on the second half, that should be a benefit, and for sure, a benefit going into '24 and '25. So see, again, higher incrementals going forward with increased volume as we move more and more of the business online.

對於你問題的第二部分，你希望看到更多的數字成本改善，這在較低的市場上目前處於過渡階段。現在，我們正在將業務轉移到網上，但我們正在非常謹慎地與我們的客戶一起做這件事。因此，看到這樣做的成本效益，這需要時間。但在下半場，這應該是一個好處，而且肯定是 24 和 25 年的好處。因此，再次看到，隨著我們將越來越多的業務轉移到網上，更高的增量會隨著數量的增加而增加。

Next question comes from the line of Jeffrey Zekauskas of JPMorgan.

下一個問題來自摩根大通的 Jeffrey Zekauskas。

Can you talk about the trends in the industrial market in Protective, what you expect for the first half, what you expect for the second? And can you talk about your overall price, raw material balances?

您能談談防護行業市場的趨勢，您對上半年的預期，對下半年的預期是什麼？你能談談你的整體價格，原材料平衡嗎？

Sure. We'll go first on the industrial side, which touches our products and our portfolio on Protective. That's our Instapak, that's our shrink, the BUBBLE WRAP on demand.

當然。我們將首先關注工業方面，這涉及到我們的產品和我們在防護方面的產品組合。那是我們的 Instapak，那是我們的收縮，按需使用的 BUBBLE WRAP。

The markets on the industrial side that actually got hit the most, and we saw this actually started at the end of last year. It was actually in the electronics industry, so we're seeing the significant market pressure there. We saw third quarter again, fourth quarter, first quarter, second quarter. We see that turning in the second half and be more than double digit actually for growth on the comps as well as penetration with actually some share gains, because we have some new products going in there into that space.

工業方面的市場實際上受到的打擊最大，我們看到這實際上是在去年年底開始的。它實際上是在電子行業，所以我們看到那裡存在巨大的市場壓力。我們又看到了第三季度、第四季度、第一季度、第二季度。我們看到下半年的增長實際上超過了兩位數，因為我們有一些新產品進入了這個領域。

The second part of the question, I'll let Susan go.

問題的第二部分，我會讓蘇珊走。

Yes, I'll talk about the second part of the question on price resin across, et cetera.

是的，我將討論有關樹脂價格等問題的第二部分。

So on the full year guidance, we are expecting roughly 1% up on pricing, and that's coming from the carryover pricing from prior year. And from a year-over-year perspective, it's primarily hitting this first half. On the full year guidance of net price realization, which includes not only the resin cost but also labor and nonlabor inflation, we're anticipating a negative $40 million to $50 million in total, which is primarily driven by the high labor and non-labor information of approximately $150 million.

因此，在全年指導中，我們預計定價大約上漲 1%，這是來自上一年的結轉定價。從同比的角度來看，它主要出現在上半年。在淨價實現的全年指引中，不僅包括樹脂成本，還包括勞動力和非勞動力通脹，我們預計總計為負 4000 萬至 5000 萬美元，這主要是由高勞動力和非勞動力驅動的約 1.5 億美元的信息。

On the direct material side, we do anticipate a resin on a year-over-year basis to be favorable, particularly on the commodity resin side. We're thinking commodity resin is a 10% down year-over-year with especially resin up 5%. And overall, from a dollar perspective, roughly, saying, $45 million to $50 million is favorable on the materials for the full year.

在直接材料方面，我們確實預計樹脂在同比基礎上是有利的，特別是在商品樹脂方面。我們認為商品樹脂同比下降 10%，尤其是樹脂上漲 5%。總的來說，從美元的角度來看，大約 4500 萬到 5000 萬美元對全年的材料有利。

And just 1 -- in tying the 2 together, having the material available is going to be a difference to help us with that second half performance over last year. Because part of our last year's performance, we didn't have material available to go get the business. So though we see a mixture of the materials going down, the best thing for us is we'll have material availability to go get the business in the second half.

只有 1 個——將 2 個結合在一起，擁有可用的材料將有助於我們在去年的下半年表現有所不同。由於我們去年業績的一部分，我們沒有可用的材料來獲得業務。因此，儘管我們看到各種材料都在下降，但對我們來說最好的事情是我們將有材料供應來在下半年開展業務。

Next question comes from the line of Phil Ng of Jefferies.

下一個問題來自 Jefferies 的 Phil Ng。

Dustin, looking forward to working with you. Appreciate the help going forward.

達斯汀，期待與您合作。感謝前進的幫助。

I guess for me on the question side guys...

我想在問題方面對我來說...

Phil, you got to give a direct question to Dustin.

菲爾，你必須直接向達斯汀提問。

I'll leave that for you, Ted. But maybe this is for Dustin, I guess.

我會把它留給你，特德。但我想這也許是給 Dustin 的。

My question is really on the margin side for Food. It's kind of -- was lighter than I would have expected. Volumes were not materially different than the last few quarters. And typically, you see quarter-over-quarter, margins are pretty flat, so surprised by the declines. So kind of help us think through what drove that shortfall? Does that dynamics change a little bit in 2Q?

我的問題確實是關於食品的邊際問題。這有點——比我預期的要輕。成交量與過去幾個季度沒有實質性差異。通常情況下，你會看到季度環比的利潤率相當持平，因此對下降感到驚訝。那麼能幫助我們思考是什麼導致了這種不足嗎？這種動態在第二季度會有所變化嗎？

And separately, you talked about recapturing share in Food, now that material availability has improved. How does that impact your mix? Is that pretty neutral? Or is that a good guide going forward?

另外，你談到了重新奪回食品市場的份額，因為材料的可用性已經提高了。這對您的混音有何影響？這很中性嗎？或者這是一個很好的前進指南？

Yes. If I jump in for Dustin there, that's not fair, Phil, on that first one.

是的。如果我在那裡跳達斯汀，那是不公平的，菲爾，第一個。

If we look at Food and what's going on in the quarter, let's talk first about the share gain. There's 2 elements of the share gain which were share loss in the past because we just didn't have the materials, so we see that playing out in the quarter. So actually, we think we got a percent of it back. But the real issue on share gain is we had a major customer engagement that came back for us on a share gain. Also, we talked about it in the fourth quarter but we also saw it coming in the first quarter, and that also showed up in automation. So that's in Food being up double digit.

如果我們看看食品以及本季度發生的事情，讓我們首先談談份額增長。股票收益有兩個要素，過去是股票損失，因為我們只是沒有材料，所以我們看到這個季度正在發揮作用。所以實際上，我們認為我們得到了其中的一部分。但份額收益的真正問題是我們有一個主要的客戶參與，這為我們帶來了份額收益。此外，我們在第四季度討論過它，但我們也看到它在第一季度出現，並且也出現在自動化領域。這就是食品增長兩位數。

So the second part of your question, how do we see that playing back in the second half of the year? We think we could get more and actually, it's going to show up the margin where we get volume. Having -- Food being down, you would actually going to have decrementals. But as we bring the volume in on that business, we leverage on Food very, very nicely, actually much higher than our 30% target. So that's an opportunity for the second half. We've got to go get the business. We got to get the share back. We're still going to have some of those issues where we were short of those materials because once the customers made a decision, it's more difficult to go get it back, but that's what we're focused on. And again, automation is how we're going to get it back quicker.

那麼你問題的第二部分，我們如何看待下半年的回放？我們認為我們可以獲得更多，實際上，它會顯示我們獲得數量的利潤。有 - 食物減少，你實際上會減少。但是，當我們將業務量引入該業務時，我們非常非常好地利用食品，實際上遠高於我們 30% 的目標。所以這是下半場的機會。我們得去做生意了。我們必須拿回份額。我們仍然會遇到一些缺少這些材料的問題，因為一旦客戶做出決定，就很難再取回它，但這就是我們關注的重點。再一次，自動化是我們如何更快地恢復它的方法。

The second point. When we get the business back in the Food, we'll leverage very nicely in the second half.

第二點。當我們恢復食品業務時，我們將在下半年很好地利用槓桿。

Yes. And just a quick follow-on point. When you look at Q1, it's 22.8%. When you look at the prior year, you're coming off a very tough comparable where last year, we benefited from net price realization and you see some volume declines. So you see that our Q1 is very much in line with the full year, and you'll see that nicely steadily increase from here and show favorable comps year-over-year going forward.

是的。只是一個快速的後續點。當你看第一季度時，它是 22.8%。當你回顧前一年時，你會發現去年的情況非常艱難，我們從淨價實現中受益，你會看到一些銷量下降。所以你看到我們的第一季度與全年非常一致，你會看到從這裡開始穩步增長，並顯示出有利的同比增長。

Our next question comes from the line of Arun Viswanathan of RBC Capital Markets.

我們的下一個問題來自 RBC Capital Markets 的 Arun Viswanathan。

I just wanted to ask again on the volume outlook for the rest of the year, especially in Protective. I know there's been some persistent destocking, and I guess, what are you hearing from your customers as far as their inventory levels? Have you kind of reached a level where that should start to subside maybe in Q3 and that's what drives your back half?

我只是想再次詢問今年剩餘時間的銷量前景，尤其是在保護性方面。我知道有一些持續的去庫存，我想，就他們的庫存水平而言，你從客戶那裡聽到了什麼？您是否達到了可能在第三季度開始消退的水平，這就是驅動您後半部分的原因？

From the inventory level of customer, we've been in direct dialogue with our major channel partners. And they have been starting -- they have started destocking actually last year. And at this point in Q1, they are largely over through destocking at their target level. The piece of the business, APS and also some smaller customers, the destocking continue. We do anticipate that to go through Q2 and will be more or less over around midyear.

從客戶的庫存層面，我們一直在與我們的主要渠道合作夥伴進行直接對話。他們已經開始——實際上他們去年就開始去庫存了。在第一季度的這一點上，他們通過目標水平的去庫存基本結束了。這塊業務、APS 以及一些較小的客戶，去庫存仍在繼續。我們確實預計會在第二季度結束，並且或多或少會在年中左右結束。

Yes. Arun, just to add a little bit of color on that. We -- just the same question you're asking, what's going on with the destocking? Are you losing share? We're actually highly engaged and use this as an opportunity to meet with our customers, meet with our channel partners. And actually, our major channel partners now are in process to go fully online with us with MySEE. So it's given us great visibility to see what they have, where the inventory is, what are they overstocked in, how do we work that out better. But it's also giving us the opportunity, how can we help? How we not just help our channel partners but in there directly with our customers, and are there new solution opportunities for us? So it's -- be a net positive. And that's what's also giving us our confidence on that second half recovery to go get it on the Protective side.

是的。阿倫，只是為了增加一點色彩。我們 - 與您提出的問題相同，去庫存是怎麼回事？你正在失去份額嗎？我們實際上高度參與，並以此為契機與我們的客戶會面，與我們的渠道合作夥伴會面。實際上，我們的主要渠道合作夥伴現在正在通過 MySEE 與我們全面聯機。因此，它讓我們能夠很好地了解他們擁有什麼，庫存在哪裡，他們積壓了什麼，我們如何更好地解決這個問題。但它也給了我們機會，我們能提供什麼幫助呢？我們如何不僅幫助我們的渠道合作夥伴，而且直接與我們的客戶打交道，我們是否有新的解決方案機會？所以它 - 是一個淨積極的。這也讓我們對下半年的複蘇充滿信心，將其置於保護方面。

Our next question comes from the line of Samuel Ohiomah of William Blair.

我們的下一個問題來自威廉·布萊爾的塞繆爾·俄亥俄州。

It's Larry De Maria, I think I jumped down the wrong one there.

我是 Larry De Maria，我想我跳錯了。

So obviously, you're already seeing recessionary conditions in volume especially in Protective. And benefiting from price, which is sort of decelerating of tough comps. Can you discuss your ability and thoughts and expectations around the ability to drive both price and volume as we head to '24 in both segments and potentially, obviously, a broader recession? In other words, why is price not going to under more pressure into '24? And what confidence do you have to keep it positive while also driving volume? And obviously, automation is part of that, but curious about your thoughts.

很明顯，你已經看到了交易量的衰退情況，尤其是在保護性方面。並從價格中受益，這在某種程度上減緩了艱難的競爭。當我們在兩個細分市場都進入 24 世紀，並且顯然可能出現更廣泛的衰退時，您能否討論您對推動價格和數量的能力的能力、想法和期望？換句話說，為什麼進入 24 年價格不會承受更多壓力？你有什麼信心在推動銷量的同時保持積極？顯然，自動化是其中的一部分，但對您的想法感到好奇。

Sure. So Larry, the question obviously is out there with price, with our customers right now. But I just want to highlight, the inflation is still out there and the conversations that we're having with our customers, we're still not through the total inflation. As Susan highlighted, even what's going on with our commodities, we still have inflationary pressures out there and so do our customers. So we're addressing this head on with our customers on what can we do to help them reduce their total cost, and that's opening the door for us to talk about automation. How can we go in there and save them actually millions in their operations through an automated system and solutions. But also on the per product base, looking at our different alternatives, what do we have in the product line. So right now, we're using this as an opportunity to address it head on.

當然。所以拉里，問題顯然與價格有關，現在與我們的客戶有關。但我只想強調，通貨膨脹仍然存在，我們與客戶進行的對話，我們仍然沒有通過總通貨膨脹。正如蘇珊強調的那樣，即使我們的商品發生了什麼，我們仍然面臨通脹壓力，我們的客戶也是如此。因此，我們正在與我們的客戶正面討論我們可以做些什麼來幫助他們降低總成本，這為我們談論自動化打開了大門。我們如何才能通過自動化系統和解決方案進入並為他們實際節省數百萬美元的運營成本。而且在每個產品基礎上，看看我們不同的選擇，我們在產品線中有什麼。所以現在，我們正在利用這個機會來解決這個問題。

So right now, we don't see that as an issue in the recession. And the ones even that I've been directly involved with our customers, they're still under major pressure right now in what's going on in their operations, and automation continues to be the #1 answer to help.

所以現在，我們不認為這是經濟衰退中的一個問題。那些即使我直接與我們的客戶打交道的人，他們現在在他們的運營中仍然承受著巨大的壓力，而自動化仍然是幫助他們的第一選擇。

Also, I just want to highlight the digital. How can we be easier to do business with? Moving our customers online, not just our distributors, but the direct customers online is how can we lower their cost to do business with us and with the marketplace? So we're still very aggressive on how we can lower their costs which will pull through our products, and we think that's still an opportunity. And what we're looking for is just a net slight positive price realization. We're not looking to bring too much price over our cost.

另外，我只想強調數字。我們如何才能更輕鬆地開展業務？讓我們的客戶在線，不僅是我們的分銷商，還有直接客戶在線是我們如何才能降低他們與我們和市場做生意的成本？所以我們仍然非常積極地研究如何降低他們的成本，這將推動我們的產品，我們認為這仍然是一個機會。而我們正在尋找的只是一個淨輕微的正價格實現。我們不希望為我們的成本帶來太多的價格。

One of the big cost drivers that went away was the freight surcharges. That's the big deal right now in the quarter, that going away. But net-net, it's all about automation.

消失的主要成本驅動因素之一是運費附加費。這是本季度現在的大事，即將消失。但是 net-net，一切都與自動化有關。

No question in the queue.

隊列中沒有問題。

Okay. Okay. Well, thank you then.

好的。好的。那麼，謝謝你。

We'll bring the call to close. And I would like to thank everybody, especially our SEE employees for their tireless efforts. It's really a tough market. And I'd like to also thank our investors for their -- our investors for the time today. We're excited about the opportunities we have ahead and how they will accelerate our growth for the future, and we look forward to speaking again in August. Thank you.

我們將結束通話。我要感謝大家，特別是我們SEE員工的不懈努力。這真是一個艱難的市場。我還要感謝我們的投資者——我們今天的投資者。我們對未來的機遇以及它們將如何加速我們未來的發展感到興奮，我們期待在 8 月再次發言。謝謝。

Operator, that's it.

運營商，就是這樣。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。