SEE REPORTS Q2 2024 RESULTS

August 8, 2024

Second Quarter 2024 Highlights and Financial Results

• Patrick Kivits joined Sealed Air as Chief Executive Officer
• Dustin Semach promoted to President and Chief Financial Officer
• Volume growth in Food driven by strong end-market demand
• Protective volume weakness now expected to persist throughout 2024 into 2025
• CTO2Grow on track to generate $90 million of incremental cost savings for full-year 2024
• Strong generation of cash flow from operations and continued debt reduction

Sealed Air Corporation (NYSE: SEE) announced second quarter 2024 financial results and business updates.

"Our second quarter results were ahead of our expectations, reflecting strong sequential demand within our Food business, accelerated benefits from our CTO2Grow program that more than offset the continued pressure within our Protective business," said Patrick Kivits, Sealed Air's CEO. "I have joined Sealed Air at a pivotal time in its journey. I plan on accelerating the transformation that began eight months ago to restore business fundamentals and drive long-term sustainable growth. Our people are at the center of this transformation and I want to express my appreciation for their commitment to Sealed Air and our customers. I am excited about the opportunities ahead of us."

"For the remainder of the year, our Food businesses' performance is being offset by weaker than expected volumes within Protective. At this time, we do not see a catalyst for the volumes to inflect in Protective and expect this trend to continue into 2025," said Dustin Semach, Sealed Air's President and CFO. "We delivered strong free cash flow in the first half and continued to strengthen the balance sheet, putting us ahead of pace for free cash flow generation for the full year."

Second Quarter 2024 Financial Highlights

Net sales of $1.35 billion decreased 3% as reported, with EMEA decreasing 5%, APAC decreasing 3% and the Americas decreasing 2%. Net sales decreased $24 million, or 2%, on a constant dollar basis. Price had an unfavorable impact of $41 million, or 3%. Volumes increased by $18 million, or 1%.

Income tax expense was $38 million, resulting in an effective tax rate of 27.8% in the quarter. This compares to an income tax expense of $45 million in the prior year, or an effective tax rate of 32.5%. The lower effective tax rate is primarily driven by lower accruals for uncertain tax positions in the current year. The Adjusted Tax Rate was 25.5% in the quarter, as compared to 26.9% in the prior year.

Net earnings were $98 million, or $0.67 per diluted share, as compared to net earnings of $94 million, or $0.65 per diluted share in the prior year. The current year results were impacted by $27 million of Special Items expense, including $9 million of restructuring and other associated costs related to the cost take-out to grow program ("CTO2Grow Program"), $8 million related to the amortization of Liquibox intangible assets and $7 million loss on debt redemption and refinancing activities. The prior year results were impacted by $19 million of Special Items expense, primarily related to the Liquibox acquisition. Adjusted earnings per diluted share increased to $0.83, from $0.80 in the prior year, primarily due to higher Adjusted EBITDA and lower interest expense, partially offset by higher depreciation and amortization.

Adjusted EBITDA was $285 million, or 21.2% of net sales, as compared to $280 million, or 20.3% in the prior year. The increase in Adjusted EBITDA was primarily due to lower operating costs driven by productivity benefits as a result of the CTO2Grow Program and higher volumes, partially offset by unfavorable net price realization.

Business Segment Highlights

Second quarter net sales in Food were $894 million, an increase of 2% as reported. Currency fluctuations had an unfavorable impact of $7 million, or 1%. On a constant dollar basis, net sales increased $21 million, or 2%. Volumes increased $47 million, or 5%, with growth in all regions driven by strength in end-market demand and share gains within our case ready solutions. Price had an unfavorable impact of $26 million, or 3%. Adjusted EBITDA of $205 million, or 22.9% of net sales, increased 7% from $191 million, or 21.7% of net sales. The increase in Adjusted EBITDA was primarily attributable to higher volumes.

Second quarter net sales in Protective were $451 million, a decrease of 10% as reported. Currency fluctuations had an unfavorable impact of $4 million, or 1%. On a constant dollar basis, net sales decreased $44 million, or 9%. Volumes decreased $29 million, or 6%, resulting from a slowdown in automation sales and continued weakness in our industrial and fulfillment portfolios. Price had an unfavorable impact of $15 million, or 3%. Adjusted EBITDA of $82 million, or 18.1% of net sales, decreased 15% from $96 million, or 19.2% of net sales. The decrease in Adjusted EBITDA was primarily attributable to lower volumes and unfavorable net price realization, partially offset by lower operating costs driven by productivity benefits, including our CTO2Grow Program.

Cash Flow and Net Debt

Cash flow from operating activities during the first six months of 2024 was a source of $313 million, as compared to a use of $7 million during the prior year period, which included a $175 million tax deposit.

Capital expenditures in the first six months of 2024 were $106 million, as compared to $124 million during the prior year period. Free Cash Flow, defined as net cash from operating activities less capital expenditures, was a source of $207 million for the first six months of 2024, as compared to a use of $130 million during the prior year period. Excluding the $175 million tax deposit, Free Cash Flow was a source of $45 million for the first six months of 2023.

Dividend payments for the first six months of both 2024 and 2023 were $60 million.

Total debt was $4.6 billion as of June 30, 2024 and $4.7 billion as of December 31, 2023. Net Debt, defined as total debt less cash and cash equivalents, was $4.2 billion as of June 30, 2024 and $4.3 billion as of December 31, 2023. As of June 30, 2024, SEE had approximately $1.4 billion of available liquidity comprised of $389 million of cash and $1.0 billion of available and unused lines of credit under our committed credit facilities. The net leverage ratio, defined as net debt divided by last twelve months Adjusted EBITDA, decreased to 3.8x as of June 30, 2024 as compared to 3.9x as of December 31, 2023.

2024 Full Year and Q3 Outlook

2024 Outlook

Net Sales $1.33 billion

Full-year $5.2 to 5.6 billion

Adjusted EBITDA $265 million

Full-year $1.05 to $1.15 billion

Adjusted EPS $0.67

Full-year $2.65 to $3.05

Free Cash Flow

Full-year $325 to $425 million

Adjusted EBITDA, Adjusted EPS and Free Cash Flow are non-GAAP financial measures. We have not provided guidance for the most directly comparable GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity and low visibility of certain Special Items.

Conference Call Information

Sealed Air Corporation will host a conference call and webcast on Thursday, August 8, 2024 at 10:00 a.m. (ET) to discuss our Second Quarter 2024 Results. The conference call will be webcast live on the Investors homepage at www.sealedair.com/investors. A replay of the webcast will also be available thereafter. A slide presentation, which includes supplemental information relating to the Company's second quarter earnings will be made available through the "Presentations & Events" section of the Company's Investor Relations website at https://ir.sealedair.com/events-and-presentations prior to the call.

About Sealed Air

Sealed Air Corporation (NYSE: SEE), is a leading global provider of packaging solutions that integrate sustainable, high-performance materials, automation, equipment and services. Sealed Air designs, manufactures and delivers packaging solutions that preserve food, protect goods and automate packaging processes. We deliver our packaging solutions to an array of end markets including fresh proteins, foods, fluids and liquids, medical and life science, e-commerce retail, logistics and omnichannel fulfillment operations, and industrials. Our globally recognized solution brands include CRYOVAC^®brand food packaging, LIQUIBOX^® brand liquids systems, SEALED AIR^® brand protective packaging, AUTOBAG^® brand automated packaging systems, and BUBBLE WRAP^® brand packaging. In 2023, Sealed Air generated $5.5 billion in sales and has approximately 17,000 employees who serve customers in 115 countries/territories.

www.sealedair.com

Website Information

We routinely post important information for investors on our website, www.sealedair.com, in the Investors 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 the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Non-GAAP Information

In this press release, we include certain non-GAAP financial measures, including Net Debt, Adjusted Net Earnings and Adjusted EPS, net sales on an "organic" and a "constant dollar" basis, Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, net leverage ratio and Adjusted Tax Rate. Management uses non-GAAP financial measures to assess operating and financial performance, set budgets, provide guidance and compare with peers' performance. We believe such non-GAAP financial measures are useful to investors. Non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP information. See the attached supplementary information for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. Information reconciling forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures is not presented because it is not available without unreasonable effort. The reconciling information that is not available includes forward-looking ranges of certain Special Items with high variability, complexity and low visibility. We are unable to address the probable significance of such unavailable information, which could have a potential significant impact on our future GAAP financial results.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words as "anticipate," "believe," "plan," "assume," "could," "should," "estimate," "expect," "intend," "potential," "seek," "predict," "may," "will" or the negative of these terms and similar expressions. All statements contained in this press release, other than statements of historical facts, such as those regarding our growth initiatives, business strategies, operating plans, business outlook, restructuring activities and market conditions, are forward-looking statements. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that may cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. These risks include global economic and political conditions, including recessionary and inflationary pressures, currency translation and devaluation effects, changes in raw material pricing and availability, competitive conditions, the success of new product offerings, failure to realize synergies and other financial benefits from acquisitions within the expected time frames, greater than expected costs or difficulties related to acquisition integrations, consumer preferences, the effects of animal and food-related health issues, the effects of epidemics or pandemics, negative impacts related to the ongoing conflict between Russia and Ukraine and related sanctions, export restrictions and other counteractions thereto, uncertainties relating to existing or potential increased hostilities in the Middle East, changes in energy costs, environmental matters, the success of our restructuring activities, the success of our merger, acquisition and equity investment strategies, the success of our financial growth, profitability, cash generation and manufacturing strategies and our cost reduction and productivity efforts, changes in our credit ratings, regulatory actions and legal matters, and other important factors discussed in the "Risk Factors" section in Part I of our most recent Annual Report on Form 10-K, as updated by our other filings with the Securities and Exchange Commission.

Any forward-looking statements made by us in this press release are based solely on management's estimates as of the date of this press release. While we may elect to update such forward-looking statements, we disclaim any obligation to do so even if subsequent events cause our views to change, except as may be required by applicable law.

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