Brian SharpGlobal Vice President, Commercial Excellence

Driving Stock Performance and Shareholder Value through Pricing Transformation

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FPO

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FPO

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• Engineered Solutions & Packaging Systems

• Packaging Design & Testing

• Lean Six Sigma Expertise

• Service & Support

• Packaging/Hygiene Solutions

• Engineering Plant Designs

• Full Range of Equipment/Systems

• Manage Water, Energy

• Building & Kitchen Care Services

• Infection Prevention

• Fabric Care

• Consulting Services & Consumer Brands

2013 Sales: $1.6B

24% of 2013 Adj. EBITDA, excl SARs

2013 Sales: $2.2B

21% of 2013 Adj. EBITDA, excl SARs

2013 Sales: $3.8B

55% of 2013 Adj. EBITDA, excl SARs

How We Deliver Value

The problem

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10,000,000

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1/31

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Stoc

k Pr

ice

Dai

ly V

olum

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Volume Price

CompletesCryovac AcquisitionMarch 31, 1998

What happens when value chases volume?

AnnouncesDiversey AcquisitionJune 1, 2011

Other issues…• ~$5B of debt• Organizational malaise • Internal skepticism • Credibility with Wall Street

Self concept

Strategy

Language

Ways-of-working

Accountability

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Sustainability

Cost Competitiveness

Performance

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Self concept

Strategy

Language

Ways-of-working

Accountability

Charting a new course

ADJUSTED EBITDA MARGIN

2004 2008 2012 2016E5%

10%

15%

20%

25%

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Value for volume Value for profit

What Is Value Leadership?

Value Disciplines

ConceptualizeCreateCap

ture

CultivateOperating with a disciplined approach to value management - throughout the cycle - to achieve our full profit potential Conceptualize Value—re-imagining the

way we can impact the industries and customers we serve

Create Value—delivering break through offers which positively improve our way of life

Capture Value—capturing a fair share of the value we provide

Cultivate Value—regularly optimizing the value we capture so that we can sustainably re-invest

Two phased approach to executing the value-for-profit strategy

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Value Disciplines

ConceptualizeCreateCap

ture

Cultivate

Get Fit

Change-the-Game

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Self concept

Strategy

Language

Ways-of-working

Accountability

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We say tomato…You say… We say…

"Price Leadership” “Value Leadership”

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We say tomato…You say… We say…“Pricing” “Deals & Offers”

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We say tomato…You say… We say…

“4 P’s of Marketing” “2 P’s of Marketing”

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We say tomato…You say… We say…

“Price sensitive customer” “Easy Switcher”“Collaborative customer” “Strategic Partner”

Redefine your pricing roadmap…

Pricing

Deal & Offer Management

Sales Force Excellence (Value

Selling)

Marketing LeadershipCommercial Excellence

2011 2012 2013 2014 future

Full

Profi

t Pot

entia

l

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Self concept

Strategy

Language

Ways-of-working

Accountability

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From “little m” to “Big M”: Marketing owns & leads transformation

Authority

Decision Making

Accountability

Value LeadershipGovernance

Marketing Leaders are the Stewards of Value.Commercial Excellence begins in Marketing.

Involves ~ 200 of the 4,500global commercial employees

• Process-centered• Data-driven• Steadfast resolve

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Get Fit: See the waterfall…be the waterfall…

Own the Price Waterfall1. Price level setting2. Price realization3. Profit management

Change-the-Game: …no apologies for our ‘value quant fetish’

Obsessive Quantification of Value1. Quantify economic impact where ever it occurs2. Understand our perceived differential advantage

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Self concept

Strategy

Language

Ways-of-working

Accountability

Cleaving price decision making from Sales

MarketingSets target and walk-away

positions based on our differential value and a

deep understanding of the competitive alternatives

available to the customer

SalesCloses business based on

value and a deep understanding of

customer willingness-to-pay

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It’s called a “Performance Contract”• Not “Goals”• Not “Vision”• Not “Objectives”• Not “Target”

EBITDA: a simple metric

Lacing together the internal and external narrative

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Get yourself on the team• Partner with Investor Relations (ask if you can help)• Collaborate closely with your Legal team (build trust)• Socialize your point-of-view with the CEO & CFO (what is your

blinding insight?)

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Start writing it down• Meticulously write/re-write the narrative (even if no one follows

the script)• Keep it simple (as if communicating to 12 year olds)• Pressure test the message against the reality in the market

(would your largest customers confirm the narrative?)

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Sustain your effort• Leverage the internal and external message (as if they are one)• Check your facts (analysts are the ultimate fact checkers)• Identify and refresh the main risks and exposures (anticipate their

questions)• Anticipate the next earnings call (build a quarter-to-quarter story

line)Keep pricing relevant (it always is)

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What our shareholders think now…

Aug, 21 2012$13.26/share

Sept 5, 2014$37.21/share