+ All Categories
Home > Documents > INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement...

INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement...

Date post: 24-Jul-2019
Category:
Upload: dodang
View: 213 times
Download: 0 times
Share this document with a friend
25
INVESTOR BRIEFING March 2013
Transcript
Page 1: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

INVESTOR BRIEFING

March 2013

Page 2: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Safe Harbor Statement

Page 2

This presentation includes forward-looking statements within the meaning of the Safe Harbor provisions of the Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements relating to the expected future performance of the company and its objectives, expectations and intentions for the future. These forward-looking statements are based on the current beliefs and expectations of Bemis Company’s management and are subject to risks and uncertainties. The forward-looking statements speak only as of the date of this presentation, and Bemis Company does not undertake to update such statements to reflect changes that occur after that date. There are a number of factors that could cause actual results to differ from those set forth in the forward-looking statements. These factors include, but are not limited to: general economic conditions, competitive conditions in our markets, regional governmental regulations, the cost and availability of raw materials, and our ability to pass these price changes on to our customers or otherwise manage commodity price fluctuation risks. These and other risks, uncertainties, and assumptions are identified from time to time in our filings with the Securities and Exchange Commission including our most recent Annual Report on form 10-K and our quarterly reports on Form 10-Q. Such reports are available on the website of the Securities and Exchange Commission (www.sec.gov).

Page 3: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 3

North America Latin America Europe Asia Pacific

2012 Net Sales by Region

69%

19%

9%

3%

Bemis Company Profile

Packaging industry leader since 1858

$5.1 billion 2012 net sales Fortune 500 S&P 500

Vertical integration creates competitive advantage

74 facilities in 11 countries

~ 20,000 employees worldwide

Page 4: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 4

2012 Highlights Record adjusted EPS of $2.15

Increased dividend payable to shareholders

Announced new reportable segment structure: U.S. Packaging Global Packaging Pressure Sensitive Materials

Substantially completed facility consolidation program to close 9 manufacturing locations and save $50 million annually (beginning Q213)

Increased footprint in Asia-Pacific

Page 5: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

$1,451 $1,637 $1,543

8.8%7.4% 7.0%

0.0%

5.0%

10.0%

15.0%

$-

$1,000

$2,000

$3,000

2010 2011 2012

Net Sales & Adjusted Op Profit* % by Segment

100%

$3,040 57%

43%$556

($ in millions)

$2,822 $3,111 $3,040

12.8%11.0%

13.0%

0.0%

5.0%

10.0%

15.0%

$-

$1,000

$2,000

$3,000

2010 2011 2012

$563 $574 $556

5.9% 6.3% 6.6%

0.0%

5.0%

10.0%

15.0%

$-

$1,000

$2,000

$3,000

2010 2011 2012

* See appendix for reconciliation from GAAP to Adjusted Operating Profit excluding certain items.

12%64%

16%

8%

North America Latin AmericaEurope Asia Pacific

Page 5

$1,544

U.S. Packaging

Pressure Sensitive Materials

Global Packaging

8.8%

Page 6: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

0%

10%

20%

30%

Meat &Cheese

Dairy &Liquids

SpecialtyFood &Meals

Dry Foods BeverageWraps

Candy,Snacks &

Bakery

Health &Hygiene

OtherNon-food

Percent of 2012 Net Sales

Page 6

Extends shelf life of perishable foods (meat, cheese, dairy, produce)

Proprietary and patented film structures

Premium manufacturing scale and printing capabilities support both national and regional brands

U.S. Packaging Profile

Page 7: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 7

U.S. Packaging Growth Drivers Conversion from jars and

cans to pouches

Single serving / convenience sizes

Material content and weight reduction for sustainability and cost management

Convenient cook-in packages

Elimination of PVdC content from plastic cups

Glass jar Pouch

Paper envelope Stand up pouch w/window

Can Cook-in Pouch

Page 8: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 8

Global Packaging Profile

Expanding consumer markets in Latin America and Asia

Sterility and quality are paramount for medical applications

0%

10%

20%

Meat &Cheese

Medical &Pharma

Dairy &Liquids

Health &Hygiene

SpecialtyFood

BeverageWraps

Candy,Snacks &

Bakery

OtherNon-food

Percent of 2012 Net Sales

Page 9: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 9

Global Packaging Growth Drivers Food safety regulations in

emerging markets

New generation of consumers looking for convenience features

Need for shelf stable foods due to lack of available refrigeration space

Wal-Mart located in China

Retort

Page 10: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 10

Pressure Sensitive Materials Profile

0%

20%

40%

60%

Label Graphic Technical

Percent of 2012 Net Sales

Page 11: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Priorities: 1) 30 consecutive years

of increasing dividend payments

2) Fund organic growth to enhance revenues and returns

3) Fund acquisitions

4) Balance share repurchases and deleveraging

Page 11

Disciplined Capital Stewardship

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Cash Dividends

$0

$100

$200

$300

$400

$500

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Cash Flow from Operations ($ in millions)

Page 12: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 12

Share Repurchase History

$50 $18

$154

$27

($203)

$46

$161

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dele

vera

ging

M&

A Tr

ansa

ctio

n

M&

A Tr

ansa

ctio

n

M&

A Tr

ansa

ctio

n

Page 13: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 13

World Class Customer Base Why customers choose Bemis:

Unique technological and engineering resources

Reduced waste in production and distribution system

Flexible capacity to accommodate new product launches

Reliable supply; Quality product

Investment grade supplier

Global supply capabilities

Page 14: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 14

Strategic Priorities

Optimize & Leverage Our Scale

Grow in Target Areas

Accelerate Innovation

Page 15: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 15

Optimize & Leverage our Scale

Complete Facility Consolidation

World Class Operations Management

Ongoing Specification Consolidation

Page 16: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Grow in Target Areas

Packaging demand from developing countries

• Emerging economies demanding/regulating food safety and convenience features

• Lack of refrigeration creates need for shelf stable packaging

• Increasing consumer populations

Medical and pharmaceutical

industries

• Demographics continue to drive growth

• Modern bio-technology requires more complex packaging

• Opportunities for smart packaging to solve emerging market needs

High barrier packaging opportunities

• New products continue to win business in established U.S. food applications

• Expanding opportunities for high barrier film in Latin America and Asia

Page 16

Page 17: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Accelerate Innovation

Unique Polymer

Technologies

Polyethylene Polyester Nylon Polypropylene Barrier resins

Consumer Convenience

Features

EZ Peel/Reseal IntegraCut / IntegraScore

Microwaveable/self venting

Sustainability

Weight reduction Reduced transportation Reduced packaging material Less food and material waste Lower carbon footprint

Food Safety

Page 17

Proprietary sealants Antimicrobial coatings

Retort technologies

Page 18: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 18

Our Sustainability Commitment

Economic sustainability

Transparency and good governance are fundamental tools for delivering long-term value to shareholders

Environmental Sustainability

2020 Targets: Social Sustainability

We are a responsible member of the communities in which we operate and make safety our number one priority in each of our global operations

Reduce electricity and fuel use by 10%

Reduce use of solvents by 20%

Zero waste to landfills Zero process water

discharged

Page 19: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

2013 Guidance

Adjusted EPS guidance of $2.30 to $2.45

• Reflects ~$40 million of pension contributions • Includes ~$50 million of cash payments for facility

consolidation activities • Cash flow from operations expected to be $500 million

beginning in 2014

Cash flow from operations > $430 million

Capital expenditures of ~$175 million

Page 19

Note: Guidance as of January 31, 2013

Page 20: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 20

An Attractive Investment Strong balance sheet and cash

flow

Disciplined capital allocation

Strong market position

Patented and proprietary

products

Expanding global market reach

World-class customer base

Page 21: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

APPENDIX

Page 22: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 22

Reconciliation of Non-GAAP EPS

2011 Q112 Q212 Q312 Q412 2012Actual Actual Actual Actual Actual Actual

GAAP EPS 1.73$ 0.42$ 0.40$ 0.45$ 0.38$ 1.66$

Special charges:Transaction related costs 0.02 - - - - - Acquisition related costs 0.03 0.02 0.02 0.01 - 0.04 Facility consolidation and other costs 0.24 0.05 0.12 0.14 0.14 0.45 Other charges / gains (0.03) - - - - -

Adjusted EPS 1.99$ 0.49$ 0.54$ 0.60$ 0.52$ 2.15$

Page 23: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 23

Components of Change in 2012 Net Sales Net Sales($ in mi l l ions) 2012 2011 % Change

U.S. Packaging 3,040.1$ 3,110.7$ (2.3%)Currency effect 0.0%Acquisition effect 0.8%Organic growth (decline) (3.1%)

Global Packaging 1,543.5 1,637.2 (5.7%)Currency effect (9.7%)Acquisition effect 2.4%Organic growth (decline) 1.6%

Pressure Sensitive Materials 555.6 574.8 (3.3%)Currency effect (3.1%)Acquisition effect 0.0%Organic growth (decline) (0.2%)

Total Net Sales 5,139.2$ 5,322.7$ (3.4%)Currency effect (3.3%)Acquisition effect 1.2%Organic growth (decline) (1.3%)

Total Year

Note: Organic growth = Volume + Price + Mix impact

Page 24: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Segment Adjusted Operating Profit excluding certain items

2012 2011US Packaging 366.7$ 315.0$

% of Net Sales 12.1% 10.1%

Adjusted for:Facilities Consolidation Expense 42.1 26.3 Policy Harmonization Expense (Income) (13.8) - Total 395.0 341.3 % of Net Sales 13.0% 11.0%

Global Packaging 59.9 112.6 % of Net Sales 3.9% 6.9%

Adjusted for:Facilities Consolidation Expense 26.6 8.6 Acquisition and Other Expense (Income) 4.6 0.7 Policy Harmonization Expense (Income) 16.4 - Total 107.5 121.9 % of Net Sales 7.0% 7.4%

Pressure Sensitive Materials 37.1 33.4 % of Net Sales 6.7% 5.8%

Adjusted for:Facilities Consolidation Expense 2.7 Policy Harmonization Expense (Income) (0.5) - Total 36.6$ 36.1$ % of Net Sales 6.6% 6.3%

Total Year

Page 24

Page 25: INVESTOR BRIEFING - investors.bemis.com · INVESTOR BRIEFING March 2013 . Safe Harbor Statement Page 2 ... film structures Premium manufacturing scale and printing capabilities support

Page 25

Facility Consolidation Financial Summary

Cash CostExpense Paid Savings

Q411 38.4$ 3.3$ 2011 38.4 3.3

Q112 8.3 8.0 Q212 19.7 4.5 Q312 21.4 11.2 5.0 Q412 19.3 11.5 3.0 2012 68.7 35.2 8.0

2013 Estimate 34.0 50.0 45.0

Total Facility Consolidation Impact 141.1$ 88.5$


Recommended