The Leader in Dispensing Innovation

Transcription

1 The Leader in Dispensing Innovation This presentation was posted to the AptarGroup web site on December 18, 2008 and information contained in it is relevant for that date. AptarGroup is under no obligation to update the information contained in this presentation.

2 Forward-Looking Statements This presentation includes forward-looking statements. Forwardlooking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management s beliefs as well as assumptions made by and information currently available to management. Accordingly, the Company s actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist in the Company s operations and business environment, including, among other factors, those described in documents filed by the Company with the Securities and Exchange Commission, specifically its Form 10-K s and 10-Q s. Readers are cautioned not to place undue reliance on forward-looking statements. 2

3 Our Story Leader of the dispensing systems niche of the packaging industry Adding value to the world s best known products Providing convenience to consumers everyday Diversified portfolio Products Markets Geographical Presence 3

4 Our Story Strong long-term financial performer 42 consecutive years of revenue growth An industry leader in operating margins Strong balance sheet Experienced, focused management team 4

5 Our Expertise Providing creative solutions Design and prototyping Precision injection molding High speed assembly Clean-room environments for pharmaceutical dispensing systems 5

6 Our Products 11% Pumps 15% 50% Dispensing Closures Valves 24% Other 6 % of 2007 Annual Sales

7 Our Customers ASTRAZENECA COTY ESTÉE LAUDER 7 Company names and/or trademarks used in this presentation are the property of their respective owners and are used for identification purposes only

8 Our Segments % 53% 21% 26% 39% 20% Sales Segment Income* 8 Beauty & Home Pharma Closures * Income before taxes, interest, and stock option and corporate expenses

9 Our Presence Principal locations 9

10 Sales by Region ROW U.S. 26% Europe 63% 11% 10 % of 2007 Annual Sales

11 Currency Effects 30 Sales Growth CAGR Core 7.0% Currency 1.7% YOY Growth Rates (4) (2) '99 '00 (7) '01 '02 '03 '04 '05 '06 '07 Acq 2.7% Rptd 11.4% % Ranges Core 2-12% Currency (7)-11% Acq 0-14% Rptd 1-20% 11 Core Currency Acq

12 Competitive Environment Beauty & Home Pharma Closures Pumps Valves Pumps Valves AptarGroup X X X X X Public Rexam X X X Consort Medical (Bespak) X 3M X MeadWestvaco - Calmar X X Private Precision X Summit X Coster X X Lindal X PAI Partners Berry Plastics X X 12

13 Strong Long-term Financial Performance $ in millions $2,000 $1,500 $1,000 $500 $0 Sales 12% CAGR '93 '95 '97 '99 '01 '03 '05 '07 $150 Net Income $ in millions $100 $50 14% CAGR 13 $0 '93* '95 '97 '99 '01 '03 '05 '07 * Before cumulative effect of change in accounting for income taxes ** Beginning in 2006, includes net expense for stock options

14 Strong Long-term Financial Performance $150 Free Cash Flow $ in millio ions $100 $50 $0 '93 '95 '97 '99 '01 '03 '05 '07 Note: Free Cash Flow = Cash Flow From Operations Capital Expenditures 14

15 Third Quarter 2008 Revenue EPS $ in mill lions $600 $500 $400 $300 $485.7 $532.2 $0.70 $0.60 $0.50 $0.40 $0.30 $0.56* $0.57 $200 Q Q $0.20 Q Q Impact of Exchange Rate Changes = +7% * Q earnings per share include $.03 per share positive effect from tax law changes in Germany. 15

16 Year-to-Date 2008 Revenue $1,408.4 $1,615.8 $1.48* EPS $1.72 $ in millio ons $1,400 $800 $1.40 $0.80 $200 YTD 2007 YTD 2008 $0.20 YTD 2007 YTD 2008 Impact of Exchange Rate Changes = +9% * YTD 2007 earnings per share include $.03 per share positive effect from tax law changes in Germany. 16

17 Strong Balance Sheet Net Debt to Net Capital = 8% Annual dividend = $.60 per share Repurchased approx 535,000 shares in Q3 Remaining shares authorized for repurchase = 4.5 million 17

18 Beauty & Home YTD % 36% Sales Segment Income Anticipated long-term annual core sales growth rate: 4-7% 18

19 Beauty & Home Segment Sales By Market (% of 2007 Sales) Fragrance/Cosmetic 60% Personal Care 32% Household 5% Other 3% Segment Total 100% 19

20 Beauty & Home Segment ($ in millions) Q Q Net Sales $258.6 $ % Income $25.6 $ % Profitability 9.9% 8.0% YTD 2007 YTD 2008 Net Sales $750.8 $ % Income $78.1 $ Profitability 10.4% 9.2% 20 NET SALES: Impact From Changes in Exchange Rates = +6% Q3 and 9% YTD

21 Beauty & Home Trends Sun Screens, Organics, and men s grooming Samples Reduction in package sizes (Travel sizes, single-use, cost saving/smaller containers) Input cost pressure Economic uncertainty = customers delay orders 21

22 Innovative Advantages Sampling systems Bag-on-valves Preservative-free airless systems Decorative technologies 22

23 Closures Segment YTD 2008 Sales 26% 17% Segment Income 23 Anticipated long-term annual core sales growth rate: 5-10%

24 Closures Segment Sales By Market (% of 2007 Sales) Personal Care 60% Food/Beverage 27% Household 10% Other 3% Segment Total 100% 24

25 Closures Segment ($ in millions) Q Q Net Sales $126.5 $ % Income $12.5 $ % Profitability 9.9% 8.9% YTD 2007 YTD 2008 Net Sales $368.0 $ % Income $39.8 $36.7-8% Profitability 10.8% 8.7% 25 NET SALES: Impact from changes in exchange rates = +7% Q3 and YTD

26 Closures Trends Conversion from screw-off caps to dispensing closures Smaller packages Package differentiation (inverted packages, easy-open jar lids ) Input cost pressure Economic uncertainty = Customers delay orders 26

27 Innovative Advantages Silicone valve technology Precision dispensing High-efficiency molding Bi-injection molding 27

28 Pharma Segment YTD % 22% Sales Segment Income Anticipated long-term annual core sales growth rate: 6-10% 28

29 Pharma Segment ($ in millions) Q Q Net Sales $100.6 $ % Income $29.4 $ % Profitability 29.2% 29.1% YTD 2007 YTD 2008 Net Sales $289.6 $ % Income $78.4 $ % Profitability 27.1% 28.3% 29 NET SALES: Impact From Changes in Exchange Rates =+7% for Q3 and 11% YTD

30 Pharma Trends Rising number of allergy, asthma and pulmonary conditions and treatments Major pharmaceutical players seek alternative drug delivery devices Increasing use of generics in the U.S. Developing markets opening up opportunities Soft economic conditions could adversely impact certain non-respiratory categories 30

31 Innovative Advantages Progressive delivery technologies (dose indicators, dry powder, patientindependent) Clean-room manufacturing In-house elastomer expertise Laboratory services 31

32 Summary Market demands convenience and differentiation Committed to being the innovative leader Diversity shields us from short-term market or geographic pullbacks Food/beverage still opening up Growth opportunities in the pharmaceutical market 32

33 The Leader in Dispensing Innovation