Third Quarter 2018 Review

Transcription

1 Third Quarter 2018 Review November 2, 2018 Delivering solutions, shaping the future. Beauty + Home Food + Beverage Pharma

2 Forward Looking Statements & Non-GAAP Financial Measures This presentation includes forward-looking statements. Forward-looking 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 and assumptions in light of 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-Ks and 10-Qs. The Company does not assume any obligation to update, amend or clarify such statements to reflect new events, information or circumstances after the date of this presentation. During the course of this presentation, certain non-gaap financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available on the company s website at on the Investor s page (click on Events & Presentations / Presentations). 2

3 Agenda Overview and Strategic Priorities Third Quarter 2018 Results Fourth Quarter 2018 Outlook Key Takeaways 3

4 Highlighting Products and Technologies Beauty + Home Connected Sample (EMEA) Fragrance Prestige Pump (North America) Fragrance Prestige Pumps (North America) Facial Skin Care Pump (North America) Double Wall Airless Serum Dispenser (China) Flip Cap Closure (China) 4

5 Highlighting Products and Technologies Pharma PureHale Portable, Upper Respiratory Delivery Solution (Marketing Globally) Ophthalmic Squeeze Dispenser (France) Injectables: Vial Stopper (United States) Bag-on-Valve (China) 5

6 Highlighting Products and Technologies Food + Beverage Flip Lid Closure that Stays with the Bottle (Marketing Globally) Sport Cap for Bottled Water (Latin America, North America) Closure with SimpliSqueeze Valve (North America) Custom Closure with Patented Drip Catcher (North America) Quick Flip Fitment for Stand Up Pouches (Latin America) 6

7 Strategic Priorities 2017 Financial (five year avg) Sales Growth 3% EBITDA Margin 19% Acquisitions Strategic technologies in the US and EU Talent Evolving need for greater capabilities and diversity Geographic Focus Organic Grow th added focus on high growth regions Talent & Leadership added focus on inclusion and diversity Innovation, Operations & Commercial Excellence Successful Transformation Beauty + Home & Corporate Functions 2022 Financial Sales Growth 4-7% EBITDA Margin 20-22% Acquisitions/Partners Global acquisitions, partnerships, incubators, new business models Talent Greater diversity, inclusion and global capabilities Geographic Focus Eastern Europe Americas EU Acquisitions & Partnerships Middle East Asia Added emphasis on High Growth Economies Macro Trends Aging Population Connectivity E-Commerce Supply Chain Health and Wellness Rise of Eastern Economies Shareholder Engagement Sustainability Urbanization 7

8 $750 $700 $650 $600 $550 $500 $450 Third Quarter 2018 Results Reported Q3 Sales (in millions $) $624 $666 Q Q % Core Sales Growth* +7% -3% Currency Effects +3% Acquisitions $0.90 $0.80 $0.70 $0.60 $0.50 Reported Q3 EPS $0.83 * See accompanying slide titled: Forward Looking Statements & Non-GAAP Financial Measures. $0.60 Q Q % Q Reported Rate -28% 23% Q Reported Rate Prior year s adjusted EPS would have been approximately $0.02 lower had our current tax rate been applied (vs the 23% effective tax rate on adjusted EPS) $1.05 $0.95 $0.85 $0.75 $0.65 Adjusted Q3 EPS* $ % Q Rate Adjusted Earnings* +21% $0.99 Q Q % Q Rate Adjusted Earnings* Q3 Highlights Growth in each business segment and geographic region Beauty + Home aided by increased demand for facial care and hair care dispensing solutions Pharma experienced strong demand for our drug delivery devices for allergy, ophthalmic and dermal treatments and components for the injectables market Food + Beverage continued to grow across several categories including infant nutrition and bottled water Some operating leverage was offset by the negative effects of the challenging inflationary environment 8

9 YTD 2018 Results Prior year s adjusted EPS would have been approximately $0.12 lower had our current tax rate been applied (vs the 22% effective tax rate on adjusted EPS) $2,400 $2,000 $1,600 $1,200 $800 $400 $0 Reported YTD Sales (in millions $) $1,843 $2,080 YTD 2017 YTD % Core Sales Growth* +13% +3% Currency Effects +1% Acquisitions $2.80 $2.60 $2.40 $2.20 Reported YTD EPS $2.64 $2.38 YTD 2017 YTD % YTD 2017 Reported Rate -10% 26% YTD 2018 Reported Rate $3.00 $2.20 $1.40 $0.60 Adjusted YTD EPS* $2.77 $3.07 YTD 2017 YTD % YTD 2017 Rate Adjusted Earnings* +11% 26% YTD 2018 Rate Adjusted Earnings* YTD Highlights Robust growth across each segment and geographic region Significant progress on top line this year Excluding restructuring and acquisition costs, we have also delivered strong operating results for the year to date Continue to execute our strategy and our business transformation in parallel with market strength in several areas in which we are the leader * See accompanying slide titled: Forward Looking Statements & Non-GAAP Financial Measures. 9

10 Adjusted EBITDA Adjusted Q3 EBITDA* (in millions $) Adjusted YTD EBITDA* (in millions $) $140 $ % $134 $420 $340 $ % $410 $120 $118 $260 $110 $180 $100 Q Q $100 YTD 2017 YTD 2018 Adjustments: 2017: None 2018: Transformation charges of $24 mil; Acquisition-related costs of $10 mil Adjustments: 2017: None 2018: Transformation charges: $48 mil; Acquisition-related costs of $13 mil * See accompanying slide titled: Forward Looking Statements & Non-GAAP Financial Measures. 10

11 Outlook $0.90 $0.80 $0.70 $0.60 Earnings Per Share $0.77 Q Reported $0.78 Q Adjusted* Prior year s adjusted EPS would have been approximately $0.07 lower had our current guidance tax rate range been applied (vs the 24% effective tax rate on adjusted EPS) $0.81 $0.86 Q Outlook 30-32% Q4 expected tax rate range (prior year Q4 Adj. EPS effective tax rate = 24%) Guidance Fx Rates = Sept. 30, 2018, Spot Rates (Euro Rate = 1.16) Outlook Highlights Core sales growth over the prior year expected for each business segment Tax rate range includes estimated impacts of recent tax reform legislation Capital expenditures estimated range for 2018 is $190 - $210 million Depreciation & amortization estimate for 2018 is $170 million * See accompanying slide titled: Forward Looking Statements & Non-GAAP Financial Measures. 11

12 Presentation Key Takeaways Another solid quarter of strong top line core growth Good profitability, despite a mix of headwinds CSP Technologies integration going well Fourth quarter outlook o o Top line core growth expected in each segment Higher base for YOY comparison, inflation headwinds continuing and weaker beverage volumes in China We continue to deliver on the short-term while remaining focused on our long-term strategic priorities 12