Delivering Solutions. Shaping the Future.

Transcription

1 Delivering Solutions. Shaping the Future. August 2014

2 Forward-Looking Statements 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 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 rely on forward-looking statements. The Company does not assume any obligation to update, amend or clarify such statements to reflect events, new information or circumstances after the date of this presentation. 2

3 Our Background Leader in the dispensing solutions niche of the packaging industry Providing brand differentiation and consumer convenience Consistent long-term focus, stability, and financial results 3

4 Fundamental Strength Maintaining a diversified business model: Products and services End markets Geographic regions Quality customers 4

5 Our Delivery Solutions Aerosol Valves & Actuators Metered Dose Valves Nasal Pumps Fragrance Pumps Lotion Dispensers Dispensing Closures Sampling Systems Bag-on-valves Cosmetic Pumps Simplisqueeze Silicone Valves Airless Systems Dose Counters & Indicators Silicone Tip Dispensing Bonded Aluminum-to- Plastic (BAP) Food Service Dispensing Components Lab & Analytical Services Dry Powder Inhalers Elastomer Components 5

6 Our Expertise Market and consumer insight Creative and customized solutions Precision injection molding High-speed assembly Elastomer formulation and production Operating in a regulatory environment 6

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

8 Core Strategy Elements Focus on Market Application Fields Expand to be close to our customers Invest in R&D (historically 3% of sales) Aptar Cali Make key acquisitions Well managed companies Unique technology Geographic expansion Capacity/market share 8

9 Sales by Region Global presence in 20 countries USA 25% Asia 6% Latin America 11% Europe 58% 9

10 Sales Growth Analysis ( ) Annual Range CAGR Low High CORE 6% -7% 14% CURRENCY 1% -7% 11% ACQUISITIONS 2% 0% 14% REPORTED 9% -11% 20% 10

11 Competitive Landscape We are #1 or #2 in the various markets we serve No competitor fully matches our: Broad product offering Geographic presence Multiple markets served Competitors include privately held companies and divisions of certain public companies 11

12 $ in millions $ in millions Strong Long-term Financial Performance $3,000 $2,500 Sales $2,000 $1,500 $1,000 $500 $0 9% CAGR '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 $200 Net Income $150 $100 $50 $0 11% CAGR 93 '94'95'96'97'98'99'00'01'02'03'04'05 06 '07'08'09'10'11'12'13 12

13 $ in millions Second Quarter 2014 Revenue and EPS Revenue EPS* $0.77 $800 $641 $671 $0.80 $0.79 $600 $0.60 $400 $0.40 $200 Q Q $0.20 Q Q Core Growth (excluding currency effects) = 4% * 2013 EPS excludes negative impact of approx. $0.04 from costs related to our restructuring initiative 13

14 $ in millions Six Months Year-to-Date 2014 Revenue EPS* $1,500 $1,347 $1,259 $1.50 $1.40 $1.49 $1,200 $1.20 $900 $600 $0.90 $300 YTD 2013 YTD 2014 $0.60 YTD 2013 YTD 2014 Core Growth (excluding currency and acquisition effects) = 6% * 2013 EPS excludes negative impact of approx. $0.09 from costs related to our restructuring initiative 14

15 Capital Allocation Net Debt to Net Capital 13%* Investing in ourselves Capital expenditures that drive growth Research & development Acquisitions Dividends - $1.12 per year Share repurchase program 15 * At June 30, 2014

16 $ in Millions Dividends Paid and Stock Value Repurchased $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $ Dividends paid Value repurchased

17 Our Business Segments Market focus under three brands: Beauty Personal Care Home Care Prescription Drug Consumer Health Care Injectables Food Beverage Each brand actively promotes ALL of our products and services to customers in its markets 17

18 Our Segments (YTD 2014) Sales Segment Income* 58% 58% 12% 29% 13% 30% 18 * Earnings before net interest expense, certain corporate expenses, restructuring initiatives, and income taxes.

19 Markets Sales by Market (YTD 2014) 46% 46% 8% Beauty Personal Care Home Care 19

20 Second Quarter 2014 Results ($ in millions) Q Q Net Sales* $375.0 $ % Segment Income $30.3 $ % Profitability 8.1% 7.1% ($ in millions) YTD 2013 YTD 2014 Net Sales* $738.5 $ % Segment Income $54.8 $ Profitability 7.4% 7.1% * Changes in exchange rates did not impact sales growth Anticipated long-term annual core sales growth rate: 4-7% 20

21 Key Drivers Differentiation through form and function Growth of skin care products Increase in products targeted toward men 21

22 Key Drivers Consumers demand for convenience Untapped application fields such as laundry care and home cleaners Growth in Latin America and Asia 22

23 Markets Sales by Market (YTD 2014) 55% 45% Food Beverage 23

24 Second Quarter 2014 Results ($ in millions) Q Q Net Sales* $83.5 $ % Segment Income $11.9 $ % Profitability 14.2% 13.8% ($ in millions) YTD 2013 YTD 2014 Net Sales $168.8 $180.2 Segment Income $20.4 $21.5 Profitability 12.1% 11.9% +7% +5% * Sales growth includes positive impact from changes in exchange rates of +1% for the YTD, no impact on Q2 Anticipated long-term annual core sales growth rate: +10% 24

25 Key Drivers Consumers demand for convenience, cleanliness and safety Continuing conversion from non-dispensing packaging Proven abilities lead to larger projects 25

26 Key Drivers Leveraging our expertise and technology Entering and growing within new application fields 26

27 Markets Sales by Market (YTD 2014) 53% 27% 20% Prescription Drug (Rx) Consumer Health Care (CHC) Injectables 27

28 Second Quarter 2014 Results ($ in millions) Q Q Net Sales* $182.9 $ % Segment Income $50.4 $ % Profitability 27.6% 27.0% ($ in millions) YTD 2013 YTD 2014 Net Sales $351.8 $ % Segment Income $96.4 $ % Profitability 27.4% 27.0% * Sales growth includes positive impact from changes in exchange rates of +3% in both Q2 and YTD Anticipated long-term annual core sales growth rate: 6-10% 28

29 Key Drivers Least economically sensitive segment, particularly in prescription and injectables markets Increasing access to healthcare in developing markets Demographics (aging population, disease prevalence, self-medication) 29

30 Key Drivers Trusted partners are critical to navigating the challenging regulatory process and providing laboratory and analytical services New application fields for easy-to-use devices Expanding our offering and capabilities with elastomer components 30

31 Summary Diversity of our business helps shield us from short-term market or geographic pullbacks Our market-focused strategy will continue to present new opportunities Consumers demand for convenience continues to grow Committed to being the innovative leader and protecting our intellectual property 31

32 The leader in dispensing innovation. Visit us at aptar.com aptar.com