INVESTOR BRIEFING KEYBANC BASIC MATERIALS & PACKAGING CONFERENCE

Transcription

1 INVESTOR BRIEFING KEYBANC BASIC MATERIALS & PACKAGING CONFERENCE September 12, 2017 NYSE: BMS Our vision: A passionate commitment to the growth and success of our customers will make Bemis the clear choice for inspired packaging solutions

2 SAFE HARBOR STATEMENT This presentation includes forward-looking statements within the meaning of the Safe Harbor provisions of the Securities Litigation Reform Act of 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 forwardlooking 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, and changes in governmental regulation. 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 ( 2

3 BEMIS: INSPIRED PACKAGING SOLUTIONS We are: a leading solution-provider of flexible and semi-rigid plastic packaging a strong global business with a long-term focus a S&P Dividend Aristocrat with 34 consecutive years of annual dividend increases committed to creating long-term, sustainable shareholder value 17,500 employees BMS NYSE ticker Neenah, WI headquarters 1858 established Leading technologies. Broad product line. Global size & scale. Leading technologies. Broad product line. Global size & scale. 3

4 THE FLEXIBLE PACKAGING SPACE How we succeed focus innovation. Innovation & sophistication accelerate growth continuously improve the big middle. Recapitalization Size, scale, service 4

5 BEMIS FINALIZES ACTIONS TO REDUCE COST STRUCTURE initial plan announced June 30, full analysis and plan now complete. finalized plan shared externally on targeted savings plan of $65million an increase from the original estimated plan of $55-60million, as announced June 30, 2017 total cost to implement plan is $100-$125million of which $70-$80million is pre-tax cash expense savings timeline: 5-10% in 2017, 50-60% in 2018, remainder in EPS guidance established on July 27, 2017 reflects the 2017 benefits of this plan 5

6 RESTRUCTURING AND COST SAVINGS PLAN RATIONALE improve efficiency & profitability align manufacturing & administrative cost structure with the current business environment further position the Company for long-term success Bemis Company is focused on creating value for our shareholders. 6

7 RESTRUCTURING AND COST SAVINGS PLAN plan includes: a total of 4 plant closures saving ~$17million an increase from the June 30, 3017 announcement which detailed 2 plant closures; work performed at these facilities will be transferred to other Bemis locations consolidation of office space saving ~$5million certain administrative offices in the U.S. and Latam will be relocated to existing company-owned buildings a reduction of 500 admin positions saving ~$35million an increase from the original estimated plan of 300 positions, as announced June 30, other cost reductions saving ~$8million includes cost efficiency across a variety of operational and administrative activities and functions; examples include: consolidating external warehouses for inventory storage, reducing transportation costs associated with shipping product, and optimizing travel costs

8 WHY INVEST IN BEMIS? strong management & aligned team committed to creating long-term shareholder value profit improvement plan underway multiple contributors robust cash flow commitment to return FCF to shareholders global pipeline of accretive projects robust innovation pipeline and asset recapitalization program 8

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10 APPENDIX: OUR BUSINESS

11 WHERE WE OPERATE 58 FACILITIES 12 COUNTRIES 70%* 7%*...5%* ~17,500 EMPLOYEES WORLDWIDE 18%* $4.0B * PERCENTAGE OF TOTAL BEMIS REVENUE 2016 REVENUE 11

12 BEMIS COMPANY PURE PACKAGING ($ in millions) U.S. Packaging $2, Net Sales Global Packaging $1, Net Sales NORTH AMERICA 50% 27% 12% 11% LATIN AMERICA HEALTHCARE* EUROPE ASIA-PACIFIC *Healthcare includes all medical device and pharmaceutical business globally both global and U.S. healthcare facilities roll up to the Global Packaging Segment 12

13 OUR CUSTOMERS Why customers choose Bemis: Reliable supply; quality product Technology leader with differentiated product Global breadth & scale Longevity & financial stability Broad customer base spanning from large CPGs to small, regional brands 13

14 OUR SUSTAINABILITY COMMITMENT Economic Sustainability Environmental Sustainability Social Sustainability Delivering value to stakeholders Operating for the long term with a sustainable business philosophy Contributing to the economic stability of our communities Reducing food waste Developing sustainable packaging solutions Minimizing manufacturing waste Reducing our impact on the planet Prioritizing employee safety Supporting programs that promote health and well-being in our communities Providing a positive workplace with opportunities for growth and success 14

15 OUR LEADERSHIP Bill Austen, President & CEO Driven leader focused on improving Bemis financial performance, helping customers succeed, and creating a high-performance culture Named CEO August 2014 Prior 14 years at Bemis: various leadership roles, including leading Bemis expansion into Asia Prior experience includes 20 years in leadership roles at General Electric Bachelor of Engineering degree in Marine Engineering from the State University of New York Maritime College; Master s degree in Engineering Administration from George Washington University Mike Clauer, SVP & CFO Disciplined leader focused on creating value and influencing change Named CFO December 2014 Prior experience includes BWAY, Apogee Enterprises, Budget Group, and PepsiCo Bachelor of Science degree in Accounting from California State Polytechnic University in Pomona, California Licensed Certified Public Accountant (CPA) Committed to creating long-term shareholder value 15 *See bemis.com for information on the entire Bemis leadership team

16 OUR PRIMARY MANUFACTURING PROCESSES vertical integration compounding & extrusion printing laminating slitting / rewinding (unique, high-tech processes) technology. service. scale. 16 *Additional core processes include: manufacturing rigid plastic parts, metallizing, bagging, pouching, value-added services, and others

17 THE CLEAR CHOICE FOR HEALTH & WELLNESS Healthy snacking in a one-handed world Freshness Less preservatives more sophisticated packaging 17

18 THE CLEAR CHOICE FOR SUSTAINABILITY Extend shelf life To reduce food waste Reduce material weight & volume Reduce & reuse inprocess waste 18

19 THE CLEAR CHOICE FOR SUSTAINABILITY Reduce material Flexibles replace blow-molded bottles 70% less plastic Reduce material weight & volume Flexibles replace metal can 19

20 THE CLEAR CHOICE FOR SOPHISTICATION & DIFFERENTIATION Display Shelf appeal & impression 20

21 THE CLEAR CHOICE FOR FOOD SAFETY Evolving Food Regulations Food Safety Heightened consumer awareness 21

22 THE CLEAR CHOICE FOR HEALTHCARE Need for zero defects Value Proposition To meet new market expectations, BD will be deploying a Policy of Zero Escapes across all our supplier base this year. Sam Machour, VP Quality Mgmt Consistent quality creates value 22

23 THE CONVERSION TO FLEXIBLE PACKAGING The demand for flexible packaging Logistics savings Shelf appeal & billboard Less waste at the grocer The speed of conversion Driven by customers' filling line reinvestment 23

24 INORGANIC GROWTH STRATEGY adjacencies Steripack speed to market Steripack proprietary technologies complementary geographies Emplal Steripack 24

25 APPENDIX: SUPPLEMENTAL INFORMATION

26 2016 RESTRUCTURING PROGRAM (LATIN AMERICA) Announced Restructuring Program in July 2016 Closure of four legacy plants in Latin America two closed by Dec 2016 (includes the largest of the 4 total facilities) two to be closed during 2017 no change in net production capacity (moving production to new Emplal facilities) Program cost estimated $28-$30million Program Savings ~$16m (full run-rate: 2018) Approximately half of the savings originally intended to offset headwinds from the economic environment in Latin America 26

27 RETURNING CASH TO SHAREHOLDERS Over $1b of value returned to shareholders (millions) $350 $300 $250 $200 $150 $100 $77 $152 $150 $144 + Emplal acquisition + SteriPack acquisition $50 $104 $108 $108 $110 $114 $ Dividends Share Repurchases FCF 27

28 Feb 2016 SHARE REPURCHASE AUTHORIZATION 20 million shares authorization increase 3-5 years Cash flow funds CAPEX Remaining FCF returned to shareholders (divd & share repurchase) 28

29 RECONCILIATION OF NON-GAAP EPS Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Continuing Operations: Diluted earnings per share, as reported $ 0.59 $ 0.53 $ 0.72 $ 0.64 $ 2.48 $ 0.58 $ 0.67 $ 0.64 $ 0.58 $ 2.47 $ 0.58 $ 0.60 $ 0.61 $ 0.57 $ 2.36 Non-GAAP adjustments per share, net of taxes Restructuring costs Acquisition-related costs Gain on Paper divestiture (0.06) (0.06) Gain on sale of land and building (0.02) (0.02) Diluted earnings per share, as adjusted $ 0.60 $ 0.67 $ 0.75 $ 0.67 $ 2.69 $ 0.61 $ 0.67 $ 0.67 $ 0.60 $ 2.55 $ 0.52 $ 0.60 $ 0.61 $ 0.57 $ 2.30 Compared to prior year, in 2016, net currency translation decreased EPS by approximately $

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