Jarden Investor Presentation. October 14, 2015

Similar documents
Jarden Investor Presentation. November 2015

Investor Presentation

Morgan Stanley Global Consumer and Retail Conference

Newell Brands Announces Strong Fourth Quarter and Full Year Results

Q Supplement. August 6, 2014

Energizer Investor Call. November 15, 2018

Hill-Rom Fourth Quarter 2016 Financial Results. November 3, 2016

Investor Presentation. February 2018

OMAM. Investor Presentation. Fourth Quarter 2014

CAGNY Investor Presentation February 20, 2014

ACQUISITION OF CARAUSTAR INDUSTRIES Significantly Enhances Margins and Free Cash Flow Strengthening its Leadership in Industrial Packaging

Acquisition of Dealer Inspire and Launch Digital Marketing

Our Transformation Continues Sidoti NDR May 29-30, 2018

Newell Brands Announces Third Quarter Results

Important Information for Investors and Stockholders

FirstService Corporation

Newell Brands Announces Third Quarter 2018 Results

SS&C Technologies (NASDAQ:SSNC)

Investor Presentation. Second Quarter 2018 NASDAQ: BECN BECN

Forward-Looking Statements

Our Transformation Continues. March 21, 2018

Acquisition of Jack Wolfskin. November 2018

Xylem Agrees to Acquire Sensus to Broaden Portfolio and Enhance Growth Platform AUGUST 15, 2016

Ingersoll Rand s Acquisition of Precision Flow Systems (PFS) February 11, 2019

Forward-Looking Statements

Energizer to Acquire Spectrum Brands Global Battery and Portable Lighting Business. January 16, 2018

FOURTH QUARTER 2017 EARNINGS CALL //// MARCH 1, 2018

A Further Step in Broadening BNP Paribas Retail Banking Presence in the Western US. Proposed Acquisition of Community First Bankshares

2018 FOURTH QUARTER EARNINGS CALL

july 2012 CEB to Acquire SHL Compelling Value Creation, Growth, and Scale Opportunity

(Unaudited) Reconciliation GAAP to Non-GAAP (In thousands) Pro Forma As Adjusted. Pro Forma Adjustments. Pro Forma As Adjusted. Pro Forma Adjustments

Q Earnings Presentation

Second Quarter 2017 Reconciliation of Non-GAAP Financial Measures

Multi-Color Corporation Investor Update

Newell Brands Announces Fourth Quarter and Full Year 2018 Results

A Trusted Technology Partner to Medical and Advanced Technology Equipment Manufacturers

Q3 Fiscal Year 2018 Investor Presentation Financial Results Conference Call

Stericycle Investor Presentation Q NASDAQ: SRCL

3Q 2017 Earnings Presentation. November 9, 2017

Acquisition of Signode: Global Leader In Transit Packaging. December 19, 2017

ESTABLISHING A GLOBAL LEADER IN WORKWEAR 1. August 14, 2017

Fourth Quarter and FY 2018 Earnings Presentation November 28, 2018

Q4 AND FULL YEAR 2017 UPDATE FEBRUARY 16, 2018

McCormick to Acquire Reckitt Benckiser s Food Division. Investor Presentation / July 19, 2017

Fourth Quarter and Full Year Earnings Call March 1, 2019

SYNNEX Concentrix Division Announces the Acquisition of Convergys

United Rentals to Acquire RSC Holdings

Hawkins, Inc. 612/ Rosegate Roseville, MN HAWKINS, INC. REPORTS FOURTH QUARTER, FISCAL 2018 RESULTS

Fourth Quarter & Full-Year 2017 Earnings Thursday, March 1, 2018

Newell Brands Announces Strong Second Quarter Results

NLSN 4Q and FY 2011 Investor Presentation

Third Quarter Fiscal 2013 Financial Results. June 19, 2013

The Hartford Financial Services Group, Inc. May 2018 Investor Overview of The Hartford

Dr Pepper Snapple Group

Proposed Acquisition of Alent plc Investor Presentation July 13, 2015

Newell Rubbermaid Reports Strong Fourth Quarter Results

Reports Strong Net New Bookings and Recurring Revenue for Fiscal Year 2017

Masco Corporation Third Quarter 2018 Earnings Presentation. October 30, 2018

Fourth Quarter and Full Year 2018 Financial Review and Analysis

Project Mountain Investor Presentation. AECOM Investor Presentation. World Trade Center Manhattan, New York, U.S.A.

First Quarter 2018 Earnings Thursday, May 3, 2018

ZEBRA TECHNOLOGIES SECOND-QUARTER 2016 RESULTS. August 9, 2016

Baird 2017 Global Industrial Conference. Chuck McLaughlin Senior Vice President & CFO

First Quarter 2016 Earnings

Sept Treasurer. Vice President Finance & Chief Financial Officer

Second Quarter 2018 Earnings Presentation May 8, 2018

Investor Presentation. August 2018

Safe Harbor. Non-GAAP Financial Information

Financial and Operating Results. Second Quarter and First Half 2016

CIRCOR Reports Fourth-Quarter and Year-End 2018 Financial Results

A Winning Combination: Creating a Consumer Goods Powerhouse

SS&C Technologies (NASDAQ:SSNC) Investor Presentation February 2015

ENTERCOM COMMUNICATIONS CORP. REPORTS FIRST QUARTER RESULTS

SIDOTI & COMPANY CONFERENCE MARCH 2018

INVESTOR PRESENTATION

UBS Healthcare Conference John J. Greisch, President and CEO. May 22, 2017

CUMULUS MEDIA Reports Operating Results for Fourth Quarter and Full Year 2018

A Transformation NASDAQ: LCUT March 2018

INVESTOR PRESENTATION

Overview Presentation to Investors. February 2016

Multi-Color Corporation Investor Update

Quarterly Investor Presentation

Deutsche Bank Global Consumer Conference

A Trusted Technology Partner to Medical and Advanced Technology Equipment Manufacturers

Investor Presentation

First Quarter 2018 Financial Results. January 26, 2018

Creating Value by Accelerating Transformation & Growth

December 31, 2018 % Chg. December 31, 2017 (as adjusted) 1 (as adjusted) 1

Third Quarter 2017 Earnings Presentation. October 24, 2017

DANAHER CORPORATION Second Quarter 2018 Earnings Release. July 19, 2018

William Blair Growth Stock Conference June 15, Member FINRA/SIPC

Second Quarter 2018 Earnings Tuesday, August 7, 2018

First Quarter 2018 Financial Review and Analysis (preliminary, unaudited)

DANAHER TO ACQUIRE GE LIFE SCIENCES BIOPHARMA BUSINESS ( GE Biopharma ) February 25, 2019

WYNDHAM DESTINATIONS Supplementary Financial Information

Q Earnings Call Presentation

Earnings Presentation October 25, 2018

Gardner Denver Reports Strong Second Quarter 2018 Results and Raises Full Year 2018 Adjusted EBITDA Midpoint Guidance

Please note that the following presentation contains financial projections and other forward-looking statements that are specific to the date of the

Third Quarter 2018 Earnings Thursday, November 8, 2018

Transcription:

Jarden Investor Presentation October 14, 2015

Cautionary Statement Please note that in this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. Such discussion and statements will often contain words as expect, anticipate, believe, intend, plan and estimate. Such forward-looking statements include statements regarding the Company s adjusted basic and diluted earnings per share, expected or estimated revenue, the outlook for the Company s markets and the demand for its products, estimated sales, meeting financial goals, segment earnings, net interest expense, income tax provision, earnings per share, restructuring costs and other noncash charges, cash flows from operations, consistent profitable growth, free cash flow, future revenues and gross operating and EBITDA margin improvement requirement and expansion, organic net sales growth, performance trends, bank leverage ratio, the success of new product introductions, growth in costs and expenses, the impact of commodities, currencies, and transportation costs and the Company s ability to manage its risk in these areas, repurchase of shares of common stock from time to time under the Company s stock repurchase program, our ability to raise new debt, the Company s ability to fund and complete the acquisition of the entities comprising the Jostens business, and the impact of acquisitions, divestitures, restructurings and other unusual items, including the Company s ability to successfully integrate and obtain the anticipated results and synergies from its consummated acquisitions. These projections and statements are based on management's estimates and assumptions with respect to future events and financial performance, and are believed to be reasonable, though are inherently difficult to predict. Actual results could differ materially from those projected as a result of certain factors. A discussion of factors that could cause results to vary is included in the Company s periodic and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. This presentation also contains non-gaap financial measures. For purposes of Regulation G, a non-gaap financial measure is a numerical measure of a company's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of operations, balance sheets, or statements of cash flows of the Company; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-gaap financial measures to the most directly comparable GAAP financial measures. These non-gaap measures are provided because management of the Company uses these financial measures in monitoring and evaluating the Company s ongoing financial results and trends. Management uses this non-gaap information as an indicator of business performance, and evaluates overall management with respect to such indicators. Additionally, the Company uses non-gaap financial measures because the Company's credit agreement provides for certain adjustments in calculations used for determining whether the Company is in compliance with certain credit agreement covenants, including, but not limited to, adjustments relating to non-cash impairment charges of goodwill, intangibles and other assets, certain restructuring costs, acquisition-related and other costs, non-cash purchase accounting adjustments, elimination of manufacturer s profit in inventory, Venezuela related charges (deconsolidation, hyperinflationary and foreign exchange-related charges), non-cash stock-based compensation costs, gain (loss) on sale of certain assets, loss on early extinguishment of debt, non-cash original issue discount amortization and other items, as applicable. These non-gaap measures should be considered in addition to, not a substitute for, measures of financial performance prepared in accordance with GAAP. 2

Overview of the Transaction Jarden will acquire Visant Holding Corp., the parent company of Jostens, for approximately $1.5 billion Overview and Impact Enterprise value of approximately $1.5 billion Jostens generates approximately $740 million in annual revenue Implied acquisition multiple of approximately 7.5x EBITDA, excluding NOL value received through Visant Expected to be accretive to margins, cash flow and earnings per share for 2016 Expected to be accretive to Jarden s 2016 adjusted EPS by approximately 5-7%, financing dependent Expected Sources of Funding Jarden has received a financing commitment for the full amount it needs to consummate the transaction and may choose to fund a portion of the transaction with excess cash on hand, bonds, bank debt and / or common equity Timing Expected to close in the fourth quarter of 2015 3

Transaction Rationale

Jostens is a Meaningful Addition to Our Portfolio and Provides Compelling Cross Selling Opportunities Jostens is an iconic brand and trusted partner to schools and students nationwide, helping them celebrate moments that matter since 1897 with high quality products and leading market positions Consistent financial performance, solid margins, and strong cash flow Experienced and visionary management team Best-In-Class production technology and manufacturing capabilities; stateof-the-art facilities in jewelry, printing, and apparel Staple characteristics; proven resilience in economic cycles Potential for creation of near and long-term shareholder value Transaction Meets Each of Jarden s Disciplined Acquisition Criteria 5

The Jostens Transaction Meets Jarden s Disciplined Acquisition Criteria for Branded Consumer Products Companies Jarden 1 Category-leading positions in niche markets 2 Products that generate recurring revenue Jostens Premium brand with #1 market positions across core categories; yearbooks, rings, caps and gowns, diplomas and regalia, and varsity jackets (1) Significant presence in the education and achievement channel with customer retention rates of 90%+ across all products annuity-like repeat purchases 3 Defensible moats around the business 4 Strong cash flow characteristics Strong financial performance in recessionary as well as growth markets supported by ~600 strong representative network providing unique access to the customer Generates strong and consistent free cash flow given high margins, low cap ex, and predominantly domestic business 5 Accretive to earnings Expected to be accretive to Jarden s FY16 adjusted EPS by approximately 5-7%, financing dependent 6 Attractive transaction valuation Note: (1) Management estimates; North American market share estimates from management presentation. Entered into exclusive discussions with the financial sponsor regarding an end of fund asset Acquisition multiple of ~7.5x EBITDA; relatively low cost financing market 6

Continued Portfolio Balance and Diversification Standalone Segment Breakdown (1) Combined Est. Segment Breakdown (1) (2) Branded Consumables 41% Outdoor Solutions 30% (2) Branded Consumables 38% Outdoor Solutions 35% (3) Process Solutions 5% Consumer Solutions 24% Process Solutions 4% Consumer Solutions 23% Standalone Net Sales by Customer (1) Combined Est. Net Sales by Customer (1) Other 71% Other 74% (4) Sporting Goods 3% Int'l Mass B 1% Int'l Mass A 1% Dot Com 4% Mass D 1% Club B 1% Club A 3% Mass B 3% Mass A 12% Sporting Goods 3% Int'l Mass B 1% Int'l Mass A 1% Dot Com 3% Mass D 1% Club B 1% Mass B 3% Club A 2% Mass A 11% Notes: 1. Percentage breakdown based on latest fiscal year end net sales. 2. Assumes Waddington Group Net Sales reported on a combined basis is part of the Branded Consumables segment. 3. Assumes Jostens Net Sales reported on a combined basis is part of the Outdoor Solutions segment. 4. Jostens latest fiscal year end sales included in Other. 7

While Strengthening Jarden s Overall Financial Position Significant increase in Jarden s scale with combined annualized Net Sales of approximately $10 billion Expected to be accretive to 2016 earnings per share On a combined, annualized basis, Jostens is expected to be accretive to Jarden s FY2016 adjusted EPS by approximately 5-7%, financing dependent Track record of consistent revenue performance with high margin and cash flow generation Jostens Gross Profit and Adjusted EBITDA margins are expected to enhance overall margins Combined Adjusted EBITDA margins will enhance Jarden s cash flow profile Continued commitment to long-term Bank Leverage Ratio at or below 3x 8

THE MOST TRUSTED PARTNER IN CELEBRATING MOMENTS THAT MATTER 9

Summary Jostens (the Company ) is the leading manufacturer and marketer of high quality yearbooks, class and championship rings, caps and gown, diplomas, and varsity jackets serving the K-12 educational, college and professional sports markets The Company currently has #1 market positions in its core categories (1) Jostens Overview Net Sales by Product and Channel College & Professional 13% Scholastic 44% Resilient products with sentimental characteristics Jostens sales are primarily domestic. The Company distributes its products through approximately 600 independent and employed sales representatives covering over 40,000 schools nationwide The Company s sales representatives provide unique access to the difficult-to-enter academic market based on strong and trusted relationships with administrators, faculty, students, families and the educational community Yearbook 43% Employed Sales Representatives 19% 8 principal manufacturing facilities located across the U.S., Canada, and the Dominican Republic Headquartered in Minneapolis, Minnesota Independent Sales Representatives 81% Company History: 1897: Founded by Otto Josten in Owatonna, MN 2004: KKR and DLJ MBP combine Von Hoffman, AKI and Jostens to create Visant Corporation 2007: Acquired Neff Motivation, Inc., a provider of apparel to the scholastic market segment Note: (1) Management estimates; North American market share estimates from management presentation. 2014: Hired Chuck Mooty and new management team to reinvigorate vision and growth 10

Segment Overview Scholastic 44% of Revenue #1 Provider in its categories: Class Rings, Caps and Gowns, Diplomas, Announcements, Regalia, Varsity Jackets, and Outerwear Yearbook 43% of Revenue #1 Provider in its categories: Yearbooks, Specialty Interest Books and Photobooks College & Professional 13% of Revenue #1 Provider in its categories: Class Rings and Graduation Products to Colleges #1 Provider of Champ Rings to the NCAA and Professional Sports Associations Influencing More than 300 Million Students in 40,000+ Schools Since 1897 Note: Management estimates; North American market share estimates from management presentation. 11

Core Competencies Driving Success and Growth Premium Brand with #1 Market Positions Across Core Categories Clear leader in all of its markets #1 provider of yearbooks, rings, caps and gowns, diplomas and regalia, and varsity jackets (1) Retention rates of 90%+ across all products Best-in-Class Production Capabilities The largest vertically integrated manufacturer among peer set State-of-the-art facilities in jewelry, printing and apparel From yearbooks to jewelry to apparel, consumers have the ability to customize items produced in a Jostens facility Highly Experienced, Visionary Management Team Recent management team additions Charge to reinvigorate vision and growth Powerful, National Salesforce with Deeply Entrenched Relationships Products distributed through an experienced national salesforce Strong relationships with administrators, faculty advisors and students Note: (1) Management estimates; North American market share estimates from management presentation. 12

Leading Market Positions (1) Premium Brand with #1 Market Positions Across Core Categories Jostens: The Most Trusted Partner in Celebrating Moments that Matter Trust and relationships built by sales representatives over 118+ year history High quality, premium products Yearbook Yearbooks Rings Caps & Gowns Scholastic Diplomas & Regalia Varsity Jackets & Chenille Letters #1 #1 #1 #1 #1 Note: (1) Based on Jostens Management estimates. 13 Management estimates; North American market share estimates from management presentation.

Best-in-Class Production Capabilities JEWELRY Highly scalable, mass customization / personalization jewelry manufacturing capabilities From design to consumer in 5-10 days Ability to shift rapidly between different products, markets and volumes CUT AND SEW Near-shore manufacturing platform supports ability to provide highly customized / personalized products Regalia production in Mexico Neff production in Dominican Republic Complete Customization and Personalization Capabilities Across the Jostens Platform PUBLISHING/PRINTING State-of-the-art publishing facilities that maintain the highest printing standards, from production to recycling Best-in-class digital and offset printing capabilities 14

Cross Selling Opportunity and End Consumer Channel Diversification Drive Value Across the Jarden Platform End Channel Diversification Scale and Synergy Savings Jostens trusted educational relationships and direct to consumer model further diversifies Jarden s revenue channels while creating new selling opportunities Jarden s team sports and fundraising initiatives can achieve further growth by leveraging Jostens strong relationships Joint efforts in the educational and achievement channel can benefit from mutual sales and marketing support and acceleration Jostens educational and achievement channel expertise will further promote cross-brand support and knowledge exchange Jarden s disciplined processes and planning will further develop opportunities Streamlining distribution costs Expanding Jostens distribution network beyond the education and achievement channel; Expanding Jarden s network further into the educational and achievement channel Leveraging Jarden s footprint to facilitate Jostens expansion into new markets and geographies Opportunity to elevate new product innovation and further invest to support Jostens top-line as well as bottom-line growth End Consumer Channel Diversification + Jarden s Scale will Drive Synergy Savings 15

Geographic Revenue US / International Mix on a Combined Basis Becomes ~64% / ~36% Jarden Standalone (1) Net Sales Jostens Standalone (2) Net Sales Combined Est. Net Sales International 39% International 4% International 36% U.S. 61% U.S. 64% U.S. 96% Addition of Jostens will shift US / International mix from ~61% / 39% to ~64% / 36%, given Jostens significant US net sales Our portfolio mix is still expected to gradually shift towards international given Jarden s brands, categories and their respective growth trajectories Each of Jarden brands geographic strengths are used to support the expansion of sister Jarden brands and categories as part of the Jarden platform Notes: 1. Pro forma for Waddington acquisition. Percentage breakdown based on latest fiscal year end. 2. Sales figures as of latest fiscal year end. 16

Long-Term Financial Goals Delivering Long-Term Average Annual Organic Sales Growth of 3% to 5% Continuing to Leverage SG&A Expanding Segment Earnings Margins to 15% by YE 2018 Generating Average Annual Earnings Growth of at Least 10% Producing at Least $4.0 Bn of Cash Flow from Operations over Five Years (2014-18) (1) Targeting Year End Bank Leverage Ratio at or Below 3.0x Delivering Diluted Adjusted EPS of $4.00 by YE 2018 (2) Notes: (1) Cash flow from operations delivered from 2009-2013 was $2.5 Bn. (2) Diluted adjusted EPS of $4.00 reflects the November 2014, 3-for-2 share split and is unchanged and equivalent to the pre-split target value of $6.00. 17

Strategic and Financial Highlights of Transaction Iconic brand with #1 market positions across core categories Provides education and achievement channel leadership through representative network, trusted relationships, and best-in-class manufacturing capabilities; defensible moat Experienced and visionary management team to build on 118 year history Enhances Jarden s portfolio and extends Outdoor Solutions segment Increases Jarden s scale meaningfully with Jostens annual revenue of approximately $740 million Drives immediate margin gain and is expected to be accretive to 2016 adjusted earnings per share, pre synergies Enhances cash flow generation 18

Q&A