INVESTOR BRIEFING. March 2013

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Transcription:

INVESTOR BRIEFING March 2013

Safe Harbor Statement This presentation includes forward-looking statements within the meaning of the Safe Harbor provisions of the Securities Litigation Reform Act of 1995. 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 forward-looking 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, regional governmental regulations, the cost and availability of raw materials, and our ability to pass these price changes on to our customers or otherwise manage commodity price fluctuation risks. 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 (www.sec.gov). Page 2

Bemis Company Profile Packaging industry leader since 1858 $5.1 billion 2012 net sales Fortune 500 S&P 500 Vertical integration creates competitive advantage 74 facilities in 11 countries ~ 20,000 employees worldwide 19% 2012 Net Sales by Region 69% 9% 3% North America Latin America Europe Asia Pacific Page 3

2012 Highlights Record adjusted EPS of $2.15 Increased dividend payable to shareholders Announced new reportable segment structure: U.S. Packaging Global Packaging Pressure Sensitive Materials Substantially completed facility consolidation program to close 9 manufacturing locations and save $50 million annually (beginning Q213) Increased footprint in Asia-Pacific Page 4

Net Sales & Adjusted Op Profit * % by Segment ($ in millions) U.S. Packaging Global Packaging Pressure Sensitive Materials 16% $3,040 64% $1,544 8% 12% 43% $556 57% 100% $3,000 12.8% 11.0% 13.0% 15.0% North America Europe $3,000 Latin America Asia Pacific 15.0% $3,000 15.0% $2,000 10.0% 8.8% $2,000 10.0% 7.4% $2,000 7.0% $3,111 $2,822 $3,040 5.9% 6.3% 6.6% $1,000 5.0% $1,000 5.0% $1,000 $1,451 $1,637 $1,543 $563 $574 $556 $- 0.0% $- 0.0% $- 2010 2011 2012 2010 2011 2012 2010 2011 2012 Page 5 * See appendix for reconciliation from GAAP to Adjusted Operating Profit excluding certain items. 10.0% 5.0% 0.0%

U.S. Packaging Profile 30% Percent of 2012 Net Sales 20% 10% 0% Meat & Cheese Dairy & Liquids Specialty Food & Meals Dry Foods Beverage Wraps Candy, Snacks & Bakery Health & Hygiene Other Non-food Extends shelf life of perishable foods (meat, cheese, dairy, produce) Proprietary and patented film structures Premium manufacturing scale and printing capabilities support both national and regional brands Page 6

U.S. Packaging Growth Drivers Glass jar Paper envelope Pouch Stand up pouch w/window Conversion from jars and cans to pouches Single serving / convenience sizes Material content and weight reduction for sustainability and cost management Convenient cook-in packages Elimination of PVdC content from plastic cups Can Cook-in Pouch Page 7

Global Packaging Profile 20% Percent of 2012 Net Sales 10% 0% Meat & Cheese Medical & Pharma Dairy & Liquids Health & Hygiene Specialty Food Beverage Wraps Candy, Snacks & Bakery Other Non-food Expanding consumer markets in Latin America and Asia Sterility and quality are paramount for medical applications Page 8

Global Packaging Growth Drivers Wal-Mart located in China Food safety regulations in emerging markets New generation of consumers looking for convenience features Need for shelf stable foods due to lack of available refrigeration space Retort Page 9

Pressure Sensitive Materials Profile 60% 40% 20% Percent of 2012 Net Sales 0% Label Graphic Technical Page 10

Disciplined Capital Stewardship Priorities: 1) 30 consecutive years of increasing dividend payments 2) Fund organic growth to enhance revenues and returns 3) Fund acquisitions 4) Balance share repurchases and deleveraging $500 $400 $300 $200 $100 $0 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 Cash Flow from Operations ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Cash Dividends 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Page 11

Share Repurchase History $154 $161 $50 $18 $27 $46 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 M&A Transaction M&A Transaction M&A Transaction Deleveraging ($203) Page 12

World Class Customer Base Why customers choose Bemis: Unique technological and engineering resources Reduced waste in production and distribution system Flexible capacity to accommodate new product launches Reliable supply; Quality product Investment grade supplier Global supply capabilities Page 13

Strategic Priorities Optimize & Leverage Our Scale Grow in Target Areas Accelerate Innovation Page 14

Optimize & Leverage our Scale Complete Facility Consolidation World Class Operations Management Ongoing Specification Consolidation Page 15

Grow in Target Areas Packaging demand from developing countries Emerging economies demanding/regulating food safety and convenience features Lack of refrigeration creates need for shelf stable packaging Increasing consumer populations Medical and pharmaceutical industries Demographics continue to drive growth Modern bio-technology requires more complex packaging Opportunities for smart packaging to solve emerging market needs High barrier packaging opportunities New products continue to win business in established U.S. food applications Expanding opportunities for high barrier film in Latin America and Asia Page 16

Accelerate Innovation Unique Polymer Technologies Polyethylene Polyester Nylon Polypropylene Barrier resins EZ Peel/Reseal IntegraCut / IntegraScore Microwaveable/self venting Consumer Convenience Features Weight reduction Proprietary sealants Antimicrobial coatings Retort technologies Food Safety Sustainability Reduced transportation Reduced packaging material Less food and material waste Lower carbon footprint Page 17

Our Sustainability Commitment Economic sustainability Transparency and good governance are fundamental tools for delivering long-term value to shareholders Environmental Sustainability 2020 Targets: Social Sustainability Reduce electricity and fuel use by 10% Reduce use of solvents by 20% Zero waste to landfills Zero process water discharged We are a responsible member of the communities in which we operate and make safety our number one priority in each of our global operations Page 18

2013 Guidance Adjusted EPS guidance of $2.30 to $2.45 Cash flow from operations > $430 million Reflects ~$40 million of pension contributions Includes ~$50 million of cash payments for facility consolidation activities Cash flow from operations expected to be $500 million beginning in 2014 Capital expenditures of ~$175 million Note: Guidance as of January 31, 2013 Page 19

An Attractive Investment Strong balance sheet and cash flow World-class customer base Disciplined capital allocation Expanding global market reach Strong market position Patented and proprietary products Page 20

APPENDIX

Reconciliation of Non-GAAP EPS 2011 Q112 Q212 Q312 Q412 2012 Actual Actual Actual Actual Actual Actual GAAP EPS $ 1.73 $ 0.42 $ 0.40 $ 0.45 $ 0.38 $ 1.66 Special charges: Transaction related costs 0.02 - - - - - Acquisition related costs 0.03 0.02 0.02 0.01-0.04 Facility consolidation and other costs 0.24 0.05 0.12 0.14 0.14 0.45 Other charges / gains (0.03) - - - - - Adjusted EPS $ 1.99 $ 0.49 $ 0.54 $ 0.60 $ 0.52 $ 2.15 Page 22

Components of Change in 2012 Net Sales Net Sales Total Year ($ in millions) 2012 2011 % Change U.S. Packaging $ 3,040.1 $ 3,110.7 (2.3%) Currency effect 0.0% Acquisition effect 0.8% Organic growth (decline) (3.1%) Global Packaging 1,543.5 1,637.2 (5.7%) Currency effect (9.7%) Acquisition effect 2.4% Organic growth (decline) 1.6% Pressure Sensitive Materials 555.6 574.8 (3.3%) Currency effect (3.1%) Acquisition effect 0.0% Organic growth (decline) (0.2%) Total Net Sales $ 5,139.2 $ 5,322.7 (3.4%) Currency effect (3.3%) Acquisition effect 1.2% Organic growth (decline) (1.3%) Page 23 Note: Organic growth = Volume + Price + Mix impact

Segment Adjusted Operating Profit excluding certain items Page 24 Total Year 2012 2011 US Packaging $ 366.7 $ 315.0 % of Net Sales 12.1% 10.1% Adjusted for: Facilities Consolidation Expense 42.1 26.3 Policy Harmonization Expense (Income) (13.8) - Total 395.0 341.3 % of Net Sales 13.0% 11.0% Global Packaging 59.9 112.6 % of Net Sales 3.9% 6.9% Adjusted for: Facilities Consolidation Expense 26.6 8.6 Acquisition and Other Expense (Income) 4.6 0.7 Policy Harmonization Expense (Income) 16.4 - Total 107.5 121.9 % of Net Sales 7.0% 7.4% Pressure Sensitive Materials 37.1 33.4 % of Net Sales 6.7% 5.8% Adjusted for: Facilities Consolidation Expense 2.7 Policy Harmonization Expense (Income) (0.5) - Total $ 36.6 $ 36.1 % of Net Sales 6.6% 6.3%

Facility Consolidation Financial Summary Cash Cost Expense Paid Savings Q411 $ 38.4 $ 3.3 2011 38.4 3.3 Q112 8.3 8.0 Q212 19.7 4.5 Q312 21.4 11.2 5.0 Q412 19.3 11.5 3.0 2012 68.7 35.2 8.0 2013 Estimate 34.0 50.0 45.0 Total Facility Consolidation Impact $ 141.1 $ 88.5 Page 25