INVESTOR BRIEFING CITI BASIC MATERIALS CONFERENCE November 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
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 17,000 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. 2
POSITIONING BEMIS FOR SUCCESS fix, strengthen, grow Bemis Agility includes our $65million cost savings plan. 3
RESTRUCTURING AND COST SAVINGS PLAN ($ in millions) $65 targeted savings $100-$125 cost, of which $70-$80 is cash Savings timeline: 5-10% in 2017, 50-60% in 2018, remainder in 2019 Savings include: ($ in millions) $17 $5 $35 $8 4 plant closures (business moved to other facilities) consolidation of certain office space 500 administrative positions other costs (examples include: storage, transportation, travel) This plan improves efficiency & profitability, properly aligns fixed cost structure, and positions Bemis for long-term success. 4
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 innovation pipeline and asset recapitalization program 5
APPENDIX: OUR BUSINESS
WHERE WE OPERATE 57 FACILITIES 12 COUNTRIES 70%* 7%*...5%* ~17,000 EMPLOYEES WORLDWIDE 18%* $4.0B * PERCENTAGE OF TOTAL BEMIS REVENUE 2016 REVENUE 8
BEMIS COMPANY PURE PACKAGING ($ in millions) U.S. Packaging $2,621 2016 Net Sales Global Packaging $1,383 2016 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 9
THE FLEXIBLE PACKAGING SPACE How we succeed focus innovation. Innovation & sophistication accelerate growth continuously improve the big middle. Recapitalization Size, scale, service 10
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 11
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 12
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 13 *See bemis.com for information on the entire Bemis leadership team
OUR PRIMARY MANUFACTURING PROCESSES vertical integration compounding & extrusion printing laminating slitting / rewinding (unique, high-tech processes) technology. service. scale. 14 *Additional core processes include: manufacturing rigid plastic parts, metallizing, bagging, pouching, value-added services, and others
THE CLEAR CHOICE FOR HEALTH & WELLNESS Healthy snacking in a one-handed world Freshness Less preservatives more sophisticated packaging 15
THE CLEAR CHOICE FOR SUSTAINABILITY Extend shelf life To reduce food waste Reduce material weight & volume Reduce & reuse inprocess waste 16
THE CLEAR CHOICE FOR SUSTAINABILITY Reduce material Flexibles replace blow-molded bottles 70% less plastic Reduce material weight & volume Flexibles replace metal can 17
THE CLEAR CHOICE FOR SOPHISTICATION & DIFFERENTIATION Display Shelf appeal & impression 18
THE CLEAR CHOICE FOR FOOD SAFETY Evolving Food Regulations Food Safety Heightened consumer awareness 19
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 20
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 21
INORGANIC GROWTH STRATEGY adjacencies Steripack speed to market Steripack proprietary technologies complementary geographies Emplal Steripack 22
APPENDIX: SUPPLEMENTAL INFORMATION
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 24
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 $0 2012 2013 2014 2015 2016 Dividends Share Repurchases FCF 25
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) 26
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 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 (www.sec.gov). 27
28