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Investor Briefing December 2014
NYSE:BMS
2
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, the cost and availability of raw materials, and our ability to pass these price changes on to our
customers. 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).
Safe Harbor Statement
3
Adj EPS Record $2.09
Continuing Operations
$2.26-$2.31
Full Year Guide as of 10/2014
Continuing Operations
Adj Operating
Margin
Increased to 8.8%
from 8.3% in 2012
Continuing Operations
Increased to 9.4%
YTD 2014
Continuing Operations
Dividends
Paid
30th Consecutive
Increase
31st Consecutive
Increase
Share
Repurchases
2M shares for $77M 2.1M shares for $84M
2013 Q3 YTD ‘14
Packaging Industry Leader since 1858
Bemis Company Highlights
Where We are Going…
4
Operating
Profit %
Return on
Invested
Capital
Earnings per
Share
Performance
Improvement
Accelerate
Disciplined
Growth
Focus
Innovation
Continuously
Improve
External Focus
Acquisition
Integrations
Facility
Consolidation
Divestitures
Internal Focus
Where we were… Where we are going…
5
U.S.
Packaging
Global
Packaging
* See appendix for reconciliation from GAAP to Adjusted Operating Profit excluding certain items.
($ in millions)
100%
$2,985
13%
60%
17%
10%
North America Latin America
Europe Asia Pacific
$1,492Net
Sales
Sales $
& Adj
OP
%
Two Reportable Segments
$2,822
$3,111 $3,040 $2,985
12.8%
11.0%
13.0%
12.8% 13.2%
2010 2011 2012 2013 Q3 YTD
'14
$1,451 $1,637 $1,543 $1,492
8.8%
7.4% 7.0% 7.1% 7.5%
2010 2011 2012 2013 Q3 YTD
'14
6
What’s Important:
• Shelf-life extension for perishable
foods (meat, cheese, dairy, produce)
• Proprietary and patented film
structures deliver convenience and
sustainability features
• Extensive manufacturing scale
support both national and regional
brands
0%
10%
20%
30%
Meat &
Cheese
Dairy &
Liquids
Specialty
Food &
Meals
Dry Foods Beverage
Wraps
Candy,
Snacks &
Bakery
Other
Non-food
Health &
Hygiene
Percent of 2013 Net Sales
U.S. Packaging
7
What’s Important:
• Expanding consumer markets in
Latin America and Asia
• Sterility and quality are
paramount for medical
applications
0%
10%
20%
Medical &
Pharma
Dairy &
Liquids
Meat &
Cheese
Health &
Hygiene
Specialty
Food
Beverage
Wraps
Candy,
Snacks &
Bakery
Other
Non-food
Percent of 2013 Net Sales
Global Packaging
8
2013 Net Sales by Region
Continuing Operations
Where We Operate
61 facilities in 11 countries
~ 17,000 employees worldwide
71%
5%
4%
20%
9
Why customers choose Bemis:
Reliable supply; quality product
Technology leader with differentiated product
Global breadth & scale
Longevity & financial stability
No customer represents more than ~7% of Bemis sales
Who We Serve
Global
Healthcare
Packaging
-Medical Device
-Pharmaceutical
Packaging for
Emerging
Economies
Our focus is differentiation that drives disciplined,
profitable growth
Bemis will grow:
• High-margin packaging solutions
• Where we have a competitive advantage
• With a focus on profit
Accelerating Growth Globally
10
Increased
consumer
desire for
freshness
and
convenience
Growing
demand for
sustainable
packaging
solutions
Increased
focus on
extending
shelf life and
reducing
waste
Accelerating Growth
High-Barrier Packaging
11
Bemis technology creates the competitive advantage
12
Our EvolutionTM
film is an
environmentally
friendly
alternative to
other liquid
packages that
contain PVdC
Consumer
trends favor
flexible
packages over
metal cans or
glass
Our proprietary
materials offer
superior
package
performance for
hard-to-hold
liquid
applications
Accelerating Growth
Liquid Packaging (Hard-to-hold products)
Vertical Integration is key to delivering value-add
13
Odor-absorbing Films for Poultry
• Absorbs and confines poultry odors for an
extended period
OvenRite™ Ovenable Films
• Superior seal and form features
• Consumer-convenience via EZ Open and self-venting
features
Flexible Stand-up Pouch for Vegetables
• Stand-up flexible pouch replaces the metal can packaging format
• Provides savings to our customers
Barrel Pouch for Liquids
• Stand-up flexible pouch replaces the bag in box
packaging format
• Superior sealing technology withstands the harsh
distribution process
Technology Advantage
Vertical Integration creates a competitive advantage
Bemis technology and scale create platform for growth
$4.5 billion addressable flexible packaging market
Barriers to entry favor incumbent suppliers
Common global products and regulatory standards
Customers consolidating supplier base
Accelerating Growth
Healthcare Packaging
14
15
Emerging
Asian
economies
coupled with
Bemis
technology
are a formula
for success
*Source: EIU, Boston Consulting Group income database, BCG analysis
• Rapidly growing in China at 14% CAGR (2012
– 2020e)*Consumption
• 2020 affluent income population in China
expected to be 4x current*Income Growth
• Evolving preferences & the need for shelf-
stable food due to lack of refrigeration
Consumer
Preferences
• Heightened consumer awareness and
increased focus on safety & sterilityFood Safety
Accelerating Growth
in Emerging Economies – Asia-Pacific
16
Capital investment in technologically advanced multi-layer extrusion
Our capital investments support
growth in 2015 and beyond
$107
$135
$187
$159
$179
$121
$89 $113
$135 $136 $140
$-
$50
$100
$150
$200
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Guide
CAPEX D&A
$175
Capital Spending Supports Organic Growth
17
• Disciplined approach to
measurement & evaluation of
returns on all capital projects
• Increased investment in
projects that deliver higher
ROIC
*Adj ROIC = Net adj operating profit after-tax (NOPAT) divided by debt minus cash plus equity
Continuous Improvement in ROIC
8.2%
8.6%
9.5%
2011 2012 2013
Consolidated ROIC*
Return on Invested Capital
18
Priorities:
• 31 consecutive years
of increasing
dividend payments
• Fund organic growth
to enhance revenues
and returns
• Fund acquisitions
• Balance share
repurchases and
deleveraging $0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Guide
Cash Dividends
Disciplined Capital Approach
$0
$100
$200
$300
$400
$500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Guide
Cash Flow from Operations Guide:
$375-
$400
19
M&ATransaction
M&ATransaction
Deleveraging
Share Repurchase History
$50
$18
$154
$27
-$203
$46
$161
$77 $84
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q3 YTD
'14
M&ATransaction
20
Economic
Sustainability
Social
Sustainability
Environmental
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
Our Sustainability Commitment
21
Adjusted EPS guidance of $2.26 to $2.31
Continuing Operations
Cash flow from operations $375-400 million
Capital expenditures of ~$175 million
Note: Guidance as of October 2014
2014 Financial Guidance
22
Growth
Leading
Market
Positions
Strong
Innovation
Pipeline
Global
Footprint
Disciplined
Capital
Allocation
Focusing on Growth
Appendix
24
 Completed the largest acquisition in company history of Alcan Food Americas
for $1.2B
 Completed facility consolidation, optimizing our manufacturing footprint with
the closure of 9 plants
 Acquired a film-based aseptic and bulk packaging manufacturer
 Expanded footprint in Asia-Pacific with acquisitions in China of a converting
operation in Dongguan and an extrusion platform in Foshan
 Divested non-core businesses including thin gauge shrink film and Paper
Packaging
Accomplishments 2010-2014
25
Reconciliation of Non-GAAP Earnings Per Share
Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 YTD
Continuing Operations:
Diluted earnings per share, as reported 0.42$ 0.47$ 0.47$ 0.49$ 1.85$ 0.58$ 0.60$ 0.61$ 1.79$
Non-GAAP adjustments per share, net of taxes
Facility consolidation and other costs 0.06 0.13 0.10 0.29
Gain on Clysar and Paper divestitures (0.03) (0.03) (0.06) (0.06)
Gain on sale of land and building (0.02) (0.02)
Diluted earnings per share, as adjusted 0.48$ 0.57$ 0.55$ 0.49$ 2.09$ 0.52$ 0.60$ 0.61$ 1.73$
Discontinued Operations:
Diluted earnings (loss) per share, as reported 0.05$ 0.04$ 0.05$ 0.05$ 0.19$ (0.10)$ 0.05$ (0.44)$ (0.49)$
Non-GAAP adjustments per share, net of taxes
Pressure Sensitive Materials plant closure costs 0.16 0.16
Non-cash impairment for net assets held for sale 0.50 0.50
Diluted earnings per share, as adjusted 0.05$ 0.04$ 0.05$ 0.05$ 0.19$ 0.06$ 0.05$ 0.06$ 0.17$
Bemis Company Inc.
Diluted earnings per share, as adjusted 0.53$ 0.61$ 0.60$ 0.54$ 2.28$ 0.58$ 0.65$ 0.67$ 1.90$
2013 2014
Income Statement from Continuing Operations
26
Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q3 YTD
Net Sales 1,114.5$ 1,155.3$ 1,121.5$ 1,085.3$ 4,476.6$ 1,095.0$ 1,097.6$ 1,098.2$ 3,290.8$
Cost of products sold 897.3 928.7 897.3 877.9 3,601.2 884.1 878.6 877.5 2,640.2
Gross profit 217.2 226.6 224.2 207.4 875.4 210.9 219.0 220.7 650.6
Operating expenses:
Selling, general and administrative expenses 116.0 114.7 112.8 105.0 448.5 106.6 104.4 104.6 315.6
Research and development 9.5 9.9 10.7 10.4 40.5 11.1 11.1 11.2 33.4
Facility consolidation and other costs 9.3 20.9 15.8 (0.6) 45.4 - - - -
Other operating income (1.8) (3.1) (2.7) (1.6) (9.2) (2.1) (3.1) (2.4) (7.6)
Operating income 84.2 84.2 87.6 94.2 350.2 95.3 106.6 107.3 309.2
Interest expense 16.6 17.0 17.0 17.6 68.2 16.9 17.0 14.0 47.9
Other non-operating income 4.2 (7.1) (3.4) (1.4) (7.7) (12.7) (1.7) (1.2) (15.6)
Income from continuing operations before income taxes 63.4 74.3 74.0 78.0 289.7 91.1 91.3 94.5 276.9
Provision for income taxes 19.2 25.2 25.1 27.7 97.2 31.4 30.6 33.0 95.0
Income from continuing operations 44.2 49.1 48.9 50.3 192.5 59.7 60.7 61.5 181.9
Diluted shares 104.4 104.0 104.0 103.7 104.0 102.4 101.4 100.9
GAAP Diluted earnings per share:
Income from continuing operations 0.42$ 0.47$ 0.47$ 0.49$ 1.85$ 0.58$ 0.60$ 0.61$ 1.79$
2013 2014
27
Adjusted Operating Profit to GAAP
Segment Operating Profit
Q3 YTD '14 2013 2012 2011
US Packaging 288.1$ 337.9$ 366.7$ 315.0$
Adjusted for:
Facilities Consolidation Expense 45.0 42.1 26.3
Policy Harmonization Expense (Income) - (13.8) -
Adj US Packaging OP 288.1$ 382.9$ 395.0$ 341.3$
% of Net Sales 13.2% 12.8% 13.0% 11.0%
Global Packaging 83.6$ 106.4$ 59.9$ 112.6$
Adjusted for:
Facilities Consolidation Expense 0.4 26.6 8.6
Acquisition and Other Expense (Income) (0.5) 4.6 0.7
Policy Harmonization Expense (Income) 16.4 -
Adj Global Packaging OP 83.6$ 106.3$ 107.5$ 121.9$
% of Net Sales 7.5% 7.1% 7.0% 7.4%
Total Year
Adjusted Return on Invested Capital
28
2013 2012 2011
Net Income 212.6$ 173.8$ 187.3$
Provision for income taxes 107.7 104.8 104.9
Interest expense 68.2 70.9 76.8
Other non-operating income (7.9) (4.0) (1.6)
Earnings before interest and taxes (EBIT) 380.6 345.5 367.4
Acquisition-related costs (0.5) 4.6 5.0
Facility consolidation and other costs 45.4 68.7 38.4
Other gains (2.7)
Adjusted EBIT (a) 425.5$ 418.8$ 408.1$
Average Invested Capital1
Debt2
1,464.3$ 1,526.1$ 1,783.6$
Equity3
1,647.3 1,612.2 1,473.3
Cash (142.9) (117.5) (79.4)
Average invested capital (b) 2,968.7$ 3,020.8$ 3,177.5$
Effective Tax Rate
Provision for income taxes 107.7$ 104.8$ 104.9$
Income before income taxes 320.3 278.6 292.2
Effective tax rate (c) 33.6% 37.6% 35.9%
Adjusted ROIC - [(a) / (b) * (1 - c)] 9.5% 8.6% 8.2%
1 - Calculated as a five-quarter rolling average
2 - Debt includes current portion of long-term debt, short-term debt, and long-term debt
3 - Excludes noncontrolling interest
Note: The above data includes Pressure Sensitive Materials
29
Components of Changes in Net Sales
Net Sales
($ in millions) 2014 2013 % Change 2014 2013 % Change
U.S. Packaging 716.7$ 750.7$ (4.5%) 2,180.7$ 2,277.6$ (4.3%)
Divestiture effect (5.6%) (4.8%)
Optimization effect 0.0% (0.1%)
Organic growth * 1.1% 0.6%
Global Packaging 381.5 370.8 2.9% 1,110.1 1,113.7 (0.3%)
Currency effect (2.5%) (6.4%)
Acquisition effect 0.0% 3.3%
Organic growth * 5.4% 2.8%
Total Net Sales from Continuing Operations 1,098.2$ 1,121.5$ (2.1%) 3,290.8$ 3,391.3$ (3.0%)
Currency effect (0.8%) (1.9%)
Acquisition/Divestiture effect (3.8%) (2.1%)
Optimization effect 0.0% (0.1%)
Organic growth * 2.5% 1.1%
*Organic growth = sum of price, mix, and volume
Third Quarter Q3 YTD
30

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Bemis - Investor Briefing

  • 2. 2 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, the cost and availability of raw materials, and our ability to pass these price changes on to our customers. 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). Safe Harbor Statement
  • 3. 3 Adj EPS Record $2.09 Continuing Operations $2.26-$2.31 Full Year Guide as of 10/2014 Continuing Operations Adj Operating Margin Increased to 8.8% from 8.3% in 2012 Continuing Operations Increased to 9.4% YTD 2014 Continuing Operations Dividends Paid 30th Consecutive Increase 31st Consecutive Increase Share Repurchases 2M shares for $77M 2.1M shares for $84M 2013 Q3 YTD ‘14 Packaging Industry Leader since 1858 Bemis Company Highlights
  • 4. Where We are Going… 4 Operating Profit % Return on Invested Capital Earnings per Share Performance Improvement Accelerate Disciplined Growth Focus Innovation Continuously Improve External Focus Acquisition Integrations Facility Consolidation Divestitures Internal Focus Where we were… Where we are going…
  • 5. 5 U.S. Packaging Global Packaging * See appendix for reconciliation from GAAP to Adjusted Operating Profit excluding certain items. ($ in millions) 100% $2,985 13% 60% 17% 10% North America Latin America Europe Asia Pacific $1,492Net Sales Sales $ & Adj OP % Two Reportable Segments $2,822 $3,111 $3,040 $2,985 12.8% 11.0% 13.0% 12.8% 13.2% 2010 2011 2012 2013 Q3 YTD '14 $1,451 $1,637 $1,543 $1,492 8.8% 7.4% 7.0% 7.1% 7.5% 2010 2011 2012 2013 Q3 YTD '14
  • 6. 6 What’s Important: • Shelf-life extension for perishable foods (meat, cheese, dairy, produce) • Proprietary and patented film structures deliver convenience and sustainability features • Extensive manufacturing scale support both national and regional brands 0% 10% 20% 30% Meat & Cheese Dairy & Liquids Specialty Food & Meals Dry Foods Beverage Wraps Candy, Snacks & Bakery Other Non-food Health & Hygiene Percent of 2013 Net Sales U.S. Packaging
  • 7. 7 What’s Important: • Expanding consumer markets in Latin America and Asia • Sterility and quality are paramount for medical applications 0% 10% 20% Medical & Pharma Dairy & Liquids Meat & Cheese Health & Hygiene Specialty Food Beverage Wraps Candy, Snacks & Bakery Other Non-food Percent of 2013 Net Sales Global Packaging
  • 8. 8 2013 Net Sales by Region Continuing Operations Where We Operate 61 facilities in 11 countries ~ 17,000 employees worldwide 71% 5% 4% 20%
  • 9. 9 Why customers choose Bemis: Reliable supply; quality product Technology leader with differentiated product Global breadth & scale Longevity & financial stability No customer represents more than ~7% of Bemis sales Who We Serve
  • 10. Global Healthcare Packaging -Medical Device -Pharmaceutical Packaging for Emerging Economies Our focus is differentiation that drives disciplined, profitable growth Bemis will grow: • High-margin packaging solutions • Where we have a competitive advantage • With a focus on profit Accelerating Growth Globally 10
  • 11. Increased consumer desire for freshness and convenience Growing demand for sustainable packaging solutions Increased focus on extending shelf life and reducing waste Accelerating Growth High-Barrier Packaging 11 Bemis technology creates the competitive advantage
  • 12. 12 Our EvolutionTM film is an environmentally friendly alternative to other liquid packages that contain PVdC Consumer trends favor flexible packages over metal cans or glass Our proprietary materials offer superior package performance for hard-to-hold liquid applications Accelerating Growth Liquid Packaging (Hard-to-hold products) Vertical Integration is key to delivering value-add
  • 13. 13 Odor-absorbing Films for Poultry • Absorbs and confines poultry odors for an extended period OvenRite™ Ovenable Films • Superior seal and form features • Consumer-convenience via EZ Open and self-venting features Flexible Stand-up Pouch for Vegetables • Stand-up flexible pouch replaces the metal can packaging format • Provides savings to our customers Barrel Pouch for Liquids • Stand-up flexible pouch replaces the bag in box packaging format • Superior sealing technology withstands the harsh distribution process Technology Advantage Vertical Integration creates a competitive advantage
  • 14. Bemis technology and scale create platform for growth $4.5 billion addressable flexible packaging market Barriers to entry favor incumbent suppliers Common global products and regulatory standards Customers consolidating supplier base Accelerating Growth Healthcare Packaging 14
  • 15. 15 Emerging Asian economies coupled with Bemis technology are a formula for success *Source: EIU, Boston Consulting Group income database, BCG analysis • Rapidly growing in China at 14% CAGR (2012 – 2020e)*Consumption • 2020 affluent income population in China expected to be 4x current*Income Growth • Evolving preferences & the need for shelf- stable food due to lack of refrigeration Consumer Preferences • Heightened consumer awareness and increased focus on safety & sterilityFood Safety Accelerating Growth in Emerging Economies – Asia-Pacific
  • 16. 16 Capital investment in technologically advanced multi-layer extrusion Our capital investments support growth in 2015 and beyond $107 $135 $187 $159 $179 $121 $89 $113 $135 $136 $140 $- $50 $100 $150 $200 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Guide CAPEX D&A $175 Capital Spending Supports Organic Growth
  • 17. 17 • Disciplined approach to measurement & evaluation of returns on all capital projects • Increased investment in projects that deliver higher ROIC *Adj ROIC = Net adj operating profit after-tax (NOPAT) divided by debt minus cash plus equity Continuous Improvement in ROIC 8.2% 8.6% 9.5% 2011 2012 2013 Consolidated ROIC* Return on Invested Capital
  • 18. 18 Priorities: • 31 consecutive years of increasing dividend payments • Fund organic growth to enhance revenues and returns • Fund acquisitions • Balance share repurchases and deleveraging $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Guide Cash Dividends Disciplined Capital Approach $0 $100 $200 $300 $400 $500 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Guide Cash Flow from Operations Guide: $375- $400
  • 19. 19 M&ATransaction M&ATransaction Deleveraging Share Repurchase History $50 $18 $154 $27 -$203 $46 $161 $77 $84 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q3 YTD '14 M&ATransaction
  • 20. 20 Economic Sustainability Social Sustainability Environmental 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 Our Sustainability Commitment
  • 21. 21 Adjusted EPS guidance of $2.26 to $2.31 Continuing Operations Cash flow from operations $375-400 million Capital expenditures of ~$175 million Note: Guidance as of October 2014 2014 Financial Guidance
  • 24. 24  Completed the largest acquisition in company history of Alcan Food Americas for $1.2B  Completed facility consolidation, optimizing our manufacturing footprint with the closure of 9 plants  Acquired a film-based aseptic and bulk packaging manufacturer  Expanded footprint in Asia-Pacific with acquisitions in China of a converting operation in Dongguan and an extrusion platform in Foshan  Divested non-core businesses including thin gauge shrink film and Paper Packaging Accomplishments 2010-2014
  • 25. 25 Reconciliation of Non-GAAP Earnings Per Share Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 YTD Continuing Operations: Diluted earnings per share, as reported 0.42$ 0.47$ 0.47$ 0.49$ 1.85$ 0.58$ 0.60$ 0.61$ 1.79$ Non-GAAP adjustments per share, net of taxes Facility consolidation and other costs 0.06 0.13 0.10 0.29 Gain on Clysar and Paper divestitures (0.03) (0.03) (0.06) (0.06) Gain on sale of land and building (0.02) (0.02) Diluted earnings per share, as adjusted 0.48$ 0.57$ 0.55$ 0.49$ 2.09$ 0.52$ 0.60$ 0.61$ 1.73$ Discontinued Operations: Diluted earnings (loss) per share, as reported 0.05$ 0.04$ 0.05$ 0.05$ 0.19$ (0.10)$ 0.05$ (0.44)$ (0.49)$ Non-GAAP adjustments per share, net of taxes Pressure Sensitive Materials plant closure costs 0.16 0.16 Non-cash impairment for net assets held for sale 0.50 0.50 Diluted earnings per share, as adjusted 0.05$ 0.04$ 0.05$ 0.05$ 0.19$ 0.06$ 0.05$ 0.06$ 0.17$ Bemis Company Inc. Diluted earnings per share, as adjusted 0.53$ 0.61$ 0.60$ 0.54$ 2.28$ 0.58$ 0.65$ 0.67$ 1.90$ 2013 2014
  • 26. Income Statement from Continuing Operations 26 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q3 YTD Net Sales 1,114.5$ 1,155.3$ 1,121.5$ 1,085.3$ 4,476.6$ 1,095.0$ 1,097.6$ 1,098.2$ 3,290.8$ Cost of products sold 897.3 928.7 897.3 877.9 3,601.2 884.1 878.6 877.5 2,640.2 Gross profit 217.2 226.6 224.2 207.4 875.4 210.9 219.0 220.7 650.6 Operating expenses: Selling, general and administrative expenses 116.0 114.7 112.8 105.0 448.5 106.6 104.4 104.6 315.6 Research and development 9.5 9.9 10.7 10.4 40.5 11.1 11.1 11.2 33.4 Facility consolidation and other costs 9.3 20.9 15.8 (0.6) 45.4 - - - - Other operating income (1.8) (3.1) (2.7) (1.6) (9.2) (2.1) (3.1) (2.4) (7.6) Operating income 84.2 84.2 87.6 94.2 350.2 95.3 106.6 107.3 309.2 Interest expense 16.6 17.0 17.0 17.6 68.2 16.9 17.0 14.0 47.9 Other non-operating income 4.2 (7.1) (3.4) (1.4) (7.7) (12.7) (1.7) (1.2) (15.6) Income from continuing operations before income taxes 63.4 74.3 74.0 78.0 289.7 91.1 91.3 94.5 276.9 Provision for income taxes 19.2 25.2 25.1 27.7 97.2 31.4 30.6 33.0 95.0 Income from continuing operations 44.2 49.1 48.9 50.3 192.5 59.7 60.7 61.5 181.9 Diluted shares 104.4 104.0 104.0 103.7 104.0 102.4 101.4 100.9 GAAP Diluted earnings per share: Income from continuing operations 0.42$ 0.47$ 0.47$ 0.49$ 1.85$ 0.58$ 0.60$ 0.61$ 1.79$ 2013 2014
  • 27. 27 Adjusted Operating Profit to GAAP Segment Operating Profit Q3 YTD '14 2013 2012 2011 US Packaging 288.1$ 337.9$ 366.7$ 315.0$ Adjusted for: Facilities Consolidation Expense 45.0 42.1 26.3 Policy Harmonization Expense (Income) - (13.8) - Adj US Packaging OP 288.1$ 382.9$ 395.0$ 341.3$ % of Net Sales 13.2% 12.8% 13.0% 11.0% Global Packaging 83.6$ 106.4$ 59.9$ 112.6$ Adjusted for: Facilities Consolidation Expense 0.4 26.6 8.6 Acquisition and Other Expense (Income) (0.5) 4.6 0.7 Policy Harmonization Expense (Income) 16.4 - Adj Global Packaging OP 83.6$ 106.3$ 107.5$ 121.9$ % of Net Sales 7.5% 7.1% 7.0% 7.4% Total Year
  • 28. Adjusted Return on Invested Capital 28 2013 2012 2011 Net Income 212.6$ 173.8$ 187.3$ Provision for income taxes 107.7 104.8 104.9 Interest expense 68.2 70.9 76.8 Other non-operating income (7.9) (4.0) (1.6) Earnings before interest and taxes (EBIT) 380.6 345.5 367.4 Acquisition-related costs (0.5) 4.6 5.0 Facility consolidation and other costs 45.4 68.7 38.4 Other gains (2.7) Adjusted EBIT (a) 425.5$ 418.8$ 408.1$ Average Invested Capital1 Debt2 1,464.3$ 1,526.1$ 1,783.6$ Equity3 1,647.3 1,612.2 1,473.3 Cash (142.9) (117.5) (79.4) Average invested capital (b) 2,968.7$ 3,020.8$ 3,177.5$ Effective Tax Rate Provision for income taxes 107.7$ 104.8$ 104.9$ Income before income taxes 320.3 278.6 292.2 Effective tax rate (c) 33.6% 37.6% 35.9% Adjusted ROIC - [(a) / (b) * (1 - c)] 9.5% 8.6% 8.2% 1 - Calculated as a five-quarter rolling average 2 - Debt includes current portion of long-term debt, short-term debt, and long-term debt 3 - Excludes noncontrolling interest Note: The above data includes Pressure Sensitive Materials
  • 29. 29 Components of Changes in Net Sales Net Sales ($ in millions) 2014 2013 % Change 2014 2013 % Change U.S. Packaging 716.7$ 750.7$ (4.5%) 2,180.7$ 2,277.6$ (4.3%) Divestiture effect (5.6%) (4.8%) Optimization effect 0.0% (0.1%) Organic growth * 1.1% 0.6% Global Packaging 381.5 370.8 2.9% 1,110.1 1,113.7 (0.3%) Currency effect (2.5%) (6.4%) Acquisition effect 0.0% 3.3% Organic growth * 5.4% 2.8% Total Net Sales from Continuing Operations 1,098.2$ 1,121.5$ (2.1%) 3,290.8$ 3,391.3$ (3.0%) Currency effect (0.8%) (1.9%) Acquisition/Divestiture effect (3.8%) (2.1%) Optimization effect 0.0% (0.1%) Organic growth * 2.5% 1.1% *Organic growth = sum of price, mix, and volume Third Quarter Q3 YTD
  • 30. 30