Slide 1: Fourth Quarter and Full-Year 2012 Financial Review and Analysis
Fourth Quarter and Full-Year 2012 Financial Review and Analysis (preliminary, unaudited) Supplemental Presentation Materials Unless otherwise indicated, the discussion of the company’s results is focused on its continuing operations, and comparisons are to the same period in the prior year. Previous
Slide 2: Forward-looking statements
Certain statements contained in this document are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements and financial or other business targets are subject to certain r
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. Reconciliations of non-GAAP f
Slide 4: Full Year Overview
Full Year Overview Delivered solid full year results; strong second-half momentum Sales grew approx. 4% on organic basis driven by higher volume Operating margin, as reported, improved 40 basis points Adjusted operating margin improved 80 basis points Reported EPS (including discontinued operations)
Slide 5: 4th Quarter Overview and 2013 Outlook
4th Quarter Overview and 2013 Outlook Strong quarter across all segments Sales up approx. 7% on organic basis driven by higher volume Operating margin, as reported, improved 100 basis points as the benefit of higher volume and productivity initiatives more than offset higher employee-related expense
Slide 6: Realigned segment reporting to reflect new operating structure
Realigned segment reporting to reflect new operating structure (see Appendix slides 16-19) Consolidated operations, streamlined corporate center, and realigned organizational structure and accountabilities These actions reflected in new corporate expense allocation methodology and movement of Perfor
Slide 7: New corporate expense allocation methodology
New corporate expense allocation methodology Compared to previous methodology, Corporate Expense reflects a reduction in costs allocated to the operating segments Under new methodology, costs meeting the following criteria are fully allocated to the business segments: Significant portion of benefit
Slide 8: Sales Trend Analysis
4Q11 1Q12 2Q12 3Q12 4Q12 Organic Sales Change 0.7% (0.9%) 3.7% 5.9% 7.1% Product Line Divestitures (0.2%) (0.4%) (0.3%) (0.4%) (0.2%) Currency Translation (1.0%) (1.6%) (4.2%) (6.4%) (1.5%) Reported Sales Change* (0.5%) (2.8%) (0.8%) (0.8%) 5.3% Sales Trend Analysis *Totals may not sum due to roundi
Slide 9: Segment Sales and Margin Analysis
Segment Sales and Margin Analysis 4Q12 Reported Organic Net Sales Growth: Pressure-sensitive Materials 4% 6% Retail Branding and Information Solutions 10% 10% Other specialty converting businesses 9% 15% Continuing Operations 5% 7% Adjusted As Reported (Non-GAAP) 4Q12 4Q11 4Q12 4Q11 Operating Margin
Slide 10: 4th Quarter Segment Overview
4th Quarter Segment Overview PRESSURE-SENSITIVE MATERIALS (PSM) Reported sales of $1.06 bil., up approx. 4% compared to prior year Sales up approx. 6% on organic basis Label and Packaging Materials sales up mid-single digits on organic basis Combined sales for other product lines (Graphics, Reflecti
Slide 11: 4th Quarter Segment Overview (continued)
4th Quarter Segment Overview (continued) RETAIL BRANDING AND INFORMATION SOLUTIONS (RBIS) Reported sales of $407 mil., up approx. 10% compared to prior year Sales up approx. 10% on organic basis Operating margin improved 120 basis points to 3.0% as the benefit of higher volume and productivity initi
Slide 12: Company Results vs Long-Term Targets (2012 – 2015)
Company Results vs Long-Term Targets (2012 – 2015)* 3% – 5% Organic Sales Growth 10% – 15% Adjusted Net Income Growth $300 mil.+ Annual Free Cash Flow 15% – 20%+ Adjusted EPS Growth < 2x Net Debt to Adjusted EBITDA LONG-TERM TARGETS 4% 16% $312 mil. 20% 1.6x 2012 RESULTS * All long-term target perce
Slide 13: Segment Results vs Long-Term Targets (2012 – 2015)
Segment Results vs Long-Term Targets (2012 – 2015) * Adjusted to reflect new segment reporting. Prior to the realignment, targets were 8.5 - 9.5% for PSM, 8 - 9% for RBIS, and > 5% for Other Specialty Converting. Long-Term Target (4-Yr CAGR) 2012 Results Long-Term Target* (by 2015) 2012 Results Pres
Slide 14: Contributing Factors to 2013 Guidance
Contributing Factors to 2013 Guidance* Organic sales growth of 1% to 4% At recent rates, currency translation has modest positive benefit to reported sales growth and EBIT Incremental pre-tax benefit from restructuring actions ~ $70 mil. Tax rate comparable to 2012 Restructuring costs and other item
Slide 15: 2013 EPS and Free Cash Flow Guidance
2013 EPS and Free Cash Flow Guidance (continuing operations)* Add Back: Estimated Restructuring Costs and Other Items ~ $0.17 Adjusted EPS (non-GAAP) Reported EPS $2.23 - $2.63 Free Cash Flow $275 mil. - $325 mil. $2.40 - $2.80 1Q13 earnings expected to be 20% to 25% of full year earnings * Includes
Slide 16: Appendix: Realigned results reflecting new operating structure
Appendix: Realigned results reflecting new operating structure Dollars in millions FY10 1Q11 2Q11 3Q11 4Q11 FY11 1Q12 2Q12 3Q12 4Q12 FY12 Pressure-sensitive Materials Reported Sales $4,000.8 $1,083.3 $1,082.7 $1,070.6 $1,024.1 $4,260.7 $1,064.8 $1,080.2 $1,050.4 $1,060.1 $4,255.5 Organic Sales Chang
Slide 17: Appendix: Realigned results (Reconciliation of GAAP to Non-GAAP Measures)
Appendix: Realigned results reflecting new operating structure (Reconciliation of GAAP to Non-GAAP Measures) Dollars in millions Pressure-sensitive Materials Reconciliation of Operating Margins: FY10 1Q11 2Q11 3Q11 4Q11 FY11 1Q12 2Q12 3Q12 4Q12 FY12 Net Sales $4,000.8 $1,083.3 $1,082.7 $1,070.6 $1,0
Slide 18: Appendix: Realigned results (Reconciliation of GAAP to Non-GAAP Measures)
Appendix: Realigned results reflecting new operating structure (Reconciliation of GAAP to Non-GAAP Measures) Dollars in millions Other specialty converting businesses Reconciliation of Operating Margins: FY10 1Q11 2Q11 3Q11 4Q11 FY11 1Q12 2Q12 3Q12 4Q12 FY12 Net Sales $247.0 $65.6 $63.3 $66.7 $60.0
Slide 19: Estimated change in sales by segment
(1) Totals may not sum due to rounding. Pressure-sensitive Materials Estimated change in sales due to: FY10 1Q11 2Q11 3Q11 4Q11 FY11 1Q12 2Q12 3Q12 4Q12 FY12 As reported sales change 11% 9% 7% 9% 1% 7% -2% 0% -2% 4% 0% Foreign currency translation 1% 0% 6% 7% -1% 3% -2% -5% -8% -2% -4% Acquisitions,
Slide 20: A, AVERY Inspired Brands.
A, AVERY Inspired Brands. DENNISON intelligent World