Acco Brands Corporation · NYSE:ACCO
Acco Brands — Barclays Capital High Yield Bond and Syndicated Loan Conference 2012
23 slides from Acco Brands's conference presentation, Mar 26, 2012
Slide 1: ACCO Brands Corporation - Barclays High Yield Bond and Syndicated Loan Conference
ACCO Brands Corporation March 26, 2012 Barclays Capital High Yield Bond and Syndicated Loan Conference
Slide 2: Forward-Looking Statement & Reg. G
1 Forward-Looking Statement & Reg. G q This presentation contains statements which may constitute "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties, are made as
Slide 3: Our Vision
2 Our Vision q To be the leading branded player within the categories we serve q Compete effectively in all relevant channels q Expand global presence q Leverage a scaleable and cost efficient operating platform
Slide 4: Combination with MWV C&OP is a Significant and Enabling Step
3 Combination with MWV C&OP is a Significant and Enabling Step q One of the world’s largest office supply manufacturers with a portfolio of leading brands § Leading brands include Swingline®, Kensington ®, GBC ®, Day-Timer ®, Rexel, Marbig, Quartet ®, NOBO and Wilson Jones ® q Customers include cont
Slide 5: Right Time, Right Opportunity, Right Team
4 Right Opportunity Right Team Existing ACCO Brands business positioned for growth Consolidating global industry Volatile market environment creating attractive strategic opportunities Right Time Consistent with our strategy to be the leading branded player within the categories we serve Expands our
Slide 6: Transaction Rationale
5 Transaction Rationale Bolsters the #1 pure play office and school products company and positions ACCO Brands well within the office supply sector Scale Player In a Global Industry ¡ Enhances our position as a scale player in a global industry ¡ Creates a partner of choice for customers ¡ Supports
Slide 7: 2011 Office Products Sales
6 2011 Office Products Sales ___________________________ Source: Company filings and estimates. 1. 1/3/2011: 3M to acquire the consumer and office products business of Avery Dennison; expected completion in H2 2012. Solidifies A Leading Position in Global Industry Pro Forma $2,062 (1) (1)
Slide 8: #1 and #2 Brands 80%
7 #1 and #2 Brands 80% q Leading brands represent more than 80% of combined portfolio § ACCO Brands will be the brand leader in a broad base of product categories: binding, laminating, boards/easels, stapling/punching, notebooks, planning products, presentation/storage and laptop physical security •
Slide 9: Extends Geographic Reach
8 Extends Geographic Reach ACCO Brands Standalone Pro Forma Company q Provides opportunities for substantial cross-selling as well as further organic growth through geographic expansion into emerging and faster-growing markets FY 2011 Sales by Geography
Slide 10: Extends reach into key consumer retail channels
9 q Extends reach into key consumer retail channels q MWV C&OP is a world-class manager of trade relationships and channel investment strategies § Invests in category management, consumer-focused marketing, forecasting and supply chain analytics Pro Forma Company Improves Channel and Product Mix Div
Slide 11: Enhances Earnings Growth (Pre-Synergies)
10 Enhances Earnings Growth (Pre-Synergies) (1) ___________________________ 1. Based on adjusted combined numbers for the trailing twelve month period ended Dec. 31, 2011 and assumes 115 million shares outstanding.
Slide 12: Strengthens Cash Flow
11 Strengthens Cash Flow EBITDA - CAPEX (1) ___________________________ 1. For the period ended Dec. 31, 2011 2. Net debt / projected adjusted combined supplemental EBITDA q Enhanced cash flow generation provides significant deleveraging capabilities Net Leverage (2) (1)
Slide 13: Expected Capital Structure
12 Facility Facility Size (2) Interest Rate Methodology Rate (1) Term Loan A (in CAD) 35 Canadian LIBOR+300 bps 4.30% Term Loan B 450 LIBOR+325 bps, 1% LIBOR floor, issued at 99 OID 4.25% Spinco securities (3) 270 TBD Senior subordinated notes 151 7.625% fixed 7.625% Book interest expense $73-76MM E
Slide 14: Credit Ratings
13 FYE 2011 Post Close Net debt 548 1,186 Net leverage x3.3 x3.3 Secured Debt Ratings FYE 2011 Post Close Moody’s B1 Ba2 (BB) S&P BB- BB+ Fitch BB+ Credit Ratings
Slide 15: Summary
14 Summary Enhances Global and Channel Presence Financially Compelling Scale Player In a Global Industry Strengthens Portfolio Brands Attractive Synergies and Value Creation
Slide 16: Appendix
Appendix
Slide 17: Pro Forma Financial Profile
16 ACCO Brands (1) Pro Forma (2) (Pre-Synergies) Adjusted Combined (3) (Pre-Synergies) $1318 $2062 $2062 $415 $660 $668 31.5% 32.0% 32.0% $115 $204 $231 8.7% 9.9% 11.2% $168 $302 $321 12.8% 14.6% 15.5% $155 $273 $292 3.3x 3.4x 3.2x $0.64 $0.55 $1.03 87% Period Ended December 31, 2011 Pro Forma Finan
Slide 18: ACCO Brands Historical Financials
17 ACCO Brands Historical Financials ___________________________ 1. 2011 excludes $6 million of transaction-related costs reported in SG&A. 2009 excludes other charges of $3 million reported in COGS and $1 million reported in SG&A, and $19 million of restructuring and impairment charges.
Slide 19: MWV C&OP Adjusted Operating Financials
18 MWV C&OP Adjusted Operating Financials (1) ___________________________ 1. Refer to pages 20-21 for the “Reg G” reconciliation of Carve-Out results to Adjusted Results. 2. MC&OP U.S. GAAP Carve-out financials, including stepped-up pro forma depreciation and amortization, but excluding inventory st
Slide 20: Pro Forma Modeling Assumptions
19 (U.S. $ in millions, adjusted basis) Year 1 Estimate Capital Expenditures $55 Cash Restructuring (over ~24 mo) $30-40 Cash Interest $67-70 Book Interest $73-76 Net Working Capital Use Depreciation $46 Amortization $27 Amort. of Stock Comp $15 Cash Taxes $45 Effective Tax Rate 4 30-32% Diluted Sha
Slide 21: Reg G - Mead C&OP 2011 Adjusted Results
20 5 Reg G - Mead C&OP 2011 Adjusted Results ___________________________ 1. MC&OP U.S. GAAP Carve-out financials, including stepped-up pro forma depreciation and amortization, but excluding inventory step-up amortization, one-time transaction costs and certain allocations from the MWV parent which w
Slide 22: Reg G - Mead C&OP 2010 Adjusted Results
21 5 Reg G - Mead C&OP 2010 Adjusted Results ___________________________ 1. MC&OP U.S. GAAP Carve-out financials, including stepped-up pro forma depreciation and amortization, but excluding inventory step-up amortization, one-time transaction costs and certain allocations from the MWV parent which w
Slide 23: ACCO Brands Corporation
ACCO Brands Corporation
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