Sonoco Products Company · NYSE:SON
Sonoco Products — Shareholder Meeting (April 2012)
41 slides from Sonoco Products's shareholder meeting presentation, Apr 18, 2012
Slide 1: Sonoco Annual Meeting of Shareholders
Sonoco Annual Meeting of Shareholders April 18, 2012 Hartsville, South Carolina 1
Slide 2: Board of Directors
Board of Directors James L. Coker Dr. Pamela L. Davies John R. Haley Edgar H. Lawton III 2
Slide 3: Board of Directors
Board of Directors Insert Text Here John E. Linville James M. Micali John H. Mullin III Lloyd W. Newton 3
Slide 4: Board of Directors
Board of Directors Insert Text Here Marc D. Oken Philippe R. Rollier Thomas E. Whiddon 4
Slide 5: Agenda for Meeting
Agenda for Meeting Minutes for 2011 Annual Meeting Elect five members of the Board of Directors Ratify the selection of independent registered public accounting firm Advisory resolution on executive compensation Approve 2012 Long-term Incentive Plan 5
Slide 6: State of Sonoco: Review and Outlook
State of Sonoco: Review and Outlook 6
Slide 7: Forward-looking Statements
Forward-looking Statements Today’s presentation contains a number of forward-looking statements based on current expectations, estimates and projections. These statements are not guarantees of future performance and are subject to certain risks and uncertainties. Therefore, actual results may differ
Slide 8: Challenge and Change
Ld Challenge and Change billions of dollars dollars
Slide 9: 2011: A Difficult Operating Environment
2011: A Difficult Operating Environment Macro-economic Impact on Packaging Industry High unemployment – 8.3% Low confidence in political leadership Consumers Spending habits changing – High end and private label High raw material inflation Customers Cost reduction/substitutions More CPG consolidatio
Slide 10: Changing Business Mix
Changing Business Mix 2011 SALES BY 2012 PERCENT PROJECTED af. A = A \ millions of dollars Paper and Industrial Converted $1,892 +» 42% Paper and Industrial Converted 39% 10
Slide 11: Changing Business Mix
Changing Business Mix 2011 2010 2011 2010 2011 2010 2011 2010 Sales $1,977.3 $1,798.5 Sales $1,892.2 $1,744.0 Sales $471.4 $477.2 Sales $158.0 $104.4 Base EBIT $191.5 $196.0 Base EBIT $138.2 $136.4 Base EBIT $21.7 $14.2 Base EBIT $15.2 $17.5 11
Slide 12: Strategic Objective
Sonoco’s One-page Strategy Low-cost global leader of customer-preferred packaging solutions Expect to be No. 1 or No. 2 in market in selected segments “Shareholder return, customer and employee satisfaction, commitment to excellence, integrity, environmental stewardship and a safe workplace will be
Slide 13: Growing Billion Dollar-plus Platforms
Growing Billion Dollar-plus Platforms Where We Are Focused on Growing through Acquisitions Paper and Industrial Rigid Paper and Closures Global Plastics Converted Products $1.0 billion* $655 million* $2.0 billion* Global Flexibles Packaging Services Protective Packaging $365 million* $430 million* $
Slide 14: State of the Company Remains Strong
State of the Company Remains Strong *THOSE ASSETS USED IN OPERATIONS; CASH AND CASH EQUIVALENTS; INVESTMENTS IN AFFILIATES, HEADQUARTERS FACILITIES AND PREPAID EXPENSES. 14
Slide 15: Returning Value to Shareholders
Returning Value to Shareholders SONOCO’S COMMON SHAREHOLDERS HAVE RECEIVED A TOTAL RETURN OF 59.9% (OR 16.95% ANNUALIZED) OVER THE PAST THREE YEARS. IN 2011, THE COMPANY PAID APPROXIMATELY $115 MILLION TO OUR SHAREHOLDERS IN QUARTERLY CASH DIVIDENDS. 15
Slide 16: Global Consumer Strategy
Global Consumer Strategy Sonoco’s strategy targets a shift in the mix of its business toward faster-growing consumer-related markets. 16
Slide 17: Only Total Solutions Provider
Only Total Solutions Provider Packaging Design, Innovation and Sustainability Artwork Management Retail Merchandising and Recycling Complete Consumer Packaging Supply Packaging Chain Services 17
Slide 18: Corporate Customer Growth
Corporate Customer Growth Key New Brands Won Since 2005 2011 $1.1 billion sales Brand Size $1 billion+ $250 million+ 2005 $0.7 billion sales 18
Slide 19: Private-label Packaging
Private-label Packaging Sonoco PL packaging sales to $165 million in 2011 (8% of Consumer Packaging sales) PL Sales Composite Rigid Flexibles 2010 Cans Plastics $150 million $96 million $19 million $35 million % Division sales 13.5% 5.5% 7.15% 19
Slide 20: New Product Sales
New Product Sales Millions of Dollars 20
Slide 21: Rigid Plastics Growth
Rigid Plastics Growth $75 Million in Net Sales 21
Slide 22: New Plant Business Award
New Plant Business Award Six-year contract effective June 2012 Initial supply to Bath & Body Works brand Purpose-built facility in Columbus, Ohio, on Beauty Park campus Anticipated start date – July 2012 Includes both blow molding and injection molding assets 22
Slide 23: Flexible Packaging Growth
Flexible Packaging Growth 23
Slide 24: Flexible Packaging Growth
Flexible Packaging Growth 24
Slide 25: Global Packaging Services Strategy
Global Packaging Services Strategy 25
Slide 26: Award-winning Retail Displays
Award-winning Retail Displays 26
Slide 27: Protective Packaging Strategy
Protective Packaging Strategy Be the supplier of choice for custom-engineered Protective packaging solutions * *Estimates 27
Slide 28: Infinite Packaging Solutions
INFINITE PACKAGING SOLUTIONS.” 28 1G)
Slide 29: Protexic Brands
Protexic Brands 29
Slide 30: ThermoSafe Brands
ThermoSafe Brands 30 AG)
Slide 31: Alloyd Brands
———————E Alloyd Brands 1 \ = na: 1 abil 2 ‘ DA Approved to Shorten Hea ling Time’ - eo ee h ? | 42) 31
Slide 32: Protective Packaging: A New Total Solutions Platform
Protective Packaging: A New Total Solutions Platform Sonoco + Tegrant = A North American Leader in Protective Packaging Sonoco Sonoco Market ’10-’15 Engineered Primary Material Protective Market Protective Critical Function CAGR Design Level Platform Packaging Packaging Today Tomorrow White Goods 3.
Slide 33: Paper and Industrial Converted Products Strategy
Paper and Industrial Converted Products Strategy Sonoco is a vertically integrated global manufacturer of uncoated recycled paperboard and the world’s largest producer of tubes and cores. 33
Slide 34: Tubes and Cores
Tubes and Cores 34
Slide 35: Hartsville Biomass Boiler Project
Hartsville Biomass Boiler Project 35
Slide 36: Reels Growth
Reels Growth 36
Slide 37: Sonoco Recycling Growth
Sonoco Recycling Growth Grow U.S. collections 10% to 2 million tons in 2012 Greenville, S.C., MRF acquisition Charleston, S.C., mini-MRF development Onslow County, N.C., MRF 37
Slide 38: What We Achieved
ass What We Achieved pay Sustainabi In exes. Top Companies 7 for Leaders 2011 SAM DP | 22 ee: : Sam 22 AION Hewitt Newsweek | 2011 | y Samet. FORTUNE | The RBL Group AG)
Slide 39: People, Culture and Values
People, Culture and Values 39
Slide 40: 2011 Results and 2012 Outlook
2011: Achieved record sales, record net income, third highest base earnings 2012: Projecting record sales of up to $5 billion Expect to achieve record base earnings Free cash flow targeted at business growth, debt reduction, dividends Board approved dividend increase to $1.20 annualized 40
Slide 41: Questions
QUESTIONS 41 AQ)
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