Silgan Holdings Inc. · NYSE:SLGN
Silgan — Merger or Acquisition (January 2017)
34 slides from Silgan's merger presentation, Jan 23, 2017
Slide 1: Silgan to Acquire Dispensing Systems Business
Exhibit 99.2 SILGAN TO ACQUIRE DISPENSING SYSTEMS BUSINESS Expanding Franchises in Rigid Packaging January 23, 2017
Slide 2: Forward Looking Statements & Non-GAAP Measures
FORWARD purchase our performance uncertainties for EBITDA net current income, or Margin expectations subscribe LOOKING or andcash achievements and risks flow adjusted for described STATEMENTS and any or total projections securities. to total differ in equity our equity materially Annual about Certai
Slide 3: Agenda
AGENDA Expanding Franchises in Rigid Packaging About Silgan About New Dispensing Systems Business Transaction Summary and Strategic Rationale Financial Impact Q & A 3 I SILGAN HOLDINGS INC.
Slide 4: Our Franchise
OUR FRANCHISE Sustainable Competitive FOCUSAdvantage Best Value 4 I SILGAN (quality, price, HOLDINGS service)INC. High Return on Capital Employed Leading Technology and Manufacturing Support Leading Market Positions Long-term Customer Relationships
Slide 5: Silgan Snapshot
SILGAN •Footprint respective Health care SNAPSHOT $2,287 owners products million and 80% used Leading $799 16% formillion identification Packaging 3% 1% $551 87Company plants million purposes ? 63% 9,600 with only. ofThree employees Sales See calculation Diversified 22%?of Serving Sales of Operating
Slide 6: Financial Summary - Silgan and Silgan Closures
FINANCIAL EBITDA information $527 onSUMMARY $476 pages$460 30 and Silgan – SILGAN 31. 6Closures I SILGAN AND Sales SILGAN HOLDINGS $883 $805 CLOSURES INC. $799 Income ($ in millions) From Operations LTM 9/30 762014 92 972015 EBITDA 2016 118 Silgan 130Sales 136 Adjusted $3,912 $3,764 EBITDA $3,637 $1
Slide 7: Historical Returns
HISTORICAL Revenue Equity. (1) $2,000 TotalRETURNS 15.0% equity adjusted 10.0% - SILGAN $1,000 for November AVERAGE 5.0% $0 0.0% share ROE2005 repurchase = 26% 2006$5,000 2007 as detailed 2008 35.0% 2009 on4,000 page 2010 $3,912 32.2011 7 I SILGAN 30.0% 2012 2013 $ $3,509 HOLDINGS 2014$3,588 2015 IN
Slide 8: Historical Silgan Closures Franchise
HISTORICAL $400 Acquisition GAAP Revenue information of $276 IPEC RETURNS on 5.0% 3 Acquisition page$200 –31. SILGAN 8$0I of 0.0% SILGAN Portola CLOSURES 2005HOLDINGS Packaging 2006 2007 FRANCHISE Corp 2008 INC.Note: 2009 $1,000 White 2010 Revenue 2011 Cap International 2012 CAGR 2013 =2014 acquired
Slide 9: Proven Acquisition Track Record
PROVEN Food 2010 Bottle, Currie, Vogel&Noot, Cans, 1987 2006 ACQUISITION 1995 Aim Rexam Finger Packaging, 2011 Plastic Lakes DGS, TRACK Thermoformed 1989 2011 (Agrilink), Fortune RECORD NPPC-Steel 1996 Plastics, Food, METAL Alcoa Can, 2012 1989 Closures, 2011 CONTAINER PLASTIC Express Ontaj, 1997 Pl
Slide 10: Agenda
AGENDA Expanding Franchises in Rigid Packaging About Silgan About New Dispensing Systems Business Transaction Summary and Strategic Rationale Financial Impact Q & A 10 I SILGAN HOLDINGS INC.
Slide 11: Dispensing Systems Business Portfolio
DISPENSING million Nasal Cosmetic presentation End $33 Key • million Fabric areCustomers SYSTEMS theCare $37 property million • Geographic Hair –BUSINESS ofCare their $36 million •respective Bath 55%PORTFOLIO and 35% % ofGarden owners 6% Sales 4%Triggers •and 30% Footprint Airused of Care Sales Disp
Slide 12: Financial Summary - Dispensing Systems Business
FINANCIAL EBITDA $80 SUMMARY $83 $103 Synergies – DISPENSING 15 15 15 Pro SYSTEMS Forma Adjusted BUSINESSEBITDA ($ in millions) $95 $98 $118 FiscalNotes: Year Ending Non-GAAP 9/30 information 2014 2015 2016 reconciled Sales $607 to GAAP $583information $566 IncomeonFrom page Operations 33. 12 I SILG
Slide 13: Key Investment Highlights
KEY future expand 33 forINVESTMENT performance reconciliation profile operating growth toHIGHLIGHTS GAAP margins Advanced information. Global 2016 dispensing manufacturing Adjusted 13 I SILGAN Technology, EBITDA Strategic HOLDINGS solutions Margin: partner 21%(1) INC. Innovation network Proven suppo
Slide 14: Agenda
AGENDA Expanding Franchises in Rigid Packaging About Silgan About New Dispensing Systems Business Transaction Summary and Strategic Rationale Financial Impact Q & A 14 I SILGAN HOLDINGS INC.
Slide 15: Transaction Summary
TRANSACTION expected million December the target Expected rapid and 31, assumed 2016. deleveraging closing SUMMARY (2)financing Estimated in 1Q from $1.025bn 2017 for robust Total the Broadens acquisition. Leverage free cashcash offer Silgan Ratio flow EV 15Closures Fully /Ias Projected SILGAN defin
Slide 16: Dispensing Systems Business Strategic Rationale
DISPENSING enhance cash flowposition accretion SYSTEMS forEquity other dispensing BUSINESS value creation closures Established through Significant deleveraging franchise customer with Broadens leading overlap Silgan positions ValueClosures enhancing in higher Franchise synergy margin16 dispensing an
Slide 17: Extending Silgan's Closure Franchise Dispensing Presence
EXTENDING Dispensing Presence 17Closures I SILGAN SILGAN’S Trigger HOLDINGS CLOSURE SprayersINC. -FRANCHISE - - -Dispensing Food Pumps Specialty - -- -Spray Beauty Pumps & Household, Other Sprayers Healthcare - - - Leading Beverage Market Personal Position CareMarket Lawn &Presence Garden Growth Met
Slide 18: World Class Customer Base
WORLDAcross Overlap CLASS Multiple CUSTOMER Products BASE Note:Common Company Heritage names and BP Lubricants trademarksUnrelenting used in this unique presentation needsare focus theof property marketsofon their andrespective customersowners Willingness and used products, for identification people
Slide 19: Combined Silgan Closures Global Footprint
($ in millions) Manufacturing information onCOMBINED Facility pages 31Dispensing and SILGAN 33. 19 Systems I SILGAN CLOSURES Business HOLDINGS GLOBAL Sub Contractor INC. FOOTPRINT Silgan Closures Pro FormaU.S. Combined Headquarters LTM Revenue: Silgan Closure $1,365ope LTMHeadquarters Adj. EBITDA: S
Slide 20: Pro Forma Sales and Adjusted EBITDA by Segment
Pro Forma Systems Business Sales byPro Segment Forma Adjusted Pro FormaEBITDA Adj. EBITDA of $118m, by Segment see pages (1)2913% and Metal 33 forContainers reconciliation 6% to Metal GAAPContainers information. Closures Pro Forma Closures Adjusted 33% 54% EBITDA 43% 51% by segment Plastic Container
Slide 21: Agenda
AGENDA Expanding Franchises in Rigid Packaging About Silgan About New Dispensing Systems Business Transaction Summary and Strategic Rationale Financial Impact Q & A 21 I SILGAN HOLDINGS INC.
Slide 22: Disciplined Focus on Value Creation
DISCIPLINED FOCUS Focus on Returns Cash Flow Generation Franchise Capital Structure Value Building Creation EBITDA Growth Disciplined Long-Term Acquisition Strategy 22 I SILGAN HOLDINGS INC.
Slide 23: Superior Returns and Cash Flow
SUPERIOR Business normalized Note: capex RETURNS Non-GAAP of $150m. AND information Average CASH FLOW capex reconciled from Adj. 2012-2014 EBITDA to GAAP–was information Capex $121m as %23 on of Ipages Sales SILGAN 20.0% 30 and HOLDINGS 15.0% 33. (1)10.0% Calculated INC. 5.0%using 0.0% Pro (1) 16.6%
Slide 24: Disciplined Financial Approach
DISCIPLINED 4.0x $20.00 as on defined a pro 3.8x commitment forma deleveraging underbasis FINANCIAL Senior to fordividend Consistent Secured the acquisition APPROACH both Credit Silgan 1.0x Facility and track remain 20+ related record at year unchanged the financing history relevant 3.5x 3.5x of per
Slide 25: Last Period of Significant Deleveraging
LAST0.0% 0.5% Packaging PERIOD Peers 5-YearOF include CAGR SIGNIFICANT AptarGroup, 10-Year CAGR DELEVERAGING Ball,2000-2010 Bemis, Crown, Silgan Total Owens-Illinois, Packaging Shareholder Peers Return Sealed S&PCAGR Air 500and Notes: 30.0% Sonoco. Total 27.8% Packaging Shareholder 25.0%Peers’ 20.0%
Slide 26: Acquisition Criteria: A Perfect Fit With Our Franchise
ACQUISITION CONTAINERS HOLDINGS INC. PLASTICS A PERFECTCLOSURES FIT WITH OUR • White FRANCHISE Cap • IPEC CRITERIA… • •Portola Dispensing Best Value Systems (quality, Business price, Leading service) Long-term High ReturnMarket Leading Customer Technology Positions on Capital Relationships and Manuf
Slide 27: Agenda
AGENDA Expanding Franchises in Rigid Packaging About Silgan About New Dispensing Systems Business Transaction Summary and Strategic Rationale Financial Impact Q & A 27 I SILGAN HOLDINGS INC.
Slide 28: Appendix
Appendix
Slide 29: LTM Segment Revenue and Adjusted EBITDA
LTM Less Income twelve Plus ended Charges 2016 32 (13) nine nine $8 SEGMENT September months 369 From Year $1 months months $8 Latest ended Operations -- ended $17 ended 30, REVENUE ended twelve December Adjusted 2015 September September September Year months 247AND ended EBITDA 31, 101 30, ended 20
Slide 30: Adjusted EBITDA and Capex
ADJUSTED income 8.5% costs capital of debt attributable 9.1% expenditures issuance $182.40 8.8% EBITDA costs $172 8.3% to announced $386 30 $145.90 AND Depreciation I$238.70 SILGAN ADJUSTED $129.70 acquisitions $234 HOLDINGS and$156 $217.10 amortization(1) EBITDA 1Plus: - - -$222 INC. -Income LESS L
Slide 31: Adjusted EBITDA - Silgan Closures
ADJUSTED $720 Depreciation EBITDA $883margin $805 EBITDA and$621 13% amortization $615 15% – SILGAN 15% $799 1014% Income 19 CLOSURES 28 17% 30from 16% 28 29 operations ($ 16% 33 in 32 millions) 15% 36$27 15% 42 38 $50 915% Mos. 28$66 29 16% 9$60 39 Mos. 16% Rationalization $74 LTM 17% $599/30 $76 1
Slide 32: Return on Equity
RETURN $156 percentage TotalON equity 32%EQUITY 27% $280 25% $370 – SILGAN 24% $507 23%$525 HOLDINGS 26%$686 29%$554 20% ($ $658 in 26% millions) $754 26% $714 27% LTM32% $710 9/30Average $639 2005$752 2006 ROE Impact 2007 26%2008 of 322016 I 2009 SILGAN tender 2010HOLDINGS offer 2011$269 2012Adjust
Slide 33: Pro Forma Adjusted EBITDA - Dispensing Systems Business
PROamortization $566 and Synergies Adjusted sales 7.7% FORMA Net EBITDA Income $15 11.5% ADJUSTED $1554 $12 16.6% $15 less 49$13 Pro capital 5133$33 EBITDA Forma EBITDA I SILGAN expenditures Plus: Adjusted $75 Income AND HOLDINGS $66PRO EBITDA as tax $99 percent expense FORMA Adjustments: INC. $95 o
Slide 34: Silgan to Acquire Dispensing Systems Business
SILGAN TO ACQUIRE DISPENSING SYSTEMS BUSINESS Expanding Franchises in Rigid Packaging
Silgan Holdings — Merger or Acquisition (January 2017) on 6ix