Slide 1: Third Quarter 2011 Financial Review and Analysis
Exhibit 99.2 Supplemental Presentation Materials Third Quarter 2011 Financial Review and Analysis (preliminary, unaudited) October 26, 2011
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. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, including limitations associated with these non-GAAP financial measures,
Slide 4: 3Q Overview and FY Outlook
3Q Overview and FY Outlook • Lower third quarter results driven by volume declines across all segments and most regions » Sales decline on organic basis comparable to 2Q • Pricing and cost reduction actions offset inflation vs. same period last year; prices and raw material costs are stabilizing • R
Slide 5: 3Q P&L Summary
3Q P&L Summary • Net sales grew approx. 4% on a reported basis (down approx. 2% before the benefit of currency translation) • Operating margin (non-GAAP) flat compared to prior year • Interest expense approx. flat compared to prior year • Effective GAAP tax rate of 30% » Year-to-date adjusted tax ra
Slide 6: Sales Trend Analysis
Sales Trend Analysis 3Q10 4Q10 1Q11 2Q11 3Q11 Organic Sales Change 8.3% 9.0% 6.5% (1.9%) (1.7%) Currency (2.4%) (1.4%) 0.2% 4.6% 5.3% Reported Sales Change 5.9% 7.6% 6.7% 2.7% 3.6% 6 Third Quarter 2011 Financial Review and Analysis October 26, 2011
Slide 7: Margin Analysis
Margin Analysis 3Q11 3Q10 2Q11 Gross Profit Margin (total Company) 25.6% 27.6% 27.3% Operating Margin (non-GAAP): Pressure-sensitive Materials 8.8% 8.3% 9.4% Retail Branding and Information Solutions 3.5% 3.5% 7.4% Office and Consumer Products 9.6% 11.4% 10.9% Other specialty converting businesses 0
Slide 8: 3Q Segment Overview
3Q Segment Overview PRESSURE-SENSITIVE MATERIALS • Reported sales of $976 mil., up 9% compared to prior year » Sales up approx. 2% on organic basis • Label and Packaging Materials sales up approx. 2% on organic basis, as volume decline was offset by pricing actions • Graphics and Reflective Solution
Slide 9: 3Q Segment Overview (continued)
3Q Segment Overview (continued) RETAIL BRANDING AND INFORMATION SOLUTIONS • Reported sales of $361 mil., down 5% compared to prior year » Sales down 7% on organic basis • Operating margin (non-GAAP) flat to prior year as the impact of lower volume was offset by lower employee-related costs and the b
Slide 10: 3Q Segment Overview (continued)
3Q Segment Overview (continued) OTHER SPECIALTY CONVERTING BUSINESSES • Reported sales of $143 mil., up 5% compared to prior year » Sales up 1% on organic basis • Operating margin (non-GAAP) declined to 0.3% as the impact of lower volume was partially offset by productivity initiatives 10 Third Quar
Slide 11: Contributing Factors to 2011 Results
Contributing Factors to 2011 Results Assumptions as of 7/26/11 Assumptions as of 10/26/11 • Organic sales growth of 1.5% to 3.5% • Sales approx. flat on organic basis • Currency translation (at June rates, represents • Currency translation (at October rates, represents approx. 3% tailwind to reporte
Slide 12: 2011 Earnings and Free Cash Flow Guidance
2011 Earnings and Free Cash Flow Guidance 2011 Guidance Reported (GAAP) Earnings Per Share $1.80 - $1.95 Add Back: Estimated Restructuring Costs and Other Items ~ $0.35 Adjusted (non-GAAP) Earnings Per Share $2.15 - $2.30 Free Cash Flow (before dividends) $215 - $235 mil. 12 Third Quarter 2011 Finan