Ball Corporation · NYSE:BALL
Ball — Goldman Sachs Basic Materials Conference 2015
17 slides from Ball's conference presentation, May 19, 2015
Slide 1: Ball Corporation Overview
Ball Corporation Overview John A. Hayes Chairman, President and CEO Goldman Sachs Basic Materials Conference New York, New York May 19, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking” statements concerning future events and financial performance. Words such as “expects,” “anticipates,” “estimates” and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainti
Slide 3: Important Information
Important Information This presentation may be deemed to be solicitation material in respect of the proposed acquisition of Rexam PLC (“Rexam”) by Ball Corporation (“Ball”), including the issuance of shares of Ball common stock in respect of the proposed acquisition. On May 6, 2015, in connection wi
Slide 4: Important Information
Important Information This document is provided for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, shares of Ball Corporation ("Ball") or Rexam Plc ("Rexam"). Further to the announcement released by Ball Acquisition Limited on February 19, 201
Slide 5: Important Information: Disclosure requirements of the UK Takeover Code
Important Information Disclosure requirements of the UK Takeover Code Rexam is a company subject to the jurisdiction of the UK Takeover Code (the “Code”) Under Rule 8.3(a) of the Code, any person who is interested in 1 per cent. or more of any class of relevant securities of an offeree company or of
Slide 6: Key Performance Drivers Going Forward
Key Performance Drivers Going Forward Leverage Existing Business Portfolio and Diverse Customer Base Drive for 10 Vision Maintain Disciplined Financial Strategy Utilize Free Cash Flow to Create Value Execute on Growth Capital Projects Continue Progress on Proposed M&A Generate EVA$ Over Time
Slide 7: Leverage Ball Corporation Portfolio
Leverage Ball Corporation Portfolio Year-end 2014; *excludes corporate undistributed costs. 72% 17% 11% $8.6 billion Net Sales Global Metal Beverage Global Metal Food & Household Aerospace 76% 15% 9% $1 billion Comparable Segment Earnings*
Slide 8: Businesses Serve Diverse Customer Base
Businesses Serve Diverse Customer Base These logos may be registered trademarks of their respective owners.
Slide 9: Drive for 10 Strategy
Drive for 10 Strategy We Know Where We Are Going We want to be the best at everything we do, and will continually strive for perfection at Ball as we pursue our strategy of: Maximizing value in our existing businesses Aligning ourselves with the right customers and markets Expanding into new product
Slide 10: Long-Standing Financial Strategy
Long-Standing Financial Strategy
Slide 11: Strong Cash Flow Fuels Value Creation
Strong Cash Flow Fuels Value Creation 2008 $321MM 2007 $440MM 2006 $183MM 2005 $267MM 2004 $340MM 2011 $505MM 2010 $506MM 2009 $373MM 2012 $548MM 2013 $461MM 2014 $622MM *Free Cash Flow defined as cash flow from operations minus capital expenditures. Over $4.5 Billion of Free Cash Flow* Generation S
Slide 12: Disciplined Growth Capital and M&A Generate EVA$ Over Time
Disciplined Growth Capital and M&A Generate EVA$ Over Time Capital Project Location Projected Start-Up Next Generation Shaped Aluminum Bottle Conroe, Texas 1st Half 2015 Specialty Beverage Can Line Oss, The Netherlands Mid 2Q 2015 Beverage Can End Module Installation Lublin, Poland Mid 2Q 2015 Next
Slide 13: Proposed Offer for Rexam PLC Overview
Proposed Offer for Rexam PLC Overview Complementary global plant network and customer base Strong cultural compatibility Addresses evolving packaging industry dynamics Significant value creation through realization of cost saving synergies and efficiencies Enhanced free cash flow profile Financially
Slide 14: EVA$ Improvement Drives Share Price Higher
EVA$ Improvement Drives Share Price Higher = $ EVA® in excess of our cost of capital = Share Price 94% correlation between EVA$ increase and stock price appreciation $0 $10 $20 $30 $40 $50 $60 $70 $80 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 15: Key Performance Drivers Going Forward
Key Performance Drivers Going Forward Leverage Existing Business Portfolio and Diverse Customer Base Drive for 10 Vision Maintain Disciplined Financial Strategy Utilize Free Cash Flow to Create Value Execute on Growth Capital Projects Continue Progress on Proposed M&A Generate EVA$ Over Time
Slide 16: Non-GAAP Financial Measure
Non-GAAP Financial Measure Twelve Months Ended ($ in millions, except ratios) 12/31/14 Net earnings before taxes, as reported $ 645.6 Add: Total interest expense 193.0 Earnings before interest and taxes (EBIT) 838.6 Add: Business consolidation and other activities 80.5 Add: Undistributed corporate e
Slide 17: Non-GAAP Financial Measure
Non-GAAP Financial Measure ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 Cash flow from operating activities $452 $364 $536 $559 $401 $673 $628 $560 Capital spending (158) (137) (196) (292) (280) (309) (307) (187) Proceeds for replacement of fire-damaged assets 61 49 Incremental pension fu