March Investor Presentation

Transcription

1 March 2013 Investor Presentation October May

2 Cautionary Statement Please note that in this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. Such discussion and statements will often contain words as expect, anticipate, believe, intend, plan and estimate. Such forward-looking statements include statements regarding the Company s adjusted basic and diluted earnings per share, expected or estimated revenue, the outlook for the Company s markets and the demand for its products, estimated sales, segment earnings, net interest expense, income tax provision, earnings per share, reorganization and other charges, cash flows from operations, consistent profitable growth, free cash flow, future revenues and gross operating and EBITDA margin improvement requirement and expansion, organic net sales growth, bank leverage ratio, the success of new product introductions, growth in costs and expenses, the impact of commodities, currencies, and transportation costs and the Company s ability to manage its risk in these areas, repurchase of shares of common stock from time to time under the Company s stock repurchase Template program or otherwise, and the impact Title of acquisitions, divestitures, restructurings and other unusual items, including the Company s ability to successfully integrate and obtain the anticipated results and synergies from its consummated acquisitions. These projections and statements are based on management's estimates and assumptions with respect to future events and financial performance, and are believed to be reasonable, though are inherently difficult to predict. Actual results could differ materially from those projected as a result of various factors. A discussion of factors that could cause results to vary is included in the Company s periodic and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. This presentation also contains non-gaap financial measures. For purposes of Regulation G, a non-gaap financial measure is a numerical measure of a company's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of operations, balance sheets, or statements of cash flows of the Company; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-gaap financial measures to the most directly comparable GAAP financial measures. These non-gaap measures are provided because management of the Company uses these financial measures in monitoring and evaluating the Company s ongoing financial results and trends. Management uses this non-gaap information as an indicator of business performance, and evaluates overall management with respect to such indicators. Additionally, the Company uses non-gaap financial measures because the Company's credit agreement provides for certain adjustments in calculations used for determining whether the Company is in compliance with certain credit agreement covenants, including, but not limited to, adjustments relating to non-cash purchase accounting adjustments, non-cash impairment charges of goodwill, intangibles and other assets, certain net reorganization costs, acquisition-related and other costs, transaction and integration costs, non-cash Venezuela hyperinflationary and devaluation charges, gains and losses as a result of currency fluctuations, gain on the sale of a domestic business, noncash stock-based compensation costs, loss on early extinguishment of debt, non-cash original issue discount amortization and other items. These non-gaap measures should be considered in addition to, not a substitute for, measures of financial performance prepared in accordance with GAAP. For more complete information, please see the financial statements, supplemental financial slides, and reconciliations of certain non-gaap to comparable GAAP financial measures on the Jarden website in the section For Investors. 2 2

3 Photograph by Ace Kvale Agenda Jarden Overview and Performance History Jarden Today Strategic Initiatives Appendix 3 3 3

4 Investment Highlights Global diversified consumer products company, operating the world s largest sports equipment business Over 100 powerful brands that consumers trust Proven track record of strong financial performance Evidence of innovation and execution capability Confirmed through product and industry awards Experienced management teams who know how to manage through growth and recessionary times Organic growth drivers (supplemented by acquisition growth) Geographic expansion Brand expansion to adjacent categories Cross BU and segment leverage in selling and infrastructure Strong balance sheet and cash flow generation capabilities 4 4

5 External Recognition Since its inception in 2001 Jarden has grown, organically and through a series of disciplined acquisitions, into a recognized global consumer products company FORTUNE 500 Jarden ranks #371 overall, up from #492 in 2007 Jarden ranks #15 in terms of total rate of return to shareholders over the last decade BARRON S 500: AMERICA S TOP COMPANIES Jarden ranks #256, up from #326 in 2011 Jarden was added to the S&P Midcap 400 Index in August 2012 In 2012, Jarden was among the top 5 performing stocks compared to the S&P 500 Consumer Staples Sector Index on a 1, 5 and 10 year basis * Jarden has won numerous supplier, product and industry awards * Based on stock price appreciation. 5 5

6 ($ s in millions) Proven Track Record of Growth CAGR 34% Net Sales $4,660 $3,846 $3,189 $368 $588 $839 $6,680 $6,696 $6,023 $5,383 $5, Segment Earnings* $298 CAGR 27% $419 $502 $609 $606 $710 $791 $814 $75 $87 $ Cash Flow from Operations $241 $236 $305 $250 $641 $289 $427 $480 $71 $74 $ * Non-GAAP excluding restructuring, non-operational and non-cash charges and credits. 6 6

7 Expanded International Presence 2002 NET SALES 2012 NET SALES International 10% United States 90% International 39% Other 65% Mass A 21% Mass B 5% United States 61% Sales in fewer than10 countries outside of US Sales in over 100 countries outside of US Note: Based on 2002 and 2012 actual results. 7 7

8 JARDEN TODAY 8 8

9 Jarden s DNA Strive to be better Support the individual, but encourage teamwork Retain and develop the best talent Think lean; act large Listen, learn, innovate Have fun, work hard, execute Deliver exceptional financial results Enhance the communities in which we operate Jarden s DNA is the foundation for all strategic, operational and financial initiatives and ultimately the key to our success 9 9

10 Diversification 2012 NET SALES BY REGION 2012 NET SALES BY CUSTOMER Latin America 9% Other 7% Mass A 18% Canada 6% Europe 17% U.S. 61% Other 66% Mass B 4% Sporting Goods A 1% Club A 3% Mass C 2% Mass D 2% Dot Com A 1% Intl Mass A 1% Specialty A 1% Intl Mass B 1% Note: Based on 2012 actual results. Top customers include retailers only

11 Operating Segments 2012 Net Sales $6.7 billion Manufacturing in ~70 plants across 16 countries Outdoor Solutions 40% Process Solutions 5% Branded Consumables 26% Consumer Solutions 29% Business operations in ~40 countries 25,000+ employees Focus on Operational Excellence Seasonal Staples product portfolio Note: Based on 2012 actual results; percentages exclude intercompany eliminations

12 Outdoor Solutions 2012 Net Sales of $2.7 billion Template Title 2012 Segment Earnings Margin of 12.1% World s largest sports equipment company Leadership positions in US, Europe and Japan Extensive distribution network spanning mass, sporting goods, specialty, internet and team channels Market Position in Core Categories Baseball Gloves & Balls Camp Stoves Fishing Lanterns Skis & Bindings Sleeping Bags & Inflatable Beds Tents OUTDOOR SOLUTIONS CONSUMER SOLUTIONS BRANDED CONSUMABLES Global provider of innovative, recreational and highperformance products designed to maximize consumers enjoyment of the outdoors Note: Positions noted above refer to the U.S. market unless indicated otherwise

13 Consumer Solutions 2012 Net Sales of $1.9 billion 2012 Segment Earnings Margin of 14.7% Strong portfolio of brands with leading positions across core categories Most broadly distributed brand portfolio in core categories throughout the Americas Distribution channels include mass merchants, warehouse clubs, specialty retailers, direct-toconsumer and international Market Position in Core Categories Blenders Coffee Makers Slow Cookers Vacuum Packaging Air Purifiers / Humidifiers Warming Blankets OUTDOOR SOLUTIONS CONSUMER SOLUTIONS BRANDED CONSUMABLES Global provider of products designed to simplify the daily lives of consumers in and around the home; making everyday experiences, more satisfying Note: Positions noted above refer to the U.S. market unless indicated otherwise

14 Branded Consumables 2012 Net Sales of $1.8 billion 2012 Segment Earnings Margin of 14.8% High gross margin product mix Strong, stable cash flow generation Diversified product mix with leadership positions in most categories Market Position in Core Categories Baby Care* Boxed Plastic Cutlery Firelogs Fresh Preserving Gloves & Sponges ** Matches & Toothpicks Playing Cards Rope & Cordage Smoke & Co Alarms Cleaning Supplies *** OUTDOOR SOLUTIONS CONSUMER SOLUTIONS BRANDED CONSUMABLES Leading provider of primarily niche, affordable, consumable household staples used in and around the home Note: Positions noted above refer to the U.S. market unless indicated otherwise. * Category includes aggregate sales of pacifiers, sippy cups, bottles, and other oral development and feeding products. ** Home-use gloves and sponges in EU G5 market. *** Household stick and smallware cleaning supplies in U.S. market

15 STRATEGIC INITIATVIES

16 Long-Term Average Annual Financial Goals Financially Disciplined Faster Better Preemptive 3% to 5% organic sales growth ~ 50 bps gross margin expansion Smarter Proactive 10% to 15% profitability improvement Leaner 10% inventory improvement Insightful Leverage SG&A to improve segment earnings margins to 13.5% Strategic Innovative Nimble Responsive Bank Leverage Ratio of 3:1x 16 16

17 Value of the Brands Trusted, quality brands synonymous with niche categories Over 100 active brands 14 brands in continuous use for 100 years OUR LARGEST BRANDS $150 Million $800+ Million Sales

18 Brand Equity Investment ($ in millions) $240 $241 $329 $297 $384 Brand Equity and Product Innovation = Higher Prices (i.e. greater value) and Higher GM Each year ~30% of sales come from products launched within past three years Creative Go-To-Market Initiatives Relevant consumer outreach utilizing multi-media approach & Point of Purchase programs Note: Figures above include marketing and R&D expenses. television print Smart phone app Social media radio 18 18

19 Targeted Growth Initiatives Investment and resources directed to drive growth in multiple brands and geographies Marmot clothing, equipment and retail stores ExOfficio clothing brand provides counter seasonal hedge Rawlings brand expansion to football helmets Rawlings Japan re-establishes operations for growth in second largest baseball market Tailgating leverages multiple Jarden brands Zoot triathlon gear Pet Supply products NUK branded baby products in US Ski boots and helmets China sales focus with incremental resources 19 19

20 Targeted Growth Initiative Marmot Brand relevant market approximates $10B Today, we have less than 2% market share Relevant market = lifestyle apparel and equipment Expand the brand to adjacent categories (equipment)and seasons (non-winter) Drive awareness, geographic penetration and showcase the brand through retail store expansion Drive revenue growth and profitability through innovation and serving broader casual lifestyle, as well as core technical apparel markets 20 20

21 Rawlings Brand relevant market approximates $3.4B Today, we have less than 10% market share Expand the brand to adjacent categories and seasons Football Helmets Tailgating Targeted Growth Initiative Geographic expansion Re-establishing operations (vs. through licensee) in Japan Introduced softball brands in China Drive revenue growth and profitability through innovation Leverage infrastructure 21 21

22 Targeted Growth Initiative Tailgating represents both a market expansion opportunity as well as cross business unit and cross segment product development and marketing leverage Product Innovation License/Channel Expansion Merchandising Homegating Expansion 22 22

23 Targeted Growth Initiative Pet supply market is estimated at $6 billion Today, we have less than 1% share Approximately 62% of US households own a pet Expand beyond grooming business into new categories, for example: Indoor/Outdoor Bark Control Flea & Tick Products Remote Training & Fencing Automatic Fountains and Feeders Expand professional leadership with innovation and DTC groomer initiatives Sunbeam Pets at Petsmart Expansion Q1-Q Oster Professional Grooming 2012 Sunbeam Sonic Egg Bark Control Q

24 Distribution Growth Opportunities Russia China ` Brazil India South Africa Existing markets > 0.5% of 2012 Net Sales Existing markets < 0.5% of 2012 Net Sales Existing markets with High Growth Opportunity Other Growth Markets 24 24

25 APPENDIX Select Product Awards Organic Growth Drivers & Acquisition Criteria Debt Maturity Schedule Segment Earnings Reconciliation Manufactured vs. Sourced Product 25 25

26 Product Innovation 2012/13 Award Winning Products Ski Model Magazine Award BOLT High Performance Hard Snow Ski Single Test Open Space AFTERSHOCK Men s Mixed East RICTOR Men s Hard All Mountain All Mountain All Mountain 26 26

27 Product Innovation 2012/13 Award Winning Products SHIRO 27 27

28 Product Innovation 2012/13 Award Winning Products 28 28

29 Product Innovation 2012/13 Award Winning Products Zion Jacket Armageddon Under-cuff Glove Isotherm Hoody 29 29

30 Product Innovation 2012/13 Award Winning Products Best Saltwater Reel Best Freshwater Reel PENN Spinfisher Family ABU Garcia Revo Family Best Combo PENN Battle Combo 30 30

31 Product Innovation 2012/13 Award Winning Products Best Terminal Tackle Best Kids Tackle Best Line Shakespeare Hide-A-Hook Bobber Gulp! Heads Berkley Trilene XL & XT 31 31

32 Product Innovation 2012/13 Award Winning Products Coleman ROADTRIP LX Best Compact Grill Coleman Instant Tent 6 Outdoor Gear Lab Best Buy September 2012 Coleman PerfectFlow 2-Burner Stove Outdoor Gear Lab Best Buy March

33 Product Innovation 2012/13 Award Winning Products NUK Disney First Choice Learner Bottle Annabel Karmel Masher & Bowl NUK Disney Soother Chain NUK Baby Bottle Cleanser NUK Freshfoods Starter Set 33 33

34 Product Innovation 2012/13 Award Winning Products Elected Product of the Year MAPA SPONTEX wins 5th EFFIE award 34 34

35 Product Innovation 2012/13 Award Winning Products Shed Monster Oster Ice Shaving Blender 35 35

36 Product Innovation 2012/13 Award Winning Products Combination smoke & Co alarm with voice output Home 1 fire extinguisher 36 36

37 Organic Growth Drivers Target: 3 to 5% long-term average annual organic growth Brand Leverage Product Innovation Geographic Expansion Leveraging Retail Penetration 37 37

38 Disciplined Acquisition Criteria Strong cash flow characteristics Category leading positions in niche markets Products that generate recurring revenue Attractive historical margins or margin expansion opportunities Jarden s acquisitions create channel, geographic, cross-selling, supply chain and margin expansion opportunities Accretive to earnings (pre-synergies) Post-earnout EBITDA multiple of 6-8x Disciplined acquisition strategy complements overall growth and has been additive to Sales and EBITDA performance 38 38

39 $ in millions Impact of Recent Capital Market Actions CURRENT MATURITY PROFILE (As of 12/31/2012) $1,000 $500 $600 $384 $300 $0 $18 $21 $94 $128 $289 $300 $85 $ $607 $468 $300 Term Loan A Term Loan B Securitization (a) 8.0% Sr Notes 6.125% Sr Notes 7.5% Sr Sub Notes 1.875% Convertible Sr Sub Notes (b) 7.5% US/EUR Sr Sub Notes Non-U.S. and Other Debt (a) (b) Securitization facility which matures in 2015 is shown for accounting purposes as short term. Includes unamortized original issue discount value of $79 million

40 Segment Earnings* Reconciliation ($ s in millions) * Non-GAAP excluding restructuring, non-operational and non-cash charges and credits

41 Manufactured vs. Sourced Product Warehouse & distribution costs 7% Other cost of goods sold 10% Sourced Product 41% Manufactured Product 42% Overhead 21% Direct labor 10% Raw Material 72% 69% Flexible operating structure enables Jarden to maximize absorption & minimize costs Total Cost of Goods Sold $4.8 billion Note: Estimated based on 2011 actual results