Ball Corporation
Overview
May 2013
Corporation
| 10 Longs
Peak Drive | Broomfield, Colorado 80021 | 303-469-3131 | www.ball.com
1©
| Ball
© BALL
CORPORATION
| BALL.COM
Forward-Looking Statements
This presentation contains "forward‐looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions are intended to identify forward‐looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10‐K, which are available on our website and at www.sec.gov. Factors that might affect our packaging segments include fluctuation in product demand and preferences; availability and cost of raw materials; competitive packaging availability, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve anticipated productivity improvements or production cost reductions; mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange rates or tax rates. Factors that might affect our aerospace segment include: funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts. Factors that might affect the company as a whole include those listed plus: accounting changes; changes in senior management; the recent global recession and its effects on liquidity, credit risk, asset values and the economy; successful or unsuccessful acquisitions; regulatory action or laws including tax, environmental, health and workplace safety, including U.S. FDA and other actions affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; governmental investigations; technological developments and innovations; goodwill impairment; antitrust, patent and other litigation; strikes; labor cost changes; rates of return projected and earned on assets of the company's defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget and debt limit; reduced cash flow; interest rates affecting our debt; and changes to unaudited results due to statutory audits or
other effects.
Reconciliation of certain non‐GAAP financial measures are set forth on www.ball.com.
2 | © BALL CORPORATION | BALL.COM
Ball Corporation – 2012
Total Net Sales
$8.7 Billion
Total Comparable Earnings
$959 Million
Global
Beverage
Cans
77%
Global
Beverage
Cans
74%
Metal Food
Household
16%
Aerospace
10%
 133‐year old packaging and aerospace company
 World’s largest producer of metal beverage cans
 Leading supplier of aerospace products to U.S. government
3 | © BALL CORPORATION | BALL.COM
Metal Food
Household
14%
Aerospace
9%
Management Update – Operations
John Hayes
President & CEO
Gerrit Heske
SVP & COO,
Global Metal
Beverage
Packaging
Rob Strain*
Michael Feldser
President,
Ball Aerospace &
Technologies Corp.
SVP & COO,
Global Metal Food
& Household
Products
Packaging
*effective end of March 2013
Michael Hranicka
President, Metal
Beverage Packaging,
Americas
Colin Gillis
Gihan Atapattu
President, Ball
Packaging Europe
President, Ball Asia
Pacific Limited
Tony Barnett
President, LatapackBall Embalagens,
Ltda. (Brazil)
4 | © BALL CORPORATION | BALL.COM
Dan Rabbitt
VP & General
Manager, Ball
Aerocan, Americas
Giorgio Aliprandi
Managing Director,
Ball Aerocan, Europe
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 5 | © BALL CORPORATION | BALL.COM
Expanding
into new products and capabilities
Broadening
our geographic reach
Leveraging
our know‐how and technology
expertise
Maximizing Value in our Existing Businesses
Multi‐year Program to Align Costs and Manufacturing Footprint
2010
2012
Deployed Lublin, Poland can line to Serbian facility
Closed Torrance, California beverage can facility
Moved European HQ to Zurich
Aerospace Cleanroom Expansion
Closed Columbus, Ohio beverage can facility
Voluntary Separation Program for U.S. Salaried Employees
Closed Gainesville, Florida beverage end facility
N. A. Metal Beverage
Ball Aerospace & Technologies Corp.
European Metal Beverage
U.S. Salaried
6 | © BALL CORPORATION | BALL.COM
Expanding into New Products and Capabilities
2010
2011
2012
Neuman acquisition
Aerocan
acquisition
Envases plant acquisition
Aluminum slug manufacturing in North America
Extruded aluminum aerosol and slug manufacturing in Europe
Extruded aluminum aerosol manufacturing in Mexico
North American 12‐ounce volume declines partially offset by specialty can growth
These logos may be registered trademarks of
their respective owners.
7 | © BALL CORPORATION | BALL.COM
Alumi‐Tek
reclosable
aluminum bottle
11.5 oz.
sleek
7.5 oz.
mini
Aligning Ourselves with the Right Customers
and Markets: World-Class Customer Base
8 | © BALL CORPORATION | BALL.COM
These logos may be registered
trademarks of their respective owners.
Broadening Our Geographic Reach
Ball Packaging Locations Worldwide
CANADA
EUROPE
USA
CHINA
MEXICO
BRAZIL
ARGENTINA
9 | © BALL CORPORATION | BALL.COM
Metal Beverage Packaging Facilities
Headquarters
Metal Food & Household Packaging Facilities
Operations Office
Plastic Packaging Facilities (non-beverage)
Joint Ventures
Extruded Aluminum Packaging
Research Facilities
Leveraging Our Technology and Know How
Supply high‐quality aerospace products on time and on budget
Ball Aerospace & Technologies
$ millions
$1,020
$989
$897
$886
$774
$597
$518
45%
46%
38%
25%
2006
2007
25%
2008
27%
2009
Contracted Backlog
Ball built, WorldView‐2 Image of Bushehr Nuclear Power Plant., Iran
Courtesy of DigitalGlobe
10 | © BALL CORPORATION | BALL.COM
50%
2010
2011
2012
Fixed Price %
Sustainability: The Triple Bottom Line
Vision
By balancing economic, environmental and social impacts
in our decision making and activities, we will create long-term,
shared value for our stakeholders and for Ball Corporation.
Corporate
Priorities
Innovation
Operations
Talent
Management
Recycling
Supply Chain
Community
Safety
Electricity
Gas
Water
Waste
VOCs
Operational
Priorities
(”Big 6”)
11 | © BALL CORPORATION | BALL.COM
Our Financial Strategy
12 | © BALL CORPORATION | BALL.COM
Cash Generators
$4.1 Billion
2012 $548M
2011 $505M
2010 $506M
2009 $373M
2008 $321M
2007 $440M
2006 $183M
2005 $267M
2004 $340M
2003 $365M
2002 $293M
*Free Cash Flow Defined as Cash from Operations Less Capital Expenditures
13 | © BALL CORPORATION | BALL.COM
EVA$ Improvement Drives Share Price Higher
$50
$45
94% correlation between EVA$
increase and stock price appreciation
$350
$300
$250
Stock Price
$35
$30
$200
$25
$150
$20
$15
$100
$10
$50
$5
$0
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
$0
= Share Price
14 | © BALL CORPORATION | BALL.COM
= $ EVA® in excess of our cost of capital
EVA$ (millions)
$40
Returning Value to Shareholders
$2.9 billion returned to shareholders since 2002
$600
Net Share Repurchases
Dividends
($ millions)
$500
$400
% of Free
Cash Flow
$62
$38
$41
$200
$0
$46
$43
$300
$100
$36
$358
$20
$69
$507
$474
$494
2010
2011
2012
$300
$211
$27
$28
$39
$50
2002
2003
2004
30%
15%
26% 150%
15 | © BALL CORPORATION | BALL.COM
$41
$46
2005
2006
47%
$38
2007
57%
2008
105%
2009
10% 107% 103% 101%
Value Creation Model: Inputs and Outcomes
Free Cash Flow (After Maintenance CAPEX)
Long‐Term EPS Growth
10‐15%
Share Buyback
5% – 7%
Maximize Existing Operations
3% ‐ 5%
Growth
• Acquisitions
• Growth CAPEX
16 | © BALL CORPORATION | BALL.COM
5% ‐ 7%
Disciplined Approach
Appendix:
Industry Data
Corporation
| 10 Longs
Peak Drive | Broomfield, Colorado 80021 | 303-469-3131 | www.ball.com
17© |Ball
© BALL
CORPORATION
| BALL.COM
Global Beverage Industry Position* Overview
2012
N.A. Industry Position (ex-Mexico)
95.7 Billion Units
Ball
41%
2012
China Industry Position
19.4 Billion Units
Rexam
21%
Ball
28%
Cofco
8%
Crown
15%
MCC
14%
Toyo
Seikan 2%
Great
China 8%
Other 7%
RMMC
5%
Crown
19%
Baoyi
13%
2012
European Beverage Can Industry
53.9 Billion Units *excludes Russia
Ball
32%
Pacific
Can
19%
2012
Brazilian Industry Position
20.2 Billion Units *aluminum only
Rexam
39%
Rexam
54%
Crown
26%
Crown
20%
LatapackBall
20%
Can-Pack
9%
18 | © BALL CORPORATION | BALL.COM
*Management estimates for 2012
Global Industry Trends – Metal Beverage Cans
Europe
+3%
North America Flat
(12‐oz. down;
specialty up)
China
+10‐15%
Brazil
+7‐8%
19 | © BALL CORPORATION | BALL.COM
Global Food & Household Products Packaging
Industry Position* Overview
2012
U.S. Steel Food Industry Position
26.8 Billion Units
Ball
17%
Other
10%
2012
U.S. Steel Aerosol Industry Position
2.9 Billion Units
Ball
39%
Silgan
50%
Ardagh
7%
Other
5%
BWAY
14%
Crown
16%
2012
European Extruded Aluminum Industry
3.4 Billion Units
Ball
21%
DS
Container
17%
2012
Monobloc Aluminum Slugs
North America
65,900 Metric Tons
Ardagh
18%
Ball
87%
Tubex
12%
Other
49%
20 | © BALL CORPORATION | BALL.COM
Crown
25%
*Management estimates for 2012
Others
13%
Global Industry Trends – Metal Food & Household
North America
Steel Aerosol & Food
Flat
Latin America
Steel & Extruded Aluminum Aerosol
+4‐6%
21 | © BALL CORPORATION | BALL.COM
Europe
Extruded Aluminum Aerosol
+4‐6%