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Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
Sonoco 2Q 2012 Results Presentation
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Sonoco 2Q 2012 Results Presentation

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  • 1. Sonoco Second Quarter 2012 ResultsJuly 19, 2012 1
  • 2. Forward-Looking StatementsToday’s presentation contains a number of forward-looking statements based on current expectations, estimates andprojections. These statements are not guarantees of future performance and are subject to certain risks and uncertainties.Therefore, actual results may differ materially.Information about the Company’s use of non-GAAP financial measures, why management believes presentation of non-GAAPfinancial measures provides useful information to investors about the Company’s financial condition and results of operations,and the purposes for which management uses non-GAAP financial measures is included in the Company’s Annual Reportand on the Company’s website at sonoco.com.Pursuant to the requirements of Regulation G, the Company has provided definitions of the non-GAAP measures discussedduring this presentation as well as reconciliations of those measures to the most closely related GAAP measure on itswebsite at sonoco.com.This presentation does not constitute the solicitation of the purchase or sale of any securities. 2
  • 3. EPS Summary2nd Quarter: 2012 Vs. 2011 2nd Quarter 2012 2011 Actual EPS $0.50 $0.52 Addback for: Restructuring & Asset Impair 0.08 0.07 Acq Related & Other Adjustments - 0.01 Base EPS $0.58 $0.60 Sonoco Guidance $0.55 to $0.60 First Call Consensus $0.58 3
  • 4. P&L Summary (Base)2nd Quarter: 2012 Vs. 2011(Dollars in thousands) Better / (Worse) 2012 2011 $ %Net sales $ 1,202,359 $ 1,127,865 $ 74,494 6.6%Cost of sales (985,817) (936,775) (49,042) -5.2% Gross profit 216,542 191,090 25,452 13.3%SG&A and other expense, net (118,456) (98,282) (20,174) -20.5% Income before interest and taxes 98,086 92,808 5,278 5.7%Net interest (15,248) (8,174) (7,074) -86.5% Income before income taxes 82,838 84,634 (1,796) -2.1%Provision for income taxes (27,130) (26,998) (132) -0.5% Income before equity in earnings of affiliates 55,708 57,636 (1,928) -3.3%Equity in earnings of affiliates, net of tax 3,934 3,416 518 15.2% Net income 59,642 61,052 (1,410) -2.3%Noncontrolling interests 15 (271) (256) 94.5% Net income attributable to Sonoco $ 59,657 $ 60,781 $ (1,124) -1.8%EPS diluted $ 0.58 $ 0.60 $ (0.02) -3.3% 4
  • 5. Sales Bridge2nd Quarter: 2012 Vs. 2011(Dollars in thousands) Q2 - 2012 YTD 2012 2011 Sales $1,127,865 $2,245,188 Volume / Mix (12,752) (23,807) Price 2,748 9,437 Acquisition 123,706 238,470 Exchange / Other (39,208) (54,559) 2012 Sales $1,202,359 $2,414,729 5
  • 6. Base EBIT Bridge2nd Quarter: 2012 vs. 2011(Dollars in thousands) Q2-2012 YTD 2012 2011 Base EBIT $92,808 $183,979 Volume / Mix (13,570) (29,491) Price / Matl, Energy, Frt Costs 16,259 24,551 Productivity 9,715 20,885 Acquisition 9,428 15,025 Other (12,595) (14,780) Pension (3,959) (7,852) 2012 Base EBIT $98,086 $192,317 6
  • 7. Segment Sales and EBIT ($MM’s) 2012 2011 2012 2011 2012 2011 2012 2011Sales $477 $491 Sales $475 $485 Sales $108 $126 Sales $142 $26Base EBIT $42.7 $40.2 Base EBIT $39.7 $40.4 Base EBIT $4.0 $8.7 Base EBIT $11.7 $3.5EBIT as % of Sales 9.0% 8.2% EBIT as % of Sales 8.3% 8.3% EBIT as % of Sales 3.7% 6.9% EBIT as % of Sales 8.2% 13.1% 2012 2011 Sales $1,202 $1,128 Base EBIT $98.1 $92.8 EBIT as % of Sales 8.2% 8.2% 7
  • 8. Earnings Guidance 1st Qtr 2nd Qtr 3rd Qtr Full Year (Actual) (Actual) 2011 $0.57 $0.60 $0.66 $2.29 Base EPS 2012 $0.52 $0.58 $0.62 – $0.66 $2.34 – $2.39 Base EPS 8
  • 9. Cash Flow2nd Quarter: 2012 Vs. 2011(Dollars in thousands) nd 2 Qtr YTD 2012 2011 2012 2011Cash from operations (See Note A) $ 42,929 $ 45,921 $ 144,401 $ 32,075Purchase of property, plant and equipment, net (54,864) (33,980) (102,034) (70,466)Cash Dividends (30,178) (28,908) (59,343) (56,985) "Free Cash Flow" $ (42,113) $ (16,967) $ (16,976) $ (95,376)Acquisitions - (10,395) (503) (10,395)Shares acquired, net of shares issued 1,276 5,623 2,545 (32,324)Change in debt 68,521 (31,593) 32,436 112,142Change in cash 19,905 (51,193) 20,482 (24,267)Note A: Cash from operations includes pensionand post retirement plan contributions of: $ (8,516) $ (12,346) $ (58,964) $ (110,482) 9
  • 10. Appendix 10
  • 11. OCC: Southeast Yellow Sheet2012 Vs. 2011 Vs. 2010(Price / Ton) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter J F M Avg A M J Avg J A S Avg O N D Avg2010 110 140 175 142 145 130 125 133 120 120 130 123 145 160 160 1552011 150 140 140 143 140 140 150 143 170 175 175 173 160 110 110 1272012 110 110 135 118 135 125 125 128 11
  • 12. Balance Sheet(Dollars in thousands) 07/01/12 04/01/12 Change $ Cash and cash equivalents $ 196,005 $ 176,100 $ 19,905 Trade accounts receivable, net of allowances 647,203 664,429 (17,226) Other receivables 34,143 31,837 2,306 Inventories 407,425 411,422 (3,997) Prepaid expenses and deferred income taxes 78,853 66,593 12,260 Current Assets 1,363,629 1,350,381 13,248 Property, plant and equipment, net 1,017,705 1,027,625 (9,920) Goodwill 1,105,037 1,110,504 (5,467) Other intangible assets, net 289,625 297,179 (7,554) Other assets 248,920 246,736 2,184 Total Assets $ 4,024,916 $ 4,032,425 $ (7,509) Payable to suppliers and others $ 788,667 $ 829,962 $ (41,295) Accrued taxes 5,372 14,860 (9,488) Total debt 1,318,951 1,251,897 67,054 Pension and other postretirement benefits 374,654 382,496 (7,842) Deferred income taxes and other 71,677 73,610 (1,933) Total equity 1,465,595 1,479,600 (14,005) Total Liabilities and Shareholders Equity $ 4,024,916 $ 4,032,425 $ (7,509) Total debt/Total capital 47.4% 45.8% 12
  • 13. Base Results2nd Quarter: 2012 Vs. 2011 Vs. 2010 Net Sales $MM Gross Profit % S&A /OIC %$1,400 21.0% 12.0%$1,200 20.0% 11.0%$1,000 19.0% 10.0% $800 18.0% $600 9.0% 17.0% $400 8.0% 16.0% $200 $0 15.0% 7.0% 1Q 2Q 3Q 4Q Total 2Q- 3Q- 4Q- 1Q- 2Q- 3Q- 4Q- 1Q- 2Q- 2Q- 3Q- 4Q- 1Q- 2Q- 3Q- 4Q- 1Q- 2Q- 10 10 10 11 11 11 11 12 12 10 10 10 11 11 11 11 12 12 2010 $935.1 $1,010.1 $1,051.7 $1,127.1 $4,124.1 Hist 19.1%19.0%17.7%17.4%16.9%16.6%16.4%17.9%18.0% Hist 9.9% 9.6% 9.5% 9.2% 8.7% 7.8% 8.9% 10.1% 9.9% 2011 $1,117.3 $1,127.9 $1,124.2 $1,129.6 $4,498.9 Vs PY 16.9%16.6%16.4%17.9%18.0% Vs PY 8.7% 7.8% 8.9% 10.1% 9.9% 2012 $1,212.4 $1,202.4 Base EBIT % Tax Rate % Base EPS $ $0.70 11.0% 45.0% $0.60 10.0% 40.0% $0.50 9.0% $0.40 8.0% 35.0% $0.30 7.0% $0.20 30.0% 6.0% $0.10 5.0% 25.0% $0.00 2Q- 3Q- 4Q- 1Q- 2Q- 3Q- 4Q- 1Q- 2Q- 2Q- 3Q- 4Q- 1Q- 2Q- 3Q- 4Q- 1Q- 2Q- 1Q 2Q 3Q 4Q Total 10 10 10 11 11 11 11 12 12 10 10 10 11 11 11 11 12 12 2010 $0.50 $0.59 $0.65 $0.59 $2.34 Hist 9.2% 9.4% 8.2% 8.2% 8.2% 8.8% 7.4% 7.8% 8.2% Hist 31.8%29.6%31.6%31.2%31.9%29.1%39.0%33.7%32.8% 2011 $0.57 $0.60 $0.66 $0.46 $2.29 Vs PY 8.2% 8.8% 7.4% 7.8% 8.2% Vs PY 31.9%29.1%39.0%33.7%32.8% 2012 $0.52 $0.58 13

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