1.4.4.4.3 YE 2014 Earnings Call Summary
YE 2014
Earnings Conference Call March 11, 2015
CONFIDENTIAL
Forward-Looking Statements This presentation may include certain forward-looking statements, including but not limited to expected financial results and other planned events. Any such statements reflect various estimates and assumptions concerning anticipated results, and are subject to the risks and uncertainties discussed in detail in our securities offering documents. Whether any such results are, in fact, achieved will depend upon future events, some or all of which are not within our control. Accordingly, actual results may vary from the projected results and such variations may be material. Forward-looking statements speak only as of the date the statements are made. We specifically disclaim any obligation to update forwardlooking statements or projections to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect thereto or with respect to other forwardlooking statements. In addition, please note that this presentation will reference non-GAAP financial measures such as Adjusted EBITDA and operational growth. Additional information concerning Adjusted EBITDA, including a reconciliation of it to Net Income or Loss, is contained in the financial statements to which this presentation relates. Rates of growth expressed on an operational basis exclude the impact of foreign currency fluctuations over the relevant period. 2
CONFIDENTIAL
Full Year 2014 Financial Highlights • Revenue growth • Revenue of $1,065 million – above $1 billion mark for the first time and improvement of 11% over 2013 • 7% organic growth plus 4% from Bend/Encap • Alternate polymer growth continuing to lead the way – 25% ahead of prior year • Profitability • Adjusted EBITDA of $340 million – 13% growth over 2013 • Improved Adjusted EBITDA margin to 32% driven by value-creation initiatives • Cash flow • Produced free cash flow from operations of $247 million • Prepaid $69 million of term debt to reduce USD loan to $756 million at yearend • Retired €325 million unsecured notes and replaced with €355 million secured term debt to reduce cash interest 3
CONFIDENTIAL
4th Quarter 2014 Financial Results Sales
Adjusted EBITDA
$ Millions
$ Millions
$300 $225
$100 $261
$268
$75
$150
$79
$50 30.4%
$75
$25
$0
$0 2013
4
2014
2013
YOY % Growth
Sales
Adj. EBITDA
Reported
3%
6%
Operational
8%
11%
CONFIDENTIAL
$84 31.2%
2014
Full Year 2014 Financial Results Sales
Adjusted EBITDA
$ Millions
$ Millions
$1,200 $900
$400 $960
$1,065
$300
$600
$340
$300
$200 30.4%
$300
$100
$0
$0 2013
5
2014
2013
YOY % Growth
Sales
Adj. EBITDA
Reported
11%
13%
Operational
12%
15%
CONFIDENTIAL
31.2%
2014
2014 Sales by Region 4th Quarter YOY % Growth Reported
Full Year YOY % Growth Operational
YOY % Growth Reported
$ Millions
$ Millions Total
Total
Organic
Total*
Organic
Total*
$105
(5%)
4%
EMEA
$442
9%
10%
9%
10%
$106
6%
8%
Americas
$423
6%
16%
8%
18%
$57
13%
19%
Asia
$200
$268
3%
8%
TOTAL
$1,065
___________________________ Note: * Total revenue growth includes the impact of the Encap (EMEA) and Bend Research (Americas) acquisitions.
6
YOY % Growth Operational
CONFIDENTIAL
3%
7%
8%
11%
8%
12%
Free Cash Flow from Operations
Q4 2014
FY 2014
Adjusted EBITDA
$84
$340
Less: Capital Expenditures
(31)
(89)
+/-: Changes in Assets and Liabilities*
(1)
(4)
Free Cash Flow from Operations
$52
$247
($ Millions)
___________________________ Note: * Exclusive of interest, taxes and non-operational items.
7
CONFIDENTIAL
Debt Structure, Credit Metrics and Liquidity ($ Millions)
Dec 31, 2013
Aug 1, 2011*
HoldCo
OpCo
$920
$825
$825
466
449
19
Debt
HoldCo
OpCo
Term Loans
$1,187
$1,187
449
Euro Notes**
-
-
16
16
Foreign Debt
14
14
3
3
3
Capital Leases
2
2
-
465
-
PIK Notes
887
-
$1,408
$1,758
$1,293
Total Debt
$2,090
$1,203
4
84
84
Cash
74
72
$1,404
$1,674
$1,209
Net Debt
$2,016
$1,131
4.2x
2.5x
2.5x
Net Sr. Sec. / Adj. EBITDA
3.3x
3.3x
6.5x
5.5x
4.0x
Net Debt / Adj. EBITDA
5.9x
3.3x
$153
$233
$233
Liquidity (inc. RC capacity)
$248
$246
___________________________ Note: * Metrics based on LTM Adjusted EBITDA of $217 million. ** Period-over-period change due to FX translation.
8
Dec 31, 2014
CONFIDENTIAL
Earnings Conference Call March 11, 2015
CONFIDENTIAL
Forward-Looking Statements This presentation may include certain forward-looking statements, including but not limited to expected financial results and other planned events. Any such statements reflect various estimates and assumptions concerning anticipated results, and are subject to the risks and uncertainties discussed in detail in our securities offering documents. Whether any such results are, in fact, achieved will depend upon future events, some or all of which are not within our control. Accordingly, actual results may vary from the projected results and such variations may be material. Forward-looking statements speak only as of the date the statements are made. We specifically disclaim any obligation to update forwardlooking statements or projections to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect thereto or with respect to other forwardlooking statements. In addition, please note that this presentation will reference non-GAAP financial measures such as Adjusted EBITDA and operational growth. Additional information concerning Adjusted EBITDA, including a reconciliation of it to Net Income or Loss, is contained in the financial statements to which this presentation relates. Rates of growth expressed on an operational basis exclude the impact of foreign currency fluctuations over the relevant period. 2
CONFIDENTIAL
Full Year 2014 Financial Highlights • Revenue growth • Revenue of $1,065 million – above $1 billion mark for the first time and improvement of 11% over 2013 • 7% organic growth plus 4% from Bend/Encap • Alternate polymer growth continuing to lead the way – 25% ahead of prior year • Profitability • Adjusted EBITDA of $340 million – 13% growth over 2013 • Improved Adjusted EBITDA margin to 32% driven by value-creation initiatives • Cash flow • Produced free cash flow from operations of $247 million • Prepaid $69 million of term debt to reduce USD loan to $756 million at yearend • Retired €325 million unsecured notes and replaced with €355 million secured term debt to reduce cash interest 3
CONFIDENTIAL
4th Quarter 2014 Financial Results Sales
Adjusted EBITDA
$ Millions
$ Millions
$300 $225
$100 $261
$268
$75
$150
$79
$50 30.4%
$75
$25
$0
$0 2013
4
2014
2013
YOY % Growth
Sales
Adj. EBITDA
Reported
3%
6%
Operational
8%
11%
CONFIDENTIAL
$84 31.2%
2014
Full Year 2014 Financial Results Sales
Adjusted EBITDA
$ Millions
$ Millions
$1,200 $900
$400 $960
$1,065
$300
$600
$340
$300
$200 30.4%
$300
$100
$0
$0 2013
5
2014
2013
YOY % Growth
Sales
Adj. EBITDA
Reported
11%
13%
Operational
12%
15%
CONFIDENTIAL
31.2%
2014
2014 Sales by Region 4th Quarter YOY % Growth Reported
Full Year YOY % Growth Operational
YOY % Growth Reported
$ Millions
$ Millions Total
Total
Organic
Total*
Organic
Total*
$105
(5%)
4%
EMEA
$442
9%
10%
9%
10%
$106
6%
8%
Americas
$423
6%
16%
8%
18%
$57
13%
19%
Asia
$200
$268
3%
8%
TOTAL
$1,065
___________________________ Note: * Total revenue growth includes the impact of the Encap (EMEA) and Bend Research (Americas) acquisitions.
6
YOY % Growth Operational
CONFIDENTIAL
3%
7%
8%
11%
8%
12%
Free Cash Flow from Operations
Q4 2014
FY 2014
Adjusted EBITDA
$84
$340
Less: Capital Expenditures
(31)
(89)
+/-: Changes in Assets and Liabilities*
(1)
(4)
Free Cash Flow from Operations
$52
$247
($ Millions)
___________________________ Note: * Exclusive of interest, taxes and non-operational items.
7
CONFIDENTIAL
Debt Structure, Credit Metrics and Liquidity ($ Millions)
Dec 31, 2013
Aug 1, 2011*
HoldCo
OpCo
$920
$825
$825
466
449
19
Debt
HoldCo
OpCo
Term Loans
$1,187
$1,187
449
Euro Notes**
-
-
16
16
Foreign Debt
14
14
3
3
3
Capital Leases
2
2
-
465
-
PIK Notes
887
-
$1,408
$1,758
$1,293
Total Debt
$2,090
$1,203
4
84
84
Cash
74
72
$1,404
$1,674
$1,209
Net Debt
$2,016
$1,131
4.2x
2.5x
2.5x
Net Sr. Sec. / Adj. EBITDA
3.3x
3.3x
6.5x
5.5x
4.0x
Net Debt / Adj. EBITDA
5.9x
3.3x
$153
$233
$233
Liquidity (inc. RC capacity)
$248
$246
___________________________ Note: * Metrics based on LTM Adjusted EBITDA of $217 million. ** Period-over-period change due to FX translation.
8
Dec 31, 2014
CONFIDENTIAL
