艾利丹尼森 (AVY) 2012 Q4 法說會逐字稿

Welcome to Avery Dennison's earnings conference call for the fourth quarter and fiscal year ended December 29, 2012. This call is being recorded and will be available for replay from 1 pm Pacific Time today through midnight Pacific Time February 1. To access the replay, please dial 1-800-633-8284 or for international callers, please dial 1-402-977-9140. The conference ID number is 21610811. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session.

歡迎參加艾利丹尼森截至 2012 年 12 月 29 日的第四季和財年財報電話會議。本次通話正在錄音，並可在太平洋時間今天下午 1 點至太平洋時間 2 月 1 日午夜重播。若要觀看重播，請撥打 1-800-633-8284，國際電話請撥打 1-402-977 -9140 。會議ID號為21610811。在演示期間，所有參與者將處於僅聽模式。隨後，我們將進行問答環節。

(Operator Instructions)

（操作員說明）

I would now like to turn the call over to Eric Leeds, Avery Dennison's Head of Investor Relations. You may begin, sir.

我現在想將電話轉給艾利丹尼森投資者關係主管 Eric Leeds。您可以開始了，先生。

Thank you. Welcome everyone.

謝謝。歡迎大家。

Today we'll discuss our preliminary unaudited fourth quarter and full year 2012 results. Please note that unless otherwise indicated, today's discussion will be focused on our continuing operations. The Company's Office and Consumer Products business is classified on our income statement as a discontinued operation.

今天我們將討論 2012 年第四季和全年未經審計的初步業績。請注意，除非另有說明，今天的討論將集中於我們的持續營運。該公司的辦公室和消費品業務在我們的損益表中被歸類為已終止經營業務。

Please also note that unless otherwise indicated, prior period amounts referenced in today's earnings release, supplemental materials, and on this teleconference call have been realigned to reflect the Company's new operating structure, including our new corporate expense allocation method. Within our new operating structure, the Company's Performance Tapes business is now reported as part of the Pressure Sensitive Materials segment, RFID is now entirely within Retail Branding and Information Solutions, Design and Engineered Solutions or DES, which is contracted to be sold to CCL Industries, is included in results of continuing operations and the Company's 2013 guidance.

另請注意，除非另有說明，今天的收益發布、補充資料和本次電話會議中引用的前期金額已進行重新調整，以反映公司新的營運結構，包括我們新的公司費用分配方法。在我們新的營運結構中，公司的高性能膠帶業務現在被列為壓敏材料部門的一部分，RFID 現在完全屬於零售品牌和資訊解決方案、設計和工程解決方案或DES，並已簽約出售給CCL Industries ，已納入持續經營績效及公司 2013 年指引中。

DES will be reported as a discontinued operation in the Company's first quarter 2013 report. Office and Consumer Products, also contracted to be sold to CCL Industries, remains reported in the Company's discontinued operations.

DES 將在公司 2013 年第一季報告中被列為已終止業務。辦公室和消費品（也簽訂了銷售給 CCL Industries 的合約）仍包含在該公司的已終止經營業務中。

The non-GAAP financial measures that we use are defined, qualified, and reconciled with GAAP in Schedules A2-A5 of the financial statements accompanying today's earnings release. We remind you that we'll make certain predictive statements that reflect our current views and estimates about our future performance and financial results. These forward-looking statements are made subject to the safe harbor statement included in today's earnings release. On the call today are Dean Scarborough, Chairman, President,and CEO, and Mitch Butier, Senior Vice President and CFO.

我們使用的非 GAAP 財務指標已在今天的收益發布所附的財務報表附表 A2-A5 中定義、限定並與 GAAP 進行了協調。我們提醒您，我們將做出某些預測性陳述，以反映我們對未來業績和財務表現的當前看法和估計。這些前瞻性陳述是根據今天的收益發布中包含的安全港聲明做出的。今天參加電話會議的有董事長、總裁兼執行長 Dean Scarborough 和高級副總裁兼財務長 Mitch Butier。

I'll now turn the call over to Dean.

我現在將電話轉給 Dean。

Thanks, Eric.

謝謝，埃里克。

I'm pleased to start with the news that we've agreed to sell two businesses, Office and Consumer Products and Designed and Engineered Solutions, to CCL Industries. As we mentioned last October, we received expressions of interest in Office and Consumer Products as soon as we terminated the agreement with 3M.

我很高興首先得知我們已同意向 CCL Industries 出售辦公室和消費品以及設計和工程解決方案這兩項業務。正如我們去年 10 月所提到的，我們一終止與 3M 的協議就收到了對辦公室和消費產品的興趣表達。

CCL was one of the interested parties and wanted to buy both businesses. We're pleased we were able to reach an agreement that is positive for both companies. I won't go through all of the details in the press release, but I do want to note that the purchase price is $500 million and the expected net proceeds are approximately $400 million. We'll use the proceeds primarily for share repurchases and an additional pension contribution.

CCL 是感興趣的各方之一，想要收購這兩項業務。我們很高興能夠達成一項對兩家公司都有利的協議。我不會在新聞稿中詳細介紹所有細節，但我確實想指出，收購價格為 5 億美元，預計淨收益約為 4 億美元。我們將主要將所得款項用於股票回購和額外的退休金繳款。

CCL is an important partner for us and our materials business. The deal includes a five-year supply agreement with CCL which is an important part of the value to us going forward. We believe it's an excellent deal for both companies and for Avery Dennison shareholders. We expect to complete the transaction mid-year once we get regulatory approvals and satisfy the usual closing conditions. The sale will be a significant step toward focusing the Company on two core businesses to drive higher growth rates and returns.

CCL 是我們和我們材料業務的重要合作夥伴。該交易包括與 CCL 簽訂的為期五年的供應協議，這是我們未來價值的重要組成部分。我們相信這對兩家公司和艾利丹尼森股東來說都是一筆極好的交易。一旦獲得監管部門批准並滿足通常的成交條件，我們預計將在年中完成交易。此次出售將是公司專注於兩項核心業務以推動更高成長率和回報的重要一步。

Now we'll talk about the financial results for the quarter and full year. We delivered a strong earnings improvement on solid sales growth in 2012. We also delivered strong free cash flow and returned $346 million to shareholders through an increased dividend and share repurchases which totaled 7% of our outstanding shares.

現在我們將討論本季和全年的財務表現。2012 年，我們憑藉穩健的銷售成長實現了強勁的獲利改善。我們還提供了強勁的自由現金流，並透過增加股息和股票回購（占我們已發行股票的 7%）向股東返還 3.46 億美元。

A significant accomplishment in 2012 was the refocusing of the Company through our restructuring initiative. This program will enhance our competitive position and strengthen our ability to increase returns even in a soft economic environment. This program has involved every business.

2012 年的一項重大成就是透過重組舉措重新調整了公司的重點。該計劃將增強我們的競爭地位，並增強我們即使在疲軟的經濟環境下也能增加回報的能力。這個計劃涉及了各行各業。

As you know, we combined RFID inlay manufacturing with Retail Branding and Information Solutions. We integrated Graphics and Reflective Solutions into Label and Packaging Materials. We also moved our Performance Tapes business into Materials as it shares some operating processes and systems with Labeling and Packaging Materials. We moved corporate R&D into the businesses to bring innovators closer to the customers they serve and we ended investment in several small non-core growth platforms. We continue to execute against our long term strategy for the reduction of RBIS's footprint and overall cost structure.

如您所知，我們將 RFID 嵌體製造與零售品牌和資訊解決方案結合。我們將圖形和反光解決方案整合到標籤和包裝材料中。我們還將高性能膠帶業務轉移到材料領域，因為它與標籤和包裝材料共享一些作業流程和系統。我們將企業研發轉移到業務中，以使創新者更接近他們所服務的客戶，並結束了對幾個小型非核心成長平台的投資。我們持續執行減少 RBIS 足跡和整體成本結構的長期策略。

Finally, we changed the relationship between the corporate center and the businesses and streamlined the corporate organization. We have moved resources and support functions into the businesses and reduced activities at the center. We've realigned our segments to reflect this new operating structure. We've also adopted a new methodology for allocating corporate expense that reflects this new structure. We are on track not only to achieve more than $100 million of annualized savings but also to accelerate decision-making and to operate more effectively.

最後，我們改變了企業中心與業務的關係，精簡了企業組織。我們已將資源和支援職能轉移到業務部門，並減少了中心的活動。我們重新調整了我們的部門以反映這種新的營運結構。我們也採用了反映這種新結構的新方法來分配公司費用。我們不僅有望實現每年超過 1 億美元的節省，而且還將加快決策速度並提高營運效率。

Now for the businesses. Pressure Sensitive Materials had solid sales growth for the year and expanded margins. Label and Packaging Materials strengthened its leadership position in all regions delivering solid sales growth in North America throughout 2012 and double digit growth in emerging markets after a weak first quarter. Despite a challenging economy in Europe, we achieved a modest increase in sales there, as well. LPM also exceeded its target for sales of new products and launched another 14 innovations at Label Expo this past fall.

現在對於企業來說。壓敏材料今年的銷售成長強勁，利潤率擴大。標籤和包裝材料鞏固了其在所有地區的領導地位，在整個2012 年北美地區的銷售額實現了穩健增長，在經歷了第一季的疲軟之後，新興市場的銷售額實現了兩位數的增長。儘管歐洲經濟充滿挑戰，我們在那裡的銷售額也實現了小幅成長。LPM 也超額完成了新產品的銷售目標，並在去年秋天的標籤博覽會上推出了另外 14 項創新產品。

Combined sales of Graphics and Reflective products were up slightly over 2011. We saw strong results in reflectives globally. While sales for graphics declined in Europe, not surprising for this more economically sensitive product line, we did experience solid growth for these products in both North America and Asia, and we're already seeing savings from the integration of these businesses into LPM.

圖形和反光產品的綜合銷售額比 2011 年略有成長。我們在全球範圍內看到了反射的強勁成果。雖然圖形銷售額在歐洲下降，對於這個對經濟更加敏感的產品線來說並不奇怪，但我們在北美和亞洲確實經歷了這些產品的穩健增長，而且我們已經看到將這些業務整合到LPM 中可以節省成本。

I want to highlight Label and Packaging Materials' excellent operating performance. The team continued to drive down production costs and improve quality and productivity. They increased working capital efficiency for the fourth year in a row, and ended 2012 with record high inventory turns. Their efficiency and productivity were key drivers in maintaining LPM's high returns.

我想強調標籤和包裝材料的優異營運績效。該團隊繼續降低生產成本並提高品質和生產力。他們連續第四年提高了營運資金效率，並在 2012 年結束時創下了創紀錄的庫存週轉率。他們的效率和生產力是維持 LPM 高回報的關鍵驅動力。

Retail Branding and Information Solutions ended the year with two strong quarters that offset a difficult first half. Organic net sales growth in the fourth quarter was 10% which helped bring full-year growth up to 3%. The growth in the second half was driven by improved market conditions, share gains in the core business, and terrific growth in RFID and Exterior Embellishments, the two most important growth programs at RBIS. The team did an outstanding job with RFID in 2012, increasing sales by more than 60%.

零售品牌和資訊解決方案以兩個強勁的季度結束了今年，抵消了上半年的困難。第四季有機淨銷售額成長 10%，帶動全年成長達 3%。下半年的成長是由市場狀況改善、核心業務份額成長以及 RFID 和外部裝飾（RBIS 兩個最重要的成長計劃）的驚人成長所推動的。2012 年，該團隊在 RFID 方面表現出色，銷售額成長了 60% 以上。

Integrating RFID Inlay Manufacturing into RBIS enabled the business to meet a substantial increase in demand and generated a significant profit improvement. The RFID business is solidly profitable now. We ended 2012 with an annual run rate for RFID sales above $100 million and we expect to see continued growth and demand during 2013.

將 RFID 嵌體製造整合到 RBIS 中，使該業務能夠滿足大幅成長的需求，並顯著提高利潤。RFID 業務目前已實現穩定獲利。2012 年底，我們的 RFID 銷售額年增率超過 1 億美元，我們預計 2013 年將持續成長，需求也將持續成長。

RBIS expanded its adjusted operating margin for the year by 120 basis points to 5.2%, which is still below our target range of 8.5% to 9.5%. We expect to make additional progress in 2013 as we lower fixed costs by reducing the manufacturing footprint and continuing to drive share gain through innovation, speed of service, and quality.

RBIS 將今年調整後的營業利潤率擴大了 120 個基點至 5.2%，仍低於我們 8.5% 至 9.5% 的目標範圍。我們預計 2013 年將取得更多進展，因為我們透過減少製造足跡來降低固定成本，並繼續透過創新、服務速度和品質來推動份額成長。

Now for the outlook. Our guidance for 2013 continues to reflect caution about the top line. We were encouraged by our sales growth in the back half of 2012, but given the mixed economic environment and the short lead times we work with, we're not sure how far this second half momentum will carry over. But even with modest sales growth, we expect 15% to 35% earnings growth in 2013, as well as strong free cash flow and we remain committed to returning most of that cash to shareholders.

現在展望一下。我們對 2013 年的指導繼續反映出對營收的謹慎態度。我們對 2012 年下半年的銷售成長感到鼓舞，但考慮到複雜的經濟環境和較短的交貨時間，我們不確定下半年的勢頭能持續多久。但即使銷售成長溫和，我們預計 2013 年獲利將成長 15% 至 35%，自由現金流強勁，我們仍致力於將大部分現金返還給股東。

Thanks, and now I'll hand it over to Mitch.

謝謝，現在我將把它交給米奇。

Thanks, Dean.

謝謝，迪恩。

As you can see, we had a solid year with adjusted earnings per share growth of 20%, reflecting strong performance in Pressure Sensitive Materials, solid progress in RBIS, the early results of our restructuring program, and accretion from share repurchases. For the year, we delivered organic sales growth of 4%, adjusted EPS of $2.08, and free cash flow from continuing operations of $312 million. All in line with our long term target and at the upper end of the guidance that we set at the beginning of the year.

正如您所看到的，我們度過了堅實的一年，調整後每股收益增長了20%，這反映出壓敏材料的強勁表現、RBIS 的紮實進展、重組計劃的早期結果以及股票回購帶來的增值。今年，我們的有機銷售額成長了 4%，調整後每股收益為 2.08 美元，持續營運產生的自由現金流為 3.12 億美元。所有這些都符合我們的長期目標，並且處於我們年初設定的指導的上限。

With leverage in our targeted range and with our consistently strong free cash flow, we continue to deliver on our commitment to return cash to shareholders. In fact, we returned nearly all of our free cash flow to shareholders in 2012 through both dividends and the repurchase of 7.9 million shares, or as Dean mentioned, about 7% of our outstanding shares.

憑藉我們目標範圍內的槓桿率和持續強勁的自由現金流，我們將繼續履行向股東返還現金的承諾。事實上，我們在 2012 年透過股息和回購 790 萬股（或如 Dean 所提到的，約占我們流通股的 7%）將幾乎所有自由現金流返還給了股東。

In the fourth quarter, we delivered strong results with adjusted EPS of $0.54 and organic sales growth of approximately 7%. Sales came in stronger than expected with the vast majority of the quarter's growth coming in November and December. A shift in the timing of our fiscal year-end also added about a point of growth in the quarter. Adjusted operating margin in the quarter grew 170 basis points as the benefit of higher volume and productivity initiatives more than offset higher employee related expenses and the impact of changes in product mix, specifically in PSM. The net impact of raw material input costs and pricing continued to be neutral in the quarter.

第四季度，我們取得了強勁的業績，調整後每股收益為 0.54 美元，有機銷售額成長約 7%。銷售額強於預期，該季度的成長大部分來自 11 月和 12 月。我們財政年度結束時間的改變也為本季增加了一個成長點。本季調整後的營業利潤率成長了 170 個基點，因為產量和生產力計畫的提高所帶來的好處遠遠抵消了員工相關費用的增加以及產品組合（特別是 PSM）變化的影響。本季原物料投入成本和定價的淨影響持續保持中性。

Now we've been talking about our cost reduction program that will structurally reduce our overhead cost and save more than $100 million annually. We're on track and continue to expect to achieve our savings target by the middle of this year. These actions will increase our ability to deliver our targeted earnings growth regardless of market conditions. The actions we've taken which include consolidation of operations and streamlining of the corporate center are reflected in the adjustments we've made to segment and corporate expense reporting.

現在我們一直在談論我們的成本削減計劃，該計劃將從結構上降低我們的管理成本，每年節省超過 1 億美元。我們正步入正軌，並繼續期望在今年年中實現我們的儲蓄目標。這些行動將提高我們實現目標收益成長的能力，無論市場狀況如何。我們採取的行動包括合併營運和精簡公司中心，這反映在我們對部門和公司費用報告所做的調整。

Operating executives are now directly accountable for externally reported segment results while gaining greater control over certain functional costs that had previously been controlled from the center. The net effect from a reporting perspective is higher corporate expense offset by a corresponding reduction in costs allocated to the segments. Know that this adjustment in allocation methodology has been reflected by an increase in our long term segment margin targets.

營運高管現在直接對外部報告的部門績效負責，同時更好地控制以前由中心控制的某些功能成本。從報告的角度來看，淨效應是公司費用的增加被分配給各部門的成本的相應減少所抵消。要知道，這種分配方法的調整已反映在我們長期分部利潤率目標的提高上。

Turning to the segments. Pressure Sensitive Material sales were up 6% on an organic basis in the fourth quarter primarily reflecting solid growth in North America and emerging markets. Label and Packaging Material sales grew mid single digits, with mid single digit growth in North America, low single digit growth in Western Europe, and low double digit growth in emerging markets. Combined sales for other product lines, that is Graphics, Reflective and Performance Tapes, were up mid single digits.

轉向細分市場。第四季壓敏材料銷售額有機成長 6%，主要反映北美和新興市場的穩健成長。標籤和包裝材料銷售額實現中個位數成長，其中北美實現中個位數成長，西歐實現低個位數成長，新興市場實現低個位數成長。其他產品線（即圖形膠帶、反光膠帶和高性能膠帶）的綜合銷售額增長了中個位數。

PSM's adjusted operating margin improved 100 basis points to 8.7% as a benefit of higher volume and productivity initiatives more than offset the impact of product mix and higher employee related expenses. Retail Branding and Information Solution sales grew 10% with about half of the growth coming from RFID and the remainder being driven primarily by strong growth at North American retailers and brands. Overall, we believe we continue to gain share in both the US and Europe.

PSM 調整後的營業利潤率提高了 100 個基點，達到 8.7%，這是由於產量和生產力提高計劃帶來的好處，足以抵消產品組合和員工相關費用增加的影響。零售品牌和資訊解決方案銷售額成長了 10%，其中約一半的成長來自 RFID，其餘部分主要由北美零售商和品牌的強勁成長推動。總體而言，我們相信我們在美國和歐洲的份額將繼續增加。

Sales of RFID products more than doubled in the fourth quarter and grew about 60% for the full year, a pace that is expected to moderate somewhat as a major retailer recently decided to slow the pace of their RFID adoption. RBIS's adjusted operating margin improved 270 basis points to 6.2% as the benefit of higher volume and productivity initiatives more than offset higher employee-related expenses. Sales in our other specialty converting businesses grew 15% with DES being the primary driver and adjusted operating margin improved by more than 12 points to 6.4% due primarily to the higher volume.

RFID 產品的銷售額在第四季度增長了一倍多，全年增長約 60%，由於一家大型零售商最近決定放慢 RFID 的採用速度，預計這一增長速度會有所放緩。RBIS 調整後的營業利潤率提高了 270 個基點，達到 6.2%，因為產量和生產力提高計劃帶來的好處足以抵消員工相關費用的增加。我們其他特種加工業務的銷售額成長了 15%，其中 DES 是主要推動力，調整後的營業利潤率提高了 12 個百分點以上，達到 6.4%，這主要是由於銷量增加。

Now in May of last year, we established long term targets for the Company and the operating segments as shown on slides 12 and 13. These targets represent a balance of aspiration and pragmatism and we are committed to delivering them. As I said earlier, we achieved the targets for the Company in 2012.

去年 5 月，我們為公司和營運部門制定了長期目標，如投影片 12 和 13 所示。這些目標體現了願望與務實的平衡，我們致力於實現這些目標。正如我之前所說，我們實現了公司2012年的目標。

Moving on to the outlook for 2013. We expect adjusted 2013 earnings per share from continuing operations of $2.40 to $2.80 and free cash flow from continuing operations of $275 million to $325 million. This guidance is based on a number of assumptions including the key listed factors.

繼續展望 2013 年。我們預計 2013 年調整後持續經營業務每股收益為 2.40 美元至 2.80 美元，持續經營業務自由現金流為 2.75 億美元至 3.25 億美元。本指南基於許多假設，包括列出的關鍵因素。

To comment on a few. Our estimate for organic sales growth in 2013 is 1% to 4%. This reflects our business in the US being flat to up 2%, Western Europe flat to down 2%, and emerging markets up 5% to 7%. Obviously, the macro environment remains uncertain and we continue to have limited forward visibility.

來評論幾句。我們預計 2013 年有機銷售額將成長為 1% 至 4%。這反映出我們在美國的業務持平或成長 2%，西歐業務持平或下降 2%，新興市場成長 5% 至 7%。顯然，宏觀環境仍然不確定，我們的未來能見度仍然有限​​。

Based on recent exchange rates, currency translation is expected to have a modest benefit to reported sales growth and EBIT. We expect to realize an incremental pre-tax benefit of approximately $70 million from our restructuring program.

根據最近的匯率，貨幣換算預計將對報告的銷售成長和息稅前利潤產生適度的好處。我們預計重組計劃將帶來約 7,000 萬美元的增量稅前收益。

The minimum pension requirement for 2013 is $60 million. In addition to the required minimum, we anticipate using a portion of the net proceeds from the sale of OCP and DES to make an additional pension contribution. Any such additional pension contribution is excluded from our definition of free cash flow and therefore, not reflected in our guidance.

2013年的最低退休金要求為6000萬美元。除了所需的最低金額外，我們預計將使用出售 OCP 和 DES 的淨收益的一部分來繳納額外的退休金。任何此類額外的退休金繳款均被排除在我們對自由現金流的定義之外，因此未反映在我們的指導中。

Average fully diluted shares outstanding for 2013 are assumed to be approximately $100 million (sic). And it is important to note that our guidance includes the anticipated operating results of DES in continuing operations and excludes the effect on the share count of any share repurchases made with the net proceeds from the divestitures.

假設 2013 年平均已完全稀釋的已發行股票約為 1 億美元（原文如此）。值得注意的是，我們的指引包括 DES 在持續經營中的預期經營業績，並排除了利用剝離淨收益進行的任何股票回購對股數的影響。

So in summary, the fourth quarter represented a strong finish to a solid year in which we delivered full year organic growth of 4% and adjusted EPS growth of 20%. With the sale of OCP and DES, we've increased the focus of the Company. Our two core businesses are market leaders and are well positioned for profitable growth and increasing returns.

總而言之，第四季是堅實一年的有力收官，全年有機成長 4%，調整後每股盈餘成長 20%。隨著 OCP 和 DES 的出售，我們增加了公司的重點。我們的兩項核心業務都是市場領導者，並且處於獲利成長和回報遞增的有利位置。

Our cost reduction program to save more than $100 million is on track and positions us for strong earnings growth in 2013, and our continuing cost in capital discipline enable us to maintain our financial strength and return more cash to shareholders, all of which demonstrate our commitment to delivering on our long term targets including our expectation of adjusted EPS growth of 15% to 35% in 2013.

我們節省超過1 億美元的成本削減計劃已步入正軌，使我們能夠在2013 年實現強勁的盈利增長，而我們在資本紀律方面的持續成本使我們能夠保持財務實力並向股東返還更多現金，所有這些都證明了我們的承諾實現我們的長期目標，包括 2013 年調整後每股收益成長 15% 至 35% 的預期。

Now, we would be happy to take your questions.

現在，我們很樂意回答您的問題。

(Operator Instructions)

（操作員說明）

George Staphos, Banc of America Merrill Lynch.

喬治‧史塔福斯，美銀美林。

Good morning and congratulations on the year. First question I had to the extent that you have visibility into this, you're not the only company that we've talked with during earnings season thus far that said they saw a pick up in November and December. What are your customers, to the extent that they have the ability, relating this pick up to and then I had a couple follow-ons.

早上好，恭喜新的一年。我的第一個問題是，如果您對此有了解的話，您並不是我們在財報季迄今為止與之交談過的唯一一家表示他們在 11 月和 12 月看到增長的公司。你的客戶有哪些，只要他們有能力，將這項收購與我的後續行動連結起來。

Yes, George I'd start first with Retail Branding and Information Solutions. We had a very strong quarter and especially the back couple of months, and I attribute it to basically retailer confidence about the spring season as well. So a good market and as well as we were taking some market share as well as strong RFID rollout. All those were factors. It was nice to see frankly.

是的，喬治，我首先從零售品牌和資訊解決方案開始。我們有一個非常強勁的季度，尤其是後幾個月，我基本上將其歸因於零售商對春季的信心。這是一個良好的市場，我們正在佔據一些市場份額，並且大力推廣 RFID。所有這些都是因素。很高興坦率地看到。

And I think for Materials, fundamentally, the business grew about the same in the fourth quarter as it did in the third quarter overall it was very close. I don't sense there was anything abnormal about the fact that November and December were a little stronger. I really can't attribute it to anything specific.

我認為對於材料來說，從根本上來說，第四季度的業務成長與第三季的成長大致相同，總體上非常接近。我不覺得 11 月和 12 月稍微強一些，這有什麼異常。我真的無法將其歸因於任何特定的事情。

Okay but on RBIS, the implication would be that your customers are feeling a little bit better about consumer confidence and consumer's willingness to spend back in the upcoming spring time season, that's the conclusion?

好的，但就 RBIS 而言，這意味著您的客戶對消費者信心和消費者在即將到來的春季消費的意願感覺好一些，這就是結論嗎？

Definitely. Unit costs for apparel are down and so retailers buy on dollars, not necessarily units and obviously they do on both but so they're bringing in more units than they did last year.

確實。服裝的單位成本下降了，因此零售商以美元購買，不一定是單位購買，顯然他們兩者都購買，但因此他們引進的單位比去年更多。

Okay. You mentioned it so it's worth questioning, the retailer who was driving RFID or within their organization and then has now decided to decelerate some. To the extent you can comment for them which in this kind of forum what was behind that? And then I had a question on Vancive in terms of how you were going to manage that business on a going forward basis, whether it's core or not. Thanks.

好的。你提到了這一點，因此值得質疑的是，曾經在其組織內推動 RFID 的零售商現在決定放慢一些速度。您可以在某種程度上為他們發表評論，在這種論壇中，背後的原因是什麼？然後我問了一個關於 Vancive 的問題，即你將如何在未來的基礎上管理該業務，無論它是否是核心業務。謝謝。

Yes, so on the RFID business, actually this is fairly typical when we do retailer rollouts. Retailers will sample a few categories, will expand into new categories, sometimes they will eliminate the program in other categories. It really depends on what their expectations are. I'll just tell you from our own forecast for the year, some of this was anticipated and we still expect to have year-over-year growth in 2013 because we have a number of new programs that are scaling up so I wouldn't read much into that. It should be okay.

是的，對於 RFID 業務，實際上，當我們向零售商推出產品時，這是相當典型的。零售商會對幾個類別進行抽樣，會擴展到新的類別，有時他們會取消其他類別中的計劃。這實際上取決於他們的期望是什麼。我只是從我們自己對今年的預測中告訴您，其中一些是預料之中的，我們仍然預計 2013 年會出現同比增長，因為我們有許多新計劃正在擴大規模，所以我不會對此進行了大量閱讀。應該沒問題。

As far as Vancive Medical Technologies, fundamentally this is a carve-out of a business we've had in our Performance Tapes for a number of years. It's a medical wound care product category where we use a lot of our adhesive technology to -- in which we launched a lot of new products here so I would characterize this business as a very small growth platform at this point. It's under $100 million in sales.

就 Vancive Medical Technologies 而言，從根本上來說，這是我們多年來在高性能磁帶領域開展的一項業務的分拆。這是一個醫療傷口護理產品類別，我們使用了很多黏合劑技術，在這裡我們推出了許多新產品，所以我現在將這項業務描述為一個非常小的成長平台。它的銷售額不到 1 億美元。

We've been investing in the business, have a lot of new product launches that should start to come to fruition in 2013, so I would just say that it's a nice solid adjacency to our core materials businesses that we've carved out and are just managing a little bit differently.

我們一直在對該業務進行投資，推出了許多新產品，這些產品應該會在 2013 年開始取得成果，所以我只想說，它與我們已經開拓並正在發展的核心材料業務有著良好的緊密聯繫。只是管理方式有點不同。

Okay. Thanks, I'll turn it over.

好的。謝謝，我去翻一下。

Ghansham Panjabi, from Robert W. Baird.

Ghansham Panjabi，來自 Robert W. Baird。

Looking at the EPS range for 013, $2.40 to $2.80, is it just volumes that is the main variable between the low end and the high end? And how should we think about raw material inflation, particularly for the first quarter given the sequence of price increases in the resin complex?

看看 013 的每股盈餘範圍（2.40 美元至 2.80 美元），是否只有銷量才是低端和高端之間的主要變數？我們該如何看待原物料通膨，特別是考慮到樹脂複合體價格上漲的順序，第一季？

So as far as the range, volume is obviously a key factor in the move between $2.40 to $2.80 and also just what the trends are around within that long to break it down which categories we see the most growth in. As we've talked about the last two quarters, we've had higher than average growth in some lower margin categories and Pressure-Sensitive so it just depends on the product mix within next year as well.

因此，就範圍而言，成交量顯然是 2.40 美元至 2.80 美元之間走勢的關鍵因素，也是這段時間內的趨勢，以細分我們認為成長最快的類別。正如我們在過去兩個季度所討論的那樣，我們在一些利潤率較低的類別和壓力敏感類別中的成長高於平均水平，因此這也取決於明年的產品組合。

As far as the raw material costs, there's been some movement in a couple categories but overall relatively modest. We're working to manage it. We don't have any significant change as far as the net impact between price and raw material costs baked into our guidance for '13 versus '12.

就原材料成本而言，幾個類別出現了一些變動，但總體相對溫和。我們正在努力管理它。就價格和原材料成本之間的淨影響而言，我們沒有任何重大變化納入我們對「13」與「12」的指導。

Okay, and then Dean I think last quarter you mentioned some share gains in RBIS. Did that accelerate in 4Q or is it pretty steady in terms of the run rate and most of the improvement was just the improvement at the end market level?

好的，迪恩，我想上個季度您提到了 RBIS 的一些股票收益。這種情況在第四季度是否加速了，或者就運行率而言是否相當穩定，並且大部分改進只是終端市場層面的改進？

In the third quarter, I would say based on the data we had, I'm confident in saying we did have some share gain. We don't have all of the import data yet for Q4 so it's hard to really ascertain. I would say for sure it's a combination of better market growth as well as RFID. It's too early to say if our share gain accelerated in the quarter or not. I do think we took some share. It's hard to nail that down.

在第三季度，我想說，根據我們掌握的數據，我有信心說我們確實獲得了一些份額成長。我們還沒有第四季度的所有進口數據，因此很難真正確定。我可以肯定地說，這是更好的市場成長和 RFID 的結合。現在判斷本季我們的市佔率成長是否加速還為時過早。我確實認為我們取得了一些份額。很難確定這一點。

Okay. And then just one final one on the DES sales. So post-sale, you're already doing a pretty broad based cost reduction program. Is there more to do after the DES sale?

好的。然後是關於 DES 銷售的最後一項。因此，在售後，您已經在實施相當廣泛的成本降低計劃。DES 出售後還有更多事情要做嗎？

No, DES is a relatively small part of the business, so -- I never say no to is there other productivity that we could take, but there's nothing significant planned at this point.

不，DES 是業務中相對較小的一部分，所以——我從來沒有對我們可以採用的其他生產力說不，但目前還沒有任何重大計劃。

Okay, thank you.

好的謝謝。

Scott Gaffner, Barclays Capital.

斯科特·加夫納，巴克萊資本。

Congratulations on a good quarter.

恭喜您度過了一個美好的季度。

Thank you.

謝謝。

Just looking at the long-term operating margin targets, you mentioned you took those up a little bit due to the change in how you allocate corporate expense. I just would have thought especially with RBIS there might have been some impact for moving the RFID and light business into this segment maybe pushing the margins down a little bit. Is that the case? Is that the way we should think about that? And then on the PSM business, any impact from the move there?

只要看看長期營業利潤率目標，您就提到，由於分配公司費用的方式發生了變化，您將這些目標提高了一點。我只是想，尤其是 RBIS，將 RFID 和輕型業務轉移到這一領域可能會產生一些影響，可能會導致利潤率稍微下降。是這樣嗎？我們該這樣思考嗎？那麼對於 PSM 業務，此舉有何影響？

I'd say for RFID is now solidly profitable, so really no fundamental change in the margin target. It's still small also relative to the size of RBIS, and I make the same comment by moving Performance Tapes into Pressure-Sensitive Materials, that business operates at above the cost of capital. It's a good business, et cetera, so no major shifts.

我想說，RFID 現在已經實現了穩定獲利，因此利潤目標實際上沒有根本性變化。相對於 RBIS 的規模來說，它仍然很小，我透過將高性能膠帶轉移到壓敏材料來發表相同的評論，該業務的營運成本高於資本成本。這是一門很好的生意，等等，所以沒有重大轉變。

Okay. And as you rollout RFID to new customers, is there a significant equipment component of the sale process? Is that something you rely on outside partners for? How does that work into the outlook?

好的。當您向新客戶推出 RFID 時，銷售過程中是否存在重要的設備組成部分？這是您依賴外部合作夥伴的事情嗎？這對前景有何影響？

Yes, there is some equipment, but we're basically 90% consumables. It's all about the tags and the labels we sell, so it's relatively minor, Scott.

是的，有一些裝備，但我們基本上90%都是消耗品。這一切都與我們銷售的標籤和標籤有關，所以它相對較小，斯科特。

Okay, just lastly on returning capital to all your stakeholders. Has anything changed in the quarter around the desire to improve your debt rating outlook so that you're comfortably in high yield? I mean a high grade credit versus returning cash to shareholders?

好的，最後是向所有利害關係人返還資本。本季圍繞著改善債務評級前景以便輕鬆獲得高收益的願望是否發生了變化？我的意思是高等級信用與向股東返還現金？

Nothing's improved in the quarter as far as our overall intent and objectives. We said we want to have a strong balance sheet and good financial health and that's very consistent and continue to improve our ratios modestly over time. One thing when we talk about our financial ratios, we talk about simple net debt-to-EBITDA, obviously that's a proxy for our total leverage, which includes the pension and so when we divest these businesses the way we're going to de-lever is by topping up the pension.

就我們的整體意圖和目標而言，本季沒有任何改善。我們說過，我們希望擁有強勁的資產負債表和良好的財務狀況，這是非常一致的，隨著時間的推移，我們的比率將繼續適度改善。當我們談論我們的財務比率時，我們談論的是簡單的淨債務與EBITDA 之比，顯然這是我們總槓桿率的一個代表，其中包括養老金，因此當我們剝離這些業務時，我們將採取以下方式：槓桿是透過增加退休金來實現的。

Okay, thanks, appreciate it.

好的，謝謝，感激不盡。

John McNulty, Credit Suisse.

約翰·麥克納爾蒂，瑞士信貸。

When you had launched the restructuring program, it sounded like a lot of it was to help combat what you were seeing in terms of inflation in some of the emerging markets as well as some of even your core markets. I guess what I'm wondering is on the $70 million of incremental savings that you expect this year, how much of that do you expect to be offset by that inflation, and has that directionally improved or worsened relative to where we were last year when you launched the program?

當你們啟動重組計畫時，聽起來其中很大一部分是為了幫助應對一些新興市場甚至一些核心市場的通貨膨脹。我想我想知道的是，您預計今年將增加 7000 萬美元的增量儲蓄，您預計其中有多少會被通貨膨脹所抵消，以及相對於去年的情況，這是否有方向性的改善或惡化？你啟動了這個程式嗎？

Yes, John. I think the notion of inflation really impacts RBIS because we have a lot of employees in developing markets that have a high inflation rate, so the answer to the question depends a lot on volumes so we need about 1.5% growth in RBIS to offset the inflation factor and so then our incremental margin accretion happens after that about 1.5% growth factor, so it's really an RBIS issue, it's not a total Company issue.

是的，約翰。我認為通貨膨脹的概念確實會影響RBIS，因為我們在通貨膨脹率較高的發展中市場有很多員工，因此問題的答案在很大程度上取決於數量，因此我們需要RBIS 增長約1.5% 來抵消通貨膨脹因素，然後我們的增量利潤成長發生在大約 1.5% 的成長因素之後，所以這實際上是 RBIS 問題，而不是整個公司的問題。

Okay, fair enough. And then on the RFID growth, I know you said it would probably be a little bit more moderate this year because of one of the big customers slowing up their program, but you had 60% growth. Can you maybe bracket what you think as more moderate for this year, how should we be thinking about that business given that it's reached a tipping point in terms of size?

好吧，很公平。然後，關於 RFID 的成長，我知道您說過今年的成長可能會更加溫和，因為其中一個大客戶放慢了他們的計劃，但您成長了 60%。您能否列出您認為今年較為溫和的內容？考慮到該業務的規模已達到臨界點，我們應該如何考慮該業務？

Oh, gosh, that's the $64,000 question. I'd say in the 10% to 30% range.

哦，天哪，這就是 64,000 美元的問題。我想說在 10% 到 30% 的範圍內。

Okay, fair enough. And then in terms of the platform and how we think about RFID, when you get new adopters of it in terms of stores, chains, what have you, is there a big initial inventory pick up just to build inventory just because they're starting the platform or is it really just on an as-needed type of pull-in. Like how should we think about how that ramps up?

好吧，很公平。然後就平台以及我們如何看待 RFID 而言，當你在商店、連鎖店等領域獲得新的採用者時，是否會因為他們正在啟動而大量增加初始庫存以建立庫存平台還是真的只是按需類型的拉入。例如我們該如何思考它是如何增加的？

So the way retailers do this is that they start asking their vendors to tag new items that are going into the stores with RFID rather than doing -- in the tests a lot of times it's done in the retailers CDs but they quickly shift to having vendors do it, so what they do is phase it in as new products come into the store. That's typically the way its managed so for us it doesn't require a lot of inventory build. It does sometimes put a little bit of strain on our capacity, but we've managed through that quite well I think.

因此，零售商這樣做的方式是，他們開始要求供應商在進入商店的新商品上貼上RFID 標籤，而不是在測試中，很多時候是在零售商的CD 中完成的，但他們很快就轉向讓供應商來進行。這樣做，所以他們所做的就是隨著新產品進入商店而逐步實施。這通常是它的管理方式，因此對我們來說不需要建立大量庫存。有時這確實會給我們的能力帶來一些壓力，但我認為我們已經很好地解決了這個問題。

Okay, great. Thanks for the clarity.

好的，太好了。感謝您的澄清。

Jeff Zekauskas, JP Morgan Securities.

傑夫澤考斯卡斯，摩根大通證券。

In your other current liabilities sequentially went up about $34 million. What was that, and is that something that comes down in the first quarter of 2013?

您的其他流動負債依序增加了約 3,400 萬美元。那是什麼？這是 2013 年第一季出現的情況嗎？

So there's a few things hitting the other crude liabilities. You have your rebate accruals which tend to build up throughout the year, variable compensation so annual bonus which tends to build throughout the year. You also have the impacted currency. The currency rate for the euro went up within the quarter as well so number of things.

因此，有一些因素影響了其他原油負債。您的應計回扣往往會在全年中積累，可變薪酬因此年度獎金往往會在全年中積累。您還擁有受影響的貨幣。歐元匯率在本季上漲，還有很多事情。

So to answer your question, number of factors building it. The first two factors I mentioned would have it come back down again in the first quarter. If you recall Jeff our cash flow is rather seasonal. Q1 is the lowest its actually negative. One, that's because we're building working capital traditionally for OCP but also for RBIS, but it's also when pay out bonuses and pay out some rebates.

因此，要回答你的問題，需要考慮很多因素。我提到的前兩個因素將使其在第一季再次下降。如果你還記得傑夫，我們的現金流是相當季節性的。Q1 是最低的，其實是負值。第一，這是因為我們傳統上是為 OCP 和 RBIS 建立營運資金，但也是在支付獎金和支付一些回扣時。

Okay, and I don't mean to ask a naive question but you put the RFID Inlay Manufacturing into RBIS and you've described the business I think as a $100 million business or so or a run rate of but there's not really very much pro forma sales change between the previous RBIF numbers and the current RBIF numbers?

好的，我並不是想問一個幼稚的問題，但是您將RFID 嵌體製造納入RBIS，並且您已經描述了該業務，我認為該業務是一項價值1 億美元左右的業務，或者運行率約為1 億美元，但實際上並沒有太多專業知識。以前的 RBIF 數字和目前的 RBIF 數字之間的 forma 銷售額有何變化？

Yes, that's because most of the RFID sales the one vertical really taking off was in apparel so through the RBIS channel so RBIS was procuring all of the RFID inlays from our RFID division so that's one of the reasons we've integrated it just because that's the biggest vertical that's taken off just to streamline the operations.

是的，那是因為真正起飛的 RFID 銷售大部分是在服裝領域，因此透過 RBIS 管道，RBIS 從我們的 RFID 部門採購所有 RFID 嵌體，這就是我們整合它的原因之一，因為這是最大的垂直領域的發展只是為了簡化營運。

So that's why it's a relatively small revenue change?

那麼這就是為什麼收入變化相對較小的原因？

It's small in the revenue and you see a bigger impact on the margins.

它的收入很小，但對利潤率的影響更大。

Okay, and then lastly, your volume growth was pretty strong for the quarter and sometimes you're inclined to say that your businesses are a leading indicator; but at the same time, you wish to be conservative for various reasons for 2013. But if you put conservatism aside and you just look at the tenor of business of the fourth quarter and the tenor of business as we go into 2013, say for the first quarter, when you look at your data, are your business trends similar to the fourth quarter or have they slowed down? And I realize it's early in the quarter.

好的，最後，您本季的銷售成長相當強勁，有時您傾向於說您的業務是領先指標；但同時，由於各種原因，你希望對2013年持保守態度。但如果你把保守主義放在一邊，只看第四季度的業務趨勢和進入 2013 年的業務趨勢，比如說第一季度，當你查看你的數據時，你的業務趨勢是否與第四季度還是放緩了？我意識到現在是本季初。

Well I'd say Jeff, I remember 2011 we were coming off a strong year in 2010, we were pretty bullish. We had a good first quarter and then the bottom fell out of all of our businesses in the second quarter because we don't have that visibility so I think we are a little bit conservative.

好吧，傑夫，我記得 2011 年我們在 2010 年表現強勁，我們非常樂觀。我們第一季表現不錯，但第二季我們所有業務都觸底，因為我們沒有這種可見性，所以我認為我們有點保守。

January has been strong so far but here again, here is one reason why and simply that Chinese New Year was in week four of last year so it was in January and this year it's in week seven so it's in February so we expect to have a strong January. February will be weaker than last year because of Chinese New Year and then we won't really understand where the trends are until a couple of weeks after that, so it's really difficult to predict based on the first four weeks of the year.

到目前為止，一月份一直很強勁，但這裡再說一遍，這有一個原因，簡單地說，去年農曆新年是在第四周，所以是在一月份，今年是在第七週，所以是在二月份，所以我們預計會有一個強勁的一月。由於農曆新年的原因，2 月將比去年疲軟，然後直到幾週後我們才能真正了解趨勢在哪裡，因此根據今年的前四個星期來預測確實很困難。

And just to add a little bit to that if you look pulling China aside, so far what we're seeing is North America up, somewhat in Europe actually down so that's consistent with our full-year guidance. That's when we gave the regional outlook as well. And one thing when you look that's important to remember core growth. We did say the change in our fiscal year end added about a point to growth so if you adjust to that our core growth is relatively consistent for the whole quarter with Q3.

補充一點，如果你把中國拉到一邊，到目前為止我們看到的是北美上漲，歐洲實際上有所下降，所以這與我們的全年指導是一致的。那時我們也給了區域前景。當你看到這一點時，記住核心成長很重要。我們確實說過，我們財年末的變化增加了一個成長點，因此如果您進行調整，我們整個季度的核心成長與第三季相對一致。

When you get your $400 million in net proceeds, will all of that be consumed by share repurchase and pension pay-down?

當你獲得 4 億美元的淨收益時，所有這些都會被股票回購和退休金支付所消耗嗎？

Primarily so that's the two primary areas of focus interviews of focus will be.

這主要是焦點訪談的兩個主要領域。

Okay, thank you.

好的謝謝。

We have, we know how much we want to de-lever and then we are going to make a final determination about how much exactly the pension versus reported.

我們知道我們想要去槓桿化多少，然後我們最終會確定退休金與報告的金額到底是多少。

Okay, thank you.

好的謝謝。

Todd Wenning, Morningstar.

托德溫寧，晨星公司。

Looking back you made some opportunistic share repurchases in the first three quarters of 2012 but your buyback activity trailed off in the fourth quarter concurrent with the higher share price. With your stock now having made a really nice run in the recent past months, what effect will that have on your strategy going into 2013?

回顧一下，您在 2012 年前三個季度進行了一些機會主義的股票回購，但您的回購活動在第四季度隨著股價上漲而減弱。鑑於您的股票在過去幾個月中表現非常出色，這會對您進入 2013 年的策略產生什麼影響？

Yes, Todd we don't comment on the timing of share repurchases.

是的，托德，我們不對股票回購的時間發表評論。

And in the sense are you looking at it from a valuation perspective or can you give any color there?

從某種意義上說，您是從估值的角度來看待它，還是您可以給出任何顏色？

As we said before we don't comment on the timing or amount of share repurchases but we look at a number of factors when evaluating the pace and speed with which we repurchase so one is the timing of free cash flow. One is also just the intrinsic value of the stock relative to where it's trading and including recent trends as well as just looking at the other uses of capital, looking at what the dividend yield is that we have to pay versus cost of debt and so forth. So that's the overall assumption. As you can see, our average share count for the year implies a degree of share repurchases.

正如我們之前所說，我們不會評論股票回購的時間或數量，但在評估回購的節奏和速度時，我們會考慮許多因素，其中之一就是自由現金流的時間。一是股票相對於其交易地點的內在價值，包括最近的趨勢，以及僅關注資本的其他用途，看看我們必須支付的股息收益率與債務成本之比，等等。這就是總體假設。正如您所看到的，我們今年的平均股票數量意味著一定程度的股票回購。

Great. Thank you. And so what's your take on where the North American PSM industry stands in terms of capacity and how might that affect pricing going into the new year?

偉大的。謝謝。那麼，您對北美 PSM 產業的產能狀況有何看法？這將如何影響新一年的定價？

There really haven't been any substantial additions to capacity in the market. There was growth in the market last year so I think it's fundamentally no different in 2013 than it was in 2012.

市場上的產能確實沒有任何實質增加。去年市場有所成長，所以我認為 2013 年與 2012 年基本上沒有什麼不同。

Okay, thanks and do you have an outlook for R&D spending in 2013?

好的，謝謝，您對 2013 年研發支出有何展望？

Nothing specific. I'd say as you know we've have two vectors here. One is we closed our corporate research center; we're moving some activities into the businesses. And the other so I would say in the US, we're probably -- that number will be down year over year, but we're expanding in China and India so I'm not sure how it nets out. There won't be a material difference in our R&D spending year-over-year.

沒什麼具體的。我想說，正如你所知，我們這裡有兩個向量。一是我們關閉了企業研究中心；我們正在將一些活動轉移到企業中。另一個，我想說的是，在美國，我們的數字可能會逐年下降，但我們正在中國和印度擴張，所以我不確定它的結果如何。我們的研發支出年比不會有實質差異。

Okay. Thank you very much, good luck.

好的。非常感謝，祝你好運。

(Operator Instructions)

（操作員說明）

Glenn Primack, Peak.

格倫·普里馬克，巔峰。

In RBIS, is there room to continue to add the digital printers? And then can you remind us what the return the pay back is on one of those when you put it in your system and then also on RBIS, have you been successful to all of the solution selling?

在RBIS中，還有繼續增加數位印表機的空間嗎？然後您能否提醒我們，當您將其中一個放入您的系統以及 RBIS 時，您的回報是多少？您是否成功銷售了所有解決方案？

Yes, so do we have room for more digital presses? Yes in fact we're buying more now and putting them in our operations. They actually take up a lot less room than the offset presses they're replacing so it's actually digital printing is one of the things that allows us to help us reduce the overall footprint that we have in retail branding and information solutions. We get good payback from the investment in digital printing. I don't really want to comment on an amount, but it's pretty good. I'm sorry you had a third question there which I've forgotten.

是的，那我們還有空間容納更多的數位印刷機嗎？是的，事實上我們現在正在購買更多並將它們投入到我們的營運中。實際上，它們比所取代的膠印機佔用的空間要少得多，因此實際上數位印刷是幫助我們減少零售品牌和資訊解決方案整體足蹟的方法之一。我們從數位印刷的投資中獲得了良好的回報。我不想評論具體金額，但已經相當不錯了。很抱歉你還有第三個問題我忘了。

Solution selling, what's in RBIS, have you been able to do that with the customer?

解決方案銷售，RBIS 中有什麼，您能夠與客戶一起做到這一點嗎？

I'm really pleased with the progress of our commercial teams in Retail Branding and Information Solutions. I'd say five years ago, we were primarily talking to what's known as a trend buyer in the apparel companies of the retailer, it's just really talking about tickets, tags, and labels.

我對我們的商業團隊在零售品牌和資訊解決方案方面取得的進展感到非常滿意。我想說的是，五年前，我們主要是在與零售商服裝公司中所謂的趨勢買家交談，實際上只是在談論門票、吊牌和標籤。

And now we are talking to CEOs or CIOs about how we could help them manage their inventories and help them improve their gross profit through a wide range of solutions ranging from RFID to price markdown implementation in the stores to more effective heat transfer labeling in factories, so it is quite different. We're still in the early stages so we have a long way to go, but I'm very pleased with our progress.

現在我們正在與執行長或資訊長討論如何透過各種解決方案幫助他們管理庫存並幫助他們提高毛利，這些解決方案包括RFID、商店降價實施以及工廠更有效的熱轉印標籤，所以這是完全不同的。我們仍處於早期階段，所以還有很長的路要走，但我對我們的進展感到非常滿意。

Great, thanks.

萬分感謝。

Anthony Pettinari, Citigroup.

安東尼佩蒂納裡，花旗集團。

Just to follow-up on a question on RBIS. You referenced retailer confidence ticking up but I think in previous quarters when you've seen a little bit better growth you've indicated retailers are still keeping inventory ratios very tight and want to keep the inventories lean. Are you seeing or did you see in the fourth quarter any inventory restocking effects or is the strength that you saw in the quarter really just better volumes and some share gain?

只是為了跟進有關 RBIS 的問題。您提到零售商信心上升，但我認為在前幾個季度，當您看到更好的成長時，您已經表明零售商仍然保持庫存比率非常緊張，並希望保持庫存精簡。您是否看到或在第四季度看到了任何庫存補貨效應，或者您在本季度看到的強勁勢頭真的只是銷量增加和份額增長嗎？

Well, the inventory to sales ratio, we track that pretty closely, has remained pretty much in the same range it has for the last 18 months so it hasn't changed much and the retailers are keeping inventories low. I do think we get a benefit from lower unit cost from apparel right now, so it tends to be a few more units. And the focus on retailers to keep inventories down actually helps us in the sense that RFID is essentially an inventory control solution, for example, and the fact that we can respond very quickly to retailers for restocking also helps us gain share.

嗯，我們密切追蹤的庫存與銷售比率幾乎保持在過去 18 個月的同一範圍內，因此沒有太大變化，零售商也將庫存保持在較低水平。我確實認為我們現在從服裝的單位成本降低中受益，因此往往會增加一些單位。專注於零售商降低庫存實際上對我們有幫助，例如，RFID 本質上是一種庫存控制解決方案，而且我們可以非常快速地響應零售商的補貨請求，這一事實也有助於我們獲得份額。

So the trend in fact I think really helps ours overall business. There's still some uncertainty in the market. We grew in Europe from European retailers and brands the last couple of quarters and I'm still a bit nervous of what's going to happen over there, so still early in the year yet.

事實上，我認為這一趨勢確實有助於我們的整體業務。市場仍存在一定的不確定性。過去幾個季度，我們透過歐洲零售商和品牌在歐洲實現了成長，我仍然對那裡會發生的事情感到有點緊張，所以現在還處於今年年初。

Okay. That's helpful. And your 2013 CapEx guidance is ratcheted up a bit from 2012. Can you just walk us through what portion is kind of growth versus maintenance and maybe what businesses are getting the biggest incremental investment?

好的。這很有幫助。你們 2013 年的資本支出指引比 2012 年有所提升。您能否向我們介紹成長與維護的比例，以及哪些企業獲得了最大的增量投資？

The ratio is still roughly the same as we said before so it's about one-third growth principally being in emerging markets, capital requirements, one-third maintenance from mature markets and one-third IT.

這個比率仍然與我們之前所說的大致相同，因此大約三分之一的成長主要來自新興市場、資本需求，三分之一來自成熟市場的維護和三分之一的IT。

Okay, thank you. I'll turn it over.

好的謝謝。我會把它翻過來。

George Staphos, Banc of America Merill Lynch.

喬治‧史塔福斯，美銀美林。

In terms of emerging market margins for Pressure-Sensitive Material, while you can't get into the specifics perhaps can you tell us what the trend has been over the last year to two years? Have you been able to maintain the margins that you've had in that business and what's the outlook to the extent that you can comment in 2013 and then I had a housekeeping question.

就壓敏材料的新興市場利潤而言，雖然您無法透露具體細節，但您能否告訴我們過去一年到兩年的趨勢是什麼？您是否能夠保持該業務的利潤率以及前景如何，您可以在 2013 年發表評論，然後我有一個內務問題。

So George, emerging market margins for Pressure-Sensitive Materials are still above average. We have changed our strategy a bit in emerging markets in that we are going after business in some lower margin but still very profitable categories, so we're accelerating growth, taking a little more market share but still the overall margins and returns are still above the average.

因此，喬治，壓敏材料的新興市場利潤率仍然高於平均值。我們在新興市場稍微改變了我們的策略，因為我們正在追求一些利潤率較低但仍然非常有利可圖的類別的業務，因此我們正在加速成長，佔據更多的市場份額，但總體利潤率和回報仍然高於平均數。

Just why the shift in the strategy, Dean? What's behind that?

Dean，為什麼要改變策略？這背後是什麼？

I think a lot of it has to do with making sure that you don't allow your competitors to gain a foothold in lower-priced easier-to-make products and then kind of try to work their way up the chain. We've established a very strong competitive position, especially in higher value-added products like films and durable goods. And I think as we talked about how we want to behave in those markets there is clearly an opportunity for us to grow faster than the market and its profitable and it's simply just a -- I'd say a minor shift in our mindset.

我認為這很大程度上與確保你不讓你的競爭對手在價格較低、更容易製造的產品中站穩腳跟，然後試圖在鏈條上向上發展有關。我們已經建立了非常強大的競爭地位，特別是在電影和耐用品等高附加價值產品方面。我認為，當我們討論我們希望如何在這些市場中表現時，我們顯然有機會比市場增長得更快，並實現盈利，這只是——我想說的是我們心態上的一個微小轉變。

Okay. The housekeeping question maybe you'd mentioned this before and I missed it; if so I apologize. What's the logic for keeping DES in your guidance for the time being? It's obviously not going to be that large in terms of EBIT in terms of just looking at the other specialty converting EBIT but I was wondering what was behind that.

好的。家政問題也許你以前提到過，但我錯過了；如果是這樣，我深表歉意。您暫時將 DES 保留在您的指導中的邏輯是什麼？就息稅前利潤而言，僅考慮其他專業轉換息稅前利潤顯然不會那麼大，但我想知道這背後是什麼。

And then once that ultimately leaves or maybe even before then, why wouldn't you have put Vancive in Pressure-Sensitive Materials since you put other specialty tapes in there as well? I realize it's a healthcare event company or business but nonetheless, it would seem like it would be more PSM than standalone especially when it gets to that size in the segment.

一旦它最終離開，甚至在那之前，為什麼你不把 Vancive 放入壓敏材料中，因為你也把其他特殊膠帶放在那裡？我意識到這是一家醫療保健活動公司或企業，但儘管如此，它看起來更像是 PSM，而不是獨立的，尤其是當它在該領域達到這樣的規模時。

Okay, George, the DES, I think we're trying to be consistent here with the accounting, so DES technically can't be moved into disc ops until after the first quarter has gone by. And we're likely to keep that business in the Company for a couple of quarters and so we wanted the comps to 2012 to be easier to do. Also the share count excludes buyback from the sale as well, so when we upgrade the guidance when we move DES into disc ops, we'll also likely make some comments about share count, et cetera. So we're trying to be relatively consistent there.

好吧，喬治，DES，我認為我們正在努力與會計保持一致，因此從技術上講，在第一季結束之前，DES 不能轉移到光碟操作中。我們可能會將該業務保留在公司幾個季度，因此我們希望 2012 年的比較能更容易完成。此外，股份數量也不包括銷售中的回購，因此當我們將 DES 轉移到光碟操作時升級指導時，我們也可能會對股份數量等做出一些評論。所以我們試著在這方面保持相對一致。

The question on segment reporting and Vancive is an interesting one because actually it's a very technical question and there's a lot of accounting et cetera. Fundamentally, we believe that business is sufficiently different enough from Materials that it needs to be reported in the Other segment. It also reports directly to me. It does not report into the leader of our Materials business and that is one major factor in why you have to report it in one segment or another.

關於分部報告和 Vancive 的問題是一個有趣的問題，因為實際上這是一個非常技術性的問題，並且有很多會計等等。從根本上說，我們認為業務與材料有很大不同，因此需要在其他部門進行報告。它也直接向我報告。它不向我們材料業務的領導者報告，這就是為什麼您必須在一個或另一個部門報告它的一個主要因素。

Okay, but we should view Vancive as if, nonetheless small, it's a core business for you?

好的，但我們應該將 Vancive 視為您的核心業務，儘管它規模很小？

I feel that it's a core business and it is opportunity for growth. We're making investments in the business and it's a nice, it's a nice business with some great growth potential.

我覺得這是一項核心業務，也是成長的機會。我們正在對這項業務進行投資，這是一項很好的業務，具有巨大的成長潛力。

Okay, thanks guys. Good luck in the quarter.

好的，謝謝大家。祝本季好運。

Scott Gaffner, Barclays Capital.

斯科特·加夫納，巴克萊資本。

Just two follow-ups on RBIS and one additional question. So just on RBIS, you mentioned you thought there was improved demand from US and European retailers in the quarter. I just want to flesh that out. How much is underlying demand improvement versus the lower cotton prices we talked about? And then as we roll that into 2013 how much of the guidance is predicated on increased unit volume from lower cotton prices?

僅關於 RBIS 的兩個後續行動和一個附加問題。就 RBIS 而言，您提到您認為本季美國和歐洲零售商的需求有所改善。我只是想充實這一點。與我們討論的棉花價格下跌相比，潛在需求改善了多少？然後，當我們將其推入 2013 年時，有多少指導是基於棉花價格下跌帶來的單位產量增加？

Scott, that's a really tough question to tease out as how much is related to lower cotton prices versus confidence. It's an impossible number to derive. Here is the way we look at it. I think we didn't really see the benefit of lower apparel prices until the back half of the year, so my perspective is the comps will be relatively easier in the first half of 2013. It may be slightly more difficult than in the back half of 2013.

史考特，這是一個很難弄清楚的問題，因為棉花價格下跌與信心有多大關係。這是一個不可能得出的數字。這是我們看待它的方式。我認為直到今年下半年我們才真正看到服裝價格下降的好處，所以我的觀點是 2013 年上半年的競爭會相對容易一些。與2013年下半年相比，可能會稍微困難一些。

Okay, and the ordering that your customers are doing now. Are they still buying for spring?

好的，還有您的客戶現在正在做的訂購。他們還在為春季採購嗎？

It's for the spring season, so the orders that we've taken mainly in the fourth quarter is really all about spring and summer.

由於是春季，我們第四季接到的訂單主要都是春季和夏季的。

But the orders in the first quarter, are those for spring as well, or is that?

但第一季的訂單也是春季的訂單嗎？

In March/April, we'll start to see fall merchandise hit our order books.

在三月/四月，我們將開始看到秋季商品出現在我們的訂單中。

Okay, and Dean you mentioned the change in the compensation structure, in particular with the head of the segments now more directly tied to your communications with the street. Can you be a little bit more specific on that, how their compensation structures actually changed?

好的，迪恩，你提到了薪酬結構的變化，特別是現在部門負責人與你與街道的溝通更直接地聯繫在一起。您能否更具體地說明一下，他們的薪酬結構實際上是如何改變的？

So the actual way they're compensated hasn't changed but fundamentally, we had always held the businesses accountable for a set of EBIT targets and those EBIT targets were less than what we reported externally, and so the businesses didn't feel accountable for certain costs that were allocated to the businesses. So we decided to change that and now I can tell you the business heads pay a heck of a lot more attention to services they buy from the center or other cost allocations.

因此，他們獲得補償的實際方式並沒有改變，但從根本上來說，我們一直要求企業對一系列息稅前利潤目標負責，而這些息稅前利潤目標低於我們對外報告的目標，因此企業並不覺得自己有責任分配給企業的某些成本。所以我們決定改變這一點，現在我可以告訴你，企業負責人更關注他們從中心購買的服務或其他成本分配。

And part of the restructuring plan was the businesses saying I don't really want this service or I want it at a lower level and as a way to better prioritize around the specific needs of the business rather than trying to do it at an average in the corporate center.

重組計劃的一部分是，企業表示我並不真正想要這項服務，或者我希望它處於較低的水平，並且作為一種更好地優先考慮企業特定需求的方式，而不是試圖以平均水平來完成這項服務。企業中心。

So I think its driven better prioritization and better decision-making, especially given the fact that RBIS and Materials are such different businesses at different -- they sell them to different markets, different competitive dynamics and they, therefore, have different priorities so I actually think this is a much better methodology of prioritizing investments in our business.

因此，我認為它推動了更好的優先事項和更好的決策，特別是考慮到RBIS 和材料是不同的業務，它們將它們出售給不同的市場，不同的競爭動態，因此，它們有不同的優先級，所以我實際上認為這是一種更好的確定我們業務投資優先順序的方法。

That makes sense. Thank you.

這就說得通了。謝謝。

You're welcome. Okay, well I guess there are no other questions. Just to sum up, we're very pleased to announce a deal for Office and Consumer Products and Design and Engineered Solutions this morning. We'll work with CCL to plan the transition and complete the transaction as quickly as possible.

不客氣。好吧，我想沒有其他問題了。總而言之，我們非常高興今天早上宣布達成辦公室和消費產品以及設計和工程解決方案的交易。我們將與 CCL 合作規劃過渡並儘快完成交易。

Last May, we set out our long term goals for you and committed to focusing the Company to insure we can deliver on them. We accomplished a great deal of that work in 2012. Our employees did a remarkable job of serving customers and improving quality and service while executing our restructuring plans and I want to thank them for their efforts and their dedication.

去年五月，我們為您設定了長期目標，並致力於將公司的重點放在確保我們能夠實現這些目標。2012 年我們完成了大量的工作。我們的員工在執行重組計劃的同時，在服務客戶、提高品質和服務方面做得非常出色，我要感謝他們的努力和奉獻。

But while we're pleased with the progress we made so far, we know we have more to do and we're focused 100% on completing the restructuring and delivering another year of double-digit earnings growth and strong free cash flow. Thank you and we'll talk to you next quarter.

儘管我們對迄今為止所取得的進展感到滿意，但我們知道我們還有更多工作要做，我們將100% 專注於完成重組，並實現又一年兩位數的盈利增長和強勁的自由現金流。謝謝您，我們將在下個季度與您聯繫。

Ladies and gentlemen, this does conclude the conference call for today. We thank you all for your participation and ask that you please disconnect your lines. Have a great day everyone.

女士們、先生們，今天的電話會議到此結束。我們感謝大家的參與，並請您斷開線路。祝大家有個美好的一天。