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6MAR201206413593
Much of our financial success is attributable to the fact that we consistently
focus on the key components of our financial strategy, which include:
Generating free cash flow;
Disciplined and balanced capital allocation;
Growing earnings before interest and taxes (``EBIT'') by maximizing value
in existing businesses, expansion into new markets and products, and
merger and acquisition activities; and
CASH
GENERATORS
CAPITAL
ALLOCATORS
EBIT
GROWERS
EVA
DEVOTEES
Generating incremental Economic Value Added (``EVA '') with returns in
excess of our weighted average cost of capital (``WACC''), which over
time leads to a higher share price and shareholder returns.
In 2011 we also developed and initiated our Drive for 10 strategy, which builds on Ball's strong foundation and
emphasizes five key strategic levers that will allow us to achieve continued growth over the next decade. During the
year we had many operational successes that directly aligned with our Drive for 10 strategy, including:
Successfully completing the acquisition and integration of Aerocan S.A.S. in Europe;
Expanding our geographic reach by building new beverage can plants in Brazil, China and Vietnam;
Strategically redeploying assets by relocating a metal beverage can production line originally intended for a
plant in Lublin, Poland, to our Belgrade, Serbia, plant;
Aligning our North American manufacturing footprint to better meet changing market demand;
Expanding specialty can production in our Forth Worth, Texas, plant by adding a new specialty can line capable
of producing both 16- and 24-ounce cans and adding an Alumi-tek Bottle line in our Golden, Colorado, plant;
and
Expanding Ball Aerospace's manufacturing center in Westminster, Colorado, and NASA's successful launch of
the Ball-built NPP satellite.
Pay-for-Performance Serves as the Foundation of our Executive Compensation Program--The design, govern-
ance and administration of our executive compensation program is centered on the principle of aligning pay to
performance, achieved by linking the majority of executive compensation opportunities to long-term shareholder
returns and the value-added financial performance of the Corporation. We believe this principle has directly contrib-
uted to the successful performance of the business through:
A management-as-owners culture that builds a management team with meaningful ownership in the Corpora-
tion. Executives are closely aligned to shareholder interests through established ownership expectations, equity-
settled long-term incentives and specialized opportunities that encourage individuals to make meaningful,
personal investments in Ball Corporation common stock.
Incentive pay programs that utilize value-added financial performance metrics--specifically, EVA , return on
average invested capital (``ROAIC''), and total shareholder return (``TSR'')--that are in our view most closely
aligned with shareholder value generation by creating accountability for both the efficient deployment of capital
and strong earnings generation.
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