Ball Annual Report 2004 | Quarterlytics

Plain-text annual report

t r o p e R l a u n n A 4 0 0 2 | n o i t a r o p r o C l l a B E V O L U T I O N Ball Corporation 10 Longs Peak Drive Broomfield, CO 80021 (303) 469-3131 www.ball.com “Our Quasquicentennial Year” A B O U T B A L L C O R P O R A T I O N Ball Corporation is a provider of metal and plastic packaging, primarily for beverages and foods, and of aerospace and other technologies and services to commercial and governmental customers. Founded in 1880, the company employs more than 13,200 people in 75 locations worldwide. Ball Corporation stock is traded on the New York Stock Exchange under the ticker symbol “BLL.” M I S S I O N A N D S T R A T E G I E S To be the premier provider to beverage, food and aerospace and technologies customers of the products and services that we offer as we aggressively manage our business, and to explore and pursue acquisitions, divestitures, strategic alliances and other changes that would beneﬁ t Ball’s shareholders. In packaging, our strategy is to leverage our superior continuous process improvement expertise in order to manufacture, market, sell and service high-quality, value-added products that meet the needs of high-volume and/or growing customer segments of the beverage, food and other markets. In aerospace and technologies, our strategy is to provide remote sensing systems and solutions to the aerospace and defense markets through products and services used to collect and interpret information needed to support national missions and scientiﬁ c discovery. . e c ﬁ f O . m T & . t a P . . S U . g e R , n o i t a r o p r o C l l a B f o s k r a m e d a r t e r a d n a l l a B 5 0 0 2 n o i t a r o p r o C l l a B © t h g i r y p o C F I N A N C I A L H I G H L I G H T S B a l l C o r p o r a t i o n a n d S u b s i d i a r i e s ($ in millions, except per share amounts) 2004 2003 Stock Performance Annual return to common shareholders (share price appreciation plus assumed reinvested dividends) . . . . . . . . 48.8% Closing market price per share (1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 43.98 Total market value of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,956 112,691 Shares outstanding at year end (000s) (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shares outstanding assuming dilution (000s) (1)(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,742 17.4% $ 29.79 $ 3,359 112,779 114,815 Operating Performance Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,440 435 Earnings before taxes (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Earnings before interest and taxes (EBIT) (3)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 539 296 Net earnings (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.67 Basic earnings per share (1)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Diluted earnings per share (1)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.60 0.35 Cash dividends per share (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Number of employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,220 (1) Amounts for 2003 have been retroactively restated for a two-for-one stock split, which was effective August 23, 2004. (2) Represents shares outstanding at year end plus the assumed exercise of options that are “in-the-money” at year end, less an estimate of shares that could be repurchased at the $ 4,977 320 $ 461 $ 230 $ 2.06 $ 2.01 $ $ 0.24 12,630 year-end market price of Ball stock using the assumed exercise proceeds. This measure is not the same as the diluted weighted average shares outstanding used in the calculation of diluted earnings per share. (3) Includes income of $15.2 million ($0.08 cents per diluted share) in 2004 and $3.7 million ($0.02 cents per diluted share) in 2003 related to the ﬁ nalization of various business consolidation and other activities. Also includes expense of $15.2 million ($0.13 cents per diluted share) in 2004 for a bad debt provision related to a minority-owned investment and $15.2 million ($0.09 cents per diluted share) in 2003 for debt reﬁ nancing costs. Additional details are available in the company’s consolidated ﬁ nancial statements. (4) Management utilizes earnings before interest and taxes (EBIT) as an internal measure for evaluating operating results and for planning purposes. EBIT is shown prior to interest expense of $103.7 million in 2004 and $141.1 million in 2003. This Summary Annual Report should be read in conjunction with the audited consolidated ﬁ nancial statements and other information contained in Ball Corporation’s Annual Report on 10-K for 2004 furnished with the Company’s Proxy Statement for the 2005 Annual Meeting of Shareholders. . d n I i , e c n u M , n o i t c e l l i o C e g a t i r e H a t s i r t e n n M e h T d n a y t i s r e v n U e t a t S i l l a B f o y s e t r u o c s o t o h p c i r o t s h e m o S i Dear Fellow Shareholders: Sometime in 2005, Ball Corporation will turn 125 years old. Company records and historians are certain of the year, though less certain about a particular month or day. That’s ﬁ ne with us, because throughout the year we intend to mark this milestone in our history. To conﬁ ne it to a single day just wouldn’t do after so many years of tangible accomplishment. We will feel good as we celebrate because 2004, the last full year in our ﬁ rst 125, was also the best in the company’s history, with record sales, record earnings and record operating cash ﬂ ow. More important, perhaps, we will celebrate while trying to ensure that 2005 will see us achieve even greater results, much as 2004 built on a record 2003. There won’t be any grand balls or elaborate 125th anniversary events. You won’t see our name or quasquicentennial logo in a special corporate image advertising campaign, other paid promotions or on blimps. We reached 125 years by quietly and conﬁ dently going about our business. We’ll celebrate the same way. Our guiding philosophy really is quite simple and straightforward. It is a gift from our corporate founders. You will ﬁ nd it on the page following this letter. It works for us, as demonstrated by our long, successful history and most recently by Ball Corporation’s 2004 results. Exceeding our goals In 2004 we earned a record $295.6 million ($2.60 per diluted share) on record sales of $5.44 billion, compared to $229.9 million ($2.01 per diluted share) on sales of $4.98 billion in 2003. Our long-term objective is to improve annual earnings per diluted share by an average of 10 to 15 percent over time. In recent years we have far exceeded that goal, with earnings per diluted share up 29 percent in 2004 and an average of more than 45 percent per year over the past three years. We also focus on the generation of cash and the prudent use of that cash. Our cash ﬂ ow from operations in 2004 was $536 million. Since the end of 2001, we have generated more than $1.35 billion in cash ﬂ ow from operations. Prudent use of cash Our success depends in no small way on us making wise choices regarding the use of that cash. We have the standard choices – invest in the business, make acquisitions, reduce debt, pay dividends and buy back stock. When we have the opportunity to improve our existing businesses and earn more than our cost of capital, we take it. We are building a new beverage can manufacturing plant near Belgrade, the largest foreign investment in Serbia since the end of hostilities there. We are converting selected manufacturing lines in Europe and North America from the production of standard size commodity beverage cans to the production of specialty cans as our customers’ needs for new sizes and styles of beverage cans continue to grow. To accommodate the nearly 600 new people we hired in our aerospace business in 2004 and the many contracts we are bidding and winning for spacecraft and space instrumentation, we are expanding and upgrading facilities in our aerospace and technologies segment. We have made two large acquisitions since 1998 in the beverage can manu fac turing assets of Reynolds Metals and Schmalbach-Lubeca. The successful integration of these acquisitions has elevated us to a leadership position in our largest product R. David Hoover Chairman, president and chief executive ofﬁ cer 1 area. We also have made a number of smaller, strategically important acquisi- tions such as the one early in 2004 that made us sole owner of a large metal food can manufacturing facility in California. Since the acquisition of our European beverage can business at the end of 2002 we have been diligent in reducing debt associated with that transaction. Two years later, at the end of 2004, we had reduced debt and increased cash by a total of $536 million. In 2004 we increased the regular quarterly dividend on our common stock by 33 percent, the third time we have increased the dividend in the past three years. We have been a signiﬁ cant acquirer of our own stock, repurchasing more than $200 million worth of net shares between 2001 and the end of 2004 and an additional $125 million in January 2005. Approximately 8 million shares remain under a stock repurchase authorization approved by the board of directors in July 2004. Stock Performance (based on initial investment of $100 in 1997) $600 $500 $400 $300 $200 $100 97 98 99 00 01 02 03 04 BLL S&P 500 Dow: Containers Strength and flexibility We reached 125 years and achieved a record 2004 by demonstrating the ﬂ exibility needed to adapt to changing times and take advantage of developing market opportunities. We have the ﬁ nancial strength to pursue those opportunities that make the most sense and offer the greatest long-term potential to the corporation. It is this combination of ﬁ nancial strength and strategic ﬂ exibility that has characterized Ball throughout its history, and will continue to deﬁ ne it in the future. We also have the human strength. While many of our employees have devoted much of their working lives to Ball, an increasing number of our employees are new to the company. Many came to us through acquisitions both large and small. Others came with the growth of our still-young plastic container business. Fully half of our 3,100 aerospace employees have been with Ball for fewer than ﬁ ve years. New people bring new ideas that help fuel the creativity and imagination of the entire organization. We appreciate the contribution of every employee, old and new. One of our greatest strengths, now and throughout our history, is the outstanding customer base we serve. We are privileged to provide packaging products for many of the world’s leading names in the beverage and food industries, and our aerospace and technologies segment works with the top defense and space agencies, laboratories and scientiﬁ c investigators in the world. We are honored by the trust our customers place in us, and determined to continue to add value to our relationships with them. The only ﬁ reworks If all goes as planned, on the Fourth of July in 2005, a spacecraft built by Ball will rendezvous with a comet after a journey of six months and more than 265 million miles. This technically challenging mission holds the promise to greatly expand knowledge about the formation of the universe. One part of the spacecraft will impact with the comet while the other part observes and sends back images and data to scientists on Earth. The celestial show that could occur may be the only ﬁ reworks related in any way to our quasquicentennial. For the most part it will be business as usual, as it has been for the past 125 years, as we continue to build on our tradition of serving our customers, providing jobs, rewarding investors and participating in our communities. In the process, we will ﬁ nd the time to celebrate and make note of those things that have allowed us to prosper for so long. If we do these things properly, our future should be every bit as bright as our past has been proud. 2 R. David Hoover Chairman, president and chief executive ofﬁ cer George A. Ball | William C. Ball | Frank C. Ball | Lucius L. Ball | Edmund B. Ball “Our Quasquicentennial Year” Ball Corporation has changed dramatically over its 125 years, from a small, family-owned business into a public company with people and interests around the world. We believe a core purpose and core values, established in our early years and reﬁ ned and adhered to throughout our history, have provided us with a guiding philosophy that has helped us prosper. Core Purpose Ball Corporation is in business to add value to all of its stakeholders, whether it is providing quality products and services to customers, an attractive return on investment to shareholders, a meaningful work life for employees or a con- tribution of time, effort and resources to our communities. In all of our interactions, we ask how we can get better – how we can make it better, be better and do better, for our own good and the good of those who have a stake in our success. Core Values Integrity – Our reputation for integrity is our most important asset. We will not compromise our integrity or risk damage to our reputation in return for ﬁ nancial gain or for any reason. Respect – We respect our employees, our customers, our suppliers, our shareholders – indeed, all of our stakeholders. In all of our dealings we strive to show that respect and to treat people with dignity. Motivation – We have a strong desire to be successful and to be measured against the best. Flexibility – We are willing to challenge our own assumptions and adapt to changing circumstances for the long- term good of the corporation. Innovation – We strive to be creative and innovative in our products, our processes and the way we conduct business. Teamwork – We operate as a team. Everyone has his or her job, but it takes all of us working together for the company to succeed. 3 Ball Corporation Yesterday B A L L C O R P O R AT I O N TO DAY The wooden jacketed can was the ﬁ rst Ball packaging product, 1880 North American Packaging For all of our 125-year history, Ball Corporation has produced packaging in North America. Our products have evolved as the needs of our packaging customers and their consumers have evolved. Today our focus is on two speciﬁ c growth strategies: developing innovative and distinctive brand-building packages to help our customers grow, and manufacturing more value-oriented packaging that meets and exceeds consumers’ expectations, all the time maintaining our leadership as a low-cost provider of packaging products. In 2004 Ball addressed these strategies with the expansion of our Edmund F. Ball Technology & Innovation Center (BTIC) in Westminster, Colo. We completed the relocation of our plastics technology and development operations from Smyrna, Ga., to the BTIC and are already offering our customers the advantages that come from housing our three packaging technology operations – for metal beverage, metal food and plastics – under one roof. The expanded BTIC and our European technical center in Bonn, Germany, are developing innovative packaging and processes for our customers on both continents and elsewhere. We introduced in 2004 a new line of heat-set PET bottles called Heat-Tek™ that are ideal for juices, teas, sports drinks, vitamin-enhanced water and other beverages that are ﬁ lled at temperatures up to 185 degrees Fahrenheit. As consumer demand for healthier beverages and the conversion from glass to plastic containers continue, Ball’s Heat-Tek™ bottles are providing on-the-go packaging targeted to those growing products. To help meet the continued growth of Ball’s custom can business, we announced plans to convert a metal beverage container line in our Golden, Colo., plant to the fast-growing 24-ounce can from the 12-ounce can. The conversion will be complete by the end of the second quarter of 2005. In addition to demand from beverages traditionally packaged in cans, custom can growth is coming from additional product areas such as wine and dairy. In March 2004 we solidiﬁ ed our signiﬁ cant West Coast presence in the metal food container industry with the acquisition of Ball Western Can Company, LLC, a metal food container plant in Oakdale, Calif. Ball Western Can was established in 2000 as a joint venture between Ball and ConAgra Grocery Products Company. Our Oakdale plant is providing metal food packaging to ConAgra Foods manufacturing locations in California while also serving other key West Coast food customers. Innovations and initiatives like these allow Ball to continue to grow and perform in the large North American packaging market. Ball factory glass blowers, Buffalo, N.Y., circa 1882 A catalog drawing of oil cans produced by Ball, circa 1883 The amber “Buffalo Jar” was one of the ﬁ rst fruit jars made by Ball, circa 1884 Early sign for Ball Brothers Glass Manufacturing Company, 1886 4 Ball Corporation Yesterday Ball Brothers glass factory, Muncie, Ind., circa 1889 We expanded our innovative line of Heat-Tek™ PET bottles in 2004 to help meet demand for hot-ﬁ lled beverages. The founding Ball brothers in 1893 Our wine can was a commercial success in North America, proving that premium wine and the convenient, cold-chilling can are a great combination. F.C. Ball machine, the ﬁ rst semi-automatic glass-making machine, circa 1898 The expanded Edmund F. Ball Technology & Innovation Center in Westminster, Colo., combines our aluminum, steel and plastic packaging development expertise in one modern facility. Ball jars warehoused in an open ﬁ eld before shipping, Muncie, Ind., circa 1903 Muncie, Ind., glass factory employees, circa 1905 5 Ball Corporation Yesterday B A L L C O R P O R AT I O N TO DAY Ball employees pose in front of a railroad car carrying several automatic Ball-Bingham glass making machines at the Muncie, Ind., factory, circa 1906 International Packaging In our second full year of operating Ball Packaging Europe, we continued to expand that business both geographically and through the introduction of innovative new products. In May 2004, Ball Packaging Europe began construction of a new aluminum beverage can plant near Belgrade, Serbia. The plant will have a capacity of 650 million cans per year and will serve the Eastern European region, where beverage can demand is expected to grow in double digits. Production is scheduled to begin in mid-2005. We also converted a steel beverage can line in Hermsdorf, Germany, and a line Parade ﬂ oat, “We Jar the World,” 1927 in Oss, the Netherlands, to aluminum to better allow us to meet increased demand for Women’s industrial basketball team representing the white liner department at Ball Brothers, 1932 Ball’s display at 1933 Chicago Century of Progress International Exposition aluminum cans throughout Europe. Ball Packaging Europe, largely through its extensive capabilities at its technical center in Bonn, Germany, continued to develop new products and processes in 2004. For example, a slimmer diameter can launched successfully in Germany, where a poorly planned deposit system created turmoil in the market and forced canmakers to seek export markets for cans produced in Germany. The “Sleek” can is being used in select retail outlets in Germany and in 2005 will be launched commercially in France, Portugal and Spain. We also continue to develop our can embossing capabilities and have installed a second embosser in Europe, this time in our plant in Radomsko, Poland. We will sell about 650 million embossed cans in 2005, making Ball Packaging Europe the largest supplier of embossed cans on the continent. Another successful Ball innovation in Europe includes the introduction of waterless printing techniques for cans sold in Belgium, France and Spain. In the last 18 months, we believe the China beverage market has grown by more than 10 percent. That trend appears to be continuing into 2005, with both canned soft drinks and beer making inroads with Chinese consumers. As a result, Ball Asia Paciﬁ c Ltd. is close to full utilization of its plants in China. We have operated in China for two decades, and today believe our plants there are well positioned to beneﬁ t from continued growth in that market. Ball’s growing glass plant, Muncie, Ind., 1938 Our Brazilian joint venture, Latapack-Ball Embalagens, Ltda., improved results in 2004 by increasing operating efﬁ ciencies as volumes rebounded after a difﬁ cult 2003. 6 B A L L C O R P O R AT I O N TO DAY International Packaging In our second full year of operating Ball Packaging Europe, we continued to expand that business both geographically and through the introduction of innovative new products. In May 2004, Ball Packaging Europe began construction of a new aluminum beverage can plant near Belgrade, Serbia. The plant will have a capacity of 650 million cans per year and will serve the Eastern European region, where beverage can demand is expected to grow in double digits. Production is scheduled to begin in mid-2005. We also converted a steel beverage can line in Hermsdorf, Germany, and a line in Oss, the Netherlands, to aluminum to better allow us to meet increased demand for aluminum cans throughout Europe. Ball Packaging Europe, largely through its extensive capabilities at its technical center in Bonn, Germany, continued to develop new products and processes in 2004. For example, a slimmer diameter can launched successfully in Germany, where a poorly planned deposit system created turmoil in the market and forced canmakers to seek export markets for cans produced in Germany. The “Sleek” can is being used in select retail outlets in Germany and in 2005 will be launched commercially in France, Portugal and Spain. We also continue to develop our can embossing capabilities and have installed a second embosser in Europe, this time in our plant in Radomsko, Poland. We will sell Ball Packaging Europe’s extensive embossing capabilities produced this premium embossed can for Gordon Finest Platinum Beer in January 2005. Ball Corporation Yesterday Zinc battery shells made for U.S. armed forces at Ball’s zinc rolling plant, 1943 A new type of waterless printing process developed by Ball Packaging Europe produces exquisitely detailed high-resolution photos and expands the color palette to produce eye-catching packages. Employees hand inspect commercial glass jars at the end of a manufacturing line, Muncie, Ind., circa 1950 Ball Brothers Research Corp., the forerunner of Ball Aerospace, formed in Boulder, Colo., in 1956 Our new metal beverage container plant near Belgrade, Serbia, will supply the fast-growing eastern European market with up about 650 million embossed cans in 2005, making Ball Packaging Europe the largest to 650 million cans per year. supplier of embossed cans on the continent. Another successful Ball innovation in Europe includes the introduction of waterless printing techniques for cans sold in Belgium, France and Spain. In the last 18 months, we believe the China beverage market has grown by more than 10 percent. That trend appears to be continuing into 2005, with both canned soft drinks and beer making inroads with Chinese consumers. As a result, Ball Asia Paciﬁ c Ltd. is close to full utilization of its plants in China. We have operated in China for two decades, and today believe our plants there are well positioned to beneﬁ t from continued growth in that market. Our Brazilian joint venture, Latapack-Ball Embalagens, Ltda., improved results in 2004 by increasing operating efﬁ ciencies as volumes rebounded after a difﬁ cult 2003. A variety of commercial glass containers made by Ball, circa 1960 Ball forms plastic container division with plant in Joliet, Ill., 1962 6 7 Ball Corporation Yesterday B A L L C O R P O R AT I O N TO DAY Aerospace and Technologies Ball Aerospace & Technologies Corp. won signiﬁ cant new business in 2004 and continued its rapid growth to accommodate larger, more complex programs. It employed a record 3,100 people by the end of the year and embarked on a number of exciting new projects that will help us better understand our universe as well as support our critical national security interests around the world. One of the most exciting programs in the history of Ball Aerospace launched into space in January 2005, when the Deep Impact ﬂ yby spacecraft and smart impactor began their six-month journey to meet comet Tempel 1. Deep Impact and Tempel 1 are scheduled to meet on July Fourth, when the impactor is programmed to slam into the sunlit side of the comet’s surface. The collision will reveal what scientists believe is some of the oldest material in our solar system, which the ﬂ yby craft will analyze, as well as the resulting crater in Tempel 1. Other milestones reached by Ball Aerospace in 2004 include: • A Boeing/Ball Aerospace team was awarded a $189 million contract by the U.S. Air Force for the Space-Based Space Surveillance (SBSS) System. Ball Aerospace is responsible for the space segment including spacecraft bus and visible sensor payload. • In July, Ball Aerospace was selected for early stage development of an advanced sensor for the U.S. government’s next generation environmental satellite system. The Hyperspectral Environmental Suite, or HES, will ﬂ y on the Geostationary Operational Environmental Satellites (GOES-R) system, scheduled for a 2012 launch. • In December, Ball Aerospace delivered the High Resolution Imaging Science Experiment, or HiRISE, camera to Lockheed Martin Space Systems for integration into the Mars Reconnaissance Orbiter (MRO). The HiRISE instrument is expected to provide color stereo images of the Martian surface at six times higher resolution than any existing images. MRO will look for evidence of past or present water, study the climate record, and identify landing sites for future missions, including sample return and potential human exploration on Mars. It is scheduled for launch in August 2005 and to reach Mars in March 2006. Quilted crystal jelly jars introduced, 1965 Orbiting Solar Observatory-4 launch crew mating the satellite to a rocket, 1967 Ball acquired Jeffco Manufacturing, Golden, Colo., and entered metal beverage container business, 1969 Ball Brothers Corporation name changed to Ball Corporation, 1969 Ball-designed low-light-level camera for the Sea Sparrow missile system, 1972 8 Ball Aerospace & Technologies Corp., in association with the University of Maryland and the Jet Propulsion Laboratory (JPL), developed the Deep Impact ﬂ yby spacecraft, impactor spacecraft and science instruments to analyze the interior of comet Tempel 1 as the eighth mission in NASA’s Discovery Program. Spirit and Opportunity rovers exceeded their planned life span, sending images of Mars to Earth using Ball antennas and electronics. Ball Corporation Yesterday Ball stock ﬁ rst traded on New York Stock Exchange, 1973 Agricultural systems division formed, 1975 Unimark Plastics acquired, 1978 Ball begins making zinc penny blanks for U.S. Mint, 1981 Ball Aerospace completed the High Resolution Imaging Science Instrument (HiRISE) for NASA’s Mars Reconnaissance Orbiter (MRO), which will take high-resolution images of the Martian surface from orbit. Ball’s ﬁ rst Chinese beverage can joint venture, Guangzhou, 1986 9 Ball Corporation Yesterday B A L L C O R P O R AT I O N TO DAY Ball Packaging Products Canada, Inc., joint venture formed, 1988 Ball spins off seven smaller businesses, including home canning, to form Alltrista Corporation, 1993 Ball-built Corrective Optics Space Telescope Axial Replacement (COSTAR) installed on Hubble Space Telescope, ﬁ xes Hubble’s blurred vision, 1993 Ball, the Environment and Community Responsibility Ball Corporation recognizes the importance of protecting the environment. That’s why we put in place procedures that begin with ensuring compliance with environmental regulations and extend to signiﬁ cant recycling, waste minimization, energy conservation and environmental management programs. As an active member in several industry trade and recycling organizations, Ball provides funding and leadership in the development of recycling initiatives. Within our own plants, we recycle all scrap metal and plastic, secondary packaging such as pallets and plastic strapping and other materials used in day-to-day operations from paper to oil to batteries. Ball’s aluminum and steel containers are among the most environmentally friendly packaging containers and contain on average 40 percent recycled aluminum and 31 percent recycled steel. Ball’s Amazon HM® barrier PET bottle was recently awarded the “Champions of Change” award by the Association of Postconsumer Plastics Recyclers for being speciﬁ cally designed to be compatible with current recycling processes. Ball strives to help preserve natural resources by ﬁ nding new ways to conserve energy. We created an energy conservation team to identify and implement energy-saving opportunities within our facilities. Our metal beverage container plants, for example, have reduced temperatures in process curing ovens to reduce consumption of natural gas by approximately 30 million cubic feet annually, while maintaining strict product quality parameters. Ball’s metal food container plant in Springdale, Ark., is installing a heat recovery system that will reduce natural gas consumption by approximately 46 Heekin Can, Inc., acquired, 1993 percent. Our packaging plants have also been working on compressed air reductions to reduce electrical energy consumption and improved capture systems to reduce emissions. Those are only a few of the many actions we are taking as we strive to continue to be a good corporate citizen. Our goal is to reduce Ball’s environmental footprint even as we provide jobs to more than 13,200 people and create value for our shareholders and other key stakeholders. These are compatible goals, and we will remain focused on achieving them together. Ball starts up PET plastic container operations, 1994 10 In Poland, Ball Packaging Europe played a lead role in founding Recal, the Polish environmental trust fund. Recal launched a campaign called “Collect Cans – Protect the Environment” in popular vacation areas and organized 150 ecological workshops. Ball Corporation Yesterday Ball relocates corporate headquarters to Colorado, 1998 Our North American beverage can plant employees collected more than 23,000 pounds of used aluminum cans as part of our 2004 America Recycles Day campaign. Our plants recycle aluminum, steel and plastic every day as part of the manufacturing process. Reynolds Metals beverage can plants acquired, making Ball the largest beverage can maker in North America, 1998 Ball Packaging Europe formed with acquisition of Schmalbach- Lubeca beverage can assets, 2002 Ball employees participate in a variety of community activities, including volunteering to help build this Habitat for Humanity house in Colorado. The Spitzer Space Telescope, which uses a cryogenically cooled telescope built by Ball Aerospace, reveals ﬁ rst images, 2003 Ball celebrates quasquicentennial, 2005 11 B A L L C O R P O R AT I O N TO D AY — A N O V E R V I E W Pa c k a g i n g North American Products and Services Representative Customers Customer Products Two-piece aluminum beverage cans and easy-open beverage can ends for a variety of products; two-piece beverage can technology services and support; plastic containers in a variety of shapes and sizes; two- and three-piece steel food cans in a wide range of heights and diameters using draw-redraw, draw and ironed, and three-piece welded can technology; steel food can services and support Two-piece aluminum and steel beverage cans and easy-open beverage can ends for a variety of products; two-piece beverage can technology services and support; plastic containers for oil products International Ae r o s p a c e a n d Te c h n o l o g i e s Electro-optical and infrared sensors, spacecraft and data exploitation for governments, commercial space and science communities Allen Canning; Anheuser-Busch; Bush Brothers; Cadbury Schweppes; Campbell Soup; Canadian Fishing Company; Carriere; Cask; City Brewery; Coca-Cola; ConAgra; Cott; Dean Foods; Go Fast; Hansen’s; High Falls Brewing; Hirzel Canning Co.; Hormel; Icicle Seafoods; Kraft; Lakeport Brewing; Lakeside Foods; Masterfoods; Molson Coors; Monarch; Morgan Foods; National Beverage; Niebaum- Coppola; Nitro2Go; O-AT-KA; Pepsi-Cola; Red Gold; Rock Star; SABMiller; Safeway; Seneca Foods; Shasta; Sleeman; Strong Spirits LLC; Trident Seafoods; XS Energy A.S. Watson Group; AmBev; Anheuser-Busch; Bavaria N.V.; Cervejaria Petrópolis S.A.; Beijing Yanjing Brewery; Britvic (Pepsi); Coca-Cola; ExxonMobil Worldwide; Guangzhou Pepsi; Guinness; Heineken; Inbev; Kingsway Beer; Mahou/San Miguel; Molson Coors; SABMiller; San Miguel Group; Schweppes/Orangina; Tianjin Coke; Tingjin; Tsingtao; Wahaha BAE Systems; Boeing; Defense Advanced Research Projects Agency; DigitalGlobe; General Dynamics; Jet Propulsion Laboratory; NASA Ames Research Center; NASA Goddard Space Flight Center; NASA Langley Research Center; Lockheed Martin; National Air Intelligence Center; National Oceanic & Atmospheric Administration; Northrop Grumman; Ofﬁ ce of Naval Research; Raytheon; U.S. Air Force; U.S. Army; U.S. Coast Guard; U.S. Department of Defense; U.S. Marines; U.S. Navy Beer; soft drinks; energy drinks; juices; wine; nutritional supple- ments; fruits; vegetables; meats; seafoods; soups; pastas; pet foods; meal replacement drinks; dairy products Beer; soft drinks; energy drinks; juices; nutritional supplements; household products; personal care products; diary products; motor oil industry Spacecraft; sensors; instruments; satellite payloads; laser technologies; electro-optical systems; cameras; antennas; software; systems engineering; tracking systems; cryogenics; space-qualiﬁ ed components; engineering services Please note: These are brief descriptions and not complete lists. 12 M A N U FA C T U R I N G A N D A E R O S PA C E S E R V I C E S L O C AT I O N S NORTH AMERICA Richmond, BC Kent, WA Fairﬁ eld, CA Oakdale, CA Pasadena, CA Chino, CA Torrance, CA Kapolei, HI Baie d’Urfé, PQ Baldwinsville, NY Whitby, ON Burlington, ON Milwaukee, WI Findlay, OH Weirton, WV Saratoga Springs, NY Wallkill, NY Delran, NJ Watertown, WI DeForest, WI Ames, Iowa Boulder, CO Golden, CO Westminster, CO Broomﬁ eld, CO Colorado Springs, CO Monticello, IN Dayton, OH Columbus, OH Bristol, VA Chestnut Hill, TN Washington, D.C. Chantilly, VA Williamsburg, VA Reidsville, NC Kansas City, MO Albuquerque, NM Springdale, AR Fort Worth, TX Warner Robins, GA Eglin AFB, FL Conroe, TX Tampa, FL Guayama, PR EUROPE CHINA 2004 Net Sales Deeside, U.K. Wrexham, U.K. Rugby, U.K. Braunschweig, Germany Oss, the Netherlands Ratingen, Germany Radomsko, Poland Beijing Hubei Sanshui Hong Kong Tianjin Qingdao Taicang Shenzhen Bierne, France Hermsdorf, Germany BRAZIL Bonn, Germany Weissenthurm, Germany Hassloch, Germany Aerospace & Technologies – 12% International Packaging – 23% North American Packaging – 65% Salvador Net Sales by Year ($ in millions) Belgrade, Serbia La Ciotat, France Jacarei Metal beverage containers Aerospace Metal beverage ends Metal food containers Plastic containers Research facility Headquarters Joint venture Complete listings of our l ocations can be found on www.ball.com, www.ball-europe.com and www.ballaerospace.com. Locations shown here do not include sales ofﬁ ces. 5,440 4,977 3,707 3,665 3,686 3,859 2,996 1998 1999 2000 2001 2002 2003 2004 13 S E V E N-YE A R R E V I E W O F S E L E C T E D F I N A N C I A L DATA Ba ll Cor poration an d Subsidiaries ($ in millions, except per share amounts) 2004 2003 2002 2001 2000 1999 1998 Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,440.2 $ 4,977.0 $ 3,858.9 $ 3,686.1 $ 3,664.7 $ 3,707.2 $ 2,995.7 Earnings (loss) before cumulative effect of accounting change (1) . . . . . . . . . . . . . . 295.6 229.9 156.1 (99.2) 68.2 104.2 19.9 Cumulative effect of accounting change, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . Net earnings (loss) (1) . . . . . . . . . . . . . . . . . . . Preferred dividends, net of tax . . . . . . . . . . . . Earnings (loss) attributable to – 295.6 – – 229.9 – – 156.1 – – (99.2) (2.0) – 68.2 (2.6) – 104.2 (2.7) (3.3) 16.6 (2.8) common shareholders (1) . . . . . . . . . . . . . . $ 295.6 $ 229.9 $ 156.1 $ (101.2) $ 65.6 $ 101.5 $ 13.8 Return on average common shareholders’ equity . . . . . . . . . . . . . . . . . 31.2% 35.4% 31.3% (17.7)% 10.1% 16.2% 2.3% Basic earnings per share: (1)(2) Earnings (loss) before cumulative effect of accounting change (1) . . . . . . . . . . . . . $ 2.67 $ 2.06 $ 1.39 $ (0.92) $ 0.56 $ 0.84 $ 0.14 Cumulative effect of accounting change, net of tax . . . . . . . . . . . . . . . . . . . . . . . . – – – – – – (0.02) Basic earnings (loss) per share (1)(2) . . . . . . . . $ 2.67 $ 2.06 $ 1.39 $ (0.92) $ 0.56 $ 0.84 $ 0.12 Weighted average common shares outstanding (000s) (2) . . . . . . . . . . . . . . . . 110,846 111,710 112,634 109,759 116,160 120,681 121,552 Diluted earnings per share: (1)(2) Earnings (loss) before cumulative effect of accounting change (1) . . . . . . . . . . . . . $ 2.60 $ 2.01 $ 1.36 $ (0.92) $ 0.53 $ 0.79 $ 0.14 Cumulative effect of accounting change, net of tax . . . . . . . . . . . . . . . . . . . . . . . . – – – – – – (0.03) Diluted earnings (loss) per share (1)(2) . . . . . . $ 2.60 $ 2.01 $ 1.36 $ (0.92) $ 0.53 $ 0.79 $ 0.11 Diluted weighted average common shares outstanding (000s) (2) . . . . . . . . . . . 113,790 114,275 115,076 109,759 124,068 129,798 130,368 Property, plant and equipment additions . . . . Depreciation and amortization . . . . . . . . . . . Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . Total interest bearing debt and . . . . . . . . . . . capital lease obligations . . . . . . . . . . . . . . . Common shareholders’ equity . . . . . . . . . . . . Market capitalization (3) . . . . . . . . . . . . . . . . . Net debt to market capitalization (3) . . . . . . . . Cash dividends (2) . . . . . . . . . . . . . . . . . . . . . . Book value per share (2) . . . . . . . . . . . . . . . . . . Market value per share (2) . . . . . . . . . . . . . . . . Annual return to common shareholders (4) . . . Working capital . . . . . . . . . . . . . . . . . . . . . . . Current ratio . . . . . . . . . . . . . . . . . . . . . . . . . $ 196.0 $ 215.1 $ 4,477.7 $ 137.2 $ 205.5 $ 4,069.6 $ 158.4 $ 149.2 $ 4,132.4 $ 68.5 $ 152.5 $ 2,313.6 $ 98.7 $ 159.1 $ 2,649.8 $ 107.0 $ 162.9 $ 2,732.1 $ 84.2 $ 145.0 $ 2,854.8 $ 1,660.7 $ 1,086.6 $ 4,956.2 29.5% 0.35 $ $ 9.64 $ 43.98 48.8% $ 249.3 1.25 $ 1,686.9 $ 807.8 $ 3,359.1 49.1% 0.24 $ $ 7.17 $ 29.785 17.4% 62.4 $ 1.07 $ 1,981.0 $ 492.9 $ 2,904.8 59.3% 0.18 $ $ 4.35 $ 25.595 46.0% $ 155.6 1.15 $ 1,064.1 $ 504.1 $ 2,043.8 48.0% 0.15 $ $ 4.36 $ 17.675 55.3% $ 218.8 1.38 $ 1,137.3 $ 639.6 $ 1,292.0 86.0% 0.15 $ $ 5.70 $ 11.515 19.2% $ 310.2 1.47 $ 1,196.7 $ 655.2 $ 1,174.0 98.9% 0.15 $ $ 5.49 $ 9.845 (12.7)% $ 225.7 1.34 $ 1,356.6 $ 594.6 $ 1,393.3 94.9 0.15 $ $ 4.88 $ 11.44 31.4% $ 198.0 1.29 (1) Includes business consolidation activities and other items affecting comparability between years of pretax income of $15.2 million, $3.7 million and $2.3 million in 2004, 2003 and 2002, respectively, and pretax expense of $271.2 million, $76.4 million and $73.9 million in 2001, 2000 and 1998, respectively. Also includes expense of $15.2 million in 2004 reported within equity in results of afﬁ liates and $15.2 million and $5.2 million of debt reﬁ nancing costs in 2003 and 2002, respectively, reported as interest expense. Additional details about the 2004, 2003 and 2002 items are available in the company’s consolidated ﬁ nancial statements. (2) Amounts have been retroactively restated for two-for-one stock splits, which were effective August 23, 2004, and February 22, 2002. (3) Market capitalization is deﬁ ned as the number of common shares outstanding at year end, multiplied by the year-end closing price of Ball common stock. Net debt is total debt less cash and cash equivalents. (4) Change in stock price plus dividend yield assuming reinvestment of dividends. 14 S H A R E H O L D E R I N F O R M AT I O N Quarterly Stock Prices and Dividends to gain access to your account. If you need assistance, Quarterly prices for the company’s common stock, as reported please call EquiServe at 1-877-843-9327. on the composite tape, and quarterly dividends in 2004 and 2003 were: 2004 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter High . . . . . . . . . . . . . $ 34.43 $ 36.23 $ 38.30 $ 45.20 Low . . . . . . . . . . . . . . 28.255 30.20 34.12 35.81 Annual Meeting The annual meeting of Ball Corporation shareholders will be held to tabulate the votes cast and to report the results of voting on the matters listed in the proxy statement sent to all share- holders. No other business and no presentations are planned. The meeting to report voting results will be held on Wednesday, Dividends per share . . . .075 .075 .10 .10 April 27, 2005, at 9 a.m. (EST) at the Waldorf-Astoria Hotel, 2003 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter New York City. Annual Report on Form 10-K High . . . . . . . . . . . . . $ 28.425 $ 29.61 $ 27.555 $ 29.875 Copies of the Annual Report on Form 10-K for 2004, ﬁ led Low . . . . . . . . . . . . . . 24.275 22.635 21.15 26.60 Dividends per share . . . .045 .045 .075 .075 Amounts have been retroactively restated for a two-for-one stock by the company with the United States Securities and Exchange Commission, may be obtained by shareholders without charge by writing to the assistant corporate secretary, Ball Corporation, P.O. Box 5000, Broomﬁ eld, CO 80038-5000. split, which was effective August 23, 2004, and are presented on Transfer Agents a calendar basis. Quarterly Results and Company Information Quarterly ﬁ nancial information and company news EquiServe Trust Company, N.A. P.O. Box 43069 Providence, RI 02940-3069 are posted on www.ball.com. For investor relations Registrars call 303-460-3537. Purchase Plan A dividend reinvestment and voluntary stock purchase plan EquiServe Trust Company, N.A. P.O. Box 43069 Providence, RI 02940-3069 for Ball Corporation shareholders permits purchase of the Investor Relations company’s common stock without payment of a brokerage Ann T. Scott commission or service charge. Participants in this plan may Director, Investor Relations have cash dividends on their shares automatically reinvested at a 5 percent discount and, if they choose, invest by making Ball Corporation P.O. Box 5000 optional cash payments. Additional information on the plan Broomﬁ eld, CO 80038-5000 is available by writing EquiServe Trust Company, N.A., (303) 460-3537 Dividend Reinvestment Service, P.O. Box 43081, Providence, RI 02940-3081. The toll-free number is 1-800-446-2617, and the Web site is www.equiserve.com. You can access your Ball Corporation common stock account information on the Internet 24 hours a day, 7 days a week through EquiServe’s Web site at gateway.equiserve.com. You will need the issue number (3101), your account number, your password and your social security number (if applicable) Equal Opportunity Ball Corporation is an equal opportunity employer. 15 DI R E C T O R S A N D O F F I C E R S Directors (Standing, left to right) John F. Lehman Chairman of J.F. Lehman & Company of New York City George A. Sissel Retired chairman of the board of Ball Corporation Erik H. van der Kaay Retired chairman of the board of Symmetricom of San Jose, California Stuart A. Taylor II Chief executive ofﬁ cer of The Taylor Group L.L.C. of Chicago R. David Hoover Chairman of the board, president and chief executive ofﬁ cer of Ball Corporation Theodore M. Solso Chairman and chief executive ofﬁ cer of Cummins Inc. of Columbus, Indiana Company Officers Charles E. Baker General counsel and assistant corporate secretary Douglas K. Bradford Vice president and controller Hanno C. Fiedler Executive vice president, Ball Corporation; chairman and chief executive ofﬁ cer, Ball Packaging Europe Operations Executives Brian M. Cardno President, metal food container operations Jan Driessens President, Ball Packaging Europe (Seated, left to right) George M. Smart Retired president of Sonoco-Phoenix of Canton, Ohio Jan Nicholson President of The Grable Foundation of Pittsburgh Hanno C. Fiedler Executive vice president of Ball Corporation; chairman and chief executive ofﬁ cer of Ball Packaging Europe Howard M. Dean Retired chairman of the board of Dean Foods Company of Dallas Committees Audit Howard M. Dean Jan Nicholson Theodore M. Solso Erik H. van der Kaay Finance Hanno C. Fiedler R. David Hoover John F. Lehman Jan Nicholson George A. Sissel William P. Stiritz Stuart A. Taylor II Human Resources Howard M. Dean John F. Lehman Theodore M. Solso Stuart A. Taylor II Erik H. van der Kaay Nominating Howard M. Dean John F. Lehman Theodore M. Solso Stuart A. Taylor II Erik H. van der Kaay William P. Stiritz has been a director of Ball Corporation since 1983. He is chairman of Energizer Holdings, Inc., and Ralcorp Holdings, Inc., both of St. Louis. Mr. Stiritz is leaving our board in April 2005, having reached the corporation’s mandatory retirement age for directors. He is our current longest serving director and during his tenure his insights have been keen and his contributions to Ball Corporation have been many. The directors and ofﬁ cers of Ball Corporation extend to him their deepest thanks and very best wishes. John R. Friedery Senior vice president, Ball Corporation; chief operating ofﬁ cer, North American packaging John A. Hayes Vice president, corporate strategy, marketing and development R. David Hoover Chairman of the board, president and chief executive ofﬁ cer Larry J. Green President, plastic container operations Michael D. Herdman President, metal beverage container operations Scott C. Morrison Vice president and treasurer Raymond J. Seabrook Senior vice president and chief ﬁ nancial ofﬁ cer Harold L. Sohn Vice president, corporate relations David A. Westerlund Senior vice president, administration, and corporate secretary Terence P. Voce Chairman and chief executive ofﬁ cer, Ball Asia Paciﬁ c Limited David L. Taylor President and chief executive ofﬁ cer, Ball Aerospace & Technologies Corp. Director Emeritus John W. Fisher Chairman of the board emeritus; retired chairman, president and chief executive ofﬁ cer of Ball Corporation 16 A B O U T B A L L C O R P O R A T I O N Ball Corporation is a provider of metal and plastic packaging, primarily for beverages and foods, and of aerospace and other technologies and services to commercial and governmental customers. Founded in 1880, the company employs more than 13,200 people in 75 locations worldwide. Ball Corporation stock is traded on the New York Stock Exchange under the ticker symbol “BLL.” M I S S I O N A N D S T R A T E G I E S To be the premier provider to beverage, food and aerospace and technologies customers of the products and services that we offer as we aggressively manage our business, and to explore and pursue acquisitions, divestitures, strategic alliances and other changes that would beneﬁ t Ball’s shareholders. In packaging, our strategy is to leverage our superior continuous process improvement expertise in order to manufacture, market, sell and service high-quality, value-added products that meet the needs of high-volume and/or growing customer segments of the beverage, food and other markets. In aerospace and technologies, our strategy is to provide remote sensing systems and solutions to the aerospace and defense markets through products and services used to collect and interpret information needed to support national missions and scientiﬁ c discovery. . e c ﬁ f O . m T & . t a P . . S U . g e R , n o i t a r o p r o C l l a B f o s k r a m e d a r t e r a d n a l l a B 5 0 0 2 n o i t a r o p r o C l l a B © t h g i r y p o C F I N A N C I A L H I G H L I G H T S B a l l C o r p o r a t i o n a n d S u b s i d i a r i e s ($ in millions, except per share amounts) 2004 2003 Stock Performance Annual return to common shareholders (share price appreciation plus assumed reinvested dividends) . . . . . . . . 48.8% Closing market price per share (1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 43.98 Total market value of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,956 112,691 Shares outstanding at year end (000s) (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shares outstanding assuming dilution (000s) (1)(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,742 17.4% $ 29.79 $ 3,359 112,779 114,815 Operating Performance Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,440 435 Earnings before taxes (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Earnings before interest and taxes (EBIT) (3)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 539 296 Net earnings (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.67 Basic earnings per share (1)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Diluted earnings per share (1)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.60 0.35 Cash dividends per share (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Number of employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,220 (1) Amounts for 2003 have been retroactively restated for a two-for-one stock split, which was effective August 23, 2004. (2) Represents shares outstanding at year end plus the assumed exercise of options that are “in-the-money” at year end, less an estimate of shares that could be repurchased at the $ 4,977 320 $ 461 $ 230 $ 2.06 $ 2.01 $ $ 0.24 12,630 year-end market price of Ball stock using the assumed exercise proceeds. This measure is not the same as the diluted weighted average shares outstanding used in the calculation of diluted earnings per share. (3) Includes income of $15.2 million ($0.08 cents per diluted share) in 2004 and $3.7 million ($0.02 cents per diluted share) in 2003 related to the ﬁ nalization of various business consolidation and other activities. Also includes expense of $15.2 million ($0.13 cents per diluted share) in 2004 for a bad debt provision related to a minority-owned investment and $15.2 million ($0.09 cents per diluted share) in 2003 for debt reﬁ nancing costs. Additional details are available in the company’s consolidated ﬁ nancial statements. (4) Management utilizes earnings before interest and taxes (EBIT) as an internal measure for evaluating operating results and for planning purposes. EBIT is shown prior to interest expense of $103.7 million in 2004 and $141.1 million in 2003. This Summary Annual Report should be read in conjunction with the audited consolidated ﬁ nancial statements and other information contained in Ball Corporation’s Annual Report on 10-K for 2004 furnished with the Company’s Proxy Statement for the 2005 Annual Meeting of Shareholders. . d n I i , e c n u M , n o i t c e l l i o C e g a t i r e H a t s i r t e n n M e h T d n a y t i s r e v n U e t a t S i l l a B f o y s e t r u o c s o t o h p c i r o t s h e m o S i t r o p e R l a u n n A 4 0 0 2 | n o i t a r o p r o C l l a B E V O L U T I O N Ball Corporation 10 Longs Peak Drive Broomfield, CO 80021 (303) 469-3131 www.ball.com “Our Quasquicentennial Year”

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