Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Merger or Acquisition (April 2005)
22 slides from Ccl Industries Inc. Class A's merger presentation, Apr 20, 2005
Slide 1: CCL – Pure Packaging Play
CCL – Pure Packaging Play April 20, 2005
Slide 2: CCL Participants
CCL Industries Inc. CCL Participants Donald Lang Steven Lancaster President & Executive Vice President Chief Executive Officer & Chief Financial Officer 2
Slide 3: Disclaimer
CCL Industries Inc. DISCLAIMER Any forward-looking statements contained in this presentation involve risks, uncertainties and assumptions and should not be taken as guarantees of future performance. Actual results could vary materially from those anticipated in forward-looking statements. 3
Slide 4: Agenda
CCL Industries Inc. Agenda h Transaction Highlights h Q1 Update h 2005 Annual Earnings Considerations h Organizational Matters h CCL – Pure Packaging Play h Comparable Packaging Players h Q&A 4
Slide 5: Introduction
CCL Industries Inc. Introduction h CCL has entered into a definitive agreement with KCP Income Fund to sell its North American Custom Manufacturing Business for gross proceeds of US $215 million (C $264 million @$1.23) h CCL emerges as a specialty packaging concern with a focus on its high growth La
Slide 6: Divestiture Summary
CCL Industries Inc. Divestiture Summary h Sale Price: US $215 million (C $264 million) h Sale Multiple: 7.5x normalized 2004 EBITDA h Purchaser: KCP Income Fund (KCP.UN) h Consideration: Cash on closing h Conditions: Regulatory approval [and KCP financing completion] h Timing: Anticipated closing –
Slide 7: Proceeds / Gains
CCL Industries Inc. Proceeds / Gains Proceeds and Estimated Gain on Disposition ($millions) ($1 US = $1.23 CDN) U.S. CDN. Gross Proceeds $215 $264 Gain on Disposal (after-tax) 82 101 Cash Generated Net of Tax $192 $236 Gain on Disposal per B Share - estimated $3.00 7
Slide 8: Precedent Transactions EV / LTM EBITDA
CCL Industries Inc. Precedent Transactions 9.0x 6.0x EV / LTM EBITDA 8.2x 7.5x 7.4x 7.5x 3.0x 5.8x 0.0x (1) (2) Onex / Cosmetic Ares Management / Packaging Average Packaging Average CUSTOM Essence Marietta 2004 2003 Enterprise Value $245 $150 n/a n/a $215 Source: BMO Nesbitt Burns 1. Consists of 5 t
Slide 9: Use of Proceeds
CCL Industries Inc. Use of Proceeds Label Division Focus Target criteria: Acquisition(s) EBITDA multiple < 6x Accretive to Earnings US $120 million 6.66% Sale Sale to KCP to KCP Income Senior Unsecured Debt Repayment Notes maturing March Income Fund Fund 2006 to be repaid at Custom maturity
Slide 10: Q1 Update
CCL Industries Inc. Q1 Update h All divisions experiencing sales and operating income improvements over Q1/04 h E.P.S. in Q1/05 should continue sequential improvement above the record $0.50 earned in Q4/04 before unusual items (Q1/04 was $0.46) h Q1/05 should be a record quarter for CCL before unusu
Slide 11: 2005 Annual Earnings Consideration – ex Unusual Items
CCL Industries Inc. 2005 Annual Earnings Consideration – ex Unusual Items 2004 Full Year EPS before Unusual Items $1.78 h Positive Developments: Very strong first quarter 2005 results - to be released May 5th particularly in personal care segment Container demand unabated; profitability improv
Slide 12: Organizational Matters
CCL Industries Inc. Organizational Matters h Donald Lang, Vice Chairman and C.E.O. Donald Lang, formerly President and Chief Executive Officer, with this sale will be appointed Vice Chairman of the Corporation and Chief Executive Officer h Geoffrey Martin, President and C.O.O. Geoffrey Martin, f
Slide 13: New CCL at a Glance
CCL Industries Inc. New CCL AT A GLANCE (All amounts in C$ millions) ¾ World-Class Specialty Packaging company headquartered in Toronto 2 divisions: Label and Container 40% equity interest in ColepCCL ¾ Pro-Forma CCL: Year ended Dec 31, 2004 excluding Custom Manufacturing North America $913.9
Slide 14: New CCL at a Glance – A Global Player
CCL Industries Inc. New CCL AT A GLANCE – A Global Player Geographic Sales - 2005E Pro Forma Asia Canada 1% 13% Europe 42% U.S./Mexico/Puerto Rico 44% Geographic Sales - 2004A Asia 0.4% Canada Europe 20.9% 23.7% Label: 32 ColepCCL: 6 Container: 6 U.S./Mexico/Puerto Rico 55.0% 14
Slide 15: New CCL at a Glance – Historical Financials
CCL Industries Inc. NEW CCL AT A GLANCE – Historical Financials(1) 2004 Sales: 2004 EBITDA: 2004 EBIT(2): $913.9 million $128.8 million $74.5 million Container Container Container 21% 23% 26% Label 56% ColepCCL Label 13% 61% ColepCCL Label ColepCCL 13% 66% 21% $913.9 $883.8 $843.9 $822.8 $82.8 $62.2
Slide 16: Focus on Core Businesses 2000-2005
CCL Industries Inc. FOCUS ON CORE BUSINESSES 2000-2005 Acquired Core Businesses h Europe & Asia Contract Manufacturing and Metal Packaging JV (COLEP CCL) Decorative Labels (Jarvis Porter) Food & Beverage Labels (CCL- (CCL-Pachem JV) Healthcare Labels (Avery) Outcome Thailand P.C. Label bus
Slide 17: Characteristics of our Core Businesses
CCL Industries Inc. Characteristics of our Core Businesses h Strong customer relationships with key global accounts h Experienced management team h Leadership or near leadership market positions h World class manufacturing facilities h Innovative products with above average margins h Technology lead
Slide 18: Label
CCL Industries Inc. Label h Description h Recent Events Converter of self adhesive, shrink February 2005: CCL acquires film, in mold and expanded Steinbeis, European converter of content label products battery and decorative labels Focus on multinational companies July 2004: CCL realigns Can
Slide 19: Container Division / Aluminum and Plastic
CCL Industries Inc. Container Division / Aluminum and Plastic h Description h Recent Events Aluminum business supplies March 2005: Molson picks CCL’s aluminum aerosol cans, aluminum award-winning aluminum bottle bottles and specialty containers for new “Kick” brew Plastic business supplies co-
Slide 20: ColepCCL
CCL Industries Inc. ColepCCL h Description h Recent Events European contract January 2005: ColepCCL manufacturer and producer of announces shut-down of redundant steel and plastic cans Madrid plant for mid-2005 Prior to July 2004, CCL owned July 2004: CCL invests $24 million 100% of the Germ
Slide 21: EV / 2005 EBITDA Comparable Company Analysis
CCL Industries Inc. Comparable Company Analysis 12.0x Rigid Packaging Flexible Packaging Median : 7.0x Median : 7.5x 10.0x 9.9x 8.8x 8.0x 7.5x 7.5x 7.5x 7.2x EV / 2005 EBITDA 6.8x 7.1x 6.9x 6.4x 6.0x 5.2x 4.0x 2.0x 0.0x Aptar Ball Corp Crown Owens- Silgan Anchor Avery Winpak Pactiv Bemis Sonoco Grou
Slide 22: Conclusion
CCL Industries Inc. Conclusion h The divestiture of CCL’s N.A. Custom manufacturing business: Repositions CCL as a “pure-play” specialty packager more comparable to other public packaging companies Supports organic reinvestment and acquisitions Reprioritizes resources to value-maximizing opp