Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Q4 2011 Earnings Presentation
22 slides from Ccl Industries Inc. Class A's earnings presentation, Feb 23, 2012
Slide 1: 4th Quarter 2011 Review
CCL Industries Inc. Investor Update 4th Quarter 2011 Review February 23, 2012 1
Slide 2: Disclaimer
Disclaimer Disclaimer This presentation contains forward-looking information and forward-looking statements, as defined under applicable securities laws (hereinafter collectively referred to as “forward-looking statements”), that involve a number of risks and uncertainties. Forward-looking statement
Slide 3: Statement of Earnings - Fourth Quarter
Statement of Earnings Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 317.3 $ 281.3 +13% +13% Operating income * 35.4 30.4 +16% +17% Corporate expense 6.9 7.5 (8%) 28.5 22.9 Finance expense, net 5.2 6.0 (13%) 23.3 16.9 Restructuring & oth
Slide 4: Statement of Earnings - Year Ended
Statement of Earnings Year Ended December 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 1,268.5 $ 1,192.3 +6% +8% Operating income * 163.7 146.6 +12% +13% Corporate expense 24.8 22.2 +12% 138.9 124.4 Finance expense, net 21.4 25.3 (15%) 117.5 99.1 Restructuring & ot
Slide 5: Earnings per Class B Share
Earnings per Class B Share Periods Ended December 31st Three Months Twelve Months Per Class B Share 2011 2010 Change 2011 2010 Change Net earnings - basic $ 0.55 $ 0.41 +34% $ 2.54 $ 2.17 +17% Diluted earnings $ 0.54 $ 0.40 +35% $ 2.50 $ 2.13 +17% Restructuring & other items - loss $ (0.02) $ (0.01)
Slide 6: Cash Flow Highlights
Cash Flow Highlights Periods Ended December 31st (Millions of Cdn$) Free Cash Flow 92.2 87.0 Statement of Cash Flows Twelve Months Ended December 31st 2011 2010 Net earnings $ 84.1 $ 71.1 Adjustments for: Depreciation & amortization 100.2 95.4 Net finance cost 21.4 25.3 Current income tax expense 31
Slide 7: Cash & Debt Summary
Cash & Debt Summary As At December 31st (Millions of Cdn$) Increase 2011 2010 (Decrease) Long-term debt - senior notes (2011 - US$ 328.4 MM, 2010 - US$ 397.7 MM) $ 333.9 $ 395.6 $ (61.7) Debt - all other 20.1 26.3 (6.2) Total debt 354.0 421.9 (67.9) Less: Cash and cash equivalents (140.7) (173.2) 32
Slide 8: Capital Spending Highlights
Capital Spending Highlights Year Ended December 31st, 2011 (Millions of Cdn$) Capital (1) Divisions Spending Depreciation Difference Label $ 74.8 $ 71.8 $ 3.0 Container 3.1 14.2 $ (11.1) Tube 3.3 7.4 $ (4.1) Corporate 0.2 0.4 $ (0.2) Disposals (2.2) - $ (2.2) $ 79.2 $ 93.8 $ (14.6) • Planned 2012 pr
Slide 9: Label - Fourth Quarter
Label Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 254.2 $ 225.7 +12.6% +13% Operating income $ 31.0 $ 28.6 +8.4% +8% Return on sales 12.2% 12.7% EBITDA * $ 51.4 $ 47.4 +8.4% +8% % of Sales 20.2% 21.0% The following commentary is based
Slide 10: Label - North America
Label Fourth Quarter Ended December 31st 2011 (Millions of Cdn$) North America (37% of sales) • Strong double digit growth rate in Healthcare resulted in significant profit gains; particularly in our Canadian operations. • Specialty business was up slightly on good promotions business but Ag-Chem ma
Slide 11: Label - Europe
Label Fourth Quarter Ended December 31st 2011 (Millions of Cdn$) Europe (41% of sales) (inc Eastern Europe) • High single digit HPC sales growth on new launch activity; restructuring underway at loss making French operation. • Double digit Healthcare & Specialty sales increases particularly in Ag- C
Slide 12: Label - Emerging Markets
Label Fourth Quarter Ended December 31st 2011 (Millions of Cdn$) Emerging Markets (22%) (Asia, Latin America, Australia & South Africa) • Strong double digit sales growth in Latin America; profit gains trimmed by devaluation of the peso in Mexico. Very strong growth in Brazil, particularly in Sleeve
Slide 13: Label - Year Ended December 31st
Label Year Ended December 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 1,012.3 $ 955.1 +6.0% +7% Operating income* $ 142.5 $ 142.3 +0.1% +1% Return on sales 14.1% 14.9% EBITDA* $ 220.3 $ 215.6 +2.2% +3% % of Sales 21.8% 22.6% The following commentary is based on co
Slide 14: Label Joint Ventures
Label Joint Ventures Periods Ended December 31st (Millions of Cdn$) Three Months Twelve Months Results at 100% 2011 2010 2011 2010 Sales $ 19.7 $ 13.2 $ 39.3 $ 38.6 Net Income $ 2.8 $ (0.3) $ 2.4 $ 1.0 EBITDA $ 3.9 $ 0.4 $ 4.9 $ 2.2 % of Sales 19.8% 3.0% 12.5% 5.7% CCL Equity Share* $1.4 ($0.1) $1.2
Slide 15: Container - Fourth Quarter
Container Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 42.4 $ 38.4 +10.4% +12% Operating income* $ 1.7 $ 0.2 n.m. n.m. Return on sales 4.0% 0.5% EBITDA* $ 5.3 $ 3.6 +47.2% +56% % of Sales 12.5% 9.4% The following commentary is based on
Slide 16: Container - Year Ended
Container Year Ended December 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 175.7 $ 162.4 +8.2% +11% Operating income* $ 9.2 $ (4.5) n.m. n.m. Return on sales 5.2% (2.8%) EBITDA* $ 23.4 $ 9.4 +148.9% +162% % of Sales 13.3% 5.8% The following commentary is based on c
Slide 17: Tube - Fourth Quarter
Tube Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 20.7 $ 17.2 +20.3% +19% Operating income* $ 2.7 $ 1.6 +68.8% +65% Return on sales 13.0% 9.3% EBITDA* $ 4.8 $ 3.4 +41.2% +37% % of Sales 23.2% 19.8% The following commentary is based on
Slide 18: Tube - Year Ended
Tube Year Ended December 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 80.5 $ 74.8 +7.6% +12% Operating income* $ 12.0 $ 8.8 +36.4% +42% Return on sales 14.9% 11.8% EBITDA* $ 19.4 $ 16.3 +19.0% +24% % of Sales 24.1% 21.8% The following commentary is based on constan
Slide 19: Operating Income - Fourth Quarter
Operating Income* Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Label $ 31.0 $ 28.6 +8% +8% Container 1.7 0.2 n.m. n.m. Tube 2.7 1.6 +69% +65% Operating income* 35.4 30.4 +16% +17% Corporate expense 6.9 7.5 (8%) 28.5 22.9 Finance expense, net 5
Slide 20: Operating Income - Year Ended
Operating Income* Year Ended December 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Label $ 142.5 $ 142.3 +0% +1% Container 9.2 (4.5) n.m. n.m. Tube 12.0 8.8 +36% +42% Operating income* 163.7 146.6 +12% +13% Corporate expense 24.8 22.2 +12% 138.9 124.4 Finance expense, net
Slide 21: Dividend Increase
Dividend Increase • Annual dividend increased 11% to 78 cents from 70 cents per Class B non-voting share. • Pro-forma dividend yield of 2.3% based of Feb 22nd, closing price. • Dividend History – 30th straight year of dividends without omission or reduction – 6th consecutive year of dividend increas
Slide 22: Summary & Outlook
Summary & Outlook • Many customers reported flat to down organic growth rates for Q4 in developed economies, particularly in Europe. • Current orders at CCL remain solid; consistent with Q4 levels but compared to a strong first quarter in 2011. • Input cost inflation has stabilized and receded in so