21 slides from Ccl Industries Inc. Class A's earnings presentation, May 7, 2009
Slide 1: Investor Update: First Quarter 2009 Review
building on our strengths Investor Update First Quarter 2009 Review Thursday, May 7, 2009
Slide 2: Disclaimer
Disclaimer Any forward-looking statements contained in this presentation, including statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. For
Slide 3: Statement of Earnings
Statement of Earnings First Quarter Ended March 31st (Millions of Cdn $) Excluding currency 2009 2008 Change translation 1) Sales $ 314.1 $ 295.1 +6.4% (3%) Operating Income 39.3 42.7 (8.0%) 2) Corporate Expense (4.4) (2.4) +83.3% 34.9 40.3 3) Interest expense, net 8.2 4.2 +95.2% 26.7 36.1 4) Restru
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended March 31st Per Class B Share 2009 2008 change Net earnings - Basic $ 0.52 $ 0.85 (39%) Diluted earnings $ 0.51 $ 0.82 (38%) Net (loss) gain from restructuring & other items and favourable tax adjustments $ (0.04) $ 0.05 Adjusted Basic Earnings $ 0.56 $ 0.80 (
Slide 5: Impact of Changes in Exchange Rates
Impact of Changes in Exchange Rates Currency Translation: 1Q 2009 – U.S. dollar averaged $1.25 vs. $1.00 in 2008 for the quarter (up 24%) and euro was $1.62 vs. $1.50 same quarter last year (up 8%) and U.K. pound was down 10%. Currency Transactions: 1Q 2009 - Canadian Container operations sells the
Slide 6: Balance Sheet (selected items) As At March 31st
Balance Sheet (selected items) As At March 31st (Millions of Cdn $, except Book Value per Share) 2009 2008 Change 1) Net working capital (receivables, inventory, prepaids, taxes receivable, payables, $ 53.6 $ 43.5 +23.2% accruals and taxes payable) Property, plant & equipment (net) $ 848.9 $ 699.7 +
Slide 7: Debt Summary As At March 31st
Debt Summary As At March 31st (Millions of Cdn $) Increase 2009 2008 (Decrease) Long-term debt - senior notes (2009 - US$ 447.5 MM, 2008 - US$ 326.8 MM) $ 564.4 $ 335.5 $ 228.9 Long-term debt - all other 46.7 131.0 (84.3) Total debt 611.1 466.5 144.6 Cash and cash equivalents (106.9) (156.2) 49.3 Ne
Slide 8: Cash Flow Highlights Three Months Ended March 31st
Cash Flow Highlights Three Months Ended March 31st (Millions of Cdn $) Inflows (Outflows) 2009 2008 Net earnings $ 16.8 27.5 Depreciation and amortization 24.6 19.1 1) Net change in non-cash working capital (35.7) 45.5 Additions to property, plant & equipment (36.5) (52.2) Dividends (4.9) (4.6) Norm
Slide 9: Capital Spending Highlights Three Months Ended March 31st, 2009
Capital Spending Highlights Three Months Ended March 31st, 2009 (Millions of Cdn $) Capital * Divisions Spending Depreciation Difference Label $ 32.7 $ 17.0 $ 15.7 Container 0.7 3.6 $ (2.9) Tube 3.1 2.4 $ 0.7 Corporate - 0.1 $ (0.1) $ 36.5 $ 23.1 $ 13.4 * excludes amortization of intangibles and oth
Slide 10: Income From Operations First Quarter Ended March 31st
Income From Operations First Quarter Ended March 31st (Millions of Cdn $) 2009 2008 Change Label $ 39.1 $ 37.2 +5.1% Container (0.3) 5.4 n.m. Tube 0.5 0.1 n.m. Operating income 39.3 42.7 (8.0%) 1) Corporate expense (4.4) (2.4) +83.3% 34.9 40.3 (13.4%) 2) Interest expense (net) (8.2) (4.2) +95.2% Ear
Slide 11: Sales by Division (Q1 2009 vs. Q1 2008)
Sales by Division (Q1 2009 vs. Q1 2008) First Quarter Ended March 31st Acquisitions Organic FX & Disposals Total Label (3%) +9% +2% +8% Container (17%) +16% (7%) (8%) Tube (5%) +23% - +18% Total (4%) +9% +1% +6% • Comparatives impacted by acquisitions – CD-Design (February 2008), Clear Image (April
Slide 12: Label
Label First Quarter Ended March 31st (Millions of Cdn $) Excl. currency 2009 2008 Change translation Sales $ 257.5 $ 237.9 +8.2% (1%) Operating income $ 39.1 $ 37.2 +5.1% Return on sales 15.2% 15.6% EBITDA $ 57.4 $ 52.2 +10.0% % of Sales 22.3% 21.9% • Sales fell 3% in Q1 excluding currency translati
Slide 13: Label: North America
Label First Quarter Ended March 31st (Millions of Cdn $) North America (42% of sales) • Sales were virtually flat in local currencies. Profits improved on excellent cost controls and richer mix and remain above the Division's average • Soft market conditions in the Home and Personal Care (HPC) secto
Slide 14: Label: Europe
Label First Quarter Ended March 31st (Millions of Cdn $) Europe (43% of sales) • Q1 Sales fell mid single digits in local currencies excluding acquisitions but coming after an unusually strong Q4 • Healthcare & Specialty sales were up low single digits after a bumper Q4, margins were down slightly d
Slide 15: Label: Emerging Market Sales
Label First Quarter Ended March 31st (Millions of Cdn $) Emerging Market Sales (15% of sales) • Sales in local currencies to HPC and Beverage customers in Asia rose well into double digits with meaningful profit improvement • Sales to Battery customers located in Asia (predominantly for export) fell
Slide 16: Label Outlook
Label First Quarter Ended March 31st (Millions of Cdn $) Outlook • Business levels in North America appear to show early signs of stabilizing. • The situation in Europe is very mixed with the consumer side soft, and our Healthcare, Specialty and Sleeve businesses holding up • Emerging Markets contin
Slide 17: Container
Container First Quarter Ended March 31st (Millions of Cdn $) Excl. currency translation 2009 2008 Change & divestiture Sales $ 38.1 $ 41.5 (8.2%) (17%) Operating income $ (0.3) $ 5.4 n.m. Return on sales (0.8%) 13.0% EBITDA $ 3.3 $ 7.8 (57.7%) % of Sales 8.7% 18.8% • Sales excluding currency transla
Slide 18: Container
Container First Quarter Ended March 31st (Millions of Cdn $) • Canadian plant performance continued to improve and the plant posted a small profit for the quarter, aided by a $600k positive impact from the stronger US$ • Sales at our US operation significantly impacted by slow personal care market m
Slide 19: Container Outlook
Container First Quarter Ended March 31st (Millions of Cdn $) Outlook • Sales outlook in the United States improved slightly for Q2 driven by beverage volumes • New major aerosol contract will commence July 09, equal to a 15% increase in the Division's revenue: positive impact in the 2nd half of 2009
Slide 20: Tube
Tube First Quarter Ended March 31st (Millions of Cdn $) Excl. currency 2009 2008 Change translation Sales $ 18.5 $ 15.7 +17.8% (5%) Operating income $ 0.5 $ 0.1 Return on sales 2.7% 0.6% EBITDA $ 2.9 $ 1.8 +61.1% % of Sales 15.7% 11.5% • Sales fell 3.4% in the United States due to a soft Personal Ca
Slide 21: Tube Outlook
Tube First Quarter Ended March 31st (Millions of Cdn $) Outlook • Order intake continues to be stable • Focus remains on improving profit margins to acceptable levels 20