17 slides from Ccl Industries Inc. Class A's earnings presentation, Aug 4, 2016
Slide 1: Investor Update 2nd Quarter 2016
Investor Update 2nd Quarter 2016 August 4, 2016
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information and forward-looking statements (hereinafter collectively referred to as “forward-looking statements”), as defined under applicable securities laws, that involve a number of risks and uncertainties. Forward-looking statements include a
Slide 3: Statement of Earnings
Statement of Earnings Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 960.2 $ 721.5 +33% +30% $ 1,827.0 $ 1,427.4 +28% +23% Operating income(1) 143.1 122.6 +17% +14% 293.0 239.7 +22% +18% Corporate expense 14
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended June 30th Tw Three months Six months M Per Class B Share 2016 2015 Change 2016 2015 Change Net earnings - basic $ 2.06 $ 2.12 (3%) $ 4.63 $ 4.09 +13% Net loss from restructuring and other items 0.74 - 0.82 0.02 Adjusted basic earnings(1) $ 2.80 $ 2.12 +32% $
Slide 5: Cash Flow
Cash Flow Periods Ended June 30th (millions of CDN $) $300.0 Free Cash Flow(2) $215.8 $78.2 $14.7 Q2 2016 Q2 2015 LTM June 2016 LTM June 2015 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary June December (millions of CDN $) 2016 2015 Senior Notes LTD (US$129.0MM) due 2018 $ 166.6 $ 330.8 Revolving LTD (US$922.3MM, EUR73.6MM and GBP70.0MM) 1,417.6 653.9 Debt - all other 109.7 20.8 Total debt 1,693.9 1,005.5 Less: Cash and cash equivalents (421.7) (405.7) Net debt $ 1
Slide 7: Capital Spending
Capital Spending Six Months Ended June 30th, 2016 Capital Divisions Spending Depreciation(*) Difference Label $ 118.4 $ 68.7 $ 49.7 Avery 12.0 6.4 5.6 Checkpoint 1.1 2.3 (1.2) Container 14.1 7.4 6.7 Corporate - 0.2 (0.2) $ 145.6 $ 85.0 $ 60.6 (*) excludes amortization of intangibles and other assets
Slide 8: Label
Label Periods Ended June 30th (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 604.0 $ 468.9 +29% +26% $ 1,226.3 $ 955.0 +28% +24% Adj. operating income(*) $ 91.3 $ 71.9 +27% +25% $ 195.2 $ 153.8 +27% +22% Return on Sales 15.1% 15.3% 15.9% 16.1% EBITDA(1) $ 128.8 $ 103.3
Slide 9: Label
Label Emerging Second Quarter Ended June 30th Markets 23% North America North America Europe (incl. Eastern Europe) 43% Europe 34% • Solid Healthcare results & • Healthcare & Specialty good recovery in Specialty, sales solid, profits up on especially Ag-Chem operational improvement Label Sales by Ge
Slide 10: Label Joint Ventures
Label Joint Ventures Periods Ended June 30th Results at 100% Three months Six months (millions of CDN $) 2016 2015 2016 2015 Sales $ 30.5 $ 25.2 $ 58.0 $ 48.5 Net income $ 2.6 $ 1.4 $ 5.0 $ 2.8 EBITDA $ 5.3 $ 3.9 $ 10.0 $ 7.5 % of Sales 17.4% 15.5% 17.2% 15.5% CCL equity share (*) $ 1.4 $ 0.7 $ 2.6
Slide 11: Avery
Avery Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 207.4 $ 198.2 +5% +0% $ 387.0 $ 358.4 +8% +2% Operating income(1) $ 50.6 $ 45.3 +12% +6% $ 86.0 $ 71.8 +20% +14% Return on Sales 24.4% 22.9% 22.2% 20.0% E
Slide 12: Checkpoint
Checkpoint Periods ended June 30th Seven weeks Change (millions of CDN $) 2016 2015 Reported Ex FX Sales $ 92.6 $ - n.m n.m Adj. operating income(*) $ 9.9 $ - n.m n.m Return on Sales 10.7% - EBITDA(1) $ 13.2 $ -- n.m n.m - % of Sales 14.3% - * Adj. operating income = operating income (1) excluding $
Slide 13: Container
Container Periods ended June 30th Three months Change Six months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 56.2 $ 54.4 +3% +5% $ 121.1 $ 114.0 +6% +5% Operating income(1) $ 7.9 $ 5.4 +46% +48% $ 18.5 $ 14.1 +31% +31% Return on Sales 14.1% 9.9% 15.3% 12.4% E
Slide 14: Summary
Summary Periods ended June 30th Three months Change Six months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Label ** $ 89.3 $ 71.9 +24% +23% $ 193.2 $ 153.8 +26% +22% Avery 50.6 45.3 +12% +6% 86.0 71.8 +20% +14% NM Container 7.9 5.4 +46% +48% 18.5 14.1 +31% +31% Check
Slide 15: Outlook
Outlook • Order levels continue at 1H16 rates • Expect Label & Container organic growth rates to moderate: tough comps for 2H16 • CCL Design seasonality in Electronics to come • Expect modest Avery Q3 results decline, modest Q4 gain and flat +/- 2016 sales growth, margin expansion driving profit gai
Slide 16: Questions
Questions Page 16
Slide 17: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated June 30, 2016 for definition (2) Free Cash Flow from Operations (non-IFRS measure) = cash from operating activities less capital expenditures, net of proceeds from sale of property, plant and equipment Page 17