Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Q4 2013 Earnings Presentation
21 slides from Ccl Industries Inc. Class A's earnings presentation, Feb 20, 2014
Slide 1: Investor Update 4th Quarter 2013 Review
CCL Industries Inc. Investor Update 4th Quarter 2013 Review February 20, 2014
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 - Fourth Quarter
Statement of Earnings Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 557.7 $ 313.5 +78% +72% Operating income* 72.2 38.6 +87% +81% Corporate expense 9.7 7.3 +33% 62.5 31.3 Finance cost, net 6.8 5.2 +31% 55.7 26.1 Restructuring and other
Slide 4: Statement of Earnings - Year Ended December
Statement of Earnings Year Ended December 31st (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 1,889.4 $ 1,308.6 +44% +41% Operating income* 252.2 178.4 +41% +38% Corporate expense 33.5 26.4 +27% 218.7 152.0 Finance cost, net 25.6 20.9 +22% 193.1 131.1 Restructuring and 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 2013 2012 Change 2013 2012 Change Net earnings - basic $ 0.58 $ 0.59 (2%) $ 3.04 $ 2.91 +4% Net loss from restructuring and other items 0.61 - 1.03 - Avery and DES finance costs - - 0.02 - Non-cash ac
Slide 6: Cash Flow Highlights
Cash Flow Highlights Periods Ended December 31st (Millions of Cdn$) Free Cash Flow* Statement of Cash Flows Twelve Months Ended December 31st 219.7 2013 2012 Net earnings $ 103.6 $ 97.5 Adjustments for: Depreciation & amortization 120.2 102.6 107.2 Net finance cost 25.6 20.9 Equity accounted investm
Slide 7: Cash & Debt Summary
Cash & Debt Summary As At December 31st (Millions of Cdn$) Increase 2013 2012 (Decrease) Senior Notes LTD (2013 - US$239.0MM, 2012 - US$319.0MM) $ 254.2 $ 317.4 $ (63.2) Non-revolving LTD (2013 - US$280.0MM and EUR61.6MM) 388.1 - 388.1 Revolving LTD (2013 - US$56.0MM) 59.6 - 59.6 Debt - all other 10
Slide 8: Segment Reporting Changes
Segment Reporting Changes • CCL Label now includes former “DES” operations in 4 market sectors – Healthcare & Specialty (includes one “DES” plant in North America) – Home & Personal Care (includes one “DES” plant in North America) – Food & Beverage – CCL Design (majority of “DES” business) • Avery…f
Slide 9: Capital Spending Highlights
Capital Spending Highlights Twelve Months Ended December 31st (Millions of Cdn$) Capital Divisions Spending Depreciation( 1 ) Difference Label $ 97.7 $ 92.3 $ 5.4 Container $ 6.0 14.1 (8.1) Avery $ 12.3 5.7 6.6 Corporate 0.1 0.3 (0.2) $ 116.1 $ 112.4 $ 3.7 (1) excludes amort izat ion of int angibles
Slide 10: Label
Label Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 361.6 $ 271.9 +33% +27% Operating income* $ 45.0 $ 36.9 +22% +16% Return on sales 12.4% 13.6% EBITDA* $ 71.5 $ 59.6 +20% +14% % of Sales 19.8% 21.9% The following commentary is based o
Slide 11: Label - North America
Label Fourth Quarter Ended December 31st (Millions of Cdn$) North America (45% of Label sales) • Healthcare & Specialty sector continued soft through Q4 (except AgChem); 5c EPS impact for Q4 and 15c EPS for 2013 • Home & Personal Care markets slow as reported by many customers but offset by strong s
Slide 12: Label - Europe
Label Fourth Quarter Ended December 31st (Millions of Cdn$) Europe (35% of Label sales) (incl Eastern Europe) • Healthcare & Specialty profitability improved on low single digit sales gains • Home & Personal Care again posted meaningful sales gains and significant profit improvement • Food & Beverag
Slide 13: Label - Emerging Markets
Label Fourth Quarter Ended December 31st (Millions of Cdn$) Emerging Markets (20% of Label sales) (Asia, Latin America, Australia & South Africa) • Strong double digit local currency sales gains in Latin America. Profitability increased markedly but held by further sequential FX deterioration in Bra
Slide 14: Label - Year Ended December
Label Year Ended December 31st (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 1,344.2 $ 1,126.9 +19% +16% Operating income* $ 195.3 $ 166.3 +17% +14% Return on sales 14.5% 14.8% EBITDA* $ 296.1 $ 254.4 +16% +13% % of Sales 22.0% 22.6% The following commentary is based on
Slide 15: Label Joint Ventures
Label Joint Ventures Periods Ended December 31st (Millions of Cdn$) Three Months Twelve Months Results at 100% 2013 2012 2013 2012 Sales $ 19.6 $ 17.6 $ 72.3 $ 61.6 Net income (loss) $ 1.6 $ 2.2 $ 3.7 $ 4.3 EBITDA $ 3.5 $ 3.8 $ 11.3 $ 10.3 % of Sales 17.9% 21.6% 15.6% 16.7% CCL equity share* $ 0.8 $
Slide 16: Avery
Avery Fourth Quarter/Six Months Ended December 31st (Millions of Cdn$) Q4 Six Months 2013 2013 Sales $ 153.8 $ 355.5 Operating income* $ 24.2 $ 40.4 Return on sales 15.7% 11.4% EBITDA* $ 27.6 $ 61.6 % of Sales 17.9% 17.3% • Very solid Q4 after strong seasonal “back-to-school” period in Q3 • Eliminat
Slide 17: Container
Container Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 42.3 $ 41.6 +2% (2%) Operating income* $ 3.0 $ 1.7 +76% +71% Return on sales 7.1% 4.1% EBITDA* $ 6.5 $ 5.2 +25% +22% % of Sales 15.4% 12.5% The following commentary is based on con
Slide 18: Container - Year Ended December
Container Year Ended December 31st (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 189.7 $ 181.7 +4% +1% Operating income* $ 16.5 $ 12.1 +36% +32% Return on sales 8.7% 6.7% EBITDA* $ 30.6 $ 25.8 +19% +15% % of Sales 16.1% 14.2% The following commentary is based on constant
Slide 19: Operating Income - Fourth Quarter
Operating Income* Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Label $ 45.0 $ 36.9 +22% +16% Avery 24.2 - - - Container 3.0 1.7 +76% +71% Operating income* $ 72.2 $ 38.6 +87% +81% Sales $ 557.7 $ 313.5 +78% +72% Return on sales 12.9% 12.3% EBI
Slide 20: Operating Income - Year Ended December
Operating Income* Year Ended December 31st (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Label $ 195.3 $ 166.3 +17% +14% Avery 40.4 - - - Container 16.5 12.1 +36% +32% Operating income* $ 252.2 $ 178.4 +41% +38% Sales $ 1,889.4 $ 1,308.6 +44% +41% Return on sales 13.3% 13.6% EBI
Slide 21: 2014 Outlook
2014 Outlook • Pleased with the acquisition integration and financial performance, particularly cash flow; Q1 slowest of the year seasonally for Avery • Restructuring now complete. Significant cost insurance to offset revenue trend at Avery, many growth opportunities at CCL Design • Container change