16 slides from Ccl Industries Inc. Class A's earnings presentation, Jul 31, 2015
Slide 1: Investor Update 2nd Quarter 2015
Investor Update 2nd Quarter 2015 July 31, 2015
Slide 2: 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 statements include a
Slide 3: Statement of Earnings
Statement of Earnings Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 721.5 $ 650.4 +11% +7% $ 1,427.4 $ 1,260.1 +13% +9% Operating income(1) 122.6 89.2 +37% +33% 239.7 177.7 +35% +31% Corporate expense 13.0
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended June 30th Three months Six months Per Class B Share 2015 2014 Change 2015 2014 Change Net earnings - basic $ 2.12 $ 1.61 +32% $ 4.09 $ 3.15 +30% Net loss from restructuring and other items - 0.02 0.02 0.04 Adjusted basic earnings(1) $ 2.12 $ 1.63 +30% $ 4.11
Slide 5: Cash Flow
Cash Flow Periods Ended June 30th (millions of CDN $) Free Cash Flow(2) $300.0 $240.6 $78.2 $60.9 Q2 2015 Q2 2014 LTM June 2015 LTM June 2014 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary June June (millions of CDN $) 2015 2014 Senior Notes LTD (US$239.0MM) $ 298.5 $ 255.0 Non-revolving LTD (US$218.0MM and EUR61.6MM) 358.0 367.5 Revolving LTD (US$17.0MM) 21.2 140.3 Debt - all other 18.1 11.8 Total debt 695.8 774.6 Less: Cash and cash equivalents (234.7) (208.3) Ne
Slide 7: Capital Spending
Capital Spending Six Months Ended June 30th 2015 Capital Divisions Spending Depreciation(*) Difference Label $ 79.7 $ 59.9 $ 19.8 Avery 8.7 5.8 2.9 Container 3.2 7.5 (4.3) Corporate - 0.2 (0.2) $ 91.6 $ 73.4 $ 18.2 (*) excludes amortization of intangibles and other assets • Label growth capital into
Slide 8: Label
Label Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 468.9 $ 423.8 +11% +8% $ 955.0 $ 847.5 +13% +10% Operating income(1) $ 71.9 $ 56.0 +28% +26% $ 153.8 $ 125.4 +23% +19% Return on Sales 15.3% 13.2% 16.1% 1
Slide 9: Label sales by geography and end market
Label Emerging Second Quarter Ended June 30th Markets 19% North America North America Europe (incl. Eastern Europe) 47% Europe 34% • Healthcare & Specialty • Solid sales growth and profits up on mix and solid improved profitability at sales growth; Ag-Chem & Healthcare & Specialty Label Sales by Geo
Slide 10: Label Joint Ventures
Label Joint Ventures Periods Ended June 30th Results at 100% Three months Six months (millions of CDN $) 2015 2014 2015 2014 Sales $ 25.2 $ 20.8 $ 48.5 $ 39.5 Net income (loss) $ 1.4 $ 1.9 $ 2.8 $ 2.1 EBITDA $ 3.9 $ 2.9 $ 7.5 $ 5.3 % of Sales 15.5% 13.9% 15.5% 13.4% CCL equity share (*) $ 0.7 $ 1.0
Slide 11: Avery
Avery Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 198.2 $ 174.2 +14% +6% $ 358.4 $ 307.1 +17% +10% Operating income(1) $ 45.3 $ 28.4 +60% +51% $ 71.8 $ 41.5 +73% +67% Return on Sales 22.9% 16.3% 20.0% 13.
Slide 12: Container
Container Periods ended June 30th Three months Change Six months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 54.4 $ 52.4 +4% (1%) $ 114.0 $ 105.5 +8% +3% Operating income(1) $ 5.4 $ 4.8 +13% +6% $ 14.1 $ 10.8 +31% +23% Return on Sales 9.9% 9.2% 12.4% 10.2% EB
Slide 13: Summary
Summary Periods ended June 30th Three months Change Six months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Label $ 71.9 $ 56.0 +28% +26% $ 153.8 $ 125.4 +23% +19% Avery 45.3 28.4 +60% +51% 71.8 41.5 +73% +67% NM Container 5.4 4.8 +13% +6% 14.1 10.8 +31% +23% Operatin
Slide 14: Outlook
Outlook • Avery will be challenged to match Q314 ‘back to school’: exiting certain lower margin binder categories • Orders and business outlook otherwise unchanged; comps tougher for 2H15 • C$ translation tailwind….further 8% decline to the US$ so far in Q3 • Most FX related price increases now impl
Slide 15: Questions
Questions Page 15
Slide 16: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated July 31, 2015 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 16