19 slides from Ccl Industries Inc. Class A's earnings presentation, May 9, 2017
Slide 1: Investor Update 1st Quarter 2017
Investor Update 1st Quarter 2017 May 9, 2017
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 March 31st Three months Change (millions of CDN $) 2017 2016 Reported Ex FX Sales $ 1,061.5 $ 866.8 +22% +27% Operating income(1) 158.9 149.9 +6% +11% Corporate expense 13.5 10.8 145.4 139.1 Finance cost, net 14.6 7.9 130.8 131.2 Restructuring and other items 7.4
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended March 31st Tw Three months Mo Per Class B Share 2017 2016 Change Net earnings - basic $ 2.50 $ 2.57 (3%) Net loss from restructuring and other items 0.17 0.08 Non-cash acquistion accounting adjustment related to finished goods inventory 0.18 - Adjusted basic
Slide 5: Cash Flow
Cash Flow Periods Ended March 31st (millions of CDN $) Free Cash Flow from Operations(2) $334.0 $279.3 $(54.7) $(50.0) Q1 2017 Q1 2016 LTM March 2017 LTM March 2016 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary March December (millions of CDN $) 2017 2016 Revolving LTD (US$385.6MM, €245.2MM, £70.0MM and C$337.0MM) $ 1,315.4 $ 756.6 Bond (US$500.0MM) due 2026 665.9 671.4 Two-year Term Facility (US$450.0MM) 599.3 - Senior Notes LTD (US$129.0MM) due 2018 171.8 173.2 Debt - all other 1.7 0.
Slide 7: Capital Spending
Capital Spending Three Months Ended March 31st Capital Depreciation & Divisions Spending Amortization Difference CCL $ 93.7 $ 39.5 $ 54.2 Avery 7.2 3.9 3.3 Checkpoint 2.9 7.4 (4.5) Innovia 0.8 2.7 (1.9) Container 7.2 3.7 3.5 Corporate - 0.2 (0.2) $ 111.8 $ 57.4 $ 54.4 • Part offset by $3.0 million d
Slide 8: 2017 Segment Reporting
2017 Segment Reporting • No change at Avery, Checkpoint & Container • New segment: Innovia: Films operations only, includes two legacy CCL operations (see below for Innovia Security) • CCL Label segment is renamed: CCL and includes… 1. CCL Label: Home & Personal Care 2. CCL Label: Healthcare & Speci
Slide 9: CCL
CCL Periods Ended March 31st Three months Change (millions of CDN $) 2017 2016 Reported Ex FX Sales $ 673.1 $ 622.3 +8% +13% Adj. operating income(*) $ 114.4 $ 103.9 +10% +15% Return on Sales 17.0% 16.7% EBITDA(1) $ 153.9 $ 142.6 +8% +13% - - % of Sales 22.9% 22.9% *For the three-month periods endin
Slide 10: CCL
CCL Periods ended March 31st CCL Label CCL Design CCL Secure • Home & Personal Care label sales up • Robust Automotive • Good quarter in slightly in the U.S., stronger in Europe growth, especially in the U.S. & Emerging Markets (except Brazil) in Germany…. line with customers • One month’s . • …but
Slide 11: CCL Joint Ventures
CCL Joint Ventures Periods Ended March 31st Results at 100% Three months (millions of CDN $) 2017 2016 Sales $ 30.5 $ 27.4 Net income $ 2.2 $ 2.3 EBITDA $ 5.0 $ 4.7 % of Sales 16.4% 17.2% CCL equity share (*) $ 1.1 $ 1.2 (*) share of earnings consolidated using equity accounting principles. • Russia
Slide 12: Avery
Avery Periods Ended March 31st Three months Change (millions of CDN $) 2017 2016 Reported Ex FX Sales $ 160.8 $ 179.6 (11%) (6%) Operating income(1) $ 28.5 $ 35.4 (20%) (16%) Return on Sales 17.7% 19.7% EBITDA(1) $ 32.4 $ 39.4 (18%) (14%) - % of Sales 20.1% 21.9% • Organic decline all in the U.S.: s
Slide 13: Checkpoint
Checkpoint Periods Ended March 31st Three months Change (millions of CDN $) 2017 2016 Reported Ex FX Sales $ 149.3 $ - n.m. n.m. Operating income $ 15.3 $ - n.m. n.m. Return on Sales 10.2% - EBITDA(1) $ 22.7 $ - n.m. n.m. - % of Sales 15.2% - • Profitability improvement exceeded expectations • $24.2
Slide 14: Innovia
Innovia Periods Ended March 31st One month Change (millions of CDN $) 2017 2016 Reported Ex FX Sales $ 29.8 $ - n.m. n.m. Adj. operating income(*) $ 3.4 $ - n.m. n.m. Return on Sales 11.4% - EBITDA(1) $ 6.1 $ - n.m. n.m. - % of Sales 20.5% - *For the one-month period ending March 31, 2017, operating
Slide 15: Container
Container Periods Ended March 31st Three months Change (millions of CDN $) 2017 2016 Reported Ex FX Sales $ 48.5 $ 64.9 (25%) (20%) Operating income(1) $ 6.1 $ 10.6 (43%) (37%) Return on Sales 12.6% 16.3% EBITDA(1) $ 9.8 $ 14.4 (32%) (26%) - % of Sales 20.2% 22.2% Rheinfelden CCL equity share $ (0.5
Slide 16: Summary
Summary Periods Ended March 31st Three months Change (millions of CDN $) 2017 2016 Reported Ex FX CCL ** $ 114.4 $ 103.9 +10% +15% Avery 28.5 35.4 (19%) (16%) Checkpoint 15.3 - n.m. n.m. Innovia *** 3.4 - n.m. n.m. Container 6.1 10.6 (42%) (37%) Operating Income(1)* $ 167.7 $ 149.9 +12% +16% - Sales
Slide 17: Outlook
Outlook • Consumer packaged goods industry soft in the U.S., International markets stronger, except Brazil • Challenging comps affected by Easter timing, 10.4% CCL organic growth rate for Q216 • Back-to-school shipment timing could shift to Q317, but season’s prospects improved • FX headwind remains
Slide 18: Questions
Questions Page 18
Slide 19: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated March 31, 2017 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 19