19 slides from Ccl Industries Inc. Class A's earnings presentation, Aug 8, 2017
Slide 1: Investor Update 2nd Quarter 2017
Investor Update 2nd Quarter 2017 August 8, 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
Slide 3: Statement of Earnings
Statement of Earnings Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 1,252.9 $ 960.2 +30% +28% $ 2,314.4 $ 1,827.0 +27% +28% Operating income(1) 188.3 143.1 +32% +29% 347.2 293.0 +18% +19% Corporate expense
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended June 30th Three months Six months Per Class B Share 2017 2016 Change 2017 2016 Change Net earnings - basic $ 0.63 $ 0.42 +50% $ 1.13 $ 0.93 +22% Net loss from restructuring and other items 0.02 0.07 0.06 0.09 Non-cash acquisition accounting adjustment related
Slide 5: Cash Flow
Cash Flow Periods Ended June 30th (millions of CDN $) Free Cash Flow(2) $424.8 $215.8 $105.4 $14.7 Q2 2017 Q2 2016 LTM June 2017 LTM June 2016 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary June December (millions of CDN $) 2017 2016 Revolving LTD (US$355.6MM, €223.7MM, £65.3MM and C$337.0MM) $ 1,239.6 $ 756.6 Bond (US$500.0MM) due 2026 648.2 671.4 Two-year Term Facility (US$438.0MM) 567.8 - Senior Notes LTD (US$129.0MM) due 2018 167.2 173.2 Debt - all other (2.0) 0
Slide 7: Capital Spending
Capital Spending Six Months Ended June 30th, 2017 Capital Depreciation & Divisions Spending Amortization Difference CCL $ 148.9 $ 84.5 $ 64.4 Avery 10.7 8.1 2.6 Checkpoint 7.9 14.9 (7.0) Innovia 2.7 10.2 (7.5) Container 14.1 7.3 6.8 Corporate - 0.4 (0.4) $ 184.3 $ 125.4 $ 58.9 • Excludes $3.7 millio
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 June 30th Three months Change Six months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 728.8 $ 604.0 +21% +18% $ 1,402.0 $ 1,226.3 +14% +15% Adj. operating income(3)(4) $ 117.5 $ 91.3 +29% +26% $ 231.9 $ 195.2 +19% +20% Return on Sales 16.1% 1
Slide 10: CCL
CCL Periods ended June 30th CCL Consumer & Healthcare CCL Design CCL Secure • Home & Personal Care label sales up • Robust growth, • Excellent first full globally on share gains. Brazil slower, especially quarter from as for many customers Electronics Innovia acquisition • Tube growth in line with c
Slide 11: CCL Joint Ventures
CCL Joint Ventures Periods Ended June 30th Results at 100% Three months Six months (millions of CDN $) 2017 2016 2017 2016 Sales $ 32.7 $ 30.5 $ 63.1 $ 58.0 Net income $ 2.7 $ 2.6 $ 4.9 $ 5.0 EBITDA $ 5.9 $ 5.3 $ 10.9 $ 10.0 % of Sales 18.0% 17.4% 17.3% 17.2% CCL equity share (*) $ 1.4 $ 1.4 $ 2.5 $
Slide 12: Avery
Avery Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 209.1 $ 207.4 +1% (2%) $ 369.9 $ 387.0 (4%) (4%) Operating income(1) $ 45.4 $ 50.6 (10%) (13%) $ 73.9 $ 86.0 (14%) (14%) Return on Sales 21.7% 24.4% 20.0%
Slide 13: Checkpoint
Checkpoint Periods ended June 30th Three months Change Six months Change (millions of CDN $) 2017 2016(**) Reported Ex FX 2017 2016 (6) Reported Ex FX Sales $ 171.0 $ 92.6 n.m. n.m. $ 320.3 $ 92.6 n.m. n.m. Adj. operating income(5) $ 19.5 $ 9.9 n.m. n.m. $ 34.8 $ 9.9 n.m. n.m. Return on Sales 11.4%
Slide 14: Innovia
Innovia Periods ended June 30th Three months Change Four months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 91.7 $ - n.m. n.m. $ 121.4 $ - n.m. n.m. Adj. operating income(7) $ 6.7 $ - n.m. n.m. $ 10.1 $ - n.m. n.m. Return on Sales 7.3% - 8.3% - EBITDA(1) $ 14
Slide 15: Container
Container Periods ended June 30th Three months Change Six months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 52.3 $ 56.2 (7%) (10%) $ 100.8 $ 121.1 (17%) (15%) Operating income(1) $ 5.6 $ 7.9 (29%) (32%) $ 11.7 $ 18.5 (37%) (35%) Return on Sales 10.7% 14.1% 1
Slide 16: Summary
Summary Periods ended June 30th Three months Change Six months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX CCL(3)(4) $ 117.5 $ 91.3 +29% +26% $ 231.9 $ 195.2 +19% +20% Avery 45.4 50.6 (10%) (13%) 73.9 86.0 (14%) (14%) Checkpoint (5)(6) 19.5 9.9 n.m. n.m. 34.8 9.9 n.m
Slide 17: Outlook
Outlook Mixed outlook for H217………… • C$ translation headwind • CCL Secure volume low for Q3, solid orders comparatively in the rest of the Segment • Expect a stable back-to-school season at Avery • Unlikely to exceed strong Q316 at Checkpoint • CCL Container H217 should recover in line to prior year
Slide 18: Questions
Questions Page 18
Slide 19: Definitions Appendix
Definitions Appendix (1) Non‐IFRS measure; see MD&A dated June 30, 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. (3) For the three‐month and six‐month