Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Q2 2019 Earnings Presentation
19 slides from Ccl Industries Inc. Class A's earnings presentation, Aug 8, 2019
Slide 1: Investor Update 2nd Quarter 2019
Investor Update 2nd Quarter 2019 (Unaudited) August 8, 2019
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: IFRS 16 Adoption
IFRS 16 Adoption Factors affecting comparatives for the six-months ended June 30, 2019….. • Adds $154.6 million of right-of-use assets and $159.4 million associated lease liabilities to the balance sheet, impacts total debt leverage ratio by 8bps • Adds YTD $3.3 million to operating income(1), with
Slide 4: Statement of Earnings
Statement of Earnings Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2019 2018 Reported Ex FX 2019 2018 Reported Ex FX Sales $ 1,354.2 $ 1,264.4 +7% +7% $ 2,686.3 $ 2,491.5 +8% +7% Operating income(1) 198.7 199.6 (1%) (1%) 403.6 400.2 +1% +0% Corporate expense 14.7
Slide 5: Earnings Per Share
Earnings Per Share Periods Ended June 30th Three months Six months Per Class B share 2019 2018 Change 2019 2018 Change Net earnings - basic $ 0.68 $ 0.69 (1%) $ 1.38 $ 1.36 +1% Net loss from restructuring and other items 0.01 0.01 0.02 0.03 Adjusted basic earnings(1) $ 0.69 $ 0.70 (1%) $ 1.40 $ 1.39
Slide 6: Free Cash Flow From Operations
(2) Free Cash Flow From Operations Periods Ended June 30th (millions of CDN$) $106.3 $108.4 $77.3 $16.1 Q2 2019 Q2 2018 YTD June 2019 YTD June 2018 Page 6
Slide 7: Cash & Debt Summary
Cash & Debt Summary June December (millions of CDN $) 2019 2018 Syndicated revolving LTD (US$547.0MM, €18.5MM, £60.3MM and C$101.0MM) $ 945.1 $ 1,013.5 Bonds (US$500.0MM due 2026, C$300.0MM due 2028) 954.8 981.8 Syndicated term facility (US$366.0MM due 2021) 479.3 499.1 Bilateral credit facility (US
Slide 8: Capital Spending
Capital Spending Six Months Ended June 30th 2019 Capital Depreciation & (millions of CDN $) Spending Amortization Difference CCL $ 174.1 $ 100.3 $ 73.8 Avery 6.2 8.6 (2.4) Checkpoint 12.9 14.9 (2.0) Innovia 17.7 20.7 (3.0) Corporate 0.1 0.5 (0.4) $ 211.0 $ 145.0 $ 66.0 • Excludes Right-of-Use asset
Slide 9: CCL
CCL Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2019 2018 Reported Ex FX 2019 2018 Reported Ex FX Sales $ 831.5 $ 804.2 +3% +3% $ 1,682.6 $ 1,611.8 +4% +4% Operating income(1) $ 117.0 $ 127.3 (8%) (8%) $ 259.1 $ 273.7 (5%) (6%) Return on sales 14.1% 15.8% 15.4%
Slide 10: CCL
CCL Period Ended June 30th CCL Consumer & Healthcare CCL Design CCL CCL Secure Secure • Home & Personal Care results • Electronics sales up mid teens on • Strong quarter in both polymer declined versus record prior year on double digit organic growth & currency and security products unusually soft U
Slide 11: Joint Ventures
Joint Ventures Periods Ended June 30th Results at 100% Three months Six months (millions of CDN $) 2019 2018 2019 2018 Sales • CCL Korsini U.S. start up losses Label Ventures $ 31.1 $ 28.9 $ 61.3 $ 57.4 in the prior year, acquired May Rheinfelden - - - 1.3 2018 $ 31.1 $ 28.9 $ 61.3 $ 58.7 Net income
Slide 12: Avery
Avery Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2019 2018 Reported Ex FX 2019 2018 Reported Ex FX Sales $ 203.3 $ 194.0 +5% +3% $ 360.9 $ 340.3 +6% +4% Operating income(1) $ 45.3 $ 44.6 +2% (1%) $ 73.2 $ 68.6 +7% +4% Return on sales 22.3% 23.0% 20.3% 20.2% EBI
Slide 13: Checkpoint
Checkpoint Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2019 2018 Reported Ex FX 2019 2018 Reported Ex FX Sales $ 177.3 $ 177.4 (0%) +0% $ 350.8 $ 354.9 (1%) (1%) Operating income(1) $ 23.1 $ 27.6 (16%) (16%) $ 43.4 $ 50.3 (14%) (13%) Return on sales 13.0% 15.6%
Slide 14: Innovia
Innovia Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2019 2018 Reported Ex FX 2019 2018 Reported Ex FX Sales $ 142.1 $ 88.8 +60% +61% $ 292.0 $ 184.5 +58% +59% Operating income(1) $ 13.3 $ 0.1 n.m. n.m. $ 27.9 $ 7.6 +267% +272% Return on sales 9.4% 0.1% 9.6% 4.1%
Slide 15: IFRS 16 Adoption Impact
IFRS 16 Adoption Impact Six Months Ended June 30th 2019 As reported IFRS 16 Adjustments Pro-Forma As reported June June June June (millions of CDN $) 2019 2019 2019 2018 Change Operating income(1) CCL $ 259.1 $ (1.8) $ 257.3 $ 273.7 Avery 73.2 (0.5) 72.7 68.6 Checkpoint 43.4 (0.7) 42.7 50.3 Innovia
Slide 16: Outlook
Outlook Factors to consider for Q3 2019…. • CCL Secure well placed to continue improvement • Base CCL global business faces easier comps • Avery poised for a good back-to-school, strong July • Checkpoint comps ease significantly in the second half • Innovia progress expected to continue, impact of n
Slide 17: Questions
Questions Page 17
Slide 18: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated June 30, 2019 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 18
Slide 19: Segment Reporting
Segment Reporting CCL Segment (“CCL”) is made up of five customer sectors. The Company trades in three of them as CCL Label (and CCL Container or CCL Tube to recognize product differentiation where relevant) and one each as CCL Design and CCL Secure. The differentiated CCL sub branding, points to th