21 slides from Ccl Industries Inc. Class A's earnings presentation, Jul 31, 2014
Slide 1: Investor Update 2nd Quarter 2014 Review
CCL Industries Inc. Investor Update 2nd Quarter 2014 Review July 31, 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 - Second Quarter
Statement of Earnings Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 650.4 $ 361.4 +80% +73% Operating income* 89.2 50.2 +78% +71% Corporate expense 7.4 6.9 81.8 43.3 Finance cost, net 6.3 5.9 75.5 37.4 Restructuring and other items 1.1 1.4
Slide 4: Statement of Earnings - Six Months
Statement of Earnings Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 1,260.1 $ 725.1 +74% +66% Operating income* 177.7 112.1 +59% +51% Corporate expense 13.5 14.4 164.2 97.7 Finance cost, net 13.0 11.1 151.2 86.6 Restructuring and other items 2.
Slide 5: Earnings per Class B Share
Earnings per Class B Share Periods Ended June 30th Three Months Six Months Per Class B Share 2014 2013 Change 2014 2013 Change Net earnings - basic $ 1.61 $ 0.77 +109% $ 3.15 $ 1.78 +77% Net loss from restructuring and other items 0.02 0.05 0.04 0.08 Adjusted basic earnings* $ 1.63 $ 0.82 +99% $ 3.1
Slide 6: Cash Flow Highlights
Cash Flow Highlights Periods Ended June 30th (Millions of Cdn$) Statement of Cash Flows Six Months Ended June 30th 2014 2013 Free Cash Flow* Net earnings $ 107.9 $ 60.5 240.6 Adjustments for: Depreciation & amortization 72.6 54.0 Net finance cost 13.0 11.1 Equity accounted investments (1.0) 1.9 91.5
Slide 7: Cash & Debt Summary
Cash & Debt Summary (Millions of Cdn$) June December June 2014 2013 2013 Senior Notes LTD (2014 - US$239.0MM) $ 255.0 $ 254.2 $ 335.5 Non-revolving LTD (2014 - US$260.0MM and EUR61.6MM) 367.5 388.1 - Revolving LTD (2014 - US$131.5MM) 140.3 59.6 476.9 Debt - all other 11.8 10.1 11.4 Total debt 774.6
Slide 8: Capital Spending Highlights
Capital Spending Highlights Six Months Ended June 30th (Millions of Cdn$) Capital Divisions Spending Depreciation( 1 ) Difference Label $ 65.6 $ 55.3 $ 10.3 Container $ 12.8 7.0 5.8 Avery $ 5.7 5.8 (0.1) $ 84.1 $ 68.1 $ 16.0 (1) excludes amort izat ion of int angibles and ot her asset s • $25 millio
Slide 9: Label - Second Quarter
Label Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 423.8 $ 309.9 +37% +30% Operating income* $ 56.0 $ 45.0 +24% +18% Return on sales 13.2% 14.5% EBITDA* $ 86.0 $ 68.7 +25% +19% % of Sales 20.3% 22.2% The following commentary is based on co
Slide 10: Label - North America
Label Second Quarter Ended June 30th (Millions of Cdn$) North America (45% of Label sales) • Healthcare & Specialty improved appreciably as FDA issues faded at key customers. Slow Ag-Chem season due to winter weather offset strong Promo volume, partly World Cup related • Home & Personal Care legacy
Slide 11: Label - Europe
Label Second Quarter Ended June 30th (Millions of Cdn$) Europe (35% of Label sales) (incl Eastern Europe) • Healthcare & Specialty sales improved, profitability declined on mix changes • Home & Personal Care posted sales gains and good profit improvement on slowly improving consumer demand • Food &
Slide 12: Label - Emerging Markets
Label Second Quarter Ended June 30th (Millions of Cdn$) Emerging Markets (20% of Label sales) (Asia, Latin America, Australia & South Africa) • Latin America organic growth rates decelerated: mid single digits; Brazil & Mexico both affected but latter aided by large Beverage export orders. Profits f
Slide 13: Label - Six Months
Label Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 847.5 $ 622.2 +36% +28% Operating income* $ 125.4 $ 101.5 +24% +16% Return on sales 14.8% 16.3% EBITDA* $ 183.9 $ 148.0 +24% +17% % of Sales 21.7% 23.8% The following commentary is based on co
Slide 14: Label Joint Ventures
Label Joint Ventures Periods Ended June 30th (Millions of Cdn$) Three Months Six Months Results at 100% 2014 2013 2014 2013 Sales $ 20.8 $ 18.5 $ 39.5 $ 34.5 Net income (loss) $ 1.9 $ 0.5 $ 2.1 $ 1.2 EBITDA $ 2.9 $ 2.8 $ 5.3 $ 5.1 % of Sales 13.9% 15.1% 13.4% 14.8% CCL equity share* $ 1.0 $ 0.2 $ 1.
Slide 15: Avery - Second Quarter
Avery Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 174.2 $ - NM NM Operating income* $ 28.4 $ - NM NM Return on sales 16.3% - EBITDA* $ 31.7 $ - NM NM % of Sales 18.2% - • Results exceeded expectations, North American back to school season
Slide 16: Avery - Six Months
Avery Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 307.1 $ - NM NM Operating income* $ 41.5 $ - NM NM Return on sales 13.5% - EBITDA* $ 48.2 $ - NM NM % of Sales 15.7% - • Very solid 1H14 • Back to school period critical as always to Q3 and 2H
Slide 17: Container - Second Quarter
Container Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 52.4 $ 51.5 +2% (2%) Operating income* $ 4.8 $ 5.2 (8%) (12%) Return on sales 9.2% 10.1% EBITDA* $ 8.3 $ 8.7 (5%) (8%) % of Sales 15.8% 16.9% The following commentary is based on const
Slide 18: Container - Six Months
Container Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 105.5 $ 102.9 +3% (2%) Operating income* $ 10.8 $ 10.6 +2% (5%) Return on sales 10.2% 10.3% EBITDA* $ 17.8 $ 17.7 +1% (5%) % of Sales 16.9% 17.2% The following commentary is based on const
Slide 19: Operating Income - Second Quarter
Operating Income* Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Label $ 56.0 $ 45.0 +24% +18% Avery 28.4 - NM NM Container 4.8 5.2 (8%) (12%) Operating income* $ 89.2 $ 50.2 +78% +71% Sales $ 650.4 $ 361.4 +80% +73% Return on sales 13.7% 13.9% EBIT
Slide 20: Operating Income - Six Months
Operating Income* Six Months Ended Ended June 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Label $ 125.4 $ 101.5 +24% +16% Avery 41.5 - NM NM Container 10.8 10.6 +2% (5%) Operating income* $ 177.7 $ 112.1 +59% +51% Sales $ 1,260.1 $ 725.1 +74% +66% Return on sales 14.1% 15
Slide 21: 2014 Outlook
2014 Outlook • 2H14 comps to adjusted 2H13 earnings more challenging • Slower Emerging Markets growth reported at some customers, North American consumer markets remain slow but solid order intake globally Q3 to date at CCL • Avery peak back-to-school sales period critical for Q3…so far so good, but