16 slides from Ccl Industries Inc. Class A's earnings presentation, Nov 5, 2015
Slide 1: Investor Update 3rd Quarter 2015
Investor Update 3rd Quarter 2015 November 5, 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 September 30th Three months Change Nine months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 812.9 $ 689.7 +18% +7% $ 2,240.3 $ 1,949.8 +15% +8% Operating income(1) 134.3 107.2 +25% +14% 374.0 284.9 +31% +24% Corporate expens
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended September 30th Three months Nine months Per Class B Share 2015 2014 Change 2015 2014 Change Net earnings - basic $ 2.36 $ 1.83 +29% $ 6.45 $ 4.98 +30% Net (gain) loss from restructuring and other items (0.02) - - 0.04 Adjusted basic earnings(1) $ 2.34 $ 1.83
Slide 5: Cash Flow
Cash Flow Periods Ended September 30th (millions of CDN $) Free Cash Flow(2) $276.5 $238.3 $129.9 $106.4 Q3 2015 Q3 2014 LTM September LTM September 2015 2014 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary September September (millions of CDN $) 2015 2014 Senior Notes LTD (US$239.0MM) $ 318.9 $ 267.7 Non-revolving LTD (US$208.0MM and EUR61.6MM) 369.7 367.2 Revolving LTD - 57.7 Debt - all other 18.0 14.2 Total debt 706.6 706.8 Less: Cash and cash equivalents (298.8) (216.0) Net debt
Slide 7: Capital Spending
Capital Spending Nine Months Ended September 30th 2015 Capital Divisions Spending Depreciation(*) Difference Label $ 112.0 $ 91.1 $ 20.9 Avery 10.7 9.0 1.7 Container 7.7 11.4 (3.7) Corporate - 0.3 (0.3) $ 130.4 $ 111.8 $ 18.6 (*) excludes amortization of intangibles and other assets • Label spending
Slide 8: Label
Label Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 522.2 $ 437.4 +19% +10% $ 1,477.2 $ 1,284.9 +15% +10% Operating income(1) $ 81.6 $ 59.4 +37% +28% $ 235.4 $ 184.8 +27% +22% Return on Sales 15.6% 13
Slide 9: Label sales by geography
Label Emerging Third Quarter Ended September 30th Markets 17% North America North America Europe (incl. Eastern Europe) 49% Europe 34% • Healthcare & Specialty • Moderate Healthcare & sales and profitability Specialty sales growth, improved on Pharma and profitability declined, Label Sales by Geogra
Slide 10: Label Joint Ventures
Label Joint Ventures Periods Ended September 30th Results at 100% Three months Nine months (millions of CDN $) 2015 2014 2015 2014 Sales $ 28.3 $ 20.1 $ 76.8 $ 59.6 Net income (loss) $ 2.4 $ 1.0 $ 5.2 $ 3.1 EBITDA $ 5.3 $ 2.9 $ 12.8 $ 8.1 % of Sales 18.7% 14.4% 16.7% 13.6% CCL equity share (*) $ 1.2
Slide 11: Avery
Avery Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 233.1 $ 204.7 +14% - $ 591.5 $ 511.8 +16% +6% Operating income(1) $ 46.5 $ 44.8 +4% (10%) $ 118.3 $ 86.3 +37% +27% Return on Sales 19.9% 21.9% 20.0%
Slide 12: Container
Container Periods ended September 30th Three months Change Nine months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 57.6 $ 47.6 +21% +13% $ 171.6 $ 153.1 +12% +6% Operating income(1) $ 6.2 $ 3.0 +107% +97% $ 20.3 $ 13.8 +47% +39% Return on Sales 10.8% 6.3% 11.
Slide 13: Summary
Summary Periods ended September 30th Three months Change Nine months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Label $ 81.6 $ 59.4 +37% +28% $ 235.4 $ 184.8 +27% +22% Avery 46.5 44.8 +4% (10%) 118.3 86.3 +37% +27% NM Container 6.2 3.0 +107% +97% 20.3 13.8 +47% +39%
Slide 14: Outlook
Outlook • With back-to-school behind us we expect Avery results to post moderate gains for Q4, summing to a strong 2015 • Orders at CCL units have been very solid so far this quarter • C$ translation tailwind continues at today’s rates • FX pricing catch ups around strong U.S. dollar underway • Raw
Slide 15: Questions
Questions Page 15
Slide 16: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated September 30, 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