16 slides from Ccl Industries Inc. Class A's earnings presentation, May 5, 2016
Slide 1: Investor Update 1st Quarter 2016
Investor Update 1st Quarter 2016 May 5, 2016
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
Slide 3: Statement of Earnings
Statement of Earnings Periods Ended March 31st Three months Change (millions of CDN $) 2016 2015 Reported Ex FX Sales $ 866.8 $ 705.9 +23% +16% Operating income(1) 149.9 117.1 +28% +22% Corporate expense 10.8 13.4 139.1 103.7 Finance cost, net 7.9 6.3 131.2 97.4 Restructuring and other items 3.0 0.9
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended March 31st Three months Per Class B Share 2016 2015 Change Net earnings - basic $ 2.57 $ 1.97 +30% Net loss from restructuring and other items 0.08 0.02 Adjusted basic earnings(1) $ 2.65 $ 1.99 +33% Adjusted basic earnings variance (after tax) due to Operatin
Slide 5: Cash Flow
Cash Flow Periods Ended March 31st (millions of CDN $) Free Cash Flow(2) $279.3 $282.7 $(8.8) $(50.0) Q1 2016 Q1 2015 LTM March 2016 LTM March 2015 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary March December (millions of CDN $) 2016 2015 Senior Notes LTD (US$129.0MM) $ 167.5 $ 330.8 Revolving LTD (US$459.6MM, EUR71.2MM and GBP70.0MM) 832.6 653.9 Debt - all other 30.5 20.8 Total debt 1,030.6 1,005.5 Less: Cash and cash equivalents (320.1) (405.7) Net debt $ 710.5 $ 599.
Slide 7: Capital Spending
Capital Spending Three Months Ended March 31st, 2016 Capital Divisions Spending Depreciation(*) Difference Label $ 53.9 $ 35.2 $ 18.7 Avery 8.0 3.3 4.7 Container 8.6 3.8 4.8 Corporate - 0.1 (0.1) $ 70.5 $ 42.4 $ 28.1 (*) excludes amortization of intangibles and other assets • First quarter generated
Slide 8: Label
Label Periods Ended March 31st Three months Change (millions of CDN $) 2016 2015 Reported Ex FX Sales $ 622.3 $ 486.1 +28% +22% Operating income(1) $ 103.9 $ 81.8 +27% +21% Return on Sales 16.7% 16.8% EBITDA(1) $ 142.6 $ 114.0 +25% +19% - - % of Sales 22.9% 23.5% • 7.3% first quarter organic sales g
Slide 9: Label Emerging Markets
Label Emerging First Quarter Ended March 31st Markets 22% North America North America Europe (incl. Eastern Europe) 46% Europe 32% • Solid Healthcare & • Healthcare & Specialty Specialty results, some Ag- profits up on operational Chem recovery, Promo soft execution, Ag-Chem slow Label Sales by Geog
Slide 10: Label Joint Ventures
Label Joint Ventures Periods Ended March 31st Results at 100% Three months (millions of CDN $) 2016 2015 Sales $ 27.4 $ 23.3 Net income $ 2.3 $ 1.4 EBITDA $ 4.7 $ 3.7 % of Sales 17.2% 15.9% CCL equity share (*) $ 1.2 $ 0.7 (*) share of earnings consolidated using equity accounting principles. • Subs
Slide 11: Avery
Avery Periods Ended March 31st Three months Change (millions of CDN $) 2016 2015 Reported Ex FX Sales $ 179.6 $ 160.2 +12% +4% Operating income(1) $ 35.4 $ 26.6 +33% +26% Return on Sales 19.7% 16.6% EBITDA(1) $ 39.4 $ 29.9 +32% +24% - % of Sales 21.9% 18.7% • Prior year quarter posted unusual double
Slide 12: Container
Container Periods ended March 31st Three months Change (millions of CDN $) 2016 2015 Reported Ex FX Sales $ 64.9 $ 59.6 +9% +6% Operating income(1) $ 10.6 $ 8.7 +22% +18% Return on Sales 16.3% 14.6% EBITDA(1) $ 14.4 $ 12.4 +16% +14% - % of Sales 22.2% 20.8% Rheinfelden CCL equity share $ (0.4) $ (0.
Slide 13: Summary
Summary Periods ended March 31st Three months Change (millions of CDN $) 2016 2015 Reported Ex FX Label $ 103.9 $ 81.8 +27% +21% Avery 35.4 26.6 +33% +26% Container 10.6 8.7 +22% +18% Operating Income(1) $ 149.9 $ 117.1 +28% +22% - Sales $ 866.8 $ 705.9 +23% +16% Return on Sales 17.3% 16.6% EBITDA(1
Slide 14: Outlook
Outlook • 2016 order levels solid so far • C$ translation tailwind moderating significantly this quarter, potentially a headwind for 2H16 • Easter timing will aid 2Q comps • Raw materials cost environment benign. FX related cost inflation fading on currency movements in 2016 • Checkpoint expected to
Slide 15: Questions
Questions Page 15
Slide 16: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated March 31, 2016 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