Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Q2 2010 Earnings Presentation
25 slides from Ccl Industries Inc. Class A's earnings presentation, Aug 5, 2010
Slide 1: Investor Update Second Quarter Review
CCL Industries Inc. Investor Update Second Quarter Review August 5, 2010 1
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 - Second Quarter
Statement of Earnings Second Quarter Ended June 30 (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 302.2 $ 301.3 +0% +14% Operating Income * 40.0 29.0 +38% +55% Corporate Expense 6.1 5.3 +15% 33.9 23.7 Interest expense, net 6.4 7.6 (16%) 27.5 16.1 Restructuring & other ite
Slide 4: Statement of Earnings - Six Months
Statement of Earnings Six Months Ended June 30 (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 609.3 $ 615.4 (1%) +12% Operating Income * 83.6 68.4 +22% +38% Corporate Expense 10.9 9.8 +11% 72.7 58.6 Interest expense, net 12.9 15.9 (19%) 59.8 42.7 Restructuring & other ite
Slide 5: Earnings per Class B Share
Earnings per Class B Share Periods Ended June 30 Second Quarter Year-to-date Per Class B Share 2010 2009 Change 2010 2009 Change Net earnings - Basic $ 0.56 $ 0.28 +100% $ 1.27 $ 0.80 +59% Diluted earnings $ 0.55 $ 0.27 +104% $ 1.25 $ 0.78 +60% Restructuring & other items $ - $ (0.01) $ - $ (0.05) A
Slide 6: Impact of Changes in Exchange Rates
Impact of Changes in Exchange Rates Estimated impact reflects: • Foreign currency translation of all foreign operations • Foreign currency transactions at our Canadian operations where virtually all sales are U.S. dollar-denominated 2Q10 Act 2010 Act 2009 Act Impact of Currency vs. vs. vs. on E.P.S.
Slide 7: Cash Flow Highlights
Cash Flow Highlights Six Months Ended June 30th, 2010 (Millions of Cdn$) Free Cash Flow* Statement of Cash Flows Six Months Ended June 30, 2010 $40.3 2010 2009 $26.4 Net Earnings $ 41.7 $ 25.7 $23.6 Depreciation & amortization 46.8 49.7 Chg. in non-cash working capital (27.4) (18.9) Other 1.3 4.7 Ca
Slide 8: Cash & Debt Summary
Cash & Debt Summary As At June 30th (Millions of Cdn$) Increase 2010 2009 (Decrease) Long-term debt - senior notes (2010 - US$ 438.1 MM, 2009 - US$ 447.5 MM) $ 466.4 $ 520.4 $ (54.0) Long-term debt - all other 38.0 41.7 (3.7) Bank advances 0.4 - 0.4 Total debt 504.8 562.1 (57.3) Cash and cash equiva
Slide 9: Capital Spending Highlights
Capital Spending Highlights Six Months Ended June 30th, 2010 (Millions of Cdn$) Capital Divisions Spending *Depreciation Difference Label $ 34.8 $ 32.9 $ 1.9 Container 3.4 7.0 $ (3.6) Tube 0.4 3.8 $ (3.4) Corporate - 0.2 $ (0.2) $ 38.6 $ 43.9 $ (5.3) * excludes amortization of intangibles and other
Slide 10: Sales Analysis
Sales Analysis Second Quarter Ended June 30th Acquisitions Organic FX & Disposals Total Label +10% (14%) +1% (3%) Container +20% (8%) - +12% Tube +35% (15%) - +20% CCL Consolidated +13% (14%) +1% (0%) 10
Slide 11: Sales Analysis - Six Months
Sales Analysis Six Months Ended June 30th Acquisitions Organic FX & Disposals Total Label +9% (13%) +1% (3%) Container +17% (8%) - +9% Tube +26% (18%) - +8% CCL Consolidated +11% (13%) +1% (1%) 11
Slide 12: Income from Operations - Second Quarter
Income from Operations Second Quarter Ended June 30th (Millions of Cdn$) 2010 2009 Change Label $ 39.2 $ 28.4 +38.0% Container (2.1) (0.1) n.m. Tube 2.9 0.7 n.m. Operating income 40.0 29.0 +37.9% Corporate expense (6.1) (5.3) +15.1% 33.9 23.7 Interest expense (net) (6.4) (7.6) (15.8%) Earnings befor
Slide 13: Income from Operations - Six Months
Income from Operations Six Months Ended June 30th (Millions of Cdn$) 2010 2009 Change Label $ 82.4 $ 67.6 +21.9% Container (3.8) (0.4) n.m. Tube 5.0 1.2 n.m. Operating income 83.6 68.4 +22.2% Corporate expense (10.9) (9.8) +11.2% 72.7 58.6 Interest expense (net) (12.9) (15.9) (18.9%) Earnings before
Slide 14: Label - Second Quarter
Label Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 242.1 $ 248.9 (2.7%) / +11% Operating income $ 39.2 $ 28.4 +38.0% Return on sales 16.2% 11.4% EBITDA $ 56.8 $ 47.0 +20.9% % of Sales 23.5% 18.9% The following commentary is based on consta
Slide 15: Label - North America
Label Second Quarter Ended June 30th (Millions of Cdn$) North America (38% of sales) • Double digit growth rate in the Home & Personal Care (HPC) segment; predominantly market recovery related • Organic growth in Healthcare & Specialty moderated to low single digits as H1N1 sales subsided compared t
Slide 16: Label - Europe
Label Second Quarter Ended June 30th (Millions of Cdn$) Europe (42% of sales) • HPC sales up high single digits driving a meaningful profit swing over Q2 2009, margins still below average • Healthcare & Specialty up high single digits but profits rose faster driven by good mix • Sleeves up in the mi
Slide 17: Label - Latin America
Label Second Quarter Ended June 30th (Millions of Cdn$) Latin America (10% of sales) • Double digit sales growth drove excellent profitability • Performance strong in both Mexico and Brazil • Brazilian R$ continues to be one of the strong world currencies, peso stable against the US$ 17
Slide 18: Label - Asia, Australia & South Africa
Label Second Quarter Ended June 30th (Millions of Cdn$) Asia (6% of sales) + Australia & South Africa (3% of sales) • Asia remains the fastest growing region in the world, sales up well into double digits • All segments posted improved results at existing operations • New plant start up costs in Vie
Slide 19: Label - Six Months Ended June 30th
Label Six Months Ended June 30th Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 491.0 $ 506.4 (3.0%) / +10% Operating income $ 82.4 $ 67.6 +21.9% Return on sales 16.8% 13.3% EBITDA $ 118.2 $ 104.5 +13.1% % of Sales 24.1% 20.6% The following commentary is based on constant
Slide 20: Label - Six Months
Label Six Months Ended June 30th (Millions of Cdn$) • Some industry concerns around tight capacity of components used in the pressures sensitive materials business • Some pricing pressures around the above in Q2, likely to continue in the second half of 2010 • H1N1 phenomena will not repeat in secon
Slide 21: Container - Second Quarter
Container Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency Translation 2010 2009 Change Sales $ 39.7 $ 35.4 +12.1% +20% Operating income $ (2.1) $ (0.1) n.m. Return on sales (5.3%) (0.3%) EBITDA $ 1.4 $ 3.9 (64.1%) % of Sales 3.5% 11.0% The following commentary is based on consta
Slide 22: Container - Second Quarter
Container Second Quarter Ended June 30th (Millions of Cdn$) • Canadian plant’s losses continue, and were wholly responsible for the poor performance in the quarter • Mix skewed to low margin home care aerosols and continuing impact of the strong C$ hurt results • Timing of pricing changes will conti
Slide 23: Container - Six Months
Container Six Months Ended June 30th (Millions of Cdn$) Excluding Currency Translation 2010 2009 Change Sales $ 80.0 $ 73.5 +8.8% +17% Operating income $ (3.8) $ (0.4) n.m. Return on sales (4.8%) (0.5%) EBITDA $ 3.2 $ 7.2 (55.6%) % of Sales 4.0% 9.8% The following commentary is based on constant Can
Slide 24: Tube - Second Quarter
Tube Second Quarter ended June 30th (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 20.4 $ 17.0 +20.0% +35% Operating income $ 2.9 $ 0.7 Return on sales 14.2% 4.1% EBITDA $ 4.8 $ 3.0 +60.0% % of Sales 23.5% 17.6% The following commentary is based on constant Canadian dolla
Slide 25: Tube - Six Months
Tube Six Months ended June 30th (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 38.3 $ 35.5 +7.9% +26% Operating income $ 5.0 $ 1.2 Return on sales 13.1% 3.4% EBITDA $ 8.8 $ 5.9 +49.2% % of Sales 23.0% 16.6% The following commentary is based on constant Canadian dollars to