19 slides from Ccl Industries Inc. Class A's earnings presentation, Feb 22, 2018
Slide 1: Investor Update 4th Quarter 2017
Investor Update 4th Quarter 2017 February 22, 2018
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 December 31st Three months Change Twelve months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 1,234.5 $ 1,058.4 +17% +19% $ 4,755.7 $ 3,974.7 +20% +21% Operating income(1) 205.1 160.6 +28% +30% 737.5 603.3 +22% +24% Corporate
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended December 31st Three months Twelve months Per Class B Share 2017 2016 Change 2017 2016 Change Net earnings - basic $ 0.97 $ 0.56 +73% $ 2.70 $ 1.98 +36% Net loss from restructuring and other items - 0.03 0.07 0.15 Non-cash acquisition accounting adjustment rel
Slide 5: Cash Flow
Cash Flow Periods Ended December 31st (millions of CDN $) Free Cash Flow(2) $438.3 $338.6 $239.7 $222.9 Q4 2017 Q4 2016 LTM December 2017 LTM December 2016 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary December December (millions of CDN $) 2017 2016 Revolving LTD (US$271.0MM, €155.8MM, £60.3MM and C$337.0MM) $ 1,015.1 $ 756.6 Bond (US$500.0MM) due 2026 628.6 671.4 Two-year Term Facility (US$414.0MM) 520.4 - Senior Notes LTD (US$129.0MM) due 2018 162.2 173.2 Debt - all other, ne
Slide 7: Capital Spending
Capital Spending Twelve Months Ended December 31st, 2017 Capital Depreciation & Divisions Spending Amortization Difference CCL $ 218.6 $ 172.5 $ 46.1 Avery 13.8 16.1 (2.3) Checkpoint 23.3 29.0 (5.7) Innovia 10.9 27.4 (16.5) Container 18.7 13.3 5.4 Corporate 0.4 0.9 (0.5) $ 285.7 $ 259.2 $ 26.5 • Exc
Slide 8: 2017 Segment Reporting
2017 Segment Reporting • No change at Avery, Checkpoint & Container • New segment: Innovia: Films operations only, includes two legacy CCL operations (see below for Innovia Security) • CCL Label segment is renamed: CCL and includes… 1. CCL Label: Home & Personal Care 2. CCL Label: Healthcare & Speci
Slide 9: CCL
CCL Periods Ended December 31st Three months Change Twelve months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 733.9 $ 631.8 +16% +18% $ 2,823.1 $ 2,497.6 +13% +15% Adj. operating income(3)(4) $ 126.4 $ 90.7 +39% +41% $ 453.0 $ 380.0 +19% +21% Return on Sales
Slide 10: CCL
CCL Periods ended December 31st CCL Consumer & Healthcare CCL Design CCL Secure • Home & Personal Care sales and • Seasonal device • Currency sales profitability improved significantly on launches drove strong rebounded… share gains. China exceptional Electronics growth… • ….nearly double Q3 • Healt
Slide 11: CCL Joint Ventures
CCL Joint Ventures Periods Ended December 31st Results at 100% Three months Twelve months (millions of CDN $) 2017 2016 2017 2016 Sales $ 29.3 $ 33.4 $ 125.2 $ 124.6 Net income $ 3.8 $ 3.5 $ 11.6 $ 11.9 EBITDA $ 8.4 $ 6.8 $ 25.7 $ 23.0 % of Sales 28.7% 20.4% 20.5% 18.5% 4.4 CCL equity share (*) $ 1.
Slide 12: Avery
Avery Periods Ended December 31st Three months Change Twelve months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 171.0 $ 180.5 (5%) (2%) $ 752.9 $ 787.7 (4%) (3%) Operating income(1) $ 40.7 $ 35.5 +15% +18% $ 164.5 $ 166.8 (1%) +0% +13% Return on Sales 23.8% 1
Slide 13: Checkpoint
Checkpoint Periods ended December 31st Three months Change Twelve months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 (6) Reported Ex FX Sales $ 192.3 $ 190.9 +1% +4% $ 675.2 $ 459.0 +47% +49% Adj. operating income(5) $ 30.9 $ 27.3 +13% +17% $ 87.4 $ 60.1 +45% +48% Return on Sales 1
Slide 14: Innovia
Innovia Periods ended December 31st Three months Change Ten months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 91.2 $ - n.m. n.m. $ 308.2 $ - n.m. n.m. Adj. operating income(7) $ 0.1 $ - n.m. n.m. $ 21.6 $ - n.m. n.m. Return on Sales 0.1% - 7.0% - EBITDA(1) $
Slide 15: Container
Container Periods ended December 31st Three months Change Twelve months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 46.1 $ 55.2 (16%) (14%) $ 196.3 $ 230.4 (15%) (13%) Operating income(1) $ 7.0 $ 7.1 (1%) +1% $ 26.2 $ 30.3 (14%) (12%) Return on Sales 15.2% 12
Slide 16: Summary
Summary Periods ended December 31st Three months Change Twelve months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX CCL(3)(4) $ 126.4 $ 90.7 +39% +41% $ 453.0 $ 380.0 +19% +21% Avery 40.7 35.5 +15% +18% 164.5 166.8 (1%) +0% Checkpoint (5)(6) 30.9 27.3 +13% +17% 87.4 60
Slide 17: Outlook
Outlook Factors to consider for Q1 2018………… • Stronger Euro + weaker US$ = modest headwind • Strong starts at CCL, Checkpoint continuing Q4 trends • Low season at Avery, some Q4 pre-buys in the United States • Innovia challenges with higher resin costs continue • Container Segment will be folded int
Slide 18: Questions
Questions Page 18
Slide 19: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated December 31, 2017 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. (3) For the twelve-month periods e