20 slides from Ccl Industries Inc. Class A's earnings presentation, Feb 26, 2015
Slide 1: Investor Update 4th Quarter 2014
Investor Update 4th Quarter 2014 February 26, 2015
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 - Fourth Quarter
Statement of Earnings Fourth Quarter Ended December 31st Excluding Currency (millions of CDN $) 2014 2013 Change Translation Sales $ 635.8 $ 557.7 +14% +10% Operating income(1) 85.0 72.2 +18% +14% Corporate expense 9.9 9.7 75.1 62.5 Finance cost, net 6.0 6.8 69.1 55.7 Restructuring and other items 7
Slide 4: Statement of Earnings - Year
Statement of Earnings Year Ended December 31st Excluding Currency (millions of CDN $) 2014 2013(3) Change Translation Sales $ 2,585.6 $ 1,889.4 +37% +31% Operating income(1)(2) 369.9 252.2 +47% +40% Corporate expense 34.7 33.5 335.2 218.7 Finance cost, net 25.6 25.6 309.6 193.1 Restructuring and oth
Slide 5: Earnings per Class B Share
Earnings per Class B Share Periods Ended December 31st Three Months Twelve Months Per Class B Share 2014 2013 Change 2014 2013 Change Net earnings - basic $ 1.33 $ 0.58 +129% $ 6.31 $ 3.04 +108% Net loss from restructuring and other items 0.18 0.61 0.22 1.03 Avery and DES finance costs - - - 0.02 No
Slide 6: Cash Flow
Cash Flow Periods Ended December 31st (millions of CDN $) Free Cash Flow* $264.1 $219.7 $100.7 $74.9 Q4 2014 Q4 2013 FY 2014 FY 2013 *Free Cash Flow From Operations (non-IFRS measure) = Cash from Operating Activities less Capital Expenditures, net of Proceeds from Sale of PPE Page 6
Slide 7: Cash & Debt Summary
Cash & Debt Summary December December (millions of CDN $) 2014 2013 Senior Notes LTD (US$239.0MM) $ 277.3 $ 254.2 Non-revolving LTD (US$238.0MM and EUR61.6MM) 362.6 388.1 Revolving LTD - 59.6 Debt - all other 19.2 10.1 Total debt 659.1 712.0 Less: Cash and cash equivalents (221.9) (209.1) Net debt $
Slide 8: Capital Spending
Capital Spending Year Ended December 31st Capital Divisions Spending Depreciation(1) Difference Label $ 106.7 $ 111.4 $ (4.7) Avery 25.0 11.0 14.0 Container 20.1 14.1 6.0 Corporate 1.9 0.2 1.7 $ 153.7 $ 136.7 $ 17.0 (1) excludes amortization of intangibles and other assets • $50 million into HPC glo
Slide 9: Label - Fourth Quarter
Label Fourth Quarter Ended December 31st Excluding Currency (millions of CDN $) 2014 2013 Change Translation Sales $ 433.4 $ 361.6 +20% +16% (1) Operating income $ 58.0 $ 45.0 +29% +25% Return on Sales 13.4% 12.4% EBITDA(1) $ 87.8 $ 71.5 +23% +19% - 45.2 % of Sales 20.3% 19.8% The following commenta
Slide 10: Label - Fourth Quarter by Region
Label Fourth Quarter Ended December 31st Emerging Markets 20% North America North America Europe (incl. Eastern Europe) 45% Europe 35% • Healthcare & Specialty • Healthcare & Specialty results outstanding results flat in compared to soft prior challenging price Label Sales by Geography year environm
Slide 11: Label - Year
Label Year Ended December 31st Excluding Currency (millions of CDN $) 2014 2013 Change Translation Sales $ 1,718.3 $ 1,344.2 +28% +22% (1) Operating income $ 242.7 $ 195.3 +24% +18% Return on Sales 14.1% 14.5% EBITDA(1) $ 361.3 $ 296.1 +22% +16% - 45.2 % of Sales 21.0% 22.0% The following commentary
Slide 12: Label Joint Ventures
Label Joint Ventures Periods Ended December 31st Results at 100% Three Months Twelve Months (millions of CDN $) 2014 2013 2014 2013 Sales $ 25.0 $ 19.6 $ 84.6 $ 72.3 Net income (loss) $ 4.2 $ 1.6 $ 7.3 $ 3.7 EBITDA $ 5.9 $ 3.5 $ 14.1 $ 11.3 % of Sales 23.6% 17.9% 16.7% 15.6% (1) CCL equity share $ 2
Slide 13: Avery - Fourth Quarter
Avery Fourth Quarter Ended December 31st Excluding Currency (millions of CDN $) 2014 2013 Change Translation Sales $ 154.6 $ 153.8 +1% (5%) Operating income(1) $ 22.9 $ 24.2 (5%) (10%) Return on Sales 14.8% 15.7% EBITDA(1) $ 25.9 $ 27.6 (6%) (11%) - 45.2 % of Sales 16.8% 17.9% The following commenta
Slide 14: Avery - Year
Avery Year Ended December 31st Excluding Currency (millions of CDN $) 2014 2013(3) Change Translation Sales $ 666.4 $ 355.5 NM NM Operating income(1)(2) $ 109.3 $ 40.4 NM NM Return on Sales 16.4% 11.4% EBITDA(1)(2) $ 122.2 $ 61.6 NM NM - 45.2 % of Sales 18.3% 17.3% The following commentary is based
Slide 15: Container - Fourth Quarter
Container Fourth Quarter Ended December 31st Excluding Currency (millions of CDN $) 2014 2013 Change Translation Sales $ 47.8 $ 42.3 +13% +9% (1) Operating income $ 4.1 $ 3.0 +37% +30% Return on Sales 8.6% 7.1% EBITDA(1) $ -7.7 $ 6.5 45.2 +18% +14% % of Sales 16.1% 15.4% The following commentary is
Slide 16: Container - Year
Container Year Ended December 31st Excluding Currency (millions of CDN $) 2014 2013 Change Translation Sales $ 200.9 $ 189.7 +6% +2% Operating income(1) $ 17.9 $ 16.5 +8% +2% Return on Sales 8.9% 8.7% EBITDA(1) $ 32.0 $ 30.6 +5% - - 45.2 % of Sales 15.9% 16.1% The following commentary is based on co
Slide 17: Fourth Quarter Summary
Fourth Quarter Summary Ended December 31st Excluding Currency (millions of CDN $) 2014 2013 Change Translation Label $ 58.0 $ 45.0 +29% +25% Avery 22.9 24.2 (5%) (10%) Container 4.1 3.0 +37% +30% Operating Income(1) $ 85.0 $ 72.2 +18% +14% - 45.2 Sales $ 635.8 $ 557.7 +14% +10% Return on Sales 13.4%
Slide 18: 2014 Summary
2014 Summary Year Ended December 31st Excluding Currency (millions of CDN $) 2014 2013 Change Translation Label $ 242.7 $ 195.3 +24% +18% Avery (3) 109.3 40.4 NM NM Container 17.9 16.5 +8% +2% Operating Income(1)(2) $ 369.9 $ 252.2 NM NM - 45.2 Sales $ 2,585.6 $ 1,889.4 NM NM Return on Sales 14.3% 1
Slide 19: Outlook
Outlook • No change in orders and business trends from H214 • C$ translation tailwind….8% further decline to the US$ in 2015 • Raising prices in territories affected by currency devaluations • Raw materials cost falling, pass through to customers has a limited lag so nominal impact • Solid acquisiti
Slide 20: Questions
Questions