21 slides from Ccl Industries Inc. Class A's earnings presentation, Nov 6, 2014
Slide 1: Investor Update 3rd Quarter 2014 Review
CCL Industries Inc. Investor Update 3rd Quarter 2014 Review November 6, 2014
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 - Third Quarter
Statement of Earnings Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 689.7 $ 606.6 +14% +8% (1)(2) Operating income 107.2 67.8 +58% +48% Corporate expense 11.3 9.3 95.9 58.5 Finance cost, net 6.5 7.7 89.4 50.8 Restructuring and other ite
Slide 4: Statement of Earnings - Nine Months
Statement of Earnings Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 1,949.8 $ 1,331.7 +46% +38% 37.5% (1)(2) Operating income 284.9 179.9 +58% +47% Corporate expense 24.8 23.7 260.1 156.2 Finance cost, net 19.5 18.9 240.6 137.3 Restructur
Slide 5: Earnings per Class B Share
Earnings per Class B Share Periods Ended September 30th Three Months Nine Months Per Class B Share 2014 2013 Change 2014 2013 Change Net earnings - basic $ 1.83 $ 0.68 +169% $ 4.98 $ 2.46 +102% Net loss from restructuring and other items - 0.36 0.04 0.42 Avery and DES finance costs - - - 0.02 Non-ca
Slide 6: Cash Flow Highlights
Cash Flow Highlights Periods Ended September 30th (Millions of Cdn$) Statement of Cash Flows Nine Months Ended September 30th 2014 2013 Free Cash Flow* Net earnings $ 171.0 $ 84.1 Adjustments for: 238.3 Depreciation & amortization 109.8 86.6 187.6 Net finance cost 19.5 18.9 Equity accounted investme
Slide 7: Cash & Debt Summary
Cash & Debt Summary (Millions of Cdn$) September December September 2014 2013 2013 Senior Notes LTD (US$239.0MM) $ 267.7 $ 254.2 $ 246.2 Non-revolving LTD (US$250.0MM and EUR61.6MM) 367.2 388.1 384.7 Revolving LTD (US$51.5MM) 57.7 59.6 162.9 Debt - all other 14.2 10.1 11.7 Total debt 706.8 712.0 805
Slide 8: Capital Spending Highlights
Capital Spending Highlights Nine Months Ended September 30th (Millions of Cdn$) Capital Divisions Spending Depreciation( 1 ) Difference Label $ 85.4 $ 83.6 $ 1.8 Container $ 17.2 10.5 6.7 Avery $ 8.0 8.5 (0.5) $ 110.6 $ 102.6 $ 8.0 (1) excludes amort izat ion of int angibles and ot her asset s • $43
Slide 9: Label - Third Quarter
Label Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 437.4 $ 360.3 +21% +15% Operating income(1) $ 59.4 $ 48.7 +22% +16% Return on sales 13.6% 13.5% EBITDA (1) $ 89.7 $ 76.5 +17% +15% % of Sales 20.5% 21.2% The following commentary is ba
Slide 10: Label - North America
Label Third Quarter Ended September 30th (Millions of Cdn$) North America (46% of Label sales) • Healthcare & Specialty results improved substantially over a soft prior year period • Home & Personal Care legacy units posted modest sales & profit gains in slow end markets; Sancoa results seasonally s
Slide 11: Label - Europe
Label Third Quarter Ended September 30th (Millions of Cdn$) Europe (35% of Label sales) (incl Eastern Europe) • Healthcare & Specialty results improved on first Bandifx contribution • Modest sales gains at Home & Personal Care with better profit margins on improved internal execution • Food & Bevera
Slide 12: Label - Emerging Markets
Label Third Quarter Ended September 30th (Millions of Cdn$) Emerging Markets (19% of Label sales) (Asia, Latin America, Australia & South Africa) • Latin America posted double digit sales & profit gains with a strong performance in Mexico. Markets in Brazil remain soft although sales were up. • Sale
Slide 13: Label - Nine Months
Label Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 1,284.9 $ 982.5 +31% +22% Operating income(1) $ 184.8 $ 150.3 +23% +15% Return on sales 14.4% 15.3% EBITDA (1) $ 273.6 $ 224.6 +22% +15% % of Sales 21.3% 22.9% The following commentary i
Slide 14: Label Joint Ventures
Label Joint Ventures Periods Ended September 30th (Millions of Cdn$) Three Months Nine Months Results at 100% 2014 2013 2014 2013 Sales $ 20.1 $ 18.2 $ 59.6 $ 52.7 Net income (loss) $ 1.0 $ 0.9 $ 3.1 $ 2.2 EBITDA $ 2.9 $ 2.7 $ 8.1 $ 7.8 % of Sales 14.4% 14.8% 13.6% 14.8% CCL equity share(1) $ 0.5 $
Slide 15: Avery - Third Quarter
Avery Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 204.7 $ 201.8 +1% (5%) (1)(2) Operating income $ 44.8 $ 16.2 +177% +144% Return on sales 21.9% 8.0% EBITDA (1) $ 48.0 $ 34.0 +41% +121% % of Sales 23.4% 16.8% • Results exceeded expect
Slide 16: Avery - Nine Months
Avery Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency 2014 2013(3) Change Translation Sales $ 511.8 $ 201.8 NM NM Operating income(1)(2) $ 86.3 $ 16.2 NM NM Return on sales 16.9% 8.0% EBITDA (1) $ 96.2 $ 34.0 NM NM % of Sales 18.8% 16.8% • Excellent year • Seasonally slow peri
Slide 17: Container - Third Quarter
Container Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 47.6 $ 44.5 +7% +4% (1) Operating income $ 3.0 $ 2.9 +3% (2%) Return on sales 6.3% 6.5% (1) EBITDA $ 6.5 $ 6.4 +2% (2%) % of Sales 13.7% 14.4% The following commentary is based on
Slide 18: Container - Nine Months
Container Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Sales $ 153.1 $ 147.4 +4% - (1) Operating income $ 13.8 $ 13.4 +3% (3%) Return on sales 9.0% 9.1% (1) EBITDA $ 24.3 $ 24.0 +1% (4%) % of Sales 15.9% 16.3% The following commentary is based o
Slide 19: Operating Income - Third Quarter
Operating Income(1) Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Label $ 59.4 $ 48.7 +22% +16% Avery 44.8 16.2 +177% +144% Container 3.0 2.9 +3% (2%) Operating income(1)(2) $ 107.2 $ 67.8 +58% +48% Sales $ 689.7 $ 606.6 +14% +8% Return on sale
Slide 20: Operating Income - Nine Months
Operating Income(1) Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency 2014 2013 Change Translation Label $ 184.8 $ 150.3 +23% +15% Avery 86.3 16.2 NM NM Container 13.8 13.4 +3% (3%) Operating income(1)(2) $ 284.9 $ 179.9 +58% +47% Sales $ 1,949.8 $ 1,331.7 +46% +38% Return on sa
Slide 21: Fourth Quarter 2014 Outlook
Fourth Quarter 2014 Outlook • Q4 comps challenging • Decelerating Emerging Markets growth reported at many customers now visible in order patterns • North American consumer markets remain tepid despite solid macro economic news; European markets steady so far • Robust Automotive market continues • N