Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Q3 2018 Earnings Presentation
18 slides from Ccl Industries Inc. Class A's earnings presentation, Nov 7, 2018
Slide 1: Investor Update 3rd Quarter 2018
Investor Update 3rd Quarter 2018 (Unaudited) November 7, 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
Slide 3: Statement of Earnings
Statement of Earnings Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 1,337.2 $ 1,206.8 +11% +9% $ 3,828.7 $ 3,521.2 +9% +8% Operating income(1) 186.2 185.3 - (2%) 586.5 532.5 +10% +10% Corporate expens
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended September 30th Three months Nine months Per Class B Share 2018 2017 Change 2018 2017 Change Net earnings - basic $ 0.63 $ 0.60 5% $ 1.99 $ 1.73 +15% Net loss from restructuring and other items 0.01 0.01 0.04 0.07 Non-cash acquisition accounting adjustment rel
Slide 5: Cash Flow
Cash Flow Periods Ended September 30th (millions of CDN $) Free Cash Flow(2) $420.6 $421.4 $147.8 $103.5 Q3 2018 Q3 2017 LTM September LTM September 2018 2017 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary September December (millions of CDN $) 2018 2017 Revolving LTD (US$410.0MM, €226.1MM, £60.3MM and C$82.5MM) $ 1,051.8 $ 1,015.1 Bonds (US$500.0MM due 2026, C$300.0MM due 2028) 945.4 628.6 Term facility (US$378.0MM) due 2020 487.9 520.4 Senior Notes LTD (US$129.0MM) due 2018 - 162
Slide 7: Capital Spending
Capital Spending Nine Months Ended September 30th, 2018 Capital Depreciation & Divisions Spending Amortization Difference CCL $ 225.6 $ 146.3 $ 79.3 Avery 8.6 12.3 (3.7) Checkpoint 29.5 21.0 8.5 Innovia 15.6 26.4 (10.8) Corporate 0.7 0.7 - $ 280.0 $ 206.7 $ 73.3 • Excludes $17.3 million proceeds fro
Slide 8: CCL
CCL Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 816.2 $ 736.6 +11% +9% $ 2,427.9 $ 2,239.4 +8% +8% Adj. operating income(3) $ 117.6 $ 102.3 +15% +13% $ 391.2 $ 345.9 +13% +13% +1% Return on Sales 14
Slide 9: CCL
CCL Periods ended September 30th CCL Consumer & Healthcare CCL Design CCL Secure • Home & Personal Care posted strong • Electronics posted • Strong results in the sales & good profitability improvement on strong sales & US gains in labels and tubes profitability gains aided by higher US$ • Lower vol
Slide 10: CCL Joint Ventures
CCL Joint Ventures Periods Ended September 30th Results at 100% Three months Nine months (millions of CDN $) 2018 2017 2018 2017 Sales Label Ventures $ 30.6 $ 31.5 $ 88.0 $ 96.0 • Acrus CCL Chile Rheinfelden - 6.1 1.3 13.9 acquired Q417 $ 30.6 $ 37.6 $ 89.3 $109.9 • CCL Korsini U.S. Net income throu
Slide 11: Avery
Avery Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 198.4 $ 212.0 (6%) (9%) $ 538.8 $ 581.9 (7%) (7%) Operating income(1) $ 40.8 $ 49.9 (18%) (21%) $ 109.5 $ 123.8 (12%) (11%) +13% Return on Sales 20.
Slide 12: Checkpoint
Checkpoint Periods ended September 30th Three months Change Nine months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 168.8 $ 162.6 +4% +2% $ 523.7 $ 482.9 +8% +8% Operating income(1) $ 25.5 $ 21.7 +18% +17% $ 75.9 $ 56.5 +34% +34% Return on Sales 15.1% 13.3% 1
Slide 13: Innovia
Innovia Periods ended September 30th Three months Change Nine months Seven months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 153.8 $ 95.6 +61% +58% $ 338.3 $ 217.0 n.m. n.m. Adj. operating income(4)(5) $ 6.6 $ 11.4 (42%) (44%) $ 14.2 $ 21.5 n.m. n.m. Return
Slide 14: Summary
Summary Periods ended September 30th Three months Change Nine months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX CCL(3) $ 117.6 $ 102.3 +15% +13% $ 391.2 $ 345.9 +13% +13% Avery 40.8 49.9 (18%) (21%) 109.5 123.8 (12%) (11%) Checkpoint 25.5 21.7 +18% +17% 75.9 56.5 +3
Slide 15: Outlook
Outlook Factors to consider for Q4 2018…… • Modest FX tailwind at today’s exchange rates • CCL Label & CCL Design have solid order backlogs, CCL Secure, will sequentially improve. Q417 profitability 30% up on Q416 • Q417 included two technology roll outs at Checkpoint • Avery comparatives ease, pric
Slide 16: Questions
Questions Page 16
Slide 17: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated September 30, 2018 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 nine-month period end
Slide 18: Segment Reporting
Segment Reporting Effective January 1, 2018, the Company changed its reportable segments to incorporate all entities previously reported within the Container Segment in the CCL Segment, to more closely align with the current management structure and reporting. Comparative segment information has bee