22 slides from Ccl Industries Inc. Class A's earnings presentation, Aug 4, 2011
Slide 1: Investor Update: 2nd Quarter Review
CCL Industries Inc. Investor Update 2nd Quarter Review August 4, 2011 1
Slide 2: Disclaimer
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 statement
Slide 3: Adoption of IFRS
Adoption of IFRS (Millions of Cdn$) • The financial information presented herein has been prepared on the basis of International Financial Reporting Standards (“IFRS”). The amounts for the six months ended June 30, 2010, have been restated to reflect our adoption of IFRS, with effect from January 1,
Slide 4: Statement of Earnings - Second Quarter
Statement of Earnings Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 318.9 $ 302.2 +6% +5% Operating income * 43.1 39.7 +9% +8% Corporate expense 7.2 5.2 +38% 35.9 34.5 Finance expense, net 5.3 6.5 (18%) 30.6 28.0 Restructuring & other items
Slide 5: Statement of Earnings - Six Months
Statement of Earnings Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 634.5 $ 609.3 +4% +6% Operating income * 91.7 83.0 +10% +13% Corporate expense 13.4 9.9 +35% 78.3 73.1 Finance expense, net 11.0 13.1 (16%) 67.3 60.0 Restructuring & other item
Slide 6: Earnings per Class B Share
Earnings per Class B Share Second Quarter Ended June 30th Second Quarter Year-to-date Per Class B Share 2011 2010 Change 2011 2010 Change Net earnings - basic $ 0.66 $ 0.53 +25% $ 1.47 $ 1.28 +15% Diluted earnings $ 0.64 $ 0.52 +23% $ 1.44 $ 1.26 +14% Restructuring & other items - loss $ - $ - $ (0.
Slide 7: Impact of Changes in Exchange Rates
Impact of Changes in Exchange Rates • 96% of year-to-date 2011 sales to end use customers were denominated in foreign currencies. • Estimated impact below reflects foreign currency translation of all foreign operations. Annual Annual 2Q11 Act YTD 2011 2010 Act 2009 Act Impact of Currency vs. vs. vs.
Slide 8: Cash Flow Highlights
Cash Flow Highlights Second Quarter Ended June 30th (Millions of Cdn$) Free Cash Flow* Statement of Cash Flows 85.8 78.7 Six Months Ended June 30th 2011 2010 Net earnings $ 48.7 $ 42.0 Depreciation & amortization 48.9 47.3 40.3 Chg. in non-cash working capital (29.2) (28.3) Other 2.4 1.4 - Cash from
Slide 9: Cash & Debt Summary
Cash & Debt Summary As At June 30th (Millions of Cdn$) Increase 2011 2010 (Decrease) Long-term debt - senior notes (2011 - US$ 337.7 MM, 2010 - US$ 438.1 MM) $ 325.7 $ 466.4 $ (140.7) Debt - all other 28.6 37.2 (8.6) Total debt 354.3 503.6 (149.3) Cash and cash equivalents (103.0) (165.7) 62.7 Net d
Slide 10: Capital Spending Highlights
Capital Spending Highlights Six Months Ended June 30th, 2011 (Millions of Cdn$) Capital Divisions Spending *Depreciation Difference Label $ 49.9 $ 35.1 $ 14.8 Container 2.1 7.0 $ (4.9) Tube 1.8 3.5 $ (1.7) Corporate 0.1 0.2 $ (0.1) $ 53.9 $ 45.8 $ 8.1 * excludes amortization of intangibles and other
Slide 11: Income from Operations - Second Quarter
Income from Operations Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Label $ 37.3 $ 39.0 (4%) (5%) Container 2.1 (2.2) n.m. n.m. Tube 3.7 2.9 +28% +34% Operating income 43.1 39.7 +9% +8% Corporate expense 7.2 5.2 +38% 35.9 34.5 Finance expense (net
Slide 12: Income from Operations - Six Months
Income from Operations Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Label $ 79.1 $ 82.0 (4%) (2%) Container 5.8 (3.9) n.m. n.m. Tube 6.8 4.9 +39% +45% Operating income 91.7 83.0 +10% +13% Corporate expense 13.4 9.9 +35% 78.3 73.1 Finance expense (net)
Slide 13: Label - Second Quarter
Label Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 255.9 $ 242.1 +5.7% +4% Operating income $ 37.3 $ 39.0 (4.4%) (5%) 304% Return on sales 14.6% 16.1% EBITDA $ 56.7 $ 56.7 - 0(1%) % % of Sales 22.2% 23.4% The following commentary is based
Slide 14: Label - North America
Label Second Quarter Ended June 30th (Millions of Cdn$) North America (34% of sales) • Soft Home & Personal Care (HPC) sales as customers reduced Marketing initiatives; profit margins stable on improved mix. • Healthcare organic growth rate flat, profitability sequentially improved as expected. Sert
Slide 15: Label - Europe
Label Second Quarter Ended June 30th (Millions of Cdn$) Europe (44% of sales) • HPC sales up slightly, profitability declined on competitive pricing challenges and cost inflation. • Healthcare & Specialty sales and profitability improved. • Sleeve sales down slightly and profitability declined on pr
Slide 16: Label - Emerging Markets
Label Second Quarter Ended June 30th (Millions of Cdn$) Emerging Markets (22% of sales) • Double digit sales growth continued in Latin America, profitability improved. • Strong double digit sales growth continued in Asia, particularly in the ASEAN region; profitability improved significantly includi
Slide 17: Label - Six Months
Label Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 503.6 $ 491.0 +2.6% +4% Operating income $ 79.1 $ 82.0 (3.5%) (2%) 304% Return on sales 15.7% 16.7% EBITDA $ 117.1 $ 118.2 (0.9%) +1% 704% % of Sales 23.3% 24.1% The following commentary is ba
Slide 18: Container - Second Quarter
Container Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 42.6 $ 39.7 +7.3% +10% Operating income $ 2.1 $ (2.2) n.m. n.m. Return on sales 4.9% (5.5%) EBITDA $ 5.7 $ 1.3 n.m. n.m. % of Sales 13.4% 3.3% The following commentary is based on cons
Slide 19: Container - Six Months
Container Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 90.2 $ 80.0 +12.8% +16% Operating income $ 5.8 $ (3.9) n.m. n.m. Return on sales 6.4% (4.9%) EBITDA $ 12.8 $ 3.2 n.m. n.m. % of Sales 14.2% 4.0% The following commentary is based on consta
Slide 20: Tube - Second Quarter
Tube Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 20.4 $ 20.4 - +7% Operating income $ 3.7 $ 2.9 +27.6% +34% Return on sales 18.1% 14.2% EBITDA $ 5.4 $ 4.8 +12.5% +21% % of Sales 26.5% 23.5% The following commentary is based on constant Ca
Slide 21: Tube - Six Months
Tube Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 40.7 $ 38.3 +6.3% +13% Operating income $ 6.8 $ 4.9 +38.8% +45% Return on sales 16.7% 12.8% EBITDA $ 10.3 $ 8.7 +18.4% +25% % of Sales 25.3% 22.7% The following commentary is based on constant
Slide 22: Summary & Outlook
Summary & Outlook • Pleased with first half performance, particularly at Container & Tube with continuing turnaround . • Comps at Container remain soft in the 2nd half but harden considerably at Tube. • Comps at Label ease in the 2nd half; Sertech & Pacman acquisitions will also have positive impact