25 slides from Ccl Industries Inc. Class A's conference presentation, September 2015
Slide 1: CCL Industries Profile
CCL Industries Profile Geoff Martin President & CEO September 2015
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: Overview
Overview $200 Share Price Growth $180 $160 Ownership $140 $120 • TSX listed $100 • CCL.A, voting • CCL.B, non-voting $80 $60 • CCL.B average volume $40 up 39% to 162,000/day $20 $0 • Lang family: owns 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 virtually all of the vot
Slide 4: Segmentation
Segmentation >C$2.5 Billion Subtitle goes here Sales by Segment C$ 2.8 Sales by Geography Billion . Aus-ZA Container Asia 3% 8% 5% Lat Am Europe 8% 28% Avery 26% Label 66% Canada 7% US 49% Page 4
Slide 5: CCL Label
CCL Label $1.9 billion pro-forma sales across 4 global vertical markets 1. Home & 2. Healthcare & 3. Food & 4. CCL Design Personal Care Specialty Beverage Page 5
Slide 6: Label
Label Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 468.9 $ 423.8 +11% +8% $ 955.0 $ 847.5 +13% +10% Operating income(1) $ 71.9 $ 56.0 +28% +26% $ 153.8 $ 125.4 +23% +19% Return on Sales 15.3% 13.2% 16.1% 1
Slide 7: 1. Home & Personal Care
1. Home & Personal Care Revenue Breakdown Emerging Markets 26% North America Europe 52% 22% Infrastructure – 32 Plants Market Position Customers • 3+ times larger than the • 9 in the U.S. nearest competitor • P&G 8 Label, 3 Tube • 25% global market share in • Unilever • 6 in Europe UK, FRA, GER, PLD
Slide 8: 2. Healthcare and Specialty
2. Healthcare and Specialty Revenue Breakdown EM 9% Europe North 31% America 60% Infrastructure – 25 Plants Market Position Customers • 3-4 + times larger than the • 14 in the N.A. nearest competitor • Big Pharma CAN(2), USA(10), PR(2) GSK, Novartis, J&J • 7 in Europe • 15-20% global market share •
Slide 9: 3. Food & Beverage
3. Food & Beverage Revenue Breakdown North Emerging America Markets 17% 27% Europe 56% Infrastructure – 22 Plants Market Position Customers • No. 2 global player Sleeves • 5 in the United States (Fuji Seal) • Beer Heineken, Carlsberg, SAB Miller • 7 in Europe • No. 2 global player in PSL for UK(2),
Slide 10: 4. CCL Design
4. CCL Design Revenue Breakdown EM 3% North Europe America 45% 52% Infrastructure – 10 Plants Market Position Customers • Smallest vertical within CCL • 5 in the United States Label, highly fragmented • European Automotive Daimler, VW, BMW, Fiat • 4 in Europe • Most significant opportunity GER(3), I
Slide 11: Label Joint Ventures
Label Joint Ventures Periods Ended June 30th Results at 100% Three months Six months (millions of CDN $) 2015 2014 2015 2014 Sales $ 25.2 $ 20.8 $ 48.5 $ 39.5 Net income (loss) $ 1.4 $ 1.9 $ 2.8 $ 2.1 EBITDA $ 3.9 $ 2.9 $ 7.5 $ 5.3 % of Sales 15.5% 13.9% 15.5% 13.4% CCL equity share (*) $ 0.7 $ 1.0
Slide 12: Avery: Printable Media
Avery: Printable Media Page 12
Slide 13: WePrint - Design & Print On-Line
WePrint - Design & Print On-Line (1) Start at avery.com/print to find the product you want to print (2) Select a pre-designed template or start with a blank (3) Edit using the design tools, including circular text, QR codes, drag-and-drop mail merge, color changer and more (4) Preview, print and sav
Slide 14: Nilles: Next step for “WePrint”
Nilles: Next step for “WePrint” Page 14
Slide 15: p/c Nametag Acquisition
p/c Nametag Acquisition Page 15
Slide 16: Complementary Products
Complementary Products Page 16 16
Slide 17: Avery
Avery Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 198.2 $ 174.2 +14% +6% $ 358.4 $ 307.1 +17% +10% Operating income(1) $ 45.3 $ 28.4 +60% +51% $ 71.8 $ 41.5 +73% +67% Return on Sales 22.9% 16.3% 20.0% 13.
Slide 18: CCL Container
CCL Container Aerosol Containers Specialty Bottles Market Situation: • 1 of 3 producers in the USA, 1 of 2 in Mexico • 50% HPC market share in NAFTA zone • Main customers HPC aerosols • Specialty Beverage bottles niche Page 18
Slide 19: Container
Container Periods ended June 30th Three months Change Six months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 54.4 $ 52.4 +4% (1%) $ 114.0 $ 105.5 +8% +3% Operating income(1) $ 5.4 $ 4.8 +13% +6% $ 14.1 $ 10.8 +31% +23% Return on Sales 9.9% 9.2% 12.4% 10.2% EB
Slide 20: Rheinfelden Americas – “Slugs”
Rheinfelden Americas – “Slugs” Page 20
Slide 21: Statement of Earnings
Statement of Earnings Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2015 2014 Reported Ex FX 2015 2014 Reported Ex FX Sales $ 721.5 $ 650.4 +11% +7% $ 1,427.4 $ 1,260.1 +13% +9% Operating income(1) 122.6 89.2 +37% +33% 239.7 177.7 +35% +31% Corporate expense 13.0
Slide 22: Cash & Debt Summary
Cash & Debt Summary June June (millions of CDN $) 2015 2014 Senior Notes LTD (US$239.0MM) $ 298.5 $ 255.0 Non-revolving LTD (US$218.0MM and EUR61.6MM) 358.0 367.5 Revolving LTD (US$17.0MM) 21.2 140.3 Debt - all other 18.1 11.8 Total debt 695.8 774.6 Less: Cash and cash equivalents (234.7) (208.3) Ne
Slide 23: Outlook
Outlook • Avery will be challenged to match Q314 ‘back to school’: exiting certain lower margin binder categories • Orders and business outlook otherwise unchanged; comps tougher for 2H15 • C$ translation tailwind….further 8% decline to the US$ so far in Q3 • Most FX related price increases now impl
Slide 24: Questions
Questions Page 24
Slide 25: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated July 31, 2015 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 Page 25