Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Q2 2013 Earnings Presentation
20 slides from Ccl Industries Inc. Class A's earnings presentation, Aug 1, 2013
Slide 1: Investor Update 2nd Quarter 2013 Review
CCL Industries Inc. Investor Update 2nd Quarter 2013 Review August 1, 2013
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 - Second Quarter
Statement of Earnings Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 361.4 $ 337.1 +7% +5% Operating income* 50.2 47.9 +5% +3% Corporate expense 6.9 6.5 +6% 43.3 41.4 Finance cost, net 5.9 5.2 +13% 37.4 36.2 Restructuring and other items 1.4
Slide 4: Statement of Earnings - Six Months
Statement of Earnings Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 725.1 $ 678.5 +7% +6% Operating income* 112.1 100.5 +12% +10% Corporate expense 14.4 13.0 +11% 97.7 87.5 Finance cost, net 11.1 10.5 +6% 86.6 77.0 Restructuring and other items
Slide 5: Earnings per Class B Share
Earnings per Class B Share Periods Ended June 30th Three Months Six Months Per Class B Share 2013 2012 Change 2013 2012 Change Net earnings - basic $ 0.77 $ 0.77 - $ 1.78 $ 1.68 +6% Diluted earnings $ 0.76 $ 0.76 - $ 1.75 $ 1.65 +6% Restructuring and other items - loss $ 0.05 $ - $ 0.08 $ - Adjusted
Slide 6: Cash Flow Highlights
Cash Flow Highlights Periods Ended June 30th (Millions of Cdn$) Free Cash Flow* 112.4 Statement of Cash Flows Six Months Ended June 30th 91.5 2013 2012 Net earnings $ 60.5 $ 56.3 Adjustments for: Depreciation & amortization 54.0 50.6 Net finance cost 11.1 10.5 Equity accounted investments 1.9 (0.1)
Slide 7: Cash & Debt Summary
Cash & Debt Summary As At June 30th (Millions of Cdn$) Increase 2013 2012 (Decrease) Long-term debt - senior notes (2013 - US$ 319.0 MM, 2012 - US$ 328.4 MM) $ 335.5 $ 334.3 $ 1.2 Debt - all other 488.3 16.7 471.6 Total debt 823.8 351.0 472.8 Less: Cash and cash equivalents (683.9) (162.3) (521.6) N
Slide 8: Capital Spending Highlights
Capital Spending Highlights Six Months Ended June 30th (Millions of Cdn$) Capital Divisions Spending Depreciation( 1 ) Difference Label $ 57.9 $ 43.9 $ 14.0 Container $ 2.3 7.1 (4.8) Avery* $ 3.0 - 3.0 Corporate - 0.1 (0.1) $ 63.2 $ 51.1 $ 12.1 (1) excludes amort izat ion of int angibles and ot her
Slide 9: Label - Second Quarter
Label Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 309.9 $ 289.0 +7% +6% Operating income* $ 45.0 $ 43.6 +3% +1% Return on sales 14.5% 15.1% EBITDA* $ 68.7 $ 65.5 +5% +3% % of Sales 22.2% 22.7% The following commentary is based on constant
Slide 10: Label North America
Label Second Quarter Ended June 30th (Millions of Cdn$) North America (37% of Label sales) • Healthcare & Specialty results were a significant comparative issue: – FDA quarantines at pharmaceutical customers – Strong generic launch sales in Q212 – Slower lawn & garden chemical season driven by poor
Slide 11: Label Europe
Label Second Quarter Ended June 30th (Millions of Cdn$) Europe (40% of Label sales) (incl. Eastern Europe) • Home & Personal Care sales up above market growth rates with improved profitability. • Healthcare & Specialty sales were up slightly, profit gains stronger: easy comps to a soft prior year qu
Slide 12: Label Emerging Markets
Label Second Quarter Ended June 30th (Millions of Cdn$) Emerging Markets (23% of Label sales) (Asia, Latin America, Australia & South Africa) • Outstanding quarter in Mexico, matched by Brazil in local currency; portion of the gains lost on translation. New plant in Sao Paulo began to trade. • Excel
Slide 13: Label - Six Months Ended June 30
Label Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 622.2 $ 584.2 +7% +6% Operating income* $ 101.5 $ 93.8 +8% +7% Return on sales 16.3% 16.1% EBITDA* $ 148.0 $ 137.1 +8% +7% % of Sales 23.8% 23.5% The following commentary is based on constant
Slide 14: Label Joint Ventures
Label Joint Ventures Periods Ended June 30th (Millions of Cdn$) Three Months Six Months Results at 100% 2013 2012 2013 2012 Sales $ 18.5 $ 14.5 $ 34.5 $ 28.0 Net income (loss) $ 0.5 $ - $ 1.2 $ 1.7 EBITDA $ 2.8 $ 1.7 $ 5.1 $ 3.8 % of Sales 15.1% 11.7% 14.8% 13.6% CCL equity share* $ 0.2 $ - $ 0.6 $
Slide 15: Container - Second Quarter
Container Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 51.5 $ 48.1 +7% +4% Operating income* $ 5.2 $ 4.3 +21% +18% Return on sales 10.1% 8.9% EBITDA* $ 8.7 $ 7.7 +13% +11% % of Sales 16.9% 16.0% The following commentary is based on constan
Slide 16: Container - Six Months Ended June 30
Container Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Sales $ 102.9 $ 94.3 +9% +7% Operating income* $ 10.6 $ 6.7 +58% +53% Return on sales 10.3% 7.1% EBITDA* $ 17.7 $ 13.6 +30% +27% % of Sales 17.2% 14.4% The following commentary is based on constan
Slide 17: Operating Income - Second Quarter
Operating Income* Second Quarter Ended June 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Label $ 45.0 $ 43.6 +3% +1% Container 5.2 4.3 +21% +18% Operating income* $ 50.2 $ 47.9 +5% +3% Sales $ 361.4 $ 337.1 +7% +5% Return on sales 13.9% 14.2% EBITDA* $ 70.7 $ 66.9 +6% +3%
Slide 18: Operating Income - Six Months
Operating Income* Six Months Ended June 30th (Millions of Cdn$) Excluding Currency 2013 2012 Change Translation Label $ 101.5 $ 93.8 +8% +7% Container 10.6 6.7 +58% +53% Operating income* $ 112.1 $ 100.5 +12% +10% Sales $ 725.1 $ 678.5 +7% +6% Return on sales 15.5% 14.8% EBITDA* $ 151.7 $ 138.1 +10%
Slide 19: Avery OCP & DES acquisition
Avery OCP & DES acquisition • $2 million transaction fees H113; 5c EPS impact for Q213. • Soft Q113 at OCP North America: significant customer Q412 pre-buys; inflated 2012 performance: estimated +$15 million EBITDA. • PSA amended: $35 million adjustment to working capital. • With inventories worked
Slide 20: Summary & Outlook
Summary & Outlook • Pleased with H113 and the acquisition integration progress. • Q213 order intake at CCL core business moderated after strong Q113, early signs of slow improvement in July; Q313 comps challenging. • Important back-to-school season at Avery in full swing. • From Q313 Avery, Containe