Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Credit Suisse 30th Annual Basic Materials Conference (September 2017)
21 slides from Ccl Industries Inc. Class A's conference presentation, September 2017
Slide 1: CCL Industries Profile
CCL Industries Profile Geoffrey T Martin President & CEO September 2017
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: CCL.B
CCL.B • Listed on the TSX in Toronto, Canada. Entered TSX 60 in June 2017 as market cap passed $10 billion • Lang family owns 17.7% of the outstanding equity, including substantially all A class voting shares. 3 family members on the Board, passive in the business, active on all shareholder matters
Slide 4: Sales by Segment and Geography
CCL Industries Sales by Segment Sales by Geography Sales by Segment Aus- . ZA Innovia 6% 8% Asia Checkpoint 12% Europe 14% Lat Am 34% CCL 6% 58% Avery 16% Canada Container US 3% 4% 39% $5 billion pro‐forma sales with 20% EBITDA margin Page 4
Slide 5: CCL Segment
CCL Segment Largest business: $3 billion pro-forma sales Home & Personal Healthcare & Food & Beverage CCL Design CCL Secure Care Specialty Page 5
Slide 6: CCL Secure
CCL Secure Substrate Fully printed Currency 6
Slide 7: CCL Secure
CCL Secure Wigton, UK (co located with Innovia Films) Greensboro, North Carolina (Banknote Corporation of America) Queretaro, Mexico Melbourne, Australia (co located with Innovia Films) 7
Slide 8: CCL
CCL Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 728.8 $ 604.0 +21% +18% $ 1,402.0 $ 1,226.3 +14% +15% Adj. operating income(3)(4) $ 117.5 $ 91.3 +29% +26% $ 231.9 $ 195.2 +19% +20% Return on Sales 16.1% 1
Slide 9: CCL Container
CCL Container • Premium Decorated Aluminum Aerosol Cans Sales EBITDA (C$ millions) (C$ millions) • Plants in the United States & Mexico • Home & Personal Care customers • Joint Venture aluminum slug production $201 $226 $231 $42 $46 $162 $176 $182 $190 $31 $32 $140 $23 $26 $8 $10 2009 2010 2011 2012
Slide 10: CCL Container
CCL Container Periods ended June 30th Three months Change Six months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 52.3 $ 56.2 (7%) (10%) $ 100.8 $ 121.1 (17%) (15%) Operating income(1) $ 5.6 $ 7.9 (29%) (32%) $ 11.7 $ 18.5 (37%) (35%) Return on Sales 10.7% 14.
Slide 11: Avery
Avery • Highest return business at CCL Sales EBITDA • Looking to Grow by… (C$ millions) (C$ millions) – Bolt on Acquisitions $183 $168 – Focus on new channels & products $666 $783 $788 $122 $356 $62 2013 2014 2015 2016 2013 2014 2015 2016 2016 Sales by Geography Asia, Latin Pacific Canada America 4%
Slide 12: Avery
Avery Periods Ended June 30th Three months Change Six months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 209.1 $ 207.4 +1% (2%) $ 369.9 $ 387.0 (4%) (4%) Operating income(1) $ 45.4 $ 50.6 (10%) (13%) $ 73.9 $ 86.0 (14%) (14%) Return on Sales 21.7% 24.4% 20.0%
Slide 13: Checkpoint
Checkpoint Merchandise Availability Solutions Apparel Labeling Solutions (MAS) (ALS) Web-based data service to Segment Shrink and inventory management manage pricing, inventory tracking Description solutions for retailers and e-tailers and merchandising of apparel • Electronic article surveillance (
Slide 14: Checkpoint
Checkpoint • Small cap public company acquired May 13th 2016 for US$10.15 per share or $556 million or 6.7X EBITDA • Investment base at $466 million end June 2017, entry now at 4+X LTM EBITDA 14
Slide 15: Checkpoint
Checkpoint Periods ended June 30th Three months Change Six months Change (millions of CDN $) 2017 2016(**) Reported Ex FX 2017 2016 (6) Reported Ex FX Sales $ 171.0 $ 92.6 n.m. n.m. $ 320.3 $ 92.6 n.m. n.m. Adj. operating income(5) $ 19.5 $ 9.9 n.m. n.m. $ 34.8 $ 9.9 n.m. n.m. Return on Sales 11.4%
Slide 16: Innovia Films
Innovia Films @ innova
Slide 17: Innovia
Innovia Periods ended June 30th Three months Change Four months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 91.7 $ - n.m. n.m. $ 121.4 $ - n.m. n.m. Adj. operating income(7) $ 6.7 $ - n.m. n.m. $ 10.1 $ - n.m. n.m. Return on Sales 7.3% - 8.3% - EBITDA(1) $ 14
Slide 18: Statement of Earnings
Statement of Earnings (millions of CDN $) FY2016 FY2015 Reported Ex FX HY2017 HY2016 Reported Ex FX Sales $ 3,974.7 $ 3,039.1 31% 30% $ 2,314.4 $ 1,827.0 27% 28% Operating income (1) 603.3 496.6 21% 20% 347.2 293.0 18% 19% Corporate expense 48.2 52.3 27.7 24.9 555.1 444.3 319.5 268.1 Finance cost, n
Slide 19: Cash & Debt Summary
Cash & Debt Summary June December (millions of CDN $) 2017 2016 Revolving LTD (US$355.6MM, €223.7MM, £65.3MM and C$337.0MM) $ 1,239.6 $ 756.6 Bond (US$500.0MM) due 2026 648.2 671.4 Two-year Term Facility (US$438.0MM) 567.8 - Senior Notes LTD (US$129.0MM) due 2018 167.2 173.2 Debt - all other (2.0) 0
Slide 20: Questions
Questions
Slide 21: Definitions Appendix
Definitions Appendix (1) Non‐IFRS measure; see MD&A dated June 30, 2017 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 three‐month and six‐month
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