18 slides from Ccl Industries Inc. Class A's earnings presentation, Feb 22, 2019
Slide 1: Investor Update 4th Quarter 2018
Investor Update 4th Quarter 2018 (Unaudited) February 22, 2019
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 December 31st Three months Change Twelve months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 1,332.8 $ 1,234.5 +8% +7% $ 5,161.5 $ 4,755.7 +9% +8% - - - - Operating income(1) 189.2 205.1 (8%) (9%) 775.7 737.5 +5% +5% Corpora
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended December 31st Three months Twelve months Per Class B Share 2018 2017 Change 2018 2017 Change Net earnings - basic $ 0.65 $ 0.97 (33%) $ 2.64 $ 2.70 (2%) Net loss from restructuring and other items 0.03 - 0.07 0.07 Non-cash acquisition accounting adjustment re
Slide 5: Cash Flow
Cash Flow Periods Ended December 31st (millions of CDN $) Free Cash Flow(2) $442.5 $438.3 $261.6 $239.7 Q4 2018 Q4 2017 LTM December LTM December 2018 2017 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary December December (millions of CDN $) 2018 2017 Revolving LTD (US$352.0MM, €223.2MM, £60.3MM and C$79.5MM) $ 1,013.5 $ 1,015.1 Bonds (US$500.0MM due 2026, C$300.0MM due 2028) 981.8 628.6 Term facility (US$366.0MM due 2020) 499.1 520.4 Senior Notes LTD (US$129.0MM due 2018) - 162.
Slide 7: Capital Spending
Capital Spending Twelve Months Ended December 31st, 2018 Capital Depreciation & Divisions Spending Amortization Difference CCL $ 280.0 $ 194.9 $ 85.1 Avery 11.6 17.6 (6.0) Checkpoint 37.9 27.9 10.0 Innovia 22.7 36.6 (13.9) Corporate 0.7 1.0 (0.3) $ 352.9 $ 278.0 $ 74.9 • Excludes $23 million proceed
Slide 8: CCL
CCL Periods Ended December 31st Three months Change Twelve months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 827.20 $ 780.00 +6% - +5% - $ 3,255.10 $ 3,019.40 +8% - +7% - Adj. operating income(3) $ 120.1 $ 133.4 (10%) - (11%) - $ 511.3 $ 479.2 +7% - +6% +1%
Slide 9: CCL
CCL Periods Ended December 31st CCL Consumer & Healthcare CCL Design CCL Secure • Home & Personal Care posted solid sales • Electronics sales up • Good profit growth but lower profits vs strong prior year moderately on performance in acquisitions & FX. Australia • Healthcare & Specialty results impr
Slide 10: CCL Joint Ventures
CCL Joint Ventures Periods Ended December 31st Results at 100% Three months Twelve months (millions of CDN $) 2018 2017 2018 2017 Sales Label Ventures $ 31.4 $ 29.3 $119.4 $125.2 Rheinfelden - 6.3 1.3 20.3 • Acrus CCL Chile $ 31.4 $ 35.6 $120.7 $145.5 acquired Q417 Net income • CCL Korsini U.S. thro
Slide 11: Avery
Avery Periods Ended December 31st Three months Change Twelve months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 173.10 $ 171.00 +1% - (2%) - $ 711.90 $ 752.90 (5%) - (6%) - Operating income(1) $ 36.0 $ 40.7 (12%) - (15%) - $ 145.5 $ 164.5 (12%) - (12%) +13% R
Slide 12: Checkpoint
Checkpoint Periods Ended December 31st Three months Change Twelve months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 189.2 $ 192.3 (2%) - (2%) - $ 712.9 $ 675.2 +6% - +5% - Operating income(1) $ 25.4 # $ 30.9 (18%) - (19%) - $ 101.3 $ 87.4 +16% - +15% - Retur
Slide 13: Innovia
Innovia Periods Ended December 31st Three months Change Twelve months Ten months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 143.30 $ 91.20 n.m. - n.m. - $ 481.60 $ 308.20 n.m. - n.m. - Adj. operating income(4)(5) $ 7.7 $ 0.1 n.m. - n.m. - $ 21.9 $ 21.6 n.m.
Slide 14: Summary
Summary Periods Ended December 31st Three months Change Twelve months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX CCL(3) $ 120.1 $ 133.4 (10%) - (11%) - $ 511.3 $ 479.2 +7% - +6% - Avery 36.0 40.7 (12%) - (15%) - 145.5 164.5 (12%) - (12%) - Checkpoint 25.4 30.9 (18%)
Slide 15: Outlook
Outlook Factors to consider for Q1 2019…… • Modest FX tailwind at today’s exchange rates • CCL consumer markets solid so far in 2019 but demand slower at CCL Design. CCL Secure posted exceptional Q118, will not repeat, but outlook for FY19 better than FY18 • Avery comparatives ease vs soft Q118 • Ch
Slide 16: Questions
Questions Page 16
Slide 17: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated December 31, 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 twelve-month period en
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