22 slides from Ccl Industries Inc. Class A's earnings presentation, Feb 21, 2013
Slide 1: Investor Update 4th Quarter 2012 Review
CCL Industries Inc. Investor Update 4th Quarter 2012 Review February 21, 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 - Fourth Quarter
Statement of Earnings Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2012 2011 Change Translation Sales $ 313.5 $ 317.3 (1%) +3% Operating income* 38.6 35.4 +9% +15% Corporate expense 7.3 6.9 +6% 31.3 28.5 Finance cost, net 5.2 5.2 - 26.1 23.3 Restructuring & other items -
Slide 4: Statement of Earnings - Year Ended
Statement of Earnings Year Ended December 31st (Millions of Cdn$) Excluding Currency 2012 2011 Change Translation Sales $ 1,308.6 $ 1,268.5 +3% +6% Operating income* 178.4 163.7 +9% +12% Corporate expense 26.4 24.8 +6% 152.0 138.9 Finance cost, net 20.9 21.4 (2%) 131.1 117.5 Restructuring & other it
Slide 5: Earnings per Class B Share
Earnings per Class B Share Periods Ended December 31st Three Months Twelve Months Per Class B Share 2012 2011 Change 2012 2011 Change Net earnings - basic $ 0.59 $ 0.55 +7% $ 2.91 $ 2.54 +15% Diluted earnings $ 0.58 $ 0.54 +7% $ 2.86 $ 2.50 +14% Restructuring & other items - loss $ - $ (0.02) $ - $
Slide 6: Cash Flow Highlights
Cash Flow Highlights Periods Ended December 31st (Millions of Cdn$) Free Cash Flow* 107.2 Statement of Cash Flows 92.2 Twelve Months Ended December 31st 2012 2011 Net earnings $ 97.5 $ 84.1 Adjustments for: Depreciation & amortization 102.6 100.2 Net finance cost 20.9 21.4 42.9 Equity accounted inve
Slide 7: Cash & Debt Summary
Cash & Debt Summary As At December 31st (Millions of Cdn$) Increase 2012 2011 (Decrease) Long-term debt - senior notes (2012 - US$ 319.0 MM, 2011 - US$ 328.4 MM) $ 317.4 $ 333.9 $ (16.5) Debt - all other 11.6 20.1 (8.5) Total debt 329.0 354.0 (25.0) Less: Cash and cash equivalents (189.0) (140.7) (4
Slide 8: Capital Spending Highlights
Capital Spending Highlights Year Ended December 31st (Millions of Cdn$) Capital Divisions Spending Depreciation( 1 ) Difference Label $ 87.5 $ 74.9 $ 12.6 Container 4.2 13.7 $ (9.5) Tube 1.9 7.7 $ (5.8) Corporate - 0.3 $ (0.3) $ 93.6 $ 96.6 $ (3.0) (1) excludes amort izat ion of int angibles and ot
Slide 9: Label - Fourth Quarter
Label Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2012 2011 Change Translation Sales $ 252.5 $ 254.2 (1%) +4% Operating income* $ 35.0 $ 31.0 +13% +20% Return on sales 13.9% 12.2% EBITDA* $ 55.8 $ 51.4 +9% +14% % of Sales 22.1% 20.2% The following commentary is based on
Slide 10: Label - North America
Label Fourth Quarter Ended December 31st (Millions of Cdn$) North America (37% of Label sales) • Healthcare & Specialty results were flat but compared to an unusually strong prior year quarter. • Home & Personal Care (HPC) business was soft; profit margins remained at prior year levels. • Sleeve sal
Slide 11: Label - Europe
Label Fourth Quarter Ended December 31st (Millions of Cdn$) Europe (39% of Label sales) (incl. Eastern Europe) • HPC business was flat; focus on cost and productivity drove a significant improvement in profitability. • Sales and profitability declined at Healthcare & Specialty driven by the weak eco
Slide 12: Label - Emerging Markets
Label Fourth Quarter Ended December 31st (Millions of Cdn$) Emerging Markets (24% of Label sales) (Asia, Latin America, Australia & South Africa) • Strong sales and profit gains in Mexico offset by lower results in Brazil with signs of customers destocking high inventories; impact compounded by real
Slide 13: Label - Year Ended
Label Year Ended December 31st (Millions of Cdn$) Excluding Currency 2012 2011 Change Translation Sales $ 1,044.3 $ 1,012.3 +3% +6% Operating income* $ 152.8 $ 142.5 +7% +11% Return on sales 14.6% 14.1% EBITDA* $ 233.2 $ 220.3 +6% +9% % of Sales 22.3% 21.8% The following commentary is based on const
Slide 14: Label Joint Ventures
Label Joint Ventures Periods Ended December 31st (Millions of Cdn$) Three Months Twelve Months Results at 100% 2012 2011 2012 2011 Sales $ 17.6 $ 19.7 $ 61.6 $ 39.3 Net income (loss) $ 2.2 $ 2.8 $ 4.3 $ 2.4 EBITDA $ 3.8 $ 3.9 $ 10.3 $ 4.9 % of Sales 21.6% 19.8% 16.7% 12.5% CCL equity share* $ 1.1 $
Slide 15: Container - Fourth Quarter
Container Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2012 2011 Change Translation Sales $ 41.6 $ 42.4 (2%) (1%) Operating income* $ 1.7 $ 1.7 - +2% Return on sales 4.1% 4.0% EBITDA* $ 5.2 $ 5.3 (2%) (2%) % of Sales 12.5% 12.5% The following commentary is based on consta
Slide 16: Container - Year Ended
Container Year Ended December 31st (Millions of Cdn$) Excluding Currency 2012 2011 Change Translation Sales $ 181.7 $ 175.7 +3% +4% Operating income* $ 12.1 $ 9.2 +32% +33% Return on sales 6.7% 5.2% EBITDA* $ 25.8 $ 23.4 +10% +11% % of Sales 14.2% 13.3% The following commentary is based on constant
Slide 17: Tube - Fourth Quarter
Tube Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2012 2011 Change Translation Sales $ 19.4 $ 20.7 (6%) (3%) Operating income* $ 1.9 $ 2.7 (30%) (29%) Return on sales 9.8% 13.0% EBITDA* $ 3.8 $ 4.8 (21%) (18%) % of Sales 19.6% 23.2% The following commentary is based on co
Slide 18: Tube - Year Ended
Tube Year Ended December 31st (Millions of Cdn$) Excluding Currency 2012 2011 Change Translation Sales $ 82.6 $ 80.5 +3% +2% Operating income* $ 13.5 $ 12.0 +13% +11% Return on sales 16.3% 14.9% EBITDA* $ 21.2 $ 19.4 +9% +8% % of Sales 25.7% 24.1% The following commentary is based on constant Canadi
Slide 19: Operating Income - Fourth Quarter
Operating Income* Fourth Quarter Ended December 31st (Millions of Cdn$) Excluding Currency 2012 2011 Change Translation Label $ 35.0 $ 31.0 +13% +20% Container 1.7 1.7 - +2% Tube 1.9 2.7 (30%) (29%) Operating income* $ 38.6 $ 35.4 +9% +15% Sales $ 313.5 $ 317.3 (1%) +3% Return on sales 12.3% 11.2% E
Slide 20: Operating Income - Year Ended
Operating Income* Year Ended December 31st (Millions of Cdn$) Excluding Currency 2012 2011 Change Translation Label $ 152.8 $ 142.5 +7% +11% Container 12.1 9.2 +32% +33% Tube 13.5 12.0 +13% +11% Operating income* $ 178.4 $ 163.7 +9% +12% Sales $ 1,308.6 $ 1,268.5 +3% +6% Return on sales 13.6% 12.9%
Slide 21: Segment Reporting for 2013
Segment Reporting for 2013 • We have combined the sales forces and management of HPC Label and Tube in North America; Tube will therefore now be reported inside the Label Segment from Q1 2013. • “Designed & Engineered Solutions” will be reported inside the Label Segment post close and change its tra
Slide 22: Summary & Outlook
Summary & Outlook • Year end balance sheet has $190 million of cash; expanded $700 million credit facility to finance Avery transaction and provide flexibility. • Tuck-in acquisition pipeline remains robust. • Annual dividend increased 10% to 86 cents from 78 cents per Class B non-voting share. 7th