17 slides from Ccl Industries Inc. Class A's earnings presentation, Nov 9, 2016
Slide 1: Investor Update 3rd Quarter 2016
Investor Update 3rd Quarter 2016 November 9, 2016
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
Slide 3: Statement of Earnings
Statement of Earnings Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 1,089.3 $ 812.9 +34% +35% $ 2,916.3 $ 2,240.3 +30% +28% Operating income(1) 149.7 134.3 +11% +13% 442.7 374.0 +18% +16% Corporate ex
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended September 30th Three months Nine months Per Class B Share 2016 2015 Change 2016 2015 Change Net earnings - basic $ 2.47 $ 2.36 +5% $ 7.10 $ 6.45 +10% Net loss/(gain) from restructuring and other items 0.14 (0.02) 0.61 - Non-cash acquistion accounting adjustme
Slide 5: Cash Flow
Cash Flow Periods Ended September 30th (millions of CDN $) Free Cash Flow(2) $276.5 $260.7 $151.2 $106.4 Q3 2016 Q3 2015 LTM September LTM September 2016 2015 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary September December (millions of CDN $) 2016 2015 Senior Notes LTD (US$129.0MM) due 2018 $ 169.2 $ 330.8 Revolving LTD (US$426.0MM, EUR73.4MM and GBP70.0MM) 786.5 653.9 Bond (US$500.0MM) due 2026 655.9 - Debt - all other 34.3 20.8 Total debt 1,645.9 1,005.5 Less: Cash and cash equ
Slide 7: Capital Spending
Capital Spending Nine Months Ended September 30th, 2016 Capital Divisions Spending Depreciation(*) Difference Label $ 165.5 $ 103.8 $ 61.7 Avery 14.2 9.7 4.5 Checkpoint 4.0 7.7 (3.7) Container 17.1 11.2 5.9 Corporate - 0.3 (0.3) $ 200.8 $ 132.7 $ 68.1 (*) excludes amortization of intangibles and oth
Slide 8: Label
Label Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 639.5 $ 522.2 +22% +24% $ 1,865.8 $ 1,477.2 +26% +24% Adj. operating income(*) $ 94.1 $ 81.6 +15% +17% $ 289.4 $ 235.4 +23% +20% Return on Sales 14.
Slide 9: Label
Label Third Quarter Ended September 30th Home & Personal Care Healthcare & Specialty Food & Beverage CCL Design • Low single digit • Low single digit • High single digit • Low single digit organic growth vs organic growth organic growth organic growth strong prior year augmented by augmented by acqu
Slide 10: Label Joint Ventures
Label Joint Ventures Periods Ended September 30th Results at 100% Three months Nine months (millions of CDN $) 2016 2015 2016 2015 Sales $ 31.5 $ 28.3 $ 89.4 $ 76.8 Net income $ 3.4 $ 2.4 $ 8.4 $ 5.2 EBITDA $ 6.3 $ 5.3 $ 16.3 $ 12.8 % of Sales 20.0% 18.7% 18.2% 16.7% CCL equity share (*) $ 1.8 $ 1.2
Slide 11: Avery
Avery Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 220.2 $ 233.1 (6%) (6%) $ 607.2 $ 591.5 +3% (1%) Operating income(1) $ 45.3 $ 46.5 (3%) (3%) $ 131.3 $ 118.3 +11% +7% Return on Sales 20.6% 19.9% 21
Slide 12: Container
Container Periods ended September 30th Three months Change Nine months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 54.1 $ 57.6 (6%) (2%) $ 175.2 $ 171.6 +2% +3% Operating income(1) $ 4.7 $ 6.2 (24%) (18%) $ 23.2 $ 20.3 +14% +16% Return on Sales 8.7% 10.8% 13.
Slide 13: Checkpoint
Checkpoint Periods ended September 30th Three months Change Twenty weeks Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 175.5 $ - n.m. n.m. $ 268.1 $ - n.m. n.m. Adj. operating income(*) $ 22.9 $ - n.m. n.m. $ 32.7 $ - n.m. n.m. Return on Sales 13.0% - 12.2% - E
Slide 14: Summary
Summary Periods ended September 30th Three months Change Nine months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Label ** $ 94.1 $ 81.6 +15% +17% $ 289.4 $ 235.4 +23% +20% Avery 45.3 46.5 (3%) (3%) 131.3 118.3 +11% +7% NM Container 4.7 6.2 (24%) (18%) 23.2 20.3 +14%
Slide 15: Outlook
Outlook • Q4 order levels solid so far, comps challenging organically • FX looks neutral to a slight tailwind for Q4 • CCL Container’s Canadian plant closure to commence in Q1 • Checkpoint Q4 is second highest quarter of the year, Q1 historically loss making • Balance sheet retains considerable capa
Slide 16: Questions
Questions Page 16
Slide 17: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated September 30, 2016 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 17