18 slides from Ccl Industries Inc. Class A's earnings presentation, May 8, 2018
Slide 1: Investor Update 1st Quarter 2018
Investor Update 1st Quarter 2018 (Unaudited) May 8, 2018
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 Period Ended March 31st Three months Change (millions of CDN $) 2018 2017 Reported Ex FX Sales $ 1,227.1 $ 1,061.5 +16% +15% Operating income(1) 200.6 158.9 +26% +26% Corporate expense 19.1 13.5 181.5 145.4 Finance cost, net 19.0 14.6 162.5 130.8 Restructuring and other items 3
Slide 4: Earnings per Class B Share
Earnings per Class B Share Period Ended March 31st Three months Per Class B Share 2018 2017 Change Net earnings - basic $ 0.67 $ 0.50 34% Net loss from restructuring and other items 0.02 0.03 Non-cash acquisition accounting adjustment related to finished goods inventory - 0.04 (1) Adjusted basic ear
Slide 5: Cash Flow
Cash Flow Periods Ended March 31st (millions of CDN $) Free Cash Flow(2) $461.9 $334.0 $(31.0) $(54.7) Q1 2018 Q1 2017 LTM March 2018 LTM March 2017 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary March December (millions of CDN $) 2018 2017 Revolving LTD (US$281.0MM, €139.0MM, £60.3MM and C$357.0MM) $ 1,048.4 $ 1,015.1 Bond (US$500.0MM) due 2026 644.3 628.6 Two-year Term Facility (US$402.0MM) 518.0 520.4 Senior Notes LTD (US$129.0MM) due 2018 166.2 162.2 Debt - all other,
Slide 7: Capital Spending
Capital Spending Three Months Ended March 31st 2018 Capital Depreciation & Divisions Spending Amortization Difference CCL $ 89.1 $ 48.3 $ 40.8 Avery 2.6 3.9 (1.3) Checkpoint 11.6 7.5 4.1 Innovia 4.7 7.9 (3.2) Corporate 1.1 0.3 0.8 $ 109.1 $ 67.9 $ 41.2 • Excludes $3.8 million proceeds from capital a
Slide 8: CCL
CCL Period Ended March 31st Three months Change (millions of CDN $) 2018 2017 Reported Ex FX Sales $ 807.7 $ 721.6 +12% +11% Adj. operating income(3) $ 146.3 $ 120.5 +21% +20% Return on Sales 18.1% 16.7% EBITDA(1) $ 194.6 $ 163.7 +19% +18% - - % of Sales 24.1% 22.7% • 3.8 % organic sales growth, imp
Slide 9: CCL
CCL Period ended March 31st CCL Consumer & Healthcare CCL Design CCL Secure • Home & Personal Care sales & • Electronics sales • Exceptional quarter: profitability improved on broad based gains declined in soft end on timing of orders in labels & tubes, good results for aerosols markets…. • Signific
Slide 10: CCL Joint Ventures
CCL Joint Ventures Period Ended March 31st Results at 100% Three months (millions of CDN $) 2018 2017 Sales Label Ventures $ 28.5 $ 31.3 • Acrus CCL Chile Rheinfelden 1.3 2.8 acquired Q417 $ 29.8 $ 34.1 • Strong quarter in Net income Russia despite weaker Ruble Label Ventures $ 2.2 $ 2.2 Rheinfelden
Slide 11: Avery
Avery Period Ended March 31st Three months Change (millions of CDN $) 2018 2017 Reported Ex FX Sales $ 146.3 $ 160.8 (9%) (8%) Operating income(1) $ 24.0 $ 28.5 (16%) (14%) Return on Sales 16.4% 17.7% EBITDA(1) $ 27.9 $ 32.4 (14%) (12%) % of Sales 19.1% 20.1% • Jan 1st 2018 U.S. price increase annou
Slide 12: Checkpoint
Checkpoint Period ended March 31st Three months Change (millions of CDN $) 2018 2017 Reported Ex FX Sales $ 177.4 $ 149.3 +19% +17% Operating income(1) $ 22.8 $ 15.3 +49% +48% Return on Sales 12.9% 10.2% EBITDA(1) $ 30.3 $ 22.7 +33% +33% - - % of Sales 17.1% 15.2% • Two large chain wide technology r
Slide 13: Innovia
Innovia Period ended March 31st Three months One month Change (millions of CDN $) 2018 2017 Reported Ex FX Sales $ 95.7 $ 29.8 n.m. n.m. Adj. operating income(4) $ 7.5 $ 3.4 n.m. n.m. Return on Sales 7.8% 11.4% EBITDA(1) $ 15.4 $ 6.1 n.m. n.m. - % of Sales 16.1% 20.5% • Solid sales start, improved s
Slide 14: Summary
Summary Period ended March 31st Three months Change (millions of CDN $) 2018 2017 Reported Ex FX CCL(3) $ 146.3 $ 120.5 +21% +20% Avery 24.0 28.5 (16%) (14%) Checkpoint 22.8 15.3 +49% +48% Innovia(4) 7.5 3.4 n.m. n.m. Adj. operating income(1) $ 200.6 $ 167.7 +20% +19% - Sales $ 1,227.1 $ 1,061.5 +16
Slide 15: Outlook
Outlook Factors to consider for Q2 2018………… • Stronger Euro + weaker US$ = nominal impact at today’s FX rates • Tough comps at CCL driven by timing of 2017 CCL Secure orders, Container now in the Segment • Checkpoint gains narrow in Q2 as technology roll outs at key customers complete • Start of Ave
Slide 16: Questions
Questions Page 16
Slide 17: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated March 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 three-month period ending
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