19 slides from Ccl Industries Inc. Class A's earnings presentation, May 5, 2011
Slide 1: Investor Update: 1st Quarter Review
CCL Industries Inc. Investor Update 1st Quarter Review May 5, 2011 1
Slide 2: Disclaimer
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 statement
Slide 3: Adoption of IFRS
Adoption of IFRS (Millions of Cdn$) • The financial information presented herein has been prepared on the basis of International Financial Reporting Standards (“IFRS”). The amounts for the three months ended March 31, 2010, have been restated to reflect our adoption of IFRS, with effect from January
Slide 4: Statement of Earnings
Statement of Earnings First Quarter Ended March 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 315.6 $ 307.1 +3% +7% Operating income * 48.7 43.3 +12% +17% Corporate expense 6.3 4.7 +34% 42.4 38.6 Finance cost, net 5.7 6.5 (12%) 36.7 32.1 Restructuring & other items
Slide 5: Earnings per Class B Share
Earnings per Class B Share First Quarter Ended March 31st First Quarter Per Class B Share 2011 2010 Change Net earnings - basic $ 0.81 $ 0.75 +8% Diluted earnings $ 0.80 $ 0.74 +8% Restructuring & other items $ (0.01) $ - Adjusted basic earnings * $ 0.82 $ 0.75 +9% Adjusted basic earnings variance (
Slide 6: Impact of Changes in Exchange Rates
Impact of Changes in Exchange Rates • 96% of first quarter 2011 sales to end use customers were denominated in foreign currencies. • Estimated impact below reflects foreign currency translation of all foreign operations. Annual Annual 1Q11 Act 2010 Act 2009 Act Impact of Currency vs. vs. vs. Transla
Slide 7: Cash Flow Highlights
Cash Flow Highlights First Quarter Ended March 31st (Millions of Cdn$) Free Cash Flow* 93.6 Statement of Cash Flows Three Months Ended March 31st 69.1 2011 2010 Net earnings $ 26.8 $ 24.6 Depreciation & amortization 24.0 24.2 Chg. in non-cash working capital (33.9) (40.0) Other 1.0 (1.5) - Cash from
Slide 8: Cash & Debt Summary
Cash & Debt Summary As At March 31st (Millions of Cdn$) Increase 2011 2010 (Decrease) Long-term debt - senior notes (2011 - US $337.7 MM, 2010 - US $438.1 MM) $ 327.4 $ 445.0 $ (117.6) Debt - all other 28.1 39.3 (11.2) Total debt 355.5 484.3 (128.8) Cash and cash equivalents (92.1) (126.6) 34.5 Net
Slide 9: Capital Spending Highlights
Capital Spending Highlights First Quarter Ended March 31st, 2011 (Millions of Cdn$) Capital Divisions Spending *Depreciation Difference Label $ 23.4 $ 17.1 $ 6.3 Container 1.4 3.4 $ (2.0) Tube 1.0 1.8 $ (0.8) Corporate - 0.1 $ (0.1) $ 25.8 $ 22.4 $ 3.4 * excludes amortization of intangibles and othe
Slide 10: Income from Operations
Income from Operations First Quarter Ended March 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Label $ 41.9 $ 43.0 (3%) +1% Container 3.7 (1.7) n.m. n.m. Tube 3.1 2.0 +55% +59% Operating income 48.7 43.3 +12% +17% Corporate expense 6.3 4.7 +34% 42.4 38.6 Finance cost (net)
Slide 11: Label
Label First Quarter Ended March 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 247.7 $ 248.9 (0.5%) +4% Operating income $ 41.9 $ 43.0 (2.6%) +1% 304% Return on sales 16.9% 17.3% EBITDA $ 60.6 $ 61.6 (1.6%) +2% 0 % % of Sales 24.5% 24.7% The following commentary is b
Slide 12: Label: North America
Label First Quarter Ended March 31st (Millions of Cdn$) North America (35% of sales) • Home & Personal Care (HPC) sales were up low single digits; signs of customers tightening promotional spending with commodity cost increases; stable profits. • Healthcare fell in the low teens with an ongoing FDA
Slide 13: Label: Europe
Label First Quarter Ended March 31st (Millions of Cdn$) Europe (44% of sales) • HPC sales were flat; solid results in UK & Germany but overall profitability impacted by results in France. • Sleeve Label sales increased mid single digits; profitability improved; capacity expanded significantly in Aus
Slide 14: Label: Emerging Markets
Label First Quarter Ended March 31st (Millions of Cdn$) Emerging Markets (21% of sales) including Australia & South Africa • Excellent quarter in Latin America: sales up low double digits on a strong HPC market. Particularly good results in Mexico aided by stronger peso; also strong in Brazil includ
Slide 15: Container
Container First Quarter Ended March 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 47.7 $ 40.3 +18.4% +21% Operating income $ 3.7 $ (1.7) n.m. n.m. Return on sales 7.8% (4.2%) EBITDA $ 7.1 $ 1.9 n.m. n.m. % of Sales 14.9% 4.7% The following commentary is based on con
Slide 16: Container: aluminum hedging and volume
Container First Quarter Ended March 31st (Millions of Cdn$) • 20% of estimated 2011 aluminum requirements are “back-to- back” hedged with customer sales contracts; LME pricing in the US$1,900 to US$2,600 range. Only 2% is hedged for 2012. • Growth rate in volume will moderate significantly in coming
Slide 17: Tube
Tube First Quarter Ended March 31st (Millions of Cdn$) Excluding Currency 2011 2010 Change Translation Sales $ 20.2 $ 17.9 +12.8% +19% Operating income $ 3.1 $ 2.0 +55.0% +59% Return on sales 15.3% 11.2% EBITDA $ 4.9 $ 3.9 +25.6% +29% % of Sales 24.3% 21.8% The following commentary is based on const
Slide 18: CCL – Outlook dynamics
CCL – Outlook dynamics • North American Healthcare sector at Label could rebound in coming quarters if most recent trends are sustained. • European Label business stable and Emerging Markets remain strong. • Container Division has soft comps for the next two quarters on the bottom line, but volume g
Slide 19: CCL – Acquisition Impact
CCL – Acquisition Impact • Sertech closed early Q2; will have almost a full quarter. • Pacman-CCL will likely close during Q3. First full quarter unlikely before Q4. Performance currently ahead of assumptions despite Middle East turmoil. • Master Label license royalty not material; but co-operation