18 slides from Ccl Industries Inc. Class A's earnings presentation, Aug 9, 2018
Slide 1: Investor Update 2nd Quarter 2018
Investor Update 2nd Quarter 2018 (Unaudited) August 9, 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 June 30th Three months Change Six months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 1,264.4 $ 1,252.9 +1% +2% $ 2,491.5 $ 2,314.4 +8% +8% Operating income(1) 199.6 188.3 +6% +8% 400.2 347.2 +15% +16% Corporate expense 12.9
Slide 4: Earnings per Class B Share
Earnings per Class B Share Period Ended June 30th Three months Six months Per Class B Share 2018 2017 Change 2018 2017 Change Net earnings - basic $ 0.69 $ 0.63 10% $ 1.36 $ 1.13 +20% Net loss from restructuring and other items 0.01 0.02 0.03 0.06 Non-cash acquisition accounting adjustment related t
Slide 5: Cash Flow
Cash Flow Periods Ended June 30th (millions of CDN $) Free Cash Flow(2) $464.9 $424.8 $108.4 $105.4 Q2 2018 Q2 2017 LTM June 2018 LTM June 2017 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary June December (millions of CDN $) 2018 2017 Revolving LTD (US$300.5MM, €237.6MM, £60.3MM and C$83.5MM) $ 947.4 $ 1,015.1 Bonds (US$500.0MM due 2026, C$300.0MM due 2028) 956.7 628.6 Term facility (US$390.0MM) due 2020 512.2 520.4 Senior Notes LTD (US$129.0MM) due 2018 169.4 162.2
Slide 7: Capital Spending
Capital Spending Six Months Ended June 30th 2018 Capital Depreciation & Divisions Spending Amortization Difference CCL $ 171.7 $ 97.4 $ 74.3 Avery 5.3 8.2 (2.9) Checkpoint 20.4 14.2 6.2 Innovia 6.6 15.9 (9.3) Corporate 0.7 0.5 0.2 $ 204.7 $ 136.2 $ 68.5 • Excludes $16.6 million proceeds from capital
Slide 8: CCL
CCL Period Ended June 30th Three months Change Six months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 804.2 $ 781.1 +3% +5% $ 1,611.8 $ 1,502.8 +7% +7% Adj. operating income(3) $ 127.3 $ 123.1 +3% +5% $ 273.7 $ 243.6 +12% +13% Return on Sales 15.8% 15.8% 17.0
Slide 9: CCL
CCL Period ended June 30th CCL Consumer & Healthcare CCL Design CCL Secure • Home & Personal Care posted strong • Electronics solid sales • After exceptional sales & significant profitability improvement gain with modest profit Q118, demand on gains in labels, tubes & aerosols improvement reduced se
Slide 10: CCL Joint Ventures
CCL Joint Ventures Period Ended June 30th Results at 100% Three months Six months (millions of CDN $) 2018 2017 2018 2017 Sales Label Ventures $ 28.9 $ 33.2 $ 57.4 $ 64.5 • Acrus CCL Chile Rheinfelden - 5.0 1.3 7.8 acquired Q417 $ 28.9 $ 38.2 $ 58.7 $ 72.3 • CCL Korsini U.S. Net income IML Venture L
Slide 11: Avery
Avery Period Ended June 30th Three months Change Six months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 194.0 $ 209.1 (7%) (5%) $ 340.3 $ 369.9 (8%) (6%) Operating income(1) $ 44.6 $ 45.4 (2%) +1% $ 68.6 $ 73.9 (7%) (5%) +13% Return on Sales 23.0% 21.7% 20.2%
Slide 12: Checkpoint
Checkpoint Period ended June 30th Three months Change Six months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 177.4 $ 171.0 +4% +5% $ 354.9 $ 320.3 +11% +10% Operating income(1) $ 27.6 $ 19.5 +42% +42% $ 50.3 $ 34.8 +45% +44% Return on Sales 15.6% 11.4% 14.2%
Slide 13: Innovia
Innovia Period ended June 30th Three months Change Six months Four months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX Sales $ 88.8 $ 91.7 (3%) (5%) $ 184.5 $ 121.4 n.m. n.m. Adj. operating income(4) $ 0.1 $ 6.7 (99%) (102%) $ 7.6 $ 10.1 n.m. n.m. Return on Sales 0.1%
Slide 14: Summary
Summary Period ended June 30th Three months Change Six months Change (millions of CDN $) 2018 2017 Reported Ex FX 2018 2017 Reported Ex FX (3) CCL $ 127.3 $ 123.1 +3% +5% $ 273.7 $ 243.6 +12% +13% Avery 44.6 45.4 (2%) +1% 68.6 73.9 (7%) (5%) Checkpoint 27.6 19.5 +42% +42% 50.3 34.8 +45% +44% (4) Inn
Slide 15: Outlook
Outlook Factors to consider for Q3 2018………… • Modest FX tailwind at today’s exchange rates • CCL Secure comps ease considerably • Checkpoint technology roll outs at key customers complete • Expect back-to-school sales to be below prior year but positive mix to continue at Avery • Treofan closed July
Slide 16: Questions
Questions Page 16
Slide 17: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated June 30, 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 and six-month
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