Ccl Industries Inc. Class A · TSX:CCL.A
Ccl Industries Inc. Class A — Q3 2017 Earnings Presentation
19 slides from Ccl Industries Inc. Class A's earnings presentation, Nov 8, 2017
Slide 1: Investor Update 3rd Quarter 2017
Investor Update 3rd Quarter 2017 November 8, 2017
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 Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 1,206.8 $ 1,089.3 +11% +13% $ 3,521.2 $ 2,916.3 +21% +22% Operating income(1) 185.3 149.7 +24% +26% 532.5 442.7 +20% +22% Corporate
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended September 30th T Three months Nine months M Per Class B Share 2017 2016 Change 2017 2016 Change Net earnings - basic $ 0.60 $ 0.49 +22% $ 1.73 $ 1.42 +22% Net loss from restructuring and other items 0.01 0.03 0.07 0.12 Non-cash acquisition accounting adjustme
Slide 5: Cash Flow
Cash Flow Periods Ended September 30th (millions of CDN $) Free Cash Flow(2) $421.4 $260.7 $147.8 $151.2 Q3 2017 Q3 2016 LTM September 2017 LTM September 2016 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary September December (millions of CDN $) 2017 2016 Revolving LTD (US$351.6MM, €189.7MM, £60.3MM and C$337.0MM) $ 1,155.8 $ 756.6 Bond (US$500.0MM) due 2026 623.6 671.4 Two-year Term Facility (US$426.0MM) 531.3 - Senior Notes LTD (US$129.0MM) due 2018 160.9 173.2 Debt - all other, n
Slide 7: Capital Spending
Capital Spending Nine Months Ended September 30th, 2017 Capital Depreciation & Divisions Spending Amortization Difference CCL $ 187.2 $ 129.7 $ 57.5 Avery 12.5 12.1 0.4 Checkpoint 15.7 22.5 (6.8) Innovia 6.4 17.4 (11.0) Container 16.9 10.3 6.6 Corporate - 0.7 (0.7) $ 238.7 $ 192.7 $ 46.0 • Excludes
Slide 8: 2017 Segment Reporting
2017 Segment Reporting • No change at Avery, Checkpoint & Container • New segment: Innovia: Films operations only, includes two legacy CCL operations (see below for Innovia Security) • CCL Label segment is renamed: CCL and includes… 1. CCL Label: Home & Personal Care 2. CCL Label: Healthcare & Speci
Slide 9: CCL
CCL Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 687.2 $ 639.5 +7% +10% $ 2,089.2 $ 1,865.8 +12% +13% Adj. operating income(3)(4) $ 94.7 $ 94.1 +1% +3% $ 326.6 $ 289.4 +13% +14% Return on Sales 13.8%
Slide 10: CCL
CCL Periods ended September 30th CCL Consumer & Healthcare CCL Design CCL Secure • Solid Home & Personal Care sales • Robust growth in • Sales hiatus this and profitability progress globally on Electronics.... quarter in polymer share gains. China especially strong substrate… • …improved market • Ac
Slide 11: CCL Joint Ventures
CCL Joint Ventures Periods Ended September 30th Results at 100% Three months Nine months (millions of CDN $) 2017 2016 2017 2016 Sales $ 31.5 $ 31.9 $ 96.0 $ 91.2 Net income $ 3.0 $ 3.4 $ 7.8 $ 8.4 EBITDA $ 6.4 $ 6.3 $ 17.3 $ 16.3 % of Sales 20.3% 19.7% 18.0% 17.9% 4.4 CCL equity share (*) $ 1.5 $ 1
Slide 12: Avery
Avery Periods Ended September 30th Three months Change Nine months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 212.0 $ 220.2 (4%) (1%) $ 581.9 $ 607.2 (4%) (3%) Operating income(1) $ 49.9 $ 45.3 +10% +13% $ 123.8 $ 131.3 (6%) (5%) +13% Return on Sales 23.5% 2
Slide 13: Checkpoint
Checkpoint Periods ended September 30th Three months Change Nine months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 (6) Reported Ex FX Sales $ 162.6 $ 175.5 (7%) (6%) $ 482.9 $ 268.1 n.m. n.m. Adj. operating income(5) $ 21.7 $ 22.9 (5%) (4%) $ 56.5 $ 32.7 n.m. n.m. Return on Sales
Slide 14: Innovia
Innovia Periods ended September 30th Three months Change Seven months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 95.6 $ - n.m. n.m. $ 217.0 $ - n.m. n.m. Adj. operating income(7) $ 11.4 $ - n.m. n.m. $ 21.5 $ - n.m. n.m. Return on Sales 11.9% - 9.9% - EBITDA
Slide 15: Container
Container Periods ended September 30th Three months Change Nine months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX Sales $ 49.4 $ 54.1 (9%) (7%) $ 150.2 $ 175.2 (14%) (13%) Operating income(1) $ 7.6 $ 4.7 +62% +64% $ 19.3 $ 23.2 (17%) (15%) Return on Sales 15.4% 8.7%
Slide 16: Summary
Summary Periods ended September 30th Three months Change Nine months Change (millions of CDN $) 2017 2016 Reported Ex FX 2017 2016 Reported Ex FX CCL(3)(4) $ 94.7 $ 94.1 +1% +3% $ 326.6 $ 289.4 +13% +14% Avery 49.9 45.3 +10% +13% 123.8 131.3 (6%) (5%) Checkpoint (5)(6) 21.7 22.9 (5%) (4%) 56.5 32.7
Slide 17: Outlook
Outlook Factors for the remainder of 2017………… • C$ translation remains a modest headwind • Low tax rate for Q416 • CCL Secure volume strong, Consumer/CCL Design businesses solid, Healthcare faces tough comps • Low season at Avery • High season at Checkpoint but tough comps • CCL Container passes ann
Slide 18: Questions
Questions Page 18
Slide 19: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated September 30, 2017 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 nine-month periods en