18 slides from Ccl Industries Inc. Class A's earnings presentation, Feb 23, 2017
Slide 1: Investor Update 4th Quarter 2016
Investor Update 4th Quarter 2016 February 23, 2017
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 December 31st Three months Change Twelve months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 1,058.4 $ 798.8 +32% +35% $ 3,974.7 $ 3,039.1 +31% +30% Operating income(1) 160.6 122.6 +31% +34% 603.3 496.6 +21% +20% Corporate e
Slide 4: Earnings per Class B Share
Earnings per Class B Share Periods Ended December 31st Three months Twelve months Per Class B Share 2016 2015 Change 2016 2015 Change Net earnings - basic $ 2.80 $ 2.05 +37% $ 9.90 $ 8.50 +16% Net loss from restructuring and other items 0.18 0.11 0.79 0.11 Non-cash acquistion accounting adjustment r
Slide 5: Cash Flow
Cash Flow Periods Ended December 31st (millions of CDN $) Free Cash Flow(2) $338.6 $320.7 $222.9 $144.7 Q4 2016 Q4 2015 LTM December 2016 LTM December 2015 Page 5
Slide 6: Cash & Debt Summary
Cash & Debt Summary December December (millions of CDN $) 2016 2015 Senior Notes LTD (US$129.0MM) due 2018 $ 173.2 $ 330.8 Revolving LTD (US$409.6MM, EUR64.0MM and GBP70.0MM) 756.6 653.9 Bond (US$500.0MM) due 2026 671.4 - Debt - all other 0.1 20.8 Total debt 1,601.3 1,005.5 Less: Cash and cash equiv
Slide 7: Capital Spending
Capital Spending Twelve Months Ended December 31st Capital Divisions Spending Depreciation(*) Difference Label $ 194.8 $ 138.7 $ 56.1 Avery 16.2 12.9 3.3 Checkpoint 5.9 11.3 (5.4) Container 17.8 15.3 2.5 Corporate - 0.4 (0.4) $ 234.7 $ 178.6 $ 56.1 (*) excludes amortization of intangibles and other
Slide 8: Label
Label Periods Ended December 31st Three months Change Twelve months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 631.8 $ 553.1 +14% +16% $ 2,497.6 $ 2,030.3 +23% +22% Adj. operating income(*) $ 90.7 $ 81.9 +11% +13% $ 380.0 $ 317.2 +20% +19% Return on Sales 14
Slide 9: Label 2016 Review
Label 2016 Review Home & Personal Care Healthcare & Specialty Food & Beverage CCL Design • Mid single digit • Low single digit • Double digit • Acquisition led organic growth organic growth organic growth growth, augmented by moderate • Strong in Latam acquisitions • Strong growth organic growth and
Slide 10: Label Joint Ventures
Label Joint Ventures Periods Ended December 31st (millions of CDN $) 2016 2015 2016 2015 Sales $ 32.9 $ 30.0 $ 122.4 $ 106.7 Net income $ 3.5 $ 3.9 $ 11.9 $ 9.1 EBITDA $ 6.8 $ 7.0 $ 23.0 $ 19.8 % of Sales 20.7% 23.3% 18.8% 18.6% CCL equity share (*) $ 1.7 $ 2.0 $ 6.1 $ 4.7 (*) share of earnings cons
Slide 11: Avery
Avery Periods Ended December 31st Three months Change Twelve months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 180.5 $ 191.2 (6%) (4%) $ 787.7 $ 782.7 +1% (2%) Operating income(1) $ 35.5 $ 34.4 +3% +6% $ 166.8 $ 152.8 +9% +7% Return on Sales 19.7% 18.0% 21.2
Slide 12: Container
Container Periods Ended December 31st Three months Change Twelve months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 55.2 $ 54.5 +1% +6% $ 230.4 $ 226.1 +2% +3% Operating income(1) $ 7.1 $ 6.3 +13% +18% $ 30.3 $ 26.6 +14% +16% Return on Sales 12.9% 11.6% 13.2%
Slide 13: Checkpoint
Checkpoint Periods Ended December 31st Three months Change Thirty-three weeks Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Sales $ 190.9 $ - n.m. n.m. $ 459.0 $ - n.m. n.m. Adj. operating income(*) $ 27.3 $ - n.m. n.m. $ 60.1 $ - n.m. n.m. Return on Sales 14.3% - 13.1
Slide 14: Summary
Summary Periods Ended December 31st Three months Change Twelve months Change (millions of CDN $) 2016 2015 Reported Ex FX 2016 2015 Reported Ex FX Label ** $ 90.7 $ 81.9 +11% +13% $ 380.0 $ 317.2 +20% +19% Avery 35.5 34.4 +3% +6% 166.8 152.8 +9% +7% NM Container 7.1 6.3 +13% +18% 30.3 26.6 +14% +16%
Slide 15: Outlook
Outlook • Demand levels steady at CCL Label, CCL Design & Avery • Challenging comps, Q116 vs Q115: +30% EBITDA & strong organic growth • FX: moderate Q117 headwind vs Q116 13c EPS tailwind & early signs of materials cost inflation • CCL Container’s Canadian plant closure commenced, will impact Q1 to
Slide 16: 2017 Segment Reporting
2017 Segment Reporting • No change at Avery, Checkpoint & CCL Container • New segment: ‘Specialty Films’: Innovia Films operations and two film extrusion operations moving from CCL Label • CCL Label segment is renamed: ‘CCL’ and includes… 1. CCL Label Home & Personal Care 2. CCL Label Healthcare & S
Slide 17: Questions
Questions Page 17
Slide 18: Definitions Appendix
Definitions Appendix (1) Non-IFRS measure; see MD&A dated December 31, 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 18