25 slides from Ccl Industries Inc. Class A's earnings presentation, Nov 8, 2010
Slide 1: CCL Industries Inc. Investor Update Third Quarter Review
CCL Industries Inc. Investor Update Third Quarter Review November 8, 20101
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 a
Slide 3: Statement of Earnings – Third Quarter
Statement of Earnings Third Quarter Ended September 30 (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 301.7 $ 294.4 +3% +11% Operating Income * 34.0 28.9 +18% +27% Corporate Expense 5.9 2.6 +127% 28.1 26.3 Interest expense, net 6.2 7.0 (11%) 21.9 19.3 Restructuring & othe
Slide 4: Statement of Earnings – Nine Months
Statement of Earnings Nine Months Ended September 30 (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 911.0 $ 909.8 +0% +11% Operating Income * 117.6 97.2 +21% +35% Corporate Expense 16.8 12.4 +35% 100.8 84.8 Interest expense, net 19.1 22.8 (16%) 81.7 62.0 Restructuring & o
Slide 5: Earnings per Class B Share
Earnings per Class B Share Periods Ended September 30 Third Quarter Year-to-date Per Class B Share 2010 2009 Change 2010 2009 Change Net earnings - Basic $ 0.46 $ 0.51 (10%) $ 1.73 $ 1.31 +32% Diluted earnings $ 0.45 $ 0.51 (12%) $ 1.70 $ 1.29 +32% Restructuring & other items $ - $ - $ - $ (0.05) Ad
Slide 6: Impact of Changes in Exchange Rates
Impact of Changes in Exchange Rates Estimated impact reflects: • Foreign currency translation of all foreign operations • Foreign currency transactions at our Canadian operations where virtually all sales are U.S. dollar-denominated YTD Annual 3Q10 Act 2010 Act 2009 Act Impact of Currency vs. vs. vs
Slide 7: Cash Flow Highlights
Cash Flow Highlights Nine Months Ended September 30th, 2010 (Millions of Cdn$) Free Cash Flow* Statement of Cash Flows $50.6 Nine Months Ended September 30, 2010 2010 2009 Net Earnings $ 56.6 $ 42.3 Depreciation & amortization 70.0 74.1 $24.2 Chg. in non-cash working capital (23.6) (31.0) Other 3.4
Slide 8: Cash & Debt Summary
Cash & Debt Summary As At September 30th (Millions of Cdn$) Increase 2010 2009 (Decrease) Long-term debt - senior notes (2010 - US$ 397.7 MM, 2009 - US$ 438.1 MM) $ 409.3 $ 469.0 $ (59.7) Long-term debt - all other 37.3 43.4 (6.1) Total debt 446.6 512.4 (65.8) Cash and cash equivalents (144.2) (108.
Slide 9: Capital Spending Highlights
Capital Spending Highlights Nine Months Ended September 30th, 2010 (Millions of Cdn$) Capital Divisions Spending *Depreciation Difference Label $ 52.0 $ 49.3 $ 2.7 Container 5.8 10.3 $ (4.5) Tube 0.8 5.7 $ (4.9) Corporate 0.1 0.3 $ (0.2) $ 58.7 $ 65.6 $ (6.9) * excludes amortization of intangibles a
Slide 10: Sales Analysis
Sales Analysis Third Quarter Ended September 30th Acquisitions Organic FX & Disposals Total Label +5% (9%) +1% (3%) Container +43% (4%) - +39% Tube +14% (7%) - +7% CCL Consolidated +11% (8%) - +3% 10
Slide 11: Sales Analysis – Nine Months
Sales Analysis Nine Months Ended September 30th Acquisitions Organic FX & Disposals Total Label +8% (12%) +1% (3%) Container +25% (7%) - +18% Tube +21% (13%) - +8% CCL Consolidated +11% (11%) - - 11
Slide 12: Income from Operations – Third Quarter
Income from Operations Third Quarter Ended September 30th (Millions of Cdn$) 2010 2009 Change Label $ 32.5 $ 30.7 +5.9% Container (0.7) (2.8) n.m. Tube 2.2 1.0 +120.0% Operating income 34.0 28.9 +17.6% Corporate expense (5.9) (2.6) +126.9% 28.1 26.3 Interest expense (net) (6.2) (7.0) (11.4%) Earning
Slide 13: Income from Operations – Nine Months
Income from Operations Nine Months Ended September 30th (Millions of Cdn$) 2010 2009 Change Label $ 114.9 $ 98.2 +17.0% Container (4.5) (3.2) n.m. Tube 7.2 2.2 +227.3% Operating income 117.6 97.2 +21.0% Corporate expense (16.8) (12.4) +35.5% 100.8 84.8 Interest expense (net) (19.1) (22.8) (16.2%) Ea
Slide 14: Label – Third Quarter
Label Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 238.4 $ 244.7 (2.6%) / +6% Operating income $ 32.5 $ 30.7 +5.9% Return on sales 13.6% 12.5% EBITDA $ 50.5 $ 49.5 +2.0% % of Sales 21.2% 20.2% The following commentary is based on const
Slide 15: Label – North America
Label Third Quarter Ended September 30th (Millions of Cdn$) North America (37% of sales) • Sales down low single digits • Healthcare & Specialty business affected by absence of H1N1 sales which drove an exceptional prior year quarter • FDA restrictions also affected sales comparisons at certain key
Slide 16: Label – Europe
Label Third Quarter Ended September 30th (Millions of Cdn$) Europe (42% of sales) • Sales up mid single digits; good performance in all businesses and geographies • Healthcare & Specialty Europe had very limited H1N1 related sales in Q309, so up mid single digits • Home & Personal Care, Sleeve and B
Slide 17: Label – Latin America
Label Third Quarter Ended September 30th (Millions of Cdn$) Latin America (10% of sales) • Double digit sales growth • Particularly strong results in Brazil, growth in all business segments aided by strong Brazilian Real • Mexican business was down low single digits on a strong prior year but profit
Slide 18: Label – Asia Pacific
Label Third Quarter Ended September 30th (Millions of Cdn$) Asia Pacific (11% of total) • Particularly strong results in South East Asia where sales almost doubled on new customer gains and product launches • China also up double digits • Asian profitability overall improved markedly despite new pla
Slide 19: Label – Nine Months
Label Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 729.4 $ 751.3 (2.9%) / +9% Operating income $ 114.9 $ 98.2 +17.0% Return on sales 15.8% 13.1% EBITDA $ 168.7 $ 153.9 +9.6% % of Sales 23.1% 20.5% The following commentary is based on con
Slide 20: Container – Third Quarter
Container Third Quarter Ended September 30th (Millions of Cdn$) Excluding Currency Translation 2010 2009 Change Sales $ 44.0 $ 31.6 +39.2% +43% Operating income $ (0.7) $ (2.8) n.m. Return on sales (1.6%) (8.9%) EBITDA $ 2.6 $ 0.8 225.0% % of Sales 5.9% 2.5% The following commentary is based on cons
Slide 21: Container – Third Quarter
Container Third Quarter Ended September 30th (Millions of Cdn$) • Losses entirely driven by Canadian operation, high sales of low margin Homecare products and $0.5 million loss on FX • All legacy pricing contracts now resolved, but new agreements will phase in over the next 2-3 quarters concluding d
Slide 22: Container – Nine Months
Container Nine Months Ended September 30th (Millions of Cdn$) Excluding Currency Translation 2010 2009 Change Sales $ 124.0 $ 105.0 +18.1% +25% Operating income $ (4.5) $ (3.2) n.m. Return on sales (3.6%) (3.0%) EBITDA $ 5.8 $ 8.0 (27.5%) % of Sales 4.7% 7.6% The following commentary is based on con
Slide 23: Tube – Third Quarter
Tube Third Quarter ended September 30th (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 19.3 $ 18.1 +6.6% +14% Operating income $ 2.2 $ 1.0 +120.0% Return on sales 11.4% 5.5% EBITDA $ 4.1 $ 3.2 +28.1% % of Sales 21.2% 17.7% The following commentary is based on constant Can
Slide 24: Tube – Nine Months
Tube Nine Months ended September 30th (Millions of Cdn$) Excluding Currency 2010 2009 Change Translation Sales $ 57.6 $ 53.5 +7.7% +21% Operating income $ 7.2 $ 2.2 Return on sales 12.5% 4.1% EBITDA $ 12.9 $ 9.1 +41.8% % of Sales 22.4% 17.0% The following commentary is based on constant Canadian dol
Slide 25: CCL – Nine Months ended September 30th: In Summary
IN SUMMARY CCL – Nine Months ended September 30th • Operating Income for quarter up 27% over the prior year, excluding foreign currency, while YTD up 35%. • EBITDA margins remain above industry benchmarks. Significant improvement in Tube business with margins now in line with Label. Early signs of r