2008 ccl investors' day presentation (lite)

8/3/2019 2008 Ccl Investors' Day Presentation (Lite)

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CCL Industries Inc. Investors Day

Donald G. Lang Executive Chairman

September 23, 2008

CCL Industries Inc.


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Disclaimer

Any forward-looking statements contained in this presentation, including statements relatingto the outlook of CCL Industries Inc.s various divisions and products and CCLs growth andexpansion plans, involve risks, uncertainties and assumptions and should not be taken asguarantees of future performance. A number of factors could cause actual results,performance or achievements to vary materially from those anticipated in forward-lookingstatements, including: general economic and business conditions and specific conditions

affecting the sector in which CCL operates, including pricing pressures; CCLs ability toattract and retain its customer base; technological change; competition; changes in, orfailure to comply with, existing government regulations or failure to obtain required permitsor licenses; changes in business strategy or development plans; risks associated withoperating and product hazards; the ability to attract and retain qualified personnel; andother factors. The forgoing list of factors is not exhaustive of the factors that may affect theactual outcome of events that are the subject of forward-looking statements.

Unless noted otherwise, all amounts are expressed in Canadian dollars.


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In Attendance

Donald Lang

Geoff Martin

Steve Lancaster

Gnther Birkner

Robert Ryckman

Jan Wade

Executive Chairman

President & CEO

Executive VP and Acting CFO

Group VP, Food & Beverage, CCL Label Worldwide

VP, Sales & Marketing, CCL Label Healthcare Worldwide

Senior VP, Human Resources & Corporate Communications


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Agenda

7:30 - 8:00 a.m.

8:00 - 8:15 a.m.

8:15 - 8:35 a.m.

8:35 - 9:35 a.m.

9:35 - 9:45 a.m.

9:45 - 10:10 a.m.

10:10 - 10:35 a.m.

10:35 - 11:00 a.m.

Continental breakfast, registration/sign-in

Welcome & Introduction

Financials

Introduction to Operations

CCL Container

CCL Tube

CCL Label Introduction and Home& Personal Care

Break

CCL Label Healthcare

CCL Label Food & Beverage

CCL Label Specialty Products and Wrap-up

D. Lang

S. Lancaster

G. Martin

R. Ryckman

G. Birkner

G. Martin


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Todays Objectives

General business update

Short-term operating tactics and growth opportunities

Longer-term strategic plans

Open informal dialogue

Presentations:

5 presenters with time for questions at the endof each presentation or as necessary, allowing

for more informal dialogue microphone to be used for all presentations & questions

to ensure clarity for the live webcast

target finishing by 11 a.m. including a break


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CCL At A Glance

World-class Specialty Packaging company headquartered in Toronto

3 divisions: Label, Container and Tube

56 locations in 17 countries

5,500 employees

2007 financial summary excluding discontinued operations

$1,144 million in sales, $207 million of EBITDA and $131 million in EBIT

ITWs sleeve label business acquisition (completed January 2007),added sales exceeding expectations of $90 million and EBIT of $15 million

Entered Durables market with CD-Design acquisition in Germany (completed

January 2008) purchased for $10 million plus contingent consideration of $4.5million at the end of 2008

Significantly expanded our wine label business and market with acquisition ofClear Image in Australia (completed April 2008) purchased for $34 million


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CCL At A Glance

TSX: CCL.B and CCL.A (September 12, 2008) Market cap. $1,066 million

Dividend yield 1.7%

6 year stock investment appreciation (Dec. 2001 to Dec. 2007) of 291%

Net Debt/Cap. approximately 32% (June 30, 2008)

68%Equity

32%Net Debt


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CCL At A Glance A Global Player

2007 Total Sales$1,144 million

(12 months ended December 31, 2007)

U.S. &

Puerto Rico38%

Canada12%

Europe39%

Asia3%

Mexico &Brazil8%


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Comparable Company Analysis(US$M unless stated otherwise)

StockSymbol

EBITMargin

EnterpriseValue Sales

EBITDAMargin

Net Debt/EBITDA

Net Debt/Capital

CCL* CCL.B C$1422 C$1132 18.2% 11.4% 1.7x 28.8%

Avery 14.4% 10.4% 2.3x 50.0%

Aptar ATR $2808 $2053 17.5% 11.1% 0.2x 4.5%

Brady BRC $2133 $1489 17.8% 13.8% 1.0x 18.1%

Bemis BMS $3581 $3746 12.0% 7.6% 1.5x 26.8%

Pactiv PTV $5058 $3507 18.5% 13.3% 2.3x 51.2%

Sealed Air SEE $5348 $4867 14.5% 11.0% 2.0x 36.7%

Winpak* WPK C$378 C$524 12.1% 6.9% 0.3x 4.6%

Cenveo 11.7% 8.4% 5.3x nm

Multi-Color 11.8% 8.2% n/a 47.3%

Median 14.4% 10.7% 1.7x 28.8%

AVY

CVO

LABL

$7283

$1881

$396

$6869

$2194

$237

MarketCap

C$1066

$2733

$1860

$2843

$3543

$3954

C$347

$4999

$512

$276

* TSX all others NYSE

Source: BMO Nesbitt Burns Estimates, Capital IQ, as of September 12, 2008


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Comparable Benchmarks: EV/EBITDA


7.8x 8.1x 8.0x 7.8x 7.6x

6.0x

7.3x7.4x

6.9x

CCL Aptar Brady Bemis Pactiv Sealed

Air

Winpak Avery Cenveo Multi-

Color

Median = 7.6X

N/A


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Comparable Company Analysis: Price/Earnings

16.8 16.5 16.9 15.5

25.9

15.6

13.4

15.418.5

12.0


Air


Color


Median = 16.1X


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Comparable Company Analysis: Net Debt/Capital


4.5%

18.1%

4.6%

28.8%

51.2%

36.7%

47.3%50.0%

26.8%


Air


Color

Median = 28.8%

nm


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Comparable Company Analysis: NetDebt/EBITDA

1.0x

2.0x2.3x

1.1x

5.3x

1.5x

2.3x

0.2x 0.3x

1.7x1.9x

1.5x

5.2x

1.5x 1.4x 1.3x

2.1x

2.7x


Air


Color


LTM Q2 08

n/a

December 2001

nm


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Comparable Benchmark Takeaways

Aptar and Brady are good benchmarks forspecialty packaging companies

CCLs EBIT and EBITDA margins are at the median andhigh of the range, respectively

CCL is under leveraged but at the median of the range

CCLs capital plan funded by operating cash flowswill drive future EBITDA levels and ratios

CCL is undervalued relative to all benchmarks


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CCL Industries Inc.

Steven W. Lancaster, Executive Vice President and Acting CFO

September 23, 2008

CCL Industries Inc.


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First Half 2008 Financial Highlights

2008 sales up 3% excluding currency translation compared to a robust first half of 2007

Negative currency transactions impact: 5 cents per share; and negative currencytranslation impact: 10 cents per share

Excluding 15 cent currency impact, EPS excluding restructuring etc.was up a healthy 16%

20072008Continuing Operations Change

Sales $608M $620M (2)%

EPS as reported $1.60 $1.62 (1)%

EPS excluding restructuring & otheritems and favourable tax adj. $1.54 $1.46 +5%


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Impact of Changes In Exchange Rates

A continuous unfavourable effect on EPS but may be reversing with weaker C$

Negative Impact ofCurrency on EPS

2006 Actvs.

2005 Act

2005 Actvs.

2004 Act

2004 Actvs.

2003 Act

2003 Actvs.

2002 Act

1H 2008vs.

1 H 2007

2007 Actvs.

2006 Act

Currency translation $ 0.15 $ 0.11 $ 0.05 $ 0.12$ 0.10 -

Currency transactions $ 0.07 $ 0.09 $ 0.27 -$ 0.05 $ 0.09

Total Negative Impact $ 0.22 $ 0.20 $ 0.32 $ 0.12$ 0.15 $ 0.09


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EPS Growth 2005 to 2007 Continuing Operations

Significant operational improvements and accretive acquisitions

2005 2006 2007

$1.68$1.98

$2.48

Excluding Currency Impact

EPS per B Share before Restructuring & Other Items& Favourable Tax Adjustments

18% 31%25% 30%


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Strong Gross Cash Flow Generation From ContinuingOperations Despite Currency Impact

EBITDA ($M)

$111

$148

$176

$207

2004 2005 2006 2007

18%

31%

20%


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Capital Spending vs. Depreciation

Capex in 2008 expected to be $190 million

$71

$112 $112

$156$150

$163

2002 2003 2004 2005 2006 2007

$56$48 $47

$58$67

$76

2002 2003 2004 2005 2006 2007

Capex ($M) Depreciation ($M)and amortization

Note: Capex includes discontinued operations


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Working Capital Improvement

Working capital reduction program generated significant cash and is at a best-in-class level

Non-cash Working Capital DaysYears ended Dec. 31

*Excludes receivable on sale of ColepCCL

35

22

1517

7

2 (1)*

2001 2002 2003 2004 2005 2006 2007


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Strong Debt & Capital Structure

Net Debt ($M) Net Debt to Total BookCapitalization Ratio

$436

$366

$345$355

$282

$317$307

2001 2002 2003 2004 2005 2006 2007

Years ended Dec. 31

43.6%45.6% 45.2% 44.2%

33.3% 32.7%29.9%

2001 2002 2003 2004 2005 2006 2007

Years ended Dec. 31


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Current Net Debt $356M

A portion of some of these loans have been swapped into euros

$M CdnAs at June 30, 2008

Cash $ 104M

Long-Term Notes Amount Coupon Rate Repayment MaturityDebt:

2006 US$60M 5.29% Bullet Mar/11 61M

1997 US$ 47M 6.97% US$9.4M/yr Sep/12 $ 48M

1998 US$110M 6.90% 3 Bullets *Jul/10,13,18 112M

Total Debt $460M

Other 43M

2006 US$110M 5.57% Bullet Mar/16 112M

Term Bank Revolver max $95M 3.65% Revolver** Jan/13 84M

Net Debt $356M

* US$31M due in July 2010 ** extendible annually


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New Financing Pending

CCL has had substantial cash over the last decade and wants to maintainliquidity to be opportunistic

CCL went to the U.S. Private Placement market in late August toraise up to US$150M in 5 and 10 year notes

Market conditions deteriorated due to credit crunch However, CCL raised US$130M with 8 investors; 7 are prior lenders to CCL

Terms:

US$52M bullet 5 year @ 5.86%

US$78M bullet 10 year @ 6.62%

No material change in covenants (no EBITDA related tests) except investorscan put the notes back to the Company at par if there is a change of control

Closing anticipated on Sept. 24 and funding on Sept. 26


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$M CdnAs at June 30, 2008

Debt Capacity Additional

With new financing, there is further substantial debtcapacity and cash on hand to invest opportunistically

Target Net Debt at45% Debt:Total Capitalization $634M

Equity (at book) - $24.33 per share $ 775M

Current Net Debt $ 356M

Incremental Investment capacity at45% $ 278M


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Key Strategic Metrics

Earnings Per Share (EPS) growth of+10% per annum over timeexcluding one-time items (achieved 19% in 2006 and 2007)

Return on Equity (ROE) equal to leading specialty packaging peers12%-14% (13% in each of 2006 and 2007)

Debt rating BBB high (Investment Grade) Debt to capitalization of45% (currently 32%)

Net interest coverage to EBITDA, minimum 6xs (currently 10.3)

Maintain liquidity of $100M in cash or unused lines of credit


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Key Strategic Metrics

Working capital management maintain best-in-class performance(end of 2006 2 days and 2007 at (1) vs 35 days in 2001)

Dividends, 20%-25% EPS excluding unusual items (was 17% at Dec.2007 therefore increased dividend by 17% in March 2008 to achieve

metric range)

Reinvestment capex hurdle of+17% ROI

Divisional ROS >10% (2006 and 2007 12%)

Acquisitions Complementary and accretive in 1styear


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Questions??


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CCL Industries Inc.

Geoffrey T. Martin, President and CEO

September 23, 2008

CCL Industries Inc.


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2008 Estimated Sales by Division and Geography

Sales by Division$1.2B

Sales by Geography$1.2B

*Sales from products manufactured in Canada are 10%

Label82%

Tube

5%

Container13%

EmergingMarkets

12%

U.S. &

Canada*45%

WesternEurope

43%


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2008 Estimated Sales by Market

Home &Personal Care

40%

Specialty

15% Food &Beverage

25%

Healthcare

20%


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CCL Container

CCL Industries Inc.


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CCL Container Products

Aerosol Containers Aluminum Bottles


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CCL Container Markets

Household BeveragePersonal Care


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Our Manufacturing Process - Impact Extrusion

The slug isgravity fed

into die

1. 250 tons of force appliedthrough a mandrel

Punchextrudesaluminumand wall is

formed

2. Aluminum flows up thewall of the mandrel

Punchstroke ishalted,

maintainingrequired

bottom-endthickness

3. Completed cylinder


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Decoration and Finishing

4. Internal Spray Coating 5. Dry Offset Print 6. Neck Down


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CCL Container Strong Market Position

Focus on NAFTA region only

One of only two producers with approx 50% share

Main competitors are alternatives

Steel/Tin Plate Aerosols Plastic Trigger Sprays/Pumps

Coil-to-Can Aluminum Beverage Bottles

Specialty Glass & Plastic Bottles

Facilities in the U.S., Canada and Mexico (2)

87% of sales in the U.S.; balance in Mexico


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Canadian Plant: US$ Exchange Rate Headwind

$2.7$2.5

$1.9

$3.6

$0.0

$1.5

$3.0

$4.5

2004 2005 2006 2007

$1.00

$1.20

$1.40

US$ Operating Incomeimpact $ millions from

prior year

US$:C$Exchange Rate

US$:$C

US$ OI impact


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$1,000

$2,000

$3,000

$4,000

2004 20062005

Source: Reuters, 3 month LME spot price

Aluminum Cost Challenges

(US$/ton)

2008Aug.30

2007

$1,725 $1,900 $2,600

Average for year

$2,640 $2,860

$0

$4,000

$8,000

$12,000

Hedge Impact

Hedge Impact

LME spot price


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CCL Container Last Five Year Performance

0

5

10

15

20

2003 2004 2005 2006 2007

0

40

80

120

160

200

OI

Sales

2003 2004 2005 2006 2007

$83.5 $98.3 $123.4 $130.7 $137.0Investment

16.2% 14.0% 15.0% 11.2% 12.0%ROI

$M

Impact C$ Transactions $2.7 2.6 1.9 3.6

Sales $US MOI $US M


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CCL Container 2008 vs. 2007 YTD Performanceat June 30th

Factors impacting revenue

ABS Bag-on-Valve business sold in Q1 2008 = $2.2 million

Loss of Home Care contract in mid 2007 = $10 million

C$ Translation = $8 million based on virtually all customers purchases in US$

U.S. and Mexican operations performing well Weak performance in Penetanguishene

exchange rate impact: $2.3 million

Sales OI EBITDA Capex

2008 2007

$77.8

$96.6

$8.1 $11.5 $12.9$17.1 $11.4

$1.7

Note: excluding ABS business

$Millions


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Growing Profitability in Mexico

CCL Container Sales

Mexico

11%

Mexico

11%

CCL Container Operating Income

Mexico

1%

Mexico

25%

2003

2003

2007

2007


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New Plant in Guanajuato Mexico

Investment in Guanajuato will reach $35 million by year end


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CCL Container Mexico Strategy

Mexico City plant (older lines) focus on: Local aerosols sold to Mexican contract fillers and customers filling in

California, Texas, New Mexico and Arizona

Specialty containers with high labour content currently made in the U.S.

Guanajuato plant (new lines) focus on: High volume aerosols for key Global Customers

Bottles for Mexican Beverage Customers


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CCL Container Focus for 2008-2010

Continue to drive improvements in the US: service, innovation,productivity, pricing, leveraging cross-CCL customer relationships

Downsize and reduce cost in Canadian operation

Successful execution of Mexican strategy

2010 goal to reach 20% ROI, significant upside potentialonce US consumer spending returns to normal levels


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CCL Tube

CCL Industries Inc.


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CCL Tube Market Share

CCL15%

US$400Million

North AmericanExtruded Tube Market


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CCL Tube Customers

Focus on high-end decorated premium priced consumer brands


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CCL Tube Last Five Years Performance

$US M 2003 2004 2005 2006 2007

Sales 55.7 57.0 55.9 60.0 54.4

Operating Income 0.8 0.2 2.4 4.3 0.4

EBITDA 6.5 5.3 7.6 10.3 6.8

Capex 7.4 7.8 5.8 8.4 8.6

Cash Flow -1.5 -1.1 2.0 3.4 -1.7

Investment 88.3 84.4 77.4 75.4 79.4

Presented in $US as business is primarily U.S based


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CCL Tube 2008 vs. 2007 YTD Performanceat June 30th

Q3 & Q4 will be favourable due to weak 2nd half of 2007

Order levels good in market circumstances

Business returned to profit, but margins not at acceptable levels

Sales EBITDA

2008 2007

$30.9 $34.0

$3.8 $5.2

$M


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CCL Tube Los Angeles New More Efficient Facility

From this to this


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CCL Tube Focus 2008-2010

Successful relocation in Los Angeles

Merging U.S. sales team with CCL Label HPC groupto leverage relationships

Focus operations on service, decoration innovationand improving mix

Review small (but profitable) operation in Mexico

2010 objective: 10% ROI


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Questions??


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CCL Label

CCL Industries Inc.


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Three Label Markets

Variable Information Printing Bar Codes

Information Processing Applications

Packaging and Presentation Personal Care Premium Food and Beverage

Healthcare and Chemicals

Product Identification Automotive

Consumer Electronics: Computers,Cell Phones, Audio-Visual

Consumer Durables: White Goods

CCL Focus

CCL New Opportunity


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CCL Label Products Global Leadership

Pressure sensitive labels global leader

Expanded content labels global leader

Sleeves #2 globally

Niche player: In-mould labels Film wrap labels Paper cut & stack labels

Plus


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CCL Label Services

Brand Icons & creative development

Artwork and design management

Label supply chain & inventory management

Label application consulting

New development initiatives problem solving


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Asia Pacific Now Larger thanN. America and W. Europe

Global Packaging Market Trends

2005 2010

Rest of World

Source: Heidelberger Druckmaschinen - * Adjusted for price changes and currency fluctuations Base year 2004

billion

W. Europe

Asia Pacific

N. America

387

482

64

104

111

108

104

116

143

119

Largestmarket


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Global Packaging Market Trends

10 Fastest Growing Markets(2005-2010 CAGR)

Source: Pira 2005

14%

12% 12%

10% 10% 10% 9% 9% 8%8%

India Philippines Poland Taiwan Indonesia Brazil China Argentina Egypt Lithuania


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Global Label Market

Volume: 41 billion m2

Market Volume(2007)

Pressure Sensitive

labels39%

Sleeves/FilmWraps

9%

Cut andStack50%

In-mould

2%

Market Growth Rates(% p.a.)

Source: 2008 Global AWAreness Report, 2008/03

9%

6%

5%

3%Wet Glue

PressureSensitive

Labels

In-mould

Wraps/

Sleeves

Global Pressure Sensitive Label Market


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Global Pressure Sensitive Label MarketEmerging Markets Continue to RepresentBest Growth Opportunities

PS Label Market Volume(2007)

PS Label Market Growth Rates(% p.a.)

Source: 2008 Global AWAreness Report, 2008/03

Volume: 16 billion m2

N. America33%

Emg. AP12%

Dev. AP14%

Aus/NZ2%

E. Eur6%

S. Eur11%

N. Eur17%

L. America

5%8.0%

8.0%

14.7%

3.0%

2.6%

2.5%

1.9%

1.3%N. America

S. Europe

N. Europe

Dev. AP

Aus/NZ

L. America

E. Europe

Emg. AP

Asia biggest growth


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Industry Structure

Converters(Entrepreneurs/Consolidators)

Laminators & Film Extruders(Avery-Bemis-Mitsubishi)

Primary Materials(UPM-Dow-Shell-BASF)

Proximityto

Point of Use

Degree of Scale


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Mission

To be the global supply chain leader of innovativepremium package, and promotional, label solutions for the

worlds largest consumer and healthcare corporations


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CCL Label Main Engine for Growth

2002

$21.5

$36.3

2003

$34.8

$42.8

2004

$35.9

$64.2

2005

$79.2

$92.2

2006

$88.5

$131.7

2007

$121.0

$167.3

Capex

EBITDA

$0

$40

$80

$120

2002 2003 2004 2005 2006 2007 $0

$250

$500

$750

$1,000

OI

Sales

OI (US$M) Sales (US$M)

$M

CCL L b l 2008 2007 YTD P f


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CCL Label 2008 vs 2007 YTD Performanceat June 30th

Soft HPC market in the U.S. and Western Europe

Strong Results from Healthcare & Specialty globally

Growing Sleeve and Beverage businesses, highly seasonal

Emerging Markets performance strong across the board

Acquisitions performing to expectations

Sales OI EBITDA

2008 2007

$496 $483

$77 $72 $108 $100

$M


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CCL Label Four Major Markets

Home andPersonal Care

$300M

Healthcare& Specialty

$350M

Beverage& Battery

$175M

SleeveLabels

$150M

Plus Durables (CD-Design) - $25million: $1+B revenue

CCL L b l H d P l C


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CCL Label Home and Personal CareAround The World

12 plants 4 in the U.S.

4 in Europe

2 in Latin America

2 in Asia

2 in Russian JV

Total revenues of US$300 million 3-4 times larger than the nearest competitor

25%+ Global Market Share

Profitability at CCL Label average

Revenue Breakdown

Europe

34%

U.S.36%

EmergingMarkets 30%


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Top 10 Global Beauty Care Players

Name 2007 Total Sales (US$B) HQ Location

Procter & Gamble 76.5 U.S.

LOral 25.1 France

Unilever 59.2 UK-NL

Colgate-Palmolive 13.8 U.S.

Este Lauder 7.0 U.S.

Avon Products 9.9 U.S.

Beiersdorf 8.5 Germany

Johnson & Johnson 61.1 U.S.

Shisheido 6.9 Japan

Kao Corp 12.6 Japan


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Five Global Accounts For Home & Personal Care

Represents 70% of Home & Personal Care Label sales

Balance is in regional players and specialty retailers


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Global Personal Care Market Shift

W. Europe N. America Japan EmergingMarkets

34%

26%

2007 2017

27%

17%

2007 2017

24%

9%

2007 2017

15%

48%

2007 2017

Industry estimates


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Global Home & Personal Care Presence 2008

Now with presence in Moscow andSt. Petersburg through our joint venture

with CCL-Kontur


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Global Home & Personal Care Presence 2010

with new Asian investments

Growing Through Greenfield Sites


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Growing Through Greenfield Sites Investment to Date

Poland (2006)$13M

China (2005)$14M

Thailand (2003)$17M


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Relocation to new state-of-the-artfacilities to meet customer needs

Greenfield Site Relocations Investments

Paris Relocation$16M

Mexico City Relocation$30M


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CCL Labels Global Partners

Company TotalEU AsiaNA LA

P&G 13

Unilever 12

LOral 9

J&J 8

Beiersdorf 7

5

4

3

2

1

2

2

1

-

2

4

4

3

4

2

2

2

2

2

2

CCL Label HPC sites trading with Global partners


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CCL Label Home & Personal Care Strategy

Continue to invest in Emerging Markets, largely through greenfield sites

Invest in Decoration Innovation

Broaden category presence in North America Home Care

Focus on improving profitability in Europe

Build service programs in Design Management andLabel Supply Management

Cross Leverage Container and Tube organization in North America


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Questions??


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Global Healthcare Group

Presented by: Robert Ryckman, VP, Marketing and Sales, CCL Label Healthcare Worldwide

September 23, 2008

CCL Industries Inc.


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Agenda

Key strengths markets served key customers locations & technology

Growth initiatives

Healthcare strategy

Q&A


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Healthcare Group History

Group was formed in 2003 to target the Healthcare market

Designated Focused factories to meet unique market needs

Invested in new production and inspection equipment specifically

designed to service the Healthcare market Completed strategic acquisitions to fill product line needs and broaden

geographic footprint

Specialized Sales Force to service customers on a global basis


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A Strong Growth Record

$100

$150

$200

$250

2003 2004 2005 2006 2007

$144

$161

$201

$239

Sales (US$M)

Graphiques Apexacquisition

Inprint acquisition

Avery acquisition

Lucas-Insertco acquisition

$103

CAGR

23.4%

k S d


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Markets Served

CCL Healthcare provides innovative packaging solutions globallyto the following industries:

Prescription Drugs

Generic Drugs

Clinical Trials

Ophthalmic (Eye Care)

Biotechnology

Medical Devices

Animal Health Products

Nutraceuticals

W ll P i i d i L M k


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Well Positioned in a Large Market

Healthcare MarketUS$2B

~10% CCLshare

CCL is a large player in a fragmented global market

M Gl b l Bl Chi C t


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Many Global Blue Chip Customers

2007 S l b G h


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Total Global Sales= US$239 M

2007 Sales by Geography

EuropeUS$120M48%

North AmericaUS$119M 52%

Excellent Geographic Footprint to Service Both


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Excellent Geographic Footprint to Service BothNorth America and Europe

CANADA 1. Toronto

2. Montreal

US 3. Hightstown, NJ

4. Baltimore, MD

5. Sioux Falls, SD

6. St. Louis, MO

7. Upland, CA

PUERTO RICO 8. Cidra

9. San German

DENMARK 10. Copenhagen

11. Randers

ITALY 12. Milan

NETHERLANDS 13. Oss

UK 14. Ashford

15. Ditchling

FRANCE 16. Chilly Mazarin

St t f th A t GMP F iliti


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State-of-the-Art cGMP Facilities

Digital Inspection Machine

State of the A t cGMP Facilities


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Product segregation to avoid mixing batches

State of the Art cGMP Facilities


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White Room Manufacturing Environment



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Digital Proofing for copy integrity



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Digital Press for short run and sequential bar codes

Broad Range of Products


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Expanded Content

IV Hanging Label Shrink Sleeve ClosureMulti Ply Medical Device Label

Pressure Sensitive

Broad Range of Products

Agenda


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Agenda


Growth initiatives

Healthcare strategy

Q&A

Growth Initiatives Product Innovations


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Growth Initiatives - Product Innovations

RIFD Track and trace and electronic pedigree applications

Brand protection product line Overt solutions

Covert features

Intelligent labels Time & Temperature indicators

Braille Labels

Chemical indicators

Sterilization indicators

Child Resistant Senior Friendly Packaging Direct to Foil to reduce packaging spend

Market timing is critical, meeting the regulatedchanges ahead of the curve

Growth Initiatives - Product Line Extensions


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Growth Initiatives - Product Line Extensions

Blister Foils For unlabeled products common in Europe

Special constructions with Pattern Adhesive technology IVHL

Medical device

Expanded Content Labels (ECL) with more pages for regulatorysupport Now with more than 100 pages is possible

Growth Initiatives & Market Trends Type 2 Diabetes


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Growth Initiatives & Market Trends Type 2 Diabetes

Type 2 Diabetes is now a World Pandemic

CCL is well positioned with the leading Healthcare companies thatmanufacture insulin and glucose monitoring devices

Many new products are in development with CCL as a label solutionspartner

Growth Initiatives & Market Trends ePedigree


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Growth Initiatives & Market Trends ePedigree

California will require that all prescription drugs carry a method oftraceability from the time the product is made to the time it is dispensed

CCL has several ways to deliver a solution through RFID and Bar coding

CCL is investing in variable data print engines and variable data inspection

equipment to enable its customers to meet this new requirement

The first systems have been installed and running ahead of the demandwhich is scheduled to begin in Q3 2009 for 2010 release

Agenda


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Agenda


Growth initiatives

Healthcare strategy

Q&A

Strategy Going Forward


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Strategy Going Forward

Pursue acquisitions that will enhance CCLs global footprintand Healthcare product offering

Focus on global customers and sell our worldwidesupply chain capability

Greenfield site investments in China & India tosupport existing customers

Execute new technologies to implement ePedigreeand capitalize on this value-add opportunity

Continue to leverage security products to grow sales Continue to develop new and innovative packaging

solutions to meet our customers needs


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100

Questions??

CCL Industries Inc.


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CCL Label Food & Beverage

Presented by: Gnther Birkner, Group VP, Food & Beverage, CCL Label Worldwide

September 23, 2008

CCL Industries Inc.

Agenda


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Agenda

Key strengths

Growth initiatives beer

soft drinks

wine & spirits

dairy & liquid foods

Food & beverage strategy

Q&A



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$0

$100

$200

$300

2003 2004 2005 2006 2007 2008

$65 $74

$100

$226

$265

Sales (US$M)


Pachem acquisition

Note 1: ITW contributed $84M in sales in year acquired - 2007

Steinbeis acquisition

Clear Image acquisition

ITW Sleeves acquisition

Strong Organic Growth


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$0

$100

$200

$300

2003 2004 2005 2006 2007 2008

Strong Organic Growth

$65 $74

$100

$226

$265

Note 1: ITW contributed $84M in sales in year acquired - 2007

Sales (US$M)

30%of growth

now organic

Growing Market Share


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CCL Global Market Share 3 Years Ago Today Ranking

Growing Market Share

20%

15%

#2

#2

8%

6%

PSL - Beverage

Sleeves

Fuji Sleeves (Japan/public)

Sleever International (France/family-owned)

Spear Inc. (USA/private & financial investor)

Multicolor Corp. (USA/public)

Key Competitors

Extensive Global Footprint


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e s e G oba oo p

Key Customers All Global Players


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y y

Global heavyweights and active consolidators in their segments

Agenda


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g

Key strengths

Growth initiatives beer

soft drinks

wine & spirits

dairy & liquid foods

Food & beverage strategy

Q&A

Beer A Growing Market


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g

Top 4 customers share more than 50% of world market

North America and Western Europe mature, Emerging Markets growing

PremiumizationCustomer Breakdown

US$

InBev-AB

$36B

SABMiller$21B

Heineken

$22BCarlsberg

$13B

Other47%

26%

13%

8%6%

Beer The Move To New Labels


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No-Label Look decoration replacing paper labels and direct print

Marketing and operational benefits

Beer CCLs Global Customers


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InBev Korea

Carlsberg China

Carlsberg RussiaHeineken USA

Femsa Mexico SABMiller South Africa

Beer CCL Providing Innovative Solutions


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g

Wash-Off Labels

CCL has unique patented label construction for refillable bottles

Labels removable and bottles reusable

Refillable bottles provide environmental benefits and represent approx.

50% of beer bottles worldwide

Outlook

Equipment investment regulates transition to Pressure Sensitive Labels(Emerging Markets!)

Today only 5% of all worldwide beer bottlesdecorated with PSL

Soft Drinks Global Market Share


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Company Ranking

Pepsi Nestl DanoneCoke

Carbonated Soft Drinks #2 - -#1

Juice #2 - -#1

RTD Coffee, Tea #2 #3 -#1

Sports Drinks #1 - -#2

Water - #1 #2#3

Soft Drinks Global Opportunities


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Business dominated by Coca-Cola and Pepsi plus Nestl and Danone in bottled water category

Carbonated soft drinks only grow in emerging markets developed markets move to wellness drinks (enhanced waters, juice),

energy drinks and RTD coffee and tea

Standard pack format PET bottles, more recently shapedcontainers which need adaptive label

CCL supplies Shrink and Stretch Sleeves to decorate shaped bottles

Soft Drinks CCL Customers & Products


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Coca ColaCoca Cola

Pepsi

Danone Nestl

GerolsteinerNestl Coca Cola

Soft Drink Innovation


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Super-Stretch-Sleeves (Triple S)

Environmentally friendly and cost effective Sleeve decoration forshaped bottles to replace Shrink Sleeves

Proprietary patented application system

Minimizes material usage, transport, energy consumption

SHRINK SLEEVE TRIPLE S

31%

Wine & Spirits CCLs Major Customers


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Wine makers usually small with regional character

Spirits controlled by Diageo (Smirnoff, Johnnie Walker, Baileys)Pernod Ricard (Chivas, Absolut Vodka, Beefeater Gin) and Bacardi

Diageo$20B

Pernod Ricard$12B

Bacardi$5B

Other26% 34%

26%

14%

US$

Wine & Spirits Major Global Customers & Brands


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BacardiDiageo Diageo Mumm

DiageoDiageoPernod RicardBacardi

Wine & Spirits Opportunities


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Growth in mature markets (competition with beer) and taxregulated markets e.g. India

CCL presence small with Pressure Sensitive Labels andShrink Sleeves

Wine business bolstered by the acquisition of Clear ImageAustralia need to establish franchises in important wine regions

Spot business with spirit companies in all partsof the world but no major position

Dairy & Liquid Food Markets For Growth


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Consumer habits grow on-the-go and portioned packs likesmall plastic bottles

Brand owners look for differentiation with shaped containers andhigh-end decoration

CCL supplies Sleeves, PSL and In-mould Labels full choice ofpremium decoration

Existing business predominantly with regional customers in Europe butrecent investments will attract multinationals (Nestl, Unilever, Danone)

Growth opportunities

Emerging markets (Russia, Asia, Mexico, Brazil) North America with innovations (Triple S)

Dairy & Liquid Food Large & Global Customers


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Danone, Nestl and Unilever as global players

Various regional large customers

$95.0B

$60.0B

$23.0B$9.6B $7.5B $6.0B $3.1B

Nestl Unilever Group

Danone

Arla Friesland Campina Mller

US$

Dairy & Liquid Food Customers & Products


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Campina Nestl Mller

Arla Danone Unilever

Food & Beverage Growth Strategy


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Focus on multinational customers with global brandsaccessing CCLs geographic footprint

Focus on premium brands with high-end decorationand new technologies

no mature products (paper cut & stack labels, wraparound labels)

Focused factories designed to meet customercost criteria, latest technology

Acquisitions to broaden geographic and/orsegment scope


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Questions?

CCL Label Market Niches Represent 20% of Sales


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Batteries Promotions Chemicals

Paints Automotive

With higher margins than the average

CCL Industries Inc.


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CCL Label Specialty Products

Geoffrey T. Martin, President and CEO

September 23, 2008

CCL Industries 2002 2007 Proforma


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$0

$50

$100

$150

2002 2003 2004 2005 2006 2007$600

$800

$1,000

$1,200

EBIT Sales ($M)

Note: Excludes Custom Manufacturing & ColepCCL

Sales

EBIT

CCL Label, Container & TubeInvesting in the Future


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g

$0

$40

$80

$120

$160

$200

2002 2003 2004 2005 2006 20070%

5%

10%

15%

20%

$M

93%Capex as a% of Depn

181% 216% 274% 242% 221%

Note: Excludes Custom Manufacturing & ColepCCL

ROI

ROI

Capex

Depreciation

CCL Container, Tube and Label Working Capital


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129Note: Excludes Custom Manufacturing & ColepCCL

0

400

800

1200

1600

2002 2003 2004 2005 2006 2007

-40

0

40

80

120

WorkingCapital $M

Sales $M

Sales

Working Capital

Capex Outlook


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Capex forecast 2008 of $190 million includes over $60 million ofsignificant & strategic long-term property transactions

CD-Design = $13 million

New Mexican Guanajuato Container plant = $10 million

New Paris HPC Label plant = $8 million

New Montreal Healthcare Label plant = $6 million

New Los Angeles Tube plant = $4 million

Significant plant expansions in the U.K., Germany & Austria = $15 million

Land purchases in China, India, Vietnam and Japan

Container and Tube Capex of $46 million driven by new plantsand equipment in L.A. and Mexico

Capex at Label is $144 million and excluding acquisition related Capex = $127 million

Expect normalized capex in the $125-$150 million range for 09/10 Including Asian expansions

Subject to continuing profit growth and meeting ROI hurdles

CCL Container & Tube Strategies


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Focus on North America Only

Focus on improving Operating Margin and ROI Cost reduction Mexican Container plant, downsizing of Penetanguishene

Pricing commodity cost pass throughs, improve mix

Capex at or below rate of depreciation for 2009-10 in both businesses

Leverage CCL Label Relationships in North America Many common customers in HPC

Beverage opportunities

CCL Label Business Strategy


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Focus primarily on large Global Customers Organize around their needs

Invest globally in world-class facilities and technologies By market segment and/or label type

Increasing focus on product technology innovations

Acquire to expand geographic footprint and product range At the right price, largely bolt-on businesses $10-$100 million

Many opportunities focus on Healthcare & Specialty,Food & Beverage and Durables

Focus on growth at current margins and ROI

CCL Acquisition Approach


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Focus on selected segments of the Label business

Valuations at4-6+ times historic EBITDA

Focus on businesses/people who we know, avoiding auctions

Willing to take on troubled situations: at or below tangible asset value Must be a fit product/geography in our global network

No bet the company deals, always be ready to walk away

Many opportunities arise in turbulent times


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Questions??

2008 ccl investors' day presentation (lite)

Documents