Expanding Our Horizons

Expanding Our Horizons CCL INDUSTRIES INC. 2012 ANNUAL REPORT CCL 2218 2012 AR_cover.indd 3 12/03/13 4:17 PM CCL IS A global SPECIALITY pacKagING companY 3 business segments: Label, Container and Tube HEADQuartereD IN Toronto, CANADA 74 locations in 26 countries 6,600 employees CCL LABEL CCL CONTAINER CCL TUBE CCL Label is the world’s largest converter CCL Container is a leading North American CCL Tube produces highly decorated extruded of pressure sensitive and film materials and manufacturer of sustainable aluminum aerosol plastic tubes for premium brands in the sells to leading global customers in the containers and bottles for premium brands personal care and cosmetics markets in consumer packaging, healthcare and in the home and personal care and food and North America. consumer durable segments. beverage markets. With added capability and best-in-class facilities A global player in its industry, CCL Label is CCL Container operates facilities in Canada, in Los Angeles, CA, and Wilkes-Barre, PA, CCL driving growth in emerging markets with new the United States and Mexico offering Tube has expanded market share and moved plants in Thailand, China and Brazil. customers superior quality, high-end graphics into a leadership position selling highly decorated and innovative bottle shapes. extruded tubes to its North American customers. Number of Plants (by location) Number of Plants (by location) Number of Plants (by location) North America – 20 North America – 2 North America – 2 Latin America – 5 Latin America – 2 Europe – 22 Asia – 9 Australia – 4 14 6 80 Africa – 1 Russia – 3 Middle East – 4 CCL Label represents 80% CCL Container represents 14% CCL Tube represents 6% of total CCL sales. of total CCL sales. of total CCL sales. 14% 6% 80% CAUTION ABOUT FORWARD-LOOKING INFORMATION This ANNUAL REPORT 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 all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by, but not limited to, the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans” or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this ANNUAL REPORT contains forward-looking statements regarding the anticipated growth in sales, income and profitability of the Company’s segments; the Company’s improvement in market share; the Company’s capital spending levels and planned capital expenditures in 2013; the adequacy of the Company’s financial liquidity; the Company’s targeted return on equity, earnings per share, EBITDA growth rates and dividend payout; the Company’s effective tax rate; the Company’s ongoing business strategy; and the Company’s expectations regarding general business and economic conditions and the completion and success of the acquisition of the label converting businesses from Avery Dennison. Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the uncertainty of the recovery from the global financial crisis and its impact on the world economy and capital markets; the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological change; changes in government regulations; risks associated with operating and product hazards; and CCL’s ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company’s actual results could differ materially from those anticipated in these forward-looking statements. Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following: global economic recovery and higher consumer spending; improved customer demand for the Company’s products; continued historical growth trends, market growth in specific segments and entering into new segments; the Company’s ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company’s focused strategies and operational approach; the Company’s ability to implement its acquisition strategy and successfully integrate acquired businesses; the achievement of the Company’s plans for improved efficiency and lower costs, including the ability to pass on aluminum cost increases to its customers; the availability of cash and credit; fluctuations of currency exchange rates; the Company’s continued relations with its customers; and general business and economic conditions. Should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements. Further details on key risks can be found throughout this report and particularly in Section 4: “Risk and Uncertainties.” Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on the business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts. The forward-looking statements are provided as of the date of this ANNUAL REPORT, and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law. Unless the context otherwise indicates, a reference to “CCL” or “the Company” means CCL Industries Inc., its subsidiary companies and equity accounted investments. CCL 2218 2012 AR_cover.indd 2 12/03/13 4:17 PM 2012 LETTER TO SHAREHOLDERS 2012 WAS ANOTHER YEAR OF SIGNIFICANT PROGRESS AND STRONG OPERATING PERFORMANCE DESPITE MACROECONOMIC HEADWINDS AND THE STRONG CANADIAN DOLLAR. INNOVATIONS, GEOGRAPHIC DIVERSITY, FOCUS ON COST MANAGEMENT AND A BLUE CHIP GLOBAL CUSTOMER BASE ALL COMBINED TO DELIVER A SUCCESSFUL 2012. YOUR COMPANY’S FINANCIAL POSITION HAS NEVER BEEN STRONGER AND DEMONSTRATES SIGNIFICANT CAPACITY TO EXPAND HORIZONS BOTH ORGANICALLY AND THROUGH VALUE-ENHANCING ACQUISITIONS. EXPANDING OUR HORIZONS Donald G. Lang Geoffrey T. Martin Executive Chairman President and Chief Executive Officer STRONG OPERATING PERFORMANCE automotive and industrial machine OEMs with heavy-duty durable products, including LED displays. Throughout the year economic conditions remained unsettled, but CCL posted continuing good growth in both sales and CCL Label operates 68 state-of-the-art plants that are globally profitability across all business segments and in most of the located to meet the sourcing needs of its international countries in which we operate. Sales increased by 3% and customers. Operating in 26 countries, this worldwide network net earnings were up by 16%. Foreign currency translation has been built through acquisitions in the developed world and negatively impacted earnings by 6%, but our geographic reach, greenfield sites in emerging markets. Over the last decade, with 47% of revenues in North America, 32% in Europe and 21% significant investment in our facilities and technologies has in emerging markets, mitigated the downside performance. created uniquely specialized operations with the capacity With all business segments contributing to our success, CCL and capability to support customers’ product launches, reported a 13% increase in adjusted basic earnings per share* development innovations and supply-chain initiatives all (“EPS”) from $2.57 in 2011 to $2.91 in 2012. around the world. In a low-growth global economy, CCL Label posted a solid CCL LABEL performance, increasing sales by 3% over 2011. Sales gains in CCL Label is the world’s largest converter of pressure sensitive North America were solid and Europe reported low single-digit and film materials for decorative, functional and information growth in a tough environment. Emerging markets registered labels used by large global customers. With sales in excess double-digit growth, despite a slowdown in Brazil and parts of $1 billion and representing 80% of CCL’s total revenue, of Southeast Asia, and now represent over 21% of CCL Label this business segment delivers over 85% of the Company’s total revenues. Excluding the impact of currency translation, operating income.* worldwide Label sales increased by 7% and profitability improved by 11% compared to 2011. CCL Label’s 22% EBITDA* We service three main customer groups: Home & Personal margin continued to be at the high end of the range for the Care, Healthcare & Specialty, and

Load more