2016 ccl healthcare
TRANSCRIPT
CCL Industries
CCL Industries Today
HQ TORONTO, CANADA
Public Company• Established 1951 • President & CEO: Geoffrey T. Martin • 3 divisions: Label, Container and Avery• Serving the home & personal care, healthcare,
premium food & beverage and specialty product markets globally
Financials• 2015 Sales >$3.0 billion• Fiscal Year End: December 31• TSX Trading Symbol: CCL.B
HQ FRAMINGHAM, MA USA
HQ TORONTO, ON CANADA
Over13,000employees worldwide
CCLIndustries Inc.Toronto, Canada
“You can find us in33
countries on 6 continents.”
“We are worldwide number ...
in
in
in
Pressure Sensitive
Labels
Stretch Sleeves
Shrink Sleeves
“We own no less than125 production facilities.”
... and our turn over is ...”
> $3billion
CCL is the only label company worldwide with our scale, geographic reach and market breadth.Our entrepreneurial values remain intact: reinvent continuously and never accept the status quo.
CCL Industries Today
CCL Mission
To be the global supply chain leader of innovative label solutions for the world’s largest corporations in the consumer packaging, consumer durable and healthcare markets
• Strategic Customer Alignment• Regional / Global Presence• Investment in Infrastructure• Customer Interface
“We think globally and... act locally.”
At CCL Industries, we think globally and act locally. Our highly integrated networkk of manufacturing operations is well positioned in key markets around the world.
We support our customers with secure and quick-to-market global launch capabilities, providing consistent quality no matter where our products are produced.
This unique ability to coordinate product supply worldwide, while at the same time catering to specific market needs, will continue to generate value for years to come.
“Global” Structure
`
CCL Label is the world’s largest converter
of pressure sensitive and extruded film
materials for decorative, functional and
information labels. The business is CCL’s
biggest reportable segment and
represents 67% of total sales. Customers
include major global corporations in the
consumer packaging, healthcare and
consumer durable segments.
ContainerLabel Avery
CCL Divisions
CCL Container is a leading North
American manufacturer of sustainable
aluminum aerosol containers and bottles
for premium brands in the home and
personal care and food and beverage
markets supplying high quality graphics
and innovative shapes that help our
customers attract new consumers. It
represents 8% of CCL’s total sales.
Avery is the world-leader for software-
driven digital printing solutions for millions
of small businesses and consumers using
our cloud-based systems and download
templates from avery.com to professionally
print labels, tags, dividers, badges and
specialty card products. With state-of-the-
art manufacturing facilities, internet-based
marketing skills and a strong operational
infrastructure, Avery represents 25% of
CCL’s total sales.
67%26%
7%
Sales by Business Segment
Container
Label
CCL Global Sales
2008 2009 2010 2011 2012 2013 2014 2015700
1200
1700
2200
2700
3200
$1,189 $1,199 $1,192$1,268 $1,297
$1,889
$2,585
$3,039Cdn $ millionsTube
57%
27%
16%
Sales by Geography
U.S& Canada
Europe
EmergingMarkets
2015/02/27CCL Industries Announces First Acquisition for Avery NA – PC/Nametags and Meetings Direct supplying name badges and meeting registration supplies to professional meeting planners. 2014 sales were $36 million.
2015/07/06CCL Industries Announces Bolton-On Acquisition for CCL Design - Fritz Brunnhoefer in Germany. Automotive label company with sales of 8.5 million in 2014.
2015/07/08CCL Industries Signs Binding Agreement with Korsini to create North America “In-Mold” Label venture. Korsini is a leading European “IML” producer based in Turkey. $20 million joint venture to build a new operation in Memphis, Tennessee.
2015/10/05CCL Industries Acquires Leading Special Security Printing Company in the US – Banknote Corporation of America based Greensboro, NC. The acquired operation manufactures specialty labels and high security cards & documents for government applications, including postage stamps, passports and anti-counterfeit track & trace labels. 2015 sales were approx. $35 million.
2015/11/06CCL Industries acquires Worldmark, creating a new customer sector for CCL Design. Worldmark is a leading supplier of functional labels for the world leading designers and brand owners in the technology sector. 1900 employers and 6 manufacturing sites in China, one in Mexico. 2015 sales were approx. $210 million.
CCL Update 2015 - 2016
2015/11/06CCL Industries acquires Worldmark, creating a new customer sector for CCL Design. Worldmark is a leading supplier of functional labels for the world leading designers and brand owners in the technology sector. 1900 employers and 6 manufacturing sites in China, one in Mexico. 2015 sales were approx. $210 million
2016/01/04CCL Industries announces the acquisition of Mabel’s Labels for the Avery NA Division – Mabel’s Label is based in Hamilton, Ontario Canada and well-known in North America for personalized identification labels for children and families. 2015 sales were approx. $9.5 million.
2016/01/21CCL acquires Woelco AG in Germany, a supplier of durable labelling systems for industrial & automotive industry. 2015 sales were approx. $31 million
CCL acquires Label Art Ltd and Label Art Digital Ltd based in Dublin Ireland. Label Art is a leading pressure sensitive label producer in Ireland with focus in Healthcare & Specialty market
2016/05/13CCL acquires Checkpoint, a leading manufacturer of technology-driven, loss prevention, inventory management and labeling solutions, including RF and RFID-based, to the retail & apparel industry. The business employs 4,700 people, operating in 29 countries including 46 go-to- market units and 21 manufacturing facilities. 2015 sales were approx.
CCL Update 2015 - 2016
CCL Markets
Home & Personal Care
Healthcare &Specialty
Premium Food & Beverage
This business partners
with customers globally
to deliver innovative
and decorative labels
and sleeves that help
them drive growth in
new demographic and
global market
segments
Automotive & Durables
Operating as CCL
Design, this business
focuses on the durable
goods market,
including automobiles,
batteries, domestic
appliances, IT
peripherals, consumer
electronics and
industrial machines
Avery
Consumer arm delivers
professionally printed
labels, tags, dividers,
badges and specialty
card products to small
businesses and
consumers through
avery.com and our
online cloud-based
software tool
Globally integrated
network of Label &
Tube manufacturing
facilities, combined with
our North American
Container business, are
valued partners for
many of the world’s
leading home and
personal care brands
Global healthcare,
pharmaceutical,
chemical and other
highly regulated
industries where
secure, accurate on
product labeling and
instructional compliance
is a strategic imperative
Limitless Press CapabilityFull breadth of print processes across all sites
Gravure Offset
FoilScreen
Flexo
Digital
Introducing CCL Healthcare
CCL Healthcare 22 Facilities Worldwide
11 Facilities in North America
PharmaceuticalBiotechnologyMedical DeviceContract PharmaNatural HealthDiagnosticsClinical Animal Health
IntroducingCCL Healthcare
Markets Served:
Product Lines
• Pressure Sensitive Labels
• Expanded Content Labels (ECL)
• Printed Literature
• Digital Folding Cartons
• Brand Protection
• Cold Chain Solutions
• Specialty Solutions
• Smart Packaging
• Shrink Labels
• Flexible Packaging
• Map Fold Booklet• Bound Booklet (Glued or
Stitched)• Encapsulated Booklet• Straight Fold Booklet• Review Booklet• With Braille
Expanded Content Labels (ECLs)
Leaflet ECL Booklet ECL Map FoldECL
Easily incorporates
large charts and
detailed product
illustrations
Effective construction
for map-style reading
Folds both vertically
and horizontally
Multi-Ply Constructions
Slim profile with 3-5
printing surfaces
Glued spine or clean
peel option
Easy to reseal
Effective construction
for products that
require only a few
pages
EncapsulatedECL
Effective solution when
weather, extra
durability or security
are priority
May use any ECL book
construction inside
pouch
Provides premium
protection with durable
pouch
Perfect for promotional
and multilingual products
Effective construction for
products that require only
a few pages
Multiple configuration
options
Glued or stitched
Traditional book-style
construction for easy
read & reseal
Easily incorporates
regulatory info, large
charts & illustrations
Some pages may be
perforated for easy
removal
Expanded Content Labels
New Products
Stick & Lift
• This is a 2-in-1 label, with a base label designed for permanent attachment to the product, and one or more removable labels
- For traceability- For patient records- For reimbursements
• Typically, one Stick & Lift can replace a number of labels, thereby saving on work when it comes to handling the substance.
• The 2 and 3-Ply Resalable Labels have up to 5 surfaces for additional information: the top ply, the back of the top ply, the front and back of the middle ply and the base.
• Between the layers of this label is a repositionable adhesive with a thin strip of a permanent second adhesive to form the hinge.
• There is a non-adhesive tab that facilitates opening, revealing the additional information on the two inside panels.
Multi-Ply Labels
Serialization and Track & Trace
• Radio Frequency Identification (RFID)
• Variable Data Coding
• Print & Effects
Printed Literature• Booklets• Inserts• Outserts• Topserts• Multi-Serts• Pads• IFU / DFU
Digital Folding Cartons
Shrink Sleeves
• Full Body Prime Label• Full 360 degree wraparound graphics• Tamper Evident• Promotional Sleeves• Multi-Packs
25
Promotional (OTC)
Industry Challenges
1. Lead times for finished product are compressing
2. The number of SKUs are increasing while production runs per SKU are decreasing
3. Replacing ‘Big Order’ replenishments with cost-effective smaller run sizes to reduce working capital and reduce outdated inventory
4. Managing increasing amount of information that must be placed on the packaging
5. Protecting brands remains a challenge with layered cost-effective anti-counterfeiting solutions
6. Tracking & tracing product to secure the supply chain or to manage inventory returns (adding variable barcoding or RFID)
7. Your biggest challenges?
Industry Challenges
Partnership To Win
• Innovation• Cost Efficiency
Projects• Digital is the Future• Brand protection• Supply Chain
Integration• 100% Quality Certified
Packaging Innovation Team ‘the PIT Crew’
Packaging Innovation Team‘The PIT Crew’• Aligned technical experts offering a significant base of knowledge
and experience:
– Packaging design
– Manufacturing
• Collaborates with you to meet packaging challenges:
– Define objectives– Identify solution alternatives– Manage projects– Qualify on your packaging line
• Accessed locally by PIT Crew members
• Supported by 100 + Technical experts worldwide
NA Packaging Innovation Team: ‘the PIT Crew’Solution Examples:
• Inverted IV Hanger Label
• Time & Temperature Monitoring
• Multi-layer labels
• Anti-counterfeiting technologies
• RFID-enabled Packaging - among the first to add into packaging for pharmaceutical (Pfizer Viagra)
• Serialization with verification, through digital print production
• RFID• Color Shifting Ink
• Braille print for healthcare products is a new European Union requirement
• CCL’s new innovative solution applies transparent dots to existing label designs
• Allows for seamless integration of the Braille legislation by healthcare companies
PIT Crew Product Examples: Braille
• This is a 2-in-1 label, with a base label designed for permanent attachment to the product, and one or more removable labels
– For traceability
– For patient records
– For reimbursements
• Typically, one detachable label can replace a number of labels, thereby saving on work when it comes to handling the substance.
PIT Crew Product Examples: Double Detach Label
• Flonase OTC nasal spray mechanism is packaged in a clear clamshell
• Three separate printed packaging components were required.
• A fully pre-assembled inlay card containing a branded cover shown through the clamshell,
(A) detachable Quick Start Guide,
(B) detachable Question & Answer Book,
(C)and two anti-theft tags. See photos.
The pre-assembled kit is delivered under a single catalog number.
PIT Crew Product Examples: Flonase
(A)
(B) (C)
(D)
(A)
Brand Protection
A Tri-Lateral Approach
Package securityprogram should meet all levels
of known authentication
technology.
Security Levels & Products
• Adoption of a ‘Multi-Layered’ approach to combat all levels of counterfeiting
• Demand for the integrated solution provided by a single company enables ‘Life Cycle Management’
Best TechnologyTo Meet
Your Objectives
Mass Serialization (T&T, RFID, VDP)
Taggants
Security Inks
Specialty Print & Effects
Holographic Security
TE & Specialty Substrates
Brand Protection ‘Response’
CC
L H
ealth
care
Digital is a Proven Print Process
Digital label printing made up 13% or $4.8 billion of total worldwide label sales in 2014
+1,600 HP Indigo presses are installed worldwide
HP Indigo outsold all conventional presses combined in 2012!
CCL has invested in + 65 HP Indigo Presses worldwide
CCL Digital Printing Strategic Direction – “A Business Solution”
CCL Healthcare is strategically investing globally in digital print production to further advance our critical customer initiatives:
High Velocity Supply Chain
Reduction in Working Capital and Obsolescence
Improved graphic performance
Variable content, including serialized barcodes and brand personalization
Consistent graphics
• 100% Registration
• No “trapping”
• Offset quality
Variable Content• Unique barcodes
(Track & Trace)
• Copy and images (Promotions)
Order what you need
• Reduce inventory
• Reduce Obsolescence
CCL Digital Print Production: Benefits
Digital Printing
CCL HP Indigo WS6800Label Press
CCL HP Indigo WS30000Folding Carton Press
Variable Content
Serialization: Unique number and / or barcode by label and folding carton:
• Track & Trace (GS1) (‘Pre-serialized’)
• Diagnose / Deter diversion (re-importation)
• Diagnose / Deter counterfeiting (good or fake?)
Lot & Date Coding: With JIT production, we can print the lot and date code for a specific production run
0000000000005
0000000000006
Supply Chain Services
• CCL Supply Chain: creating a global world class synchronized end-to-end supply chain, delivering locally …
Agility/Responsiveness/Speed to Market Reduced Lead Time Reduced Days on Hand (DOH) Reduced Obsolescence Reduced Working Capital Customer-Supplier Connectivity Customer-Supplier Joint Collaboration Single Point of Contact Daily Deliveries/Deliver to Line New Business Awards/Secure Contracts Create Production Space
Supply Chain Solutions – More for Less
Increased efficiencies through forecast communication instead of placing purchase orders
Speed to market and increased reliability Partnership with CCL LabelLabels when you need them
• Ability to plan orders more efficiently based on size, like colors, etc.
• Partnership with you, our customer• The forecast gives us better visibility
for planning purposes
Advantage to You:
Advantage to CCL:
Let CCL Plan Your Orders
Active items = 184Average Inventory= 28,578,355
Days On Hand = 49 Days
Active items = 275Average Inventory= 12,457,590
Days On Hand = 18 Days
2010
2015
Supply Chain Planning Case Study
Automated Systems vs. Manual Systems
Managed InventoryMinimized ObsolescenceImproved EfficienciesImproved Utilization of ResourcesShorten Enterprise Supply ChainWin-Win for everyone
• Labels delivered when needed• A Happy Customer • Strong Partnership
End Results
Advantages
Advantages and End Result
The future competition is between supply chains.
The Best Supply Chain Wins!
The future competition is not between companies.
Collaborative Joint Venture
Quality System & Certified Supply
• cGMP-based approach
• Uniform processes, protocols, and documentation
• Additional security protocols are incorporated to ensure technology, waste, and information is controlled
• Pre-serialized 2D and RFID labels are delivered with certification
• 100% Vision Inspection, including folding cartons with each image 100% inspected
• Global approach enables disaster recovery, consistency, and business continuity
• ISO Certification (2Q 2016)
CCL Healthcare Quality System
Contingency Disaster RecoveryCCL Healthcare North America
State of the Art cGMP Facility
Single Pass Inspection (with Digital Inspection)
57
Health Care Plant
State of the Art – cGMP Facilities
CCL Healthcare Quality SystemCertified SupplyBenefits:• Reduce the cost of incoming inspections – ability to re-deploy
IQA professionals into other high-priority areas
• Release product to the production floor faster – reduce cycle time and improve supply chain efficiencies (10 days to 2?)
• Reduce non-conformance administration costs
How to get Started?
1. Begin with an Audit of CCL Healthcare facilities
2. Build history of successful IQA inspections
3. Move to reduced testing and prepare time line and metrics for transition to full Certified Supply
Transitioned flexographic labels to digital printing
Established a Custom Service Strategy
Eliminated ‘trapping’ with digital offset printing
Met corporate supply chain goals
Improved speed to market
Exceeded Graphics and Marketing expectations.
Achieve lead time reduction goals to respond faster to changing market demand
Improve brand graphics in the competitive Consumer Health market
Customer Challenge Customer Benefits
Major Consumer Health Company Responds Faster to Changing Market Demand and Increases Shelf Presence
Solution Stories
Collaborative Solution
Identified + 200 SKUs for transition to digital printing
Developed a Custom Communication & Service Strategy
Reduced label inventory and Working Capital by 80%
Lead times reduce to < 5 days
Prepress costs were significantly reduced.
React quickly to package biologic batch production offshore, with last-minute batch labeling information.
Reduce significant obsolescence and working capital investment.
Customer Challenge Customer Benefits
Biopharmaceutical Company Reduces Inventory Obsolescence and Eliminate ‘Big Shipment Replenishment’
Solution Stories
Collaborative Solution
Transitioned flexographic labels to digital printing
Established a Custom Service Strategy
Reduced inventory ≤ 2 months (working towards one month)
Rescued 6,742 lbs. of wasted material from landfills annually - a74% REDUCTION
Reduce inventory to ≤ 3 months:- 108 SKUs- 25 Label Sizes- 432 total flexo runs
Significantly Reduce Corporate Footprint
Customer Challenge Customer Benefits
Healthcare Producer Reduces Carbon Footprint and Inventory
Solution Stories
Collaborative Solution
Why CCL Healthcare?
1
4Partnership
Bonus
Why CCL Healthcare?
5
823
Global setup efficient inpurchasing, best working
practices, back up system…
Sustainable company with strong balance sheet and long-
term growth strategy
Global coverage & continuous investment into new plants and
latest technology
Innovation culture – leadership in technology
Outstanding track record in performance and service. 100%
Combined experience & knowledge of worldwide CCL plants
Proprietary technology ensuring our customers benefit from innovative leading packaging technologies.
Highly experienced application Engineers to support customersand offer on-site tailored application workshops. 67
Why CCL Healthcare?CCL Industries>$3.0 billion global specialty packaging company with more than 13,000 employees operating 119 production facilities in 31 countries continents. Corporate offices are located in Toronto, Canada, and Framingham, Massachusetts, USA. CCL’s three business segments are Label, Avery® and Container.
CCL HealthcareWith 11 facilities in North America and 22 Worldwide, CCL Healthcare offers secondary printed packaging engineering and production specifically for the Healthcare Industry.
We produce under cGMP processes with 100% inspection. Global production offers disaster recovery options, local supply, and cohesive brand launches.
Packaging Innovation Team – ‘the PIT Crew’At the heart of CCL Healthcare lies the PIT Crew. Rely on us to meet your toughest challenges with 100 global technical experts to improve package functionality and line efficiencies.
Product Lines include:
• ECLs and Multi-Ply Labels
• Printed Literature (Inserts, Outserts, Booklets)
• Folding Cartons
• Cold Chain and Temperature Monitoring Solutions
• Flexible Packaging
Strategic Services
Digital Print ProductionWith high quality digital ‘offset’ printing from CCL Healthcare, you can buy only what you need and receive printed packaging when you need it – including short or mid-sized runs for labels, folding cartons, flexible packaging and specialty products. You can reduce cycle time, reduce inventory, reduce the risk of obsolescence, and add variable content.
Brand ProtectionProtect your brands from counterfeiting, re-importation, and diversion with CCL Healthcare’s proven team of experts. We collaborate with you to understand your situation and design a single or multi-layered packaging solution that adapts to your changing needs.
Smart PackagingRFID and variable data enabled packaging can help you better manage returns and identify and diagnose supply chain inaccuracies.
CCL Zero Waste InitiativeYou can reduce total cost by streamlining processes, reducing inventory, reducing or eliminating the risk of obsolescence with CCL’s proven integrated Supply Chain system. Further reductions include Certified Supply and Digital Print Production.
We take responsibility with you to ensure high-quality, on-time delivery. Leverage Certified Supply or Reduced Testing to further reduce incoming quality assurance time & resources.
Thank You