Consolidated Container Company
Investor Overview
Consolidated
Container
Company
Notices and Disclaimers
Forward-Looking Statements. The statements made in the course of this presentation and/or contained in the
presentation materials may include statements that relate to anticipated future events (forward-looking statements) rather
than actual present conditions or historical events. Forward-looking statements, by their nature, are subject to a variety of
inherent risks and uncertainties that could cause actual results to differ materially from the results projected. There are a
number of important risk factors that could cause the actual results discussed in this presentation to differ from those
expressed in forward-looking statements contained herein, including those risk factors relating to Consolidated Container
discussed in detail in annual and quarterly reports and other filings made with the SEC by Loews Corporation. Given these
risk factors, investors and analysts should not place undue reliance on forward-looking statements.
Non-GAAP Financial Measures. Certain financial information presented herein contains non-GAAP financial
measures. Management believes these measures are useful to understanding the key drivers of Consolidated Container’s
operating performance.
Where You Can Find More Information. Annual, quarterly and other reports filed with the SEC by Loews
Corporation contain important additional information regarding Consolidated Container and we urge you to read this
presentation together with those filings, copies of which are available, as applicable, at the corporate website of Loews
Corporation at www.loews.com or at the SEC’s website at www.sec.gov.
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CCC At-a-Glance
• A leading North American manufacturer of rigid plastic packaging solutions 2,100
customers across a wide
• Envision Plastics division is a leading domestic supplier of post-consumer range of end markets
recycled resin from facilities located on both coasts
• Experienced management team with strong track record of operational 66
success North American
manufacturing facilities
• CCC is a good-sized player in a highly fragmented market and serves as a
platform for growth in the packaging industry
• Business has strong free cash flow and cash-on-cash returns that can be 3,200
used to grow the business Employees across
North America
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CCC - Two Business Lines
Rigid Packaging Envision Plastics
(“Envision”)
A leading North American manufacturer of rigid plastic Second largest high density polyethylene
packaging solutions, with a particular focus on short- to mid- (HDPE) recycler in North America, with
run volumes for customers across a variety of attractive, annual HDPE production capacity of 100+
recession-resistant, consumer-oriented focus segments million pounds
• Produce over 5.5bn bottles and ship ~500mm net pounds annually • Facilities on both east and west coasts
• 64 manufacturing facilities (18 are located on-site with customers) • Industry-leading patent portfolio
Segment Focus Segment Focus
A range of post-consumer recycled resin
• Food / Nutrition • Water (“PCR”) products, including both traditional
• Household Chemical • Pharma natural and mixed color grades as well as
• Industrial & Auto • Juice / Tea / Other Beverage proprietary recycled resin products for food
• Dairy contact
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Rigid Packaging Business Overview
• Focus on short- and mid-run volumes
• Cover a variety of attractive, recession-resistant, consumer-oriented focus segments
Household Chemical Food / Nutrition Dairy
15% of Sales 16% of Sales 24% of Sales
Industrial & Auto Pharma Water / Other Beverage
19% of Sales 11% of Sales 15% of Sales
Note: Figures pro forma for acquisitions.
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Diversification Through Synergistic Acquisitions
Sainte-Claire
Vancouver
Grenache Anjou
Orangeville Montreal
Toronto
$60M Plan revenue ($USD)
7 Manufacturing facilities
~120 Manufacturing lines
400+ Employees
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Note: Edmonton PMI facility closed at the end of the 2nd quarter in line with the original acquisition strategy.
Overview of Newest Acquisition:
Tri State Distribution
• Acquired in June 2019, Tri State designs and manufactures vials, caps, and labels, and has digital printing capabilities for
pharmacies and pharmaceutical distribution companies
• Tri State provides complete packaging solutions to its customer base utilizing patented / proprietary products
• Diverse customer base with 500+ customers in ~7,500 locations; customers include distributors, large store pharmacy
chains, and independent pharmacies
• The acquisition meaningfully enhances CCC’s presence in specialty markets and significantly adds to CCC’s pharmaceutical
packaging capabilities
ProLite™ Tri Maxx® Pro Maxx® Pro Plus® Pro Tect® PRX®
Series Series Series Series Series Series
Prescription Custom Pill Liquid Ointment Jars/
Labels Imprinted Bottles Bottles Dropper
Caps Bottles 7
Recycled Resin Overview: Envision Plastics
Leading high density polyethylene (HDPE) recycler in North America with
annual HDPE production capacity of 100+ million pounds
• Envision Plastics was established in 2001. Since this time Envision has produced
nearly 1 billion pounds of recycled resin
• Envision has a strong track record of product innovation that has led to the
commercialization of the flagship products
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1Management Estimate
CCC’s Footprint Supports Two Primary Operating
Models
On-Site
1 Focused on one customer’s business
with highly efficient asset set up to
match customer demand
Longer-term contracts with on
average higher return on capital
Increased retention rate of customer
Multi Customer Site
2 Sites serving many customers
Multiple technologies under roof
Scale for larger customers, flexibility to
take shorter runs of business shared Off-site Plants On-site Plants Headquarters
across single asset for smaller customers
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Track Record of Strong Financial Performance
Net Sales Consolidated Adj. EBITDA(1)
($ mm) ($ mm)
$1,009 $188
$857 $890 $157 $163 (4) (4)
$832 $807 $142 $7 $34
$788 $23
$131 $19 $8 $5
$867 $867
$114 $148 $149
$13
$87 $12
2014A 2015A 2016A 2017A 2018A LTM 3/31/19 2014A 2015A 2016A 2017A 2018A LTM 3/31/19
Core Operating Revenue (COR) – Rigid Packaging Only (2) Free Cash Flow(1,3)
($ mm) ($ mm)
$524
$136
$442 $78
$399 $411 $115 $114 (5)
$374 $13 (4) $28
$358 $446 $6
$429 $19 $5
$87 $8
$100 $103
$76
$13
$12
$41
2014A 2015A 2016A 2017A 2018A LTM 3/31/19 2014A 2015A 2016A 2017A 2018A LTM 3/31/19
___________________________ $ Run-Rate Adjustments $ PF M&A Adjustments (6)
___________________________
Note: Figures rounded to the nearest whole number.
1. As defined under CCC’s credit agreement, Consolidated Adjusted EBITDA includes one-time costs, non-cash items and other adjustments, run-rate cost savings, and PF M&A Adjustments.
2. COR defined as net sales minus raw material and external freight pass-through costs, adjusted for timing impacts of resin market movements
3. Free Cash Flow (“FCF”) defined as Consolidated Adjusted EBITDA less total capital expenditures (excluding mold spend).
4. Includes run-rate synergies.
5.
6.
Includes run-rate synergies plus run-rate synergies from reduced Capex at TSD.
As defined under CCC’s credit agreement. PF M&A Adjustments included beginning in the year of acquisition. Prior years not pro forma.
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CCC Vision & Strategy
Innovation & Design
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CCC’s Vision and Strategy Designed to
Deliver Continued Growth
1 2 3 4
Drive Growth Build Advantaged Create Value Added
Acquire for Scale
Through Customer Cost Position Product and Service
and Capability
Loyalty Solutions
Near-term Growth Levers
1 2 Leverage customer and operations excellence capabilities to
drive above market growth from existing and new customers
1 Leverage innovative solutions to drive growth in existing and
3
select under-penetrated markets.
Continued margin improvement created from application of our
2
operation excellence capabilities
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1 3
Industry Changing Innovation Platforms
Growing portfolio of differentiated and innovative packaging and service solutions
EyeCon™ (Carton Conversion)
• Total conversion opportunity of ~2.5B cartons sold in the U.S.
• Seeing conversions with Organic Valley “premium” brand one of the first in dairy segment to convert
• Target premium carton formats (organic milk, plant-based beverages, juice and tea) and beverage customers
looking for differentiated packaging
Dura-Lite®(1)
• Began commercializing Dura-Lite® in 2017 and have grown to ~300 million bottles sold in 2018, which were
largely only gallon bottles.
o Dura-Lite® gallons have grown to over 50% of our total dairy and water gallons shipped, and more than
20% of all dairy and water bottles are custom Dura-Lite® containers
• Quart and half-gallon bottles ramping up quickly in 2019, with the annual run rate of total Dura-Lite®
containers increasing to over 400 million bottles
• Translates to over 9M pounds of resin saved to date
• Dura-Lite® quickly becoming the industry standard
• Licensing molds to self-manufacturers, which is also accelerating the market conversion
• Leveraging and transferring the Dura-Lite® technology to other container solutions:
o Dura-Lite® industrial gallons in commercialization
o Dura-Lite® canisters in customer qualifications
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1. Dura-Lite® is a proprietary design which allows for light-weighting the bottle production, creating cost savings for both the customer and CCC.
CCC’s Vision and Strategy Designed to
Deliver Continued Growth
1 2 3 4
Drive Growth Build Advantaged Create Value Added
Product and Service Acquire for Scale
Through Customer Cost Position and Capability
Loyalty Solutions
Longer-term Growth Levers
4 Acquire business in existing and new end markets for increased scale and
capabilities to serve our customers better
− Highly efficient bolt-on transactions for penetrating select geographies or
growth with existing customers
− Scale transactions in rigid packaging to drive scale, increase presence in
specialty segments, and bring new technology solutions to our customers
− Move into complementary packaging markets 14
Summary:
• CCC is a strong business with five years of consistent growth performance
• CCC’s vision and strategy is focused on maximizing value for our customers
to drive growth
• Investments in differentiated capabilities and innovation will drive continued
EBITDA and margin growth
• CCC seeks to continue to deliver strong cash flow performance which will be
used to find additional growth through M&A
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