## CCL Container and CCL Tube 

CCL Container delivered a major turnaround under a revitalized management team and was the largest contributor to earnings improvement for the Company in 2011. New pricing programs were established to pass through the changes in aluminum costs to the market every 90 days. Company policy now permits hedging of our metal supply only in conjunction with “back-to-back” priced contracts with blue-chip customers. We were particularly pleased to see our Canadian facility turn profitable in the second half of 2011 after three years of losses as we implemented stricter pricing controls as well as cost reduction and productivity programs. Our U.S. plant delivered excellent results, posting record income for the year. Operations in Mexico enjoyed double- digit growth rates as a third line started up at our state-of-the- art plant in Guanajuato. The sudden 20% devaluation of the peso to the U.S. dollar impacted profitability in the second half of the year, but results remained positive. We expect overall continuing progress in 2012, while recognizing that future prior-year comparisons will be more challenging after 2011’s solid recovery. 

CCL Tube had an outstanding year and exceeded all expectations. Sales were up by 8% and profits up 37% to record levels as we gained share in sluggish market conditions. Our two best-in-class facilities now have the leading position in North America for highly decorated extruded tubes sold to personal care and cosmetic customers. In 2012, we are planning to expand our site in Wilkes-Barre, PA, and add more decorating capability in Los Angeles as we continue to strive for increasing market share. 

With all business segments contributing to our success, CCL reported an 18% increase in adjusted earnings per share* (“EPS”) from, $2.18 in 2010 to $2.57 in 2011, exceeding our EPS growth targets established for the last five years. 

## Strong Financial Position 

Our prudent financial strategy has served us well during this unsettled era as governments have attempted to resolve one economic crisis after another. Our modest debt leverage and strong cash positions around the world ensure that we always have liquidity to run our business in good or difficult times. Over the last decade, we have focused on aggressive working capital management; combined with our lower capital 

expenditures and strong earnings performance, this resulted in cash flow from operations of $171 million in 2011. As a result, our net debt to total capitalization ratio dropped to less than 21% at the end of the year, significantly below our 45% comfort level. 

In 2011, we invested $79 million, net of proceeds on disposals, in our plants to improve productivity, expand our product capabilities and add to our geographic reach with new greenfield facilities in developing markets. Given our past investment and the quality of our global infrastructure today, we expect to keep capital expenditures at or below depreciation for the immediate future. 

Our financial strength supports the stability and sustainability of uninterrupted cash dividends to shareholders, with regular increases and no reductions for over 30 years. We are particularly proud that dividends have more than doubled over the last decade. The 27% dividend payout ratio in 2011 exceeded our 25% target for another year. 

Our strong financial position gives us significant capacity to take advantage of acquisition opportunities. Our focus remains on geographies and markets that can deliver growth and greater value for shareholders, and we are determined to retain our proven financial discipline when evaluating potential transactions. 

Over the last decade, CCL has transformed itself from a regionally diversified packaging company to the largest label company in the world and the leading player in aluminum aerosol containers and plastic tubes in North America. With over 95% of our revenue coming from outside of Canada, CCL continues to capitalize on the growth of the global economy. 

## Global Leadership in a Sustainable World 

CCL’s global network of 69 operations reaches across six continents and 23 countries, enabling us to service our customers wherever they have needs around the world. Our operating philosophy is to “think globally and act locally.” Our global management team is a mix of seasoned industry veterans and talented newcomers. It is also a culturally diverse group deliberately located around the world with one common focus – our customers. In 2011, we were pleased to announce a number of promotions to recognize team members’ accomplishments and to ensure that they continue to grow and gain experience. Our acquisitions, joint ventures 

