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and licence agreements have also introduced us to many strong individuals who have joined CCL, bringing knowledge of different cultures, new technologies and fresh ideas along with their entrepreneurial spirit. 

Shareholder interests are represented by a highly experienced Board of Directors. They bring a diverse set of skills and knowledge to our deliberations, providing wise counsel to management and strong corporate governance. After more than 17 years as a Director, with nine of them as Chairman of the Board and three as Lead Director, Jon Grant has announced his plans to retire from the Board, and therefore he will not stand for re-election at the annual general meeting in May 2012. His knowledge of the Company, our industry and the environment in which we operate will be missed, and we thank him for his guidance during his many years as a Director. 

We continue to deploy many initiatives to reduce the carbon footprint of CCL’s products and services. Our patented Wash Off labels for returnable glass bottles reduce the impact of glass going to landfill. We gained significant customer traction with our tubes produced from post-consumer polyethylene resins. Our Super Stretch Sleeves decorate PET beverage containers without adhesive or energy and facilitate the easy removal of the label for bottle recycling. In 2011, we partnered with Mitsubishi to bring to customers pressure sensitive label release liners that can be reused multiple times through the decorating process. Many of our operations moved to eliminate wooden pallets and corrugated boxes in collaborative logistic partnerships, using multi-trip returnable systems with suppliers and customers. Some CCL locations began to use subsidies and credits to generate solar power to run our factories, and our new plant in São Paulo, Brazil, is being designed to the most exacting standards to minimize our carbon footprint and become a model for future facility constructions. 

## Positioned for Growth 

CCL has reinvented itself numerous times to adapt to changing markets and consumer demands to become what it is today – a major global player in the specialty packaging 

sector and the largest label company in the world. We have successfully executed a clear mission and strategy. We strive for continuous improvement in our manufacturing processes and business services. We focus relentlessly on our customers’ ideas and partner with them to turn innovative concepts into products that make a difference. We support our employees’ passion to make CCL a better place to work and believe that it is synonymous with becoming a world- class supplier to our customers. 

Given the macroeconomic issues facing us, we are pleased that CCL enjoyed steady growth and strong earnings momentum in 2011. Our financial position strengthened further from strong cash flows and now provides an even better financial foundation for the future. Our world-class facilities, blue-chip, diversified customer base and talented global management team position us for future growth. 

Looking ahead, we are energized about our future and comfortable with our capability to weather further economic storms. We believe that global leadership underpins the investment thesis for CCL shareholders. Acquisitions remain a significant component of our success, and we will accelerate our efforts to seek out transactions around the world that make strategic sense and match our valuation and quality criteria. We will also continue to invest in building new facilities to add capability and capacity, and extend our geographic reach. 

We would like to thank our customers and suppliers for their continued support, and recognize and thank our 6,400 employees around the world for their commitment, creativity and constant drive for success. 

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