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## Positioned for growth 

CCL DELIVERED HEALTHY PROGRESS IN 2011 DESPITE A DIFFICULT ECONOMIC ENVIRONMENT, SOFT CONSUMER SPENDING AND CONTINUING INFLATIONARY RAW MATERIAL COSTS. OUR GLOBAL CONSUMER STAPLE CUSTOMER BASE AND OUR WIDE RANGE OF INNOVATIVE PRODUCTS FUELLED ANOTHER SUCCESSFUL YEAR. ROBUST FINANCIAL RESULTS, WITH BOTH TOP AND BOTTOM LINE IMPROVEMENT, POSITIONED THE COMPANY FOR FUTURE GROWTH AND INCREASED SHAREHOLDER VALUE. 

## Strong Operating Performance 

After a substantial recovery, in 2010, from the global economic crisis of the previous two years, CCL posted strong 2011 operational performance across all business segments and most of the countries in which we operate. Throughout the year economic conditions remained unsettled, particularly in Europe. Despite this challenge, sales increased by 6% and net earnings by 18%. Foreign currency translation, a strong headwind for most of the prior decade, negatively impacted earnings by 2%, due to the rising U.S. dollar largely offsetting the decline of the euro and other international currencies in the second half of 2011. 

## CCL Label 

CCL Label is the world’s largest converter of pressure sensitive and film materials for decorative, functional and information labels used by large global customers. Sales passed the $1 billion landmark for the first time in our history in 2011, and the segment continues to be 

the powerhouse for shareholders, delivering 87% of the Company’s operating income.* 

We service three main customer groups; Home & Personal Care, Healthcare & Specialty, and Food & Beverage. Each of these three business sectors is responsible for approximately 25% to 35% of our global Label revenues. In addition, our small but growing CCL Design business services European automotive and industrial machine OEMs with heavy-duty durable products, including LED displays. 

CCL Label operates 63 state-of-the-art plants that are globally located to meet the sourcing needs of its international customers. This worldwide network was built largely through acquisitions in the developed world and greenfield sites in emerging markets. Significant investment in our facilities and technologies over the last decade created uniquely specialized operations with the capacity and capability to support customers’ product launches, development innovations and supply-chain initiatives all around the world. 

