MANAGEMENT’S DISCUSSION AND ANALYSIS Years ended December 31, 2011 and 2010 (Tabular amounts in millions of Canadian dollars, except per share data) Sales for the fourth quarter of 2011 were $317.3 million, an increase of 12.8% compared to $281.3 million recorded in the 2010 fourth quarter. Excluding currency translation, sales for the fourth quarter in 2011 increased by 13.0% compared to the prior year period. This increase was primarily due to 12.1% of organic growth and 0.9% impact from acquisitions. All business segments showed increased sales, with the Label, Container and Tube Segments up $28.5 million, $4.0 million and $3.5 million, respectively. Operating income (a non-IFRS measure; see “Key Performance Indicators and Non-IFRS Measures” in Section 5A below) in the fourth quarter of 2011 was $35.4 million, an increase of 16.4% from $30.4 million in the fourth quarter of 2010. This increase in operating income was attributable to the increases in the Label, Container and Tube Segments, of $2.4 million, $1.5 million and $1.1 million, respectively. EBITDA (a non-IFRS measure; see “Key Performance Indicators and Non-IFRS Measures” in Section 5A below) for the fourth quarter of 2011 was $54.7 million, an improvement of 15.2% compared to the $47.5 million for 2010 period. Corporate expenses were $6.9 million in the fourth quarter of 2011, a decline of $0.6 million from $7.5 million recorded in the prior year period. The decrease is attributable to a general reduction across the broad range of corporate costs. Net finance expense of $5.2 million in the 2011 fourth quarter declined $0.8 million compared to $6.0 million due primarily to lower debt levels. 14 CCL Industries Inc. 2011 Annual Report 2010 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Sales Label $ 248.9 $ 242.1 $ 238.4 $ 225.7 $ 955.1 Container 40.3 39.7 44.0 38.4 162.4 Tube 17.9 20.4 19.3 17.2 74.8 Total sales $ 307.1 $ 302.2 $ 301.7 $ 281.3 $ 1,192.3 Segment operating income (loss) Label $ 42.7 $ 38.5 $ 32.5 $ 28.6 $ 142.3 Container (1.7) (2.2) (0.8) 0.2 (4.5) Tube 2.0 2.9 2.3 1.6 8.8 Operating income 43.0 39.2 34.0 30.4 146.6 Corporate expenses 4.7 5.2 4.8 7.5 22.2 Earnings (loss) in equity accounted investments 0.3 0.4 (0.1) (0.1) 0.5 38.6 34.4 29.1 22.8 124.9 Finance expense, net 6.5 6.5 6.3 6.0 25.3 32.1 27.9 22.8 16.8 99.6 Restructuring and other items – net loss — — — (0.2) (0.2) Earnings before income taxes 32.1 27.9 22.8 16.6 99.4 Income taxes 7.5 10.5 7.0 3.3 28.3 Net earnings $ 24.6 $ 17.4 $ 15.8 $ 13.3 $ 71.1 Per Class B share Net earnings $ 0.75 $ 0.53 $ 0.48 $ 0.41 $ 2.17 Diluted earnings $ 0.74 $ 0.52 $ 0.47 $ 0.40 $ 2.13 Restructuring and other items and tax adjustments included in net earnings – net loss $ — $ — $ — $ (0.01) $ (0.01) Fourth Quarter Results