Transcontinental Inc. Class A · TSX:TCL.A
Transcontinental Inc. Class A — Investor Presentation (January 2024)
35 slides from Transcontinental Inc. Class A's investor presentation, January 2024
Slide 1: Transcontinental Inc. Investor Relations Presentation
Transcontinental Inc. Investor Relations Presentation January 2024
Slide 2: Notes to readers
Notes to readers In this document, unless otherwise indicated, all financial data are prepared in accordance with International Financial Reporting Standards (IFRS) and the term ‘‘dollars’’ as well as the symbol ‘‘$’’ designate Canadian dollars. In this document, we also use non-IFRS financial measu
Slide 3: Company Overview
Company Overview Our Strategy Corporate Social Responsibility 3 |
Slide 4: Safety
SAFETY WE ARE COMMITTED TO PROVIDE A SAFE WORKSPACE FOR OUR EMPLOYEES Total Incident Rate (TIR) 2.8 1.8 1.5 1.3 1.1 2019 2020 2021 2022 2023 Performing root cause analysis of each incident in order to eliminate all injury and provide a safe workspace for our employees Significant improvement tow
Slide 5: Resilient Investment Case: Long Term Vision & Income Generation
RESILIENT INVESTMENT CASE: LONG TERM VISION & INCOME GENERATION Diversified operations in flexible packaging, printing and education Leadership position in most of our verticals driven by deep customer relationships Leading commitment to sustainability and a circular economy Resilience during econom
Slide 6: TC Transcontinental at a Glance
TC TRANSCONTINENTAL AT A GLANCE $2.9B 2023 Revenues Family-controlled business founded in 1976 Solid financial position and investment grade credit rating Track record of pursuing our activities ~8,000 Employees responsibly recognized by stakeholders (Sustainalytics, MSCI, Corporate Knights) 4
Slide 7: Leader in Our Markets
LEADER IN OUR MARKETS Revenue composition by sector1 57% A leader in flexible packaging in North America $2.9B Revenues (FY2023) Canada’s largest printer, and one of the 39% largest in North America The leading Canadian French-language 4% educational publishing group 7 | 1. As a percentage of revenu
Slide 8: 2017-2023 Performance Highlights
2017-2023 PERFORMANCE HIGHLIGHTS (in millions of $) Revenues EBITDA Packaging 537 3,039 512 Printing 2,956 2,941 2,624 458 451 449 Other 2,574 2,643 405 400 2,007 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Adjusted EBITDA1 Consolidated Cash Flow from Operating Activities 4
Slide 9: Transcontinental Packaging
@ [TRANSCONTINENTAL PACKAGING
Slide 10: Our TC Packaging Network
OUR TC PACKAGING NETWORK 3 Rest of Canada the 8% World 19% Revenues by Geographic Region* 17 United States 73% FY23 Revenue: $1.7B 1 1 Adj EBITDA: $230M 5 plants in Latin America 27 plants 1 3,800 1 employees 1 2 10 | *based on plant locations
Slide 11: Diverse Portfolio of Products and Customers
DIVERSE PORTFOLIO OF PRODUCTS AND CUSTOMERS Broad Array of Flexible Packaging Products Diverse End-Markets Shrink Bags and Forming Films Consumer Barrier Shrink Bags Forming films Dairy Films and Lamination Agriculture Shrink Films Form, Fill and Seal Plastic Bags and Pouches Beverage Flat Bottom Fr
Slide 12: Transcontinental Printing
@ TRANSCONTINENTAL PRINTING 12 |
Slide 13: A State-of-the-Art National Printing Network
A STATE-OF-THE-ART NATIONAL PRINTING NETWORK The largest printer in Canada. TC Transcontinental Printing offers innovative print solutions for flyers, in-store marketing products (ISM), newspapers, magazines and 4-colour books. $1.2B QUÉBEC: 5 plants 2023 Revenues • Anjou • Beauceville • Bouchervill
Slide 14: Printing: Core Services and Products
PRINTING: CORE SERVICES AND PRODUCTS 1. Comprehensive Service and Product Offerings for Retailer’s Marketing Strategy and Customer Experience Cycle Flyers Flyers Promotional Promotional PopPop Premedia Distribution Distribution Customized Customized displays displays Catalogues Catalogues Permanent
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Slide 16: Providing a Range of Multiplatform Products & Services
PROVIDING A RANGE OF MULTIPLATFORM PRODUCTS & SERVICES BOOKS AND EDUCATIONAL GROUP Publishing of educational, supplemental and trade books, as well as innovative digital educational products; distribution of specialized books. Publication of strategic information for the construction sector in Québe
Slide 17: Our Strategy
Company Overview Our Strategy Corporate Social Responsibility 17 |
Slide 18: Our Long-Term Plan
OUR LONG-TERM PLAN Priorities Sustain profitable organic growth People & Diversification Optimize our return on assets Culture Transformation Cultivate a positive and Further solidify our Continue to diversify Deleverage our balance sheet inclusive work leading position in our offering and env
Slide 19: Strong Cash Flow Supporting Growth
STRONG CASH FLOW SUPPORTING GROWTH M&A $2.2 Billion Our strategy is to use our strong since 2014 and consistent cash flow generated from our traditional Robust Cash flow printing segment to grow our from Operation leadership positions in our $340M Capex growth segments: flexible 10-year average pack
Slide 20: Acquisitions to Transition to Growing Markets
ACQUISITIONS TO TRANSITION TO GROWING MARKETS Packaging Acquisitions 2014 2016 2018 2020 2022 2013 2015 2017 2019 2021 Media and ISM Acquisitions Invested >$2B to build a leading North American flexible packaging platform Invested ~ $200M to strengthen Media/Education and ISM growth market 20 |
Slide 21: Successfully Transformed Portfolio Towards Activities with Favourable Outlook
SUCCESSFULLY TRANSFORMED PORTFOLIO TOWARDS ACTIVITIES WITH FAVOURABLE LONG-TERM OUTLOOK 2017 2020 2023 CHART TITLE Growth Traditional segments segments 74% 30% 67% $2.0B $2.6B $2.9B 65% 5% 33% Segments 26% divested Using strong cash flows from traditional segments to transform company by investing
Slide 22: Dynamically Adapting Print Portfolio to Growth Markets
DYNAMICALLY ADAPTING PRINT PORTFOLIO TO GROWTH MARKETS Revenues by product/market in the Printing Segment 2017 2020 2023 ISM/ Book/ ISM/ Premedia Book/ News/Mag/ ISM/ 13% Premedia News/Mag/ News/ Comm Book/ 24% Comm Mag/ 26% Premedia 26% Comm 33% 36% $1.5 B $1.1 B $1.2 B Flyers/ Distr. 51% Flyers/ D
Slide 23: Demonstrated Ability to Deleverage Rapidly Using Solid Free Cash Flow
DEMONSTRATED ABILITY TO DELEVERAGE RAPIDLY USING SOLID FREE CASH FLOW Net debt1 (in millions of $) Reduction in net $618 debt from FY2018 million to FY2023 1,421 1,169 944 ~ $200 million debt 779 803 increase in FY2022 734 mainly due to acquisitions & working capital 2018 2019 2020 2021 2022 2023 S&
Slide 24: Returning Capital to Shareholders
RETURNING CAPITAL TO SHAREHOLDERS Dividend yield¹ Payout Ratio² 6.7% ~38% Vs. a Dividend yield of ~3.2% for Dividend Supported by Strong Cash the TSX composite index Flow Generation and Profitability Growth Track Record 9.4% > 30 Years Average Annual Dividend Distributing a Quarterly Dividend Growth
Slide 25: Corporate Social Responsibility
Company Overview Our Strategy Corporate Social Responsibility 25 |
Slide 26: Flexible Packaging Plays a Key Role in Sustainability
FLEXIBLE PACKAGING PLAYS A KEY ROLE IN SUSTAINABILITY Lower environmental Food Waste Protects the Product Fewer Trucks for impact Reduction & Reduces container Transport Lower energy Extended shelf life breakage Optimizes consumptions, Barrier properties Less Waste transportation with light Greenhou
Slide 27: Flexible Packaging Has a Lower Environmental Impact
FLEXIBLE PACKAGING HAS A LOWER ENVIRONMENTAL IMPACT Coffee Package Comparison Water 16x less than Consumption Greenhouse 8x less than Gas Emissions 5x less than Fossil Fuel Consumption 27 | Source: Flexible Packaging Association
Slide 28: Flexible Packaging Reduces Food Waste
FLEXIBLE PACKAGING REDUCES FOOD WASTE When shelf life increase, food waste decreases 28 |
Slide 29: Fewer Trucks for Transport
FEWER TRUCKS FOR TRANSPORT Guess how many trucks you would need to transport the same volume of rigid containers? 29 |
Slide 30: VieVerte: Our Growing Sustainable Packaging Line
VIEVERTE: OUR GROWING SUSTAINABLE PACKAGING LINE 100% Recycled Ready Barrier Recycled Ready Compostable PCR Shrink Films Low barrier outer bag/pouch First to commercialize barrier Leader in packaging films for Use of post-industrial recycled Lamination-two layer structure barrier compostabl
Slide 31: Pursuing Our Business Activities Responsibly
PURSUING OUR BUSINESS ACTIVITIES RESPONSIBLY OUR EFFORTS ARE BEING RECOGNIZED BY STAKEHOLDERS. Rated “A” by MSCI ESG Ratings for the last 6 years Corporate Knights: Ranked 16th on the list of the 100 most sustainable corporations in the world in 2021 Included in the Top 50 of the Jantzi® Social Inde
Slide 32: Signatory of the United Nations Global Compact
SIGNATORY OF THE UNITED NATIONS GLOBAL COMPACT Since 2020 we have aligned our CSR objectives with those of the United Nations Sustainable Development Goals (SDGs). Of the 17 goals established that are part of the 2030 Agenda for Sustainable Development, we are contributing to 9 of them. 32 |
Slide 33: 2025 Corporate Social Responsibility Plan
2025 CORPORATE SOCIAL RESPONSIBILITY PLAN Waste Management Health & Security Paper Procurement Recover 100% of non-hazardous Reduce our Incident Frequency Rate each Achieve a 100% paper sourcing from third- operational waste year by 3% as we pursue our goal of « zero party certified / recycled
Slide 34: 2022 Corporate Social Responsibility Progress Report
2022 CORPORATE SOCIAL RESPONSIBILITY PROGRESS REPORT 34 |
Slide 35: Contact information
Contact information Yan Lapointe Director, Investor Relations & Treasury Transcontinental Inc. 1 Place Ville Marie, Suite 3240 Montréal (QC) H3B 0G1 Telephone: 514 954-3574 yan.lapointe@tc.tc 35 |
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