Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Investor Day (March 2022)
21 slides from Canadian Tire's investor day presentation, Mar 10, 2022
Slide 1: Aayaz Pira
Aayaz Pira President, Canadian Tire Financial Services and President & CEO, Canadian Tire Bank March 10, 2022
Slide 2: Forward-looking information
Forward-looking information Canadian Tire Corporation’s 2022 Investor Day presentation contains forward-looking that the Company’s expectations and plans will not be achieved. Examples of material information that reflects Management’s current expectations relating to matters such as future assumpti
Slide 3: Forward-looking information (2)
Forward-looking information (2) The following table sets out additional risks and assumptions applicable to the forward-looking Material risks: information described below: • Risks associated with the Consolidated Comparable Sales Growth aspiration described above • Lower or lesser contribution from
Slide 4: Forward-looking information (3)
Forward-looking information (3) For more information on the material risk factors and uncertainties that could cause the Capital Expenditure Intentions: Expect to spend $3.4B over the next 4 years (2022-25) Company’s actual results to differ materially from predictions, forecasts, projections, expec
Slide 5: Bank
Bank’
Slide 6: Overview of Canadian Tire Financial Services
Overview of Canadian Tire Service portfolio of Financial Services more than CTC customers* Credit card receivables 2020, by issuer Big 5 banks + 1 JD Power 2021 credit card CTC Bank Receivables $5.8B customer satisfaction review Peer A CTC Bank Receivables of customer purchases Peer B financed in 20
Slide 7: Our no-fee credit cards
Our no-fee credit cards Triangle Triangle Elite Mastercard Mastercard Spend Average spend at CTC Average spend at CTC group of companies group of companies CTR as % of total CTR as % of total CTC spend CTC spend Earn Earned rate at CTC banners Earned rate at CTC banners Grocery Grocery Cents per Lit
Slide 8: Unique benefits of our payment network
Unique benefits of our payment network 1 2 3 4 Cost savings from Real time loyalty Facilitating instant Flexible payment processing our own capabilities at credit issuance options, e.g., buy credit cards point of sale now, pay later 8
Slide 9: Our core competencies
Our core competencies Credit card receivables growth Focus on customer and account acquisition 3% CAGR Risk management and collections capabilities $6.5B $6.4B $6.2B $5.7B $5.8B Ample funding to support growth 2017 2018 2019 2020 2021 Will enable the growth in receivables going forward Note: Based o
Slide 10: 2X NPS: Our most loyal and engaged shoppers
Our most loyal and engaged shoppers 2X Shop more frequently Base loyalty members Hold higher Have higher tenures in our loyalty program NPS scores 10
Slide 11: Our member value continuum
Our member value continuum Digital and highly engaged holders are a priority Spend Where we are focused $3,000 Digitally engaged + additional Digital and highly engaged product customers are the priority cohorts $2,500 Digitally for Canadian Tire Bank engaged credit card holder $1,400 Basic credit c
Slide 12: CTFS' transformation journey
CTFS’ transformation journey Creating deeper Going digital Product testing retail customer & innovation connections SCREENSHOT FROM LATER 12
Slide 13: Creating deeper enterprise customer connections
Creating deeper enterprise customer connections New customer acquisition shift to digital • Using first party data to understand customer attributes and behavior • Enhance ability for customers to apply for credit via ecommerce checkout experience • Target younger customers who spend 2X more via dig
Slide 14: Creating deeper enterprise customer connections
Creating deeper enterprise customer connections Triangle upsell • Leverage owned channels to upsell CTC customers at a lower cost than other channels Results we have seen: • New customer average spend across CTC is higher in the first 90 days • Number of trips to stores has doubled 14
Slide 15: Creating deeper enterprise customer connections
Creating deeper enterprise customer connections Existing customer engagement • New onboarding program will provide incentives • Stimulate additional spend through credit card usage • Leverage buy now, pay later capability • Enhance experience through first class customer engagement 15
Slide 16: Going digital
Going digital YoY growth for the Triangle mobile banking app Shift to Customers acquired through digital channels digital have basket sizes that are acquisition Our best retail customers are our credit card customers that are digitally engaged, with retail spend 85% higher than average credit card c
Slide 17: Going digital: New banking core
Going digital New banking core 17
Slide 18: Going digital: Mobile first
Going Step 1 Step 2 Step 3 digital Mobile first 18
Slide 19: Product innovation
Product innovation Buy Now Pay Later BNPL for external purchases Global money transfer 19
Slide 20: Product innovation: Joint customer opportunities
Product innovation Joint customer opportunities 20
Slide 21: CTFS' Path to Better
CTFS’ Path to Better Better integration with retail and loyalty Building a leading digital Better customer engagement through digital and new core banking platform investment bank based on a trusted Better CTC customers, centered around Triangle Canadian brand credit card and new digital only produc