Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — FY2010 Earnings Presentation
30 slides from Canadian Tire's earnings presentation, Apr 6, 2011
Slide 1: 2010 Restated Financial Results under IFRS
Canadian Tire Corporation, Limited International Financial Reporting Standards 2010 Restated Financial Results Marco Marrone, CFO and EVP Finance 1
Slide 2: Forward looking information
Forward looking g information In this document, the terms “we”, “us”, “our”, “Company” and “CTC” refer to Canadian Tire Corporation, Limited and its business units and subsidiaries. This document contains forward- looking information that reflects management’s current expectations related to matters
Slide 3: Disclaimer
Di l i Disclaimer This presentation has the objective of introducing to the financial community the major identified f changes that the transition from f C Canadian G GAAP to International Financial Reporting Standards (IFRS) will have on the Company’s accounts in 2011 (and prior year comparatives)
Slide 4: Agenda
A Agenda d Consolidated Opening Statement of Financial Position – Assets – Liabilities – Shareholders’ Sh h ld ’ E Equity it Consolidated Statement of Income Consolidated Statement of Cash Flows Q&A 4
Slide 5: Key Highlights
K Highlights Key Hi hli h Key findings remain consistent with those presented in the December 2010 IFRS S education session and earlier disclosures in quarterly MD&A & reports New financial statement formats include: – Statement of Financial Position format consistent with Canadian GAAP but i l
Slide 6: Opening Consolidated Statement of Financial Position – Assets
Opening O i CConsolidated lid t d St Statement t t off Financial Fi i l Position P iti – Assets A t Key Impacts Reference Item A Consolidation of Glacier Credit Card Trust: - $1.7 billion increase in loans receivable - $16 million increase in cash - $40 million allowance for p previously y securitiz
Slide 7: Opening Consolidated Statement of Financial Position – Assets (Unaudited)
Opening O i C Consolidated lid t d St Statement t t off Fi Financial i lPPosition iti – Assets (Unaudited) Restated Consolidated Statement of Financial Position under IFRS As at January 3, 2010 Consolidation of IFRS IFRS (C$ in millions) CGAAP additional entities Ref Reclassifications Ref Adjustment
Slide 8: Opening Consolidated Statement of Financial Position – Liabilities
Opening O i CConsolidated lid t d St Statement t t off Financial Fi i l Position P iti – Liabilities Li biliti Key Impacts Reference Item F Increases in current and long-term portion off long-term debt - $1.6 billion and commercial paper notes - $163 million due to consolidation of Glacier Credit Ca
Slide 9: Opening Statement of Financial Position – Liabilities & Shareholders' Equity
Opening O i C Consolidated lid d SStatement off Fi Financiali lP Position ii – Liabilities & Shareholders’ Equity (Unaudited) Restated Consolidated Statement of Financial Position under IFRS As at January 3, 2010 Co nso lidatio n o f IFRS IFRS (C$ in millions) CGAAP additio nal entities Ref Reclassi
Slide 10: Shareholders' Equity Reconciliation (Unaudited)
Opening O i CConsolidated lid d SStatement off Fi Financial i lPPosition ii – Shareholders’ Equity Reconciliation (Unaudited) Reconciliation of Shareholders' Equity from CGAAP to IFRS (C$ in millions) January 3, 2010 Total Shareholders' Equity as reported under CGAAP $ 3,687.9 Transitional adjustmen
Slide 11: Q1 2010 Consolidated Statement of Income
Q1 2010 C Consolidated lid t d St Statement t t off IIncome Key Impacts Reference Item J Increase in revenue of $27 million due to revenue on loans receivable for Franchise Trust and Glacier Credit Card Trust - both of these are substantially offset by similar increases in finance costs K Increase i
Slide 12: Q1 2010 Consolidated Statement of Income (Unaudited)
Q1 2010 C Consolidated lid d S Statement off IIncome (Unaudited) Restated Consolidated Statement of Income under IFRS 13-weeks ended April 3 3, 2010 CGAAP function Consolidation of CGAAP, IFRS Adjustments/ (C$ in millions) of expense format additional entities Ref. Reclassifications Ref. IFRS Revenu
Slide 13: Full Year 2010 Consolidated Statement of Income (Unaudited)
Full Year 2010 Consolidated Statement of Income (Unaudited) ( ) Restated Consolidated Statement of Income under IFRS CGAAP, function IFRS 52-w eeks ended January 1, 2011 of expense Consolidation of Adjustments/ (C$ in millions) format additional entities Reclassifications IFRS Revenue $ 8,980.8 $ 10
Slide 14: 2010 Consolidated Cash Flow Statement
2010 C Consolidated lid d CCash h Fl Flow S Statement Key Impacts Most significant adjustments relate to inclusion of Glacier Credit Card Trust and Franchise Trust in Company’s C results and elimination off securitization transactions reported under Canadian GAAP resulting in: – Change in opening
Slide 15: 2010 Summary of Consolidated Cash Flows (Unaudited)
2010 S Summary off C Consolidated lid d C Cash h Fl Flows (Unaudited) Excerpt from Restated Consolidated Statement of Cash Flows under IFRS 52 weeks ended January 1, 2011 IFRS CGAAP (C$ in millions) Presentation Presentation C h generated Cash t d ffrom operating ti activities ti iti bbefore f iinte
Slide 16: Summary of Net Financial Impacts (Unaudited)
S Summary off Net N Financial Fi i l IImpacts (Unaudited) Financial Statement Increase/ (Decrease) Opening Consolidated Statement of Financial Position C$ millions change Assets $2,534.7 28.6% Liabilities $2,579.5 49.8% Shareholders’ Equity Shareholders $(44 8) $(44.8) (1 2%) (1.2%) Consolidated
Slide 17: IFRS Summary
IFRS Summary y IFRS is an accounting change, not a strategic change The application of IFRS does not change: – How we manage our company and our company strategy – Our capital management policy – Our funding strategy – Our dividend policy – Our hedging strategy Accounting standards and interpr
Slide 18: Appendices
APPENDICES 18
Slide 19: Appendix 1: Summary of IFRS Impacts
APPENDIX 1 SUMMARY OF IFRS IMPACTS 19
Slide 20: Key fundamentals – what won't change?
Appendix A di 1 Key fundamentals – what won’t change? The assertions underlying y g the financial statements themselves will not be changing g g– existence, authorization, valuation etc. Double entry bookkeeping will be maintained – debits balance credits in every recorded transaction B l Bala
Slide 21: Summary of key impacts of IFRS adoption
Appendix 1 Summary of key impacts of IFRS adoption Tangible Assets Property, Plant & Consolidations Securitizations Equipment (PP&E) Leases Borrowing Costs IAS 27 & SIC 121 IAS 391 IAS 161 IAS 171 IAS 231 Change: Change: Change: Change: Change: Entities that were not Securitizations of loans Assets
Slide 22: Summary of other impacts of IFRS adoption
Appendix pp 1 Summary of other impacts of IFRS adoption Customer Loyalty Share-Based Impairment of Provisions Employee Benefits Programs Payments Assets IAS 371 IAS 191 IFRIC 131 IFRS 21 IAS 361 Change: Change: Change: Change: Change: Can include legal or Recognize deficit on- Sale of eligible All s
Slide 23: Appendix 2: Q2 to Q4 2010 Quarterly IFRS Restated Statements of Income
APPENDIX 2 Q2 TO Q4 2010 QUARTERLY IFRS RESTATED CONSOLIDATED STATEMENTS OF INCOME 23
Slide 24: Q2 2010 Income (Unaudited)
Appendix pp 2 Q2 2010 Consolidated Statement of Income (Unaudited) Restated Consolidated Statement of Income under IFRS CGAAP, function IFRS 13 w eeks ended July 3 13-w 3, 2010 of expense Consolidation of Adjustments/ (C$ in millions) format additional entities Reclassifications IFRS Revenue $ 2,414
Slide 25: Q3 2010 Income (Unaudited)
Appendix 2 Q3 2010 Consolidated Statement of Income (Unaudited) Restated Consolidated Statement of Income under IFRS CGAAP, function IFRS 13-w eeks ended October 2, 2010 of expense Consolidation of Adjustments/ (C$ in millions) format additional entities Reclassifications IFRS Revenue $ 2,201.0 $ 26
Slide 26: Q4 2010 Income (Unaudited)
Appendix 2 Q4 2010 Consolidated Statement of Income (Unaudited) Restated Consolidated Statement of Income under IFRS CGAAP, function IFRS 13-w eeks ended January 1, 2011 of expense Consolidation of Adjustments/ (C$ in millions) format additional entities Reclassifications IFRS Revenue $ 2,535.6 $ 26
Slide 27: 2010 Income Quarterly and Full Year (Unaudited)
Appendix 2 2010 Consolidated Statement of Income Quarterly and Full Year (Unaudited) Restated Consolidated Statement of Income under IFRS IFRS Restated (C$ in millions) Q1 Q2 Q3 Q4 YTD CGAAP Revenue $ 1,889.0 $ 2,469.7 $ 2,266.1 $ 2,588.3 $ 9,213.1 $ 8,980.8 Cost of producing revenue (1,302.0) (1,73
Slide 28: Appendix 3: Closing Consolidated Statement of Financial Position
APPENDIX 3 CLOSING CONSOLIDATED STATEMENT OF FINANCIAL POSITION 28
Slide 29: 2010 Closing Financial Position – Assets (Unaudited)
Appendix 3 2010 Closing Consolidated Statement of Financial Position – Assets (Unaudited) R t t dC Restated Consolidated lid t d Statement St t t off Financial Fi i l Position P iti under d IFRS Co nso lidatio n As at January 1, 2011 o f additio nal IFRS IFRS (C$ in millions) CGAAP entities Reclassi
Slide 30: 2010 Closing Financial Position – Liabilities and Shareholders' Equity
Appendix 3 2010 Closing Consolidated Statement of Financial Position – Liabilities and Shareholders’ Equity (Unaudited) Restated Consol idated Statement of Financial Position under IFRS Co nso lidatio n As at January 1, 2011 o f additio nal IFRS IFRS (C$ in millions) CGAAP entities Reclassificatio n