Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Q1 2021 Earnings Presentation
20 slides from Canadian Tire's earnings presentation, May 13, 2021
Slide 1: Canadian Tire Corporation First Quarter 2021 Financial Results
Canadian Tire Corporation First Quarter 2021 Financial Results
Slide 2: Forward Looking Information
Forward Looking Information This document contains forward-looking statements that reflect Management’s current expectations relating to matters such as future financial performance and operating results of the Company. Forward-looking statements provide information about Management’s current expect
Slide 3: Executive Participants
Executive Participants Greg Hicks Gregory Craig TJ Flood President & Executive Vice President & President Chief Executive Officer Chief Financial Officer Canadian Tire Retail Canadian Tire Corporation Canadian Tire Corporation FIRST QUARTER 2021 FINANCIAL RESULTS | EXECUTIVE PARTICIPANTS 3
Slide 4: Quarterly Earnings Presentation
1 Quarterly Earnings Presentation 2 COVID-Impacted Store Network 3 ROIC Methodology Change
Slide 5: Q1 2021 Highlights
Q1 2021 Highlights Outstanding omni-channel performance drove CTC’s impressive comparable sales growth of 19.3% in the quarter • Comparable sales at CTR grew 19.2%, driven by double digit growth in over 60% of product categories • Mark’s delivered exceptional comparable sales growth of 22% with cont
Slide 6: Q1 2021 Highlights
Q1 2021 Highlights Triangle Rewards loyalty program continued to attract new customers and drive engagement in the quarter • Triangle members accounted for 56% of retail sales, and average member spend grew 15% • 30% of Triangle members shopped at more than one retail banner • Over 400,000 new membe
Slide 7: Consolidated Financial Results
Consolidated Financial Results 1 Retail sales is a key operating performance measure. Refer to section 7.3.1 of First Quarter 2021 MD&A for additional information. 2 Not meaningful. FIRST QUARTER 2021 FINANCIAL RESULTS | CONSOLIDATED RESULTS 6
Slide 8: Normalizing Items
Normalizing Items • The results of operations in the first quarter of 2021 and 2020 include costs related to the Company’s Operational Efficiency program which were considered as normalizing items. • During the quarter, the Company incurred costs amounting to $3.3 million related to the previously a
Slide 9: Selected Normalized Metrics: Consolidated
Selected Normalized Metrics: Consolidated 1 Refer to Normalizing Items table in section 3.1.1 of First Quarter 2021 MD&A or slide 8 for more details. 2 Change is between normalized results. 3 Not meaningful. FIRST QUARTER 2021 FINANCIAL RESULTS | CONSOLIDATED RESULTS 6
Slide 10: Retail Segment Financial Results
Retail Segment Financial Results 1 Retail sales is a key operating performance measure. Refer to section 7.3.1 of First Quarter 2021 MD&A for additional information. 2 Not meaningful. FIRST QUARTER 2021 FINANCIAL RESULTS | RETAIL RESULTS 7
Slide 11: Selected Normalized Metrics: Retail
Selected Normalized Metrics: Retail 1 Refer to section 3.1.1 of First Quarter 2021 MD&A or slide 8 for a description of normalizing items. 2 Change is between normalized results. 3 Not meaningful. FIRST QUARTER 2021 FINANCIAL RESULTS | RETAIL RESULTS 7
Slide 12: Financial Services Segment Financial Results and Key Operating Performance Measures
Financial Services Segment Financial Results and Key Operating Performance Measures 1 Not meaningful. 1 Credit card sales growth excludes balance transfers. Represents year-over-year percentage change. 2 Figures are calculated on a rolling 12-month basis. 3 Credit card portfolio only. 4 Credit card
Slide 13: COVID-Impacted Store Network
1 Quarterly Earnings Presentation 2 COVID-Impacted Store Network 3 ROIC Methodology Change
Slide 14: Q1 2021: COVID-Impacted Store Network
Q1 2021: COVID-Impacted Store Network • Entering Q1 2021, the majority of Canadian Tire’s store network was operating under various restrictions. These restrictions gradually eased over the course of the quarter. Daily-weighted % of store network that was fully operational are as follows: CTR Mark's
Slide 15: Q1 2020: COVID-Impacted Store Network
Q1 2020: COVID-Impacted Store Network During the first quarter of 2020, the impact of the global spread of the Coronavirus (COVID-19) had a significant impact on the Canadian and global economy, foreign exchange and equity markets and Canadian Tire. Measures put in place by public authorities result
Slide 16: ROIC Methodology Change
1 Quarterly Earnings Presentation 2 COVID-Impacted Store Network 3 ROIC Methodology Change
Slide 17: ROIC: Methodology Change Background
ROIC: Methodology Change Background CTC has revised its methodology to calculate Retail Return on Invested Capital (ROIC). Our new methodology incorporates the impact of IFRS 16 accounting for leases in the Income Statement and Balance Sheet, which was implemented as a new standard in 2019. Under ou
Slide 18: ROIC: Material Changes to ROIC Methodology
ROIC: Material Changes to ROIC Methodology Impact Components of ROIC Material Changes in CTC Methodology Direction Normalized Retail IBT None - Less: - Intercompany Adjustments None Add: Return Interest Costs None - Depreciation None Less: Using normalized retail effective tax rate versus Taxes usin
Slide 19: ROIC: Q1 2021 and Restated 2020 Numbers
ROIC: Q1 2021 and Restated 2020 Numbers (C$ in millions) Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Normalized Retail income before income taxes $998.3 $607.7 $400.7 $541.8 $795.0 Less: 1 Intercompany Adjustments (191.6) (195.1) (194.1) (193.3) (192.8) Add: Interest Expense2 273.2 301.6 301.7 290.3 283
Slide 20: Thank You
Thank You For more information: http://investors.canadiantire.ca