Transcontinental Inc. Class A · TSX:TCL.A
Transcontinental Inc. Class A — TC Transcontinental — Investor Presentation (January 2022)
47 slides from Transcontinental Inc. Class A's investor presentation, January 2022
Slide 1: Corporate Presentation
Corporate Presentation January 2022 www.tc.tc
Slide 2: Notes to readers; Forward-looking information
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: Overview
Overview Our Organization at a Glance Our Business Sectors Our Management Philosophy Contact and Additional Information 3
Slide 4: TC Transcontinental at a Glance
TC Transcontinental at a Glance For over 45 years, TC Transcontinental's mission has been to create products and services that allow businesses to attract, reach and retain their target customers. A leader in flexible packaging in North America Canada’s largest printer The leading Canadian French-la
Slide 5: Managing a family-controlled business for the long-term
Managing a family-controlled business for the long-term Rémi Marcoux Isabelle Marcoux Founder and Director Chair of the Board Implemented a well-structured succession plan Driven by a long-term vision to ensure continued profitable growth. to hand over the reins to the second generation and inspire
Slide 6: Making impressions count since 1976
Making impressions count since 1976 Creation and development: 1976-1985 1976 1978 1979 1985 Beginning of door-to-door Revenues: $2.9M distribution activities Acquisition of Les Affaires / beginning of publishing Debut on the Toronto Stock Exchange A flyer printing company activities Acquisitions and
Slide 7: Making impressions count since 1976 (cont.)
Making impressions count since 1976 (cont.) Diversification and consolidation: 2006-2015 2012 2012 2014 2006 Acquisition of Quad/Graphics Canada Inc.: Beginning of the Entry into a growth area: packaging, with the strategic Acquisition of reflection to diversify becoming the largest printer in asset
Slide 8: Generating revenues from three business sectors
Generating revenues from three business sectors Revenue composition by sector1 3% A leader in flexible packaging in North America 43% $2.6B Canada’s largest printer, and one in revenues of the largest in North America (FY2021) 54% The leading Canadian French- language educational publishing group Pa
Slide 9: Delivering a solid performance
Delivering a solid performance Revenues ($M) – IFRS EBITDA ($M) – IFRS 3,039 537 2,624 2,643 512 2,574 458 2,007 442 405 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Adjusted EBITDA1 ($M) Adjusted Revenues1 ($M) 3,027 499 2,643 476 2,521 2,574 459 455 2,007 397 2017 2018 2019 2020 2021 2017 201
Slide 10: Delivering a solid performance (cont.)
Delivering a solid performance (cont.) Cash Flows from Dividends Paid per Participating Operating Activities ($M) Share 432 427 87¢ 90¢ 90¢ 79¢ 83¢ 324 313 315 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Acquisitions of property plant and Net Indebtedness Ratio* equipment (PP&E) and intangible
Slide 11: Pursuing an optimization and diversification strategy
Pursuing an optimization and diversification strategy PACKAGING PRINTING MEDIA Build a solid flexible packaging Optimize our printing platform Develop the sector’s activities to platform and seize growth opportunities gain market share Generate long-term organic sales Align our capacity and costs to
Slide 12: Overview
Overview Our Organization at a Glance Our Business Sectors Our Management Philosophy Contact and Additional Information 12
Slide 13: TC Transcontinental Packaging
TC Transcontinental Packaging www.tc.tc 13
Slide 14: Building our flexible packaging platform since 2014
Building our flexible packaging platform since 2014 2014 2015 2016 2016 Acquisition of Acquisition of Acquisition of Acquisition of Capri Packaging Ultra Flex Packaging Corp. Robbie Manufacturing Flexstar Packaging Inc. Clinton, Missouri Brooklyn, New York Lenexa, Kansas Richmond, British Columbia 2
Slide 15: Scaling our packaging platform
Scaling our packaging platform 28 CANADA production plants UNITED KINGDOM UNITED STATES CHINA MEXICO GUATEMALA 3,900 employees NEW ZEALAND ECUADOR TC Transcontinental Packaging is a leader in flexible packaging in North America specializing in recycling, extrusion, lamination, printing and convertin
Slide 16: Scaling our packaging platform (cont.)
Scaling our packaging platform (cont.) UNITED STATES: 17 plants CANADA: 4 plants • Transcontinental Albany (Georgia) • Transcontinental Flexipak (Montréal, QC) • Transcontinental Battle Creek (Michigan) • Transcontinental Recycling Montréal (QC) • Transcontinental Brooklyn (New York) • Transcontinen
Slide 17: Broad range of innovative flexible packaging solutions
Providing a broad range of innovative and high-performance flexible packaging solutions • We blend art, science and technology to create the perfect flexible packaging that accentuates our customers’ brand, protects their products and inspires consumers. • We offer a variety of flexible plastic prod
Slide 18: Serving a variety of industries
Serving a variety of industries Markets Products Agriculture Banana tree Box liners Mulch films Greenhouse films Labels & twine bags & skirts Beverage IntegrititeTM 33% PCR IntegrititeTM shrink films Multipack shrink films collation shrink films January 2022 18
Slide 19: Serving a variety of industries (cont.)
Serving a variety of industries (cont.) Markets Products ENVIO® Shredded cheese films Peel reseal lidding HALO® Forming & non-forming films Cheese & Dairy For natural sliced and chunk cheese Whole bean bags and Brick pack with Compostable coffee pod Fractional Coffee & Tea recyclable pouches compost
Slide 20: Serving a variety of industries (cont.)
Serving a variety of industries (cont.) Markets Products Consumer Packaged Goods Paper products Personal care & feminine care Household cleaning Multipacks Nextrus® Tufftite® Poultry Clearshield® ENVIO® Meat & Poultry Chub film for Boneless vacuum shrink bags Bone-in shrink bags Forming & non- fresh
Slide 21: Serving a variety of industries (cont.)
Serving a variety of industries (cont.) Markets Products Pet Food Stand-up pouches Flat bottom bags PET laminated bags Hot N Handy® Steam N Eat® fresh Fresh N Tasty® Fresh N Tasty® Supermarkets deli pouch vegetable cook-in-bag fresh produce pouch baked goods pouch Understanding that the packaging ex
Slide 22: Integrating the recycling of plastics in our production chain
Integrating the recycling of plastics in our production chain • Our recycling activities allow us to offer our customers sustainable packaging products made from recycled plastic, and accelerate their development through consistent, stable and high-quality supply. • Our equipment is used for convert
Slide 23: Leveraging our integrated platform with best-in-class capabilities
Leveraging our integrated platform with best-in-class capabilities Extrusion Design Lamination Prepress Recycling Printing Converting Metallization January 2022 23
Slide 24: Developing, manufacturing and distributing coated films and foils
Developing, manufacturing and distributing high-quality coated films and foils • We are a global manufacturer of precision coated polymers, films and specialty substrates that touch everyday life. • Our state-of-the-art ISO 9001- certified production facilities in Europe and in the United States all
Slide 25: Serving multiple markets with high-performance products and brands
Serving multiple markets with high-performance products and brands Medical Automotive Medical Electronics Conductive films Optical films Digital Imaging January 2022 25
Slide 26: TC Transcontinental Printing
TC Transcontinental Printing www.tc.tc 26
Slide 27: Offering a state-of-the-art national printing network
Offering a state-of-the-art national printing network 13 printing plants 3,700 employees The largest printer in Canada. TC Transcontinental Printing offers innovative print solutions for flyers, in-store marketing products, newspapers, magazines and 4-colour books. January 2022 27
Slide 28: Offering a state-of-the-art national printing network (cont.)
Offering a state-of-the-art national printing network (cont.) QUÉBEC: 5 plants ALBERTA: 1 plant • Transcontinental Interglobe (Beauceville) • Transcontinental Calgary • Transcontinental Interweb (Boucherville) • Transcontinental Ross-Ellis (Montréal) BRITISH COLUMBIA: 1 plant • Transcontinental Tran
Slide 29: Broad range of printing solutions for many industries
Providing a broad range of printing solutions for many industries Markets Products Marketing Direct Mail Marketing Products Catalogues In-Store Marketing Retail Premedia Flyers Door Hangers Door-to-door Ditribution January 2022 29
Slide 30: Broad range of printing solutions for many industries (cont.)
Providing a broad range of printing solutions for many industries (cont.) Markets Products Publishing Books Comic Books Magazines Newspapers Specialty Products CD DVD Vinyl Folding Cartons January 2022 30
Slide 31: TC Media
TC Media www.tc.tc 31
Slide 32: Providing a range of multiplatform products & services
Providing a range of multiplatform products & services Educational, supplemental and trade book publishing, as well as specialty book distribution Groupe Constructo January 2022 32
Slide 33: Overview
Overview Our Organization at a Glance Our Business Sectors Our Management Philosophy Contact and Additional Information 33
Slide 34: Living our values every day
Living our values every day CUSTOMERS A long-standing partner with premium service offerings Respect Teamwork COMMUNITIES EMPLOYEES A responsible corporate An employer of citizen actively participating choice committed to in the communities where talent development we operate Performance Innovation
Slide 35: Experienced executive management team
Driving strategic growth together, with an experienced executive management team Peter Brues Magali Depras Christine Desaulniers Benoit Guilbault President and Donald LeCavalier Chief Strategy and Chief Legal Officer and Chief Information Officer Chief Executive Officer Chief Financial Officer CSR O
Slide 36: Pursuing our business activities responsibly
Pursuing our business activities responsibly Committed to disclosure in the Among the Best 50 Corporate Ranked 16th among the 100 most Signatory of the Ellen MacArthur Carbon Disclosure Project Citizens in Canada for the 17th time sustainable corporations on the Global 2022 Foundation’s New Plastics
Slide 37: Joining the United Nations Global Compact
Joining the United Nations Global Compact Of the international sustainable development goals defined by the Global Compact, seven are fully aligned with the targets of our three-year Acting Together plan and our policies. We refer to them in our 2019 Progress Report. For TC Transcontinental, this en
Slide 38: Making strides towards a circular economy for plastic
Making strides towards a circular economy for plastic We share the Ellen MacArthur Foundation’s common vision of a circular economy for plastic, where plastic never becomes waste. TC Transcontinental was the first Canadian-based manufacturer to join the Ellen MacArthur Foundation’s New Plastics Econ
Slide 39: Making strides towards a circular economy for plastic (cont.)
Making strides towards a circular economy for plastic (cont.) January 2022 39
Slide 40: Executing our 2019-2021 Corporate Social Responsibility Plan
Executing our 2019-2021 Corporate Social Responsibility Plan Our three-year plan, entitled Acting Together, presents 11 targets with respect to four key axes: our people, our operations, our products and our communities. In the summer of 2020, we released our 2019 Progress Report. January 2022 40
Slide 41: Our PEOPLE
Our PEOPLE TARGET 1 Maintain a safe and healthy work environment • Reduce the total incident rate (incidents per 200,000 worked hours) by 15% for our Printing and Packaging sectors TARGET 2 Move towards a more balanced gender representation in leadership • Ensure at least 30% of female representatio
Slide 42: Our OPERATIONS
TARGET 4 Reduce our greenhouse gas emissions • Reduce our greenhouse gas emissions by 5%1 Our OPERATIONS TARGET 5 Optimize waste management • Aim for zero non-hazardous waste to landfill in our operating business units TARGET 6 Ensure food safety and quality • Obtain a GFSI-recognized food safety ce
Slide 43: Our PRODUCTS
Our PRODUCTS TARGET 7 Promote the use of sustainable materials • 100% of our paper purchases to come from third-party certified or recycled sources • By 2025, achieve a 10% use of post-consumer recycled content on average by weight across all plastic packaging in our product offering TARGET 8 Design
Slide 44: Our COMMUNITIES
Our COMMUNITIES TARGET 10 Invest in our communities • Over 3 years, donate $5M in financial contributions, goods and services to organizations, projects and programs that support the communities in which we operate TARGET 11 Foster employee engagement • All business units to participate annually in
Slide 45: Overview
Overview Our Organization at a Glance Our Business Sectors Our Management Philosophy Contact and Additional Information 45
Slide 46: Contact and additional information
Contact and additional information Transcontinental Inc. History 1 Place Ville Marie, Suite 3240 2019-2021 Corporate Montréal (QC) H3B 0G1 Social Responsibility Plan Telephone: 514-954-4000 communications@tc.tc Acting Together – 2020 Progress Report www.tc.tc
Slide 47: www.tc.tc
t @ TRANSCONTINENTAL www.te.te
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