Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Q2 2011 Earnings Presentation
13 slides from Canadian Tire's earnings presentation, Aug 11, 2011
Slide 1: 2011 Second Quarter Financial Results
2011 Second Quarter Financial Results August 11, 2011
Slide 2: Forward-looking Information
Forward-looking 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 s
Slide 3: Stephen Wetmore, President and Chief Executive Officer
Stephen Wetmore President and Chief Executive Officer
Slide 4: Q2 Performance Highlights
Q2 Performance Highlights Solid retail sales – Automotive, Kitchen, Backyard Lower earnings due to: • Spending in Retail - marketing, growth initiatives, Forzani • Lower seasonal sales Good progress on foundational initiatives and pleased with execution; including: g • Automotive Infrastructur
Slide 5: Marco Marrone, Chief Financial Officer & EVP, Finance
Marco Marrone Chief Financial Officer & EVP, Finance
Slide 6: Financial Reporting Notes
Financial Reporting Notes Changes that impact the presentation of the financial results in 2011: • CTR vendor support funds • Mark’s inventory transfers to Franchisees • Auto Club into Retail segment • Financial Services capital realignment Additional 2010 IFRS restated segment information for Q
Slide 7: Consolidated Highlights
Consolidated Highlights Consolidated financial highlights ($ in millions except per share amounts) Q2 2011 Q2 2010 Change Revenue $ 2,570.9 $ 2,469.7 4.1% Gross margin 728.5 731.6 (0.4)% p g expenses Operating p 548.8 519.4 5.6% Net finance costs 33.2 37.6 (11.3)% Net income after tax $ 105.8 $ 122.
Slide 8: Retail Highlights
Retail Highlights Retail segment financial highlights ($ in millions) Q2 2011 Q2 2010 Change Retail Sales $ 3,005.3 $ 2,859.6 5.1% CTR retail sales growth 1.9% 1.3% Mark's retail sales growth 0.5% 6.2% Gas (Petroleum) retail sales growth 22.8% 6.8% Revenue $ 2,318.3 $ 2,208.8 5.0% Gross margin 580.1
Slide 9: Financial Services Highlights
Financial Services Highlights Financial Services segment financial highlights ($ in millions) Q2 2011 Q2 2010 Change Revenue $ 234.8 $ 241.8 (2.9)% Gross margin 130.6 144.1 (9.3)% Operating expenses 67.3 69.5 (3.2)% Net finance costs 14.7 16.1 (8.4)% Income before income taxes $ 48.4 $ 58.1 (16.6)%
Slide 10: Glenn Butt, EVP, Customer Experience & Automotive
Glenn Butt EVP, Customer Experience & Automotive
Slide 11: Automotive Update
Automotive Update Third consecutive quarter of positive sales growth • Light and heavy auto parts • PartSource and tires • Petroleum Key initiatives in second half of year: • Automotive Infrastructure – on track to have 75% of the network equipped by end of 2011 • Return to E-commerce in Septemb
Slide 12: Summary
Summary Retail sales growth driven by Automotive, Kitchen and Backyard Living Earnings down due to investments in strategic initiatives, Forzani and lower sales in seasonal categories Forzani acquisition on track to close in 3 quarter rd 12
Slide 13: Questions and Answers
ee A Questions and Answers 13