Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Investor Presentation (December 2010)
21 slides from Canadian Tire's investor presentation, Dec 6, 2010
Slide 1: International Financial Reporting Standards Education Session
Canadian Tire Corporation Limited International Financial Reporting Standards Education Session Marco Marrone, CFO and EVP Finance 1
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 su
Slide 3: Forward looking information cont'd
Forward looking information cont‟d For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the “Risk Factors” section of our Annual Information Form for fiscal 2009 and our 2009 Management's D
Slide 4: Disclaimer
Disclaimer This presentation has the objective to introduce to the financial community the major identified changes that the transition from Canadian GAAP to International Financial Reporting Standards (IFRS) has on the Company‟s accounts in 2011 and thereafter. Impacts contained herein are prelimin
Slide 5: IFRS background and rationale for change
IFRS background International Financial Reporting Standards (IFRS) are internationally accepted accounting standards designed by the International Accounting Standards Board (IASB) - the IASB is leading the global movement to have firms adopt a single set of standards All publicly accountable co
Slide 6: Key fundamentals – what won't change? what will change?
Key fundamentals – what won‟t change? The assertions underlying the financial statements themselves will not be changing – existence, authorization, valuation etc. Double entry bookkeeping will be maintained – debits balance credits in every recorded transaction Balance Sheet (B/S) equation of
Slide 7: Summary of IFRS Impact
a A SUMMARY OF IFRS IMPACT
Slide 8: Consolidations
Consolidations Definition: Consolidation involves combining two or more separate entities into a single economic entity IFRS considerations: Consolidation decision is based on control concepts, not just share ownership majority Controlling entity must have the power to govern the financial and
Slide 9: Securitizations
Securitizations Definition: In this context, securitization involves the transfer of ownership interest in underlying receivables to a 3rd party conduit which converts the receivables into new financial instruments and then sells the repackaged instruments to investors. IFRS considerations: Secu
Slide 10: Tangible assets
Tangible assets Definition: Formerly referred to as fixed assets or property, plant and equipment, and in this context, also includes capitalized interest on borrowing costs, investment properties, leases and impairments. IFRS considerations: Accounting/Cost: Capitalized interest on all major pr
Slide 11: Tangible assets (cont'd)
Tangible assets (cont‟d) Presentation: New line item – Investment Properties Enhanced note disclosure must include fair value of investment property regardless of policy choice Significantly increased quantitative disclosure to include continuity schedules 11
Slide 12: Other accounting policies
Other accounting policies Additional accounting policies impacted by IFRS but are not expected to have a material impact on the Company‟s financial statements include: Impairment of assets Provisions, contingent liabilities and contingent assets Compensation and employee benefits Customer lo
Slide 13: New income statement format
New income statement format Consolidated Statement of Income Under IFRS ($ in millions) 2011 2010 Revenue - - Cost of producing revenue - - Gross margin - - Other income and expenses Operating expenses Distribution costs - - Sales and marketing expenses - - Administrative expenses - - Total operatin
Slide 14: Summary of major impacts of IFRS adoption
Summary of major 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 Assets will be disaggr
Slide 15: Summary of minimal impacts of IFRS adoption
Summary of minimal impacts of IFRS adoption Employee Customer Loyalty Share-Based Impairment of Provisions 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 stock-based a
Slide 16: Wrap-up
Wrap-up IFRS is an accounting change, not a strategic change The application of IFRS will not change: – How we manage our company and our company strategy – Our capital management policy – Our funding strategy – Our dividend policy – Our hedging strategy The Company plans to release IFRS-resta
Slide 17: Segment Disclosure
a A SEGMENT DISCLOSURE 17
Slide 18: Rationale for change
Rationale for change Management‟s view supports „One Company‟ objective of bringing the different brands together to support the core retail business Continue to move towards model of centralized shared services (legal, human resources, finance and supply chain) View the Company as having a re
Slide 19: Segment reporting
Segment reporting No changes to reporting metrics currently provided for Financial Services Retail disclosure to include: 1. Segment disclosure in the Notes to the Consolidated Financial Statements (see slide 20) 2. Metrics for distinct channels1 to include: • Retail sales • Same store sales gro
Slide 20: Segment note example
Segment note example Canadian Tire Corporation, Limited Statement of earnings - Segmented information For the period ended April 2, 2011 ($ in millions) 2011 2010 Gross operating revenue Retail - - Financial Services - - Total gross operating revenue - - Gross margin Retail - - Financial Services -
Slide 21: Q&A
Q&A 21
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