Transcontinental Inc. Class A · TSX:TCL.A
Transcontinental Inc. Class A — Investor Presentation (April 2015)
29 slides from Transcontinental Inc. Class A's investor presentation, Apr 13, 2015
Slide 1: Corporate Presentation
CORPORATE PRESENTATION April 13, 2015
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements which are based on the expectations of management and inherently subject to a certain number of risks and uncertainties, known and unknown. By their very nature, forward- looking statements are derived from both general
Slide 3: Table of Contents
Table of Contents SECTION 1 TC Transcontinental Profile 4 SECTION 2 TC Transcontinental Printing & TC Transcontinental Packaging 16 SECTION 3 TC Media 23 3 • TABLE OF CONTENTS – APRIL 13, 2015
Slide 4: TC Transcontinental Profile
SECTION TC Transcontinental 1 Profile 4
Slide 5: Message from the President & CEO
Message from the President & CEO “By continually optimizing our platforms, investing in new niches and diversifying our core activities, TC Transcontinental will continue to grow, supported by a skilled and talented workforce.” François Olivier 5 • TC TRANSCONTINENTAL PROFILE – APRIL 13, 2015
Slide 6: TC Transcontinental Profile
TC Transcontinental Profile Canada’s largest printer, with operations in print and digital media, publishing and flexible packaging, TC Transcontinental’s MISSION mission is to create products and services that allow businesses Help companies attract, to attract, reach and retain their target custom
Slide 7: Moving From Local Entrepreneur To Coast-to-Coast Leader
Moving From Local Entrepreneur To Coast-to-Coast Leader 30 employees 8,500 employees Acquisitions Public Newspaper Digital Flyers Distribution Publishing Acquisitions and Corporation Outsourcing Activities Consolidation 1976 1978 1979 1984 1990 2003 2005 2009 - 2014 $2.9M $4.2M $18M $83M $1.6B $1.9B
Slide 8: TC Transcontinental's Values
TC Transcontinental’s Values Innovation Teamwork 1. We challenge the status quo and continuously 1. We work collaboratively with our partners across improve our way of doing things to deliver organizational boundaries to offer relevant and innovative solutions to our customers. integrated solutions
Slide 9: Executive Management Committee
Executive Management Committee François Olivier President and Chief Executive Officer Brian Reid Nelson Gentiletti Christine Desaulniers President, Chief Financial and Chief Legal Officer and TC Transcontinental Printing & Development Officer Corporate Secretary TC Transcontinental Packaging Sylvain
Slide 10: Corporate Social Responsibility
Corporate Social Responsibility “For our 2013-2015 plan, we identified three pillars to help guide our strategic roadmap: the environment, employees and community. This plan is aligned with our corporate strategy and is aimed at supporting our operational goals.” François Olivier President and CEO •
Slide 11: Organizational Structure
Organizational Structure P R I N T I N G AN D P AC K AG I N G MEDIA 11 • TC TRANSCONTINENTAL PROFILE – APRIL 13, 2015
Slide 12: Betting on Diverse Segments
Betting on Diverse Segments Retail and Newspapers, $835M Printing and Magazines and Books, $341M Packaging : (1) Marketing Products, $234M $1,452M Packaging, $42M (2) Local Solutions, $383M (3) (4) Consumer Solutions, $109M 68% 2014 Interactive Marketing, $108 M Revenues Business Solutions and Educa
Slide 13: Solid Performance
Solid Performance REVENUES ($M) CASH FLOW FROM DIVIDENDS PAID PER OPERATIONS* ($M) PARTICIPATING SHARE (¢) 373 63¢ 348 58¢ 2,112 2,097 311 321 327 57¢ 2,028 1,989 2,069 49¢ 35¢ 2010 2011* 2012 2013** 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013* 2014 * Divested Mexican operations ($64M) & B&W B
Slide 14: Recent Strategic Events
Recent Strategic Events > Multi-year agreements with Postmedia to print the Calgary Herald (September 9, 2013), Vancouver Sun (November 28, 2013) and The Gazette (May 5, 2014) newspapers > May 3, 2014 : Completed the transaction to acquire the assets of Capri Packaging (a division of Schreiber Foods
Slide 15: Leveraging Strong Customer Relationships
Leveraging Strong Customer Relationships FOOD DRUGSTORE HOME IMPROVEMENT BIG BOX NEWSPAPER PUBLISHERS BOOK AND MAGAZINE PUBLISHERS FOOD MANUFACTURERS 15 • TC TRANSCONTINENTAL PROFILE – APRIL 13, 2015
Slide 16: TC Transcontinental Printing & TC Transcontinental Packaging
SECTION TC Transcontinental 2 Printing & TC Transcontinental Packaging 16
Slide 17: National Printing Network
National Printing Network Largest Printer in Canada 24 state-of-the-art printing plants (at April13, 2015) Quebec British Columbia Beauceville Delta Boucherville Gatineau Newfoundland Montreal (4) Corner Brook Quebec (2) St. John’s St-Hyacinthe Prince Edward Island Ontario Borden-Carlton Markham & A
Slide 18: Diversified Printing Equipment
Diversified Printing Equipment State-of-the-art equipment: Investment of over $700 million between 2007 and 2010 > Sheetfed and Web presses Offset (heatset, coldset and hybrid) Digital > Full inline and offline finishing services 18 • T C T R A N S C O N T I N E N T A L P R I N T I N G & T C T R A N
Slide 19: A Variety of Printed Products
A Variety of Printed Products Long-term contracts with large customers > Flyers and inserts > Newspapers > Magazines > Direct mail and marketing products > Books (4-color, educational,…) > In-store signage and large format (in-store marketing material) > Carton packaging > Etc. 19 • T C T R A N S C
Slide 20: A Division Positioned for Growth
A Division Positioned for Growth Leveraging manufacturing competencies Transcontinental Capri 1 912 East Nusbaum Place Clinton, MO 64735 • Built in 1994 • 56,000 sq.ft. Transcontinental Capri 2 1801 North Gerhart Drive Clinton, MO 64735 • Built in 2003 • 126,000 sq.ft. 20 • T C T R A N S C O N T I N
Slide 21: Variety of Flexible Packaging Solutions
Variety of Flexible Packaging Solutions 10-year contract with Schreiber Foods, representing 75% of Transcontinental Capri’s total revenues > Pouches > Wrapping > Stand-up pouches > Lidding > Overwrap bags > Re-closeable, sealable bags & pouches 21 • T C T R A N S C O N T I N E N T A L P R I N T I N
Slide 22: Growth Vectors
Growth Vectors PRINTING PACKAGING Organic growth through adjacent markets and 1 Gaining new newspaper printing contracts 1 expansion by adding more products offered by Schreiber Foods Ongoing optimization of 2 the printing platform to deliver on customers’ 2 Optimizing manufacturing processes evolvi
Slide 23: TC Media
SECTION 3 TC Media tc @ TRANSCONTINENTAL
Slide 24: Segmentation of Activities Across Three Business Groups
Segmentation of Activities Across Three Business Groups Strenghten the media offering and build digital Business Interactive Information Local Solutions Marketing Solutions Solutions, Books and Education • Multiplatform dailies and • Content creation • Multiplatform business media weeklies (Quebec,
Slide 25: Local Market: Leader in Quebec and the Atlantic Provinces
Local Market: Leader in Quebec and the Atlantic Provinces TC Media is the go-to source for local and regional information and the leading door-to-door distributor of advertising material Sales Quality Local Expertise Network Content & Community Connection Door-to-Door Largest Product & Promo Content
Slide 26: Interactive Marketing Products: Important Promotional Content Creator
Interactive Marketing Products: Important Promotional Content Creator COPE: Create once, publish everywhere Content Content Content Creation Organization Distribution 26 • TC MEDIA – APRIL 13, 2015
Slide 27: Business and Education: Leading Provider of French Content
Business and Education: Leading Provider of French Content Developing new sources of revenues Brand High Quality Niche or Equity Content Exclusive Content 27 • TC MEDIA – APRIL 13, 2015
Slide 28: Growth Vectors
Growth Vectors MEDIA Develop non- Introduce new or 1 Invest in targeted digital solutions 2 advertising based products 3 complementary products Reduce our cost Integrate the Sun 4 structure to better reflect the new 5 Media newspapers and market reality websites 28 • TC MEDIA – APRIL 13, 2015
Slide 29: TC Transcontinental
t @ TRANSCONTINENTAL www.tc.tc
Transcontinental — Investor Presentation (April 2015) on 6ix