Transcontinental Inc. Class A · TSX:TCL.A
Transcontinental Inc. Class A — TC Transcontinental — Investor Presentation (September 2018)
14 slides from Transcontinental Inc. Class A's investor presentation, Sep 27, 2018
Slide 1: Investor Relations Presentation
Investor Relations Presentation September 27, 2018
Slide 2: TC Transcontinental at a glance
TC Transcontinental at a glance 2
Slide 3: TC Transcontinental at a glance
TC Transcontinental at a glance ⚫ Leader in flexible packaging in North America ⚫ Canada’s largest printer ⚫ Leader in its specialty media segments ⚫ Mission: create products and services that allow businesses to attract, reach and retain their target customers ⚫ Values: respect, teamwork, 9,000 44
Slide 4: Our transformation journey
Our transformation journey TRANSFORMATION 2010 2014 2016 2017 2018 Q3 Pro Forma Exit of local newspaper 4 Packaging acquisitions Transformational acquisition Strategic investments 1st Packaging acquisition publishing completed 1 packaging acquisition of Coveris Americas 65% 69% 74% 78% Revenues Reve
Slide 5: Latest financials
Latest financials a) te mn
Slide 6: Q3-2018 financial performance
Q3-2018 financial performance +58.7% +14.2% * Excludes the non-cash impact resulting from the end of the recognition of deferred revenues related to the contract to print the San Francisco Chronicle, which was part of our Fremont California operations sold to Hearst. ** Includes the non-cash impact
Slide 7: Our transformational acquisition: Coveris Americas
Our transformational acquisition: Coveris Americas 7
Slide 8: Our transformational acquisition: Coveris Americas
Our transformational acquisition: Coveris Americas Summary of client & plant visits Scaling opportunity of film manufacturing ⚫ Since the acquisition, we have visited all but one of the ⚫ Acquisition of a strong expertise in Coveris locations, representing over 3,000 employees. technical films produ
Slide 9: Expanded portfolio across attractive end markets
Expanded portfolio across attractive end markets Alignment with TC Highlights of Acquired Business Complementary • Strong capability in extrusion lamination Dairy Operations • Complements TC Transcontinental’s existing offering in the dairy vertical • Attractive assets in high-growth end market Comp
Slide 10: Integrated platform leading to potential economies of scale
Integrated platform leading to potential economies of scale Acquisition of 21 well-invested facilities, namely in the Americas, the United Kingdom and Australasia CHINA UNITED KINGDOM NEW ZEALAND MEXICO GUATEMALA ECUADOR Legend TC Transcontinental Packaging (7) Coveris Americas (21) 10
Slide 11: Printing Sector: Efficient operator
Printing Sector: Efficient operator 11
Slide 12: Continued optimization of our printing platform
Continued optimization of our printing platform REVENUE: ADJUSTED EBITDA: Printing non-cash EBITDA will decrease by $25M in F2019 compared to 2018 LTM. * 2017 and 2018 reflect favorable changes in Management fees of approximately $6M resulting the split of the Printing & Packaging group into two sec
Slide 13: Strong cash flow generating capacity
Strong cash flow generating capacity 13
Slide 14: Key financial metrics
Key financial metrics 700 1000 600 Cash flow from operations* and use of cash ($M) 900 800 500 CAPEX (incl. intangibles) Dividends Acquisitions Share repurchases Cash Flow from operations 700 289 297 502 600 344 400 247 379 396 411 500 373 300 311 321 327 400 300 200 Over $2B deployed to diversifyin
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