Transcontinental Inc. Class A · TSX:TCL.A
Transcontinental Inc. Class A — Investor Presentation (January 2023)
35 slides from Transcontinental Inc. Class A's investor presentation, January 2023
Slide 1: Investor Relations Presentation
Investor Relations Presentation January 2023
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: Safety
SAFETY WE ARE COMMITTED TO PROVIDE A SAFE WORKSPACE FOR OUR COWORKERS Our shared values Total Incident Rate (TIR) 2.80 2.8 Respect 1.80 1.8 Teamwork 1.50 1.5 1.27 1.3 Performance 2019 2010 2021 2022 Innovation Performing root cause analysis of each incident in order to eliminate all injury and provi
Slide 4: Resilient investment case: long term vision & income generation
RESILIENT INVESTMENT CASE: LONG TERM VISION & INCOME GENERATION Diversified operations in flexible packaging, printing and media Leadership position in most of our verticals driven by deep customer relationships Leading commitment to sustainability and a circular economy Resilience during recession
Slide 5: Company Overview, Our Strategy, Corporate Social Responsibility
Company Overview Our Strategy Corporate Social Responsibility 5 |
Slide 6: TC Transcontinental at a glance
TC TRANSCONTINENTAL AT A GLANCE $3.0B 2022 Revenues Family-controlled business founded in 1976 Solid financial position and investment grade credit rating Track record of pursuing our activities ~8,300 Employees responsibly recognized by stakeholders (Sustainalytics, MSCI, Corporate Knights) 4
Slide 7: Leader in our markets
LEADER IN OUR MARKETS Revenue composition by sector1 56% A leader in flexible packaging in North America $3.0B Revenues (FY2022) Canada’s largest printer, and one of the 40% largest in North America The leading Canadian French-language 4% educational publishing group 7 | 1. As a percentage of revenu
Slide 8: 2017-2022 Performance highlights
2017-2022 PERFORMANCE HIGHLIGHTS (in millions of $) Revenues EBITDA Packaging 537 3 039 512 Printing 2 956 2 624 458 451 449 Other 2 574 2 643 405 2 007 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Adjusted EBITDA1 Consolidated Cash Flow from Operating Activities² 539 476 499 459 465
Slide 9: TC Transcontinental Packaging
@ [TRANSCONTINENTAL PACKAGING
Slide 10: Our TC Packaging network
OUR TC PACKAGING NETWORK Rest of 4 Canada the 9% World 13% Revenues by Geographic Region* 17 United States 78% FY22 Revenue: $1.7B 1 1 Adj EBITDA: $205M 5 plants in Latin America 28 plants 1 4000 1 employees 1 2 10 | *based on plant locations
Slide 11: Diverse portfolio of products and customers
DIVERSE PORTFOLIO OF PRODUCTS AND CUSTOMERS Broad Array of Flexible Packaging Products Diverse End-Markets Shrink Bags and Thermoforming Films Consumer Vacuum Shrink Bags Vacuum Frozen Bags Films and Lamination Dairy Shrink Films Form, Fill and Seal Agriculture Plastic Bags and Pouches Beverage Flat
Slide 12: TC Transcontinental Printing
@ TRANSCONTINENTAL PRINTING 12 |
Slide 13: Offering a state-of-the-art national printing network
OFFERING A STATE-OF-THE-ART NATIONAL PRINTING NETWORK The largest printer in Canada. TC Transcontinental Printing offers innovative print solutions for flyers, in-store marketing products, newspapers, magazines and 4-colour books. FY22 Revenue: $1.2B Adj. EBITDA: $228M ~3,700 employees 1 British Col
Slide 14: Printing: core services and products
PRINTING: CORE SERVICES AND PRODUCTS 1. Comprehensive Service and Product Offerings for Retailer’s Marketing Strategy and Customer Experience Cycle Flyers Flyers Promotional Promotional PopPop Premedia Distribution Distribution Customized Customized displays displays Catalogues Catalogues Permanent
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15 | 15 |
Slide 16: Providing a range of multiplatform products & services
PROVIDING A RANGE OF MULTIPLATFORM PRODUCTS & SERVICES BOOKS AND EDUCATIONAL GROUP Publishing of educational, supplemental and trade books publishing, as well as innovative digital educational products; distribution of specialized books. Publication of strategic information for the construction sect
Slide 17: Company Overview, Our Strategy, Corporate Social Responsibility
Company Overview Our Strategy Corporate Social Responsibility 17 |
Slide 18: Our long-term plan
OUR LONG-TERM PLAN Long-Term Objective Further solidify our leading position in Packaging Industry across North America People & Culture Transformation Diversification Improve profits and cash Cultivate a positive and Actively engage in M&A Continue to diversify inclusive work to further solidify ou
Slide 19: Strong cash flow supporting growth
STRONG CASH FLOW SUPPORTING GROWTH M&A > $2 Billion since 2013 Our strategy is to use our strong and consistent cash flow generated from our traditional Robust Cash flow printing segment to grow our from Operation leadership positions in our Capex growth segments: flexible $334M packaging, in-store-
Slide 20: Acquisitions to transition to growing markets
ACQUISITIONS TO TRANSITION TO GROWING MARKETS Packaging Acquisitions 2014 2016 2018 2020 2022 2013 2015 2017 2019 2021 Media and ISM Acquisitions Invested >$2B to build a leading North American flexible packaging platform Invested ~ $200M to strengthen Media/Education and ISM growth market 20 |
Slide 21: Successfully transform portfolio towards activities with favourable long-term outlook
SUCCESSFULLY TRANSFORM PORTFOLIO TOWARDS ACTIVITIES WITH FAVOURABLE LONG-TERM OUTLOOK 2017 2022 Future CHART TITLE Growth Traditional segments 73% segments 30% $2.0B $3.0B $2.6B >$4B 65% 5% 27% Segments divested Growth Segments 30% 73% >80% Using strong cash flows from traditional segments to tran
Slide 22: Dynamically adapting print portfolio to growth markets
DYNAMICALLY ADAPTING PRINT PORTFOLIO TO GROWTH MARKETS Revenues by product/ market in the Printing Segment 2017 2022 Future ISM/ Book/ Premedia News/Mag/ ISM/ Traditional 13% Comm Book/ markets News/ 25% Premedia Mag/ 32% Growth Comm markets 36% $1.5B $1.2 B Future Flyers/ Distr. 51% Flyers/ Distr.
Slide 23: Demonstrated ability to deleverage rapidly using solid free cash flow
DEMONSTRATED ABILITY TO DELEVERAGE RAPIDLY USING SOLID FREE CASH FLOW Net debt1 (in millions of $) Reduction in net $477 debt from FY2018 million to FY2022 1,421 1,169 944 ~ $200 million debt 779 increase in 2022 734 mainly due to acquisitions & working capital 2018 2019 2020 2021 2022 S&P and DBRS
Slide 24: Returning capital to shareholders
RETURNING CAPITAL TO SHAREHOLDERS Yield¹ Payout Ratio² 5.9% ~51% Vs. a Dividend Yield of 3.2% for Dividend Supported by Strong Cash the TSX composite index Flow Generation and Profitability Growth Track Record 9.8% 30 Years Average Annual Dividend Distributing a Quarterly Dividend Growth Rate (1993-
Slide 25: Company Overview, Our Strategy, Corporate Social Responsibility
Company Overview Our Strategy Corporate Social Responsibility 25 |
Slide 26: Flexible packaging plays a key role in sustainability
FLEXIBLE PACKAGING PLAYS A KEY ROLE IN SUSTAINABILITY Lower environmental Food Waste Protects the Product Fewer Trucks for impact Reduction & Reduces container Transport Lower energy Extended shelf life breakage Optimizes consumptions, Barrier properties Less Waste transportation with light Greenhou
Slide 27: Lower environmental impact
LOWER ENVIRONMENTAL IMPACT Coffee Package Comparison Water 16x less than Consumption Greenhouse 8x less than Gas Emissions 5x less than Fossil Fuel Consumption 27 | Source: Flexible Packaging Association
Slide 28: Flexible packaging reduces food waste
FLEXIBLE PACKAGING REDUCES FOOD WASTE When shelf life increase, food waste decreases 28 |
Slide 29: Fewer trucks for transport
FEWER TRUCKS FOR TRANSPORT Guess how many trucks you would need to transport the same volume of rigid containers? 29 |
Slide 30: Integrating the recycling of plastic in our production chain
INTEGRATING THE RECYCLING OF PLASTIC IN OUR PRODUCTION CHAIN Our recycling activities allow us to offer our customers sustainable packaging products made from recycled plastic, accelerating their development through consistent, stable and high-quality supply. We convert plastic waste recovered f
Slide 31: VieVerte: our growing sustainable packaging line
VIEVERTE: OUR GROWING SUSTAINABLE PACKAGING LINE 100% Recycled Ready Barrier Recycled Ready Compostable PCR Shrink Films Low barrier outer bag/pouch First to commercialize barrier Leader in packaging films for Use of post-industrial recycled Lamination-two layer structure barrier compostabl
Slide 32: Pursuing our business activities responsibly
PURSUING OUR BUSINESS ACTIVITIES RESPONSIBLY OUR EFFORTS ARE BEING RECOGNIZED BY STAKEHOLDERS. Rated “A” by MSCI ESG Ratings for the last 6 years Corporate Knights: Ranked 16th on the list of the 100 most sustainable corporations in the world in 2021 Included in the Top 50 of the Jantzi® Social Inde
Slide 33: Signatory of the United Nations Global Compact
SIGNATORY OF THE UNITED NATIONS GLOBAL COMPACT Since 2020 we have aligned our CSR objectives with those of the United Nations Sustainable Development Goals (SDGs). Of the 17 goals established that are part of the 2030 Agenda for Sustainable Development, we are contributing to 9 of them. 33 |
Slide 34: 2025 Corporate Social Responsibility plan
2025 CORPORATE SOCIAL RESPONSIBILITY PLAN Waste Management Health & Security Paper Procurement Recover 100% of non-hazardous Reduce our Incident Frequency Rate each Achieve a 100% paper sourcing from third- operational waste year by 3% as we pursue our goal of « zero party certified / recycled
Slide 35: Contact information
Contact information Yan Lapointe Director, Investor Relations & Treasury Transcontinental Inc. 1 Place Ville Marie, Suite 3240 Montréal (QC) H3B 0G1 Telephone: 514 954-3574 [email protected] 35 |
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