Transcontinental Inc. Class A · TSX:TCL.A
Transcontinental Inc. Class A — Investor Presentation (March 2012)
24 slides from Transcontinental Inc. Class A's investor presentation, Mar 1, 2012
Slide 1: Transition to International Financial Reporting Standards (IFRS)
Transition to International Financial Reporting Standards (IFRS) March 1, 2012
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains certain forward-looking statements concerning the future performance of the Corporation. Such statements, based on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown. We caution that all
Slide 3: Disclaimer
Disclaimer The information relating to IFRS is provided solely for the purpose of allowing the financial community to obtain a better understanding of Transcontinental’s IFRS changeover plan from Canadian Generally Accepted Accounting Principals (CGAAP) and the resulting expected significant impac
Slide 4: Table of Contents
Table of Contents Key Highlights Main Impacts on the Opening Statement of Financial Position Main Impacts on the Statement of Income Main Impacts on the Statement of Cash Flow Appendix 4
Slide 5: Key Highlights
Key Highlights IFRS has no impact on Transcontinental's underlying operations, growth strategy or financial resources and management. IFRS has no substantial impacts on Transcontinental's financial statements. Main impacts of IFRS on the Opening Statement of Financial Position: 1. Shareholders
Slide 6: Opening Statement of Financial Position
Main Impacts of IFRS on the Opening Statement of Financial Position As at Nov. 1st, 2010 1 • Shareholders’ Equity ($99.4M) 2 • Property, plant and equipment ($99.3M) 3 • Other liabilities $30.2M 6
Slide 7: Opening Statement of Financial Position: Shareholders' Equity
Main Impacts of IFRS on the Opening Statement of Financial Position • Shareholders Equity decreased $99.4M 1. Revaluation of certain buildings at fair value, less income taxes (-$67.8M) 1 2. Recognition of actuarial losses of pension plans, less income taxes (-$30.5M) 3. Other minor adjustments (-$1
Slide 8: Opening Statement of Financial Position: Property, Plant and Equipment
Main Impacts of IFRS on the Opening Statement of Financial Position • Property, plant and equipment decreased $99.3M 1. Revaluation of certain buildings at fair value (-$102.4M) 2. Reversal of capitalized interests on long 2 term projects (-$13.2M) 3. Reversal of tax credits received for the purchas
Slide 9: Opening Statement of Financial Position: Other Liabilities
Main Impacts of IFRS on the Opening Statement of Financial Position • Other liabilities increased $30.2M 1. Recognition of actuarial losses of pension plans (+$35.0M) 2. Reclassification of provisions on a 3 separate line (-$10.6M) 3. Other minor adjustments (+$5.8M) 9
Slide 10: Statements of Income
Main Impacts of IFRS on the Statements of Income For the year ended October 31st, 2011 1 • Amortization $1.1M 2 • Integration, restructuring and integration costs $3.3M 3 • Income taxes $2.0M 10
Slide 11: Statements of Income: Amortization
Main Impacts of IFRS on the Statements of Income • Amortization increased $1.1M 1. Decrease due to the revaluation of certain buildings at fair value and reversal of capitalized interests on long- term projects (-$4.6M) 1 2. Increase due to a change in amortization method for customer relations (str
Slide 12: Statements of Income: Integration, Restructuring and Acquisition Costs
Main Impacts of IFRS on the Statements of Income • Integration, restructuring and acquisition costs increased $3.3M 1. Acquisition costs of Quad/Graphics Canada that were capitalized under CAD GAAP but not under IFRS (+$3.3M) 2 12
Slide 13: Statements of Income: Income Taxes
Main Impacts of IFRS on the Statements of Income • Income taxes increased $2.0M 1. Increase in income taxes due to the reduction in amortization of certain buildings revaluated at fair value (+$1.9M) 3 2. Other minor adjustments (+$0.1M) 13
Slide 14: Statements of Cash Flow
Main Impacts of IFRS on the Statements of Cash Flow For the year ended October 31st, 2011 1 • Operating activities $30.9M 2 • Investing activities $3.6M 3 • Financing activities ($34.5M) 14
Slide 15: Cash Flow: Operating Activities
Main Impacts of IFRS on the Statements of Cash Flow • Cash flow related to operating activities increased $30.9M 1. Reclassification of interest paid from financing activities (+$34.5M) 1 2. Reclassification of contract acquisition costs from investing activities (-$3.6M) 15
Slide 16: Cash Flow: Investing Activities
Main Impacts of IFRS on the Statements of Cash Flow • Cash flow related to investing activities increased $3.6M 1. Reclassification of contract acquisition costs to operating activities (+$3.6M) 2 16
Slide 17: Cash Flow: Financing Activities
Main Impacts of IFRS on the Statements of Cash Flow • Cash flows related to financing activities decreased $34.5M 1. Reclassification of interest paid to operating activities (-$34.5M) 3 17
Slide 18: Impact of IFRS Transition: Statement of Financial Position
Impact of IFRS Transition Consolidated Statement of Financial Position as at November 1, 2010 ($ in million, Unaudited) Canadian IFRS GAAP adjustments IFRS Current assets Cash and cash equivalents $ 31.9 $ - $ 31.9 Accounts receivable 440.6 - 440.6 Income taxes receivable 19.5 - 19.5 Inventories 77.
Slide 19: Impact of IFRS Transition: Statements of Income
Impact of IFRS Transition Consolidated Statements of Income for the year ended October 31, 2011 ($ in million, except per share amounts, Unaudited) Canadian IFRS GAAP adjustments IFRS Revenues $ 2,043.6 $ - $ 2,043.6 Operating expenses 1,670.6 (0.4) 1,670.2 Integration, restructuring and acquisition
Slide 20: Impact of IFRS Transition: Statements of Cash Flows
Impact of IFRS Transition Consolidated Statements of Cash Flows for the year ended October 31, 2011 ($ in million, except per share amounts, Unaudited) Canadian IFRS GAAP adjustments IFRS Operating activities Net income $ 84.6 $ 43.8 $ 128.4 Less : Net income (loss) from discontinued operations (21.
Slide 21: Appendix
APPENDIX
Slide 22: IFRS Supplemental Financial Information
IFRS Supplemental Financial Information Consolidated Statements of Income by Quarter ($ in thousands, except per share amounts, Unaudited) Q1 2011 Q2 2011 Q3 2011 Q4 2011 CGAAP IFRS CGAAP IFRS CGAAP IFRS CGAAP IFRS Revenues $ 514.8 $ 514.8 $ 498.7 $ 498.7 $ 492.6 $ 492.6 $ 537.5 $ 537.5 Operating ex
Slide 23: For Questions, Contact:
For Questions, Contact: Jennifer McCaughey Senior Director, Investor Relations and Financial Communications [email protected] 514.954.4000 23
Slide 24: Slide 24
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