Fourth Quarter and Fiscal Year 2021 results Earnings call presentation
December 9, 2021
François Olivier, President and Chief Executive Officer
Peter Brues, President and Chief Executive Officer *
Donald LeCavalier, Chief Financial Officer
Yan Lapointe, Director, Investor Relations
www.tc.tc
* Will assume the position on December 10, 2021, following the retirement of François Olivier
Note 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 measures for which a complete definition is presented below and for which a reconciliation to financial information in accordance with IFRS is presented at the end of this presentation and in Note 3 "Segmented Information" to the annual consolidated financial statements for the year ended October 31, 2021. These measures should be considered as a complement to financial performance measures in accordance with IFRS. They do not substitute and are not superior to them.
Terms used | Definitions |
EBIT | Operating earnings |
Adjusted operating earnings | Operating earnings before depreciation and amortization as well as restructuring and other costs |
before depreciation and | |
(gains) and impairment of assets | |
amortization (Adjusted EBITDA) | |
Adjusted EBITDA margin | Adjusted operating earnings before depreciation and amortization divided by revenues |
Adjusted net earnings | Net earnings attributable to shareholders of the Corporation before restructuring and other costs |
attributable to shareholders of | (gains), amortization of intangible assets arising from business combinations and impairment of |
the Corporation per share | assets, net of related income taxes as well as the adjustment on additional income taxes in other |
(Adjusted EPS) | jurisdictions resulting from a prior year and the tax impact of an internal reorganization. |
Net indebtedness | Total of long-term debt, of current portion of long-term debt, of lease liabilities and of current portion |
of lease liabilities, less cash | |
Net indebtedness ratio | Net indebtedness divided by the last 12 months' adjusted operating earnings before depreciation |
and amortization | |
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Forward-looking information
Our public communications often contain oral or written 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 and specific assumptions. The Corporation cautions against undue reliance on such statements since actual results or events may differ materially from the expectations expressed or implied in them. Forward-looking statements may include observations concerning the Corporation's objectives, strategy, anticipated financial results and business outlook. The Corporation's future performance may also be affected by a number of factors, many of which are beyond the Corporation's will or control. These factors include, but are not limited to, the economic situation in the world, structural changes in the industries in which the Corporation operates, the impact of digital product development and adoption on the demand for retailer-related services and other printed products, the Corporation's ability to generate organic growth in highly competitive industries, the Corporation's ability to complete acquisitions in the packaging industry and properly integrate them, the inability to maintain or improve operational efficiency and avoid disruptions that could affect its ability to meet deadlines, cybersecurity and data protection, the political and social environment as well as regulatory and legislative changes, in particular with regard to the environment and door-to-door distribution, changes in consumption habits related, in particular, to issues involving sustainable development and the use of certain products or services such as door-to-door distribution, change in consumption habits or loss of a major customer, customer consolidation, the safety and quality of its packaging products used in the food industry, the protection of its intellectual property rights, the exchange rate, availability of capital at a reasonable cost, bad debts from certain customers, import and export controls, raw materials, transportation and consumed energy costs, availability of raw materials, recruiting and retaining qualified personnel, taxation, interest rates and the impact of the COVID-19 pandemic on its operations, facilities and financial results, changes in consumption habits from consumers and changes in the operations and financial position of the Corporation's customers due to the COVID-19 pandemic and the effectiveness of plans and measures implemented in response thereto. The main risks, uncertainties and factors that could influence actual results are described in the Management's Discussion and Analysis for the year ended October 31, 2021, and in the latest Annual Information Form.
Unless otherwise indicated by the Corporation, forward-looking statements do not take into account the potential impact of non- recurring or other unusual items, nor of disposals, business combinations, mergers or acquisitions which may be announced or entered into after the date of December 9, 2021. The forward-looking statements in this press release are made pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The forward-looking statements in this release are based on current expectations and information available as at December 9, 2021. Such forward-looking information may also be found in other documents filed with Canadian securities regulators or in other communications. The Corporation's management disclaims any intention or obligation to update or revise these statements unless otherwise required by the securities authorities.
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FY 2021 Highlights
Packaging
Printing
Consolidated
Solid organic growth in Q4 2021 and FY2021 Significant progress in our sustainable product pipeline Excellent performance excluding higher resin prices, exchange rate, and lower Canada Emergency Wage Subsidy (CEWS)
Strong organic growth in H2 2021
Grew Adjusted EBITDA to 21.3% excluding the CEWS, reflecting our ability to operate with efficiency and to control our costs
Our three sectors continued to perform very well
CAPEX and M&A investments to support long-term growth
FY2021 strong performance reflecting the resilience and
sound strategy of Transcontinental
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Sustainable Packaging: ASTRA Center
Investments in R&D laboratories with state-of-the-art technology to drive growth and innovation and optimize the creation of sustainable solutions for customers
4 Laboratories
- Analytical and Testing Services Lab
- Applications and Packaging Development Lab
- Advanced Compost Lab
- Recycling Technology Lab
Benefits
- Deep expertise in compostable, recyclable, and recycled content packaging
- Increased speed to market from concept to commercialization
- Optimized solutions for performance and cost
- Turnkey packaging solutions
Sustainable Packaging is a key long-term growth driver
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Transcontinental Inc. published this content on 09 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 December 2021 15:31:04 UTC.