Transcontinental : T2-2023 Présentation appel conférence (anglais seulement)

Q2-FY2023 RESULTS

EARNINGS CALL PRESENTATION

Thomas Morin, President and Chief Executive Officer

Donald LeCavalier, Executive Vice President & Chief Financial Officer Yan Lapointe, Director, Investor Relations & Treasury

June 7, 2023

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 unaudited interim condensed consolidated financial statements for the second quarter ended April 30, 2023. 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
Adjusted operating earnings before	Operating earnings before depreciation and amortization as well as restructuring and other costs (revenues) and
depreciation and amortization
impairment of assets.
(Adjusted EBITDA)
Adjusted net earnings attributable to	Net earnings attributable to shareholders of the Corporation before restructuring and other costs (revenues),
amortization of intangible assets arising from business combinations and impairment of assets, net of related income
shareholders of the Corporation per
taxes as well as the adjustment on additional income taxes in other jurisdictions resulting from a prior year and the
share (Adjusted EPS)
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 impact of digital product development and adoption on the demand for retailer-related services and printed products, the global economic environment, including inflation and recession risks and disruptions in the supply chain, the Corporation's ability to generate organic growth in highly competitive industries, the Corporation's ability to complete acquisitions and properly integrate them, the inability to maintain or improve operational efficiency and avoid disruptions that could affect its ability to meet deadlines, raw materials, transportation and consumed energy costs, availability of raw materials, the impact of a pandemic, an epidemic or an outbreak of an infectious disease on the Corporation's operations, operating results and financial position, cybersecurity and data protection, recruiting and retaining qualified personnel, the political and social environment as well as regulatory and legislative changes, in particular with regard to the environment or door-to-door distribution and use of plastic, 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, loss of a major customer, customer consolidation, structural changes in the industries in which the Corporation operates, the safety and quality of its packaging products used in the food industry, the impact of economic cycles on product demand, data confidentiality, the protection of its intellectual property rights, bad debts from certain customers, import and export controls, exchange rate fluctuations, interest rates and availability of capital at a reasonable cost, litigation and respect of privacy, the impact of major market fluctuations on the solvency of defined benefit pension plans, taxation, including changes in tax legislation that could adversely affect profitability, disputes with tax authorities or amendments to statutory rates in force, and results of impairment tests on the value of assets. 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 30, 2022, 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 June 7, 2023. The forward-looking statements in this presentation are made pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The forward-looking statements in this presentation are based on current expectations and information available as at June 7, 2023. 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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Q2-FY2023 HIGHLIGHTS

Packaging

Printing

Adjusted EBITDA was up 18.5% organically

Profit improved in all our segments with the exception of LatAm

Strong tailwind from FX

2.3% growth in revenues mainly due to pricing action to mitigate inflation and increased activities in ISM, partially offset by lower volume in retail flyer printing and distribution activities

Adjusted EBITDA down $4.7M due to lower volume

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Q2-FY2023FINANCIAL RESULTS

	Q2-FY2023	Q2-FY2022	Highlights
			4.4% growth mainly due to favourable
Revenues	$747.2M	$715.5M	variation in exchange rates and
acquisitions (ERPI, Banaplast and
			Scolab)
			Increased profit in Packaging ($15.0M)
Adj.			partially offset by decline in Printing
$109.0M	$103.6	($4.7M)
EBITDA(1)	Increased stock-based compensation
			expense ($3.2M)
Adj. EPS(1)	$0.45	$0.48	Increased financial expenses (from
higher interest rates) and amortization
			partially offset by higher adjusted EBITDA

5 |	(1) Non-IFRS financial measure. Please refer to page 2 of this presentation for a complete description of these measures.