Transcontinental (TCL-A) Investor presentation summary

Investment highlights and strategy

• Diversified operations in flexible packaging, retail services & printing, and educational publishing, with leadership positions in most verticals driven by strong customer relationships.

• Strong commitment to sustainability and a circular economy, recognized by stakeholders such as Sustainalytics, MSCI, and Corporate Knights.

• Resilient through economic cycles, able to transfer raw material and inflation costs to customers.

• Disciplined M&A strategy, prudent balance sheet management, and post-acquisition deleveraging.

• Attractive dividend yield with a track record of consistent payments and investment grade credit rating.

Financial performance and cash flow

• 2024 revenues reached $2.8B, with an average annual cash flow from operations of ~$350M over 11 years.

• Over $2.9B in cash flow from operating activities generated since FY2017, averaging $365M per year.

• Net debt reduced by $737M from FY2018 to FY2024, maintaining investment grade ratings.

• Dividend yield at 5.0% with a 39% payout ratio and over 30 years of dividend payments.

Business segments and market leadership

• Packaging sector is a North American leader, generating $1.6B in FY2024 revenue, with 25 operating sites and 3,500 employees.

• Retail services & printing is Canada's largest printer and retail marketing service provider, with $1.1B in 2024 revenue and 17 operating sites.

• Media sector is the leading Canadian French-language educational publishing group, offering both print and digital products.