Transcontinental (TCL-A) Investor presentation summary

Investment thesis and strategic positioning

• Diversified operations in retail services, printing, and educational publishing drive resilience and innovation.

• Strong cash flow generation supports future investments and shareholder returns.

• Leadership positions in core segments are maintained through deep customer relationships.

• Growth plan focuses on scaling in-store marketing solutions (ISM) and strategic acquisitions.

• Attractive dividend yield with ongoing commitment to capital returns.

Business overview and segment performance

• Market leader in ISM and French-language educational publishing, with a diversified business mix.

• ISM & Specialty segment net sales grew at a 12% CAGR over five years, reaching $350M in FY2025.

• FY2025 net sales totaled $1.2B, with adjusted EBITDA of $212M and a margin of ~18%.

• Retail services and printing generated $890M in FY2025 revenues, with high flyer impression rates.

• Educational publishing leads in French-language content, covering all grade levels and provinces.

Growth strategy and financial strength

• Strong balance sheet and robust free cash flow enable disciplined capital allocation.

• Over $250M invested in acquisitions since 2013, mainly in ISM and educational publishing.

• Pro forma net indebtedness ratio expected at ~1.75x by end of FY2026.

• Real estate divestiture plan targets $100M, with $55M realized and further monetization ongoing.

• Corporate cost structure to be reduced by ~50% over 18-24 months to enhance profitability.