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Montreal, February 18, 2010
– Transcontinental management stressed the theme of
transformation, innovation and sustainable development in
its review of its fiscal 2009 results at its annual meeting
of shareholders.
Rémi Marcoux, Executive Chairman of the Board and
founder of Transcontinental, set the tone: “The world
is changing every day and this is even more true since the
recent recession,” said Mr. Marcoux. “Transcontinental
was born out of change. We will continue to evolve in pace
with our customers, whether businesses or consumers, to meet
their new needs and new expectations. I view the future with
great confidence.”
Mr. Marcoux spoke of the economic conditions of the past
year, saying that they were a major challenge. “We achieved
two things that are encouraging for the future: we did much
better than most of our competitors and in the past two quarters
we have outperformed our 2008 results. Plus, we did all that
while continuing to invest in our development. We were able
to achieve this because of our financial discipline, which
has always been our hallmark.”
The founder of Transcontinental then spoke about an aspect
that is very important to him: the longevity of his company.
“Transcontinental’s long-term success will be
assured by a profound transformation and we have already come
a long way along that path. More specifically, it will come
from our ability to innovate and offer our customers, whether
businesses or advertisers, new services based on one-to-one
marketing and new digital communication platforms. More than
1,000 people are now working on building these new services
at Transcontinental.”
Mr. Marcoux pointed out that the printing industry would
experience low growth in the next few years, but explained
that Transcontinental is well positioned to get the most out
of the situation. He noted that the mix and complementarity
of the products and services offered by Transcontinental,
which combine media, marketing communications and printing,
are all provided through a one-stop shop. He concluded by
returning to the theme of longevity: “In the final analysis,
the longevity of Transcontinental relies upon the longevity
of the planet and its resources. That is why our business
practices have always emphasized protection of the environment.
Today we are proud to be releasing our first Sustainability
Report, drafted using the internationally recognized Global
Reporting Initiative standard, which is highly respected in
the industry.”Building the “New Transcontinental”
François Olivier, President and Chief Executive Officer,
described the steps Transcontinental took to quickly counter
the effects of the recession, which was of “unprecedented
scope in the history of Transcontinental.” The measures
resulted in recurring annual cost savings of $110 million,
of which close to $80 million had a beneficial impact on the
2009 results. “The recession has made us stronger. Today
we are a more flexible business, more focused on our assets
and strategic priorities, with a solid balance sheet. Also,
the actions we took to deal with the recession did not hinder
our efforts to offer and develop top quality products and
services.”
Mr. Olivier then talked about the “new Transcontinental”
which is being built “patiently and systematically every
day” through the introduction of state-of-the-art services
as well as the transformation of traditional activities. The
promising new initiatives he mentioned included the creation
of the Marketing Communications sector, which is focused on
new one-to-one advertising services and new digital communication
platforms. He listed some of the services that are now available
to retailers: data analytics, email-based marketing, e-flyers
and custom publishing. He then spoke about the recent development
of a unique pre-shopping website, Dealstreet.ca for English-language
consumers, and Publisac.ca for French-language consumers,
“an original solution that will help our retailer customers
get the most out of their marketing dollar, and help consumers
search and compare to find the best deals.”
Mr. Olivier also pointed out that “this means that
for our retailer customers, for whom we already print and
distribute flyers, we can prepare an interactive marketing
campaign, a promotional microsite and a dynamic application
for wireless technologies, while continuing to sell them advertising
space in our magazines and newspapers. In short, we provide
multiple integrated services so that retailers can effectively
communicate with their target consumers.”
The President and Chief Executive Officer also talked about
the new offering in the Media Sector. “Our magazines,
newspapers and some 120 websites are in dialogue with millions
of qualified consumers who are interested and open to information
and entertainment. We provide advertisers with space in our
print newspapers and magazines or banner advertising on our
websites, we distribute community newspapers through our Publisac;
and, since November 2008, we also offer hosting or subscriptions
on our Canada-wide search site, weblocal.ca. For Transcontinental,
these are four diversified yet integrated revenue streams.”
Mr. Olivier then explained that the “new Transcontinental”
extends also to its printing operations. “Thanks to
our ongoing capital investments, we now head one of the most
modern and efficient printing platforms in North America.
In 2009, this technological superiority won us market share,
and new major contracts such as those with Rogers Communications
and the San Francisco Chronicle.”
About the 15-year contract valued at one billion dollars
for the San Francisco Chronicle he had this to say:
“Production started on time, on budget, and to the complete
satisfaction of our client. Furthermore, our plant was profitable
from the very first day. In the coming months we are planning
to open our doors to new publishing and retail customers coming
mainly from the Greater San Francisco area.”
François Olivier also spoke about setting up a newspaper
and flyer-printing platform through Transcontinental’s
network of printing plants across Canada. This unique hybrid
platform is being developed as part of an 18-year, $1.7 billion
contract with The Globe and Mail that will take effect
at the end of this year. “We will provide The Globe
and Mail with the capacity to print on glossy stock and
to put colour on every page, while also making the latest
print technologies available to our retail customers. For
Transcontinental, this is a new form of specialization that
brings with it significant benefits in terms of synergy and
operational efficiencies.”
Mr. Olivier concluded by saying that “our actions
going forward will be guided by the same drive that has made
Transcontinental a major player in the communications industry.
We will be creating new products that will offer good growth
potential and we will continue to improve our financial performance
in our more traditional markets. These two avenues of development
will ensure that Transcontinental thrives well into the future.
My confidence in that future is based on another critical
factor: our people. They are what makes the difference, recession
or not. We will continue to invest in their development, knowledge
and ability to innovate.”
Lastly, the audience heard from Benoit Huard, Vice President
and Chief Financial Officer, who put the 2009 results in perspective
in terms of the recession, provided an update on the Corporation’s
financial position given the number of financing arrangements
worked out over the course of the year, explained how the
cash flow from operations was used and gave an overview of
Transcontinental’s financial evolution in the coming
years.
“The year 2010 will be one of many challenges and
business opportunities. We will benefit from the full-year
impact of the contract to print the San Francisco Chronicle
and recurring savings of about $110 million from our rationalization
plan. We will also benefit from the positive impact of our
ongoing investments to strengthen our traditional profitable
operations, and to develop our new marketing services and
new digital communication platforms. I am convinced that we
are well positioned for the future.”
Profile
Transcontinental provides printing, publishing and
marketing services that deliver exceptional value to its clients
and provide a unique, integrated platform for them to reach
and retain their target audiences. Transcontinental is the
largest printer in Canada and in Mexico, and sixth-largest
in North America. It is also the country’s leading publisher
of consumer magazines and French-language educational resources,
the second-largest community newspaper publisher, and its
digital platform delivers unique content through more than
120 Web sites. Its Marketing Communications Sector provides
advertising services and marketing products using new communications
platforms supported by database analytics, premedia, e-flyers,
email marketing, and custom communications. Transcontinental
is a growth-oriented company with a culture of continuous
improvement and financial discipline, whose values, including
respect, innovation and integrity, are central to its operation.
Transcontinental (TSX: TCL.A, TCL.B, TCL.PR.D) has approximately
12,500 employees in Canada, the United States and Mexico,
and reported revenue of C$2.3 billion in 2009. For more information
about the Corporation, please visit www.transcontinental.com.
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For information:
Media
Sylvain Morissette
Vice-President, Corporate Communications
Transcontinental Inc.
Telephone: 514 954-4007
sylvain.morissette@transcontinental.ca
Financial Community
Jennifer F. McCaughey
Director, Investor Relations
Transcontinental Inc.
Telephone: 514 954 2821
jennifer.mccaughey@transcontinental.ca
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