March 2017 investor deck (final)

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  • Canadian Tire Corporation

    Investor Presentation

    March 2017

  • Forward looking information

    2

    This document contains forward-looking statements that reflect managements current expectations related to matters such as future financial performance and operating results of the Company.

    Forward-looking statements are provided for the purposes of providing information about Managements current expectations and plans and allowing investors and others to get a better

    understanding of the Companys financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other circumstances.

    All statements other than statements of historical facts included in this document may constitute forward-looking statements, including but not limited to, statements concerning Managements

    current expectations relating to possible or assumed future prospects and results, the Companys strategic goals and priorities, its actions and the results of those actions and the economic and

    business outlook for the Company. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology such as may, will, expect, intend, believe,

    estimate, plan, can, could, should, would, outlook, forecast, anticipate, aspire, foresee, continue, ongoing or the negative of these terms or variations of them or similar

    terminology. Forward-looking statements are based on the reasonable assumptions, estimates, analyses, beliefs and opinions of Management, made in light of its experience and perception of

    trends, current conditions and expected developments, as well as other factors that Management believes to be relevant and reasonable at the date that such statements are made.

    By their very nature, forward-looking statements require Management to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that the

    Companys assumptions, estimates, analyses, beliefs and opinions may not be correct and that the Companys expectations and plans will not be achieved. Examples of Managements beliefs,

    which may prove to be incorrect, include, but are not limited to, beliefs about the effectiveness of certain performance measures, beliefs about current and future competitive conditions and the

    Companys position in the competitive environment, beliefs about the Companys core capabilities and beliefs regarding the availability of sufficient liquidity to meet the Companys contractual

    obligations. Although the Company believes that the forward-looking statements in this document are based on information, assumptions and beliefs that are current, reasonable and complete,

    these statements are necessarily subject to a number of factors that could cause actual results to differ materially from Managements expectations and plans as set forth in such forward-looking

    statements. Some of the factors, many of which are beyond the Companys control and the effects of which can be difficult to predict, include: (a) credit, market, currency, operational, liquidity

    and funding risks, including changes in economic conditions, interest rates or tax rates; (b) the ability of the Company to attract and retain high quality employees for all of its businesses, Dealers,

    Canadian Tire Petroleum retailers and Marks and FGL Sports franchisees, as well as the Companys financial arrangements with such parties; (c) the growth of certain business categories and

    market segments and the willingness of customers to shop at its stores or acquire its financial products and services; (d) the Companys margins and sales and those of its competitors; (e) the

    changing consumer preferences toward eCommerce, online retailing and the introduction of new technologies; (f) risks and uncertainties relating to information management, technology, cyber

    threats, property management and development, environmental liabilities, supply chain management, product safety, changes in law, regulation, competition, seasonality, weather patterns,

    commodity prices and business disruption, the Companys relationships with suppliers, manufacturers, partners and other third parties, changes to existing accounting pronouncements, the risk

    of damage to the reputation of brands promoted by the Company and the cost of store network expansion and retrofits; (g) the Companys capital structure, funding strategy, cost management

    programs and share price; and (h) the Companys ability to obtain all necessary regulatory approvals. Management cautions that the foregoing list of important factors and assumptions is not

    exhaustive and other factors could also adversely affect the Companys results. Investors and other readers are urged to consider the foregoing risks, uncertainties, factors and assumptions

    carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.

    For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, please refer to sections 7.2.4 (Retail segment

    business risks), 7.3.2 (CT REIT segment business risks), 7.4.3 (Financial Services segment business risks) and 12.0 (Enterprise risk management) and all subsections thereunder of the MD&A

    contained in the Companys 2016 Report to Shareholders. Please also refer to section 2.10 (Risk Factors) of the Companys Annual Information Form for fiscal 2016, as well as the Companys

    other public filings, available on the SEDAR (System for Electronic Document Analysis and Retrieval) website at www.sedar.com and at investors.canadiantire.ca

    Forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made, have on the

    Companys business. For example, they do not include the effect of any dispositions, acquisitions, asset write downs or other charges announced or occurring after such statements are made.

    The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. The Company does not undertake to update any forward-

    looking statements, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, unless required by applicable securities

    laws.

  • 10.6%

    5.1%

    8.1%

    $2,199.7

    $1,634.7

    $1,154.4

    $6,653.1 $11,453.4

    +3.4%

    Retail Revenue by Banner3

    6.1%

    6.0%

    4.2%

    SAME-STORE SALES

    CANADIAN TIRE

    Annual Results

    2016 RETAIL

    SALES GROWTH

    CANADIAN TIRE 5.6%

    FGL SPORTS 6.9%

    MARKS 6.0%

    2016 DILUTED EPS

    $9.22 +7.1%

    2016

    RETAIL ROIC2,3

    8.34%

    2016 FINANCIAL

    SERVICES RETURN

    ON RECEIVABLES2,3

    7.40%

    1,2

    1 Figures are calculated on a rolling 12-month basis.

    2 Refer to Section 11.3.1 of the Q4 and full-year 2016 MD&A for additional information on the Companys key operating performance measures.

    3 Inter-segment revenue within the retail banners of $188.5 million in 2016 ( 2015 - $133.1 million) has been eliminated at the Retail segment level. Revenue reported for

    Canadian Tire, FGL Sports, Marks and Petroleum includes inter-segment revenue.

    FGL SPORTS

    MARKS

    Q4 2016

  • Q4 Operational Highlights

    Data analytics to optimize pricing and promo and products, drove near record Q4

    same store sales growth at Canadian Tire banner.

    I am very pleased with our results as they demonstrate the strength of our company and our unique ability to provide our customers with the products for life in Canada.

    That strength, coupled with our expertise, and the power of our brand provides the

    foundation for our future growth

    -Stephen Wetmore, President & CEO, CTC

    Continued roll-out of Financial Services in-store financing at Canadian Tire stores

    was very well received and advantageous to GAAR growth.

  • Corporate Overview

    Family of businesses Bringing our

    customers the products they need for the jobs and joys of life in Canada.

    Our strengths

    Strong iconic brands that Canadians love

    Market leadership and credibility in heritage categories

    Financial flexibility / REIT / Scotiabank transaction

    Strong balance sheet / credit rating

    +1,700 bricks and mortar locations across Canada

    Shared real estate, marketing, supply chain, support services

    Our growth plan

    Growth and integration of in-store digital and e-commerce

    Leading customer loyalty and reward programs

    Engaging digital marketing, use of sponsorships and powerful

    content

    Continue to invest to strengthen our core businesses

    Increased focus on private brands

    Culture of productivity with a performance management focus

    How we win

    Exceeding customer expectations with best omni-channel retail

    platforms

    Conduit between customers and the best consumer brands in

    the world

    Building our brands and exclusivity

    Family of CTC businesses strong coalition

    Sports and community partnerships

    Financial highlights (2016) Growth (YoY)

    Revenue $12.7B +3.3%

    Net Income (attributable to shareh