Transcontinental Inc.

Welcome to the TC Transcontinental Third Quarter of Fiscal Year 2024 Results Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session, and instructions will be provided at that time. As a reminder, this conference is being recorded today, September 12, 2024. I would like to turn the conference over to Yann Lapointe, Director, Investor Relations and Treasury. I would now like to give the floor to Yann Lapointe, Director, Relations with Investors and Treasury. Mr. Lapointe, please go ahead.

Thank you, Joël, and good morning, everyone on the call. Welcome to Transcontinental's third quarter of fiscal 2024 earnings call. Before we begin, please note that our quarterly report, including financial statements and related notes, as well as the slides supporting management's remarks, are all available on our website at www.tc.tc under the Investor Relations section. A replay of this conference call will also be available on our website shortly after the call. Please note that this conference call is intended for the financial community. Media are in listen-only mode and should contact Nathalie Saint-Jean, Senior Advisor, Corporate Communications, for more information. We have with us today our President and Chief Executive Officer, Thomas Morin, and our Executive Vice President and Chief Financial Officer, Donald LeCavalier. As referenced on slide two, some of the financial measures discussed over the course of this conference call are non-IFRS. You can refer to the MD&A for a complete definition and reconciliation of these measures to IFRS. In addition, this conference call might also contain forward-looking statements. These statements are based on the current expectations of management and information available as of today, and they involve numerous risks and uncertainties, known and unknown. The risk, uncertainties, and other factors that could influence actual results are described in the fiscal 2023 annual MD&A and in the latest annual information form. With that, I would like to turn the call over to our President and CEO, Thomas Moret.

Thank you, Yann, and good morning to all today. I'm happy to report a fourth quarter in a row of improved profitability. This strong performance is the result of the hard work from our teams in reducing costs, the optimization of our manufacturing network, as well as our focus on higher value added products. In our packaging sector, even though Q3 last year is uneasy comparable, we are pleased with the increase of 20.6% in adjusted EBDA. While the pressure on our non-food business continued, particularly in the medical market, we did experience a modest volume growth for the first time since 2022. Regarding recyclable packaging and a new BOP line in Spartanburg, South Carolina, we powered up the line for the first time in July and we are producing test reels for customers' trials. So far, this is a successful startup and it's on plan. Looking forward, while the demand environment is slowly improving, we are seeing some pricing pressure in the market and remain vigilant in this regard. Regarding medical, which represents about 5% of packaging revenue, we don't expect a recovery before the first quarter of fiscal 2025. In our retail services and printing sector, our actions to improve our cost structure, a more favorable product mix, including the rollout of radar, and growth in volume and profits in our in-store marketing activities are paying off. The sector delivered 24% increase in adjusted EBITDA, the first time increase in profitability in a very long time. In July, we expanded our radar footprint in British Columbia, and we are now reaching 1.2 million homes weekly in the province, and nearly 5 million weekly overall. Our entry into Newfoundland has been delayed, taking into account the acquisition of saltwater assets by PostMedia. As a consequence of this transaction, though, we will be receiving additional volumes for our Halifax plant starting in the next few weeks. And finally, the implementation of our two-year program to improve our profitability and financial position continues to be on track, in line with the objectives announced last December. I'm very proud of the work done by our team, which continues to focus on our priorities and delivers these encouraging results. On this, I will pass it over to you, Thomas.