Canadian Tire Corporation - Investor Presentation - Last Updated: May 2020
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Canadian Tire Corporation
Investor Presentation
Last Updated: May 2020
Forward Looking Information
This document contains forward-looking statements that reflect Management’s current expectations relating to matters such as future financial performance and operating results of the Company.
Forward-looking statements provide information about Management’s current expectations and plans and allow investors and others to better understand the Company’s anticipated financial position, results of operations and operating
environment. Readers are cautioned that such information may not be appropriate for other purposes.
Certain statements other than statements of historical facts included in this document may constitute forward-looking statements, including, but not limited to, statements concerning Management’s current expectations relating to possible or
assumed future prospects and results, the Company’s 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 Company’s assumptions, estimates, analyses, beliefs and
opinions may not be correct and that the Company’s expectations and plans will not be achieved. Examples of material assumptions and Management’s beliefs, which may prove to be incorrect, include, but are not limited to, the length, duration
and impact of COVID-19, including measures adopted by governmental or public authorities in response to the pandemic, the effectiveness of certain performance measures, current and future competitive conditions and the Company’s position
in the competitive environment, the Company’s core capabilities, and expectations around the availability of sufficient liquidity to meet the Company’s contractual obligations. Management’s expectations with respect to the Operational
Efficiency program are based on a number of assumptions relating to anticipated cost savings and operational efficiencies. Although the Company believes that the forward-looking information in this document is based on information,
assumptions and beliefs that are current, reasonable, and complete, such information is necessarily subject to a number of factors that could cause actual results to differ materially from Management’s expectations and plans as set forth in such
forward-looking statements. Some of the factors, many of which are beyond the Company’s 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 Mark’s and SportChek franchisees, as well as the
Company’s 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 the Company’s consumer brands or its financial products and
services; (d) the Company’s margins and sales and those of its competitors; (e) the changing consumer preferences and expectations related to eCommerce, online retailing and the introduction of new technologies; (f) the possible effects on our
business from international conflicts, political conditions, and other developments including changes relating to or affecting economic or trade matters as well as the outbreak of contagions or pandemic diseases; (g) 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, climate
change, commodity prices and business disruption, the Company’s 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; (h) the Company’s capital structure, funding strategy, cost management program, and share price; (i) the Company’s ability to obtain all necessary regulatory
approvals; (j) the Company’s ability to complete any proposed acquisition; and (k) the Company’s ability to realize the anticipated benefits or synergies from its acquisitions. With respect to the statements concerning the Company’s Operational
Efficiency program, such factors also include: (a) the possibility that the Company does not achieve the targeted annualized savings; (b) the possibility that the program results in unforeseen impacts to overall performance; (c) the possibility that
the one-time costs and capital investments associated with the program are more significant than expected; and (d) the possibility that the Company does not achieve the expected payback during the anticipated timeframe for the severance,
store closure and other related expenses recorded. Additional risks and uncertainties related to COVID-19 are discussed in section 3.0 (Significant Events that Impacted the Company this Quarter) of the Company’s Management’s Discussion and
Analysis for the quarter ended March 28, 2020 (“2020 Q1 MD&A”). Management cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect the Company’s 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, refer to section 10.0 (Key Risks and Risk Management) of the 2020 Q1 MD&A and all subsections
thereunder. Also refer to section 2.8 (Risk Factors) of the Company’s 2019 Annual Information Form, and all subsections thereunder, as well as the Company’s other public filings, available on the SEDAR (System for Electronic Document Analysis
and Retrieval) website at www.sedar.com and at https://investors.canadiantire.ca.
The forward-looking information contained herein is based on certain factors and assumptions as of the date hereof and does 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 Company’s business. 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, except as required by applicable securities laws.
INVESTOR PRESENTATION | FORWARD LOOKING INFORMATION 2
Canadian Tire Corporation Today
At Canadian Tire Corporation (CTC), we are committed to providing Canadians with the products and
services they need for the Jobs and Joys of a Lifetime in Canada. What started as a single store in Toronto
has grown into an iconic national brand with more than 1,700 retail locations, a best-in-class loyalty
program, and leading-edge digital and data analytics capabilities.
Today, our family of companies includes our namesake banner Canadian Tire Retail (CTR), which features
Living, Fixing, Playing, Automotive and Seasonal divisions; PartSource, Roadside Assistance and Gas+, key
elements of CTR’s automotive business; Mark’s/L’Équipeur, a leading source for casual and industrial wear;
SportChek, Sports Experts, Hockey Experts, National Sports and Atmosphere, which offer the best
activewear brands; Pro Hockey Life, a hockey specialty store catering to elite players; and Helly Hansen, a
global sports and workwear brand.
In 2019, we acquired Party City’s Canadian business, adding Canada’s #1 party supply and celebration
destination to our growing retail roster.
INVESTOR PRESENTATION | CANADIAN TIRE CORPORATION TODAY 3
Our retail banners are supported by our Financial By strategically investing in our digital capabilities and
Services business and our Triangle Rewards data analytics, we have become one of the largest
loyalty and credit card programs. eCommerce players in Canada. We engage with our
customers more often, more effectively, and more
Triangle Rewards is one of our most significant efficiently, keeping them at the heart of everything we
assets, linking the entire family of companies do.
into a single customer-facing marketplace and
loyalty program. Today, Triangle Rewards allows Over time as our customers’ needs have changed, so
our customers to earn and redeem Canadian too has our assortment. We continue to refine our
Tire Money (CTM) across our banners, providing shopping experience, delivering customized offers and
important customer data and reinforcing our making it easier for them to shop when and how they
One Company, One Customer strategy. want. From the products we sell, to the experience we
provide, we are well on our way to becoming the #1
Retail Brand in Canada by 2022.
INVESTOR PRESENTATION | CANADIAN TIRE CORPORATION TODAY 4
Corporate Overview
BRINGING OUR CUSTOMERS THE PRODUCTS THEY NEED FOR THE JOBS AND JOYS OF LIFE IN CANADA
STRENGTHS GROWTH FINANCIAL HIGHLIGHTS (2019)
• Iconic and trusted brands • Focus on owned brands & product Revenue +3.4%
Canadians love development
• Credibility in heritage categories • Advancements in in-store & digital Revenue (excluding Petroleum) +5.1%
customer experience
• Triangle Rewards Loyalty and Credit
Card program with 2.1 million active • Triangle Rewards insights to drive Normalized Net Income +3.8%
(attributable to shareholders of
credit cardholders increased customer engagement
CTC)1
• Shared real estate, marketing, supply • Focus on operational excellence
chain & support services
• Expansion of Helly Hansen brand Normalized Diluted Earnings +9.1%
• Strong balance sheet and financial offering in Canada and opportunity Per Share1
flexibility to grow owned brands through Helly
Hansen’s international platform
1 – Refer to section 5.1.1 of the Q4 and full year 2019 MD&A for a description of normalizing items
INVESTOR PRESENTATION | OVERVIEW 5
NOVEMBER 2017 INVESTOR PRESENTATION | OVERVIEW
Triangle RewardsTM
Introduced in 2018, Triangle Rewards is the evolution of our iconic Canadian Tire Money (CTM). It lets customers
collect and redeem CTM at Canadian Tire, Mark’s/L’Équipeur, SportChek, Atmosphere and participating Sports Experts
locations. Customers can further collect CTM on Avis Car and Budget car rentals, and on fuel purchases at Canadian
Tire gas bars and on the Triangle Mastercard at participating Husky stations.
More than 9 million Canadians are active Triangle Rewards members. This gives us valuable insight into the spending
habits of a majority of Canadian households, helping us to better understand our customers. Our data tells us what our
customers are shopping for and where, allowing us to deliver relevant, personalized offers that increase their overall
engagement across our banners and brands and enhance their experience. Customers who shop across our banners
spend more, and because of the rewards they get from engaging with our brands, they are increasingly turning to us to
meet their needs. We have been investing heavily in data analytics and digital capabilities in parallel with the launch
and growth of Triangle Rewards, which has enabled us to make more informed decisions and expanded our ability to
connect with our customers with over 7 million unique offers sent each week.
INVESTOR PRESENTATION | TRIANGLE REWARDS 7
Triangle Rewards Program Overview
CROSS BANNER EARN AND SPEND 1:1 MARKETING DIGITAL EXPERIENCE BUSINESS INSIGHTS
PROMOTION
Offer full value to Collect rewards faster Personalize 1:1 Enable strong digital Understand customer
customers as and redeem at communications and engagement and multi- path to purchase to
One Company multiple banners promotional offers channel experience evolve assortment and
improve customer
experience
Across our family of companies, we are creating a seamless and integrated shopping experience of
differentiated brands, connected by Triangle Rewards, working together to prepare Canadians for the
Jobs and Joys of a Lifetime in Canada and rewarding them for choosing Canadian Tire.
INVESTOR PRESENTATION| TRIANGLE REWARDS 8
Our Core Business is Retail
KEY BUSINESS DIVISIONS – Bringing our customers the products they need for the Jobs and Joys of Life in Canada
Banners
2019 Revenue1 C$9.3B C$2.0B C$1.3B C$0.7B C$1.3B
= C$14.5B
Reporting Retail Financial
Segments Services
CTC Business Automotive Living Fixing Seasonal Playing/ Sports Apparel Wholesale Financial
Divisions
Products Gas Home Cleaning Home Repair Gardening Hockey Industrial Wear Work Wear Credit Cards
& Services by Category Auto Parts & Home Décor Paint Outdoor Tools Golf Men’s Wear Urban Retail Deposits
Maintenance Home Org Tools Backyard Living & Cycling Women’s Wear Sportswear In-store Acquisitions
Tires Kitchen Fun Fitness Athletic Apparel & Financing
Auto Service Gardening Toys & Games Camping Lifestyle & Adventure Insurance
Outdoor Adventure Outdoor Tools Christmas Trees Hunting Footwear
Car Care & Accessories Home Essentials & Seasonal Décor Fishing Accessories
Roadside Assistance Pet Care
1 – Revenue reported for retail banners and Financial Services includes inter-banner and inter-segment revenue. Numbers may not add due to rounding.
INVESTOR PRESENTATION | OVERVIEW 9
Canadian Tire Retail
Canadian Tire Retail has over 500 retail locations across Canada, with local Associate Dealer presence and
trust. We sell more products, in more places, than any other Canadian retailer.
Through our well-positioned store network, digital innovation, convenient deliver-to-home and in-store
pick-up options, unique customer-facing experiences, and exclusive perks for Triangle Rewards members,
we are inspiring and enabling our customers to shop when and how they want for the brands and products
they’re seeking.
Canadian Tire is putting our customers at the heart of everything we do by transforming the shopping
experience to deliver an increasingly exceptional, modern and innovative retail environment. We continue
to develop exciting merchandise strategies, relevant and engaging new Owned Brands and market-leading
programs like We Do New and TESTED for Life in Canada, reaching more Canadians than ever before.
Canadian Tire truly is Canada’s Store.
INVESTOR PRESENTATION | CTR 10Party City
Party City is Canada’s premier retailer of costumes, accessories and decorations. It is a one-stop shopping
destination for seasonal celebrations and everything in between, from bridal and baby showers to New
Year’s celebrations and birthday and retirement parties, with 65 Canadian retail stores in seven provinces.
In addition to exceptional capabilities in design, innovation and manufacturing, Party City has access to an
extensive catalogue, including exclusive and proprietary designs and licensed products. The addition of Party
City to our family of companies cements Canadian Tire Retail as Canada’s Fun Store and takes us one step
closer to becoming the #1 party supply destination in Canada.
INVESTOR PRESENTATION | PARTY CITY CANADA 11Canadian Tire Retail
GROWTH
STRENGTHS FINANCIAL HIGHLIGHTS (2019)
• Commitment to setting up a world- Revenue growth +2.9%
• One of Canada’s most trusted
class omni-channel and growing the
and iconic brands Sales growth +4.5%
eCommerce business
• Market leader across core categories Comparable sales growth +3.8%
• Grow new product pipeline through
• Superior real estate locations owned and national brands Store count 667
and national store network
• Develop unique and personalized
• Strong Associate Dealer network customer connections and
focused on local community and experiences through Triangle
needs Rewards insights
• Revitalize and localize assortments
1 – Revenue includes revenue from Canadian Tire, PartSource, Pro Hockey Life, Party City and Franchise Trust.
2 – Stores count includes stores from Canadian Tire, and other banner stores of 163.
INVESTOR PRESENTATION | CTR 12SportChek
SportChek is Canada’s leading health, fitness and wellness retailer. With more than 400 locations across the
country, SportChek understands, better than anyone, the role sports and activity play in the lives of
Canadians. In addition to SportChek, our other banners include Sports Experts, Atmosphere, National
Sports, Hockey Experts and Sports Rousseau. In-store and online, SportChek offers a comprehensive
assortment of elite national brands, complemented by Owned Brands such as Woods and Helly Hansen.
SportChek values inclusivity and believes sport is whatever moves you. We remain passionate about
inspiring customers to live a healthy, active lifestyle, and are committed to providing them with a one-stop
destination for sport, activity and wellbeing at all levels. While bringing the latest launches and brands to
life, SportChek challenges Canadians to redefine modern sport in their everyday lives
INVESTOR PRESENTATION | SPORTCHEK 13SportChek
STRENGTHS GROWTH FINANCIAL HIGHLIGHTS (2019)
• Canada’s largest sporting goods • Analytics-driven decision making for Revenue growth +2.2%
retailer in-store merchandising and staffing Sales growth +2.6%
to optimize sales and profitability
• Strong relationships with national Comparable sales growth +3.3%
vendor brands • Expanding owned brands presence
Store count 402
• CTC’s digital lab and testing ground • Develop unique and personalized
customer connections and
experiences through Triangle
Rewards insights
• Enhancing store network
productivity
INVESTOR PRESENTATION | SPORTCHEK 14Mark’s
Mark’s is one of Canada’s leading casual and industrial apparel and footwear retailers, known for offering
quality, innovative and stylish products. With 70% of sales from Owned Brand products designed and
sourced in-house, Mark’s core differentiator is its specialized assortment, which has carved out a unique
and defendable niche. Key Owned Brands include Denver Hayes, Dakota, WindRiver and Helly Hansen
Workwear, and they are complemented by national brands such as Levi’s, Carhartt, Timberland and
Columbia.
Mark’s continues to be a leader in apparel and footwear product development across the corporation,
focused on keeping Canadians warmer, drier, safer and more comfortable. In 2019, Mark’s celebrated the
exclusive and successful launch of No Fly Zone® mosquito and tick repellent clothing. eCommerce continues
to be a growth engine for Mark’s. It operates 380 stores under the banners “Mark’s” and “L’Équipeur” in
Quebec and offers online retailing through its websites at www.marks.com and www.lequipeur.com.
INVESTOR PRESENTATION | MARK‘S 15Mark’s
STRENGTHS GROWTH FINANCIAL HIGHLIGHTS (2019)
• Product development, innovation • Sustain brand growth through ‘Well Revenue growth +2.2%
and quality Worn’ campaign Sales growth +2.4%
• Strong owned, exclusive and national • Expand eCommerce capabilities Comparable sales growth +2.5%
brands
• Develop unique and personalized Store count 380
• National store network customer connections and
experiences through Triangle
• Leader in industrial apparel
Rewards insights
INVESTOR PRESENTATION | MARK‘S 16Helly Hansen
Helly Hansen is a leading technical outdoor brand sold in more than 40 countries. The brand is
worn and trusted by more than 55,000 outdoor professionals and can be found on Olympians,
National Teams, and at more than 200 ski resorts and mountain guiding operations globally. Helly
Hansen’s long-term growth strategy is based on the ethos that “Helly Hansen makes professional
grade gear to help people stay and feel alive,” tapping into the brand’s 140-year Norwegian
heritage. The company has successfully invested in brand and product development, focused its
core product offering, improved financial discipline, and enhanced distribution channels, all
resulting in growth well ahead of the market. It also operates Musto, the world’s leading technical
sailing brand.
In 2019, Helly Hansen continued to build a more consumer-centric, focused, and financially
strong company through investments in brand development, design, and innovation, funded by
increased operating leverage.
INVESTOR PRESENTATION | HELLY HANSEN 17Helly Hansen STRENGTHS GROWTH FINANCIAL HIGHLIGHTS (2019) • Trusted and celebrated global brand • Brings complete assortment across that professionals use and trust CTC banners Revenue $651M • Global leader in technical • Strengthens CTC’s ability to performance apparel from sea to distribute current and future owned mountains brands • Wholesale, store network and ship- • International footprint with multi- to-home capabilities globally year expansion plan underway INVESTOR PRESENTATION | HELLY HANSEN 18
Our Owned Brands
As a customer and product driven company, CTC has a long history of offering exclusive brands, and this
legacy continues to set us apart. Through acquisitions and by developing new brands in-house, we continue to
expand our Owned Brands portfolio, adding products that resonate with our customers and drive our growth.
In 2019, we introduced new homegrown brands, including type A, our storage and organization brand where
style meets innovation and function; Bluehive, a consumer electronics brand that brings customers the latest
in mobile technology; and FWD – Forward With Design, a lifestyle apparel brand that blends function with
design. Paderno, our high-end kitchen brand, saw its assortment bolstered with the addition of kitchen
appliances that were designed and developed inhouse. We also introduced iconic barbecue brand Vermont
Castings and leading lawn care brand Golfgreen, while Sher-Wood Hockey launched a new line of equipment,
and Helly Hansen expanded its assortment at SportChek and Mark’s.
This past year we acquired the Canadian rights to top-tier global cycling brands Raleigh, Diamondback and
Redline, strengthening Canadian Tire and SportChek’s positions in the bike category. We also acquired Muskol,
one of Canada’s most recognized mosquito repellant brands with over 65 years of heritage in the country.
INVESTOR PRESENTATION | OWNED BRANDS 19Owned Brands • Through our comprehensive Owned Brands FINANCIAL HIGHLIGHTS (2019) strategy, we are developing curated, high • Contributed over $4 billion in sales in 2019 quality product assortments that are increasingly informed by customer data, including engagement with our TESTED for Life in Canada customer panel. • Through acquisitions and in-house development, Owned Brands are delivering sales, fuelling our growth strategy, and continuing to provide our customers with what they need for the Jobs and Joys of Life in Canada. INVESTOR PRESENTATION | OWNED BRANDS 20
CT REIT
CT REIT owns over 350 commercial properties across Canada, totalling approximately 28 million square feet
of gross leasable area, with a fair market value of approximately $6 billion. Comprising primarily free-
standing single tenant assets leased to CTC, CT REIT features high occupancy, low lease turnover and long
weighted average terms on our leases and our debt. These structural features, and the resulting strong
financial performance, combined with the highest investment grade credit rating in the Canadian REIT
sector, distinguish CT REIT as Canada’s premier net lease REIT.
In 2019, reflecting growth in its units’ float and liquidity, CT REIT was included in the S&P/TSX Composite and
Capped REIT indices and a number of sub-indices. In early 2020, the REIT was also included in the S&P/TSX
Dividend Aristocrats Index, one of only a handful of Canadian REITs with that distinction. These mark a
significant milestone for CT REIT as its inclusion in these indices enables the REIT to expand its investor base
and increase liquidity for unitholders.
INVESTOR PRESENTATION | CT REIT 21CT REIT
STRENGTHS GROWTH FINANCIAL HIGHLIGHTS (2019)
• Irreplaceable high quality Canadian • Acquisition, development and Property revenue $489.0M +3.5%
real estate portfolio intensification opportunities Funds from $261.9M +6.4%
• Investment grade anchor • Canadian Tire Corporation operations
tenant – Canadian Tire property pipeline Adjusted funds $224.3M +9.3%
from operations
• Exceptional cash flow predictability • Contractual annual rent escalations
and reliable monthly distributions for Canadian Tire Corporation AFFO payout ratio 75.2%
properties
INVESTOR PRESENTATION | CT REIT 22Canadian Tire Financial Services
As the financial services division of Canadian Tire Corporation, Canadian Tire Financial Services (CTFS) is
primarily engaged in marketing the Triangle™ credit card portfolio to Canadians.
Triangle™ credit cards, which are held by more than 2.1 million Canadians, are accepted worldwide and
allow cardholders to collect Canadian Tire Money® faster.
CTFS’ close integration with CTC’s retail banners and Associate Dealers is a competitive advantage in
acquiring new accounts and creating greater value for CTC’s most loyal customers.
In 2019, Triangle™ was listed as an industry leading credit card by Forrester’s Canadian Customer Experience
Index (July 2019) and J.D. Power’s 2019 Canada Credit Card Satisfaction Study.
INVESTOR PRESENTATION | FINANCIAL SERVICES 23Canadian Tire Financial Services
STRENGTHS GROWTH FINANCIAL HIGHLIGHTS (2019) Growth
• $6.3 billion in credit card receivables • Derive insights from Triangle Revenue $1.3B +5.9%
Rewards loyalty and credit card GAAR $6.3B +7.4%
• 2.1 million active credit card holders
program to:
Average number 2,112 +3.8%
• Extensive customer data and strong
Strengthen relationships with of accounts with
analytics capabilities
existing customers a balance
• Award winning customer service (thousands)
Increase share of tender across all
CTC banners
• Strengthen digital/mobile
capabilities
INVESTOR PRESENTATION | FINANCIAL SERVICES 24Sustainability
CTC is committed to operating as a sustainable Canadian brand. We recognize that climate change poses a serious risk to
the health of our planet, and as a Company, we have made it a top priority to be more energy efficient, use fewer
resources, produce less waste, and provide our customers with more options to reduce their own impact on the
environment.
Our family of companies sources products that are made in more than 90 countries, and our brand’s reputation depends
on how we conduct our business in Canada and around the world. In addition to working closely with our suppliers to
ensure our products are sourced and manufactured according to the highest global standards, we are working to make
textile production more sustainable across our apparel brands.
As an organization, we have set a target of diverting 90% of our waste to recycling, compost and reuse by 2022. We are
making excellent progress towards this goal and currently divert 77% of our waste from corporate buildings away
from landfills. Among the initiatives in place to achieve our target, we plan to reduce waste through more sustainable
product packaging in accordance with new packaging standards for our Owned Brands. Launching in 2020, these
improvements will see us reduce unnecessary packaging, move from non-recyclable materials to recyclable materials,
increase recycled content, and improve the ease of customer recycling.
INVESTOR PRESENTATION | ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE 25Jumpstart Charities
Jumpstart’s mission is to enrich the lives of all kids in need through sports and physical activity.
For kids, the opportunity to play is about much more than getting active: sport fosters self esteem and teaches valuable
life skills such as courage, confidence, resilience, and teamwork. Jumpstart helps eligible families cover the costs of
registration, transportation and equipment, and provides funding to select organizations for recreational infrastructure
and programming. With an extensive national network of nearly 300 local chapters, Jumpstart is committed to ensuring
kids in need have equal access to sport and recreation. One hundred per cent of all customer donations made to
Jumpstart stays within the community in which the donation was made.
In 2019, Jumpstart reached an incredible milestone: our two millionth child helped! In addition to helping a record
320,000 kids in financial need, Jumpstart continued to build a more inclusive Canada through the Inclusive Play Project:
a five-year fundraising commitment from Canadian Tire Corporation. In 2019 alone, Jumpstart opened four inclusive
Jumpstart laygrounds – bringing our total to seven across Canada – awarded two accessible infrastructure grants, and
helped approximately 8,600 kids with disabilities get in the game through the Para Sport Jumpstart Fund. Jumpstart has
helped 2.2 million Canadian kids and counting get in the game since 2005.
INVESTOR PRESENTATION | JUMPSTART CHARITIES 26Delivering Solid Results
STORES AND RETAIL REVENUE FINANCIAL SERVICES GROSS AVERAGE NORMALIZED DILUTED EPS AND DIVIDENDS PER SHARE
Retail revenue ($ per share) (Dividends $ per share)
($ billions) (Number of Stores)
ACCOUNTS RECEIVABLE
($ millions)
INVESTOR PRESENTATION | DELIVERING RESULTS 27Balanced Capital Capital Allocation Framework
Allocation 1. Invest in the business
2. Maintain investment grade credit rating
While CTC remains committed to deliver 3. Repurchase shares/grow dividend (target payout ratio of
long-term sustainable growth there is 30% - 40%)
considerable uncertainty regarding the 4. Inorganic growth opportunities
duration and severity of COVID-19 and its
impact on the economy, consumer demand
and the Company’s operations.
As a result, Management is withdrawing its
previously disclosed three-year (2018 -
2020) financial aspirations and its previously
disclosed 2020 expectations with respect to
its capital expenditures and pausing share
repurchases.
CTC is focused on maintaining a strong cash
position and financial flexibility.
* Excluding REIT capital **Buybacks in excess of anti-dilutive buybacks
INVESTOR PRESENTATION | CAPITAL ALLOCATION 28Returning Value to
Shareholders ANNUAL DIVIDENDS
17.3% CAGR
(C$)
Policy to maintain dividend payments equal to 30% to
4.15
40% of the prior year’s normalized basic net earnings.
3.60
Member of S&P/TSX Canadian Dividend Aristocrats
index.
2.60
2.30
2.10
1.88
1.40
1.20
1.10
0.84
0.84
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
INVESTOR PRESENTATION | RETURNING VALUE TO SHAREHOLDERS 29Summary
EXTENSIVE REACH AND SCALE OF BUSINESS DIFFERENTIATORS DELIVERING STRONG FINANCIAL RESULTS
• The vast majority of Canadians reside • More than 500 Associate Canadian • Well positioned to compete for the
within 15 minutes of a Canadian Tire Tire Dealers in local communities long-term
store. across Canada
• Invested in both the store network and
• More than 9 million Canadians are active • Attracting and retaining world-class digital growth, driving topline growth as
Triangle Rewards members and 2.1 talent to grow business well as making CTC one of Canada’s
million active credit cardholders. largest eCommerce players.
• Experienced leadership in key
• Across our family of companies, we are functions across the Company
creating a seamless and integrated
• Continued focus on being a brand- $14.5 billion in revenue
shopping experience of differentiated
led organization
brands, connected by Triangle Rewards,
Over $4 billion in Owned Brands sales
working together to prepare Canadians • Culture is a key component driving
for the Jobs and Joys of a Lifetime in CTC towards our goal to be the #1 Financial Services GAAR of $6.3 billion
Canada and rewarding them for choosing Retail Brand in Canada by 2022.
(All figures disclosure are as of Q4 2019)
Canadian Tire.
INVESTOR PRESENTATION | SUMMARY 30Thank You
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