Rémi Marcoux Steps Down as Chairman of TranscontinentalFebruary 16, 2012
“Rémi is giving us a company with assets which place it in an excellent position for the future: sustained growth, loyal and satisfied customers, a strong corporate culture based on the values of innovation, respect, performance and teamwork, a low debt level, a commitment to sustainable and responsible development and excellent corporate governance,” she said.
The company’s new chair also commented on the main challenges facing Transcontinental going forward. “We must continue our transformation by developing digital products and services that are aligned with the marketing strategies of our customers; we must create value for our shareholders, both by leveraging our assets and by making strategic investments; and we must broaden our reputation as a company that acts responsibly in its community and is true to its values.”
Addressing the shareholders’ meeting, François Olivier, president and CEO, presented the highlights of fiscal 2011 in these terms: “I would describe 2011 as a year of major change at Transcontinental. We have redefined the basis of our future development. Whether this involved modernizing our values, positioning and our new branding; or setting up programs to promote innovation; or markedly improving the performance of our print network; or announcing the acquisition of Quad/Graphics Canada; or amalgamating our Media and Interactive sectors, we have had a single aim throughout: to serve our customers better.”
Olivier also emphasized that print is still a highly effective medium, since 46 percent of advertising spending goes to print. In the printing sector, TC Transcontinental Printing benefited from the more than $700 million in capital investments in recent years, particularly in the new hybrid press platform, which led to the extension of a number of contracts and the awarding of new ones.
The company also proceeded with the acquisition of the shares of Quad/Graphics Canada. Having received the authorization of the Competition Bureau, this transaction, which will close in the near future, should generate an additional $40 million in operating income in the next 12 to 24 months.
The activities of the media and interactive sectors were amalgamated under TC Media in order to present an integrated offering that would help customers reach their target consumers more easily through a mix of media, digital and interactive solutions. The company has considerably increased its Web traffic, now reaching close to one-half of all Canadian Web users through its more than 1,000 websites.
New websites and community newspapers were launched, and weekly papers and a publishing house were acquired. Digital and interactive marketing operations account for about 10 percent of TC Transcontinental’s consolidated revenues, or close to $200 million.
Olivier also noted the important additions to the management team of Katya Laviolette, corporate vice president, Human Resources; Nelson Gentiletti, chief financial and development officer; and Alain Gignac, chief marketing activation officer.
Adjustment in the Corporate Governance Structure
Given the change in the chair of the board, the board made certain adjustments to corporate governance, strengthening the role and responsibilities of Senior Director Richard Fortin.Fortin will chair the meetings of the independent directors and ensure that the board functions independently from management. He will also evaluate the performance of the president and CEO and will recommend compensation levels jointly with the chair of the Human Resources and Compensation Committee, which is composed exclusively of independent directors.
About TC Transcontinental
TC Transcontinental creates marketing products and services that allow businesses to attract, reach and retain their target customers. The Corporation is the largest printer in Canada and the fourth-largest in North America. As the leading publisher of consumer magazines and French-language educational resources, and of community newspapers in Quebec and the Atlantic provinces, it is also one of Canada's top media groups. TC Transcontinental is also the leading door-to-door distributor of advertising material in Canada through its celebrated Publisac network in Quebec and Targeo in the rest of Canada.