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Montreal, April 30, 2007 – Speaking to the general meeting
of the Web Offset Association at their 55th annual convention
in Toronto, Luc Desjardins, Transcontinental’s president
and CEO, challenged what he called “the myth of an endangered
industry,” and spoke instead of an industry that “like
every other, is undergoing a rapid and profound transformation.”
Mr. Desjardins began by listing the challenges facing the
printing industry: the penetration of the Internet, and digital
technology in general, into daily life; the rise of new values,
with the primary one being concern for the environment; the
new face of globalization, with the rise of emerging economies
such as China; and the continuation of the printing industry’s
intense consolidation in coming years.
“These changes have been happening in almost every major
industry,” he said. “Bread isn’t made the
way it was 20 years ago, and even the types of bread have
changed: just think of the proliferation of “healthy”
or whole-fibre products. Compare the automated and digital
services of today’s banks to those of the 1980s. The
same goes for the publishing of books, magazines and newspapers.
Our industry is no exception.”
 He
then talked about Transcontinental’s positioning with
respect to these challenges and to the major trends of the
next few years: targeted expansion internationally, i.e. in
the United States and Mexico, where most future growth will
occur; continuation of a niche-based strategy where Transcontinental
aims to become “the best in a certain number of fast-growing
niches where we have expertise and a competitive edge, such
as direct marketing, where we are already a major player in
the United States”; the rise of one-to-one advertising;
the trend for companies to reduce the number of suppliers
they deal with and to demand a broader range of products and
services from those they retain.
“Our sales approach has been based on this premise for
the past several years, particularly in our cross-selling
initiatives, as has the development of our outsourcing model.
For our direct marketing clients in the United States, one
of the services we offer is to take charge of their entire
campaign, from A to Z. In Canada, major retailers have transferred
their premedia services to us; once their content has been
digitized by us, they can use it on other platforms. We also
offer custom publishing. Once you are part of the customer’s
value chain, you become a true partner. What we achieve, in
effect, is maximum customer loyalty. That’s the key
to it all.”
He went on to describe the unique newspaper-printing outsourcing
model that sets Transcontinental apart in North America and
recently resulted in a 15-year, billion U.S. dollar contract
to print the San Francisco Chronicle starting in the
spring of 2009.
“This model was developed in Canada in our work with,
among others, The Globe and Mail and La Presse.
In 2005, we started a 10-year contract to print The New
York Times for the Ontario and Upstate New York markets.
The very high level of satisfaction and the prestige of our
client won us great credibility with U.S. newspaper publishers.
Today, we are in various stages of talks with several major
players.”
Mr. Desjardins ended with a word about the most important
investment a company can make: investing in its people.
“It really is the people who make the difference!”
he said. “The best strategy will go nowhere if we don’t
have the people to carry it out… people who are motivated,
dedicated, qualified, and who can adapt quickly to new technologies
and work as a team. Also, people who are guided by leaders
who can motivate, develop the talent around them, communicate
the company’s vision and build a climate of trust. That’s
why our Evolution 2010 business project puts such strong
emphasis on developing leadership at every level of the company.”
To read the full text of the speech,
visit Transcontinental’s home page at www.transcontinental.com.
Profile
The largest printer in Canada and sixth-largest in North America,
Transcontinental also ranks as the country’s leading
publisher of consumer magazines and French-language educational
resources, and its second-largest community newspaper publisher.
Transcontinental distinguishes itself by creating strategic
partnerships that integrate the company into its customers’
value chain, notably through its unique newspaper printing
outsourcing model and its value-added services. From mass
to highly personalized marketing, the company offers its clients
integrated solutions which include a continent-leading direct
marketing offering, a diverse digital platform and a door-to-door
advertising material distribution network. Transcontinental
is a company whose values, including respect, innovation and
integrity, are central to its operation. Transcontinental
(TSX: TCL.A, TCL.B) has more than 14,500 employees in Canada,
the United States and Mexico, and reported revenues of C$2.3
billion in 2006.
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For information:
Media
Pierre Leduc
Media Relations
Telephone: (613) 241-6000, ext.: 235
Cell: (416) 859-8562
pleduc@tsa.ca
Financial Community
Jennifer F. McCaughey
Director, Investor Relations
Transcontinental Inc.
Telephone: (514) 954-4000
jennifer.mccaughey@transcontinental.ca
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