Canadian Tire Corporation (CTC) 2024年年度報告「TSX」.pdf

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1、2024 REPORT TO SHAREHOLDERS Canadian Tire CorporationCANADIAN TIRE CORPORATION|2024 REPORT TO SHAREHOLDERS2024 REPORT TO SHAREHOLDERS Canadian Tire CorporationCTC|2024 REPORT TO SHAREHOLDERS01MESSAGE FROM THE CHAIRMAN OF THE BOARDCHAIRMAN OF THE BOARDMessage from J.Michael OwensDEAR SHAREHOLDERS,As

2、we reflect on 2024,one thing is clear:the retail landscape in Canada isundergoing a profound and permanent transformation.The competitivepressures we once viewed as cyclical have become the norm.Global mega-competitors continue to intensify their presence in our space,consumerexpectations are evolvi

3、ng rapidly,and economic uncertainties persist.Thosewho wait for perfect conditions in which to compete will be left behind.Thus,for CTC,2024 was a reset year where the management team skillfullybalanced performing in the present while preparing for the future.This page has been left blank intentiona

4、lly.2024 REPORT TO SHAREHOLDERS Canadian Tire CorporationCTC|2024 REPORT TO SHAREHOLDERS01MESSAGE FROM THE CHAIRMAN OF THE BOARDCHAIRMAN OF THE BOARD Message from J.Michael OwensDEAR SHAREHOLDERS,As we reflect on 2024,one thing is clear:the retail landscape in Canada is undergoing a profound and per

5、manent transformation.The competitive pressures we once viewed as cyclical have become the norm.Global mega-competitors continue to intensify their presence in our space,consumer expectations are evolving rapidly,and economic uncertainties persist.Those who wait for perfect conditions in which to co

6、mpete will be left behind.Thus,for CTC,2024 was a reset year where the management team skillfully balanced performing in the present while preparing for the future.CTC|2024 REPORT TO SHAREHOLDERS02I commend Greg Hicks and his management team for their steady hand in 2024 and significantly improved f

7、inancial performance over 2023.Against a tough macroeconomic backdrop,their efforts strengthened CTCs position and delivered strong shareholder returns.Despite their progress,they remain acutely aware of the sector challenges and are preparing accordingly.Together,management and the Board have discu

8、ssed the tough question of what it takes to be a top Canadian retailer in this highly competitive,rapidly evolving environment.We challenged management to examine whether CTC has the talent,assets,and core capabilities to compete with both traditional and digital-first retailers.Management met this

9、call,and through their rigorous evaluation emerged True North:CTCs bold plan to transform in a transforming world.Through their True North strategy,management aims to amplify CTCs differentiator customer relationships while driving higher performance and,ultimately,accelerated shareholder value.Thei

10、r strategic capital allocation prioritizes customer relationships,retail performance,a symbiotic loyalty system,and a restructured organization with agility and scale.True North is about more than incremental improvement;it is about positioning CTC for sustainable,long-term success.As a Board,we ful

11、ly endorse managements True North strategy and recognize our responsibility in shaping its success.By building a Board comprising Directors with the skills for today and tomorrow,we are well-positioned to provide the insight and oversight required to support the leadership teams performance while th

12、ey transform the business.I thank my fellow Directors for their commitment to this important endeavour.I also want to thank Martha and Owen Billes whose family has built a strong,trusted Canadian company;as we move forward,we will continue to balance the power of this legacy with the promise of new

13、opportunities.Finally,to our Shareholders:thank you for your continued trust in us.We look forward to your participation at our Annual Meeting of Shareholders.Sincerely,J.Michael OwensCHAIRMAN,BOARD OF DIRECTORS,CANADIAN TIRE CORPORATIONMESSAGE FROM THE CHAIRMAN OF THE BOARDTrue North is about more

14、than incremental improvement;it is about positioning CTC for sustainable,long-term success.CTC|2024 REPORT TO SHAREHOLDERS03MESSAGE FROM THE PRESIDENT AND CEOPRESIDENT AND CHIEF EXECUTIVE OFFICERMessage from Greg HicksDEAR SHAREHOLDERS,As we entered 2024,we anticipated it would be a tough year,and o

15、ur clear focushelped us navigate one of the most challenging consumer environments in recenthistory.Inflation-weary consumers remained cautious despite interest rate cuts,while geopolitical tensions amplified the complexity.Amid these challenges,weleveraged existing strengths,seized new opportunitie

16、s,and identified furtherefficiencies.Ultimately,by controlling the controllables,investing in our future,and remaining fiercely committed to our Brand Purpose We Are Here to MakeLife in Canada Better we ended the year stronger than we began.CTC|2024 REPORT TO SHAREHOLDERS03MESSAGE FROM THE PRESIDENT

17、 AND CEOPRESIDENT AND CHIEF EXECUTIVE OFFICER Message from Greg HicksDEAR SHAREHOLDERS,As we entered 2024,we anticipated it would be a tough year,and our clear focus helped us navigate one of the most challenging consumer environments in recent history.Inflation-weary consumers remained cautious des

18、pite interest rate cuts,while geopolitical tensions amplified the complexity.Amid these challenges,we leveraged existing strengths,seized new opportunities,and identified further efficiencies.Ultimately,by controlling the controllables,investing in our future,and remaining fiercely committed to our

19、Brand Purpose We Are Here to Make Life in Canada Better we ended the year stronger than we began.CTC|2024 REPORT TO SHAREHOLDERS04MESSAGE FROM THE PRESIDENT AND CEOIn 2024,we improved the customer experience by enhancing our omnichannel shopping capabilities.Our One Digital Platform,in-store technol

20、ogy upgrades,and refreshed and expanded stores delivered a more seamless customer experience.Leveraging insights from our rich,first-party data,we deepened connections with Triangle members,adding everyday value through our partnership with Petro-Canada.Our first major multi-banner loyalty campaign,

21、Max Stack,drove record membership growth and reinforced Triangle as the backbone of our retail ecosystem.Furthermore,through our choice to retain full ownership of Canadian Tire Financial Services(CTFS),we strengthened our ability to drive sales and deliver value to loyalty members and shareholders.

22、We also made Canadian Tire Corporation(CTC)more tech-enabled and efficient.We advanced our supply chain modernization,completing upgrades at our Calgary and Montreal distribution centres and optimizing our capacity by selling the redundant Brampton facility.Following the success of our internal chat

23、bot,ChatCTC,we launched CeeTee,our AI-powered shopping assistant.CeeTee has already proven its worth:customers using it are far more likely to recommend and purchase products,showcasing how AI can enhance the shopping journey.Furthermore,we have built CeeTee as a scalable,proprietary platform to ena

24、ble hyper-personalized,convenient,and engaging shopping across all of our retail banners.Our efforts and progress are tied to our commitment to Canadians.In 2024,we were named the most trustworthy Canadian company by Statista and Newsweek and the number one Canadian retailer in the inaugural Canadia

25、n Harris Reputation Poll.For the third consecutive year,Canadian Tire Retail(CTR)maintained its position as the number one most trusted brand within its peer set in Canada on our Brand Trust Index,which we measure by partnering with a globally renowned research firm.This recognition speaks not only

26、to Canadians trust in our products,services,and shopping experiences but also in our community support.In 2024,Canadian Tire Jumpstart Charities reached the impressive milestone of four million kids helped since 2005.Through our Womens Sport Initiative,we continued to advance gender parity in sports

27、.Across the country,Dealers and frontline employees stepped up for their communities through everything from local fundraisers to disaster relief.I thank them for being there for Canadians especially when they need us most.Reflecting on the past three years,weve made good progress advancing our busi

28、ness through our Better Connected strategy.Since 2022,we have invested$1.8 billion to upgrade our retail omnichannel network,supply chain,data,and technology.We refreshed a quarter of our CTR stores,bolstered our digital capabilities,and drove more efficiency in our supply chain operations.We are ha

29、rnessing the power of the Triangle and partnering for scale,growing our total active membership to 11.7 million in 2024,and our active registered members to 9.2 million.Together,these achievements create a springboard for our next horizon strategy,True North,through which we will engineer a new chap

30、ter of prosperity for this iconic Canadian brand.CTC|2024 REPORT TO SHAREHOLDERS04MESSAGE FROM THE PRESIDENT AND CEOIn 2024,we improved the customer experience by enhancing our omnichannel shopping capabilities.Our One Digital Platform,in-store technology upgrades,and refreshed and expanded stores d

31、elivered a more seamless customer experience.Leveraging insights from our rich,first-party data,we deepened connections with Triangle members,adding everyday value through our partnership with Petro-Canada.Our first major multi-banner loyalty campaign,Max Stack,drove record membership growth and rei

32、nforced Triangle as the backbone of our retail ecosystem.Furthermore,through our choice to retain full ownership of Canadian Tire Financial Services(CTFS),we strengthened our ability to drive sales and deliver value to loyalty members and shareholders.We also made Canadian Tire Corporation(CTC)more

33、tech-enabled and efficient.We advanced our supply chain modernization,completing upgrades at our Calgary and Montreal distribution centres and optimizing our capacity by selling the redundant Brampton facility.Following the success of our internal chatbot,ChatCTC,we launched CeeTee,our AI-powered sh

34、opping assistant.CeeTee has already proven its worth:customers using it are far more likely to recommend and purchase products,showcasing how AI can enhance the shopping journey.Furthermore,we have built CeeTee as a scalable,proprietary platform to enable hyper-personalized,convenient,and engaging s

35、hopping across all of our retail banners.Our efforts and progress are tied to our commitment to Canadians.In 2024,we were named the most trustworthy Canadian company by Statista and Newsweek and the number one Canadian retailer in the inaugural Canadian Harris Reputation Poll.For the third consecuti

36、ve year,Canadian Tire Retail(CTR)maintained its position as the number one most trusted brand within its peer set in Canada on our Brand Trust Index,which we measure by partnering with a globally renowned research firm.This recognition speaks not only to Canadians trust in our products,services,and

37、shopping experiences but also in our community support.In 2024,Canadian Tire Jumpstart Charities reached the impressive milestone of four million kids helped since 2005.Through our Womens Sport Initiative,we continued to advance gender parity in sports.Across the country,Dealers and frontline employ

38、ees stepped up for their communities through everything from local fundraisers to disaster relief.I thank them for being there for Canadians especially when they need us most.Reflecting on the past three years,weve made good progress advancing our business through our Better Connected strategy.Since

39、 2022,we have invested$1.8 billion to upgrade our retail omnichannel network,supply chain,data,and technology.We refreshed a quarter of our CTR stores,bolstered our digital capabilities,and drove more efficiency in our supply chain operations.We are harnessing the power of the Triangle and partnerin

40、g for scale,growing our total active membership to 11.7 million in 2024,and our active registered members to 9.2 million.Together,these achievements create a springboard for our next horizon strategy,True North,through which we will engineer a new chapter of prosperity for this iconic Canadian brand

41、.CTC|2024 REPORT TO SHAREHOLDERS05True North is a transformation strategy that builds on our strengths and the enlightenment we have gained in recent years.We now have deeper customer connections and insights,and we are equipped with the right technologies,including AI,for a new era of retail.And we

42、 are putting these capabilities to work.By reorganizing our structures and processes,we will introduce agility and scale and,over time,will generate leading shareholder value.There is no question that we are transforming and building our business in complicated times.While we see many consumer and e

43、conomic green shoots,we also recognize and understand the encroaching competitive and global trade threats.In these past years,we have developed a hard-earned resilience and the capacity to navigate structural uncertainty,which gives us the conviction to invest in our company and Canada.My confidenc

44、e in our future is rooted in those who stand by CTC:our Dealers,team members,customers,and communities.Thank you to Mike Owens and the Board of Directors for their guidance and Martha and Owen Billes for their unwavering support.And to our valued Shareholders:thank you for being part of this journey

45、.In 2024,we returned close to$360 million of capital to you through dividends and announced our fifteenth consecutive dividend increase;as we move forward,we are committed to driving even more value for you by transforming CTC.While challenges persist,our commitment to making life in Canada better i

46、s iron-clad.This is not a tagline.This defines our Company.Our transformation is underway,and we are inspired by the opportunity to create a more prosperous future for all Canadians.Best,Greg Hicks PRESIDENT AND CHIEF EXECUTIVE OFFICER,CANADIAN TIRE CORPORATIONMESSAGE FROM THE PRESIDENT AND CEOTrue

47、North is a transformation strategy that builds on our strengths and the enlightenment we have gained in recent years.Managements Discussion and Analysis AND Consolidated Financial StatementsManagements Discussion and Analysis AND Consolidated Financial StatementsManagements Discussion and AnalysisCa

48、nadian Tire Corporation,Limited Fourth Quarter and Full-Year 2024Managements Discussion and AnalysisCanadian Tire Corporation,Limited Fourth Quarter and Full-Year 2024Table of Contents 1.0PREFACE1 2.0COMPANY AND INDUSTRY OVERVIEW3 3.0HISTORICAL PERFORMANCE HIGHLIGHTS4 4.0COMPANY STRATEGY6 5.0FINANCI

49、AL PERFORMANCE7 5.1 Consolidated Financial Performance7 5.2 Retail Segment Performance12 5.3 Financial Services Segment Performance19 5.4 CT REIT Segment Performance23 6.0BALANCE SHEET ANALYSIS,LIQUIDITY,AND CAPITAL RESOURCES26 7.0EQUITY35 8.0TAX MATTERS36 9.0ACCOUNTING POLICIES AND ESTIMATES36 10.0

50、NON-GAAP FINANCIAL MEASURES AND RATIOS39 11.0RISKS AND RISK MANAGEMENT56 12.0INTERNAL CONTROLS AND PROCEDURES66 13.0ENVIRONMENTAL,SOCIAL,AND GOVERNANCE67 14.0CAUTION REGARDING FORWARD-LOOKING INFORMATION67 15.0RELATED PARTIES691.0 Preface 1.1 Definitions In this document,the terms“we”,“us”,“our”,“Co

51、mpany”,“Canadian Tire Corporation”,“CTC”,and“Corporation”refer to Canadian Tire Corporation,Limited,on a consolidated basis.This document also refers to the Corporations three reportable operating segments:the“Retail segment”,the“Financial Services segment”,and the“CT REIT segment”.The financial res

52、ults for the Retail segment are delivered by the businesses operated by the Company under the Companys retail banners,which include Canadian Tire,PartSource,Petroleum,Canadian Tire Gas+,Party City,Marks,Helly Hansen,SportChek,Sports Experts,Atmosphere,Pro Hockey Life(PHL),Sports Rousseau,and Hockey

53、Experts.In this document:“Canadian Tire”refers to the general merchandise retail and services business carried on under the Canadian Tire name and trademarks.“Canadian Tire Gas+”or“Petroleum”refers to the retail petroleum business carried on under the Canadian Tire Gas+name and trademarks,in additio

54、n to the Petro-Canada branded gas stations owned by CTC.“Canadian Tire Retail”or“CTR”refer to the general merchandise retail and services businesses carried on under the Canadian Tire,PartSource,PHL,and Party City names and trademarks.“CT REIT”refers to the business carried on by CT Real Estate Inve

55、stment Trust and its subsidiaries,including CT REIT Limited Partnership(CT REIT LP).“Financial Services”refers to the business carried on by the Companys Financial Services subsidiaries,namely Canadian Tire Bank(CTB or the Bank)and CTFS Bermuda Ltd.(CTFS Bermuda),a Bermuda reinsurance company.“Franc

56、hise Trust”refers to a legal entity sponsored by a third-party bank that originates and services loans to certain Dealers for their purchases of inventory and fixed assets(Dealer loans).“Helly Hansen”refers to the international wholesale and retail businesses that operate under the Helly Hansen and

57、Musto names and trademarks.“Jumpstart”refers to Canadian Tire Jumpstart Charities.“Marks”refers to the retail and commercial wholesale businesses carried on by Marks Work Wearhouse Ltd.under the Marks,Lquipeur,Marks WorkPro,Lquipeur Pro,Marks Commercial and Lquipeur Commercial names and trademarks.“

58、Owned Brands”refers to brands owned by the Company and managed within the Retail segment.“PartSource stores”refers to stores that operate under the PartSource name and trademarks.“Party City”refers to the party supply business carried on under the Party City name and trademarks in Canada.“SportChek”

59、refers to the retail business carried on by FGL Sports Ltd.under the SportChek,Sports Experts,Atmosphere,Sports Rousseau,Hockey Experts,and LEntrept du Hockey names and trademarks,unless the context requires otherwise.Other terms that are capitalized in this document are defined the first time they

60、are used.MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 1This document contains trade names,trademarks,and service marks of CTC and other organizations,all of which are the property of their respective owners.Solely for convenience,the trade names,trademark

61、s,and service marks referred to herein appear without the or TM symbol.1.2 Forward-Looking Information This Managements Discussion and Analysis(MD&A)contains information that may constitute forward-looking information within the meaning of applicable securities laws.Forward-looking information provi

62、des insights regarding Managements current expectations and plans and allows investors and others to better understand the Companys anticipated financial position,results of operations and operating environment.Readers are cautioned that such information may not be appropriate for other purposes.Alt

63、hough the Company believes that the forward-looking information in this MD&A is based on information,assumptions and beliefs that are current,reasonable,and complete,such information is necessarily subject to a number of business,economic,competitive and other risk factors that could cause actual re

64、sults to differ materially from Managements expectations and plans as set forth in such forward-looking information.The Company cannot provide assurance that any financial or operational performance,plans,or aspirations forecast will actually be achieved or,if achieved,will result in an increase in

65、the Companys share price.Refer to section 14.0 in this MD&A for a more detailed discussion of the Companys use of forward-looking information.1.3 Review and Approval by the Board of Directors The Board of Directors,on the recommendation of its Audit Committee,approved the contents of this MD&A on Fe

66、bruary 12,2025.1.4 Quarterly and Annual Comparisons in the MD&A Unless otherwise indicated,all comparisons of results for Q4 2024(13 weeks ended December 28,2024)are compared against results for Q4 2023(13 weeks ended December 30,2023)and all comparisons of results for the full-year 2024(52 weeks en

67、ded December 28,2024)are compared against results for the full-year 2023(52 weeks ended December 30,2023).1.5 Accounting Framework The annual consolidated financial statements have been prepared in accordance with IFRS Accounting Standards,also referred to as Generally Accepted Accounting Principles

68、(GAAP),using the accounting policies described in Note 3 of the 2024 Consolidated Financial Statements.1.6 Accounting Estimates and Assumptions The preparation of the Companys consolidated financial statements that conforms to IFRS Accounting Standards as issued by the International Accounting Stand

69、ards Board(IASB),requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported revenue and expenses during the reporting period.Refer to

70、section 9.1 in this MD&A for further information.1.7 Key Performance Measures The Company uses certain key performance measures,which provide useful information to both Management and investors in measuring the financial performance and financial condition of the Company.These measures are classifie

71、d as GAAP measures,non-GAAP financial measures,non-GAAP ratios,capital management measures,and supplementary financial measures,as well as non-financial measures.Readers are cautioned that the non-GAAP financial measures have no standardized meanings under IFRS Accounting Standards and,therefore,may

72、 not be comparable to similar terms used by other companies.Refer to section 10.0 for additional information on these metrics.Many of the non-GAAP financial measures in this document are adjusted to normalize the results for certain activities Management does not believe reflect the ongoing business

73、.Unless otherwise noted,analysis of changes in normalized results applies equally to changes in the reported results.1.8 Rounding and Percentages Rounded numbers are used throughout the MD&A.All year-over-year percentage changes are calculated on whole dollar amounts except in the presentation of Ba

74、sic and Diluted earnings per share(EPS),in which year-over-year percentage changes are based on fractional amounts.MANAGEMENTS DISCUSSION AND ANALYSIS 2 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 2.0 Company and Industry Overview Canadian Tire Corporation,Limited(TSX:CTC.A)(TSX:CTC)and it

75、s subsidiaries,are a group of companies that include a Retail segment,a Financial Services segment and CT REIT.Our retail business is led by Canadian Tire,which was founded in 1922 and provides Canadians with products for life in Canada across its Automotive,Fixing,Living,Playing,and Seasonal&Garden

76、ing divisions.PartSource,Canadian Tire Gas+,Party City and Pro Hockey Life are key parts of the Companys retail network.The Retail segment also includes Marks,Marks WorkPro,a leading source of casual and industrial wear;and SportChek,Hockey Experts,Sports Experts and Atmosphere,which offer the best

77、activewear brands.CTCs 1,700 retail and gasoline outlets are supported and strengthened by our Financial Services segment and the tens of thousands of people employed across Canada and around the world by the Company,and its Canadian Tire Associate Dealers(Dealers),franchisees,and petroleum retailer

78、s.In addition,Canadian Tire Corporation owns Helly Hansen,a leading global brand in sportswear and workwear based in Oslo,Norway,whose results are included in the Retail segment.A description of the Companys business and select core capabilities can be found in the Companys 2024 Annual Information F

79、orm(AIF),including section 2“Description of the Business”and on the Companys Corporate(https:/corp.canadiantire.ca)and Investor Relations(https:/corp.canadiantire.ca/investors)websites.MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 33.0 Historical Performan

80、ce Highlights 3.1 Select Annual Consolidated Financial Trends The following table provides selected annual consolidated financial and non-financial information for the last three fiscal periods.The financial information has been prepared in accordance with IFRS Accounting Standards.(C$in millions,ex

81、cept per share amounts and number of retail locations)202420232022 Consolidated Comparable sales growth1,2(1.7)%(2.9)%2.7%Retail sales,excluding Petroleum2$15,802.4$16,073.3$16,580.7 Revenue16,357.8 16,656.5 17,810.6 Net income971.9 339.1 1,182.8 Normalized net income43787.7 716.1 1,250.9 Basic EPS1

82、5.96 3.79 17.70 Diluted EPS15.92 3.78 17.60 Normalized diluted EPS4312.62 10.37 18.75 Total assets22,240.6 21,978.3 22,102.3 Total non-current financial liabilities8,119.6 8,345.1 7,794.8 Financial Services gross average accounts receivable (total portfolio)27,373.6 7,141.5 6,654.2 Number of retail

83、locations1,704 1,695 1,704 Cash dividends declared per share$7.0250$6.9250$6.2750 Stock price(CTC.A)5 152.87 140.72 141.50 1 Does not include Helly Hansen.2 For further information about this measure see section 10.2 of this MD&A.3 Refer to section 5.1.1 in this MD&A for a description of normalizing

84、 items.4 This is a non-GAAP financial measure.For further information and a detailed reconciliation see section 10.1.1 of this MD&A.5 Closing share price as of the date closest to the Companys fiscal year end.MANAGEMENTS DISCUSSION AND ANALYSIS 4 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS

85、 REVENUE BY BANNER/UNIT*($millions)20222023202405,00010,00015,00020,000Canadian Tire RetailFinancial ServicesSportChekMarksPetroleum*Excludes CT REITHelly HansenFINANCIAL SERVICES GROSS AVERAGE ACCOUNTS RECEIVABLE AND ALLOWANCE RATE($millions)(Allowance%rate)12.6%12.5%12.4%2022202320245,5005,7506,00

86、06,2506,5006,7507,0007,2507,5007,7508,0008,2508,50010.0%11.0%12.0%13.0%GAARAllowance RateSTORES AND RETAIL REVENUE Retail revenue($billions)Number of stores$16.4$15.2$14.82022202320245678910111213141516171660168017001720174017601780Store countRetail revenueNORMALIZED DILUTED EPS AND DIVIDENDS PER SH

87、ARE($per share)(Dividends$per share)6.27506.92507.0250202220232024$5$10$15$20$25$30$0$1$2$3$4$5$6$7$8Normalized diluted EPSDividends per shareMANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 54.0 Company Strategy Better Connected Strategy Since 2022,the Compa

88、ny has been executing its Better Connected strategy,modernizing core retail foundational elements by investing in the business,with total Operating Capital Expenditures of$1.8 billion.Over that time,the company has also returned$1.9 billion to shareholders,by way of share repurchases and dividends p

89、aid.1The third year of the Companys Better Connected strategy has seen CTC:Roll out further CTR store investment projects,taking the total to close to a quarter of the Companys 502 CTR stores since 2022.Combined with new store formats and refreshed stores at other banners,CTC has added an incrementa

90、l 1 million of retail square feet across its banners over the same period.The Company also drove value by monetizing redundant real estate assets during 2024.Bolster its digital capabilities,better connecting digital and physical channels and supporting$1.1 billion in annual eCommerce sales.These en

91、hancements have contributed to an enhanced customer experience,as demonstrated by improved customer Net Promoter Scores(NPS).2 Continue to strengthen the Owned Brands portfolio across our banners,growing and elevating our largest brands such as Motomaster,which delivered double-digit growth in 2024.

92、Since 2022,an additional three brands have achieved annual sales of over$100 million,taking the total to 17.Owned Brands continued to deliver a significant margin differential vis a vis National Brands.Customer attachment to these brands remains strong.Grow the base of active registered Triangle mem

93、bers,from 7.8 million at the end of 2021 to 9.2 million at the end of 2024.Direct scan Loyalty Penetration2 is up by 480 bps,delivering even stronger first party data on which to build.Continue to transform its supply chain network and invest in IT network modernization and resilience.Supply chain i

94、nvestments have included optimized capacity utilization and automated fulfilment at existing distribution centres(DC)and regional capacity expansion in Western Canada with a new DC in Metro Vancouver,set to open in 2025.1 This is a non-GAAP financial measure.For further information and a detailed re

95、conciliation see section 10.1 of this MD&A.2 For further information about this measure see section 10.2 of this MD&A.MANAGEMENTS DISCUSSION AND ANALYSIS 6 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 5.0 Financial Performance 5.1 Consolidated Financial Performance 5.1.1 Consolidated Financ

96、ial Results(C$in millions,except where noted)Q4 2024Q4 2023Change20242023Change Retail sales1$5,380.5$5,323.4 1.1%$18,177.7$18,504.1 (1.8)%Revenue$4,507.3$4,443.0 1.5%$16,357.8$16,656.5 (1.8)%Gross margin dollars$1,529.6$1,536.8 (0.5)%$5,618.7$5,703.6 (1.5)%Gross margin rate1 33.9%34.6%(65)bps 34.3%

97、34.2%11 bps Other expense(income)$(243.0)$3.2 NM2$(291.8)$34.4 NM2 Selling,general and administrative expenses967.7 983.5 (1.6)%3,553.3 3,675.7 (3.3)%Depreciation and amortization192.2 196.3 (2.1)%762.2 771.2 (1.2)%Net finance costs(income)83.6 90.8 (7.9)%349.0 321.5 8.6%Change in fair value of rede

98、emable financial instrument NM2 328.0 NM2 Income before income taxes$529.1$263.0 101.2%$1,246.0$572.8 117.5%Income tax expense(recovery)97.4 65.8 48.0%274.1 233.7 17.3%Effective tax rate1 18.4%25.0%22.0%40.8%Net income$431.7$197.2 119.0%$971.9$339.1 186.6%Net income attributable to:Shareholders of C

99、anadian Tire Corporation$411.5$172.5 138.6%$887.7$213.3 316.2%Non-controlling interests20.2 24.7 (18.0)%84.2 125.8 (33.1)%$431.7$197.2 119.0%$971.9$339.1 186.6%Basic EPS$7.40$3.10 NM2$15.96$3.79 NM2 Diluted EPS$7.37$3.09 NM2$15.92$3.78 NM2 Weighted average number of Common and Class A Non-Voting Sha

100、res outstanding:Basic55,624,885 55,623,542%55,625,884 56,228,680(1.1)%Diluted55,827,453 55,761,553 0.1%55,766,848 56,457,450(1.2)%1 For further information about this measure see section 10.2 of this MD&A.2 Not meaningful.Non-Controlling Interests The following table outlines the net income attribut

101、able to the Companys non-controlling interests.For additional details,refer to Note 15 to the Companys 2024 Consolidated Financial Statements.(C$in millions)Q4 2024Q4 202320242023 Financial Services1 Non-controlling interest 0.0%(2023 0.0%)$5.5$48.4 CT REIT Non-controlling interest 31.6%(2023 31.6%)

102、18.9 18.3 78.0 72.5 Retail segment subsidiary Non-controlling interest 50.0%(2023 50.0%)1.3 0.9 6.2 4.9 Net income attributable to non-controlling interests$20.2$24.7$84.2$125.8 1 During the fourth quarter of 2023,the Company completed the repurchase of Scotiabanks 20 percent non-controlling interes

103、t in CTFS Holdings Limited(CTFS).MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 7Normalizing Items In the fourth quarter of 2024,the Company sold a property in Brampton,Ontario(the Brampton DC),which was no longer necessary for CTCs distribution centre requ

104、irements as a result of strategic supply chain investments and consolidation in recent years.The transaction resulted in a gain in Other expense(income)of$241.0 million,or$222.9 million net of an inventory write-down of$18.1 million to expedite a reduction of inventory and facilitate the sale,which

105、is recorded in Cost of producing revenue.The Company also completed its strategic review of its Financial Services business,which resulted in$18.1 million in Selling,general and administrative expenses(SG&A),of which$8.7 million related to transaction costs and is recorded in the Retail segment and$

106、9.4 million related to an asset write-off reported in the Financial Services segment related to costs associated with strategic initiatives previously pursued.There were no other normalizing items in the first three quarters of 2024.The full year results of operations in 2023 included a$21.6 million

107、 targeted headcount reduction charge recorded in SG&A,$11.3 million in costs and recoveries associated with the fire at the A.J.Billes Distribution Centre(the DC fire)recorded in Other expense(income),$33.3 million related to the impact of Bill C-47 GST/HST Legislative Amendments(GST/HST-related cha

108、rge)recorded in SG&A,as well as$328.0 million Change in fair value of redeemable financial instrument prior to the repurchase of Scotiabanks interest in CTFS.These items are discussed in detail in section 5.1.1 of the Companys Q4 2023 MD&A.(C$in millions)Q4 2024Q4 202320242023 Gain on sale of Brampt

109、on DC,net of inventory write-down$(222.9)$(222.9)$Expenses related to the strategic review of CTFS 18.1 18.1 Targeted headcount reduction charge 21.6 21.6 DC fire expense 11.3 GST/HST-related charge 33.3 Change in fair value of redeemable financial instrument 328.0 Total income before income taxes i

110、mpact$(204.8)$21.6$(204.8)$394.2 Selected Normalized Metrics Consolidated(C$in millions,except where noted)Normalizing Items1 Normalized Q4 20242 Normalizing Items1 Normalized Q4 20232 Q4 2024 Q4 2023 Change3 Revenue$4,507.3$4,507.3$4,443.0$4,443.0 1.5%Cost of producing revenue2,977.7(18.1)2,959.6 2

111、,906.2 2,906.2 1.8%Gross margin dollars$1,529.6$18.1$1,547.7$1,536.8$1,536.8 0.7%Gross margin rate4 33.9%40 bps34.3%34.6%bps34.6%(25)bps Other expense(income)$(243.0)$241.0$(2.0)$3.2$3.2 NM5 Selling,general and administrative expenses967.7(18.1)949.6 983.5(21.6)961.9(1.3)%Depreciation and amortizati

112、on192.2 192.2 196.3 196.3(2.1)%Net finance costs(income)83.6 83.6 90.8 90.8(7.9)%Income before income taxes$529.1$(204.8)$324.3$263.0$21.6$284.6 13.9%Income tax expense(recovery)97.4(20.6)76.8 65.8 5.7 71.5 7.4%Net income$431.7$(184.2)$247.5$197.2$15.9$213.1 16.1%Net income attributable to sharehold

113、ers of CTC411.5(184.2)227.3 172.5 15.9 188.4 20.6%Diluted EPS$7.37$(3.30)$4.07$3.09$0.29$3.38 20.4%1 Refer to Normalizing Items table in this section for more details.2 These normalized measures(excluding Revenue,Depreciation and amortization,and Net finance costs)are non-GAAP financial measures or

114、non-GAAP ratios.For further information and a detailed reconciliation see section 10.1 of this MD&A.3 Change is between normalized results.4 For further information about this measure see section 10.2 of this MD&A.5 Not meaningful.MANAGEMENTS DISCUSSION AND ANALYSIS 8 CANADIAN TIRE CORPORATION 2024

115、REPORT TO SHAREHOLDERS (C$in millions,except where noted)Normalizing ItemsNormalized 2024Normalizing ItemsNormalized 20232024 2023 Change3 2 1 2 1 Revenue$16,357.8$16,357.8$16,656.5$16,656.5 (1.8)%Cost of producing revenue10,739.1(18.1)10,721.0 10,952.9 10,952.9 (2.1)%Gross margin dollars$5,618.7$18

116、.1$5,636.8$5,703.6$5,703.6 (1.2)%Gross margin rate 34.3%11 bps 34.5%34.2%bps 34.2%22 bps 4Other expense(income)$(291.8)$241.0$(50.8)$34.4$(11.3)$23.1 NM5 Selling,general and administrative expenses3,553.3(18.1)3,535.2 3,675.7(54.9)3,620.8 (2.4)%Depreciation and amortization762.2 762.2 771.2 771.2 (1

117、.2)%Net finance costs(income)349.0 349.0 321.5 321.5 8.6%Change in fair value of redeemable financial instrument NM 328.0(328.0)5Income before income taxes$1,246.0$(204.8)$1,041.2$572.8$394.2$967.0 7.7%Income tax expense(recovery)274.1(20.6)253.5 233.7 17.2 250.9 1.0%Net income$971.9$(184.2)$787.7$3

118、39.1$377.0$716.1 10.0%Net income attributable to shareholders of CTC887.7(184.2)703.5 213.3 372.0 585.3 20.2%Diluted EPS$15.92$(3.30)$12.62$3.78$6.59$10.37 21.7%1 Refer to Normalizing Items table in this section for more details.2 These normalized measures(excluding Revenue,Depreciation and amortiza

119、tion,and Net finance costs)are non-GAAP financial measures or non-GAAP ratios.For further information and a detailed reconciliation see section 10.1 of this MD&A.3 Change is between normalized results.4 For further information about this measure see section 10.2 of this MD&A.5 Not meaningful.Consoli

120、dated Results Commentary Q4 Income before income taxes was$529.1 million,an increase of$266.1 million.Normalized Income before income taxes was up$39.7 million or 13.9 percent,driven by improved Retail segment profitability.Diluted EPS was$7.37 in the fourth quarter.Normalized Diluted EPS was$4.07,u

121、p 20.4 percent or$0.69 compared to the fourth quarter of 2023.On a full-year basis,Consolidated Income before income taxes was$1,246.0 million,an increase of$673.2 million.Normalized Consolidated Income before income taxes was up$74.2 million or 7.7 percent,driven by improved Retail segment profitab

122、ility.Diluted EPS was$15.92,Normalized Diluted EPS was$12.62,up 21.7 percent or$2.25.Q4 2024Full Year Consol-idated Results Summary p Diluted EPS:$4.28 per sharep Diluted EPS:$12.14 per share Consolidated Revenue was$4,507.3 million,an increase of$64.3 million or 1.5 percent.Consolidated Revenue exc

123、luding Petroleum was$4,002.6 million,an increase of 1.6 percent.The increase was driven by the Retail segment,as well as growth in the Financial Services segment.1Consolidated Revenue was$16,357.8 million,a decrease of$298.7 million or 1.8 percent.Consolidated Revenue excluding Petroleum was$14,281.

124、2 million,a decrease of 1.7 percent,driven by the Retail segment,partially offset by revenue growth in the Financial Services segment.Consolidated Gross margin dollars were$1,529.6 million,a decrease of$7.2 million or 0.5 percent from the prior year.Normalized consolidated Gross margin increased by$

125、10.9 million due to growth in the Retail segment,partially offset by a decline in the Financial Services segment.Consolidated Gross margin dollars were$5,618.7 million,a decrease of$84.9 million,or 1.5 percent from the prior year.Normalized consolidated Gross margin decreased by$66.8 million due to

126、decreases in both the Financial Services and Retail segments.1 For further information about this measure see section 10.2 of this MD&A.MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 9 328.0(328.0)5 Consolidated Results Commentary(continued)Q4 2024Full Year

127、Other expense(income)was$(243.0)million,favourable by$246.2 million.Normalized Other expense(income)was favourable by$5.2 million.Consolidated SG&A were$967.7 million,a decrease of$15.8 million or 1.6 percent compared to prior year.Normalized SG&A decreased by$12.3 million driven by the Retail segme

128、nt,partially offset by increases in the Financial Services segment.Depreciation and amortization was$192.2 million,a decrease of 2.1 percent from the prior year,driven by lower depreciation on Supply Chain lease assets and lower depreciation and amortization relating to IT hardware and software.Net

129、finance costs were$83.6 million,down 7.9 percent from the prior year due to lower borrowings and lower interest rates,partially offset by higher interest on CT REIT debentures.Income tax expense was$97.4 million,up compared to$65.8 million in the prior year,due to higher Income before income taxes,p

130、artially offset by tax benefits relating to capital property dispositions in the quarter.When adjusted for normalizing items,Income tax expense increased by$5.3 million or 7.4 percent due to higher Normalized Income before income taxes.Diluted EPS was$7.37,an increase of$4.28 compared to the prior y

131、ear.Normalized Diluted EPS increased by$0.69 compared to the prior year,primarily due to an increase in Net income attributable to the reasons above and the increase in the Companys controlling interest following the Q4 2023 CTFS repurchase.Other expense(income)was$(291.8)million,favourable by$326.2

132、 million compared to an expense of$34.4 million in the prior year.Normalized Other expense(income)was favourable by$73.9 million driven by gain on property sales in Ontario and British Columbia and insurance recoveries related indirect costs from the DC fire incurred in 2023,as well as a one-time co

133、st to exit a supply chain contract in the prior year.Consolidated SG&A was$3,553.3 million,a decrease of$122.4 million or 3.3 percent compared to the prior year.Normalized SG&A decreased$85.6 million.The decrease was driven by the Retail segment,partially offset by increases in the Financial Service

134、s segment.Depreciation and amortization was$762.2 million,a decrease of 1.2 percent from the prior year,driven by lower depreciation on Supply Chain lease assets and lower depreciation and amortization relating to IT hardware and software.Net finance costs were$349.0 million,up 8.6 percent from the

135、prior year,due to higher borrowings,mainly to fund the Q4 2023 repurchase of Scotiabanks interest in CTFS as well as higher interest on CT REIT debentures.Income tax expense was$274.1 million,up compared to$233.7 million in the prior year,primarily due to higher Income before income taxes,partially

136、offset by tax benefits relating to capital property dispositions in the current year as well as the non-deductibility of the expense related to the change in fair value of redeemable financial instrument in 2023.When adjusted for normalizing items,Income tax expense was relatively flat.Diluted EPS w

137、as$15.92,an increase of$12.14 compared to the prior year.Normalized Diluted EPS increased by$2.25 compared to the prior year,primarily due to an increase in Net income attributable to the reasons above,and increase in the Companys controlling interest following the Q4 2023 CTFS repurchase,as well as

138、 lower effective tax rate.MANAGEMENTS DISCUSSION AND ANALYSIS 10 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS5.1.2 Consolidated Key Performance Measures(C$in millions)increase/(decrease)Q4 2024Q4 2023Change Selling,general and administrative expenses$967.7$983.5$(15.8)Normalized selling,gen

139、eral and administrative expenses1949.6961.9(12.3)Normalized SG&A as a percentage of revenue1221.1%21.6%(58)bps Income before income taxes$529.1$263.0$266.1 Normalized income before income taxes1324.3284.639.7 Normalized EBITDA as a percentage of revenue23113.4%13.0%41 bps 1 Refer to section 5.1.1 in

140、 this MD&A for a description of normalizing items.2 This is a non-GAAP ratio.For further information and a detailed reconciliation see section 10.1 of this MD&A.3 Earnings Before Interest,Tax,Depreciation and Amortization(EBITDA).(C$in millions)increase/(decrease)20242023Change Selling,general and a

141、dministrative expenses$3,553.3$3,675.7$(122.4)Normalized selling,general and administrative expenses13,535.23,620.8(85.6)Normalized SG&A as a percentage of revenue2121.6%21.7%(13)bps Income before income taxes$1,246.0$572.8$673.2 Normalized income before income taxes11,041.2967.074.2 Normalized EBIT

142、DA as a percentage of revenue2113.3%12.6%75 bps 1 Refer to section 5.1.1 in this MD&A for a description of normalizing items.2 This is a non-GAAP ratio.For further information and a detailed reconciliation see section 10.1 of this MD&A.Changes in the percentages disclosed are driven by the related R

143、evenue,SG&A,and Income before income taxes variances discussed under the Consolidated Results commentary in the previous charts.5.1.3 Seasonal Trend Analysis The following table shows the consolidated financial performance of the Company by quarter for the last two years.As discussed in section 5.1.

144、1 of the Companys 2023 MD&A,the Company implemented a change in accounting estimate beginning in the first quarter of 2023,with no change to the historical amounts reported which resulted in a change in the phasing of quarterly earnings.(C$in millions,except per share amounts)Q4 2024 Q3 2024 Q2 2024

145、 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Revenue$4,507.3 4,192.9 4,132.7 3,524.9$4,443.0$4,250.5$4,255.8$3,707.2$5,340.4 Net income431.7 220.7223.5 96.0 197.2 (27.8)126.9 42.8 562.6 Diluted EPS7.37 3.59 3.56 1.38 3.09 (1.19)1.76 0.13 9.09 MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE COR

146、PORATION 2024 REPORT TO SHAREHOLDERS 115.2 Retail Segment Performance 5.2.1 Retail Segment Financial Results(C$in millions,except where noted)Q4 2024Q4 2023Change20242023Change Retail sales$5,380.5 1$5,323.4 1.1%$18,177.7$18,504.1 (1.8)%Revenue$4,123.2$4,070.0 1.3%$14,812.4$15,171.3 (2.4)%Gross marg

147、in dollars$1,336.8$1,338.8 (0.1)%$4,798.5$4,846.7 (1.0)%Gross margin rate 32.4%1 32.9%(47)bps 32.4%31.9%45 bps Other expense(income)$(282.1)$(35.8)NM2$(424.4)$(115.3)NM2 Selling,general and administrative expenses873.5 899.2 (2.8)%3,203.1 3,320.9 (3.5)%Depreciation and amortization240.1 235.6 1.9%95

148、1.6 958.2 (0.7)%Net finance costs(income)68.6 78.1 (12.2)%296.0 275.9 7.3%Income before income taxes$436.7$161.7 170.0%$772.2$407.0 89.7%1 For further information about this measure see section 10.2 of this MD&A 2 Not meaningful.Selected Normalized Metrics Retail(C$in millions,except where noted)Nor

149、malizing Items1 Normalized Q4 20242Normalizing Items1 Normalized Q4 20232 Q4 2024 Q4 2023 Change3 Revenue$4,123.2$4,123.2$4,070.0$4,070.0 1.3%Cost of producing revenue2,786.4(18.1)2,768.3 2,731.2 2,731.2 1.4%Gross margin dollars$1,336.8$18.1$1,354.9$1,338.8$1,338.8 1.2%Gross margin rate4 32.4%44 bps

150、 32.9%32.9%bps 32.9%(3)bps Other expense(income)$(282.1)$241.0$(41.1)$(35.8)$(35.8)14.8%Selling,general and administrative expenses873.5(8.7)864.8 899.2(19.6)879.6 (1.7)%Depreciation and amortization240.1 240.1 235.6 235.6 1.9%Net finance costs(income)68.6 68.6 78.1 78.1 (12.2%)Income before income

151、taxes$436.7$(214.2)$222.5$161.7$19.6$181.3 22.7%1 Refer to section 5.1.1 in this MD&A for a description of normalizing items.2 These normalized measures(excluding Revenue,Depreciation and amortization,and Net finance costs)are non-GAAP financial measures.For further information and a detailed reconc

152、iliation see section 10.1 of this MD&A.3 Change is between normalized results.4 For further information about this measure see section 10.2 of this MD&A.MANAGEMENTS DISCUSSION AND ANALYSIS 12 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS(C$in millions,except where noted)Normalizing Items1 No

153、rmalized 20242 Normalizing Items1 Normalized 20232 2024 2023 Change3 Revenue$14,812.4$14,812.4$15,171.3$15,171.3 (2.4)%Cost of producing revenue10,013.9(18.1)9,995.8 10,324.6 10,324.6 (3.2)%Gross margin dollars$4,798.5$18.1$4,816.6$4,846.7$4,846.7 (0.6)%Gross margin rate4 32.4%11 bps 32.5%31.9%bps 3

154、1.9%57 bps Other expense(income)$(424.4)$241.0$(183.4)$(115.3)$(11.3)$(126.6)44.9%Selling,general and administrative expenses3,203.1(8.7)3,194.4 3,320.9(19.6)3,301.3(3.2)%Depreciation and amortization951.6 951.6 958.2 958.2(0.7)%Net finance costs296.0 296.0 275.9 275.9 7.3%Income before income taxes

155、$772.2$(214.2)$558.0$407.0$30.9$437.9 27.4%1 Refer to section 5.1.1 in this MD&A for a description of normalizing items.2 These normalized measures(excluding Revenue,Depreciation and amortization,and Net finance costs)are non-GAAP financial measures.For further information and a detailed reconciliat

156、ion see section 10.1 of this MD&A.3 Change is between normalized results.4 For further information about this measure see section 10.2 of this MD&A.MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 135.2.2 Retail Segment Key Performance Measures(Year-over-year

157、 percentage change,C$in millions,except as noted)Q4 2024 Q4 2023Change20242023Change Revenue1$4,123.2$4,070.0 1.3%$14,812.4$15,171.3 (2.4)%Revenue,excluding Petroleum 3,618.5 3,566.9 1.4%12,735.8 13,040.2(2.3)%Store count 1,704 1,695 Retail square footage(in millions)35.3 34.9 Retail sales growth2 1

158、.1%(7.1)%(1.8)%(3.9)%Retail sales growth,excluding Petroleum2 1.2%(6.9)%(1.7)%(3.1)%Consolidated Comparable sales growth2,3 1.1%(6.8)%(1.7)%(2.9)%Retail Return on Invested Capital(ROIC)4,5 9.4%7.9%150 bpsn/an/a Retail normalized SG&A as a percentage of revenue excluding Petroleum2,56 23.9%24.7%(76)b

159、ps 25.1%25.3%(23)bps Owned Brands penetration rate7 39.2%39.5%(32)bps 37.5%37.5%(6)bps Revenue1,8$2,187.2$2,172.6 0.7%$8,452.6$8,699.3 (2.8)%Store count9 671 663 Retail square footage(in millions)24.2 24.0 Sales per square foot2,10$497$510 (2.5)%n/an/a Retail sales growth2,11 1.3%(6.9)%(1.9)%(3.1)%C

160、omparable sales growth2 1.1%(6.8)%(2.0)%(2.9)%Revenue1$546.8$552.2 (1.0)%$1,897.7$1,952.3 (2.8)%Store count371 371 Retail square footage(in millions)7.2 7.2 Sales per square foot2,12$315$317 (0.6)%n/an/a Retail sales growth2,13 0.2%(6.8)%(1.3)%(3.5)%Comparable sales growth2 0.4%(6.4)%(0.7)%(3.2)%Rev

161、enue1,14$575.3$561.7 2.4%$1,523.3$1,532.0 (0.6%)Store count383 380 Retail square footage(in millions)3.8 3.7 Sales per square foot2,12$410$408 0.5%n/an/a Retail sales growth2,15 2.4%(7.6)%(2.2)%Comparable sales growth2 1.8%(7.2)%(0.1)%(1.9)%Revenue1$306.5$274.0 11.9%$841.7$837.2 0.6%Revenue1$504.7$5

162、03.1 0.3%$2,076.6$2,131.1 (2.6)%Gas bar locations279 281 Gross margin dollars$52.4$52.6 (0.5)%$210.2$214.0 (1.8)%Retail sales growth2 0.3%(8.2)%(2.3)%(8.9)%Gasoline volume growth in litres 1.4%(3.0)%(2.1)%(0.8)%Comparable store gasoline volume growth in litres2 0.6%(1.4)%(2.5)%1.8%1 Revenue reported

163、 for CTR,SportChek,Marks and Petroleum for the 13 and 52 weeks ended December 28,2024 includes inter-segment revenue of$7.7 million(2023$1.1 million)and$10.9 million(2023-$4.2 million),respectively.Helly Hansen revenue represents external revenue only.Therefore,in aggregate,revenue for CTR,SportChek

164、,Marks,Petroleum,and Helly Hansen will not equal total revenue for the Retail segment.2 For further information about this measure see section 10.2 of this MD&A.3 Comparable sales growth excludes Petroleum.4 Retail ROIC is calculated on a rolling 12-month basis based on normalized earnings.5 This is

165、 a non-GAAP financial measure.For further information and a detailed reconciliation see section 10.1 of this MD&A.6 Refer to section 5.1.1 in this MD&A for a description of normalizing items.7 The 2023 figure has been restated to conform to the current-year presentation.8 Revenue includes revenue fr

166、om Canadian Tire,PartSource,PHL,Party City and Franchise Trust.9 Store count includes stores from Canadian Tire,and other banner stores of 169(2023:161 stores).Other banners include PartSource,PHL,and Party City.10 Sales per square foot figures are calculated on a rolling 12-month basis.Retail space

167、 excludes seasonal outdoor garden centres,auto service bays,warehouse,and administrative space.11 Retail sales growth includes sales from Canadian Tire,PartSource,PHL,Party City and the labour portion of Canadian Tires auto service sales.12 Sales per square foot figures are calculated on a rolling 1

168、2-month basis,include both corporate and franchise stores and warehouse,and administrative space.13 Retail sales growth includes sales from both corporate and franchise stores.14 Revenue includes the sale of goods to Marks franchise stores,Retail sales from Marks corporate stores,Marks wholesale rev

169、enue from its commercial division,and includes ancillary revenue relating to embroidery and alteration services.15 Retail sales growth includes Retail sales from Marks corporate and franchise stores but excludes revenue relating to alteration and embroidery services.MANAGEMENTS DISCUSSION AND ANALYS

170、IS 14 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS9The following chart shows the Retail segment,excluding Petroleum,Retail sales and Revenue performance by quarter for the last two years.As discussed in section 5.1.1 of the Companys 2023 MD&A,the Company implemented a change in accounting e

171、stimate beginning in the first quarter of 2023 which impacted Revenue,excluding Petroleum,with no change to the historical amounts reported;Retail sales,excluding Petroleum were not impacted by this change.Year-over-year Retail Sales and Revenue Growth0.2%2.4%(2.5)%(0.1)%(1.9)%(6.9)%(3.1)%(1.9)%(4.7

172、)%(1.4)%1.2%(1.7)%2.3%5.6%(5.0)%(1.2)%0.3%(19.7)%(7.5)%(6.6)%(4.3)%(0.8)%1.4%2.3%Retail sales,excluding PetroleumRevenue,excluding PetroleumQ4 20222022Q1 2023Q2 2023Q3 2023Q4 20232023Q1 2024Q2 2024Q3 2024Q4 20242024MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOL

173、DERS 15The following chart shows the Retail segment,excluding Petroleum,Retail sales and Revenue performance by quarter for the last two Retail Segment Commentary Q4 Retail income before income taxes was$436.7 million,up$275.0 million or$41.2 million on a normalized basis driven by favourable gross

174、margin,as a result of higher revenue,lower operating expenses as well as lower net finance costs.On a full-year basis,Retail income before income taxes was$772.2 million,up$365.2 million or$120.1 million on a normalized basis,with favourable gross margin rate and lower operating expenses offsetting

175、higher net finance costs and lower revenue.p q p Q4 2024Full Year Retail Salesp$57.1 million or 1.1%1.1%in Comparable sales growth Retail sales were$5,380.5 million,an increase of 1.1 percent.Excluding Petroleum,Retail sales grew,up 1.2 percent,or$55.6 million compared to the prior year,despite the

176、impact of the Canada Post strike,driven by strong December sales across all banners;loyalty sales1 were up 4 percent.CTR Retail sales were up 1.3 percent driven by strong performance in Automotive,partially offset by declines in Living and Seasonal&Gardening.While consumer demand in discretionary ca

177、tegories lagged,essential categories were up 4.2 percent.Retail sales were up 0.2 percent.Top performing categories were Hockey,Hydration and Lifestyle Footwear.Retail sales were up 2.4 percent driven by growth in Industrial Businesses and Casualwear,partially offset by decline in Casual Footwear.Re

178、tail sales were up 0.3 percent due to higher gas volumes,partially offset by lower per litre gas prices.p$53.2 million or 1.3%1.4%excluding Petroleum Retail Revenue was$4,123.2 million,up$53.2 million,mainly due to higher shipments at CTR,and strong Helly Hansen growth across all channels,as well as

179、 sales growth at Marks.q$326.4 million or 1.8%1.7%in Comparable sales growth Retail sales were$18,177.7 million,a decrease of 1.8 percent.Excluding Petroleum,Retail sales declined 1.7 percent or$270.9 million compared to the prior year,impacted by soft consumer demand,and continued weakness in discr

180、etionary categories,as well as unseasonable weather in Q2 2024.The decrease was partly offset by sales growth in Q4.eCommerce penetration increased,with eCommerce sales stable at$1.1 billion.1CTR Retail sales were down 1.9 percent driven by declines in Living,Seasonal&Gardening,Fixing and Playing ca

181、tegories,partially offset by growth in Automotive.Retail sales declined 1.3 percent,led by declines in Casual Clothing,Skiing/Snowboards,and Outerwear,partially offset by growth in Footwear and Team Sports.Retail sales were flat as growth in Mens Casualwear and Childrens Apparel&Footwear were offset

182、 by declines in Industrial Businesses.Retail sales declined 2.3 percent due to lower gas volumes and lower per litre gas prices.q$358.9 million or 2.4%q 2.3%excluding Petroleum Retail Revenue was$14,812.4 million,down$358.9 million,driven by lower shipments at CTR,a decline in Petroleum revenue,and

183、lower franchise shipments and wholesale revenue at other banners.Revenue1 For further information about this measure see section 10.2 of this MD&A.MANAGEMENTS DISCUSSION AND ANALYSIS 16 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERSp q Gross Marginq$2.0 million or 0.1%q$48.2 million or 1.0%47

184、 bps in gross margin rate 45 bps in gross margin rate q 56 bps in gross margin rate,excluding Petroleum1 p 50 bps in gross margin rate,excluding Petroleum Retail Gross margin dollars were$1,336.8 million,a decrease of$2.0 million.Excluding Petroleum,Gross margin dollars were$1,284.4 million,a decrea

185、se of$1.8 million,or 0.1 percent.Normalized Gross margin dollars increased by$16.1 million driven by the increase in Revenue previously described.Retail Gross margin dollars were$4,798.5 million,a decrease of$48.2 million.Excluding Petroleum,Gross margin dollars were$4,588.3 million,a decrease of$44

186、.4 million,or 1.0 percent.Normalized Gross margin dollars,excluding Petroleum,decreased by$26.7 million driven by the decline in Revenue previously described,partially offset by a favourable Gross margin rate.2 Gross margin rate,excluding Petroleum,was 35.5 percent,a decrease of 56 bps.Normalized gr

187、oss margin rate,excluding Petroleum,was 36.0 percent,a decrease of 7 bps,primarily due to increased promotional intensity,partially offset by favourable banner sales mix.Gross margin rate,excluding Petroleum,was 36.0 percent,an increase of 50 bps.Normalized gross margin rate,excluding Petroleum,was

188、36.2 percent,an increase of 64 bps driven by strong performance at CTR and Helly Hansen.Other Expense(Income)q$246.3 million or 687.5%q$309.1 million or 268.1%Other expense(income)was$(282.1)million,favourable by$246.3 million.Excluding the$(241.0)million gain on the sale of Brampton DC,Normalized O

189、ther expense(income)was favourable by$5.3 million.Other expense(income)was$(424.4)million,favourable by$309.1 million.Excluding the$(241.0)million gain on the sale of Brampton DC,as well as$11.3 million charge related to the DC fire in 2023,Normalized Other expense(income)was favourable by$56.8 mill

190、ion,driven by a gain on the sale of a retail property,insurance recoveries related to the indirect costs from the DC fire,as well as a one-time cost to exit a supply chain contract in the prior year.SG&Aq$25.7 million or 2.8%q$117.8 million or 3.5%SG&A was$873.5 million,a decrease of$25.7 million,or

191、 2.8 percent.Normalized SG&A decreased by$14.8 million primarily driven by lower volume-related supply chain costs as well as personnel costs.SG&A was$3,203.1 million,a decrease of$117.8 million,or 3.5 percent.Normalized SG&A decreased by$106.9 million primarily driven by lower Supply Chain and IT c

192、osts,partially offset by higher store operations.Supply chain costs decreased as a result of lower volumes and increased efficiencies,compared to the prior year when the Company incurred indirect costs relating to the DC fire.IT expenses declined mainly due to lower project and consulting costs.Pers

193、onnel costs were also lower.Depreciation and amortization p$4.5 million or 1.9%q$6.6 million or 0.7%Depreciation and amortization increased by$4.5 million.Depreciation and amortization was relatively flat to the prior year.($951.6 million,a decrease of$6.6 million)Net Finance Costs q$9.5 million or

194、12.2%p$20.1 million or 7.3%Net finance costs decreased due to lower borrowings and lower interest rates.Net finance costs increased due to higher borrowings,mainly to fund the Q4 2023 repurchase of Scotiabanks interest in CTFS.2 This is a non-GAAP financial measure.For further information and a deta

195、iled reconciliation see section 10.1 of this MD&A.Retail Segment Commentary(continued)Q4 2024Full Year1 For further information about this measure see section 10.2 of this MD&A.MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 17Gross Full YearRetail Segment C

196、ommentary(continued)Q4 2024Full YearEarnings Summary p$275.0 million or 170%p$365.2 million or 89.7%Income before income taxes increased by$275.0 million.Normalized Income before income taxes increased by$41.2 million,attributable to the reasons above.Income before income taxes increased by$365.2 mi

197、llion.Normalized Income before income taxes increased by$120.1 million,attributable to the reasons above.5.2.3 Retail Segment Seasonal Trend Analysis Quarterly Revenue and Income(loss)before income taxes are affected by seasonality.The following table shows the Retails segment financial performance

198、of the Company by quarter for the last two years.As discussed in section 5.1.1 of the Companys 2023 MD&A,the Company implemented a change in accounting estimate beginning in the first quarter of 2023 which impacted Revenue and Income(loss)before income taxes,with no change to the historical amounts

199、reported.Retail sales were not affected by this change.(C$in millions)Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Retail sales$5,380.5$4,539.5$5,000.2$3,257.5$5,323.4$4,639.3$5,214.9$3,326.5$5,729.4 Revenue4,123.2 3,797.8 3,754.8 3,136.6 4,070.0 3,867.3 3,896.1 3,337.9 4,

200、990.9 Income(loss)before income taxes436.7 164.8 170.1 0.6 161.7 239.0 85.6(79.3)642.4 MANAGEMENTS DISCUSSION AND ANALYSIS 18 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS5.3 Financial Services Segment Performance 5.3.1 Financial Services Segment Financial Results(C$in millions)Q4 2024Q4 202

201、3Change20242023Change Revenue$388.9$379.9 2.4%$1,560.2$1,507.3 3.5%Gross margin dollars$175.4$181.7 (3.5)%$741.9$783.4 (5.3)%Gross margin rate1 45.1%47.8%(275)bps 47.5%52.0%(443)bps Other expense(income)$1.2$1.4 (14.2)%$(1.1)$5.5 NM2 Selling,general and administrative expenses107.4 96.2 11.5%388.4 3

202、94.7 (1.6)%Depreciation and amortization2.6 2.3 14.4%9.4 9.7 (3.0)%Net finance costs(income)(3.3)(3.4)(3.9)%(16.8)(11.5)45.7%Income before income taxes$67.5$85.2 (20.7)%$362.0$385.0 (6.0)%1 For further information about this measure see section 10.2 of this MD&A.2 Not meaningful.Selected Normalized

203、Metrics Financial Services(C$in millions,except where noted)Normalizing Items1 Normalized Q4 20242 Normalizing Items1 Normalized Q4 20232 Q4 2024 Q4 2023 ChangeRevenue3$388.9$388.9$379.9$379.9 2.4%Gross margin dollars175.4 175.4 181.7 181.7 (3.5)%Gross margin rate4 45.1%bps 45.1%47.8%bps 47.8%(275)b

204、ps Other expense(income)$1.2$1.2$1.4$1.4 (14.3)%Selling,general and administrative expenses107.4(9.4)98.0 96.2(2.0)94.2 4.0%Depreciation and amortization2.6 2.6 2.3 2.3 14.4%Net finance costs(income)(3.3)(3.3)(3.4)(3.4)(3.9)%Income before income taxes$67.5$9.4$76.9$85.2$2.0$87.2 (11.8)%1 Refer to se

205、ction 5.1.1 for a description of normalizing items.2 These normalized measures(Selling,general and administrative expenses and Income before income taxes)are non-GAAP financial measures.For further information and a detailed reconciliation see section 10.1 of this MD&A.3 Change is between normalized

206、 results.4 For further information about this measure see section 10.2 of this MD&A.(C$in millions,except where noted)Normalizing Items1 Normalized 20242 Normalizing Items1 Normalized 20232 2024 2023 Change3 Revenue$1,560.2$1,560.2$1,507.3$1,507.3 3.5%Gross margin dollars741.9 741.9 783.4 783.4 (5.3

207、)%Gross margin rate447.5%10 bps 47.6%52.0%bps 52.0%(443)bps Other expense(income)$(1.1)$(1.1)$5.5$5.5 NM5 Selling,general and administrative expenses388.4(9.4)379.0 394.7(35.3)359.4 5.5%Depreciation and amortization9.4 9.4 9.7 9.7 (3.0)%Net finance costs(income)(16.8)(16.8)(11.5)(11.5)45.7%Income be

208、fore income taxes$362.0$9.4$371.4$385.0$35.3$420.3(11.6)%1 Refer to section 5.1.1 for a description of normalizing items.2 These normalized measures(Selling,general and administrative expenses and Income before income taxes)are non-GAAP financial measures.For further information and a detailed recon

209、ciliation see section 10.1 of this MD&A.3 Change is between normalized results.4 For further information about this measure see section 10.2 of this MD&A.5 Not meaningful.MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 19Financial Services Segment Commentary

210、 Financial Services segment Income before income taxes was$67.5 million in the quarter,a$17.7 million decrease from the prior year and down$10.3 million on a normalized basis.Higher net write-offs and operating expenses were only partially offset by higher revenues,while cardholder engagement remain

211、ed strong.Cardholder performance was as expected,with increased write-offs relative to the prior year.The Past Due Credit Card Receivable(PD2+)rate remained stable ending the quarter relatively flat to the prior year.The Expected Credit Loss(ECL)allowance for loans receivable was$935.8 million,an in

212、crease of$9.6 million from Q4 2023 driven by growth in receivables.On a full-year basis,Financial Services segment Income before income taxes was$362.0 million,a decrease of$23.0 million from the prior year and down$48.9 million on a normalized basis.Continued pressure is expected in Gross margin du

213、e to higher write-offs and funding cost.p p q Q4 2024Full Year Revenuep$9.0 million or 2.4%$52.9 million or 3.5%Revenue for the quarter was$388.9 million,an increase of$9.0 million,or 2.4 percent compared to the prior year.The increase in Revenue was mainly due to higher interest income.Revenue was$

214、1,560.2 million,an increase of$52.9 million,or 3.5 percent compared to the prior year.The increase in Revenue was mainly due to higher interest income.Gross Margin Dollars q$6.3 million or 3.5%q$41.5 million or 5.3%Gross margin dollars were$175.4 million,a decrease of$6.3 million,or 3.5 percent from

215、 the prior year.The decrease was mainly due to higher net impairment losses and funding costs,as expected,partially offset by Revenue growth.Gross margin dollars were$741.9 million,a decrease of$41.5 million,or 5.3 percent.The decrease was mainly due to higher net impairment losses and funding costs

216、,partially offset by Revenue growth.SG&A$11.2 million or 11.5%q$6.3 million or 1.6%SG&A was$107.4 million,an increase of$11.2 million,or 11.5 percent.Normalized SG&A increased$3.8 million,primarily due to higher marketing expenses and volume driven costs.SG&A was$388.4 million,a decrease of$6.3 mill

217、ion or 1.6 percent.Normalized SG&A increased$19.6 million mainly due to higher processing and other volume driven costs.Earnings Summary$17.7 million or 20.7%q$23.0 million or 6.0%Income before income taxes was$67.5 million,a decrease of$17.7 million,or 20.7 percent.Normalized Income before income t

218、axes was$76.9 million,a decrease of$10.3 million attributable to the reasons noted above.Income before income taxes was$362.0 million,a decrease of$23.0 million or 6.0 percent.Normalized Income before income taxes was$371.4 million,a decrease of$48.9 million attributable to the reasons above.MANAGEM

219、ENTS DISCUSSION AND ANALYSIS 20 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS5.3.2 Financial Services Segment Key Performance Measures(C$in millions,except where noted)Q4 2024 Q4 2023Change20242023Change Credit card sales growth1 3.5%(0.6)%1.6%0.1%GAAR1$7,465$7,294 2.3%$7,374$7,141 3.3%Reven

220、ue(as a percentage of GAAR)1,2 21.2%21.1%n/an/a Average number of accounts with a balance(thousands)2,335 2,340 (0.2)%2,318 2,319%Average account balance (whole$)1$3,197$3,118 2.6%$3,180$3,080 3.3%Net credit card write-off rate1,2 7.0%6.1%n/an/a Past due credit card receivables rate3 3.6%3.6%n/an/a

221、Allowance rate 12.4%12.5%n/an/a Return on receivables1,2 4.9%5.4%n/an/a 1 For further information about this measure see section 10.2 of this MD&A.2 Figures are calculated on a rolling 12-month basis.3 This is a non-GAAP financial measure.For further information and a detailed reconciliation see sec

222、tion 10.1 of this MD&A.Financial Services Segment Scorecard To evaluate the overall performance of the Financial Services segment,the following scorecard demonstrates how Financial Services is progressing towards achieving its strategic objectives.p p q p q p q Q4 2024 vs.Q4 2023 Growth2.3%in GAAR 3

223、.5%in credit card sales growth 0.2%in average number of accounts with a balance 2.6%in average account balance GAAR increased by 2.3 percent over last year driven by continued strong cardholder engagement,which resulted in increased account balances,up 2.6 percent,on strong credit card sales activit

224、y during the quarter.Credit card sales increased by 3.5 percent over the prior year driven by higher spend at external merchants partially offset by lower Petroleum sales.Performance48 bps in Return on receivables 5 bps in Revenue as a percentage of GAAR Return on receivables decreased by 48 bps com

225、pared to the prior year due to lower full year earnings and increased GAAR.Revenue as a percentage of GAAR increased by 5 bps compared to the prior year as revenue growth outpaced growth in GAAR.Operational metrics p 3 bps in PD2+rate 92 bps in net credit card write-off rate 12.4%allowance rate,down

226、 12 bps p The PD2+rate remained stable,finishing largely unchanged from the prior year.The increase in the net write-off rate compared to the prior year was driven by an expected increase in net write-off dollars relative to receivable growth.The allowance rate decreased by 12 bps to 12.4 percent,de

227、spite a$9.6 million incremental increase in the ECL allowance,remaining within the previously disclosed range of 11.5 to 13.5 percent.MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 215.3.2 Financial Services Segment Seasonal Trend Analysis Quarterly operati

228、ng net income and revenue are affected by seasonality.The following table shows the financial performance of the segment by quarter for the last two years.(C$in millions)Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Revenue$388.9$399.1$383.2$389.0$379.9$393.1$364.5$369.8$35

229、7.2 Income before income taxes 67.5 110.3 88.5 95.7 85.2 125.7 55.4 118.7 86.8 MANAGEMENTS DISCUSSION AND ANALYSIS 22 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS5.4 CT REIT Segment Performance 5.4.1 CT REIT Segment Financial Results(C$in millions)Q4 2024Q4 2023Change20242023Change Property

230、 revenue1$145.4$140.0 3.9%$578.7$552.8 4.7%Property expense1 30.9 28.8 7.0%125.7 115.5 8.8%General and administrative expense(G&A)2.8 4.1 (30.9)%16.1 15.2 5.8%Net finance costs31.2 29.5 5.9%121.8 114.0 6.8%Fair value(gain)loss adjustment2(54.8)39.3 NM3(119.1)78.6 NM3 Income before income taxes$135.3

231、$38.3 NM3$434.2$229.5 89.3%Adjustment from fair value to amortized cost method on Investment property Fair value gain(loss)adjustment54.8 (39.3)NM3 119.1 (78.6)NM3(Gain)realized on sale of property (12.8)NM3 Depreciation20.7 19.7 5.1%80.9 77.7 4.1%Income before income taxes,applying CTC accounting p

232、olicies$59.8$57.9 3.3%$247.0$230.4 7.2%1 For further information about this measure see section 10.2 of this MD&A.2 Fair value is eliminated on consolidation.CTC recognized a$12.8 million gain on the sale of CT REITs property in Chilliwack,British Columbia in Q2 2024,which is reclassed to Other expe

233、nse(income)upon consolidation.3 Not meaningful The following shows the CT REIT year-over-year Property revenue performance by quarter for the last two years.Year-over-year Property Revenue Growth4.4%3.5%4.2%4.0%3.2%3.5%3.7%4.9%4.8%5.2%3.9%4.7%Property RevenueQ4 20222022Q1 2023Q2 2023Q3 2023Q4 202320

234、23Q1 2024Q2 2024Q3 2024Q4 20242024MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 23CT REIT Segment Commentary CT REIT segment income increased$1.9 million due to higher Property revenue,and lower general and administrative expenses,partially offset by highe

235、r Property expense and Net finance costs during the quarter.p Q4 2024Full Year Property Revenue$5.4 million or 3.9%p$25.9 million or 4.7%Property revenue was$145.4 million,an increase of$5.4 million,or 3.9 percent.The increase was mainly due to property operating expense recoveries,contractual rent

236、escalations,developments completed during 2023,and intensifications completed during 2023 and 2024.Property revenue was$578.7 million,an increase of$25.9 million,or 4.7 percent.The increase was mainly due to property operating expense and capital expenditures recoveries,contractual rent escalations,

237、developments completed during 2023,intensifications completed during 2023 and 2024,as well as lease surrender revenue.Property Expense p$2.1 million or 7.0%p$10.2 million or 8.8%Property expense was$30.9 million,an increase of$2.1 million,or 7.0 percent due to higher property taxes.Property expense

238、was$125.7 million,an increase of$10.2 million,or 8.8 percent due to higher operating expenses and property taxes.G&Aq$1.3 million or 30.9%p$0.9 million or 5.8%G&A was$2.8 million,a decrease of$1.3 million,primarily due to lower mark-to-market of variable compensation expense.G&A was$16.1 million,an

239、increase of$0.9 million,primarily due to increased personnel compensation.Depreciation p$1.0 million or 5.1%p$3.2 million or 4.1%Depreciation was$20.7 million,an increase of$1.0 million or 5.1 percent due to intensifications,developments,and property acquisition completed during 2023 and 2024.Deprec

240、iation was$80.9 million,an increase of$3.2 million or 4.1 percent due to intensifications and developments completed during 2023 and 2024.Net Finance Costs p$1.7 million or 5.9%p$7.8 million or 6.8%Net finance costs were$31.2 million,an increase of$1.7 million or 5.9 percent,driven by the issuance o

241、f Series I senior unsecured debentures in Q4 2023,higher interest rates on Series 4 Class C LP Units refinanced in Q2,and lower capitalized interest on properties under development,partially offset by lower Credit Facilities interest costs due to a lower outstanding balance.Net finance costs were$12

242、1.8 million,an increase of$7.8 million or 6.8 percent,driven by the issuance of Series I senior unsecured debentures in Q4 2023,lower capitalized interest on properties under development,and higher interest rates on Series 4 Class C LP Units refinanced in Q2,partially offset by lower Credit Faciliti

243、es interest costs due to a lower outstanding balance,and higher interest earned with cash on hand during the year.Earnings Summary p$1.9 million or 3.3%p$16.6 million or 7.2%Income before income taxes was$59.8 million,an increase of$1.9 million or 3.3 percent attributable to the reasons above.Income

244、 before income taxes was$247.0 million,an increase of$16.6 million or 7.2 percent attributable to the reasons above.MANAGEMENTS DISCUSSION AND ANALYSIS 24 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS5.4.2 CT REIT Segment Key Performance Measures MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN

245、TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 25Net Operating Income(NOI)Funds from Operations(FFO)Adjusted Funds from Operations(AFFO)(C$in millions)Q4 2024 Q4 2023 Change20242023 Change Net operating income1$115.6$111.5 3.6%$457.6$439.0 4.3%Funds from operations1 79.0 77.7 1.7%314.7 307.9 2.2%Adjus

246、ted funds from operations1 73.0 71.5 2.1%292.4 283.4 3.2%1 This measure is a non-GAAP financial measure.For further information and a detailed reconciliation see section 10.1.6 of this MD&A.NOI for the quarter increased by 3.6 percent compared to the prior year primarily due to the increase in same

247、property NOI,coupled with an increase in NOI due to properties acquired and developed in 2023 and 2024.FFO for the quarter increased by 1.7 percent compared to the prior year,primarily due to the acquisition,intensifications and developments completed during 2023 and 2024,partially offset by higher

248、interest costs.AFFO for the quarter increased by 2.1 percent compared to the prior year,primarily due to the acquisition,intensifications and developments completed during 2023 and 2024,and rent escalations,partially offset by higher interest costs.6.0 Balance Sheet Analysis,Liquidity,and Capital Re

249、sources 6.1 Selected Balance Sheet Highlights At the end of Q4 2024,CTC had fully repaid the$895.0 million of borrowings,$495.0 million of short-term borrowings and$400.0 million term loan,associated with its October 2023 repurchase of 20%of CTFS.Selected line items from the Companys assets and liab

250、ilities,as at December 28,2024 and the year-over-year change versus December 30,2023,are noted below:p Change in Total assets$262.3 Change in Total liabilities q$381.2 Year-over-year change in assets Selected AssetsDecember 28,2024 Trade and other receivables1,263.0 111.7 Loans receivable(current po

251、rtion)6,697.5 129.2 Merchandise inventories2,558.3(135.4)Property and equipment5,394.4 174.9 Right-of-use-assets2,034.8 101.0 Year-over-year change in liabilities Selected LiabilitiesDecember 28,2024 Deposits(current and long-term)3,557.4 193.1 Trade and other payables2,931.4 242.0 Short-term borrow

252、ings295.8(669.9)Long-term debt(current and long-term portion)4,555.9(408.6)125.6 Lease liabilities2,490.1 Assets Trade and other receivables p$111.7 million The increase was primarily due to a favourable change in fair values of derivative contracts due to higher foreign exchange rates.Loans receiva

253、ble(current portion)p$129.2 million The increase is primarily due to higher average credit card account balances,partially offset by a related higher allowance.Merchandise inventories q$135.4 million Inventory declined 5.0 percent compared to prior year.Active management of inventory across all bann

254、ers contributed to the decline in inventory.Property and equipment p$174.9 million The increase was primarily driven by the Companys store investments.Right-of-use-assets p$101.0 million The increase was driven by the renewal of leases,and thus longer lease terms remaining,based on review of expirin

255、g leases performed during the year.MANAGEMENTS DISCUSSION AND ANALYSIS 26 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERSLong-term debt(current and long-term portion)Liabilities Deposits(current and long-term)p$193.1 million The increase was mainly due to growth in GIC deposits to fund credit

256、card loans receivable growth in the Financial Services segment.Trade and other payables p$242.0 million The increase was due to timing and volume of payments related to inventory purchases.Short-term borrowings q$669.9 million The decrease is primarily due to cash generated from operations,improveme

257、nts in working capital,and capital allocation decisions that contributed to repaying short-term borrowings.The reduction occurred despite an additional$495.0 million drawn in Q4 2023 to partially finance the Companys repurchase of Scotiabanks 20 percent interest in CTFS.q$408.6 million The decrease

258、is due to the early repayment of the$400 million term loan borrowed in Q4 2023 to partially finance the Companys repurchase of Scotiabanks 20 percent interest in CTFS.Lease liabilitiesp$125.6 million The increase was driven by the renewal of leases that were soon to be expiring based on review of ex

259、piring leases performed during the year.MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 276.2 Summary Cash Flows Selected line items from the Companys Consolidated Statements of Cash Flows for the quarters and years ended December 28,2024 and December 30,202

260、3 are noted in the following tables:(C$in millions)Q4 2024Q4 2023Change Cash generated from(used for)operating activities$875.3$869.9$5.4 Cash generated from(used for)investing activities171.7(353.0)524.7 Cash generated from(used for)financing activities(925.4)(664.6)(260.8)Cash generated(used)in th

261、e period$121.6$(147.7)$269.3(C$in millions)20242023Change Cash generated from(used for)operating activities$2,063.8$1,353.7$710.1 Cash generated from(used for)investing activities(264.1)(747.8)483.7 Cash generated from(used for)financing activities(1,635.3)(621.0)(1,014.3)Cash generated(used)in the

262、period$164.4$(15.1)$179.5 Q4 2024Full Year Operating activities p$5.4 million change p$710.1 million change Cash generated in operating activities was relatively flat in comparison to the same quarter in the prior year,however it was as a result of changes in loans receivable in the Financial Servic

263、es segment offset by working capital changes for the Company.The increase in cash generated from operating activities was primarily driven by changes in working capital,loans receivable and lower cash taxes.Investing activities p$524.7 million change p$483.7 million change The increase in cash gener

264、ated from investing activities was primarily driven by proceeds on disposition of the Brampton DC,in addition to lower acquisition of long-term investments and lower additions to property and equipment in comparison to the same quarter in the prior year.The increase in cash generated from investing

265、activities was primarily driven by proceeds on disposition of various properties,including the Brampton DC.Financing activities q$260.8 million change q$1,014.3 million change The increase in cash used for financing activities was primarily due to the repayment of long-term debt attributable to term

266、 loans made in the prior year to repurchase Scotiabanks 20 percent interest in CTFS.The increase in cash used for financing activities was primarily due to the current year repayment of long-term debt and short-term borrowings that were issued in the prior year to finance the repurchase of Scotiaban

267、ks 20 percent interest in CTFS,and partially offset by fewer repurchases of Class A Non-Voting Shares under the Companys Normal Course Issuer Bid(NCIB)compared to the prior year.MANAGEMENTS DISCUSSION AND ANALYSIS 28 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS6.3 Capital Management The def

268、inition of capital varies from company to company,from industry to industry,and for different purposes.In the process of managing the Companys capital,Management includes the following items in its definition of capital,which includes Glacier Credit Card Trust(GCCT)indebtedness but excludes Franchis

269、e Trust indebtedness because it is a legal liability of the Dealers:(C$in millions)2024%of total2023%of total Capital components Deposits$1,171.4 8.0%$1,041.7 6.9%Short-term borrowings295.8 2.0%965.7 6.4%Current portion of long-term debt680.4 4.6%560.5 3.7%Long-term debt3,875.5 26.5%4,404.0 29.4%Lon

270、g-term deposits2,386.0 16.3%2,322.6 15.5%Total debt$8,409.1 57.4%$9,294.5 61.9%Share capital625.9 4.3%598.7 4.0%Retained earnings5,614.4 38.3%5,128.2 34.1%Total capital under management$14,649.4 100.0%$15,021.4 100.0%The Companys capital management objectives are as follows:Ensuring sufficient liqui

271、dity and the ability to access additional capital from multiple sources,if required,to meet its financial obligations when due and execute its operating and strategic plans;and Minimizing its after-tax cost of capital while taking into consideration the key risks outlined in section 11.0 of this MD&

272、A including current and future industry,market,and economic risks and conditions.6.3.1 Canadian Tire Banks Regulatory Environment CTB manages its capital under guidelines established by the Office of the Superintendent of Financial Institutions of Canada(OSFI).OSFIs regulatory capital guidelines are

273、 based on the international Basel Committee on Banking Supervision framework entitled Basel III:A Global Regulatory Framework for More Resilient Banks and Banking Systems,which came into effect in Canada on January 1,2013.Basel III is a global regulatory accord that was introduced to enhance the reg

274、ulation,supervision,and risk management practices within the banking sector.The Bank has implemented several capital policies,procedures,and controls,including an annual Internal Capital Adequacy Assessment Process(ICAAP).These measures support the Bank in achieving its goals and objectives.The Bank

275、s objectives include maintaining adequate levels of capital to:meet all applicable regulatory requirements;maintain and reinforce confidence in the safety and soundness of the Bank;support growth in assets and liabilities;and offset unexpected operating and investment losses and volatility.As at the

276、 end of Q4 2024,the Bank complied with all regulatory capital requirements established by OSFI,and its internal targets as determined by its ICAAP.MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 296.4 Investing 6.4.1 Capital Expenditures The Companys capital

277、 expenditures for the periods ended December 28,2024 and December 30,2023 were as follows:(C$in millions)20242023 Modernization and efficiency enablers$63.3$78.0 Omnichannel customer experience296.7 391.4 Fulfillment infrastructure and automation118.4 145.9 Operating capital expenditures$478.4$615.3

278、 1 CT REIT acquisitions and developments excluding vend-ins from CTC96.7 68.1 Total capital expenditures$575.1$683.4 2 1 This measure is a non-GAAP financial measure.For further information and a detailed reconciliation see section 10.1 of this MD&A.2 Capital expenditures are presented on an accrual

279、 basis and include software additions,but exclude right-of-use asset additions,acquisitions relating to business combinations,intellectual properties,and tenant allowances received.Full Year Total capital expenditures q$108.3 million The Companys full year operating capital expenditures and total ca

280、pital expenditures were$478.4 million and$575.1 million respectively,a decrease of$136.9 million and$108.3 million from the prior year.The decrease was driven by fewer ongoing store capital projects,and postponing projects related to CTR Network Transformation.MANAGEMENTS DISCUSSION AND ANALYSIS 30

281、CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERSOperating Capital Expenditures Capital Commitments The Company had commitments of approximately$122.4 million as at December 28,2024(December 30,2023$173.8 million)for the acquisition of tangible and intangible assets.The following contains forwar

282、d-looking information and readers are cautioned that actual results may vary.The Companys 2024 full-year operating capital expenditures were$478.4 million,within the previously-disclosed range in Q3 2024 of$475.0 million to$525.0 million.The Company plans to fund the strategy,sustain the business,an

283、d continue prudent capital management and expects 2025 full-year operating capital expenditures to be in the range of$525.0 to$575.0 million.6.5 Liquidity and Financing Management is focused on ensuring that the Company has sufficient liquidity,both through maintaining a strong balance sheet and the

284、 ability to access additional capital from multiple sources.Several alternative liquidity sources are available to its Retail,Financial Services,and CT REIT segments to meet their financial obligations when due and to execute their operating and strategic plans.As at December 28,2024 Financial Servi

285、ces(C$in millions)ConsolidatedRetail CT REIT Cash and cash equivalents$475.6$172.9$299.6$3.1 Short-term investments128.4 128.4 Total net cash and cash equivalents and short-term investments1$604.0$172.9$428.0$3.1 Committed Bank Lines of Credit4,397.2 2,997.2 1,100.0 300.0 Less:Borrowings outstanding

286、2 2.0 2.0 Less:U.S.commercial paper outstanding Less:Letters of credit outstanding2.5 2.5 Available Committed Bank Lines of Credit$4,392.7$2,997.2$1,100.0$295.5 Liquidity1$4,996.7$3,170.1$1,528.0$298.6 1 This measure is a non-GAAP financial measure with no standardized meaning under IFRS Accounting

287、Standards and therefore may not be comparable to similar measures presented by other issuers.2 For further information about this measure see section 10.2 of this MD&A.The Company ended the quarter with$604.0 million in cash and short-term investments,net of bank indebtedness,and$5.0 billion in liqu

288、idity with$3.2 billion,$1.5 billion,and$298.6 million at its Retail,Financial Services,and CT REIT segments,respectively.The Company ended the quarter with no Short-term borrowings in the Retail and Financial Services segments.Other Short-term borrowings include$293.8 million of GCCT asset-backed co

289、mmercial paper notes,and a$2.0 million prime draw in CT REIT.As at Q4 2024,CTC,CT REIT,CTB,and Helly Hansen each complied with all financial covenants under the agreements for the committed bank lines of credit listed in the following Financing Source table:MANAGEMENTS DISCUSSION AND ANALYSIS CANADI

290、AN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 31Financing Source Committed Bank Lines of Credit and Securitized Note Purchase Facility Provided by a syndicate of eight Canadian and two international financial institutions,$1.975 billion in an unsecured bank line of credit is available to the Retai

291、l segment for general corporate purposes,expiring in May 2029.As of December 28,2024,the Retail segment had no borrowings outstanding on this bank line of credit.Provided by a syndicate of five Canadian financial institutions,$1.0 billion in an unsecured bank line of credit is available to the Retai

292、l segment for general corporate purposes,expiring in May 2025.As of December 28,2024,there were no borrowings outstanding on this bank line of credit.Helly Hansen has a 175 million Norwegian Krone(NOK)secured overdraft facility($22.2 million of Canadian dollar equivalent)provided by a Norwegian bank

293、,which automatically renewed in January and will expire in January 2026.As of December 28,2024,Helly Hansen had no borrowings outstanding on its facility.Provided by a syndicate of seven Canadian financial institutions,$300 million in an unsecured bank line of credit is available to CT REIT for gene

294、ral business purposes,expiring in May 2029.As of December 28,2024,CT REIT had$2.0 million outstanding on its bank line of credit.Scotiabank has provided CTB with a$400 million unsecured bank line of credit and a$700 million securitized note purchase facility for the purchase of senior and subordinat

295、ed credit card asset-backed notes issued by GCCT,both expiring in April 2025.As of December 28,2024,CTB had no borrowings outstanding on its bank line of credit and a nominal amount owing on its note purchase facility.Commercial Paper Programs CTC has a U.S.dollar-denominated commercial paper progra

296、m(U.S.CP)that allows it to issue up to a maximum aggregate principal amount of US$1.0 billion of unsecured short-term promissory notes in the United States.Terms to maturity for the promissory notes range from one to 270 days from the date of issue.Notes are issued at a discount and rank equally in

297、right of payment with all other present and future unsecured and unsubordinated obligations to creditors of CTC.As of December 28,2024,CTC had no U.S.commercial paper outstanding.Concurrent with CTCs US$commercial paper issuances,CTC enters into foreign exchange derivatives to hedge the foreign curr

298、ency risk associated with both the principal and interest components of the borrowings under the program.CTC does not designate these debt derivatives as hedges for accounting purposes.GCCT has an asset-backed commercial paper(ABCP)program that allows it to issue up to a maximum aggregate principal

299、amount of$300 million of short-term credit card asset-backed promissory notes.As of December 28,2024,GCCT had$293.8 million of ABCP notes outstanding.Medium-Term Notes,Term Loan and Senior Unsecured Debentures As of December 28,2024,CTC had an aggregate principal amount of$1,150.0 million of medium-

300、term notes outstanding and fully repaid the$400 million term loan.As of December 28,2024,CT REIT had an aggregate principal amount of$1,425.0 million of senior unsecured debentures outstanding.Asset-backed Senior and Subordinated Term Notes As of December 28,2024,GCCT had an aggregate principal amou

301、nt of$1,980.0 million of credit card asset-backed term notes outstanding,consisting of$1,851.3 million principal amount of senior term notes and$128.7 million principal amount of subordinated term notes.Broker GIC Deposits Funds continue to be readily available to CTB through broker networks.As of D

302、ecember 28,2024,CTB held$2,946.5 million in broker GIC deposits.Retail DepositsRetail deposits consist of High Interest Savings(HIS)and retail GIC deposits held by CTB,available both within and outside tax-free savings accounts.As of December 28,2024,CTB held$610.9 million in retail deposits.Real Es

303、tate CTC can undertake strategic real estate transactions involving properties not owned by CT REIT.It also owns an investment in CT REIT in the form of publicly traded CT REIT Units.As of December 28,2024,CTC had a 68.4 percent effective ownership interest in CT REIT.Additional sources of funding a

304、re available to CT REIT,as appropriate,including the ability to access debt and equity markets,subject to the terms and conditions of CT REITs Declaration of Trust and all applicable regulatory requirements.As of December 28,2024,CT REIT had an aggregate principal amount of$8.5 million of mortgages,

305、secured by certain investment properties,outstanding.MANAGEMENTS DISCUSSION AND ANALYSIS 32 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERSCredit Ratings A credit rating generally provides an indication of the risk that the borrower will not fulfill its full obligations in a timely manner with

306、 respect to both interest and principal commitments.Ratings for long-term debt instruments range from highest credit quality(generally“AAA”)to default in payment(generally“D”).Ratings for short-term debt instruments range from“R-1(high)”(Morningstar DBRS),“A-1+”(S&P),“P-1”(Moodys),or“F1+”(Fitch),rep

307、resenting the highest credit quality to“D”(Morningstar DBRS,S&P and Fitch)and“not prime”(Moodys)for the lowest credit quality of securities rated.Morningstar DBRSS&PMoodysFitch Credit Rating Summary RatingTrendRating Outlook Rating Outlook Rating Outlook Canadian Tire Corporation Issuer rating1BBBSt

308、ableBBBStable Medium-term notesBBBStableBBB U.S.Commercial PaperA-2P-2 Glacier Credit Card Trust Asset-backed senior-term notes AAA(sf)AAA(sf)Asset-backed subordinated-term notes A(sf)A(sf)Asset-backed commercial paper R-1(high)(sf)F1+(sf)CT REIT Issuer ratingBBBStableBBBStable Senior unsecured debe

309、nturesBBBStableBBB 1 S&P has also assigned the Company a short-term issuer rating of A-2.6.5.1 Contractual Obligations,Guarantees,and Commitments The Company funds capital expenditures,working capital needs,dividend payments,and other financing needs,such as debt repayments and Class A Non-Voting Sh

310、are purchases under a NCIB,from a combination of sources.The following table shows the Companys contractual obligations to be paid over the next five years and beyond.The Company believes it had the ability to meet these contractual obligations as at December 28,2024.2030&beyond(C$in millions)202520

311、26202720282029 Total Deposits$1,183.1$493.1$692.6$702.5$497.6$3,568.9 Total debt1 680.4 958.0 825.0 900.1 250.0 950.0 4,563.5 Lease obligations2 487.9 448.7 369.9 296.5 218.0 1,193.3 3,014.3 Purchase obligations2,560.3 369.1 340.1 269.4 195.6 87.4 3,821.9 Other obligations27.0 15.1 13.9 10.0 5.6 12.

312、0 83.6 Interest payments311.1 283.5 233.6 144.2 78.4 135.4 1,186.2$5,249.8$2,567.5$2,475.1$2,322.7$1,245.2$2,378.1$16,238.4 1 Includes current debt,long-term debt(senior and subordinated term notes),GCCT term notes,and mortgages.Details of both can be found in Note 23 to the 2024 Consolidated Financ

313、ial Statements.2 Excludes reasonably certain options of$249.31 million(2023-$232.8 million).In the normal course of business,the Company enters into numerous agreements that may contain features that meet the definition of a guarantee.For a discussion of the Companys significant guarantees and commi

314、tments,refer to Note 35 of the 2024 Consolidated Financial Statements.The Companys maximum exposure to credit risk with respect to such guarantees and commitments is provided in Note 5 of the 2024 Consolidated Financial Statements.MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 RE

315、PORT TO SHAREHOLDERS 33MANAGEMENTS DISCUSSION AND ANALYSIS 34 CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS6.6 Funding Costs The table below shows the funding costs relating to short-term and long-term debt,excluding deposits held by CTB,Franchise Trust indebtedness,and lease liability inter

316、est:(C$in millions)20242023 Interest expense1$266.0$240.2 Cost of debt1 4.61%4.09%1 For further information about this measure see section 10.2 of this MD&A.For a discussion of the liquidity and credit risks associated with the Companys ability to generate sufficient resources to meet its financial

317、obligations,refer to section 11.2 in this MD&A.7.0 Equity The following contains forward-looking information and readers are cautioned that actual results may vary.7.1 Shares Outstanding(C$in millions)20242023 Authorized 3,423,366 Common Shares 100,000,000 Class A Non-Voting Shares Issued 3,423,366

318、Common Shares(2023 3,423,366)$0.2$0.2 52,197,823 Class A Non-Voting Shares(2023 52,197,823)$625.7 598.5$625.9$598.7 MANAGEMENTS DISCUSSION AND ANALYSIS CANADIAN TIRE CORPORATION 2024 REPORT TO SHAREHOLDERS 35Each year,the Company files a Notice of Intention to Make a NCIB Notice of Intention with th

319、e Toronto Stock Exchange(TSX)which allows it to repurchase its Class A Non-Voting Shares on the open market through the facilities of the TSX and/or alternative Canadian trading systems,if eligible,at the market price of the shares at the time of repurchase or as otherwise permitted under the rules

320、of the TSX and applicable securities laws.Shares repurchased by the Company pursuant to the NCIB are restored to the status of authorized but unissued shares.Security holders may obtain a copy of the notice,without charge,by contacting the Corporate Secretary of the Company.On February 16,2023,the T

321、SX accepted the Companys Notice of Intention to repurchase up to 5.1 million Class A Non-Voting Shares during the period March 2,2023 to March 1,2024(2023-24 NCIB).On February 15,2024,the TSX accepted the Companys Notice of Intention to repurchase up to 4.9 million Class A Non-Voting Shares during t

322、he period March 2,2024 to March 1,2025(2024-25 NCIB).Also on February 15,2024,the TSX accepted a new Automatic Securities Purchase Plan(ASPP)which expires on March 1,2025(2024-25 ASPP)and which allows a designated broker to execute repurchases under the 2024-25 NCIB during the Companys blackout peri

323、ods,subject to pre-defined parameters.On November 9,2023,as part of its capital management plan,the Company announced its intention to repurchase up to$200 million of its Class A Non-Voting Shares during 2024,in excess of the amount required for anti-dilutive purposes,pursuant to the Companys NCIBs

324、in 2024.To date,no such repurchases have occurred.On November 7,2024,the Company announced its intention to repurchase up to$200 million of its Class A Non-Voting Shares,in excess of the amount required for anti-dilutive purposes,in 2025.Any such repurchases will be made under the 2024-25 NCIB and/o

325、r a renewed NCIB,subject to regulatory approvals.7.2 Dividends The Company has a long-term dividend payout ratio target of approximately 30 to 40 percent of the prior years normalized net income,after considering the period-end cash position,future cash flow requirements,capital market conditions,an

326、d investment opportunities.The dividend payout ratio may fluctuate in any particular year.11 For further information about this measure see section 10.1 of this MD&A.On November 7,2024,the Company announced an increase in its annual dividend for the 15th consecutive year,to$7.10 per Common Voting an

327、d Class A Non-Voting Share,an increase of approximately 1.4 percent over 2023.On February 12,2025,the Companys Board of Directors declared dividends of$1.775 per share payable on June 1,2025 to shareholders of record as of April 30,2025.The dividend is considered an“eligible dividend”for tax purpose

328、s.7.3 Equity Derivative Contracts The Company enters into equity-derivative contracts to partially offset its exposure to fluctuations in stock options,performance share units,restricted share units,and deferred share units.The Company currently uses floating-rate equity forwards.During the fourth q

329、uarter of 2024,195,000 units of equity-forward contracts that hedged stock options,performance share units,restricted share units,and deferred share units settled and resulted in a cash receipt from counterparties of approximately$1.9 million.The Company entered into 270,000 units of new equity-forw

330、ard contracts in the fourth quarter of 2024 with a hedge rate of$154.42.8.0 Tax Matters In the ordinary course of business,the Company is subject to ongoing audits by tax authorities.While the Company has determined that its tax filing positions are appropriate and supportable,from time-to-time cert

331、ain matters are reviewed and challenged by the tax authorities.With respect to temporary differences relating to and arising from the Companys investment in its subsidiaries,the Company is able to control and has no plans that would result in the realization of the respective temporary differences.A

332、ccordingly,the Company has not provided for deferred taxes relating to these respective temporary differences that might otherwise occur from transactions relating to the Companys investment in its subsidiaries.Refer to the Income Taxes accounting policy described in Note 3 of the 2024 Consolidated

333、Financial Statements.The Company regularly reviews the potential for adverse outcomes with respect to tax matters.The Company believes that the ultimate disposition of these matters will not have a material adverse effect on its liquidity,consolidated financial position,or net income,because the Company has determined that it has adequate provision for these tax matters.Should the ultimate tax lia