Employee Presentation Results for the First Quarter of 2015.

Employee Presentation

Results for the First Quarter of 2015

2 • TA BLE OF CONT E NTS

Table of Contents

1. 2015 First Quarter Highlights

2. Financial Results

> TC Transcontinental Financial Results

> TC Transcontinental Printing and TC Transcontinental Packaging Financial Results

> TC Media Financial Results

3. Stock Price and Indebtedness

4. Objectives and Outlook

3

Quarter Highlights1

4 • 2 0 1 5 F I RST Q UA RT E R H I GH L I GH TS

2015 First Quarter Highlights

• Excellent financial performance for TC Transcontinental during the 2015 first quarter.

• On november 13, 2014, TC Transcontinental Printing received an honourable mention in the “Large Manufacturing Company” category at the “Quebec Quality Awards”, the highest distinction awarded by the Quebec government through the Ministry of the Economy, Innovation and Exports.

• On November 17, 2014, TC Transcontinental signed a definitive agreement to sell all its consumer magazines in Montreal and Toronto to TVA Group Inc. for $55.5 million. On March 2, 2015, the Competition Bureau of Canada authorized this transaction. The sale is expected to close in April 2015.

• On December 9, 2014, TC Transcontinental extended its credit facility of $400 millions, until February 2020.

• The net indebtedness ratio remained stable in the first quarter of 2015, at 1.24x as at January 31, 2015.

• TC Transcontinental’s recent entry into the packaging industry has not gone unnoticed. In fact, it is the subject of an interesting article in the latest issue of Canadian Packaging. (the article is directly available on the intranet : Flexible Outlook)

5

Financial Results2

6 • F I NA NC I A L RES U LTS – Q 1

Financial Results – Q1

Q1-2014 Q1-2015

$499.3M $504.6M

$26.4M $36.1M$0.34 $0.46

Revenues, Adjusted net earnings (in millions of dollars)and Adjusted net earnings per share (in dollars)

Revenues Net adjusted earnings EPS

+ 36.7 %

+ 1.1 %

+ 35.3 %

7 • F I NA NC I A L RES U LTS – Q 1

Financial Results – Q1

Q1-2014 Q1-2015

361.3 361.5

Revenues (in millions of dollars)

Q1-2014 Q1-2015

48.4 53.9

Operating Profit(in millions of dollars)

Revenues increased by $0.2M.

+ Acquisition of Capri Packaging.+ New contracts for the printing of magazines, newspapers and books.+ Positive exchange rate impact.

- Our existing operations decreased as a result of the print media transformation, which mostly affected our marketing-products printing activities.

- Transitional slowdown in our flyer printing activities in the United States and, to a lesser extent, in Canada.

- Sale of the assets of Rastar.

Increase in Profit by $5.5M, or by 11.4 %.

+ Acquisition of Capri Packaging.+ Cost reduction initiatives.+ Positive exchange rate impact.

- Decrease in existing revenues due to above-mentioned items- Sale of the assets of Rastar.

+ $0.2M

+ $5.5M

8 • F I NA NC I A L RES U LTS – Q 1

-29.7%

-7.9%

9.5% 11.3%

108,7%

Benchmarking – Print & Packaging SectorEBITDA Variation % – quarter

9 • F I NA NC I A L RES U LTS – Q 1

Financial Results – Q1

Q1-2014 Q1-2015

155.4 160.2

Revenues (in millions of dollars)

Q1-2014 Q1-2015

-3.64.5

Operating Profit(in millions of dollars)

Increase in Revenues by $4,8M, or by 3,1%.

+ Acquisition of the Quebec weekly newspapers from QMI.+ Increase in distribution revenues principally due to new contracts.

- Decrease in magazine and newspaper publishing revenues due to a reduction in advertising spending.

Increase in Profit by $8.1M.

+ Contribution from the above-mentioned distribution volume.+ Acquisitions, disposals and closures.+ Cost-reduction initiatives.

- Decrease in the revenues as mentioned above.

+ $4.8M

+ $8.1M

10 • F I NA NC I A L RES U LTS – Q 1

-29.0% -25.4%-0.9%

31.0%

59.2%

508.0%

Quebecor Inc.

TC Media

Meredith Corp. (US)

Torstar Corporation

Rogers Communications

Yellow Media Ltd.

Benchmarking – Medias sectorEBITDA Variation % – quarter

11

Stock Price and Indebtedness3

12 • STOC K P RI C E A ND I NDE BT E DNES S

Stock Price and Indebtedness

• Increase of 16.04 % since february 2014.

Increased Stock Price

• Level of debt has increased in 2014 in order to finance our acquisitions.

Net Debt Level

increased slightly to finance

acquisitions

0

200

400

600

800

1000

1200 Investments of more than $700 M in the Print sector

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Objectives and Outlook4

14 • OBJEC T I V ES A ND OU T LOOK

Objectives and Outlook

Maximize Print• Maximize the use of our state of the art print platform.• Impact of the new agreements to print newspapers and magazines, announced in 2014.• Continue to develop the point-of-purchase materials for retailers.• Seek out new print business, primarily from newspaper editors.

Grow the Packaging Division

• Increase our market share in flexible packaging for dairy products through both acquisitions and internal growth.

• Serve other segments in this industry as well.

Strengthen the Media Offering and Build Digital

• Continue to strengthen our digital offering in the Media Sector.• Focus efforts on the local advertising market, interactive marketing solutions, professional and business

information as well as educational content. • Continue to generate synergies linked to our two recent transactions with Québécor Inc. and its

subsidiaries. • Continued challenging conditions with respect to advertising revenues.