Canadian Tire Financial Services. Tom Gauld President. Business Overview September 20, 2005

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1 Canadian Tire Financial Services Tom Gauld President Business Overview September 20, 2005

2 Forward-looking Information This presentation contains certain forward-looking statements that are subject to risks and uncertainties that may cause the results or events predicted in this discussion to differ materially from actual results or events. Factors which could cause the results or events to differ include, but are not limited to: competitive risks that would adversely impact the ability of the Company to attract customers and operate in its markets; environmental risks that would damage the Company s reputation or threaten its licenses to operate; commodity price risk in its Petroleum division; unseasonable weather patterns that could cause reductions in the sale of seasonal merchandise; adverse interest rates and foreign exchange rates; conditions affecting the acquisition and development of real estate properties; the cost and availability of capital; the ability of Canadian Tire to attract and retain quality employees, franchisees, agents and Associate Dealers and changes in the willingness of customers to shop at Canadian Tire or their ability to pay their Options MasterCard accounts and personal loans. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived.

3 Financial Services is a key strategic component in the CTC network of interrelated businesses.... Our role is to build lifetime customer relationships by providing financial services which add trust and value to the Canadian Tire Brand.

4 Principal Services Canadian Tire Options MasterCard. Personal (Term) loans. Canadian Tire Retail Card. Canadian Tire and PartSource commercial cards. Unsecured Line of Credit. Credit insurance. Extended warranties. Accident/disability insurance. Canadian Tire Auto Club.

5 2004 Revenue Mix * Credit Interest & Fees Insurance and Warranties Other Services Total Revenue $MM % Revenue 79% 16% 5% 100% * Based on managed receivables

6 Building Lifetime Customer Relationships million direct contacts with 4 million customers. $3 Billion in loans to Canadian Tire customers. Credit for approximately 18% of store purchases. Credit for 26% of Petroleum purchases. Distribute $85 million in CTC money.

7 Cardholders are CTC s Best Customers... 10% of CTC customers are active cardholders. Shop 25+ times/year. Spend $1,000 a year at CTC. 30% of CTC sales volume. Earn over 50% of all CT Money. Account for over 45% CT earnings.

8 and... CTFS is a significant and growing contributor to corporate earnings... Pre-tax earnings increased by $92 Million between 2000 and Approximately 32% of CTC pre-tax earnings in 2004.

9 Canadian Tire Financial Services Long History of Receivable and Earnings Growth... 3, ,000 2, Earnings Growth +21.5% CAGR Receivable Growth +21.3% CAGR $MM 2,000 1,500 1, $MM yr. EBT growth rate of 11.3% 20 yr. EBT growth rate of 11.8% End. A/R EBT/Inc. Sec.

10 CTFS Factoids 1,600 employees. At 5 sites Welland, St. Catharines, Burlington. Chartered schedule 1 bank. All services branded Canadian Tire.

11 CTFS Operations Focus on value-added activities. Customer service. Marketing. Risk management and collections. Outsource commodity processes. Account/data processing. Statement printing. Payment processing.

12 Competitive Advantages Operational High quality customer service centre. Stable workforce with low turnover. state of the art technology infrastructure. Focused, cost efficient.

13 Competitive Advantages Marketing Canadian Tire brand-awareness and trust. Canadian Tire Money loyalty program. Low cost in-store acquisition channel. Extensive customer data base.

14 Options MasterCard Factoids 2 nd largest issuer of MasterCard. * 5 th largest issuer of bankcards. * 1 in 3 households. 3.8 million accounts. * 2004 Nilson Report, Statistics Canada (based on number of accounts on file)

15 Credit Risk Capabilities 25+ years managing credit card risk. Utilize leading industry tools, credit bureaus and scoring techniques. Enhanced by proprietary scoring models based on customer purchase behavior at CTC. Federal oversight as a chartered bank with a separate and independent Board of Directors.

16 Portfolio Quality Average age of accounts with balance is 8.5 years. Conservative credit limit management average limit $3,154 at December 31, High credit limit utilization ratios * 100% 80% 60% 40% 27% 29% 35% 37% 40% 20% 0% Calculated as total outstanding credit card receivables expressed as a percentage of credit card credit limits of active accounts.

17 Total Portfolio Write-Off Trends Write-off Rate 8% 7% 6% 5% 4% 3% 2% st Half * Net write-offs as % total managed portfolio of cards and term loans.

18 What s Next? Strategic Growth Plans

19 Marketplace is Large and Growing BankCard Receivables ($billions) year compounded growth 10.9 % ** Canadian Canadian Bankers Bankers Association Association Stats. Stats. and and CTFS CTFS est. est. for for

20 We Only Participate In One Market Segment... (Based on # Active Accounts) Premium Gold/, Platinum and Low Rate 40% Standard Cards 60% ** CTFS CTFS estimates estimates

21 Our Card receivables are Underdeveloped... Share of Active Accounts * Share of Receivables * Size of receivable opportunity Estimated pre-tax Earnings potential at 5% of receivables 7.5% 5.0% $1.4 billion $70 million * December 2004 CBA Data

22 Strategic Plan Objectives Objectives Increase market share of active accounts. New cards to address different card segments. Acquired in-store and via website. Gas Gold Platinum Rebate Low Rate

23 Strategic Plan Objectives Increase account average balances. Risk based pricing from 5.9% to 24.9%. Targeted credit limit increases. Balance transfer offers. Q-2/05 MasterCard average balances +10% over last year.

24 Strategic Plan Objectives Grow insurance and warranty services at 6% per year. Receivable growth. Retention programs/offers. New insurance and warranty products.

2005-2009 Strategic Plan Objectives Develop and Grow new personal loan business. $30 billion market.

25 Strategic Plan Objectives Develop and Grow new personal loan business. $30 billion market. Pre- approved, direct mail offers. Up to $10,000 unsecured loans. Rates from 7.9% to 15.9%. Approximately $250 million in receivables at end of first 12 months.

26 Strategic Plan Objectives Assess and test additional new banking products. eg... Savings Accounts Mortgages GIC s

27 Canadian Tire Financial Services Building Lifetime Customer Loyalty

2006 First Quarter Financial Results Conference Call May 11, 2006

2006 First Quarter Financial Results Conference Call May 11, 2006 26 First Quarter Financial Results Conference Call May 11, 26 Canadian Tire Corporation, Limited Forward-looking Information This disclosure contains statements that are forward-looking. Actual results