Q Supplementary Slides

Transcription

1 Q Supplementary Slides November 12,

2 Forward-looking Statements This presentation for Loblaw Companies Limited ( Loblaw ) may contain forward-looking statements about Loblaw s objectives, plans, goals, aspirations, strategies, prospects and opportunities. It may also contain statements about the acquisition by Loblaw of Shoppers Drug Mart, including, but not limited to, statements relating to the strategic benefits expected to result from the transaction. Forward-looking statements are typically identified by words such as expect, anticipate, believe, foresee, could, estimate, goal, intend, plan, seek, strive, will, may and should and similar expressions. Forward-looking statements reflect current estimates, beliefs and assumptions, which are based on management s perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. Loblaw can give no assurance that such estimates, beliefs and assumptions will prove to be correct as they are inherently subject to significant business, economic, competitive and other risks and uncertainties, and as such, are subject to change. Information on these risks and uncertainties are included in reports filed by Loblaw and Shoppers Drug Mart with applicable securities regulatory authorities and may be accessed through the SEDAR website ( Other risks and uncertainties not presently known to Loblaw or that Loblaw presently believes are not material could also cause actual results or events to differ materially from those expressed in its forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Loblaw disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. This presentation uses certain non-gaap measures, such as Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA and Adjusted EPS which Loblaw believes provide useful information to both management and investors in measuring financial performance. These measurers do not have a standard meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measurers presented by other publicly traded companies, and should not be construed as an alternative to other financial measures determined in accordance with GAAP. 2

3 Key Financial Metrics Loblaw Q Consolidated Revenue Adjusted Operating Income Adjusted EBITDA $13,599M, +35.9% (+2.0% ex. Shoppers Drug Mart) $669M, +74.2% (+2.6% ex. Shoppers Drug Mart) $1,001M, +56.9% (+1.3% ex. Shoppers Drug Mart) Adjusted EPS $0.90, +23.3% Retail Revenue (ex SDM) $9,988M, +2.2% Retail Adjusted Gross Margin (ex SDM) 21.5% (flat vs LY) Retail Adjusted EBITDA Margin (ex SDM) Retail Adjusted Operating Income SDM) Net Efficiencies Achieved (ex SDM) (ex 6.0% (flat excluding Shoppers Drug Mart) $351M, +2.6% Efficiencies in Labour, Admin, Supply Chain and Transport; Offset by costs to achieve synergies, incremental investments in marketing and emerging businesses Net Synergies $44M Free Cash Flow Capex ($) $216M QTD ($597M YTD) $300M QTD ($638M YTD) 3

4 Key Operational Metrics Q Loblaw Same Store Sales Basket Size Traffic +2.6% (excluding Shoppers Drug Mart) Increase in fresh penetration and loyalty participation drove higher basket Increased slightly. Tonnage In line with the overall market Internal Inflation In line with CPI of 2.8% Loblaw STM* Square Footage Growth Industry STM* Square Footage Growth PC Plus Net Promoter Score LCL National +0.6% vs Q3/ % - vs Q3/13 Over 7.4 million total members Trending above last year SAP Stores Converted *Supermarket Type Merchandise 403 stores completed as at end of Q3; 440 stores to date; all 21 DCs completed 4

5 Key Financial Metrics Q Shoppers Drug Mart Revenue $3,387, +3.0% Adjusted Operating Income $275, +14.1% Adjusted Operating Margin 8.1% (~+80bps) Adjusted EBITDA $355, +8.2% Adjusted EBITDA Margin 10.5% (+50bps) Adjusted Gross Profit $1,323, +5.1% Adjusted Gross Profit Margin Adjusted SG&A 39.1% (+80bps) +2.9% - flat vs LY 5

6 Key Operational Metrics Q Shoppers Drug Mart Retail Square Footage Growth +2.0% Pharmacy Sales $1.6B, +3.7% Pharmacy SSS +3.5% # Rx Dispensed (Rx Count) +4.6% (+4.4% on same store sales basis) Average Rx Value -0.5% Generic Penetration 63.1% (vs 61.6% Q3 2013) Front of Store Sales $1.8B, +2.4% Front of Store SSS +1.6% Loyalty (Optimum) Over 10 million active members 6

7 Adjusted Debt by Segment $ Millions Q Retail PCF REIT Con. & Elim. Bank Indebtedness $ 323 $ 323 $ - $ - $ - Short term debt Long term debt due within one year Long term debt 11,549 7,633 1,286 6,554 (3,924) (a) Trust Unit Liability Capital securities Certain other liabilities $ 13,518 $ 8,273 $ 1,918 $ 6,554 ($ 3,227) Less: PCF Debt Independent Securitization Trusts in S-T debt Independent Securitization Trusts in L-T debt Guaranteed Investment Certificates Independent Funding Trusts Trust Unit Liability Total Adjusted Debt $ 10,416 $ 7,786 $- $ 6,554 ($ 3,924) (a) REIT debt includes Class C LP units, and Class B exchangeable units held by Loblaw retail, eliminated in the consolidation and eliminations segment. 7

8 Adjusted Debt Adjusted Debt at Acquisition $11,060 $1.5B Choice Properties REIT Monetization 1,500 $1.6B repayment of term loan (1,600) 4.85% MTN matured and repaid (350) Other 100 Q Reported Adjusted Debt $10,710 $350M repayment of term loan (350) $40M Additional Drawings on CP REIT Credit Facility 40 Other 16 ($350) ($294) Q Reported Adjusted Debt $10,416 8