A Time to Invest Annual General and Special Meeting of Shareholders

Transcription

1 A Time to Invest 2015 Annual General and Special Meeting of Shareholders

2 A Time to Invest Executive Vice-President and Chief Financial Officer Remarks

3 Strong International Sales 2014 Financial Highlights Sales ($ in millions) $1,514 $1,543 $1,624 Canada International $471 $520 $582 $1,043 $1,023 $1,042! 15 th consecutive year of growth! Strong international sales +11.9%! Positive foreign exchange impact

4 International EBITDA Growth 2014 Financial Highlights EBITDA ($ in millions) Canada International $133.7 $27.2 $138.3 $137.8 $27.1 $36.9! International +$9.8 million, +36% $106.5 $111.2 $

5 Adjusted EBITDA Improvement 2014 Financial Highlights EBITDA ($ in millions) $133.7 $138.3 $27.2 $27.1 $106.5 $111.2 $146.3 $8.5 $36.9 $100.9 Canada International Adjusted EBITDA*! International +$9.8 million, +36%! Canada ($10.3 million)! One-time charges: Support office restructuring Inventory clearance *Excluding employee restructuring and inventory clearance costs

6 One-Time Costs Affect Earnings 2014 Financial Highlights Net Earnings ($ in millions) $63.9 $64.3 $62.9! International earnings growth! Restructuring charges

7 A Time to Invest 2015 Annual General and Special Meeting of Shareholders

8 Track Record of Dividend Growth Financial Performance Annual Dividends ($ per share) $0.96 $1.04 $1.12 $1.16! 3.6% increase in dividends in 2014! 20.8% increase since conversion to corporation 2011* *Excludes final distribution from North West Company Fund

9 Investing for Growth Financial Performance Capital Expenditures & Return on Net Assets CAPEX ($ in millions) RONA (%) $65.0 $37.8 $46.4 $51.1 $43.2 $52.3! Attractive returns! Increasing investment Forecast

10 Strong Cash Flow, Low Debt Financial Performance Historical Debt and Leverage ($ in millions) Debt EBITDA Debt-to-EBITDA $ $ $126 $126 $183 $ $134 $138 $ $138! Financial strength! Working capital efficiencies! $180 million loan capacity

11 Balanced Approach to Shareholder Returns Financial Performance Total Return Performance (% at January 31) Year CAGR 14.0% NWC 8.8% TSX Composite

12 A Time to Invest 2015 Annual General and Special Meeting of Shareholders

13 Sales Momentum 2015 First Quarter Performance Sales ($ in millions) $414 $364 $376 $122 $135 $160 $242 $241 $254 Canada International! 10% sales increase! Cost-U-Less and Giant Tiger deliver growth! Positive foreign exchange impact Q Q Q1 2015

14 Strong EBITDA Performance 2015 First Quarter Performance EBITDA ($ in millions) $34.4 $30.0 $30.2 $10.1 $5.6 $6.4 $24.4 $23.8 $24.3 Canada International! International EBITDA +$3.7 million! Canada EBITDA +2.5%! Cost-U-Less and Giant Tiger key contributors Q Q Q1 2015

15 Solid Net Earnings 2015 First Quarter Performance Net Earnings ($ in millions) $12.9 $12.7 $15.7! Strong EBITDA growth! Lower interest expense! 23.8% increase in Net Earnings Q Q Q1 2015

16 Stable Dividends 2015 First Quarter Performance Quarterly Dividends ($ per share) $0.28 $0.29 $0.29! Potential for future increase Q Q Q1 2015

17 A Time to Invest 2015 Annual General and Special Meeting of Shareholders

18 A Time to Invest President & CEO Remarks

19 Vision Mission Our Mission & Vision To help people and communities to live better To be the one-stop, trusted store of choice

20 Great Start to 2015! Cost-U-Less & Giant Tiger! Cost-U-Less tied to US recovery! Alaskans to gain spending power

21 Giant Tiger Performance! Early spring weather! Better operating standards! Improved product offer

22 Store Breadth Delivering Results! Multi-banner! International foot print 40% 60% 36% 64% International Canada

23 More for Our Customers A Time to Invest Video Placeholder

24 Right Time to Invest! Track record of disciplined spending One-Stop Trusted Store of Choice! Higher investment = higher potential

25 Right Time to Invest Sustainable 10% Returns One-Stop Trusted Store of Choice! Track record of disciplined spending! Higher investment = higher potential

26 The One-Stop Trusted Store of Choice! The best at serving remote markets! Go-to source and solution provider! Unique insights

27 The One-Stop Trusted Store of Choice! The best at serving remote markets! Go-to source and solution provider! Unique insights

28 Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS Convenient Reliable Right Product & Services One-Stop Trusted Store of Choice Look for Best Deals

29 Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS Convenient Reliable Right Product & Services One-Stop Trusted Store of Choice Look for Best Deals

30 Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS Convenient Reliable Right Product & Services One-Stop Trusted Store of Choice Look for Best Deals

31 Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS Convenient Reliable Right Product & Services Look for Best Deals One-Stop Trusted Store of Choice

32 Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS Convenient Reliable Right Product & Services Look for Best Deals One-Stop Trusted Store of Choice

33 Our Community Promise Sustainable 10% Returns One-Stop Trusted Store of Choice GREATER COMMUNITY IMPACT Employment Partnerships Investment Support

34 Our Community Promise Sustainable 10% Returns One-Stop Trusted Store of Choice GREATER COMMUNITY IMPACT Employment Partnerships Investment Support

35 Our Community Promise Sustainable 10% Returns One-Stop Trusted Store of Choice GREATER COMMUNITY IMPACT Employment Partnerships Investment Support

36 Our Community Promise Sustainable 10% Returns One-Stop Trusted Store of Choice GREATER COMMUNITY IMPACT Employment Partnerships Investment Support

37 Our Community Promise Sustainable 10% Returns One-Stop Trusted Store of Choice GREATER COMMUNITY IMPACT Employment Partnerships Investment Support

38 Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Categories Top Markets Logistics Innovation New Markets Store Connect

39 Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Categories Top Markets Logistics Innovation New Markets Store Connect

40 Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Categories Top Markets Logistics Innovation New Markets Store Connect

41 Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Categories Top Markets Logistics Innovation New Markets Store Connect

42 Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Categories Top Markets Logistics Innovation New Markets Store Connect

43 Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Categories Top Markets Logistics Innovation New Markets Store Connect

44 Top Categories! Leverage local store reach

45 Top Categories! Leverage local store reach! Innovative pharmacy services

46 Top Categories! Leverage local store reach! Innovative pharmacy services! Baby category potential

47 Top Categories! Redeploy working capital! Free valuable selling space

48 ! new markets in northern Canada Top Markets

49 Top Markets! new markets in northern Canada! new markets

50 Top Markets! new markets in northern Canada! new markets! 2017 major investment in Iqaluit, NU

51 Top Markets! new markets in northern Canada! new markets! 2017 major investment in Iqaluit, NU! Leverage local knowledge

52 Top Markets! new markets in northern Canada! new markets! 2017 major investment in Iqaluit, NU! Leverage local knowledge! Win-win: attractive returns and value to customers

53 Top Markets! Talent brings stores to life

54 Top Markets! Talent brings stores to life! Another attractive investment opportunity

55 Top Markets! Talent brings stores to life! Another attractive investment opportunity! Strong support teams in place

56 Top Markets! Talent brings stores to life! Another attractive investment opportunity! Strong support teams in place! Funded by admin reductions

57 Logistics Innovation! Aimed at creating clear advantages

58 Logistics Innovation! Aimed at creating clear advantages! Challenge for bigger retailers

59 Logistics Innovation! Aimed at creating clear advantages! Challenge for bigger retailers! Drive capabilities

60 Logistics Innovation! Need for robust and affordable connections! Upgrading underway! New partnerships on the horizon

61 New Markets! Expand Giant Tiger store base! Selectively consider acquisitions

62 Store Connect! Store centered! User-friendly! Encourages ideas and action! The way we want to work at North West

63 A Commitment to Our Core! Vision and Mission are unchanged! Customer value offer remains compelling! Strategy builds on greatest advantages

64 A Time to Invest

65 A Time to Invest 2015 Annual General and Special Meeting of Shareholders