Top Work, Top Results 2016 Annual General Meeting of Shareholders

Transcription

1 Top Work, Top Results 2016 Annual General Meeting of Shareholders

2 Top Work, Top Results Executive Vice-President and Chief Financial Officer Remarks

3 Strong Sales Growth 2015 Financial Highlights Sales ($ in millions) $1,543 $1,624 $1,796 Canada International! 16 th consecutive year of growth! Strong same store food sales! International sales +21.3%! Positive foreign exchange impact

4 International Drives EBITDA Improvement 2015 Financial Highlights EBITDA ($ in millions) $138.3 $137.8 $151.3 Canada International! International +$16.2 million, +43.7%! Positive foreign exchange impact! Canada $2.7 million, 2.6%! Cost-U-Less and Giant Tiger deliver largest gains

5 International Leads Net Earnings Growth 2015 Financial Highlights Net Earnings ($ in millions)! Sales growth! Gross profit rate improvement! Partial offset by higher expenses

6 Top Work, Top Results 2016 Annual General Meeting of Shareholders

7 Investing to Sustain and Grow 2015 Financial Highlights Capital Expenditures & Return on Net Assets CAPEX ($ in millions) $90.0 $43.2 $52.3 $76.0! Top market store renovations! Top category investments! Replace core retail technology Forecast

8 Investing to Sustain and Grow 2015 Financial Highlights Capital Expenditures & Return on Net Assets CAPEX ($ in millions) Return on Net Assets (%) $52.3 $43.2 $76.0 $90.0! Top market store renovations! Top category investments! Replace core retail technology! Track record of results Forecast

9 Low Leverage, Additional Debt Capacity 2015 Financial Highlights Debt, Leverage & Undrawn Capacity ($ in millions) Debt Debt-to-EBITDA Undrawn Capacity! Stable debt-to-ebitda

10 Low Leverage, Additional Debt Capacity 2015 Financial Highlights Debt, Leverage & Undrawn Capacity ($ in millions) Debt Debt-to-EBITDA Undrawn Capacity! Stable debt-to-ebitda! Short-term increase in leverage

11 Low Leverage, Additional Debt Capacity 2015 Financial Highlights Debt, Leverage & Undrawn Capacity ($ in millions) Debt Debt-to-EBITDA Undrawn Capacity ! Stable debt-to-ebitda! Short-term increase in leverage! Increased capacity by $100 million in Q1-16! Financial capacity to support growth

12 Long-term Superior Shareholder Returns 2015 Financial Highlights Total Return Performance (% at January 31) NWC TSX Composite ! 20.2% annual total return in 2015! 3.4% increase in dividends! NWC 5-year CAGR 12.8%! 25.0% increase in dividends since 2011

13 Top Work, Top Results 2016 Annual General Meeting of Shareholders

14 Top Line Growth Continues 2016 First Quarter Performance Sales ($ in millions) $376 $414 $439 Canada International! Total sales +$25 million, +6.0%! Food sales +4.6%! Positive foreign exchange impact

15 International Drives EBITDA Performance 2016 First Quarter Performance EBITDA ($ in millions) $34.4 $30.2 $10.1 $6.4 $37.6 $12.8 Canada International! International EBITDA +$2.7 million! Canada EBITDA +1.9%! Positive foreign exchange impact $23.8 $24.3 $24.8 Q Q Q1 2016

16 Continued Net Earnings Growth 2016 First Quarter Performance Net Earnings ($ in millions) $12.7 $15.7 $17.8! EBITDA growth! Lower effective tax rate! 13.3% increase in Net Earnings Q Q Q1 2016

17 Dividend Growth 2016 First Quarter Performance Quarterly Dividends ($ per share)! Track record of growth! Potential for future increase

18 Top Work, Top Results 2016 Annual General Meeting of Shareholders

19 Top Work, Top Results President & CEO Remarks

20 2015 Milestones Top Category plans in action 11 Top Markets completed Top People launched International share gains Giant Tiger agreement

21 2016 Environment Canadian budget is a positive

22 2016 Environment Canadian budget is a positive U.S. still driving tourism

23 2016 Environment Canadian budget is a positive U.S. still driving tourism Low oil = net positive

24 2016 Environment Canadian budget is a positive U.S. still driving tourism Low oil = net positive Acquisition opportunities

25 Performance Drivers Top People Diversity = enterprising roles Store focused From recruitment to management tools

26 Top Categories Pharmacy Incremental Sales - Millions Furnishings Center Store Motorsports Financial Services Perishable Convenience Deli/HMR Tim Hortons Sporting Goods Incremental GP - Millions

27 Top Categories Convenience Extended hours/c-store assortment Store within store Stand alone

28 Top Categories Food Service Tim Hortons Proprietary Other branded

29 Top Categories Pharmacy OTC In-store pharmacy Remote dispensing Telepharmacy support

30 Top Categories Big Ticket Furniture Motorized Dedicated staff and space

31 Top Markets Work Flow Space Allocation Category Re-Sizing Local Market Opportunity Product & Service Offer Store Structure Recruitment Store Re-launch Design Construction

32 Top Markets pace is slower This enables: Construction efficiencies Best practice iterations More capital for other projects

33 Other Key Investments Logistics

34 Other Key Investments Logistics IT system investment

35 Other Key Investments Logistics IT system investment New stores

36 RiteWay Acquisition

37 RiteWay Acquisition Nine stores =50% increase in region sales Major presence in Road Town, BVI

38 Strength through diversity Acceleration of top programs New growth through logistics, IT and stores

39 Top Work, Top Results 2016 Annual General Meeting of Shareholders