North West Company Inc. · TSX:NWC
North West — North West Company Fund — Shareholder Meeting (June 2006)
65 slides from North West's shareholder meeting presentation, Jun 8, 2006
Slide 1: 2006 Annual & Special Meeting of Unitholders
2006 Annual & Special Meeting of Unitholders ENTERPRISING NORTH WEST NORTH WEST COMPANY FUND
Slide 2: David Broadhurst
North West Company Fund The North West Company Inc.
Slide 3: Frank Coleman
North West Company Fund The North West Company Inc.
Slide 4: Wendy Evans
North West Company Fund The North West Company Inc. Wendy Evans
Slide 5: R. J. (Bob) Kennedy
North West Company Fund The North West Company Inc.
Slide 6: Gary Lukassen
North West Company Fund The North West Company Inc. Gary Lukassen
Slide 7: Keith Martell
North West Company Fund The North West Company Inc.
Slide 8: James Oborne
North West Company Fund The North West Company Inc. James Oborne
Slide 9: H. Sanford (Sandy) Riley
North West Company Fund The North West Company Inc. H. Sanford (Sandy) Riley
Slide 10: Enterprising North West
ENTERPRISING NORTH WEST NORTH WEST COMPANY FUND
Slide 11: Sales Growth ($ in millions)
SALES GROWTH ($ in millions) 2001 2002 2003 2004 2005
Slide 12: Trading Profit Growth ($ in millions)
TRADING PROFIT GROWTH ($ in millions) 2001 2002 2003 2004 2005
Slide 13: Net Earnings Per Unit (diluted)
NET EARNINGS PER UNIT (diluted) 2001 2002 2003 2004 2005
Slide 14: Cash Flow from Operations / RONA
CASH FLOW FROM OPERATIONS ($ in millions) / RONA (%) % % % Cash Flow from Operations % RONA (%) % % % % 2001 2002 2003 2004 2005
Slide 15: Capital Structure
CAPITAL STRUCTURE Debt ($ in millions) Equity ($ in millions) Debt : Equity 2001 2002 2003 2004 2005
Slide 16: NWF Cash Paid Out & Reinvested
NWF CASH PAID OUT & REINVESTED Fiscal Year 2005 2004 2003 2002 2001 Cash flow from Operations/unit $ 4.39 3.92 3.65 3.67 3.74 Payout $ 1.88 1.80 1.90* 1.56 1.46 Payout % 42.8 45.9 52.1 42.5 39.0 Reinvested $ 2.51 2.12 1.75 2.11 2.28 *includes special distribution of $0.34
Slide 17: Sales Growth
SALES GROWTH • Consolidated +8.9% • Canada Food +11.0% • Canada General Merchandise +8.3% • Alaska Food +9.6%
Slide 18: Same Store Sales Growth
SAME STORE SALES GROWTH • Canada Food +7.9% • Canada General Merchandise +0.6% • Alaska +3.9%
Slide 19: Trading Profit Performance ($ in millions)
TRADING PROFIT PERFORMANCE ($ in millions) Total 16.8 Canada 2.7 Alaska 14.3 13.2 14.6 1.4 2.3 1.6 12.9 11.6 12.3 14.1 Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006
Slide 20: Trading Profit Performance ($ in millions)
TRADING PROFIT PERFORMANCE ($ in millions) Total 16.8 Canada 2.7 Alaska 14.3 13.2 14.6 1.4 2.3 1.6 12.9 11.6 12.3 14.1 17.4 Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006
Slide 21: Trading Profit Performance ($ in millions)
TRADING PROFIT PERFORMANCE ($ in millions) 20.2 Total 16.8 2.8 Canada 2.7 Alaska 14.3 13.2 14.6 1.4 2.3 1.6 12.9 11.6 12.3 14.1 17.4 Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006
Slide 22: Net Earnings ($ in millions)
NET EARNINGS ($ in millions) Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006
Slide 23: Limited Partnership
LIMITED PARTNERSHIP • Canadian Business – Northern Canada – Giant Tiger • Increased Profitability
Slide 24: Enterprising North West
ENTERPRISING NORTH WEST NORTH WEST COMPANY FUND
Slide 25: Don Coles, Suzanne Paquin
Don Coles Suzanne Paquin
Slide 26: Pay for performance
• Pay for performance • Upper tier pay for upper tier performance
Slide 27: Edward Kennedy, 2006 Distinguished Canadian Retailer of the Year
Slide 28: Enterprising North West
ENTERPRISING NORTH WEST NORTH WEST COMPANY FUND
Slide 29: Relative Unit Price Performance (%)
RELATIVE UNIT PRICE PERFORMANCE (%) NWF.UN Retailing Group TSX Composite 1999 2000 2001 2002 2003 2004 2005 2006
Slide 30: peaeeteup
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Slide 31: Net Earnings, Trading Profit, Same Store Sales
NET EARNINGS TRADING PROFIT SAME STORE SALES 5 Year 2005 5 Year 2005 5 Year 2005 Average Average Average
Slide 32: 2005 Next Level Performance
Slide 33: $25 million in store technology
• $25 million in store technology • Leveraged by broadband network • Enables new, creative products
Slide 34: $25 million in store technology
• $25 million in store technology • Leveraged by broadband network • Enables new, creative products
Slide 35: $25 million in store technology
• $25 million in store technology • Leveraged by broadband network • Enables new, creative products
Slide 36: 173 managers trained in Best Practice
• 173 managers trained in Best Practice • Need for follow-up identified • New plan brings training to stores
Slide 37: 173 managers trained in Best Practice
• 173 managers trained in Best Practice • Need for follow-up identified • New plan brings training to stores
Slide 38: Solid contribution in 2005
• Solid contribution in 2005 • Expertise grows with store maturity • Word of mouth = customer loyalty
Slide 39: Solid contribution in 2005
• Solid contribution in 2005 • Expertise grows with store maturity • Word of mouth = customer loyalty
Slide 40: 11 years of profit growth
• 11 years of profit growth • ROI leads North West
Slide 41: 11 years of profit growth
• 11 years of profit growth • ROI leads North West
Slide 42: Retail Food
• Retail Food • New Stores • Healthcare • Gas Bars
Slide 43: Leading same store sales
• Leading same store sales • Focus on being “Priced Right” • Better promotions, more newness
Slide 44: Leading same store sales
• Leading same store sales • Focus on being “Priced Right” • Better promotions, more newness
Slide 45: Exclusive Sections
ES Exclusive Sections Gourmet Cookies 20 Beef ecm ee . yr Burgers P. ——_ +. NATURAI SPRING WATE
Slide 46: New stores drive "plus" growth
• New stores drive “plus” growth • 24 new stores in 2005-07 • GT, AC and Northern Canada
Slide 47: New stores drive "plus" growth
• New stores drive “plus” growth • 24 new stores in 2005-07 • GT, AC and Northern Canada
Slide 48: New stores drive "plus" growth
• New stores drive “plus” growth • 24 new stores in 2005-07 • GT, AC and Northern Canada
Slide 49: Natural extension to "Everyday Store"
• Natural extension to “Everyday Store” • Plan and people now in place • Hub and spoke model, tech-enabled
Slide 50: Five new pharmacies/telepharmacies in 2006
• Five new pharamacies/ telepharmacies in 2006 • Winnipeg hub site in 2007 • Expand non-prescription products
Slide 51: Five new pharmacies/telepharmacies in 2006
• Five new pharamacies/ telepharmacies in 2006 • Winnipeg hub site in 2007 • Expand non-prescription products
Slide 52: Another "Everyday Store" fit
• Another “Everyday Store” fit • 7-11 convenience plus complete food • Testing in road stores in 2007
Slide 53: Another "Everyday Store" fit
• Another “Everyday Store” fit • 7-11 convenience plus complete food • Testing in road stores in 2007
Slide 54: Another "Everyday Store" fit
• Another “Everyday Store” fit • 7-11 convenience plus complete food • Testing in road stores in 2007
Slide 55: Another "Everyday Store" fit
• Another “Everyday Store” fit • 7-11 convenience plus complete food • Testing in road stores in 2007
Slide 56: 20 million in growth capital
• 20 million in growth capital • New locations • New businesses • Major store expansions
Slide 57: Leadership at North West
Slide 58: Being Accountable
• Being Accountable • Getting Aligned • Delegating to the Right Level • Building Trust
Slide 59: Accountability
Leadership at North West ¢ Accountability
Slide 60: Accountability
• Accountability • Alignment
Slide 61: Accountability
• Accountability • Alignment • Delegating
Slide 62: Accountability
• Accountability • Alignment • Delegating • Trust
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Slide 64: Carl McKay, Len Flett
Carl McKay Len Flett
Slide 65: Enterprising North West
ENTERPRISING NORTH WEST NORTH WEST COMPANY FUND
North West Company Fund — Shareholder Meeting (June 2006) on 6ix