North West Company Inc. · TSX:NWC
North West — The North West Company — Shareholder Meeting (2015)
65 slides from North West's shareholder meeting presentation, 2015
Slide 1: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders
Slide 2: A Time to Invest: CFO Remarks
A Time to Invest Executive Vice-President and Chief Financial Officer Remarks
Slide 3: Strong International Sales
Strong International Sales 2014 Financial Highlights Canada Sales ($ in millions) International $1,624 $1,514 $1,543 $471 $520 $582 ! 15th consecutive year of growth ! Strong international sales +11.9% ! Positive foreign exchange impact $1,043 $1,023 $1,042 2012 2013 2014
Slide 4: International EBITDA Growth
International EBITDA Growth 2014 Financial Highlights Canada EBITDA ($ in millions) International $133.7 $138.3 $137.8 $27.1 $27.2 $36.9 ! International +$9.8 million, +36% $106.5 $111.2 $100.9 2012 2013 2014
Slide 5: Adjusted EBITDA Improvement
Adjusted EBITDA Improvement 2014 Financial Highlights Canada EBITDA ($ in millions) International $146.3 Adjusted EBITDA* $133.7 $138.3 $8.5 $27.1 $27.2 $36.9 ! International +$9.8 million, +36% ! Canada ($10.3 million) $111.2 ! One-time charges: $106.5 $100.9 • Support office restructuring • Invent
Slide 6: One-Time Costs Affect Earnings
One-Time Costs Affect Earnings 2014 Financial Highlights Net Earnings ($ in millions) $63.9 $64.3 $62.9 ! International earnings growth ! Restructuring charges 2012 2013 2014
Slide 7: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders
Slide 8: Track Record of Dividend Growth
Track Record of Dividend Growth Financial Performance Annual Dividends ($ per share) $1.16 $1.12 $1.04 ! 3.6% increase in dividends in 2014 $0.96 ! 20.8% increase since conversion to corporation 2011* 2012 2013 2014 *Excludes final distribution from North West Company Fund
Slide 9: Investing for Growth
Investing for Growth Financial Performance Capital Expenditures & Return on Net Assets CAPEX ($ in millions) $65.0 RONA (%) $51.1 $52.3 ! Attractive returns $46.4 $37.8 $43.2 ! Increasing investment 17.9 18.5 20.6 20.0 18.4 2010 2011 2012 2013 2014 2015 Forecast
Slide 10: Strong Cash Flow, Low Debt
Strong Cash Flow, Low Debt Financial Performance Debt EBITDA Historical Debt and Leverage ($ in millions) Debt-to-EBITDA $193 $201 1.5 $176 1.4 $163 $183 1.3 1.5 ! Financial strength 1.2 $126 $126 $138 $138 ! Working capital $134 efficiencies ! $180 million loan capacity 2010 2011 2012 2013 2014
Slide 11: Balanced Approach to Shareholder Returns
Balanced Approach to Shareholder Returns Financial Performance 5-Year CAGR Total Return Performance 14.0% NWC 8.8% TSX Composite (% at January 31) 200 175 150 125 100 2010 2011 2012 2013 2014 2015
Slide 12: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders
Slide 13: Sales Momentum
Sales Momentum 2015 First Quarter Performance Canada Sales ($ in millions) International $414 $364 $376 $122 $135 $160 ! 10% sales increase ! Cost-U-Less and Giant Tiger deliver growth $242 $241 $254 ! Positive foreign exchange impact Q1 2013 Q1 2014 Q1 2015
Slide 14: Strong EBITDA Performance
Strong EBITDA Performance 2015 First Quarter Performance Canada EBITDA ($ in millions) International $34.4 $30.0 $30.2 $5.6 $6.4 $10.1 ! International EBITDA +$3.7 million ! Canada EBITDA +2.5% ! Cost-U-Less and Giant Tiger key $24.4 $23.8 $24.3 contributors Q1 2013 Q1 2014 Q1 2015
Slide 15: Solid Net Earnings
Solid Net Earnings 2015 First Quarter Performance Net Earnings ($ in millions) $15.7 ! Strong EBITDA growth $12.9 $12.7 ! Lower interest expense ! 23.8% increase in Net Earnings Q1 2013 Q1 2014 Q1 2015
Slide 16: Stable Dividends
Stable Dividends 2015 First Quarter Performance Quarterly Dividends ($ per share) $0.29 $0.29 $0.28 ! Potential for future increase Q1 2013 Q1 2014 Q1 2015
Slide 17: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders
Slide 18: A Time to Invest: President & CEO Remarks
A Time to Invest President & CEO Remarks
Slide 19: Our Mission & Vision
Our Mission & Vision Vision To help people and communities to live better Mission To be the one-stop, trusted store of choice
Slide 20: Great Start to 2015
Great Start to 2015 ! Cost-U-Less & Giant Tiger ! Cost-U-Less tied to US recovery ! Alaskans to gain spending power
Slide 21: Giant Tiger Performance
Giant Tiger Performance ! Early spring weather ! Better operating standards ! Improved product offer
Slide 22: Store Breadth Delivering Results
Store Breadth Delivering Results ! Multi-banner 40% 60% ! International 36% 64% foot print International Canada
Slide 23: More for Our Customers
More for Our Customers A Time to Invest Video Placeholder
Slide 24: Right Time to Invest
Right Time to Invest ! Track record of disciplined spending ! Higher investment = higher One-Stop potential Trusted Store of Choice
Slide 25: Right Time to Invest
Right Time to Invest Sustainable 10% Returns ! Track record of disciplined spending ! Higher investment = higher One-Stop potential Trusted Store of Choice
Slide 26: The One-Stop Trusted Store of Choice
The One-Stop Trusted Store of Choice ! The best at serving remote markets ! “Go-to” source and solution provider ! Unique insights
Slide 27: The One-Stop Trusted Store of Choice
The One-Stop Trusted Store of Choice ! The best at serving remote markets ! “Go-to” source and solution provider ! Unique insights
Slide 28: Our Customer Offer
Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS Convenient One-Stop Trusted Reliable Store of Right Product & Services Choice Look for Best Deals
Slide 29: Our Customer Offer
Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS One-Stop Convenient Trusted Reliable Store of Right Product & Services Choice Look for Best Deals
Slide 30: Our Customer Offer
Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS One-Stop Convenient Trusted Reliable Store of Right Product & Services Choice Look for Best Deals
Slide 31: Our Customer Offer
Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS One-Stop Convenient Trusted Reliable Store of Right Product & Services Choice Look for Best Deals
Slide 32: Our Customer Offer
Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS One-Stop Convenient Trusted Reliable Store of Right Product & Services Choice Look for Best Deals
Slide 33: Our Community Promise
Our Community Promise Sustainable 10% Returns GREATER COMMUNITY IMPACT One-Stop Employment Trusted Store of Partnerships Choice Investment Support
Slide 34: Our Community Promise
Our Community Promise Sustainable 10% Returns GREATER COMMUNITY IMPACT One-Stop Employment Trusted Store of Partnerships Choice Investment Support
Slide 35: Our Community Promise
Our Community Promise Sustainable 10% Returns GREATER COMMUNITY IMPACT One-Stop Employment Trusted Store of Partnerships Choice Investment Support
Slide 36: Our Community Promise
Our Community Promise Sustainable 10% Returns GREATER COMMUNITY IMPACT One-Stop Employment Trusted Store of Partnerships Choice Investment Support
Slide 37: Our Community Promise
Our Community Promise Sustainable 10% Returns GREATER COMMUNITY IMPACT One-Stop Employment Trusted Store of Partnerships Choice Investment Support
Slide 38: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 39: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 40: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 41: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 42: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 43: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 44: Top Categories
Top Categories ! Leverage local store reach
Slide 45: Top Categories
Top Categories ! Leverage local store reach ! Innovative pharmacy services
Slide 46: Top Categories
Top Categories ! Leverage local store reach ! Innovative pharmacy services ! Baby category potential
Slide 47: Top Categories
Top Categories ! Redeploy working capital ! Free valuable selling space
Slide 48: Top Markets
Top Markets ! 2015 11 new markets in northern Canada
Slide 49: Top Markets
Top Markets ! 2015 11 new markets in northern Canada ! 2016 16 new markets
Slide 50: Top Markets
Top Markets ! 2015 11 new markets in northern Canada ! 2016 16 new markets ! 2017 major investment in Iqaluit, NU
Slide 51: Top Markets
Top Markets ! 2015 11 new markets in northern Canada ! 2016 16 new markets ! 2017 major investment in Iqaluit, NU ! Leverage local knowledge
Slide 52: Top Markets
Top Markets ! 2015 11 new markets in northern Canada ! 2016 16 new markets ! 2017 major investment in Iqaluit, NU ! Leverage local knowledge ! Win-win: attractive returns and value to customers
Slide 53: Top Markets
Top Markets ! Talent brings stores to life
Slide 54: Top Markets
Top Markets ! Talent brings stores to life ! Another attractive investment opportunity
Slide 55: Top Markets
Top Markets ! Talent brings stores to life ! Another attractive investment opportunity ! Strong support teams in place
Slide 56: Top Markets
Top Markets ! Talent brings stores to life ! Another attractive investment opportunity ! Strong support teams in place ! Funded by admin reductions
Slide 57: Logistics Innovation
Logistics Innovation ! Aimed at creating clear advantages
Slide 58: Logistics Innovation
Logistics Innovation ! Aimed at creating clear advantages ! Challenge for bigger retailers
Slide 59: Logistics Innovation
Logistics Innovation ! Aimed at creating clear advantages ! Challenge for bigger retailers ! Drive capabilities
Slide 60: Logistics Innovation
Logistics Innovation ! Need for robust and affordable connections ! Upgrading underway ! New partnerships on the horizon
Slide 61: New Markets
New Markets ! Expand Giant Tiger store base ! Selectively consider acquisitions
Slide 62: Store Connect
Store Connect ! Store centered ! User-friendly ! Encourages ideas and action ! The way we want to work at North West
Slide 63: A Commitment to Our Core
A Commitment to Our Core ! Vision and Mission are unchanged ! Customer value offer remains compelling ! Strategy builds on greatest advantages
Slide 64: A Time to Invest
A Time to Invest
Slide 65: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders