North West Company Inc. · TSX:NWC
North West — Investor Presentation (November 2008)
34 slides from North West's investor presentation, Nov 18, 2008
Slide 1: North West Company
elfzetk, NorTH WEsT COM |
Slide 2: A leading retailer of everyday needs
A leading retailer of everyday needs to rural communities and urban neighbourhoods in Canada, Alaska, the South Pacific and the Caribbean.
Slide 3: Banner Breakdown by Geography
Banner Breakdown by Geography
Slide 4: Banner Breakdown by Geography
Banner Breakdown by Geography 140 7
Slide 5: Banner Breakdown by Geography
Banner Breakdown by Geography 140 7 32
Slide 6: Banner Breakdown by Geography
Banner Breakdown by Geography 140 7 32 29
Slide 7: Banner Breakdown by Geography
Banner Breakdown by Geography 140 7 32 29 12
Slide 8: Revenue by Banner ($ millions)
Revenue by Banner ($ millions) Total $1.3 billion $240 $550 $180 $100
Slide 9: 140 Stores
140 Stores 1 18 26 3 4 14 27 17 4 26
Slide 10: Stores
• Average 7,500 selling feet, general store format • Remote locations with high entry barriers • Food, financial services and big-ticket focus
Slide 11: 7 Stores
7 Stores f| : Ny
Slide 12: Stores
• Average 20,000 selling feet, combination format • Regional trade centers, easier access to the south • More emphasis on fresh food, fashion, pharmacy
Slide 13: 32 Stores
32 Stores
Slide 14: Stores
• Stores range from 5,000 to 40,000 selling feet • Similar market position to Northern and NorthMart • New location growth through acquisitions
Slide 15: 29 Stores
29 Stores YOUR ALL CANADIAN FAMILY DISCOUNT STORE®
Slide 16: Stores
• Average 16,000 selling feet, junior discount format • Convenience, low food prices and trend fashion/hardlines • Low investment per store, high inventory turns
Slide 17: Stores
12 Stores Sonora Kapaa (Hawaii) Hilo (Hawaii) St. Croix Tamuning (Guam) St. Thomas Dededo (Guam) Grand Cayman St. Maarten American Samoa Curacao Suva
Slide 18: Stores
• Average 30,000 selling feet, junior warehouse format • Low price leader with emphasis on food • Remote island locations generally under 75,000 population
Slide 19: Synergies Between Our Banners
Synergies Between Our Banners Community Outbound Food Support Financial Direct & Customer Logistics Mix Services Services Imports
Slide 20: Synergies Between Our Banners?
Synergies Between Our Banners?
Slide 21: New Growth Products & Services
New Growth Products & Services Financial Services Fuel Pharmacy
Slide 22: External Drivers
External Drivers • Government income transfers • Natural resource development • Public/military infrastructure spending
Slide 23: Internal Drivers
Internal Drivers • Higher store capability • New products & services • GT new store maturation • CUL integration
Slide 24: Performance Targets
Performance Targets • 5-7%/year EBITDA growth from comp stores • 2-3%/year EBITDA growth from non-comp business • Distributions at 50-60% of operating cash flow • RONA at 20%+
Slide 25: Long-Term Performance
Long-Term Performance ANNUAL TRADING PROFIT($ in millions) 120 100 80 60 40 20 0 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Slide 26: Mid-Term Performance
Mid-Term Performance CASH FLOW FROM OPERATIONS ($ in millions) / CASH DISTRIBUTIONS $100 94.7 $80 78.8 70.9 $60 63.2 58.9 54.7 $40 38.7 30.6 29.1 30.3 $20 $0 2003 2004 2005 2006 2007 Cash Flow from Operations Cash Distributions
Slide 27: Mid-Term Performance
Mid-Term Performance RONA & ROE (%) 24.9 25 21.7 20 21.0 ROE 18.0 19.7 16.0 16.2 RONA 16.6 15 14.8 14.1 10 2003 2004 2005 2006 2007
Slide 28: Mid-Term Unit Price Performance (%)
Mid-Term Unit Price Performance (%) 431 450 400 362 350 300 260 250 215 200 192 222 200 153 193 183 144 189 150 132 100 145 125 100 50 2003 2004 2005 2006 2007 2008 NWF.UN Retailing Group TSX Composite
Slide 29: 2008 Q2 YTD Performance
2008 Q2 YTD Performance TOTAL SALES ($ in millions) $700 $650 658 $600 $550 $500 491 $450 446 $400 411 382 $350 2004 2005 2006 2007 2008
Slide 30: 2008 Q2 YTD Performance
2008 Q2 YTD Performance SAME STORES % INCREASE 8 7 6.7 6 5.8 5 4.9 5.0 4 3 2 1.2 1 2004 2005 2006 2007 2008
Slide 31: 2008 Q2 YTD Performance
2008 Q2 YTD Performance TRADING PROFIT PERFORMANCE ($ in millions) $58 56.7 $54 $50 $46 47.6 44.6 $42 $38 38.7 $34 33.9 $30 2004 2005 2006 2007 2008
Slide 32: 2008 Q2 YTD Performance
2008 Q2 YTD Performance NET EARNINGS ($ in millions) $35 33.7 $30 $25 25.7 22.5 $20 18.5 $15 15.7 $10 $5 $0 2004 2005 2006 2007 2008
Slide 33: 2008 First Quarter Performance
2008 First Quarter Performance QUARTERLY DISTRIBUTION / PER UNIT RECORD DATE – JUNE 30 / PAYMENT DATE – JULY 15 $0.35 $0.30 0.32 $0.25 0.27 $0.20 0.18 $0.15 0.157 0.15 $0.10 $0.05 $0.00 2004 2005 2006 2007 2008 All per unit information has been restated to reflect the three-for-one split that occurr
Slide 34: North West Company
ofzetk, NorTH WEsT COM |
North West Company — Investor Presentation (November 2008) on 6ix