North West Company Inc. · TSX:NWC
North West — The North West Company — Investor Presentation (October 1999)
29 slides from North West's investor presentation, Oct 5, 1999
Slide 1: Presentation by Edward Kennedy, President & CEO
Presentation by Edward Kennedy, President & CEO The North West Company October 5, 1999; Toronto
Slide 2: Why Invest in North West?
“WHY INVEST IN NORTH WEST?” 1. Who We Are 2. Growth 3. Income
Slide 3: Slide 3
Slide 4: A sharper focus on growing with the North
food fr 4 ae growing with the North
Slide 5: The North West Company
THE NORTH WEST COMPANY INS
Slide 6: Number of stores and revenue: Canada and Alaska
# of stores Revenue Canada = 151 $494 million Alaska = 25 $135 million
Slide 7: Why Invest in North West?
“WHY INVEST IN NORTH WEST?” 1. Who We Are ! 2. Growth 3. Income
Slide 8: Population under 25 years of age
Population Under 25 Years of Age 34% 49% Canadian Average NWC Markets 2.3% 1.1% Source: Statistics Canada Census 1996 Northern Canada Canadian Growth Rate Growth Rate
Slide 9: Economic Drivers
ECONOMIC DRIVERS URBAN MARKET Lower interest rates Increased housing Increased home improvement, Higher consumer turnover appliances, electronic sales confidence NATURAL RESOURCES MARKET Resource price cycle New capacity Jobs, overtime, increased employment and spending in all non-food categories. A
Slide 10: V2K+ Growth Strategies
“V2K+” GROWTH STRATEGIES " Achieve Canadian productivity gains # Increase Canadian market share $ Accelerate Alaska performance trend
Slide 11: Achieve Canadian Productivity Gains
" Achieve Canadian Productivity Gains % Admin. expenses reduced by $5 mm % Eliminate $35 million in under- performing assets % Gains from technology (central MMS, auto replenish, tickets-off, auto receiving)
Slide 12: Increase Canadian Market Share
# Increase Canadian Market Share % Expand in-store offer for food, everyday needs and financial services % Expand catalogue offer for apparel, AF&E % Shift to more “extreme value” price points % Build people capability in foods % Achieve 5% comp. sales growth by 2000
Slide 13: Spring Mix
SPRING MIX meN FRESH BABY LETTUCES & GREENS \
Slide 14: Accelerate Alaska Performance Trend: EBITDA
$ Accelerate Alaska Performance Trend EBITDA $7.0 $6.3 $6.0 $5.0 $4.0 $3.6 $3.3 $3.0 $2.2 $2.2 $1.8 $2.0 $0.6 $1.0 $0.0 1994 1995 1996 1997 1998 1998 1999 6Mos. 6Mos.
Slide 15: Accelerate Alaska Performance Trend
$ Accelerate Alaska Performance Trend % Leverage local market knowledge curve % Increase “mid-sized” new store growth rate % Move on opportunities created by local market consolidations % Exit “can’t be fixed” locations
Slide 16: Earnings per Unit
EARNINGS PER UNIT* Before Unusual Items * Earnings per share for 1995 - 1997 $2.00 $1.82 $1.50 $1.40 $1.18 $0.92 $1.00 $0.70 $0.68 $0.50 $0.00 1995 1996 1997 1998 1998 1999 6Mos. 6Mos.
Slide 17: Slide 17
Slide 18: A sharper focus on growing with the North
food fr 4 ae growing with the North
Slide 19: Slide 19
Slide 20: Slide 20
Slide 21: Why Invest in North West?
“WHY INVEST IN NORTH WEST?” 1. Who we are ! 2. Growth ! 3. Income
Slide 22: NWF Structure
NWF STRUCTURE UNITHOLDERS EACH UNIT 100% - 15 M units NWF NWF $11.67 sub debt @ 12.5% 100% - sub debt $175 M 1 common share 100% common 15 M shares NWC NWC Income distributable per unit: 1998 - 1.25 1999 - 1.44
Slide 23: Pre-Tax Cash Flow
PRE-TAX CASH FLOW $ in millions 50.00 $44.1 $42.2 $45.1 $37.9 40.00 $33.3 30.00 $22.0 20.00 10.00 1994 1995 1996 1998 1999 0.00 1997 6 Mos.
Slide 24: Debt : Equity
DEBT : EQUITY 250 1.35 $ Millions 1.3 1.3 1.30 200 177 175 172 172 1.25 169 160 178 147 160 164 150 1.2 1.20 140 1.15 100 1.1 1.1 1.10 1.1 50 1.05 0 1.00 1994 1995 1996 1997 1998 SA 99 Debt Equity debt : equity
Slide 25: Why Invest in North West?
“WHY INVEST IN NORTH WEST?” 1. Who we are ! 2. Growth ! 3. Income !
Slide 26: Merchandising Indices
MERCHANDISING INDICES: FOOD STORES 57.8% NWF.UN 18.5% SPECIALITY STORES 14.0% TSE 2.1% MERCHANDISING 0.3% DEPARTMENT STORES -21.1% WHOLESALE DIST. -31.1% HOSPITALITY -54.7%
Slide 27: Other Comparables
OTHER COMPARABLES: Closed Apr.5 /99 Yield % P/E Canadian Tire 41.10 1.0 19.2 Sears Canada 26.00 0.9 18.3 Wal-Mart 95.38 0.4 49.7 Empire 25.30 1.1 5.5 Loblaws 40.50 0.5 38.2 Safeway 51.50 -- 32.9 NWF.UN 14.35 8.3 7.9* * Does not include a $0.74 charge related to Canadian re-structuring
Slide 28: Questions?
‘QUESTIONS?
Slide 29: For additional information on the Fund or the Company
For additional information on the Fund or the Company, please call 204-934-1501 or toll-free 1-800-563-0002; fax 204-934-1317; e-mail rlaxdal@northwest.ca….or visit our web site www.northwest.ca.
The North West Company — Investor Presentation (October 1999) on 6ix