Loblaw Companies Limited · TSX:L
Loblaw Companies — Investor Day (March 2011)
20 slides from Loblaw Companies's investor day presentation, Mar 3, 2011
Slide 1: IFRS Investor Conference
IFRS Investor Conference March 3, 2011 1
Slide 2: Forward-Looking Information
Forward-Looking Information This publication for Loblaw Companies Limited and George Weston Limited (the “Companies”) contains forward-looking statements about the Companies’ objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prosp
Slide 3: Preliminary Unaudited IFRS Transitional Adjustments
Preliminary Unaudited IFRS Transitional Adjustments These materials are intended to provide information on the significant changes to Loblaw and George Weston Limited (“GWL”) that will arise from the transition to IFRS from Canadian Generally Accepted Accounting Principles (“CGAAP”) The signific
Slide 4: IFRS vs. Canadian GAAP
IFRS vs. Canadian GAAP Some standards in IFRS differ considerably from Canadian GAAP (e.g., fixed asset impairments, securitization, consolidation model – no VIE’s, additional financial instruments) Applying IFRS requires further professional judgement as there are additional dditi l accounting
Slide 5: Significant Optional Elections on Adoption (IFRS 1) for Loblaw
Significant Optional Elections on Adoption (IFRS 1) for Loblaw • On adoption, IFRS permits the capitalization of borrowing IAS 23 costs on a prospective basis with all previously capitalized B Borrowing i interest costs being eliminated through opening retained Costs earnings • Impact on Loblaw – As
Slide 6: Significant Impacts on Adoption
Significant Impacts on Adoption IFRS Major Difference Impact on Loblaw Standard • De-recognition of the carrying value • Transition: Assets and equity will Property, Property of fixed assets replaced prior to the decrease to reflect the retrospective Plant and end of their useful lives application o
Slide 7: Significant Impacts on Adoption
Significant Impacts on Adoption IFRS Major Difference Impact on Loblaw Standard • IFRS 1 election discussed above • Transition: Equity will decrease, Employee E l • Measurement date – plans are primaril as a res primarily result lt of the IFRS 1 Benefits valued as at year-end date election to recogn
Slide 8: Significant Impacts on Adoption
Significant Impacts on Adoption IFRS Major Difference Impact on Loblaw Standard • Fixed asset impairment testing to • Transition: Assets and equity will Impairment of be performed at a lower level than decrease as a result of incremental Assets CGAAP fixed asset impairment IAS 36 • IFRS uses one-ste
Slide 9: Summary of Immaterial Impacts on Adoption
Summary of Immaterial Impacts on Adoption IFRS Impact on Loblaw Major Difference Standard • Cash settled stock based • Transition: Increase in liabilities, decrease in IFRS 2 compensation measured at equity q y on transition as a result of the use of fair value instead of intrinsic fair value Share
Slide 10: Segment Reporting
Segment Reporting As a result of the impacts of Consolidations and Financial Instruments Loblaw will now have two distinct reportable operating segments: Grocery Retailing Financial Products and Services Commencing Q1 2011 the Company will disclose Revenue, Operating Income, Depreciation and
Slide 11: Opening Balance Sheet Impact
Opening Balance Sheet Impact Loblaw Companies Limited Summary of Preliminary IFRS Adjustments on Opening Balance Sheet (unaudited) As at January 3, 2010 Shareholders' ($ millions, preliminary unaudited) Equity Liabilities Assets Canadian GAAP $ 6,273 $ 8,718 $ 14,991 Differences (decreasing) increas
Slide 12: 2010 Quarterly IFRS Net Earnings Impact
2010 Quarterly IFRS Net Earnings Impact Loblaw Companies Limited 2010 Quarterly IFRS Net Earnings Impact (preliminary unaudited, unless otherwise indicated) For the year ended First Quarter Second Quarter Third Quarter Fourth Quarter January 1, 2011 Canadian ($ millions except where Canadian Canadia
Slide 13: 2010 Quarterly IFRS EBITDA Impact
2010 Quarterly IFRS EBITDA Impact Loblaw Companies Limited 2010 Quarterly IFRS EBITDA Impact (preliminary, (preliminary unaudited) For the year ended First Second Third Fourth January 11, ($ millions) Quarter Quarter Quarter Quarter 2011 Net earnings $ 138 $ 174 $ 196 $ 126 $ 634 Add impact of the f
Slide 14: What's not changing?
What’s not changing? Short term and long term strategic plans Focus and execution of renewal plan Capital p management g and funding g strategy gy The Company p y will release its first q quarter unaudited IFRS Financial Statements on May 4, 2011 with the required 2010 reconciliations. 14
Slide 15: Impact of IFRS on George Weston Limited
Impact of IFRS on George Weston Limited 15
Slide 16: Impact of IFRS on George Weston Limited
Impact of IFRS on George Weston Limited The impact of IFRS on George Weston Limited, excluding Loblaw, was not significant Total change in equity on transition, transition excluding the reclassification of minority interest, was a decrease of $91M for Weston Foods, and $1,334M on a consolidated
Slide 17: Opening Balance Sheet Impact
Opening Balance Sheet Impact As at January 1, 2010 GWL ($ millions, preliminary unaudited) Loblaw Weston Foods Consolidated Total Shareholders' Equity - CGAAP $ 6,273 $ 6,942 Differences (decreasing) increasing Borrowing costs (199) (199) Property, plant & equipment (58) (13) (71) Leases (1,2) (27)
Slide 18: 2010 Quarterly IFRS Net Earnings Impact
2010 Quarterly IFRS Net Earnings Impact George Weston Limited 2010 Quarterly IFRS Net Earnings Impact (preliminary unaudited, unless otherwise indicated) First Quarter Second Quarter Third Quarter Fourth Quarter For the year ended (unaudited) (unaudited) (unaudited) (unaudited) Dec 31st 2010 Canadia
Slide 19: 2010 Quarterly IFRS EBITDA Impact
2010 Quarterly IFRS EBITDA Impact George Weston Limited 2010 Quarterly IFRS EBITDA Impact (preliminary, unaudited) For the year First Second Third Fourth ended Dec 31st ($ millions) Quarter Quarter Quarter Quarter 2010 Net earnings attributable to shareholders of the Company $ 41 $ 123 $ 176 $ 86 $
Slide 20: Questions?
Questions? BO BB vviawca | WESION 2 —