North West Company Inc. · TSX:NWC
North West — The North West Company — Shareholder Meeting (June 2008)
66 slides from North West's shareholder meeting presentation, Jun 11, 2008
Slide 1: At Home in New Frontiers
Slide 2: Forward-looking statements
Certain information presented today may constitute forward-looking statements. Such statements reflect the Fund’s current expectations, estimates, projections, and assumptions. These forward-looking statements are not guarantees of future performance and are subject to certain risks which could caus
Slide 3: Slide 3
Slide 4: David G. Broadhurst
North West Company Fund David G. Broadhurst
Slide 5: Frank J. Coleman
North West Company Fund Frank J. Coleman
Slide 6: Wendy F. Evans
North West Company Fund Wendy F. Evans
Slide 7: R. J. (Bob) Kennedy
North West Company Fund R. J. (Bob) Kennedy
Slide 8: Gary J. Lukassen
North West Company Fund Gary J. Lukassen
Slide 9: Keith G. Martell
North West Company Fund Keith G. Martell
Slide 10: James G. Oborne
North West Company Fund James G. Oborne
Slide 11: H. Sanford (Sandy) Riley
North West Company Fiind H. Sanford (Sandy) Riley
Slide 12: “Atomeyi
rT “At\omeyi
Slide 13: January 31, 1998 - January 31, 2008
(January 31, 1998 - January 31, 2008)
Slide 14: Total Return on Initial Investment of $10,000
TOTAL RETURN ON INITIAL INVESTMENT OF $10,000 (January 31, 1988 - January 31, 2008)
Slide 15: H. Sanford (Sandy) Riley
North West Company Fiind H. Sanford (Sandy) Riley
Slide 16: Trust or Corporate Structure
TRUST OR CORPORATE STRUCTURE • Distribution/Dividend Policy • Same Vision for Growth
Slide 17: “Atomeyi
rT “At\omeyi
Slide 18: Sales Growth
2007 Performance SALES GROWTH ( in millions) $1,050 $900 $750 $600 $450 $300 $150 $0 - 2003 2004 2005 2006 2007
Slide 19: Same Store Sales (%) Increase
SAME STORE SALES (%) INCREASE
Slide 20: Trading Profit Growth
TRADING PROFIT GROWTH ($ in millions)
Slide 21: Net Earnings
2007 Performance NET EARNINGS ( in millions) $75 $60 $45 $30 $15 $0 2003 2004 2005 2006 2007
Slide 22: Net Earnings per Unit (diluted)
NET EARNINGS PER UNIT (diluted) All per unit information has been restated to reflect the three-for-one split that occurred on September 20, 2006.
Slide 23: Cash Flow from Operations / Cash Distributions
CASH FLOW FROM OPERATIONS ($ in millions) / CASH DISTRIBUTIONS Cash Flow from Operations Cash Distributions
Slide 24: RONA & ROE (%)
2007 Performance RONA & ROE (%) 25 24.9 20 -® ROE - RONA 15 14.1 10 2003 2004 2005 2006 2007
Slide 25: Total Return
TOTAL RETURN 19 4.9 -12.9 NWF Business Retail Trusts Sector
Slide 26: NWF.UN, Retailing Group, TSX Composite
NWF.UN Retailing Group TSX Composite
Slide 27: Total Sales
2008 First Quarter Performance TOTAL SALES ( in millions) $350 $300 $250 $200 : q i i; $100 $50 $0 Q1 2004 Q12005 Q12006 Q12007 Q1 2008
Slide 28: Same Stores % Increase
2008 First Quarter Performance SAME STORES % INCREASE 6% 5% 4% 3% 2% 0% Q1 2004 Q12005 Q12006 Q12007 Q1 2008
Slide 29: Trading Profit Performance
TRADING PROFIT PERFORMANCE ($ in millions)
Slide 30: Net Earnings
2008 First Quarter Performance NET EARNINGS ( in millions) $16 $14 Q1 2004 Q12005 Q12006 Q12007 Q1 2008
Slide 31: Quarterly Distribution / Per Unit
QUARTERLY DISTRIBUTION / PER UNIT RECORD DATE – JUNE 30 / PAYMENT DATE – JULY 15 All per unit information has been restated to reflect the three-for-one split that occurred on September 20, 2006.
Slide 32: “Atomeyi
rT “At\omeyi
Slide 33: $1.3 Billion Generated by Stores
$1.3) Billion Generated by 221 Stores
Slide 34: Annualized Revenue by Banner
Annualized Revenue by Banner ($ in millions)
Slide 35: Complementary Store Banners
Complementary Store Banners
Slide 36: Accessible, friendly and human scale
• Accessible, friendly & human scale • Counted on to help make lives better • A “multi-local” approach
Slide 37: Accessible, friendly and human scale
• Accessible, friendly & human scale • Counted on to help make lives better • A “multi-local” approach
Slide 38: 2007 Achievements
• Cost-U-Less acquisition • 21 new stores • Major reinvestments in 18 stores • 1,200 new associates
Slide 39: Seven New Giant Tiger Stores
2007 Achievements Seven New Giant Tiger Stores Saskatoon Winnipeg |
Slide 40: Seven New Giant Tiger Stores
2007 Achievements Seven New Giant Tiger Stores Edmonton Cranbrook Lethbridge
Slide 41: Northern Canada Store Investment
Northern Canada Store Investment
Slide 42: Northern Canada Store Investment
Northern Canada Store Investment
Slide 43: Northern Canada Store Investment
Northern Canada Store Investment
Slide 44: International Expansion – The Strategic Fit
International Expansion – The Strategic Fit • Remoteness, second world infrastructure • Unique, indigenous cultures • Regulatory barriers to entry • Linked to our existing supplier base
Slide 45: Cost-U-Less Considerations
Cost-U-Less Considerations • A few markets that we knew well • Guam was a first priority • Cost-U-Less sale process intervened
Slide 46: Cost-U-Less Considerations
Cost-U-Less Considerations • A few markets that we knew well • Guam was a first priority • Cost-U-Less sale process intervened
Slide 47: Cost-U-Less Considerations
Cost-U-Less Considerations • Caribbean region strength • Remote island, warehouse store expertise • Transition has been smooth • Deeper analysis showed market and people strength
Slide 48: Cost-U-Less Considerations
Cost-U-Less Considerations • Caribbean region strength • Remote island, warehouse store expertise • Transition has been smooth • Deeper analysis showed market and people strength
Slide 49: Selling Event Focus
Selling Event Focus • Plans to the “event”, not the calendar • Sets targets and build excitement • Northern Canada +16.7% • Alaska +14.6%
Slide 50: Selling Event Focus
Selling Event Focus • Plans to the “event”, not the calendar • Sets targets and build excitement • Northern Canada +16.7% • Alaska +14.6%
Slide 51: Store-Based Ordering
Store-Based Ordering • Essential to serving unique communities • General merchandise ordering shift to store • New technology, processes and learning • Overall goal of 90% utilization achieved
Slide 52: Store-Based Ordering
Store-Based Ordering • Essential to serving unique communities • General merchandise ordering shift to store • New technology, processes and learning • Overall goal of 90% utilization achieved
Slide 53: 2008 Plans
2008 Plans
Slide 54: Sustaining our Business
Sustaining our Business • Energy inflation • Giant Tiger food competition • General recession spillover • Matching 2007 northern performance
Slide 55: Growing our Business
Growing our Business • Integrate 2007 new investment • Optimize food sales • Pursue discretionary spending • Develop leadership and planning capability
Slide 56: Impact of Fuel Costs - Energy (cents per kWH)
Impact of Fuel Costs - Energy (cents per kWH)
Slide 57: Impact of Fuel Costs - Freight (cents per lb)
Impact of Fuel Costs - Freight (cents per lb)
Slide 58: Impact of Fuel Costs - Gas (cents per litre)
Impact of Fuel Costs - Gas (cents per litre)
Slide 59: Impact of Fuel Costs
Impact of Fuel Costs • More income will be spent on essentials • Remote customers will need support • Road customers will shop close to home • Positive for food, some growth in durables
Slide 60: Giant Tiger Food Business
Giant Tiger Food Business • Manitoba is the growth model • Food is a key traffic builder • Growth limited by current environment
Slide 61: Giant Tiger Food Business
Giant Tiger Food Business • Manitoba is the growth model • Food is a key traffic builder • Growth limited by current environment
Slide 62: Giant Tiger Food Business
Giant Tiger Food Business • Keep finding lower costs • Build “stock-up” shopping appeal • Expand private label selection • Slower pace until outlook improves
Slide 63: Giant Tiger Food Business
Giant Tiger Food Business • Keep finding lower costs • Build “stock-up” shopping appeal • Expand private label selection • Slower pace until outlook improves
Slide 64: Focus on senior leaders in 2008
• Work was not completed in 2007 • Focus on 40 senior leaders in 2008 • Emphasis on practicing our principles
Slide 65: Ian Sutherland
North West Company Fund lan Sutherland
Slide 66: Slide 66
The North West Company — Shareholder Meeting (June 2008) on 6ix