North West Company Inc. · TSX:NWC
North West — The North West Company Fund — Shareholder Meeting (May 2001)
63 slides from North West's shareholder meeting presentation, May 31, 2001
Slide 1: North West Company Fund
NORTH WEST COMPANY FUN
Slide 2: Relative Stock / Unit Price Performance (%)
RELATIVE STOCK / UNIT PRICE PERFORMANCE (%) 250 237 226 189 192 200 203 144 143 140 183 150 100 100 148 151 147 100 126 126 127 100 50 0 1996 1997 1998 1999 2000 2001 NWF TSE 300 TSE MERCHANDISING INDEX
Slide 3: Components of NWF Total Return 1995-2000
COMPONENTS OF NWF TOTAL RETURN 1995-2000 Unit price increase .. 44.1% Dividends, distributions .. 54.1% Compound return on dividends, distributions . 38.8%
Slide 4: NWF Structure
NWF STRUCTURE UNITHOLDERS EACH UNIT 100% - 15M units NWF NWF $11.67 sub debt @ 12.5% 1 common share 100% - sub debt $175M 100% - common 15M shares NWC NWC Income distributable per unit: 2000 - $1.44 or $21.4 M
Slide 5: Capital Structure
CAPITAL STRUCTURE 201 ($ in millions) 200 191 1.50 1.6:1 178 175 176 174 171 1.27 160 164 170 147 150 1.4:1 1.25 1.26 140 1.19 1.06 1.01 100 0.92 1.2:1 1.00 50 1.0:1 0.75 0 0.8:1 0.50 1995 1996 1997 1998 1999 2000 DEBT EQUITY DEBT:EQUITY
Slide 6: North West Company Fund
NORTH WEST COMPANY FUN
Slide 7: Our vision is to be the most successful small market retailer
Our vision is to be the most successful small market retailer in North America.
Slide 8: North West Company Fund
NORTH WEST COMPANY FUN
Slide 9: who we are
Slide 10: who we are
S ( : 2
Slide 11: who we are
Slide 12: who we are
Slide 13: Financial Services
=) Noriinern Financial Services
Slide 14: who we are
Slide 15: who we are
who we are THE NORTH WEST COMPANY INUIT ART MARKETING SERVICE FUR MARKETING BRANCH
Slide 16: Wholesale Distributors
w — co w = o = = WHOLESALE DISTRIBUTORS
Slide 17: Canada Post
CANADA Y POSTES POST CANADA
Slide 18: Revenue ($ in millions)
REVENUE ($ in millions) CANADA ALASKA $700 $659 $650 $629 $626 $616 $592 $156 $600 $590 $118 $135 $148 $121 $116 $550 $500 $498 $494 $503 $450 $471 $474 $478 $400 $350 $300 $0 1995 1996 1997 1998 1999 2000
Slide 19: Trading Profit ($ in millions)
TRADING PROFIT ($ in millions) $63.9 $62.0 $59.4 $60.0 60 $57.1 50 $48.0 40 30 20 1995 1996 1997 1998 1999 2000
Slide 20: Change by Quarter (%)
CHANGE BY QUARTER (%) SALES TRADING PROFIT 20.0 18.0 17.7 16.0 14.0 13.6 12.0 10.0 8.0 6.6 5.1 5.9 6.0 3 4.0 2.0 0.0 -2.0 -4.0 -2.4 -3.2 -6.0 -8.0 Q1 Q2 Q3 Q4
Slide 21: Earnings per Unit
EARNINGS PER UNIT 2.00 $1.89 $1.82 $1.86 1.80 1.60 $1.40 1.40 $1.18 1.20 1.00 0.80 $0.68 0.60 0.40 0.20 0.00 1995 1996 1997 1998 1999 2000
Slide 22: 2001 first quarter performance
NORTH WEST COMPANY FUND 2001 first quarter performance
Slide 23: Canadian Sales
CANADIAN SALES 10.0% 8.3% 8.0% 6.0% 4.7% 4.0% 2.0% 0.0% -2.0% Food -4.0% -6.0% 2000 2001
Slide 24: Food Sales Growth by Quarter (%)
FOOD SALES GROWTH BY QUARTER (%) 10.0 8.3 8.0 6.5 6.0 6.7 4.7 4.0 4.3 4.3 2.0 1.6 1.4 1.0 0.0 0.5 - 0. -2.0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1998 1999 2000 2001
Slide 25: Canadian Sales
CANADIAN SALES 10.0% 8.3% 8.0% 6.0% 4.7% 4.2% 4.0% 2.0% 0.0% -2.0% -4.0% -2.9% -6.0% Food General Merchandise -8.0% -10.0% 2000 2001
Slide 26: Gen. Merchandise Sales Growth by Quarter (%)
GEN. MERCHANDISE SALES GROWTH BY QUARTER (%) 8.0% 6.0% 4.2% 3.2% 4.0% 4.7% 4.2% 2.0% 0.0% -2.0% -3.0% -4.0% -5.1% -6.0% -5.9% -8.0% -8.5% -10.0% -10.4% -12.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1999 2000 2001
Slide 27: Canadian Trading Profit ($ in millions)
CANADIAN TRADING PROFIT ($ in millions) 14.0 $12.6 12.0 $11.5 $11.6 $10.8 $10.2 10.0 $8.9 8.0 6.0 4.0 2.0 0.0 1996 1997 1998 1999 2000 2001
Slide 28: Alaskan Sales
ALASKAN SALES Food 10.0% 9.4% 8.0% 6.0% 4.0% 2.0% -1.4% 0.0% -2.0% 2000 2001
Slide 29: Alaskan Sales
ALASKAN SALES Food General Merchandise 9.4% 10.0% 8.1% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -1.4% -1.8% 2000 2001
Slide 30: Alaskan Trading Profits
ALASKAN TRADING PROFITS ($ in millions, Canadi $1.5 $1.1 $1.0 $1.0 $0.8 $0.7 $0.5 $0.5 $0.0 $0.0 1996 1997 1998 1999 2000 2001
Slide 31: Earnings per Unit
EARNINGS PER UNIT $0.35 $0.34 0.35 0.30 $0.29 0.25 0.20 $0.19 $0.16 0.15 $0.11 0.10 0.05 0.00 1996 1997 1998 1999 2000 2001
Slide 32: opportunities for growth
NORTH WEST COMPANY FUND opportunities for growth
Slide 33: Grow with the Canadian North
¥ Grow with the Canadian North
Slide 34: Close Alaska Performance Gap
¥ Grow with the Canadian North ¥ Close Alaska Performance Gap
Slide 35: New Growth Ventures
¥ Grow with the Canadian North ¥ Close Alaska Performance Gap ¥ New Growth Ventures
Slide 36: opportunities for growth
opportunities for growth Grow with the Canadian North
Slide 37: Grow with the Canadian North
Grow with the Canadian North • Strategy #1 - Streamline our business.
Slide 38: Grow with the Canadian North
Grow with the Canadian North • Strategy #1 - Streamline our business. • Strategy #2 - Focus on what our customers value the most and what creates value for us.
Slide 39: Grow with the Canadian North
Grow with the Canadian North • Strategy #1 - Streamline our business. • Strategy #2 - Focus on what our customers value the most and what creates value for us. • Strategy #3 - Be the best at selling.
Slide 40: Grow with the Canadian North
Grow with the Canadian North • Strategy #1 - Streamline our business.
Slide 41: Grow with the Canadian North
Grow with the Canadian North • Strategy #2 - Focus on what our customers value the most and what creates value for us.
Slide 42: opportunities for growth
opportunities for growth ht p ; SLxclusive aw) CZSelections . BBQ 1 & Chicken Wings & » =
Slide 43: opportunities for growth
opportunities for growth
Slide 44: opportunities for growth
opportunities for growth ee
Slide 45: Be the Best at Selling
Grow with the Canadian North • Strategy #3 - Be the best at selling.
Slide 46: Opportunities for growth
Opportunities for growth
Slide 47: opportunities for growth
opportunities for growth
Slide 48: fee
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Slide 49: Growth in Aboriginal Management
GROWTH IN ABORIGINAL MANAGEMENT 250 197 200 162 167 150 128 136 100 90 50 0 1996 1997 1998 1999 2000 2001
Slide 50: Be the Best at Selling
Be the Best at Selling ¥ Management Development ¥ Wintering Partners Conference ¥ Store Compensation
Slide 51: opportunities for growth
opport unities for growth Sy
Slide 52: Close Alaska Performance Gap
¥ Grow with the Canadian North ¥ Close Alaska Performance Gap
Slide 53: Close Alaska Performance Gap (%)
CLOSE ALASKA PERFORMANCE GAP (%) 15 Trading Profit % 12.1 11.3 10.7 10.7 10.8 10.1 10 6.0 6.0 4.7 5 3.0 1.9 0.5 0 1995 1996 1997 1998 1999 2000
Slide 54: New Growth Ventures
¥ Grow with the Canadian North ¥ Close Alaska Performance Gap ¥ New Growth Ventures
Slide 55: New Growth Ventures
New Growth Ventures ¥ Greater scale = lower costs for core business. ¥ Apply unique market knowledge. ¥ Partner with another market leade
Slide 56: opportunities for growth
opportunities for growth
Slide 57: opportunities for growth
Slide 58: opportunities for growth
Slide 59: opportunities for growth
Slide 60: opportunities for growth
opportunities for growth
Slide 61: Giant Tiger
Slide 62: North West Company Fund
NORTH WEST COMPANY FUN
Slide 63: annual meeting
annual meeting
The North West Company Fund — Shareholder Meeting (May 2001) on 6ix