North West Company Inc. · TSX:NWC
North West — The North West Company — Shareholder Meeting (2010)
73 slides from North West's shareholder meeting presentation, 2010
Slide 1: 2010 Annual & Special Meeting of Unitholders
2010 Annual & Special Meeting of Unitholders
Slide 2: Caution Concerning Forward Looking Statements
Caution Concerning 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
Slide 3: 2010 Annual & Special Meeting of Unitholders
2010 Annual & Special Meeting of Unitholders
Slide 4: David G. Broadhurst
NorTH WEST David G. Broadhurst
Slide 5: Frank J. Coleman
NorTH WEST Frank J. Coleman
Slide 6: Wendy F. Evans
NorTH WEST Wendy F. Evans
Slide 7: R. J. (Bob) Kennedy
NorTH WEST R. J. (Bob) Kennedy
Slide 8: Gary J. Lukassen
a) < = oe ~ c is*) a £ ° U ne Ww = =n he } Zz NorTH West c © aR £ | a 4 ra © O
Slide 9: Keith G. Martell
NorTH WEST Keith G. Martell
Slide 10: James G. Oborne
NorTH WEST James G. Oborne
Slide 11: Ian Sutherland
NortTuH WEST | North West Company Fund lan Sutherland
Slide 12: 2010 Annual & Special Meeting of Unitholders
2010 Annual & Special Meeting of Unitholders
Slide 13: Annual Resolutions: Appointment of Trustees
Annual Resolutions 1. Appointment of Trustees
Slide 14: Annual Resolutions: Appointment of Auditors
Annual Resolutions 2. Appointment of Auditors
Slide 15: 2010 Annual & Special Meeting of Unitholders
2010 Annual & Special Meeting of Unitholders
Slide 16: Conversion to a Share Corporation Expected Benefits
Conversion to a Share Corporation Expected Benefits Simplified tax and legal structure Greater access to capital markets New investors and improved liquidity
Slide 17: Trust vs. Corporation
Trust vs. Corporation Trust Corporation Taxable Income $ 1.36 $ 1.36 Corporate income tax payable - (0.42) After-tax income available for $ 1.36 $ 0.94 distribution/dividend Individual income tax payable $ (0.63) $ (0.22) After tax distribution/dividend $ 0.73 $ 0.72
Slide 18: Special Resolutions: Approval of Plan of Arrangement
Special Resolutions 3. Approval of Plan of Arrangement
Slide 19: Special Resolutions: Approval of Option Plan
Special Resolutions 4. Approval of Option Plan
Slide 20: Special Resolutions: Approval of Deferred Share Plan
Special Resolutions 5. Approval of Deferred Share Plan
Slide 21: Special Resolutions: Approval of Shareholder Rights Plan
Special Resolutions 6. Approval of Shareholder Rights Plan
Slide 22: Other 2009 Board Activity
NortH West North West Company Fund — Other 2009 Board Activity
Slide 23: Total Annual Return Comparisons
Total Annual Return Comparisons (December 1986 - May 2010) Source: RBC Capital Markets Quantitative Research
Slide 24: Ten-Year Unitholder Return on $10,000 Initial Investment
Ten–Year Unitholder Return on $10,000 Initial Investment 99 00 01 02 03 04 05 06 07 08 09
Slide 25: Other 2009 Board Activity
NortH West North West Company Fund — Other 2009 Board Activity
Slide 26: 2010 Annual & Special Meeting of Unitholders
2010 Annual & Special Meeting of Unitholders
Slide 27: 2009 Performance: Sales Growth
2009 Performance Sales Growth ($ in millions)
Slide 28: 2009 Performance: Trading Profit Growth
2009 Performance Trading Profit Growth ($ in millions)
Slide 29: 2009 Performance: Net Earnings
2009 Performance Net Earnings ($ in millions)
Slide 30: 2009 Performance: Cash Flow from Operations/Cash Distributions
2009 Performance Cash Flow from Operations/Cash Distributions ($ in millions) Cash Flow from Operations Cash Distributions
Slide 31: Relative Unit Price Performance (%)
Relative Unit Price Performance (%) NWF.UN Retailing Group TSX Composite
Slide 32: 2010 First Quarter Performance: Total Sales
2010 First Quarter Performance Total Sales ($ in millions)
Slide 33: 2010 First Quarter Performance: Same Store Sales
2010 First Quarter Performance Same Store Sales (excluding fx impact) Canada International Total Food 6.9% (1.7%) 3.8% General Merchandise 9.3% (1.0%) 6.9%
Slide 34: 2010 First Quarter Performance: Trading Profit
2010 First Quarter Performance Trading Profit ($ in millions)
Slide 35: 2010 First Quarter Performance: Net Earnings
2010 First Quarter Performance Net Earnings ($ in millions)
Slide 36: 2010 First Quarter Performance: Quarterly Distribution/Per Unit
2010 First Quarter Performance Quarterly Distribution/Per Unit Record Date - June 30 / Payment Date - July 15
Slide 37: 2010 Annual & Special Meeting of Unitholders
2010 Annual & Special Meeting of Unitholders
Slide 38: The North West Company
THE NortH WEsT COMPANY = Redeem this coupon for a free box of | \ BV Select Buffalo Boneless Chicken ™=™ _ $8.97 Wings, or BBQ Boneless Chicken pe Retail Value | | Wings, 730 g. No purchase required. Coupon redeemable at Winnipeg Giant Tiger locations only. Expires June 25, 2010 One coupon per perso
Slide 39: 2010 Annual & Special Meeting of Unitholders
2010 Annual & Special Meeting of Unitholders
Slide 40: Northern Banners Same Store Sales
Northern Banners Same Store Sales Total Big Ticket 24 0 -36
Slide 41: Northern Banners 2010 Outlook
Northern Banners 2010 Outlook Upside vs. weak numbers from last year Ramped up public infrastructure spending Modest recovery in resource development
Slide 42: Giant Tiger Same Store Sales
Giant Tiger Same Store Sales Total 8 4 0
Slide 43: Giant Tiger 2010 Outlook
Giant Tiger 2010 Outlook Growth in fashion and general merchandise Sales and margin pressure in food Overall offer matches up with today’s consumer
Slide 44: Cost U Less Same Store Sales
Cost U Less Same Store Sales 9 0 -9
Slide 45: Cost U Less 2010 Outlook
Cost U Less 2010 Outlook “Get Sales” programs Tourism recovery will be slow New location opportunities
Slide 46: More Growth in Store: By the Numbers
THE beth, NortH WEsT salt ee More Growth in Store By the Numbers 8.1% 1.5 90% 90%" EBITDA CAGR TIMES
Slide 47: EBITDA CAGR
NortH West 1% EBITDA CAGR
Slide 48: Banner Growth
Banner Growth (Cdn $) 2004 2009
Slide 49: Times
NortH West Lo TIMES
Slide 50: Ten Year Population Growth
Ten Year Population Growth NWC Canadian Markets NWC International Markets .80
Slide 51: Our Everyday Customer
Our Everyday Customer Likes convenience Likes trends Likes name and store brands Spontaneous Price sensitive
Slide 52: More Growth in Store
NonTHWesr | More Growth in Store [== O%"
Slide 53: Monthly Market Draw
NoRrTH WesT More Growth In Store — a as Monthly Market Draw 100% 80% 60% 40% 20% 0% Northern NorthMart AC
Slide 54: First Shopping Choice for Food
First Shopping Choice for Food 64% 16% 20% 54% 33% 13% 67% 17% 16%
Slide 55: More Growth in Store
NonTHWesr | More Growth in Store [== O%"
Slide 56: % of stores > 2hr drive from Wal-Mart
% of stores > 2hr drive from Wal-Mart (Giant Tiger > 3km drive)
Slide 57: Giant Tiger Winnipeg Locations
Giant Tiger Winnipeg Locations
Slide 58: Key Strategic Priorities
Key Strategic Priorities Fix Perishables
Slide 59: Fix Perishables
Fix Perishables Contribution Margin by Food Category Frozen Shelf Fresh Chilled Produce Food Stable Meat Service
Slide 60: Key Strategic Priorities
Key Strategic Priorities Fix Perishables Be Business Ready
Slide 61: Key Strategic Priorities
Key Strategic Priorities Fix Perishables Be Business Ready Invest in Outbound Logistics
Slide 62: Invest in Outbound Logistics
Invest in Outbound Logistics
Slide 63: Key Strategic Priorities
Key Strategic Priorities Fix Perishables Be Business Ready Invest in Outbound Logistics Increase Store Management Stability
Slide 64: Increase Store Management Stability
Increase Store Management Stability Tenure in Location
Slide 65: Key Strategic Priorities
Key Strategic Priorities Fix Perishables Be Business Ready Invest in Outbound Logistics Increase Store Management Stability Focused Investment
Slide 66: Focused Investment
Focused Investment Distribution Centres and Systems Store Expansions Convenience Stores Single Store Acquisitions Services
Slide 67: Focused Investment
Focused Investment Cape Dorset, before and after Distribution Centres and Systems Store Expansions Convenience Stores Single Store Acquisitions Services
Slide 68: Focused Investment
Focused Investment Distribution Centres and Systems Store Expansions Convenience Stores Single Store Acquisitions Services
Slide 69: Focused Investment
Focused Investment Distribution Centres and Systems Store Expansions Convenience Stores Single Store Acquisitions Services
Slide 70: Focused Investment
Focused Investment Distribution Centres Growth in Service Gross Profit and Systems CAGR 13.5% Store Expansions Convenience Stores Single Store Acquisitions Services
Slide 71: More Growth in Store With our People
re NortH WEstT Ces More Growth in Store With our People
Slide 72: Leo Charriere
NorTH WEST Leo Charriere
Slide 73: 2010 Annual & Special Meeting of Unitholders
2010 Annual & Special Meeting of Unitholders