North West Company Inc. · TSX:NWC
North West — Shareholder Meeting (2017)
70 slides from North West's shareholder meeting presentation, 2017
Slide 1: 2017 Annual General & Special Meeting of Shareholders
2017 Annual General & Special Meeting of Shareholders
Slide 2: Caution Concerning Forward Looking Statements and Non-GAAP Financial Measures
Caution Concerning Forward Looking Statements and Non-GAAP Financial Measures Certain information presented today may constitute forward-looking statements, including information on the potential North Star Air acquisition. Such statements reflect North West’s current expectations, estimates, projec
Slide 3: Chairman Remarks
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Slide 4: Giant Tiger Coupon
Giant Tiger Coupon FREE BV Orchard Frozen Fruit Selected Varieties, 600g 581203, 581204, 581206, 581209 No purchase required. Coupon redeemable at Winnipeg, Giant Tiger locations only. One coupon per person. Facsimile coupons will not be accepted. Expires June 28, 2017 U | GE R ZY, wears NORTH WEST
Slide 5: Chairman Remarks
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Slide 6: Frank J. Coleman
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Slide 7: Wendy F. Evans
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Slide 8: Stewart Glendinning
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Slide 9: Robert J. Kennedy
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Slide 10: Annalisa King
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Slide 11: Vi Konkle
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Slide 12: Gary Merasty
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Slide 13: Eric L. Stefanson
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Slide 14: Victor Tootoo
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Slide 15: Edward Kennedy
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Slide 16: H. Sanford Riley
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Slide 17: 2017 Annual General & Special Meeting of Shareholders
2017 Annual General & Special Meeting of Shareholders
Slide 18: 1. Receive Audited Financial Statements
Financial Statements 1. Receive Audited Financial Statements
Slide 19: 2. Appointment of Directors
Ordinary Resolution 2. Appointment of Directors
Slide 20: 3. Appointment of Auditors
Ordinary Resolution 3. Appointment of Auditors
Slide 21: 4. Advisory Resolution on Executive Compensation
Ordinary Resolution 4. Advisory Resolution on Executive Compensation
Slide 22: 5. Special Resolution to Amend Articles to Create a Variable Voting Share Structure
Special Resolution 5. Special Resolution to Amend North West’s Articles to Create a Variable Voting Share Structure
Slide 23: 6. Ordinary Resolution to Ratify an Amended and Restated By-Law No. 1
Ordinary Resolution 6. Ordinary Resolution to Ratify an Amended and Restated By-Law No. 1
Slide 24: 2017 Annual General & Special Meeting of Shareholders
2017 Annual General & Special Meeting of Shareholders
Slide 25: Executive Vice-President & Chief Financial Officer Remarks
Executive Vice-President & Chief Financial Officer Remarks
Slide 26: Consistent Sales Growth
Consistent Sales Growth • 2016 Financial Highlights Canada Sales ($ in millions) International $1,796 $1,844 $1,624 $706 $719 ! 17th consecutive year of growth $582 ! Canadian sales +3.3% ! New store sales ! International sales +1.8% $1,042 $1,090 $1,125 2014 2015 2016
Slide 27: Canada Drives EBITDA Improvement
Canada Drives EBITDA Improvement • 2016 Financial Highlights Canada EBITDA ($ in millions) International $166.5 $151.3 $137.8 $56.8 $53.1 ! Canada +$11.5 million, +11.7% $36.9 ! Top categories gross profit improvements ! Lower share-based compensation $100.9 $109.7 $98.2 ! International +$3.7 millio
Slide 28: Strong Net Earnings Growth
Strong Net Earnings Growth • 2016 Financial Highlights Net Earnings ($ in millions) $77.1 $69.8 ! Net earnings +10.5% $62.9 ! EBITDA improvement ! Partially offset by higher: • Amortization • Interest expense 2014 2015 2016
Slide 29: 2017 Annual General & Special Meeting of Shareholders
2017 Annual General & Special Meeting of Shareholders
Slide 30: Investing to Sustain and Grow
Investing to Sustain and Grow • 2016 Financial Highlights Capital Expenditures & Return on Net Assets CAPEX ($ in millions) Return on Net Assets (%) $76.0 $77.7 ! +$200 million over 3 years ! Top markets & top categories priority $52.3 ! Investing in new technology ! Strong return on net assets 19.5
Slide 31: Investing to Sustain and Grow: Capital Expenditures
Investing to Sustain and Grow • 2016 Financial Highlights 2017 Capital Expenditures ($ in millions) CAPEX North Star Air Ltd. (NSA) $162.0 Roadtown Wholesale Trading Ltd. (RTW) $46.0 ! Continue to sustain and grow Existing Business existing business $36.0 ! Invest in new markets & complimentary busi
Slide 32: Financial Capacity
Financial Capacity • 2016 Financial Highlights Debt, Leverage & Borrowing Capacity Debt Available Capacity ($ in millions) Debt-to-EBITDA $265 ! Available borrowing capacity $189 $265 million $180 ! Low leverage 1.5 1.5 1.4 ! Strong cash flow $201 $225 $229 ! Financial capacity to support growth 201
Slide 33: Superior Shareholder Returns
Superior Shareholder Returns • 2016 Financial Highlights Total Return Performance (% at January 31) NWC TSX Composite 190 ! 13.7% total returns 5-year CAGR ! Share price growth 165 ! 5.8% net earnings 5-year CAGR 140 115 90 2012 2013 2014 2015 2016 2017
Slide 34: Increasing Dividends
Increasing Dividends • 2016 Financial Highlights Dividends Per Share & Yield Dividends Per Share Dividend Yield % (1) $1.20 $1.24 $1.04 $1.12 $1.16 ! 5.3% dividend 5-year $0.96 CAGR ! 4.6% average yield ! Consistent dividend growth 4.8% 4.7% 4.6% 4.8% 4.5% 4.4% 2011 2012 2013 2014 2015 2016 (1) Base
Slide 35: 2017 Annual General & Special Meeting of Shareholders
2017 Annual General & Special Meeting of Shareholders
Slide 36: Top Line Growth Continues
Top Line Growth Continues • 2017 First Quarter Performance Sales ($ in millions) Canada $477 International $439 $414 $204 ! Total sales +$38 million, +8.6% $173 $160 ! Roadtown Wholesale & Trading Ltd. (RTW) acquisition ! Northern Canada sales gains $254 $266 $273 ! New Giant Tiger stores Q1 2015 Q1
Slide 37: Non-comparable Expenses Impact EBITDA
Non-comparable Expenses Impact EBITDA • 2017 First Quarter Performance EBITDA ($ in millions) Canada International $37.6 $34.4 $12.8 $30.1 ! Top-line gains offset by $10.1 non-comparable expenses $10.2 ! EBITDA -$7.5 million $24.3 $24.8 $19.9 Q1 2015 Q1 2016 Q1 2017
Slide 38: Adjusted EBITDA Performance
EBITDA Performance • 2017 First Quarter Performance Adjusted EBITDA ($ in millions) Reported EBITDA Share-based Option Expense $40.2 Acquisition Costs $36.3 $5.8 -$1.3 $4.3 ! Stamp duty paid to BVI government $37.6 $30.1 ! Higher share-based option expense ! Adjusted EBITDA +$3.9 million, +10.5% Q1
Slide 39: Non-comparable Expenses Impact Net Earnings
Non-comparable Expenses Impact Net Earnings • 2017 First Quarter Performance Net Earnings ($ in millions) $17.8 ! Net earnings -$8.7 million $15.7 ! Acquisition costs ! Higher share-based option expense $9.1 Q1 2015 Q1 2016 Q1 2017
Slide 40: Net Earnings Performance
Net Earnings Performance • 2017 First Quarter Performance Adjusted Net Earnings ($ in millions) Reported Net Earnings $19.2 Share-based Option Expense $16.5 Acquisition Costs -$1.3 $5.8 ! Net earnings -$8.7 million $17.8 $4.3 ! Acquisition costs $9.1 ! Higher share-based option expense ! Adjusted ne
Slide 41: Consistent Dividend Growth
Consistent Dividend Growth • 2017 First Quarter Performance Quarterly Dividends ($ per share) $0.32 $0.29 $0.31 ! Track record of increases ! +3.2% vs. Q1 2016 Q1 2015 Q1 2016 Q1 2017
Slide 42: 2017 Annual General & Special Meeting of Shareholders
2017 Annual General & Special Meeting of Shareholders
Slide 43: President & CEO Remarks
ZF, WE ARE Nor TH WEST President & CEO Remarks
Slide 44: Helping Our Customers Live Better: Top Stores
“Helping Our Customers Live Better” Deliver Our Vision Superior Customer Offer Positive Community Impact Customer & Community Convenient Reliable Top Stores Employment Partnerships Right Products Best Deals Support Investment Key Work Superior New Markets Top Markets Top Categories 2nd Level Logisti
Slide 45: We Are Retail – Baker Lake
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Slide 46: We Are Retail – Baker Lake, NU Site Plan
We Are Retail – Baker Lake, NU Site Plan
Slide 47: We Are Retail – Baker Lake, NU Site Plan
We Are Retail – Baker Lake, NU Site Plan
Slide 48: We Are Retail – Convenience
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Slide 49: We Are Retail – Services
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Slide 50: We Are Retail – Fresh
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Slide 51: We Are Retail – Grocery
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Slide 52: We Are Retail – Apparel & Furniture
We Are Retail – Apparel & Furniture
Slide 53: Helping Our Customers Live Better: Top Stores
“Helping Our Customers Live Better” Deliver Our Vision Superior Customer Offer Positive Community Impact Customer & Top Stores Convenient Reliable • 20 stores left Employment Partnerships Community • Complete by 2022 Right Products Best Deals Support Investment • $100 million investment Key Work Sup
Slide 54: Helping Our Customers Live Better: Top Stores
“Helping Our Customers Live Better” Deliver Our Vision Superior Customer Offer Positive Community Impact Customer & Community Convenient Reliable Top Stores Employment Partnerships Right Products Best Deals Support Investment Key Work Superior New Markets Top Markets Top Categories 2nd Level Logisti
Slide 55: We Are Logistics – Superior Logistics
We Are Logistics Superior Logistics • Faster • More reliable • At equal or lower cost
Slide 56: We Are Logistics – North Star Advantage
We Are Logistics – North Star Advantage • Control over scheduling, routing & equipment • Leverage store network • Double size within six months
Slide 57: We Are Logistics – North Star Advantage
We Are Logistics – North Star Advantage • Control over scheduling, routing & equipment • Leverage store network • Double size within six months
Slide 58: North Star Advantage
We Are Logistics North Star Advantage
Slide 59: North Star Advantage
We Are Logistics North Star Advantage • DC3 air frame • New avionics and turbo engines • Low operating costs and simple to fly
Slide 60: Helping Our Customers Live Better: Top Stores
“Helping Our Customers Live Better” Deliver Our Vision Superior Customer Offer Positive Community Impact Customer & Community Convenient Reliable Top Stores Employment Partnerships Right Products Best Deals Support Investment Key Work Superior New Markets Top Markets Top Categories 2nd Level Logisti
Slide 61: Alaska & South Pacific
We Are International Alaska & South Pacific
Slide 62: Caribbean Growth Focus
We Are International Caribbean Growth Focus
Slide 63: Medium Term Performance Goals
We Are International Medium Term Performance Goals • Growth through acquisition • RTW business improvements • Pass cost savings to customers
Slide 64: Helping Our Customers Live Better: Top Stores
“Helping Our Customers Live Better” Deliver Our Vision Superior Customer Offer Positive Community Impact Customer & Community Convenient Reliable Top Stores Employment Partnerships Right Products Best Deals Support Investment Key Work Superior New Markets Top Markets Top Categories 2nd Level Logisti
Slide 65: Healthy Food Options
We Are Community Healthy Food Options • 800 to 1200 items • Lower priced • Reduced sugar, fat or salt • Emphasis on “everyday foods”
Slide 66: Best Value Drink Crystals
We Are Community Best Value Drink Crystals • 498,271 units • Over 30 million servings • 127,000 kg impact
Slide 67: Government Programs
We Are Community Government Programs • Must be indexed • Must address cost of living inequity
Slide 68: Indigenous Language Support
We Are Community Indigenous Language Support • Product shelf tags • 30+ versions • Audio enabled by QR code
Slide 69: Top People Delivers Our Vision
Top Delivers Our People Vision
Slide 70: 2017 Annual General & Special Meeting of Shareholders
2017 Annual General & Special Meeting of Shareholders