Loblaw Companies Limited · TSX:L
Loblaw Companies — Investor Presentation (April 2019)
11 slides from Loblaw Companies's investor presentation, Apr 12, 2019
Slide 1: IFRS 16 Leases Investor Education Session
IFRS 16 Leases Investor Education Session Friday, April 12, 2019 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation for Loblaw Companies Limited (“Loblaw” or “the Numerous risks and uncertainties could cause the Company’s Company”) contains forward-looking statements about the actual results to differ materially from those expressed, implied or Company’s objectives, pl
Slide 3: Table of Contents
Table of Contents IFRS 16 Key Concepts 4 Transition Method 6 Measuring the ROU Asset and Lease Liability 7 Key Assumptions: • Discount Rate 8 • Lease Term 9 Lease Commitment Note to Lease Liability 10 IFRS 16 Key Concepts Recap 11 3
Slide 4: IFRS 16 Leases: Key Concepts
IFRS 16 Leases: Key Concepts IFRS 16 requires the recognition of assets and liabilities on the balance sheet for all leases (i) • IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. A contract is, or contains, a lease if the contract conveys the r
Slide 5: IFRS 16 Leases: Key Concepts (cont'd)
IFRS 16 Leases: Key Concepts (cont’d) IFRS 16 requires the recognition of assets and liabilities on the balance sheet for all leases (i) • The objective of IFRS 16 is to align the presentation of leased assets more closely to owned assets. In doing so, a right-of-use asset and lease liability are br
Slide 6: IFRS 16 Leases: Transition Method
IFRS 16 Leases: Transition Method Loblaw has applied the modified retrospective transition method The Company has applied the modified retrospective approach on transition. Under the modified retrospective approach, the Company’s right-of-use assets are calculated retrospectively using the discount
Slide 7: Measuring the ROU Asset and Lease Liability
IFRS 16 Leases: Measuring the ROU Asset and Lease Liability Summary of calculations Lease Liability Lease Asset Right-of-use Lease Liability Asset Lease Liability PV of lease payments Prepayments PV of expected payments at end of lease(i) Initial Direct Key Inputs Costs Lease Lease Discount Term Pay
Slide 8: IFRS 16 Leases: Key Assumptions - Discount Rate
IFRS 16 Leases: Key Assumptions - Discount Rate IFRS 16 requires a lease specific discount rate Determining the discount rate is a material judgment area under IFRS 16 as it drives the calculation of right-of-use assets and lease liabilities the Company will put on its balance sheet, which consequen
Slide 9: IFRS 16 Leases: Key Assumptions - Lease Term
IFRS 16 Leases: Key Assumptions - Lease Term Alignment on “reasonably certain” is key to determining lease term Lease term is a material judgment area as it affects the magnitude of right-of-use assets and lease liabilities set up on transition and go-forward, which consequently impacts depreciation
Slide 10: Lease Commitment Note to Lease Liability
IFRS 16: Lease Commitment Note to Lease Liability Understanding Loblaw’s Lease liability Substantially all of the Company's operating leases are real estate leases for retail stores, distribution centers and corporate offices. Other leased assets include passenger vehicles, trucks and IT equipment.
Slide 11: IFRS 16 Leases: Key Concepts Recap
IFRS 16 Leases: Key Concepts Recap IFRS 16 requires the recognition of assets and liabilities on the balance sheet for all leases (i) • IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. A contract is, or contains, a lease if the contract conveys
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