North West Company Inc. · TSX:NWC
North West — The North West Company — Shareholder Meeting (June 2009)
47 slides from North West's shareholder meeting presentation, Jun 11, 2009
Slide 1: 2009 Annual & Special Meeting of Unitholders
2009 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: 2009 Annual & Special Meeting of Unitholders
2009 Annual & Special Meeting of Unitholders
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: Ian Sutherland
North West Company Fund Ian Sutherland
Slide 12: 2009 Annual & Special Meeting of Unitholders
2009 Annual & Special Meeting of Unitholders
Slide 13: Board's 2009 Initiatives
North West Company Fund Board’s Transition back to a share corporation 2009 Initiatives Cost U Less integration Board’s strategic role Executive compensation
Slide 14: Board's Strategic Role
North West Company Fund Board’s Addresses need for clear principles Strategic Role Management “initiates” Board “actively” reviews Calendar covers all key strategic areas
Slide 15: Executive Compensation
North West Company Fund Executive Part of three year review cycle Compensation Addresses issues with existing program New incentives are clearer, align better
Slide 16: The North West Company
THE ( NorTH WEsT COMPANY
Slide 17: 2008 Performance: Sales Growth
2008 Performance Sales Growth ($ in millions)
Slide 18: 2008 Performance: Trading Profit Growth
2008 Performance Trading Profit Growth ($ in millions)
Slide 19: 2008 Performance: Net Earnings
2008 Performance Net Earnings ($ in millions)
Slide 20: 2008 Performance: Net Earnings Per Unit
2008 Performance Net Earnings Per Unit (diluted)
Slide 21: 2008 Performance: Cash Flow from Operations/Cash Distributions
2008 Performance Cash Flow from Operations/Cash Distributions ($ in millions) Cash Flow from Operations Cash Distributions
Slide 22: 2008 Performance: RONA & ROE
2008 Performance RONA & ROE (%) ROE RONA
Slide 23: Relative Unit Price Performance (%)
Relative Unit Price Performance (%) NWF.UN Retailing Group TSX Composite
Slide 24: 2009 First Quarter Performance: Total Sales
2009 First Quarter Performance Total Sales ($ in millions)
Slide 25: 2009 First Quarter Performance: Trading Profit
2009 First Quarter Performance Trading Profit Performance ($ in millions)
Slide 26: 2009 First Quarter Performance: Net Earnings
2009 First Quarter Performance Net Earnings ($ in millions)
Slide 27: 2009 First Quarter Performance: Quarterly Distribution/Per Unit
2009 First Quarter Performance Quarterly Distribution/Per Unit Record Date - June 30 / Payment Date - July 15
Slide 28: $1.4 Billion Annual Sales
$1.4 Billion Annual Sales 225 Locations Worldwide 7,251 Employees
Slide 29: Giant Tiger Fashion
Giant Tiger Fashion NorTH WEsT ENTERPRISING * SINCE 1668
Slide 30: Trusted Community Store of Choice
“Trusted Community Store of Choice”
Slide 31: General Merchandise Sales Performance: Big-Ticket Sales % by Quarter
General Merchandise Sales Performance Big-Ticket Sales % by Quarter 60% 40% 20% NWC 0% AC -20% -40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2007 2007 2007 2008 2008 2008 2008 2009
Slide 32: General Merchandise Sales Performance
General Merchandise Sales Performance Alaska oil revenue dividends Indian Residential School Settlement Payments Resource development
Slide 33: General Merchandise Sales Potential: Per Capita Government Fiscal Support
General Merchandise Sales Potential 2009-10 Per Capita $ Increase in Canadian Government Fiscal Support 2798 3770 2212 $1,750 1654 $1,500 $1,250 $1,000 785 $750 $500 421 298 $250 179 160 57 85 101 94 $0 BC AB SK MB ON QC NB NS PEI NL YK NWT NU
Slide 34: General Merchandise Sales Potential
General Merchandise Sales Potential Emphasis key trend and basic items Focus store ordering Keep inventories in line
Slide 35: Cost U Less & Giant Tiger
Cost U Less & Giant Tiger Discount banners are 40% of total food Sales are running at 7%+ Customer is trading down
Slide 36: Food Sales Performance: Northern Canada Retail & Alaska
Food Sales Performance Northern Canada Retail & Alaska Northern banners are 60% of total food Transportation cost deflation Consumer is more price conscious
Slide 37: Food Sales Potential: Money Day Promotions
Food Sales Potential Money Day Promotions Higher sales capture on income days More deals and opportunity buys More incentive to stock-up with us
Slide 38: Food Sales Potential: Store Brands
Food Sales Potential Store Brands Offer great value Build loyalty 150 new items in 2009 15%-25% target penetration
Slide 39: The Elements of Future Performance
The Elements of Future Performance Build on our existing business scope Get the details right Let the best opportunities win
Slide 40: The Elements of Future Performance
The Elements of Future Performance Giant Tiger, Edmonton November 15, 2008 19,774 square feet Meets target market attributes
Slide 41: The Elements of Future Performance
The Elements of Future Performance C-store growth within existing markets Iqaluit, Nunavut December 15, 2008 Bethel, Alaska April 2, 2009
Slide 42: The Elements of Future Performance
The Elements of Future Performance Store replacement and upgrades Nain, Labrador March 30, 2009 Sales growth with energy savings
Slide 43: The Elements of Future Performance
The Elements of Future Performance Tuck-in acquisitions Sitka, Alaska April 6, 2009 Solid independent stores with upside
Slide 44: The Elements of Future Performance
The Elements of Future Performance Complementary stores Guam, U.S.A. May 23, 2009 Leverage territory presence
Slide 45: The Elements of Future Performance
The Elements of Future Performance Financial Services Pharmacy and Health Services Direct to customer food sales Experience, expertise and credibility
Slide 46: Our People
NORTHWEST our People ENTERPRISING * SINCE 1668
Slide 47: 2009 Annual & Special Meeting of Unitholders
2009 Annual & Special Meeting of Unitholders
The North West Company — Shareholder Meeting (June 2009) on 6ix