North West Company Inc. · TSX:NWC
North West — North West Company Fund — Shareholder Meeting (May 2003)
73 slides from North West's shareholder meeting presentation, May 29, 2003
Slide 1: 2003 Annual Meeting of Unitholders
2003 Annual Meeting Unitholders of
Slide 2: David Broadhurst
NORTH WEST COMPANY FUND David Broadhurst ics ok
Slide 3: Kevin Bolt
NORTH WEST COMPANY FUND Kevin Bolt
Slide 4: Donald Beaumont
NORTH WEST COMPANY FUND Donald Beaumont
Slide 5: Frank Coleman
NORTH WEST COMPANY FUND Frank Coleman
Slide 6: Nellie Cournoyea
NORTH WEST COMPANY FUND Nelli@ournoyea
Slide 7: R.J. (Bob) Kennedy
NORTH WEST COMPANY FUND R.J. (Bob) Kenne«
Slide 8: Gary Lukassen
NORTH WEST COMPANY FUND GaryLukassen
Slide 9: Keith Martell
NORTH WEST COMPANY FUND Keith Martell
Slide 10: Stanley McKay
NORTH WEST COMPANY FUND Stanley McKay
Slide 11: James Oborne
NORTH WEST COMPANY FUND James Oborne
Slide 12: H. Sanford (Sandy) Riley
NORTH WEST COMPANY FUND H. Sanford (Sandy) Riley
Slide 13: T. Iain Ronald
NORTH WEST COMPANY FUND T. Iain Ronald
Slide 14: North West Company Fund
NORTH WEST COMPANY FUND
Slide 15: Audit Committee Chairman: Gary Lukassen
AUDIT COMMITTEE CHAIRMAN Gary Lukassen
Slide 16: Pension Committee Chairman: James Oborne
PENSION COMMITTEE CHAIRMAN James Oborne
Slide 17: Human Resources & Compensation Committee Chairman
HUMAN RESOURCES & COMPENSATION COMMITTEE CHAIRMAN Donald Beaumont
Slide 18: Governance & Nominating Committee Chairman
GOVERNANCE & NOMINATING COMMITTEE CHAIRMAN T. Iain Ronald
Slide 19: North West Company Fund
NORTH WEST COMPANY FUND
Slide 20: Relative Unit Price Performance (%)
RELATIVE UNIT PRICE PERFORMANCE (%) 300 NWF.UN Retailing Group 242 250 TSX Composite 200 145 183 102 131 150 119 122 106 100 101 125 100 100 77 62 63 100 101 59 50 0 1998 1999 2000 2001 2002 2003
Slide 21: Slide 21
Slide 22: Customer, investor, community, employee
customer investor community employee
Slide 23: Reaching for the Next Level
Reaching for the Next Level
Slide 24: © as <= © = ° Ae =
© as <= © = ° Ae =
Slide 25: Who We Are
Who We Are
Slide 26: Rossville, Manitoba
Rossville, Manitoba
Slide 27: Who We Are
Who We Are Habpy le Bay p— r yy
Slide 28: Our Value Offer
We will be our customers first choice for everyday pr ¥ Give helpful, friendly service ¥ Be in stock, at the right time OUR ¥ Have the best local selection ¥ Have the right price VALUE OFFER
Slide 29: 2002 Performance
2002 Performance Reaching for the Next Level xg
Slide 30: Sales Growth
SALES GROWTH ($ in millions) $800 750 704 659 629 626 $600 $400 $200 $0 1998 1999 2000 2001 2002
Slide 31: Trading Profit Growth
TRADING PROFIT GROWTH ($ in millions) $80 70 72 62 64 59 60 $60 57 51 48 48 $40 $20 $0 1993 1994 1995* 1996 1997 1998* 1999 2000 2001 2002 *Before unusual item
Slide 32: 2002 Performance
2002 Performance
Slide 33: Alaska Profitability
ALASKA PROFITABILITY(US $ in thousands) Trading Profit $10.0 16.0% 15.0 RONA (%) $9.0 14.0% $8.0 12.0% $7.0 10.0% $6.0 8.0% $5.0 6.0% 2.7 $4.0 4.0% $3.0 0.3 2.0% $2.0 0.1 0.0% -2.9 $1.0 -2.0% 4.0 1.4 0.41.6 2.6 $0.0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 -4.0%
Slide 34: Alaska Profitability
ALASKA PROFITABILITY(US $ in thousands) Trading Profit $10.0 16.0% 15.0 RONA (%) $9.0 11.6 14.0% $8.0 12.0% 8.9 8.5 $7.0 8.8 10.0% $6.0 8.0% 5.6 $5.0 6.0% 2.7 $4.0 4.0% $3.0 0.3 2.0% $2.0 0.1 0.0% -2.9 $1.0 -2.0% 4.0 1.4 0.41.6 2.6 4.2 6.0 6.3 6.6 8.4 $0.0 1993 1994 1995 1996 1997 1998 1999 2000 200
Slide 35: Northern Canada Profitability
Northern Canada Profitability ¥ More aggressive pricing ¥ Transition to new alliances ¥ Streamlined working capital
Slide 36: Northern Canada Profitability
Northern Canada Profitability ¥ More aggressive pricing
Slide 37: Northern Canada Profitability
Northern Canada Profitability ¥ Transition to new alliances
Slide 38: Northern Canada Profitability
Northern Canada Profitability ¥ Streamlined working capital
Slide 39: Cash Flow from Operations
CASH FLOW FROM OPERATIONS ($ in millions) 59.2 $60 55.8 18% Cash Flow from 52.1 Operations $50 47.8 15% 44.9 % $40 36.0 12 29.3 30.6 $30 26.2 9% 24.0 % $20 6 % $10 3 % $0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Slide 40: Cash Flow from Operations / RONA (%)
CASH FLOW FROM OPERATIONS / RONA (%) ($ in millions) 59.2 $60 55.8 18 % Cash Flow from 52.1 Operations $50 47.8 15 % 44.9 RONA (%) 36.0 $40 12 % 29.3 30.6 $30 26.2 9% 24.0 % $20 6 % $10 3 % $0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Slide 41: Five-Year Interest Expense
FIVE-YEAR INTEREST EXPENSE ($ in millions) $15 13.7 13.2 $12 11.7 10.5 $9 6.7 $6 $3 $0 1998 1999 2000 2001 2002
Slide 42: Net Earnings per Unit
NET EARNINGS PER UNIT 2.14 1.82 1.86 1.89 1.95 $2.00 $1.50 $1.00 $0.50 $0.00 1998* 1999 2000 2001 2002 *Before unusual item
Slide 43: Financial Strength = Flexibility
Financial Strength = Flexibility
Slide 44: Capital Structure
Financial Strength = Flexi CAPITAL STRUCTURE $250 1.2 Debt Equity ($ in million 1.0 $200 0.8 $150 0.6 $100 0.4 $50 0.2 174 164 171 170 176 191 152 220 137 219 $0 0.0 1998 1999 2000 2001 2002
Slide 45: Capital Structure
Financial Strength = Flexi CAPITAL STRUCTURE $250 1.2 Debt 1.1 Equity ($ in million 1.0 0.9 1.0 Debt:Equity $200 0.8 $150 0.7 0.6 $100 0.6 0.4 $50 0.2 174 164 171 170 176 191 152 220 137 219 $0 0.0 1998 1999 2000 2001 2002
Slide 46: Canadian Same Store Sales Growth
CANADIAN SAME SALES GROWTH (%) 6% 6.0% Canadian 5.9% Same Store Sales 5% 5.4% 4% 3.8% 3% 3.2% 2% 1% 0% Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003
Slide 47: Canadian Same Store Sales Growth
CANADIAN SAME SALES GROWTH (%) 6% 6.0% Canadian 5.9% Same Store Sales 5% 5.4% 4.8% Retail Industry 4% 3.8% 3.6% 3% 3.2% 2% 2.1% 1% 0.7% 0.2% 0% Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003
Slide 48: Trading Profit Performance
TRADING PROFIT PERFORMANCE ($ in millions) 14.3 $14 13.6 13.2 1.4 Total 12.6 12.3 1.0 Canada $12 1.1 0.7 Alaska $10 $8 $6 $4 $2 11.5 11.6 12.6 12.9 $0 Q1 1999 Q1 2000 Q1 2001 Q1 2002 Q1 2003
Slide 49: Trading Profit Performance
TRADING PROFIT PERFORMANCE ($ in millions) 14.3 $14 13.6 13.2 1.4 Total 12.6 12.3 1.0 Canada $12 1.1 0.7 Alaska $10 $8 $6 $4 $2 11.5 11.6 12.6 12.9 11.6 $0 Q1 1999 Q1 2000 Q1 2001 Q1 2002 Q1 2003
Slide 50: Trading Profit Performance
TRADING PROFIT PERFORMANCE ($ in millions) 14.3 $14 13.6 13.2 1.4 Total 12.6 12.3 1.0 1.6 Canada $12 1.1 0.7 Alaska $10 $8 $6 $4 $2 11.5 11.6 12.6 12.9 11.6 $0 Q1 1999 Q1 2000 Q1 2001 Q1 2002 Q1 2003
Slide 51: Earnings per Unit ($)
EARNINGS PER UNIT ($) $0.50 $0.45 $0.40 0.39 0.35 0.35 $0.35 0.34 $0.30 0.29 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 1999 2000 2001 2002 2003
Slide 52: The Next Level
The Next Level Reaching for the Next Level xg
Slide 53: Elevating our stores to best practice standards
¥ Elevating our stores to best prac standards ¥ Installing superior, seamless stor ¥ Accelerating the roll-out of Giant Tiger stores
Slide 54: Elevating our stores to best practice standards
Elevating our stores to best practice standards.
Slide 55: Elevating our stores to best practice standards
Elevating our stores to best practice standards.
Slide 56: Elevating our stores to best practice standards
Elevating our stores to best practice standards.
Slide 57: Elevating our stores to best practice standards
Elevating our stores to best practice standards.
Slide 58: Elevating our stores to best practice standards
Elevating our stores to best practice standards.
Slide 59: Installing superior, seamless store systems
Installing superior, seamless store systems.
Slide 60: Installing superior, seamless store systems
Installing superior, seamless store systems.
Slide 61: Installing superior, seamless store systems
Installing superior, seamless store systems.
Slide 62: Installing superior, seamless store systems
Installing superior, seamless store systems.
Slide 63: Installing superior, seamless store systems
Installing superior, seamless store systems.
Slide 64: Accelerating the rollout of Giant Tiger stores
Accelerating the rollout o Giant Tiger stores.
Slide 65: Accelerating the rollout of Giant Tiger stores
Accelerating the rollout o Giant Tiger stores.
Slide 66: Accelerating the rollout of Giant Tiger stores
Accelerating the rollout o Giant Tiger stores.
Slide 67: Accelerating the rollout of Giant Tiger stores
Accelerating the rollout o Giant Tiger stores.
Slide 68: Accelerating the rollout of Giant Tiger stores
Accelerating the rollout o Giant Tiger stores.
Slide 69: The Next Level
The Next Level Reaching for the Next Level xg
Slide 70: The Next Level
The Next Level L oCharri re
Slide 71: The Next Level
The Next Level GaryEggertson
Slide 72: Reaching
Reaching
Slide 73: North West Company Fund
NORTH WEST COMPANY FUND
North West Company Fund — Shareholder Meeting (May 2003) on 6ix