North West Company Inc. · TSX:NWC
North West — The North West Company — Shareholder Meeting (2015)
87 slides from North West's shareholder meeting presentation, 2015
Slide 1: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders
Slide 2: Caution Concerning Forward Looking Statements
Caution Concerning Forward Looking Statements Certain information presented today may constitute forward-looking statements. Forward looking statements are predictive in nature and include future conditional financial performance, including sales, earnings, growth rates, capital expenditures, debt l
Slide 3: Chairman Remarks
A Time to Invest Chairman Remarks
Slide 4: Giant Tiger Coupon
Pay. NorTH West COMPANY Giant Tiger Coupon Best Value Hickory BBQ Pork Back Ribs Best Value Hickory BBQ Pork Back Ribs, 5958. No purchase required. Coupon redeemable at Winnipeg Giant Tiger locations only. One coupon per person. One box per coupon. Facsimile coupons will not be accepted. Expires Jun
Slide 5: Chairman Remarks
A Time to Invest Chairman Remarks
Slide 6: Chairman Remarks: Stewart Glendinning
Chairman Remarks Stewart Glendinning
Slide 7: Chairman Remarks: Annalisa King
Chairman Remarks Annalisa King
Slide 8: Chairman Remarks: Frank J. Coleman
Chairman Remarks Frank J. Coleman
Slide 9: Chairman Remarks: Wendy F. Evans
Chairman Remarks Wendy F. Evans
Slide 10: Chairman Remarks: Robert J. Kennedy
Chairman Remarks Robert J. Kennedy
Slide 11: Chairman Remarks: Vi Konkle
tite NorTH West Chairman Remarks Vi Konkle
Slide 12: Chairman Remarks: Gary Merasty
Chairman Remarks Gary Merasty
Slide 13: Chairman Remarks: Eric L. Stefanson
Chairman Remarks Eric L. Stefanson
Slide 14: Chairman Remarks: Edward Kennedy
Chairman Remarks Edward Kennedy
Slide 15: Chairman Remarks: H. Sanford Riley
Chairman Remarks H. Sanford Riley
Slide 16: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders
Slide 17: 1. Receive Audited Financial Statements
Financial Statements 1. Receive Audited Financial Statements
Slide 18: 2. Appointment of Directors
Ordinary Resolutions 2. Appointment of Directors
Slide 19: 3. Appointment of Auditors
Ordinary Resolutions 3. Appointment of Auditors
Slide 20: 4. Ordinary Resolution for Approval of Amended By-Laws
Ordinary Resolutions 4. Ordinary Resolution for Approval of Amended By-Laws
Slide 21: 5. Ordinary Resolution for Approval of Director Deferred Share Unit Plan
Ordinary Resolutions 5. Ordinary Resolution for Approval of Director Deferred Share Unit Plan
Slide 22: 6. Advisory Resolution on Executive Compensation
Ordinary Resolutions 6. Advisory Resolution on Executive Compensation
Slide 23: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders
Slide 24: Executive Vice-President and CFO Remarks
A Time to Invest Executive Vice-President and Chief Financial Officer Remarks
Slide 25: Strong International Sales
Strong International Sales 2014 Financial Highlights Canada Sales ($ in millions) International $1,624 $1,514 $1,543 $471 $520 $582 ! 15th consecutive year of growth ! Strong international sales +11.9% ! Positive foreign exchange impact $1,043 $1,023 $1,042 2012 2013 2014
Slide 26: International EBITDA Growth
International EBITDA Growth 2014 Financial Highlights Canada EBITDA ($ in millions) International $133.7 $138.3 $137.8 $27.1 $27.2 $36.9 ! International +$9.8 million, +36% $106.5 $111.2 $100.9 2012 2013 2014
Slide 27: Adjusted EBITDA Improvement
Adjusted EBITDA Improvement 2014 Financial Highlights Canada EBITDA ($ in millions) International $146.3 Adjusted EBITDA* $133.7 $138.3 $8.5 $27.1 $27.2 $36.9 ! International +$9.8 million, +36% ! Canada ($10.3 million) $111.2 ! One-time charges: $106.5 $100.9 • Support office restructuring • Invent
Slide 28: One-Time Costs Affect Earnings
One-Time Costs Affect Earnings 2014 Financial Highlights Net Earnings ($ in millions) $63.9 $64.3 $62.9 ! International earnings growth ! Restructuring charges 2012 2013 2014
Slide 29: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders
Slide 30: Track Record of Dividend Growth
Track Record of Dividend Growth Financial Performance Annual Dividends ($ per share) $1.16 $1.12 $1.04 ! 3.6% increase in dividends in 2014 $0.96 ! 20.8% increase since conversion to corporation 2011* 2012 2013 2014 *Excludes final distribution from North West Company Fund
Slide 31: Investing for Growth
Investing for Growth Financial Performance Capital Expenditures & Return on Net Assets CAPEX ($ in millions) $65.0 RONA (%) $51.1 $52.3 ! Attractive returns $46.4 $37.8 $43.2 ! Increasing investment 17.9 18.5 20.6 20.0 18.4 2010 2011 2012 2013 2014 2015 Forecast
Slide 32: Strong Cash Flow, Low Debt
Strong Cash Flow, Low Debt Financial Performance Debt EBITDA Historical Debt and Leverage ($ in millions) Debt-to-EBITDA $193 $201 1.5 $176 1.4 $163 $183 1.3 1.5 ! Financial strength 1.2 $126 $126 $138 $138 ! Working capital $134 efficiencies ! $180 million loan capacity 2010 2011 2012 2013 2014
Slide 33: Balanced Approach to Shareholder Returns
Balanced Approach to Shareholder Returns Financial Performance 5-Year CAGR Total Return Performance 14.0% NWC 8.8% TSX Composite (% at January 31) 200 175 150 125 100 2010 2011 2012 2013 2014 2015
Slide 34: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders
Slide 35: Sales Momentum
Sales Momentum 2015 First Quarter Performance Canada Sales ($ in millions) International $414 $364 $376 $122 $135 $160 ! 10% sales increase ! Cost-U-Less and Giant Tiger deliver growth $242 $241 $254 ! Positive foreign exchange impact Q1 2013 Q1 2014 Q1 2015
Slide 36: Strong EBITDA Performance
Strong EBITDA Performance 2015 First Quarter Performance Canada EBITDA ($ in millions) International $34.4 $30.0 $30.2 $5.6 $6.4 $10.1 ! International EBITDA +$3.7 million ! Canada EBITDA +2.5% ! Cost-U-Less and Giant Tiger key $24.4 $23.8 $24.3 contributors Q1 2013 Q1 2014 Q1 2015
Slide 37: Solid Net Earnings
Solid Net Earnings 2015 First Quarter Performance Net Earnings ($ in millions) $15.7 ! Strong EBITDA growth $12.9 $12.7 ! Lower interest expense ! 23.8% increase in Net Earnings Q1 2013 Q1 2014 Q1 2015
Slide 38: Stable Dividends
Stable Dividends 2015 First Quarter Performance Quarterly Dividends ($ per share) $0.29 $0.29 $0.28 ! Potential for future increase Q1 2013 Q1 2014 Q1 2015
Slide 39: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders
Slide 40: President & CEO Remarks
A Time to Invest President & CEO Remarks
Slide 41: Our Mission & Vision
Our Mission & Vision Vision To help people and communities to live better Mission To be the one-stop, trusted store of choice
Slide 42: Great Start to 2015
Great Start to 2015 ! Cost-U-Less & Giant Tiger ! Cost-U-Less tied to US recovery ! Alaskans to gain spending power
Slide 43: Giant Tiger Performance
Giant Tiger Performance ! Early spring weather ! Better operating standards ! Improved product offer
Slide 44: Store Breadth Delivering Results
Store Breadth Delivering Results ! Multi-banner 40% 60% ! International 36% 64% foot print International Canada
Slide 45: More for Our Customers
More for Our Customers A Time to Invest Video Placeholder
Slide 46: Right Time to Invest
Right Time to Invest ! Track record of disciplined spending ! Higher investment = higher One-Stop potential Trusted Store of Choice
Slide 47: Right Time to Invest: Sustainable 10% Returns
Right Time to Invest Sustainable 10% Returns ! Track record of disciplined spending ! Higher investment = higher One-Stop potential Trusted Store of Choice
Slide 48: The One-Stop Trusted Store of Choice
The One-Stop Trusted Store of Choice ! The best at serving remote markets ! “Go-to” source and solution provider ! Unique insights
Slide 49: The One-Stop Trusted Store of Choice
The One-Stop Trusted Store of Choice ! The best at serving remote markets ! “Go-to” source and solution provider ! Unique insights
Slide 50: Our Customer Offer
Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS Convenient One-Stop Trusted Reliable Store of Right Product & Services Choice Look for Best Deals
Slide 51: Our Customer Offer
Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS One-Stop Convenient Trusted Reliable Store of Right Product & Services Choice Look for Best Deals
Slide 52: Our Customer Offer
Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS One-Stop Convenient Trusted Reliable Store of Right Product & Services Choice Look for Best Deals
Slide 53: Our Customer Offer
Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS One-Stop Convenient Trusted Reliable Store of Right Product & Services Choice Look for Best Deals
Slide 54: Our Customer Offer
Our Customer Offer Sustainable 10% Returns SUPERIOR CUSTOMER SOLUTIONS One-Stop Convenient Trusted Reliable Store of Right Product & Services Choice Look for Best Deals
Slide 55: Our Community Promise
Our Community Promise Sustainable 10% Returns GREATER COMMUNITY IMPACT One-Stop Employment Trusted Store of Partnerships Choice Investment Support
Slide 56: Our Community Promise
Our Community Promise Sustainable 10% Returns GREATER COMMUNITY IMPACT One-Stop Employment Trusted Store of Partnerships Choice Investment Support
Slide 57: Our Community Promise
Our Community Promise Sustainable 10% Returns GREATER COMMUNITY IMPACT One-Stop Employment Trusted Store of Partnerships Choice Investment Support
Slide 58: Our Community Promise
Our Community Promise Sustainable 10% Returns GREATER COMMUNITY IMPACT One-Stop Employment Trusted Store of Partnerships Choice Investment Support
Slide 59: Our Community Promise
Our Community Promise Sustainable 10% Returns GREATER COMMUNITY IMPACT One-Stop Employment Trusted Store of Partnerships Choice Investment Support
Slide 60: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 61: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 62: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 63: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 64: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 65: Top Five Priorities
Top Five Priorities Sustainable 10% Returns One-Stop Trusted Store of Choice Top Top Logistics New Store Categories Markets Innovation Markets Connect
Slide 66: Top Categories
Top Categories ! Leverage local store reach
Slide 67: Top Categories
Top Categories ! Leverage local store reach ! Innovative pharmacy services
Slide 68: Top Categories
Top Categories ! Leverage local store reach ! Innovative pharmacy services ! Baby category potential
Slide 69: Top Categories
Top Categories ! Redeploy working capital ! Free valuable selling space
Slide 70: Top Markets
Top Markets ! 2015 11 new markets in northern Canada
Slide 71: Top Markets
Top Markets ! 2015 11 new markets in northern Canada ! 2016 16 new markets
Slide 72: Top Markets
Top Markets ! 2015 11 new markets in northern Canada ! 2016 16 new markets ! 2017 major investment in Iqaluit, NU
Slide 73: Top Markets
Top Markets ! 2015 11 new markets in northern Canada ! 2016 16 new markets ! 2017 major investment in Iqaluit, NU ! Leverage local knowledge
Slide 74: Top Markets
Top Markets ! 2015 11 new markets in northern Canada ! 2016 16 new markets ! 2017 major investment in Iqaluit, NU ! Leverage local knowledge ! Win-win: attractive returns and value to customers
Slide 75: Top Markets
Top Markets ! Talent brings stores to life
Slide 76: Top Markets
Top Markets ! Talent brings stores to life ! Another attractive investment opportunity
Slide 77: Top Markets
Top Markets ! Talent brings stores to life ! Another attractive investment opportunity ! Strong support teams in place
Slide 78: Top Markets
Top Markets ! Talent brings stores to life ! Another attractive investment opportunity ! Strong support teams in place ! Funded by admin reductions
Slide 79: Logistics Innovation
Logistics Innovation ! Aimed at creating clear advantages
Slide 80: Logistics Innovation
Logistics Innovation ! Aimed at creating clear advantages ! Challenge for bigger retailers
Slide 81: Logistics Innovation
Logistics Innovation ! Aimed at creating clear advantages ! Challenge for bigger retailers ! Drive capabilities
Slide 82: Logistics Innovation
Logistics Innovation ! Need for robust and affordable connections ! Upgrading underway ! New partnerships on the horizon
Slide 83: New Markets
New Markets ! Expand Giant Tiger store base ! Selectively consider acquisitions
Slide 84: Store Connect
Store Connect ! Store centered ! User-friendly ! Encourages ideas and action ! The way we want to work at North West
Slide 85: A Commitment to Our Core
A Commitment to Our Core ! Vision and Mission are unchanged ! Customer value offer remains compelling ! Strategy builds on greatest advantages
Slide 86: A Time to Invest
A Time to Invest
Slide 87: A Time to Invest
A Time to Invest 2015 Annual General and Special Meeting of Shareholders