Loblaw Companies Limited · TSX:L

Loblaw Companies — 2008 CIBC World Markets Retail Conference

16 slides from Loblaw Companies's conference presentation, Mar 5, 2008

  1. Slide 1: Mark Foote, President & Chief Merchandising Officer

    Mark Foote President & Chief Merchandising Officer 2008 CIBC World Markets Retail Conference March 5, 2008

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This publication for Loblaw These forward-looking statements are Company to indentify obsolete or Companies Limited and its subject to a number of risks and excess inventory and to control shrink; subsidiaries (collectively, the uncertainties that could cause actual failur

  3. Slide 3: Forward-Looking Statements (continued)

    Forward-Looking Statements (continued) relating to its common shares; In addition to these risks and Readers are cautioned not to place changes in the Company’s tax uncertainties, the material undue reliance on these forward- liabilities resulting from changes in tax assumptions used in making the l

  4. Slide 4: Non-GAAP Financial Measures

    Non-GAAP Financial Measures The Company reports its Sales and Sales Growth Excluding Adjusted Operating Income and financial results in accordance the Impact of Tobacco Sales and Margin The table on page 4 of the with Canadian GAAP. VIEs These financial measures exclude Company’s Fourth Quarter 2007

  5. Slide 5: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) Adjusted EBITDA and Margin Adjusted Basic Net Earnings per Free Cash Flow The Company The table on page 4 of the Common Share The table “Basic Net calculates free cash flow as cash flows Company’s Fourth Quarter 2007 Earnings (Loss) Per Common Share and from o

  6. Slide 6: Agenda for Today

    Agenda for Today ‰ 2007 Progress Towards Making Loblaw the Best Again ‰ 2008 Priorities ‰ Your Questions 6

  7. Slide 7: Making Loblaw the Best Again

    Making Loblaw the Best Again….. We are here GROW (Loblaw is the Best Again) INNOVATE BEST FORMAT ALWAYS FRESH FIRST AVAILABLE SIMPLIFY FRIENDLY COLLEAGUES MOTIVATED PRICED TO SERVE CONTROL LABEL ‰ Restore RIGHT ADVANTAGE ‰ Simplify and sharpen innovation to HEALTH, HOME, 10% JOE & WHOLESOME Loblaw b

  8. Slide 8: Food volumes are strong despite inflation

    Food volumes are strong despite inflation LCL Food Sales and LCL Food Inflation (Percent growth) LCL Food Sales Growth Retail Item Count Growth P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 LCL Food Price Inflation 8

  9. Slide 9: Superstore and Hard Discount experienced the highest same-store sales growth in 2007

    Superstore and Hard Discount experienced the highest same-store sales growth in 2007 2007 Same-Store Sales Growth (Percentage Growth vs. LY) 4.6 3.8 2.4 0.4 Total Loblaw Superstore Hard Discount Great Food Pricing investments supported sales growth 9

  10. Slide 10: 2007 earnings were pressured

    2007 earnings were pressured 2007 LCL Adjusted Operating Income* Analysis ($ Million) Notable $1326 EPS 91 $2.72 34 37 75 25 11 11 24 6 $1034 EPS $2.05 ‘06 Adj. Sales, Op. Admin Consul Pharm- Est. Office Bonus Fixed ‘07 Adj. Op. Margin Exp. & -ting acy Adjust- Bldg Plan Asset Op. Income* Effects Oth

  11. Slide 11: Focus for 2008

    Focus for 2008 1 2 3 Improve Make progress Invest competitive in each area of in position and the formula for Future Growth cost efficiency growth ‰ Price ‰ Format BEST FORMAT ALWAYS FRESH FIRST Investment Pilots AVAILABLE FRIENDLY COLLEAGUES MOTIVATED PRICED TO SERVE CONTROL LABEL RIGHT ADVANTAGE ‰

  12. Slide 12: Improving competitive position and cost efficiency

    Improving competitive position and cost efficiency Major factors in Results expected to be improving Loblaw supported through cost competitive reduction/ efficiencies position . . . driven by focus on . . . ‰ Continued investment ‰ Operating cost programs: in price ¾ Labour productivity ¾ Shrink red

  13. Slide 13: Capital is being redeployed to infrastructure and existing store assets in the near-term

    Capital is being redeployed to infrastructure and existing store assets in the near-term LCL Gross Capital Expenditure ($ million) $937 Infrastructure 100 $825 New Store Development, 362 $613 280 Expansions & Land 160 162 187 Conversions 475 Remodels 383 266 2006 2007 2008E New New store store devel

  14. Slide 14: Uneven progress in 2007 towards delivering financial aspirations for turnaround

    Uneven progress in 2007 towards delivering financial aspirations for turnaround FINANCIAL ASPIRATIONS* ▪5% SALES GROWTH – 2.6% total sales growth, with 2.4% same-store sales growth ▪10% ADJUSTED NET EARNINGS GROWTH 8 -24.6% growth due to transformation costs and pricing investments ahead of cost red

  15. Slide 15: Make progress in each area of the Formula for Growth

    Make progress in each area of the Formula for Growth BEST FORMAT ALWAYS FRESH FIRST AVAILABLE FRIENDLY COLLEAGUES PRICED MOTIVATED CONTROL LABEL RIGHT TO SERVE ADVANTAGE HEALTH, HOME, 10% JOE & WHOLESOME 15

  16. Slide 16: Your Questions?

    Making Loblaw the Best Again Your Questions?

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