Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Canadian Tire Corporation 2010 Investor Conference
71 slides from Canadian Tire's conference presentation, Apr 7, 2010
Slide 1: Forward-Looking Statements
Huw Thomas Executive Vice-President, Financial Strategy and Performance 1 FORWARD-LOOKING STATEMENTS This document contains forward-looking information that reects management’s current expectations related to matters such as expected future events, nancial performance and operating results of the
Slide 2: Forward-Looking Statements - continued
FORWARD-LOOKING STATEMENTS - continued The key risks and uncertainties that could cause actual results or the material factors and assumptions applied in preparing forward-looking information to differ materially from predictions, forecasts, projections, expectations or conclusions are discussed in
Slide 3: Stephen Wetmore, President and CEO
Stephen Wetmore President and CEO Canadian Tire Corporation 1 • Focus on core retail business • More customers vs more stores • Improved customer experience will bolster the brand • Automotive as a key differentiator • Financial Services & Mark’s to drive growth and support core retail • Execution .
Slide 4: Financial Performance Aspirations
FINANCIAL PERFORMANCE ASPIRATIONS Financial Aspirations POS - CTR 3 - 5% Consolidated operating EPS 8 - 10% Retail ROIC 10%+ Financial Services ROR 4.5 - 5.0% Leading to TRS (includes dividends) 10 - 12% 3
Slide 5: Building a Great Canadian Tire: You May Not Know
Mike Arnett President, Canadian Tire Retail 1 Strengthening the Core Building a Great YOU MAY NOT KNOW More hockey sticks and pucks than any other retailer in the world Enough tents to sleep a million people 2
Slide 6: You May Not Know: Brand recognition and online traffic
Strengthening the Core Building a Great YOU MAY NOT KNOW 98 % unaided recognition of the Canadian Tire logo 2/3read our flyer of Canadian men every week 3 Strengthening the Core Building a Great YOU MAY NOT KNOW canadiantire.ca had 58 million site visits in 2009 650 million page views Over 80,000 on
Slide 7: Unique Capabilities & Privileged Assets; Driving Sustainable Growth
Strengthening the Core Building a Great UNIQUE CAPABILITIES & PRIVILEGED ASSETS • Trusted brand • Unique assortment • Modern, well-located stores Sustainable • Canada’s most-read flyer • Category leadership Competitive • Canadian Tire ‘Money’ Advantage • Global sourcing capabilIties - Differentiatio
Slide 8: High Growth Categories
Strengthening the Core Building a Great HIGH GROWTH CATEGORIES Market growth Our expected rate growth rate Backyard 3% 6 - 8% Fitness equipment 2% 12 - 15% Kitchen 3% 7 - 8% Storage & organization 3% 5 - 6% Mechanics & air tools 6% 9 - 11% Paint & accessories 3% 5 - 7% 7 Strengthening the Core Build
Slide 9: Backyard: Product Strategies and Integrated Marketing Plan
Strengthening the Core Building a Great HIGH GROWTH CATEGORIES BACKYARD • Recognized brands PRODUCT STRATEGIES • Exclusive to us • Product innovation • Style and design 9 Strengthening the Core Building a Great HIGH GROWTH CATEGORIES BACKYARD INTEGRATED MARKETING PLAN Television Flyer Online Radio I
Slide 10: Traffic-Driving Categories
Strengthening the Core Building a Great TRAFFIC-DRIVING CATEGORIES 11 Strengthening the Core Building a Great TRAFFIC-DRIVING CATEGORIES • High purchase frequency • Influence price image • Include household consumables: 8.5% growth over the past 2 years • Include pet care: potential to expand by mor
Slide 11: Traffic-Driving Programs; Strategic Initiatives
Strengthening the Core Building a Great TRAFFIC-DRIVING PROGRAMS Flyer Programs • Flyer back page features “Everyday Essentials” • Doorcrasher promotions boost Saturday customer count 3% to 4% 13 Strengthening the Core Building a Great STRATEGIC INITIATIVES 14
Slide 12: Store Concept Renewal: Smart Stores
Strengthening the Core Building a Great STRATEGIC INITIATIVES STORE CONCEPT RENEWAL Smart Stores • More space for high growth and “cornerstone” categories • Add traffic-driving businesses • Racetrack floor plan, better signage, logical product adjacencies, enhanced service features • Store “operatio
Slide 13: The Small Market Store; CTR Change Program
Strengthening the Core Building a Great STRATEGIC INITIATIVES STORE CONCEPT RENEWAL The Small Market Store • Opportunity for growth in under-served markets • Low-cost building and makes great use of outdoor space • Most include a Mark’s and a Petroleum gas bar • $5 to $9 million in sales per store •
Slide 14: CTR Change Program; Customer-Centric Retailing
Strengthening the Core Building a Great STRATEGIC INITIATIVES CTR CHANGE PROGRAM Merchandise planning Promotional Vendor planning engagement Assortment Price and markdown management management Enhanced Master data merchandising management capabilities & product Reverse flow hierarchy 19 Strengthenin
Slide 15: Future Loyalty Program
Strengthening the Core Building a Great STRATEGIC INITIATIVES Future Loyalty Program • Simple and easy to understand • Use shopping data for tailored • Evolve Canadian Tire ‘Money’ offerings • Broader range of benefits • More relevant promotions and • Could extend across CTC communications • Pilot i
Slide 16: Store Performance & Customer Experience
Strengthening the Core Building a Great STORE PERFORMANCE & CUSTOMER EXPERIENCE Inconsistent performance across our network... Empty stock positions per shelf Customer complaints per dollar of sales 3x 6x First Quartile Fourth Quartile First Quartile Fourth Quartile 23 Strengthening the Core Buildin
Slide 17: Customer Experience Strategy; Drivers of Growth Summary
Strengthening the Core Building a Great STORE PERFORMANCE & CUSTOMER EXPERIENCE CUSTOMER EXPERIENCE STRATEGY Dealer engagement Performance Performance improvement evaluation program Customer Store support Operational Line review service team excellence process solutions Defined standards for in-stor
Slide 18: Michael Medline: Integrated Automotive
Michael Medline President, Canadian Tire Automotive and Dealer Relations 1 Strengthening the Core Integrated Automotive Canadian Tire Automotive is the cornerstone of our core business We have strong assets We’re well understood by customers We need to execute with excellence 2
Slide 19: Canada's Automotive Industry
Strengthening the Core Integrated Automotive CANADA’S AUTOMOTIVE INDUSTRY Market leader DIY parts $2.7B √ √ √ DIY “Do-it-yourself” Accessories $5.5B $2.8B √ √ √ Retail aftermarket $21.3B Service labour $7.8B √ Annual DIFM Installed tires sales “Do-it-for-me” $2.6B √ √ $15.8B Installed parts $5.4B √
Slide 20: Parts and Labour Aftermarket Growth; Cross-Enterprise Structure
Strengthening the Core Integrated Automotive PARTS AND LABOUR AFTERMARKET GROWTH (5-yr CAGR) Factors impacting demand: + More vehicles on the road + Key vehicle aftermarket years 5.1% + Higher mileage 3.6% + Delayed maintenance 2004 - 2009 2010 - 2014 - Better-built vehicles DesRosiers Automotive Co
Slide 21: Automotive Is a Core Differentiator
Strengthening the Core Integrated Automotive AUTOMOTIVE IS A CORE DIFFERENTIATOR 73%of consumers think of CANADIAN TIRE first for automotive accessories & CTR 73% parts Next competitor 6% 7 CTC Consumer survey Strengthening the Core Integrated Automotive AUTOMOTIVE IS A CORE DIFFERENTIATOR 65% of co
Slide 22: Differentiator; Assets and Capabilities
Strengthening the Core Integrated Automotive AUTOMOTIVE IS A CORE DIFFERENTIATOR 92% who visit Canadian Tire for automotive accessories CTR 92% make a purchase Next competitor 68% 9 CTC Consumer survey Strengthening the Core Integrated Automotive ASSETS AND CAPABILITIES BRANDS/PRODUCTS Customer mind
Slide 23: Innovation Example: Wiper Blades
Strengthening the Core Integrated Automotive INNOVATION EXAMPLE WIPER BLADES Market Leader in High-margin Business Introduction of Reflex®, Introduction of Reflex® Launch of one piece flex design WetTec Armor AllTM Stay tuned... (reduces streaking) (water repelling coating) silicone blades Fall 2004
Slide 24: Infrastructure; Five-Year Goal
Strengthening the Core Integrated Automotive ASSETS AND CAPABILITIES INFRASTRUCTURE 5,500 Service bays Store design >19 Million retail sq. ft. (15% is Auto) Unique specialty/Mass merchant National reach (e.g. exclusive certifier of imported vehicles) Supply chain infrastructure 273 Gas bars 13 Stren
Slide 25: Five Year POS Goals; Accessories Strategy
Strengthening the Core Integrated Automotive 5 FIVE YEAR POS GOALS Expected Market Growth Rate (2010 - 2014 CAGR) 1 Expected Growth Rate (CAGR) Accessories 2.4% 3.0% - 4.0% Tires DIY and installed parts Service labour 1.9% 4.7% 5.7%3 2 3 4.0% - 5.0% 6.0% - 7.0% 6.0% - 7.0% } 4% - 6% 1 Company estima
Slide 26: Tires Strategy; Website Tools
Strengthening the Core Integrated Automotive TIRES STRATEGY Outpace Market Growth 2014 Goal Initiatives to grow Point of sale 4% - 5% • Automotive Infrastructure 5-year CAGR (industry: 1.9%) • Breadth of inventory: in-stock, Enhanced special order special order Customer tools, leading brands, • Know
Slide 27: Automotive Infrastructure; Parts Strategy
Strengthening the Core Integrated Automotive PARTS & SERVICE AUTOMOTIVE INFRASTRUCTURE BROADER • More than double the assortment in automotive distribution centres ASSORTMENT FASTER • Build at least 22 PartSource hub stores to support 75% to 80% of Canadian Tire stores SUPPLY CHAIN BETTER • New auto
Slide 28: Project Accelerate
Strengthening the Core Integrated Automotive PROJECT ACCELERATE “Right Parts”, “Right Time” Marketing • Right parts for each • Communicate “We have market the parts” • Replace aged parts with • Communicate changes - CTR is DIY parts destination high demand parts - More of the right parts • Improve a
Slide 29: PartSource Growth Strategy
Strengthening the Core Integrated Automotive PARTSOURCE • Standalone automotive aftermarket chain • Hard parts and accessories to retail and TOTAL commercial customers • Network doubled in past 5 years • Excellent customer satisfaction 87 Stores 13 Alberta 6 Saskatchewan 6 Manitoba 59 Ontario 3 Nova
Slide 30: Service Strategy
Strengthening the Core Integrated Automotive SERVICE STRATEGY IMPROVING QUALITY AND CONSISTENCY 2014 Aspiration Initiatives to close the gap • Automotive Infrastructure Revenue 5-year CAGR 6% - 7% (industry: 5.7%) • Much improved service Improved customer management, communication Customer initiatio
Slide 31: Canadian Tire Petroleum
Strengthening the Core Integrated Automotive CANADIAN TIRE PETROLEUM Our goal is to drive business to CTR and Financial Services 27 Strengthening the Core Integrated Automotive CANADIAN TIRE PETROLEUM IMPORTANT REVENUE SOURCE Inter-related benefits today... • Distributes ~$35 million in Canadian The
Slide 32: 401/400 Series Highway Deal
Strengthening the Core Integrated Automotive CANADIAN TIRE PETROLEUM 401/400 SERIES HIGHWAY DEAL 29 Strengthening the Core Integrated Automotive CANADIAN TIRE PETROLEUM 401/400 SERIES HIGHWAY DEAL CTP will partner with Host Kilmer to manage fuel and convenience store operations at 23 service station
Slide 33: Highway Deal Net Result; Automotive Business Summary
Strengthening the Core Integrated Automotive CANADIAN TIRE PETROLEUM 401/400 SERIES HIGHWAY DEAL 78 Canadian Tire stores in close proximity CTP Sites CTR Stores Highway 401 & 400 31 Strengthening the Core Integrated Automotive AUTOMOTIVE BUSINESS Overview Going a much improved forward: customer expe
Slide 34: Paul Wilson, Mark's Overview
Paul Wilson President, Mark’s 1 Mark’s Overview Mark’s fit with CTC 2
Slide 35: Mark's Is Canadian Tire's Apparel Business
Mark’s Overview CTR market share Mark’s is $7.6 billion total CanadianTire’s men’s apparel and footwear market Apparel Business Trendex 3 Mark’s Overview CTR + Mark’s Mark’s is CanadianTire’s Apparel Business $7.6 billion total men’s apparel and footwear market Trendex 4
Slide 36: Our Customers
Strong brand Mark’s Overview Continued growth in main categories New opportunities for growth 5 Mark’s Overview OUR 3 CUSTOMERS 6
Slide 37: We Dominate: #1 in Men's Work & Casual
WE DOMINATE Mark’s Overview $558 Million M ARKE T 39% Mark’s Industrial WORK & FOOTWEAR Trendex 7 Mark’s # 1MEN’S IN CASUAL Overview $6.2 billion MAR KET Share ’07: 8.7% ’08: 9.2% ‘09E: 9.3% 9.3% Mark’s Mark’s Meanwhile the men’s wear market MENSWEAR declined 7% during the same period Trendex 8
Slide 38: Growing Share of a Huge Market
GROWING SHARE OF A Mark’s Overview HUGE MARKET $11 Billion MA RKE T Share ’07: 2.7% ’08: 2.9% ‘09E: 3.1% 3.1% Mark’s Mark’s Meanwhile the women’s wear market WOMENSWEAR declined 1.3% during the same period Trendex 9 PRIVATE LABEL Mark’s Overview BRANDS 10
Slide 39: Strong Performance
NETWORK Mark’s Overview 11 STRONG PERFORMANCE Mark’s Overview Strong Growth Retail Sales ($ millions - 2 year averages) Market declined during the recession. Men’s down 7%, Women’s down 1.3% 939 984 But Mark’s share grew... 724 ’07 ’08 ‘09E 500 536 Men’s 8.7% 9.2% 9.3% Women’s 2.7% 2.9% 3.1% ‘00/01
Slide 40: Innovation
Innovation Mark’s Overview • Composite toe • Quad comfort • Anti-stain THE • Curve Tech RELENTLESS PURSUIT OF QUALITY, • Exclusive & Protected COMFORT AND INNOVATION. 13 Mark’s Overview • Highest growth in awareness • Highest awareness overall • For both men’s and women’s 14 Vision Critical/Angus Re
Slide 41: Growth Strategies: Reinforce the Core
Mark’s 5 Growth Strategies Overview 1 Reinforce the core Expand customer base 2 Even more innovation 3 Expand channels 4 Store concept renewal 5 15 Mark’s Overview 5 Growth Strategies • Co-locate with Canadian Tire • Marketing synergies • Loyalty/Customer-centric retailing Reinforce the core 1 16
Slide 42: Expand Customer Base; Even More Innovation
Mark’s Overview 5 Growth Strategies • More than just workwear • Men’s casual wear expands market • Women’s market triples the opportunity Expand customer base 2 17 Mark’s Overview 5 Growth Strategies • More Anti-slip • Heat tech • Anti-salt • Curve-tech Even more innovation 3 18
Slide 43: Expand Channels
Mark’s Overview 5 Growth Strategies • Existing unique channels • Kiosks • Imagewear • Mark’s online Expand channels 4 19 Mark’s Overview 5 Growth Strategies Store concept renewal 5 20
Slide 44: Store Concept Renewal
Mark’s Overview 5 Growth Strategies • Name change and refresh • Redesign shopping experience • 3 markets, 30 stores in 2010 Store concept renewal 5 21 Mark’s 5 Growth Strategies 1 Overview Reinforcing the core Expand customer base 2 Even more innovation 3 3% to 5% CAGR Expand channels 4 Store concep
Slide 45: Dean McCann: About Financial Services
Dean McCann President, Canadian Tire Financial Services 1 ABOUT FINANCIAL SERVICES Financial Services Overview • Part of CTC for nearly 50 years • Our services play a role in our customers’ lives: - Options MasterCard, Gas Advantage, Credit Protector, warranty, deposits • CTC support services, eg. c
Slide 46: Assets and Capabilities
ASSETS AND CAPABILITIES Financial Services Overview Assets that underpin the Financial Services business: • Canadian Tire brand - Canadians trust the ‘triangle’ • Canadian Tire stores/Petroleum sites - low-cost acquisition • Canadian Tire ‘Money’ - key reason for acquiring/ using Options MasterCard
Slide 47: Financial Services: Getting Back to Targeted ROR
FINANCIAL SERVICES: CONSISTENTLY VERY PROFITABLE Financial Return on Receivables Services 6.0% Overview 5.0% } Target Range 4.0% 3.0% 2005 2006 2007 2008 2009 Operating Expenses as a % of GAR 9.0% 8.0% 7.0% 6.0% 2005 2006 2007 2008 2009 5 GETTING BACK TO TARGETED ROR Financial Services 2009 Target O
Slide 48: Loss Rate vs Competition; New Normal Write-Off Rate
FINANCIAL SERVICES’ LOSS RATE VS COMPETITION Financial Our loss rate was less volatile in 2009 Services Overview • Our write-off rate grew by 25% • Our competitors’ write-off rates grew on average 50%+ 150% 124% % Change in loss ratio 99% 73% 47% 21% Financial Services -4% -30% 8 09 09 09 09 9 09 9
Slide 49: New Normal Write-Off Rate; Room to Grow
THE “NEW NORMAL” WRITE-OFF RATE Financial Past target of 5% to 6% replaced with a rate in the low 7%’s Services Overview Reflects: • More modest expected future credit card growth • More of the portfolio’s future growth will come from growing the average balances of newer accounts No change in risk
Slide 50: Financial Services Has Room to Grow: Balances and Accounts
FINANCIAL SERVICES HAS ROOM TO GROW... Increasing average credit card balances Financial • Every $100 increase in average balance = $7 to $10 million EBT Services Overview • We can do this by: - Marketing new products - Promoting existing products eg. deferred sales - Targeting offers to high-value
Slide 51: Integrated Customer-Centric Approach
FINANCIAL SERVICES HAS ROOM TO GROW... An integrated customer-centric approach Financial Services Overview Opportunity Tactics Benefits Credit-related • Instant credit More Financial Services • Deferred/ customers and higher retail sales installments • Instant credit same day average • In-store prom
Slide 52: Well Positioned for the Future
FINANCIAL SERVICES HAS ROOM TO GROW... An integrated customer-centric approach Financial Services Overview Opportunity Tactics Benefits Growth - • Cards • Incremental returns by new services • Warranty leveraging existing • Insurance infrastructure and • Brand capabilities complementary 15 WE ARE WE
Slide 53: Pat Sinnott: Role of Supply Chain
Pat Sinnott Executive Vice-President, Technology & Supply Chain 1 ROLE OF SUPPLY CHAIN Infrastructure/ Productivity Support retail growth by managing the flow of information to enable product flow 2
Slide 54: Role of Supply Chain: Core Processes
ROLE OF SUPPLY CHAIN 2 Core processes provide visibility Reliable time-phased forecasting & Infrastructure/ Productivity replenishment Advanced operations planning 3 ROLE OF SUPPLY CHAIN Infrastructure/ Productivity Core processes help manage complexities 1 A pure pull order management system 2 Glob
Slide 55: Pull Order Management; Global Sourcing
ROLE OF SUPPLY CHAIN Infrastructure/ Productivity 1 Pull order management system • Forecasts consumer & Dealer demand • Manages product flow on a pure pull system • Flows product to a store only in response to a store order 5 ROLE OF SUPPLY CHAIN Infrastructure/ Productivity 2 Global Sourcing Provide
Slide 56: Hi/Low Marketing; Distribution Network
ROLE OF SUPPLY CHAIN Infrastructure/ Productivity 3 Hi/low marketing creates consumer excitement 7 ROLE OF SUPPLY CHAIN Core processes manage movement Infrastructure/ Productivity 4 CTR distribution centres 2 Transload facilities 3 Auto parts distribution centres 2 Mark’s distribution centres 8
Slide 57: Infrastructure & Productivity: Distribution Centres
INFRASTRUCTURE & PRODUCTIVITY MONTREAL Infrastructure/ Productivity DISTRIBUTION CENTRE Opened Jan 2009 on time & on budget 1.5 million sq. ft. Shifting focus from increasingcapacity to driving productivity Throughput capacity between 55 & 60 million cu ft. Capacity to support growth until 2015 9 IN
Slide 58: Testimonials; Process Re-engineering
INFRASTRUCTURE & PRODUCTIVITY Infrastructure/ Productivity TESTIMONIALS 11 INFRASTRUCTURE & PRODUCTIVITY Infrastructure/ Productivity Apply same technology-enabled process re-engineering, Lean Methods, Six Sigma approaches to: • CTR Change program • Line review process • Automotive Infrastructure 12
Slide 59: Corporate-Wide Productivity; CTR Change Program
INFRASTRUCTURE & PRODUCTIVITY Infrastructure/ Productivity This is the beginning of corporate-wide productivity initiative: • Map each process • Assess each process with respect to its importance, how well each process is supported by technology, and the degree of improvement possible • Develop a pr
Slide 60: Line Review Re-engineering; Automotive Infrastructure Program
LINE REVIEW RE-ENGINEERING Infrastructure/ Productivity • Comprehensive and cross-functional process • Determines assortment • Selects the suppliers • Determines presentation to customer • Establishes pricing strategy 15 AUTOMOTIVE INFRASTRUCTURE PROGRAM Infrastructure/ Productivity 3 sets of core p
Slide 61: Automotive Parts Distribution Network; Technology
AUTOMOTIVE PARTS DISTRIBUTION Automotive DC (75K SKUs) NETWORK Infrastructure/ Productivity Batch overnight deliveries Hubs (35K SKUs) PartSource (15K SKUs) CTR stores (8-9K SKUs) Same day deliveries Emergency deliveries 17 TECHNOLOGY Infrastructure/ Productivity Centralized Information Technology a
Slide 62: Technology Gap Assessment and Roadmap
TECHNOLOGY Infrastructure/ Productivity Best-of-breed approach provides better support to core processes and reduces risk 19 TECHNOLOGY GAP ASSESSMENT SCORING TECHNOLOGY ASSESSMENT ROADMAP Not Assessed No Gap 1 Gap 2 Gap Little/No Some Many N/A Infrastructure/ MERCHANDISING MARKETING/CUSTOMER SUPPOR
Slide 63: Technology Initiatives and Spend
TECHNOLOGY 4 Infrastructure/ Productivity Infrastructure & information management initiatives: • Invest in the network to move information • Invest in maintaining the quality of information • Provide analytical tools with which to use information • Protect the information 21 TECHNOLOGY SPEND Infrast
Slide 64: Growth & Productivity Enabled by Technology
GROWTH & PRODUCTIVITY ENABLED BY TECHNOLOGY SUMMARY Infrastructure/ Productivity More sales from the existing store network More productivity from the existing infrastructure Performance improvements enabled by technology and process re-engineering A clear roadmap IT and business strategy alignment
Slide 65: Marco Marrone: Key Areas of Focus
Marco Marrone Chief Financial Officer & Executive Vice-President Canadian Tire Corporation 1 KEY AREAS OF FOCUS Driving performance • Increase retail return on invested capital (ROIC) and return on receivables (ROR) Financial flexibility • Working capital • Reducing debt Operating efficiency • Produc
Slide 66: Driving Performance
DRIVING PERFORMANCE CTC Outcome Trend Drivers Core retail & automotive • Growth in major categories • Automotive Infrastructure • Smart and Small Market store • Store performance & Revenue rollout customer experience • CTR Change program • New loyalty and CCR programs • Promotional mix • Centrally m
Slide 67: Capital Expenditures; Focus on Improving Retail ROIC
DRIVING PERFORMANCE CTC Annual Capital Expenditures Planning for $280 to $300 million ($ millions) in annual CAPEX: CAPEX is expected to remain at this level 1. Real Estate programs: • Capital-light Smart store retrofits 557 593 • New/replacement stores 472 391 2. Growth and productivity programs: 29
Slide 68: Financial Services ROR; Sources of Financing
FOCUS ON IMPROVING FINANCIAL SERVICES ROR Objective = 4.5% to 5% Financial Services ROR Return On Receivables Top-line Growth • Retail finance programs • Pricing/ Revenue • Deferred enhancements • Installment Expense Reductions • Instant credit • Provisions • Interest • Continued balance transfer • O
Slide 69: Debt Repayment; Our Credit Rating
DEBT REPAYMENT Reduced Debt ($ millions) We will not 300 refinance $300 million in maturing corporate debt will not be refinanced 635 365 Lower interest expense will help drive 317 253 increasing free cash flows and earnings 2010F 2011F 2012F 2013F 2014F Glacier Credit Card Trust maturity Corporate
Slide 70: Credit Rating Affirmed; Increasing Free Cash Flows
OUR CREDIT RATING RECENTLY AFFIRMED Standard & Poor’s BBB+/Stable/-- (as of Dec. 18, 2009) • Rating reflects “leading position as the country’s largest hard goods retailer, established through strong branding and extensive market coverage” • Company has “resilient earnings in challenging market condi
Slide 71: Financial Aspirations; Our Aspirations Are Achievable
DRIVING PERFORMANCE Financial Aspirations POS - CTR 3 - 5% Consolidated operating EPS 8 - 10% Retail ROIC 10%+ Financial Services ROR 4.5 - 5.0% Leading to TRS (includes dividends) 10 - 12% Financial Performance & Outcomes 13 OUR ASPIRATIONS ARE ACHIEVABLE 1. We are in a strong financial position (b
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