North West Company Inc. · TSX:NWC
North West — North West Company Fund — Shareholder Meeting (May 2002)
40 slides from North West's shareholder meeting presentation, May 30, 2002
Slide 1: 2002 Annual and Special Meeting
2002 Annual and Special Meeting
Slide 2: Raymond Dor
NORTH WEST COMPANY FUND Raymond Dor
Slide 3: Lloyd Barber
NORTH WEST COMPANY FUND Lloyd Barber
Slide 4: Accounting Control and Audit Governance
ACCOUNTING CONTROL AND AUDIT GOVERNANCE ¥ Accounting and Finance -Eggertson, Gary CFO ¥ Operating Management ¥ Internal Audit -Pronyk Pam ¥ External Audit PricewaterhouseCoopers - LLP - Chris Couture, Partner ¥ Audit Committee - Gary Lukassen , Chair ¥ Board and Trustees
Slide 5: NWF — Five Year Total Return
NWF — FIVE YEAR TOTAL RETURN Distributions .. 53% Appreciation .. 56% Reinvestment .. .. 32% Total five year return Return per annum 19%
Slide 6: North West Company Fund
NORTH WEST COMPANY FUND
Slide 7: | Seu
| Seu 2 Sc WSTCONOY RD visionl (1) value
Slide 8: y, 4$>
y, 4$> vision growth value
Slide 9: Trading Profit Growth ($ in millions)
TRADING PROFIT GROWTH ($ in millions)
Slide 10: Sales Growth ($ in millions)
SALES GROWTH ($ in millions) $800 $600 $400 - $200 704 617 629 626 999 | ill I] 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 ei 4 vision growth value
Slide 11: Food Leverage Points
FOOD LEVERAGE POINTS ¥ Better costing through alliances ¥ Higher blend of value brands ¥ Superior execution in Alaska
Slide 12: Balance Sheet ($ in millions)
BALANCE SHEET ($ in millions)
Slide 13: Working Capital Turns
2001 performance WORKING CAPITAL TURNS $6 48 44 4 $2 0 1997 1998 1999 4.5 2000 2001 Z 48> vision growth value
Slide 14: Cash Distributions
CASH DISTRIBUTIONS y, 4$> vision growth value
Slide 15: Cash Distributions
CASH DISTRIBUTIONS Fiscal Year 1996* 1997 1998 1999 2000 2001 Cash flow from operations/unit 2.03 $ 2.40 3.47 2.99 3.21 3.74 Payout $ 0.40 0.60 1.00 1.44 1.44 1.46 Payout % 19.7 25.0 28.8 48.2 44.9 39.0 * Per share
Slide 16: Sales Growth
2002 first quarter performance SALES GROWTH 8% 6% 4% | 2 J 0 1998 _— 999 2000 2001 2002 4 vision growth <.
Slide 17: Trading Profit Growth
2002 first quarter performance TRADING PROFIT GROWTH 30% 20% 10% 5.0 0% 102 = -10% il 1998 1999 2000 2001 2002 / 4 vision growth value
Slide 18: Earnings Per Unit
2002 first quarter performance EARNINGS PER UNIT 1998 1999 2000 2001 2002 4$> vision growth <.
Slide 19: Build Store Capability
BUILD STORE CAPABILITY > vision growth value
Slide 20: Build Store Capability
BUILD STORE CAPABILITY ¥ New store systems
Slide 21: Build Store Capability
BUILD STORE CAPABILITY ¥ Best work practices
Slide 22: Create Alliances
CREATE ALLIANCES > vision growth value
Slide 23: Create Alliances
key growth initiatives CREATE ALLIANCES FURNITURE & APPLIANCES = 4 vision growth value
Slide 24: Create Alliances
key growth initiatives CREATE ALLIANCES SERV. COOPERATIVE INC. Z 4 vision growth value
Slide 25: Create Alliances
key growth initiatives CREATE ALLIANCES 48> vision growth value
Slide 26: Create Alliances
key growth initiatives CREATE ALLIANCES PRATTS WHOLESALE LIMITED 4 vision growth value
Slide 27: Create Alliances
CREATE ALLIANCES
Slide 28: Create Alliance Partners
key growth initiatives CREATE ALLIANCE PARTNERS A MOVE \ SELL @ \ || H@R BLOCK ne) ee = ae 4% vision growth value
Slide 29: Alaska Performance Gains
key growth initiatives ALASKA PERFORMANCE GAINS 8.0% TRADING PROFIT* % UL 6.0% 6.0 6.0 47 4.0% 3.0 2.0% 1.9 = S 0.0% i’ 1995 1996 1997 1998 1999 2000 2001 * before unusual items yy 48> vision growth value
Slide 30: Alaska Performance Gains
ALASKA PERFORMANCE GAINS ¥ Locations with greater than 65% market share
Slide 31: Alaska Performance Gains
ALASKA PERFORMANCE GAINS ¥ Retail market share capture ¥ Wholesale consolidation opportunit
Slide 32: Southern Market Expansion
SOUTHERN MARKET EXPANSION > vision growth value
Slide 33: Southern Market Expansion
key growth initiatives SOUTHERN MARKET EXPANSION 4% vision growth value
Slide 34: Junior Discount Stores
JUNIOR DISCOUNT STORES ¥ GT is a market leader ¥ Fastest growing retail sector ¥ Complement to core business
Slide 35: Junior Discount Stores
JUNIOR DISCOUNT STORES ¥ Low prices ¥ Convenience ¥ Consumables
Slide 36: Unique GT Strengths
key growth initiatives UNIQUE GT STRENGTHS 48> vision growth value
Slide 37: Unique GT Strengths
key growth initiatives UNIQUE GT STRENGTHS 48> vision growth value
Slide 38: Unique GT Strengths
UNIQUE GT STRENGTHS y, A 48> vision growth value
Slide 39: Junior Discount Stores
JUNIOR DISCOUNT STORES Master Franchise Agreement ¥ 30 years ¥ Exclusive rights for Western Canada ¥ Average 4 stores per year ¥ Trading profit contribution by year five
Slide 40: North West Company Fund
NORTH WEST COMPANY FUND
North West Company Fund — Shareholder Meeting (May 2002) on 6ix