North West Company Inc. · TSX:NWC
North West — The North West Company — Shareholder Meeting (2011)
73 slides from North West's shareholder meeting presentation, 2011
Slide 1: 2011 Annual and Special Meeting
NortH WEST 2011 ANNUAL AND SPECIAL MEETING COMPANY 2 a More growth in store... @Northem érlivarr Hee Re.
Slide 2: David G. Broadhurst
More growth in store... David G. Broadhurst
Slide 3: Frank J. Coleman
NortH West More growth in store... Frank J. Coleman
Slide 4: Wendy F. Evans
More growth in store... Wendy F. Evans
Slide 5: R. J. (Bob) Kennedy
More growth in store... R. J. (Bob) Kennedy
Slide 6: Gary J. Lukassen
ov pw =) ~ 77) = <= — = o x =>) oO = = Nortu West < ® 7) 0 6 x | 4 5 > — @ oO
Slide 7: James G. Oborne
vs NorTH West More growth in store... James G. Oborne
Slide 8: Gary Merasty
Nortu West More growth in store... COMPANY Gary Merasty
Slide 9: Ian Sutherland
Nort West More growth in store... lan Sutherland
Slide 10: Caution Concerning Forward Looking Statements
Caution Concerning Forward Looking Statements Certain information presented today may constitute forward- looking statements. Such statements reflect North West’s current expectations, estimates, projections, and assumptions. These forward-looking statements are not guarantees of future performance
Slide 11: 2011 Annual and Special Meeting
NortTu WEST 2011 ANNUAL AND SPECIAL MEETING COMPANY pare
Slide 12: Ordinary Resolutions: Appointment of Directors
Ordinary Resolutions 1. Appointment of Directors 12
Slide 13: Ordinary Resolutions: Appointment of Auditors
Ordinary Resolutions 2. Appointment of Auditors 13
Slide 14: Executive Compensation Review
Executive Compensation Review Completed every three years Pay aligns with “total return” focus “Top quartile” pay aligns with “top quartile” performance 14
Slide 15: Relative Unit Price Performance (%)
Relative Unit Price Performance (%) NWF.UN Retailing Group TSX Composite 300 250 239 200 189 166 157 150 139 116 130 112 104 100 100 111 103 79 97 92 68 50 15 2006 2007 2008 2009 2010 2011
Slide 16: Ordinary Resolutions: Advisory Resolution on Executive Compensation
Ordinary Resolutions 3. Advisory Resolution on Executive Compensation 16
Slide 17: Ordinary Resolutions: Amended and Restated Share Option Plan
Ordinary Resolutions 4. Approve an Amended and Restated Share Option Plan 17
Slide 18: 2010 and Current Board Activity
2010 and Current Board Activity Income Trust Conversion IFRS Governance Policies Oversight on “More Growth in Store” 18
Slide 19: 2011 Annual and Special Meeting
NortTu WEST 2011 ANNUAL AND SPECIAL MEETING COMPANY pare
Slide 20: 2010 Performance: Consolidated Sales
2010 Performance Consolidated Sales ($ in millions) $1,500 1,444 1,448 1,393 $1,250 $1,000 1,064 945 $750 $500 $250 $0 20 2006 2007 2008 2009 2010
Slide 21: 2010 Performance: Trading Profit
2010 Performance Trading Profit ($ in millions) $150 $125 130 122 125 $100 107 96 $75 $50 $25 $0 21 2006 2007 2008 2009 2010
Slide 22: 2010 Performance: Net Earnings
2010 Performance Net Earnings ($ in millions) $100 CAGR 12.3% $75 81.8 75.4 76.6 63.0 $50 53.7 $25 $0 22 2006 2007 2008 2009 2010
Slide 23: Cash Flow from Operations/Cash Distributions
2010 Performance Cash Flow from Operations/Cash Distributions ($ in millions) Cash Flow from Operations Cash Distributions $125 116.5 113.1 $100 106.3 94.7 $75 78.8 67.7 67.3 68.7 $50 54.7 38.7 $25 $0 23 2006 2007 2008 2009 2010
Slide 24: Conversion to a Share Corporation: Expected Benefits
Conversion to a Share Corporation Expected Benefits Simplified tax and legal structure Greater access to capital markets New investors and improved liquidity 24
Slide 25: 2011 Annual and Special Meeting
NortTu WEST 2011 ANNUAL AND SPECIAL MEETING COMPANY pare
Slide 26: 2011 First Quarter Performance: Consolidated Sales
2011 First Quarter Performance Consolidated Sales ($ in millions) $350 346 340 346 $300 315 $250 234 $200 $150 $100 $50 $0 26 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 IFRS IFRS
Slide 27: 2011 First Quarter Performance: Trading Profit
2011 First Quarter Performance Trading Profit ($ in millions) 27 IFRS IFRS
Slide 28: 2011 First Quarter Performance: Net Earnings
2011 First Quarter Performance Net Earnings ($ in millions) $18 17.8 $16 16.1 $14 15.2 $12 12.4 $10 10.8 $8 $6 $4 $2 $0 28 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 IFRS IFRS
Slide 29: Quarterly Distributions/Dividends
2011 First Quarter Performance Quarterly Distributions/Dividends Record Date - June 30 / Payment Date - July 15 (Per Unit/Per Share) 29 INCOME TRUST CORPORATION
Slide 30: Distribution vs. Dividend
Distribution vs. Dividend Income Trust Corporation Taxable Income $ 0.34 $ 0.34 Corporate income tax payable - (0.10) After-tax income available for $ 0.34 $ 0.24 distribution/dividend Trust income marginal tax rate 46.4% - Eligible dividend marginal tax rate - 25.1% Individual income tax payable $
Slide 31: 2011 Annual and Special Meeting
NortTu WEST 2011 ANNUAL AND SPECIAL MEETING COMPANY pare
Slide 32: More growth in store (coupon)
NorTH WE ST More growth in store COMPAD pes OE Redeem this coupon for 4 free box of BV Select Sliders Angus Beef, 684 8- Paes No purchase required. Coupon redeemable at Winnipes Giant Tiger locations only. Expires June 28, 2011 One coupon per person. Facsimile coupons will not be accepted. 32
Slide 33: 2011 Annual and Special Meeting
2011 ANNUAL AND SPECIAL MEETING NortH WEst COMPANY
Slide 34: Northern Banners Same Store Sales
Northern Banners Same Store Sales Retail Comparator Group Total 10 8.0 5.7 4.8 5 4.3 3.2 2.6 2.8 2.5 -0.2 0 - 1.2 -1.0 -1.7 -2.6 -2.7 -3.3 -2.8 -5 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2010 2010 2010 2010 2011 34
Slide 35: Northern Banners 2011 Outlook
Northern Banners 2011 Outlook Carry over government spending 35
Slide 36: Northern Banners 2011 Outlook
Northern Banners 2011 Outlook Carry over government spending Resources development continues 36
Slide 37: Northern Banners 2011 Outlook
Northern Banners 2011 Outlook Carry over government spending Resources development continues Headwind from higher fuel prices 37
Slide 38: Nutrition North
Nortu West More growth in store... COMPANY Nutrition North 38
Slide 39: Nutrition North price savings by community
Iqaluit Before: $118.27 Paulatuk Now: $111.51 Before: $132.67 Savings: 6.1% Now: $112.79 Savings: 17.6% Island Lake Before: $115.55 Now: $101.77 Savings: 13.5% 39 39
Slide 40: Giant Tiger Same Store Sales
Giant Tiger Same Store Sales Retail Comparator Group 7 6.9 6.1 5.3 3.9 5 2.6 2.8 1.4 0.2 -1.0 0 -1.7 - 0.2 -1.7 -2.8 - 2.1 -3.3 -2.7 -5 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2010 2010 2010 2010 2011 40
Slide 41: Giant Tiger 2011 Outlook
Giant Tiger 2011 Outlook Great match with today’s consumer 41
Slide 42: Giant Tiger 2011 Outlook
Giant Tiger 2011 Outlook Great match with today’s consumer Food margins are improving 42
Slide 43: Giant Tiger 2011 Outlook
Giant Tiger 2011 Outlook Great match with today’s consumer Food margins are improving Fashion is still a question 43
Slide 44: Cost-U-Less Same Store Sales
Cost-U-Less Same Store Sales 5 1.2 0.6 0 - 1.8 - 3.8 - 4.1 - 4.9 - 4.5 -5 - 5.9 -10 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2010 2010 2010 2010 2011 44
Slide 45: Cost-U-Less 2011 Outlook
Cost-U-Less 2011 Outlook Food sales and margin growth 45
Slide 46: Cost-U-Less 2011 Outlook
Cost-U-Less 2011 Outlook Food sales and margin growth Modest recovery in Pacific 46
Slide 47: Cost-U-Less 2011 Outlook
Cost-U-Less 2011 Outlook Food sales and margin growth Modest recovery in Pacific Performance Improvement Plan Launched 47
Slide 48: "More Growth In Store" Priorities
“More Growth In Store” Priorities 48
Slide 49: "More Growth In Store" Priorities: Perishables
“More Growth In Store” Priorities Perishables 49
Slide 50: More Performance from Perishables
More Performance from Perishables….. Produce 13.1% 11.8% 10.0% 8.8% NCR 50 ACC 50
Slide 51: "More Growth in Store" Priorities: Fix Perishables, In Stock
“More Growth in Store” Priorities Fix Perishables In Stock 51
Slide 52: Key Strategic Priorities – In-Stock Rate Improvement
Key Strategic Priorities – In-Stock Rate Improvement Be Business Ready 92% 90% 88% 86% 84% ACC 82% NCR F2010 Starting Point 80% 78% 52 Sept '10 Nov '10 Dec '10 Jan '11 Feb '11 Mar '11 Apr '11
Slide 53: "More Growth in Store" Priorities: Supply Chain
“More Growth in Store” Priorities Fix Perishables In Stock Supply Chain 53
Slide 54: More Advantage From Our Supply Chain
More Advantage From Our Supply Chain … 2011 Targeted Savings ($ in millions) Strategic partnership with air carriers Warehouse Air Carriers Network configuration $1.2 and Hub $2.4 Transportation management system 54
Slide 55: "More Growth in Store" Priorities
“More Growth in Store” Priorities 55
Slide 56: Store Management Stability
“More Growth in Store” Priorities Store Management Stability 56
Slide 57: More Store Stability
More Store Stability…. Stable 4 + 56% 7 On Track 18 + 75% 28 Unstable 17 - 76% 4 Nov, 2010 Apr, 2011 November 2010 April 2011 57
Slide 58: Priorities: Store Management Stability, Customer Insight
“More Growth in Store” Priorities Store Management Stability Customer Insight 58
Slide 59: More Customer Insight
More Customer Insight…. In-store intercepts In-home interviews Social media 59
Slide 60: Priorities: Leadership & Execution
“More Growth in Store” Priorities Store Management Stability Customer Insight Leadership & Execution 60
Slide 61: More Leadership & Execution
More Leadership & Execution…. “Doing the work right” 61
Slide 62: More Leadership & Execution
More Leadership & Execution…. “Doing the work right” Proven practices 62
Slide 63: More Leadership & Execution
More Leadership & Execution…. “Doing the work right” Proven practices Cascaded to 300 managers 63
Slide 64: 2011 Annual and Special Meeting
2011 ANNUAL AND SPECIAL MEETING NortH WEst COMPANY
Slide 65: Our Community Promise
Our Community Promise… “To help create strong, healthy futures for the communities we serve and live in.” 65
Slide 66: 66
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Slide 67: Our Community Promise… By The Numbers
Our Community Promise… By The Numbers 67
Slide 68: Our Community Promise… In Action
Our Community Promise… In Action Greener Tomorrow Program 68
Slide 69: Our Community Promise… In Action
Our Community Promise… In Action Greener Tomorrow Program Team North West Diabetes 69
Slide 70: Our Community Promise… In Action
Our Community Promise…In Action Greener Tomorrow Program Team North West Diabetes United Way 70
Slide 71: The North West Company
THE Nortu WEstT COMPANY
Slide 72: The North West Company heritage
THE NortH WEst COMPANY Nor'Westers are associated with the vision. perseverance, and enterprising spirit of the voyageurs who pushed past limits to further our Company's growth during the fur trade. We trace our roots to 1668, and the establishment of one of North America’s early trading posts at Wa
Slide 73: ebzetk,
ebzetk, NorTH WEST COMPANY