North West Company Inc. · TSX:NWC
North West — North West Company Fund — Shareholder Meeting (June 2005)
66 slides from North West's shareholder meeting presentation, Jun 9, 2005
Slide 1: 2005 Annual & Special Meeting of Unitholders
ENTERPRISING NORTH WEST NORTH WEST COMPANY FUND 2005 Annual & Special Meeting of Unitholders
Slide 2: David Broadhurst
NORTH WEST COMPANY FUND David Broadhurst
Slide 3: Kevin Bolt
NORTH WEST COMPANY FUND Kevin Bolt
Slide 4: Don Beaumont
NORTH WEST COMPANY FUND Don Beaumont
Slide 5: Frank Coleman
NORTH WEST COMPANY FUND Frank Coleman
Slide 6: R. J. (Bob) Kennedy
NORTH WEST COMPANY FUND R. J. (Bob) Kennedy
Slide 7: Gary Lukassen
NORTH WEST COMPANY FUND Gary Lukassen
Slide 8: Keith Martell
NORTH WEST COMPANY FUND Keith Martell
Slide 9: James Oborne
NORTH WEST COMPANY FUND James Oborne
Slide 10: H. Sanford (Sandy) Riley
NORTH WEST COMPANY FUND H. Sanford (Sandy) Riley
Slide 11: Don Beaumont
NORTH WEST COMPANY FUND Don Beaumont
Slide 12: Enterprising North West
ENTERPRISING NORTH WEST NORTH WEST COMPANY FUND
Slide 13: Sales Growth
SALES GROWTH ($ in millions) 783 789 $800 750 704 659 $600 $400 $200 $0 2000 2001 2002 2003 2004
Slide 14: Trading Profit Growth
TRADING PROFIT GROWTH ($ in millions) $80 77 72 73 70 64 $60 $40 $20 $0 2000 2001 2002 2003 2004
Slide 15: Net Earnings Per Unit
NET EARNINGS PER UNIT $2.50 2.32 2.22 2.14 1.89 1.95 $2.00 $1.50 $1.00 $0.50 $0.00 2000 2001 2002 2003 2004
Slide 16: Cash Flow from Operations / RONA
CASH FLOW FROM OPERATIONS ($ in millions) / RONA (%) $70 21.0 % 63 59 59 $60 56 18.0 % 48 14.8 $50 13.4 13.9 15.0 % Cash Flow 12.7 from Operations 11.5 $40 12.0 % RONA (%) $30 9.0 % $20 6.0 % $10 3.0 % $0 0.0 % 2000 2001 2002 2003 2004
Slide 17: Capital Structure
CAPITAL STRUCTURE $250 1.00 Debt 0.92 236 Equity ($ in millions) 230 220 219 Debt : Equity $200 0.80 191 0.69 176 0.62 $150 152 0.56 0.60 0.51 137 128 121 $100 0.40 $50 0.20 $0 0.00 2000 2001 2002 2003 2004
Slide 18: NWF Cash Paid Out & Reinvested
NWF CASH PAID OUT & REINVESTED Fiscal Year 2004 2003 2002 2001 2000 Cash flow from Operations/unit $ 3.89 3.65 3.67 3.74 3.21 Payout $ 1.80 1.90* 1.56 1.46 1.44 Payout % 46.3 52.1 42.5 39.0 44.9 Reinvested $ 2.09 1.75 2.11 2.28 1.77 *includes special distribution of $0.34
Slide 19: Sales Growth
SALES GROWTH Consolidated +6.4% • Canada Food +4.5% • Canada General Merchandise +7.6% • Alaska +7.1%
Slide 20: Trading Profit Performance
TRADING PROFIT PERFORMANCE ($ in millions) $18 Total $16 14.6 14.3 Canada 13.6 13.2 $14 Alaska $12 1.0 1.4 2.3 1.6 $10 $8 $6 $4 $2 12.6 12.9 11.6 12.3 $0 Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005
Slide 21: Trading Profit Performance
TRADING PROFIT PERFORMANCE ($ in millions) $18 Total $16 14.6 14.3 Canada 13.6 13.2 $14 Alaska $12 1.0 1.4 2.3 1.6 $10 $8 $6 $4 $2 12.6 12.9 11.6 12.3 14.1 $0 Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005
Slide 22: Trading Profit Performance
TRADING PROFIT PERFORMANCE ($ in millions) $18 16.8 Total $16 14.6 14.3 Canada 13.6 13.2 $14 2.7 Alaska $12 1.0 1.4 2.3 1.6 $10 $8 $6 $4 $2 12.6 12.9 11.6 12.3 14.1 $0 Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005
Slide 23: Net Earnings
NET EARNINGS ($ in millions) $8 7.7 6.3 6.4 $6 5.5 4.9 $4 $2 $0 Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005
Slide 24: Enterprising North West
ENTERPRISING NORTH WEST NORTH WEST COMPANY FUND
Slide 25: Relative Unit Price Performance
RELATIVE UNIT PRICE PERFORMANCE (%) 450 403 NWF.UN Retailing Group 375 TSX Composite 290 300 235 225 180 150 123 118 107 100 111 93 81 124 75 101 76 80 81 0 2000 2001 2002 2003 2004 2005
Slide 26: Relationships that Matter
a =“ ie Relationships that Matter
Slide 27: Economic Outlook
Economic Outlook ¢ Population growth
Slide 28: Population growth, pipeline construction
• Population growth • Pipeline construction
Slide 29: Economic outlook: government funding
• Population growth • Pipeline construction • Government funding
Slide 30: Economic outlook: Alaska oil revenues
• Population growth • Pipeline construction • Government funding • Alaska oil revenues
Slide 31: Economic outlook: fuel-related cost pressures
• Population growth • Pipeline construction • Government funding • Alaska oil revenues • Fuel-related cost pressures
Slide 32: Operate each store as if it were the only store
• Operate each store as if it were the only store we have • Offer more exciting, new and exclusive merchandise • Achieve higher sales per capita • Lower our costs through better systems and more productive work
Slide 33: Northern Retail Group
Northern Retail Group UNBEATABLE | r UNDEATAGLE PRIGE , Prat ae. Rm
Slide 34: Northern Retail Group
Northern Retail Group
Slide 35: Northern Retail Group
Northern Retail Group
Slide 36: 60 managers through Best Practice
• 60 managers through Best Practice
Slide 37: New manager talent pool development
• 60 managers through Best Practice • New manager talent pool development
Slide 38: Profit-sharing to reward store performance
• 60 managers through Best Practice • New manager talent pool development • Profit-sharing to reward store performance
Slide 39: Technology that builds a better store
• 60 managers through Best Practice • New manager talent pool development • Profit-sharing to reward store performance • Technology that builds a better store
Slide 40: New Merchandise
New Merchandise Deluxe Pizza Pizze luxe Cheese Pizza Pizza au fromage 20 Beef Burgers Sa 209 Beet —yd® Burtsr® Straizhe € French Pr; une Prites ca es —-- “Oune droiy
Slide 41: New Merchandise
New Merchandise Cakes for Special Occasions
Slide 42: New Merchandise
New Merchandise
Slide 43: New Merchandise
New Merchandise
Slide 44: New Merchandise
New Merchandise
Slide 45: Lower Buying Costs
Lower Buying Costs
Slide 46: Growing Sales Per Capita
Growing Sales Per Capita STOP bd MLo ndé <PD%e FOUR WAY
Slide 47: Growing Sales Per Capita
Growing Sales Per Capita ersae enite:
Slide 48: High same store sales growth
• High same store sales growth
Slide 49: Strong customer response to food
• High same store sales growth • Strong customer response to food
Slide 50: Fashion blend increasing as stores mature
• High same store sales growth • Strong customer response to food • Fashion blend increasing as stores mature
Slide 51: Finding locations and people are a priority
• High same store sales growth • Strong customer response to food • Fashion blend increasing as stores mature • Finding locations and people are a priority
Slide 52: Northern Canada Retail Food Procurement & Wholesaling
Northern Canada Retail Food Procurement & Wholesaling Alaska Commercial Company Giant Tiger West
Slide 53: Northern Canada Retail Food Procurement & Wholesaling
Northern Canada Retail Food Procurement & Wholesaling Carl McKay Alaska Commercial Company Giant Tiger West
Slide 54: Northern Canada Retail Food Procurement & Wholesaling
Northern Canada Retail Food Procurement & Wholesaling Carl McKay Scott Findlay Alaska Commercial Company Giant Tiger West
Slide 55: Northern Canada Retail Food Procurement & Wholesaling
Northern Canada Retail Food Procurement & Wholesaling Carl McKay Scott Findlay Alaska Commercial Company Giant Tiger West Rex Wilhelm
Slide 56: Northern Canada Retail Food Procurement & Wholesaling
Northern Canada Retail Food Procurement & Wholesaling Carl McKay Scott Findlay Alaska Commercial Company Giant Tiger West Rex Wilhelm Scott McKay
Slide 57: Thank You
Thank You Ron Voldeng => Jerry Bittner
Slide 58: Relationships that Matter
Relationships that Matter
Slide 59: Customers Value Service
Customers Value Service
Slide 60: Employee Commitment Runs Deep
Employee Commitment Runs Deep — = A N Ate 7 6 i
Slide 61: Strong
any Sune are Strong aia W Ac ‘8. : ' A
Slide 62: Community Links are Strong
Community Links are Strong Norinern oPAIAe
Slide 63: Suppliers Add Real Value
Suppliers Add Real Value
Slide 64: Performance Shines Through for Investors
Performance Shines Through for Investors
Slide 65: Relationships that Matter
Relationships that Matter
Slide 66: Enterprising North West
ENTERPRISING NORTH WEST NORTH WEST COMPANY FUND
North West Company Fund — Shareholder Meeting (June 2005) on 6ix