North West Company Inc. · TSX:NWC
North West — North West Company Fund — Shareholder Meeting (June 2004)
70 slides from North West's shareholder meeting presentation, Jun 3, 2004
Slide 1: 2004 Annual General Meeting of Unitholders
NORTH WEST COMPANY FUND 2004 Annual General 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: Donald Beaumont
Donald Beaumont
Slide 5: Frank Coleman
NORTH WEST COMPANY FUND Frank Coleman
Slide 6: Nellie Cournoyea
Nellie Cournoyea
Slide 7: R.J. (Bob) Kennedy
R.J. (Bob) Kennedy
Slide 8: Gary Lukassen
RIRREEESEEEEEEEEY _ e | (a) FL, = Ee = va as = SS 1S = Y EL = ab = jae O Zs Gary Lukassen
Slide 9: Keith Martell
NORTH WEST COMPANY FUND Keith Martell
Slide 10: Stanley McKay
Stanley McKay
Slide 11: James Oborne
James Oborne
Slide 12: H. Sanford (Sandy) Riley
NORTH WEST COMPANY FUND . Sanford Sandy) Riley
Slide 13: North West Company Fund
NORTH WEST COMPANY FUND
Slide 14: 2003 Performance
2003 Performance Your Everyday Store oo
Slide 15: Sales Growth
SALES GROWTH ($ in millions) 783 $800 750 704 659 626 $600 $400 $200 $0 1999 2000 2001 2002 2003
Slide 16: Trading Profit Growth
TRADING PROFIT GROWTH ($ in millions) $80 72 73 70 64 60 $60 $40 $20 $0 1999 2000 2001 2002 2003
Slide 17: Net Earnings Per Unit
NET EARNINGS PER UNIT $2.50 2.14 2.22 1.86 1.89 1.95 $2.00 $1.50 $1.00 $0.50 $0.00 1999 2000 2001 2002 2003
Slide 18: Cash Flow from Operations / RONA
CASH FLOW FROM OPERATIONS ($ in millions) / RONA (%) $70 21.0 % 59.2 59.5 $60 55.8 18.0 % 44.9 47.8 13.9 $50 13.4 15.0 % Cash Flow 12.7 from Operations 11.6 11.5 $40 12.0 % RONA (%) $30 9.0 % $20 6.0 % $10 3.0 % $0 0.0 % 1999 2000 2001 2002 2003
Slide 19: Capital Structure
CAPITAL STRUCTURE 1.01 Debt $250 1.00 0.92 Equity ($ in millions) 230 220 219 Debt : Equity $200 0.80 191 0.69 171 170 176 0.62 $150 0.56 0.60 152 137 128 $100 0.40 $50 0.20 $0 0.00 1999 2000 2001 2002 2003
Slide 20: NWF Cash Paid Out & Reinvested
NWF CASH PAID OUT & REINVESTED
Slide 21: NWF Cash Paid Out & Reinvested
NWF CASH PAID OUT & REINVESTED Fiscal Year 2003 2002 2001 2000 1999 Cash flow from Operations/unit $ 3.69 3.67 3.74 3.21 2.99 Payout $ 1.90 1.56 1.46 1.44 1.44 Payout % 51.5 42.5 39.0 44.9 48.2 Reinvested $ 1.79 2.11 2.28 1.77 1.55
Slide 22: Relative Unit Price Performance
RELATIVE UNIT PRICE PERFORMANCE (%) 250 247 NWF.UN 200 Retailing Group 200 TSX Composite 153 142 150 128 137 119 104 100 100 85 105 76 77 50 62 58 61 0 1999 2000 2001 2002 2003 2004
Slide 23: Sales Growth
SALES GROWTH Consolidated +2.8%
Slide 24: Sales Growth
SALES GROWTH Consolidated +2.8% • Giant Tiger +13.5%
Slide 25: Sales Growth
SALES GROWTH Consolidated +2.8% • Giant Tiger +13.5% • Alaska +5.9%
Slide 26: Sales Growth
SALES GROWTH Consolidated +2.8% • Giant Tiger +13.5% • Alaska +5.9% • Northern Canada Food +3.2%
Slide 27: Sales Growth
SALES GROWTH Consolidated +2.8% • Giant Tiger +13.5% • Alaska +5.9% • Northern Canada Food +3.2% • Northern Canada General Merchandise -8.8%
Slide 28: Trading Profit Performance
TRADING PROFIT PERFORMANCE ($ in millions) 14.3 14.6 $14 13.6 13.2 Total 12.3 1.4 Canada $12 1.0 0.7 1.6 Alaska $10 $8 $6 $4 $2 11.6 12.6 12.9 11.6 $0 Q1 2000 Q1 2001 Q1 2002 Q1 2003 Q1 2004
Slide 29: Trading Profit Performance
TRADING PROFIT PERFORMANCE ($ in millions) 14.3 14.6 $14 13.6 13.2 Total 12.3 1.4 Canada $12 1.0 0.7 1.6 Alaska $10 $8 $6 $4 $2 11.6 12.6 12.9 11.6 12.3 $0 Q1 2000 Q1 2001 Q1 2002 Q1 2003 Q1 2004
Slide 30: Trading Profit Performance
TRADING PROFIT PERFORMANCE ($ in millions) 14.3 14.6 $14 13.6 13.2 Total 12.3 1.4 Canada $12 1.0 2.3 Alaska 0.7 1.6 $10 $8 $6 $4 $2 11.6 12.6 12.9 11.6 12.3 $0 Q1 2000 Q1 2001 Q1 2002 Q1 2003 Q1 2004
Slide 31: Net Earnings
NET EARNINGS ($ in millions) $8 6.3 6.4 $6 5.5 4.9 4.3 $4 $2 $0 Q1 2000 Q1 2001 Q1 2002 Q1 2003 Q1 2004
Slide 32: North West Company Fund
NORTH WEST COMPANY FUND
Slide 33: Your Everyday Store
Your Everyday Store
Slide 34: The North West Company is a growing network of interrelated businesses
The North West Company is a growing network of interrelated businesses...
Slide 35: Northern Retail: Canada / Alaska
Northern Retail: Canada Northern Retail: Alaska
Slide 36: Northern Retail, Giant Tiger, Wholesaling
Northern Retail: Canada Giant Tiger Northern Retail: Alaska Wholesaling
Slide 37: 2003 Revenue $780 million
Northern Retail: Canada Giant Tiger 2003 Revenue $780 million Northern Retail: Alaska Wholesaling The North West Company Shared Services
Slide 38: Store and account counts by business
Northern Retail Canada from 132 to 137 stores Northern Retail Alaska from 24 to 28 stores Giant Tiger from 7 to 35 stores Wholesaling from 370 to 685 accounts
Slide 39: Strategic Plan for Growth 2004-2009
Northern Retail Group Strategic Plan for Growth 2004 — 2009
Slide 40: Four strategic priorities
1. Higher sales per capita 2. Operate each store as if it is the only one we operate 3. Exciting, new and exclusive merchandise 4. Lower costs through more innovative work
Slide 41: Per Capita Sales Potential
Northern Retail Per Capita Sales Potential
Slide 42: Annual income growth of 4-5%
Northern Retail Per Capita Sales Potential =e oe Fig 1 Annual income growth of 4—5%
Slide 43: Older shoppers: sell more healthy living
Annual income growth of 4 – 5% Older shoppers = sell more “healthy living”
Slide 44: Older shoppers: sell more healthy living
Annual income growth of 4 – 5% Older shoppers = sell more “healthy living”
Slide 45: More mobile shoppers: sell more convenience
Annual income growth of 4 – 5% Older shoppers = sell more “healthy living” More mobile shoppers = sell more convenience
Slide 46: Approach each store as if it is the only one
Approach each store as if it is the only one we operate...
Slide 47: Store-level managers trained in best practices
85 store-level managers trained in best practices last year
Slide 48: New manager recruiting and training
85 store-level managers trained in best practices last year In-depth new manager recruiting and training
Slide 49: Local ordering of seasonal and trend merchandise
85 store-level managers trained in best practices last year In-depth new manager recruiting and training Local ordering of seasonal and trend merchandise
Slide 50: Profit-sharing to reward performance
85 store-level managers trained in best practices last year In-depth new manager recruiting and training Local ordering of seasonal and trend merchandise Profit-sharing to reward performance
Slide 51: More exciting, new and exclusive merchandise
More exciting, new and exclusive merchandise...
Slide 52: Seasonal and trend items, first-to-market products
More selling space to seasonal and trend items First-to-market on new products and services Leverage alliance and major vendor partnerships
Slide 53: Lower costs through more innovative work
Lower costs through more innovative work...
Slide 54: Energy conservation
Energy conservation
Slide 55: Satellite communication link to stores
Energy conservation Satellite communication link to stores
Slide 56: Cross-training and shared work stations
Energy conservation Satellite communication link to stores Cross-training and shared work stations
Slide 57: Non-selling activities removed from store
Energy conservation Satellite communication link to stores Cross-training and shared work stations Non-selling activities removed from store
Slide 58: Giant Tiger Store Venture
Slide 59: 3
3
Slide 60: 4
4
Slide 61: 5
5
Slide 62: 4
4 7
Slide 63: Wholesaling is our third exciting growth strategy
Wholesaling is our third exciting growth strategy...
Slide 64: Frontier Expeditors and Crescent Multi Foods
Frontier Expeditors and Crescent Multi Foods
Slide 65: Focus on independent grocery/general stores
Frontier Expeditors and Crescent Multi Foods Focus on independent grocery/general stores
Slide 66: Compete through service and independence
Frontier Expeditors and Crescent Multi Foods Focus on independent grocery/general stores Compete through service and independence
Slide 67: Your Everyday Store
Your Everyday Store
Slide 68: Trading Profit / RONA
TRADING PROFIT (US $ in thousands) / RONA (%) 13.1 Trading Profit $10.0 14.0% 11.6 $9.0 RONA (%) 12.0% $8.0 8.8 8.9 8.5 10.0% *excludes gain from $7.0 insurance proceeds 8.0% 5.6 $6.0 6.0% $5.0 2.7 4.0% $4.0 0.3 2.0% $3.0 $2.0 0.1 0.0% 0.4 $1.0 -2.0% -2.9 1.4 1.6 2.6 4.2 6.0 6.3 6.6 8.4 9.5 $0.0 -4.
Slide 69: Jerry Bittner
NORTH WEST COMPANY FUND Jerry Bittner
Slide 70: North West Company Fund
NORTH WEST COMPANY FUND
North West Company Fund — Shareholder Meeting (June 2004) on 6ix