2008 I nvestor Meeting 2008 I nvestor Meeting February 19, 2008 - PowerPoint PPT Presentation

2008 I nvestor Meeting 2008 I nvestor Meeting February 19, 2008

Forward- -Looking Statements Looking Statements Forward This publication for Loblaw These forward-looking statements are Company to indentify obsolete or Companies Limited and its subject to a number of risks and excess inventory and to control shrink; subsidiaries (collectively, the uncertainties that could cause actual failure to execute successfully and in a “Company” or “Loblaw”) contains results or events to differ materially timely manner the Company’s major forward-looking statements about from current expectations. These risks initiatives, including the the Company’s objectives, plans, and uncertainties include, but are not implementation of strategies and goals, aspirations, strategies, limited to: changes in economic introduction of innovative products; financial condition, results of conditions; changes in consumer unanticipated costs associated with operations, cash flows, spending and preferences, heightened the Company’s strategic initiatives, performance, prospects and competition, whether from new including those related to opportunities. These forward competitors or current competitors; compensation costs; the ability of the looking statements include changes in the Company’s or its Company’s supply chain to service the preliminary unaudited financial competitors’ pricing strategies; failure needs of the Company’s stores; highlights for its fiscal year 2007. of the Company’s franchised stores to deterioration in the Company’s Words such as “anticipate”, perform as expected; risks associated relationship with its employees, “expect”, “believe”, “could”, with the terms and conditions of particularly through periods of change “estimate”, “goal”, “intend”, financing programs offered to the in the Company’s business; failure to “plan”, “seek”, “strive”, “will”, Company’s franchisees; failure to achieve desired results in labour “may” and “should” and similar realize anticipated cost savings and negotiations, including the terms of expressions, as they relate to the operating efficiencies from the future collective bargaining Company and its management, Company’s major initiatives, including agreements; changes to the regulatory are intended to identify forward- investments in the Company’s environment in which the Company looking statements. These information technology systems, operates; the adoption of new forward-looking statements are supply chain investments and other accounting standards and changes in not historical facts but reflect the cost reduction and simplification the Company’s use of accounting Company’s current expectations initiatives; the ability of the Company’s estimates including in relation to concerning future results and information technology infrastructure inventory valuation; fluctuations in the events. to support the requirements of the Company’s earnings due to changes in Company’s business; the ability of the the value of equity forward contracts 2

Forward- -Looking Statements (continued) Looking Statements (continued) Forward relating to its common shares; In addition to these risks and Readers are cautioned not to place changes in the Company’s tax uncertainties, the material undue reliance on these forward- liabilities resulting from changes in tax assumptions used in making the looking statements, which reflect the laws or future assessments; forward-looking statements contained Company’s expectations only as of the detrimental reliance on the in this publication, include: there is no date of this publication. The Company performance of third-party service material change in economic disclaims any intention or obligation to providers; public health events; the conditions from those of 2007; update or revise these forward-looking ability of the Company to obtain patterns of consumer spending and statements, whether as a result of external financing; the ability of the preferences are reasonably consistent new information, future events or Company to attract and retain key with historical trends; there is no otherwise, except as required by law. executives; and supply and quality significant change in competitive control issues with vendors. These and conditions, whether related to new other risks and uncertainties are competitors or current competitors; discussed in the Company’s materials there is no unexpected change in the filed with the Canadian securities Company’s or its competitors’ current regulatory authorities from time to pricing strategies; the Company’s time, including the Risks and Risk franchised stores perform as Management section of the MD&A expected; anticipated cost savings and included in the Company’s 2006 operating efficiencies are achieved, Annual Report. Other risks and including those from the Company’s uncertainties not presently known to cost reduction and simplification the Company or that the Company initiatives; and there are no significant presently believes are not material regulatory, tax or accounting changes could also cause actual results or or other significant events occurring events to differ materially from those outside the ordinary course of expressed in its forward-looking business. statements. 3

Non- -GAAP Financial Measures GAAP Financial Measures Non The Company reports its Sales and Sales Growth Excluding Adjusted Operating I ncome and financial results in accordance the I mpact of Tobacco Sales and Margin The table on page 4 of the with Canadian GAAP. VI Es These financial measures exclude Company’s Fourth Quarter 2007 News However, the Company has the impact on sales from the decrease in Release reconciles operating income included certain non-GAAP tobacco sales and from the consolidation and adjusted operating income to financial measures and ratios by the Company of certain independent Canadian GAAP net earnings measures which it believes provide franchisees. Tobacco sales continued to based on management’s review of useful information to both decrease through the end of third quarter preliminary unaudited results for the management and readers of 2007 as a result of a major tobacco twelve and fifty-two week periods this News Release in supplier shipping directly to certain ended December 29, 2007 and measuring the financial customers of the Company’s cash & carry December 30, 2006. Items listed in the performance and financial and wholesale club network commencing reconciliation are excluded because condition of the Company for in the third quarter of 2006. These the Company believes this allows for a the reasons set out below. impacts on sales are excluded because more effective analysis of the These measures do not have a the Company believes this allows for a operating performance of the standardized meaning more effective analysis of the operating Company. In addition, the excluded prescribed by Canadian GAAP performance of the Company. A items affect the comparability of the and, therefore, may not be reconciliation of the financial measures to financial results and could potentially comparable to similarly titled the Canadian GAAP financial measures is distort the analysis of trends. The measures presented by other included in the table “Total Sales and exclusion of these items does not publicly traded companies. Sales Excluding the Impact of Tobacco imply they are non-recurring. Adjusted They should not be construed Sales and VIEs” on page 2 of the operating income and margin are as an alternative to other Company’s Fourth Quarter 2007 News useful to management in assessing financial measures determined Release. Same-store sales growth and the Company’s performance and in in accordance with Canadian same-store sales growth excluding the making decisions regarding the GAAP. impact of decreased tobacco sales is ongoing operations of its business. included in the table “Sales Growth and Same-Store Sales Growth” on page 3 of the same news release. 4