Caution Concerning Forw ard Looking Statem ents Certain information presented today may constitute forward-looking statements. Such statements reflect the Fund’s current expectations, estimates, projections, and assumptions. These forward-looking statements are not guarantees of future performance and are subject to certain risks which could cause actual performance and financial results in the future to vary materially from those contemplated in the forward-looking statements. For additional information on these risks, please see the Fund’s Annual Information Form under the heading, “Risk Factors”.
W hy North W est? Our expertise in serving “hard to reach” customers; in markets with attractive demographics; with a focus on everyday needs; has created an exceptional “community store” position; led by people with a track record of value creation; and with attractive opportunities “in store”.
Expertise in serving “hard to reach” custom ers,
Expertise in serving “hard to reach” custom ers, % of stores > 2hr drive from Wal-Mart (Giant Tiger > 3km drive) 100% 96 94 92 80% 60 60% 40% 20% 0% Giant Tiger Cost-U-Less AC Value NCR
Expertise in serving “hard to reach” custom ers,
I n m arkets w ith attractive dem ographics, NWC Canadian Markets NWC International Markets Population Forecast Population Forecast 10 year Annual Growth 2010F-2020F (%) 10 year Annual Growth 2010F-2020F (%) 1.5 1.5 1.28 1.23 1.0 1.0 .96 .80 .70 0.5 0.5 0.0 0.0 Canada Giant Tiger Northern USA NW C Canada I nternational Markets Markets
W ith a focus on everyday needs, Sales Blend 4% Food - Grocery 13% Food - Convenience 15% Non Food Grocery & Basics 45% Other General Merchandise Financial Services, Fuel & 23% Pharmacy
Has created an exceptional “com m unity store” position, Market Draw (4 week period) 100% 93 92 91 79 80% 60% 40% 20% 0% Cost-U-Less Northern NorthMart AC Value
Has created an exceptional “com m unity store” position, Frequency (4 week period) 12 10.8 10 9.1 8 7.4 7.4 6 4.2 4 2.9 2 0 Cost-U-Less Wal-Mart NorthMart Giant Tiger Northern AC Value
Led by people w ith a track record of value creation, People Strength Average senior management tenure = 13.0 years Store managers are intrapreneurs Passionate about community retailing Incented to sustain and grow the business
Led by people w ith a track record of value creation, Ten Year EBITDA Performance 8.1% 150,000 CAGR 130,274 120,000 122,257 106,557 96,369 90,000 85,502 76,606 72,826 72,271 70,535 60,000 63,886 59,956 30,000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Led by people w ith a track record of value creation, Ten Year RONA & ROE (%) Performance 29.3 30 28.6 24.9 25 21.7 20 18.0 21.0 16.8 19.7 19.8 16.2 16.0 18.7 14.9 15.8 15.2 15 16.6 14.8 14.1 13.4 12.7 11.5 11.6 10 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 RONA ROE
Led by people w ith a track record of value creation, Relative Unit Performance (% at January 31) 300 250 245 215 204 200 180 150 130 148 153 137 132 138 100 104 124 120 100 114 85 50 2005 2006 2007 2008 2009 2010 NWF.UN Retailing Group TSX Composite
W ith attractive opportunities “in store” Close perishable profitability gap
Fix Perishables Contribution Margin by Food Category 20% 18.2% 14.8% 15% 8.9% 10% 6.7% 4.2% 5% 0% -1.4% -5% Produce Frozen Shelf Fresh Chilled Food Stable Meat Service
W ith attractive opportunities “in store” Close perishable profitability gap Build store stability
I ncrease Store Managem ent Stability Tenure in Location 27 0-1 yrs 37 1-2 yrs 2-3 yrs 10 3+ yrs 26
W ith attractive opportunities “in store” Close perishable profitability gap Build store stability Raise in-stock performance Invest in supply chain Fix execution gaps
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