A Strong Year in a Turbulent Economy Solid growth in both revenue - - PowerPoint PPT Presentation

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A Strong Year in a Turbulent Economy Solid growth in both revenue - - PowerPoint PPT Presentation

Feb 28, 2023 171 likes •552 views

A Strong Year in a Turbulent Economy Solid growth in both revenue and pre-tax earnings Kids business on fire Five new Indigo superstores opened A busy year on the technology front Launch of Pistachio and Shortcovers Notable Achievements

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A Strong Year…

Solid growth in both revenue and pre-tax earnings Kids business on fire Five new Indigo superstores opened A busy year on the technology front Launch of Pistachio and Shortcovers

in a Turbulent Economy

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Notable Achievements

#1 National Retailer in Canada (Kubas

Consultants)

Retail Council of Canada award for Social Responsibility “Best-in-class” employee engagement in annual Hewitt survey

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Canadian Dollar

0.75 0.80 0.85 0.90 0.95 1.00 1.05 1.10 1.15 1-Apr-07 1-Apr-08 1-Apr-09

FISCAL 2008 FISCAL 2009 FISCAL 2010

Supply Chain challenged by rapidly shifting dollar

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700 750 800 850 900 950 FY 05 FY 06 FY 07 FY 08 FY 09

Net Revenue

Barnes & Noble (7.2%) Borders (9.9%)

Industry-leading same store sales growth

950 900 850 800 750 700

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10 20 30 40 50 60 70 80 FY 05 FY 06 FY 07 FY 08 FY 09

EBITDA

EBITDA down slightly

Foreign exchange impact Investment in strategic initiatives

80 70 60 50 40 30 20 10

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10 20 30 40 50 60 FY 05 FY 06 FY 07 FY 08 FY 09

Net Earnings

Net earnings down due to accounting tax expense

60 50 40 30 20 10

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  • 90
  • 70
  • 50
  • 30
  • 10
10 30 50 70 90 FY 05 FY 06 FY 07 FY 08 FY 09

Net Cash Position

Strong year-end cash position with minimal debt

90 70 50 30 10

  • 10
  • 30
  • 50
  • 70
  • 90
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  • 50%
0% 50% 100% 150% 200% 250% 300%

Indigo Share Price

Strong 5-year performance relative to the market

2004 2006 2007

TSX

2008 2009 2005

!ndigo

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Financial Summary

Solid balance sheet Industry leading performance No shortage of ideas!!

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FISCAL 2010 & BEYOND

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The Challenges We Face

The Economy The Dollar Digitization

Fi Fisc scal al 201 2010 & 0 & Bey Beyon

  • nd
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Our Strategic Focus

Re-imagine the Indigo/Chapters Experience Simplify Core Processes Achieve Best-In-Class Employee Engagement Refine & Grow Pistachio Concept Launch & Grow Shortcovers Digital Offering

Fi Fisc scal al 201 2010 & 0 & Bey Beyon

  • nd
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New Superstores

5 opened, 6 more on the way Award-winning design A bookstore first, but features our expanded Lifestyle, Kids and Toy sections

Re-Imagine

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New Superstores

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Kids and Toys

A destination for the family Included in all new superstores Incorporated into existing store renovation plans Goal – largest specialty toy seller in Canada

Re-Imagine

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Kids and Toys

Re-Imagine

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Kids and Toys

Re-Imagine

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Kids and Toys

Re-Imagine

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Kids and Toys

Re-Imagine

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Lifestyle

Further expanded gift and paper offerings including proprietary product Includes selected eco-products from our Pistachio line

Re-Imagine

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Lifestyle

Re-Imagine

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Lifestyle

Re-Imagine

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New Kiosks

A hit with our staff and customers New „iPhone-like‟ touch screen Improved in-store search and find Real-time information on hot books and topics in the media Simplified purchase with slide card

Re-Imagine

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Indigogreen

Becoming more environmentally responsible… Leading the industry to increasing amounts of recycled paper Improving our packaging Auditing our store practices and carbon footprint

Re-Imagine

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Focus on the Customer

Constant drive to improve our in-store and

  • nline experience

Completed major upgrades to our customer database in fiscal 2009 Launching more customized & relevant recommendations for customers in fiscal 2010 Planning exciting changes to our irewards loyalty program for fiscal 2011

Re-Imagine

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And more ideas being explored…

Personal Photo Arts & Crafts Teen Scream Pass it On

Re-Imagine

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Supply Chain

Major upgrades planned for our distribution centre:

  • Improve service to our retail stores and online

customers

  • Lower unit processing cost
  • Increase capacity to handle both book and

lifestyle products

Simplify Core Processes

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Best-In-Class!

Ongoing initiative to achieve and maintain world-class levels of employee engagement Reached “best-in-class” status for our Head Office and Distribution Centre teams!

Employee Engagement

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Refine and Grow Pistachio

Good for you, good for the planet Environmentally friendly selection of paper, gift and apothecary products for everyday use Two test stores open; learnings will be applied to new stores once the market improves Product carried in Indigo/Chapters stores and Barnes & Noble Launching eco-friendly back-to-school program Winner of The 2009 Mohawk Windpower Partnership Award

Pistachio

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Launched Shortcovers, global digital reading service Fully device-agnostic e-reader Available on Blackberry, Apple, Android and the new Palm-Pre Target – worldwide leader for emerging broad range of 3G devices

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Giving Back

$7.5 million committed to date to more than 60 schools across Canada It makes a real and measurable difference… We are beginning to influence provincial funding

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