Caution Concerning Forw ard Looking Statem ents Certain information - - PowerPoint PPT Presentation

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”.

Caution Concerning Forw ard Looking Statem ents

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,

% of stores > 2hr drive from Wal-Mart

(Giant Tiger > 3km drive)

Expertise in serving “hard to reach” custom ers,

60 92 94 96 0% 20% 40% 60% 80% 100%

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 Population Forecast 10 year Annual Growth 2010F-2020F (%)

.70 1.28

0.0 0.5 1.0 1.5

Canada Giant Tiger Northern Canada Markets

.80

NWC International Markets Population Forecast 10 year Annual Growth 2010F-2020F (%)

.96 1.23

0.0 0.5 1.0 1.5

USA NW C I nternational Markets

Sales Blend W ith a focus on everyday needs,

Food - Grocery Food - Convenience Non Food Grocery & Basics Other General Merchandise Financial Services, Fuel & Pharmacy 45% 23% 15% 13%

4%

Market Draw

(4 week period)

Has created an exceptional “com m unity store” position,

79 91 92 93 0% 20% 40% 60% 80% 100%

Cost-U-Less Northern NorthMart AC Value

Frequency

(4 week period)

Has created an exceptional “com m unity store” position,

10.8 9.1 2.9 4.2 7.4 7.4 2 4 6 8 10 12

Cost-U-Less Wal-Mart NorthMart Giant Tiger Northern AC Value

Led by people w ith a track record of value creation,

Average senior management tenure = 13.0 years Store managers are intrapreneurs Passionate about community retailing Incented to sustain and grow the business

People Strength

Ten Year EBITDA Performance Led by people w ith a track record of value creation,

72,271 70,535 63,886 59,956 72,826 76,606 85,502 96,369 106,557 122,257 130,274

30,000 60,000 90,000 120,000 150,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

8.1% CAGR

Ten Year RONA & ROE (%) Performance Led by people w ith a track record of value creation,

ROE RONA

16.2 18.0 21.7 24.9 14.8 16.6 19.7 19.8 18.7 29.3 28.6 16.8 15.2 14.9 15.8 16.0 21.0 12.7 11.6 11.5 13.4 14.1

10 15 20 25 30 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Relative Unit Performance

(% at January 31)

Led by people w ith a track record of value creation,

NWF.UN TSX Composite Retailing Group

114 124 138 120 85 137 104 148 153 132 245 180 130 215 204 100

50 100 150 200 250 300 2005 2006 2007 2008 2009 2010

W ith attractive opportunities “in store”

Close perishable profitability gap

Fix Perishables

• 1.4%

4.2% 18.2% 14.8% 8.9% 6.7%

• 5%

0% 5% 10% 15% 20%

Contribution Margin by Food Category

Produce Fresh Meat Frozen Chilled Food Service Shelf Stable

W ith attractive opportunities “in store”

Close perishable profitability gap Build store stability

10 26 37 27

0-1 yrs 1-2 yrs 2-3 yrs 3+ yrs

I ncrease Store Managem ent Stability Tenure in Location

W ith attractive opportunities “in store”

Close perishable profitability gap Build store stability Raise in-stock performance Invest in supply chain Fix execution gaps