Topics: Revenue, Income statement, Free cash flow Pages: 27 (2570 words) Published: April 17, 2013
Loblaw Investor Day
February 28, 2012


Forward looking statements
This Investor Day presentation for Loblaw Companies Limited contains forward-looking statements about the Company’s objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects and opportunities. These forward-looking statements are typically identified by words such as “anticipate”, “expect”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions, as they relate to the Company and its management. In this presentation, forward looking statements include the Company’s expectation that: • its capital expenditures in 2012 will be approximately $1.1 billion; • costs associated with the transition of certain Ontario conventional stores under collective agreements ratified in 2010 will range from $30 million to $40 million; • incremental costs related to investments in IT and supply chain in 2012 will be approximately $70 million; • incremental costs associated with strengthening its customer proposition will be approximately $40 million; and • full-year 2012 net earnings per share to be down year-over-year, with more pressure in the first half of the year, as a result of the Company’s expectation that operations will not cover the incremental costs related to the investments in IT and supply chain and its customer proposition. These forward-looking statements are not historical facts but reflect the Company’s current expectations concerning future results and events. They also reflect management’s current assumptions regarding the risks and uncertainties referred to below and their respective impact on the Company. In addition, the Company’s expectation with regard to its net earnings in 2012 is based in part on the assumptions that tax rates will be similar to those in 2011, the Company achieves its plan to increase net retail square footage by 1% and there are no unexpected adverse events or costs related to the Company’s investments in IT and supply chain. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including, but not limited to: • failure to realize revenue growth, anticipated cost savings or operating efficiencies from the Company’s major initiatives, including investments in the Company’s IT systems, including the Company’s IT systems implementation, or unanticipated results from these initiatives; • the inability of the Company’s IT infrastructure to support the requirements of the Company’s business; • heightened competition, whether from current competitors or new entrants to the market place; • changes in economic conditions including the rate of inflation or deflation, changes in interest and currency exchange rates and derivative and commodity prices; • public health events including those related to food safety; • failure to achieve desired results in labour negotiations, including the terms of future collective bargaining agreements, which could lead to work stoppages; • the inability of the Company to manage inventory to minimize the impact of obsolete or excess inventory and to control shrink; • failure by the Company to maintain appropriate records to support its compliance with accounting, tax or legal rules, regulations and policies; • failure of the Company’s franchise stores to perform as expected; reliance on the performance and retention of third-party service providers including those associated with the Company’s supply chain and apparel business; • supply and quality control issues with vendors; changes to or failure to comply with laws and regulations affecting the Company and its business, including changes to the regulation of generic prescription drug prices and the reduction of reimbursement under public drug benefit plans and the elimination or...
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