Empire Co Ltd Class A · TSX:EMP.A
Empire Co Ltd Class A — CIBC World Markets Retail & Consumer Conference 2014
23 slides from Empire Co Ltd Class A's conference presentation, Mar 26, 2014
Slide 1: CIBC World Markets Retail & Consumer Conference
CIBC World Markets Retail & Consumer Conference March 26 26, 2014
Slide 2: Forward-Looking Information
Forward-Looking Information This discussion contains forward-looking statements which reflect management’s expectations regarding the Company’s objectives, plans, goals, strategies, future growth, financial condition, results of operations, cash flows, performance, business prospects and opportuniti
Slide 3: Focused on Food Retailing & Related Real Estate
Focused on Food Retailing & Related Real Estate Trailing Other Other 4-Quarter $69M or 33% $10M or 3% Adjusted Net Up 30 ppts Earnings g Q1 Focus & Growth in our Q3 C Core B Businesses: i F2014 F2008 Food Retailing & Related Other Real Estate $833M or 15% Other $348 M or 3% Assets Up 12 ppts
Slide 4: Solid Track Record of Growth
Solid Track Record of Growth 5 Years Ago Today CAGR Sales $14.1 Billion $19.4 Billion 5.7% Adjusted Net Earnings $242.8 Million $338.8 Million 6.0% 13 Weeks Ended February 1, 2014 39 Weeks Ended February 1, 2014 $6.02 B sales, +40.4% $15.06 B sales, +14.5% • Excluding Canada Safeway +2.7% • Excludin
Slide 5: Recent Achievements
Recent Achievements ‣ Acquisition of Canada Safeway ‣ Early progress on integration/synergies ‣ Focused on food and related real estate ‣ Divestiture of non-core assets ‣ Successful SAP implementation in Québec & Thrifty Foods ‣ New automated distribution centre in Québec ‣ Completion p of the conve
Slide 6: Key Strategic Priorities
Key Strategic Priorities ‣ Successful integration of Canada Safeway ‣ Better Food For All … A compelling full service brand & shopping experience ‣ Securing S i efficiencies ffi i i th through h process h harmonization i ti andd optimized distribution ‣ Continued intelligent investment & innovation
Slide 7: A New Platform for Growth
A New Platform for Growth ‣ Closed Canada Safeway acquisition in November, adding over 200 Safeway stores – created a leading position in Western Canada ‣ Pro P forma f sales l off $24.3 $24 3 billion, billi + 38% ‣ Significant synergies of $200 million ‣ Great real-estate in the fastest growing mar
Slide 8: A Strong National Presence
A Strong National Presence 1,500 837 124,000 stores communities colleagues Atlantic Canada 424 stores ébec Québec Qu Western Canada 63 stores 635 430 stores Ontario 335 stores
Slide 9: Sobeys Banners Overview
Sobeys Banners Overview Full Service 288 stores 120 IGA extra 213 stores 29 stores 808 stores West: 108 Markets Served: Market Served: 158 IGA Ontario: 95 Market Served: Ontario & Western British Columbia Atlantic: 85 Québec Canada Communityy Service 205 stores 27 stores 90 stores 32 sto
Slide 10: Sobeys Banners Overview
Sobeys Banners Overview Convenience Service 121 stores 29 locations 64 locations 241 locations 455 stores and Market Served: Market Served: Market Served: Québec: 194 locations Atlantic Canada Atlantic Canada Western Canada Atlantic: 47 Other 528 locations 20 stores 78 stores 178 locations 2
Slide 11: Post-Deal Close – Key Highlights
Post-Deal Close – Key Highlights Since deal close: ‣ We have moved forward on the divestiture of stores ‣ We have implemented several communications activities and education on the integration process ‣ Technology roll-out will start in Q4 with the first store and RSC on the new platform ‣ Assessmen
Slide 12: Systems Integration
Systems Integration ‣ First priority is to achieve systems integration within 18 months of acquisition ‣ Involves implementation of systems in: ‣ Stores ‣ Warehouse ‣ Merchandising ‣ Finance ‣ Human Resources ‣ Enables Synergy Management
Slide 13: Synergy Management
Synergy Management We continue to progress towards delivering $200M in synergies by Year 3 with an established run rate of $100M at the end of Year 1 Function Procurement Majority of these synergies are contributing to Marketing the $100M run rate at the end of Year 1 Pharmacy L i ti & Di Logistics
Slide 14: Synergy Opportunities
Synergy Opportunities Synergy opportunities have been identified and we are progressing on the realization of synergy benefits Function Primary Synergy Opportunities ‣ New deal with our supplier base Procurement ‣ SKU rationalization ‣ Maintenance/operational cost efficiencies ‣ Leveraging existing
Slide 15: Empire Company Limited
EMPIRE COMPANY LIMITED
Slide 16: Champions of the Affordable Better Food Movement
Canada’s Better Food Destination Champions of the Affordable Better Food Movement
Slide 17: Full Service Format Target Customers
Full Service Format Target g Customers FRESH FOOD FRESH & PACKAGED ENTHUSIAST SAVVY MEAL LOVER Priority: Healthy living, fresh Priority: Healthy living, fresh Priority: Groceries food food Want quality, quality and enjoy Want quality, and enjoy Want value and discovering new foods and di
Slide 18: We're the Better Food Destination for Canadians to:
We’re the Better Food Destination for Canadians to: ‣ Enjoy great quality FRESH FOOD and flavours. ‣ SAVE TIME while eating g well every y day. y ‣ Make the best choices to enjoy a HEALTHY LIFE. ‣ Choose foods that support our SUSTAINABLE PLANET. ‣ Eat well within an AFFORDABLE BUDGET. ‣ Know that e
Slide 19: Our Brand Expression
Our Brand Expression POSITIONING: Ch Champions i off th the Aff Affordable d bl BBetter tt F Food dMMovementt TAGLINE: PARTNERSHIP: Why Jamie Oliver: How do Canadians feel: Leading celebrity chef, Highest awareness across Canada restaurateur, best-selling author and #1 chef in likeability and ‘b
Slide 20: Our Principles of the Offer
Our Principles of the Offer Enthused Selling Priced Right Local Store Environment for the Full Shop Focus Freshness Meaningful First Assortment
Slide 21: Strategic Pillars Guiding the Offer
Strategic g Pillars Guiding g the Offer WOW FRESH SPEED HEALTHY SUSTAINABLE SCRATCH WHOLESOME Market- Fresh “Restaurant” q quality y Nutrition Responsible p Experience prepared products Special Needs product sourcing Enhanced Meal Solutions (gluten free, sugar Fair trade products Pac
Slide 22: Why invest in Empire?
Why invest in Empire? ‣ New platform for growth with Canada Safeway acquisition ‣ Focus on Food and related Real- Estate ‣ Diversified Di ifi d revenue, earnings i and d growth opportunities across Canada ‣ A track record of delivering earnings and dividend growth ‣ Commitment to Better Food for All
Slide 23: CIBC World Markets Retail & Consumer Conference
CIBC World Markets Retail & Consumer Conference March 26 26, 2014
Empire Company — CIBC World Markets Retail & Consumer Conference 2014 on 6ix