Empire Co Ltd Class A · TSX:EMP.A
Empire Co Ltd Class A — CIBC Retail & Consumer Conference 2016
11 slides from Empire Co Ltd Class A's conference presentation, Mar 30, 2016
Slide 1: CIBC Retail & Consumer Conference
CIBC Retail & Consumer Conference March 30, 2016 1
Slide 2: Forward-Looking Information
Forward-Looking Information This document contains forward‐looking statements which are presented for the purpose of assisting the reader to contextualize the Company’s financial position and understand management’s expectations regarding the Company’s strategic priorities, objectives and plans. The
Slide 3: Empire at a Glance
Empire at a Glance Sales ($ in billions) $24.1B Adjusted Net Earnings from Continuing Operations ($ in millions) $459.5M Fiscal Book B k Value V l ($ per share) 2006 $13.1B $ $16 98 $16.98 $202.0M Last $9.92 12-months 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM No. 2 GROWTH PHARMACY WHOLES
Slide 4: Q3/F16: Integration & Operational Challenges Amplified by Economy
Q3/F16: Integration & Operational Challenges g Amplified p by y Economy y • Sales increased 1.5% y/y to $6.03 B. • SSS excluding fuel of 00.6% 6% (SSS excluding West retail business of 2.7%). • Safeway traffic impacted by lingering impact of H1 F2016 issues and western economic challenges. • Adjuste
Slide 5: Fix Initiatives to Date
Fix Initiatives to Date • Private Label: Stabilized unfavorable Safeway private label sales trend and seeing improvement in Compliments acceptance. • Western Canada Produce: Produce Quality and service level back to normal. • Safeway Meat Program: Introduced our new meat program in Safeway stores le
Slide 6: Three Pronged Plan to Restore Sales and Margins Out West
Three Pronged Plan to Restore Sales and Margins g Out West 1. Price Perception: Address the structural changes in customer behavior with innovative, sustainable pricing strategies. • First: Launch of the affordable produce and meat campaign (launched in Western Canada on January 29, 2016). • Then: R
Slide 7: Store Renewals
2. Store Renewals • Continued rollout of our new concept stores. Currently have 24 new concept stores. • Accelerate capital investment across our Western Canada business in the coming quarters. • Allocate significant capital in renovating stores within markets where we can deliver a differentiated e
Slide 8: New Concept Stores
New Concept Stores • 24 new Sobeys, Sobeys extra, IGA extra, and Sobeys Urban Fresh concept stores and counting. • 8 stores under construction/renovation for calendar 2016. 1 3 2 3 2 13 8
Slide 9: Drive Efficiencies
3. Drive Efficiencies • Remain focused on driving efficiencies in our distribution and logistics network in the West and across the country: • Closing Butler retail support centre near Victoria in fiscal 2017 and ending a service contract with another facility in the lower mainland i l dBB.C. C • Ex
Slide 10: Why Invest in Empire?
Why Invest in Empire? • Long term growth with the Canada Safeway acquisition • Commitment to Better Food for All • Diversified sales, earnings and growth opportunities across Canada • Undervalue compare to competitors • Modern and scalable infrastructure 10
Slide 11: Thank you
EMPIRE Thank you COMPANY LIMITED
Empire Company — CIBC Retail & Consumer Conference 2016 on 6ix