Delivering on our promise
The North West Company Inc. 2011 Summary Annual Report
Committed to More Growth in Store
Two years ago, The North West Company embarked
on a long-term strategy to generate More Growth in
Store, a focus built on the simple goal of becoming
a retailer who consistently delivers higher-standards
for the benefit of all of our stakeholders, beginning
with our customers. Today, we’re delivering on that
promise by diligently working to improve processes
and capabilities across our enterprise.
Vision & Mission
Store network
Banners
Investment strength
2011 financial highlights
President & CEO message
25th Anniversary
Product optimization
In-stock performance
Store stability
Supply chain
Our community promise
Chairman’s message
Board members
Executive information
1
2
3
4
5
6
9
11
12
14
18
20
22
23
24
True to our purpose
The North West Company is a leading retailer of food and other essential everyday
products and services to remote communities and urban neighbourhoods across
Canada, Alaska, the South Pacific and the Caribbean. Our commitment to remaining
foremost in these markets is reflected in our vision and mission.
vision
To create the ability and desire for customers to
shop locally with us for the widest possible range
of products and services that meet their needs.
mission
To be a trusted community store of choice.
The North West Company Inc. 2011 Summary Annual Report 1
Reaching “hard-to-reach” customers
We serve some of the most geographically-diverse
communities in the world, from the Arctic to the
South Pacific.
Northern
123 Stores
NorthMart
7 Stores
Quickstop
15 Stores
Giant Tiger
36 Stores
AC Value Center
30 Stores
Cost-U-Less
12 Stores
Other Formats1
6 Stores
$49
Other
$178
AC Value
Center
South
Pacific
Ocean
$257
Cost-U-Less
$595
Northern
$304
Giant Tiger
$112
NorthMart
2 The North West Company Inc. 2011 Summary Annual Report
Our urban, rural and remote markets span the Northwest
Territories, Nunavut and Alaska, across Canada’s western
and central provinces, down to Hawaii, Fiji, Guam, American
Samoa and 8,500 miles east into the Caribbean Islands.
2011 Sales by Banner
($ in millions)
1
Includes Valu Lots, Solo Market, Fur Marketing, NorthMart Pharmacy and Island Fresh
Our Banners
In addition to fresh food, quality
groceries and everyday merchandise,
many communities depend on
The North West Company for vital services.
Many of our stores provide far more than day-to-day
essentials. Customers also rely on us for necessities like
banking, petroleum, postal outlets, tax returns, even
mobile phones and airtime. We are truly one-stop-shops
in many corners of the world.
northern
stores, offering a combination of
food, financial services and general
merchandise to remote northern
Canadian communities.
northmart
stores targeted at larger northern
markets with an emphasis on an
expanded selection of fresh foods,
fashion and health products in
western Canada.
quickstop
convenience stores offering ready-
to-eat foods, petroleum products
and related services.
giant tiger
junior discount stores, offering
family fashion, household
products and food to urban
neighbourhoods and larger rural
centres in western Canada.
“I like the fact that NorthMart
has ATMs in the store which I rely
upon from time to time, as well as
financial services. I also like the fact
that NorthMart has an in-house
pharmacy that I trust.”
Brenda Beacham, Cross Lake
NorthMart customer
ac value center
stores similar to Northern and
NorthMart, offering a combination
of food and general merchandise
to communities across remote and
rural regions of Alaska.
cost-u-less
mid-sized warehouse stores,
offering discount food and general
merchandise products to island
communities in the South Pacific
and the Caribbean.
island fresh
neighbourhood store offering
convenience with an emphasis
on fresh and prepared foods.
$1.495
Billion in sales
229
Locations
6,901
Employees
The North West Company Inc. 2011 Summary Annual Report 3
A solid investment
85%+
community stores
90%+
customer frequency
87%
earnings stability
Community stores with big-box
urban retailers two hours or more
away from 85% of our remote banner*
stores, we are the true definition of
close and convenient.
Over 90% of households served by
our remote banners* shop with us
every month, giving credibility to our
unique community store role.
87% of our sales are food and
everyday products and services,
which lessens our susceptibility
to economic volatility and fluctuations
in discretionary spending.
6.0%
EBITDA CAGR
21%
value creation
1.5x
population growth
With strong cash flows and prudent
debt, we continue to invest for growth
while returning about 50% of cash
flow to investors every year. Trading
profit (EBITDA) increased from $70.5
million to $125.9 million over 10 years
ending January 31, 2012—a compound
annual growth rate of 6.0%.
Total returns to shareholders have
been 21% on a compound annual basis
over the past 10 years, reflecting the
Company’s focus on growth and yield.
$10,000 invested at January 31, 2002
was worth $67,119 at January 31, 2012.
Our remote markets are young
with income growth from resource
development and stability from
government funding. Population
growth is 1.5 times that of Canadian
and U.S. averages.
Twenty-five year sales history
April 4, 1987 – January 31, 2012 ($ in millions)
International Operations
Canadian Operations
1500
1000
500
0
* includes Northern, NorthMart, AC Value Center and Cost-U-Less which collectively represent 76% of total sales
1987
1992
1997
2002
2007
2011
4 The North West Company Inc. 2011 Summary Annual Report
2011 Financial highlights
CGAAP 1
All currency figures in this report are in Canadian dollars, unless otherwise noted
($ in thousands, except per share information)
Year Ended
January 31, 2012
Year Ended1
January 31, 2011
Year Ended
January 31, 2010
RESuLTS FOR ThE YEAR
Sales
Same store sales % increase 2
Trading profit 3 (EBITDA)
Earnings from operations 3 (EBIT)
Net earnings
Cash flow from operating activities
FINANCIAL POSITION
Total assets
Total debt
Total equity
FINANCIAL RATIOS
Debt-to-equity
Return on net assets 3
Return on average equity 3
Sales blend: Food
General Merchandise
Other
PER S hARE ($) ¬ DILuTED 4
Trading profit 3 (EBITDA)
Net earnings
Cash flow from operating activities
Market price : January 31
high
low
Sales1
($ in millions)
1,444
1,448
1,495
1,393
1,064
1,500
1,250
1,000
750
500
250
0
$ 1,495,136
3.3%
$ 125,881
89,309
57,961
114,658
$ 1,448,104
2.7%
$ 125,764
90,272
69,656
114,564
$ 1,444,366
0.1%
$ 130,274
95,124
81,813
107,973
$ 626,917
175,892
283,709
$ 616,588
192,596
286,475
$ 623,800
209,170
289,926
.62:1
18.5%
20.1%
76.4%
20.2%
3.4%
2.59
1.19
2.36
19.40
22.50
17.85
$
.67:1
17.9%
24.1%
76.4%
20.3%
3.3%
2.59
1.44
2.36
21.09
23.00
17.02
$
.72:1
18.7%
29.3%
77.2%
19.8%
3.0%
2.69
1.69
2.23
17.94
19.60
14.88
$
Trading Profit 1
($ in millions)
Cash Dividends/Distribution
Per Share/Unit ¬ Diluted ($)
130
122
126
126
107
150
125
100
75
50
25
0
1.42
1.40
1.39
1.13
1.05
1.50
1.25
1.00
0.75
0.50
0.25
0.00
2007 2008
2009
2010 2011
2007 2008
2009
2010 2011
2007 2008
2009
2010 2011
1 The January 31, 2011 comparative figures previously reported in accordance with Canadian generally accepted accounting principles (CGAAP) have been
restated to conform with International Financial Reporting Standards (IFRS). An explanation of the transition from CGAAP to IFRS is provided in Note 24 to
the January 31, 2012 consolidated financial statements. The financial information for the fiscal years 2007 to 2009 was prepared in accordance with
Canadian GAAP and has not been restated.
2 Same store sales, excluding the foreign exchange impact.
3 See Non-GAAP financial measures section on page 26 of the Annual Financial Report.
4 Effective January 1, 2011, North West Company Fund converted to a share corporation called the North West Company Inc. The comparative information refers to
the units of the Fund. See conversion to a share corporation on page 7 of The Annual Financial Report.
The North West Company Inc. 2011 Summary Annual Report 5
President & CEO message
We continue to engage with our customers, on a daily basis, to strengthen our position as their trusted community store of choice
“Delivering on our Promise” sums up our 2011 focus on
becoming a tighter, leaner and higher-standards retailer,
ultimately leading to More Growth in Store for tomorrow
and beyond. This is our third year on this promising path
and I’m pleased to report that we are producing results that
demonstrate we’re doing what is right for our customers
first and our business overall.
As would be expected after a second year of flat bottom
line performance, I am asked why I remain so positive
about our achievements. The answer starts with the core
business of selling food, which accounts for 76% of our
current revenue base and continues to grow. In 2011,
North West’s same-store food sales rose 3.5% and same-
store food gross profit dollars increased 6%. Like last
year, these results place us ahead of most food retailers
in North America.
major gains
This outcome is directly due to our disciplined focus on
becoming a more consistent food merchant. We have
delivered on foundation work like the major gains we’ve made
in our food in-stock rates, which improved 580 basis points
across our northern banners throughout the year. Likewise,
our fresh food profitability and market share increased, led
by a 20% rise since 2009, in produce gross profit dollars in
Northern Canada and Alaska.
In addition, we exceeded targets in two other important
building-block areas: outbound logistics costs and store
stability. Outbound logistics encompasses the time, skill
and cost to move products and services to our customers
wherever they live, which in our case means some of
the world’s most remote areas. This requires complex,
high-expense work which at the same time pose vast
opportunities for improvement.
6 The North West Company Inc. 2011 Summary Annual Report
moving ahead
By consolidating our air freight and renegotiating rates
with our key Canadian air carriers, we were able to lower
food prices in 2011, and these efforts were complemented
by a key change in the federal government’s nutritious
food subsidy program. Behind the scenes, we completed a
full assessment of our outbound network and mapped our
vision for a technology-enabled transformation of how we
will plan, move and track products in real time. This work
culminated in selecting a Transportation Management
System and laying the foundation for integration and roll
out in 2013.
We advanced our store stability progress in three
important ways. First, we recruited a record number of
new store and department manager candidates, setting
the stage for an influx of recently-trained, highly-capable
leaders assigned to stabilize 25 below-potential stores
in 2012. Second, we created clear, relevant success
profiles so that we now have practical, tailored criteria
for recruiting, retaining and developing qualified managers.
Third, we addressed an area of high priority for manager
retention by investing $7 million in staff housing upgrades
to be followed by an additional $5.0 million in 2012.
growth strides
Our complementary businesses also hit new strides in
2011. Most notably:
• the recovery of our Alaskan wholesale business
• growth in our pharmacy division, including hospital
contract services and a partnership agreement for
future health services with Manitoba Keewatinowi
Okimakanak, a regional northern Manitoba tribal council
• the debut of our first three Tim Hortons locations in
Iqaluit, Nunavut
• the addition of a second direct-to-customer food
distribution outlet located in Edmonton
• a record-setting year for volumes and revenues in
our eastern Arctic shipping venture
Amidst this important activity, we confronted external
hurdles, including fires destroying three of our Northern
stores in the past 12 months and a persistently sluggish
economy. Each challenge is being effectively managed
The North West Company Inc. 2011 Summary Annual Report 7
The next 25 years
of success
To mark The North West Company’s 25th Anniversary
as an independent enterprise, we kicked off 2012 with our
annual Wintering Partners’ Conference in February, but for
this special occasion we brought all of our store managers
together for the first time ever. 220 managers from the
Caribbean, South Pacific, Alaska and Northern and
Western Canada converged in Winnipeg for a week of
learning and sharing better practices, later described as
the “best ever” for getting dialed into our 2012 sales plans
and improvement agenda.
To cap off the week, conference attendees joined another
900 employees, retirees and friends of the Company
for an anniversary dinner and gala in Winnipeg, where
recording artist Susan Aglukark performed along with First
Nations’ dancers and a steel-drum band. Demonstrating
the career commitment that has built North West,
171 staff were also honoured for 25-52 years of tenure.
“This celebration was a tribute to the past 25 years of
success as an independent company and the over 340
preceding years of continuous service to the people of
the North and today many other parts of the world. I
assure you that the spirit and pride of the people here,
together with our nearly 7,000 fellow Nor’Westers at work
everyday in our stores making customer service their first
priority, bodes well for our future” said Edward Kennedy,
President & CEO.
The North West Company Inc. 2011 Summary Annual Report 9
“Our customers love our fresh fruit
and vegetables. We always have
a good selection in store and offer
a lot of variety on a regular basis.”
Thoma Irkootee
Produce Manager,
Northern, Rankin Inlet, Nu
10 The North West Company Inc. 2011 Summary Annual Report
“In our business, you’re either in
stock or you’re out a customer sale
The main focus in our store is to be
consistently in stock on everyday
items customers want at all times
You cannot grow your business
otherwise. On a consistent basis,
customers will make your store the
first place to shop and when you
gain customer trust that you have
what they need, everybody wins.”
Mike McNally
Branch Manager,
AC Value Center, Nome, AK
The North West Company Inc. 2011 Summary Annual Report 13
Staffing for
stability
Store Stability’s goal is to drive store execution capability through stable and proficient store
teams supported by lean retail processes. We are building the foundations to ensure we
recruit managers with the right skills and attitudes needed to excel in remote locations. We are
providing an attractive value offer aimed at motivating and rewarding employees to remain and
grow with us. The North West Company is committed to building the most capable, stable store
teams in the markets we serve and to be a trusted community store of choice.
Richard Fortier, Vice-President, Human Resources
In 2011, we pursued several initiatives to achieve long-term
stability, including reviewing our recruitment criteria,
increasing management bench strength and working
diligently at strategic employee placements to retain team
cohesion and ensure time for staff to gain thorough insight
into local markets and customer needs, while forging strong
community bonds for sustained success.
Building on our 2010 progress, we continued to re-structure
stores and add both Administration and Grocery Fresh
Managers to create breadth across our teams and free up
Store Manager time to grow the business and strengthen
customer and community relations.
store manager success
Simultaneously, we developed a Manager Success Profile
to pinpoint competencies and character traits, based on
key performance indicators specific to our business.
This will assist in recruiting highly-capable leaders and
provide a solid platform for honing existing skills.
We also reviewed employee housing standards, which
is a key, controllable retention factor, and developed a
comprehensive plan with dedicated resources to ensure
sustainable, quality housing across the North.
With these initiatives the past 12 months, we are well
on our way to store stability across our operations. While
regional business models differ, many of our strategies can
be effectively applied throughout our banners for lasting
stability and superior execution capabilities.
14 The North West Company Inc. 2011 Summary Annual Report
“Customer service is where the
job begins, it’s what drives the
business. I like having the ability to
provide a service to the community,
while building friendships with
our customers.”
Salu Bodine
Department Manager,
AC Value Center, Nome, AK
The North West Company Inc. 2011 Summary Annual Report 15
Creating tomorrow’s leaders
Today more than ever this program is proof that our core
principles are embedded in every corporate facet of our
business, each employee action and all customer touchpoints.
leadership@north west
By January 31, 2012, over 50 North West senior managers
have completed training and attended working trips to
various stores to gain in-depth insight into local markets,
cultural differences, customer needs and what it means to
live and work in that community.
Bi-annual forums are also part of the program, enabling leaders
to gather to discuss common platforms and new practices.
Added last year was an inaugural Ideas Summit where
our Canadian and International senior leaders met to share
process, systems, enterprising ideas, and experiences gleaned
from store working trips, and learn about unique challenges
and opportunities in each of our markets and banners.
managing@north west
In the third year of this practical, blended learning
program an additional 200 managers were trained to
manage everyday scenarios and challenges, as well as
apply new business tools and processes to improve
market-specific strategies and results.
Originally designed for support office managers, a
condensed version of Leadership @ North West was
launched as Managing @ North West and rolled out in
2009. In 2011 the program reached over 200 managers
in warehouse, operations, technical and store support
functions across our operations. In 2012 Managing @
North West graduates will be able to take advantage of
further training through peer-to-peer mentoring, Manager
Forums and lunch and learns.
In 2012, we plan to cascade a refined Managing @North West
program to an additional 225 supervisory and entry-level
employees across the organization.
16 The North West Company Inc. 2011 Summary Annual Report
Craig Gilpin, Executive Vice-President & Chief Corporate Officer
Ideas Summit, January 2011
“NWC does a great job of training
managers and helping us grow.
The leadership program covers
everything from Managing Change
to Motivating Employees to
Superior Customer Service. We
learn to apply our core principles
consistently, whether in Northern
Canada or the South Pacific.”
Guy Strickland (left)
Store Manager,
Cost-u-Less, Grand Cayman
The North West Company Inc. 2011 Summary Annual Report 17
Superior connections
Outside experts say that North West operates the most complex supply chain they’ve ever seen,
not only due to distance and destinations, but also the multiple modes of transport—road, ice
road, rail, air, water—plus local handling that can add up to a half dozen hand-off points for some
stores. For us, that says opportunity for improvement. Mike Sorobey, Vice-President Logistics & Supply Chain Services
The logistics of our vast distribution network pose challenges to even the brightest scholars. An online supplement to
the Harvard Business Review publishes case studies of North West Supply Chain Management for academic analysis.
Year two of our logistics strategy to contribute to more growth
in store required the vision and framework for proprietary and
integrated transportation services. The cornerstone is our
Transporation Management System (TMS).
This robust platform will help redefine our outbound
transportation capabilities in the north, optimizing load
efficiencies by location, delivery windows, volumes and
carrier types, while yielding invaluable real-time item
visibility across our supply chain. Longer term it will also
generate freight delivery capabilities that can be leveraged
to bring a vast assortment of products to our customers,
far beyond the current physical and cost limitations of local
store selling space.
TMS deployment is slated for 2013, with pilot testing
beginning in the second half of 2012. We have high
expectations for the resulting efficiencies of these advanced
core processes on our $100 million annual expenditures
on outbound logistics and our ability to fully live up to the
North West’s reputation of being the best at moving retail
products and services to some of the hardest-to-reach
customers in the world.
new subsidy savings
Much of our attention at the start of 2011 was to develop
and implement proccesses to support the Canadian
government’s new Nutrition North program which
replaced Food Mail. As of April 1st, 2011, rather than
subsidizing transport costs to ship groceries to hard-to-
reach northern communities, subsidies are paid directly to
retailers like North West who serve the Canadian north,
enabling us to work with our carriers to determine more
efficient routing, better service and lower freight rates.
18 The North West Company Inc. 2011 Summary Annual Report
The North West Company Inc. 2011 Summary Annual Report 19
Our community promise
This has tremendous positive impact and goes
hand in hand with being a trusted local retailer.
While our
contributions are
varied, financial
support is
divided between
five general
categories:
culture & arts
$705,422
North West supports cultural
events, performing arts and
celebrations of heritage, language
and artistic expression, including
The Manitoba Theatre for Young
People’s Aboriginal Arts Training
and Mentorship Program and the
Festival du Voyageur.
sports & recreation
7,000+
We help over 7,000 youth annually
by providing uniforms, team
travel, financial aid and sponsoring
summer camps, community-based
street hockey and more.
youth & education
$282,169
healthy living
$443,408
environment
1,082 mt
Each year we award thousands
of dollars in post-secondary
scholarships and educational
assistance to our community
members, schools, and staff,
including programs like Excellence
in Aboriginal Business Leadership
and Junior Achievement.
Our Healthy Living Programs
promote nutritional and physical
wellness for our customers and
employees. North West also
participates in events for the
Canadian and American Diabetes
Associations, the Canadian Cancer
Society, the Muscular Dystrophy
Association and others.
Streamlining our truck fleet
decreased fuel consumption and
cut Greenhouse Gas Emissions by
1,082 metric tons in 2011. As well,
our Greener Tomorrow program
has helped reduce plastic bag use
by more than 60% across the
Northwest Territories, Nunavut
and Nunavik.
Our everyday participation is counted on more than that of
average outside businesses and we do our best to live up
to these expectations. In addition to supporting causes and
events financially, and recruiting, training and employing
community members where we work, North West donates
thousands of volunteer hours annually.
employee giving
Staff participation goes into every initiative we support.
From our front-line customer service associates through
to our President & CEO, the example is set by hundreds
of Nor’Westers every year in many ways, including our
United Way leadership last year and going the extra mile
for the Canadian and American Diabetes Association
(see sidebar).
Here’s a sampling of who and how we’ve helped in the past
twelve months1:
• Drop the Pop annual campaign in Nunavut, Northwest
Territories & Yukon
• Cost-U-Less St. Croix helps VICARE promote HIV
screening and awareness
• Giant Tiger raises $90,000 for sick children across
Western Canada
• Northern Lac Brochet donates $15,000 to bring Keepers
of the Water youth summit in Northern Saskatchewan
• NorthMart Iqaluit donates $10,000 to aid victims
of flash fires
• Cost-U-Less and Island Fresh raise vital donations for
Guam Memorial Hospital
• Northern Attawapiskat provides gift cards to 300
residents at Christmas
20 The North West Company Inc. 2011 Summary Annual Report
united way & days of caring
Our people have greatly increased
both financial aid and volunteer
support to the United Way through
the years. We have turned the
charity’s annual Day of Caring
into a multi-day company affair,
taking on projects for lasting impact. In 2010, we
spent five days plowing and planting a garden in a
low-income Winnipeg community. In 2011, we
visited a similar housing complex where 150 North
West employees, from executives to store cashiers,
hauled lumber, soil, mulch and dug in to create
two vegetable gardens for the enjoyment of the
whole community.
rome run for diabetes
61 North West employees from
all banners and 16 community
members converged in Rome,
Italy last spring for a marathon
benefitting the Canadian and
American Diabetes Associations.
Over the past 10 years, staff from
coast to coast have united as Team Diabetes, raising
well over $2 million. Joining President and CEO,
Edward Kennedy and the team was Grand Chief,
David Harper of Manitoba Keewatinowi Okimakanak,
running on behalf of Aboriginal people who are up
to five times more likely to develop Type 2 diabetes.
While past proceeds funded research, net proceeds
raised by Team Diabetes in 2011 – over $250,000 –
will be directed to diabetes education and programs
within the communities North West serves.
Our dedicated staff also run and fundraise annually
in Labrador’s Trapline Marathon and the Long Sun
Run in Northern Saskatchewan.
social connections
Our Northern/NorthMart
Facebook Community page
launched last summer, garnering
about 7,800 views per posting
and 4,300 weekly users. Through
conversations, contests, promotions and product
profiles, we are gaining insight into lifestyle trends
we can leverage to better meet our customers’
local shopping needs. We created Facebook pages
for many more of our communities as an excellent
localized forum.
Follow us on Facebook, Twitter, LinkedIn
and YouTube.
Resident children, Casa Manita Orphange
Cost-U-Less Curacao management and staff provide
ongoing mentoring and nurturing for deserving children.
• North West bestows National Aboriginal Achievement
Foundation Bursary in Business and Commerce
• American Samoa Cost-U-Less and Red Cross help
tsunami victims
• Northern Ile a la Crosse raises $5,000 to help build a
new community swimming pool complex
• North West delivers Christmas gifts to 200 children
and low-income families in Winnipeg
• North West provides We Day with a $10,000 sponsorship
1 For a detailed listing, please view Our Community Promise report at www.northwest.ca
and our annual highlights at www.northwest.ca/community
The North West Company Inc. 2011 Summary Annual Report 21
2011 Chairman’s Message
2011 was a year of measurable progress at North West.
The Company continued to focus on driving sustainable
results through operational excellence or “More Growth
in Store “ and our northern businesses led the way,
helped by relatively stable economic and competitive
environments. The ability to apply new approaches to the
business was a testimony to the energy, openness and
dedication of our associates. Their strength continues to
be a hallmark to our success.
As the Company’s attention to process innovation and
execution increased, your Board played an active oversight
role in helping ensure that performance targets were
appropriate and that compensation was aligned. Over
the past year, this produced changes to both short and
long-term incentive pay. On the short-term side, several
performance drivers were identified by management as
key to accomplishing the initiatives highlighted in this
summary report. These have been added to the previous
single, bottom line business unit measures and will be
part of the Board’s ongoing review of our “More Growth in
Store” effectiveness.
The delivery of total returns (share price growth and
strong dividends) is a key long-term objective of
the Company just as it has been a key feature of our
performance over the past 25 years. Going forward, long-
term incentive pay has been adjusted to recognize both
consistent achievement against operational and strategic
targets and our total returns compared to other public
Canadian and U.S. retailers.
An important development at the Board level was the
transition of our Board make-up. As announced last year,
Ian Sutherland, a founding shareholder, former CEO and
former Chair, retired at the 2011 Annual Meeting. Just
prior to Ian’s departure, Keith Martell, a leading Aboriginal
business person, left the Board due to his primary business
commitments. At the 2012 Annual Meeting, Jim Oborne
and David Broadhurst will be retiring from the Board.
Jim and David have made long, valuable contributions to
North West dating back to the Company’s start-up as an
independent business in 1987 with Jim, in particular, playing
a pivotal role as the lead Winnipeg director and in the initial
financing of the enterprise.
directors. Gary Merasty, Vice-President, Corporate Social
Responsibility at Cameco Corporation, joined the Board in
June 2011 and brings a deep understanding of constructive
Aboriginal community relations in the North built on a
career as a teacher, business leader and federal politician.
Annette Verschuren, Executive Chair, NRStor Incorporated
and formerly President, Home Depot Canada and Asia for
15 years, was appointed in December 2011 adding a unique
blend of entrepreneurial and international retail perspectives.
Eric Stefanson was appointed in January 2012 and has great
breadth in senior finance and accounting roles, including his
most recent position as Central Canada Managing Partner,
BDO Canada and earlier experience as CFO of Assante
Canada and Minister of Finance of Manitoba from 1993-99.
In this, our 25th year as an independent company, these
changes leave North West well-positioned with a balanced
set of skills and a Board renewed and ready to fulfill the
tradition of strong governance first established in 1987.
While we appreciate the important contribution of all
of these retiring directors, I am very pleased to report
that your Board has moved forward diligently on board
succession with the recruitment of three strong, new
h. Sanford Riley
Chairman, Board of Directors
April 9, 2012
22 The North West Company Inc. 2011 Summary Annual Report
Corporate Governance
Board of Directors
1
4
7
2
5
8
FPO
new
images
FrOm client
3
6
69
10
11
directors
the north west company inc.
1 h. Sanford Riley Chairman
2 Edward S. Kennedy
3 David G. Broadhurst 1,2
4 Frank J. Coleman 1,2
5 Wendy F. Evans 1,3
6 Robert J. Kennedy 2,3
7 Gary J. Lukassen 2
8 Gary Merasty 2,3
9 James G. Oborne 1,3
10 Eric L. Stefanson 2,3
11 Annette M. Verschuren 2,3
committees
1
2 Audit
3
Governance & Nominating
Human Resources,
Compensation & Pension
Complete disclosure of The North West Company Inc.’s corporate
governance is provided in the Company’s Management Information
Circular, which is available on the Canadian Securities Administrators’
website at www.sedar.com or in the investor section of the Company’s
website at www.northwest.ca
The North West Company Inc. 2011 Summary Annual Report 23
Shareholder information
Fiscal Year
Quarter Ended
Share/Unit
Price High
Share/Unit
Price Low
Share/Unit
Price Close
Volume EPS/EPU1
2011
April 30, 2011
July 31, 2011
October 31, 2011
January 31, 2012
2010
April 30, 2010
July 31, 2010
October 31, 2010
January 31, 20112
2009
April 30, 2009
July 31, 2009
October 31, 2009
January 31, 2010
$ 22.50
22.50
20.85
20.63
20.72
$ 23.00
19.50
20.22
21.99
23.00
$ 19.60
17.48
16.75
18.70
19.60
$ 17.85
19.65
18.51
17.85
18.28
$ 17.02
17.60
17.02
19.27
19.93
$ 14.88
14.98
14.88
15.11
16.86
$ 19.40
19.78
20.23
18.78
19.40
$ 21.09
18.75
19.78
20.68
21.09
$ 17.94
16.35
15.65
16.98
17.94
22,417,768
5,885,378
5,802,416
4,020,971
6,709,003
24,813,768
4,899,200
4,148,526
5,118,932
10,647,110
20,080,407
4,068,297
5,289,346
6,004,601
4,718,163
$ 1.19
0.26
0.31
0.35
0.27
$ 1.44
0.37
0.42
0.46
0.19
$ 1.69
0.33
0.43
0.51
0.42
1 Net earnings per share (unit) are on a diluted basis. 2010 has been restated for IFRS.
2009 is reported under Canadian generally accepted accounting principles (CGAAP)
Total Return Performance (% at January 31)
This chart illustrates the relative performance of shares/units of The North West
Company Inc. and its predessor, North West Company Fund, over the past five years.
Effective January 1, 2011, North West Company Fund converted to a share corporation
called The North West Company Inc. The index incorporates the reinvestment of
dividends and income distributions.
175
150
125
100
75
50
25%
2007
2008
2009
2010
2011
2012
NWC/NWF.UN/NWF
TSX Composite
Consumer Durables/
Apparel Group
Retailing Group
Food/Staples
Retailing Group
100
100
100
100
100
119
103
101
87
80
113
136
71
43
62
85
93
71
83
89
172
117
87
93
95
166
110
65
99
106
The North West Company Inc.
Anticipated Dividend Dates*
Record Date: March 30, 2012
Payment Date: April 16, 2012
Record Date: June 29, 2012
Payment Date: July 16, 2012
Record Date: September 28, 2012
Payment Date: October 15, 2012
Record Date: December 31, 2012
Payment Date: January 15, 2013
* Dividends are subject to approval by the Board of
Directors
2012 Annual Meeting
The Annual Meeting of Shareholders of
The North West Company Inc. will be held on
Wednesday, June 6, 2012 at 11:30 am at
The Fort Garry Hotel, Grand Ballroom,
222 Broadway, Winnipeg, Manitoba.
Transfer Agent and Registrar
Canadian Stock Transfer Company Inc.
(acts as administrative agent for
CIBC Mellon Trust Company)
Calgary and Toronto
Toll-free: 1 800 387 0825
www.cibcmellon.ca
Stock Exchange Listing
The Toronto Stock Exchange
Stock Symbol NWC
ISIN #: CA6632781093
CUSIP #: 663278109
Number of shares issued and outstanding
at January 31, 2012: 48,378,000
Auditors
PricewaterhouseCoopers LLP
Trademarks are used throughout this annual
report in an editorial fashion with no intention
of infringement.
Printed in Canada on recyclable paper.
©2012 The North West Company Inc.
Our thanks to the staff and customers who appear in photographs from
Calgary, Alberta; Curacao, Netherland Antilles; Gjoa Haven, Nunavut;
Iqaluit, Nunavut; Klawock, Alaska; Rankin Inlet, Nunavut; St. Thomas,
U.S. Virgin Islands; Sand Point, Alaska; Winnipeg, Manitoba.
Nor’Westers are rooted in the spirit of
trading posts that began in 17th century
North America, including store locations
that have been in continuous operation for
over 340 years. Since acquiring our northern
retail network in 1987, we’ve grown an
enterprising Canadian merchant business
into a leading community retailer serving
remote, rural and urban neighbourhoods.
Now, as we celebrate our 25th Anniversary,
we proudly uphold the pioneering legacy that
inspires The North West Company today.
For additional information about this report or for general
information about the Company, contact the Corporate Secretary:
The North West Company Inc.
Gibraltar House, 77 Main Street
Winnipeg, Manitoba Canada R3C 2R1
T 204.934.1756 F 204.934.1317
Toll-free 1.800.563.0002
investorrelations@northwest.ca
www.northwest.ca