Forward-looking Statement Disclaimer

Transcription

1 REVIEW OF FINANCIAL RESULTS First quarter 2010 July 7, 2009

2 Forward-looking Statement Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties, and which are based on the Company s current expectations, estimates, projections and assumptions and were made by the Jean Coutu Group in light of its experience and its perception of historical trends. All statements that address expectations or projections about the future, including statements about the Company s strategy for growth, costs, operating or financial results, are forward-looking statements. All statements other than statements of historical facts, including statements regarding the prospects of the Company s industry and the Company s prospects, plans, financial position and business strategy may constitute forwardlooking statements within the meaning of the Canadian securities legislation and regulations. Some of the forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "project", "could", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. These statements do not reflect the potential impact of any non-recurring items or of any mergers, acquisitions, dispositions, asset write-downs or other transactions or charges that may be announced or that may occur after the date hereof. While the list below of cautionary statements is not exhaustive, some important factors that could affect our future operating results, financial position and cash flows and could cause our actual results to differ materially from those expressed in these forward-looking statements are our equity interest in Rite Aid Corporation ("Rite Aid"), general economic, financial or market conditions, the investment in ABCP, the cyclical and seasonal variations in the industry in which we operate, the changes in the regulatory environment as it relates to the sale of prescription drugs, the ability to attract and retain pharmacists, the intensity of competitive activity in the industry in which we operate, labour disruptions, including possibly strikes and labour protests, changes in laws and regulations, or in their interpretations, changes in tax regulations and accounting pronouncements, the success of the Company s business model, the supplier and brand reputations and the accuracy of management s assumptions and other factors that are beyond our control. These and other factors could cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that would cause the Company s actual results to differ from current expectations, please also refer to the Company s public filings available at and In particular, further details and descriptions of these and other factors are disclosed in the Company s Annual Information Form under "Risk Factors" and in the "Risks and uncertainties" section of the MD&A for the fiscal year ended February 28, We expressly disclaim any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws. 1

3 Mr. François J. Coutu Président and Chief Executive Officer

4 Financial Results Highlights / Q Highlights franchising Q Q Variation (millions $Can) Retail sales (1) Pharmacy 8,7% Front-end 3,7% Total 883,9 828,1 6,7% Distribution center sales Pharmacy 9,9% Front-end 7,5% Total 559,6 516,7 8,3% Other revenues 59,7 57,6 3,6% Revenues franchising 619,3 574,3 7,8% (1) Franchised outlets retail sales are not included in the Company s consolidated financial statements 3

5 Financial Results Highlights / Q Summary of Results Q Q (millions $Can, except EPS) Ventes 559,6 516,7 Bénéfice brut 55,5 44,9 en % des ventes 9,9% 8,7% Autres revenus 59,7 57,6 Frais généraux et d'exploitation 53,4 49,4 en % des revenus 8,6% 8,6% Bénéfice d'exploitation avant amortissements 64,7 54,4 en % des revenus 10,4% 9,5% Share of loss of Rite Aid 30,9 53,4 Net earnings (loss) 10,3-20,2 Net earnings (loss) per share 0,04 $ -0,08 $ Earnings (loss) per share before specific items 0,03 $ -0,08 $ Earnings per share before specific items and share of Rite Aid's loss 0,16 $ 0,13 $ 4

6 Network Performance Retail Sales Growth / Comparable Stores % Combined Front-End Pharmacy Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

7 Franchising Activities Easter Sales Increase of 4% in sales of Easter s products compared with last year 6

8 Franchising Activities Mothers Day Sales Sales of Mothers Day s products increased 3% compared with last year 7

9 Franchising Activities Highlights / Private Label Products Launch of several new products and increase of penetration rate to reach 10.6% compared with 9.9% for the first quarter of last year 8

10 Franchising Activities Photo Category Development of 12.8 million digital photos during first quarter, an increase of 5.7% over last year s comparable period 9

11 Franchising Activities Highlights / Real Estate Development Opening of 7 new pharmacies, including 2 relocations Marieville, QC Delson, QC Jonquière, QC 10

12 Franchising Activities Highlights / Grand Reopenings 13 expansion and renovation projects completed during the quarter Côte-des-Neiges, QC Tracy, QC St-Vallier, QC 11

13 Franchising Activities «Mon Jean Coutu, ma solution santé» 12

14 Rite Aid Highlights / Q Rite Aid Summary of Results Q Q (millions $US, ex cept EPS) Revenues 6 531, ,9 Gross profit 1 774, ,2 as a % of revenues 27,2% 27,3% Selling, general and administrative expenses 1 710, ,0 as a % of revenues 26,2% 27,1% Adjusted EBITDA 249,2 241,1 as a % of revenues 3,8% 3,6% Net loss -98,4-156,6 Basic and diluted loss per share -$0,11 -$0,20 Rite Aid revised its guidance on net loss for its 2010 fiscal year to account for the increased interest expense on recent refinancings: - Comparable sales growth of 0.5% to 2.5% - Adjusted EBITDA in a range of $US B to $US B - Net loss in a range of $US 265 M to $US 490 M 13

15 Mr. André Belzile Senior Vice Président, Finance and Corporate Affairs

16 Financial Results Additional Information on non-gaap Measures Non-GAAP Measures Q Q (millions $Can) Net earnings (loss) 10,3-20,2 Share of loss of Rite Aid 30,9 53,4 Financing expenses -2,2 1,3 Income Taxes (recovery) 18,7 14,7 Operating Income 57,7 49,2 Amortization 7,0 5,2 Frais généraux et d'exploitation 64,7 54,4 15

17 Financial Results Additional Information on Non-GAAP Measures Non-GAAP Measures Q Q (millions $Can, except EPS) Net earnings (loss) 10,3-20,2 Specific items after taxes Unrealized foreign exchange gains on monetary items -0,8 - Fair value variation of third party asset-backed commercial paper -1,9 - Earnings (loss) before specific items 7,6-20,2 Net earnings (loss) per share 0,04 $ -0,08 $ Specific items after taxes Unrealized foreign exchange gains on monetary items - - Fair value variation of third party asset-backed commercial paper -0,01 $ - Earnings (loss) per share before specific items 0,03 $ -0,08 $ 16

18 Financial Position Consolidated Highlights Balance Sheet As at As at (millions $Can, except ratios and NBV) May 30, Feb. 28, Long term debt (including current portion) 260,9 275,7 Ratio of long term debt (including current portion) to operating income before amortization 1,07x 1,18x Ratio of long term debt (including current portion) to total capitalization 36,6% 37,7% Shareholders' equity 451,9 455,6 Net Book Value per share 1,91 $ 1,93 $ Investments 73,1 110,1 Total Assets 995, ,4 17

19 Financial Position Consolidated Highlights Cash flow provided by operating activities before net changes in non-cash asset and liability items of $51.2 M in the first quarter of 2010 fiscal year Cash flow used in investing activities of $19.1 M for the first quarter of 2010 fiscal year: - Purchase of capital assets of $10.1 M for real estate development - Investment in incentives to franchisees of $8.9 M for the acquisition of independent pharmacies Cash flow used in financing activities of $23.6 M 18

20 REVIEW OF FINANCIAL RESULTS First Quarter 2010 July 7, 2009