2005 Annual Information Form
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2005 ANNUAL INFORMATION FORM March 16, 2006 LOBLAW COMPANIES LIMITED 2005 ANNUAL INFORMATION FORM TABLE OF CONTENTS FORWARD LOOKING STATEMENTS..................................................................................3 CORPORATE STRUCTURE ....................................................................................................4 Incorporation..................................................................................................................................4 Intercorporate Relationships ..........................................................................................................4 GENERAL DEVELOPMENT OF THE BUSINESS ...............................................................5 Products and Trends.......................................................................................................................5 DESCRIPTION OF THE BUSINESS .......................................................................................7 Operations......................................................................................................................................7 Geographic and Banner Summary.................................................................................................7 Competitive Conditions .................................................................................................................8 Customers ......................................................................................................................................9 Products and Services ....................................................................................................................9 Intellectual Property.....................................................................................................................10 Supply Chain................................................................................................................................10 Seasonality ...................................................................................................................................11 Foreign Operations.......................................................................................................................11 Employees....................................................................................................................................11 Environmental and Health and Safety Matters ............................................................................11 Food Safety and Labelling...........................................................................................................11 Privacy and Ethics........................................................................................................................12 Risks and Risk Management........................................................................................................12 CAPITAL STRUCTURE AND MARKET FOR SECURITIES...........................................12 Common Share Capital................................................................................................................12 Common Share Trading Price and Volume.................................................................................13 Credit Ratings (Canadian Standards)...........................................................................................13 Dominion Bond Rating Service...................................................................................................14 Standard & Poor’s........................................................................................................................14 COMMON SHARE DIVIDENDS............................................................................................15 DIRECTORS AND OFFICERS...............................................................................................15 TRANSFER AGENTS AND REGISTRARS..........................................................................18 EXPERTS ...................................................................................................................................18 AUDIT COMMITTEE INFORMATION ...............................................................................18 Loblaw Companies Limited 2005 Annual Information Form ADDITIONAL INFORMATION.............................................................................................19 APPENDIX A – AUDIT COMMITTEE CHARTER Loblaw Companies Limited 2 2005 Annual Information Form FORWARD-LOOKING STATEMENTS This Annual Information Form contains forward-looking statements which reflect management’s expectations regarding the Company’s objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. Forward-looking statements are typically identified by words or phrases such as “anticipates”, “expects”, “believes”, “estimates”, “intends” and other similar expressions. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from the estimates, projections and intentions. Such differences may be caused by factors which include, but are not limited to, changes in consumer spending and preferences, heightened competition including new competitors and expansion of current competitors, the ability to realize anticipated cost savings, including those resulting from restructuring and other cost reduction initiatives, the ability to execute restructuring plans effectively, the Company’s relationship with its employees, results of labour negotiations including the terms of future collective bargaining agreements, changes to the regulatory environment in which the Company operates now or in the future, changes in the Company’s tax liabilities, either through changes in tax laws or future assessments, performance of third party service providers, public health events, the ability of the Company to attract and retain key executives and supply and quality control issues with vendors. The Company cautions that this list of factors is not exhaustive. A discussion of these factors and other risks and uncertainties are discussed in the Company’s materials filed with the Canadian securities regulatory authorities from time to time, including in the Risks and Risk Management section of the Company’s Management Discussion and Analysis in its 2005 Annual Report. The assumptions applied in making the forward-looking statements contained in this Annual Information Form include the following: economic conditions in 2006 do not materially change from those expected, patterns of consumer spending are reasonably consistent with historical trends, no new significant competitors enter the Company’s markets nor does any existing competitor significantly increase its presence, anticipated cost savings from restructuring activities are realized as planned, continuing future restructuring activities are effectively executed, there are no material work stoppages in 2006 and the performance of third party service providers is in accordance with expectations in the upcoming year. Potential investors and other readers are urged to consider these factors carefully in evaluating these forward-looking statements and are cautioned not to place undue reliance on them. The forward-looking statements included in this Annual Information Form are made only as of the date of this Annual Information Form and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events contained in these forward-looking statements may or may not occur. The Company cannot assure that projected results or events will be achieved. Loblaw Companies Limited 3 2005 Annual Information Form The information in this Annual Information Form is current to December 31, 2005, unless otherwise noted. All amounts are in Canadian dollars. CORPORATE STRUCTURE Incorporation Loblaw Companies Limited was incorporated on January 18, 1956, although portions of its business originated before 1900. It was continued under the Canada Business Corporations Act by certificate of continuance dated May 7, 1980. The registered office of the Company is located at 22 St. Clair Avenue East, Toronto, Canada M4T 2S7. The head office and Store Support Centre for the Company is located at 1 President’s Choice Circle, Brampton, Ontario, L6Y 5S5. Intercorporate Relationships Loblaw Companies Limited is a holding company, which carries on its business through its subsidiaries. A list of the subsidiaries of the Company that carry on its principal business operations is given below. In each case, the Company owns 100% of the voting and non-voting securities either directly or indirectly. Throughout this Annual Information Form, Loblaw Companies Limited and its subsidiaries are collectively referred to as the “Company”. Subsidiary Jurisdiction of Incorporation Atlantic Wholesalers Ltd. New Brunswick Fortinos Supermarket Ltd. Ontario Glenhuron Bank Limited Barbados Kelly, Douglas & Company, Limited British Columbia Loblaw Brands Limited Canada Loblaw Financial Holdings Inc. Ontario Loblaw Properties Limited Ontario Loblaw Properties West Inc. Canada Loblaws Inc. Ontario