UPDATED AND RESTATED ANNUAL INFORMATION FORM (for the year ended December 28, 2013; updated to June 2, 2014) June 2, 2014 LOBLAW COMPANIES LIMITED UPDATED AND RESTATED ANNUAL INFORMATION FORM (for the year ended December 28, 2013; updated to June 2, 2014) TABLE OF CONTENTS DATE OF INFORMATION .............................................................................................................................................................. 3 FORWARD-LOOKING STATEMENTS .......................................................................................................................................... 3 CORPORATE STRUCTURE .......................................................................................................................................................... 4 Incorporation ................................................................................................................................................................................... 4 Intercorporate Relationships ........................................................................................................................................................... 4 GENERAL DEVELOPMENT OF THE BUSINESS ........................................................................................................................ 5 Retail…. .......................................................................................................................................................................................... 6 Financial Services ......................................................................................................................................................................... 11 Choice Properties ......................................................................................................................................................................... 11 Employment Matters ..................................................................................................................................................................... 12 Information Technology ................................................................................................................................................................ 13 Financial Performance .................................................................................................................................................................. 13 Significant Acquisitions ................................................................................................................................................................. 13 DESCRIPTION OF THE BUSINESS ............................................................................................................................................ 14 Operations .................................................................................................................................................................................... 14 Geographic and Banner Summary ............................................................................................................................................... 15 Competitive Environment .............................................................................................................................................................. 17 Customers ..................................................................................................................................................................................... 18 Control Brand Products ................................................................................................................................................................. 18 Marketing ...................................................................................................................................................................................... 18 Intellectual Property ...................................................................................................................................................................... 19 Information Technology ................................................................................................................................................................ 19 Supply Chain ................................................................................................................................................................................. 19 Seasonality ................................................................................................................................................................................... 20 Foreign Operations ....................................................................................................................................................................... 20 Colleagues .................................................................................................................................................................................... 20 Lending ......................................................................................................................................................................................... 20 Corporate Social Responsibility .................................................................................................................................................... 20 RISKS ........................................................................................................................................................................................... 21 Enterprise Risks and Risk Management ....................................................................................................................................... 21 Operating Risks and Risk Management ....................................................................................................................................... 22 Financial Risks and Risk Management ......................................................................................................................................... 28 DISCUSSION OF FINANCIAL RISKS ......................................................................................................................................... 28 Share Capital ................................................................................................................................................................................ 30 Share Trading Price and Volume .................................................................................................................................................. 31 Medium Term Notes and Debt Securities ..................................................................................................................................... 32 Credit Facilities ............................................................................................................................................................................. 32 Trust Unit Liability ......................................................................................................................................................................... 32 Credit Ratings ............................................................................................................................................................................... 32 DIVIDENDS .................................................................................................................................................................................. 35 Normal Course Issuer Bid ............................................................................................................................................................. 35 DIRECTORS AND OFFICERS ..................................................................................................................................................... 36 Loblaw Companies Limited 1 Updated and Restated Annual Information Form (for the year ended December 28, 2013; updated to June 2, 2014) Directors ........................................................................................................................................................................................ 36 Officers .......................................................................................................................................................................................... 37 LEGAL PROCEEDINGS .............................................................................................................................................................. 39 REGULATORY ACTIONS ............................................................................................................................................................ 39 MATERIAL CONTRACTS ............................................................................................................................................................ 39 Services Agreement ...................................................................................................................................................................... 39 Credit Facilities ............................................................................................................................................................................. 39 TRANSFER AGENTS AND REGISTRARS ................................................................................................................................