The North West Company Inc. ($NWC)

Good morning. I would like to welcome you to this Annual General and Special Meeting of Shareholders of The North West Company, Inc. My name is Brock Bulbuck, I am a Director of North West and Chair of its Board. We are pleased to host today's meeting virtually via a live video webcast through the Lumi platform which enables registered shareholders and duly appointed proxy holders the same experience regardless of geographic location to participate, submit questions and vote. I will act as Chair of today's meeting, I will now call this meeting to order. I would like to begin by acknowledging that the Northwest Company's head office is located on Treaty 1 Territory, the traditional lands of the Anishinaabe, Cree, Anishininew, Dakota, and Dene Peoples and the homeland of Red River Metis. We also acknowledge that Winnipeg's Water comes from Shoal Lake 40 First Nation. The North West Company operates in many First Nations Inuit and Metis territories across Canada. And we hold deep respect for the unique heritage, cultures and languages represented across these traditional lands. We acknowledge the history of colonialism within Canada, the resulting harms done, and we reaffirm our commitment to reconciliation as outlined in Our Promise to Indigenous Peoples. Despite a difficult retail economic environment for North West, 2025 was another year of solid results. Sales increased 0.8% to $2.6 billion and net earnings increased 1.9% to $146 million. The company made capital investments of $138 million and increased the dividends paid to shareholders to $77 million. A key factor underpinning these results is the Next 100 strategy, which is in its second full year of execution. The Next 100 is focused on building a stronger, more robust company to create value for our customers and our shareholders into the future. The Next 100 initiatives have driven reductions in expenses through labor productivity gains and other cost savings initiatives and have delivered enhanced value for our customers through better assortments including our private label program and the introduction of President's Choice and no name products in Northern Canada and the British Virgin Islands, and our also good private label brand in our international markets. As previously mentioned, the retail environment for North West overall in 2025 was difficult, but the breadth and diversity of North West operations helped navigate through the challenging conditions, which included -- in our Canadian operations, government funding changes led to a reduction in support payments for Northern residents, such as the elimination of the INET Child First initiative food voucher program and reduced support through Jordan's principal. In our international operations, the benefits from improved economic conditions in certain Caribbean and Alaskan markets were partially offset by a decrease in the Alaska Permanent Fund dividend and weaker economic conditions in the South Pacific. We also felt the significant impact of climate change in 2025 as wildfires forced an unprecedented number of emergency evacuations impacting the communities in which we operate. On behalf of the Board, I want to thank all nor Westers for their commitment to navigating through these challenging conditions and for their dedication to our mission of making people's lives better in the communities we are privileged to serve. Since our last shareholders meeting, we added 2 new directors to the Board, who brings significant depth and breadth of experience. In August 2025, we appointed Greg Saretsky to our Board. Greg is a seasoned airline executive and Corporate Director with experience in global aviation, having served as the CEO of WestJet Airlines LTD and as a Board Director of publicly traded airline companies. In April 2026, we appointed Paul Soubry to our Board. Paul served as CEO of NFI Group Inc. from 2009 to January 2026. NFI is a leading global provider of sustainable bus and motor coach solutions. Paul has a sales, marketing, business development and operations background with substantial experience in business transformations and lean operational practices. We are excited to have added these 2 highly qualified and experienced individuals to our Board. I wish to thank our shareholders for their continued support in our pursuit of our mission as well as the communities we serve for the privilege of allowing us to serve them. I would now like to introduce the people joining me at the head table. To my left is Dan McConnell, President and Chief Executive Officer and a Director. Next to Dan is Alexis Cloutier, Vice President, Legal and Corporate Secretary. Also attending today is John King, our Executive Vice President and Chief Financial Officer, who is available to answer any financial questions. Christine Caleso and Jennifer Villareal, of TSX Trust Company are attending today's meeting virtually and will act as scrutineers for the meeting. I appoint Alexis Cloutier to act as Secretary for this meeting. I will now ask her to read a notice regarding forward-looking statements and non-GAAP financial measures.

Thank you, Mr. Chair. Certain information presented today may constitute forward-looking statements. Such statements reflect North West's current expectations, estimates, projections and assumptions. These forward-looking statements are not guarantees of future performance and are subject to certain risks which could cause actual performance and financial results in the future to vary materially from those contemplated in the forward-looking statements. Any forward-looking statements are current only as of the date they're made, and the company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise, other than what's required by law. . For additional information on these risks, please see North West's annual information form under the heading Risk Factors. This presentation may also refer to EBITDA, adjusted EBITDA and adjusted net earnings, which are not recognized financial measures under International Financial Reporting Standards. North West's method of calculating these measures may differ from other companies and may not be comparable to measures used by other companies. For further information, please see North West's annual report under the heading non-GAAP Financial Measures.

I would now ask the Secretary to report on attendance.

Thank you, chair. The scrutineers have provided me with their report on attendance. The attendance report confirms that a sufficient number of shareholders holding a sufficient number of shares of Northwest that are entitled to vote are represented in person or by proxy at this meeting to constitute a quorum. As there is a quorum present, this meeting is regularly called and properly constituted for the transaction of business. .

A notice calling the meeting, together with a form of proxy, management information circular and proxy statement and annual report containing the financial statements of The North West Company, Inc. for the year ended January 31, 2026, and the related auditor's report were provided to each intermediary and registered shareholder of record on the record date for the meeting. We have received an affidavit of mailing from TSX Trust Company, North West's transfer agent, confirming the mailing of notice. Voting on the items of business to come before today's meeting, will be through the Lumi platform only. As described in the management information circular, only registered shareholders and duly appointed proxy holders who received a control number from our transfer agent TSX Trust Company, are able to vote or ask questions during the meeting. If you have already voted in advance of the meeting and do not wish to change your vote, you do not need to vote again during the meeting. Starting now, you can register your vote on all items of business for today's meeting. To vote, click on the voting tab on the left or bottom of your screen. You will see the meeting resolutions displayed on your screen. To vote, select one of the voting options available. Your vote will automatically be submitted to our transfer agent after you make your selection. Votes may be changed up to the time voting is closed. The poll will remain open until I declare voting on all matters closed right after the motion to approve the advisory resolution on executive compensation is made. Shareholders were encouraged to ask questions ahead of the meeting by contacting the Corporate Secretary by e-mail, phone or mail. During the meeting, questions can only be submitted through the Lumi platform. If you are a registered shareholder or a proxy holder and wish to ask a question, select the messaging tab on the left or bottom of your screen and in the Ask a Question box type your question or your phone number and then click the send button. If your question relates to a specific matter of business to be voted on, please also identify the specific matter in the box. If you type your question in the box, the Secretary will read it out at the appropriate time. If you type your phone number in the box, a Lumi representative will phone the number provided. When you answer the call, you will be on mute, and you will hear the meeting through your phone. Please mute your computer and listen to the live feed on your phone only. You will be unmuted at the appropriate time for you to ask your question live. Questions can be submitted by registered shareholders or proxy holders at any time during the meeting until I close the question period. We recommend that questions are submitted as soon as possible during the meeting so that they can be addressed at the appropriate time. We will respond to questions relating to matters of business to be voted on at the time such matter is being discussed before a vote is held on each matter. All other questions will be addressed during the general question-and-answer session at the end of the presentations following the formal portion of the meeting. Questions on the same topic or otherwise related may be grouped, summarized and addressed at the same time. Questions should be of interest to all shareholders and not personal in nature. We will endeavor to address all general questions. However, please note that due to time constraints, we may not be able to do so. If you duly submit a question that is not answered during the meeting, including a question relating to a personal matter, we will communicate with you after the meeting, if you have provided your contact information. A bit about the format of today's meeting. We will first receive the consolidated financial statements of The North West Company, Inc. for the year ended January 31, 2026 and the related auditor's report. We will then vote on the election of the directors, the appointment of our auditors, the amendment of the director deferred share unit plan and an advisory resolution on executive compensation and announce the results of our votes. Dan will then address the meeting before we conclude with a question-and-answer session. I would now like to introduce all of the members of the Board of Directors who will be standing for election this year. Stewart Glendinning is from Ocean Ridge, Florida, and is Chief Financial Officer of Dollar Tree, Inc. Stewart is the Chair of our Governance and Nominating Committee. Rachel Huckle, is from Toronto and is the Chief Executive Officer of Staples, Inc. Annalisa King is from Madera Beach, Florida and is a past Senior Vice President and Chief Financial Officer of Best Buy Canada. Annalisa is the Chair of our Audit Committee. Violet Konkle is from Fenwick, Ontario and is a past President and Chief Executive Officer of The Brick. Violet is the Chair of our Human Resources Compensation and Pension Committee. Steven Kroft is from Winnipeg and is the past Chief Executive Officer and Executive Chair of the CEL Group of companies. Jennefer Nepinak is from Winnipeg and is the Vice President of Strategic Partnerships and reconciliation at TP Group of Companies. Gregg Saretsky is from Bellevue, Washington and is the past President and Chief Executive Officer of WestJet Airlines LTD. Paul Soubry is from Winnipeg, and is the past President and Chief Executive Officer of NFI Group Inc. Victor Tootoo is from Iqaluit Nunavut and is the President and Chief Executive Officer, of Northern Allied Nunavut Travel Inc. And of course, there is our President and Chief Executive Officer, Dan McConnell; and myself, Brock Bulbuck. We are recommending that you reelect the aforementioned directors to our Board. So with those comments, I would now like to move to the formal part of the meeting. The first item of business is the presentation of the consolidated financial statements of The North West Company, Inc. for the year ended January 31, 2026, and the related auditor's report. A copy of financial statements was made available to all shareholders with the notice of meeting. Shareholders are not asked to take any action regarding the financial statements. But if any shareholder has questions related to the financial statements, I would request that they be asked later in the meeting after Dan completes his presentation. I remind you that the poll for all items submitted to a vote at this meeting is open. The next item of business is the election of directors of The North West Company for the ensuing year. Apart from the directors listed in the management information circular and proxy statement for this meeting, no additional individuals have been nominated for election. We will now turn to questions related to this item of business. Alexis, are there any questions related to this item of business?

No, Mr. Chair. There are no questions on this item of business.

Having received no questions, I will now entertain a motion with respect to the election of directors. Abby Klippenstein, Canadian Operations Controller and a shareholder of the company has been asked to place before the meeting the names of those persons proposed to be nominated for a direction -- for election as directors. Pam Pronyk, International Operations Controller and the shareholder of the company has been asked to second the motion.

I move that each of the persons whose names are listed under the heading Election of Directors in the Management Information Circular, who are Brock Bulbuck, Stewart Glendinning, Rachel Huckle, Annalisa King, Violet Konkle, Steven Kroft, Dan McConnell, Jennefer Nepinak, Gregg Soretsky, Paul Soubry and Victor Tootoo be elected as directors of The North West Company, Inc. for the ensuing year or until the successors are appointed.

Thank you, Abby.

I second the motion.

Thank you, Pam. Please cast your votes before we move on to the next item. [Voting]

We will now proceed with the appointment of auditors and the authorization of the Board of Directors to fix their remuneration. Alexis, are there any questions related to this item of business?

There are no questions on this item of business, Mr. Chair.

Having received no questions, Abby, may I have a motion to appoint the auditors of the Northwest Company, and Pam, please second the motion.

I move that PricewaterhouseCoopers LLP be appointed as the auditors of The North West Company, Inc. to hold office until the next annual meeting of shareholders or until their successor is duly appointed at the Board of Directors be authorized to fix their remuneration.

Thank you, Abby.

I second the motion.

Thank you, Pam. Please cast your votes before we move on to the next item. [Voting]

We will now consider an ordinary resolution amending North West's amended and restated director deferred share unit plan, which was outlined in the 2026 Management Information Circular that was previously sent to all shareholders. Alexis, are there any questions related to this idle business?

There are no questions on this item, Mr. Chair.

Having received no questions, Abby, may I have a motion regarding the amendment of the director deferred share unit plan, please? And Pam, please second the motion.

I move that the ordinary resolution amending North West's amended and restated director deferred share unit plan as disclosed in the Management Information Circular dated April 8, 2026 be approved.

Thank you, Abby.

I second the motion.

Thank you, Pam. Please cast your votes before we move on to the next item. [Voting]

We will now consider a nonbinding advisory vote on the approach to executive compensation, which was outlined in the 2026 Management Information Circular that was previously sent to all shareholders. Alexis, are there any questions related to this item of business?

There are no questions on this item of business, Ms. Chair.

Having received no questions, Abby, may I have a motion regarding the compensation of North West executives, please? And Pam, please second the motion.

I move that on an advisory basis and not to diminish the roles and responsibilities of the Board, that the shareholders accept the approach to executive compensation disclosed in the North West Company's 2026 Management Information Circular delivered in advance of this 2026 Annual General Meeting of Shareholders.

Thank you, Abby.

I second the motion.

Thank you, Pam. Please cast your votes. I will close the polls in 30 seconds. [Voting]

The polls are now closed. I have now received the preliminary results of the scrutineers' tabulation of today's votes. The scrutineers confirm the following preliminary vote results. All director nominees received at least 95.96 votes for. Approximately 89.54% of votes are in favor of the appointment of PricewaterhouseCoopers LLP as auditors. Approximately 97.42% of votes are in favor of the ordinary resolution amending North West amended and restated director deferred share unit plan, as disclosed in the Management Information Circular dated April 8, 2026, and approximately 94.65% of votes in favor of the advisory resolution on executive compensation received. The final results will be available shortly after this meeting on our website and SEDAR+. We will answer any questions registered shareholders or proxy holders may have after Dan's presentation has concluded. Please submit your questions any time during his presentation through the Lumi platform. If you are a registered shareholder or a proxy holder and wish to ask a question, select the messaging tab on the left or bottom of your screen and in the ask a question box, type your question or your phone number and then click the send button. The rules of procedure outlined at the beginning of the meeting will continue to apply for this question-and-answer session. I will now invite Dan to say a few words about the company's strategy and key initiatives that drive our business performance and potential.

Thank you, Brock, and good morning, everyone. It's a real privilege to be here with you today as we reflect on the past year and look ahead. This AGM represents another important milestone as we continue executing the Next 100, our strategy design to strengthen operational excellence, expand our capabilities and create enduring value for our customers, communities and our shareholders. 2025 was a year of disciplined execution and resilient performance within a challenging operating environment. . The company achieved year-over-year increases in key financial measures with sales of $2.6 billion, earnings before interest, taxes, depreciation and amortization or EBITDA of $333 million. Earnings from operations of $212 million and net earnings of $146 million. These results were delivered against the backdrop of reduced government support programs in Canada, prolonged wildfires related with evacuations and inflationary pressures and continued supply chain and transportation challenges inherent in the remote communities and regions that we serve. Speak to the strength of our core business, the resilience of our operating model and the impact of the foundational work underway through the Next 100. Affordability remains a front and center priority for our customers and for us. Prices on everyday essentials in The North continue to reflect the reality of complex supply chains, higher transportation costs and inflationary pressures. We also recognize that the impact of a reduced income supports for many families. Our responsibility is to focus on the areas we can control, such as an improved in-stock availability, expanding access to affordable private label products and managing our costs as well as continue to invest in the systems and infrastructure that help deliver better value. The Next 100 continues to guide how we do that work. In 2025, we made tangible progress across our strategic priorities. Within our Canadian store network, our teams implemented more than 1,400 new planograms, transitioned to electronic shelf labels in 65 stores and rolled out an automated replenishment system. These tools are expected to improve on-shelf availability of essential items and reduced stock outs, which will lower inventory shrinks and markdowns. This work also supports more efficient logistics planning, which is a critical benefit considering the scale and the complexity of our supply chain. Together, these initiatives continue to enhance the in-store experience for our customers, while providing efficiencies in our store for our store associates. Our assortment and value, we expanded Loblaw's private label products across all Canadian operations and stores, providing customers with broader access to trusted, high-quality and affordable essentials. In our international operations, we expanded the assortment of our OSO good brand, strengthening both value and consistency while reflecting local customer preferences. We continue to invest in our store network, infrastructure and logistics capabilities. In Canada, we completed the first phase of the significant renovation of our flagship North Mart store in Cali. North Mart's new fresh departments, including a bakery, deli, made to order pizza and fresh meat selection are improving access to the items our customers want with a convenient and easy-to-shop layout. We also made a significant investment in our pharmacy in AcalaNorthMart store. We invested in expanding access essential medications and health care services for residents across Egalet and the Baffin Island region. Across our international markets, construction is nearing completion, at our new flagship [ Caseless ] store in Guam, thoughtfully designed to reflect customer feedback and deliver an even better shopping experience. With expanded assortment, greater convenience and the value customers count on, this new store presents our continued investment on the island and a commitment to putting people first. We expect to open our doors and welcome customers into this new space later this fall. In the Caribbean, the completion and expansion of our new store in Virgin Gorda, it's marked a really important milestone for supporting growing demand in the British Virgin Islands. After a 14th month revitalization project, the new store stands as a modern customer-focused shopping destination designed to enhance convenience, comfort and accessibility for all residents. The sales floor has doubled in size creating a more modern, comfortable and navigable layout, complemented by 5 additional checkout lanes, expanded parking and a new shaded picking area. We upgraded the store's fresh food offering, including direct biweekly shipments that ensure higher quality produce, improve cold chain logistics and a broader assortment of chilled and frozen food. In Alaska, we opened a second Alaska Commercial store in Ukiavik, providing a wider selection of food and household items and improve service to the community. This store provides improved food security in America's most northern community and builds upon AC's 45-year history in [indiscernible] Gavi. AC also renovated our Nonstore including a large expansion in our produce and meat departments. The addition of self-checkout in capacity for storing products shipped on the summer barge and a better store flow for customers to shop to get what they need. Our logistic capabilities remain a key strength of our business. North Star Air added aircraft capacity and opened a new 37,000 square foot hanger in Thunder Bay last summer, improving reliability, resilience and service across Northern Canada. These investments are essential to ensuring consistent access to food and essential items in some of the most remote communities that we serve. We also continue to advance our data and technology road map, investments in pricing, analytics, merchandising tools and supply chain systems are enabling better, faster decisions that we can make across the business. In international operations, implementation work is underway on a new warehouse management system, which will further improve product flow and efficiency as it comes online. Investing in our operations and technology is essential to ensure we remain competitive, but our people remain at the very heart of everything we do. Last fall, we launched North West's new internal indigenous development program, welcoming 9 new recruits and employees and recognizing for their strong work and all the contributions that they've made to our company. The program is designed to deepen operational knowledge and strengthen leadership capability through tailored training and hands-on experience, ensuring participants are well prepared to step into future opportunities as they arise within Northwest. Compass, our learning and development platform continue to support operational consistency, leadership, capability and career development across the organization. Adoption among employees continues to grow, reinforcing clear processes, expectations and accountability at every level. During times of crisis, our employees are the forefront of how we support the communities we serve. This was evident in our response to natural disasters, including wildfire evacuations in Northern Canada and other severe weather events across our markets. Throughout the network, store team stepped up in a way that is, I would say, unprecedented, but very precedented. They kept our shelves stocked under challenging conditions, supporting first respondents and emergency personnel and ensuring families and evacuees had access to food, water, infant supplies, medications, financial services and other everyday essentials when they were needed the most. Behind the scenes, our logistics and supply chain teams worked around the clock to safely move critical products into impacted communities, navigating disruptive transportation routes, rapidly changing conditions and complex operational challenges to maintain reliable access to essential goods. At the same time, support teams partnered closely with vendors and supplier partners to coordinate product donations and emergency shipments, helping ensure evacuees and affected residents receive the items they needed most. These efforts reflected the dedication, resilience and collaboration of teams across the organization and reinforce the important role we pay in helping Northern and remote communities stay supported during times of crisis. Sustainability and responsible business practices remain essential to how we operate. Our ESG framework is focused on people, planet and partnership and continue to guide our priorities. In 2025, we expanded our indigenous supplier partnerships, advanced indigenous cultural safety training across leadership levels and continued supporting community health, nutrition and educational initiatives through our Healthy Horizons Foundation. Through HHS's partnership with BRP, we introduced a second Northyclub after-school program, Lalo Saskatchewan. The program has been in place since the start of the new year. and it's already having a significant positive impact on the youth participants, and we look forward to launching that program more so and other communities across the north. Throughout all of this work, our core principles customer-driven, passion, trust, enterprise, accountability and personal balance remain constant. They guide how we make decisions, how we lead, and how we serve the communities that rely on us. Earlier today, we released our Q1 results, our international operations led the way with a 4.3% same-store sales gain, which more than offset the impact of closing our Chalinpego, Casula store and Guara in advance of the opening of our new flagship store in Agana that I highlighted earlier. In our Canadian operations, our first quarter results were negatively impacted by the elimination of the INWIT Child First initiative food voucher program in Canada last year, which was a key factor that contributed to a 0.9% decrease in same-store sales. On a positive note, earnings in the quarter were impacted by gross profit rate improvements driven by our Next 100 work and lower expenses from a gain in the sale of our ChallenPego Guam store, which contributed to a 7.5% increase in EBIT and a 5.4% increase in net earnings. More information on our first quarter results is provided in our report to shareholders, which is available on our website. Looking ahead, our priorities continue to focus on executing the Next 100 by strengthening our operational resilience, investing in our people, stores and systems and delivering sustainable long-term value for our customers and shareholders. While the environment remains uncertain in the near term, we are confident in the fundamentals of our business and the strength of our strategy. To our shareholders, thank you for your continued trust and confidence. To our customers and community partners, thank you for allowing us to serve your communities. And to all North Westers, thank you for the dedication and care you bring to your work every day. The work ahead is important and challenging, but it also is filled with opportunity. Together, we are building a stronger North West company. Thank you.

Thank you, Dan. We will now watch a video highlighting the past year. [Presentation]

We will now take questions and comments from our shareholders. Alexis, have we received any questions?

There are no questions, Mr. Chair.

There being no questions, I now declare the question and comment session closed. On behalf of management and the Board of Directors, I would like to thank you all for attending today.