MIRA INFORM REPORT

Report Date :

14.02.2013

IDENTIFICATION DETAILS

Name :	LOBLAW COMPANIES LIMITED
Registered Office :	1 President’s Choice Circle Brampton, Ontario, Canada L6Y 5S5
Country :	Canada
Financials (as on) :	31.12.2011
Year of Establishment :	1919
Legal Form :	Corporation for Profit
Line of Business :	Food distributor.
No. of Employees :	135,000

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
Litigation :	--

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Canada	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

CANADA - ECONOMIC OVERVIEW

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economiccrisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada''s major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector''s tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010 and 2011 and plans to balance the budget by 2015. In addition, the country''s petroleum sector is rapidly becoming an even larger economic driver with Alberta''s oil sands significantly boosting Canada''s proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

Source : CIA

GEOPOLITICS – CANADA
POLITICAL DATA	ECONOMIC DATA
Form of Government: Federal Economic Risk: Nil	Currency: 100.00 CAD = 101.409 USD Branch Situation: Stable

IDENTIFICATION
Legal Name:	LOBLAW COMPANIES LIMITED
Trade Name:	LOBLAW
Legal Address	1 President’s Choice Circle Brampton, Ontario, Canada L6Y 5S5
Operative Address	1 President’s Choice Circle Brampton, Ontario, Canada L6Y 5S5
Telephone:	+ 1 905-459-2500	Document Number :	NA
Fax:	+ 1 905-861-2387	Legal Form:	Corporation for Profit
Email:	customerservice@loblaws.ca	Registered in:	Ontario
Website:	www.loblaw.ca	Date Created:	1919
Manager:	Galen G. Weston - Chairman	Date Incorporated:	1956
Staff:	135,000	Stock:	NA
		Value:	NA
Activity:	Food distributor.

BANKS
Name of the Bank	RBC; CIBC
BUSINESS
HISTORY
	The company was founded in 1919 under the name Loblaw Groceterias. In 1953, Loblaw Groceterias acquired majority control of Loblaw Inc., the former American branch of the company with stores in New York State, Pennsylvania, and Ohio, through a purchase of stock from George Weston Limited. That same year, Loblaw also bought the Power Supermarkets chain of Toronto. Loblaw Companies Limited was incorporated in 1956 as holding company for Loblaw Groceterias and the recently acquired holdings south of the border. By the mid 1980s, Loblaw Companies Limited had become Canada’s largest supermarket retailer. 1998 also saw Loblaw become the first Canadian food retailer to extend its product mix into the realm of banking with the launch of President's Choice Financial. Promoted as a no-hassle, no-fee form of personal banking, conveniently located where you do your grocery shopping, PC Financial kioks and automatic tellers began springing-up in supermarkets across the country. While Loblaw provided the branding, the service-end was made possible through a partnership with the Canadian Imperial Bank of Commerce, one of the country's biggest banks. In 2006, Loblaw and Canadian fashion designer Joe Mimran teamed up to launch Joe Fresh. Promoted as chic but highly affordable clothing, the new line sold in supermarket and superstore aisles. In July 2009, Loblaw extended its presence in the ethnic retail market with its announced purchase of T & T Supermarket Inc., Canada's largest chain of Asian food stores, for some $225 million - $191 million in cash and the rest in preferred shares. On November 30, 2011, the company's much anticipated urban flagship store, Loblaws at Maple Leaf Gardens.
PRINCIPAL ACTIVITY
	Loblaw Companies Limited (Loblaw) is Canada’s largest food distributor and a leading provider of drugstore, general merchandise and financial products and services.
Products/Services description:
	Loblaw concentrates on food retailing and is increasing its offering of non-food products and services, providing consumers with shopping for everyday household needs. The Company expanded its pharmacy, photo developing, President’s Choice Financial and other services. In addition, the company broadened its house wares and home accessories sections, opened fitness centers, launched a number of innovative and attractively priced general merchandise items under the PC label and began to expand its Western-based network of gas bars into Eastern Canada.
Sales are:
	Retail
Brands:
	The company operates with the following brands: LOBLAWS, LOBLAW GREAT FOOD, ZEHRS GREAT FOOD, ZEHRS MARKETS, T&T SUPERMARKETS, CALU-MART, PROVIGO, FORTINOS, INDEPENDENT, EXTRAFOODS, MAXI, SUPERSTORE, PRESTO, NG CASH & CARRY, among others.
Clients:
	The company sales its products to the public mostly.
Suppliers:
	Huayu Electrical Appliance Group Co., Ltd. No. 168, North Huancheng Road, Zhouxiang Development Zone, Cixi, Ningbo, Zhejiang, China, 315324
Operations area:
	National, Local
The company imports from Asia, among others.
The company does not export
Trade References:
	We could not obtain suppliers information from North America or near regions for us to check trade references.
The subject employs 135,000 employee(s)
Comments on staff:
	135,000 full-time and part-time employees across more than 1,000 corporate and franchise stores from coast to coast.
PAYMENTS
	regular
LOCATION
Headquarters
	1 President’s Choice Circle Brampton, Ontario, Canada L6Y 5S5
Branches:
	The Company’s retailing operations include four geographic regions: Western Canada, Ontario, Quebec and Atlantic Canada. Number Of Stores The Company’s stores include Atlantic SaveEasy 56, Atlantic Superstore 50, Dominion 15 (in Newfoundland and Labrador), Extra Foods 90, Fortinos 18, Loblaws 98, Lucky Dollar Foods 102, Maxi (including Maxi & Cie.) 85, No Frills 110, Provigo 138, The Real Canadian Superstore 57, The Real Canadian Wholesale Club 32, Shop Easy Foods 56, SuperValu 29, Valu-mart 71, Your Independent Grocer 54, Zehrs Markets 58 and Cash & Carry and other banners 578.

Shareholders - Manager - Related Companies
Listed at the stock exchange:
	NO
Shareholders Parent Company(ies):
	Loblaw Companies Limited is a Canadian public company incorporated in 1956 The Company’s parent is George Weston Limited, which owns approximately 63% of the Company. The Company’s ultimate parent is Wittington Investments, Limited. The remaining common shares are widely held.
Management:
	Loblaw Management Board Galen G. Weston Executive Chairman Vicente Trius President Sarah R. Davis Chief Financial Officer Mark C. Butler Executive Vice President, Conventional Division Robert Chant Senior Vice President, Corporate Affairs and Communication Barry K. Columb President, PC Bank Gordon A.M. Currie Executive Vice President and Chief Legal Officer Grant Froese Executive Vice President, Hard Discount and Superstore Judy A. McCrie Executive Vice President, Human Resources and Labour Relations Peter McLaughlin Executive Vice President, Emerging Business Peter K. McMahon Executive Vice President, Chief Operating Officer Garry Senecal Executive Vice President, Division Support and Brands

Financials - COMMERCIAL TRENDS AND FORECAST
The subject is a public company traded at the stock exchange. Please find enclosed the financial statements.
We a company´s female operator, who refused to provide us any financial data on grounds of confidentiality.
Currency	DATE
USD	2010
Turnover	26,060,053,240
The cash flow is	NORMAL

Currency	DATE
USD	2009
Turnover	24,087,650,000
The cash flow is	NORMAL

Legal Filings

The sources consulted record detrimental legal or labor information.

UFCW Canada Sets Strike Deadline at Loblaw Companies Limited Grocery Stores if No Settlement Reached by Early October

09/11/2010

Four days of talks between UFCW Canada and Loblaw Companies Limited wound up on Sept. 11, 201 with some progress on key issues but no settlement in the prolonged negotiations that have been underway since April. UFCW local unions 1977, 1000A and 175 and 633 say there are major issues that need to be resolved if a strike is to be avoided. The union s bargaining committee set a strike deadline of 12:01 a.m., October 8, if no agreement is reached and ratified by the membership at Loblaws, Zehrs, Real Canadian Superstores and Great Food stores, all subsidiaries of Loblaw Companies Limited.

Rating
Local credit bureau gave a Good credit rate. The company is in Good Standing. This means that all local and federal taxes were paid on due date.
Final Opinion
	The company was founded in 1919 under the name Loblaw Groceterias. In 1953, Loblaw Groceterias acquired majority control of Loblaw Inc., the former American branch of the company with stores in New York State, Pennsylvania, and Ohio, through a purchase of stock from George Weston Limited. Loblaw Companies Limited was incorporated in 1956 as holding company for Loblaw Groceterias and the recently acquired holdings south of the border. The Company’s parent is George Weston Limited, which owns approximately 63% of the Company. The Company’s ultimate parent is Wittington Investments, Limited. The remaining common shares are widely held. Loblaw Companies Limited is a large size public company, which is th Canada’s largest food distributor and a leading provider of drugstore, general merchandise and financial products and services. Regarding legal fillings found, we consider there would not be negative outcomes affecting the company´s profitability. According to the financial information obtained the company’s profitability is correct and its indebtenes is controlled.

SUMMARY
FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	CORRECT	Public	YES
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	NORMAL

APPENDIX
Position
	Operator
Comments
	The person interviewed informed that the legal name provided Loblaw Inc. does not exist and that the main company is Loblaw Companies Limited. However, she refused to provide the information requested on ground of confidentiality.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.85
UK Pound	1	Rs.84.42
Euro	1	Rs.72.40

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.