METRO reports growth of 27.8% in 2012 fourth quarter adjusted net earnings per share(1)

METRO reports growth of 27.8% in 2012 fourth quarter adjusted net earnings per 
share(1) 
MONTREAL, Nov. 14, 2012 /CNW Telbec/ - METRO INC. (TSX: MRU) announced its 
results today for the fourth quarter and fiscal year ended September 29, 2012. 
2012 FOURTH QUARTER HIGHLIGHTS 


    --  13-week quarter versus 12 weeks in 2011
    --  Net earnings of $145.1 million, or $1.46 per share, up 75.9%
    --  Adjusted net earnings((1)) of $123.4 million, or $1.24 per
        share, up 27.8%
    --  Sales of $2,943.7 million, up 11.1%
    --  Same store sales up 1.1%
    --  Declared dividend of $0.215 per share, up 11.7%

FISCAL 2012 HIGHLIGHTS
    --  53-week fiscal year versus 52 weeks in 2011
    --  Net earnings of $489.3 million, or $4.84 per share, up 27.7%
    --  Adjusted net earnings((1)) of $470.6 million, or $4.65 per
        share, up 18.3%
    --  Sales of $12,010.8 million, up 5.4%
    --  Same store sales up 1.2%
                                                   Fiscal Year

(Millions of dollars,                                          Change %
except for net earnings       2012                2011
per share/EPS)           (13 weeks)       % (12 weeks)       %

Sales                       2,943.7   100.0    2,649.5   100.0     11.1

EBITDA((1))                   246.3     8.4      166.8     6.3     47.7

Adjusted EBITDA((1))
excluding share of
earnings from our
investment in
Alimentation Couche-Tard      209.2     7.1      172.0     6.5     21.6

Net earnings                  145.1     4.9       84.4     3.2     71.9

Adjusted net earnings(
(1))                          123.4     4.2       98.9     3.7     24.8

Fully diluted EPS              1.46 —       0.83 —     75.9

Adjusted fully diluted
EPS((1))                       1.24 —       0.97 —     27.8
                                                                       
                                                   Fiscal Year

(Millions of dollars,                                          Change %
except for net earnings        2012               2011
per share/EPS)           (53 weeks)       % (52 weeks)       %

Sales                      12,010.8   100.0   11,396.4   100.0      5.4

EBITDA((1))                   894.3     7.4      766.3     6.7     16.7

Adjusted EBITDA((1))
excluding share of
earnings from our
investment in
Alimentation Couche-Tard      821.7     6.8      744.4     6.5     10.4

Net earnings                  489.3     4.1      392.7     3.4     24.6

Adjusted net earnings(
(1))                          470.6     3.9      407.2     3.6     15.6

Fully diluted EPS              4.84 —       3.79 —     27.7

Adjusted fully diluted
EPS((1))                       4.65 —       3.93 —     18.3



PRESIDENT'S MESSAGE

"We are very pleased with our strong fourth quarter and fiscal 2012 
performance, resulting from our team's excellent execution, effective cost 
control, and sustained investments in our network. While we expect competitive 
activity will remain strong in 2013, we will continue((2)) to emphasize our 
customer first strategies to drive( )our future growth," stated Eric R. La 
Flèche, President and Chief Executive Officer.

PRESS RELEASE

This press release sets out the financial position and consolidated results of 
METRO INC. on September 29, 2012. It should be read in conjunction with the 
unaudited interim condensed consolidated financial statements and accompanying 
notes in this press release.

As of September 25, 2011, the Corporation has prepared its financial 
statements according to International Financial Reporting Standards (IFRS). 
The unaudited interim condensed consolidated financial statements for the 
13-week and 53-week periods ended September 29, 2012 have been prepared by 
management in accordance with IAS 34 "Interim Financial Reporting" and IFRS 1 
"First-time Adoption of International Financial Reporting Standards". They 
should be read in conjunction with the audited annual consolidated financial 
statements and accompanying notes which were prepared in accordance with 
Canadian Generally Accepted Accounting Principles (GAAP) and the Management's 
Discussion & Analysis, including the IFRS conversion plan, presented in the 
Corporation's 2011 Annual Report. Given the change in accounting standards, 
they should be read in conjunction with the following information as well:

a) the unaudited interim condensed consolidated financial statements
   for the 12-week period ended December 17, 2011, particularly the
   explanations on the transition to IFRS on September 26, 2010 (note
   2), significant accounting policies (note 3) and additional annual
   information requirements under IFRS (note 13) since all of this
   information is not included in this press release;

b) the explanations on the transition to IFRS on September 24, 2011
   (note 2) and new accounting policies (note 3) in this press release.

Unless otherwise stated, this press release is based upon information as at 
November 2, 2012 and all figures are presented according to IFRS.

SALES

Sales in the fourth quarter and fiscal 2012 reached $2,943.7 million and 
$12,010.8 million, up 11.1% and 5.4% respectively compared to sales of 
$2,649.5 million and $11,396.4 million for the corresponding periods last 
year. The 2012 fiscal year was 53 weeks long, with one more week to the year 
and fourth quarter than last year. Excluding this extra week, fiscal 2012 and 
fourth quarter sales were up 3.4% and 2.5% respectively. Adonis stores and 
distributor Phoenicia's fourth quarter and fiscal 2012 sales contributed $63.3 
million and $236.6 million respectively to the Corporation's sales. Same store 
sales were up 1.1% for the fourth quarter of 2012 compared to the 
corresponding period in 2011. We experienced very modest inflation in the 
fourth quarter of 2012, but lower than the Consumer Price Index reported by 
Statistics Canada.

EARNINGS BEFORE FINANCIAL COSTS, TAXES, DEPRECIATION AND AMORTIZATION 
(EBITDA)((1) )

EBITDA adjustments((1))
                                          Fiscal Year              
                        2012                        2011          Change
                      (13 weeks)                 (12 weeks)         %

(Millions
of dollars,
unless                       EBITDA/                    EBITDA/
otherwise                      Sales                      Sales
indicated)   EBITDA    Sales     (%)    EBITDA    Sales     (%)   EBITDA

EBITDA        246.3  2,943.7     8.4     166.8  2,649.5     6.3     47.7

Closure     —  —              20.5  —                 
costs

Couche-Tard  (25.0)  —           —  —                 
dilution
gain

Adjusted      221.3  2,943.7     7.5     187.3  2,649.5     7.1     18.2
EBITDA

Share of     (12.1)  —            (15.3)  —                 
earnings in
Couche-Tard

Adjusted      209.2  2,943.7     7.1     172.0  2,649.5     6.5     21.6
EBITDA
excluding
share of
earnings
                                                                   
                                          Fiscal Year              
                        2012                        2011          Change
                      (53 weeks)                 (52 weeks)         %

(Millions
of dollars,
unless                       EBITDA/                    EBITDA/
otherwise                      Sales                      Sales
indicated)   EBITDA    Sales     (%)    EBITDA    Sales     (%)   EBITDA

EBITDA        894.3 12,010.8     7.4     766.3 11,396.4     6.7     16.7

Closure     —  —              20.5  —                 
costs

Couche-Tard  (25.0)  —           —  —                 
dilution
gain

Adjusted      869.3 12,010.8     7.2     786.8 11,396.4     6.9     10.5
EBITDA

Share of     (47.6)  —            (42.4)  —                 
earnings in
Couche-Tard

Adjusted      821.7 12,010.8     6.8     744.4 11,396.4     6.5     10.4
EBITDA
excluding
share of
earnings

EBITDA((1)) for the fourth quarter of 2012 was $246.3 million, up 47.7% from 
$166.8 million for the same quarter last year. EBITDA((1)) for fiscal 2012 was 
$894.3 million, up 16.7% from $766.3 million for fiscal 2011.

In the fourth quarters of 2012 and 2011, we respectively recorded a 
non-recurring gain of $25.0 million before taxes and a non-recurring loss of 
$20.5 million before taxes.

In August 2012, Alimentation Couche-Tard issued 7.3 million shares for net 
proceeds of approximately $330 million to finance part of its acquisition of 
Statoil Fuel & Retail ASA. As the Corporation did not participate in this 
share issue, our interest in Couche-Tard decreased from 11.6% to 11.1%. This 
dilution and our share in Couche-Tard's increased value as a result of the 
share issue amount to a deemed disposition and deemed proceeds of disposition 
of part of our investment for a net pre-tax gain of $25.0 million.

In the fourth quarter of 2011, we closed our meat processing plant in Montreal 
and a grocery warehouse in Toronto to improve operational efficiency. Closure 
costs were $20.5 million before taxes.

Excluding these non-recurring items, adjusted EBITDA((1)) for the fourth 
quarter and fiscal 2012 were $221.3 million and $869.3 million respectively. 
Adjusted EBITDA((1)) for the 2011 fourth quarter and fiscal year were $187.3 
million and $786.8 million respectively.

Adjusted EBITDA((1)) for the fourth quarter and fiscal 2012 were up 18.2% and 
10.5% respectively over those for the corresponding periods of fiscal 2011.

Our share of earnings in Alimentation Couche-Tard, excluding the dilution gain 
of $25.0 million before taxes, were $12.1 million for the fourth quarter and 
$47.6 million for fiscal 2012, versus $15.3 million and $42.4 million for the 
corresponding periods of fiscal 2011. In its two last quarterly reports, 
Couche-Tard stated that non-recurring items were included in those quarters 
and that excluding them had reduced the adjusted net earnings((1)) for its 
fourth quarter ended April 29, 2012 by $US 15.4 million and increased its 
adjusted net earnings((1)) for the first quarter ended July 22, 2012 by $US 
70.1 million.

Excluding the non-recurring items and our share of earnings in Alimentation 
Couche-Tard, the adjusted EBITDA((1)) for the fourth quarter and fiscal 2012 
were $209.2 million and $821.7 million respectively, or 7.1 % and 6.8% of 
their respective sales. Adjusted EBITDA((1)) for the corresponding periods 
last year were $172.0 million and $744.4 million respectively, or 6.5% of 
sales for both periods.

Adjusted EBITDA((1)), excluding our share of earnings in Alimentation 
Couche-Tard, for the fourth quarter and fiscal 2012 were up 21.6% and 10.4% 
respectively over those for the corresponding periods of fiscal 2011.

The significant increase in adjusted EBITDA((1)) for the fourth quarter of 
2012 compared to the same quarter of 2011 is also attributable to the results 
for the 53(rd) week of 2012 when several fixed costs were no longer in effect.

Gross margins for the fourth quarter and fiscal 2012 were 18.5% and 18.4% 
respectively, up from 17.7% and 18.1% for the corresponding periods of 2011. 
Our merchandising strategies, the decrease of in-store losses, and the Adonis 
stores contributed to these increases. In addition, in the fourth quarter of 
2011, a reclassification of approximately $10 million for the first three 
quarters was made between salaries at the expense level and the cost of goods 
sold. Excluding this reclassification, the gross margins in the fourth quarter 
of 2011 was 18.1%.

DEPRECIATION AND AMORTIZATION AND NET FINANCIAL COSTS

Total depreciation and amortization expenses for the fourth quarter and fiscal 
2012 amounted to $41.8 million and $183.9 million respectively compared to 
$41.5 million and $179.3 million for the corresponding periods last year. 
Fourth quarter net financial costs totalled $11.7 million in 2012 versus $9.4 
million last year, while fiscal 2012 net financial costs totalled $46.4 
million versus $41.5 million last year. Interest rates averaged 4.2% for 
fiscal 2012 and the corresponding period last year.

INCOME TAXES

The fourth quarter and fiscal 2012 income tax expenses of $47.7 million and 
$174.7 million represented effective tax rates of 24.7% and 26.3% 
respectively. The fourth quarter and fiscal 2011 income tax expenses of $31.5 
million and $152.8 million represented effective tax rates of 27.2% and 28.0% 
respectively. On June 20, 2012, the Ontario Legislative Assembly adopted the 
budget tabled on March 27, 2012, thereby deferring the scheduled reductions in 
corporate tax rates of 0.5% on July 1, 2012 and of 1.0% on July 1, 2013 until 
an expected balanced budget in 2017-2018 is attained. With these reductions in 
tax rates being suspended and deferred conditionally, we have canceled in the 
third quarter of 2012, $3.0 million of deferred taxes in our statement of 
financial position for tax savings recorded in prior periods related to these 
reductions in tax rates, and recorded an equivalent non-recurring income tax 
expense. Excluding this non-recurring tax expense, our effective tax rate for 
fiscal 2012 was 25.8%.

The tax rates for the 2012 periods were lower than those for the corresponding 
periods last year due to two federal corporate tax rate reductions of 1.5% 
each effective January 1, 2011 and 2012, as well as a 0.5% reduction in 
Ontario's effective July 1, 2011.

NET EARNINGS

Net earnings for the fourth quarter of 2012 were $145.1 million, an increase 
of 71.9% over net earnings of $84.4 million for the same quarter of 2011. 
Fully diluted net earnings per share rose 75.9% to $1.46 from $0.83 last year. 
Excluding the Couche-Tard dilution gain of $25.0 million before taxes recorded 
in the fourth quarter of 2012 as well as the closure costs of $20.5 million 
before taxes in the corresponding quarter of 2011, our adjusted net 
earnings((1)) for the fourth quarter of 2012 were $123.4 million and our 
adjusted fully diluted net earnings per share((1)) were $1.24, for increases 
of 24.8% and 27.8% respectively.

The significant increase in adjusted net earnings((1)) for the fourth quarter 
of 2012 over the same quarter of 2011 is also attributable to the results for 
the 53(rd) week of 2012 when several fixed costs were no longer in effect.

Net earnings for fiscal 2012 reached $489.3 million, up 24.6% from $392.7 
million last year. Fully diluted net earnings per share were $4.84 compared to 
$3.79 last year, an increase of 27.7%. Excluding the non-recurring tax expense 
of $3.0 million and the Couche-Tard dilution gain of $25.0 million before 
taxes recorded in 2012 as well as the closure costs of $20.5 million before 
taxes in 2011, our adjusted net earnings((1)) were $470.6 million and our 
adjusted fully diluted net earnings per share((1)) were $4.65, increases of 
15.6% and 18.3% respectively.

Net earnings adjustments  
                                    Fiscal Year                         
                       2012                   2011            Change (%)
                    (13 weeks)            (12 weeks)
                            Fully                 Fully
              (Millions   diluted   (Millions   diluted              Fully
                     of      EPS          of       EPS         Net diluted
               dollars) (Dollars)    dollars) (Dollars)   earnings     EPS

Net earnings      145.1      1.46        84.4      0.83       71.9    75.9

Closure costs                      
after taxes     —   —        14.5      0.14                   

Couche-Tard                        
dilution gain
after taxes      (21.7)    (0.22)     —   —                   

Non-recurring                      
tax expense     —   —     —   —                   

Adjusted net                       
earnings((1))     123.4      1.24        98.9      0.97       24.8    27.8
                                                                    
                                    Fiscal Year                 
                       2012                  2011             Change (%)
                    (53 weeks)            (52 weeks)
                            Fully                 Fully
              (Millions   diluted   (Millions   diluted              Fully
                     of      EPS           of      EPS         Net diluted
               dollars) (Dollars)    dollars) (Dollars)   earnings     EPS

Net earnings      489.3      4.84       392.7      3.79       24.6    27.7

Closure costs                      
after taxes     —   —        14.5      0.14                   

Couche-Tard                        
dilution gain
after taxes      (21.7)    (0.22)     —   —                   

Non-recurring                      
tax expense         3.0      0.03     —   —                   

Adjusted net                       
earnings((1))     470.6      4.65       407.2      3.93       15.6    18.3

QUARTERLY HIGHLIGHTS  

(Millions of dollars, unless otherwise        2012       2011 Change
indicated)                              (53 weeks) (52 weeks)      %

Sales                                                               

Q1((3))                                    2,711.7    2,622.5    3.4

Q2((3))                                    2,651.9    2,557.5    3.7

Q3((4))                                    3,703.5    3,566.9    3.8

Q4((5))                                    2,943.7    2,649.5   11.1

Fiscal                                    12,010.8   11,396.4    5.4

Net earnings                                                   

Q1((3))                                      103.7       95.5    8.6

Q2((3))                                       96.1       85.7   12.1

Q3((4))                                      144.4      127.1   13.6

Q4((5))                                      145.1       84.4   71.9

Fiscal                                       489.3      392.7   24.6

Adjusted net earnings ((1))                                    

Q1((3))                                      103.7       95.5    8.6

Q2((3))                                       96.1       85.7   12.1

Q3((4))                                      147.4      127.1   16.0

Q4((5))                                      123.4       98.9   24.8

Fiscal                                       470.6      407.2   15.6

Fully diluted net earnings per share
(Dollars)                                                      

Q1((3))                                       1.01       0.91   11.0

Q2((3))                                       0.94       0.82   14.6

Q3((4))                                       1.43       1.23   16.3

Q4((5))                                       1.46       0.83   75.9

Fiscal                                        4.84       3.79   27.7

Adjusted fully diluted net earnings per
share((1)) (Dollars)                                           

Q1((3))                                       1.01       0.91   11.0

Q2((3))                                       0.94       0.82   14.6

Q3((4))                                       1.46       1.23   18.7

Q4((5))                                       1.24       0.97   27.8

Fiscal                                        4.65       3.93   18.3

((3) ) 12 weeks      

((4))  16 weeks      

((5))  2012 - 13 weeks, 2011 - 12 weeks

First, second and third quarter sales for 2012 reached $2,711.7 million, 
$2,651.9 million and $3,703.5 million respectively, up 3.4%, 3.7% and 3.8% 
from $2,622.5 million, $2,557.5 million and $3,566.9 million for the 
corresponding periods last year. Adonis stores and distributor Phoenicia sales 
contributed $33.0 million to the Corporation's sales for eight weeks in the 
first quarter, $59.0 million for the second quarter and $81.3 million for the 
third quarter of 2012. Same store sales were up 1.7% over those for 2011 in 
the first quarter, 1.0% in the second quarter and 1.0% in the third quarter of 
2012. We experienced moderate inflation in our food basket in the first 
quarter which was, however, lower than in the previous quarter and lower than 
levels reported by Statistics Canada. We experienced modest impact from 
inflation in the second quarter of 2012 albeit lower than in the previous 
quarter. During the third quarter of 2012, we experienced very modest 
inflation which was lower than in the first two quarters.

Fourth quarter sales for 2012 reached $2,943.7 million, up 11.1% from $2,649.5 
million last year. Excluding the 53(rd) week of fiscal 2012, the sales 
increase for the fourth quarter was 2.5%. Adonis stores and distributor 
Phoenicia sales contributed $63.3 million to 2012 fourth quarter sales. During 
the fourth quarter of 2012, we experienced very modest inflation similar to 
the previous quarter.

Net earnings for the first and second quarters of 2012 were $103.7 million and 
$96.1 million compared to $95.5 million and $85.7 million for the 
corresponding quarters last year, increases of 8.6% and 12.1%. Fully diluted 
net earnings per share rose 11.0% and 14.6% to $1.01 and $0.94 from $0.91 and 
$0.82 last year.

Net earnings for the third quarter of 2012 were $144.4 million, up 13.6% from 
$127.1 million for the corresponding quarter of 2011. Fully diluted net 
earnings per share for the third quarter of 2012 were $1.43, up 16.3% from 
$1.23 for the same quarter of 2011. Excluding the non-recurring tax expense of 
$3.0 million, our adjusted net earnings((1)) were $147.4 million and our 
adjusted fully diluted net earnings per share((1)) were $1.46, up 16.0% and 
18.7% respectively.

Net earnings for the fourth quarter of 2012 were $145.1 million versus $84.4 
million for the corresponding quarter of 2011, an increase of 71.9%. Fully 
diluted net earnings per share were $1.46 versus $0.83 last year, an increase 
of 75.9%. Excluding the Couche-Tard dilution gain of $25.0 million before 
taxes recorded in the fourth quarter of 2012 as well as the closure costs of 
$20.5 million before taxes in the corresponding quarter of 2011, our adjusted 
net earnings((1)) for the fourth quarter of 2012 were $123.4 million and our 
adjusted fully diluted net earnings per share((1)) were $1.24, for increases 
of 24.8% and 27.8% respectively. The significant increase in adjusted 
EBITDA((1)) for the fourth quarter of 2012 is also attributable to the results 
for the 53(rd) week of 2012 when several fixed costs were no longer in effect.
                                         2012                                         2011

(Millions of                                             
dollars)           Q1       Q2      Q3      Q4   Fiscal         Q1       Q2       Q3      Q4  Fiscal

Net earnings    103.7     96.1   144.4   145.1    489.3       95.5     85.7    127.1    84.4   392.7

Closure costs                                            
after taxes   —  — — —  —    —  —  —    14.5    14.5

Couche-Tard                                              
dilution gain
after taxes   —  — —  (21.7)   (21.7)    —  —  — — —

Non-recurring                                            
tax expense   —  —     3.0 —      3.0    —  —  — — —

Adjusted net                                             
earnings((1))   103.7     96.1   147.4   123.4    470.6       95.5     85.7    127.1    98.9   407.2
                                                                                              
                                         2012                                         2011

(Dollars and                                             
per share)         Q1       Q2      Q3      Q4   Fiscal         Q1       Q2       Q3      Q4  Fiscal

Fully diluted                                            
net earnings     1.01     0.94    1.43    1.46     4.84       0.91     0.82     1.23    0.83    3.79

Closure costs                                            
after taxes   —  — — —  —    —  —  —    0.14    0.14

Couche-Tard                                              
dilution gain
after taxes   —  — —  (0.22)   (0.22)    —  —  — — —

Non-recurring                                            
tax expense   —  —    0.03 —     0.03    —  —  — — —

Adjusted                                                 
fully diluted
net earnings(
(1))             1.01     0.94    1.46    1.24     4.65       0.91     0.82     1.23    0.97    3.93

CASH POSITION 
OPERATING ACTIVITIES

Operating activities generated cash flows of $126.8 million in the fourth 
quarter and $546.1 million over fiscal 2012, compared to $183.3 million and 
$542.4 million respectively in the corresponding periods of fiscal 2011. This 
decrease is due primarily to net changes in non-cash working capital items 
that required greater outflows in the fourth quarter of 2012 compared to last 
year.

INVESTING ACTIVITIES 
Investing activities required outflows of $69.2 million in the fourth quarter 
of 2012 and $357.0 million in fiscal 2012 versus $53.0 million and $226.7 
million in the corresponding periods of 2011. The increase in funds used in 
the fourth quarter of 2012 compared to that of 2011 is due primarily to 
greater fixed asset acquisitions and disposals of a net $19.3 million in 2012 
and greater business acquisitions of $5.8 million in 2011. The increase in 
funds used during fiscal 2012 compared to fiscal 2011 is due primarily to 
greater business acquisitions in 2012 compared to 2011, attributable to the 
acquisition of Adonis stores and their distributor Phoenicia for a cash 
consideration of $146.8 million (net of cash acquired totalling $3.0 million) 
as well as increased acquisitions of $80.8 million of fixed and intangible 
assets.

During fiscal 2012, the Corporation and its retailers invested $281.8 million 
in our retail network, for a gross expansion of 383,200 square feet and a net 
expansion of 34,400 square feet or 0.2%. Major renovations and expansions of 
19 stores were completed, 7 new stores were opened and 11 stores were closed.

FINANCING ACTIVITIES

Financing activities required outflows of $82.7 million and $371.3 million in 
the fourth quarter and fiscal 2012 versus 2011 fourth quarter and fiscal year 
outflows of $75.3 million and $274.9 million. The increase in funds used in 
the fourth quarter of 2012 compared to that of 2011 is due to a $57.5 million 
increase in net debt repayment and a $40.1 million decrease in the redemption 
of shares. The increase in funds used during fiscal 2012 compared to fiscal 
2011 is due primarily to a $26.7 million increase in the redemption of shares 
and a $60.1 million increase in net debt repayment.

FINANCIAL POSITION

We do not anticipate((2)) any liquidity risk and consider our financial 
position at the end of the fourth quarter of fiscal 2012 as very solid. We had 
an unused authorized revolving credit facility of $284.6 million.

At the end of the fourth quarter of 2012, the main elements of our non-current 
debt were as follows:
                                             Balance
                                        (Millions of  
                 Interest Rate              dollars)           Maturity

Revolving Credit Rates fluctuate with
Facility         changes in bankers'                  
                 acceptance rates              315.4   November 3, 2016

Series A Notes   4.98% fixed rate              200.0   October 15, 2015

Series B Notes   5.97% fixed rate              400.0   October 15, 2035

On October 12, 2012, the revolving credit facility's maturity date was 
extended to November 3, 2017.

At the end of the fourth quarter, we had foreign exchange forward contracts to 
hedge against the effect of foreign exchange rate fluctuations on our future 
foreign-denominated purchases of goods and services.

Our main financial ratios were as follows:
                                                 As at         As at
                                         September 29, September 24,
                                                  2012          2011
                                                                    

Financial structure                                                 

  Non-current debt (Millions of dollars)         973.9       1,025.5

  Equity (Millions of dollars)                 2,545.1       2,399.3

  Non-current debt/total capital (%)              27.7          29.9
                                                        
                                                     Fiscal Year
                                                  2012          2011

Results                                                             

  EBITDA((1))/Financial costs (Times)             19.3          18.5


SHARE CAPITAL REORGANIZATION 
Following the Annual General Meeting of Shareholders held on January 31, 2012, 
our share capital has been changed as follows: 
    --  each issued and outstanding Class B Share carrying 16 votes per
        share has been converted into one single vote Class A
        Subordinate Share;
    --  the Class B Shares, along with the rights, privileges,
        restrictions and conditions attached thereto, have been
        eliminated;
    --  the Class A Subordinate Shares have been redesignated as
        "Common Shares" and shall constitute the Corporation's sole
        class of equity shares carrying one vote per share;
    --  First Preferred Shares have been redesignated as "Preferred
        Shares".

For ease of reading, we have restated all prior periods disclosed to reflect 
the share capital reorganization of January 31, 2012 as if it had always 
existed. Therefore, only the Common Shares are disclosed in this press 
release. This restatement is possible since Class B Shares and Class A 
Subordinate Shares were participating shares. The differences between these 
classes of shares were primarily voting rights, the exclusivity of Class B 
Shares held by Metro Merchants, and that Class B Shares were not listed on the 
Toronto Stock Exchange.  

CAPITAL STOCK, STOCK OPTIONS AND
PERFORMANCE SHARE UNITS                                           
                                                                  
                                              As at          As at
                                      September 29,  September 24,
                                               2012           2011
                                                                  

Number of Common Shares outstanding
(Thousands)                                  97,186        101,084

Stock options:                                                    

  Number outstanding (Thousands)              1,683          1,776

  Exercise prices (Dollars)          24.73 to 58.41 20.20 to 47.14

  Weighted average exercise price                            35.38
  (Dollars)                                   39.27

Performance share units:                                          

  Number outstanding (Thousands)                284            310



NORMAL COURSE ISSUER BID PROGRAM

The Corporation decided to renew the issuer bid program as an additional 
option for using excess funds. Thus, we will be able to decide, in the 
shareholders' best interest, to reimburse debt or to repurchase Corporation 
Shares. The Board of Directors authorized the Corporation to repurchase, in 
the normal course of business, between September 10, 2012 and September 9, 
2013, up to 6,000,000 of its Common Shares representing approximately 6.2 % of 
its issued and outstanding shares at the close of the Toronto Stock Exchange 
on August 31, 2012. Repurchases are made through the stock exchange at market 
price and in accordance with its policies and regulations, and in any other 
manner allowed by the stock exchange and by any other securities regulatory 
agency, including off-board transactions. Common Shares so repurchased will be 
cancelled. Under the normal course issuer bid program covering the period from 
September 8, 2011 to September 7, 2012, the Corporation repurchased 4,239,800 
Common Shares at an average price of $50.99 for a total of $216.2 million.

Under the normal course issuer bid program covering the period from September 
10, 2012 to September 9, 2013, the Corporation repurchased, up to November 2, 
2012, 333,300 Common Shares at an average price of 57.65 $, for a total of 
$19.2 million.

DIVIDENDS

On September 25, 2012, the Corporation's Board of Directors declared a 
quarterly dividend of $0.215 per Common Share payable November 21, 2012, an 
increase of 11.7% over the dividend declared for the same quarter last year. 
On an annualized basis, this dividend represents 21.3% of 2011 net earnings.

SHARE TRADING

The value of METRO shares remained in the $43.76 to $59.68 range over fiscal 
2012. During this period, a total of 70.0 million shares traded on the Toronto 
Stock Exchange. The closing price at the end of fiscal 2012 was $58.40 
compared to $44.69 at the end of fiscal 2011. The closing price on Friday, 
November 2, 2012 was $58.86.

NEW ACCOUNTING POLICIES

RECENTLY ISSUED  
Classification and measurement of financial assets and financial liabilities

In November 2009, the International Accounting Standards Board (IASB) 
published IFRS 9 "Financial Instruments". This new standard simplifies the 
classification and measurement of financial assets set out in IAS 39 
"Financial Instruments: Recognition and Measurement". Financial assets are to 
be measured at amortized cost or fair value. They are to be measured at 
amortized cost if the two following conditions are met:  

a)  the assets are held within a business model whose objective is to
    collect contractual cash flows; and

b)  the contractual cash flows are solely payments of principal and
    interest on the outstanding principal.

All other financial assets are to be measured at fair value through net 
earnings. The entity may, if certain conditions are met, elect to use the fair 
value option instead of measurement at amortized cost. As well, the entity may 
choose upon initial recognition to measure non-trading equity investments at 
fair value through comprehensive income. Such a choice is irrevocable.

In October 2010, the IASB issued revisions to IFRS 9, adding the requirements 
for classification and measurement of financial liabilities contained in IAS 
39 and further points. For financial liabilities measured at fair value 
through net earnings using the fair value option, the amount of change in a 
liability's fair value attributable to changes in its credit risk is 
recognized directly in other comprehensive income.

In December 2011, the IASB deferred the mandatory effective date of IFRS 9 to 
fiscal years beginning on or after January 1, 2015. Early adoption is 
permitted under certain conditions. An entity is not required to restate 
comparative financial periods for its first-time application of IFRS 9, but 
must comply with the new disclosure requirements.

Offsetting financial assets and financial liabilities

In December 2011, the IASB issued amendments to IAS 32 "Financial Instruments: 
Presentation" clarifying the requirements for offsetting financial assets and 
financial liabilities. These amendments shall be applied to annual periods 
beginning on or after January 1, 2014.


The IASB also issued amendments to IFRS 7 "Financial Instruments: Disclosures" 
improving disclosure on offsetting of financial assets and financial 
liabilities. These amendments shall be applied to annual and interim periods 
beginning on or after January 1, 2013.

Consolidated Financial Statements

In May 2011, the IASB published IFRS 10 "Consolidated Financial Statements" 
which is a replacement of SIC-12 "Consolidation - Special Purpose Entities", 
and certain parts of IAS 27 "Consolidated and Separate Financial Statements". 
IFRS 10 uses control as the single basis for consolidation, irrespective of 
the nature of the investee, employing the following factors to identify 
control:

a) power over the investee;
b)exposure or rights to variable returns from involvement with the investee;
c)the ability to use power over the investee to affect the amount of the 
investor's returns.

IFRS 10 shall be applied to fiscal years beginning on or after January 1, 
2013. Early adoption is permitted under certain conditions.

Joint Arrangements

In May 2011, the IASB published IFRS 11 "Joint Arrangements" which supersedes 
IAS 31 "Interests in Joint Ventures" and SIC-13 "Jointly Controlled Entities - 
Non-Monetary Contributions by Venturers". IFRS 11 requires that joint ventures 
be accounted for using the equity method of accounting and eliminates the need 
for proportionate consolidation. This new standard shall be applied to fiscal 
years beginning on or after January 1, 2013. Early adoption is permitted under 
certain conditions.

Disclosure of Interests in Other Entities

In May 2011, the IASB published IFRS 12 "Disclosure of Interests in Other 
Entities" which requires that an entity disclose information on the nature of 
and risks associated with its interests in other entities (i.e. subsidiaries, 
joint arrangements, associates or unconsolidated structured entities) and the 
effects of those interests on its financial statements. IFRS 12 shall be 
applied to fiscal years beginning on or after January 1, 2013. Early adoption 
is permitted under certain conditions. Entities may, without early adoption of 
IFRS 12, choose to incorporate only some of the required disclosures in their 
financial statements.

Fair Value Measurement

In May 2011, the IASB published IFRS 13 "Fair Value Measurement" to establish 
a single framework for fair value measurement of financial and non-financial 
items. IFRS 13 defines fair value as the price that would be received to sell 
an asset or paid to transfer a liability in an orderly transaction between 
market participants at the measurement date. It also requires disclosure of 
certain information on fair value measurements. IFRS 13 shall be applied to 
fiscal years beginning on or after January 1, 2013. Early adoption is 
permitted.

Employee Benefits

In June 2011, the IASB issued amendments to IAS 19 "Employee Benefits". 
Changes in defined benefit obligations and plan assets are to be recognized in 
comprehensive income when they occur, thus eliminating the corridor approach 
and accelerating recognition of past service cost. Net interest is to be 
recognized in net earnings and calculated using the discount rate by reference 
to market yields at the end of the reporting period on high quality corporate 
bonds. The actual return on plan assets minus net interest is to be recognized 
in other comprehensive income. These amendments shall be applied to fiscal 
years beginning on or after January 1, 2013. Early adoption is permitted.

Presentation of Financial Statements

In June 2011, the IASB issued amendments to IAS1 "Presentation of Financial 
Statements". Items of other comprehensive income and the corresponding tax 
expense are required to be grouped into those that will and will not 
subsequently be reclassified through net earnings. These amendments shall be 
applied to fiscal years beginning on or after July 1, 2012. Early adoption is 
permitted.

At present, the Corporation is assessing the impact of the above-mentioned 
amendments on its earnings, financial position and cash flows.

EVENT AFTER THE REPORTING PERIOD

On October 22, 2012, we announced a conditional agreement to dispose of our 
food service operation, the Distagro division, which supplies restaurant and 
gas station chains. The disposal for a consideration of approximately $15 
million excluding working capital and a net gain after taxes of approximately 
$7 million should take place in the next few weeks.

The transaction will be recorded in our financial statements as a discontinued 
operation and the Corporation's consolidated income statements for current and 
prior periods will be restated. Related Distagro sales and expenditures will 
be recorded as a net loss on a discontinued operation under a separate income 
statement section.

FORWARD-LOOKING INFORMATION

We have used, throughout this report, different statements that could, within 
the context of regulations issued by the Canadian Securities Administrators, 
be construed as being forward-looking information. In general, any statement 
contained herein, which does not constitute a historical fact, may be deemed a 
forward-looking statement. Expressions such as "continue", "drive", 
"anticipate" and other similar expressions are generally indicative of 
forward-looking statements. The forward-looking statements contained herein 
are based upon certain assumptions regarding the Canadian food industry, the 
general economy, our annual budget, as well as our 2013 action plan.

These forward-looking statements do not provide any guarantees as to the 
future performance of the Corporation and are subject to potential risks, 
known and unknown, as well as uncertainties that could cause the outcome to 
differ significantly. An economic slowdown or recession, or the arrival of a 
new competitor, are examples described under the "Risk Management" section of 
the 2011 Annual Report which could have an impact on these statements. We 
believe these statements to be reasonable and pertinent as at the date of 
publication of this report and represent our expectations. The Corporation 
does not intend to update any forward-looking statement contained herein, 
except as required by applicable law.

IFRS AND NON-IFRS MEASUREMENTS

In addition to the IFRS earnings measurements provided, we have included 
certain IFRS and non-IFRS earnings measurements. These measurements are 
presented for information purposes only. They do not have a standardized 
meaning prescribed by IFRS and therefore may not be comparable to similar 
measurements presented by other public companies.

EARNINGS BEFORE FINANCIAL COSTS, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)

EBITDA is a measurement of earnings that excludes financial costs, taxes, 
depreciation and amortization. It is an additional IFRS measurement and it is 
presented separately in the condensed consolidated statements of income. We 
believe that EBITDA is a measurement commonly used by readers of financial 
statements to evaluate a company's operational cash-generating capacity and 
ability to discharge its financial expenses.

ADJUSTED EBITDA, ADJUSTED NET EARNINGS AND ADJUSTED FULLY DILUTED NET EARNINGS 
PER SHARE

Adjusted EBITDA, adjusted net earnings and adjusted fully diluted net earnings 
per share are earnings measurements that exclude non-recurring items. They are 
non-IFRS measurements. We believe that presenting earnings without 
non-recurring items leaves readers of financial statements better informed as 
to the current period and corresponding period's earnings, thus enabling them 
to better evaluate the Corporation's performance and judge its future outlook.

OUTLOOK

We are very pleased with our strong fourth quarter and fiscal 2012 
performance, resulting from our team's excellent execution, effective cost 
control, and sustained investments in our network. While we expect competitive 
activity will remain strong in 2013, we will continue((2) )to emphasize our 
customer first strategies to drive((2)) our future growth.

CONFERENCE CALL

Financial analysts and institutional investors are invited to participate in a 
conference call on the 2012 fourth quarter and fiscal year results at 10:00 
a.m. (EST) on Wednesday, November 14, 2012. To access the conference call, 
please dial 647 427-7450 or 1 888 231-8191. The media and investing public may 
access this conference via a listen mode only.  

((1))See section on "IFRS and Non-IFRS Measurements"
((2))See section on "Forward-looking Information"

Interim Condensed Consolidated Financial Statements

METRO INC.

September 29, 2012

Condensed consolidated statements of income
Periods ended September 29, 2012 and September 24, 2011
(Unaudited) (Millions of dollars, except for net earnings per share)
                               Fiscal Year               Fiscal Year
                            2012         2011         2012         2011
                      (13 weeks)   (12 weeks)   (53 weeks)   (52 weeks)

Sales                    2,943.7      2,649.5     12,010.8     11,396.4

Cost of sales and                                           
operating expenses
(note 5)               (2,734.5)    (2,477.5)   (11,189.1)   (10,652.0)

Share of an                                                 
associate's earnings        37.1         15.3         72.6         42.4

Closure expenses         —       (20.5)      —       (20.5)

Earnings before                                             
financial costs,
taxes, depreciation
and amortization           246.3        166.8        894.3        766.3

Depreciation and                                            
amortization (note 5)     (41.8)       (41.5)      (183.9)      (179.3)

Operating income           204.5        125.3        710.4        587.0

Financial costs, net                                        
(note 5)                  (11.7)        (9.4)       (46.4)       (41.5)

Earnings before                                             
income taxes               192.8        115.9        664.0        545.5

Income taxes (note 6)     (47.7)       (31.5)      (174.7)      (152.8)

Net earnings               145.1         84.4        489.3        392.7
                                                              

Attributable to:                                                       

Equity holders of the                                       
parent                     143.3         84.4        481.8        392.7

Non-controlling                                             
interests                    1.8      —          7.5      —
                           145.1         84.4        489.3        392.7
                                                              

Net earnings per                                            
share (Dollars) (note
7)                                                                     

Basic                       1.47         0.83         4.87         3.81

Fully diluted               1.46         0.83         4.84         3.79

See accompanying notes

Condensed consolidated statements of comprehensive income
Periods ended September 29, 2012 and September 24, 2011
(Unaudited) (Millions of dollars)
                               Fiscal Year               Fiscal Year
                            2012         2011         2012         2011
                      (13 weeks)   (12 weeks)   (53 weeks)   (52 weeks)

Net earnings               145.1         84.4        489.3        392.7

Other comprehensive
income (note 10)                                                       

  Change in the fair
  value of a
  derivative
  designated as cash
  flow hedge             —      —      —          0.4

  Changes in defined
  benefit plans                                                        
    Actuarial losses
                          (16.1)       (83.7)       (65.6)       (66.8)
    Asset ceiling
    effect                   0.1          3.8        (2.7)          0.5
    Minimum funding
    requirement            (4.2)        (5.1)          0.1        (2.5)

  Share of an
  associate's other
  comprehensive
  income                     0.1      —        (0.6)          0.1

  Corresponding
  income taxes               5.4         21.7         19.0         17.4

Comprehensive income       130.4         21.1        439.5        341.8
                                                                  

Attributable to:                                                       

Equity holders of the
parent                     128.6         21.1        432.0        341.8

Non-controlling
interests                    1.8      —          7.5      —
                           130.4         21.1        439.5        341.8

See accompanying notes

Condensed consolidated statements of financial position
(Unaudited) (Millions of dollars)
                                  As at           As at           As at
                          September 29,   September 24,   September 26,
                                   2012            2011            2010

ASSETS                                                     

Current assets                                             

Cash and cash equivalents          73.3           255.5           214.7

Accounts receivable               332.8           300.3           311.3

Inventories                       784.4           728.3           699.3

Prepaid expenses                    6.6            11.7             9.7

Current taxes                      13.9             2.2             1.7
                                1,211.0         1,298.0         1,236.7

Assets held for sale                0.6             6.6         —
                                1,211.6         1,304.6         1,236.7

Non-current assets                                         

Investment in an                  324.5           258.7           220.9
associate

Other financial assets             21.6            17.0            15.8

Fixed assets                    1,280.3         1,226.1         1,217.2

Investment properties              22.1            27.0            27.8

Intangible assets                 373.1           297.2           304.0

Goodwill                        1,859.5         1,649.1         1,603.7

Deferred taxes                     56.3            45.8            48.8

Defined benefit assets              1.4             1.6            20.3
                                5,150.4         4,827.1         4,695.2

LIABILITIES AND EQUITY                                     

Current liabilities                                        

Bank loans                          0.3             0.3             1.0

Accounts payable                1,086.4         1,061.1         1,064.1

Current taxes                      60.5            46.2            50.8

Provisions                         11.2            17.3             9.2

Current portion of debt            12.1           378.1             4.7
                                1,170.5         1,503.0         1,129.8

Non-current liabilities                                    

Debt (note 8)                     973.9           656.2         1,004.3

Defined benefit                   156.9           132.2            97.0
liabilities

Provisions                          3.1             4.0             4.8

Deferred taxes                    147.7           119.0           124.5

Other liabilities                  13.9            13.4            15.9

Non-controlling interest          139.3         —         —
                                2,605.3         2,427.8         2,376.3

Equity                                                     

Capital stock (note 9)            664.6           682.6           702.1

Contributed surplus                 4.6             3.8             8.2

Retained earnings               1,976.1         1,763.6         1,608.4

Accumulated other               (101.0)          (51.2)           (0.3)
comprehensive income
(note 10)

Equity attributable to          2,544.3         2,398.8         2,318.4
equity holders of the
parent

Non-controlling interests           0.8             0.5             0.5
                                2,545.1         2,399.3         2,318.9
                                5,150.4         4,827.1         4,695.2

See accompanying notes

Condensed consolidated statements of changes in equity
Periods ended September 29, 2012 and September 24, 2011
(Unaudited) (Millions of dollars)
                                Attributable to the equity holders of the parent                      
                                                            Accumulated                          
                                                                  other
                       Capital                            comprehensive                    Non-


                     stock   Contributed   Retained          income             controlling     Total
(53 weeks)            (note 9)       surplus   earnings       (note 10)     Total     interests    equity 
Balance as at                                                                                    
September 24,
2011                     682.6           3.8    1,763.6          (51.2)   2,398.8           0.5   2,399.3 
Net earnings                                      481.8                     481.8           7.5     489.3 
Other                                                                                            
comprehensive
income                                                           (49.8)    (49.8)                  (49.8) 
Comprehensive                                                                                    
income                 —       —      481.8          (49.8)     432.0           7.5     439.5 
Shares issued                                                                                    
for cash                   0.1                                                0.1                     0.1 
Stock options                                                                                    
exercised                 10.3         (2.3)                                  8.0                     8.0 
Shares redeemed         (28.7)                                             (28.7)                  (28.7) 
Share redemption                                                                                 
premium                                         (186.3)                   (186.3)                 (186.3) 
Acquisition of                                                                                   
treasury shares          (0.3)                                              (0.3)                   (0.3) 
Treasury share                                                                                   
acquisition
premium                                (2.3)                                (2.3)                   (2.3) 
Released                                                                                         
treasury shares            0.6         (0.6)                              —                 — 
Share-based                                                                                      
compensation
cost                                     6.1                                  6.1                     6.1 
Performance                                                                                      
share units cash
settlement                             (0.1)                                (0.1)                   (0.1) 
Dividends                                        (82.9)                    (82.9)                  (82.9) 
Share conversion                                                                                 
fees                                              (0.1)                     (0.1)                   (0.1) 
Reclassification                                                                                 
of
non-controlling
interest
liability                                                                 —         (7.2)     (7.2) 


                        (18.0)           0.8    (269.3)         —   (286.5)         (7.2)   (293.7)

Balance as at                                                                                    
September 29,
2012                     664.6           4.6    1,976.1         (101.0)   2,544.3           0.8   2,545.1

See accompanying                                                                   
notes                                                                                                    
                                                                                                   
                             Attributable to the equity holders of the parent                      
                                                            Accumulated                          
                                                                  other
                       Capital                            comprehensive                    Non-


                     stock   Contributed   Retained          income             controlling     Total
(52 weeks)            (note 9)       surplus   earnings       (note 10)     Total     interests    equity 
Balance as at                                                                                    
September 26,
2010                     702.1           8.2    1,608.4           (0.3)   2,318.4           0.5   2,318.9 
Net earnings                                      392.7                     392.7                   392.7 
Other                                                                                            
comprehensive
income                                                           (50.9)    (50.9)                  (50.9) 
Comprehensive                                                                                    
income                 —       —      392.7          (50.9)     341.8       —     341.8 
Stock options                                                                                    
exercised                  9.1         (2.1)                                  7.0                     7.0 
Shares redeemed         (27.9)                                             (27.9)                  (27.9) 
Share redemption                                                                                 
premium                                         (160.4)                   (160.4)                 (160.4) 
Acquisition of                                                                                   
treasury shares          (1.3)                                              (1.3)                   (1.3) 
Treasury shares                                                                                  
acquisition
premium                                (7.6)                                (7.6)                   (7.6) 
Released                                                                                         
treasury shares            0.6         (0.6)                              —                 — 
Share-based                                                                                      
compensation
cost                                     6.3                                  6.3                     6.3 
Performance                                                                                      
share units cash
settlement                             (0.4)                                (0.4)                   (0.4) 
Dividends                                        (77.1)                    (77.1)                  (77.1) 


                        (19.5)         (4.4)    (237.5)         —   (261.4)       —   (261.4)

Balance as at                                                                                    
September 24,
2011                     682.6           3.8    1,763.6          (51.2)   2,398.8           0.5   2,399.3

See accompanying                                                                     
notes

Condensed consolidated statements of cash flows
Periods ended September 29, 2012 and September 24, 2011
(Unaudited) (Millions of dollars)
                               Fiscal Year               Fiscal Year
                            2012         2011         2012         2011
                      (13 weeks)   (12 weeks)   (53 weeks)   (52 weeks)

Operating activities                                                   

Earnings before                                             
income taxes               192.8        115.9        664.0        545.5

Non-cash items                                                         

  Share of an                                               
  associate's
  earnings                (37.1)       (15.3)       (72.6)       (42.4)

  Closure expenses       —          8.9      —          8.9

  Depreciation and                                          
  amortization              41.8         41.5        183.9        179.3

  Amortization of                                           
  deferred financing
  costs                      0.1          0.2          0.3          0.4

  Loss (gain) on                                            
  disposal and
  write-offs of fixed
  and intangible
  assets and
  investment
  properties               (4.5)         12.5        (5.4)         10.0

  Impairment losses                                         
  on fixed and
  intangible assets
  and investment
  properties                 2.1         12.0         10.3         14.8

  Impairment loss                                           
  reversals on fixed
  and intangible
  assets                   (3.6)        (5.5)       (10.0)        (5.5)

  Share-based                                               
  compensation cost          2.0          1.4          6.1          6.3

  Difference between                                        
  amounts paid for
  employee benefits
  and current period
  cost                    (24.4)        (5.1)       (43.3)       (14.9)

  Financial costs,                                          
  net                       11.7          9.4         46.4         41.5
                           180.9        175.9        779.7        743.9

Net change in                                               
non-cash working
capital items             (19.8)         45.1       (44.4)        (7.1)

Interest paid              (3.8)        (2.4)       (48.0)       (45.1)

Income taxes paid         (30.5)       (35.3)      (141.2)      (149.3)
                           126.8        183.3        546.1        542.4

Investing activities                                                   

Business                                                    
acquisitions, net of
cash acquired
totalling $3.0 in
2012 (note 4)            —        (5.8)      (146.8)       (74.2)

Proceeds on disposal                                        
of assets held for
sale                     —      —          6.6      —

Net change in other                                         
financial assets             0.1      —        (4.6)          5.4

Dividends from an                                           
associate                    1.5          1.3          6.2          4.7

Additions to fixed                                          
assets                    (85.9)       (44.5)      (210.5)      (148.1)

Proceeds on disposal                                        
of fixed assets             22.1      —         26.9          2.6

Proceeds on disposal                                        
of investment
properties                   1.9          2.8          3.5          2.8

Additions to                                                
intangible assets and
goodwill                   (8.9)        (6.8)       (38.3)       (19.9)
                          (69.2)       (53.0)      (357.0)      (226.7)

Financing activities                                                   

Net change in bank                                          
loans                      (1.2)        (0.8)       (15.5)        (0.7)

Shares issued (note                                         
9)                           1.7          0.3          8.1          7.0

Shares redeemed (note                                       
9)                         (2.5)       (42.6)      (215.0)      (188.3)

Acquisition of                                              
treasury shares (note
9)                       —        (8.9)        (2.6)        (8.9)

Performance share                                           
units cash settlement    —      —        (0.1)        (0.4)

Increase in debt           388.6          0.7        391.1          8.4

Repayment of debt        (448.2)        (2.8)      (454.9)       (12.1)

Use of non-current                                          
provisions               —        (0.3)      —        (0.3)

Net change in other                                         
liabilities                (0.2)        (1.4)          0.5        (2.5)

Dividends                 (20.9)       (19.5)       (82.9)       (77.1)
                          (82.7)       (75.3)      (371.3)      (274.9)

Net change in cash                                          
and cash equivalents      (25.1)         55.0      (182.2)         40.8

Cash and cash                                               
equivalents —
beginning of period         98.4        200.5        255.5        214.7

Cash and cash                                               
equivalents —
end of period               73.3        255.5         73.3        255.5

See accompanying                                            
notes

Notes to interim condensed consolidated financial statements
Periods ended September 29, 2012 and September 24, 2011
(Unaudited) (Millions of dollars, unless otherwise indicated)

1. STATEMENT PRESENTATION

METRO INC. (the Corporation) is a company incorporated under the laws of 
Quebec. The Corporation is one of Canada's leading food retailers and 
distributors and operates a network of supermarkets, discount stores and 
drugstores. Its head office is located at 11011 Maurice-Duplessis Blvd., 
Montreal, Quebec, Canada, H1C 1V6. Its various components constitute a single 
operating segment.

As of September 25, 2011, the Corporation has prepared its financial 
statements according to International Financial Reporting Standards (IFRS). 
The unaudited interim condensed consolidated financial statements for the 
13-week and 53-week periods ended September 29, 2012 have been prepared by 
management in accordance with IAS 34 "Interim Financial Reporting" and IFRS 1 
"First-time Adoption of International Financial Reporting Standards". They 
should be read in conjunction with the audited annual consolidated financial 
statements and accompanying notes which were prepared in accordance with 
Canadian Generally Accepted Accounting Principles (GAAP) presented in the 
Corporation's 2011 Annual Report. Given the change in accounting standards, 
they should be read in conjunction with the following information as well:

a) the unaudited interim condensed consolidated financial statements
   for the 12-week period ended December 17, 2011, particularly the
   explanations on the transition to IFRS on September 26, 2010 (note
   2), significant accounting policies (note 3) and additional annual
   information requirements under IFRS (note 13) since all of this
   information is not included in this press release;

b) the explanations on the transition to IFRS on September 24, 2011
   (note 2) and new accounting policies (note 3) in this press release.

Some of the corresponding figures have been reclassified in line with the 
presentation adopted for the current fiscal year.

2. EXPLANATIONS ON THE TRANSITION TO IFRS

This note explains the principal adjustments made in converting the unaudited 
consolidated financial statements from GAAP to IFRS, specifically the 
consolidated statement of financial position as at September 24, 2011, as well 
as the consolidated statements of income, consolidated statements of 
comprehensive income and consolidated statements of cash flows for the 12-week 
period and fiscal year ended September 24, 2011.

The adjustments regarding the consolidated statements of financial position as 
at September 26, 2010 were disclosed in note 2 to the unaudited interim 
condensed consolidated financial statements for the 12-week period ended 
December 17, 2011 and are not reproduced in this note.

To facilitate comprehension, the adjustments are presented in two different 
ways. In the first, the adjustments are itemized according to IFRS standards 
and the three following categories: 1) optional exemptions under IFRS 1 that 
apply only once at the time of changeover to IFRS, 2) recurring differences in 
accounting treatment between GAAP and IFRS, 3) reclassifications for 
presentation purposes that have no impact on net earnings. In the second, the 
adjustments are itemized according to financial statement items.

TERMINOLOGY

There are differences between IFRS and GAAP terminology. The following table 
lists the main differences:

 _____________________________________________________________________
|             GAAP terminology     |             IFRS terminology     |
|__________________________________|__________________________________|
|Statement of earnings             |Statement of income               |
|__________________________________|__________________________________|
|Balance sheet                     |Statement of financial position   |
|Long-term                         |Non-current                       |
|Investment in a company subject to|Investment in an associate        |
|significant influence             |Deferred taxes                    |
|Future income taxes               |Defined benefit assets or         |
|Accrued benefit assets or         |liabilities                       |
|liabilities                       |Equity                            |
|Shareholders' equity              |                                  |
|__________________________________|__________________________________|
|Notes to financial statements     |Notes to financial statements     |
|Reportable segment                |Operating segment                 |
|Variable interest entities        |Special purpose entities          |
|Assets or liabilities held for    |Financial assets or liabilities at|
|trading                           |fair value                        |
|                                  |through net earnings              |
|Definite/indefinite useful lives  |Finite/indefinite useful lives    |
|Capital leases                    |Finance leases                    |
|Employee future benefits          |Employee benefits                 |
|Projected benefit method prorated |Projected unit credit method      |
|on services/ Accumulated benefit  |Defined benefit obligations       |
|method                            |Share-based payment transactions  |
|Accrued benefit obligations       |                                  |
|Stock-based compensation and other|                                  |
|stock-based payments              |                                  |
|__________________________________|__________________________________|

FIRST-TIME ADOPTION OF IFRS

At the date of transition, IFRS 1 authorizes certain exemptions from 
retrospective application. The following optional exemptions were used:

Employee benefits
All actuarial gains and losses on the date of transition were recognized in 
retained earnings.

Business combinations
The IFRS 3 "Business Combinations" was not applied to business combinations 
that occurred before the transition date.

RECONCILIATION OF CONSOLIDATED FINANCIAL POSITION AND EQUITY
                                               As at September 24, 2011
                                                    Adjustments              
                                            Accounting                 
                Notes      GAAP    IFRS 1    treatment   Presentation      IFRS

ASSETS                                                                         

Current assets                                                                 

Cash and cash                                                          
equivalents               255.5                                           255.5

Accounts                                                               
receivable         i      306.9                                 (6.6)     300.3

Inventories               728.3                                           728.3

Prepaid                                                                
expenses                   11.7                                            11.7

Income taxes                                                           
receivable                  2.2                                             2.2

Deferred taxes     n       19.2                                (19.2)   —
                        1,323.8   —      —         (25.8)   1,298.0

Assets held for                                                        
sale               i    —                                   6.6       6.6
                        1,323.8   —      —         (19.2)   1,304.6

Non-current                                                            
assets                                                                         

Investment in                                                          
an associate       r    —                    1.3          257.4     258.7

Other financial                                                        
assets             s      274.7                  (0.3)        (257.4)      17.0

Fixed assets       t    1,321.3                 (63.7)         (31.5)   1,226.1

Investment                                                             
properties         u    —                  (4.5)           31.5      27.0

Intangible                                                             
assets             d      308.5                 (11.3)                    297.2

Goodwill           e    1,649.9                  (0.8)                  1,649.1

Deferred taxes     q        1.2      11.2         14.2           19.2      45.8

Defined benefit                                                        
assets             v       79.4    (47.3)       (30.5)                      1.6
                        4,958.8    (36.1)       (95.6)        —   4,827.1

LIABILITIES AND                                                        
EQUITY                                                                         

Current                                                                
liabilities                                                                    

Bank loans                  0.3                                             0.3

Accounts                                                               
payable            l    1,078.4                                (17.3)   1,061.1

Income taxes                                                           
payable                    46.2                                            46.2

Provisions         l    —                                  17.3      17.3

Deferred taxes     n       11.2                                (11.2)   —

Current portion                                                        
of debt            m        8.8                                 369.3     378.1
                        1,144.9   —      —          358.1   1,503.0

Non-current                                                            
liabilities                                                                    

Debt               m    1,025.5                               (369.3)     656.2

Defined benefit                                                        
liabilities        v       44.0      38.1         50.1                    132.2

Provisions         l    —                                   4.0       4.0

Deferred taxes     q      158.5    (10.9)       (39.8)           11.2     119.0

Other                                                                  
liabilities     e, l       17.9                                 (4.5)      13.4
                        2,390.8      27.2         10.3          (0.5)   2,427.8

Equity                                                                         

Capital stock             682.6                                           682.6

Contributed                                                            
surplus            h        1.7                    2.1                      3.8

Retained                                                               
earnings           w    1,883.7    (63.3)       (56.8)                  1,763.6

Accumulated                                                            
other
comprehensive
income             x    —                 (51.2)                   (51.2)

Equity                                                                 
attributable to
the equity
holders of the
parent                  2,568.0    (63.3)      (105.9)        —   2,398.8

Non-controlling                                                        
interests          e    —                                   0.5       0.5
                        2,568.0    (63.3)      (105.9)            0.5   2,399.3
                        4,958.8    (36.1)       (95.6)        —   4,827.1

RECONCILIATION OF CONSOLIDATED STATEMENTS OF INCOME
                              12-week period ended September 24, 2011
                                            Adjustments                 
                                  Accounting                 
             Notes         GAAP    treatment   Presentation         IFRS
                                                               

Sales           o       2,656.7                       (7.2)      2,649.5

Cost of                                                      
sales and
operating
expenses        y     (2,479.0)        (5.7)            7.2    (2,477.5)

Share of an                                                  
associate's
earnings        b          15.2          0.1                        15.3

Closure                                                      
expenses        c        (20.2)        (0.3)                      (20.5)

Earnings                                                     
before
financial
costs,
taxes,
depreciation
and
amortization              172.7        (5.9)        —        166.8

Depreciation                                                 
and
amortization    z        (45.0)          3.5                      (41.5)

Operating                                                    
income                    127.7        (2.4)        —        125.3

Financial                                                    
costs, net                (9.4)                                    (9.4)

Earnings                                                     
before
income taxes              118.3        (2.4)        —        115.9

Income taxes   aa        (32.2)          0.7                      (31.5)

Net earnings               86.1        (1.7)        —         84.4
                                                               

Net earnings                                                 
per share
(Dollars)                                                               

Basic                      0.85                                     0.83

Fully                                                        
diluted                    0.84                                     0.83
                                                                        
                                                               
                                Fiscal year ended September 24, 2011
                                            Adjustments                 
                                  Accounting                 
             Notes         GAAP    treatment   Presentation         IFRS
                                                               

Sales           o      11,430.6                      (34.2)     11,396.4

Cost of                                                      
sales and
operating
expenses        y    (10,679.6)        (6.6)           34.2   (10,652.0)

Share of an                                                  
associate's
earnings        b          42.6        (0.2)                        42.4

Closure                                                      
expenses        c        (20.2)        (0.3)                      (20.5)

Earnings                                                     
before
financial
costs,
taxes,
depreciation
and
amortization              773.4        (7.1)        —        766.3

Depreciation                                                 
and
amortization    z       (195.2)         15.9                     (179.3)

Operating                                                    
income                    578.2          8.8        —        587.0

Financial                                                    
costs, net               (41.5)                                   (41.5)

Earnings                                                     
before
income taxes              536.7          8.8        —        545.5

Income taxes   aa       (150.4)        (2.4)                     (152.8)

Net earnings              386.3          6.4        —        392.7
                                                               

Net earnings                                                 
per share
(Dollars)                                                               

Basic                      3.75                                     3.81

Fully                                                        
diluted                    3.73                                     3.79

RECONCILIATION OF CONSOLIDATED COMPREHENSIVE INCOME
                                12-week period ended September 24, 2011
                                        Adjustments               
                                         Accounting
                          Notes    GAAP   treatment                IFRS

Net earnings                       86.1       (1.7)                84.4

Other comprehensive                                  
income

  Changes in defined          
  benefit plans                                                        
    Actuarial losses         f  —      (83.7)              (83.7)
    Asset ceiling effect     f  —         3.8                 3.8
    Minimum funding          f  —       (5.1)               (5.1)
    requirement

  Corresponding income       f  —        21.7                21.7
  taxes

Comprehensive income               86.1      (65.0)                21.1
                                 
                                 
                                  Fiscal year ended September 24, 2011
                                        Adjustments               
                                         Accounting
                          Notes    GAAP   treatment                IFRS

Net earnings                      386.3         6.4               392.7

Other comprehensive                                  
income

  Change in the fair                               
  value of a derivative
  designated as cash flow
  hedge                             0.4                             0.4

  Changes in defined                                 
  benefit plans
    Actuarial losses         f  —      (66.8)              (66.8)
    Asset ceiling effect     f  —         0.5                 0.5
    Minimum funding          f  —       (2.5)               (2.5)
    requirement

  Share of an associate's    b  —         0.1                 0.1
  other comprehensive
  income

  Corresponding income       f    (0.1)        17.5                17.4
  taxes

Comprehensive income              386.6      (44.8)               341.8

RECONCILIATION OF CONSOLIDATED CASH FLOWS
                                12-week period ended September 24, 2011
                                                 Adjustments     
                                        Accounting
                         Notes     GAAP  treatment Presentation    IFRS

Operating activities                                                   

Net earnings                       86.1      (1.7)                 84.4

  Income taxes           aa, p  —      (0.7)         32.2    31.5

Earnings before income             86.1      (2.4)         32.2   115.9
taxes

Non-cash items                                                         

  Share of an               b    (15.2)      (0.1)               (15.3)
  associate's earnings

  Closure costs                     8.9                             8.9

  Depreciation and          z      45.0      (3.5)                 41.5
  amortization

  Amortization of                   0.2                             0.2
  deferred financing
  costs

  Loss on disposal and      c      12.2        0.3                 12.5
  write-offs of fixed
  and intangible assets
  and investment
  properties

  Deferred taxes            p      16.8                  (16.8) —

  Impairment losses on      d   —       12.0                 12.0
  fixed and intangible
  assets and investment
  properties

  Impairment loss           d   —      (5.5)                (5.5)
  reversals on fixed
  and intangible assets

  Share-based                       1.4                             1.4
  compensation cost

  Difference between        f     (4.0)      (1.1)                (5.1)
  amounts paid for
  employee benefits and
  current period cost

  Financial costs, net      p   —                     9.4     9.4
                                  151.4      (0.3)         24.8   175.9

Net change in non-cash  e, l, p    32.3        0.2         12.6    45.1
working capital items

Interest paid               p   —                   (2.4)   (2.4)

Income taxes paid           p   —                  (35.3)  (35.3)
                                  183.7      (0.1)        (0.3)   183.3

Investing activities                                                   

Business acquisitions       e     (5.9)        0.1                (5.8)

Dividends from an                   1.3                             1.3
associate

Additions to fixed               (44.5)                          (44.5)
assets

Proceeds on disposal of     k       2.8                   (2.8) —
fixed assets

Proceeds on disposal of     k   —                     2.8     2.8
investment properties

Additions to intangible           (6.8)                           (6.8)
assets
                                 (53.1)        0.1      —  (53.0)

Financing activities                                                   

Net change in bank                (0.8)                           (0.8)
loans

Shares issued                       0.3                             0.3

Shares redeemed                  (42.6)                          (42.6)

Acquisition of treasury           (8.9)                           (8.9)
shares

Increase in debt                    0.7                             0.7

Repayment of debt                 (2.8)                           (2.8)

Use of non-current          l   —                   (0.3)   (0.3)
provisions

Net change in other         l     (2.0)                     0.6   (1.4)
liabilities

Dividends                        (19.5)                          (19.5)
                                 (75.6)    —          0.3  (75.3)

Net change in cash and             55.0    —      —    55.0
cash equivalents

Cash and cash                     200.5                           200.5
equivalents —
beginning of period

Cash and cash                     255.5    —      —   255.5
equivalents — end
of period
                                                                 
                                                                 
                                  Fiscal year ended September 24, 2011
                                                 Adjustments           
                                        Accounting
                        Notes      GAAP  treatment Presentation    IFRS

Operating activities                                                   

Net earnings                      386.3        6.4                392.7

  Income taxes           aa, p  —        2.4        150.4   152.8

Earnings before income            386.3        8.8        150.4   545.5
taxes

Non-cash items                                                         

  Share of an               b    (42.6)        0.2               (42.4)
  associate's earnings

  Closure costs                     8.9                             8.9

  Depreciation and          z     195.2     (15.9)                179.3
  amortization

  Amortization of                   0.4                             0.4
  deferred financing
  costs

  Loss on disposal and      c       9.7        0.3                 10.0
  write-offs of fixed
  and intangible assets
  and investment
  properties

  Interest income from      p     (0.1)                     0.1 —
  investments

  Deferred taxes            p      14.6                  (14.6) —

  Impairment losses on      d   —       14.8                 14.8
  fixed and intangible
  assets and investment
  properties

  Impairment loss           d   —      (5.5)                (5.5)
  reversals on fixed
  and intangible assets

  Share-based                       6.3                             6.3
  compensation cost

  Difference between        f    (11.1)      (3.8)               (14.9)
  amounts paid for
  employee benefits and
  current fiscal year
  cost

  Financial costs, net      p   —                    41.5    41.5
                                  567.6      (1.1)        177.4   743.9

Net change in non-cash  e, l, p  (24.4)        0.8         16.5   (7.1)
working capital items

Interest paid               p   —                  (45.1)  (45.1)

Income taxes paid           p   —                 (149.3) (149.3)
                                  543.2      (0.3)        (0.5)   542.4

Investing activities                                                   

Business acquisitions       e    (74.5)        0.3               (74.2)

Net change in other                 5.4                             5.4
financial assets

Dividends from an                   4.7                             4.7
associate

Additions to fixed              (148.1)                         (148.1)
assets

Proceeds on disposal of     k       5.4                   (2.8)     2.6
fixed assets

Proceeds on disposal of     k   —                     2.8     2.8
investment properties

Additions to intangible          (19.9)                          (19.9)
assets
                                (227.0)        0.3      — (226.7)

Financing activities                                                   

Net change in bank                (0.7)                           (0.7)
loans

Shares issued                       7.0                             7.0

Shares redeemed                 (188.3)                         (188.3)

Acquisition of treasury           (8.9)                           (8.9)
shares

Performance share units           (0.4)                           (0.4)
cash settlement

Increase in debt                    8.4                             8.4

Repayment of debt                (12.1)                          (12.1)

Use of non-current          l   —                   (0.3)   (0.3)
provisions

Net change in other         l     (3.3)                     0.8   (2.5)
liabilities

Dividends                        (77.1)                          (77.1)
                                (275.4)    —          0.5 (274.9)

Net change in cash and             40.8    —      —    40.8
cash equivalents

Cash and cash                     214.7                           214.7
equivalents —
beginning of year

Cash and cash                     255.5    —      —   255.5
equivalents — end
of year

NOTES TO RECONCILIATIONS BY STANDARD

IFRS 1

a)Employee benefits

At the date of transition to IFRS, use of the exemption from retrospective 
application, allowing all actuarial gains and losses to be recognized in 
retained earnings, entailed the following adjustments:

Increase / (decrease)         Notes September 24, 2011

Financial position:                              

  Deferred tax assets            q                11.2

  Defined benefit assets         v              (47.3)

  Defined benefit liabilities    v                38.1

  Deferred tax liabilities       q              (10.9)

  Retained earnings              w              (63.3)

ACCOUNTING TREATMENT

b)Investment in an associate

Starting with the first quarter of its 2012 fiscal year, the publicly traded 
associate in which the Corporation has an interest issued its first IFRS 
consolidated financial statements. The Corporation's share of the adjustments 
related to the conversion of the associate's consolidated financial statements 
from GAAP to IFRS was made up of the following items:

Increase / (decrease)                    Notes September 24, 2011

Financial position:                                              

  Investment in an associate                r                 1.3

  Deferred tax liabilities                  q                 0.1

  Retained earnings                         w                 1.1

  Accumulated other comprehensive income    x                 0.1
                                               September 24, 2011

Increase / (decrease)                          12 weeks  52 weeks

Net earnings:                                                    

  Share in an associate's earnings                  0.1     (0.2)

Comprehensive income:                                            

  Share in an associate's comprehensive income                0.1

c)Fixed assets

Under IFRS, the roof and HVAC are separate building components whose useful 
life is less than the building's. The roof and HVAC are depreciated over 20 
years and the rest of the building over 50 years. Under GAAP, all of the 
building was depreciated over 40 years. This adjustment had the following 
impacts:

Increase / (decrease)              Notes            September 24, 2011

Financial position:                                                   

  Fixed assets                        t                           16.8

  Deferred tax assets                 q                          (1.0)

  Deferred tax liabilities            q                            3.4

  Retained earnings                   w                           12.4
                                                     
                                                     
                                                 September 24, 2011

Increase / (decrease)              Notes   12 weeks           52 weeks

Net earnings:                                        

  Depreciation and amortization       z         0.1                1.1

  Closure expenses                            (0.3)              (0.3)

  Income taxes                       aa         0.1              (0.2)

Cash flows:                                          

  Loss on disposal and write-offs         
  of fixed and
  intangible assets and investment
  properties                                    0.3                0.3

d)Impairment of assets

Under IFRS, impairment testing is conducted at the level of the asset itself, 
a cash generating unit (CGU) or group of CGUs. A CGU is the smallest 
identifiable group of assets that generates cash inflows that are largely 
independent of the cash inflows from other assets or groups of assets. Each 
store is a separate CGU, and impairment testing is performed at the store 
level. Impairment testing of warehouses is conducted at the level of the 
different groups of CGUs. As for goodwill, certain private labels and support 
assets that cannot be allocated wholly to a single CGU, impairment testing is 
conducted at the level of the unique operating segment. Impairment testing of 
investment properties, investment in an associate, banners, certain private 
labels and loyalty programs is conducted at the level of the asset itself. 
Under GAAP, impairment testing was done at the level of the asset itself, a 
group of assets or a reporting unit. These adjustments had the following 
impacts:

Increase / (decrease)           Notes            September 24, 2011

Financial position:                                                

  Fixed assets                     t                         (80.5)

  Investment properties            u                          (4.5)

  Intangible assets                                          (11.3)

  Deferred tax assets              q                           15.5

  Deferred tax liabilities         q                          (9.0)

  Retained earnings                w                         (71.8)
                                                  
                                                  
                                              September 24, 2011

Increase / (decrease)           Notes   12 weeks           52 weeks

Net earnings:                                                      

  Impairment losses                y      (12.0)             (14.8)

  Impairment loss reversals        y         5.5                5.5

  Depreciation and amortization    z         3.4               14.8

  Income taxes                    aa         0.8              (1.4)

e)Business combinations

Under IFRS, business combination-related costs are expensed when incurred. 
Only restructuring costs for the acquired business that would have been 
incurred even if there had been no business combination may be included in the 
purchase price allocation. Non-controlling interests are presented in equity. 
Under GAAP, business combination-related costs were considered in purchase 
price allocation. Restructuring costs for the acquired business could be 
included in the purchase price allocation. Non-controlling interests were 
presented in other liabilities. These adjustments had the following impacts:

Increase / (decrease)            Notes            September 24, 2011

Financial position:                                                 

  Goodwill                                                     (0.8)

  Other financial assets            s                          (0.3)

  Deferred tax liabilities          q                          (0.3)

  Other liabilities                                            (0.5)

  Retained earnings                 w                          (0.8)

  Non-controlling interests                                      0.5
                                               September 24, 2011

Increase / (decrease)            Notes   12 weeks           52 weeks

Net earnings:                                                       

  Operating expenses                y       (0.3)              (1.1)

  Income taxes                     aa         0.1                0.3

Cash flows:                                                         

  Business acquisitions                       0.1                0.3

  Net change in non-cash working              0.2                0.8
  capital items

f)Employee benefits

Actuarial gains or losses

Under IFRS, actuarial gains or losses are recognized in comprehensive income. 
Under GAAP, they were deferred and amortized using the corridor method and 
recognized in net earnings. This adjustment had the following impacts:

Increase / (decrease)             Notes            September 24, 2011

Financial position:                                                  

  Deferred tax assets                 q                         (1.1)

  Defined benefit assets              v                        (23.2)

  Defined benefit liabilities         v                          39.5

  Deferred tax liabilities            q                        (17.0)

  Retained earnings                   w                           3.0

  Accumulated other comprehensive     x                        (49.8)
  income
                                                    
                                                    
                                                September 24, 2011

Increase / (decrease)             Notes   12 weeks           52 weeks

Net earnings:                                                        

  Employee benefit expense           y         2.0                4.1

  Income taxes                      aa       (0.5)              (1.1)

Comprehensive income:                                                

  Actuarial losses                          (83.7)             (66.8)

  Corresponding income taxes                  21.3               17.0

Past service cost

Under IFRS, past service cost for vested benefits is recognized immediately in 
net earnings. Under GAAP, past service cost was amortized on a straight-line 
basis over the average remaining service period of active participants, 
regardless of vesting. This adjustment had the following impacts:

Increase / (decrease)         Notes            September 24, 2011

Financial position:                                              

  Deferred tax assets            q                            1.7

  Defined benefit liabilities    v                           10.6

  Deferred tax liabilities       q                          (0.9)

  Retained earnings              w                          (8.0)
                                       
                                       
                                            September 24, 2011

Increase / (decrease)         Notes   12 weeks           52 weeks

Net earnings:                                                    

  Employee benefit expense       y       (0.8)              (0.2)

  Income taxes                  aa         0.2                   

Asset ceiling and minimum funding requirement

Under IFRS, in the case of a surplus funded plan, defined benefit assets are 
limited to the availability of future contribution reductions calculated on a 
going concern and solvency basis. Furthermore, an additional liability could 
be recorded when minimum funding requirements exceed economic benefits 
available. Ceiling and minimum funding requirement effects are recognized for 
each period and recorded in comprehensive income. Under GAAP, in the case of a 
surplus funded plan, accrued benefit assets were limited to the availability 
of future contribution reductions calculated on a going concern basis. Any 
variances regarding the ceiling were recorded in net earnings. This adjustment 
had the following impacts:

Increase / (decrease)             Notes            September 24, 2011

Financial position:                                                  

  Defined benefit assets             v                         (11.1)

  Deferred tax liabilities           q                          (3.0)

  Retained earnings                  w                          (6.6)

  Accumulated other comprehensive    x                          (1.5)
  income
                                           
                                           
                                                September 24, 2011

Increase / (decrease)             Notes   12 weeks           52 weeks

Net earnings:                                       

  Employee benefit expense           y       (0.1)              (0.1)

Comprehensive income:                               

  Asset ceiling effect                         3.8                0.5

  Minimum funding requirement                (5.1)              (2.5)

  Corresponding income taxes                   0.4                0.5

Post-employment benefits

Post-employment benefits plans consist of pension benefits, post-employment 
life insurance, and post-employment health care. Certain plans provide 
post-employment life insurance and health care benefits only to employees with 
a minimum of 20 years of service and aged 65 at retirement. Under IFRS, vested 
rights to these plans are recognized only when employees turn 45, if hired 
before then. Under GAAP, recognition was from an employee's hiring date for 
employees hired before they were 45 years old. As the recognition date is 
later under IFRS than under GAAP, recognized obligations are less under IFRS. 
This adjustment had the following impacts:

Increase / (decrease)    Notes September 24, 2011

Financial position:                              

  Defined benefit assets    v                 3.8

  Deferred tax assets       q               (0.9)

  Retained earnings         w                 2.9

g)Income taxes

Under IFRS, differences between the carrying amount and tax base of intangible 
assets with indefinite useful lives have to be recognized as deferred tax 
assets or liabilities based on applicable tax rates when the asset is to be 
realized. Since these intangible assets are not amortized, they are deemed to 
be realized upon their disposal and therefore the capital gains tax rate was 
used. Under GAAP, the common practice was to use the corporate tax rate in 
accounting for deferred taxes. This adjustment had the following impacts:

Increase / (decrease)      Notes September 24, 2011

Financial position:                                

  Deferred tax liabilities    q              (13.1)

  Retained earnings           w                13.1

h)Share-based payment

Under IFRS, when stock option awards vest gradually, each tranche is 
considered as a separate award with recognition of the compensation expense 
over the vesting term of each tranche. Under GAAP, all tranches were 
considered as a single award with straight-line recognition of the 
compensation expense over the total vesting term of all tranches. This 
adjustment had the following impacts:

Increase / (decrease) Notes September 24, 2011

Financial position:                           

  Contributed surplus                      2.1

  Retained earnings      w               (2.1)

PRESENTATION

i)Assets held for sale

Under IFRS, assets held for sale are presented separately in the consolidated 
statement of financial position. Under GAAP, they were included in accounts 
receivable. The impact of this reclassification as at September 24, 2011 was 
$6.6.

j) Investment in an associate

Under IFRS, investments accounted for using the equity method are presented 
separately in the consolidated statement of financial position. Under GAAP, 
they were included in investments and other assets. The impact of this 
reclassification as at September 24, 2011 was $257.4 (notes r and s).

k) Investment properties

Under IFRS, investment properties are held for capital appreciation and to 
earn rentals. They are not occupied by the owner for its ordinary activities. 
They are presented separately in the consolidated statement of financial 
position. Under GAAP, the concept of investment properties did not exist and 
such land and buildings were included in fixed assets. This reclassification 
has the following impacts:

Increase / (decrease)             Notes            September 24, 2011

Financial position:                               
    Fixed assets                     t                         (31.5)
    Investment properties            u                           31.5
                                                    
                                                September 24, 2011

Increase / (decrease)                     12 weeks           52 weeks

Cash flows:                                                          
    Proceeds on disposal of fixed            (2.8)              (2.8)
    assets
    Proceeds on disposal of                    2.8                2.8
    investment properties


l) Provisions 
Under IFRS, current and non-current provisions are presented separately in the 
consolidated statement of financial position. Under GAAP, they were included 
in accounts payable and other long-term liabilities. This reclassification had 
the following impacts:  
Increase / (decrease)                             September 24, 2011 
Financial position:                                                  
Current provisions                                            17.3 
Accounts payable                                            (17.3) 
Non-current provisions                                         4.0 
Other liabilities                                            (4.0) 


                                                                    
                                                                    
                                               September 24, 2011

Increase / (decrease)                    12 weeks           52 weeks

Cash flows:                                                         

  Net change in non-cash working capital    (0.3)              (0.5)
  items

  Non-current provisions used               (0.3)              (0.3)

  Net change in other liabilities             0.6                0.8

m) Debt

Under IFRS, financial liabilities at the closing date will mature within the 
next 12 months are presented in current items in the statement of financial 
position, even if a refinancing agreement is entered into after the closing 
date and before the financial statements are authorized for issue. Under GAAP, 
they were presented with the non-current items in the statement of financial 
position. The impact of this reclassification as at September 24, 2011 was 
$369.3 for the Credit A Facility.

n) Deferred taxes

Under IFRS, deferred tax assets and liabilities are classified as non-current 
items in the consolidated statement of financial position. Under GAAP, the 
current and non-current portions of deferred tax assets and liabilities were 
presented separately. The impacts of this reclassification of current deferred 
tax assets and liabilities as at September 24, 2011 were $19.2 and $11.2 (note 
q).

o) Loyalty programs

Under IFRS, the cost of loyalty program points is recorded as a reduction in 
sales. Under GAAP, it was recorded in the cost of sales and operating 
expenses. The impact of this reclassification for the 12-week period ended 
September 24, 2011 was $7.2 and $34.2 for the year ended September 24, 2011 
(note y).

p) Interest and income taxes paid

Under IFRS, interest and income taxes paid are incorporated in the 
consolidated statement of cash flows. Under GAAP, interest and income taxes 
paid were presented as supplementary information. This reclassification had 
the following impacts:
                                               September 24, 2011

Increase / (decrease)                          12 weeks 52 weeks

Cash flows:                                              

  Financial costs, net                              9.4      41.5

  Interest paid                                   (2.4)    (45.1)

  Interest income from investments                            0.1

  Income taxes                                     32.2     150.4

  Income taxes paid                              (35.3)   (149.3)

  Deferred income taxes                          (16.8)    (14.6)

  Net change in non-cash working capital items     12.9      17.0

SUMMARY OF FINANCIAL STATEMENT ADJUSTMENTS

FINANCIAL POSITION

q) Deferred tax assets and liabilities

Deferred tax assets                                    
                                            September 24, 2011


                                       Accounting
Increase / (decrease)        Notes  IFRS 1  treatment Presentation 
Exemption from retrospective    a     11.2                        
application 
Fixed assets                    c               (1.0)              
Impairment of assets            d                15.5              
Employee benefits                                                  
Actuarial gains or losses     f               (1.1)              
Past service cost             f                 1.7              
Post-employment benefits      f               (0.9)              
Reclassification of current     n                             19.2
portion 


                                      11.2       14.2         19.2
                                                                  
                                                                  

Deferred tax liabilities                                          
                                             September 24, 2011


                                       Accounting
Increase / (decrease)        Notes IFRS 1   treatment Presentation 
Exemption from retrospective        (10.9)                        
application                     a 
Investment in an associate      b                 0.1              
Fixed assets                    c                 3.4              
Impairment of assets            d               (9.0)              
Business combinations           e               (0.3)              
Employee benefits                                                  
Actuarial gains or losses     f              (17.0)              
Past service cost             f               (0.9)              
Asset ceiling and minimum                     (3.0)             
  funding requirement           f 
Income taxes                    g              (13.1)              
Reclassification of current                                   11.2
portion                         n 


                                    (10.9)     (39.8)         11.2

r) Investment in an associate
                                                 September 24, 2011


                                          Accounting
Increase / (decrease)                   Notes  treatment Presentation 
Share of an associate's IFRS conversion    b         1.3              
Reclassification of other financial        j                    257.4
assets 
                                                 1.3        257.4 
s) Other financial assets 
                                          September 24, 2011 
Increase / (decrease)                      Accounting 
                                 Notes  treatment Presentation 
Business combinations                   e       (0.3)              
Reclassification of investment in an    j                  (257.4)
associate 


                                                (0.3)      (257.4)



t) Fixed assets
                                                   September 24, 2011


                                            Accounting
Increase / (decrease)                     Notes  treatment Presentation 
Components                                   c        16.8              
Impairment of assets                         d      (80.5)              
Reclassification of investment properties    k                   (31.5) 


                                                    (63.7)       (31.5)



u) Investment properties
                                          September 24, 2011


                                   Accounting
Increase / (decrease)            Notes  treatment Presentation 
Impairment of assets                d       (4.5)              
Reclassification of fixed assets    k                     31.5 


                                            (4.5)         31.5

v) Defined benefit assets and liabilities

Defined benefit assets                                           
                                               September 24, 2011


                                                   Accounting
Increase / (decrease)                    Notes IFRS 1   treatment 
Exemption from retrospective application    a  (47.3)   
Employee benefits                                                 
Actuarial losses                          f              (23.2) 
Asset ceiling and minimum funding                        (11.1)
  requirement                               f 
Post-employment benefits                  f                 3.8 


                                               (47.3)      (30.5)
                                                       
                                                       

Defined benefit liabilities                            
                                               September 24, 2011


                                                   Accounting
Increase / (decrease)                    Notes IFRS 1   treatment 
Exemption from retrospective application    a    38.1             
Employee benefits                                                 
Actuarial losses                          f                39.5 
Past service cost                         f                10.6 


                                                 38.1        50.1

w) Retained earnings
                                               September 24, 2011


                                                   Accounting
Increase / (decrease)                    Notes IFRS 1   treatment 
Exemption from retrospective application    a  (63.3)             
Investment in an associate                  b                 1.1 
Fixed assets                                c                12.4 
Impairment of assets                        d              (71.8) 
Business combinations                       e               (0.8) 
Employee benefits                                       
Actuarial gains or losses                 f                 3.0 
Past service cost                         f               (8.0) 
Asset ceiling and minimum funding                         (6.6)
  requirement                               f 
Post-employment benefits                  f                 2.9 
Income taxes                                g                13.1 
Share-based payment                         h               (2.1) 


                                               (63.3)      (56.8)

x) Accumulated other comprehensive income
                                          September 24, 2011


                                              Accounting
Increase / (decrease)               Notes          treatment 
Investment in an associate             b                 0.1 
Employee benefits                                            
Actuarial losses                     f              (49.8) 
Asset ceiling and minimum funding                    (1.5)
  requirement                          f 


                                                      (51.2)

NET EARNINGS

y) Cost of sales and operating expenses
                                             September 24, 2011
                                   12 weeks                52 weeks

Increase /              Accounting              Accounting
(decrease)        Notes  treatment Presentation  treatment Presentation

Impairment of                                                          
assets                

  Impairment                (12.0)                  (14.8)             
  losses             d

  Impairment loss              5.5                     5.5             
  reversals          d

Business                     (0.3)                   (1.1)             
combinations         e

Employee benefits                                                      

  Actuarial gains              2.0                     4.1             
  or losses          f

  Past service               (0.8)                   (0.2)             
  cost               f

  Asset ceiling              (0.1)                   (0.1)             
  and minimum
  funding
  requirement        f

Loyalty programs     o                      7.2                    34.2
                             (5.7)          7.2      (6.6)         34.2

z) Depreciation and amortization
                              September 24, 2011
                              12 weeks   52 weeks


                        Accounting Accounting
Decrease / (increase) Notes  treatment  treatment 
Fixed assets             c         0.1        1.1 
Impairment of assets     d         3.4       14.8 


                                   3.5       15.9

aa) Income taxes
                                    September 24, 2011
                                    12 weeks   52 weeks


                              Accounting Accounting
Decrease / (increase)       Notes  treatment  treatment 
Fixed assets                   c         0.1      (0.2) 
Impairment of assets           d         0.8      (1.4) 
Business combinations          e         0.1        0.3 
Employee benefits                                       
Actuarial gains or losses    f       (0.5)      (1.1) 
Past service cost            f         0.2            


                                         0.7      (2.4)

3. NEW ACCOUNTING POLICIES

RECENTLY ISSUED

Classification and measurement of financial assets and financial liabilities

In November 2009, the International Accounting Standards Board (IASB) 
published IFRS 9 "Financial Instruments". This new standard simplifies the 
classification and measurement of financial assets set out in IAS 39 
"Financial Instruments: Recognition and Measurement". Financial assets are to 
be measured at amortized cost or fair value. They are to be measured at 
amortized cost if the two following conditions are met:

a)the assets are held within a business model whose objective is to collect 
contractual cash flows; and
b) the contractual cash flows are solely payments of principal and interest on 
the outstanding principal.

All other financial assets are to be measured at fair value through net 
earnings. The entity may, if certain conditions are met, elect to use the fair 
value option instead of measurement at amortized cost. As well, the entity may 
choose upon initial recognition to measure non-trading equity investments at 
fair value through comprehensive income. Such a choice is irrevocable.

In October 2010, the IASB issued revisions to IFRS 9, adding the requirements 
for classification and measurement of financial liabilities contained in IAS 
39 and further points. For financial liabilities measured at fair value 
through net earnings using the fair value option, the amount of change in a 
liability's fair value attributable to changes in its credit risk is 
recognized directly in other comprehensive income.

In December 2011, the IASB deferred the mandatory effective date of IFRS 9 to 
fiscal years beginning on or after January 1, 2015. Early adoption is 
permitted under certain conditions. An entity is not required to restate 
comparative financial periods for its first-time application of IFRS 9, but 
must comply with the new disclosure requirements.

Offsetting financial assets and financial liabilities

In December 2011, the IASB issued amendments to IAS 32 "Financial Instruments: 
Presentation" clarifying the requirements for offsetting financial assets and 
financial liabilities. These amendments shall be applied to annual periods 
beginning on or after January 1, 2014.

The IASB also issued amendments to IFRS 7 "Financial Instruments: Disclosures" 
improving disclosure on offsetting of financial assets and financial 
liabilities. These amendments shall be applied to annual and interim periods 
beginning on or after January 1, 2013.

Consolidated Financial Statements

In May 2011, the IASB published IFRS 10 "Consolidated Financial Statements" 
which is a replacement of SIC-12 "Consolidation-Special Purpose Entities", and 
certain parts of IAS 27 "Consolidated and Separate Financial Statements". IFRS 
10 uses control as the single basis for consolidation, irrespective of the 
nature of the investee, employing the following factors to identify control:

a)power over the investee;
b)exposure or rights to variable returns from involvement with the investee;
c)the ability to use power over the investee to affect the amount of the 
investor's returns.

IFRS 10 shall be applied to fiscal years beginning on or after January 1, 
2013. Early adoption is permitted under certain conditions.

Joint Arrangements

In May 2011, the IASB published IFRS 11 "Joint Arrangements" which supersedes 
IAS 31 "Interests in Joint Ventures" and SIC-13 "Jointly Controlled Entities - 
Non-Monetary Contributions by Venturers". IFRS 11 requires that joint ventures 
be accounted for using the equity method of accounting and eliminates the need 
for proportionate consolidation. This new standard shall be applied to fiscal 
years beginning on or after January 1, 2013. Early adoption is permitted under 
certain conditions.

Disclosure of Interests in Other Entities

In May 2011, the IASB published IFRS 12 "Disclosure of Interests in Other 
Entities" which requires that an entity disclose information on the nature of 
and risks associated with its interests in other entities (i.e. subsidiaries, 
joint arrangements, associates or unconsolidated structured entities) and the 
effects of those interests on its financial statements. IFRS 12 shall be 
applied to fiscal years beginning on or after January 1, 2013. Early adoption 
is permitted under certain conditions. Entities may, without early adoption of 
IFRS 12, choose to incorporate only some of the required disclosures in their 
financial statements.

Fair Value Measurement

In May 2011, the IASB published IFRS 13 "Fair Value Measurement" to establish 
a single framework for fair value measurement of financial and non-financial 
items. IFRS 13 defines fair value as the price that would be received to sell 
an asset or paid to transfer a liability in an orderly transaction between 
market participants at the measurement date. It also requires disclosure of 
certain information on fair value measurements. IFRS 13 shall be applied to 
fiscal years beginning on or after January 1, 2013. Early adoption is 
permitted.

Employee Benefits

In June 2011, the IASB issued amendments to IAS 19 "Employee Benefits". 
Changes in defined benefit obligations and plan assets are to be recognized in 
comprehensive income when they occur, thus eliminating the corridor approach 
and accelerating recognition of past service cost. Net interest is to be 
recognized in net earnings and calculated using the discount rate by reference 
to market yields at the end of the reporting period on high quality corporate 
bonds. The actual return on plan assets minus net interest is to be recognized 
in other comprehensive income. These amendments shall be applied to fiscal 
years beginning on or after January 1, 2013. Early adoption is permitted.

Presentation of Financial Statements

In June 2011, the IASB issued amendments to IAS 1 "Presentation of Financial 
Statements". Items of other comprehensive income and the corresponding tax 
expense are required to be grouped into those that will and will not 
subsequently be reclassified through net earnings. These amendments shall be 
applied to fiscal years beginning on or after July 1, 2012. Early adoption is 
permitted.

At present, the Corporation is assessing the impact of the above-mentioned 
amendments on its earnings, financial position and cash flows.

4. BUSINESS ACQUISITIONS

ADONIS AND PHOENICIA

On October 23, 2011, the Corporation acquired 55% of the net assets of Adonis, 
a Montreal-area retailer with four existing stores and a fifth one under 
construction that was opened in December 2011, as well as Phoenicia, an 
importer and wholesaler with a distribution centre in Montreal and another in 
the Greater Toronto Area. These businesses specialize in perishable and ethnic 
food products. In the fourth quarter of 2012, an adjustment of $0.7 was 
recorded for a final purchase price paid by the Corporation for the 55% 
interest of $161.4 with a remaining balance of $11.6 to be paid. The 
acquisition was accounted for using the purchase method. The Corporation 
controls the acquired businesses and consolidated their earnings as of the 
date of acquisition. The final total purchase price allocation was as follows:

Net assets acquired at their fair value                   

  Cash                                                      3.0

  Accounts receivable                                      10.6

  Inventories                                              24.3

  Prepaid expenses                                          0.5

  Fixed assets                                             11.9

  Intangible assets                                            
    Finite useful life                                     10.7
    Indefinite useful life                                 63.4

  Goodwill                                                206.8

  Bank loans                                             (15.5)

  Accounts payable                                        (5.4)

  Debt                                                   (10.4)

  Deferred tax liabilities                                (6.4)
                                                         293.5
                                                          

Cash consideration                                       149.8

Balance due                                                11.6

Total consideration for the Corporation's interest (55%) 161.4

Non-controlling interest (45%)                           132.1
                                                         293.5

The non-controlling interest was measured at 45% of the fair value of the 
acquired companies' net assets.

The goodwill from the acquisition corresponds to the growth potential of 
Adonis stores and the broadening of the Corporation's customer base through 
improvement of the ethnic food offering in all its stores. In the goodwill's 
tax treatment, 53% of the goodwill will be treated as an eligible capital 
property with related tax deductions and 47% as non-deductible.

Since their acquisition, the acquired businesses have increased Corporation 
sales and net earnings by $236.6 and $16.0 respectively. If the acquisition 
had taken place at the beginning of fiscal 2012, the acquired businesses would 
have increased Corporation sales and net earnings by an additional amount of 
$16.5 and $1.1 respectively.

Acquisition-related costs of $1.1 were recorded in cost of sales and operating 
expenses.

AFFILIATED STORES

During fiscal 2011, the Company acquired 11 affiliated stores which it already 
supplied. The total purchase price was $74.2 in cash. The acquisition of these 
stores was accounted for using the purchase method. The stores' results have 
been consolidated as of their respective acquisition dates. The final purchase 
price allocation was as follows:

Net assets acquired at their fair value     

  Inventories                           10.2

  Fixed assets                          12.7

  Deferred tax assets                    2.4

  Goodwill                              48.9

Cash consideration                      74.2

The goodwill resulting from the acquisition corresponds to the additional 
contribution expected from these stores. The tax treatment of the goodwill was 
an eligible capital property with the related tax deductions.

Acquisition-related costs of $0.3 were recorded in cost of sales and operating 
expenses.

5. ADDITIONAL INFORMATION ON THE NATURE OF EARNINGS COMPONENTS
                                   Fiscal Year           Fiscal Year
                                 2012        2011      2012        2011
                            (13 weeks) (12 weeks) (53 weeks) (52 weeks)

Sales                          2,943.7    2,649.5   12,010.8   11,396.4

Cost of sales and operating                                            
expenses

  Cost of sales              (2,400.2)  (2,181.0)  (9,800.3)  (9,333.6)

  Wages and fringe benefits    (161.8)    (132.7)    (662.1)    (620.9)

  Employee benefit expense      (11.6)      (8.2)     (49.1)     (45.7)

  Rents, taxes and common       (62.5)     (56.6)    (262.1)    (253.8)
  costs

  Electricity and natural       (28.3)     (26.8)    (114.0)    (111.0)
  gas

  Impairment losses on           (2.1)     (12.0)     (10.3)     (14.8)
  fixed, intangible assets
  and investment properties

  Impairment loss reversals        3.6        5.5       10.0        5.5
  on fixed and intangible
  assets

  Other expenses                (71.6)     (65.7)    (301.2)    (277.7)
                             (2,734.5)  (2,477.5) (11,189.1) (10,652.0)

Share of an associate's                                                
earnings

  Share of earnings               12.1       15.3       47.6       42.4

  Dilution gain                   25.0    —       25.0    —
                                  37.1       15.3       72.6       42.4

Closure costs                  —     (20.5)    —     (20.5)

Depreciation and                                                       
amortization

  Fixed assets                  (34.1)     (33.9)    (150.5)    (146.1)

  Investment properties        —    —      (0.1)      (0.1)

  Intangible assets              (7.7)      (7.6)     (33.3)     (33.1)
                                (41.8)     (41.5)    (183.9)    (179.3)

Financing costs, net                                                   

  Current interest               (0.9)      (0.2)      (2.9)      (1.1)

  Non-current interest          (11.2)      (9.8)     (45.1)     (43.3)

  Amortization of deferred       (0.1)      (0.2)      (0.3)      (0.4)
  financing costs

  Interest income                  0.6        0.8        2.2        3.5

  Passage of time                (0.1)    —      (0.3)      (0.2)
                                (11.7)      (9.4)     (46.4)     (41.5)

Earnings before income           192.8      115.9      664.0      545.5
taxes

Impairment losses and impairment loss reversals recorded during the periods 
were particularly on food stores where cash flows decreased or increased due 
to local competition.

In August 2012, Alimentation Couche-Tard issued 7.3 million shares for net 
proceeds of approximately $330 to finance part of its acquisition of Statoil 
Fuel & Retail ASA. As the Corporation did not participate in this share issue, 
its interest in Couche-Tard decreased from 11.6% to 11.1%. This dilution and 
the Corporation's share in Couche-Tard's increased value as a result of the 
share issue amount to a deemed disposition and deemed proceeds of disposition 
of part of its investment for a net pre-tax gain of $25.0.

In the fourth quarter of 2011, non-recurring closure costs of $20.5 before 
taxes, consisting of dismantling expenses, asset write-offs and others, were 
incurred for the closure of the Montreal meat-processing plant and a grocery 
warehouse in Toronto.

6. INCOME TAXES

The effective income tax rates were as follows:
                                   Fiscal Year           Fiscal Year


                              2012       2011       2012       2011
(Percentage)                (13 weeks) (12 weeks) (53 weeks) (52 weeks) 
Combined statutory income         27.2       28.8       27.2       28.8
tax rate 
Changes                                                        
Impact on deferred taxes
  due to postponement of
  1.5% future
  reductions of Ontario tax
  rate                         —    —        0.5    — 
Share of an associate's        (2.9)      (2.3)      (1.8)      (1.3)
  earnings 
Others                             0.4        0.7        0.4        0.5 


                                  24.7       27.2       26.3       28.0

7. NET EARNINGS PER SHARE

Basic net earnings per share and fully diluted net earnings per share were 
calculated using the following number of shares:
                                   Fiscal Year           Fiscal Year


                              2012       2011       2012       2011
(Millions)                  (13 weeks) (12 weeks) (53 weeks) (52 weeks) 


                                                              

Weighted average number of
shares
outstanding - Basic               97.2      101.5       98.9      103.1

Dilutive effect under:                                        

  Stock option plan                0.4        0.4        0.4        0.4

  Performance share unit           0.3        0.2        0.3        0.1
  plan

Weighted average number of
shares
outstanding - Fully diluted       97.9      102.1       99.6      103.6

8. DEBT

In the first quarter of fiscal 2012, the Corporation obtained a new $600.0 
five-year revolving credit facility and cancelled the unused $400.0 revolving 
line of credit maturing on August 15, 2012. The Corporation used part of the 
new credit facility to pay back the $369.3 Credit A Facility when it matured 
on August 15, 2012. The new credit facility bears interest at rates that 
fluctuate with changes in banker's acceptance rates and is unsecured. As at 
September 29, 2012, $284.6 from the $600.0 revolving credit facility remained 
undrawn.

9. CAPITAL STOCK

AUTHORIZED

Following the Annual General Meeting of Shareholders held on January 31, 2012, 
the Corporation's share capital has been changed as follows:
    --  each issued and outstanding Class B share carrying 16 votes per
        share has been converted into one single vote Class A
        Subordinate Share;
    --  the Class B shares, along with the rights, privileges,
        restrictions and conditions attached thereto, have been
        eliminated;
    --  the Class A Subordinate Shares have been redesignated as
        "Common Shares" and constitute the Corporation's sole class of
        equity shares carrying one vote per share;
    --  First Preferred Shares have been redesignated as "Preferred
        Shares".

OUTSTANDING

To facilitate reading, the Corporation has restated all prior periods 
disclosed to reflect the share capital reorganization of January 31, 2012 as 
if it had always existed. Therefore, only the Common Shares are disclosed in 
this note. This restatement is possible since Class B Shares and Class A 
Subordinate Shares were participating shares. The differences between these 
classes of shares were primarily voting rights, the exclusivity of Class B 
Shares held by Metro Merchants, and that Class B Shares were not listed on the 
Toronto Stock Exchange.

The outstanding Common Shares were summarized as follows:
                                                        Common Shares
                                                       Number          
                                                  (Thousands)

Balance as at September 26, 2010                      105,069     702.1

Shares issued for cash                                      1   —

Shares redeemed for cash, excluding premium of        (4,147)    (27.9)
$160.4

Acquisition of treasury shares, excluding premium       (190)     (1.3)
of $7.6

Released treasury shares                                   94       0.6

Stock options exercised                                   257       9.1

Balance as at September 24, 2011                      101,084     682.6

Shares issued for cash                                      2       0.1

Shares redeemed for cash, excluding premium of        (4,213)    (28.7)
$186.3

Acquisition of treasury shares, excluding premium        (50)     (0.3)
of $2.3

Released treasury shares                                   92       0.6

Stock options exercised                                   271      10.3

Balance as at September 29, 2012                       97,186     664.6

STOCK OPTION PLAN

The outstanding options were summarized as follows:
                                                   Weighted
                                                    average
                                      Number exercise price
                                 (Thousands)      (Dollars)

Balance as at September 26, 2010       1,777          32.29

Granted                                  290          47.06

Exercised                              (257)          27.30

Cancelled                               (34)          34.67

Balance as at September 24, 2011       1,776          35.38

Granted                                  293          53.76

Exercised                              (271)          29.77

Cancelled                              (115)          38.44

Balance as at September 29, 2012       1,683          39.27

The exercise prices of the outstanding options ranged from $24.73 to $58.41 as 
at September 29, 2012 with expiration dates up to 2019 with 521 of those 
options exercisable at a weighted average exercise price of $31.47. 
The compensation expense for these options amounted to $0.8 for the 13-week 
period ended September 29, 2012 (2011 - $0.6) and to $2.3 for fiscal 2012 
(2011 - $2.5). 
PERFORMANCE SHARE UNIT PLAN 
The number of performance share units (PSUs) outstanding was as follows:
                                      Number
                                     (Units)

Balance as at September 26, 2010     308,904

Granted                              110,756

Settled                            (104,153)

Cancelled                            (5,778)

Balance as at September 24, 2011     309,729

Granted                               97,043

Settled                             (94,499)

Cancelled                           (28,096)

Balance as at September 29, 2012     284,177

The number of Corporation Common Shares held in trust for participants was as 
follows:
                                     Number
                                    (Units)

Balance as at September 26, 2010    203,548

Acquisition of treasury shares      190,000

Released treasury shares           (93,608)

Balance as at September 24, 2011    299,940

Acquisition of treasury shares       50,000

Released treasury shares           (91,907)

Balance as at September 29, 2012    258,033

The compensation expense for the PSU plan amounted to $1.2 for the 13-week 
period ended September 29, 2012 (2011 - $0.8) and to $3.8 for fiscal 2012 
(2011 - $3.8).  

10. ACCUMULATED OTHER COMPREHENSIVE INCOME
                                    Defined benefit Share of an
                    Cash flow hedge           plans   associate   Total

Balance as at                 (0.3)         —     —   (0.3)
September 26, 2010

  Change in the                 0.4                                 0.4
  fair value of a
  derivative
  designated as
  cash flow hedge

  Changes in                                                           
  defined benefit
  plans
    Actuarial                                (66.8)              (66.8)
    losses
    Asset ceiling                               0.5                 0.5
    effect
    Minimum funding                           (2.5)               (2.5)
    requirement

  Share of an                                               0.1     0.1
  associate's other
  comprehensive
  income

  Corresponding               (0.1)            17.5                17.4
  income taxes

Balance as at               —          (51.3)         0.1  (51.2)
September 24, 2011

  Changes in                                                           
  defined benefit
  plans
    Actuarial                                (65.6)              (65.6)
    losses
    Asset ceiling                             (2.7)               (2.7)
    effect
    Minimum funding                             0.1                 0.1
    requirement

  Share of an                                             (0.6)   (0.6)
  associate's other
  comprehensive
  income

  Corresponding                                18.9         0.1    19.0
  income taxes

Balance as at               —         (100.6)       (0.4) (101.0)
September 29, 2012

11. EVENT AFTER THE REPORTING PERIOD

On October 22, 2012, the Corporation announced a conditional agreement to 
dispose of its food service operation, the Distagro division, which supplies 
restaurant and gas station chains. The disposal for a consideration of 
approximately $15 excluding working capital and a net gain after taxes of 
approximately $7 should take place in the next few weeks.

The transaction will be recorded in the financial statements as a discontinued 
operation and the Corporation's consolidated income statements for current and 
prior periods will be restated. Related Distagro sales and expenditures will 
be recorded as a net loss on a discontinued operation under a separate income 
statement section.

12. APPROVAL OF FINANCIAL STATEMENTS

The condensed consolidated financial statements for the 13-week and 53-week 
periods ended September 29, 2012 (including comparative figures) were approved 
for issue by the Board of Directors on November 13, 2012.



François Thibault Senior Vice-President, Chief Financial Officer and 
Treasurer Tel.: (514) 643-1003

METRO INC. Investor Relations Department Telephone: (514) 643-1055 
E-mail:finance@metro.ca

METRO INC. corporate information and press releases are available on the  
Internet at the following address:www.metro.ca

SOURCE: METRO INC.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/14/c5974.html

CO: METRO INC.
ST: Quebec
NI: RET FBR FOD ERN DIV CONF 

-0- Nov/14/2012 12:00 GMT


 
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