Loblaw Companies Limited Reports 2012 Fourth Quarter and Fiscal Year Ended December 29, 2012 Results(1)

Loblaw Companies Limited Reports 2012 Fourth Quarter and Fiscal Year Ended 
December 29, 2012 Results(1) 
BRAMPTON, ON, Feb. 21, 2013 /CNW/ - Loblaw Companies Limited (TSX: L) 
("Loblaw" or the "Company") today announced its unaudited financial results 
for the fourth quarter of 2012 and the release of its 2012 Annual Report - 
Financial Review, which includes the Company's audited consolidated financial 
statements and Management's Discussion and Analysis for the fiscal year ended 
December 29, 2012. The Company's 2012 Annual Report will be available in the 
Investor Centre section of the Company's website at loblaw.ca and will be 
filed with SEDAR and available at sedar.com. 
Fourth Quarter 2012 Summary((1) ) 


    --  Basic net earnings per common share of $0.51, including a $0.16
        charge related to restructuring, compared to $0.62 in the
        fourth quarter of 2011.
    --  EBITDA margin((2)) of 6.0%, or 6.8% excluding the charge for
        restructuring, compared to 6.6% in the fourth quarter of 2011.
    --  Revenue of $7,465 million, an increase of 1.2% over the fourth
        quarter of 2011.
    --  Retail sales growth of 0.9% and flat same-store sales((3)).

"2012 was a pivotal year for Loblaw - improving the customer proposition, 
driving the infrastructure program, and reducing costs," said Galen G. Weston, 
Executive Chairman, Loblaw Companies Limited. "Despite challenges during the 
year, the team delivered on plan. Good performance metrics in the last 
quarter of 2012 and through the beginning of 2013 indicate that management's 
strategy is taking hold."

"Looking forward, I am confident that our customer offer is improving 
steadily, the team is driving efficiencies appropriately, and has a 
disciplined approach to growth. This combination will further strengthen our 
business and build long term value for shareholders."

Consolidated Quarterly Results of Operations
                                                                                     

For the
periods
ended
December
29,
2012 and
December 31
2011
(unaudited)                                                                          

(millions
of Canadian
dollars
except                                                     
where                                                  2012           
otherwise          2012       2011      $       %       (52       2011      $       %
indicated)   (12 weeks) (12 weeks) Change  Change    weeks) (52 weeks) Change  Change

Revenue                            $                   $          $     $    
              $   7,465  $   7,373     92    1.2%    31,604     31,250    354    1.1%

Operating                                                             
income              262        315   (53) (16.8%)     1,196      1,384  (188) (13.6%)

Net
earnings            143        174   (31) (17.8%)       650        769  (119) (15.5%)

Basic net
earnings
per common
share ($)          0.51       0.62 (0.11) (17.7%)      2.31       2.73 (0.42) (15.4%)

Operating
margin((3))        3.5%       4.3%                     3.8%       4.4%               

EBITDA((2))                                           $    
              $     449  $     485   (36)  (7.4%)     1,973 $    2,083  (110)  (5.3%)

EBITDA
margin((2))        6.0%       6.6%                     6.2%       6.7%               
                                                                                     

(1)      This News Release contains forward-looking information. See
         Forward-Looking Statements in this News Release for a
         discussion of material factors that could cause actual results
         to differ materially from the conclusions, forecasts and
         projections herein and of the material factors and assumptions
         that were used when making these statements. This News Release
         should be read in conjunction with Loblaw Companies Limited's
         filings with securities regulators made from time to time, all
         of which can be found at
         sedar.com and at
         loblaw.ca.

(2)      See Non-GAAP Financial Measures in this News Release.

(3)      For financial definitions and ratios refer to the Glossary of
         Terms in the Company's 2012 Annual Report - Financial Review.
    --  During the fourth quarter of 2012, the Company announced a plan
        that reduced the number of head office and administrative
        positions. Focused primarily on management and office
        positions, the plan affected approximately 700 jobs. In the
        fourth quarter of 2012, the Company incurred a $61 million
        charge associated with this restructuring.
    --  For 2012, the Company incurred $55 million of incremental
        investment in its customer proposition that was not covered by
        operations, comprised of $20 million in price, $15 million in
        shrink and $20 million in labour. Of this amount, $15 million
        was incurred in the fourth quarter of 2012, $10 million of
        which was in shrink and $5 million was in labour.
    --  The $92 million increase in revenue compared to the fourth
        quarter of 2011 was driven by increases in both the Company's
        Retail and Financial Services operating segments, as described
        below.
    --  Operating income decreased by $53 million compared to the
        fourth quarter of 2011 as a result of a decrease in Retail
        operating income of $69 million, partially offset by an
        increase in Financial Services operating income of $16 million.


    Operating income included the following notable items:
  o A $61 million charge associated with the reduction in head office 
and administrative positions;
  o Incremental costs of $19 million related to investments in 


    information technology ("IT") and supply chain. These costs
    included the following charges:
    # $79 million (2011 - $67 million) related to IT costs;
    # $53 million (2011 - $43 million) related to depreciation and
      amortization;
    # $2 million (2011 - $7 million) related to other supply chain
      project costs; and
    # $2 million (2011 - nil) related to changes in the distribution


  network.
  o A $17 million charge (2011 - $5 million) for fixed asset 
impairments net of recoveries, related to asset carrying values in 
excess of recoverable amounts for specific retail locations;
  o A $5 million charge (2011 - $23 million) related to the transition 


    of certain Ontario conventional stores to the more cost effective
    and efficient operating terms of collective agreements ratified in


2010;
  o A $2 million charge (2011 - $4 million) related to the effect of 
share-based compensation net of equity forwards; and
  o A nil charge (2011 - $16 million) related to start-up costs 


    associated with the launch of the Company's Joe Fresh brand in the
    United States.
    --  Operating margin((1)) was 3.5%, or 4.3% excluding the charge
        for restructuring, for the fourth quarter of 2012 compared to
        4.3% in the same quarter in 2011.
    --  The decrease in net earnings of $31 million compared to the
        fourth quarter of 2011 was primarily due to the decrease in
        operating income, partially offset by a decline in the
        effective income tax rate.
    --  Basic net earnings per common share were impacted by the


    following notable items:
  o A $0.16 charge related to the reduction in head office and 
administrative positions;
  o A $0.05 charge related to incremental investments in IT and supply 
chain;
  o A $0.05 charge (2011 - $0.01) for fixed asset impairments net of 
recoveries;
  o A $0.01 charge (2011 - $0.06) related to the transition of certain 
Ontario conventional stores to the operating terms under collective 
agreements ratified in 2010;
  o A nil charge (2011 - $0.01) related to the effect of share-based 
compensation net of equity forwards; and
  o A nil charge (2011 - $0.04) related to the start-up costs 


    associated with the launch of the Company's Joe Fresh brand in the
    United States.
    --  In 2012, the Company invested $1.0 billion in capital
        expenditures with approximately 55% invested in its IT and
        supply chain infrastructure and the remaining 45% invested in
        its retail operations.
    --  In December 2012, the Company announced its intention to create
        a Real Estate Investment Trust ("REIT"), which will acquire a
        significant portion of Loblaw's real estate assets and sell
        units by way of an Initial Public Offering ("IPO"). The IPO of
        the REIT is expected to be completed by mid-2013, subject to
        prevailing market conditions and receipt of required regulatory
        approvals, including approval to list the units on the Toronto
        Stock Exchange.

(1)     For financial definitions and ratios refer to the Glossary of
Terms in the Company's 2012 Annual Report - Financial Review.

The consolidated quarterly results by reportable operating segments were as 
follows:

Retail Results of Operations
                                                                                

For the
periods
ended
December
29,
2012 and
December
31, 2011
(unaudited)                                                                     

(millions
of Canadian
dollars                                                          
except                                                           
where                                                 2012   2011
otherwise          2012       2011      $       %      (52    (52      $       %
indicated)   (12 weeks) (12 weeks) Change  Change   weeks) weeks) Change  Change

Sales                        $      $               $        $    $     
            $     7,289      7,226     63    0.9%   30,960 30,703    257    0.8%

Gross
profit            1,575      1,569      6    0.4%    6,819  6,820    (1)       -

Operating                                                        
income                                                           
                    228        297   (69) (23.2%)    1,101  1,312  (211) (16.1%)

Same-store
sales((1))
(decline)
growth             0.0%       2.5%                  (0.2%)   0.9%               

Gross
profit
percentage        21.6%      21.7%                   22.0%  22.2%               

Operating
margin((1))        3.1%       4.1%                    3.6%   4.3%               
                                                                                
    --  In the fourth quarter of 2012, the increase of $63 million in
        Retail sales over the same period in the prior year was


    impacted by the following factors:
  o Same-store sales((1)) were flat (2011 - growth of 2.5%), with an 
extra day of store operations having a positive impact on 2011 
same-store sales((1)) estimated to be between 0.8% and 1.0%;
  o Sales growth in both food and drugstore were modest;
  o Sales growth in gas bar was moderate;
  o Sales in general merchandise, excluding apparel, declined 
moderately;
  o Sales in apparel were flat;
  o The Company's average quarterly internal food price index was flat 


    during the fourth quarter of 2012 (2011 - moderate inflation),
    which was lower than the average quarterly national food price
    inflation of 1.5% (2011 - 5.2%) as measured by "The Consumer Price
    Index for Food Purchased from Stores" ("CPI"). CPI does not
    necessarily reflect the effect of inflation on the specific mix of


goods sold in Loblaw stores; and
  o 18 corporate and franchise stores were opened and 11 corporate and 


    franchise stores were closed in the last 12 months, resulting in a
    net increase of 0.3 million square feet, or 0.6%.
    --  In the fourth quarter of 2012, gross profit percentage was
        21.6%, a decrease from 21.7% in the fourth quarter of 2011.
        This decline was primarily driven by investments in food
        margins and increased shrink, partially offset by margin
        improvements in drugstore and general merchandise and decreased
        transportation costs. Gross profit increased by $6 million
        compared to the fourth quarter of 2011, primarily driven by
        higher sales, partially offset by investments in gross profit
        percentage. Increased shrink expense included an estimated $10
        million of the incremental investment in the Company's customer
        proposition related to improved assortment in stores that was
        not covered by operations.
    --  Operating income decreased by $69 million, including the $61
        million charge for restructuring, compared to the fourth
        quarter of 2011 and operating margin((1)) was 3.1%, or 4.0%
        excluding the restructuring charge, for the fourth quarter of
        2012 compared to 4.1% in the same period in 2011. In addition
        to the notable items described in the Consolidated Results of
        Operations above, operating income and operating margin((1))
        were negatively impacted by foreign exchange losses and
        increased labour costs, partially offset by other operating
        cost efficiencies and an increase in gross profit. Increased
        labour costs included an estimated $5 million of the
        incremental investment in the Company's customer proposition
        related to improved service in stores that was not covered by
        operations.

(1)     For financial definitions and ratios refer to the Glossary of
Terms in the Company's 2012 Annual Report - Financial Review.

Financial Services Results of Operations
                                                                                    

For the
periods
ended
December
29,
2012 and
December
31, 2011
(unaudited)                                                                         

(millions
of Canadian
dollars
except                                                               
where                                                   2012     2011
otherwise           2012       2011       $      %       (52      (52       $      %
indicated)    (12 weeks) (12 weeks)  Change Change    weeks)   weeks)  Change Change

Revenue                             $                                 $      
               $     176 $      147      29  19.7% $     644 $    547      97  17.7%

Operating
income                34         18      16  88.9%        95       72      23  31.9%

Earnings
before
income
taxes                 23          7      16 228.6%        50       24      26 108.3%
                                                                                    
                                                                   
                                                                   

Unaudited               As at             As at
(millions of     December 29, December 31, 2011
Canadian dollars         2012
except where
otherwise
indicated)                                        $ Change % Change

Average          $      2,105         $   1,974
quarterly net
credit card
receivables                                     $      131     6.6%

Credit card             2,305             2,101
receivables                                            204     9.7%

Allowance for              43                37
credit card
receivables                                              6    16.2%

Annualized yield        12.8%             12.5%
on average
quarterly gross
credit card
receivables                                                        

Annualized               4.3%              4.2%
credit loss rate
on average
quarterly gross
credit card
receivables                                                        
                                                                   
    --  The 19.7% increase in revenue over the fourth quarter of 2011
        was driven by higher PC Telecom revenues resulting from the
        2011 launch of Mobile Shop kiosks and higher interest income
        and interchange fee income as a result of increased credit card
        transaction values and higher credit card receivables balances.
    --  The increases of $16 million in operating income and in
        earnings before income taxes compared to the fourth quarter of
        2011 were mainly attributable to the higher revenue described
        above and lower costs related to the renegotiation of vendor
        contracts. This was partially offset by investments in the
        launch of PC Telecom's Mobile Shop kiosks and an increased
        allowance for credit card receivables as a result of quarterly
        growth in the credit card receivables program.

Outlook((1))

In2012, the Company strengthened its customer proposition and made 
significant progress with its IT infrastructure implementation.These 
initiatives will continue in 2013, with investments in price, assortment and 
labour expected to be offset by operating efficiencies. Investment in 
infrastructure programs will continue as the IT system is rolled out to 
distribution centres and stores, with associated expenses flat to 2012.Sales 
growth in 2013 will be moderated by a competitive environment characterized by 
ongoing square footage expansions, a new competitor's entry into the market 
and generic drug deflation. As a result, the Company expects modest growth in 
operating income in 2013, excluding the impact of the $61 million 
restructuring charge recorded in the fourth quarter of 2012 and the impact of 
the previously announced plan to launch an IPO of a new REIT.

In addition, the Company expects the following for 2013:
    --  an effective tax rate in the range of 26% - 27%, compared to
        24.9% in 2012;
    --  the adoption of amendments to the accounting standard related
        to employee benefits, which will result in a restatement of the
        2012 consolidated financial statements to reflect a reduction
        in net earnings by approximately $16 million or $0.06 per
        share; and
    --  capital expenditures to be approximately $1 billion, unchanged
        from 2012, with net new retail square footage growth of
        approximately 1%.

Over the long term, the Company still expects positive same-store sales((2)), 
a decline in IT and supply chain costs, and a moderation of capital 
expenditures. This should result in growth in operating income, EBITDA((3)) 
and an increase in free cash flow((3)).

(1)     See Forward-Looking Statements in this News Release.
(2) For financial definitions and ratios refer to the Glossary of Terms
in the Company's 2012 Annual Report - Financial Review.
(3)     See Non-GAAP Financial Measures in this News Release.

Forward-Looking Statements

This News Release for Loblaw Companies Limited contains forward-looking 
statements about the Company's objectives, plans, goals, aspirations, 
strategies, financial condition, results of operations, cash flows, 
performance, prospects and opportunities. Specific statements with respect to 
anticipated future results, planned capital expenditures and future plans are 
included in the Outlook section of this News Release. Forward-looking 
statements are typically identified by words such as "expect", "anticipate", 
"believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", 
"strive", "will", "may" and "should" and similar expressions, as they relate 
to the Company and its management.

Forward-looking statements reflect the Company's current estimates, beliefs 
and assumptions, which are based on management's perception of historical 
trends, current conditions and expected future developments, as well as other 
factors it believes are appropriate in the circumstances. The Company's 
expectation of operating and financial performance in 2013 is based on certain 
assumptions including assumptions about revenue growth, anticipated cost 
savings and operating efficiencies, no unanticipated changes in the effective 
income tax rates, the Company's plan to increase net retail square footage by 
1% and no unexpected adverse events or costs related to the Company's 
investments in IT and supply chain. The Company's estimates, beliefs and 
assumptions are inherently subject to significant business, economic, 
competitive and other uncertainties and contingencies regarding future events 
and as such, are subject to change. The Company can give no assurance that 
such estimates, beliefs and assumptions will prove to be correct.

Numerous risks and uncertainties could cause the Company's actual results to 
differ materially from the estimates, beliefs and assumptions expressed or 
implied in the forward-looking statements, including, but not limited to:
    --  failure to realize anticipated results, including revenue
        growth, anticipated cost savings or operating efficiencies from
        the Company's major initiatives, including those from
        restructuring;
    --  failure to realize benefits from investments in the Company's
        IT systems, including the Company's IT systems implementation,
        or unanticipated results from these initiatives;
    --  the inability of the Company's IT infrastructure to support the
        requirements of the Company's business;
    --  heightened competition, whether from current competitors or new
        entrants to the marketplace;
    --  changes in economic conditions including the rate of inflation
        or deflation, changes in interest and currency exchange rates
        and derivative and commodity prices;
    --  public health events including those related to food safety;
    --  failure to achieve desired results in labour negotiations,
        including the terms of future collective bargaining agreements,
        which could lead to work stoppages;
    --  the inability of the Company to manage inventory to minimize
        the impact of obsolete or excess inventory and to control
        shrink;
    --  the impact of potential environmental liabilities;
    --  failure to respond to changes in consumer tastes and buying
        patterns;
    --  reliance on the performance and retention of third party
        service providers including those associated with the Company's
        supply chain and apparel business;
    --  supply and quality control issues with vendors;
    --  changes to the regulation of generic prescription drug prices
        and the reduction of reimbursement under public drug benefit
        plans and the elimination or reduction of professional
        allowances paid by drug manufacturers;
    --  changes in the Company's income, commodity, other tax and
        regulatory liabilities including changes in tax laws,
        regulations or future assessments;
    --  any requirement of the Company to make contributions to its
        registered funded defined benefit pension plans or the
        multi-employer pension plans in which it participates in excess
        of those currently contemplated;
    --  the risk that the Company would experience a financial loss if
        its counterparties fail to meet their obligations in accordance
        with the terms and conditions of their contracts with the
        Company;
    --  the inability of the Company to collect on its credit card
        receivables; and
    --  failure to execute the IPO of the Company's proposed REIT could
        adversely affect the reputation, operations and financial
        performance of the Company.

This is not an exhaustive list of the factors that may affect the Company's 
forward-looking statements. Other risks and uncertainties not presently known 
to the Company or that the Company presently believes are not material could 
also cause actual results or events to differ materially from those expressed 
in its forward-looking statements. Additional risks and uncertainties are 
discussed in the Company's materials filed with the Canadian securities 
regulatory authorities from time to time, including the Enterprise Risks and 
Risk Management section of the Management's Discussion and Analysis on pages 
23 to 31 of the Annual Report. Readers are cautioned not to place undue 
reliance on these forward-looking statements, which reflect the Company's 
expectations only as of the date of this News Release. Except as required by 
law, the Company does not undertake to update or revise any forward-looking 
statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

The Company uses the following non-GAAP financial measures: EBITDA, EBITDA 
margin and free cash flow. The Company believes these non-GAAP financial 
measures provide useful information to both management and investors in 
measuring the financial performance and financial condition of the Company for 
the reasons outlined below. These measures do not have a standardized meaning 
prescribed by GAAP and therefore they may not be comparable to similarly 
titled measures presented by other publicly traded companies, and they should 
not be construed as an alternative to other financial measures determined in 
accordance with GAAP.

EBITDA and EBITDA Margin The following table reconciles earnings before income 
taxes, interest expense and depreciation and amortization ("EBITDA") to 
operating income which is reconciled to GAAP net earnings measures reported in 
the consolidated statements of earnings for the years ended December 29, 2012 
and December 31, 2011. EBITDA is useful to management in assessing performance 
of its ongoing operations and its ability to generate cash flows to fund its 
cash requirements, including the Company's capital investment program.

EBITDA margin is calculated as EBITDA divided by sales. 
                                              
                            2012        2011          2012         2011

(millions of         (unaudited) (unaudited)   (unaudited)  (unaudited)
Canadian dollars)     (12 weeks)  (12 weeks)    (52 weeks)   (52 weeks)

Net earnings         $       143 $       174  $        650 $        769

Add impact of the                                                      
following:
     Income taxes             39          60           215          288
     Net interest             80          81           331          327
     expense and
     other financing
     charges

Operating income             262         315         1,196        1,384

Add impact of the                                                      
following:
     Depreciation            187         170           777          699
     and
     amortization

EBITDA               $       449 $       485 $       1,973  $     2,083
                                                                       

Free Cash Flow The following table reconciles free cash flow used in assessing 
the Company's financial condition to GAAP measures reported in the annual 
audited consolidated financial statements for the years ended December 29, 
2012 and December 31, 2011. The Company believes that free cash flow is a 
useful measure in assessing the Company's cash available for additional 
funding and investing activities.

Free cash flow is calculated as cash flows from operating activities excluding 
the net change in credit card receivables, less fixed asset purchases.
                                                             
                            2012        2011           2012        2011

(millions of         (unaudited) (unaudited)    (unaudited) (unaudited)
Canadian dollars)     (12 weeks)  (12 weeks)     (52 weeks)  (52 weeks)

Cash flows from      $       605   $     620  $       1,637    $  1,814
operating activities

Net increase                 232         190            204         104
(decrease) in credit
card receivables

Less: Fixed asset            361         347          1,017         987
purchases

Free cash flow       $       476  $      463 $          824  $      931
                                                                       

Selected Financial Information

The following includes selected quarterly financial information, which is 
prepared by management in accordance with International Financial Reporting 
Standards ("IFRS") and is based on the Company's audited annual consolidated 
financial statements for the year ended December 29, 2012. This financial 
information does not contain all disclosures required by IFRS, and 
accordingly, should be read in conjunction with the Company's 2012 Annual 
Report which are available in the Investor Centre section of the Company's 
website at loblaw.ca.

Consolidated Statements of Earnings
                                                               
                                2012        2011       2012       2011

For the periods ended     (12 Weeks)  (12 Weeks) (52 Weeks) (52 Weeks)
December 29, 2012 and    (unaudited) (unaudited)  (audited)  (audited)
December 31, 2011
(millions of Canadian
dollars except where
otherwise indicated)

Revenue                  $     7,465 $     7,373 $   31,604 $   31,250

Cost of Merchandise            5,731       5,664     24,185     23,894
Inventories Sold

Selling, General and           1,472       1,394      6,223      5,972
Administrative Expenses

Operating Income                 262         315      1,196      1,384

Net interest expense and          80          81        331        327
other financing charges

Earnings Before Income           182         234        865      1,057
Taxes

Income taxes                      39          60        215        288

Net Earnings             $       143 $       174 $      650 $      769

Net Earnings per Common                                               
Share ($)

  Basic                  $      0.51 $      0.62 $     2.31 $     2.73

  Diluted                $      0.48 $      0.60 $     2.28 $     2.71
                                                                      

Consolidated Balance Sheets
                                                         
                                                As at             As at

(millions of Canadian dollars)      December 29, 2012 December 31, 2011

Assets                                                                 

Current Assets                                                         
     Cash and cash equivalents      $           1,079 $             966
     Short term investments                       716               754
     Accounts receivable                          456               467
     Credit card receivables                    2,305             2,101
     Inventories                                2,007             2,025
     Prepaid expenses and other                    74               117
     assets
     Assets held for sale                          30                32

Total Current Assets                            6,667             6,462

Fixed Assets                                    8,973             8,725

Investment Properties                             100                82

Goodwill and Intangible Assets                  1,057             1,029

Deferred Income Taxes                             260               232

Security Deposits                                 252               266

Franchise Loans Receivable                        363               331

Other Assets                                      289               301

Total Assets                        $          17,961 $          17,428

Liabilities                                                            

Current Liabilities                                                    
     Trade payables and other       $           3,720 $           3,677
     liabilities
     Provisions                                    78                35
     Income taxes payable                          21                14
     Short term debt                              905               905
     Long term debt due within one                672                87
     year

Total Current Liabilities                       5,396             4,718

Provisions                                         59                50

Long Term Debt                                  4,997             5,493

Deferred Income Taxes                              18                21

Capital Securities                                223               222

Other Liabilities                                 851               917

Total Liabilities                              11,544            11,421

Shareholders' Equity                                                   

Common Share Capital                            1,567             1,540

Retained Earnings                               4,790             4,414

Contributed Surplus                                55                48

Accumulated Other Comprehensive                     5                 5
Income

Total Shareholders' Equity                      6,417             6,007

Total Liabilities and Shareholders' $          17,961 $          17,428
Equity
                                                                       
                                                                       

Consolidated Statements of Cash Flow
                                                                
                                 2012        2011       2012       2011

For the periods ended      (12 weeks)  (12 weeks) (52 weeks) (52 weeks)
December 29, 2012 and     (unaudited) (unaudited)  (audited)  (audited)
December 31, 2011
(millions of Canadian
dollars)

Operating Activities                                                   
    Net earnings           $       143 $       174 $      650 $      769
    Income taxes                    39          60        215        288


Net interest expense            80          81        331        327 
and other financing 
charges 
Depreciation and               187         170        777        699 
amortization 


    Income taxes paid             (47)        (54)      (232)      (216)
    Interest received               18          18         52         60


Settlement of equity       −         (7)    −        (7) 
forward contracts 
Change in credit card        (232)       (190)      (204)      (104) 
receivables 
Change in non-cash             431         348         55          8 
working capital 
Fixed assets and other          12         (4)         19          5 
related impairments 
Gain on disposal of           (11)         (7)       (12)       (18) 
assets 


    Other                         (15)          31       (14)          3

Cash Flows from Operating         605         620      1,637      1,814
Activities

Investing Activities                                                   
    Fixed asset purchases        (361)       (347)    (1,017)      (987)


Change in short term           135          51         20         18 
investments 
Proceeds from fixed             29           6         62         57 
asset sales 
Change in franchise           (21)        (27)       (22)       (18) 
investments and other 
receivables 
Change in security             (6)        (85)         11         92 
deposits 
Goodwill and                     1         (8)       (43)       (14) 
intangible asset 
additions 
Other                      −         (4)    −        (4) 
Cash Flows used in              (223)       (414)      (989)      (856)
Investing Activities 
Financing Activities                                                    
Change in bank             −     −    −       (10) 
indebtedness 
Change in short term       −     −    −        370 
debt 


    Long term debt                                                      
     Issued                        62           4        111        287
     Retired                     (18)        (53)      (115)      (909)
    Interest paid                (103)       (103)      (356)      (380)
    Dividends paid             −        (59)      (177)      (193)
    Common shares                                                       
     Issued                        15           2         22         21
     Purchased for               (10)        (17)       (16)       (39)
     cancellation

Cash Flows used in               (54)       (226)      (531)      (853)
Financing Activities

Effect of foreign                   2         (1)        (4)          4
currency exchange rate
changes on cash and cash
equivalents

Change in cash and cash           330        (21)        113        109
equivalents

Cash and cash                     749         987        966        857
equivalents, beginning of
period

Cash and Cash             $     1,079 $       966 $    1,079 $      966
Equivalents, End of
Period
                                                                       

2012 Annual Audited Consolidated Financial Statements and MD&A

The Company's 2012 Annual Report will be available in the Investor Centre 
section of the Company's website at loblaw.ca or at sedar.com.

Investor Relations

Shareholders, security analysts and investment professionals should direct 
their requests to Kim Lee, Vice President, Investor Relations at the Company's 
National Head Office or by e-mail at investor@loblaw.ca.

Additional information has been filed electronically with various securities 
regulators in Canada through the System for Electronic Document Analysis and 
Retrieval (SEDAR) and with the Office of the Superintendent of Financial 
Institutions (OSFI) as the primary regulator for the Company's subsidiary, 
President's Choice Bank.

Conference Call and Webcast

Loblaw Companies Limited will host a conference call as well as an audio 
webcast on February 21, 2013 at 11:00 a.m. (EST).

To access via tele-conference please dial (647) 427-7450. The playback will be 
made available two hours after the event at (416) 849-0833,
access code: 85735911. To access via webcast please visit loblaw.ca, go to 
Investor Centre and click on webcast. Pre-registration will be available.

Full details are available on the Loblaw Companies Limited website at 
loblaw.ca.











Kim Lee, Vice President, Investor Relations at the Company's National  Head 
Office or by e-mail atinvestor@loblaw.ca.

SOURCE: Loblaw Companies Limited

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/February2013/21/c6025.html

CO: Loblaw Companies Limited
ST: Ontario
NI: RET FDR ERN CONF 

-0- Feb/21/2013 11:30 GMT


 
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