Canadian Tire CorporationFebruary 2010

F d l ki I f iForward-looking Information

This disclosure contains statements that are forward-looking These forward-looking statementsThis disclosure contains statements that are forward looking. These forward looking statements relate to, among other things, our objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “suspect”, “outlook”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “forecast”, “objective” and “continue” (or the negative thereof) and words and expressions of similar import, and include statements concerning possible or assumed future results Certain material factors or assumptions are applied in making forward lookingresults. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the body of this document, as well as in the Q3 2009 Management’s Discussion and Analysis (“MD&A”). The forward-looking information contained in this document is presented for the purpose of assisting the Company's security holders and financial analysts in understanding its financial position and results of operations as at and for the periods ended on the dates presented and the Company’s strategic priorities and objectives, and may not be appropriate for other purposes. When relying on the forward-looking statements to make decisions with respect to the Compan in estors and others sho ld caref ll consider the foregoing factors and otherthe Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. The Company does not undertake to update any forward-looking statements, including those statements that are incorporated by reference herein, whether written or oral, that may be made from time to

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p y ytime by or on its behalf, except in accordance with applicable securities laws.

C CTR B i d F S i B iCore CTR Business and Four Supporting Businesses

CTR479 stores

Canadian Tire Retail is one of Canada’s

Petroleum272 gas bars

Canadian Tire Petroleum is one of

Financial Services>5 millionMasterCard accounts

Canadian Tire Financial Services

PartSource87 stores

PartSource is a chain of specialty

Mark’s378 stores

Mark’s Work Wearhouse is one ofis one of Canada s

most shopped general merchandise retailers and a leader in each of its three core product categories –

Petroleum is one of Canada’s largest independent gasoline retailers with 272 gas bars including 267 convenience stores

Financial Services offers Canadian Tire-branded credit cards, personal loans, lines of credit, insurance and warranty products as well as

chain of specialty automotive hard parts stores, as well as a supplier for Canadian Tire Retail’s cornerstone automotive

Wearhouse is one of Canada’s leading apparel retailers. Mark’s sells work, work-related, casual and active-wear clothing andcategories –

Automotive, Leisure, and Home.

convenience stores and kiosks and 73 car washes, creating customer loyalty to drive growth for Canadian Tire Retail

d C di Ti

products, as well as high-interest and tax-free savings accounts.

automotive business. Its expert staff sells competitively priced auto parts, catering to professional

t ti i t ll

clothing and footwear as well as health-care and business-to-business apparel.

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and Canadian Tire Financial Services.

automotive installers and serious do-it-yourselfers.Canadian Tire’s products and services provide

the essentials of everyday living for people of all ages

C ACore Assets

Store Networks

– Canadian Tire Retail: approximately 400 new or rebuilt stores since 1994

– Mark’s: approximately 280 stores built, upgraded or acquired since 2002

– Petroleum: 2/3 of sites now upgraded or rebranded

– PartSource: now has close to 100 sites, including 10 Hub stores

Supply Chain

– New Canadian Tire Retail DC in Eastern Quebec

All Financial Services credit cards relaunched with PayPass technology in 2008; Beginning rollout of chip cards in 2010

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S i d O i l S hStrategic and Operational Strengths

One of Canada’s most trusted brands

Loyal customer base across all of our businesses

Products and service offering targeted at the needs (not just wants) of everyday Canadian families at competitive prices

Financial Services one of the best run credit card businesses in the country – very capable risk management team

Financially strong company, fully funded and able to adapt and respond to the changing Canadian economy

We are well-positioned for days like today and tomorrow

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2010 S i P i i i2010 Strategic Priorities

Optimize the significant investments made in store and supply chain infrastructure and drive sustainable, long-term earnings growth

Build the strength of the core Canadian Tire Retail business and Build the strength of the core Canadian Tire Retail business and brand

– Improve overall customer service

Leverage industry-leading core assets in automotive business– Leverage industry-leading core assets in automotive business

– Position each business unit to actively support and drive consumers to the core Canadian Tire Retail business

A balanced approach to maximize earnings potential

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maximize earnings potential

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2010 I i i i2010 Initiatives

Key areas of focus in 2010 will build on the momentum of programs and initiatives begun i 2009in 2009:

Continue roll-out of capital-light CTR Smart and Small Market stores

Refocus and align core automotive assets with single focus for growing market share

Improving the customer experience at CTR

Staffing and process changes within CTR Marketing, Merchandising and Store Operations to improve core processes

Development of redesigned and enhanced loyalty program

Centralize key support functions to improve operating efficiencies

“Clothes That Work” at Mark’sClothes That Work at Mark s

Enhance supply chain and operations capabilities at Mark’s

Ongoing focus on credit risk management at Financial Services

E h fi i l f th i ti d i ti d Enhance financial performance across the organization and improve operating and strategic planning process

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Growth InitiativesGrowth Initiatives

Initiative Future Impact / Rationale

Real estate projects Focused growth and upgrade of network to strengthen brand and generate returns, including CTR capital-light formats

•Canadian Tire Retail stores (Smart and Small Market stores)

P t l it•Petroleum sites

•Mark’s stores

•PartSource stores

Financial Services Drive managed growth of receivables with benefits of relaunched cards with PayPass capability, testing of further new credit cards, including new Options Visa card, and select investments in balance transfer offers

Focused on managing working capital and investing in initiatives that will

Reduction in gross capital expenses to $273 million in 2009(2010 Capex in the range of $280 million to $300 million)

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g g g p gdeliver positive cash flow

CTR S ll M k SCTR Small Market Store

Before Identified 100+ underserved markets

Opportunity to generate $5-$9 million in retail sales per store, mostly incremental

Before

Low-cost building – great use of outdoor space; intense merchandising

Mark’s Work Wearhouse within each store and Petroleum Gas Bar (where appropriate)Petroleum Gas Bar (where appropriate)

Early results and customer research very positive

9 opened to-date

After

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CTR S SCTR Smart Store

Drive growth and improve sales productivity by reallocating space to high growth Drive growth and improve sales productivity by reallocating space to high growth and ‘cornerstone’ categories (eg. storage & organization, sports & recreation)

Added traffic-driving businesses (eg. pet foods, food test)

Improved customer experience – navigation better signage logical adjacencies Improved customer experience navigation, better signage, logical adjacencies, enhanced service features (call buttons, service desks, customer pick-up, etc.)

Leveraging investments made in square footage – most projects retrofits

Capital-light projects; cost is approximately $0 3 million/store Capital light projects; cost is approximately $0.3 million/store

Expect approximately 6-8% same store sales growth in year one

10 new or replacement stores and 26 retrofit projects opened to-date

59-60 retrofits planned in 2010

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B ildi C A i B iBuilding our Cornerstone Automotive Business

Key competitive advantage, central to our brand image and our single most promising business opportunity

Aligned all our automotive resources under one Aligned all our automotive resources under one common strategy and leadership: PartSource, Petroleum, automotive hard parts, accessories, service centres, tires and all other aspects of automotiveautomotive

Drive a single strategy to deliver growth and great performance

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I i h C E i CTRImproving the Customer Experience at CTR

Clear definition of desired in-store customer experience

Infrastructure and processes– strengthened corporate support team– operational excellence program– focus on in-stock

Measurement tools, programs and practices– New core audit, customer satisfaction index (CSI)– Performance improvement program for under-performing stores

Smart Store design focused on the customer

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CTR F d B i P i d Ri hCTR Focused on Being Priced Right

Key benefits of CTR change program include being priced right and flyer optimization

New pricing tools and processes allow for easier and more effective price management

– integration of competitive shopping data– pricing ‘rules’ embedded into system

100% of key value SKUs are shopped weekly, priced right vs. competition

New flyer features to improve price perception, drive traffic– eg. Everyday Essentials back cover

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D i i C L lDriving Customer Loyalty

Canadian Tire ‘Money’ is one of Canada’s most popular loyalty programs, offering greater value to our customers who shop at our stores, fill up at our gas bars and use our credit cards

Build capabilities to capture analyze and apply customer insights across each Build capabilities to capture, analyze and apply customer insights across each part of our business to drive sales and margins

Develop an in-depth understanding of our customers’ wants and needs to extend business and improve profitability

Pilot program in place by end of 2010 for target roll-out in 2011

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C li i K S F iCentralizing Key Support Functions

Aligned key corporate functions across the Company under single points of leadership, including communications, legal, real estate, human resources, information technology and finance

Designed to decrease operating costs and improve operating efficiencies for Designed to decrease operating costs and improve operating efficiencies for business units

Ability to move faster, respond more quickly and make better decisions

More flexible and effective use of resources (people technology budget etc ) More flexible and effective use of resources (people, technology, budget, etc.)

Will ensure increased clarity and focus in our company-wide strategies while still maintaining flexibility to make the right decisions for each of our respective businesses

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M k’ Cl h Th W kMark’s Clothes That Work

New “Clothes That Work” testing ground concept store in Edmonton

Growing number of innovations engineered that make “Clothes That Work”

Continued focus on growing share in women’s apparel, including more fashionable assortments with a focus on premium fabrics

Continued improved merchandise margins due to assortment planning and inventory flow focus

Continued increased market share in men’s and women’s categories, in a declining market

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M k’ S l Ch i d O i C bili iMark’s Supply Chain and Operations Capabilities

Work underway on R-6, a major IT infrastructure project to enhance Mark’s supply chain and operations capabilities

R-6 stands for the 6Rs of retailing (Right product; Right price; Right quantities; Right channel; Right location; Right time)Right channel; Right location; Right time)

Product provides forecast, replenishment, purchase order and product flow software

Over time expected to improve sales by reducing stock outs improve inventory Over time, expected to improve sales by reducing stock outs, improve inventory turns by improving product flow, and improve margins by reducing markdowns caused by stranded stock

Rolled out over 2 years 2009 and 2010

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Fi i l S i Ri k M C iFinancial Services - Risk Management Competencies

We have been on a journey over the last three years:

– New technologies

– Conservative credit limits

– Reduced near prime exposureReduced near prime exposure

Action to manage future credit risk exposure:

– Third party review of the entire risk management function

R d d dit li it f dh ld– Reduced credit limits for cardholders

– Enhanced predictive scorecards to identify high risk customer behaviour

– Enhanced collection strategies

– Newly developed bankruptcy model scorecards

Led to bankruptcies being consistently only 2/3rds of the national average

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Focused on mitigating future credit risk exposure to ensure we perform as well as we can in an economic downturn

M i P f li P fi biliManaging Portfolio Profitability

The Financial Services Business Model:The Financial Services Business Model: (Approximate Percentages of 2009 Average Receivables)

Gross yield including insurance 25.1%

Provision cost -8.3%

Funding cost -4.1%

Loyalty and other -2.2%y y

Operating expenses -6.9%

= 3.6% ROR

During normal operating conditions, we manage the business to drive a consistent 4 5% to 5% return on receivables

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consistent 4.5% to 5% return on receivables

Fi i l S i 10 Y K M iFinancial Services 10 Year Key Metrics Operating leverage has driven consistent performance during a period of significant growth

1999A 2000A 2001A 2002A 2003A 2004A 2005A 2006A 2007A 2008A 2009A

Credit Card(1)

Sales ($B) 2.1 2.6 3.3 4.7 6.0 7.2 8.1 9.1 10.4 11.1 11.4

GAAR(2) ($B) 0.9 1.1 1.2 1.6 2.1 2.5 2.8 3.1 3.5 3.7 3.9

Average Balance ($) 681 758 729 930 1,164 1,436 1,614 1,736 1,899 2,031 2,179

Yield 21.94% 20.68% 19.58% 17.28% 17.19% 16.84% 16.47% 16.08% 15.64% 15.74% 16.36%

Net Write-off Rate 5.87% 5.46% 5.43% 5.03% 5.90% 5.86% 6.15% 5.98% 5.67% 6.44% 7.83%

Total Portfolio

ROR(3) 6.10% 4.42% 5.37% 5.17% 4.81% 4.89% 4.75% 5.10% 5.15% 5.00% 3.57%

OPEX as a % of GAAR(4) 18.32% 17.10% 15.05% 11.45% 10.28% 9.27% 8.37% 7.97% 7.84% 7.36% 6.92%

(1) Includes Retail Card, CT MasterCards & CT Visas

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( ) ,

(2) Gross Average Accounts Receivable

(3) Excludes Securitization Gain/(Loss), LTIP, Gain on disposal of shares, gain/(loss) on disposal of assets and costs associated with the sale of the mortgage portfolio

(4) OPEX excludes LTIP and gain/(loss) on disposal of assets

Q4 2009 C lid d Hi hli hQ4 2009 Consolidated Highlights

($ in millions except per share amounts)

Q4 2009 Q4 20081 Change FY 2009 FY 20081 Change

Retail sales2 2,993.0 3,219.6 (7.0)% 10,020.9 10,614.4 (5.6)%

Gross operating revenue 2,437.7 2,587.8 (5.8)% 8,686.5 9,121.3 (4.8)%

EBITDA3, 4 248.7 276.8 (10.1)% 873.7 891.8 (2.0)%

EBITDA3, 4

(excluding Financial Services)191.7 218.9 (12.4)% 668.4 673.7 (0.8)%

Adjusted net earnings4

(excludes non-operating gains and losses)

104.4 130.1 (19.8)% 348.0 396.4 (12.2)%

Basic earnings per share 1.18 1.24 (5.4)% 4.10 4.60 (10.9)%

(1) 2008 figures have been restated for the implementation, on a retrospective basis, of CICA HB 3064 – Goodwill and Intangible Assets and the

Adjusted basic earnings per share4

1.28 1.60 (20.0)% 4.26 4.86 (12.4)%

( ) g p , p , gamendments to CICA HB 1000 – Financial Statement Concepts.

(2) Represents retail sales at CTR (which includes PartSource corporate and franchise stores), Mark’s corporate and franchise stores and Petroleum’s sites.(3) We consider EBITDA to be an effective measure of the contribution of our businesses to our profitability on an operational basis before allocating the cost

of interest, income taxes, depreciation and amortization.(4) Non-GAAP measure.

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Fi i l Fl ibili Q4 2009Financial Flexibility as at Q4 2009

Financing Source Amount Available Description

Committed bank lines of credit $1 17 billion • Provided by 10 domestic and international financial institutionsCommitted bank lines of credit $1.17 billion • Provided by 10 domestic and international financial institutions

• Supports the $800 million commercial paper program

• No amounts were drawn on the bank lines as at January 2, 2010

Commercial paper program $800 million • Canadian Tire had no commercial paper outstanding as at January 2, 2010

Medium Term Notes (MTN) program

$750 million • New Shelf Prospectus completed as of April 8, 2009, providing for access up to $750 million

• $200 million was drawn upon as an MTN issuance in June 2009

Securitization of receivables Transaction specific • Handled through Glacier Credit Card TrustSecuritization of receivables Transaction specific • Handled through Glacier Credit Card Trust

• Financial Services securitized $100 million of credit card receivables in 2009

Broker GIC deposits No specified limit • Funds are available through broker networks

• $1.5 billion in broker GIC deposits as at January 2, 2010

Retail deposits No specified limit • Retail deposits consist of High Interest Savings Accounts, Tax-Free Savings Accounts and retail GIC deposits

• Financial Services held $545 million in retail deposits at the end of January 2, 2010

Sale/leaseback transactions Transaction specific • Strategic transactions involving Company owned properties

22Securitization is an important funding program, in the past and future, but we have alternatives

O l k 2010Outlook 2010

Roll-out of 2 new capital-light CTR store formatsRoll out of 2 new capital light CTR store formats

Continued network expansion at Mark’s and PartSource

2010 Capex in the range of $280 million to $300 million

B d f 2010 k d ti it dit ill h d j By end of 2010, key productivity expenditures will have made major progress: CTR change program, Automotive Infrastructure, IT renewal etc.

Continued sale/leaseback activities for urban store properties and Montreal DC will be reviewed

Tax rates continue to decline

Lower capex, balanced working capital will lead to free cash flow growth in 2010 and beyondy

A balanced plan for growth with a focus ondriving efficiency and productivity,

expense management and financial flexibility

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expense management and financial flexibility