![Page 1: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/1.jpg)
1
![Page 2: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/2.jpg)
Year inReview Another Excellent Year
Solid top line growth
Significantly improved operating margins
Strong cash flow
Kids business on fire
Launch of online “community” site
Four new Indigospirit stores opened
Stable & secure systems2
![Page 3: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/3.jpg)
Notable Achievements#1 National Retailer in Canada(Kubas Consultants)
Best Retail Store Design (ICSC Maple Leaf Award)
$1.5 million commitment toschool literacy through Indigo Love of Reading Foundation
3
![Page 4: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/4.jpg)
Net Revenue up 5.5%
A “Harry Potter”year
Growth well above North American average despite decline in average book prices 700
725750775800825850875900925950975
FY04 FY05 FY06 FY07 FY08
$ m
illion
s
4
![Page 5: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/5.jpg)
EBITDA up 12.6%
Best-in-class operating metrics
2530354045505560657075
FY04 FY05 FY06 FY07 FY08
$ m
illion
s
5
![Page 6: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/6.jpg)
Net Income up 76.0%
Improved operating earnings
Lower interest and amortization costs
$8.8 mm non-cash tax recovery
-5.0
10.015.020.025.030.035.040.045.050.055.060.0
FY04 FY05 FY06 FY07 FY08
$ m
illion
s
6
![Page 7: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/7.jpg)
Total debt reduced by $14.5 million
Repaid final $13 million term debt
Operating line of credit to cover seasonal working capital
Capital leases on select technology assets
0
20
40
60
80
100
120
FY04 FY05 FY06 FY07 FY08
$ m
illion
s
7
![Page 8: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/8.jpg)
Q1 Fiscal 2009 Results Continue Strong Trend …
Revenue up 3.1%Net loss cut in half$57.1 mm cash on handLaunched share repurchase program
8
![Page 9: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/9.jpg)
Financial SummarySolid balance sheet
Excellent momentum
No shortage of ideas…
9
![Page 10: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/10.jpg)
![Page 11: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/11.jpg)
11
Our Strategic Focus
Drive growth in our core business
Simplify core processes and drive productivity improvement
Launch new concept
Achieve best-in-class employee engagement
![Page 12: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/12.jpg)
12
Re-imagine the Chapters/Indigo Experience
Award-winning store designState-of-the-art customer kioskInteractive digital communityAn increasingly rich bookstore experience…but expanding business in kids, gifts and paper
10 new superstores in 2009 and 2010
Drive Growth in Core Business
![Page 13: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/13.jpg)
13
Award-winning design
![Page 14: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/14.jpg)
14
Award-winning design
![Page 15: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/15.jpg)
15
Award-winning design
![Page 16: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/16.jpg)
16
State-of-the-Art Customer Kiosk
New “iPhone-like”22 inch touch screens
Improved in-store search and find
Real-time information on hot books and topics in the media
Simplified purchase with slide card
![Page 17: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/17.jpg)
17
our online place for booklovers to meet, recommend reading, create book clubs, join shared interest groups and be inspired on their next read
150,000 members and growing daily
Drives “no cost” natural search
Drives Growth of online
Interactive Digital Community…
![Page 18: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/18.jpg)
18
Increasingly Rich Bookstore Experience
![Page 19: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/19.jpg)
19
Increasingly Rich Bookstore Experience
![Page 20: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/20.jpg)
20
Expand Paper Business
![Page 21: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/21.jpg)
21
Expand Gift Business
![Page 22: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/22.jpg)
22
Full kids toy shops in all new superstoresRollout into existing stores over next two years
Expand Kids Business
![Page 23: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/23.jpg)
23
Paced Expansion of Indigospirit
![Page 24: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/24.jpg)
24
![Page 25: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/25.jpg)
25
Good for you, good for the planet
Environmentally friendly selection of paper and gift; organic apothecary products for everyday use
Two new test stores opening before the holidays
Wholesale launch of paper products into Indigo stores before the holidays
![Page 26: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/26.jpg)
26
![Page 27: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/27.jpg)
27
![Page 28: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/28.jpg)
28
![Page 29: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/29.jpg)
29
![Page 30: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/30.jpg)
30
![Page 31: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/31.jpg)
31
![Page 32: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/32.jpg)
32
![Page 33: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/33.jpg)
33
![Page 34: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/34.jpg)
34
![Page 35: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/35.jpg)
35
Simplify & Drive Productivity
Continuous improvement initiative
About thinking ‘end-to-end’
Three objectives:Enhance desired consumer experience
Improve quality of work life for employees
Drive out cost
Our target: Best-in-class operating margins of 8.5% - 9.0% of sales
![Page 36: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/36.jpg)
36
Achieve Best-in-Class Employee Engagement
Annual measurement of employee engagement using Hewitt survey
Four of eight areas in the business achieved best-in-class levels this past year; balance trending well with work still to be done
Priority reinforced in Executive Bonus Program
![Page 37: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/37.jpg)
37
$6.0 million contributed to date
“Writing on the Wall”documentary released fall 2007
Ontario provincial commitment of $120 million over 4 years to support school libraries
![Page 38: Year in Review Another Excellent Year - Indigo …images.chapters.indigo.ca/images_2005/Content/Articles/...Re-imagine the Chapters/Indigo Experience Award-winning store design State-of-the-art](https://reader034.vdocuments.site/reader034/viewer/2022043023/5f3ef9efa49a417ab30dbba1/html5/thumbnails/38.jpg)