Canadian Tire Corporation to Acquire Party City’s Canadian Business
Forward-Looking Statement
This presentation contains forward-looking information within the meaning of applicable securities legislation, which reflects management's current expectations regarding the proposed
acquisition and future events. All statements other than statements of historical facts contained in this presentation may constitute forward-looking information, including but not limited
to: statements concerning the expected benefits of the proposed acquisition, including with respect to the impact of the acquisition of Party City's business in Canada on CTC's EBITDA,
ROIC and diluted EPS accretion, CTC's estimated retail sales for the acquired business, CTC's estimated EBITDA attributable to the proposed acquisition, the implied future EBITDA multiple
of the proposed acquisition, the expansion of the Party City brand in Canada and the realization of synergies; the expected timing of the proposed acquisition, if completed; CTC's financial
flexibility to fund the transaction; and management's expectations relating to other possible or assumed future prospects and results, CTC's strategic goals and priorities, and the
economic and business outlook for CTC. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "expect",
"intend", "believe", "estimate", "plan", "can", "could", "should", "would", "outlook", "forecast", "anticipate", "aspire", "foresee", "continue", "ongoing" or the negative of these terms or
variations of them or similar terminology. Forward-looking statements are based on the reasonable assumptions, estimates, analyses, beliefs and opinions of management, made in light
of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date
that such statements are made. CTC has provided these forward-looking statements for the purpose of presenting information about management's current expectations and plans
relating to the proposed acquisition and readers are cautioned that these statements may not be appropriate for other purposes.
By their very nature, forward-looking statements require management to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that CTC's
assumptions, estimates, analyses, beliefs and opinions may not be correct and that CTC's expectations and plans will not be achieved. Although CTC believes that the forward-looking
information in this presentation is based on information and assumptions that are current, reasonable and complete, this information is necessarily subject to a number of factors that
could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information for a variety of reasons. Some of these factors -
many of which are beyond management's control and the effects of which can be difficult to predict - include: (a) the risk that Party City's Canadian business will not be integrated
successfully; (b) the possibility that the anticipated benefits and synergies from the proposed acquisition cannot be realized or may take longer to realize than expected; (c) the ability of
CTC and Party City to maintain relationships with customers, suppliers and other business partners, (d) risks associated with the supply arrangements; (e) the risk that regulatory approvals
required for the proposed acquisition are not obtained, or are obtained on unfavorable terms; (f) the risk that regulatory approvals may delay the proposed acquisition; (g) the risk that a
condition to the closing of the proposed acquisition may not be satisfied or the acquisition agreement may be terminated prior to closing; (h) the diversion of management time and
attention on proposed acquisition; (i) credit, market, currency, operational, liquidity and funding risks generally, including changes in economic conditions, interest rates or tax rates;
and (j) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business
disruption. Management's expectations with respect to the impact of the acquisition of Party City's business in Canada on CTC's EBITDA, ROIC and diluted EPS accretion, CTC's estimated
retail sales for the acquired business, CTC's estimated EBITDA attributable to the proposed acquisition and the implied future EBITDA multiple of the proposed acquisition are based on a
number of assumptions, including the successful roll out of Party City products across at least two-thirds of CTR stores, the successful introduction of at least nine additional Party City
stores in Canada and additional growth in sales at Party City's existing Canadian stores based on marketing and other initiatives. Management cautions that the foregoing lists of
important factors and assumptions are not exhaustive and other factors could also adversely affect CTC's results. Investors and other readers are urged to consider the foregoing risks,
uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.
For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, refer to section 2.8 (Risk Factors) of
our Annual Information Form for fiscal 2018 and to sections 7.2.4 (Retail Segment Business Risks), 7.3.2 (CT REIT segment business risks), 7.4.3 (Financial Services Segment Business Risks)
and 12.0 (Risks and Risk Management) and all subsections thereunder of our Management's Discussion and Analysis for the year ended December 29, 2018, as well as the Company's
other public filings, available at www.sedar.com and at https://investors.canadiantire.ca.
The forward-looking information contained herein is based on certain factors and assumptions as of the date hereof and does not take into account the effect that transactions or non-
recurring or other special items announced or occurring after the statements are made have on CTC's business. CTC does not undertake to update any forward-looking statements,
whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as required by applicable securities laws.
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