Canadian Tire Corporation 2015 Third Quarter Financial Results

November 12, 2015

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This document contains forward-looking statements that reflect management’s current expectations related to matters such as future financial performance and operating results of the Company.

Forward-looking statements are provided for the purposes of providing information about Management’s current expectations and plans and allowing investors and others to get a better

understanding of the Company’s financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other circumstances.

All statements other than statements of historical facts included in this document may constitute forward-looking statements, including but not limited to, statements regarding the opportunity for

business growth from the partnership with Scotiabank, statements concerning Management’s expectations relating to possible or assumed future prospects and results, the Company’s strategic

goals and priorities, its actions and the results of those actions and the economic and business outlook for the Company. Often but not always, forward-looking statements can be identified by the

use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” 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.

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 the Company’s

assumptions, estimates, analyses, beliefs and opinions may not be correct and that the Company’s expectations and plans will not be achieved. Examples of Management’s beliefs, which may

prove to be incorrect include, but are not limited to, beliefs about the effectiveness of certain performance measures, beliefs about current and future competitive conditions and the Company’s

position in the competitive environment, beliefs about the Company’s core capabilities and beliefs regarding the availability of sufficient liquidity to meet the Company’s contractual obligations.

Although the Company believes that the forward-looking statements in this document are based on information, assumptions and beliefs that are current, reasonable and complete, these

statements are 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

statements for a variety of reasons. Some of the factors – many of which are beyond the Company’s control and the effects of which can be difficult to predict – include: (a) credit, market, currency,

operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates; (b) the ability of the Company to attract and retain high quality employees for all of its

businesses, Dealers, Canadian Tire Petroleum agents and Mark’s Work Wearhouse and FGL Sports franchisees, as well as the Company’s financial arrangements with such parties; (c) the growth

of certain business categories and market segments and the willingness of customers to shop at its stores or acquire its financial products and services; (d) the Company’s margins and sales and

those of its competitors; (e) the changing consumer preferences toward e-commerce, online retailing and the introduction of new technologies; (f) risks and uncertainties relating to information

management, technology, property management and development, supply chain, product safety, changes in law, regulation, competition, seasonality, weather patterns, commodity price and

business disruption, the Company’s relationships with suppliers manufacturers, partners and other third parties, changes to existing accounting pronouncements, the risk of damage to the

reputation of brands promoted by the Company and the cost of store network expansion and retrofits; (g) the Company’s capital structure, funding strategy, cost management programs and share

price; and (h) the possibility that the opportunity for business growth from the partnership with Scotiabank cannot be realized or may take longer to realize than expected. Management cautions that

the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect the Company’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, please refer to the “Risk Factors” section of the

Company’s Annual Information Form for fiscal 2014, as well as the Company’s other public filings, available on the SEDAR (System for Electronic Document Analysis and Retrieval) website at

www.sedar.com and at www.corp.canadiantire.ca.

Forward-looking statements do 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 the

Company’s business. For example, they do not include the effect of any dispositions, acquisitions, asset write downs or other charges announced or occurring after such statements are made.

The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. The Company 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, unless required by applicable securities

laws.

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Forward looking information

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Executive participants

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Michael Medline, President and CEO, Canadian Tire Corporation

Dean McCann, Chief Financial Officer and EVP

Allan MacDonald, Chief Operating Officer, Canadian Tire

Chad McKinnon, Chief Operating Officer, FGL Sports

Mary Turner, Chief Operating Officer, CTFS

Rick White, Chief Operating Officer, Mark’s

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Third Quarter Highlights

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Strong third quarter performance

– Consolidated revenue increased $133.2 million, or 5.3%, excluding Petroleum

– Diluted EPS was $2.62, up 20.5%

Consolidated sales and earnings performance reflects strong operations and

retail fundamentals

– Canadian Tire SSS up 3.4%

– FGL Sports SSS up 7% (8.5% at Sport Chek)

– Mark’s SSS down 0.2%

Solid third quarter performance at Financial Services

− Gross average credit card receivables grew 1.7%

− Income before taxes down 2.8%, lapping strong results of approximately 23% in prior year

Capital Allocation

‒ Announced 9.5% increase in the annual dividend to $2.30 per share

‒ Announced intent to repurchase $550 million of Class A Non-Voting shares by the end of 2016

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Consolidated financial results

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Diluted EPS attributable to owners of CTC was $2.62 in the quarter, an increase of $0.45 per share, or 20.5 percent, over the prior year.

Earnings reflect the impact of the sale of 20 percent of the Financial Services business in Q4 2014 which reduced earnings attributable to

owners of CTC by $13.8 million, or $0.18 per share, and the impact of a gain on the sale of a surplus property which increased earnings

attributable to owners of CTC by $25.4 million, or $0.33 per share. The remaining increase in earnings is due to strong performance in the

retail segment.

1 – Key operating performance measure. Refer to section 8.3.1 in the MD&A.

2 – Not meaningful.

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Retail segment financial results

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Income before income taxes increased $51.4 million or 39.3 percent. This increase reflects strong sales and revenue growth in Canadian Tire,

FGL Sports, and Mark's, Petroleum's higher per litre gas margins, as well as a $29.2 million pretax gain on the sale of a surplus property during

the quarter. These increases are partially offset by a lower gross margin rate at Mark's, increased personnel and occupancy costs to support IT

initiatives and additional stores in the network, and increased depreciation and amortization relating to increased capital spending on IT initiatives.

1 – Key operating performance measure. Refer to section 8.3.1 in the MD&A.

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CT REIT segment results

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Income before income taxes in CT REIT increased $9.8 million, or 19.7%, in the quarter, primarily due to properties acquired

during 2015 and 2014 and an increase of $5.3 million in the fair market value adjustment over the prior year.

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Financial Services segment results

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Income before income taxes of $95.6 million decreased $3 million, or 2.8 percent, due to increased write-offs and a reduction

in interchange revenue resulting from industry wide adoption of a revised rate schedule in Q2 2015; partially offset by

increased credit card charges driven by GAAR growth and savings in operating expenses.

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Appendix Consolidated Adjusted EBITDA1 and Retail EBITDA1

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1 – Key operating performance measure. Refer to section 8.3.1 in the MD&A for additional information. 2 – Includes $2.2 million reported in cost of producing revenue in the quarter ($1.8 million in 2014) and $6.6 million for Q3 YTD 2015 ($5.0 million in Q3 YTD 2014).

1 – Key operating performance measure. Refer to section 8.3.1 in the MD&A for additional information. 2 – Includes $2.2 million reported in cost of producing revenue in the quarter ($1.8 million in 2014) and $6.6 million for Q3 YTD 2015 ($5.0 million in Q3 YTD 2014).

(C$ in millions) Q3 2015 Q3 2014

YTD

Q3 2015

YTD

Q3 2014

Adjusted EBITDA1 $ 415.1 $ 351.9 $ 1,044.8 $ 938.9

Change in fair value of the redeemable financial instrument

(income)/expense_ _ _ _

EBITDA $ 415.1 $ 351.9 $ 1,044.8 $ 938.9

Less:

Depreciation and amortization2 106.0 96.0 308.4 268.6

Net finance costs 24.2 21.4 70.5 85.5

Income before income taxes $ 284.9 $ 234.5 $ 665.9 $ 584.8

Income taxes 65.0 56.3 171.5 152.1

Effective tax rate 22.8% 24.0% 25.8% 26.0%

Net income $ 219.9 $ 178.2 $ 494.4 $ 432.7

Adjusted EBITDA1

Retail Segment EBITDA1

(C$ in millions) Q3 2015 Q3 2014

YTD

Q3 2015

YTD

Q3 2014

EBITDA1 $ 259.3 $ 201.4 578.6 513.3

Less:

Depreciation and amortization2 88.1 79.1 254.3 220.0

Net finance (income) (11.0) (8.5) (30.4) (3.7)

Income before income taxes $ 182.2 $ 130.8 354.7 297.0

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Appendix (cont’d) Consolidated and Retail Revenue Excluding Petroleum Revenue

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Consolidated Revenue excluding Petroleum Revenue

(C$ in millions, except where noted) Q3 2015 Q3 2014 Change

YTD

Q3 2015

YTD

Q3 2014 Change

Revenue $ 3,126.8 $ 3,069.9 1.9% $ 8,899.4 $ 8,809.1 1.0%

Petroleum Revenue $ 476.1 $ 552.4 (13.8)% $ 1,334.4 $ 1,589.5 (16.0)%

Revenue (excluding Petroleum) 2,650.7 2,517.5 5.3% 7,565.0 7,219.6 4.8%

Retail Revenue excluding Petroleum Revenue

(C$ in millions, except where noted) Q3 2015 Q3 2014 Change

YTD

Q3 2015

YTD

Q3 2014 Change

Revenue $ 2,826.3 $ 2,771.2 2.0% $ 7,988.3 $ 7,943.8 0.6%

Petroleum Revenue $ 476.1 $ 552.4 (13.8)% $ 1,334.4 $ 1,589.5 (16.0)%

Revenue (excluding Petroleum) 2,350.2 2,218.8 5.9% 6,653.9 6,354.3 4.7%

Questions

and Answers

For more information http://investors.canadiantire.ca lisa.greatrix@cantire.com or (416) 480-8725

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