Late 2006 marked the beginning of a period of significant change for Loblaw Companies Limited. Changes in direction were made to focus on the strategic longer term objective of making Loblaw the best again. Facing an increasingly competitive marketplace, Loblaw continues to maximize the return on its assets under the themes “Simplify, Innovate, Grow.” By concentrating on its strengths – great brands, great stores and great people – Loblaw’s goal is to enhance value for consumers and shareholders. The Company is simplifying its organization by redesigning processes and structures to ensure that the business becomes more efficient and agile. Innovation has been a cornerstone of Loblaw’s success: the Company strives to be the best at making healthy living affordable for all Canadians and to offer general merchandise and other services that enhance the customer experience. The Company’s “Formula for Growth” defines priorities while the 100 Day Review provides the roadmap for achieving them. With these initiatives in place, Loblaw looks forward to a challenging and rewarding future.