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## LABOUR RELATIONS 

The majority of our store and distribution centre employees are unionized. Collective bargaining may give rise to work stoppages or slowdowns that could hurt us. We negotiate agreements with different maturity dates, conditions that ensure our competitiveness and terms that promote a positive work environment in all our business segments. We have experienced some minor labour conflicts over the last few years but expect $^{(3)}$ to maintain good labour relations in the future. 

## OCCUPATIONAL HEALTH AND SAFETY 

Workplace accidents may occur at one of our sites. To minimize this risk, we developed an accident prevention policy. Furthermore at all of our sites, we established workplace health and safety committees responsible for accident prevention. 

## CORPORATE RESPONSIBILITY 

If our actions do not respect our environmental, social and economic responsibilities, we are exposed to criticism, claims, boycotts and even lawsuits, should we fail to adhere to our legal obligations. 

We are aware that our business operations affect society and have increased our efforts regarding corporate responsibility. In 2012, we published our first Corporate Responsibility Report which was developed based on a prioritization process that considered both internal and external issues and trends impacting our sector and business. In 2013, we published an update to the report and in 2014, we published our second report detailing our latest corporate responsibility developments. The Fédération des chambres de commerce du Québec awarded the Corporation first prize in Sustainable Development-Large Company. Our Corporate Responsibility Report is available on our website www.metro.ca . 

## REGULATIONS 

Changes are regularly brought about to accounting policies, laws, regulations, rules or policies impacting our operations. We monitor these changes closely. 

## MARKET AND COMPETITION 

Intensifying competition, the possible arrival of new competitors and changing consumer needs are constant concerns for us. 

To cope with competition and maintain our leadership position in the Québec and Ontario markets, we are on the alert for new ways of doing things and new sites. We have an ongoing investment program for all our stores to ensure that our retail network remains one of the most modern in Canada. 

We have also developed a successful market segmentation strategy. Our grocery banners: the conventional Metro supermarkets, Super C and Food Basics discount banners, and Adonis ethnic food stores, target three different market segments. In fiscal 2014, we acquired Première Moisson, a company specializing in artisan breads and pastries to enhance our product offering. In the pharmacy market, we have large, medium, and small pharmacies under the Brunet Plus, Brunet, Brunet Clinique, Brunet Target, Clini Plus, Pharmacy, and Drug Basics banners. 

With the metro&moi  and Air Miles$^{®}$ loyalty programs in our Metro and Metro Plus supermarkets and our partner Dunnhumby Canada Limited, we are able to know the buying habits of loyal customers, offer them personalized promotions and increase their purchases at our stores. 

## PRICE OF FUEL, ENERGY AND UTILITIES 

We are a big consumer of utilities, electricity, natural gas and fuel. Increases in the price of these items may affect us. 

## SUPPLIERS 

Negative events could affect a supplier and lead to service breakdowns and store delivery delays. As a remedy for this situation, we deal with several suppliers. In the event of a supplier's service breakdown, we can turn to another supplier reasonably quickly. 

