content_image/195082.jpg
## Message from the President and CEO 

<img src='content_image/195082.jpg'>

on behalf of the MeTRo team, I would first like to extend my sincere gratitude to Pierre H. lessard and Paul Gobeil for their loyal services over the past 24 years, a period during which MeTRo achieved a level of success that very few people would have thought possible when they joined the Company. 

Pierre H. lessard has been the architect and builder of the company that MeTRo is today, combining vision, teamwork, financial discipline and hard work to transform MeTRo from a wholesaler in trouble into a major Canadian distributor and retailer with a market capitalization of $7.5 billion. His legacy goes well beyond the enormous value creation for shareholders. He established and nurtured a strong culture focused on results. He leaves behind a company in excellent financial shape, based in Québec, led by a solid management team and whose governance is efficient and independent. on a more personal note, he has been an inspiring leader and generous mentor to whom I will always be grateful. 

we knew that 2014 would be a year filled with challenges. The effects of the significant competitive square footage additions registered in 2012 and 2013 continued to be felt throughout the year while food inflation at the beginning of the year was at historically low levels. In that difficult environment our teams executed our business plans with discipline, our merchandising strategies were renewed and expenses well-managed, which allowed us to achieve satisfactory results. 

sales reached $11,590.4 million in 2014, compared to $11,399.9 million last year, up 1.7%. After experiencing a slowdown in the first two quarters, our sales improved in the second half of the year and achieved 3.9% growth in the fourth quarter. we invested prudently to reduce our retail prices and we were encouraged by the progress of our sales across all of our banners. 

net earnings were $456.2 million, compared to $703.9 million in 2013, down 35.2%. However, excluding non-recurring items from the 2013 and 2014 results, the main one being the $266.4 million after-tax gain on the sale of part of our investment in Alimentation Couche-Tard in 2013, adjusted net earnings from continuing operations (1)(2)  for 2014 were $460.9 million, flat versus 2013. Adjusted fully diluted net earnings per share (1)(2)  from continuing operations were $5.13 compared to $4.73 in 2013, up 8.5%. The higher growth of the earnings per share is the result of the acceleration of our share repurchase program following the sale of the Alimentation Couche-Tard shares in 2013, as we repurchased 7,092,900 common shares in 2014 at an average price of $64.81 for a total consideration of $459.7 million. 

Return on equity was 16.6% in 2014 compared to 26.4% in 2013 (the 2013 return included the gain on Alimentation Couche-Tard), exceeding 14% for the 21 st  consecutive year. 

our dividend per share was $1.15 compared to $0.965 in 2013, up 19.2%. MeTRo’s share price traded within a range of $60.00 to $74.80 during the 2014 fiscal year and the closing price on september 26, 2014 was $73.87 compared to $64.74 at the end of the 2013 fiscal year. 

we continued our strategy of investing in our network. Along with our merchants, we opened six new stores and carried out major expansions and renovations in 25 others, resulting in a gross expansion of 570,000 square feet and a net increase of 134,000 square feet or 0.7% of our retail network. 

The Québec division had another good year in 2014, despite increased competition. The Metro banner continues to innovate to provide a pleasant shopping experience and the super C banner is well positioned in the discount segment. 

In ontario, the turnaround plan announced in 2013 is almost completed. we have improved our network with some store renovations and conversions of a few Metro stores into Food Basics discount stores, as well as the implementation of a new commercial program at Food Basics. 

we recruited Carmen Fortino in september to lead the ontario division. I am confident that his experience, deep knowledge of the market and solid track record will enable us to improve our position in this highly competitive market (3) . 

