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## Message from the Chair of the Board 

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The food distribution industry continues to be very competitive. The management team was however able to adapt to the challenges by reviewing its merchandising programs and by focusing its actions on customer satisfaction and tight cost control. 

These efforts translated into good results, as adjusted net earnings (1)  reached a record level and the share price increased significantly. I would like to take this opportunity to congratulate all members of the MeTRo team under the leadership of eric R. la Flèche for their sustained efforts and their commitment. 

## BOARd OF dIReCTORS 

Three directors are leaving the Board this year. John H. Tory, director since 2011, resigned from the Board following his election as Mayor of Toronto, while both Paul Gobeil and I have reached the Board’s mandatory retirement age. I would like to thank John for his contribution and wish him great success in his new public responsibilities. I would particularly like to acknowledge Paul Gobeil’s contribution to the success of MeTRo, which he joined at the same time as I did, in 1990, as Vice-Chair of the Board. 

(1)  see section on ‘’IFRs and non-IFRs measurements’’ on page 31 in the Md&A. 

subject to being re-elected at the shareholders Meeting in January of 2015, Réal Raymond will become the next Chair of the Board of MeTRo. Mr. Raymond has been a MeTRo director since 2008 and lead director since 2010. He spent his whole career at national Bank and was President and Chief executive officer from 2002 to 2007. we are proposing two new directors, Maryse Bertrand and stephanie Coyles. Between now and 2016, two more members will reach the age limit and the Board is preparing an orderly transition. 

## ReTROSPeCTIve 

After the next Annual Meeting, I will be leaving MeTRo as Chair of the Board, a position that I have held since 2008, after 24 years filled with challenges, growth and changes. It has been an extraordinary journey, which began on october 1, 1990, when I joined MeTRo as President and Ceo and Paul Gobeil as Vice-Chair of the Board. 

The Company was going through difficult times. In fact, for the second straight year, MeTRo recorded losses of $9 million, despite sales of $2.2 billion. The share traded at $0.74. we carried out a major restructuring and it was what MeTRo needed to get back to profitability. one year later, for fiscal year 1991, profits reached $9.4 million, an $18.4 million turnaround. 

That turnaround enabled us, in 1992, to acquire half of the steinberg supermarkets in Québec, the largest grocery store chain for several decades, which was in financial trouble at the time. we invested $100 million to buy 48 supermarkets mainly located on the Island of Montréal, where MeTRo was not very present, representing a volume of $600 million. It was a crucial transaction that transformed MeTRo into a retailer in addition to a distributor. 

In 1998, the industry experienced a major consolidation. sobeys purchased oshawa Group (IGA). loblaws acquired Provigo and had to divest several loeb stores, mainly located in the ottawa region, as a result of too much concentration. That was MeTRo’s opportunity to make its entry into the ontario market in 1999 by acquiring 40 loeb supermarkets for $150 million and with sales of $500 million. 

## Pierre H. Lessard, architect and builder of METRO 

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1990 

Pierre H. lessard and Paul Gobeil join MeTRo respectively as President and Chief executive officer and Vice-Chair of the Board 

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1992 

STeINBeRG 48 steinberg supermarkets 

