Loblaw : Rapport du T2 de 2022 (en traduction)

Second Quarter Report to Shareholders

24 weeks ended June 18, 2022

2022 Second Quarter Report to Shareholders

Management's Discussion and Analysis	1
Financial Results	37
Notes to the Unaudited Interim Period Condensed Consolidated Financial Statements	43
Financial Summary	63

Management's Discussion and Analysis

1.	Forward-Looking Statements	2
2.	Key Financial Performance Indicators	4
3.	Consolidated Results of Operations	5
4.	Reportable Operating Segments Results of Operations	10
	4.1	Retail Segment	10
	4.2	Financial Services Segment	12
5.	Liquidity and Capital Resources	14
	5.1	Cash Flows	14
	5.2	Liquidity and Capital Structure	17
	5.3	Components of Total Debt	18
	5.4	Financial Condition	19
	5.5	Credit Ratings	19
	5.6	Share Capital	20
	5.7	Off-Balance Sheet Arrangements	22
6.	Financial Derivative Instruments	22
7.	Results by Quarter	23
8.	Internal Control over Financial Reporting	25
9.	Enterprise Risks and Risk Management	25
10.	Outlook	25
11.	Non-GAAP Financial Measures	26
12.	Additional Information	36

2022 Second Quarter Report Loblaw Companies Limited 1

Management's Discussion and Analysis

The following Management's Discussion and Analysis ("MD&A") for Loblaw Companies Limited and its subsidiaries (collectively, the "Company" or "Loblaw") should be read in conjunction with the Company's second quarter 2022 unaudited interim period condensed consolidated financial statements and the accompanying notes included in this Quarterly Report, the audited annual consolidated financial statements and the accompanying notes for the year ended January 1, 2022 and the related MD&A included in the Company's 2021 Annual Report - Financial Review ("2021 Annual Report").

The Company's second quarter 2022 unaudited interim period condensed consolidated financial statements and the accompanying notes have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as issued by the International Accounting Standards Board. These unaudited interim period condensed consolidated financial statements include the accounts of the Company and other entities that the Company controls and are reported in Canadian dollars, except when otherwise noted.

Management uses non-GAAP financial measures to exclude the impact of certain expenses and income that must be recognized under GAAP when analyzing consolidated and segment underlying operating performance, as the excluded items are not necessarily reflective of the Company's underlying operating performance and make comparisons of underlying financial performance between periods difficult. The Company excludes additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring. See Section 11 "Non-GAAP Financial Measures" for more information on the Company's non-GAAP financial measures.

A glossary of terms used throughout this Quarterly Report can be found at the back of the Company's 2021 Annual Report.

The information in this MD&A is current to July 26, 2022, unless otherwise noted.

1. Forward-Looking Statements

This Quarterly Report, including this MD&A, contains forward-looking statements about the Company's objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects, opportunities and legal and regulatory matters. Specific forward-looking statements in this Quarterly Report include, but are not limited to, statements with respect to the Company's anticipated future results, events and plans, strategic initiatives and restructuring, regulatory changes, and economic conditions. These specific forward- looking statements are contained throughout this Quarterly Report including, without limitation, Section 5 "Liquidity and Capital Resources", Section 10 "Outlook" and Section 11 "Non-GAAP Financial Measures". Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may", "should" and similar expressions, as they relate to the Company and its management.

Forward-looking statements reflect the Company's estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. The Company can give no assurance that such estimates, beliefs and assumptions will prove to be correct.

2 2022 Second Quarter Report Loblaw Companies Limited

Numerous risks and uncertainties could cause the Company's actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in the Company's MD&A in the 2021 Annual Report, and the Company's 2021 Annual Information Form ("AIF") for the year ended January 1, 2022. Such risks and uncertainties include:

• inability of the Company's information technology ("IT") infrastructure to support the requirements of the Company's business, or the occurrence of any internal or external security breaches, denial of service attacks, viruses, worms and other known or unknown cybersecurity or data breaches;
• failure to maintain an effective supply chain and consequently an appropriate assortment of available product at the store and digital retail level;
• failure to attract and retain talent for key roles that may impact the Company's ability to effectively operate and achieve financial performance goals;
• failure to execute the Company's e-commerce initiatives or to adapt its business model to shifts in the retail landscape caused by digital advances;

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failure to realize benefits from investments in the Company's new IT systems and related processes;

changes to the regulation of generic prescription drug prices, the reduction of reimbursements under public drug benefit plans and the elimination or reduction of professional allowances paid by drug manufacturers;

• failure to effectively respond to consumer trends or heightened competition, whether from current competitors or new entrants to the marketplace;

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public health events including those related to food and drug safety;

errors made through medication dispensing or errors related to patient services or consultation;

failure to achieve desired results in labour negotiations, including the terms of future collective bargaining agreements;

adverse outcomes of legal and regulatory proceedings and related matters;

changes in economic conditions, including economic recession or changes in the rate of inflation or deflation, employment rates and household debt, political uncertainty, interest rates, currency exchange rates or derivative and commodity prices;

• duration and impact of the COVID-19 pandemic on the business, operations and financial condition of the Company, as well as on vendor operations, consumer behaviour and the economy in general;
• failure to adapt to environmental and social risks, including failure to execute against the Company's climate change and social equity initiatives;
• inability of the Company to manage inventory to minimize the impact of obsolete or excess inventory or control shrink;
• reliance on the performance and retention of third party service providers, including those associated with the Company's supply chain and apparel business and located in both advanced and developing markets;
• failure to realize the anticipated benefits associated with the Company's strategic priorities and major initiatives, including revenue growth, anticipated cost savings and operating efficiencies, or organizational changes that may impact the relationships with franchisees and Associates; and
• changes to any of the laws, rules, regulations or policies applicable to the Company's business.

This is not an exhaustive list of the factors that may affect the Company's forward-looking statements. Other risks and uncertainties not presently known to the Company or that the Company presently believes are not material could also cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities ("securities regulators") from time to time, including, without limitation, the section entitled "Risks" in the Company's 2021 AIF (for the year ended January 1, 2022). Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this MD&A. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

2022 Second Quarter Report Loblaw Companies Limited 3