The Forzani Group Ltd.

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The Forzani Group Ltd.
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Forward-looking Statements
EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED,
THE FOLLOWING SLIDES AND ACCOMPANYING DISCUSSION
ARE FORWARD-LOOKING STATEMENTS THAT ARE BASED ON
CURRENT EXPECTATIONS, BUT ENTAIL VARIOUS KNOWN
AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY. THESE
STATEMENTS MAY BE IDENTIFIED WITH THE USE OF
FORWARD-LOOKING TERMINOLOGY SUCH AS ESTIMATES,
EXPECTS, BELIEVES, PLANS, WILL, MAY,
SHOULD, ANTICIPATES, OR SIMILAR STATEMENTS OR
THE NEGATIVE THEREOF OR ANY VARIATIONS. THESE
RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT
LIMITED TO, STATEMENTS MADE AS TO FUTURE
OPERATING COSTS, CAPITAL EXPENDITURES, CASH FLOW,
IMPROVEMENTS IN INFRASTRUCTURE, OPERATING
EFFICIENCIES, PRODUCT DEMAND AND MARKET
ACCEPTANCE RISKS THE EFFECT OF COMPETITIVE
PRODUCTS AND PRICING THE AVAILABILITY OF
PRODUCTS ACCOUNTING ADJUSTMENTS AND THE OTHER
RISKS IDENTIFIED IN DOCUMENTS FILED BY THE
COMPANY WITH THE REGULATORY BODIES. THE COMPANY
UNDERTAKES NO OBLIGATION TO UPDATE ANY
FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR
CIRCUMSTANCES AFTER THE DATE SUCH STATEMENTS ARE
MADE.
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Agenda
Who is FGL? Sporting Goods Industry and FGL The
Numbers Why FGL? What Next?
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Who is The Forzani Group (FGL)
Largest and only national sporting goods
retailer in Canada with sales approaching 1
billion
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Who is FGL?
One of Canadas fastest 21 average annualized
growing retail companies. growth in total sales
over the past 3 years.
One of the few retailers 138 bp increase, year
whose gross margins are over year in the most
expanding. recent quarter to 35.67.
One with significant 147 increase in EPS
EPS growth. over the past 3 years in
our most recent fiscal year.
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The Sporting Goods Industry and FGL
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2001 Canadian Sporting Goods Market

• Market size6.3 billion

Source Trendex
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2001 Grocery Store Market
Sobeys
Regionals
Loblaw
Smaller Regionals
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Canadian Sporting Goods FGLs Market Share
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Canadian Sporting Goods FGLs Market
Share January June, 2002
Retail Sales (millions) 2,769 (Trendex) FGL
Sales (millions) 458
FGL Market Share 16.5
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FGL Sector Overview

• Largest sector retailer in Canada
• Only big-box format
• Only national sporting goods retailer and
  franchisor in Canada

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FGL Sector Overview

• Best retail space in our sector
• Sector has had 2 3 growth during the last
  two recessions
• 25 uninterrupted years of industry expansion

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The Numbers
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Retail System Sales Quarter 2
Record retail sales -- an increase of 25 over
the second quarter of fiscal 2002
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Gross Margins Quarter 2
Due in part, to the change in mix of corporate
and franchise revenues.
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Net Income Quarter 2
Up 43
FGL posted its strongest Q2 profits in the
Companys history.
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Earnings Per Share Quarter 2
Basic earnings per share have increased consistent
ly over the last four years.
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Key Ratios
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Back to School
Comparable store sales for the five weeks
ended September 1, 2002
Corporate Franchise 6.5
4.9
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Why FGL?
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Why FGL?
Positioning
Financial Fundamentals
Industry Opportunity
Results, Results, Results
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FGL structurally positioned to succeed

• Only national player
• Lowest product cost
• Biggest advertiser by a wide margin
• 1 womens retailer in our category

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FGL structurally positioned to succeed

• Only sporting goods anchor tenant
• The best locations
• Lowest occupancy costs in our sector

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Financial Fundamentals

• Profitable in every quarter
• Consistent top-line growth while growing
  EBITDA
• Steady reduction in operating expenses as a
  percent of revenues
• Continual EPS growth

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Industry Opportunity

• Undercapitalized Independents
• Weak buying groups
• Mass merchants no service, no selection.

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Results, Results, Results
Fiscal 98 Fiscal 02 Sales have increased
99.6 Gross margin have increased
141.6 EBITDA have increased
445.3 EBITDA has increased 410 bp EPS
has increased 1,420.0 Share price has
increased 274.2
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Why FGL?

• Because
• We consistently deliver record
  performance
• We have no national competition at our
  level
• Our market continues to consolidate

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Why FGL?

• Because
• Our comparable store sales continually
  outpace our segment and most retail
  formats
• Our margins continue to grow and costs
  continue to decline
• Our review of all major financial statement
  ratios versus regionals / independents,
  shows FGL emerging the clear winner

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• The Next Five Years
• Double the top line
• Easily exceed 10 EBITDA margins

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The Forzani Group Ltd.