2. Speakers (in sequence)
Scott Bonikowsky
V ic e President, Corporate, Public
& Government Affairs
Paul House
Executive Chairman, and
Pres ident & Chief Exec utive Offic er
Cynthia Devine
Chief Financ ial Offic er
2
3. SAFE HARBOR
STATEMENT
Certain information in this presentation, particularly information regarding future economic performance, finances, and
plans, expectations and objectives of management, and other information, constitutes forward-looking information within
the meaning of Canadian securities laws and forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. We refer to all of these as forward-looking statements. Various factors including competition
in the quick service segment of the food service industry, general economic conditions and others described as "risk factors"
in the Company's 2011 Annual Report on Form 10-K filed February 28th, 2012, as updated in our Quarterly Report on Form
10-Q expected to be filed today with the U.S. Securities and Exchange Commission and Canadian Securities Administrators,
could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking
statements. As such, readers are cautioned not to place undue reliance on forward-looking statements contained in this
presentation, which speak only as to management's expectations as of the date hereof.
Forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not
limited to, assumptions about: the absence of an adverse event or condition that damages our strong brand position and
reputation; the absence of a material increase in competition within the quick service restaurant segment of the food service
industry; cost and availability of commodities; continuing positive working relationships with the majority of the Company’s
restaurant owners; the absence of any material adverse effects arising as a result of litigation; there being no significant
change in the Company’s ability to comply with current or future regulatory requirements; and general worldwide economic
conditions. We are presenting this information for the purpose of informing you of management’s current expectations
regarding these matters, and this information may not be appropriate for any other purpose.
We assume no obligation to update or alter any forward-looking statements after they are made, whether as a result of new
information, future events, or otherwise, except as required by applicable law. Please review the Company's Safe Harbor
Statement at www.timhortons.com/en/about/safeharbor.html.
Results only include up to July 1st, 2012 unless otherwise noted and have not been updated. Historical results are no
guarantee of future performance. 3
5. KEY HIGHLIGHTS
Many operational initiatives focused on
growth
Strong EPS growth benefited from net income
attributable to THI and share repurchase
Launch of Single-serve Coffee and Panini
Sandwich* platforms announced
*In Canada
5
6. TOP-LINE SALES GROWTH
*
Percentages represent year-over-year comparisons, unless otherwise noted.
2012 2011
Q2 Q2
Systemwide Sales Growth(1)* 6.0% 7.2%
Same-Store Sales
1.8% 3.8%
Growth(1)
4.9% 6.6%
*Constant currency basis.
(1) Systemwide sales growth includes restaurant sales at both Franchised and Company-operated restaurants. Same-stores sales growth includes sales at Franchised and Company-operated locations open for 13 months or
more. See information on slide 19 regarding these measures.
6
7. MORE THAN A GREAT BRAND
Free Wi-Fi and Interior
Digital Menu Boards
continue to roll-out across
Canada
Panini platform to be in
place in Canada later in the
second half of 2012
Canadian drive-thru double
order station
implementation 7
8. Q2 2012 Menu & Promotional
Innovation
Continued Frozen Lemonade Launch in
Promotional Activity Canada
$1 promotional price (Small)
Promotion of the Peach Mango
Smoothie for $1.99
Promotion of the Tuscan Chicken
Panini in the U.S.
Iced Capp promotion in both the
U.S. and Canada
9. Q2 RESTAURANT
DEVELOPMENT ACTIVITY
19 15
Restaurants Restaurants
Q2 2012 Q2 2012
41 22
Restaurants Restaurants
YTD 2012 YTD 2012
9 9
Note: Locations opened include mix of full-serve standard and non-standard restaurants and self-serve kiosk locations. Internationally, 5 restaurant were opened in the G.C.C. this quarter and 6 YTD.
10. LAUNCHING SINGLE-SERVE
Tassimo® Single-Serve
North American-wide agreement
with Kraft Foods to enter single-
serve
Single-serve formats
Premium-blend coffee, decaf coffee
and lattes
Planned launch in time for the 2012
holiday season
10
14. Q2 2012 – COSTS &
EXPENSES
($ in millions CDN, except per share data)
2012 2011 % 2012
Q2 Q2 Change YTD
Cost of sales $ 493.3 $ 434.1 13.7% $ 958.7
Operating expenses 73.1 65.1 12.2% 139.8
Franchise fee costs 24.8 20.4 21.4% 45.1
General & administrative
40.4 44.0 (8.1%) 80.5
expenses
Equity (income) (3.9) (3.8) 1.0% (7.1)
Other (income), net (1.0) (0.2) N/M (0.6)
Total costs & expenses, net $ 626.7 $ 559.5 12.0% $ 1,216.4
All numbers rounded. N/M - not meaningful. 14
15. Q2 2012 – EARNINGS
HIGHLIGHTS
($ in millions CDN, except per share data)
2012 2011 % 2012
Q2 Q2 Change YTD
Operating income $ 158.8 $ 143.2 10.9% $ 290.5
Interest (expense), net (7.9) (6.6) 20.5% (15.1)
Income taxes (41.7) (40.2) 3.7% (76.1)
Net income attributable to
(1.2) (0.9) 31.3% (2.4)
noncontrolling interests
Net income attributable to THI $ 108.1 $ 95.5 13.1% $ 196.8
Diluted EPS attributable to THI $ 0.69 $ 0.58 18.9% $ 1.26
Diluted weighted average
156.0 164.0 (4.9%) 156.2
shares outstanding (millions)
All numbers rounded 15
16. SEGMENT REPORTING
OPERATING INCOME
($ in millions CDN)
2012 2011 % 2012
Q2 Q2 Change YTD
$ 164.6 $ 156.4 5.2% $ 305.1
CANADA
2012 2011 % 2012
Q2 Q2 Change YTD
$ 5.6 $ 4.0 40.1% $ 8.8
U.S.
All numbers rounded
16
17. Q2 2012 – FINANCIAL
REVIEW
($ in millions CDN, unless otherwise indicated)
Cash Flow Balance Sheet
Cash and cash
equivalents $57.7
Q2 Cash Capex* $49.2 Restricted cash and
cash equivalents $87.3
Total current assets $521.7
Total assets $2.1 billion
Q2 Depreciation and
Amortization $30.9 Long-term debt $354.6
Capital leases – long-
term $97.5
All numbers rounded
*Includes $16.8 M of Ad Fund spending 17
19. SYSTEMWIDE SALES
GROWTH & SAME-STORE SALES
Total systemwide sales growth includes restaurant level sales at both Franchised and Company-operated
restaurants. Approximately 99.5% of our consolidated system is franchised as at July 1st, 2012.
Systemwide sales growth is determined using a constant exchange rate where noted, to exclude the
effects of foreign currency translation. U.S. dollar sales are converted to Canadian dollar amounts using
the average exchange rate of the base year for the period covered. For the second quarter of 2012,
systemwide sales on a constant currency basis increased 6.0% compared to the second quarter of 2011.
Systemwide sales are important to understanding our business performance as they impact our royalties
and rental revenues, as well as our distribution revenues. Changes in systemwide sales are driven by
changes in average same-store sales and changes in the number of systemwide restaurants, and are
ultimately driven by consumer demand.
Same-store sales growth represents growth on average, in retail sales at restaurants operating
systemwide that have been open for thirteen or more months.
We believe systemwide sales and same-store sales growth provide meaningful information to investors
regarding the size of our system, the overall health and financial performance of the system, and the
strength of our brand and restaurant owner base, which ultimately impacts our consolidated and
segmented financial performance. Franchised restaurant sales are not generally included in our
Condensed Consolidated Financial Statements (except for certain non-owned restaurants consolidated in
accordance with applicable accounting rules). The amount of systemwide sales impacts our rental and
royalties revenues, as well as distribution revenues.
19
