GWL Corporate Free Cash Flow ⁽¹⁾

Following the reorganization of Choice Properties to GWL, management evaluates the cash generating capabilities of GWL Corporate ⁽²⁾ based on the various cash flow streams it receives from its operating subsidiaries. As a result, the GWL Corporate free cash flow ⁽¹⁾ is based on the dividends received from Loblaw, distributions received from Choice Properties and net cash flow contributions received from Weston Foods less corporate expenses, interest and income taxes paid. Lease payments are excluded from the calculation of GWL Corporate free cash flow ⁽¹⁾ to normalize for the impact of the implementation of IFRS 16.

For the quarters and years ended December 31 ($ millions)	Quarters ended		Years ended
For the quarters and years ended December 31 ($ millions)	2019	2018	2019	2018
Weston Foods adjusted EBITDA ⁽¹⁾	56	59	223	233
Weston Foods capital expenditures	(70)	(91)	(194)	(212)
Distributions from Choice Properties	82	43	325	43
Dividends from Loblaw	-	-	233	212
Weston Foods income taxes paid	-	(2)	(7)	(32)
Other	64	21	(41)	(23)
GWL Corporate cash flow from operating businesses ⁽¹⁾	132	30	539	221
GWL Corporate and financing costs ⁽ⁱ⁾	(24)	(33)	(109)	(108)
Income taxes paid	(4)	(2)	(19)	(14)
GWL Corporate free cash flow ⁽¹⁾	104	(5)	411	99

(i) Included in Other and Intersegment, GWL Corporate includes all other company level activities that are not allocated to the reportable operating segments, such as net interest expense, corporate activities and administrative costs. Also included are preferred share dividends paid.

Dividends

GWL declared an annualized dividend of $2.10 per common share in 2019. It is the Company's intention to increase the dividend per common share over time while retaining appropriate free cash flow to finance future growth. Since 2011, the Company has over time increased its dividend, representing a 4.8% CAGR.

Bar chart illustrating the annual dividend per common share from 2011 to 2019. The dividend has increased steadily over this period, representing a 4.8% Compound Annual Growth Rate (CAGR).

Year	Dividend ($)
2011 ⁽ⁱ⁾	~1.40
2012	~1.50
2013	~1.55
2014	~1.55
2015	~1.60
2016	~1.70
2017	~1.80
2018	~1.90
2019	2.10

(i) Does not include the special one-time common share dividend of $7.75 per common share which was paid on January 25, 2011.

GEORGE WESTON LIMITED 2019 ANNUAL REPORT

GWL Corporate Free Cash Flow (1)

Dividends

GWL Corporate Free Cash Flow ⁽¹⁾