2012 Second Quarter Conference Call

Tim Hortons

August 9th, 2012

Scott Bonikowsky Vice President, Corporate, Publ ic & Government Affairs

Paul House Executive Chairman, and President & Chief Executive Off icer

Cynthia Devine Chief Financial Off icer

S p e a k e r s ( i n s e q u e n c e )

2

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.

SAFE HARBOR STATEMENT

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Paul House

Executive Chairman, President & CEO

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KEY HIGHLIGHTS

Strong EPS growth benefited from net income attributable to THI and share repurchase

Many operational initiatives focused on growth

Launch of Single-serve Coffee and Panini Sandwich* platforms announced

5 *In Canada

TOP-LINE SALES GROWTH

*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

*

Percentages represent year-over-year comparisons, unless otherwise noted.

2012 2011

Q2 Q2

Systemwide Sales Growth(1)* 6.0% 7.2%

Same-Store Sales

Growth(1) 1.8% 3.8%

4.9% 6.6%

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

Q2 2012 Menu & Promotional Innovation

Frozen Lemonade Launch in 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

Continued Promotional Activity

YTD 2012

41

Restaurants

Q2 RESTAURANT DEVELOPMENT ACTIVITY

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.

9

Q2 2012

19

Restaurants

YTD 2012

22

Restaurants

Q2 2012

15

Restaurants

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

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CYNTHIA DEVINE

Chief Financial Officer

11

Q2 2012 – KEY FINANCIAL METRICS

($ in millions CDN, except per share data)

All numbers rounded 12

2012 2011 % 2012

Q2 Q2 Change YTD

Revenues $ 785.6 $ 702.8 11.8% $ 1,506.9

Operating income $ 158.8 $ 143.2 10.9% $ 290.5

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

Q2 2012 – REVENUES

All numbers rounded 13

2012 2011 % 2012

Q2 Q2 Change YTD

Sales $ 563.8 $ 498.1 13.2% $ 1,087.1

Franchise revenues

Rents & royalties 199.0 185.4 7.3% 379.2

Franchise fees 22.8 19.3 18.2% 40.6

221.8 204.7 8.4% 419.8

Total revenues $ 785.6 $ 702.8 11.8% $ 1,506.9

($ in millions CDN, except per share data)

Q2 2012 – COSTS & EXPENSES

All numbers rounded. N/M - not meaningful. 14

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

expenses 40.4 44.0 (8.1%) 80.5

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

($ in millions CDN, except per share data)

Q2 2012 – EARNINGS HIGHLIGHTS

All numbers rounded 15

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

noncontrolling interests (1.2) (0.9) 31.3% (2.4)

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

shares outstanding (millions) 156.0 164.0 (4.9%) 156.2

($ in millions CDN, except per share data)

2012 2011 % 2012

Q2 Q2 Change YTD

$ 5.6 $ 4.0 40.1% $ 8.8

U.S.

CANADA

SEGMENT REPORTING OPERATING INCOME

($ in millions CDN)

All numbers rounded

2012 2011 % 2012

Q2 Q2 Change YTD

$ 164.6 $ 156.4 5.2% $ 305.1

16

Q2 2012 – FINANCIAL REVIEW

($ in millions CDN, unless otherwise indicated)

All numbers rounded *Includes $16.8 M of Ad Fund spending

17

Cash Flow

Q2 Cash Capex* $49.2

Q2 Depreciation and

Amortization $30.9

Balance Sheet

Cash and cash

equivalents $57.7

Restricted cash and

cash equivalents $87.3

Total current assets $521.7

Total assets $2.1 billion

Long-term debt $354.6

Capital leases – long-

term $97.5

Appendix

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.

SYSTEMWIDE SALES GROWTH & SAME-STORE SALES

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