Great companies are often defined as much by how they perform in tough times as by how successful they are when things are going well. As the world begins to emerge from profound economic challenges, once again our Company has demonstrated the strength and resiliency of our business, our customer relationships, and our people.

Very few companies stand the test of time, and, of those that do, most must continuously improve to remain relevant. While Tim Hortons retains the special hallmarks that have defined our Company over the past 46 years, we always seek to continuously improve, stewarding the brand to make it better for the next generation of leaders.

As much of the restaurant industry in North America and around the world entrenched last year, Tim Hortons pushed forward, adding to our scale, establishing new relationships and continuing to grow our business by responding to customer needs.

I am proud of what we accomplished in 2009, not only of our performance and how we weathered the economic storm, but also for the foundation that has been laid by the Management team for future growth and success. Your Board plays an active oversight role with respect to the strategic vision and direction of the business.

We have well-defined objectives, clear strategies and supporting plans in place to continue building this business in the same disciplined manner that has made us a leader in the North American restaurant industry for so many years.

Our business is one built on the success of each individual restaurant and franchisee. I believe our franchisee group is the best anywhere, as they again demonstrated as they grew sales in a very challenging environment. One of our key roles is to support them so that they are positioned for success to continuously grow the business. Under Don Schroeder’s leadership, we have great confidence in our Management team’s ability to build our business and continue our powerful track record of performance and growth.

In addition, we are also focused on ensuring that a culture of effective governance exists to guide this great organization.

Now entering our fifth year as a public company, we continue to review and keep current on governance practices, and your Board is highly engaged and committed in carrying out its obligations. We are fortunate to have such a tremendously skilled and capable Board working on behalf of the Company and our shareholders.

Respectfully,