In some respects, the past year was one of transition in the Company. Don Schroeder was appointed President and CEO in March of 2008, and I assumed the role of Executive Chairman, a role in which I became primarily focused on Board leadership, strategic planning and related activities, and work with our franchisees and other key stakeholders.

I am proud of our accomplishments in these areas. After becoming an independent public company in 2006, the Board and members of our senior management team have worked hard to foster strong, effective governance.

With the addition of Mr. Ron Osborne and Ms. Cathy Williams, our Board is now comprised of more than 80% independent directors. Working closely with our independent Lead Director, The Honourable Frank Iacobucci, we have established a governance climate that fosters rigorous debate and dialogue, active engagement with the senior management team, and sound governance practices.

As 2009 unfolds, we do not yet know the full extent of the economic challenge that will face consumers and businesses. I believe, however, that Tim Hortons is well positioned to respond to these challenges because of the tremendous customer loyalty we are privileged to enjoy and our attractive price-value position.

Sincerely,

Paul D. House
Executive Chairman