Slide 1: Third Quarter 2018
Third Quarter 2018 Advancing our vision to be the most sustainable protein company on earth
Slide 2: Forward-looking and non-IFRS information
Forward-looking and non-IFRS information This presentation contains “forward-looking information” within the meaning of applicable securities law. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which the Company operates, as well as
Slide 3: Solid commercial performance inside highly abnormal market conditions
Solid commercial performance inside highly abnormal market conditions Sales growth in value-added portfolio more than offset by rapid drop in fresh market pricing Adjusted EBITDA margin of 9.3%, adjusted EPS of $0.29 Temporary collapse of hog market prices due to abnormal global trade instability Co
Slide 4: Normal EBITDA margin bandwidth; Abnormal markets, driven by trade instability
Normal EBITDA margin bandwidth; Abnormal markets, driven by trade instability Hog prices plunged more than 35% over a six-week period Driven by instability in global pork trade expectations Normal bandwidth of EBITDA margin performance in abnormal market environment Source: CME daily futures market
Slide 5: Third quarter financial metrics
Third quarter financial metrics $874.8 9.3% Sales in Millions Adjusted EBITDA margin $0.29 $(65.5)M Adjusted EPS Net (debt) cash 5 Q3 2018 BUSINESS AND FINANICAL REVIEW – MAPLE LEAF FOODS | OCTOBER 25, 2018
Slide 6: Most things went well in the quarter
Most things went well in the quarter Excellent progress in food and brand renovation Positive volume trajectory inside the quarter Improved performance in prepared meats sales mix Solid gains in all growth platforms Sustainable meat Plant-based protein Value-added poultry Continued growth in
Slide 7: Keeping our eye on all key value levers: Significant gains in sustainability leadership
Keeping our eye on all key value levers: Significant gains in sustainability leadership Over 40,000 sows converted to proprietary advanced open housing system Investing in new livestock transportation systems Progress in developing a leading carbon management strategy 16 community partners with Mapl
Slide 8: Keeping our eye on all key value levers: Advancing our poultry agenda
Keeping our eye on all key value levers: Advancing our poultry agenda Cericola acquisition provides increased supply, capacity and penetration in sustainable meat Growth in value added fresh poultry a significant contributor to EBITDA margin expansion Finalizing fresh poultry investment strategy 8 Q
Slide 9: Keeping our eye on all key value levers: Ultra high growth in plant-based protein
Keeping our eye on all key value levers: Ultra high growth in plant-based protein Robust innovation pipeline Supply chain challenged to keep up with demand Winning in the market with our “best food” commitment 10 9 Q3 2018 BUSINESS AND FINANCIAL REVIEW – MAPLE LEAF FOODS | OCTOBER 25, 2018 Presentat
Slide 10: Greenleaf Foods; a new identity for our expanding plant-based protein platform
Greenleaf Foods; a new identity for our expanding plant-based protein platform New identity and growing infrastructure reflects significance of this strategic platform All brands and acquisitions are rolled under this platform Investing in people, product development, brands and capacity for growth
Slide 11: VIAU: A strategic acquisition in artisanal meats
VIAU A strategic acquisition in artisanal meats Agreement to acquire VIAU Foods for $215M Canadian leader in premium Italian dry-cured and charcuterie meat Two facilities including a state-of-the art plant with available production capacity Platform to expand Raised Without Antibiotics products to V
Slide 12: Looking beyond the short term 'noise'
Looking beyond the short term ‘noise’ Managing through abnormal short-term market volatility, supported by balanced portfolio and good commercial performance Excellent progress on value creation levers to deliver on our sustainable vision, including EBITDA margin target Robust pipeline of attractive
Slide 13: Reconciliation of Non-IFRS Measures
Reconciliation of Non-IFRS Measures Adjusted Operating Earnings Q3 2018 Q3 2017 2018 2017 ($ millions) Net earnings 26.6 37.6 89.4 105.0 Income taxes 9.0 11.9 33.6 38.0 Earnings before income taxes(i) 35.6 49.5 123.0 143.1 Interest expense and other financing costs 2.3 1.3 5.8 3.9 Other expense (inc
Slide 14: Reconciliation of Non-IFRS Measures
Reconciliation of Non-IFRS Measures Adjusted EBITDA Q3 2018 Q3 2017 2018 2017 ($ millions) Net earnings 26.6 37.6 89.4 105.0 Income taxes 9.0 11.9 33.6 38.0 Earnings before income taxes(i) 35.6 49.5 123.0 143.1 Interest expense and other financing costs 2.3 1.3 5.8 3.9 Items in other expense (income
Slide 15: Reconciliation of Non-IFRS Measures
Reconciliation of Non-IFRS Measures Adjusted EPS Q3 2018 Q3 2017 2018 2017 ($ per share) Basic earnings per share 0.21 0.29 0.71 0.81 Restructuring and other related costs 0.00 0.03 0.02 0.10 Items included in other expense (income) not considered representative of 0.02 (0.06) 0.05 (0.03) ongoing op