Slide 1: Q1 Financial Results
Q1 Financial Results May 2, 2024 All dollar amounts are presented in CAD unless otherwise noted.
Slide 2: Forward-looking statements and Non-IFRS measures
Forward-looking statements and Non-IFRS measures 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
Slide 3: Maple Leaf Foods has established itself as an iconic, purpose-driven Canadian Food Company
Maple Leaf Foods has established itself as an iconic, purpose-driven Canadian Food Company 1995 2005 2010 2017 2017 2023 2024 FUTURE Foundation Building Transformation Investing for Future Harvesting the Benefits, Era Era Growth Realizing our Full Potential Structural Adjusted EBITDA Delivered 10% A
Slide 4: We aspire to be a globally-admired and brand-led Consumer Packaged Goods company
We aspire to be a globally-admired and brand-led Consumer Packaged Goods company ~$4.9B ~13,500 23 #1 and #2 Largest First Manufacturing Prepared Meats Carbon Neutral Annual Sales Employees RWA Producer Facilities Brands Major Food Company Prepared Foods ~25% Pork Complex of Annual Sales Prepared Me
Slide 5: The Maple Leaf Blueprint
The Maple Leaf Blueprint serves as our strategic compass MAPLE LEAF FOODS – Q1 2024 BUSINESS AND FINANCIAL REVIEW | MAY 2, 2024 5
Slide 6: Driven by our purpose of Raising the Good in Food, Maple Leaf Foods has demonstrated authentic leadership
Driven by our purpose of Raising the Good in Food, Maple Leaf Foods has demonstrated authentic leadership in sustainability and shared value creation Make Better Food Take Better Care Nurture a Better Planet • Established leadership in Sustainable Meats production, • Industry leader in workplace saf
Slide 7: Over the last five years we have delivered topline growth while improving our profitability
Over the last five years we have delivered topline growth while improving our profitability Sales Adjusted EBITDA Total Company ($ millions) Total Company ($ millions and %) +5.4% +7.4% CAGR CAGR $428 $4,739 $4,868 $400 $400 $4,304 $4,521 $3,942 $321 $273 9.3% 8.8% 8.8% 8.1% 5.8% 2019 2020 2021 2022
Slide 8: 2024 Priorities
2024 Priorities Drive Adjusted EBITDA margin expansion toward 14% - 16% target, in normal market 1 conditions Harvest the remaining benefits from our large capital projects, London Poultry and the Bacon 2 Centre of Excellence Adapt brand strategies to the evolving consumer environment, to restore vo
Slide 9: Business Results Q1 2024
Business Results Q1 2024
Slide 10: Today's key messages
Today’s key messages Q1 Adjusted EBITDA increased 55% year over year to $116 million • Q1 margins increased 370 bps year over year to 10.1%, with contributions from both meat and plant protein • Meat protein Adjusted EBITDA margin improved to 10.8%, an increase of 310 bps versus last year Improvemen
Slide 11: First quarter 2024 financial performance
First quarter 2024 financial performance Q1 2024 Q1 2023 vs. LY Sales (millions) $1,153 $1,171 -1.5% Adj. EBITDA (millions) $116 $75 +55% Adj. EBITDA Margin 10.1% 6.4% +370 bps MAPLE LEAF FOODS – Q1 2024 BUSINESS AND FINANCIAL REVIEW | MAY 2, 2024 11
Slide 12: Adjusted EBITDA grew to $116 million, a 55% increase from Q1 2023
Adjusted EBITDA grew to $116 million, a 55% increase from Q1 2023 Sales Adjusted EBITDA Adjusted EBITDA Total Company ($ millions) Total Company ($ millions) Meat Protein ($ millions) -1.5% +370 bps +310 bps vs Q1 23 vs Q1 23 vs Q1 23 $1,171 10.1% 10.8% $1,153 7.7% 6.4% $116 $121 $87 $75 Q1 2023 Q1
Slide 13: First quarter highlights
First quarter highlights Prepared Foods Pork Complex ~25% of Annual Sales Prepared Meats ~50% Poultry ~20% Plant Protein ~5% of Annual Sales of Annual Sales of Annual Sales Sales +2.9% supported by Sales (7.1)% driven by reduced Sales (5.7)% in line with Sales (4.5)% driven by a bran
Slide 14: Branded sales performance improved reflecting the strength of brand portfolio
Branded sales performance improved reflecting the strength of brand portfolio Investing in our brands, and adapting ad & promo in response to demand environment Investing in Leading Brands Accelerating Pace of Innovation Consumer Relevant Promotions Leveraging Broad Brand Portfolio Executing at Poin
Slide 15: Accelerating the pace of impactful innovation with more than 25 new items launched in Q1
Accelerating the pace of impactful innovation with more than 25 new items launched in Q1, while expanding Sustainable Meats distribution New Product Innovation Expanding Sustainable Meats Consumer-led Renovation Ready-to-Serve The only Natural RWA Adult Kits Our simplest Pulled Pork in Canada ingred
Slide 16: Pork markets improving, but remain well below normal market conditions
Pork markets improving, but remain well below normal market conditions* Market conditions negatively impacted Q1 by approximately $18M or 160 bps Vertically Integrated Margin Industry Vertically Integrated Margin USDA Pork Cutout – Industry Hog Production Cost $140 $55 improved in Q1 $50 USDA Pork C
Slide 17: Disciplined approach to capital management contributing to deleveraging
Disciplined approach to capital management contributing to deleveraging Improving profitability Conclusion of large- Higher cash flow and of the business scale capex programs natural deleveraging Capex now focused on Lowering net debt Improving maintenance and to Adjusted EBITDA, profitability optim
Slide 18: Capital discipline and free cash flow generation
Capital discipline and free cash flow generation Improved near–term cash flow Capital Expenditures Free Cash Flow generation: Capex levels will be lower in 2024, ranging from $170M to $190M $629M +$62M Significant reduction in start-up expenses $491M vs Q1 2023 Incremental Adjusted EBITDA cont
Slide 19: On track to deliver 2024 priorities
On track to deliver 2024 priorities Drive Adjusted EBITDA margin expansion toward 14% - 16% target, in normal market 1 conditions Harvest the remaining benefits from our large capital projects, London Poultry and the Bacon 2 Centre of Excellence Adapt brand strategies to the evolving consumer enviro
Slide 20: Outlook
Outlook Market Conditions Revenue Outlook Margin Outlook Balance Sheet / Capital Outlook Anticipate balance of year Low-to mid single-digit sales growth in Adjusted EBITDA margin expansion Generate increasing free cash flow conditions to progressively 2024 from 2023 improve: Deleverage the balance s
Slide 21: Supplemental Financial Slides
Supplemental Financial Slides MAPLE LEAF FOODS – Q1 2024 BUSINESS AND FINANCIAL REVIEW | MAY 2, 2024 21
Slide 22: Q1 Consolidated Results
Q1 Consolidated Results Change Change Q1 Consolidated Results Q1 2024 Q1 2023 Balance Sheet Q1 2024 Q1 2023 YoY YoY Sales $1,153 $1,171 (1.5%) Total Assets $4,685 $4,500 +$185 Gross profit $226 $76 +197.4% Long Term Debt $1,528 $1,756 $(228) SG&A $110 $103 +6.8% Total Debt $1,929 $1,757 +$172 Adjust
Slide 23: Reconciliation of non-IFRS metrics – Adjusted EBITDA Margin
Reconciliation of non-IFRS metrics – Adjusted EBITDA Margin Three months ended March 31 ($ millions)(1) (Unaudited) 2024 2023 Earnings (loss) before income taxes $74 $(70) Interest expense and other financing costs 42 32 Other expense 1 4 Restructuring and other related (reversals) costs (1) 8 Earni
Slide 24: Reconciliation of non-IFRS metrics – Adjusted Earnings per Share
Reconciliation of non-IFRS metrics – Adjusted Earnings per Share Three months ended March 31 ($ per share) (Unaudited) 2024 2023 Basic earnings (loss) per share $0.42 $(0.48) Restructuring and other related costs(1) — 0.06 Items included in other expense not considered — 0.02 representative of ongoi
Slide 25: Reconciliation of non-IFRS metrics – Free Cash Flow
Reconciliation of non-IFRS metrics – Free Cash Flow Three months ended March 31 ($ thousands) (Unaudited) 2024 2023 Cash provided by operating activities $87,325 $35,714 Maintenance Capital(1) (13,436) (23,107) Interest paid and capitalized related to Maintenance Capital (263) (234) Free Cash Flow $