Maple Leaf Foods Inc. · TSX:MFI
Maple Leaf Foods — Q1 2022 Earnings Presentation
19 slides from Maple Leaf Foods's earnings presentation, May 4, 2022
Slide 1: Driving Profitable Growth: Q1 2022 Business & Financial Review
Driving Profitable Q1 2022 Business All dollar amounts are presented in CAD dollars unless otherwise noted. Growth & Financial Review
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: The Maple Leaf Foods Blueprint
The Maple Leaf Foods Blueprint 3 MAPLE LEAF FOODS – Q1 2022 BUSINESS AND FINANCIAL REVIEW | May 4, 2022
Slide 4: Our Blueprint is consistently delivering top and bottom-line growth
Our Blueprint is consistently delivering top and bottom-line growth Maple Leaf Total Annual Sales Meat Protein Adjusted EBITDA ($ millions) ($ millions and margin %) 2 2 2 • Driven by growth strategies in Brand Renovation, • Benefits of profitable growth strategies and operational Sustainable Meats
Slide 5: Long-term value creation for all stakeholders driven by Blueprint
Long-term value creation for all stakeholders driven by Blueprint To activate our Blueprint, in the near term we are focused on… • Advancing our sustainability agenda, including our food, climate leadership, animal welfare and community building • Continuing to invest in our portfolio of leading bra
Slide 6: During the quarter we remained resilient and maintained operational excellence
During the quarter we remained resilient and maintained operational excellence in the face of unprecedented and unstable external factors • Weathered anticipated Omicron storm; recovery expected in Q2 and beyond Advanced strategic priorities despite challenges Anticipate material sequential reco
Slide 7: Meat Protein Group – Q1 2022 strategic & operational highlights
Meat Protein Group – Q1 2022 strategic & operational highlights Drive Profitable Growth by… Q1 2022 Highlights Investing in our brands • Posted 12th consecutive quarter of branded sales to build demand & equity growth YoY, driven by brand renovation • Grew branded packaged meats and branded poultr
Slide 8: Meat Protein – Q1 2022 financial results
Meat Protein – Q1 2022 financial results Q1 2022 vs. LY Drivers • Pricing action from prior quarters to mitigate inflation and Sales $1,089.4 +7.5% structural cost increases, a favourable mix-shift and higher sales in the United States Gross Profit $131.0 -21.2% • COVID-19 driven operational and sup
Slide 9: Market impact neutral compared to 5yr average
Market impact neutral compared to 5yr average Hog Production Margins Pork Processor Margins Pork By-Product Markets 5-yr avg. 5-yr avg. Hog production margins = live hog cost (CME) less Hog Raising Index Pork processor margins = pork cutout less live hog cost (CME) Notes: Figures shown represent USD
Slide 10: Plant Protein Q1 2022 – Innovation, Growth Built on Strong Foundation
Plant Protein Q1 2022 – Innovation, Growth Built on Strong Foundation Two established, leading brands in Lightlife® and Differentiated growth vectors in Lightlife® Tempeh Building from Field Roast™ and Field Roast™ Chao cheese a strong foundation… Nearly 20% share in U.S. refrigerated retail m
Slide 11: Achieve Adjusted EBITDA neutral in back half of 2023
Achieve Adjusted EBITDA neutral in back half of 2023, with insights- driven path; charting new business model February 2022 Assumptions Revised playbook at current annual sales of ~US$150 million • No longer expect spectacular category growth rates • We do see the plant category growing, but at a •
Slide 12: Plant Protein – Q1 2022 financial results
Plant Protein – Q1 2022 financial results Q1 2022 vs. LY Drivers Sales $44.9 +5.2% • Higher volumes as well as pricing action implemented to (ex-FX, in USD) mitigate inflation and structural cost increases Gross Profit ($6.3) ($6.4) • Operational and supply chain disruptions, inflationary cost incre
Slide 13: Total Company – Q1 2022 financials demonstrate continued growth
Total Company – Q1 2022 financials demonstrate continued growth Q1 2022 vs. LY Drivers • Growth in Meat and Plant driven primarily by pricing and Sales $1,126.6 +7.0% volume Adj. Operating Earnings $16.1 (68.7%) Adj. EBITDA $66.8 (32.8%) • Challenging operating environment from inflation and supply
Slide 14: Meat Protein capital projects to deliver $130 million in Adjusted EBITDA
Meat Protein capital projects to deliver $130 million in Adjusted EBITDA by end of 2023 Bacon Centre of Excellence London Poultry Facility Strategic Rationale Strategic Rationale • Captures growing demand for pre-cooked bacon, improves • Increases processing capacity for value-added, higher margin o
Slide 15: Plant Protein capital investments focused on Tempeh
Plant Protein capital investments focused on Tempeh, a high- growth, high margin category Indianapolis Tempeh Facility Strategic Rationale • Cost effective and scalable approach to meet burgeoning consumer demand for high-growth, high-margin tempeh products • Additional space for future growth oppor
Slide 16: 2022 and Long-term Outlook Focused on Profitable Growth
2022 and Long-term Outlook Focused on Profitable Growth Mid-to-high single digit sales growth in 2022, driven by continued momentum in sustainable meats, leveraging brand leadership, and growth into the U.S. market. Meat Adj. EBITDA margin expansion, reaching the lower end of the 14%-16% target by t
Slide 17: Appendix
MAPLE LEAF 17 Appendix _ BECAUSE ANTIBIOTICS ARE | Tt S TIME FOR BETTER. ‘fh FOR MEAT THAT TASTES THEWAY IT SHOULD LIKE MEAT. | ~ MADE FROM ANIMALS THAT ARE RUsED, NOT PRODUCED, ITS TIME FOR MORE FARM AND LESS PHARM, OR THE SICK, NOT THE HUNGRY. ITS TIME TO LET; NATURE DOITS THING: IT’S TIME FOR BET
Slide 18: Reconciliation of non-IFRS metrics – Adjusted EBITDA Margin
Reconciliation of non-IFRS metrics – Adjusted EBITDA Margin Three months ended March 31, 2022 Three months ended March 31, 2021 Meat Plant Meat Plant ($ millions)(1) Protein Protein Non- Protein Protein Non- (Unaudited) Group Group allocated(2) Total Group Group allocated(2) Total Earnings (loss) be
Slide 19: 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) 2022 2021 Basic earnings per share $0.11 0.39 Restructuring and other related costs(1) 0.02 0.01 Items included in other expense (income) not 0.01 0.02 considered representative of