Slide 1: Corporate Presentation
August 4, 2022 CORPORATE PRESENTATION 2022 2022 Saputo Saputo Inc.Inc. andand affiliates. affiliates. All rights All rights reserved. reserved.
Slide 2: Caution Regarding Forward-Looking Information
Caution Regarding Forward-Looking Information This presentation contains statements which are forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, statements with respect to our objectives, outlook, business projects, st
Slide 3: Who We Are & What We Do
Who We Are & What We Do
Slide 4: One of the Top Dairy Processors in the World
One of the Top 10 Dairy Processors in the World Approx. 67 plants Leading positions in Canada, the USA, Australia, 11 billion 70 distribution centres Argentina, and the UK litres of milk processed annually 2 innovation centres CANADA A leading cheese manufacturer and UK fluid milk and cream Largest
Slide 5: Our Product Portfolio
Our Product Portfolio We manufacture, market, and distribute a diversified range of high-quality products Dairy foods 28% Cheese 46% butter, spreads, cream, creamers, whipping cream, aerosols, ice cream mix, half-and-half, (everyday and specialty) sour cream, cottage cheese, yogurt mozzarella, chedd
Slide 6: Our Brand Portfolio
Our products are sold under our owned brands and customer brand Our Brand Portfolio names (private label) 6 Trademarks used under licence: Bailey’s, Heluva Good, International Delight, Scotsburn, and Cracker Barrel. 2022 Saputo Inc. and affiliates. All rights reserved.
Slide 7: Our Values
Our Values Throughout our history and growth, we have maintained our culture by staying focused on the values that define us Efficiency through A family-oriented Ownership and A hands-on Passion simplicity environment commitment approach We use our innate We seek the well-being We assume the We are
Slide 8: Proven History of Integrating Acquisitions
Proven History of Integrating Acquisitions FY22 $15B Milestone acquisitions consolidated revenues Founded by Lino Saputo and his parents 1954 in Montréal (Canada) with only $500 for equipment and a bicycle for deliveries 1997 2001 2003 2005 Stella Dairyworld Molfino Fromage Côté (USA) Foods Hermanos
Slide 9: Strong and Seasoned Leadership Team
Strong and Seasoned Leadership Team Lino A. Saputo Maxime Therrien Gaétane Wagner Martin Gagnon Chair of the Board, Chief Financial Officer Chief Human Resources Chief Acquisition and Strategic President and CEO and Secretary Officer Development Officer 34 years of service 25 years of service 14 yea
Slide 10: The Saputo Promise
The Saputo Promise We seek to create shared value for all our stakeholders Our approach to social, environmental, and economic performance underpins every aspect of our business. This framework ensures we embed successful Environmental, Social, and Governance (ESG) risks and opportunities management
Slide 11: How We Do It
How We Do It 11
Slide 12: Our Business Model
Our Business Model Market Sourcing raw Logistics: segments material Production warehousing, (customer 1 (milk) and 2 outputs 3 distribution, 4 mix) and other inputs transport brand portfolio R&D / Innovation / Automation Property, Plant and Equipment The Saputo Promise 12 2022 Saputo Inc. and affili
Slide 13: It All Starts With Sourcing the Raw Material
It All Starts With Sourcing All our suppliers must comply 1 the Raw Material with our Supplier Code of Conduct Approx. 11 billion litres of milk processed annually All other input costs Cost of milk (raw material) incurred to produce dairy products May represent up to 85% of the cost of goods 13 202
Slide 14: From Inputs to Outputs: Making Every Drop Count
From Inputs to Outputs: We pledge to reduce our energy use, 2 Making Every Drop Count reuse water, and minimize waste in our operations Extracting value at every step of the production process Raw milk Natural Fluid & cultured Cream Dairy powders cheese Processed Cheese Fluid milk, Flavoured Whole m
Slide 15: Distributing Our Products Around the World
Distributing Our Products Around We provide a wide array of products that satisfy the nutritional and 3 the World lifestyle needs of consumers around the world We sell our products in over 60 countries Domestic distribution in countries where we operate In Canada We built a nationwide distribution n
Slide 16: A Diversified Customer Mix
We strive to offer products made to high industry standards, always A Diversified Customer Mix meeting or exceeding customer 4 requirements for food quality and safety Servicing market segments to mitigate concentration exposure and maximize profitability RETAIL FOODSERVICE INDUSTRIAL Supermarket ch
Slide 17: Our Strengths to Deliver a Competitive Advantage
Our Strengths… to Deliver a Competitive Advantage Operational excellence and manufacturing expertise Best practices to maximize capacity utilization, operating metrics, and profitability Attractive market opportunity The global dairy industry continues to grow at low to mid Flexible and low-cost pro
Slide 18: Our Strengths to Deliver a Competitive Advantage
Our Strengths… to Deliver a Competitive Advantage Financial strength Brand power and value-added Disciplined financial and cash management customer partnerships Strong operational cash flow generation Brands that resonate with consumers: several market-leading brands Responsible approach for long-te
Slide 19: Our Sectors
Our Sectors
Slide 20: Decentralized Operating Structure
Decentralized Operating Structure We operate and report our business through four sectors and five divisions Saputo Inc. International Europe Sector Canada Sector USA Sector Sector Dairy Division Dairy Division Dairy Dairy Dairy Division (Canada) (USA) Division Division (UK) (Australia) (Argentina)
Slide 21: Canada Sector
Dairy Division (Canada) Canada Sector In Canada, Saputo is a leading cheese manufacturer Regulatory environment and fluid milk and cream processor Highly regulated market through comprehensive production quotas and price controls Business overview Canada’s supply management system aims to match
Slide 22: Canada Sector: Products and Brands
Dairy Division (Canada) Canada Sector Products Category-leading brands In Canada, we produce, market, and distribute DAIRY everyday and specialty/fine cheeses, fluid milk, value-added milk, cream, cultured products, butter, ice cream mixes, dairy ingredients (for domestic and export), and other da
Slide 23: Canada Sector: Revenues and Adjusted EBITDA
Dairy Division (Canada) Canada Sector Revenues FY22 revenues by market segment $4,281 $4,135 $4,007 FY20 FY21 FY22 Adjusted EBITDA $475 $447 $404 Retail 59% Foodservice 33% FY20 FY21 FY22 Industrial 8% 23 All information in millions of CDN dollars. 2022 Saputo Inc. and affiliates. All rights reserve
Slide 24: USA Sector
Dairy Division (USA) USA Sector In the USA, Saputo is one of the top three cheese producers Regulatory environment and one of the largest producers of extended shelf-life and Milk prices for several products (cheese, butter, cultured dairy products dry whey, and non-fat dry milk) are set by the Un
Slide 25: USA Sector: Products and Brands
Dairy Division (USA) USA Sector Products Category-leading brands In the USA, we produce, market, and distribute SNACKING CHEESE EVERYDAY CHEESE a variety of everyday and specialty cheeses, dairy alternative cheeses, extended shelf-life and aseptic dairy and non-dairy fluid products, cultured produ
Slide 26: USA Sector: Revenues and Adjusted EBITDA
Dairy Division (USA) USA Sector Revenues FY22 revenues by market segment $7,094 $6,122 $6,409 FY20 FY21 FY22 Adjusted EBITDA $616 $567 $288 Retail 44% Foodservice 45% FY20 FY21 FY22 Industrial 11% 26 All information in millions of CDN dollars. 2022 Saputo Inc. and affiliates. All rights reserved.
Slide 27: International Sector
Dairy Division (Australia) & Dairy Division (Argentina) International Sector Regulatory environment Minimally regulated markets with opportunity for Saputo is the top dairy processor in Australia and continued expansion in domestic and export Argentina markets: No milk production limits Milk pri
Slide 28: International Sector: Products and Brands
Dairy Division (Australia) & Dairy Division (Argentina) International Sector Products Category-leading brands Dairy Division (Australia) DAIRY EVERYDAY CHEESE We produce, market, and distribute in Australia and internationally a full range of dairy products, including everyday and specialty cheese
Slide 29: International Sector: Revenues and Adjusted EBITDA
Dairy Division (Australia) & Dairy Division (Argentina) International Sector Revenues FY22 revenues by market segment $3,453 $3,221 $3,077 FY20 FY21 FY22 Adjusted EBITDA $305 $305 $248 Retail 41% Foodservice 8% FY20 FY21 FY22 Industrial 51% 29 All information in millions of CDN dollars. 2022 Saputo
Slide 30: Europe Sector
Dairy Division (UK) Europe Sector In the UK, Saputo is the largest manufacturer of branded Regulatory environment cheese and a top manufacturer of dairy spreads Minimally regulated market with opportunity for continued expansion in domestic and export markets: Business overview No milk production
Slide 31: Europe Sector: Products and Brands
Dairy Division (UK) Europe Sector Products Category-leading brands We produce, market, and distribute cheese, CHEESE BUTTERS, SPREADS, AND OILS specialty cheese, butter, spreads, oils, as well as dairy alternative spreads and cheeses. In addition, we manufacture value-added dairy ingredients, name
Slide 32: Europe Sector: Revenues and Adjusted EBITDA
Dairy Division (UK) Europe Sector Revenues FY22 revenues by market segment $892 $816 $766 FY20 FY21 FY22 Adjusted EBITDA $152 $143 $144 Retail 78% Foodservice 2% FY20 FY21 FY22 Industrial 20% 32 All information in millions of CDN dollars. 2022 Saputo Inc. and affiliates. All rights reserved.
Slide 33: Consolidated Performance & Financial Profile
Consolidated Performance & Financial Profile 33 2022 Saputo Inc. and affiliates. All rights reserved.
Slide 34: Three-Year Consolidated Financial Performance
Three-Year Consolidated Financial Performance Fiscal years ended March 31 (in millions of CDN dollars) Revenues Adjusted EBITDA1 Net earnings Adjusted net earnings1 $14,944 $15,035 $1,468 $1,471 $14,294 $626 $724 $715 $583 $1,155 $485 $274 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022
Slide 35: Revenues
Revenues FY22 Revenues by Market Segment $15,035 FISCAL YEAR 2020 2021 2022 Retail $7,360 $7,571 $7,461 Retail 50% Foodservice 30% Foodservice $5,062 $4,082 $4,579 Industrial 20% Industrial $2,522 $2,641 $2,995 Total $14,944 $14,294 $15,035 FY22 Revenues by Sector $15,035 FISCAL YEAR 2020 2021 2022
Slide 36: Adjusted EBITDA
Adjusted EBITDA1 $1,468 $1,471 $1,155 FISCAL YEAR 2020 2021 2022 Canada $404 $447 $475 Margin1 9.8% 10.3% 7.7% USA $616 $567 $288 FY20 FY21 FY22 Int’l $305 $305 $248 FY22 Adjusted EBITDA by Sector Europe $143 $152 $144 Total1 $1,468 $1,471 $1,155 Canada 41% USA 25% Net earnings $583 $626 $274 Intern
Slide 37: Financial Guiding Principles
Financial Guiding Principles Balanced Disciplined Target net debt1 Strong capital structure approach to to adjusted operational and staggered financial EBITDA2 cash flow maturity profile to and cash leverage ratio generation provide management of 2.25x flexibility We intend to continue to deploy cas
Slide 38: A History of Strong Operational Cash Flow Generation
A History of Strong Operational Cash Flow Generation Net cash generated from operations over the last 10 years $1,200 1200 000 $1,000 1000 000 $800 800 000 Strong operational cash flow generation across commodity 600 000 $600 environments to drive acquisition strategy and growth $400 400 000 initiat
Slide 39: Net Debt and Leverage Ratio
Net Debt1 and Leverage Ratio Credit ratings Net debt to adjusted EBITDA2 leverage ratio Saputo targets a long-term leverage of As at Target March 31, 2022 approximately 2.25 times net debt to Moody’s adjusted EBITDA2. From time to time, the Baa1 2.25 3.53 Company may deviate from its long-term lever
Slide 40: Dividends
Dividends Annual dividend paid per Common Share CAGR since IPO 14% 0.8 $0.80 $0.72 0.7 $0.70 Dividend Policy 0.6 $0.60 0.5 $0.50 Quarterly dividend of 0.4 $0.40 0.3 $0.30 $0.18 per share (FY23) 0.2 $0.20 0.1 $0.10 0 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Slide 41: How We Grow
How We Grow 41 2022 Saputo Inc. and affiliates. All rights reserved.
Slide 42: A Well-Defined Growth Strategy
A Well-Defined Growth Strategy OUR THREE-PRONGED APPROACH Organic Strategic Growth Acquisitions Global Strategic Plan Saputo Promise 42 2022Saputo 2022 SaputoInc. Inc. and andaffiliates. affiliates.All Allrights rightsreserved. reserved.
Slide 43: Selected Industry Trends and Themes
Selected Industry Trends and Themes We are well positioned to seize key growth opportunities within the dairy industry Consumers expecting companies to take a proactive approach to environmental, animal welfare, and societal Sustained demand in natural cheese category issues Increased e-commerce act
Slide 44: Five Strategic Pillars to Boost Organic Growth
GLOBAL STRATEGIC PLAN Five Strategic Pillars to Boost Organic Growth Increase Create Strengthen Accelerate Optimize and the value of enablers core product enhance ingredients to fuel business innovation operations portfolio investments Leverage brand power Dairy alternatives Maximize value of whey H
Slide 45: Global Strategic Plan
GLOBAL STRATEGIC PLAN Global Strategic Plan Accelerating our organic growth over a four-year period TARGET for the four-year period ending March 31, 2025 To reach $2.125 billion in Adjusted EBITDA1 by the end of FY25 Strengthen Accelerate product Increase the value of Optimize and Create enablers co
Slide 46: Capital Expenditures to Support Our Growth
GLOBAL STRATEGIC PLAN Capital Expenditures to Support Our Growth Base Strategic Total CAPEX1 CAPEX investment $1.1B $1.2B $2.3B • Larger portion of funds to be allocated in the first two years of the CAPEX Plan, mostly under Optimize and enhance operations pillar Highlights • + ~$500 million in incr
Slide 47: Canada Sector: Selected FY22 Highlights
GLOBAL STRATEGIC PLAN SELECTED FY22 HIGHLIGHTS Canada Sector Completed mozzarella production capacity expansion Kicked off production at new Port Coquitlam plant: Fluid milk production transferred from Burnaby plant Dairy alternative beverage production for co-packing and private label partn
Slide 48: USA Sector: Selected FY22 Highlights
GLOBAL STRATEGIC PLAN SELECTED FY22 HIGHLIGHTS USA Sector Further established roadmap for cheese network optimization; announced first phase: $169m to upgrade facilities in WI and CA and support retail ambitions Plans to consolidate cut-and-wrap activities on West Coast; closure of Bardsley St
Slide 49: International Sector: Selected FY22 Highlights
GLOBAL STRATEGIC PLAN SELECTED FY22 HIGHLIGHTS International Sector DAIRY DIVISON (AUSTRALIA) Announced the streamlining of operations at two of plants Gained further efficiencies in plant utilization: supported customers with private label products Successfully completed CHEER cheese rebrandi
Slide 50: Europe Sector: Selected FY22 Highlights
GLOBAL STRATEGIC PLAN SELECTED FY22 HIGHLIGHTS Europe Sector Progressed Davidstow cheese plant expansion; ongoing investments to increase capacity Undertook plans to outsource Nuneaton facility’s warehouse and distribution activities, creating opportunities for consolidation: Closing Frome pla
Slide 51: Strategic Acquisitions to Complement Our Organic Growth Plan
STRATEGIC ACQUISITIONS Accretive targets + disciplined approach Strategic Acquisitions to Complement Our Organic Growth Plan Right strategic fit to Right conditions broaden or complement (fair value and terms) our existing activities Key regions of interest Our priorities Cheese Dairy alternatives U
Slide 52: Our Promise Drives, Enables, and Sustains Our Growth
SAPUTO PROMISE Our Promise Drives, Enables, and Sustains Our Growth This alignment allows us to pursue growth and create shared value for all stakeholders, ensuring the long-term sustainability of our business Organic Growth Growth Through Acquisitions Strengthen Accelerate Increase Optimize and Cre
Slide 53: Saputo Promise Three-Year Plan (FY20-FY22)
SAPUTO PROMISE SELECTED HIGHLIGHTS Saputo Promise Three-Year Plan (FY20-FY22) OUR PEOPLE RESPONSIBLE SOURCING Stepped up our diversity, equity, Increased the number of women Started seeing our health and Launched our Supply Chain Pledges and inclusion (DE&I) initiatives, in senior management, includ
Slide 54: The Table Is Set for Growth
The Table Is Set for Growth A BIGGER, BETTER, STRONGER SAPUTO Our Goals Pursue growth while investing in the long-term sustainability of Enhance profitability Create shared value for all our business our stakeholders Growth Strategy Organic Acquisitions Global Strategic Plan Accretive M&A (FY22-FY25
Slide 55: Investment Highlights
Investment Highlights 55
Slide 56: Saputo Investment Highlights
Saputo Investment Highlights We strike the right balance between operating responsibly and pursuing growth Well-defined growth strategy Organic Strategic Market offers growth Growth Acquisitions opportunities Diversified global platform Saputo Promise = resilience Operational excellence Global dairy
Slide 57: Investor Relations
Investor Relations Nicholas Estrela Director, Investor Relations Saputo Inc. 6869 Métropolitain Blvd. East Montréal, QC Canada H1P 1X8 514-328-3117 nicholas.estrela@saputo.com www.saputo.com