Slide 1: Fourth Quarter and Year-End 2016 Review
Fourth Quarter and Year-End 2016 Review Building the path to further profitable growth
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: Fourth quarter highlights
Fourth quarter highlights Strategic Margin Target Continued Earnings Growth Dividends and Share Buybacks Achieved our Increased EPS to Repurchased 2.1M strategic margin $0.31 per share shares and target for the increased our fourth consecutive dividend by 22% to quarter $0.11 per share +10.4% +24% +
Slide 4: Significant earnings and cash flow growth
Significant earnings and cash flow growth Extra week in Q4 2015 ($ millions) Earnings Q4 2016 Q4 2015 % Change 2016 2015 % Change Sales 828.2 873.1 NOTE 1 3331.8 3292.9 NOTE 1 Adjusted Operating Earnings 63.7 47.8 33.3% 239.3 109.8 117.9% Adjusted EBITDA 86.4 75.8 14.0% 343.4 219.8 56.2% Adjusted EB
Slide 5: Excellent commercial and operating performance
Excellent commercial and operating performance Substantial improvement in supply chain costs Improving prepared meats volumes Very high volatility in fresh belly and bacon markets Positive fresh market conditions in the quarter Refocusing our brand and marketing efforts on core renovation
Slide 6: High level of consistency in EBITDA margin
High level of consistency in EBITDA margin Strategic 10.4% Target 10.3% 10.3% 10.0% 10.2% 8.7% 7.1% 6.0% 4.7% 0.5% 0.7% 0.5% 1.5% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 -1.3% -1.1% -1.4% -4.3% Q4 2016 Review 6
Slide 7: Rewarding shareholders… Dividends Share buybacks
Rewarding shareholders… Dividends Share buybacks ✔ Increased annual dividend by ✔ Purchased 10.8 million 175% over the past three years shares for $255 million in from $0.16 to $0.44/share normal course issuer bid Dividends Per Share Share Buyback ($ millions) 200.0 0.50 180.0 0.40 40% CAGR 160.0 18
Slide 8: Building blocks to sustained profitable growth
Building blocks to sustained profitable growth We have a clear pathway to deliver sustained profitable growth Lead in Invest in our Leverage Continuous Targeted Sustainability poultry assets brands and innovation cost reduction + strategic M&A Q4 2016 Review 8
Slide 9: Lightlife acquisition provides a new growth platform
Lightlife acquisition provides a new growth platform Maple Leaf Strategic Growth Platforms Lightlife Foods Acquisition High growth segment significantly SUSTAINABLE outpacing broader packaged foods MEAT Establishes solid U.S. platform with market leading brands and manufacturing base ALTERNATIVE
Slide 10: Lightlife: #1 in the refrigerated proteins market
Lightlife: #1 in the refrigerated proteins market Overview A diverse portfolio of leading products • US $140 million acquisition Tempeh Hot Dogs Sausage/Breakfast • Leading brand in U.S. refrigerated plant-based proteins with 38% market share. Market position allows Lightlife to drive broader catego
Slide 11: Building sustainability as a competitive advantage
Building sustainability as a competitive advantage Our focus on leading in sustainable protein intersects with key consumer trends and drives commercial opportunity Accomplishments: Our Sustainability Framework Leader in poultry raised without antibiotics (RWA) in Canada, and RWA pork in North Ame
Slide 12: Strong foundation to accelerate profitable growth
Strong foundation to accelerate profitable growth Delivering on strategic targets with growth plans to accelerate them Lead in sustainability provides platform for advantage and growth Building our M&A pipeline in targeted growth areas Refocused on brand renovation investment in core segment
Slide 13: Reconciliation of non-IFRS financial measures
Reconciliation of non-IFRS financial measures Adjusted Operating Earnings ($ millions) Q4 2016 Q4 2015 2016 2015 Net earnings 76.2 33.2 181.7 41.6 Income taxes 28.7 12.4 67.9 11.1 Earnings before income taxes 104.9 45.6 249.6 52.7 Interest expense and other financing costs 1.2 1.2 6.4 4.7 Other (inc
Slide 14: Reconciliation of non-IFRS financial measures continued
Reconciliation of non-IFRS financial measures continued Adjusted EBITDA Q4 2016 Q4 2015 2016 2015 ($ millions) Net earnings 76.2 33.2 181.7 41.6 Income taxes 28.7 12.4 67.9 11.1 Earnings before income taxes 104.9 45.6 249.6 52.7 Interest expense and other financing costs 1.2 1.2 6.4 4.7 Items in oth
Slide 15: Reconciliation of non-IFRS financial measures continued
Reconciliation of non-IFRS financial measures continued Adjusted EPS ($ per share) Q4 2016 Q4 2015 2016 2015 Basic earnings per share 0.57 0.24 1.35 0.30 Restructuring and other related costs 0.02 0.07 0.04 0.18 Items in other income not considered 0.00 (0.03) (0.02) 0.02 representative of ongoing o