Slide 1: Investor Presentation
INVESTOR PRESENTATION COLABOR GROUP INC. (TSX: GCL) February 28, 2025 Presented by Louis Frenette, President & CEO And Pierre Blanchette, SVP, CFO 1
Slide 2: Forward Looking Statement Disclaimer
FORWARD LOOKING STATEMENT DISCLAIMER This document is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Colabor Group Inc. and has not been prepared for delivery to, and review by, prospective investors in order to assist
Slide 3: The New Colabor – Wrapping Up the Last Year of Our 2020-2025 Plan
THE NEW COLABOR – WRAPPING UP THE LAST YEAR OF OUR 2020-2025 PLAN • Executive Summary • About Colabor • New Leadership • Experienced Board • Improved Client and Product Mix • Improved Level of Gross Margin 3
Slide 4: Executive Summary: Our Transformation
E X E C U T I V E S U M M A RY • O U R T R A N S F O R M AT I O N DELIVERING ON OUR PROMISES THE OPPORTUNITY AHEAD In 2019, a new management team was hired to transform the business. We are now Our distribution platform is shifting to accelerate growth with significant opportunities in the last year
Slide 5: About Colabor
ABOUT Founded in 1962, Colabor is the largest Quebec based distributor and wholesaler of food and related COLABOR products, serving the hotel, restaurant and institutional markets « HRI » in Québec and New Brunswick. Our Mission: “To be the local ingredient for the success of all catering artisans.
Slide 6: New Leadership: Deep Industry Expertise
NEW LEADERSHIP • DEEP INDUSTRY EXPERTISE LOUIS FRENETTE PIERRE BLANCHETTE President and CEO, Joined in 2019 SVP and CFO, Joined in 2021 Former President & CEO Parmalat Canada, Bonduelle Former SVP at Fiera Capital, North America and Danone Canada Global Treasury and Taxation BERNARD CARRIER MARIE-FR
Slide 7: Renewed Governance: Business Leaders
R E N E W E D G OV E R N A N C E • B U S I N E S S L E A D E R S DANIÈLE BERGERON WARREN WHITE MARC BEAUCHAMP Chair of the Corporate Chairman Member of the Audit and HR Governance committee, member LAURIE GAUTHIER Committees of the Audit and HR Committees Member of the Audit Committee Previously Sen
Slide 8: Improved Product & Customer Mix
I M P R OV E D • P R O D U C T & C U S T O M E R M I X Differentiated Channel Offering Diversification Broadline Specialty Wholesale 10,000 SKUs Seafood & Meat 25% (food and non-food) (“center-of-plate”) Restaurants • Optimized SKUs and mix of • Upscaled premium white table- 38% national brands clot
Slide 9: Consistent Improvements
C O N S I S T E N T I M P R OV E M E N T S Sustained Growth Sustained revenue growth & gross margin improvements, with a slight slowdown in 2024 25,0% $ 659 $ 657 $700,0 24,0% $ 574 $600,0 23,0% $ 461 $ 476 $500,0 22,0% 21,0% $400,0 20,0% 19,0% $300,0 18,7% 18,5% 18,0% 18,0% $200,0 17,0% 16,8% 16,6%
Slide 10: Wrapping Up the Last Year of a Successful Turnaround
WRAPPING UP THE LAST YEAR OF A S U C C E S S F U L T U R N A R O U N D PHASE I PHASE II Delivered 2020-2023 2023-2025 Results ADJ. EBITDA(1) LEVERAGE(2)(3) (IN MILLIONS AND % OF SALES) NEW LEADERSHIP BRINGS CHANGE ACCELERATING GROWTH • Exited unprofitable contracts • $18 M Growth Capex towards new $
Slide 11: The Opportunity in the Foodservice Market
THE OPPORTUNITY IN THE FOODSERVICE MARKET • Canadian Foodservice, a large market opportunity • We are #3 in Quebec in a fragmented landscape • Room to Grow • Means to Grow 11
Slide 12: In a Stable and Growing Market: Foodservice
I N A S TA B L E A N D G R O W I N G M A R K E T • F O O D S E R V I C E Foodservice is gaining share of stomach (Billions $) $300,0 Canadians are $250,0 increasingly 4.8% CAGR eating out $200,0 Food-away-from-home $119,2 $150,0 $62,0 $100,0 2.9% CAGR Food-at-home $128,7 $50,0 $86,0 $- 2010 2024 Ret
Slide 13: Foodservice: Large Market Opportunity
F O O D S E R V I C E • LARGE MARKET OPPORTUNITY 119.2B CANADIAN “HRI” MARKET(1) DISTRIBUTOR MARKET (Dollars purchased by the HRI market from distributors) (2024 expected dollars spent at point-of-sale by consumers) RESTAURANT $97.4 $21.9 LANDSCAPE Billion Billion $16.1B • 85,229 Restaurants(2) • 31
Slide 14: Currently #3 in Quebec in a Fragmented Landscape
C U R R E N T LY ( 1 ) # 3 I N Q U E B E C • IN A FRAGMENTED LANDSCAPE Large International Other Quebec Broadline COLABOR Distributors Cash & Carry 53% 11% 36% • GFS #3 in Quebec • Hundreds of regional distributors Market Share(1) • SYSCO • Important distributor in Eastern • Cash and carry Quebec •
Slide 15: Testing the Opportunity: Western Quebec Small Bites
TESTING THE OPPORTUNITY • WESTERN QUEBEC SMALL BITES: Successful integrations and value creation Certain Assets of GROUPE RESTO-ACHATS INC. Certain Assets of BEN DESHAIES INC. GROUPE BEAUDRY INC. Acquired April 4, 2022 Acquired April 22, 2022 Acquired March 15, 2024 • $4.5M purchase price(1) • $0.5M
Slide 16: Laying the Foundations for Growth: New Hybrid Facility
L AY I N G T H E F O U N DAT I O N S F O R G R O W T H N E W H Y B R I D FA C I L I T Y HIGHLY SUCCESFUL ENDEAVOR: MOVE COMPLETED ON TIME AND ON BUDGET BY END OF FY 2023 PROVIDES A HIGHLY EFFICIENT BASE FROM WHICH TO GROW OUR DISTRIBUTION REACH TO IMPROVING OUR PERFORMANCE 90% OF THE HRI MARKET IN Q
Slide 17: Accelerating Growth: Proposed Acquisition of Alimplus and Tout-Prêt
AC C E L E R AT I N G G ROW T H : P RO P O S E D AC Q U I S I T I O N O F A L I M P LU S A N D TO U T- P R Ê T (Announced Febr uar y 19, 2025) • About Alimplus • Strategic Rationale • Optimal Risk - Reward 17
Slide 18: About Alimplus
For over 40 years Alimplus has grown to become a specialized foodservice distributor serving HRI clients with a stronger ABOUT presence in “Western Quebec” and growing customer base in “Eastern Quebec”. Operating as Alimplus until 2020, its distribution activities were rebranded as Mayrand Plus to h
Slide 19: Transaction Overview
T R A N S A C T I O N OV E R V I E W Consolidating our position as the largest Quebec food distributor in the province Brings our share of market to 16% of the HRI distribution market in Quebec Strategic Rationale Transaction Highlights: • Accelerates Colabor’s growth trajectory and profitability •
Slide 20: Maintains a Healthy Customer Mix
M A I N TA I N S A H E A LT H Y C U S TO M E R M I X Alimplus Acquisition PROFORMA Channel Diversification Resulting Combination 3,000 HRI customers 11,000 HRI customers Others Wholesale (down Institutions from 25%) 2% 14% Restaurants 18% (82% from independents) Hotels 1% $225M Other 4% $882M 43% Re
Slide 21: Financing the Transaction
FINANCING THE TRANSACTION Support from our existing financial partners Maintains manageable leverage ratio Amendment to existing credit Amendment to existing New highly subordinated debt facility subordinated debt with IQ with IQ • Increase of $5M on existing credit • Extended maturity of existing $
Slide 22: Accelerates Our Strategic Objectives
A C C E L E R AT E S O U R S T R AT E G I C O B J E C T I V E S P R O F I TA B I L I T Y GROWTH PEOPLE BRAND G E N E R AT E FROM 30% TO 90% AT T R A C T, R E TA I N RENEW AND P R O F I TAB L E G R O W T H O F P O P U L AT I O N AND DEVELOP REFRESH • HRI customer mix with focus on • Establishing stro
Slide 23: Summary of Transaction Rationale
SUMMARY OF TRANSACTION RATIONALE BALANCE SHEET ACCELERATES ACCRETIVE TO REMAINS WIN-WIN EMPLOYEES STRATEGIC PLAN SHAREHOLDERS HEALTHY Favorable customer mix. Improves positioning and Maintains manageable Gain attractive mix of provides operational leverage ratio. customers in our coveted Increased p
Slide 24: Recent Financial Results
RECENT FINANCIAL RESULTS • Q4 2024 Results • Why Invest • Share Information 24
Slide 25: Q4 2024 Sales and Profitability
Q4 2024 SALES AND PROFITABILITY DISTRIBUTION SALES UP BY 5.6% 3.2% WHOLESALE SALES DOWN BY 3.8% $202.6M • Higher distribution volume; $196.3M • New territories; CONSOLIDATED • Impact of inflation estimated at 1.9%; SALES • Assets acquired in March 2024; • Net of the effect of the macroeconomic envir
Slide 26: Q4 2024 Net Earnings and Cash Flow Trend
Q4 2024 NET EARNINGS AND CASH FLOW TREND Net earnings increased to $0.6M in Q4 2024 ($0.01 per share), from $0.4M in Q4 2023 ($nil per share) NET • Decrease in depreciation and amortization expenses EARNINGS and costs not related to current operations; • Mitigated by an increase in finance expenses
Slide 27: Q4 2024 Net Debt and Leverage Ratio Trend
Q4 2024 NET DEBT AND LEVERAGE RATIO TREND -$13.7M $61.5M $47.8M NET DEBT (1) Net debt decreased to $47.8M, from $61.5M at Q4 2023 • Repayments of credit facility of $7.3M; • Cash increase of $6.4M. Q4 2023 Q4 2024 2.7x 2.4x Leverage ratio decreased to 2.4x LEVERAGE RATIO(2) • Decrease of net debt. Q
Slide 28: Share Information (TSX: GCL)
SHARE INFORMATION (TSX: GCL) STOCK PRICE (as at $1.04 February 27, 2025) LAST 52 WEEKS 52-week low-high $0.79 - $1.52 Number of shares issued 102,013,442 and outstanding Average volume (30 days) 153k Market capitalization $105.6M Institutional and ≈ 35% management ownership Analyst coverage: Cormark
Slide 29: Appendix
APPENDIX 29
Slide 30: ESG Priorities
ESG PRIORITIES SOCIAL / ENVIRONMENT GOVERNANCE • Moved into a new to be certified LEED / Net Zero target facility. • Code of conduct (employees, suppliers, stakeholders). • Support local agriculture / supply chain. • Improving health and safety track record. • 2,000 farmer products. • Would like to
Slide 31: Supplemental Financial Information
SUPPLEMENTAL FINANCIAL INFORMATION 16-week period 52-week period (in thousands of dollars, except percentages, per share data and 2024 2023 2024 2023 financial leverage ratio) Sales from continuing operations 202,581 196,320 657,093 659,129 (1) Adjusted EBITDA 11,296 11,652 35,380 37,554 (1) Adjuste
Slide 32: Non-IFRS Measures
NON-IFRS MEASURES 52-week period Fourth quarter Fiscal Year Reconciliation of Net Earnings (Loss) to Adjusted EBITDA 2018(1) 2024 2023 2024 2023 (in thousands of dollars) 52 weeks 16-weeks 16-weeks 52-weeks 52-weeks Net (loss) earnings from continuing operations (4,387) 548 354 1,615 6,047 Income ta
Slide 33: Contact
1601 René-Descartes Street, Suite 103 Saint-Bruno-de-Montarville (Québec) J3V 0A6 Canada Phone : 450 449-4911 Fax : 450 449-6180 investors@colabor.com 33