Maple Leaf Foods Inc. · TSX:MFI
Maple Leaf Foods — Investor Presentation (November 2018)
11 slides from Maple Leaf Foods's investor presentation, Nov 26, 2018
Slide 1: Enhancing profitable growth in our value-added poultry business
Enhancing profitable growth in our value-added poultry business Investor Presentation – November 26, 2018
Slide 2: Forward-looking Statements and non-IFRS Measures
Forward-looking Statements and non-IFRS Measures This presentation contains statements made by representatives of the Company in connection with this presentation, may contain forward- looking statements within the meaning of applicable securities law. These statements are based on current expectati
Slide 3: Maple Leaf Foods is building a $660 million world-class, value-added poultry processing facility in Ontario
HIGHLIGHTS • The new 640,000 sq. ft. facility will be one of the most technologically advanced poultry Maple Leaf Foods is processing plants in the world building a $660 million world-class, value-added • Positively shift our poultry business mix by poultry processing facility adding capability for
Slide 4: A strategic investment expected to deliver $105 million in EBITDA
FINANCIAL BENEFITS A strategic investment Financial benefits are equally driven by expected to deliver commercial improvements and cost $105 million in EBITDA1 reduction: on a run-rate basis and 1. Mix: enhancing value-added product mix contribute to achieving within our existing poultry business th
Slide 5: Enhances our value-added product mix and capacity to meet growing market demand
COMMERCIAL BENEFITS Enhances our value-added • Increases production of value-added air- product mix and capacity chilled, tray packed, boneless and ground products by addressing existing capacity to meet growing market constraints demand • Supports growth in our retail branded business, where we hav
Slide 6: Reduces costs through scale, technology and complexity reduction
OPERATIONAL BENEFITS • Increases productivity, lowers overhead and distribution costs by more than 30% Reduces costs through scale, technology and • Increases yield through new technologies for stunning, air chilling, slicing and deboning complexity reduction • Reduces supply chain complexity by con
Slide 7: Secures our long-term leadership in the growing market for value-added poultry
GROWTH BENEFITS Secures our long-term • Chicken is the most consumed and highest leadership in the growing growth meat protein in Canada market for value-added • Maple Leaf is the Canadian market leader in poultry branded raised without antibiotics and halal chicken, the fastest growing segments of
Slide 8: Maple Leaf continues to deliver structural margin expansion through investing in scale and value-added processing
TRACK RECORD Maple Leaf continues to • Cost reduction, waste elimination and deliver structural margin shifting mix to higher margin products are proven strategies to deliver structural expansion through margin expansion investing in scale and value-added processing • Materially less complex than pr
Slide 9: Site Details: London, Ontario
SITE DETAILS Location London, Ontario – approximately 200 km from Toronto Population 384,000 Size ~100 acres Benefits • Available skilled labour • Site services • Ready access to #401 highway • Proximity to poultry farms Artist rendering subject to change 9 ONTARIO POULTRY STRATEGY – MAPLE LEAF FOOD
Slide 10: Facility start-up planned for second quarter of 2021 and fully operational by late 2022
TIMELINE Activity Timing Facility start-up Construction/site work begins Spring 2019 planned for second Ramp-up begins Q2 2021 quarter of 2021 and St. Mary’s plant closure By Q4 2021 fully operational by Toronto plant closure By Q2 2022 late 2022 Brampton plant closure By Q4 2022 One-Time Costs 2020
Slide 11: Delivers solid return on capital and creates significant shareholder and stakeholder value
SUMMARY Delivers solid return • Expands our value-added processing capabilities and sustains our brand on capital and leadership in the premium poultry market creates significant shareholder and • Significantly reduces costs through scale, stakeholder value technology and complexity reduction • Buil
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