Slide 1: SunOpta Inc. Investor Presentation
SunOpta Inc. Investor Presentation August 2024 1 © SunOpta Inc. 2024 1
Slide 2: General Disclosures
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 General Disclosures This presentation contains forward-looking statements that reflect the Company’s current views about future events and financial performance. These forward-looking statements are subject to important risks
Slide 3: Table of Contents
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Table of Contents ➢ SunOpta Overview ➢ Investment Overview ➢ Financial Performance Update ➢ Appendix © SunOpta Inc. 2024 3
Slide 4: SunOpta Overview
SunOpta Overview © SunOpta Inc. 2022 © SunOpta Inc. 2024 4
Slide 5: SunOpta at a Glance
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 SunOpta at a Glance Headquarters Eden Prairie, MN Innovative and ~1,200 Total Employees sustainable manufacturer Inclusive fueling the future Innovative of food Entrepreneurial $630M $79M 7 FY23 Revenue FY23 Adj. EBITDA Manufa
Slide 6: Strong, focused business serving growing categories
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Strong, focused business serving growing categories… 1 GEOGRAPHY 2 PLATFORMS NORTH AMERICA Beverages Fruit & Broth Snacks Plant-Based Nutritional 5 CATEGORIES Better For You Beverages* Beverages Tea Broth Snacks ~85% of Revenu
Slide 7: Supported by coast-to-coast, full-service capability
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 …supported by coast-to-coast, full-service capability… SCALED MANUFACTURING VALUE-ADDED SERVICES SUPPLY CHAIN R&D QUALITY Proven R&D and Rigorous testing Turnkey, end-to- product end supply chain and quality development standa
Slide 8: Powered by our winning team and culture
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 …powered by our winning team and culture… OUR CULTURAL VALUES CUSTOMER SPEED OWNERSHIP CENTRIC PROBLEM PASSION DEDICATION SOLVER © SunOpta Inc. 2024 8
Slide 9: Anchored by our commitment to sustainability
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 …and anchored by our commitment to sustainability Operations Supply Chain Packaging • Six facilities achieved Zero • Committed to responsible & • Aseptic packaging extends Waste to landfill in 2023 transparent sourcing shelf l
Slide 10: Investment Overview
Investment Overview © SunOpta Inc. 2022 © SunOpta Inc. 2024 10
Slide 11: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer pr
Slide 12: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer pr
Slide 13: SunOpta is a growth business
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 SunOpta is a growth business REVENUE ADJUSTED EBITDA in $ millions in $ millions +13% CAGR +26% $630 CAGR $79 $591 $496 $64 $50 FY21A FY22A FY23A FY21A FY22A FY23A Adjusted 10.0% +250 12.5% EBITDA Margin BPS © SunOpta Inc. 202
Slide 14: Serving large and growing markets
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Serving large and growing markets PLANT-BASED TEA NUTRITIONAL BROTH BFY SNACKS BEVERAGES BEVERAGES $2B Core Addressable Market(1) $5B $6B $6B $3B YoY ~1% >5% >20% >5% ~5% Growth YoY Growth(3) YoY Growth YoY Growth YoY Growth Y
Slide 15: SunOpta is a leader in specialized, supply constrained markets
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 SunOpta is a leader in specialized, supply constrained markets LEADING SHELF STABLE MARKET SHARE LEADING SHELF STABLE SUPPLY POSITIONS SHELF STABLE PLANT-BASED MILKS PRIMARY SUPPLIER PRIMARY SUPPLIER Others OF PLANT-BASED OF F
Slide 16: The consumer fundamentals supporting plant-based milks are durable and enduring
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 The consumer fundamentals supporting plant-based milks are durable and enduring creating 40 years of category growth Very broadly penetrated category Broad set of usage occasions Plant-based milk household penetration1 How Peo
Slide 17: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer pr
Slide 18: Competitively advantaged, coast-to-coast beverage & broth network
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Competitively advantaged, coast-to-coast beverage & broth network FOOTPRINT CAPABILITIES Operate complex manufacturing at high Alexandria, MN (2 Facilities) volumes across varied pack sizes at multiple locations Allentown, PA
Slide 19: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer pr
Slide 20: Go-to-market, channel and packaging versatility enables a diversified and resilient commercial model
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Go-to-market, channel and packaging versatility enables a diversified and resilient commercial model Diversified paths to market Multi-channel distribution Versatile packaging formats Single Multi Industrial Club and Supermark
Slide 21: Value-added services drive sticky, collaborative customer relationships
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Value-added services drive ‘sticky’, collaborative customer relationships SUPPLY CHAIN R&D QUALITY Turnkey, end-to-end supply Proven R&D partner and All raw materials, in-process chain management via deep innovator in new prod
Slide 22: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer pr
Slide 23: Partner of choice for leading consumer product companies and retailers
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Partner of choice for leading consumer product companies and retailers Representative Retail and Foodservice Customer Base AVERAGE TENURE (ALL CUSTOMERS) >10 AVERAGE TENURE (TOP 3 CUSTOMERS*) >15 YEARS YEARS *Based on full-yea
Slide 24: State of the art, full-service innovation fuels customer-led innovation
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 State of the art, full-service innovation fuels customer-led innovation R&D LAB PILOT PLANT Holistic, fully Facilitates rapid integrated product product prototyping development from to accelerate formulation to customer innova
Slide 25: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer pr
Slide 26: Proven strategy to deliver and sustain profitable growth
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Proven strategy to deliver and sustain profitable growth Representative Retail and Foodservice Customer Base CUSTOMER-CENTERED • Focus on execution OPERATIONS • Maintain best-in-class fill rates • Support customer-led product
Slide 27: Focused execution driving sustained growth and deleveraging
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Focused execution driving sustained growth and deleveraging in $ millions Revenue Trended Adjusted EBITDA Leverage +15% 5x +14% $90 $720 4x -0.4x+ $79 $630 3.7x $591 3.4x Leverage $64 3x $497 3.0x <3.0x $50 2x 1x 0x 2021 2022
Slide 28: Organic investments accelerating profitable growth and cash flow
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Organic investments accelerating profitable growth and cash flow Aggressive investment to Driving a ~60% increase in Adj. Generating higher cash flow from add capacity & capability EBITDA over the next ~24 months operations re
Slide 29: Compelling growth algorithm underwrites sustained value creation
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Compelling growth algorithm underwrites sustained value creation METRIC AMBITION ASSUMPTIONS Annual Revenue Sustained growth supported by new and future capacity 10%+ and capabilities Growth Gross Continued margin improvement
Slide 30: Financial Performance Update
Financial Performance Update © SunOpta Inc. 2022 © SunOpta Inc. 2024 30
Slide 31: Q2 2024 Key Takeaways
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Q2 2024 Key Takeaways Strong second quarter • Revenue of +21% driven by broad based volume growth • Top three customers all grew double digits • The addressable market in which we participate is large and growing • Shelf-sta
Slide 32: Q2 2024 Financial Update
SunOpta Inc. Investor Presentation Fueling the Future of Food August 2024 Q2 2024 Financial Update in $ millions Revenue +21% • Revenue increased 21% to $171 million, driven by $171 strong volume growth $141 • Operating income more than doubling to $2.6 Q2-23 Q2-24 million compared to Q2 2023 Adjust
Slide 33: Appendix
Appendix © SunOpta Inc. 2022 © SunOpta Inc. 2024 33
Slide 34: Income Statement
Key Financial Metrics Income Statement Continuing Operations ($ millions, except per share amounts) Q2 2024 YTD Q2 2023 YTD Revenues (1) $353.8 $296.1 Gross profit (2) $53.6 $42.7 As % of Revenue 15.1% 14.4% Operating income (3) $12.8 $1.7 As % of Revenue 3.6% 0.6% Adjusted earnings from continuing
Slide 35: Balance Sheet & Debt Capital
Key Financial Metrics Balance Sheet & Debt Capital As at ($ millions) June 29, 2024 $98.8 Working capital (1) Total assets $704.7 Credit facilities $232.6 On December 8, 2023, the Company entered into a five-year Credit Agreement (the “Credit Agreement”) providing for (i) a $180.0 million term loan
Slide 36: Reconciliation of U.S. GAAP Results to Adjusted Earnings and Adjusted EPS
Reconciliation of U.S. GAAP Results to Adjusted Earnings and Adjusted EPS The following table presents a reconciliation of adjusted earnings from continuing operations from earnings (loss) from continuing operations which we consider to be the most directly comparable U.S. GAAP financial measure. (F
Slide 37: Reconciliation of U.S. GAAP Results to Adjusted EBITDA
Reconciliation of U.S. GAAP Results to Adjusted EBITDA The following table presents a reconciliation of adjusted EBITDA from continuing operations from earnings (loss) from continuing operations, which we consider to be the most directly comparable U.S. GAAP financial measure. (Figures in $ thousand
Slide 38: Adjusted EBITDA from Continuing Operations
Adjusted EBITDA from Continuing Operations The following table presents quarterly adjusted EBITDA trend from continuing operations. (Figures in $ thousands) Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Year ended Year ended Quarter ended Quarter ended Quarter ended Quarter ended Year ended Quarte
Slide 39: 7078 Shady Oak Road Eden Prairie, Minnesota 55344 www.sunopta.com
7078 Shady Oak Road Eden Prairie, Minnesota 55344 www.sunopta.com © SunOpta Inc. 2024 39