Slide 1: Third Quarter 2017 Review: Driving sustainable growth and profitability
Third Quarter 2017 Review Driving sustainable growth and profitability October 26, 2017 | Q3 2017 Maple Leaf Foods Review
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: Year-over-year sales and earnings growth, benefiting from our balanced portfolio
Year-over-year sales and earnings growth, benefiting from our balanced portfolio We delivered top-line sales and earnings growth in the third quarter Sales increase of 6.6% with across our portfolio Adjusted EBITDA margin of 10.6%, sustaining our year-over-year improvement Highly volatile pork marke
Slide 4: Q3 Highlights: increase across all key financial metrics
Q3 Highlights: increase across all key financial metrics Sustained sales growth across our portfolio… …led to another quarter of 10%+ margins (Sales, In Millions) Adjusted EBITDA Margin 10.6% $908.4 10.3% $852.1 Q3 2016 Q3 2017 Q3 2016 Q3 2017 …driving continued earnings growth… …and a strong cash p
Slide 5: Robust top-line driving results
Robust top-line driving results Sales and volume growth in prepared meat Outstanding performance in value-added fresh offerings Rapid sales growth in alternative proteins Excellent progress in penetrating the US market Continued growth in commercializing our sustainability platform Ready to launch c
Slide 6: Continued commercial success from a balanced portfolio
Continued commercial success from a balanced portfolio Prepared meat portfolio experienced solid sales growth while margins were compressed from increase in raw material costs ~60% year-over-year spike in pork bellies, with high volatility Targeted pricing action taken late in Q3 to offset higher in
Slide 7: Differentiating Maple Leaf through sustainability leadership
Differentiating Maple Leaf through sustainability leadership Consumers and society are looking for more from their food and how it is made Significant advances in making great food with simpler, natural ingredients Leader in animals raised without antibiotics BETTER BETTER Comprehensive animal care
Slide 8: Greenfield is our leading sustainability brand
Greenfield is our leading sustainability brand Double-digit sales growth in both Canada and the U.S. Expanding retail listing coverage across North America Greenfield offers a broad range of nutrition, environmental and animal care benefits Building competitive advantage through breadth and depth of
Slide 9: Maple Leaf Prime Raised Without Antibiotics strengthens our brand leadership in high growth poultry market
Maple Leaf Prime Raised Without Antibiotics strengthens our brand leadership in high growth poultry market Maple Leaf Prime is the #1 national brand in chicken Maple Leaf Prime Raised Without Antibiotics launched with multiple retail partners More people are choosing chicken than other meat products
Slide 10: Summary
Summary We delivered a solid quarter with continued sales and earnings growth. We are focused on executing our longer-term strategies to drive future value creation. Increases across all key financial metrics Balanced portfolio offset market volatility Well-positioned as a first mover in sustainable
Slide 11: Reconciliation of non-IFRS financial measures
Reconciliation of non-IFRS financial measures Adjusted Operating Earnings Q3 2017 Q3 2016 2017 2016 ($ millions) Net earnings 37.6 31.8 105.0 105.5 Income taxes 11.9 11.8 38.0 39.2 (i) Earnings before income taxes 49.5 43.6 143.1 144.7 Interest expense and other financing costs 1.3 2.8 3.9 5.1 Other
Slide 12: Reconciliation of non-IFRS financial measures continued
Reconciliation of non-IFRS financial measures continued Adjusted EBITDA Q3 2017 Q3 2016 2017 2016 ($ millions) Net earnings 37.6 31.8 105.0 105.5 Income taxes 11.9 11.8 38.0 39.2 (i) Earnings before income taxes 49.5 43.6 143.1 144.7 Interest expense and other financing costs 1.3 2.8 3.9 5.1 Items i
Slide 13: Reconciliation of non-IFRS financial measures continued
Reconciliation of non-IFRS financial measures continued Adjusted EPS Q3 2017 Q3 2016 2017 2016 ($ per share) Basic earnings per share 0.29 0.24 0.81 0.78 Restructuring and other related costs 0.03 - 0.10 0.01 Items included in other expense (income) not considered representative of (0.06) (0.03) (0.
Slide 14: Third Quarter 2017 Review: Driving sustainable growth and profitability
Third Quarter 2017 Review Driving sustainable growth and profitability October 26, 2017 | Q3 2017 Maple Leaf Foods Review