Sunopta — Investor Day (April 2023)

52 slides from Sunopta's investor day presentation, Apr 11, 2023

Slide 1: Analyst & Investor Meeting
Analyst & Investor Meeting 10:00AM CDT April 11, 2023 Midlothian, Texas 2023 Analyst & Investor Meeting STKL Company Presentation 1 © SunOpta Inc. 2023
Slide 2: Forward Looking Statements
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Forward Looking Statements This presentation may include forward-looking statements and therefore is subject to important risks and uncertainties. Actual results could differ materially from the conclusions, forecasts and
Slide 3: Agenda
AGENDA 1 STRATEGY UPDATE 2 FINANCIAL ALGORITHM UPDATE 3 TEXAS CONSTRUCTION AND FACILITY OVERVIEW 4 COMPLEXITY OF ASEPTIC MANUFACTURING 5 CONCLUDING REMARKS 6 Q&A 3 © SunOpta Inc. 2023
Slide 4: Participating Team
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Participating Team TODAY’S PRESENTERS IN ATTENDANCE ADDITIONAL TEAM MEMBERS JOE ENNEN MIKE BUICK BOB TECLAW CEO GM of Plant-Based Business Director Engineering Strategy Update GREG GABA CHAD CAMPBELL VP Corporate Finance
Slide 5: Strategy Update
SunOpta is a manufacturer of sustainable and nutritious food and beverages Strategy Update Joe Ennen, CEO 5 © SunOpta Inc. 2023
Slide 6: What we want you to take away
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 What we want you to take away • We are advancing the strategy outlined at our investor day in June 2022 and are on track to deliver our financial targets • Our Midlothian, Texas facility strengthens an already advantaged
Slide 7: We have a clear destination
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 We have a clear destination VISION Fuel the Future of Food …for healthier people and a healthier planet MISSION Build a multi-billion dollar, value-added, sustainable, plant-based business that creates significant value f
Slide 8: Anchored by five strategic imperatives
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Anchored by five strategic imperatives Transform 01 the portfolio through structural 1. changes and focused prioritization of resources Fortify our competitive advantages in our 2. margin accretive categories Leverage our
Slide 9: The execution of our strategy has transformed our profitability
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 The execution of our strategy has transformed our profitability… Diversified Value-added, agribusiness high-growth focus Trended Adjusted EBITDA $150M ~2x $120M $100M ~4x $84M $59M $61M $20M 2019 2020 2021 2022 2023F 2024
Slide 10: And positioned the business for sustained growth
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 …And positioned the business for sustained growth $2B PORTFOLIO ROLE GROWTH PROFILE NUTRITION BEVERAGES Strategic – defined, high Accelerated Growth growth pockets with strong ~1.5x overall company FRUIT SNACKS ability to
Slide 11: Our strategic imperatives
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our strategic imperatives Transform the portfolio through structural 011. changes and focused prioritization of resources Fortify our competitive advantages in our 2. margin accretive categories Leverage our core capabili
Slide 12: We continue to evolve the portfolio to focus on value-add segments
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 We continue to evolve the portfolio to focus on value-add segments Past(1) Present Future 30% 70% 80% 70% 30% 20% Commodity Value-Add © SunOpta Inc. 2023 (1) FY2019 12
Slide 13: We are targeting end markets that share a common set of characteristics
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 We are targeting end markets that share a common set of characteristics Attractive Industry • ‘Picks & shovels’ plays in capacity constrained industries 1 & End Markets • Serving resilient, high growth, supply constrained
Slide 14: Our strategic imperatives
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our strategic imperatives Transform the portfolio through structural 011. changes and focused prioritization of resources Fortify our competitive advantages in our 2. margin accretive categories Leverage our core capabili
Slide 15: SunOpta's business is powered by its competitively advantaged capabilities
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 SunOpta’s business is powered by its competitively advantaged capabilities World class operational and technical expertise Complex manufacturing at scale SunOpta’s Disciplined capital allocation and Competitive project ma
Slide 16: Supported by best-in-class operating performance and execution
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Supported by best-in-class operating performance and execution Operational Scaled Aggressive Integrated Service Expertise Networks Investment Solutions Excellence Highest National, Added capacity Tailored >99% LTM perform
Slide 17: Our new facility fortifies SunOpta's competitively advantaged capabilities
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our new facility fortifies SunOpta’s competitively advantaged capabilities enhancing the value we deliver to our customers Placeholder SUNOPTA COMPETITIVE VALUE DERIVED BY OUR TEXAS ADVANTAGES CUSTOMERS IMPACT World class
Slide 18: Our strategic imperatives
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our strategic imperatives Transform the portfolio through structural 011. changes and focused prioritization of resources Fortify our competitive advantages in our 2. margin accretive categories Leverage our core capabili
Slide 19: Our core growth platforms serve a ~$15B TAM
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our core growth platforms and supporting capabilities serve a ~$15B TAM (vs. $3B in 2019) and an extended TAM of $100B Core 3-year Total 3-year How we Participate TAM CAGR TAM CAGR Packaged Beverage Nutritional Beverages
Slide 20: We are prioritizing three growth platforms
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 We are prioritizing three growth platforms that present outsized growth potential for SunOpta Scaling Accelerating Expanding in Plant Based Better-For-You Snacking Nutritional Beverages ✓ Large & growing TAM ✓ Large & gro
Slide 21: The cornerstone of our business is plant-based milks and creamers
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 The cornerstone of our business is plant-based milks and creamers, household staples that are outperforming the category OUTPERFORMING OTHER MILKS & CREAMERS ARE HOUSEHOLD STAPLES PLANT-BASED SEGMENTS 50% 74% 40% 40% Eggs
Slide 22: SunOpta is the leading supplier in shelf stable and base extraction segments
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 SunOpta is the leading supplier in the shelf stable and base extraction segments that require more specialized manufacturing Brand Brand in in MULO Natural Oat Milk Almond Milk Soy Milk Brand Brand Brand Rice Milk Aseptic
Slide 23: Roadmap to a $1B+ Plant-Based business
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Roadmap to a $1B+ Plant-Based business ▪ Continued category momentum Category ▪ Advantaged mix vs. market (oat) Growth ▪ Scaling food service / barista ▪ Food service Market Share ▪ New capacity (Texas) Growth ▪ Branded g
Slide 24: Our Better-For-You Snacking business caters to a specialized, high growth segment
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our Better-For-You Snacking business caters to a specialized, high growth segment of the fruit snack market OMAK, WA PLATFORM OVERVIEW ST. DAVIDS, ON • Clean-label, organic layered fruit bars BI-COASTAL PLANT NETWORK • $9
Slide 25: We are targeting the specialized, high growth better-for-you segment
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 We are targeting the specialized, high growth better-for-you segment with a distinctive value proposition FRUIT SNACK CATEGORY (RETAIL) END-TO-END SOLUTION MANAGEMENT Sourcing Manufacturing FRUIT SNACKS Global organic Run
Slide 26: Roadmap to a $250M+ Better-For-You Snacking business
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Roadmap to a $250M+ Better-For-You Snacking business ▪ Significant unfulfilled demand from Category existing customers Momentum ▪ Advantaged mix vs. market (BFY) ▪ New capacity (Omak) Market Share ▪ Increase supply share
Slide 27: Our new 330ml capability unlocks access to the RTD segment
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our new 330ml capability unlocks access to the RTD segment, a ~$5B (retail) market with a long runway for growth RETAIL RTD MARKET BY CHANNEL(1) CATEGORY GROWTH DRIVERS(2) HOUSEHOLD PENETRATION (2022) $5B >2X 54% 10% 25%
Slide 28: Opportunity for plant-based protein growth in nutritional beverages
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Significant opportunity for plant-based protein growth in underpenetrated nutritional beverages Plant-Based Protein is underpenetrated (2%)(1)… …And Growing at a Significantly Faster Rate YoY Growth (Tracked Channels)(2)
Slide 29: Roadmap to a $250M+ Nutritional Beverages business
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Roadmap to a $250M+ Nutritional Beverages business ▪ Capacity constrained market Demand & Supply ▪ Rising demand for dependable co- Imbalance manufacturing ▪ Market underpenetrated relative to Accelerate other categories
Slide 30: Our strategic imperatives
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our strategic imperatives Transform the portfolio through structural 011. changes and focused prioritization of resources Leverage our core capabilities to expand the 2. TAM of the business via innovation Fortify our comp
Slide 31: We made significant progress against our ESG commitments in 2022
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 We made significant progress against our ESG commitments in 2022 and have focused priorities for 2023 Operations Supply Chain Product / Packaging • Pursuing Zero Waste • Transparency • Product Integrity • Focus on Energy
Slide 32: Our strategic imperatives
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our strategic imperatives Edit titlethe Transform here portfolio through structural 011. changes and focused prioritization of resources Edit text here Edit titleourhere Leverage core capabilities to expand the 2. TAM Edi
Slide 33: Our CULTURE is a differentiator and FUNDAMENTAL to our success
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our CULTURE is a differentiator and FUNDAMENTAL to our success SunOpta Organizational Health Survey 92% Employee Participation Rate in Most Recent Survey Overall Score Purpose Strategy +13% 4.3 I have a clear +22% 4.2 I h
Slide 34: Financial Algorithm Update
SunOpta is a manufacturer of sustainable and nutritious food and beverages Financial Algorithm Update Scott Huckins, CFO and GM Fruit-Based Business Unit 34 © SunOpta Inc. 2023
Slide 35: Framing the FY2023 through FY2025 outlook
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Framing the FY2023 through FY2025 outlook ▪ Roll-forward of 2023 macro environment, including: – Constant commodity costs No reforecast No reforecast – Interest rates of the global of changing – Foreign exchange rates com
Slide 36: Financial outlook through FY2025
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Financial outlook through FY2025 FY2022 FY2023 FY2024 FY2025 Actuals Guidance (1) Outlook(2) Outlook(2) REVENUE $935M $1B - $1.05B $1.1B $1.25B ADJUSTED $84M $100M $120M $150M EBITDA OPERATING ($40M) $30M $60M $100M FREE
Slide 37: Capital allocation priorities and parameters
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Capital allocation priorities and parameters Healthy Balance Fund Organic Return of Strengthen Sheet Growth Capital Portfolio • Target leverage • Fund projects • Consider if and • Strengthen ratio of 2x to 4x that deliver
Slide 38: Investments and strategic pursuits position SunOpta for growth beyond FY25
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 As we outlined on our Q4 2022 earnings call, our investments and strategic pursuits position SunOpta for sustained growth beyond FY25 METRIC AMBITION ASSUMPTIONS Revenue Sustained market growth in core platforms; 10%+ Gro
Slide 39: Current portfolio has potential to be a $2B+ business
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 With continued execution and disciplined capital allocation, the current portfolio has potential to be a $2B+ business $1,150M+ $350M+ $250M+ OPERATING FREE CASH FLOW(2) $250M+ ADJUSTED EARNINGS Management PER SHARE team
Slide 40: Texas Construction and Facility Overview
SunOpta is a manufacturer of sustainable and nutritious food and beverages Texas Construction and Facility Overview Chris Whitehair, SVP Supply Chain 40 © SunOpta Inc. 2023
Slide 41: Fueling the Future of Food
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 © SunOpta Inc. 2023 41
Slide 42: The Midlothian facility was the largest investment in the company's history
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 The Midlothian facility was the largest investment and construction project in the company’s history 21,000 Cubic Yards of Concrete To put that in context, the empire state building required 62,000 cubic yards of concrete
Slide 43: The Midlothian facility was designed with sustainability objectives in mind
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 The Midlothian facility was designed with our sustainability objectives in mind MIDLOTHIAN, TX FACILITY WATER TREATMENT FACILITY • Strategic location in Texas creates a national footprint that will save 15 million freight
Slide 44: We laid the groundwork for future expansion
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 We also laid the groundwork for future expansion both within and beyond the current footprint Diagram for illustrative purposes only Room for Expansion Line 1 • Phase 1 (Complete) 285,000 finished square feet with 3 manuf
Slide 45: First line started commercial production in Q1-2023
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our first line started commercial production in Q1-2023 and the other two lines are on track to be production ready by mid-year ✓ First Line in Commercial Production Q1-2023 ✓ Customer & Regulatory Audits Passed ✓ 330ml P
Slide 46: Complexity of Aseptic Manufacturing
Complexity of Aseptic Manufacturing Bryan Clark, SVP R&D and QA 46 © SunOpta Inc. 2023
Slide 47: Keeping microorganisms out of foods and beverages is critical
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Keeping microorganisms out of foods and beverages is critical to maintaining shelf life and quality Ways to Preserve Food Safety Simple Complex Thermal Processing Freezing High Acidity Refrigeration Retorting Pasteurizati
Slide 48: Aseptic is more complex than pasteurization
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Aseptic is more complex than pasteurization, but has significant benefits in terms of product longevity and sustainability ASEPTIC PROCESS OVERVIEW PASTEURIZATION PROCESS OVERVIEW Processing Filling & Packaging Processing
Slide 49: Culture, people and technical expertise underpin our aseptic leadership
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 Our unique combination of culture, people and technical expertise underpins SunOpta’s position as an aseptic industry leader THE CHALLENGE OF ASEPTIC MANUFACTURING SUNOPTAS RECIPE FOR SUCCESS Challenge: Direct-coupled • L
Slide 51: What we want you to take away
Fueling the Future of Food Analyst & Investor Meeting Presentation, April 2023 What we want you to take away • We are advancing the strategy outlined at our investor day in June 2022 and are on track to deliver our financial targets • Our Midlothian, Texas facility strengthens an already advantaged

SunOpta — Investor Day (April 2023) on 6ix

Sunopta — Investor Day (April 2023)

Slide 1: Analyst & Investor Meeting

Slide 2: Forward Looking Statements

Slide 3: Agenda

Slide 4: Participating Team

Slide 5: Strategy Update

Slide 6: What we want you to take away

Slide 7: We have a clear destination

Slide 8: Anchored by five strategic imperatives

Slide 9: The execution of our strategy has transformed our profitability

Slide 10: And positioned the business for sustained growth

Slide 11: Our strategic imperatives

Slide 12: We continue to evolve the portfolio to focus on value-add segments

Slide 13: We are targeting end markets that share a common set of characteristics

Slide 14: Our strategic imperatives

Slide 15: SunOpta's business is powered by its competitively advantaged capabilities

Slide 16: Supported by best-in-class operating performance and execution

Slide 17: Our new facility fortifies SunOpta's competitively advantaged capabilities

Slide 18: Our strategic imperatives

Slide 19: Our core growth platforms serve a ~$15B TAM

Slide 20: We are prioritizing three growth platforms

Slide 21: The cornerstone of our business is plant-based milks and creamers

Slide 22: SunOpta is the leading supplier in shelf stable and base extraction segments

Slide 23: Roadmap to a $1B+ Plant-Based business

Slide 24: Our Better-For-You Snacking business caters to a specialized, high growth segment

Slide 25: We are targeting the specialized, high growth better-for-you segment

Slide 26: Roadmap to a $250M+ Better-For-You Snacking business

Slide 27: Our new 330ml capability unlocks access to the RTD segment

Slide 28: Opportunity for plant-based protein growth in nutritional beverages

Slide 29: Roadmap to a $250M+ Nutritional Beverages business

Slide 30: Our strategic imperatives

Slide 31: We made significant progress against our ESG commitments in 2022

Slide 32: Our strategic imperatives

Slide 33: Our CULTURE is a differentiator and FUNDAMENTAL to our success

Slide 34: Financial Algorithm Update

Slide 35: Framing the FY2023 through FY2025 outlook

Slide 36: Financial outlook through FY2025

Slide 37: Capital allocation priorities and parameters

Slide 38: Investments and strategic pursuits position SunOpta for growth beyond FY25

Slide 39: Current portfolio has potential to be a $2B+ business

Slide 40: Texas Construction and Facility Overview

Slide 41: Fueling the Future of Food

Slide 42: The Midlothian facility was the largest investment in the company's history

Slide 43: The Midlothian facility was designed with sustainability objectives in mind

Slide 44: We laid the groundwork for future expansion

Slide 45: First line started commercial production in Q1-2023

Slide 46: Complexity of Aseptic Manufacturing

Slide 47: Keeping microorganisms out of foods and beverages is critical

Slide 48: Aseptic is more complex than pasteurization

Slide 49: Culture, people and technical expertise underpin our aseptic leadership

Slide 50: Concluding Remarks

Slide 51: What we want you to take away

Slide 52: Q&A