Slide 1: Second Quarter Review 2015
SECOND QUARTER REVIEW 2015 MICHAEL McCAIN President and Chief Executive Officer DEBBIE SIMPSON Chief Financial Officer July 31, 2015
Slide 2: Advancing towards strategic goals
Advancing towards strategic goals Increased EBITDA margin to 6.0%, with a clear path forward Grew operating earnings by $34M; increased EPS to $0.13 Closed last legacy plant, ending duplicative network Strong commercial momentum and volume growth Improved operating performance in new network Q2 REVI
Slide 3: Excellent progression of EBITDA margin
Excellent progression of EBITDA margin 7.0% QUARTERLY CONSOLIDATED ADJUSTED EBITDA MARGIN 6.0% 4.7% 0.5% 0.7% 0.5% 1.5% 0.0% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 -1.4% -1.3% -1.1% Q2 2015 Q2 2014 SALES $820.8M $831.8M -4.3% ADJUSTED OPERATING $21.8M ($12.1M
Slide 4: Material improvement in adjusted operating earnings
Material improvement in adjusted operating earnings Figures in millions. Q2 REVIEW 2015 4
Slide 5: Commercial momentum continues to strengthen
Commercial momentum continues to strengthen Strong prepared meats volume recovery Gains in retail branded volume Improved product sales mix Strong branded poultry performance Expanding innovation pipeline Q2 REVIEW 2015 5
Slide 6: Clear path to strategic margin targets, 10% and beyond
Clear path to strategic margin targets, 10% and beyond Short Term – Optimizing New Plants 2-5 Years – Building On Foundation Dialing-in equipment performance Increasing asset utilization and training Achieving OEE targets, including New business development schedule optimization opportunities Margin
Slide 7: Building a growth framework
Building a growth framework Engaged in broad opportunity identification Building the analytical framework to assess opportunities Concentrating on growth in ways which offer: Brand relevance Higher growth segments Margin accretion Total shareholder return Leveraging the strengths in our sustainabili
Slide 8: Allocating capital from a strong balance sheet
Allocating capital from a strong balance sheet Free cash flow of $30M in the quarter Cash on hand of $410M at quarter end Invested $42M to buyback 1.8M shares of MFI stock Capital expenditures of $44M in the quarter Q2 REVIEW 2015 8
Slide 9: Summary
Summary Material earnings growth, continued EBITDA margin expansion Strong commercial performance Responsible capital allocation Clear path to achieving strategic financial target Q2 REVIEW 2015 9
Slide 10: Non-IFRS Measures
Non-IFRS Measures Adjusted Operating Earnings: Adjusted Operating Earnings, a non-IFRS measure, is used by Management to evaluate financial operating results. It is defined as earnings before income taxes from continuing operations adjusted for items that are not considered representative of ongoing