Tim Hortons — Investor Day (May 2022)
78 slides from Tim Hortons's investor day presentation, May 3, 2022
Slide 1: Tim Hortons Investor Day
Tim Hortons Investor Day Tovonts; Ontario - May 3, 2022 lin
Slide 2: Stephen Lichiner
Stephen Lichiner Head of IR and FP&A y
Slide 3: Safe Harbour Statement
Safe Harbour Statement This presentation contains certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events and operating performance and speak only as of the date hereof. These forward- looking statements include statemen
Slide 4: Investor Day Q&A
Investor Day Q&A For those participating through our live webcast, please submit questions via the submit question box on the webcast. Please include your name and firm.
Slide 5: José Cil
José Cil CEO, RBI y
Slide 6: Being a brand-led company
oved Being a brand- Focusing on Driving digital Modelling industry Living a culture that led company exceptional innovation and excellence as attracts and retains the g I a est experience leadership franchisor best talent in the world
Slide 7: Tim Hortons Footprint In 2015
Tim Hortons Footprint In 2015
Slide 8: Tim Hortons International Expansion
Tim Hortons International Expansion © Newmarket coming 2022 Source: Company Internal Data
Slide 9: An Iconic Brand
Slide 10: Axel Schwan Hope Bagozzi Matt Moore Markus Sturm
Axel Schwan Hope Bagozzi Matt Moore Markus Sturm President, Tim Hortons Chief Marketing Officer Chief Operating Officer SVP, Digital, Loyalty & Consumer Goods
Slide 11: Axel Schwan
Axel Schwan President, Tim Hortons yN Tins
Slide 12: Brand love
brand love Cn
Slide 13: Key Findings From 2019 Consumer Research
Ker rindings From 2019 Consumer Research We surveyed guests that are visiting us less frequently They told us there are three key reasons why: 7) Coffee 2) Food © Agin Quality Quality Bran Perception Perception Perception Source: Company Internal Data
Slide 14: Phase I: Strengthen the Foundation
Phase I: Strengthen the Foundation * Improve brewed coffee * Improve breakfast * Improve baked goods ¢ Build leading loyalty program * Remove artificial ingredients
Slide 15: Tallis Voakes, Victoria Stewart, Kevin West
I ( Tallis Voakes Victoria Stewart Kevin West Culinary Innovation Beverage Innovation Coffee Operations
Slide 16: Coffee Brewing Modernization
Slide 17: Commitment to Freshness and Ethical Sourcing
Commitment to Freshness and Ethical Sourcing 100% 20
Slide 18: Coffee market share 2019–2021
2019 2020 2021 Source: Market share data from NPD Crest
Slide 19: Breakfast market share 2019–2021
*2PP 9 2019 2020 2021 Source: Market share datafrom NPD Crest
Slide 20: Baked Goods Market Share
Ft a $, aes > ae . Baked Goods j ¢ Market Share s Ge Oo | 310%
Slide 21: Loyalty Users, App Users, Digital Sales
a food & . . beve rage’ Active Active Loyalty Users? App Users? % Digital Sales* Rewards & Ofters 1. Source: data.ci 2. Source: Company Internal Data; “Active” based on LTM activity as of March 31, 2022 3. Source: data.ci, based on monthly active for three months ended March 31, 2022 4. Source: =~ D
Slide 22: Drive-Thru transactions 68% of total transactions in 2021
Drive-Thru transactions 68% of total transactions in 2021 +17pp _— IJ 2019 2021 Source: Company Internal Data
Slide 23: Tim Hortons Foundation Camps
Slide 24: Working Together With Our Owners
Working Together With Our Owners wight ~3 restaurants / owner on average
Slide 25: Restaurant brand in Canada
restaurant brand in Canada
Slide 26: 100% of Coffee Proceeds Support Foundation Camps
100% OF COFFEE PROCEEDS SUPPORT Tin Hortons. FOUNDATION CAMPS for our Tim Hortons Foundation since 1987 smile ca@ékie for community charities through the sale of Smile Cookie since 2014
Slide 27: Phase I: Strengthened Foundation
Phase I: Strengthened Foundation * Grew brewed coffee share ¢ Expanded breakfast share * Improved baked goods quality or hea * Built leading loyalty program ' 7 ; * Removed artificial ingredients
Slide 28: Phase II
Phase Il: * Craveable food & beverages * Best-in-class digital engagement * Enhance guest experience * Support communities
Slide 29: Mid-to-High Single Digit
Mid-to-High Single Digit
Slide 30: Hope Bagozzi
ft ope Bagozz Chief Marketing Officer yN Tins
Slide 31: Bolder & Richer
BOLDER &RICHERA, | Passionfruit Tea Lemonade accomplished, e Always 20 minutes fresh. re) feyr |p) Iits a brew-tiful thing.
Slide 32: Marketing Growth Opportunities
Marketing Growth Opportunities 7) Beverage Extensions Driving Growth Q Significant Opportunity in PM-Food 3) Continue Momentum in Brand Modernization 4p) Community Engagement with Tims For Good
Slide 33: Tims Brand Promise
ise rtons Brand Prom
Slide 34: Slide 34
Slide 35: 26% Sales uplift in espresso based beverages
26% Sales uplift in espresso based beverages CS$650M Espresso Based Beverages Market Size! t 6% CAGR 1. Market Size Calculation assumes average check of C$3 per serving multiplied by NPD Crest Servings Source: NPD Crest, CAGR calculated from 2017 to 2021 & Tims Market Share is FY 2021, Internal Data
Slide 36: Expanded Cold Brew
Expanded Cold Brew market in Canada Cold beverage market ~7X is now larger than hot Ortry Strawberry va, 4 Passionfruit Sireln ach C$4.5B > sin. | Tea Lemonade Cold Beverages Market Size! t 3% CAGR 1, Market Size calculated based on Tim Hortons Internal Sales Data divided by Tim Hortons Market Share
Slide 37: PM Opportunities
PM Opportunities
Slide 38: Sizeable opportunity to capture our fair share of the market
Sizeable opportunity to capture our fair share of the market C$8.5B PM Foods Market Size! t 5% CAGR 1, Market Size Calculation based on NPD Crest Source: NPD Crest, CAGR calculated from 2017 to 2021 & Tims Market Share is FY 2021, PM Foods includes all foods served at Lunch, Afternoon Snack and Dinn
Slide 39: NEW Loaded Platform
NEW Loaded Platform Loaded Wraps just launched! Loaded Bowls launch this summer!
Slide 40: Packed with seasoned grains and fresh vegetables
Packed with seasoned grains and fresh vegetables Cian Line Chichen Bowl l. BS Rae
Slide 41: Committed to...
Committed to of artificial colours, flavours and preservatives single use plastics in Canada since 2019 a ) our Foundation and for ey local charities Since 2019, Tim Hortons reduced over 1 bilion single use plastics in Canada, for example, we introduced wooden str sticks in place of plastic stir sti
Slide 42: Key Brand Health Metrics
# Tin Key Brand Health Metrics Fl FavouuleQsR i: Most Tested Brand VY) Brand | fovethe Most
Slide 43: Continue to Drive Core, Beverage Platform, Extend PM Foods, Support Communities
Continue to Beverage Extend Position Support Drive Core Platform Extensions in PM Foods Communities All with an eye towards brand modernization
Slide 44: Matt Moore
Matt Moore Chief Operating Officer Vi
Slide 45: Operations Growth Opportunities
Operations Growth Opportunities Delivering Exceptional Guest Experiences Driving Growth Through Format Optimization @ Engaging Restaurant Owners & Team Members
Slide 46: Notable Improvement In Guest Satisfaction
Notable Improvement In Guest Satisfaction wight @ Speed of Service (2) Order Accuracy (3) Friendliness
Slide 47: Slide 47
Slide 48: Fresh Brewer, Egg Cooker, Sugar & Dairy Dispensers
Fresh Brewer Egg Cooker Sugar & Dairy Dispensers
Slide 49: Edmonton
Edmonton e St-Hyacinthe, Calgary Laval, é @ Winnideg Quebec City, Regina e Sudbury e e 6 e )
Slide 50: Slide 50
Slide 51: Drive-Thru Opportunities
Drive-Thru Opportunities wight
Slide 52: Non Drive-Thru Drive-Thru Addition
Non Drive-Thru Drive-Thru Addition
Slide 53: Slide 53
Slide 54: Tandem Drive-Thru, Mobile Pick-Up Lane
Tandem Drive-Thru Mobile Pick-Up Lane =
Slide 55: Slide 55
Slide 56: Delivering Exceptional Guest Experiences
Delivering Exceptional Engaging Restaurant Driving Growth Through Guest Experiences Owners & Team Members Format Optimization
Slide 57: Markus Strum
Markus Strum SVP, Digital, Loyalty & Consumer Goods Vi
Slide 58: Key Digital Messages Today
Key Digital Messages Today Undisputed Digital Leader Digital Drives Sales & Engagement Incredible Remaining Potential
Slide 59: Digital Share, App Users, Loyalty Users
% Digital of Active App Active Loyalty System-Wide Sales' Users? (mm) Users? (mm) Tims Rewards Launch 0.5% 2018 H2 2019 2018 H2 2019 2018 H2 2019 1. Includes the following transactions: registered (verified guest email tied to account)Tims Rewards scans, targeted digital offer redemptions, mobile or
Slide 60: Digital Share, App Users, Loyalty Users
% Digital of Active App Active Loyalty System-Wide Sales' Users? (mm) Users? (mm) EE) 0.5% - 2018 H2 2019 Q12022 2018 H2 2019 Q12022 2018 H2 2019 Q1 2022 1. Includes the following transactions: registered (verified guest email tied to account) Tims Rewards scans, targeted digital offer redemptions,
Slide 61: Most Used Food & Beverage Apps — Q1 2022
Most Used Food & Beverage Apps — Q1 2022 7) UNDISPUTED DIGITAL LEADER Canada’s Top 5 Food & Bev Apps by User Base (mm of Monthly Active Users) Canada’s Top 5 Food & Bev Apps by Days Active (Avg Days Active per User) Coffee QSR Home Market App Adoption (% of Population as Monthly Active Users)
Slide 62: Most Used E-Comm Enabled Apps in Canada
Most Used E-Comm Enabled Apps in Canada 7) UNDISPUTED DIGITAL LEADER Canada’s Top 10 E-Commerce Enabled Apps by User Base — March 2022 (mm of Monthly Active Users) #3 #4 #5 #6 #7 #8 #9 #10 8S
Slide 63: Loyalty Awards
Loyalty Scale Loyalty Strategy LOYALTY 360) Awards largest Food Beverage loyalty loyalty overall program in Canada! in loyalty strategy tel most delivery locations in Canada? Largest loyalty program in Canada (in any industry)! in innovation in personalization 1. Source: public filings of major comp
Slide 64: Loyalty Digital Initiatives
Loyalty Digital Initiatives * Handcrafted Lattes.... “ae a= 9 =
Slide 65: Avg. Annual Spend and Visits per Guest
Avg. Annual Spend per Guest Avg. Annual # of Visits per Guest Ax Sx Non-Digital Guest Digital Guest Non-Digital Guest Digital Guest Source: Tim Hortons internal data Note: Annual visits based on average monthly frequency of known diners for 2021
Slide 66: Tim Hortons App Flywheel — Current
Tim Hortons App Flywheel — Current 2) DIGITAL DRIVES SALES & ENGAGEMENT Delivery Personalized Sa Mobile Order Offers “ & Pay Marketing & Y (a) Games & Activations =? Contests NY Community
Slide 67: Games & Contests, Marketing & Activations, Community
Ga Games & Contests Marketing & Activations ne Community Tims NHL Hockey 12 Days of Tims Tims It Forward Auto “Round-up” Roll Up To Win Challenge (Rewards Sharing) (THCF Donations) Give the Gift of Tims You have 6
Slide 68: Opportunity: Grow Existing + New Features
Opportunity: Grow Existing + New Features INCREDIBLE REMAINING POTENTIAL Delivery ’ Future * l ‘ Potential i Personalized Offers & Pay Marketing & eS Engagement (a\ Games & \ WS : Potential ] Community —"...
Slide 69: Beverages, Bakery, Sandwiches, Breakfast Meals
ate Crosont LUAU BEVERAGES | ‘ies BAKERY =| SesetsSvnent GUUS eK WANDCRAFTED SPECIALTY Bere aces FoR vO! CRAVEABLES Se me : BREAKFAST MEALS === —_— ———
Slide 70: Digital User Growth, Personalization, ODMB Initiatives, Delivery
Digital User Growth Personalization ODMB Initiatives Delivery (Valuable Guests) (Incremental Behaviour) (Driving Cheque) (Highly Incremental)
Slide 71: Axel Schwan
Axel Schwan President, Tim Hortons yN Tins
Slide 72: Phase I: Strengthened Foundation
Phase I: Strengthened Foundation * Grew brewed coffee share ¢ Expanded breakfast share * Improved baked goods quality or hea * Built leading loyalty program ' 7 ; * Removed artificial ingredients
Slide 73: Food Market Share All Time High
-- <a Food Market wre Share All gs S Time High Source: NPD Crest, data.ci, Company Internal Data, Ipsos. See earlier footnotes for more specifics. lien Improved Brand Metrics
Slide 74: Phase II
Phase Il: * Craveable food & beverages * Best-in-class digital * Enhance guest experience * Support communities
Slide 75: Mid-to-High Single Digit
Mid-to-High Single Digit
Slide 76: Slide 76
Slide 77: Slide 77
Slide 78: Thank you!