Mty Food Group Inc. · TSX:MTY
Mty Food — Q4 2024 Earnings Presentation
38 slides from Mty Food's earnings presentation, Feb 14, 2025
Slide 1: Groupe MTY Group Investor Presentation 2024
GROUPE MTY GROUP INVESTOR PRESENTATION Award-winning franchisor of international quick service and fast casual restaurant 2024 ee, ES t—=‘(<C;S
Slide 2: Why MTY
Slide 3: The MTY Difference: MTY at a Glance
THE MTY DIFFERENCE MTY AT A GLANGE INVEST IN AN INDUSTRY LEADER THAT BRINGS FRESH, DIVERSE, DELICIOUS FOOD TO BUSY PEOPLE ACROSS THE WORLD. aw 6 40+ 7000+. 90 YEARS LOCATIONS WORLDWIDE BRANDS
Slide 4: MTY at a Glance
;OUPE RQ 2024 INVESTOR PRESENTATION / MTY AT A GLANCE THE MTY DIFFERENCE | MTY ANSWERS THE EVER-GROWING DEMAND FOR NEW CHAINS WHILE DRIVING SUCCESS WITHIN OUR CURRENT BRANDS AND FRANCHISEES tr We EXPERIENCE Decades of concept development, brand acquisitions and building partnerships Thoughtful, expe
Slide 5: The MTY Difference
@ 2024 INVESTOR PRESENTATION / THE MTY DIFFERENCE THEMTY DIFFERENCE = THE MTY DIFFERENCE » Cuisines and brands « Diverse concepts «= Community
Slide 6: Diversification Protects MTY from Shifts in Customer Preferences
GROUPE s NRG 2024 INVESTOR PRESENTATION / THE MTY DIFFERENCE THEMTY DIFFERENGE = DIVERSIFICATION PROTECTS MTY FROM SHIFTS IN CUSTOMER PREFERENCES S ASIAN & INDIAN @ wasabi ruven... THANE = Y 424 ManchuWOK. [ee TIKI-MING bubble deg ROExNO SenseAsian somuta, sons sushiS©” {ito KIM CHI G FROZEN TREATS
Slide 7: Diversification Protects MTY from Shifts in Customer Preferences
2024 INVESTOR PRESENTATION / THE MTY DIFFERENCE DIVERSIFICATION PROTECTS MTY FROM SHIFTS INCUSTOMER PREFERENCES THEMTY DIFFERENCE = | SANDWICHES & SALADS Extremepits = Jyagwoodss MEDITERRANEAN MRSOUVLAKI Say SP ITALIAN MRSUB - ©; casa GRECAUE cultures. eaarifis VILLA MADINA Fj 222 BREAKFAST MEXICAN
Slide 8: Diverse Ways to Meet Market Needs
GROUPE PANG 2024 INVESTOR PRESENTATION / THE MTY DIFFERENCE THE MTY DIFFERENCE DIVERSE WAYS TO MEET MARKET NEEDS SUMMARY OF QUARTERLY OPERATING METRICS c—SP) MALLS AND OFFICE TOWER STREET CATERING FOOD COURTS FRONTS SERVICES Example: within airports, cinemas, amusement parks, hospitals, universities
Slide 9: Acquirer of Choice
THE MTY DIFFERENCE ACQUIRER OF CHOICE @ vn STRONG REPUTATION FOR PAYING A'FAIR' PRICE 202 rsere) EXPERIENCED INTEGRATION TEAM O GR, VENDOR'S AWARENESS OF MTY'S APPETITE INCREASED CAPABILITIES GIVEN INCREASED SIZE OF THE ORGANIZATION These strengths allow us to pursue international brands, with a var
Slide 10: Stores and System Sales
During the twelve months ended-month periods ended November 30, 2024: 2,475 4068 536 2,480 $1,746M $1,750.6M 4,057 $3,729.7M $3,705M $155.4M stores stores stores 7079 locations and $5,635.7 in system sales (1) FY2024 (1) This is a supplementary financial measure. Please refer to page 35 of this pres
Slide 11: Aiding the Sustainable Transformation of the Food Industry
2024 1NVESTOR PRESENTATION / THE MTY DIFFERENCE: COMMUNITY THEMTY DIFFERENCE =| AIDING THE SUSTAINABLE TRANSFORMATION OF THE FOOD INDUSTRY Planning for the Future and Working Towards Delivering Positive, Long-Term Outcomes For All. Our 2023 Sustainability Report Update can be found here. Aligning to
Slide 12: Making a Difference in Your Communities
2024 INVESTOR PRESENTATION / THE MTY DIFFERENCE: COMMUNITY THEMTY DIFFERENCE MAKING A DIFFERENCE IN YOUR COMMUNITIES FONDATION Figg FOUNDATION Nourish. Empower. Commit. Learn about our Foundation OUR COMMITMENT Our foundation is committed to nourishing communities across Canada. We believe that acce
Slide 13: Diverse Revenue Streams
» Diverse revenue streams = Building ona strong financial position
Slide 14: FY2024 Revenues
International 3% Non-traditional Food court 22% 16% 34% 43% Franchise 31% Corporate Stores $1,159.6M Operation $5.6B Canada 7,079 FY2024 Revenues(1) 66% FY2024 Q4-2024 US System Sales(2) Locations 10% 62% Food Processing, Distribution & Retail 13% Promotional Funds Street front (1) Percentages are c
Slide 15: Strong Cash Flow Generation Ability
Strong cash flow generation Recurring revenue streams in the Track record of growth, proven ability. franchising segment. consolidator with disciplined acquisition strategy. Q4 2024: Franchising segment Learn more > During the year ended normalized adjusted EBITDA(1) November 30, 2024, cash flows in
Slide 16: Supplementary financial measures footnotes
(1) See section “Definition of supplementary financial measures” found in the Supplemental Information section on slide 35 for definition. (2) In millions $. (3) See section “Definition of non-GAAP measures” found in the Supplemental Information section on slide 35 for definition. (4) See section “D
Slide 17: Dividend Typically Represents 15-20% of FCF
DIVIDEND TYPICALLY REPRESENTS 15-20% OF FCF(1) $1.32 Dividend $1.12 $1.32 payments restored as at $1.00 July 9 $0.84 Temporarily suspended the $0.66 dividend in $0.60 response to COVID-19 $0.46 $0.46 $0.40 The number of $0.37 shares increased in 2017 $0.19 2015 2016 2017 2018 2019 2020 2021 2022 202
Slide 18: Normalized Adjusted EBITDA as a % of Revenues
NORMALIZED ADJUSTED EBITDA AS A % OF REVENUES(2) IS PRIMARILY DRIVEN BY THE FRANCHISING SEGMENT 300 $265M 250 50% 55% 51% 48% 49% 48% 49% 52% 45% 45% 200 35% 34% 34% 150 31% 27% 31% 28% 26% 23% 23% 100 $51M 50 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Normalized Adj. EBITDA Normalized Adj.
Slide 19: Revenues, Adjusted EBITDA, Net Income and Cash Flow
Normalized Adjusted Revenues (M$) Adjusted EBITDA (1) (M$) EBITDA (1) 272 265 271 263 1,169 1,160 169 187 169 182 138 717 138 511 552 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Operating Cash FCF Net of Lease Payments Net Income (Loss) (M$) Flow (2) (M$) (1&2) (M$) 20
Slide 20: System Sales by Type
System Sales by Type (M$)(1) Locations by Type 5635.7 8,000 5,000 7,000 4,000 6,000 3,459 5,000 3,000 4,000 2,000 3,000 2,000 1,000 1,000 0 0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Food Court Street front Non-traditonal Food Court Street front Non-traditonal (1) This is a supplementary fi
Slide 21: System Sales by Geography
System Sales by Geography (M$)(1) Locations by Geography 5635.7 5,000 8,000 7,001 7,079 7,000 4,000 6,000 3,459 5,000 3,000 4,000 2,000 3,000 2,000 1,000 1,000 0 0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Canada US International Canada US International (1) This is a supplementary financial
Slide 22: Why Now?
Slide 23: Why Now: Short-Term Company Focus
GROUPE WG 2024 INVESTOR PRESENTATION / WHY NOW | WHYNOW | SHORT-TERM COMPANY FOCUS ( ———_) THE SUCCESS OF EXISTING ASSISTING FRANCHISEES GENERATE OPENING NEW LOCATIONS OF LOCATIONS SALES AND PROFITABILITY EXISTING CONCEPTS MAXIMIZE SHAREHOLDER VALUE SEEKING POTENTIAL BY ADDING NEW LOCATIONS OF ACCRE
Slide 24: To Increase MTY's Market Share, We're Focusing On...
UPE N@ 2024 INVESTOR PRESENTATION / WHY NOW | WHY NOW TO INCREASE MTY’S MARKET SHARE, WE'RE FOCUSING ON... Nie SOLID PLATFORMS Leveraging our solid platforms to expand throughout North America RECURRING REVENUES Focusing on high quality of revenues that are recurting in nature @) GLOBAL OPPORTUNITIE
Slide 25: Highlights & Results
highlights & results
Slide 26: Normalized Adjusted EBITDA Remained Relatively Stable
• Normalized adjusted EBITDA(1) remained relatively stable at $59.4 million in the quarter, compared to $60.4 million in Q4-23. • System sales(2) for the quarter improved by 2% or $30.3 million to reach $1,371.9 million compared to $1,341.6 million in Q4-23 mostly due to organic growth. • Ended the
Slide 27: Non-GAAP measure footnotes
(1)This is a non-GAAP measure. Please refer to the “Non-GAAP Measures” section on page 35 of this presentation (2) This is a non-GAAP ratio. Please refer to the “Non-GAAP Measures” section on page 35 of this presentation (3) This is a supplementary financial measure. . Please refer to the “Supplemen
Slide 28: Normalized Adjusted EBITDA Was $59.4 Million
Normalized adjusted EBITDA was $59.4 million, a decrease of $1.1 million or 2% compared to the prior year. $60.4M $59.4M $60.4M $59.4M Q4-23 Q4-24 Q4-23 Q4-24 Franchise Corporate Food processing, distribution & retail Canada US & International (1) This is a non-GAAP measure. Please refer to page 35
Slide 29: Net Debt and Revolver
Net Debt(1) Revolver $686M $681M $656M $639M $900M $900M $900M $900M Q1-24 Q2-24 Q3-24 Q4-24 Q1-24 Q2-24 Q3-24 Q4-24 Used Available (1)Net debt represents total long-term debt net of cash. As at November 30th, we have drawn $8M CAD and $497.2M USD.
Slide 30: Why Now
i RG 2024 INVESTOR PRESENTATION / WHY NOW | WHYNOW www.mtygroup.com
Slide 31: Let's Roll
“LET'S ROLL”
Slide 32: Appendix
Slide 33: Forward-Looking Statement
N@ 2024 INVESTOR PRESENTATION | APPENDIX FORWARD-LOOKING STATEMENT This presentation may contain written and oral statements that constitute forward-looking statements. These forward-looking statements may involve, but are not limited to, comments with respect to our business or financial objectives
Slide 34: Non-GAAP Measures, Non-GAAP Ratios and Supplementary Financial Measures
ouP 2024 INVESTOR PRESENTATION NON-GAAP MEASURES, NON-GAAP RATIOS AND SUPPLEMENTARY FINANCIAL MEASURES Unless otherwise indicated, the financial information presented below, including tabular amounts, is expressed in Canadian dollars and prepared in accordance with International Financial Reporting
Slide 35: Knowledgeable & Committed Management Team
2024 INVESTOR PRESENTATION | APPENDIX KNOWLEDGEABLE & COMMITTED MANAGEMENT TEAM Eric Lefebvre Renée St-Onge Marie-Line Beauchamp Jason Brading Jenny Moody Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Operating Officer Quick Chief Legal Officer Casual Dining Restauran
Slide 36: System Sales by Cuisine and Top Brands
67% 33% Breakfast 3% Italian 2% Mediterranean 1% Mexican 7% Sandwiches & salads 6% 33% Frozen treats 33% 67% & smoothies Other Brands $3.75B Top 10 Brands Coffee & snacks 8% 7,079 Asian & Indian 12% 22% American (1) FCF is a non-GAAP measure. Please refer to page 35 of this presentation
Slide 37: Milestones in 45-Year History
2024 INVESTOR PRESENTATION | APPENDIX MILESTONES IN - 45-YEAR HISTORY ‘equ Seng st suas sounuse BUILT MTR Dees BURGER “epee arn Westin | Qallotmoneny YUZU sass Extremepita os oe feos ae MR.SUB) = KORYO [es] Steak frites casa GRECAUE { imuchoburrfto ——sushico i. pom Ce a seus =. seus KimGcet sushi@ r
Slide 38: Management and Board Own 17% of Shares
As of February 14, 2025, management and the Board own 17% of shares Source: Yahoo Finance. Transactions on the TSX only.