Mty Food Group Inc. · TSX:MTY
Mty Food — Investor Presentation (May 2025)
27 slides from Mty Food's investor presentation, May 2025
Slide 1: Investor Presentation
Investor Presentation MAY 2025 Eric Lefebvre Renée St-Onge Chief Executive Officer / Chief Financial Officer / President Directeur General Chef de la Direction Financiere MTYGROUP.COM
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. These forward-looking statements include, but are not assets, liabilities, sales and expenses reported and information on contingent liabilities and contingent assets limited to, statements relating to certain aspects of the business
Slide 3: MTYGROUP.COM
More U.S. centric : . Exposed to higher growth snacks & treats Less seasonal Large brands are a larger part Less food court presence Faster growing digital sales rete
Slide 4: Hungry for Growth
Hungry for Growth (C$ millions, except locations) 2014 2024 Change Digesting the IMPRESSIVE top and bottom-line growth Restaurants 2,727 7,079 2.6x of the last decade System Sales $888 $5,636 6.3x Adj. EBITDA $43 $265 6.2x MTYGROUP.COM 4
Slide 5: A US & Large Brand-Centric Portfolio
A US & Large Brand-Centric Portfolio 23 Largest 10 Brands by System Sales System Sales by Geography 66% 33% 67% US Other Brands Largest of 2024 System 10 Brands Sales are 31% Canada • largest 10 brands 3% International • US based MTYGROUP.COM 5
Slide 6: High Exposure to Growing Snacking & Treats and Low Exposure to Food Courts
High Exposure to Growing Snacking & Treats and Low Exposure to Food Courts Locations by Type Location by Category Busy lifestyles and the demand for quick, on-the-go options have made snacks 39% 15% a preferred choice Snacking & Food Court In the US, 6 in 10 consumers Frozen Treats now prefer sn
Slide 7: A Franchise Dominant Model
A Franchise Dominant Model Locations by Type Adjusted EBITDA by Type 96% 77% 17% Corporate Franchise Franchise 6% 4% Corporate Processing, Distribution, & Retail Asset light model generating strong free cash flow MTYGROUP.COM 7
Slide 8: Seasonal Brands in a Non-Seasonal Portfolio
Seasonal Brands in a Non-Seasonal Portfolio Q1 DEC – FEB Q2 MAR – MAY Q3 JUN – AUG Q3 SEP – NOV Seasonality of MTY Results WINTER SPRING SUMMER FALL Sales for frozen treats & smoothies Sales for Papa Murphy’s Sales for Wetzel’s Famous Dave’s BBQ Village Inn Breakfast SOFT STRONG STRONGEST MTYGROUP.C
Slide 9: Expanding Our Digital Offering
Expanding Our Digital Offering Digital System Sales (C$ millions) 1118.5 41% CAGR 1027.4 803.6 820.3 636.4 HIGHER GROWTH 199.2 BIGGER BASKETS 2019 2020 2021 2022 2023 2024 Investing to expand the higher growth digital channel MTYGROUP.COM 9
Slide 10: Nourish. Empower. Commit.
Nourish. Empower. Commit. +5k meals donated (2024) +3k kilograms food contributed (2024) MTYGROUP.COM 10
Slide 11: Strong Appetite to Consolidate
STRONG APPETITE TO CONSOLIDATE MTYGROUP.COM
Slide 12: Consolidator of Choice With a Track Record of Synergy Capture
Consolidator of Choice With a Track Record of Synergy Capture Sources of Synergies: C$562M 700+ Improved procurement terms deployed toward locations Operational efficiencies and M&A since 2020 economies of scale Brands include: Greater access to real estate Expanded marketing capabilities
Slide 13: What's Being Served Up in Each Segment?
WHAT’S BEING SERVED UP IN EACH SEGMENT? MTYGROUP.COM 13
Slide 14: Franchise Segment Delivering Stable and Consistent Growth
Franchise Segment Delivering Stable and Consistent Growth 77 Adjusted EBITDA & Margin from Franchise Segment (C$ millions, %) % $250.0 55% 60% Proportion of Total 52% 51% 48% 49% 51% Normalized Adj. EBITDA 50% $200.0 $201.4 $202.9 $152.0 $159.6 40% Grow Deliver Natural $150.0 $144.7 $122.8 Units SSS
Slide 15: Pursuing Margin Expansion within the Corporate Segment
Pursuing Margin Expansion within the Corporate Segment 17 Adjusted EBITDA & Margin from Corporate Segment (C$ millions, %) % $60.0 12% Proportion of $52.2 Total Adj. EBITDA $50.0 $44.8 10% $40.0 11% 9% 8% Focus on Improved growing Traffic Operational $30.0 6% & Avg. Cheque Performance 4% $20.0 4% Le
Slide 16: Regaining Volume in our Retail Segment
Regaining Volume in our Retail Segment 6 Adjusted EBITDA & Margin from Food Processing, Distribution and Retail Segment % (C$ millions, %) Proportion of Total Adj. EBITDA 15% 15% $25.0 $23.1 16% 14% 12% $20.0 14% $18.3 $16.3 $16.0 $16.8 12% Targeting Volume and Margin Recovery $14.5 11% 11% 10% $15.
Slide 17: Robust Free Cash Flow Generation Drives a Healthy Mix of Capital Returns and Potential M&A
ROBUST FREE CASH FLOW GENERATION DRIVES A HEALTHY MIX OF CAPITAL RETURNS AND POTENTIAL M&A MTYGROUP.COM
Slide 18: Strong FCF Generation Driven by Low Capex Requirements
Strong FCF Generation Driven by Low Capex Requirements FCF and FCF Conversion Net of FCF FCF/share Net of Lease Payments Lease Payments (C$) (C$ millions, %) 160 200% 138 140 128 180% 5.75 124 118 160% 5.16 5.00 120 110 4.82 93% 140% 4.51 100 120% 80 100% 74% 80% 60 63% 40% 52% 60% 40 40% 20 20% 0 0
Slide 19: Strong Free Cash Flow Generation Allows for Balance Sheet Optionality
Strong Free Cash Flow Generation Allows for Balance Sheet Optionality Leverage in the Comfort Zone Capital Allocation Framework Net-debt to EBITDA (LTM) 5 % 3 % 8% 3.3x 3.1x 2.7x Comfort Zone 2.6x 2.5x Share Dividend 1.9x Buybacks Yield Total shareholder <$25M Capital Investments yield 2019 2020 202
Slide 20: Building Blocks for Shareholder Value Creation: 2025 and Beyond
Building Blocks for Shareholder Value Creation: 2025 and Beyond Organic Trends Embedded Portfolio Predictable and Track Record of M&A Driven by Unit Mix to Help Drive Strong FCF Generation Value Creation and and Same-Store Growth that Drives Balance Synergy Capture Sales Growth Sheet Optionality Exp
Slide 21: Historical Financials
HISTORICAL FINANCIALS MTYGROUP.COM
Slide 22: Financial Highlights 2024
Financial Highlights 2024 SYSTEM SALES FRANCHISE NORMALIZED ADJ. EBITDA CASHFLOW FROM OPS $5,635.7M $202.9M $204.8M $5,641.2M [FLAT] $201.4M [+1%] $184.6M [+11%] LOCATIONS CORPORATE NORMALIZED ADJ. EBITDA FCF – LEASE OBLIGATIONS 7,079 $44.8M $137.9M 7,116 [-1%] $52.2M [-14%] $110.5M [+25%] NORMALIZE
Slide 23: Financial Highlights Q1 2025
Financial Highlights Q1 2025 SYSTEM SALES FRANCHISE NORMALIZED ADJ. EBITDA CASHFLOW FROM OPS $1,364.8M $44.0M $58.8M $1,331.7M [+3%] $43.4 M [+1%] $54.2M [+8%] LOCATIONS CORPORATE NORMALIZED ADJ. EBITDA FCF – LEASE OBLIGATIONS 7,047 $12.2M $43.5M 7,112 [-1%] $12.4M [-2%] $36.9M [+18%] NORMALIZED ADJ
Slide 24: Impressive Growth in System Sales and Adj. Normalized EBITDA
Impressive Growth in System Sales and Adj. Normalized EBITDA System Sales Normalized Adj. EBITDA (C$, thousands) (C$, thousands) 5,641,200 5,635,700 $271,904 $264,532 4,251,200 3,631,300 $187,352 3,459,100 $168,622 $137,819 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 MTYGROUP.COM 24
Slide 25: Key Operating Metrics
Key Operating Metrics (C$ thousands) 2024 2023 2022 2021 2020 Network Metrics System Sales 5,635,700 5,641,200 4,251,200 3,631,300 3,459,100 Number of Locations 7,079 7,116 6,788 6,719 7,001 Operating Results Revenue $1,159,604 $1,169,334 $716,522 $551,903 $511,117 Normalized Adj. EBITDA $264,532 $2
Slide 26: Non-GAAP Measures, Non-GAAP Ratios and Supplementary Financial Measures
Non-GAAP Measures, Non-GAAP Ratios and Supplementary Financial Measures Unless otherwise indicated, the financial information presented below, including tabular amounts, is prepared in Normalized adjusted EBITDA as a % of revenue: the Company believes that normalized adjusted EBITDA as a % of accord
Slide 27: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures (C$ thousands) 2024 2023 2022 2021 2020 Income before taxes 15,805 109,985 96,170 112,072 -51,949 Depreciation 59,949 54,934 21,548 16,174 16,998 Amortization 31,870 34,559 29,473 28,442 30,876 Interest on Long-Term Debt 46,515 52,142 12,428 10,111 16,756 Net Inte