Slide 1: Investor Presentation May 2025
SupremeX (TSX: SXP.TO) INVESTOR PRESENTATION MAY 2025 1
Slide 2: Forward Looking Information
Forward Looking Information • This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings, Adjusted net earnings per shar
Slide 3: Agenda
Agenda • INVESTMENT THESIS • SUPREMEX OVERVIEW • DETAILED SEGMENT OVERVIEW • Envelope • Packaging & Specialty Products • THE MARKET • Envelope • Packaging & Specialty Products • GROWTH STRATEGY • FINANCIAL TRACK RECORD • Q1 2025 RESULTS • APPENDIX • Q1 Supplemental Information • Reconciliation of No
Slide 4: Investment Thesis
Investment Thesis • Building packaging platform in growing market niches • Leading Canadian envelope manufacturer and 2nd largest in North America • Strong customer relationships • Solid cash flow generation • Experienced leadership team • Attractive valuation 4
Slide 5: Supremex Overview
TSX: SXP.TO SUPREMEX OVERVIEW INVESTOR PRESENTATION May 2025 5
Slide 6: Supremex at a Glance
SupremeX at a Glance Envelope #1 in Canada Packaging #1 Independent folding carton #2 in North America(1) provider in Quebec(1) PACKAGING: LTM REVENUE March 31, 2025 ~30% ENVELOPE: $278M ~70% (1) Based on Management estimates SupremeX is a leading North American manufacturer and marketer of envelope
Slide 7: Growing By Acquisitions for Nearly 50 Years
Growing By Acquisitions for Nearly 50 Years • Founded in 1977 by four envelope industry executives • Acquired by private equity in 1990; sold to Cenveo in 1995 Focused on envelope manufacturing in Canada Diversifying by geography & product 1991 1994 1996 1998 2000 2001 2006 2007 2008 2010 2011 2014
Slide 8: Vast North American Network
Vast North American Network Location Type 1 Richmond, BC Envelope Canada ● 2 Winnipeg, MB Envelope Canada ● 3 Etobicoke, ON* Envelope Canada & Packaging ● 4 Mississauga, ON Envelope Canada ● 5 Moncton, NB Envelope Distribution Center ● 6 LaSalle, QC* Envelope Canada & Packaging ● 7 Lachine, QC Packa
Slide 9: Experienced Leadership Team
Experienced Leadership Team 35 years of industry experience STEWART EMERSON Started at predecessor to Supremex in 1990. Previously VP and GM Central Region and Buffalo Envelope. President & CEO Responsible for leading many successful M&A integrations. Holds a Bachelor’s Degree in Business (Director
Slide 10: Recent Financial Performance
Recent Financial Performance Revenue (M$) Adjusted EBITDA (M$)(1) Net Earnings (M$) 28 302 57 281 278 49 272 17 40 16 33 39 226 2021 2022 2023 2024 LTM Q1-25 2021 2022 2023 2024 LTM Q1-25 (12) (13) 2021 2022 2023 2024* LTM Q1-25* (1) This is a non-IFRS financial measure. Non-IFRS financial measures
Slide 11: Historical Price Chart
Historical Price Chart (as of April 30, 2025) Shares outstanding 24.6M 2,000 $8 Float 15.5M Average daily volume 22,458 (52 weeks on TSX) 1,500 $6 52 week (high-low) $4.53-$3.40 Market capitalization $94.6M (in ‘000s of shares) 1,000 $4 $3.85 500 $2 0 $0 Apr-20 Oct-20 Apr-21 Oct-21 Apr-22 Oct-22 Apr
Slide 12: Detailed Segment Overview
TSX: SXP.TO DETAILED SEGMENT OVERVIEW INVESTOR PRESENTATION May 2025 12
Slide 13: The Envelope Segment - Overview
The Envelope Segment - Overview The Company utilizes an industry leading equipment base and platform to manufacture a broad range of stock and custom envelopes. “Everything in the letter carrier’s bag.” Q1-25 Revenue 2021-2025 Revenue Key Points • Optimal geographical network • Leading player in Can
Slide 14: The Envelope Segment – Broad Products Offering
The Envelope Segment – Broad Products Offering Stock Envelopes Custom Envelopes Complementary Services Product A generic product that can be used by Custom envelopes are manufactured • Graphic arts services (basic design and creative Description customers for a variety of applications. according to
Slide 15: The Envelope Segment – Strong Customer Base
The Envelope Segment – Strong Customer Base Supplier to essential businesses and services Regional Envelope Revenue Contracts Supremex Edge Distribution(1) • The industry does not typically National footprint & local distribution: 11% enter into long-term agreements. • Local market intimacy Informal
Slide 16: The Packaging Segment - Overview
The Packaging Segment - Overview The Company manufactures and distributes a diverse range of packaging and specialty products including high-end folding carton packaging, e-Commerce fulfillment packaging solutions and labels. Q1-25 Revenue 2021-2025 Revenue Key Points • #1 independent folding carton
Slide 17: The Packaging Segment – Diversified Offering
The Packaging Segment – Diversified Offering Folding Carton E-commerce Specialty Products Product • Made of paperboard that is • Innovative products to optimize • Pressure sensitive labels, Description printed, laminated, cut, then shipping and reduce over booklets & other inserts folded and glued p
Slide 18: The Packaging Segment – Diversified Customer Base
The Packaging Segment– Diversified Customer Base Supplier to varied consumer staples and discretionary consumer end-markets. End-market Approximate Contracts Supremex Edge Packaging Revenue Distribution(1) 12% • Agreements vary according to the Proximity to customer base: type of packaging and custo
Slide 19: The Market
TSX: SXP.TO THE MARKET INVESTOR PRESENTATION May 2025 19
Slide 20: The North American Envelope Market is in Secular Decline
The North American Envelope Market is in Secular Decline Through internal growth and acquisitions, Supremex is now the second largest manufacturer in North America Canadian Envelope Market U.S. Envelope Market Market Size –Sales $125M(1) US$2.0B(2) Competitive Landscape • Supremex is a leading playe
Slide 21: Transaction Mail Volume Trends in North America
Transaction Mail Volume Trends in North America Transaction mail volume in Canada has First-class mail volume in the U.S. has also steadily declined since 2019 decreased, but at a lesser rate 5-YR CAGR: 2,826 5-YR CAGR: (4.2%) 2,540 (5.8%) 52,628 50,664 2,478 2,313 48,960 2,196 2,133 45,982 44,312 4
Slide 22: Marketing Mail Volume Trends in North America
Marketing Mail Volume Trends in North America Marketing mail volume in Canada contracted Marketing mail volume in the U.S. historically more sharply due to COVID, but growing since then stable, but affected by economic uncertainty 5-YR CAGR: 4,578 (0.1%) 4,558 5-YR CAGR: 64,004 66,198 67,092 (2.0%)
Slide 23: The Packaging Market is Growing
The Packaging Market is Growing Growing e-commerce activity and sustainability trends support the expansion of paper packaging Paper Packaging Folding Carton Boxes Largest subsector with an estimated 2025 share of 35.4%(1) of the global Market Size Global folding carton packaging market valued at US
Slide 24: Package and Parcel Volume Trends in North America
Package and Parcel Volume Trends in North America Canada Post parcel volume is below the COVID- Following the COVID-related spike, U.S. Package & related spike, but has been relatively stable since Parcel volume remains similar to 5 years ago 389 5-YR CAGR: 5-YR CAGR: (2.5%) (0.3%) 361 7,585 7,325 7
Slide 25: Growth Strategy
TSX: SXP.TO GROWTH STRATEGY INVESTOR PRESENTATION May 2025 25
Slide 26: Executing on a Three-Pronged Growth Strategy
Executing on a Three-Pronged Growth Strategy Leverage our Envelope capacity, knowhow and cash flow to fund the pivot to packaging 1 2 3 Maintaining its leading Pursuing growth opportunities Building Supremex’ packaging position in the Canadian in the U.S. envelope market capabilities organically and
Slide 27: Maintaining Market-Leading Position in Canada and Diversifying in the U.S.
Maintaining Market-Leading Position in Canada and Diversifying in the U.S. Manage the secular decline in the Envelope segment by maintaining EBITDA and strong cash flow generation 1. Maintain Leading Position in Canada 2. Diversify into the U.S. Market • Have a disciplined approach to pricing • Take
Slide 28: Diversifying into Paper-Based Packaging in Canada & the U.S.
Diversifying into Paper-Based Packaging in Canada & the U.S. Accelerate diversification into high-value growth markets and execute pivot to Packaging 3. Diversify into Paper-Based Packaging Focus on 3 Pillars of Growth MAKE ACQUISITIONS TO DEVELOP SCALE FOLDING CARTON • Build capacity closer to the
Slide 29: Financial Track Record
TSX: SXP.TO FINANCIAL TRACK RECORD INVESTOR PRESENTATION May 2025 29
Slide 30: Growing Revenues
Growing Revenues Successfully managing secular decline of Envelope Segment and diversification into Packaging Segment 302 272 281 278 CAGR: 89 205 226 72 82 84 9.0% 69 58 (in millions of $) CAGR: 214 157 200 199 194 6.9% 147 2020 2021 2022 2023 2024 LTM Q1-25 Envelope Packaging Note: Totals may not
Slide 31: Adjusted EBITDA and Margin
Adjusted EBITDA and Margin Focusing on operational leverage and extracting cost efficiencies 20.9% 56.8 49.1 15.9% 17.2% 16.3% 40.3 14.4% 38.7 39.0 13.9% 32.5 28.4 (in millions of $) 15.8 10.4% 17.3 7.5 7.0% 5.7% 3.7% -4.2% (11.7) -4.8% (13.3) 2020 2021 2022 2023 2024* LTM Q1-25* (1) (1) Adjusted EB
Slide 32: Generating Solid Cash Flows
Generating Solid Cash Flows Tight working capital management and disciplined capital investment has significantly improved cash flow 43.9 40.0 37.0 34.4 34.0 33.8 32.1 31.7 30.0 26.1 26.9 (in millions of $) 24.4 2020 2021 2022 2023 2024 LTM Q1-25 Net cash flows related to operating activities Free C
Slide 33: Optimizing Capital Allocation
Optimizing Capital Allocation Returning short term value to shareholders while investing in future growth 40.2 36.4 33.6 (in millions of $) 11.5 9.4 1.4 2020 2021 2022 2023 2024(2) YTD Q1-25 (2,3) (1) Capex Acquisitions Dividends Share repurchases Growth investments $105.1M Return to shareholders $2
Slide 34: Dividend Payments
Dividend Payments Quarterly dividend reinstated in Q1-22; increased four times since then Current payment is 5 cents per share ($0.20 annually) Increased in November 2024, annual payout represents 13.1% of trailing 12-month free cash flow as of March 31 2025. Dividend Reinstated Q1-22 (5 payments in
Slide 35: Healthy Balance Sheet And Leverage Position
Healthy Balance Sheet And Leverage Position Historically, debt has been reduced through a Targeting a leverage ratio below 2.0x strong cash flow generation Total Debt Net Debt to Adj. EBITDA Ratio (1) 56.7 56.8 54.7 56.8 (in millions of $, except ratios) 53.4 44.6 55.4 43.1 53.4 1.6x 55.449.1 52.5 3
Slide 36: Q1-2025 Results
TSX: SXP.TO Q1-2025 RESULTS INVESTOR PRESENTATION May 2025 36
Slide 37: Q1-2025 Highlights & Recent Events
Q1-2025 • Revenue of $70.2M, compared to $73.3M last year. Highlights & • Adjusted EBITDA(1) of $8.8M (12.6% of revenue), vs. $10.5M Recent Events (14.3% of revenue) last year. • Net earnings of $1.9M ($0.08 per share), vs. $3.5M ($0.14 per share) last year. • Adjusted net earnings(1) of $2.2M ($0.0
Slide 38: Revenue Overview
Revenue Overview Revenue (M$) Y/Y Variance Analysis Highlights $73.3 $70.2 Envelope: (M$, except %) Envelope Packaging TOTAL (-) Lower average selling price from less 19.8 21.8 favourable product and customer mix Q1-24 53.4 19.8 $73.3 between U.S. and Canadian markets Revenue Volume 1.8% - - (+)Bett
Slide 39: Adjusted EBITDA and Net Earnings
Adjusted EBITDA(1) and Net Earnings Adjusted EBITDA (M$)(1) & margin (%)(1) Net earnings (M$) & margin $5.0 $4.0 15.0 $3.5 $10.5 $8.8 1.2 $3.0 10.0 3.3 $1.9 $2.0 10.9 8.3 4.8% 5.0 14.3% $1.0 2.7% 12.6% 0.0 $0.0 -1.6 -2.8 Q1-24 Q1-25 Q1-24 Q1-25 -5.0 Envelope Packaging Corporate Margin (1) This is a
Slide 40: Net Earnings and Adjusted Net Earnings
Net Earnings and Adjusted Net Earnings(1) Net earnings (M$) & EPS Adjusted net earnings(1) (M$) & per share(1) Q1 Elements $5.0 $5.0 $3.5 2025: $4.0 $3.5 $4.0 - Restructuring expenses $3.0 $3.0 (envelope segment) $1.9 $2.2 $2.0 $0.14 $2.0 $0.14 2024: $0.09 - Restructuring expenses $1.0 $0.08 $1.0 (p
Slide 41: Cash Flow from Operating Activities and Free Cash Flow
Cash Flow from Operating Activities and Free Cash Flow (1) Net Cash flow related to operating activities (M$) Free cash flow(1) (M$) Highlights $10.0 $10.0 $8.0 $8.0 $7.0 $6.8 $6.0 $6.0 (+) Working capital release $5.1 $4.7 in Q1-25 versus requirement in Q1-24 $4.0 $4.0 $2.0 $2.0 (-) Lower profitabi
Slide 42: Solid Financial Position
Solid Financial Position Total Debt (M$) Net Debt to Adj. EBITDA Ratio (1) Highlights 75.0 2.5x Forest Envelope 60.0 54.9 (in millions of $, except ratios) 51.8 49.6 • Q1 debt decrease 2.0x 43.1 reflects free cash flow 45.0 50.4 38.0 generation 53.7 1.5x 53.7 50.4 (in millions of $) 46.3 40.8 40.2 4
Slide 43: Outlook
Outlook Positive factors • Strong financial position and cash flow generation • Strong team, broad product offering, geographical diversification, solid supplier relationships Short-term concerns • Current economic volatility and ongoing trade uncertainty are causing unpredictability. Priorities • I
Slide 44: Appendix
TSX: SXP.TO APPENDIX INVESTOR PRESENTATION May 2025 44
Slide 45: Q1 Supplemental Information - Summary
Q1 Supplemental Information - Summary Selected Consolidated Financial Information Three-month periods (In thousands of dollars, except for margins) ended March 31 2025 2024 Revenue 70,228 73,268 Operating expenses 50,848 52,460 Selling, general and administrative expenses 10,695 10,318 Operating ear
Slide 46: Q1 Supplemental Information - Segmentation
Q1 Supplemental Information - Segmentation Segmented Information Three-month periods (in thousands of dollars, except %) ended March 31 2025 2024 Segmented Revenue Envelope 48,416 53,426 Packaging & specialty products 21,812 19,842 Total revenue 70,228 73,268 Segmented Adjusted EBITDA(1) Envelope 8,
Slide 47: Non-IFRS Financial Measures
Non-IFRS Financial Measures Measure Definition EBITDA represents earnings before net financing charges, income tax expense, depreciation of property, plant and equipment and right-of-use assets and amortization of intangible assets. EBITDA The Company uses EBITDA to assess its performance. Managemen
Slide 48: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures Reconciliation of Net earnings to Adjusted EBITDA Three-month periods (In thousands of dollars, except for margins) ended March 31 2025 2024 Net earnings 1,920 3,496 Income tax expense 801 1,153 Net financing charges 1,057 1,114 Depreciation of property,
Slide 49: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures Reconciliation of Net earnings to Adjusted net earnings and of Net earnings per Three-month periods share to Adjusted net earnings per share ended March 31 (In thousands of dollars, except for per share amounts) 2025 2024 Net earnings 1,920 3,496 Adjustm
Slide 50: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures Reconciliation of Net earnings (loss) to Adjusted EBITDA LTM Q1-25 2024 2023 2022 2021 2020 (In thousands of dollars, except for margins) Revenue 277,995 281,035 302,187 272,467 226,430 204,604 Net earnings (loss) (13,319) (11,743) 17,334 28,436 15,752 7
Slide 51: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures Reconciliation of Net earnings (loss) to Adjusted net earnings and of Net earnings (loss) per share to Adjusted net earnings per share LTM Q1-25 2024 2023 2022 2021 2020 (In thousands of dollars, except for per share amounts) Net earnings (loss) (13,319)
Slide 52: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures Reconciliation of Net cash flows related to operating activities to Free Cash Flow LTM Q1-25 2024 2023 2022 2021 2020 (In thousands of dollars) Net cash flows related to operating activities 33,956 32,087 43,897 26,914 29,996 37,025 Acquisitions (net of
Slide 53: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures Reconciliation of Net cash flows related to operating activities to Q1-25 2024 Q4-24 Q3-24 Q2-24 Q1-24 2023 Q4-23 Q3-23 Q2-23 Q1-23 Free Cash Flow (In thousands of dollars) Net cash flows related 6,965 32,087 9,201 7,568 10,222 5,096 43,897 14,813 11,538
Slide 54: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures Net Debt to Adjusted EBITDA ratio Q1-2025 2024 2023 2022 2021 2020 (in thousands of dollars) Total debt 37,974 43,142 56,766 54,748 44,529 56,750 Deferred financing costs (130) (159) (256) (334) (178) (307) Cash (2,423) (1,794) (1,066) (1,929) (6,365) (3
Slide 55: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures Net Debt to Adjusted EBITDA ratio (in thousands of dollars) Q1-2025 Q4-2024 Q3-2024 Q2-2024 Q1-2024 Total debt 37,974 43,142 49,619 51,833 54,877 Deferred financing costs (130) (159) (158) (186) (203) Cash (2,423) (1,794) (3,193) (1,279) (1,006) Net debt
Slide 56: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures Reconciliation of EBITDA and Adjusted Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 EBITDA for the past eight quarters 2025 2024 2024 2024 2024 2023 2023 2023 (In thousands of dollars, except for margins) Net earnings (loss) 1,920 5,819
Slide 57: Acquisition Details
Acquisition Details Date Acquired Company Location Description May 1, 2024 Forest Envelope Group Bolingbrook, Illinois Specialty envelope manufacturer May 8, 2023 Graf-Pak Inc. Quebec Provider of folding carton packaging solutions January 16, 2023 Impression Paragraph Inc. Quebec Integrated provider
Slide 58: www.supremex.com Head Office
www.supremex.com Head Office investors@supremex.com 7213 Cordner Street Tel: (514)-731-0000 extension 229 LaSalle, Quebec H8N 2J7