Slide 1: Maple Leaf Foods Q2 2021 Business & Financial Review
Maple Leaf Foods Q2 2021 Business All dollar amounts are presented in CAD dollars unless otherwise noted. & Financial Review
Slide 2: Forward-looking Statements and non-IFRS Measures
Forward-looking Statements and non-IFRS Measures This presentation contains “forward-looking information” within the meaning of applicable securities law. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which the Company operates, as
Slide 3: Enroute to Becoming the Most Sustainable Protein Company on Earth
Enroute to Becoming the Most Sustainable Protein Company on Earth 13,500 employees Total Sales (2020) $4,304 million Meat Protein Group Plant Protein Group 32 manufacturing facilities* 2020 Adj. 2020 prepared meats, fresh pork, fresh poultry and plant protein 12.4% EBITDA Margin 19.5% Sales Growth 4
Slide 4: The Maple Leaf Foods Blueprint
The Maple Leaf Foods Blueprint 44 MAPLE LEAF FOODS – Q2 2021 BUSINESS AND FINANCIAL REVIEW | AUGUST 5, 2021
Slide 5: We Built a Profitable Base; Now We're Focused on Profitable Growth
We Built a Profitable Base; Now We’re Focused on Profitable Growth 2010 Transformation 2014 2015 Brand-led Growth Today Exited non-core businesses Expanding sustainable meats platform Rothsay (2013) Olivieri (2013) Canada Bread (2014) Renovated core brands Transformed our supply chain
Slide 6: Well-defined Strategies and the Leading Brands to Support Them
Well-defined Strategies and the Leading Brands to Support Them Two businesses, with two distinct strategies Meat Protein Group Plant Protein Group Strategy: Drive profitable growth Strategy: Invest for growth Our Brands Adjusted EBITDA Dollars & Margin Sales (in millions; margin as % of sales) $508
Slide 7: Built for Growth: 20% of Portfolio now Growing at 3-yr CAGR >25%
Built for Growth: 20% of Portfolio now Growing at 3-yr CAGR* >25% Percentage of Total Company Sales in Sustainable Meats and Plant-based Protein ~10% ~20% 2020 High growth 2017 $3.5B Steady growth $4.3B Deliberate repositioning of portfolio towards two high-growth categories, now generating a compou
Slide 8: Q2 2021 Results
Q2 2021 Results 8
Slide 9: Key Highlights from Q2 2021
Key Highlights from Q2 2021 • Advanced strategic agenda despite transitory headwinds in Q2 Delivered another quarter of growth in sustainable meats, branded market share and U.S. sales Efficient operating performance, demonstrating flexibility and resilience of Meat Protein supply chain Comple
Slide 10: Looking toward the second half of 2021
Looking toward the second half of 2021; Meat Protein momentum to continue, Plant Protein growth to accelerate Meat Protein Plant Protein Mid-to-High single digit growth with progress toward Revenue growth drivers gaining momentum in 14-16% EBITDA Margin Target the second half of 2021 Continued pro
Slide 11: Meat Protein Group – Q2 2021 Strategic & Operational Highlights
Meat Protein Group – Q2 2021 Strategic & Operational Highlights Drive Profitable Growth by… Q2 2021 Highlights • Expanded market share in prepared meats1, led by Investing in our brands our Schneiders brand to build demand & loyalty • Acceleration in foodservice volume growth outpaced industry, su
Slide 12: Meat Protein Group – Q2 2021 Key Financial Metrics
Meat Protein Group – Q2 2021 Key Financial Metrics Q2 2021 vs. LY Drivers • Higher fresh pork & poultry market prices and favourable Sales $1,117.5 7.4% mix-shift towards branded & sustainable meats • Partially offset by FX Gross Profit $167.0 (5.4%) • Favourable mix-shift towards branded & sustaina
Slide 13: Meat Protein Group – Putting the Q2 Pork Complex in Context
Meat Protein Group – Putting the Q2 Pork Complex in Context Hog Production Margins Pork Processor Margins Pork By-Product Markets $40 $20 $8 $30 $15 $7 US/CWT US/CWT $10 US/CWT $20 $6 5-yr avg. $10 $5 $5 $0 $0 $4 -$5 -$10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $3 Q1 Q2 Q3 Q4 Hog production margins = live hog cost
Slide 14: Plant Protein Group – Q2 2021 Strategic & Operational Highlights
Plant Protein Group – Q2 2021 Strategic & Operational Highlights Invest for Growth by… Q2 2021 Highlights • Industry laps height of initial COVID demand surge; sales Entrenching prominent market share position growth gaining momentum in H2 as conditions normalize U.S. plant protein retail market
Slide 15: Focus Remains on Building Brands to Win at Retail
Focus Remains on Building Brands to Win at Retail Market-Leading Innovation Pipeline Renovation Work is Complete in Early Stages of Gaining Distribution Completely reformulated product line to Lightlife Chicken launched in Field Roast Stadium Dogs deliver Clean & Simple ingredients, with Q2 with Spr
Slide 16: Foodservice Momentum Growing, Building Partnerships across Four Key Food Platforms
Foodservice Momentum Growing, Building Partnerships across Four Key Food Platforms Key Platforms Examples of Recent Wins Field Roast™ Field Roast™ partners with Little named iconic Field Roast™ plant-based 1 Pizza Pepperoni & Caesars to become the first pizza chain Dodgers Dog Crumble to offer plant
Slide 17: Plant Protein Group – Q2 2021 Key Financial Metrics
Plant Protein Group – Q2 2021 Key Financial Metrics Q2 2021 vs. LY Drivers • Lower retail volumes as business lapped surge demand in Sales $48.1 (10.4%) 2020 tied to COVID-19 (ex-FX) • Partially offset by higher FS volume & Q4 pricing action Gross Profit $0.3 (96.6%) • Strategic investments in capac
Slide 18: Total Company – Q2 2021 Key Financial Metrics
Total Company – Q2 2021 Key Financial Metrics Q2 2021 vs. LY Drivers Sales $1,158.9 +5.9% • Solid growth in Meat, partially offset by lower sales in Plant Adj. Operating Earnings $56.4 (15.4%) Adj. EBITDA $103.8 (10.3%) Adj. EBITDA Margin 9.0% (160 bps) Net earnings $8.8 (65.8%) Adj. EPS $0.28 (20.0
Slide 19: Summary of our Key Construction Capital Projects
Summary of our Key Construction Capital Projects London Poultry Facility Indianapolis Tempeh Facility • Increases processing capacity for value- • Cost effective and scalable approach to meet Strategic added, higher margin poultry products Strategic burgeoning consumer demand for high- Rationale • G
Slide 20: 2021 & Long-Term Outlook
MAPLE LEAF 20 2021 & Long-Term Outlook
Slide 21: 2021 Financial Outlook
2021 Financial Outlook Mid-to-high single digit sales growth on a 52-week comparable basis, driven by continued momentum in Meat sustainable meats, leveraging brand renovation, and growth into the U.S. market. Protein Adj. EBITDA margin expansion, progressing towards the 2022 target of 14-16%, drive
Slide 22: Reconfirming our Long-Term Outlook
Reconfirming our Long-Term Outlook 2022 Adjusted EBITDA margin target of 14-16%, driven by: Meat Protein • Growth in sustainable meats • Mix-shift benefits from our brand and food renovation work Group • Cost and operational efficiencies 2029 ambitious goals for high-growth business: Plant Protein •
Slide 23: Appendix
MAPLE LEAF 23 Appendix _ BECAUSE ANTIBIOTICS ARE | Tt S TIME FOR BETTER. ‘fh FOR MEAT THAT TASTES THEWAY IT SHOULD LIKE MEAT. | ~ MADE FROM ANIMALS THAT ARE RUsED, NOT PRODUCED, ITS TIME FOR MORE FARM AND LESS PHARM, OR THE SICK, NOT THE HUNGRY. ITS TIME TO LET; NATURE DOITS THING: IT’S TIME FOR BET
Slide 24: Reconciliation of Non-IFRS Metrics – Adjusted EBITDA Margin
Reconciliation of Non-IFRS Metrics – Adjusted EBITDA Margin Three months ended June 30, 2021 Three months ended June 30, 2020 Meat Plant Meat Plant ($ millions)(1) Protein Protein Non- Protein Protein Non- (Unaudited) Group Group allocated(2) Total Group Group allocated(2) Total Earnings (loss) befo
Slide 25: Reconciliation of Non-IFRS Metrics – Adjusted Earnings per Share
Reconciliation of Non-IFRS Metrics – Adjusted Earnings per Share Three months ended June 30, ($ per share) (Unaudited) 2021 2020 Basic earnings per share $0.07 0.21 Restructuring and other related costs(1) 0.01 0.01 Items included in other expense (income) not 0.02 0.03 considered representative of
Slide 26: Capital Allocation Priorities
Capital Allocation Priorities Growth capacity and efficiency initiatives 1 Reinvest in the Business with a focus on returns metrics & timing Capitalize on inorganic opportunities 2 Accretive Acquisitions with financial and strategic appeal 3 Dividend Appreciation Deliver consistent predictable growt