Slide 1: First Quarter 2017 Review
First Quarter 2017 Review Driving sustainable growth and profitability
Slide 2: Forward-looking and non-IFRS information
Forward-looking and non-IFRS information 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 well as
Slide 3: Continued progress in our operating results
Continued progress in our operating results Strong Margins Continued Earnings Growth Increased Free Cash Flow Delivered Adjusted Increased Adjusted Performance EBITDA Margin of EPS to $0.33 per share contributing to higher 10.8% Free Cash Flow +60 bps +18% $34.8M Strategic foundation and balanced bu
Slide 4: Closed the Lightlife acquisition during the quarter
Closed the Lightlife acquisition during the quarter • Advances our strategic GROWTH AGENDA • In the U.S. plant protein category COMMANDS 38% MARKET SHARE • Plant protein is high growth and OUTPACING PACKAGED FOODS • Well positioned with a strong U.S. PLATFORM TO BUILD ON Q1 2017 Review 4
Slide 5: Strong operating earnings driving free cash flow
Strong operating earnings driving free cash flow ($ millions) Earnings Q1 2017 Q1 2016 % Change Sales 811.2 796.9 1.8% Adjusted Operating Earnings 59.0 53.6 10.2% Adjusted EBITDA 87.9 81.5 7.9% Adjusted EBITDA Margin 10.8% 10.2% Adjusted EPS 0.33 0.28 17.9% ($ millions) LIGHTLIFE BUYBACKS Balance Sh
Slide 6: Solid commercial and operating performance
Solid commercial and operating performance • Delivered sales and earnings GROWTH • Continued progression in PREPARED MEATS VOLUMES • Strong performance in FRESH VALUE-ADDED PORK RESULTS • Turbulent markets offset by BALANCED PORTFOLIO Q1 2017 Review 6
Slide 7: Becoming the sustainable protein leader
Becoming the sustainable protein leader Creating Shared Value: The intersection of societal needs and commercial opportunities • Leading in food safety, nutrition and taste • Treating our animals with care • Reducing our environmental footprint • Advancing sustainable food security Maple Leaf is uni
Slide 8: Building the path to profitable growth
Our strategies to realize our vision Building the path to profitable growth LEAD IN INVEST IN MAKE GREAT BROADEN BUILD A DIGITAL ELIMINATE SUSTAINABILITY OUR PEOPLE FOOD OUR REACH FUTURE WASTE Q1 2017 Review 8
Slide 9: Industry leading sustainability commitments and progress
Industry leading sustainability commitments and progress Advance nutrition Value our People Treat Eliminate and health and communities Animals Well Waste • Building our leadership in • Launched Maple Leaf • Implementing broad • Aggressive goal to reduce raised without antibiotics Centre for Action o
Slide 10: Our strategies will show up in many ways commercially
Our strategies will show up in many ways commercially • Leadership in sustainable meat • RAISED WITHOUT ANTIBIOTICS • NEW GREENFIELD BRAND PLATFORM • Investing in HIGH GROWTH PLANT-BASED PROTEIN • Leveraging sustainable meat TO BUILD U.S. MARKET PENETRATION • Reducing costs and improving margins BY
Slide 11: Our goal is to deliver 14-16% adjusted EBITDA margins in five years
Our goal is to deliver 14-16% adjusted EBITDA margins in five years Five Year Goal 14% to Building blocks to get there: 2016 16% Cost reduction from 10%+ investing in poultry assets Ongoing cost reduction in supply chain and SG&A Enhanced margins from 2005-2012 sustainable meat and alternative
Slide 12: Recapping a successful journey and exciting vision
Recapping a successful journey and exciting vision • Another strong quarter SALES, EARNINGS & MARGIN GROWTH • Excellent returns to REWARD OUR SHAREHOLDERS • An exciting vision to be the MOST SUSTAINABLE PROTEIN COMPANY ON EARTH • Our plans to achieve this are WELL ADVANCED • We expect the rewards to
Slide 13: Reconciliation of non-IFRS financial measures
Reconciliation of non-IFRS financial measures Adjusted Operating Earnings ($ millions) Q1 2017 Q1 2016 Net earnings 30.1 42.3 Income taxes 12.0 15.8 Earnings before income taxes 42.1 58.1 Interest expense and other financing costs 1.2 1.1 Other expense (income) 2.7 0.6 Restructuring and other relate
Slide 14: Reconciliation of non-IFRS financial measures continued
Reconciliation of non-IFRS financial measures continued Adjusted EBITDA ($ millions) Q1 2017 Q1 2016 Net earnings 30.1 42.3 Income taxes 12.0 15.8 Earnings before income taxes 42.1 58.1 Interest expense and other financing costs 1.2 1.1 Items in other expense (income) not considered representative o
Slide 15: Reconciliation of non-IFRS financial measures continued
Reconciliation of non-IFRS financial measures continued Adjusted EPS ($ per share) Q1 2017 Q1 2016 Basic earnings per share 0.23 0.31 Restructuring and other related costs 0.04 0.01 Items in other expense (income) not considered representative of 0.02 0.00 ongoing operations Change in the fair value