Slide 1: Second Quarter 2018
Second Quarter 2018 Advancing our vision to be the most sustainable protein company on earth
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: Headline: Food renovation, challenging markets & margins above strategic target
Headline: Food renovation, challenging markets & margins above strategic target Sales up 1.1% adjusted for IFRS 15, FX & acquisitions Adjusted EBITDA margin of 10.1%, adjusted EPS of $0.34 per share Launched Maple Leaf food and brand renovation Volatile market environment in hog production SECOND QU
Slide 4: Margins operating in a narrow bandwidth
Margins operating in a narrow bandwidth Adjusted EBITDA Margin – Historical Performance 10 consecutive quarters of above 10% adjusted EBITDA 10% margin High value-added portfolio mix 5% is more stable and balanced Natural bandwidth of +/- 100 0% basis points Identified path to achieve 14% to 16% adj
Slide 5: Second quarter financial metrics
Second quarter financial metrics $909.2 10.1% Sales in Millions Adjusted EBITDA margin $0.34 $(21.1) Adjusted EPS Net (debt) cash per share 5 5 Q2 2018 BUSINESS AND FINANICAL REVIEW – MAPLE LEAF FOODS | JULY 26, 2018
Slide 6: Improved operating and commercial performance
Improved operating and commercial performance Material improvements in supply chain performance Improvement in prepared meats commercial performance Higher volumes in fresh pork and value- added poultry Continued growth in the U.S. market Growth in the Lightlife and Field Roast realizing strong Unit
Slide 7: The real food movement!
The real food movement! Launch of sweeping food and brand renovation 66% of skus converted at quarter-end Massive introductory campaign: >75M impressions Significant start-up investment Tremendous qualitative feedback; too early to calibrate Views from the starting line: Maple Leaf: Significant mess
Slide 8: Managing rapid growth in plant protein
Managing rapid growth in plant protein Double-digit category growth Building supply chain capabilities to meet demand Expanding into Canadian market Continued investment in people, innovation Lightlife and Field Roast and brands continue to participate in rapid category growth. Q2 2018 BUSINESS AND
Slide 9: Expanding leadership in value-added sustainable poultry
Expanding leadership in value-added sustainable poultry Agreement to acquire assets of Cericola Farms Leader in fresh air-chilled, value-added retail ready product Expanded RWA portfolio New capabilities in organic poultry Capacity in value-added processing capabilities, complementing existing capac
Slide 10: Advancing our vision to be the most sustainable protein company on earth
Advancing our vision to be the most sustainable protein company on earth Released 2017 Sustainability report in line with global best practice Ahead of target on environmental footprint reduction goals Investment in LED lighting, more to come Now more than 38,000 sows in enhanced open housing Micros
Slide 11: Five things that will create material shareholder value
Five things that will create material shareholder value 1 Our leadership in sustainability 2 Investing in our poultry assets 3 Our food renovation 4 Substantial growth in plant proteins 5 Our cost culture Inspiring strategies to create shared value. 11 Q2 2018 BUSINESS AND FINANCIAL REVIEW – MAPLE L
Slide 12: Reconciliation of non IFRS measures
Reconciliation of non IFRS measures Adjusted Operating Earnings Q2 2018 Q2 2017 2018 2017 ($ millions) Net earnings 34.9 37.3 62.8 67.4 Income taxes 13.1 14.1 24.6 26.1 Earnings before income taxes (i) 48.0 51.5 87.4 93.5 Interest expense and other financing costs 1.9 1.3 3.5 2.6 Other (income) expe
Slide 13: Reconciliation of non IFRS measures
Reconciliation of non IFRS measures Adjusted EBITDA Q2 2018 Q2 2017 2018 2017 ($ millions) Net earnings 34.9 37.3 62.8 67.4 Income taxes 13.1 14.1 24.6 26.1 Earnings before income taxes (i) 48.0 51.5 87.4 93.5 Interest expense and other financing costs 1.9 1.3 3.5 2.6 Items in other expense (income)
Slide 14: Reconciliation of non IFRS measures
Reconciliation of non IFRS measures Adjusted EPS Q2 2018 Q2 2017 2018 2017 ($ per share) Basic earnings per share 0.28 0.29 0.50 0.52 Restructuring and other related costs 0.01 0.03 0.02 0.07 Items included in other expense (income) not considered representative of 0.00 0.00 0.03 0.03 ongoing operat