Maple Leaf Foods : Q1 2023 Investor presentation

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 well as beliefs and assumptions made by the Company related to its business, operations, expectations and external environment. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Specific forward-looking information in this presentation may include, but is not limited to, statements with respect to: the future performance of the business, including future financial objectives, goals and targets, category growth analysis, expected capital spend and expected SG&A expenditures, global pork market dynamics, Japan export market margin outlook, labour markets, inflationary pressures (including the ability to price for inflation), innovation, market share, category mix, and supply management; the Company's strategies and the intended outcomes of those strategies; the Company's sustainability initiatives; the Company's sustainability performance; economic environment, including the implications of inflationary pressures on customer and consumer behaviour, supply chains disruption, global conflicts and competitive dynamics on the Company's performance; expected future cash flows and the sufficiency thereof, sources of capital at attractive rates; and availability of capital to fund growth plans, operating obligations and dividends.

The Company's expectations with respect to the growth of its business, expectations for performance, anticipated growth in sales, Adjusted EBITDA margin, gross margin, the expected contribution of capital projects (and the timing of same), and magnitude of impact of factors affecting performance are based on a number of assumptions, estimates and projections, including but not limited to: the impact of global pork market dynamics, global economic volatility, supply chain constraints and effectiveness, inflation, commodity prices, ramp-up and contribution from capital projects, hog and pork processor margins, demand for pork and access to export markets, poultry markets and supply management, cybersecurity risks to operational and financial performance (including time and cost to recover from an incident), timing and effect of pricing action, foreign exchange rates, market share, growth in demand for sustainable meats, meat alternatives and branded products, customer and consumer behaviour, competition, litigation exposure, future financing options, renewal of credit facilities, compliance with credit facility covenants, implications of foreign animal disease, availability of labour and labour performance considerations, and the effectiveness of the Company's sustainability initiatives.

The Company's assumptions about its capital projects, expectations with respect to returns on these projects, future capital spend and the Company's ability to deleverage its balance sheet are based on a number of assumptions, including but not limited to: customer and consumer demand; ongoing successful ramp-up of the projects, ability to generate improved cash flow, willingness of lenders to continue to extend credit on commercially reasonable terms, supply chain constraints and effectiveness, quality of estimating, ability to achieve operational efficiencies and reduce start up expenses, demand for products, preventative maintenance needs, future operational and strategic investment opportunities, availability and cost of materials, as well as labour rates and availability, contractor performance and productivity levels.

These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. These assumptions have been derived from information currently available to the Company, including information obtained by the Company from third-party sources. These assumptions may prove to be incorrect in whole or in part. In addition, actual results may differ materially from those expressed, implied, or forecasted in such forward-looking information, which reflect the Company's expectations only as of the date hereof. Please refer to the sections entitled "Risk Factors" and "Forward-Looking Statements" in the Company's Management Discussion and Analysis for the year ended December 31, 2023 and for the quarter ended March 31, 2024 for additional detail.

In addition, this presentation contains the following non-IFRS measures:

Adjusted Operating Earnings: Earnings before income taxes and interest expenses adjusted for items that are not considered representative of ongoing operational activities of the business, and items where the economic impact of the transactions will be reflected in earnings in future periods when the underlying asset is sold or transferred.

Adjusted Earnings per Share: Defined as basic earnings per share adjusted for all items that are not considered representative of ongoing operational activities of the business, and items where the economic impact of the transactions will be reflected in earnings in future periods when the underlying asset is sold or transferred.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization: Defined as Adjusted Operating Earnings plus depreciation and intangible asset amortization, adjusted for items included in other expense that are considered representative of ongoing operational activities. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by sales.

Net (Debt) Cash: Defined as cash and cash equivalents, less long-term debt and bank indebtedness.

Construction Capital: Defined as investments and related financing charges in projects over $50.0 million that are related to longer-term strategic initiatives, with no returns expected for at least 12 months in the future and the asset will be re- categorized from Construction Capital once operational.

Free Cash Flow: Defined as cash provided by operations, less Maintenance Capital (defined as non-discretionary investment required to maintain the Company's existing operations and competitive position) and associated interest paid and capitalized.

Please refer to the Company's Management and Discussion and Analysis for the quarter ended March 31, 2024 (as filed on SEDARplus) for additional information on non-IFRS financial measures.

2024 Priorities

1. Drive Adjusted EBITDA margin expansion toward 14% - 16% target, in normal market conditions
2. Harvest the remaining benefits from our large capital projects, London Poultry and the Bacon Centre of Excellence
3. Adapt brand strategies to the evolving consumer environment, to restore volume and mix in our brand-centricPrepared Foods Business
4. Complete the integration of plant protein business, aligning our team to focus on Canadian growth, while accelerating U.S. platform expansion
5. Sharpen our cost focus and competitive edge
6. Strengthen the Balance Sheet

Business Results

Q1 2024

Today's key messages

Q1 Adjusted EBITDA increased 55% year over year to $116 million

• Q1 margins increased 370 bps year over year to 10.1%, with contributions from both meat and plant protein
• Meat protein Adjusted EBITDA margin improved to 10.8%, an increase of 310 bps versus last year

Improvement in performance was largely inline with expectations

• Prepared meats volume and sales performance improved, reflecting the strength of our brand portfolio
• While compressed pork markets continued, they have started to show improvement
• Transitory imbalance in supply-managed poultry market continued; expected to improve throughout the year
• Plant protein category headwinds continued; integration of plant protein business underway

Building momentum toward realizing our full business potential

• Focus remains squarely on executing the Blueprint and delivering remaining capital project benefits
• Continuing to expect global protein markets to progressively improve as 2024 unfolds

2024 Outlook and priorities on track and unchanged

• Expect low-to-midsingle-digit sales growth with Adjusted EBITDA margin expansion from 2023 levels
• Disciplined approach to capital management and free cash flow generation driving ongoing deleveraging

Adjusted EBITDA margin target remains 14% - 16%, inclusive of plant protein, in normal market conditions