Maple Leaf Foods (MFI) Investor Update summary

Strategic Transaction Overview

• Maple Leaf Foods will separate into two independent public companies: a focused consumer packaged goods (CPG) business and a standalone pork company, each with its own management and growth strategy, aiming to unlock value and enable distinct growth strategies.

• The transaction will be structured as a return of capital spin-off, with Maple Leaf Foods retaining a 19.9% stake in the new Pork Company and entering into an evergreen supply agreement.

• Existing shareholders will receive pro rata shares in the new Pork Company, which will be listed on the TSX, and Maple Leaf Foods and McCain Shareholders will agree to hold their shares for 24 months post-closing.

• The transaction is expected to close in early 2025, subject to shareholder and regulatory approvals.

• An evergreen supply agreement will maintain a strategic relationship, with Maple Leaf Foods as a key shareholder and anchor customer of the pork company.

Rationale and Vision

• The separation allows each business to be properly valued and recognized in capital markets, removing constraints of the combined structure and providing clearer investor visibility.

• Maple Leaf Foods will focus on being a purpose-driven, brand-led CPG company with a vision to be the most sustainable protein company on Earth.

• The new Pork Company will operate as a global leader in sustainably produced, premium pork, leveraging its unique business model for growth.

• Both companies will maintain best-in-class sustainability practices as a core foundation.

• Timing is considered optimal due to normalization in pork markets and completion of major capital investments in the CPG business.

Business Profiles and Strategies

• Maple Leaf Foods will have a diversified protein portfolio: ~70% prepared meats, ~25% poultry, and ~5% plant protein, with leading brands in Canada and the U.S.

• The new Pork Company will process 4 million hogs annually, with potential to add 1 million more, and is a leader in Raised Without Antibiotics pork.

• CPG business will focus on brand growth, innovation, U.S. expansion, and margin expansion, leveraging a modern supply chain and leading market positions.

• The pork company will optimize underutilized capacity, pursue operational excellence, and invest in modernization and continuous improvement.

• Both companies will benefit from a supply and brokerage agreement, ensuring operational continuity and market access.