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Annual General Meeting May 16, 2025 LASSONDE INDUSTRIES INC.
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This presentation contains “forward-looking information” and the Corporation’s oral and written public communications that do not constitute historical fact may be deemed to be “forward-looking information” within the meaning of applicable Canadian securities law. These forward-looking statements include, but are not limited to, statements on the Corporation’s objectives and goals and are based on current expectations, projections, beliefs, judgments, and assumptions based on information available at the time the applicable forward-looking statement was made and considering the Corporation’s experience combined with its perception of historical trends. Forward-looking statements are typically identified by words such as “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “could”, “would”, “believe”, “plan”, “intend”, “design”, “target”, “objective”, “strategy”, “likely”, “potential”, “outlook”, “aim”, “goal”, and similar expressions suggesting future events or future performance in addition to the negative forms of these terms or any variations thereof. All statements other than statements of historical fact included in this document may constitute a forward-looking statement. In this presentation, forward-looking statements include, but are not limited to, those set forth in Section 7 – “Outlook” in the MD&A for quarter ended March 29, 2025, which also presents some (but not all) of the key assumptions used in determining the forward-looking statements. Some of the forward-looking statements in this report, such as statements concerning sales volume and sales growth rate, key commodity and input costs, expenses, including items impacting the comparability between the periods, effective tax rate, working capital, and capital expenditures and impacts of tariffs may be considered financial outlooks for the purposes of applicable Canadian securities regulations. These financial outlooks are presented to evaluate potential future earnings and anticipated future uses of cash flows and may not be appropriate for other purposes. Various factors or assumptions are applied by the Corporation in elaborating the forward-looking statements. These factors and assumptions are based on information currently available to the Corporation, including information obtained by the Corporation from third parties. Readers are cautioned that the assumptions considered by the Corporation to support these forward-looking statements may prove to be incorrect in whole or in part. The significant factors that could cause actual results to differ materially from the conclusions, forecasts, or projections reflected in the forward-looking statements contained herein include, among other things, risks associated with the following: deterioration of general macroeconomic or socioeconomic conditions, including international conflicts, such as trade conflicts (including tariffs, duties and other trade restrictions), which can lead to negative impacts on the Corporation’s suppliers, customers, and operating costs; the availability of raw materials and packaging and related price variations, more specifically for the Corporation’s key commodities; disruptions in or failures of the Corporation’s information technology systems, as well as the development and performance of technology; cyber threats and other information-technology-related risks leading to business disruptions, confidentiality, data integrity, and business email compromise related fraud; the successful deployment of the Corporation’s multi-year strategy (the “Strategy”, defined in Section 4 – “Multi Year Strategy” of the corporation’s MD&A for the quarter ending March 29, 2025), including the successful execution of its key capital projects along with the materialization of the underlying expected benefits, and the Corporation’s ability to effectively integrate any acquisitions; climate change and disasters causing higher operating costs and capital expenditures and reduced production output, or impacting the availability, quality or price volatility of key commodities sourced by the Corporation; loss of key suppliers or supplier concentration; changes made to laws and rules that affect the Corporation’s activities, particularly in matters of tax, as well as the interpretation thereof, and new positions adopted by relevant authorities; the Corporation’s ability to maintain strong sourcing and manufacturing platforms and efficient distribution channels; fluctuations in the prices of inbound and outbound freight, the impact of oil prices (and derivatives thereof) on the Corporation’s direct and indirect costs along with the Corporation’s ability to transfer those increases through higher prices or other means, if any, to its customers in competitive market conditions and considering demand elasticity; the scarcity of labour and the related impact on the hiring, training, developing, retaining and reliance of personnel together with their productivity, employment matters, compliance with employment laws across multiple jurisdictions, and the potential for work stoppages due to the non-renewal of collective bargaining agreements or other reasons; the successful deployment of the Corporation’s health and safety programs in compliance with applicable laws and regulations; serious injuries or fatalities, which could have a material impact on the Corporation’s business continuity and reputation and lead to compliance-related costs; disputes with significant suppliers; the increasing concentration of customers in the food industry, providing them with significant bargaining power, particularly on the Corporation’s selling prices; the implementation, cost, and impact of environmental sustainability initiatives as well as the cost of remediating environmental liabilities; the ability to adapt to changes and developments affecting the Corporation’s industry, including customer preferences, tastes, and buying patterns, market conditions and the activities of competitors and customers; failure to maintain the quality and safety of the Corporation’s products, which could result in product recalls and product liability claims for misbranded, adulterated, contaminated, or spoiled food products, along with reputational damage; risks related to fluctuations in interest rates, currency exchange rates, liquidity and credit, stock price and pension obligations; the incurrence of restructuring, disposal, or other related charges together with the recognition of impairment charges on goodwill or long lived assets; the sufficiency of insurance coverage; and the implications and outcome of potential legal actions, litigation or regulatory proceedings to which the Corporation may be a party. The Corporation cautions readers that the foregoing list of factors is not exhaustive. 2 Caution Regarding Forward-Looking Statements
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The Corporation’s ability to achieve its sustainability targets and goals is further subject to, among other factors, its ability to access and implement all technology necessary to achieve them as well as the development, deployment, and performance of technology, and environmental regulation. The Corporation’s ability to achieve its sustainability commitments is further subject to, among other factors, its ability to leverage its supplier relationships. The assumptions, expectations, and estimates involved in preparing forward-looking statements and risks and uncertainties that could cause actual results to differ materially from forward-looking statements are discussed in the Corporation’s materials filed with the Canadian securities regulatory authorities, including information about risk factors that can be found in Section 21 - “Uncertainties and Principal Risk Factors” of the Corporation’s MD&A for the year ended December 31, 2024. Readers should review this section in detail. All forward-looking statements included herein speak only as of the date hereof. Unless required by law, the Corporation does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements contained herein are wholly and expressly qualified by this cautionary statement. 3 Caution Regarding Forward-Looking Statements (cont’d)
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To provide more information for evaluating the Corporation’s performance, the financial information in the financial documents contains certain supplementary financial measures and certain data or ratios that are not financial measures defined under IFRS (“non-IFRS measures”), which are also calculated on an adjusted basis to exclude specific items impacting the comparability between periods. The Corporation believes that providing these non-IFRS measures is useful to management, investors, and analysts, as they provide additional information to analyze its performance and financial position. Refer to the section “Financial Measures Not in Accordance with IFRS” in the MD&As of Lassonde Industries Inc. for the fiscal year ended December 31, 2024 and for the First Quarter ended March 29, 2025. A reconciliation between these measures and IFRS for fiscal year 2023 and 2024 as well as for the first quarter of 2025 are also provided in the last section of this presentation. 4 Financial Measures not in Accordance with IFRS The following supplementary financial measures are used in the Corporation’s financial disclosures: ● Days of Sales Outstanding; ● Days of Inventory Outstanding; and ● Days of Payables Outstanding. The following non-IFRS financial measures are used in the Corporation’s financial disclosures: ● Adjusted Operating Profit; ● EBITDA and Adjusted EBITDA; ● Adjusted Profit Attributable to the Corporation’s Shareholders; ● Operating Working Capital; ● Capital Employed; and ● Sources of Capital. The following non-IFRS ratios are used in the Corporation’s financial disclosures: ● Adjusted Operating Profit margin; ● EBITDA margin and Adjusted EBITDA margin; ● Adjusted EPS; ● Days Operating Working Capital; ● Return on Capital Employed; and ● Net Debt to Adjusted EBITDA.
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5 Financial Measures not in Accordance with IFRS (cont’d) Adjusted Operating Profit is a financial measure used by the Corporation to compare operating profit between periods by excluding items impacting comparability. Adjusted operating profit is calculated by adjusting the operating profit with items considered by management as impacting the comparability between periods. EBITDA and Adjusted EBITDA EBITDA is a financial measure used by the Corporation and investors to assess the Corporation’s capacity to generate future cash flows from operating activities and pay financial expenses. Adjusted EBITDA is a financial measure used by the Corporation to compare EBITDA between periods by excluding items impacting comparability. EBITDA consists of the sum of operating profit and of the “depreciation of property, plant and equipment and amortization of intangible assets” item and “(Gains) losses on capital assets,” item, as shown in the Consolidated Statement of Cash Flows. Adjusted EBITDA is calculated by adjusting the EBITDA with items considered by management as impacting the comparability between periods. Adjusted Profit Attributable to the Corporation’s Shareholders and Adjusted EPS are financial measures used by the Corporation to compare profit attributable to the Corporation’s shareholders and EPS between periods by excluding items impacting comparability. They are calculated by adjusting them with items considered by management as impacting the comparability between periods. Net Debt to Adjusted EBITDA is a financial measure used by the Corporation to assess its ability to pay off existing debt and define available borrowing capacity. To calculate the net debt to adjusted EBITDA ratio, net debt is divided by the sum of adjusted EBITDA from the last four quarters. Net debt represents long-term debt, including the current portion, less the “Cash and cash equivalents” item, as they are presented in the Corporation’s Consolidated Statement of Financial Position. Days Operating Working Capital is a financial efficiency measure used by the Corporation to represent the number of days of sales tied up as operating working capital. To calculate this financial measure, operating working capital is divided by the last quarter’s sales, as they are presented in Section 8 – “Analysis of the Consolidated Results” of the Q1-2025 MD&A, and multiplied by 91 days. Operating working capital consists of the sum of trade accounts receivable, discounts receivable and inventories, less trade payables and accrued expenses and trade spending, as they are presented in the accompanying notes to the Corporation’s interim consolidated financial statements. Days of Sales Outstanding (“DSO”) is a financial efficiency measure used by the Corporation to represent the average number of days that it takes the Corporation to collect payment for a sale. This financial measure is obtained by dividing trade accounts receivable less trade spending, as they are presented in the accompanying notes to the Corporation’s interim consolidated financial statements by the last quarter’s sales, as they are presented in Section 8 – “Analysis of the Consolidated Results” of the Q1-2025 MD&A, and multiplied by 91 days. Days of Inventory Outstanding (“DIO”) is a financial efficiency measure used by the Corporation to represent the average number of days the Corporation takes to turn its inventory into sales. To calculate this financial measure, inventories, as they are presented in the Consolidated Statement of Financial Position, are divided by the last quarter’s cost of sales, as it is presented in Section 8 – “Analysis of the Consolidated Results” of the Q1-2025 MD&A, and multiplied by 91 days. Days of Payable Outstanding (“DPO”) is a financial efficiency measure used by the Corporation to represent the average number of days the Corporation takes to pay its accounts payable and accrued liabilities. This financial measure is obtained by dividing trade payables and accrued expenses less discounts receivable, as they are presented in the accompanying notes to the Corporation’s interim consolidated financial statements by the last quarter’s cost of sales, as it is presented in Section 8 – “Analysis of the Consolidated Results” of the Q1-2025 MD&A, and multiplied by 91 days.
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Notice of Proxy, Documents and Scrutineer’s Report
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7 Election of Directors Nathalie Lassonde Executive Chair of the Board of Directors Lassonde Industries Inc. Pierre-Paul Lassonde Corporate Director Denis Boudreault Corporate Director Paul Bouthillier Corporate Director Luc Doyon Corporate Director Pierre Lessard Corporate Director Nathalie Pilon Corporate Director Guy Bélanger Corporate Director
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Appointment of Auditors
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9 2024 was an excellent year for Lassonde Heartfelt thanks to our employees for their passion and devotion to offer consumers quality and tasty products • Record sales of $2.6 billion • Significant profitability improvement
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Pierre-Paul Lassonde passed the baton to the next generation • Devoted more than 60 years to the family business • Continues to sit on the Board of Directors Nathalie Lassonde named Executive Chair of the Board • Committed to perpetuate Lassonde’s values of integrity, respect, community and accountability 10 Vince Timpano appointed Chief Executive Officer • Joined Lassonde in 2020 • Strategic vision, inspirational leadership, and pivotal role in the successful deployment of our strategy Key executive leadership changes
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2 Board members did not solicit new mandates Guy Bélanger nominated to the Board 11 Lassonde Board now composed of 8 directors Chantal Bélanger Board member for 20 years and Chair of the Audit Committee Michel Simard Board member since 2018 after more than 30 years with Lassonde’s executive management team 6 of the current 8 directors are independent • Brings new competencies and a different perspective • Wide experience in the food business, particularly in terms of improving productivity and deploying new technological solutions
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Leveraging growing desire of Canadian consumers to support local businesses Oasis brand is an integral part of the campaign • Highlighting local heritage • All products bottled in Canada 12 New Marketing Campaign Celebrating our Canadian and Quebec roots as well as our brands
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Business Overview
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Sales reached $2.6 billion Up 12.4% year-over-year Strong profitability improvement Operating profit improved 29% year-over-year Growth contributions from all divisions Executed our growth strategy • Completed a key acquisition to broaden specialty food offering • Announced new investment projects to fortify competitiveness of our U.S. beverage manufacturing network • Strengthened market leadership in Canada 14 FY24 Performance Record sales and profitability improvement
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Over a century of experience catering to needs of consumers and customers Oasis named most trusted juice brand in Canada for the third consecutive year Supported by strong national and regional brands 15 Canadian Beverages Leading producer of fruit juices and drinks in Canada
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Gained further market share in 2024 • Diversified product portfolio • Extensive market reach • Long-standing customer relationships Momentum has continued in early 2025 Driven by new products, strong merchandising and “Buy Canadian” sentiment Executed pricing strategy Amid cost inflation affecting orange juice and concentrate Mitigated a portion of commodity inflation Through innovation, effective promotions plans and productivity improvements 16 Canadian Beverages Strengthening our leading position
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New “bag-in-a-box” aseptic packaging line for beverage dispensers • Investment of $10M at one of our Rougemont plants • Operations ahead of schedule with a positive market response Packaging format ideal for wide range of customers • Quick service restaurants and convenience stores • Bulk packaging formats to support sales to industrial customers Significant step forward to expand our presence • Deliver customizable beverage solutions to Food Service channel • Expand our reach with industrial customers 17 Canadian Beverages Growing the Food Service channel
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Gained market share through 10% volume growth Optimizing conversion costs by improving efficiency Additional capacity to support growth Commissioning of new single-service line in North Carolina Single-serve growth opportunities • Main volume driver of branded operations • Important tool to capture opportunities in the private label market • Key priority to expand presence in away-from-home channel 18 U.S. Beverages Building back volume following 2023 portfolio simplification
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19 Investing US$200M for construction of New Jersey facility • Fortify competitive position in U.S. northeast region • Improve operating efficiency and deliver incremental volume at lower cost • Expect to transfer existing production activities beginning in 2026 • Transition should be completed in 2027 Significant capital investments as part of multi-year program Investing additional US$20M in North Carolina plant to expand its role as strategic production hub • Bringing back in-house production assets deployed at a co-packer • Provides new juice box production capabilities in the U.S. • On schedule to be completed in H2-2025 • Unlocks additional volume for U.S. branded products and offers more flexibility to meet incremental demand U.S. Beverages New Jersey
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Acquisition of Summer Garden Food Manufacturing • Nearly doubled size in specialty food market • Expanded reach in the U.S. • Enhanced position as a leading manufacturer of retort-based products • Accessed diversified growth platforms through Little Italy in the Bronx, Gia Russa and G Hughes Legacy business: solid sales growth in retort-based products Mainly premium glass jar soups and sauces as well as strong performance in broth segment 20 Specialty Food 2024 was a pivotal year for Lassonde
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21 Snacks Gaining shares as 2nd largest branded fruit snack player in Canada Producing 100% fruit strips, bars and bites sold under Fruit to Go and Fruit Source Solid year in 2024
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Creation of North American Beverage Division Comprises 2 U.S. beverage business units, beverage business unit in Canada, and North American Food Service business unit Amanda Burns appointed Chief Commercial Officer, North American Beverages • Previously President of U.S. Private Label at Lassonde • Played a key role in developing and executing Project Eagle 22 Gabriela Arrillaga promoted to Chief Marketing Officer, North American Beverages • Mandate includes establishing best practices, capturing synergies, and building a growth-oriented portfolio • Remains General Manager, U.S. National Brands Organizational Changes
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Elizabeth Hill promoted to General Manager, Private Label Beverages U.S. Extensive experience in sales and marketing, building dynamic teams, and stimulating sales growth Martin Lauzière promoted to General Manager, Beverages Canada • Has held various senior management positions • Last 2 years as Senior VP of Financial Planning and Analysis and Performance Management 23 Organizational Changes (cont’d)
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Financial Review Note: Numbers have been rounded to lighten the presentation
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Sales ($B) Key Highlights Excluding favourable FX impact and acquisitions(1), sales were up 7.1% Increased sales volume in U.S., for both private label and branded products Selling price adjustments in Canada Unfavourable change in U.S. sales mix 25 (1) Summer Garden acquisition reflected in Lassonde’s fiscal 2024 results since Aug. 8, 2024, while full-year contribution from Diamond Estates compared to six weeks in 2023. (2) Approximate amount of reported sales, if the business combination had been completed on January 1, 2024. FY24 Sales 12.4% growth driven both by U.S. and Canada 2.3 2.6 2.7 2023 2024 2024 Pro Forma +12.4% (2)
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Gross Profit ($M) & Gross Margin Selling & administrative expenses ($M) 26 FY24 Margins Operating Profit ($M) & Operating Margin Increase in margins 588 698 2023 2024 135 145 175 198 Operating Profit Adj. Operating Profit 2023 2024 452 523 2023 2024 25.4% 26.8% 5.8% 6.7% 6.2% 7.6% Key Highlights Higher gross profit • Increased sales volume related to share gains • Positive impact of selling price adjustments • Optimisation of conversion costs Partially offset by • Higher input costs, orange juice and concentrates Selling & administrative expense variation • Higher transportation and warehousing costs for finished goods • Summer Garden acquisition-related expenses • Increase in certain administrative expenses Partially offset by • Lower performance-related compensation expenses (1) +18.7% (1) Financial measure not in accordance with IFRS. Please refer to sections on Financial Measures not in Accordance with IFRS at the beginning and at the end of this presentation.
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EBITDA ($M) Profit Attributable to the Shareholders ($M) 27 (1) Financial measure not in accordance with IFRS. Please refer to sections on Financial Measures not in Accordance with IFRS at the beginning and at the end of this presentation. FY24 Profitability EPS ($) Increase across all profitability metrics (1) 198 207 255 276 EBITDA Adj. EBITDA 88 90 114 130 Profit att. to the shareholders Adj. profit att. to the shareholders 12.83 13.18 16.73 19.05 EPS Adj. EPS (1)(1) (1) (1)
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Highlights • $241M net increase in revolving operating credit to finance Summer Garden Partially offset by • $27M dividend payments in 2024 Highlights • $325M to acquire Summer Garden • $116M CAPEX in 2024 Cash Flow from Operating Activities ($M) Cash Flow from (used by) Financing Activities ($M) 28 FY24 Cash Flows Cash Flow used by Investing Activities ($M) Healthy cash flow management Highlights • Cash flow from acquisitions • Higher EBITDA • Net withdrawal from defined benefit pensions plans Partially offset by • Lower cash generation from working capital • Increase in net income tax and interest paid 225 234 2023 2024 (92) 217 2023 2024 (115) (441) 2023 2024 (1) Financial measure not in accordance with IFRS. Please refer to sections on Financial Measures not in Accordance with IFRS at the beginning and at the end of this presentation. (1)
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Evolution in FY2024 ($M) Evolution in the Past 10 Years ($M) 29 (1) Financial measure not in accordance with IFRS. Please refer to sections on Financial Measures not in Accordance with IFRS at the beginning and at the end of this presentation. FY24 Net Debt (1) Ratio expected to rise between 2.0x and 2.5x until end of 2026, reflecting multi-year capital investment program Higher net debt due to Summer Garden acquisition 191 218 201 456 449 0.9x 1.0x 0.9x 1.8x 1.6x 0 100 200 300 400 500 600 Dec. 31, 2023 March 30, 2024 June 29, 2024 Sept. 28, 2024 Dec. 31, 2024 Net Debt Net Debt to Adjusted EBITDA 370 341 252 153 317 263 209 175 247 191 449 3.0x 2.1x 1.6x 0,0 100,0 200,0 300,0 400,0 500,0 600,0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net Debt Net Debt to Adjusted EBITDA Summer Garden acquisition Apple & Eve acquisition Old Orchard acquisition Sun-Rype acquisition Summer Garden acquisition
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Sales ($M) Gross Profit ($M) 30 (1) Financial measure not in accordance with IFRS. Please refer to sections on Financial Measures not in Accordance with IFRS at the beginning and at the end of this presentation. FY25 Q1 Results Profit Attributable to the Shareholders ($M) & EPS 23% sales increase with stable profit margin 570 700 2024 2025 24 2525 27 Profit att. to the shareholders Adj. profit att. to the shareholders 2024 2025 150 183 2024 2025 26.2% 26.2% $3.49 $3.60 $3.68 $4.00 Key Highlights Higher sales • Summer Garden acquisition • Favourable FX impact • Higher sales volume in U.S. • Selling price adjustments in Canada Higher gross profit • Better margins from Summer Garden activities Partially offset by • Higher input costs, mainly oranges and to a lesser extent, pineapple concentrates and apples (1) +22.8%
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Outlook for 2025
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• Building back private label volume • Ramping up North Carolina single-serve line • Pursuing capacity expansion initiatives • Innovation • Channel expansion • Targeted marketing investments • Productivity improvements 32 2025 Outlook • Continue Summer Garden integration • Assess potential expansion of Ohio facility Top business priorities by division U.S. Beverages Canadian Beverages Specialty Food Persisting economic and geopolitical uncertainties require vigilance and adaptability
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33 Full-year contribution from Summer Garden Run-rate effect of existing and planned selling price adjustments Sequential sales volume improvement • Pace of U.S. build-back plan • Additional volume from new single-serve line in North Carolina Targeting ~10% sales growth (excl. FX) Monitoring two key factors in current environment Fluctuating commodity prices Importance of innovation to reduce exposure Threat of a North American trade dispute • Prepared mitigation measures to maintain a strong position • Long-standing strategy of producing close to our customers Closely monitoring changes in consumer food habits and demand elasticity 2025 Outlook Ohio
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2024 was an excellent year for Lassonde with record sales and profitability improvement Pivotal year for our specialty food division with Summer Garden acquisition FY25 is off to a good start, despite some uncertainty On track to reach our $3B sales target by FY26 34 Many thanks to our • Lassonde employees • Business partners • Customers and suppliers • Board of Directors • Shareholders In summary
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Question Period
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Financial Measures not in Accordance with IFRS (cont’d)
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37 Financial Measures not in Accordance with IFRS Items impacting the comparability between periods These tables contain a list, description and quantification of items impacting the comparability of the financial performance between the periods.
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38 Financial Measures not in Accordance with IFRS (cont’d) Adjusted Operating Profit EBITDA and Adjusted EBITDA
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39 Financial Measures not in Accordance with IFRS (cont’d) Adjusted Profit Attributable to the Corporation’s Shareholders and Adjusted EPS
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40 Financial Measures not in Accordance with IFRS (cont’d) Net Debt to Adjusted EBITDA
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41 Financial Measures not in Accordance with IFRS (cont’d) Days Operating Working Capital Days of Sales Outstanding
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42 Financial Measures not in Accordance with IFRS (cont’d) Days of Inventory Outstanding Days of Payable Outstanding
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