Big Rock Brewery (BR) Investor presentation summary

Business profile and portfolio

• Founded in Calgary in 1985; moved to its current southeast Calgary facility in 1996 and began trading on the TSX in 1997.

• Portfolio spans beer, cider, RTDs and non-alcoholic beverages, including Signature, value and recent innovation brands.

• Owned assets include an $8M canning line installed in 2022 and a cartoner added in 2024 for $1.5M; real estate value was $42.7M and headcount exceeded 120.

Turnaround and profitability plan

• Turnaround actions include new management, RTD co-packing, supplier cost contracts, non-core asset rationalization, investment in legacy brands and new products, and added cartoning capability.

• New leadership brings over 97 years of combined beverage-industry experience; CEO David Kinder joined in January 2024 with 36 years of experience.

• 2025 adjusted EBITDA is projected at $5.2M, versus a 2024 estimate of $(1.4)M; the bridge includes $3.4M from new contracts, $1.3M from cartoning, $0.8M from input costs, $0.8M from rationalization and $0.3M other.

Growth opportunities and cost savings

• Canadian RTD and cider sales grew at an 11.8% CAGR from 2014 to 2023, supporting the focus on these categories.

• Two multiyear co-pack contracts secured in 2024 contribute over 100,000 HL annually; the projected 2025 marginal EBITDA impact is $3.4M, with record co-pack volumes expected in 2025.

• A proposed $2.1M in-line blending system is expected to enable on-demand RTD production and has a 1.5-year payback based on projected 2025 volumes.

• Annual can-cost savings of $794K were negotiated on spend exceeding $10.3M; a 1% reduction across remaining addressable costs could yield $263K in annual savings.

• Non-core asset rationalization is expected to generate nearly $2M in annual cash savings from FY2026 onward; listed actions include the Edmonton warehouse and Vancouver and Toronto locations.

• A $1.6M cartoner investment is expected to save at least $1.3M annually from 2025, while improving quality and shortening the supply chain.