MTY Food Group (MTY) Investor presentation summary

Scale and portfolio

• Operated more than 80 brands across 6,704 locations in 40 countries; LTM Q1-22 system sales were $3.8B.

• Top 10 brands generated 76% of LTM Q1-22 system sales; frozen treats and smoothies represented 33% of locations.

• Franchise operations accounted for 61% of LTM Q1-22 revenue; the network was 54% U.S. locations, 39% Canadian and 7% international.

• More than 50 acquisitions completed since 1999; the stated investment thesis emphasized disciplined acquisitions, recurring franchise revenue and cash generation.

Growth strategy and market conditions

• Priorities included expanding Canadian brands in the U.S., pursuing international master franchise opportunities and upgrading concepts and menus.

• Digital priorities included new applications, online ordering capabilities, and integrating gift card and loyalty platforms.

• Acquisition criteria included fair pricing, additional offering depth and breadth, and transactions immediately accretive to EBITDA.

• Management cited intense value and innovation competition, wage and supply-cost pressure, consolidation, delivery and meal-kit shifts, and the rising importance of digital ordering.

COVID-19 and network update

• As of April 8, 2022, sales had returned to pre-pandemic levels for many brands and were improving for others; 67 locations remained temporarily closed as of April 7.

• Q1-22 location closures affected 225 locations for one or more days; 82 were temporarily closed at quarter start and 69 at quarter end.

• Q1-22 ended with 6,704 locations, down from 6,949 a year earlier; system sales increased to $885.7M from $761.1M.

• Quarterly net location closures averaged 1% of locations; Q1-22 net closures were 15, or 0.2% of locations.

• Labour shortages and supply-chain disruptions were expected to remain near-term challenges; the dividend had been restored and the NCIB renewed through July 2022.