Investor Presentation February 2013 Henry Demone, CEO Kelly - PowerPoint PPT Presentation

Investor Presentation February 2013 Henry Demone, CEO Kelly Nelson, CFO 1

Disclaimer Certain statements made in this presentation are forward-looking and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate and may differ materially from actual future events or results. Actual results or events may differ materially from those predicted. Certain material factors or assumptions were applied in drawing the conclusions as reflected in the forward-looking information. Additional information about these material factors or assumptions is contained in High Liner's annual MD&A and is available on SEDAR (www.sedar.com). 2

Listings Data* TSX: HLF Recent Price: $34.96 52-Week Range $19.65 - $39.00 Shares Outstanding ~15.1million Quarterly Dividend 1 $0.15 Current Yield 1 1.7% Total Market Cap $529 million * Recent prices as at February 22, 2013 1 Based on the dividend rate effective March 1, 2013 3

Achieving Our Vision Financial Highlights: • Strong sales, adjusted EBITDA, and adjusted net income • Creating value for shareholders – increased share price / dividends Operational Highlights: • Completed the acquisition of Icelandic USA in December 2011 • Completed integration of Icelandic USA in November 2012 • Closed two plants Dec 12/ Jan 13 Recognition for New Products: • Voted Best New Product by Canadian Living (4 years in a row) • Frozen Fish / Prepared Meal Category • Pan Sear, Market Cuts, Flame Savours 4

Our Business Model Broadest market reach in industry Market leading brands Diversified global procurement Frozen food logistics expertise Innovative product development 5

The Icelandic USA Acquisition The Transaction: Purchase price of US$232.7 (1) million in cash • • Icelandic USA LTM Sales $268 million; pro forma Adjusted EBITDA $29 million (2) • Was immediately accretive to adjusted earnings Synergies: • Estimated ongoing annual synergies of $18 + million • $9 million 2012 + $9 million 2013 • Plant optimization, procurement , SG&A savings • Complementary products, customer base, and geography • Additional synergies of $2 mm to come from closure of Burin • Integration completed ahead of schedule (1) Plus seasonal working capital (~ $250 million total). (2) Proforma Adjusted EBITDA includes pro forma freezer project savings. Adjusted EBITDA is LTM September 2011. 6

Platforms for Future Growth Icelandic USA: • Leading provider of value-added seafood products and high-quality Icelandic fillets to U.S. food service and retail customers • Strong brand portfolio – industry reputation for quality High-quality Assets: • 150,000 sq-ft plant in Newport News, VA serves all 50 states • Annual capacity 80-90 M lbs incl. new freezer storage operational as of July 2011 • Highly leverageable platform positioned for expansion • Strategic procurement operations in China 7

Rationalized Production Capacity • Reduced from 6 plants to 4 • Low cost manufacturing footprint 8

Synergies from Combined Operations The Combined Operations: • Creates leading North American value-added seafood supplier • Leader in NA food service, Canadian branded retail, and NA retail private label • Strong position in US retail by volume (1) • Shift in revenue mix creates strong U.S. growth platform • Adds strategic sourcing capabilities in Asia and Iceland HLF (Pre-Icelandic) HLF (Post-Icelandic) Retail & Retail & Customer Other 31% Other 40% Food Food Service Service Base* 69% 60% Other 1% Canada Canada Sales by 32% USA & 44% Mexico USA 55% Geography* 68% (1) Including 2 brands, private label and clubs * Based on calendar 2011 sales 9

Financial Review 10

Fiscal 2012 in Review Another year of strong performance Year was marked Success attributed to: by integration, • New products significant • Integration of increase in stock Icelandic value, Flame • Production Savours, change rationalization in reporting currency to USD 11

Sales in US$000s $943 mm $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- 2006 2007 2008 2009 2010 2011 2012 12

EBITDA in US$000s $91.7 mm *Proforma includes additional $9 mm of synergies Standardized EBITDA Adjusted EBITDA (1) : Standardized EBITDA , , excluding impairment of PPE, business acquisition and integration expenses, gains or losses on disposal of assets, and the increase in cost of goods sold relating to inventory acquired from business acquisitions, above its book value Adjusted EBITDA (2) : Adjusted EBITDA (1) excluding stock-based compensation expense 13

ROE and Diluted EPS (US$) $3.00 20.0% 18.0% $2.50 16.0% 14.0% $2.00 12.0% $1.50 10.0% 8.0% $1.00 6.0% 4.0% $0.50 2.0% $0.00 0.0% ROE Diluted EPS is Net income divided by the average diluted number of shares Adjusted EPS (1) based on Adjusted Net Income is net income excluding the after-tax impairment of PPE acquisition and integration expenses, the increase in cost of goods sold relating to inventory acquired from business acquisitions over its book value, non-cash expense from revaluing an embedded derivative associated with the long-term debt LIBOR floor , marking-to- market an interest rate swap related to the embedded derivative, the write off of deferred financing charges on the re-pricing of the Term Loan and withholding tax related to inter-company dividends Adjusted EPS (2) is Adjusted EPS (1) excluding stock-based compensation expense (*) In accordance with Canadian GAAP – Not restated (“) for comparison preference shares treated as common equity before their conversion in 2008 14 **Proforma includes additional $9 mm of synergies

Financial Review 2012 Adjusted Performance against Targets Actual Target ROE 17.6% 18.0% ROAM (ROCE) 13.4%(1) 15.0% EBIT as % sales 7.9% 8.0% PF Debt to Less than 3.4x EBITDA 3.00x (1) ROAM = 15% proforma for 2013 synergies ( + $9mm) ROE, ROAM and EBIT based on adjusted amounts, see previous slides 15

Dividend History (Cdn$) Annual Equity Dividends per Share $0.70 $0.60 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- 2003 2004 2005 2006 2007 2008 2009 2010 2011 20122013 P * Common shares up to September 15, 2007; Common and Non-Voting shares from December 15, 2007 to present 16

YTD 2012 – Strong Momentum • Integration of Icelandic USA completed ahead of schedule • Now expecting annual ongoing synergies of at least $18 million, the high end of original estimate of $16-$18 million • Plant consolidation completed • Strong sales, Adjusted EBITDA and Adjusted EPS growth • Canadian Retail operations turnaround continues • 9.9% sales volume growth • New Flame Savours product contributed to sales growth 17

2012 – Lots of Noise 18

2012 – Lots of Noise 2012 2011 Diluted Earnings Per Diluted Earnings Per Share Based on: Share Based on: Average Average Shares Shares $000 Outstanding $000 Outstanding Net Income $ 2,203 0.14 $ 18,660 1.22 Add back After-tax business acquisition, integration, and other costs 6,895 0.45 8,397 0.55 Impairment of property, plant and equipment 8,654 0.56 - - Additional depreciation on property that is to be disposed as part of the acquisition 1,127 0.07 - - Increase in cost of sales due purchase price allocation to inventory 761 0.05 312 0.02 Revaluation of embedded derivative on 1,899 0.12 debt - - Accelerated amortization of deferred financing charges 6,380 0.41 Interest rate swap on embedded derivative 529 0.03 - - Intercompany dividend withholdng tax (402) (0.03) 782 0.05 $ 28,046 $ 1.81 $ 28,151 $ 1.84 Stock compensation expense $ 10,025 $ 0.65 $ 703 $ 0.05 Adjusted Net Income $ 38,071 $ 2.46 $ 28,854 $ 1.88 Average shares for the period 15,460 15,341 19

2012 – Deleveraging 20

2013 – Debt Amendments • Term Loan • Reduced rates 5.5% + 1.50 LIBOR floor to 3.5% + 1.25 LIBOR floor • Less restrictive financial covenants • More room for dividends • More flexible for acquisitions • ABL (Working capital) • Improved pricing grid • More flexible for acquisitions • Cost savings • 2013 $4.7 cash, $6.2 total ($30 cents per share) 21

2012 – Interest Expense Fifty-two weeks ended In $000 Dec. 29, 2012 Dec. 31, 2011 19,145 Interest paid in cash during period 5,241 Change in cash interest accrued during the 2,660 449 period Total Interest to be paid in cash 21,805 5,690 Deferred financing cost amortization 2,775 329 Accelerated deferred cost expense (1) 8,713 - Valuation of embedded derivitive 2,605 - Mark-to-market on interest rate swap 726 - Total finance costs 36,624 6,019 (1) Accelerated deferred cost write off caused by positive amendments to term loan in February 2013 22

Outlook & Growth Strategy 23

Our Vision 24

Industry Drivers Long-term growth influenced by strong demographics: North America • 45+ years of age account has an aging, for half of seafood health-conscious consumption population • Health benefits tied to eating fish 25