Maple Leaf Foods Investor Presentation Second Quarter Ended June 30, 2007 Some of the statements in this presentation may constitute forward-looking information and future results could differ materially from what is included. Please refer to Maple Leaf’s 2006 Annual Consolidated Financial Statements and other public filings for a description of operations and factors that could impact the Company’s financial results.
Second Quarter Summary Second quarter operating earnings increased 12% over last year Solid performance in the context of significant organizational change and rising grain and meat costs Excellent progress on reorganization of the Protein businesses Completed the sale of our animal nutrition business - $512 million Hog production restructuring ahead of plan Began consolidating pork processing into Brandon facility with closure of Saskatoon primary processing operation Bakery Products Group earnings up 15% with improvements in all operating segments except fresh pasta On track to build a significantly more profitable and focused value- added meat, meals and bakery company 2 2
Earnings Per Share of $0.13 (1) (2006: $0.12) …excluding results from the animal nutrition business $0.30 � Operating earnings increase of 12% was $ 0 .2 5 impacted by higher interest expense and tax rates $0.25 � Earnings per share including feed nutrition $0.17 (last year $0.17) $ 0 . 2 0 $0.20 Quarter ($CAD) $0.1 5 $ 0 .13 $ 0 .12 $ 0 .12 $0.1 0 $ 0 .0 8 $0.05 $0.00 2 0 0 6 2 0 0 7 2 0 0 6 2 0 0 7 2 0 0 6 2 0 0 7 Q1 Q2 YTD (1) Earnings per share presented before restructuring and other related costs and excluding discontinued operations. 3 3
Meat Products Group Operating Earnings up 9% 1,200 1,143 1,083 Sales declined due to sale/exiting of 1,064 1,063 1,026 1,015 997 1,000 955 942 926 924 non-core international businesses 896 879 800 Successfully managed rising fresh $ million CAD 658 600 meat input costs through pricing 400 pricing did not fully offset continued rise in meat costs 200 more pricing will be rolled out in the 0 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2004 2005 2006 back-half of 2007 Q1 Q2 Q3 Q4 Earnings positively impacted by Q2 Operating Earnings up 9% higher industry poultry processor 40 margins and lower manufacturing 37.9 35 costs related to the closure of a 30 processing plant in Atlantic Canada 25 23.1 $ million CAD 21.3 Continued to invest heavily in 20 18.7 17.5 15.2 14.8 advertising and promotion to 15 13.7 13.6 13.3 12.6 10.4 10.0 9.2 support new product launches 10 5 0 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2004 2005 2006 Q1 Q2 Q3 Q4 4 4
Innovation Update Strong early results for Maple Leaf Simply Fresh product launch Maple Leaf’s first major expansion into high growth chilled meals; launched in Q1/07 with national distribution Retail sales progressing at the same pace as Maple Leaf Fully Cooked Roasts in year one of launch Gained over 10% market share in chilled meals category within first five months; over 30% in single serve entrees Five new products being launched in September/07, offering 11 single meal entrée varieties 5 5
Agribusiness Group Excluding animal nutrition, earnings increased 7% Q2 Sales down 3% * 70 Earnings from hog production 66 64 64 65 63 61 59 60 operations declined significantly 53 51 52 50 Higher feed costs driven by increases $ million CAD 40 in corn and other grains 30 High mortality rates due to circovirus; 20 herd health continues to improve and 10 expected to normalize by year-end. 0 2005 2006 2007 2005 2006 2007 2005 2006 2005 2006 Quarter-over-quarter comparisons Q1 Q2 Q3 Q4 Q2 Operating Earnings up 7% * affected by a one-time inventory 21 19.4 adjustment in 2006 17 Rendering earnings increased as 12.6 13 higher prices realized, tracking 9 7.5 $ million CAD rising commodity prices 4.6 4.3 5 1.4 1.2 0.9 0.3 1 2005 2006 2007 2005 2006 2007 2005 2006 2005 2006 Q4 Q1 Q2 Q3 Q4 -3 -7 -9.3 -11 * Restated to exclude results of animal nutrition business 6 6
Bakery Products Group Growth driven by higher margin value- Sales up 12% (6% excl. acquisitions) added categories and price increases 420 implemented last year 375 358 355 360 342 335 Manufacturing efficiency gains 314 314 315 309 303 304 301 289 300 279 resulting from investments to increase $ million CAD 240 capacity and automation 180 Organic growth and contribution from 120 acquisitions continue to drive UK 60 earnings 0 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2004 2005 2006 French Croissant Company, acquired in Q1 Q2 Q3 Q4 Q4/06 Operating Earnings up 15% Continued growth in bagel market 35.0 33.3 31.4 Rising wheat prices pressured margins 29.0 30.0 27.8 27.6 26.9 along with some continued industry- 24.7 25.0 23.8 23.4 23.3 23.1 22.3 wide volume softness in fresh bakery 20.6 $ million CAD 20.0 17.7 Price increases will be implemented to 15.0 offset higher costs 10.0 Lower pasta earnings, affected by 5.0 higher input costs and start up of new 0.0 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2004 2005 2006 capacity due to new business volumes Q1 Q2 Q3 Q4 7 7
Corn Prices up 53% Corn prices remained high due to demand from ethanol production US Corn Price / Bushel – Up 53% vs. Q2 / 06 Impact on Maple Leaf: 500 450 Higher hog production costs 400 US¢\bushel Higher fresh meat prices 350 and input costs for 300 processed meats 250 business 200 150 US ¢\bushel Average Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 QTR Price 286 301 233 203 207 217 228 202 222 247 253 345 401 379 Close Price 320 267 206 205 213 232 206 216 236 260 263 390 388 330 Effective Date: Jul 7, 2007 8 8
Wheat Prices Up 17% Rising with corn/grain prices US Wheat Price / Bushel – Up 17% vs. Q2 / 06 Impact on Maple Leaf: 650 Margin erosion in fresh and 600 frozen bakery and pasta 550 businesses as flour and dairy US¢\bushel 500 costs increased 450 Price increases planned to 400 offset impact in the back half of 350 2007 300 US ¢\bushel Average Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 QTR Price 405 418 366 361 347 345 354 372 411 460 478 516 505 537 Close Price 436 389 373 348 355 347 384 385 415 524 458 519 528 623 Source: Bloomberg Effective Date: Jul 3, 2007 9 9
Poultry Industry Margins Up 36% Live Bird versus Wholesale Poultry Price Spread Wholesale Price Live Price (eviscerated) $4.00 $3.50 $3.00 Live Bird $2.50 & Wholesale $2.00 Poultry Price ($/kg) $1.50 $1.00 $0.50 $- Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Wholesale Poultry $ 2.76 $ 2.68 $ 2.66 $ 2.51 $ 2.64 $ 2.97 $ 3.01 $ 3.24 $ 3.20 Live Bird (evisc.) $ 1.63 $ 1.51 $ 1.50 $ 1.53 $ 1.56 $ 1.52 $ 1.51 $ 1.63 $ 1.73 Spread $ 1.13 $ 1.17 $ 1.16 $ 0.98 $ 1.08 $ 1.45 $ 1.50 $ 1.61 $ 1.47 Source: EMI Composite Market Indicator Effective date: June 30, 2007 10 10
USDA Processor Margins Down USD$1.40 Per Hog Live Hog versus Wholesale Pork Price Spread (2006 Cutout) Wholesale Pork Live Hog Price $100 $90 $80 $70 Live Hog $60 & Wholesale $50 Pork $40 Price (USD $30 /CWT) $20 $10 $- $(10) Q2-05* Q3-05* Q4-05* Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Wholesale Pork $ 71.66 $ 73.76 $ 66.99 $ 61.76 $ 69.20 $ 73.61 $ 66.10 $ 66.43 $ 73.95 Live Hog $ 70.99 $ 68.79 $ 62.61 $ 58.31 $ 65.79 $ 71.11 $ 62.96 $ 62.78 $ 71.24 Spread $ 0.67 $ 4.97 $ 4.38 $ 3.45 $ 3.41 $ 2.50 $ 3.14 $ 3.65 $ 2.71 Source: USDA Effective date: June 30, 2007 11 11
Strategic Milestones Update Building a Value-Added Meat and Meals Business Activity Description Status Closed on July 20 th for $512 million subject to normal � Sale of Animal Nutrition Business closing adjustments � Consolidating primary Closed primary pork processing operations in pork processing in Saskatoon (15,000-17,000 hogs per week) Closed Oct Brandon plant Announced closure of primary pork processing 2007 operations in Winnipeg (15,000 – 20,000 hogs/week) Double-shift of the front-end processing at Brandon Q3/Q4 2007 plant on track Restructuring of hog Complete Manitoba restructuring Dec 2007 production operations Processed meats Red meat processing plant closure, with operations Red Meat: network optimization relocated to new plant in Brampton, Ontario, with Oct 2007 increased capacity to support foodservice growth Ongoing network optimization resulting from Schneider Ongoing Foods acquisition 12 12
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