Empire Co Ltd Class A · TSX:EMP.A

Empire Co Ltd Class A — Investor Presentation (November 2018)

18 slides from Empire Co Ltd Class A's investor presentation, November 2018

1. Slide 1: Investor Presentation

   Investor Presentation November 2018 Katie Brine, Director, Investor Relations Phone: 905-238-7124 x2092 Email: [email protected]

2. Slide 2: Disclaimers

   Disclaimers Forward-Looking Information This document contains forward-looking statements which are presented for the purpose of assisting the reader to contextualize the Empire Company Limited’s (“Empire” or the “Company”) financial position and understand management’s expectations regarding the Co

3. Slide 3: Executive Team

   EMPIRE COMPANY LIMITED Executive Team Sobveys a SS | Michael Medline President & Chief Executive Officer Pierre i i i Clinton Doug Vittoria Castonguay St-Laurent Venton é Keay Sanderson Nathanson Varalli Executive Executive Executive General Senior Vice Executive Vice Executive Senior Vice Senior Vi

4. Slide 4: Empire Company Limited – Who are we?

   Empire Company Limited – Who are we? • Canadian company headquartered in Stellarton, Quick Facts – Empire* Nova Scotia. Share price (CAN$)** $24.31 • Key businesses include food retailing and related 52-Week High ** $27.08 real estate through wholly owned subsidiary Sobeys Inc. and a 41.5% equity ac

5. Slide 5: Key Achievements – Last twelve months

   Key Achievements – Last twelve months 2017 September • Announced first quarter results; achieved positive same-store sales for the first time in six quarters December • Announced expansion of Ontario Discount format banner, FreshCo, to Western Canada in fiscal 2019 • Announced Phase 1 of Project Sun

6. Slide 6: Strategic Focus

   Strategic Focus Reset our ​Bolster our Win in our Enhance Win E-commerce Foundation Brand Stores Discount Successful ​Strengthen the Improve service Expand discount Launch home completion of emotional and offering in our to Western delivery through Sunrise by end of connection to our conventional Ca

7. Slide 7: Project Sunrise Update

   Project Sunrise Update In the fourth quarter of fiscal 2017, the Company launched Project Sunrise, a comprehensive, three year transformation intended to simplify organizational structures and reduce costs. The transformation is expected to result in at least $500 million in annualized cost savings

8. Slide 8: Farm Boy – Key Investment Highlights

   Farm Boy – Key Investment Highlights 1 Aligned with Empire’s Strategic Priorities 2 Leading Specialty Food Retailer with Strong Brand Loyalty 3 Attractive, Scalable Platform Primed for Growth 4 Enhances Presence in Urban Markets with Established, Well-Known Brand in Ontario 5 Exceptional Privat

9. Slide 9: Ocado Solutions

   Ocado Solutions With more than 15 years at the forefront of innovation and success in grocery ecommerce, Ocado will partner exclusively in Canada with Sobeys on our end-to-end e-commerce solution. Key facts: • Canadian online grocery market is growing 30%+ per year • Greater Toronto Area (“GTA”) Cus

10. Slide 10: Financial Results – Annual

    Financial Results – Annual Fiscal 2018 2017 2016 52 weeks 52 weeks 53 weeks 5-May-18 6-May-17 7-May-16 Sales $24,214.6 $23,806.2 $24,618.8 Same store sales growth (decline), excluding fuel 0.5% (2.2)% 0.3% Inflation at quarter end – internal 0.8% (1.9)% 2.2% Gross profit $5,900.5 $5,707.2 $5,957.6 G

11. Slide 11: Financial Results – 12 Quarter Review

    Financial Results – 12 Quarter Review Fiscal Fiscal Fiscal Fiscal 2019 2018 2017 2016 Q1 F19 Q4 F18 Q3 F18 Q2 F18 Q1 F18 Q4 F17 Q3 F17 Q2 F17 Q1 F17 Q4 F16 Q3 F16 Q2 F16 Aug. 4 May 5, Feb. 3, Nov. 4, Aug. 5, May 6, Feb. 4, Nov. 5, Aug. 6, May. 7, Jan. 30, Oct. 31, 2018 2018 2018 2017 2017 2017 2017

12. Slide 12: Appendices A – C

    EMPIRE COMPANY LIMITED Appendices A-—C

13. Slide 13: Farm Boy – Company Overview

    Appendix A Farm Boy – Company Overview  Founded in 1981, Farm Boy Inc., (“Farm Boy”) is an Ontario- based retail grocer that has a focus on high quality and locally- sourced meat and produce and offers a wide range of exceptional private label and prepared foods and renowned customer service  In 2

14. Slide 14: Farm Boy – Transaction Overview

    Farm Boy – Transaction Overview  Empire, through a subsidiary, will acquire Farm Boy based on a total enterprise value of $800 million Purchase  Farm Boy will be set up as a separate company within Empire’s structure Price  Farm Boy’s Co-CEOs will reinvest in 12% of the continuing Farm Boy busine

15. Slide 15: Appendix B FreshCo 2.0

    Appendix B EMPIRE FreshCo 2.0 Sobveyr oy SS ee SS errnee ge

16. Slide 16: FreshCo 2.0

    EMPIRE COMPANY LIMITED FreshCo 2.0 Sobveyr a f qyBLE

17. Slide 17: Appendix C First look at CFC (Vaughan, ON)

    Appendix C First look at CFC (Vaughan, ON) 17

18. Slide 18: First look at CFC (Vaughan, ON)

    First look at CFC (Vaughan, ON) 18

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