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LASSONDEINDUSTRIES INC.CORPORATE PRESENTATION

Financial Results for Fiscal 2019 and First Nine Months of 2020




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FORWARD-LOOKING STATEMENTS

Caution regarding forward-looking statements

Certain statements made in this presentation, including, but not limited to, statements regarding the prospects of the industry, plans, financial position, and business strategy of the Company may constitute forward-looking statements within the meaning of Canadian securities legislation and regulations. These forward-looking statements do not provide guarantees as to the future performance of Lassonde Industries Inc. and are subject to risks, both known and unknown, as well as uncertainties that may cause the outlook, profitability, or actual results of Lassonde Industries Inc. to differ significantly from the profitability or future results stated or implied by these statements. Detailed information on risks and uncertainties is provided in the “Uncertainties and Principal Risk Factors” section of the MD&A for the year ended December 31, 2019, available at www.sedar.com and at www.lassonde.com.

The forward-looking statements contained in this presentation reflect our expectations as at November 6, 2020 and, accordingly, are subject to change after this date. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events, or otherwise.

The terms “EBITDA,” “free cash flow,” and “adjusted EPS” are non-GAAP financial measures and do not have any standardized meaning under IFRS. They are therefore unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Financial Measures Not in Accordance with IFRS” in the MD&A of Lassonde Industries Inc. for the Third Quarter ended September 26, 2020.

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FINANCIALHIGHLIGHTS




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FINANCIAL HIGHLIGHTS – FISCAL 2019Earnings

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% Δ % Δ2019 2018 2017 19 vs 18 18 vs 17

Sales 1,678.3 1,594.0 1,526.1 5.3% 4.4%

Operating profit 100.8 105.2 133.3 -4.2% -21.1%Operating profit/Sales 6.0% 6.6% 8.7%

Profit 74.9 68.0 95.5 10.2% -28.8%

Profit attributableto shareholders 72.0 66.4 89.9 8.4% -26.2%

EBITDA 157.7 154.0 177.9 2.4% -13.5%

Earnings per share (EPS) 10.37 9.50 12.87 9.2% -26.2%

Years endedDecember 31,

In millions of $(except EPS)




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FINANCIAL HIGHLIGHTS – FISCAL 2019Earnings (cont’d)

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Sales of $1,678.3M, $84.3M (or 5.3%) vs $1,594.0M in 2018:

• Sales from Old Orchard Brands (OOB), an entity acquired on May 31, 2018, totalled $50.3M for the first five months of 2019. Excluding these sales and a $22.4M favourable foreign exchange impact, the Company’s sales were up $11.6M year over year. This increase was mainly due to an increase in sales of private label products.

Operating profit of $100.8M, $4.4M vs $105.2M in 2018:

• Excluding OOB’s operating profit for the first five months of 2019 and some other items not related to operations, the 2019 operating profit would have been down $7.4M;

• This decrease in the 2019 operating profit reflects the following items:• A $4.9M decrease in the profitability of specialty food products caused by the negative impact on productivity of

significant investment-related activities in this business unit;• A lower profitability in U.S. operations resulting mainly from an increase in obsolete inventory costs related to an

unusually high turnover rate in the management teams;• Partly offset by improved profitability in the Canadian fruit juice and drink operations.

Financial expenses of $19.5M in 2019 vs $15.1M in 2018, $4.4M:

• A $4.5M increase in interest expense related to the financing of the OOB acquisition; and• A $1.7M decrease in the interest on long-term debt, partly offset by a $1.3M interest expense on lease liabilities resulting

from the adoption of IFRS 16 on January 1, 2019.




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FINANCIAL HIGHLIGHTS – FISCAL 2019Earnings (cont’d)

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“Other (gains) losses”: $19.2M gain in 2019 vs $1.1M loss in 2018:

• The 2019 gain was mainly due to a $20.8M gain realized following the settlement of an insurance claim directly related to the OOB acquisition price;

• The 2018 loss came essentially from an unfavourable change in the fair value of financial instruments.

The 2019 effective income tax rate was 25.4% versus 23.5% in 2018:

• This higher effective tax rate in 2019 mainly reflects changes to U.S. tax regulations affecting the deductibility of certain interest expenses.

Profit attributable to shareholders of $72.0M in 2019 vs $66.4M in 2018 and EPS of $10.37 vs $9.50 in 2018:

• Excluding the impacts of the $13.8M, net of tax, gain realized following the settlement of an insurance claim, and of some other items not related to operations, the 2019 profit attributable to the shareholders would have been down $6.5M year over year.




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FINANCIAL HIGHLIGHTS – FISCAL 2019Free Cash Flow Analysis

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In millions of $Variance

2019 2018 2019-2018Free cash flow

Profit 74.9 68.0 6.9Adjustments Amortization and Depreciation 57.0 48.8 8.2

Pension plans, income tax and other 4.4 5.7 (1.3)Change in non-cash working capital 4.4 (7.8) 12.2

Cash flows from operating activities 140.7 114.7 26.0Dividends paid (18.0) (21.2) 3.2Acquisition of PP&E and intangibles (39.9) (35.4) (4.5)Net proceeds from the disposal of PP&E 0.2 0.1 0.1

83.0 58.1 24.9Business and investment acquisitions (15.6) (196.9) 181.3

Free cash flow 67.4 (138.8) 206.2

Used (Financed) as follows:Decrease (increase) in net debt* 60.2 (139.0) 199.2Non-controlling interest - (2.6) 2.6Repurchase of shares 7.2 2.8 4.4

67.4 (138.8) 206.2

Years endedDecember 31,

* Before currency translation effect.




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FINANCIAL HIGHLIGHTS – YTD 2020Earnings

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Sept. 26, Sept. 28, % Δ $ Δ2020 2019 20 vs 19 20 vs 19

Sales 1,465.9 1,246.2 17.6 % 219.7

Operating profit 113.0 75.9 49.0 % 37.1Operating profit/Sales 7.7% 6.1%

Profit attributable to shareholders 74.3 43.5 70.7 % 30.8

EBITDA 160.3 118.4 35.3 % 41.9

Earnings per share (EPS) 10.71 6.27 70.8 % 4.44

Sept. 26, Dec. 31, $ Δ2020 2019 20 vs 19

Net debtLong-term debt (including current portion) 221.9 239.9 (18.0)Lease liabilities (IFRS 16) 47.8 25.2 22.6Bank overdraft 0.1 12.4 (12.3)Less: Cash and cash equivalents (6.4) (1.8) (4.6)

263.4 275.7 (12.3)

First nine months ended

As at

In millions of $(except EPS)




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FINANCIAL HIGHLIGHTS – YTD 2020Earnings (cont’d)

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Sales of $1,465.9M, $219.7M (or 17.6%) vs $1,246.2M in 2019:

• Sun-Rype, an entity acquired on January 3, 2020, generated sales of $127.2M during the first nine months of 2020;

• Excluding Sun-Rype’s sales and a $16.3M favourable foreign exchange impact, the Company’s sales were up $76.2M year over year. This increase was mainly due to a significant increase in sales of private label products (+$65.1M) in Canada and in the U.S.;

• A significant portion of this increase could be due to changes in food habits related to the impacts of COVID-19.

Operating profit of $113.0M, $37.1M vs $75.9M in 2019:

• Excluding Sun-Rype’s operating profit, the operating profit would have been up $30.6M in 2020;• This increase in 2020 operating profit reflects the following items:

• Higher profitability by the Company’s Canadian and U.S. operations stemming from higher sales volumes;• Lower cost of certain raw materials, especially orange concentrate and PET resin;• An improvement in the production rate at one of the Company’s plants, which had been affected in 2019 by

investment-related activities; and• Lower selling and marketing expenses;• Partly offset by higher performance-related salary expenses and additional production costs related to the pandemic.




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FINANCIAL HIGHLIGHTS – YTD 2020Earnings (cont’d)

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Financial expenses of $13.6M in 2020 vs $14.4M in 2019, $0.8M:

• A $2.2M increase in financial expenses resulting from the Sun-Rype acquisition; and• A decrease in the interest expense on long-term debt explained by rapid debt repayment and lower interest rates.

“Other (gains) losses”: $2.1M gain in 2020 vs $1.7M loss in 2019:

• The 2020 gain was mainly due to a $1.8M foreign exchange gain resulting from the relative strength of the U.S. dollar versus the Canadian dollar;

• The 2019 loss came from a $2.2M loss resulting from a change in the fair value of financial instruments held by Old Orchard Brands to cover frozen concentrated orange juice price fluctuations and from a $0.7M foreign exchange loss. These items have been partly offset by a $1.2M gain resulting from a decrease in the fair value of a contingent consideration liability.

The 2020 effective income tax rate was 23.0% versus 25.4% in 2019:

• The reduced effective tax rate of 2020 reflects essentially fiscal incentives enacted by the U.S. government to help companies cope with the COVID-19 crisis.

Profit attributable to shareholders of $74.3M in 2020 vs $43.5M in 2019 and EPS of $10.71 vs $6.27 in 2019:

• Excluding the impact of the Sun-Rype acquisition, the 2020 profit attributable to the Company’s shareholders was up $27.6M year over year.




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IMPACT OF COVID-19Fiscal 2020

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Impact of COVID‐19 on earningsLine item Impact of COVID‐19 Impact on earningsSalesVolume Industry volume (in retail) ≈ up 5% TTM salesRetail Normally 87% of sales : estimated at 91%Food Service Normally 13% of sales : estimated at 9%

Sales mixMulti‐serve vs Single‐serve Larger % of multi‐serve salesChilled vs Shelf‐stable Larger % of chilled sales

Cost of salesRaw materialsAvailability Reduced for some items No significant impactCost Lack of clear correlation with COVID‐19 Favourable R.M. costs

ProductivityLabour Reduced productivity in labour costs

Special bonus when essential services in labour costsEquipment volumes but issue with line speed No significant impact

Selling & Admin. expensesSales and marketingPromotional activities Significant reduction due to lockdown in expenses

Transportation costs Trending up from lower level Neutral impact on expensesPerformance‐related salaries Better performance in 2020 in expenses

(partially related to the impacts of COVID‐19)

Financial expensesInterest expense Lower interest rates in interest expense




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IMPACT OF COVID-19 Other impacts and responses

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EMPLOYEES CONSUMERS BUSINESS & MARKETS COMMUNITYOffice managers and employees for the most part are working from home

Reduction in products offered to maximize service with regard to top sellers

Sales force visits stores from 5:00-8:00 a.m. and 5:00-8:00 p.m.

Purchase from local companies (masks, faceshields, etc.)

Special bonus paid in Canada and U.S. when essential services

No plants have been quarantined

Financial support to local community organizations

Protection measures (e.g., supplies of masks, gloves, face shields)

72 positive cases ofCOVID-19

Products donated to several food banks

Call service for employees (Toll-free line and email)

Preventive quarantine limited by distancing measures in place

Daily internal communication




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FINANCIAL HIGHLIGHTS – YTD 2020Free Cash Flow Analysis

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In millions of $Sept. 26, Sept. 28, Variance

2020 2019 2020-2019Free cash flow

Profit 77.6 44.6 33.0Adjustments Amortization and Depreciation 47.2 42.7 4.5

Pension plans, income tax and other 21.2 4.6 16.6Change in non-cash working capital 22.9 (26.8) 49.7

Cash flows from operating activities 168.9 65.1 103.8Dividends paid (13.1) (13.9) 0.8Acquisition of PP&E and intangibles (29.5) (29.4) (0.1)Net proceeds from the disposal of PP&E 0.1 0.2 (0.1)

126.4 22.0 104.4Business and investment acquisitions (80.6) (14.5) (66.1)

Free cash flow 45.8 7.5 38.3

Used (Financed) as follows:Decrease (increase) in net debt* 45.8 0.3 45.5Repurchase of shares - 7.2 (7.2)

45.8 7.5 38.3

First nine months ended

* Before currency translation effect.




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DIVIDENDS AND OUTLOOKFiscal 2020

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Dividend:

• Quarterly dividend of $0.65 per share (payable on December 15 for Q4);• Up 9.24% from 2019;• On an annualized basis, approximately 25% of the 2019 profit attributable to shareholders.

Outlook:

• Excluding Sun-Rype’s sales and foreign exchange impacts, the Company’s sales were up 5.3% in the third quarter of 2020 compared to the same quarter in 2019. It believes that a non-negligible portion of this increase could be due to the direct and indirect effects of the pandemic on consumer behaviour. There is no reliable way to determine whether these changes in purchasing habits are permanent or will fade when COVID-19 is a thing of the past. Barring any significant external shocks, including the impacts of COVID-19’s evolution (and excluding foreign exchange impacts and the impact of the Sun-Rype acquisition to maintain a comparable basis), the Company expects that, for 2020, it will be able to achieve a consolidated annual sales growth rate above that of 2019, but with a slight decrease from its current growth rate for the fourth quarter of 2020.

• The uncertainty surrounding the Company’s forecast is higher than it is under normal circumstances, as the impact in 2020 of the lockdown and physical distancing measures on demand for the Company’s products is hard to measure. The Company remains concerned about how the crisis affects sales to the food service segment, especially as several regions of North America are returning to partial lockdown.

• The Company believes that its use of investing cash flows could reach between $37.5 million and $42.5 million for the 2020 fiscal year. The Company is building additional capabilities for specialty food products, enhancing the flexibility of its production capacity for fruit juices and beverages in the U.S., and upgrading its ERP software in Canada.




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AN AGRI-FOOD COMPANY THAT BEARS FRUIT




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OVERVIEW

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2019 sales*:

$1,678.3MCash flows from operating activities*:

$140.7M

Lassonde SpecialtiesDevelops, manufactures, and markets specialty food products.

Arista WinesImports and markets selected wines and manufactures apple ciders and cider-based beverages.

Lassonde Pappas and CompanyA U.S. leader inthe development, manufacture, and marketing of private label and national brand fruit juices and drinks.

A. LassondeThe Canadian leader in the development, manufacture, and marketing of fruit juices and drinks.

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Sun-RypeManufactures fruit-basedjuices, drinks and snacks.

* Excluding the results of Sun-Rype, an entity acquired on January 3, 2020




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GEOGRAPHIC SALES DISTRIBUTION

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Canada U.S. Others

$537M

$1,846M*

92% 41%

59%

6%

* Pro forma: Including $168 million in sales from Sun-Rype, an entity acquired on January 3, 2020




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VAST NORTH AMERICAN NETWORK

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Calgary (AB)Thornbury (ON)Toronto (ON)Rougemont, Saint-Damase, Boisbriand (QC) Head office and multiple facilities

Port Williams (NS)Kelowna (BC) Sun-Rype

Carver (MA)Cranberry receiving station

Seabrook (NJ)Carneys Point (NJ)Regional office (LPC)

Baltimore (MD)Mountain Home (NC)Springdale (AR)Ontario (CA)Sparta (MI)Old Orchard Brands

Selah, Wapato (WA) Sun-Rype

Canada

Head office

United States

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13 12 11

108

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COMPETITIVE ENVIRONMENT

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• Industry sales volumes increased in both the U.S. and Canadian fruit juice and beverage markets in 2020, but:

• It is difficult to assess if this increase is due to the direct and indirect effects of the COVID-19 pandemic on consumer behaviour;

• Sales to the food service segment are down, as several regions in North America are facing partial lockdown due to a strong second wave of the pandemic.

• Challenging competitive environment affecting mainly private labels in the U.S., but:

• Cost of raw materials generally down, with the exception of apple concentrate, which is still affected by tariffs;

• Strong demand for the Company’s products reduces pressures from retailers.

• Strong demand for specialty food products:

• Decline in profitability in 2019 as a result of the temporary effect of major investment initiatives in productivity.

• Pay particular attention to the progress of COVID-19 in North America and its impact on economic activity, as well as on consumers’ purchasing habits (retail/food services).




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CORPORATE STRATEGY




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CORPORATE STRATEGY

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MissionAllow North American families to enjoy foods and beverages that are both delicious and beneficial for their health and well-being

•Be a North American leader in the development, manufacturing and marketing of a range of innovative and distinctive foods and beverages containing healthy ingredients

•Be an employer of choice that helps employees develop and grow

•Be recognized for our commitment to sustainable development and communities

Vision




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CORPORATE STRATEGY

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CONSOLIDATE

OFFER THE RIGHT PRODUCT IN THE RIGHT SIZE AT THE RIGHT PRICE

PROMOTESUSTAINABLE

DEVELOPMENT

INNOVATE- Healthy products- Hydration




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CONSOLIDATE(ACQUISITION)




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• Acquisition of Sun-Rype for a net cash consideration of $80.6 million after recovering $6.4 million of cash on hand and a net working capital adjustment of 2.2 million:

• Lassonde also assumes $23.0M in liabilities related to lease liabilities for certain Sun-Rype facilities

• Canadian manufacturer of fruit juices, drinks and bars, with three plants located in northwestern North America

• Established in 1946

• Sales of $168M for 2019:

• $136M in the Canadian entity, and • $32M in the U.S. entities

• 69% of sales in Western Canada

CONSOLIDATE (ACQUISITION)Sun-Rype – Description of the transaction and the company




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CONSOLIDATE (ACQUISITION)Sun-Rype – Business locations

• Sun-Rype has three manufacturing facilities located in Kelowna, British Columbia, and Selah and Wapato, Washington, in the U.S.




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CONSOLIDATE (ACQUISITION)Sun-Rype – Strategic rationale

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• Improve Lassonde’s manufacturing presence in northwestern North America• Strengthen Lassonde’s strategic positioning in the Canadian national brand juice and

beverage industry• Improve the commercial network of both companies by enhancing support offered to

national retailers across Canada• Increase Canadian retailers’ and consumers’ access to complementary products with

potential for growth in the U.S. market




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RIGHT PRODUCT, RIGHT SIZE, RIGHT PRICE




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RIGHT PRODUCT, RIGHT SIZE, RIGHT PRICE

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Increase in production capacity of Lassonde Specialties:

• Compound Annual Growth Rate (CAGR) of sales over 5 years: 10.5%• CAGR of EBITDA over 5 years: 21.3%• Additional capacity to increase sales by 25% to 30% upon completion of project• Total investment of over $30.0 million to increase the production capacity of low-acidity products




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SUSTAINABLE DEVELOPMENT




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Packaging – Objectives by 2025• Commit to finding solutions to replace

plastic straws

• Aim for 20% post-consumer recycled contentin our packaging

• Use 100% recyclable packaging for our products

• Work with governments, industry and associations to promote the collection of recyclables

• Modernize selective collection and deposit




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Paper straws (launch September 2020)• First North American manufacturer to introduce a paper straw for 200-mL portion-size

multi-layer packages;

• Bendable paper straws will replace plastic straws in all 200-ml single-serve boxes of Kijuand Simple Drop Natural Spring Water products;

• These products are now available at major Canadian grocery retailers;

• The straws are made from FSC-certified paper and, like the juice boxes, are recyclable;

• The straws are compliant with Canada’s extremely high food safety standards;

• Positive reaction from customers and consumers.




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AVERAGE CONSUMPTION OF WATER IN LITRES (L) PER 1 L OF JUICE – 2018

1.7 2.0 3.0 to 3.5

LASSONDE,JUICE DIVISIONS

WORLD’S LEADING

PRODUCERS

WORLD BREWING INDUSTRY

Water

• Lassonde is a world leader in consumption of water per litre of juice

• Investments in the Boisbriand plant will reduce its water consumption by 67%




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INNOVATE HEALTH AND HYDRATION




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INNOVATE – HEALTH AND HYDRATATION2020 innovations

• New flavours

• Refrigerated concentrate, 1 L for 4 L

• With real brewed tea

• No preservatives

ARIZONA960 mL and 8 x 200 mL

OASISMORNING SMOOTHIE

4 x 300 mL and12 x 300 mL

FRUIT DROP 10 x 200 mL

• Water + 15% Oasis juice (200 mL and 1 L new formula)

• No sugar added

February 2020 February 2020

FAIRLEE 1L 3+1

January 2020

Retail

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Main Adjacent Main

Food Service




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2020 PRIORITIES




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2020 PRIORITIES

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Adapt our organization to long-term changes in

eating and drinking habits resulting from the

COVID-19 crisis

Reap the benefits of Lassonde Specialties investment program

Promote organic growthReap synergies between

Sun-Rype and A. Lassonde Inc.

Continue to develop frozen juice concentrates

in Canada

Manage the impacts of the COVID-19 crisis by

minimizing the negative impacts for the Company

Increase the profitability of our U.S. activities

Maintain the pace of debt reduction




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$140 000

2020 2021 2022 2023 2024 2025 andthereafter

U.S. Canada

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CA & U.S. CREDIT AGREEMENTSCredit terms and Liquidity headroom

Liquidity headroom as of September 26, 2020

Canadian credit agreement: C$165M

U.S. credit agreement: US$75M

Credit terms*

* Based on balances as of September 26, 2020

(In thousands of $CA)




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QUESTIONS




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