February 2019

High Liner FoodsQ4 2018 Investor Presentation

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 Foods’Annual Report available on SEDAR (www.sedar.com) and in

the Investor Center section at High Liner Foods’ website (www.highlinerfoods.com).

2

Presentation Notes

Presentation Currency

High Liner Foods (“the Company”) reports its financial statements in USD, however, its

common shares are listed on the Toronto Stock Exchange (“TSX”) and are quoted in CAD.

References in this presentation to share price, dividends and market capitalization are also

in CAD.

Non-IFRS Measures

This document includes certain non-IFRS financial measures which the Company uses as

supplemental indicators of its operating performance and financial position, as well as for

internal planning purposes. These non-IFRS measures do not have any standardized

meaning as prescribed by IFRS, and therefore, may not be comparable to similarly titled

measures presented by other publicly traded companies, nor should they be construed as an

alternative to other financial measures determined in accordance with IFRS. Non-IFRS

financial measures are defined and reconciled to the most directly comparable IFRS

measures in the Company’s MD&A.

3

Company Overview & Strategy

Our Business

• The North American leader in value-added frozen seafood

• In Canada, #1 market position in retail and largest foodservice supplier

• In the US, estimated #2 in retail value-added (including private label) on a volume basis and the leading supplier of

value-added products in foodservice

Focused on the frozen seafood market in North America

76%

24%

Geography

US Canada

62%

38%

Branding

HLF Brands Other

57%

43%

Channel

Foodservice Retail

56%

44%

Product Form

Value-added Other

Based on 2018 actual sales (in USD)

5

(2017: 74% / 26%) (2017: 66% / 34%) (2017: 56% / 44%) (2017: 61% / 39%)

Market Offering

• Global supply chain with a diverse but

focused number of commercial species

• People believe preparing seafood is

difficult and time consuming – it doesn’t

have to be

• By leveraging the full extent of our seafood

expertise, from procurement through to

preparation, our customers can be

confident in serving quality, delicious

seafood

We simplify the seafood category for customers and consumers

6

With the customer at the center of all we do, we are on a mission to drive seafood

consumption by providing innovative solutions to a world looking for healthy, easy to

prepare, delicious seafood options.

Investment Thesis

• Healthy

• Versatile

• Attractive market

demographics

• Cross-category

growth potential

Why Seafood? Why High Liner Foods? Why Now?

7

• Established market position

• North American scale

• Strong, global relationships

with customers, industry

partners and suppliers – well

positioned to lead, innovate

and grow demand across

species

• Upside potential with

return to organic

growth by 2020

• New leadership and

organizational

structure

• Poised to execute

and unlock potential

Current Operating Environment

• HLF established in all growing

seafood categories, especially

shrimp

• Customer and consumers hungry

for product innovation

• Significant room for operational

improvement

• Newly aligned organizational

structure will support “One High

Liner Foods” culture to leverage

scale and best practices to unlock

potential

Opportunities Challenges

8

• Pressure on pricing and tariffs

• Need to strengthen foundation of

our business and overall financial

health

• Executing 5 critical initiatives over

next 9 – 12 months to enable HLF

to capitalize on market opportunities

Five Critical Initiatives

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1. Organizational realignment

2. Business simplification

3. Supply chain excellence

4. Rubicon alignment & growth

5. Profitable organic growth by 2020

Strategically sequenced to strengthen business foundation & drive

growth

>$10M

Net annualized

run rate cost

savings

Stronger

go-to-market

platform

Unlock

existing value;

and

Create new

value

1. Organizational Realignment

10

BEFORE:

High Liner’s Canadian and U.S. operations

run as two separate businesses -

inefficient, duplication of efforts, unable to

leverage North American scale

ONE High Liner Foods

AFTER:

Aligned by core function rather than

geography; efficient structure, economies of

scale and base to foster a unified, high-

performing culture

ONE High Liner Foods lays foundation for all other critical

initiatives and return to profitable organic growth by 2020

RESULTS:

Q4 2018Restructuring

completed

14% $7MReduction to

salaried

employees

net annualized

run rate cost

savings*

* One-time charge of $4.9M associated with the restructuring completed in Q4 2018 of which $3.5M was recognized in Q4 2018

2. Business Simplification

11

Simplifying portfolio reduces complexity from procurement to manufacturing to

marketing and sales, creates efficiencies, lower costs and frees up resources to

develop and innovate the most profitable products

High Liner’s growth through acquisitions has resulted in increasingly

complex business

CURRENTLY:

1500+ products across 30+ species

Plan in place for simplification of the

portfolio

MOVING FORWARD:

Focus on most profitable products with fastest

potential for growth

Products where margins no longer make sense to

be eliminated

3. Supply Chain Excellence

12

High Liner will employ a cross-border supply chain operating system to ensure best

practices and consistency to optimize its North America-wide operations

Centralizing, standardizing, and streamlining to create efficiencies and

lower costs

CURRENTLY:

New, integrated end-to-end

supply chain structure led

by newly appointed Chief

Supply Chain Officer

MOVING FORWARD:

Further centralization and standardization

Increasing efficiency of manufacturing

activities

Continuous improvement

Operational excellence

BEFORE:

Supply chain fragmented,

inefficient and costly

4. Rubicon Alignment & Growth

13

• Rubicon provides unparalleled expertise in shrimp –

second fastest growth category in seafood

• High Liner needs closer alignment with Rubicon to

extract that value and synergies

• Opportunity for High Liner to learn from Rubicon

and Rubicon to learn from High Liner

• Senior High Liner Foodservice Sales Executive

placed at Rubicon to grow shrimp opportunity

• In Q4, integrated and streamlined shrimp

purchasing process across both Rubicon and High

Liner; High Liner now able to leverage Rubicon’s

expertise in cross-selling shrimp to existing High

Liner customers.

Cross pollination and greater alignment to capitalize on opportunity for

growth in shrimp business

5. Profitable Organic Growth – 2020

14

• Work is underway now:

• Implementing High Liner Integrated Planning process to support and drive sales and

marketing teams, allowing us to plan better and manage resources more effectively and

efficiently.

• Aligning compensation plans for entire workforce to the execution of critical initiatives and

business objectives.

• Investing in product innovation and demonstrating market leadership by helping shape

consumer tastes and demand for High Liner’s seafood.

• Optimizing High Liner’s product portfolio on a North American basis, introducing

successful products sold in Canada into the US market.

• Collaborating with industry leading suppliers and industry partners to ensure High Liner

has on-trend and industry-leading innovation.

• Revising High Liner’s approach to promotional activities and trade spending to improve

return.

• Incorporating data analytics to offer the right products and promotions for distributors,

operators, and consumers based on actual demands driven by facts.

Critical Initiatives will pave the way for customer engagement and

product and industry innovation

2018 Financial Review

Product Recall Recovery

• An $8.5 million recovery of product recall losses from an ingredient supplier was

recognized in Q3 2018 related to the Company's product recall announced in April 2017

• This recovery was recognized as business acquisition, integration and other (income)

expense in the consolidated statements of income and has been excluded for the

purposes of Adjusted EBITDA and Adjusted Net Income

• Subsequent to Fiscal 2018 year-end, the Company recovered an additional $8.5 million

from the ingredient supplier, for a total recovery of $17.0 million. This additional recovery

will be recognized during Q1 2019, in accordance with IFRS.

• As a result, the Company has fully recovered the $13.5 million in losses recognized

during Fiscal 2017 related to the product recall and an additional $3.5 million related to

business disruption.

• No further recoveries are expected.

16

2018 Sales

17

$1,053.8 $1,048.5

0

50

100

150

200

250

300

350

400

$0

$200

$400

$600

$800

$1,000

$1,200

2017 2018

Sa

les in U

SD

(m

illio

ns)

Sales in USD

Sales LBS

Sales in LBS and USD

284.0291.8

• Sales volume decreased 7.8 million LBS (2.7%) to 284.0 million LBS

– Excluding additional volume from Rubicon (+7.5 million LBS) and returns associated with the product recall in 2017 (-2.4

million LBS), sales volume decreased by 17.7 million LBS (6.5%) due to lower sales in our Canadian retail business, U.S.

foodservice and retail businesses, partially offset by our Canadian foodservice business.

• Sales revenue decreased $5.3 million (0.5%) to $1,053.8 million

– Excluding additional sales from Rubicon (+$35.1 million), the impact of the product recall in 2017 (-$8.8 million) and FX

on the conversion of our CAD-denominated operations to USD, sales decreased $52.4 million (5.1%) due to the lower

sales volume, changes in product mix, partially offset by price increases related to raw material cost increases.

2018 EBITDA

18

$66.1$62.5

0%

5%

10%

15%

20%

$0

$10

$20

$30

$40

$50

$60

$70

2017 2018

EB

ITD

A a

s a

% o

f S

ale

s

EB

ITD

A (

mill

ions)

Standardized EBITDA*

Adjusted EBITDA*

Adjusted EBITDA as a % ofSales

* Please refer to the Company’s MD&A

for the 52 weeks ended December 29,

2018 for definitions of the non-IFRS

financial measures “Standardized

EBITDA” and “Adjusted EBITDA”

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)

6.3% 6.0%

• Adjusted EBITDA decreased $3.6 million (5.5%) to $62.5 million and decreased 30 basis points as a percentage of sales

– Excluding losses associated with the product recall in 2017 that have not been added back for the purpose of Adjusted

EBITDA (-$2.3 million) and FX on the conversion of our CAD-denominated operations to USD, Adjusted EBITDA

decreased by $4.4 million (6.3%) due to lower gross profit ($11.8 million) after adjusting for the losses associated with the

2017 product recall and an increase in distribution expenses ($3.0 million), partially offset by lower SG&A expenses

($10.1 million).

2018 Earnings Per Share (EPS)

19

$0.93

$0.51

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

2017 2018

EP

S

Reported Diluted EPS

Adjusted Diluted EPS*

* Please refer to the Company’s MD&A

for the 52 weeks ended December 29,

2018 for definitions of the non-IFRS

financial measure “Adjusted Diluted

EPS”

• Diluted Adjusted EPS decreased $0.42 (45.2%) to $0.51

– Adjusted net income decreased $13.1 million (43.5%) to $17.0 million reflecting decreased Adjusted EBITDA, increased

depreciation and amortization expense, finance costs and income tax expense.

– The decrease in Adjusted Diluted EPS also reflects an increase in the weighted average number of shares outstanding

as a result of 2.4 million shares being issued as part of the Rubicon acquisition to its previous owners in May 2017

Debt Leverage Ratio

3.1x

3.7x

5.9x 5.8x

3.0x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

Dec 31/16End of

Fiscal 2016

Apr 1/17End of

Q1 2017

Dec 30/17End of

Fiscal 2017**

Dec 29/18End of

Fiscal 2018

Target

20

This ratio is expected to be lower at the end of Fiscal 2019

Net Interest-Bearing Debt* to Trailing 12-Month Adjusted EBITDA*

* Please refer to the Company’s MD&A for the 52 weeks ended December 29, 2018 for definitions

of the non-IFRS financial measures “Net Interest-Bearing Debt” and “Adjusted EBITDA”

** Does not include trailing 12-Month Adjusted EBITDA for Rubicon which was purchased on May

30, 2017

Dividend History

21

On November 8, 2018, the Board announced that it has commenced a review of its capital

structure to determine the prudent use of capital and will provide an update on its review

when the Company reports its financial results for the first quarter of 2019 in May.

* Reflects Q1/Q2/Q3 dividend of CAD$0.140 per share and a Q4 dividend of CAD$0.145 per share

** Reflects the current annual dividend rate of CAD$0.58 per share

$0.135$0.165

$0.195 $0.210

$0.350

$0.410

$0.465

$0.520$0.565 $0.580

$0.000

$0.200

$0.400

$0.600

2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018**

An

nu

al D

ivid

en

d P

aid

pe

r S

hare

($C

AD

)

Quarterly dividend on common shares commenced in 2013

2019 Outlook

High Liner continues to advise shareholders that until it successfully executes its critical initiatives over

the next nine to twelve months, it is likely to continue to face pressure on its financial results due to a

number of internal and external factors. Longer term, the Company expects its financial performance to

improve and targets a return to profitable growth by 2020.

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Appendix

High Liner Foods

24

Canadian public company since the 1960’s, TSX-listed in 1971

* Source: TSX February 22, 2019

** Effective December 15, 2018

Current price CAD$6.84*

Shares outstanding ~33.4 million*

Market capitalization ~CAD$228 million*

52-week range CAD$6.19 - $13.79*

Annual dividend CAD$0.58 per share**

Current yield ~8.5%

Almost 120 years of seafood expertise

High Liner Foods

24

Consolidated Operations

• New Bedford facility closed in Q3 2016

marking the last significant initiative

planned as part of a multi-year supply

chain optimization project

• Lower demand for traditional breaded and

battered products reduces plant efficiency

• Current manufacturing footprint:

aggregate production capacity of ~219

million LBS

• Ideal capacity ~ 85% to 90% to allow for

seasonal demand surge

Three value-added seafood manufacturing facilities in North America

Lunenburg, NS (Can)

Capacity p.a.: 50M LBS

Portsmouth, NH (US)

Capacity p.a.: 81M LBS

Newport News, VA (US)

Capacity p.a.: 88M LBS

26

Corporate Social Responsibility

• Committed to sourcing all our seafood from “certified sustainable or responsible” fisheries and

aquaculture

• Recognized as a global leader in driving best practice improvements in wild fisheries and aquaculture

The Company produced its first CSR report in 2017

27

0

100

200

300

400

500

600

0

200

400

600

800

1,000

1,200

2009 2010 2011 2012 2013 2014 2015 2016* 2017 2018

Sa

les in L

BS

(m

illio

ns)

Sa

les in U

SD

(m

illio

ns)

Sales in USD Sales in LBS

10 Year Sales History

* New Bedford scallop business sold September 7, 2016

$1,053.8

Sales in LBS and USD

28

291.8 284.0

$1,048.5

10 Year EBITDA History

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)

0%

2%

4%

6%

8%

10%

12%

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

2009 2010 2011 2012 2013 2014 2015 2016* 2017 2018

EB

ITD

A a

s a

% o

f S

ale

s

EB

ITD

A (

mill

ions)

Standard EBITDA** Adjusted EBITDA** Adjusted EBITDA as a Percentage of Sales

6.3%

$66.1$62.5

6.0%

* New Bedford scallop business sold September 7, 2016

** Please refer to the Company’s MD&A for the 52 weeks ended December 29, 2018 for definitions of the

non-IFRS financial measures “Standardized EBITDA” and “Adjusted EBITDA”

29

10 Year EPS and ROE History

Earnings Per Share (EPS) and Return on Equity (ROE)

* Please refer to the Company’s MD&A for the 52 weeks ended December 29, 2018 for definitions of the

non-IFRS financial measures “Adjusted EBITDA” and “ROE”

0%

5%

10%

15%

20%

25%

30%

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Re

turn

on E

qu

ity

Dilu

ted

Ea

rnin

gs P

er

Sh

are

Diluted EPS Adjusted Diluted EPS* Return on Equity*

12.1%

$0.93

6.2%

$0.51

30

Thank you.