1 the middleby corporation. 2 financial performance sales ($ in millions) gross profit ebitdaeps 30%...

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  • The Middleby Corporation

  • Financial PerformanceSales($ in millions)Gross ProfitEBITDAEPS30% CAGR35% CAGR45% CAGR80% CAGR($ in millions)($ in millions)

  • 46% 6-Yr CAGRFree Cash Flow 1Free Cash Flow = EBITDA - Capital Expenditures

    Free Cash Flow1 ($ in millions)Significant free cash flow generation

  • Diverse and Stable Revenue BaseEnd MarketPizza 10%QSR 10% Fast Casual 20%Casual 10%Independent 10%Institutional 10%Food Processing 10%International Food Service 20%DomesticFoodServiceProduct UseMajority in international marketsAllows restaurants to differentiate themselves in a competitive marketInstalled base of aged equipment in 850,000 establishmentsStable, diversified revenue base with exposure to high growth end markets and limited exposure to new U.S. restaurant openings

  • Value Added Offering RevenueProtectionCompetitiveDynamicsCostPressuresCustomer NeedMiddleby Offering The opportunity cost of a bad product can cripple a restaurants revenue. Equipment is used to compete effectively and lower customers most pressing costs.Middleby provides leading service with the industrys best known brands. Middleby works with customers to introduce products that best meet their needs.

  • Value Added Offering (contd)Source: National Restaurant Association; Deloitte & Touch; Management Estimates 1 Assumes straight-line depreciation over 7-years. Yearly annual depreciation is less than 0.1% of cost structure.2 Minimal maintenance spend in first 2-3 years, $500 per year thereafter3 Pre-tax and financing Product represents 0.1% of cost structure, is immediately P&L accretive and provides attractive ROI/payback$1,428% SalesSales$2,200,000 100.0%Cost of Food & Beverage638,000 29.0%Pitco Fryer: $10,000Gross Profit1,562,000 71.0%Salaries, Wages, Benefits667,000 30.3%Life:7 YearsDirect Operating Expenses106,000 4.8%Marketing46,000 2.1%Deprecation Per Year:$1,428Utilities68,000 3.1%Occupancy163,000 7.4%Deprecation/Sales: 0.06%Repairs and maintenance37,000 1.7%Depreciation42,000 1.9%G&A55,000 2.5%Other/Corporate Overhead130,000 5.9%Operating Profit249,000 11.0% Investment $10,000 Yearly Depreciation1,2 $1,428

    Yearly Savings Food $800 Labor $1,200 Energy $3,600 $5,400 Other Savings Safety Speed Less Downtime

    IRR3 50%

    Payback period < 2 years

  • Competitive AdvantageGlobal operating platform provides significant barriers to entry

  • New Product Pipeline Foodservice

    Mini WOW! Oven

    Rethermalizer

    Solstice Supreme Fryer

    Redesigned Combi-Ovens

    500 Series Range

    Tanduri Oven

    Revolving Tapinyaki Griddle

    High H Oven

    Hydrovection Oven

    Rocket Fryer

    Ventless Hood

    Pressure Fryer

    Visual Cooking Combi-Ovens

    Samooza Fryer

    New products represent more than 20% of net sales

  • New Product Pipeline Food Processing

    Cyclone Belt Oven

    Flash Pasteurization

    Mid-Size J-Con Oven

    Wireless Controls

    2007 Introductions2008 Introductions

    Conveyor Fryer

    Co-Extrusion

    Forming Equipment

    Intellijet Water Cutter

    New products typically carry profit margins >5% higher than existing products

  • Investment Highlights

    Leading value-added manufacturer of hot commercial food service and processing equipment (#1 or #2 market share in each product)Products are critical to customers, represent small portion of their budgets, and provide high ROIsUnique global operating platform provides significant barriers to entryU.S. restaurant sales have never declinedDiversified revenue base with exposure to high growth end markets Focus on continued operational improvements and margin expansionSuccessful track record of creating significant value through acquisitions Long-term annual EPS growth target of 20%, consistent with historical performance Proven senior management team with decades of industry experience

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