Saputo Inc.

$($in millions of CDN dollars$)$

Earnings

Years ended March $31202020192018$

Revenues $14,943\mathrm{.}513,501\mathrm{.}911,542\mathrm{.}5$

Operating costs excluding amortization, restructuring $13,475\mathrm{.}712,280\mathrm{.}610,277\mathrm{.}8$

Earnings before $...1,467\mathrm{.}81,221\mathrm{.}31,264\mathrm{.}7$

Depreciation and amortization $467\mathrm{.}2313\mathrm{.}0226\mathrm{.}3$

Gain on disposal of asssets $-(194\mathrm{.}5)-$

Inventory revaluation $40\mathrm{.}1--$

Acquisition, restructuring and other costs $46\mathrm{.}051\mathrm{.}440\mathrm{.}6$

Gain on hyperinflation $(27\mathrm{.}8)(18\mathrm{.}5)-$

Interest on long$-$term debt $95\mathrm{.}666\mathrm{.}633\mathrm{.}8$

Other financial charges $47\mathrm{.}417\mathrm{.}714\mathrm{.}1$

Earnings before income taxes $799\mathrm{.}3985\mathrm{.}6949\mathrm{.}9$

Income taxes $216\mathrm{.}5230\mathrm{.}397\mathrm{.}4$

Net earnings $582\mathrm{.}8755\mathrm{.}3852\mathrm{.}5$

Balance Sheet

As at March $312020201920182017$

ASSETS

Current assets

Cash and cash equivalents $319\mathrm{.}4112\mathrm{.}7122\mathrm{.}2250\mathrm{.}5$

Receivables $1,371\mathrm{.}81,248\mathrm{.}2944\mathrm{.}9863\mathrm{.}2$

Inventories $2,220\mathrm{.}91,681\mathrm{.}01,234\mathrm{.}51,172\mathrm{.}5$

Income taxes receivable $50\mathrm{.}334\mathrm{.}152\mathrm{.}015\mathrm{.}0$

Prepaid expenses and other assets $106\mathrm{.}657\mathrm{.}868\mathrm{.}879\mathrm{.}3$

$4,069\mathrm{.}03,133\mathrm{.}82,422\mathrm{.}42,380\mathrm{.}5$

Property plant and equipment $3,850\mathrm{.}03,095\mathrm{.}42,220\mathrm{.}02,165\mathrm{.}5$

Right$-$of$-$use assets $417\mathrm{.}9--$

Goodwill $3,219\mathrm{.}52,597\mathrm{.}62,417\mathrm{.}32,240\mathrm{.}5$

Intangible assets $1,640\mathrm{.}7876\mathrm{.}2823\mathrm{.}1662\mathrm{.}3$

Other assets $545\mathrm{.}3131\mathrm{.}685\mathrm{.}799\mathrm{.}7$

Deferred income taxes $50\mathrm{.}751\mathrm{.}034\mathrm{.}548\mathrm{.}1$

Total assets $13,793\mathrm{.}19,885\mathrm{.}68,003\mathrm{.}07,596\mathrm{.}6$

LIABILITIES

Current liabilities

Bank loans $528\mathrm{.}5130\mathrm{.}4193\mathrm{.}393\mathrm{.}8$

Accounts payable and accrued liabilities $1,838\mathrm{.}91,442\mathrm{.}21,068\mathrm{.}61,008\mathrm{.}3$

Income taxes payable $51\mathrm{.}436\mathrm{.}526\mathrm{.}591\mathrm{.}3$

Current portion of long$-$term debt $-323\mathrm{.}44\mathrm{.}4-$

Current portion of lease liabilities $74\mathrm{.}7---$

$2,493\mathrm{.}51,932\mathrm{.}51,292\mathrm{.}81,193\mathrm{.}4$

Long$-$term debt $3,542\mathrm{.}31,943\mathrm{.}91,420\mathrm{.}91,500\mathrm{.}0$

Lease liabilities $340\mathrm{.}1---$

Other liabilities $98\mathrm{.}586\mathrm{.}466\mathrm{.}768\mathrm{.}9$

Deferred income taxes $759\mathrm{.}6502\mathrm{.}3424\mathrm{.}9511\mathrm{.}4$

Total liabilities $7,234\mathrm{.}04,465\mathrm{.}13,205\mathrm{.}33,273\mathrm{.}7$

EQUITY

Share capital $1,685\mathrm{.}7991\mathrm{.}7918\mathrm{.}9871\mathrm{.}1$

Reserves $778\mathrm{.}4713\mathrm{.}8662\mathrm{.}4812\mathrm{.}7$

Retained earnings $4,095\mathrm{.}03,715\mathrm{.}03,216\mathrm{.}42,639\mathrm{.}1$

Total equity $6,559\mathrm{.}15,420\mathrm{.}54,797\mathrm{.}74,322\mathrm{.}9$

Total liabilities and equity $13,793\mathrm{.}19,885\mathrm{.}68,003\mathrm{.}07,596\mathrm{.}6$

Cash Flows

Years ended March $31202020192018$

Cash flows related to the following activities:

Operating

Net earnings $582\mathrm{.}8755\mathrm{.}3852\mathrm{.}5$

Adjustments for:

Stock$-$based compensation $33\mathrm{.}541\mathrm{.}034\mathrm{.}3$

Interest and other financial charges $143\mathrm{.}084\mathrm{.}347\mathrm{.}9$

Income tax expense $216\mathrm{.}5230\mathrm{.}397\mathrm{.}4$

Depreciation and amortization $467\mathrm{.}2313\mathrm{.}0226\mathrm{.}3$

Loss $($gain$)$ on disposal of property plant and equipment $(2\mathrm{.}0)(195\mathrm{.}1)(0\mathrm{.}7)$

Impairment charges $12\mathrm{.}90\mathrm{.}210\mathrm{.}6$

Inventury revaluation $40\mathrm{.}1--$

Foreign exchange gain on debt $(47\mathrm{.}2)(16\mathrm{.}0)-$

Share of JV earnings, net of dividends $11\mathrm{.}51\mathrm{.}00\mathrm{.}9$

Gain on hyperinflation $(27\mathrm{.}8)(18\mathrm{.}5)-$

Difference between funding of employee plans and costs $(8\mathrm{.}3)0\mathrm{.}31\mathrm{.}8$

Changes in non$-$cash operating working capital items $(106\mathrm{.}7)(83\mathrm{.}2)(115\mathrm{.}2)$

Cash generated from operating activities