The Middleby (MIDD) investor relations material

Strategic transformation and business focus

• Completed spin-offs and joint ventures have positioned the company as a pure-play Commercial Foodservice leader, emphasizing scale, innovation, and shareholder returns, while creating two independent, capability-aligned companies with distinct growth strategies and capital structures.

• Over the past 3-5 years, significant investments in platform capabilities, innovation, and operational excellence have transformed the business model, with both entities leveraging innovation, operational excellence, and targeted M&A to scale and capture market share.

• The commercial foodservice business now leverages a leading portfolio of brands, cross-selling solutions, and a diversified, blue-chip customer base, while the food processing spin-off, Midera, targets total line solutions and aftermarket expansion.

• Recurring revenue streams, especially from parts, service, and replacement markets, provide stability and growth opportunities for both companies.

• Strategic focus on high-growth segments like automated cooking, ventless rapid cook, beverage solutions, and IoT-enabled innovation.

Innovation, technology, and go-to-market initiatives

• Accelerated innovation through acquisitions in controls, software, IoT, and automation, enabling rapid new product introductions and digital platforms such as Open Kitchen.

• Go-to-market strategy retooled with consolidated rep groups, enhanced dealer partnerships, and dedicated consultant and national account teams, deepening customer relationships and accelerating solution selling.

• Middleby Innovation Kitchens and digital platforms, including Middleby Shop, drive customer engagement and streamline sales.

• Service transformation underway with a tech-enabled, captive service network and lifecycle management tools (AMI), aiming to improve customer experience and unlock new revenue streams.

• AI and data-driven tools are being embedded across operations, sales, and service to enhance efficiency and customer value.

Financial outlook and growth drivers

• Commercial foodservice segment targets 3%-6% organic revenue CAGR, 6%-9% Adjusted EBITDA CAGR, and 10%-15% EPS CAGR from 2025-2028, with 200-400bps margin expansion; Midera targets 5%-7% organic net sales CAGR and ~500bps adjusted EBITDA margin uplift by 2028.

• Margin expansion expected by 2028, driven by operational excellence, supply chain centralization, product line simplification, and lean manufacturing.

• Free cash flow conversion targeted near 100%, with CapEx under 2% and net leverage managed at 2x-3x for both companies.

• Capital allocation priorities include reinvestment in the business, share repurchases, and selective M&A to enhance the portfolio, with disciplined frameworks for strategic fit and value creation.

• Recent financial performance shows resilience, with 4% average organic net sales growth over 15 years and industry-leading EBITDA margins near 23% for commercial foodservice, and Midera targeting 20%-23% standalone adjusted EBITDA margin by 2028.