Good Food makes Great Results

2016 Results

April 2017

1
 Forward Looking Information
Certain statements in this presentation may be forward-looking in nature. These include (but
are not limited to): references to liquidity, earnings and anticipated earnings from growth in
same store sales and new restaurant openings. Actual results may differ from those
expressed or implied in these forward-looking statements.

The forward-looking statements contained in this presentation are subject to a number of

risk factors, including the ability of A&W Food Services of Canada Inc. (Food Services) to
implement its strategies regarding the marketing of the A&W system, and the opening of new
A&W restaurants, general economic and business conditions, financial and political instability,
and other factors disclosed previously and from time to time in the Funds public filings. Any
forward-looking statements in this presentation should be evaluated in light of these
important factors.

2
 Our Time Together

Overview/Introduction
Strategy
Climate
Results

3
 Canadas Second Largest Hamburger Chain

870+ restaurants Coast to Coast

4
Signature Products

5
Over 490 Freestanding Restaurants

Cornwall, ON
6
119 Convenience Locations

Exeter, ON
7
#1 Burger Restaurant in Malls

8
30+ Urban Locations

9
#1 Root Beer

10
$50 Billion Food Service Industry: Canada

Retail
7%
Casual Dining
19% Fine Dining
4%

Midscale
QSR
19%
51%

Source: NPD Crest 12 months ending June 2016 (Canada)

11
$25 Billion QSR Industry: Canada
CHICKEN
3%
SANDWICH VARIED
11% MENU
9%
DONUT
30%

QSR BURGER
31%

PIZZA COFFEE/TEA
11% SPECIALITY
5%

Source: NPD Crest 12 months ending June 2016 (Canada )

12
 A&W Growing Faster than Competitors

$3,888 $3,896

(Not to $1,093
Scale) $986

$638 $623
$352 $370
$264 $296

McDonald's A&W Wendy's Burger King Harvey's

2014 and 2015 Canadian Burger Industry Sales Results

Source: Canadian Foodservice and Hospitality magazine (June 2016)

13
 A&W Strengths

Experience
Strategy (A unique strength 40+ years)
Climate

14
 Experienced Executives

Paul Hollands Chief Executive Officer & Chairman

Susan Senecal President & Chief Operating Officer
Trish Sahlstrom Sr. VP & Chief Commercial Officer
Janice Beer VP, People Potential
Don Leslie Chief Financial Officer
Neil Farmer VP, Operations
Rob Fussey VP, Marketing, Concept Innovation, Design & Construction
Patti Parente VP, Real Estate & Franchising
Terry Taciuk VP, Information & Business Analytics
Angela Griffiths VP, Food Safety & Animal Welfare

(Average years experience of 22+ years)

Strategy Driven
Our Mission
To delight time-crunched
Canadian burger lovers with
the joy of great tasting natural food,
made by people they trust.

16
The Market 2012

McDonalds
A&W

Burger King Harveys

Wendys
Repositioning

Burger King McDonalds

A&W

Wendys Harveys
 Millennials make more foodservice visits
than any other generation
Commercial Restaurants
Annual Meal / Snack Occasions Per Capita

224
209
178 177
156
125

Total Under 18 18-34 35-44 45-64 65+

19
Strategic Thrusts
Drive natural ingredient repositioning

Deliver industry leading branded guest experience

Accelerate new restaurant growth

Most profitable restaurants

Technology & information

Build Climate
20
 Thrust #1
Drive natural repositioning transform the QSR
burger paradigm and position A&W as the leader in
providing great tasting natural food.
Relentless innovation in natural food
No no-nos in all our food
Communicating our innovation and our positioning
Branded service experience
Aggressive re-imaging of our restaurants

21
Better Beef
Natural Eggs
Bacon from Pork Raised Without Antibiotics

24
Chicken Raised Without Antibiotics
New Good Food Restaurant Design

26
New Good Food Restaurant Design

27
 Thrust #2
Deliver industry leading branded guest experience
Branded guest experience
Significantly improve standards compliance
Measurement tools and feedback
Top Tier employer

28
Guest Connect

29
Employee Experience

30
 Thrust #3
Accelerate new restaurant growth
Urban
Millenial franchising model.
Small towns in Quebec and Ontario with a new lower sales
model
Gas/Convenience partnerships
Traditional FS restaurants, especially in Ontario and Quebec

31
New Restaurant Growth
 Thrust #4
Most Profitable Restaurants
To dramatically improve the financial performance of our
restaurants

33
 Thrust #5
Technology and Information invest to build the
technological infrastructure and the organizational
skills to enable our key strategic thrusts to succeed.

Ideal restaurant level technology package

Data analytics tools and systems, particularly in
operations

34
 Thrust #6
Build our Climate
Build a powerful connection of trust with our guests
Harness the energy and passion of all our partners

35
 A&W Climate Goals
I care for our guests first, before anything else.
We earn the trust of our guests by always doing the right thing.
We work together as partners pursuing common goals and shared
success.
We listen to understand each other.
I invite, share and act on feedback to continuously learn and
improve.
I recognize, celebrate and take pride in our big and small wins.
We relentlessly pursue being the best. Good enough is never
good enough.
We challenge each other to think big. 36
Strategic Thrusts
Drive natural ingredient repositioning

Deliver industry leading branded guest experience

Accelerate new restaurant growth

Most profitable restaurants

Technology & information

Build Climate
37
 System Sales Growth

1,093 1,162
1,100
986
1,000
891
900 851
825
794
800 757
724
700 658
613
600

500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

38
 Restaurant Growth
31 Openings in 2016

879
900 854
831
802
800 773
749
730
695 710
674 683
700

600

500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

39
 Same Store Sales Growth
8.0% 7.4% 7.6%
7.2% 7.3%
7.0% 6.3%
6.0%
5.0%
5.0%
3.9% 3.7%
4.0% 3.4%

3.0% 2.2%
1.8%
2.0% 1.5%
0.7%
1.0%
-1.4% 0.0% -0.7%
0.0%
-1.0%
-2.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

40
 Industry Leading System Sales Growth
11.7%
12.0% 11.0%
10.6%
9.7% 10.0%
10.0% 9.2%

7.8% 7.5%
8.0%
6.3% 6.3%
6.0% 5.0%
4.5% 4.8%
3.8%
4.0% 3.2% 3.2%

2.0%

0.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

41
 Top-Line Income Fund Structure

Royalties are based on sales reported by restaurants in the

Royalty Pool
Investors are not subject to variability of earnings or expenses
associated with an operating business

Sales of Less Fund Distributions

Royalty
Royalty Pool 3% expenses to
Income and taxes
Unitholders
Restaurants

42
 Fund Financial Performance
$k 2014 2015 2016
Gross Sales 957,194 1,060,851 1,137,820
Royalty Income 28,716 31,826 34,135
Admin. Expense 779 558 586
Interest 2,421 2,419 2,574
Cash Taxes 3,976 4,933 5,591
Taxes on LP transitional 727 727 909
Income
Distributable Cash 20,813 23,189 24,475

43
 Fund Financial Performance
$k 2014 2015 2016
Distributable Cash 20,813 23,189 24,475
Distributable cash for Fund and Food (19,834) (21,413) (24,177)
Services
Refundable income tax - - (2,029)
Surplus (Deficit) 979 1,776 (1,731)
Surplus beg of period 1,393 2,372 4,148
Surplus end of period 2,372 4,148 2,417
Payout ratio 96.6% 92.4% 98.8%

44
 Distribution Rate
Increased twice during 2015
from 11.7 cents through to 12.5 cents per unit per month
Total distributions in 2015 $1.440
2.6% increase over 2014 distribution rate
Increased twice during 2016
from 12.5 cents through to 13.3 cents per unit per month
Total distributions in 2016 $1.558
Current annual distribution rate $1.596

45
 Trailing Four Quarters Payout Ratio
110.0%
106.2%107.0%
104.1%103.8%
105.0% 102.1%
100.0%
98.8%
100.0% 96.6% 96.0% 96.1%
94.9%
93.5%
95.0% 92.5%92.4% 92.2%

90.0%

85.0%

80.0%

46
 Average Unit Trading Price
$32.33
$27.67
$30
$23.75
$25 $21.46 $21.83
$20.27
$18.07
$20
$13.84
$15
$10
$5
$0
2009 2010 2011 2012 2013 2014 2015 2016

47
48