Investor Presentation

July 2019

Katie Brine, Director Finance, Investor Relations Phone: 905-238-7124 x2092 Email: katie.brine@.com Disclaimers

Forward-Looking Information

This document contains forward-looking statements which are presented for the purpose of assisting the reader to contextualize the Limited’s (“Empire” or the “Company”) financial position and understand management’s expectations regarding the Company’s strategic priorities, objectives and plans. These forward-looking statements may not be appropriate for other purposes. Forward-looking statements are identified by words or phrases such as “estimates”, “plans”, “predicts”, “anticipates” and other similar expressions or the negative of these terms.

These forward-looking statements include, but are not limited to, the following items:

 The Company’s expectations regarding the impact of Project Sunrise, including expected cost savings and efficiencies resulting from this transformation initiative, the expected timing of the realization of overall and fiscal 2020 in-year incremental benefits, and the expected $50 million overachievement of the initial $500 million target which could be impacted by several factors, including the execution and completion of category resets, time required by the Company to complete the project as well as the factors identified under the heading “Risk Management” in the fiscal 2019 annual Management’s Discussion & Analysis (“MD&A”);  The Company’s estimates regarding future capital expenditures which includes acquisitions of property, equipment and investment properties as well as additions to intangibles, which may be impacted by operating results and the economic environment;  The FreshCo expansion in Western , including the Company’s expectations regarding future operating results and profitability, the amount and timing of expenses, and the number, location, feasibility and timing of conversions, all of which may be impacted by construction schedules and permits, the economic environment and labour relations; and  The Company’s expectations regarding the implementation of its online grocery home delivery service which may be impacted by the timing of launching the business, the overall customer response to the service and the performance of its business partner, Ocado. By its nature, forward-looking information requires the Company to make assumptions and is subject to inherent risks, uncertainties and other factors which may cause actual results to differ materially from forward-looking statements made. For more information on risks, uncertainties and assumptions that may impact the Company’s forward-looking statements, please refer to the Company’s materials filed with the Canadian securities regulatory authorities, including the “Risk Management” section of Empire’s fiscal 2019 annual MD&A.

Non-GAAP Financial Measures & Financial Metrics

There are measures and metrics included in this earnings call presentation, such as adjusted EBITDA, adjusted earnings per share, same-store sales, free cash flow, funded debt and total capital that do not have a standardized meaning under generally accepted accounting principles (“GAAP”) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures and metrics because it believes certain investors use these measures and metrics as a means of assessing financial performance.

For a more complete description of Empire’s non-GAAP measures and metrics, please see Empire’s MD&A for the fiscal year ended May 4, 2019. 2 CEO’s Direct Reports

3 Empire Company Limited – Who are we?

• Canadian company headquartered in Stellarton, Quick Facts – Empire* Nova Scotia. Share price (CAN$)** $33.74 • Key businesses include food retailing and related real estate through wholly owned subsidiary Sobeys 52-Week High ** $33.78 Inc. and a 41.5% equity accounted interest in 52-Week Low ** $22.69 Crombie REIT. 30-day Average daily trading volume** 982,943 • Sobeys is one of only two national grocery retailers in Canada, serving the food shopping needs of Shares outstanding (diluted) 272.8M Canadians under retail banners that include Sobeys, Quarterly dividend $0.12 , IGA, , FreshCo, Price Chopper, , Farm Boy and Lawtons Drugs. Number of Stores*** 1,500 • In addition to food retail we are: Number of Retail fuel locations 350 • Pharmacy retailers with in-store pharmacy Employees ~123,000 banners and free-standing locations through Total Square footage ~40.0 M Lawton’s Drug Stores; Communities served 900 • Wholesalers with distribution to our corporate and franchised stores along with over 8,000 *As at Q4, Fiscal 2019 (May 4, 2019) unless noted otherwise **As of July 19, 2019 retail stores and independent wholesale *** See http://corporate.sobeys.com/at-a-glance/ for details of accounts; and stores per banner, and location • Owner and operator of fuel and convenience stores, and liquor operations. 4 Key Achievements – Last twelve months

2018 July • Acquired 51% of South Asian grocer, Kim Phat; 3 locations in Montreal, expanding the Company’s ethnic food expertise September • Announced first quarter results reflecting a return to sustainable, positive tonnage December • Completed the acquisition of Farm Boy, ’s fastest growing food retailer • Announced second quarter results reflecting strong food same-store sales and second consecutive quarter of tonnage growth 2019 January • Announced progress implementing a labour decision provided by a Special Officer appointed by the Government in B.C. • Decision sets terms that provide a framework to improve store profitability and enable conventional Safeway stores to compete on a level playing field in B.C. • Decision enabled Empire to move forward with Discount expansion strategy in B.C. March • Announced third quarter results reflecting strong sales momentum and the third consecutive quarter of tonnage growth April • Opened first Western Canada FreshCo store in in Mission B.C. May • Unveiled Voilà by Sobeys and Voilà par IGA – the name and brand for the Company’s online grocery home delivery service for the Greater Area, and major cities in the province of Quebec • Announced changes to Executive Committee, as the Company sets its sights on stronger execution, innovation & growth June • Announced locations of additional FreshCo store investments in Western Canada - 18 Western FreshCo locations confirmed • Announced fourth quarter and full year results reflecting fourth consecutive quarter of tonnage growth • Same-store sales excluding fuel increased by 3.8% for the quarter (4.2% excluding pharmacy) • Project Sunrise exceeded targets for fiscal 2019 – achieved $200 million of incremental savings in fiscal 2019, and increased total savings target to $550 million • Annual dividend per share increased 9% to $0.48 • Capital investment program for fiscal 2020 expected to be $600 million • Intent to repurchase approximately $100 million of Non-Voting Class A shares • First full quarter of Farm Boy results 5

Strategic Focus

Reset our ​Bolster our Win in our Enhance Win E-commerce Foundation Brand Stores Discount Successful ​Strengthen the Improve service Expand discount Launch home completion of emotional and offering in our to Western delivery through Sunrise by end of connection to our conventional Canada and Ocado fiscal 2020. banner brands. stores. refine our partnership. FreshCo model.

6 Project Sunrise Update

In the fourth quarter of fiscal 2017, the Company launched Project Sunrise, a comprehensive, three year transformation initiative intended to simplify organizational structures and reduce costs. The initiative is expected to generate at least $550 million in annualized benefits by the end of fiscal 2020 and will be achieved through three phases:

1) Organizational realignment – from a regional to a national structure, is complete. 2) Operational efficiencies – store operations, labour standards and other operational process initiatives continue to progress as planned, with increased benefits achieved in fiscal 2019 and planned for 2020. 3) Cost of goods sold – harmonization of costs with suppliers; more competitive net acquisition costs achieved; category resets are providing an improved, simplified and in some cases more innovative assortment for customers. Financial benefits from Phases one and two largely impacted selling and administrative expenses. Phase three financial benefits will be reflected mostly in gross margin expansion and growth in sales via improved customer experience. Approximate In-Year Year Achieved Through Savings break-down ($M) Organizational design, indirect sourcing cost reductions and improvements in store 1 F2018 (completed) ~100 operations. 2 F2019 (completed) ~200 Initial rollout of category resets, continued cost reductions and operational improvements. Completion of category resets rollout, continued cost reductions and operational 3 F2020 (expected) ~250 improvements. Total ~550

Initial Target (set May 2017) 500 Expected to exceed by ~50 7 Project Sunrise Update

Significant improvement in Empire’s key metrics since the launch of Project Sunrise. Fiscal 2019 2017 Change 52 weeks 52 weeks +/- 4-May-19¹ 6-May-17 Sales $25,142.0 $23,806.2 + 5.6% Same-store sales, excluding fuel 4.3% 3.3% + 100 bps Gross margin 24.2% 24.0% + 20 bps Adjusted EBITDA $1,076.2 $769.9 + 39.8% Adjusted EBITDA margin 4.3% 3.3% + 100 bps Selling and Administrative margin (adjusted)² 22.1% 22.9% - 80 bps Adjusted EPS $1.50 $0.70 + 114.3%

$26 Sales ($B) $1,400 Adjusted EBITDA ($M) $2.00 Adjusted EPS ($/share) $25 $1,200 +11.8% CAGR +28.9% CAGR +1.8% CAGR³ $1,000 $1.50 $25 $800 $1.00 $24 $600 $400 $24 $0.50 $200 $23 $0 $0.00 2017 2018 2019 2017 2018 2019 2017 2018 2019

¹ Empire’s results for the fiscal year ended May 4, 2019 include Farm Boy operations as of December 10, 2018. ²Selling and Administrative costs, excluding the impact from adjustments made to operating income during the fiscal year .See Empire’s fiscal 2019 MD&A. ³ Compound annual growth rate. 8 Farm Boy Acquisition

Empire’s fourth quarter of fiscal 2019 was the first full quarter including Advances Ontario Strategy, Accelerating Ontario Presence and GTA Growth contributions from Farm Boy.

• The acquisition closed on December 10th, 2018.

• Farm Boy contributed to Company results for 21 weeks of fiscal 2019; Ottawa sales of $212.7 million and net earnings of $7.9 million. Kingston • For fiscal 2020, the Company expects to spend approximately $70 in capital for the expansion of the Farm Boy Toronto store network in Ontario

• Since the acquisition, the Company Waterloo has opened two new Farm Boy stores Hamilton in Ontario. Three further stores will

open in fiscal 2020. London • Farm Boy Private Label will be part of the Voilà by Sobeys offering when it launches in Spring 2020. Farm Boy Stores acquired Farm Boy Stores opened Farm Boy Stores announced to open Existing Farm Boy Distribution Centre Announced Farm Boy Distribution Centre Opening Note – For further company and transaction information, please see Appendix A 9 Ocado Solutions

With more than 15 years at the forefront of innovation and success in grocery ecommerce, Ocado will partner exclusively in Canada with Sobeys on our end-to-end e-commerce solution.

Key facts:

• Canadian online grocery market is

growing 30%+ per year

• Greater Toronto Area (“GTA”) Customer Fulfilment Centre (“CFC”) complete in 2 years • Soft launch in Spring 2020

Ocado by the numbers*: • 99% order accuracy • 95% delivery punctuality • 0.7% product waste • 318,000 orders a week (average) • 741,000 active customers *Per Ocado Group’s 2019 Half Year Report This is a link to a video showing the Ocado’s Andover facility. https://youtu.be/EeMTZd68fOU

10 Financial Results – Annual

Fiscal

F2019 F2018 F2017 F2016 52 weeks 52 weeks 52 weeks 53 weeks

4-May-19¹ 5-May-18 6-May-17 7-May-16

Sales $25,142.0 $24,214.6 $23,806.2 $24,618.8

Same store sales growth (decline), excluding fuel 2.7% 0.5% (2.2)% 0.3%

Inflation (deflation) at quarter end – internal 2.2% 0.8% (1.9)% 2.2%

Gross profit $6,083.6 $5,900.5 $5,707.2 $5,957.6

Gross margin 24.2% 24.4% 24.0% 24.2%

Adjusted EBITDA $1,076.2 $1,014.7 $796.9 $1,161.4

Adjusted EBITDA margin 4.3% 4.2% 3.3% 4.7%

Adjusted earnings per share $1.50 $1.27 $0.70 $1.50 Free cash flow ² $540.7 $808.9 $619.7 $367.3

Capital expenditures $434.6 $288.0 $514.5 $672.0

Dividends per share $0.44 $0.42 $0.41 $0.40

Share price $29.94 $25.01 $21.50 $21.09

¹ Empire’s results for the fiscal year ended May 4, 2019 include Farm Boy operations as of December 10, 2018. All metrics, including same-store sales, include the consolidation of Farm Boy operations ² The Company revised the definition of Free Cash Flow in Q4 F19 to be calculated as cash flows from operating activities, plus proceeds on disposal of property, equipment and investment property, less acquisitions of property, equipment, investment property and intangibles. Numbers in the chart have been restated to reflect the new definition. 11

Financial Results – 12 Quarter Review

Fiscal Fiscal Fiscal 2019 2018 2017

Q4 F19 Q3 F19² Q2 F19 Q1 F19 Q4 F18 Q3 F18 Q2 F18 Q1 F18 Q4 F17 Q3 F17 Q2 F17 Q1 F17

May 4 Feb. 2 Nov. 3 Aug. 4 May 5, Feb. 3, Nov. 4, Aug. 5, May 6, Feb. 4, Nov. 5, Aug. 6,

2019 2019 2018 2018 2018 2018 2017 2017 2017 2017 2016 2016

Sales $6,220.4 $6,247.3 $6,214.0 $6,460.3 $5,886.1 $6,029.2 $6,026.1 $6,273.2 $5,798.9 $5,889.8 $5,930.9 $6,186.6

Same store sales, growth (decline) 3.8% 3.3% 2.5% 1.3% 0.0% 1.1% 0.4% 0.5% (1.6)% (3.7)% (2.6)% (1.2)% excluding fuel

Inflation (deflation) – internal 2.2% 1.8% 1.3% 0.0% 0.8% 1.6% 0.7% 0.5% (1.9)% (2.2)% (0.1)% 1.5%

Gross profit $1,577.5 $1,511.7 $1,482.1 $1,512.3 $1,451.3 $1,444.7 $1,473.5 $1,531.0 $1,420.9 $1,394.8 $1,400.7 $1,490.8

Gross margin 25.4% 24.2% 23.9% 23.4% 24.7% 24.0% 24.5% 24.4% 24.5% 23.7% 23.6% 24.1%

Adjusted EBITDA $300.1 $218.3 $279.1 $278.7 $240.4 $253.3 $242.2 $278.8 $193.9 $178.7 $181.2 $243.1

Adjusted EBITDA margin 4.8% 3.5% 4.5% 4.3% 4.1% 4.2% 4.0% 4.4% 3.3% 3.0% 3.1% 3.9%

Adjusted EPS $0.46 $0.27 $0.40 $0.37 $0.35 $0.33 $0.27 $0.32 $0.18 $0.13 $0.12 $0.27

Free cash flow ¹ $175.6 $179.2 $58.4 $127.5 $342.7 $248.4 $111.2 $106.6 $150.7 $15.5 $6.6 $446.9

Capital expenditures $227.1 $86.5 $73.4 $47.6 $84.0 $70.9 $58.5 $74.6 $111.9 $96.3 $171.3 $135.0

Dividends per share $0.110 $0.110 $0.110 $0.110 $0.105 $0.105 $0.105 $0.105 $0.1025 $0.1025 $0.1025 $0.1025

Share price $29.94 $29.75 $23.43 $26.12 $25.01 $23.31 $23.73 $20.39 $21.50 $16.24 $18.51 $20.97

¹ The Company revised the definition of Free Cash Flow in Q4 F19. Numbers in the above chart have been restated to reflect the new definition (see previous slide for full definition).

² Q3 F19 results include $45 million in costs related to the B.C. labour buyouts and FreshCo conversion store closures which impacted selling and administrative costs 12 Appendices A – C Appendix A Farm Boy – Company Overview

. Founded in 1981, Farm Boy Inc., (“Farm Boy”) is an Ontario- based retail grocer that has a focus on high quality and locally- sourced meat and produce and offers a wide range of exceptional private label and prepared foods and renowned customer service

. In 2012, Berkshire Partners, a leading global private equity firm specializing in consumer products and retail investments, partnered with the Bellemare family and invested in Farm Boy

. Farm Boy is led by Jean-Louis Bellemare (founder and co-CEO) and Jeff York (co-CEO), both are continuing their leadership roles with Farm Boy

. Farm Boy operates a unique and compelling brand that resonates with Canadians and has a passionate and loyal customer base

. Scalable platform with infrastructure in place to support future long-term growth

. Over the last 5 years, Farm Boy has approximately doubled store count and delivered strong revenue, EBITDA and free cash flow growth

. Today, Farm Boy has 28 stores with defined plans for continued expansion into the GTA 14 Farm Boy – Key Investment Highlights

1 Aligned with Empire’s Strategic Priorities

2 Leading Specialty Food Retailer with Strong Brand Loyalty

3 Attractive, Scalable Platform Primed for Growth

4 Enhances Presence in Urban Markets with Established, Well-Known Brand in Ontario

5 Exceptional Private Label Offering

6 Retention of Strong and Driven Management Team

1 5 Farm Boy – Transaction Overview

. Empire, through a subsidiary, signed an agreement on September 24, 2018, to acquire the business of Farm Boy for a total purchase price of $800 million Purchase . Farm Boy is set up as a separate company within Empire’s structure Price . Farm Boy’s Co-CEOs, together with members of their senior management team, have reinvested for a 12% interest of the continuing Farm Boy business . Represents a 14.1x multiple of Farm Boy’s estimated EBITDA in Empire’s fiscal 2020(1)

. Accretive to adjusted earnings per share and operating cash flow per share in the first full fiscal year after closing

. Empire’s fourth quarter of fiscal 2019 was the first full quarter including contributions from Farm Boy

Financial . Empire’s fiscal year 2020 will be the first year including a full year of contributions from Farm Boy Profile . EBITDA CAGR of 21% with compelling EBITDA margin profile(2)

. Plan to double store count, sales and EBITDA in the next 5 years

. Free cash flow generation more than sufficient to self-fund growth

. All stores are profitable and growing . The acquisition was financed through a combination of cash on hand and a new $400 million senior, unsecured, non- revolving two-year credit facility Financial Flexibility . Rapid deleveraging profile . Significant liquidity available from unutilized facilities

Timing & . Following receipt of a no-action letter from the Canadian Competition Bureau, the transaction closed on December Approvals 10, 2018

(1) Based on a total enterprise value of $800 million and performance under Empire’s ownership, including growth related to same-store sales and new store openings (2) For the period from FY2014 through the 52 weeks ended July 14, 2018 16 Appendix B FreshCo 2.0

17 FreshCo 2.0

18 Appendix C

Voilà – Canada’s best online grocery home delivery service

Voilà by Sobeys promises to help Canadians stay one step ahead of their busy lives.

Key Facts:

• Powered by Ocado’s world-leading online grocery engine, Voilà by Sobeys will offer an expansive product selection of up to 39,000 products, including high quality fresh produce, at prices comparable to Sobeys and IGA.

• Construction of CFC in Vaughan, Ontario is on track to launch in Spring 2020.

• Second CFC announced to open in Montreal in 2021, serving major cities in Quebec and the Ottawa Area.

• Approximately 1,500 jobs will be created in the GTA and 1,500 jobs in Montreal as a result of this e-commerce expansion.

• Empire will partner with Crombie REIT to develop the second CFC in Montreal. • The Company will lease the location from Crombie and Crombie will build the site to Empire’s specifications. Voilà by Sobeys – Vaughan CFC Outside

20 Voilà by Sobeys – Vaughan CFC Inside

Vaughan CFC

In progress – picture from Ocado’s live CFC