Company Presentation August 2021

Company Presentation

August 2021

Disclaimer This Presentation has been prepared by Freshlocal Solutions Inc. (“Freshlocal” or the “Company”, “we”, “us” or “our”) for information purposes only and is not intended to form the basis of any investment decision. It does not constitute an offer or invitation for the sale or purchase of any securities, businesses and/or assets or any recommendation or commitment by Freshlocal or any other person and neither this presentation, nor its contents nor any other written or oral information made available in connection with this presentation shall form the basis of any agreement or transaction. This Presentation does not purport to be comprehensive or to contain all the information that a recipient may need relating to Freshlocal. No representation or warranty, express or implied, is given and, so far as is permitted by law and no responsibility or liability is accepted by any person, with respect to the accuracy or completeness of the presentation or its contents or any oral or written communication in connection with the Presentation. In particular, but without limitation, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets or estimates contained in this presentation. Estimates, projections, targets, statistics and opinions contained in this Presentation are based on information available to Freshlocal. All estimates, statistics and opinions by their nature are based on a number of assumptions which may not prove to be correct and are inherently subjective. In addition, past performance may not be repeated or indicative of future performance which may be affected by a number of factors, including without limitation, the risk factors identified herein. This Presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale or distribution of these securities in any jurisdiction in which such offer, solicitation, sale or distribution would be unlawful. The securities of Freshlocal have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or under applicable state securities laws and, accordingly, the securities of Freshlocal may not be offered, sold, pledged or transferred, directly or indirectly in, into or within the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. This Presentation shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. NOTHING DESCRIBED IN THIS PRESENTATION NOR THE SECURITIES OF FRESHLOCAL HAVE BEEN RECOMMENDED, APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR BY THE SECURITIES REGULATORY AUTHORITY OF ANY STATE, PROVINCE ANY OTHER JURISDICTION, NOR HAS ANY SUCH SECURITIES REGULATORY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF ANY PROPOSED OFFER OF SECURITIES OR THE ACCURACY OR ADEQUACY OF THIS PRESENTATION. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. Except where otherwise indicated, the information contained in this Presentation speaks as of the date hereof or as of the date at which such information is expressed to be stated, as applicable. In giving this confidential company presentation, Freshlocal does not undertake and disavows any obligation to provide any additional information or to update this Presentation or any additional information or to correct any inaccuracies which may become apparent, except as required pursuant to applicable securities legislation.

Forward-Looking Information Certain statements in this Presentation are forward-looking statements under applicable securities laws, including statements as to future events, results and plans. Particularly, the growth and financial projections in this Presentation are forward-looking statements. Forward-looking statements are sometimes but not always identified by such words as “targeted”, “can”, “will”, “anticipates”, “projects”, expects”, “intends”, “likely”, “plans”, “should”, “could” or “may” or grammatical variations thereof. These forward-looking statements reflect Freshlocal’s current beliefs and are based on information currently available to Freshlocal and assumptions Freshlocal believes are reasonable. Actual results and developments may differ materially from results and developments discussed in the forward-looking statements as they are subject to a number of significant risks and uncertainties, including but not limited to: dependence on market growth; difficulties implementing and successfully executing its business and marketing for a software as a service model; changes in general economic conditions; failure to achieve expected revenue growth; changes in operating expenses; changes in legal or regulatory requirements; competitive pressures, including the introduction of competing technologies and competitors with greater financial resources; failure to anticipate and react quickly to changes in technology or in industry standards; changes in customer and market requirements and standards; Freshlocal may never achieve profitability; Freshlocal may require additional capital and investors may be diluted; a market for trading insecurities of Freshlocal may never develop; international business relationships and foreign currency exchange rates; cybersecurity risks; failure to recruit and retain key technical sales, marketing and management personnel; infringement of intellectual property or enforcement of Freshlocal’s intellectual property; and all the risks described under “Risk Factors” in the Company’s listing statement dated April 9, 2021, a copy of which is available on SEDAR at www.sedar.com. Certain of these risks and uncertainties are beyond the Company’s control. Consequently, all forward-looking statements are qualified by these cautionary statements, and there can be no assurances that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences or benefits to, or effect on, Freshlocal. Freshlocal undertakes no obligation to revise or update any forward-looking statements for any reason, except as required pursuant to applicable securities legislation.

Market and Industry Data Market data and industry forecasts contained herein have been obtained from industry publications, various publicly available sources and subscription-based reports as well as from management’s good faith estimates, which are derived from management’s knowledge of the industry and independent sources that management believes to be reliable. Industry publications, publicly-available sources and subscription-based reports generally state that the information contained therein has been obtained from sources believed to be reliable. We have not independently verified any of the information from such third-party sources nor have we ascertained the validity or accuracy of the underlying economic assumptions relied upon therein. We hereby disclaim any responsibility or liability whatsoever in respect of any third-party sources of market and industry data or information.

Non-IFRS Measures This presentation makes reference to non-IFRS measures, including “Gross Margin”, “Gross Profit”, “Annual Recurring Revenue (ARR)” and “Compound Annual Growth Rate (CAGR)”. This presentation also makes reference to “Active Customers”, “Average Order Size”, “Cost per Order”, “Delivery Accuracy”, “Inventory Turns”, and “Shrink”, which are financial and operating metrics used in our industry. These non-IFRS measures and industry metrics are not recognized under International Financial Reporting Standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures are used to provide readers with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that market participants frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. Please refer to Appendix A of this Presentation for the definitions of the foregoing non-IFRS measures.

Currency Unless otherwise noted, all references to “$” or “Dollars” are to Canadian Dollars.

+ + + Legal

Copyright © 2021. Freshlocal Solutions. Private & Confidential. All Rights Reserved 8/11/2021 2 Our Mission Our Vision Using innovation and technology to reduce Building the leading global eGrocery environmental impact while creating a safe Management Solution that provides a profitable and sustainable food ecosystem for all landscape for all grocery retailers to compete in

+ + + What drives us

Direct to consumer retail grocery serving $19 B SaaS-based eGrocery Management Solution (eGMS) grocery market in BC and Alberta1 enables profitable online fulfillment for global grocers Focus on fresh, local, organic grocery across all Strong market traction through customer wins in Europe aspects of our business and Canada, and well positioned for US market entry Demonstrated growth in revenues, active Long-term recurring SaaS revenues from our expansion customers, and average order size in the high-growth global eGrocery market

+ + + Our businesses

Source: 1. Statistics Canada. Survey of household spending (SHS), household spending, Canada, regions and provinces, annual (dollars), combined with management estimates. Our Journey Over 20 years of sustainably advancing eGrocery technology

TECHNOLOGIES

1997 2017 2019 2021 Local & Organic eGrocery Organic Brick & Mortar Grocer Complete eGrocery Software Solution United Under One Brand • Award winning online grocer • Alberta-based community favorite • SaaS for grocery retailers to operate profitable • Parent company re-branded as Freshlocal Solutions • Local and organic food pioneers • Five award-winning stores in AB online grocery fulfillment centers • Freshlocal common shares trading on TSX – “LOCL” • BC – Vancouver and Victoria • Two Be Fresh stores in BC • Partnered with Microsoft, Attabotics and others • AB – Calgary and Edmonton • Omni-channel strategy with SPUD.ca

Proven long-term expertise in grocery and eGrocery focused on fresh / local / organic eGrocery software built on proven expertise

+ + + Company timeline

$108 $108 M Revenues, $66.8 M

Revenue 41% Growth 68% $77 $66.8 Average Order $115 Size (AOS)1 $141 $39.7 21% AOS Growth1 18%

Active Customer 79% Growth1 30% Fiscal years FY2019 FY2020 YTD FY20 YTD FY21 ended September 30 Growth (%) 41% 68%

99% 98% 0.5% FY 2020 Year to Date FY 20212

Fill Rate1 Delivery Accuracy1 Food Waste Utilizing FoodX technology Utilizing FoodX technology Food waste as % of sales utilizing FoodX technology

All values in CAD. Sources: 1. See “Non-IFRS measures” in the disclaimer. 2. Year to Date includes Q1 and Q2 FY2020 (ended March 28, 2020) and FY2021 (ended April 3, 2021). eGrocery has arrived, and we believe it’s here to stay

A distinct set of drivers disrupting the global grocery marketplace pre-pandemic have continued to strengthen

Profitability Convenience Local Sustainability

Profitability is more than just unit eGrocery adoption well underway, Local grocery delivery and food Food waste / security are critical economics, it’s your return on capital further acceleration due to pandemic transparency are now expected problems for society and the environment

Making money in online grocery is Benefits of convenience and as a safer People want to know where their food Governments introducing legislation on proving to be difficult alternative for customers comes from > farm to table eGrocery single use plastics

~$25 ($10) +450% +228% 60% 86% $400B 8M

Fully-burdened in store Loss per order fulfilled eGrocery sales eGrocery customers Prefer local & organic Prefer transparent Food wasted Tons of plastic picking cost1 in-store (with delivery fee) when available2 companies3 globally (USD)4 to oceans annually5

+ + + Shifting landscape and expectations in global grocery

Copyright © 2021. Freshlocal Solutions. Private & Confidential. All Rights Reserved 8/11/2021 7 Sources: 1. Management estimate. 2. Canadian Grocer (2020). 3. Food Market Institute Insights 2020. 4. Geyer et al. (2017). 5. Bloomberg. The opportunity - ~US$3.0 Trillion global addressable market The total global grocery market is estimated at ~US$12 trillion in 20201, and online penetration is forecasted to reach 25% by 2025.2

Expected eGrocery penetration (USD)

4 United States3 $250 B $3.0 T Global

Summary of Top 175 US-based grocers (2018) Total annual revenues $830 B Avg. Annual Size Range Revenues # of retailers Small $390 M 110 Mid $1.6 B 30 Large $7.5 B 27 “Mega” $67 B 8

+ + + The global eGrocery opportunity

Sources: 1. Grand View Research. 2. Food Market Institute, Nielsen. 3. Mercatus. 4. Management assumes essentially flat growth in global grocery market to 2025. FoodX Improves eGrocery Economics The FoodX eGMS can drive significant reduction in costs when compared to a conventional eGrocery fulfillment approach

Traditional In-Store eGrocery Model eGMS

Pick

Expected cost per order Cost per order (CPO) ($24 – $28) Pack ($15 – $18) (CPO) fulfilment using 1 fulfilment 2

Ship

Potential average CPO ~20 – 50% 3 savings using

+ + + A solution that improves eGrocery economics

Sources: 1. Goldman Sachs Research. 2. Based on Freshlocal facility utilizing FoodX eGMS and internal operating results within FY 2020. 3. Indicative range of savings will vary based on SKUs, facility size, and product mix. Why we have the competitive advantage Our eGMS has grown from our deep roots in eGrocery, technology, logistics and operations

✓ Our FoodX eGMS is scalable and can adapt to unique needs of each location Software-based ✓ Continuous tech improvements sourced from our Vancouver innovation lab

✓ Nine months or less to deploy our end-to-end SaaS eGMS technology Superior Speed, Low Capex ✓ Substantially lower costs for up-front equipment and implementation

✓ Solution can be deployed in any size facility, for retailers locally or globally Flexible Deployment ✓ In Store (1k – 10k sq. ft.), Dark Store (10k – 50k sq. ft.), Centralized (50k+ sq. ft.)

✓ Integrates with hardware vendors to meet specific productivity/cost requirements Hardware Agnostic ✓ Automation level can be adapted to align with client needs

✓ The FoodX eGMS model becomes increasingly cost efficient with volume Profitable Unit Economics ✓ Profitability at 25% system utilization rate and above can be attained

+ + + Freshlocal’s FoodX eGMS solution

Copyright © 2021. Freshlocal Solutions. Private & Confidential. All Rights Reserved 8/11/2021 10 Strong potential for SaaS model within grocery market Outlining the potential of a SaaS solution in the US grocery market

Expected Expected Grocer Size1 Annual Sales1 eGrocery TMV2 Targeted Addressable Market3 (USD) (USD) (CAD)

Mid-sized $1.6 B $250 M - $360 M $8 M - $15 M

Large $7.5 B $1.2 B – $1.7 B $45 M - $65 M

Estimated On-line eGrocery Penetration

4 ❑ Targeting five new FoodX eGMS customers signed in calendar 2021 eGrocery Adoption 2021 2022 2023 2024 2025

Adoption Rate - 14.6% 16.9% 19.1% 21.5% Mercatus ❑ Active discussions with seven grocers / aggregate annual sales exceeding US$100 B Estimate2 GMV (millions)5 - $800 $1,500 $2,800 $5,600

Adoption Rate - 7.5% 10.0% 12.5% 15.0% ❑ FoodX SaaS agreement terms provide long-term revenue visibility “Slow” Adoption2 GMV (millions)5 - $700 $1,200 $2,050 $4,100

+ + + The SaaS revenue potential within eGrocery

Copyright © 2021. Freshlocal Solutions. Private & Confidential. All Rights Reserved 8/11/2021 11 Sources: 1. Mercatus – Uses a selection of Mid- and Large-sized grocers in the US grocery market. . 2. Mercatus. Assumes eGrocery penetration at 2025 estimates of 15% (“slow”) to 21.5% (“market rate / Mercatus”), 2% annual revenue growth, and facility at full ramp rate. 3. Assumes full ramp rate for related fulfillment facilities. 4. Includes 2nd country with Carrefour announced on May 11, 2021. 5. Assumes a pre-grocer deployment ramp rate over a 4-year period. Sustainability – Our long-standing commitment to ESG Our consumer and business customers and our communities benefit from our ability to operate sustainably

B Corp Certified – attained in 2013 Leaders in reducing food waste

✓ One of the few publicly-listed B Corps in Canada ✓ Addresses one of the most material factors in the grocery market ✓ Rigorous standards of social and environmental performance, ✓ Leading inventory management practices focused on waste reduction accountability, and transparency ✓ Consistent achievement of 0.5% food waste ✓ Corporate culture prioritizes diversity, equity, inclusion, and o Industry standard – approximately 6% a respectful workplace

Focus on fresh, local, organic, sustainable Unwavering commitment to reduce packaging

✓ Sustainable Purchasing Policy prioritizes local producers and ✓ Unique reverse logistics capabilities enable efficient packaging sustainable production practices collection ✓ Diverse, local base of suppliers improves business resilience ✓ Takeback program provides customers with option to return packaging ✓ Reduced emissions through use of local vendors and ✓ Reverse Logistics and Sustainability Team drives best practices eGrocery delivery optimization ✓ Active reduction, re-use, and re-purpose efforts

+ + + Our focus on sustainability

Over 100 years of proven success and value creation spanning all aspects of the grocery and logistics industries

Peter van Stolk Adrienne Uy Walter Robb CEO CFO Advisory Board

Reza Bafandeh Jef King PJ Stafford SVP of Global Solutions CTO VP Sales & Marketing

+ + + Our experience

Copyright © 2021. Freshlocal Solutions. Private & Confidential. All Rights Reserved 8/11/2021 13 25% of all groceries will be online We know the industry problems, we created the solution, now we’re changing the game

A proven eGrocery solution ✓ Food X eGMS solves a profitability problem for retailers

Strengthens customer linkage ✓ As 25% of the market moves online, retailers seeking ways to retain customer ownership

SaaS-based revenues ✓ $3.0 Trillion Total Addressable Market1 (TAM) for FoodX eGMS solution

Targeted eGMS customer wins ✓ Active pursuit of new eGMS customers in North America and Internationally

Growing D2C eGrocery ✓ Proven eGrocery retail segment on track to deliver strong growth in fiscal 20212

Focus on sustainability ✓ Driving positive impact in key areas including food waste and single-use plastics

+ + + Why you need to own LOCL

Copyright © 2021. Freshlocal Solutions. Private & Confidential. All Rights Reserved 8/11/2021 14 Sources: 1. See sources as outlined on page 8 of this presentation. 2. Management forecast. Appendix Slides

8/11/2021 PRIVATE AND CONFIDENTIAL 15 Appendix A: Metrics and non-IFRS financial measures

Freshlocal reports its financial results in accordance with International Financial Reporting Standards ("IFRS”). Freshlocal also uses non-IFRS measures in this Presentation that do not have any standardized meaning prescribed by IFRS, including customer orders, ARR, average order size, cost per order, delivery accuracy, and CAGR. These non IFRS measures may not be comparable to similar measures presented by other companies.

Metrics Definition

Delivery or Order Accuracy Measured as consistency between a customer’s order and what is delivered to the customer

Customer Orders / Deliveries Estimated SPUD.ca customer orders for the fiscal year ended September 30, 2020

Non-IFRS Financial Measures Definition

ARR Calculated as revenues for the four-week period ended as at the date indicated multiplied by 52

Compound Annual Growth Rate (CAGR) Calculated as the annual growth rate from the beginning balance at start date indicated to the ending balance at the end date indicated

Gross profit is calculated by subtracting the cost of goods sold from revenue. Gross margin is expressed in percentage terms and Gross Profit & Gross Margin calculated as gross profit divided by revenue

Average Order Size Calculated as the average dollar amount spent each time a customer places an order

Cost per Order Calculated as the sum of picking, packaging, and shipping costs per order

Based on the number of individual customer accounts that have completed an order on our eCommerce platform in the past 90 days, Active Customers measured as of the period end noted

+ + +

Competing Offerings1

eGrocery Fulfillment eGrocery Fulfillment Capital Investment Low High Project Economics Speed to Market 9 Months Up to 2 years End-to-end eGMS? Yes Partial

Full Assortment Ambient, Fresh, and Frozen eGrocery Basket ✓ ✓

SaaS and Platform Options ✓ ✓ Retail Customer Front End ✓ ✓ Fully Integrated Inventory Management ✓ ✓ Solution Components Order Fulfillment ✓ ✓ Last Mile Delivery ✓ ✓ Pickup ✓ ✓ Reverse Logistics ✓ -

Automation Inbound & Storage ✓ ✓ Packing - ✓ Large Scale DC ✓ ✓

Facilities Mid Scale Dark Store ✓ ✓ Micro Fulfillment Centers ✓ - In-Store Integrations ✓ -

+ + + Competitive advantage

The future of sustainable and profitable eGrocery Peter Van Stolk Chief Executive Officer [email protected] Freshlocal Solutions Inc. (TSX: LOCL)

Adrienne Uy Chief Financial Officer [email protected] Freshlocal Solutions Inc.

Ian S. Tharp, CFA Investor Relations [email protected] @freshlocalinc

+ + + Profitable Solutions. Seamlessly Integrated. Proven Technology. 8/11/2021 18