SEDAR Interim Financial Statements

6 Winpak Ltd. Interim Condensed Consolidated Financial Statements Third Quarter Ended: September 28, 2025 These interim condensed consolidated ? nancial statements have not been audited or reviewed by the Company’s independent external auditors, KPMG LLP. 7 Winpak Ltd. Condensed Consolidated Balance Sheets (thousands of US dollars) (unaudited) September 28 December 29 Note 2025 2024 Assets Current assets: Cash and cash equivalents 365,337 497,261 Trade and other receivables 13 216,261 220,201 Income taxes receivable 12,939 8,749 Inventories 7 259,696 250,383 Prepaid expenses 8,657 6,710 Derivative ? nancial instruments 287 - 863,177 983,304 Non-current assets: Property, plant and equipment 8 645,792 622,666 Intangible assets and goodwill 29,385 29,709 Employee bene? t plan assets 10,973 11,405 686,150 663,780 Total assets 1,549,327 1,647,084 Equity and Liabilities Current liabilities: Trade payables and other liabilities 107,803 252,134 Contract liabilities 1,120 1,747 Income taxes payable 4,688 6,879 Derivative ? nancial instruments 640 4,175 114,251 264,935 Non-current liabilities: Employee bene? t plan liabilities 4,476 4,774 Deferred income 19,268 19,721 Provisions and other long-term liabilities 15,169 16,781 Deferred tax liabilities 62,430 56,999 101,343 98,275 Total liabilities 215,594 363,210 Equity: Share capital 10 27,034 27,735 Reserves (259) (3,174) Retained earnings 1,272,001 1,224,097 Total equity attributable to equity holders of the Company 1,298,776 1,248,658 Non-controlling interests 34,957 35,216 Total equity 1,333,733 1,283,874 Total equity and liabilities 1,549,327 1,647,084 See accompanying notes to condensed consolidated ? nancial statements. 8 Winpak Ltd. Condensed Consolidated Statements of Income (thousands of US dollars, except per share amounts) (unaudited) Quarter Ended Year-To-Date Ended September 28 September 29 September 28 September 29 Note 2025 2024 2025 2024 Revenue 5 282,967 285,473 840,569 845,752 Cost of sales (196,383) (194,121) (585,234) (576,143) Gross pro? t 86,584 91,352 255,335 269,609 Sales, marketing and distribution expenses (22,482) (25,240) (70,797) (74,307) General and administrative expenses (11,594) (11,632) (37,829) (36,766) Research and technical expenses (5,177) (5,221) (16,519) (15,952) Pre-production expenses (117) - (397) - Other expenses 6 (156) (1,001) (468) (3,010) Income from operations 47,058 48,258 129,325 139,574 Finance income 3,855 6,833 11,744 21,461 Finance expense (1,004) (1,123) (3,453) (3,645) Income before income taxes 49,909 53,968 137,616 157,390 Income tax expense (13,396) (14,659) (36,719) (43,287) Net income for the period 36,513 39,309 100,897 114,103 Attributable to: Equity holders of the Company 36,375 38,486 101,156 112,833 Non-controlling interests 138 823 (259) 1,270 36,513 39,309 100,897 114,103 Basic and diluted earnings per share - cents 11 60 61 165 177 Condensed Consolidated Statements of Comprehensive Income (thousands of US dollars) (unaudited) Year-To-Date Ended Quarter Ended September 28 September 29 September 28 September 29 Note 2025 2024 2025 2024 Net income for the period 36,513 39,309 100,897 114,103 Items that will not be reclassi? ed to the statements of income: Cash ? ow hedge gains (losses) recognized - 241 57 (919) Cash ? ow hedge (gains) losses transferred to property, plant and equipment - (35) 378 29 - 206 435 (890) Items that are or may be reclassi? ed subsequently to the statements of income: Cash ? ow hedge (losses) gains recogni --- zed (1,583) 684 1,249 (879) Cash ? ow hedge losses transferred to the statements of income 6 557 142 2,137 494 Income tax effect 275 (221) (906) 103 (751) 605 2,480 (282) Other comprehensive (loss) income for the period - net of income tax (751) 811 2,915 (1,172) Comprehensive income for the period 35,762 40,120 103,812 112,931 Attributable to: Equity holders of the Company 35,624 39,297 104,071 111,661 Non-controlling interests 138 823 (259) 1,270 35,762 40,120 103,812 112,931 See accompanying notes to condensed consolidated ? nancial statements. 9 Winpak Ltd. Condensed Consolidated Statements of Changes in Equity (thousands of US dollars) (unaudited) Attributable to equity holders of the Company Non- Share Retained controlling Note capital Reserves earnings Total interests Total equity Balance at January 1, 2024 29,195 1,361 1,319,491 1,350,047 33,602 1,383,649 Comprehensive (loss) income for the period Cash ? ow hedge losses, net of tax - (1,563) - (1,563) - (1,563) Cash ? ow hedge losses transferred to the statements of income, net of tax - 362 - 362 - 362 Cash ? ow hedge losses transferred to property, plant and equipment - 29 - 29 - 29 Other comprehensive loss - (1,172) - (1,172) - (1,172) Net income for the period - - 112,833 112,833 1,270 114,103 Comprehensive (loss) income for the period - (1,172) 112,833 111,661 1,270 112,931 Dividends 10 - - (5,151) (5,151) - (5,151) Repurchase of common shares 10 (876) - (63,250) (64,126) - (64,126) Balance at September 29, 2024 28,319 189 1,363,923 1,392,431 34,872 1,427,303 Balance at December 30, 2024 27,735 (3,174) 1,224,097 1,248,658 35,216 1,283,874 Comprehensive income (loss) for the period Cash ? ow hedge gains, net of tax - 971 - 971 - 971 Cash ? ow hedge losses transferred to the statements of income, net of tax - 1,566 - 1,566 - 1,566 Cash ? ow hedge losses transferred to property, plant and equipment - 378 - 378 - 378 Other comprehensive income - 2,915 - 2,915 - 2,915 Net income (loss) for the period - - 101,156 101,156 (259) 100,897 Comprehensive income (loss) for the period - 2,915 101,156 104,071 (259) 103,812 Dividends 10 - - (6,574) (6,574) - (6,574) Repurchase of common shares 10 (701) - (46,678) (47,379) - (47,379) Balance at September 28, 2025 27,034 (259) 1,272,001 1,298,776 34,957 1,333,733 See accompanying notes to condensed consolidated ? nancial statements. 10 Winpak Ltd. Condensed Consolidated Statements of Cash Flows (thousands of US dollars) (unaudited) Quarter Ended Year-To-Date Ended September 28 September 29 September 28 September 29 Note 2025 2024 2025 2024 Cash provided by (used in): Operating activities: Net income for the period 36,513 39,309 100,897 114,103 Items not involving cash: Depreciation 14,348 13,313 41,541 39,079 Amortization - deferred income (438) (432) (1,403) (1,276) Amortization - intangible assets 343 457 1,039 1,235 Employee de? ned bene? t plan expenses 620 756 1,977 2,112 Net ? nance income (2,851) (5,710) (8,291) (17,816) Income tax expense 13,396 14,659 36,719 43,287 Other (1,089) (2,351) (2,400) (3,368) Cash ? ow from operating activities before the following 60,842 60,001 170,079 177,356 Change in working capital: Trade and other receivables (2,905) (6,866) 3,896 (13,997) Inventories 11,022 (5,468) (9,313) (12,788) Prepaid expenses 932 639 (1,947) 798 Trade payables and other liabilities (9,110) 9,618 (14,250) 20,613 Contract liabilities (446) 98 (627) (430) Employee de? ned bene? t plan contributions (21) (18) (1,259) (1,192) Income --- tax paid (5,236) (9,546) (36,136) (44,144) Interest received 2,941 6,787 10,384 20,865 Interest paid (941) (1,037) (3,145) (3,365) Net cash from operating activities 57,078 54,208 117,682 143,716 Investing activities: Acquisition of property, plant and equipment - net (18,018) (26,785) (63,952) (101,214) Acquisition of intangible assets (295) (6) (714) (38) (18,313) (26,791) (64,666) (101,252) Financing activities: Payment of lease liabilities (545) (409) (1,456) (1,208) Dividends paid 10 (2,245) (1,382) (137,644) (4,289) Repurchase of common shares 10 (26,668) - (45,840) (62,878) (29,458) (1,791) (184,940) (68,375) Change in cash and cash equivalents 9,307 25,626 (131,924) (25,911) Cash and cash equivalents, beginning of period 356,030 490,333 497,261 541,870 Cash and cash equivalents, end of period 365,337 515,959 365,337 515,959 See accompanying notes to condensed consolidated ? nancial statements. 11 Notes to Condensed Consolidated Financial Statements For the periods ended September 28, 2025 and September 29, 2024 (thousands of US dollars, unless otherwise indicated) (Unaudited) 1. General Winpak Ltd. (the “Company” or “Winpak”) is incorporated under the Canada Business Corporations Act. The Company manufactures and distributes high-quality packaging materials and related packaging machines. The Company’s products are used primarily for the packaging of perishable foods, beverages and in healthcare applications. The address of the Company’s registered of? ce is 100 Saulteaux Crescent, Winnipeg, Manitoba, Canada R3J 3T3. 2. Basis of presentation Statement of compliance The unaudited interim condensed consolidated ? nancial statements were prepared in accordance with IFRS Accounting Standards (IFRS). The unaudited interim condensed consolidated ? nancial statements are in compliance with IAS 34. Accordingly, certain information and note disclosures normally included in annual consolidated ? nancial statements prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB) have been omitted or condensed. These unaudited interim condensed consolidated ? nancial statements should be read in conjunction with the Company’s consolidated ? nancial statements for the year ended December 29, 2024, which are included in the Company’s 2024 Annual Report. The unaudited interim condensed consolidated ? nancial statements were approved by the Audit Committee on behalf of the Board of Directors on October 22, 2025. 3. Future accounting standards (a) Amendments to the classi? cation and measurement of ? nancial instruments: In May 2024, the IASB issued “Amendments to the Classi? cation and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)”, that clarify the recognition date and derecognition date of certain ? nancial assets and liabilities, clarify and add guidance to assess whether a ? nancial asset meets the solely payments of principal and interest criteria. The amendments include additional disclosure requirements for certain instruments with contractual terms that could change cash ? ows and updates the disclosure requirements relating to equity instruments at fair value through other comprehensive income. The amendments are effective for annual reporting periods beginning on or after January 1, 2026. The Company does not expect the amendments to have a signi? cant impact on the consolidated ? nancial statements when they are adopted in 2026. (b) Presentation and disclosure of ? nancial st --- atements: In April 2024, the IASB issued IFRS 18 “Presentation and Disclosure in Financial Statements” to improve reporting of ? nancial performance. IFRS 18 replaces IAS 1 “Presentation of Financial Statements”. It carries forward many requirements from IAS 1 unchanged. IFRS 18 applies for annual reporting periods beginning on or after January 1, 2027 with early adoption permitted. The Company is currently assessing the impact of this new standard and does not intend to early adopt IFRS 18 in its consolidated ? nancial statements. 4. Segment reporting Operating segments and product groups The Company provides three distinct types of packaging technologies: a) ? exible packaging, b) rigid packaging and ? exible lidding and c) packaging machinery. Each is deemed to be a separate operating segment. The ? exible packaging segment includes the modi? ed atmosphere packaging, specialty ? lms and biaxially oriented nylon product groups. Modi? ed atmosphere packaging extends the shelf life of perishable foods, while at the same time maintains or improves the quality of the product. The packaging is used for a wide range of markets and applications, including fresh and processed meats, poultry, cheese, medical device packaging, high performance pouch applications and high-barrier ? lms for converting applications. Specialty ? lms include a full line of barrier and non-barrier ? lms which are ideal for converting applications such as printing, laminating and bag making, including shrink bags. Biaxially oriented nylon ? lm is stretched by length and width to add stability for further conversion using printing, metalizing or laminating processes and is ideal for food packaging applications such as cheese, ? uid and viscous liquids, and industrial applications such as book covers and balloons. The rigid packaging and ? exible lidding segment includes the rigid containers, lidding and specialized printed packaging product groups. Rigid containers include portion control and single-serve containers, as well as plastic sheet, custom and retort trays, which are used for applications such as food, pet food, beverage, dairy, industrial and healthcare. Lidding products are available in die-cut, daisy chain and rollstock formats and are used for applications such as food, dairy, beverage, pet food, industrial and healthcare. Specialized printed packaging provides packaging solutions to the pharmaceutical, healthcare, nutraceutical, cosmetic and personal care markets. Packaging machinery includes a full line of horizontal ? ll/seal machines for preformed containers and vertical form/? ll/seal pouch machines for pumpable liquid and semi-liquid products and certain dry products. Notes to Condensed Consolidated Financial Statements For the periods ended September 28, 2025 and September 29, 2024 (thousands of US dollars, unless otherwise indicated) (Unaudited) 12 Due to similar economic characteristics, including long-term sales volume growth and long-term average gross pro? t margins, and having similar products, production processes, types of customers and distribution methods, the ? exible packaging and rigid packaging and ? exible lidding operating segments have been aggregated as one reportable segment. In addition, the packaging machinery operating segment has been aggregated with these two segments as the segment’s revenue and assets represents less than 3 percent of total Company revenue and assets. The Company operates principally in Canada and the Unit --- ed States. See note 5 for a breakdown of revenue by operating and geographic segment. The following summary presents property, plant and equipment, intangible assets and goodwill information by geographic segment: September 28 December 29 2025 2024 United States 272,674 274,630 Canada 385,522 360,499 Mexico 16,981 17,246 675,177 652,375 5. Revenue Most of the Company’s contracts have a single performance obligation as the promise to transfer the individual goods. Revenue for each of the three operating segments is recognized at a point in time when the customer obtains control of a product, which typically takes place when legal title and physical possession of the product is transferred to the customer. These conditions are usually ful? lled upon shipment, however, in some instances, upon delivery. Invoices are generated when control has transferred and are usually payable within 30 to 60 days. Disaggregation of revenue Quarter Ended Year-To-Date Ended September 28 September 29 September 28 September 29 2025 2024 2025 2024 Operating segment Flexible packaging 144,330 151,220 449,534 447,172 Rigid packaging and ? exible lidding 129,312 125,539 366,925 374,610 Packaging machinery 9,325 8,714 24,110 23,970 282,967 285,473 840,569 845,752 Geographic segment United States 223,339 226,581 664,384 672,937 Canada 35,764 37,491 107,869 111,394 Mexico and other 23,864 21,401 68,316 61,421 282,967 285,473 840,569 845,752 The Company’s products are primarily used for the packaging of perishable foods and beverages. Other markets include medical, pharmaceutical, nutraceutical, personal care, industrial and other consumer goods. 6. Other expenses Quarter Ended Year-To-Date Ended September 28 September 29 September 28 September 29 Amounts shown on a net basis 2025 2024 2025 2024 Foreign exchange gains (losses) 401 (859) 1,669 (2,516) Cash ? ow hedge losses transferred from other comprehensive income (557) (142) (2,137) (494) (156) (1,001) (468) (3,010) 13 Notes to Condensed Consolidated Financial Statements For the periods ended September 28, 2025 and September 29, 2024 (thousands of US dollars, unless otherwise indicated) (Unaudited) 7. Inventories September 28 December 29 2025 2024 Raw materials 75,199 79,142 Work-in-process 65,568 54,297 Finished goods 98,107 96,889 Spare parts 20,822 20,055 259,696 250,383 During the third quarter of 2025, the Company recorded, within cost of sales, inventory write-downs for slow-moving and obsolete inventory of $3,742 (2024 - $3,050) and reversals of previously written-down items of $745 (2024 - $1,019). On a year-to-date basis, the Company recorded, within cost of sales, inventory write-downs for slow-moving and obsolete inventory of $11,948 (2024 - $8,335) and reversals of previously written-down items of $3,975 (2024 - $4,878). 8. Property, plant and equipment At September 28, 2025, the Company has commitments to purchase property, plant and equipment of $34,861 (December 29, 2024 - $41,777). No impairment losses or impairment reversals were recognized during the year-to-date periods ended September 28, 2025 and September 29, 2024. 9. Leases Extension options Some leases of of? ce and manufacturing facilities contain extension options exercisable by the Company up to one year before the end of the non- cancellable contract period. Where practicable, the Company seeks to include extension options in new leases to provide operational ? exibility. The extension options held are exercisable only by the Company an --- d not by the lessors. The Company assesses at lease commencement whether it is reasonably certain to exercise the extension options. The Company reassesses whether it is reasonably certain to exercise the options if there is a signi? cant event or signi? cant change in circumstances within its control. At September 28, 2025, potential future lease payments not included in lease liabilities totalled $4,873 on a discounted basis. 10. Share capital The following table presents changes in the Company’s share capital: Quarter Ended Year-To-Date Ended September 28 September 29 September 28 September 29 2025 2024 2025 2024 Number of common shares Issued and outstanding, beginning of period 61,514,351 63,050,000 62,145,874 65,000,000 Repurchase of common shares (881,220) - (1,512,743) (1,950,000) Issued and outstanding, end of period 60,633,131 63,050,000 60,633,131 63,050,000 Share capital amount Beginning of period 27,415 28,319 27,735 29,195 Repurchase of common shares (381) - (701) (876) End of period 27,034 28,319 27,034 28,319 Repurchase of common shares during the third quarter of 2025 does not include the shares that may be repurchased subsequent to the end of the quarter under the automatic share purchase plan (“ASPP”), which is described below. However, the ending share capital balance re? ects a reduction of $199 related to the ASPP. Dividends During the third quarter of 2025, dividends in Canadian dollars of 5 cents per common share were declared (2024 - 5 cents) and on a year-to-date basis, 15 cents per common share were declared (2024 - 11 cents). In addition, on December 12, 2024, the Company declared a special dividend in Canadian dollars of $3.00 per common share, paid on January 10, 2025. Notes to Condensed Consolidated Financial Statements For the periods ended September 28, 2025 and September 29, 2024 (thousands of US dollars, unless otherwise indicated) (Unaudited) 14 Share redemptions On March 24, 2025, the Toronto Stock Exchange (the “TSX”) accepted a notice ? led by Winpak of its intention to renew its normal course issuer bid (the “NCIB”) with respect to its outstanding common shares. The notice provided that Winpak may, during the 12-month period commencing March 26, 2025 and ending no later than March 25, 2026, purchase through the facilities of the TSX and other alternative Canadian trading systems up to a maximum of 3,087,500 common shares in total, being 5.0 percent of the issued and outstanding shares of Winpak as of March 18, 2025. The price which Winpak will pay for any common shares will be the market price at the time of acquisition. Daily purchases under the NCIB will be generally limited to 13,761 common shares, other than block purchases. All shares purchased will be canceled. In connection with the NCIB, Winpak has entered into an ASPP with CIBC World Markets Inc. to facilitate the purchase of common shares under the NCIB, including at times when Winpak would ordinarily not be permitted to purchase its common shares due to regulatory restrictions or self-imposed blackout periods. As at September 28, 2025, the Company had purchased 1,116,869 common shares under its current NCIB. During the third quarter of 2025, 881,220 common shares were repurchased under the NCIB for cancelation at a weighted average price of CDN $41.63 for aggregate consideration of CDN $36,685 (US $26,668) of which $396 was recorded to share capital and the remaining $26,272 was recorded to retained earnings. During the third quarter of --- 2024, no common shares were repurchased under the NCIB for cancelation. On a year-to-date basis, 1,512,743 common shares (2024 - 1,950,000) were repurchased under the NCIB program for cancelation at a weighted average price of CDN $42.47 (2024 - $43.81) for aggregate consideration of CDN $64,253 (US $45,840) (2024 - CDN $85,436 (US $62,878)) of which $680 (2024 - $876) was recorded to share capital and the remaining $45,160 (2024 - $62,002) was recorded to retained earnings. At September 28, 2025, the Company recorded an obligation to repurchase common shares of $14,350 under the ASPP in trade payables and other liabilities of which $199 was recorded to share capital and the remaining $14,151 was recorded to retained earnings. Subsequent to the quarter ended September 28, 2025, the Company repurchased 459,649 additional common shares for cancelation as at the close of trading on October 21, 2025. The transactions were completed at a weighted average price of CDN $41.36 for aggregate consideration of CDN $19,011 (US $13,640). At September 28, 2025, the Company recorded an obligation totaling $916 for a two percent Canadian federal tax on the net value of equity repurchased during the year. The liability was recognized within ‘Trade payables and other liabilities’ and the corresponding amount was recorded to retained earnings. 11. Earnings per share Quarter Ended Year-To-Date Ended September 28 September 29 September 28 September 29 2025 2024 2025 2024 Net income attributable to equity holders of the Company 36,375 38,486 101,156 112,833 Weighted average shares outstanding (000’s) 61,134 63,050 61,488 63,913 Basic and diluted earnings per share - cents 60 61 165 177 12. Financial instruments The Company measures assets and liabilities under the following fair value hierarchy in accordance with IFRS. The inputs used for fair value measurements, including their classi? cation within the required three levels of the fair value hierarchy that prioritizes the inputs used for fair value measurement, are as follows: Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 - inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and Level 3 - inputs that are not based on observable market data. The fair value of cash and cash equivalents, trade and other receivables, including trade and other receivables subject to factoring arrangements and classi? ed as measured at fair value through other comprehensive income (FVOCI), trade payables and other liabilities approximate their carrying value because of the short-term maturity of these instruments. The fair value of foreign currency forward contracts, designated as cash ? ow hedges, has been determined by valuing those contracts to market against prevailing forward foreign exchange rates as at the reporting date. The following table presents the classi? cation of ? nancial instruments within the fair value hierarchy: Financial Assets (Liabilities) Level 1 Level 2 Level 3 Total At September 28, 2025 Foreign currency forward contracts - net - (353) - (353) At December 29, 2024 Foreign currency forward contracts - net - (4,175) - (4,175) 15 Notes to Condensed Consolidated Financial Statements For the periods ended September 28, 2025 and September 29, 2024 (thousands of US dollars, unless otherwise indicated) (Unaudited) When the Company has a legally enforceable right to set off supplier rebates accounts re --- ceivable against supplier trade payables and intends to settle the amount on a net basis or simultaneously, the balance is presented as an offset within ‘Trade payables and other liabilities’ on the consolidated balance sheet. At September 28, 2025, the supplier rebate receivable balance that was offset was $5,085 (December 29, 2024 - $7,327). 13. Financial risk management In the normal course of business, the Company has risk exposures consisting primarily of foreign exchange risk, interest rate risk, commodity price risk, liquidity risk, and credit risk. The Company manages its risks and risk exposures through a combination of derivative ? nancial instruments, insurance, a system of internal and disclosure controls and sound business practices. The Company does not purchase any derivative ? nancial instruments for speculative purposes. Financial risk management is primarily the responsibility of the Company’s corporate ? nance function. Signi? cant risks are regularly monitored and actions are taken, when appropriate, according to the Company’s approved policies, established for that purpose. In addition, as required, these risks are reviewed with the Company’s Board of Directors. Foreign exchange risk The Company’s Foreign Exchange Policy requires that between 50 and 80 percent of the Company’s net requirement of CDN dollars for the ensuing 9 to 15 months will be hedged at all times with a combination of cash and cash equivalents and forward or zero-cost option foreign currency contracts. The Company may also enter into foreign currency forward contracts when equipment purchases, share repurchases and special dividend payments will be settled in foreign currencies. Transactions are only conducted with certain approved ‘AA’ rated or higher Schedule 1 CDN ? nancial institutions. All foreign currency contracts are designated as cash ? ow hedges of the highly probable CDN dollar expenditures. These derivatives meet the hedge effectiveness criteria as a result of the following factors: a) An economic relationship exists between the hedged item and the hedging instrument as notional amounts match and both the hedged item and hedging instrument fair values move in response to the same risk - foreign exchange rates. There are no signi? cant reasons or causes for the designated hedged item and hedging instrument to be mismatched since the hedging instrument matures during the same month as the expected hedged expenditures are incurred. The correlation between the foreign exchange rate of the hedged item and the hedging instrument should be highly correlated and closely aligned as the maturity and the notional amount are the same. b) The hedge ratio is one to one for this hedging relationship as the hedged item is foreign currency risk that is hedged with a foreign currency hedging instrument. c) Credit risk is not material in the fair value of the hedging instrument. The Company has identi? ed two sources of potential ineffectiveness: a) the timing of cash ? ow differences between the expenditure and the related derivative and b) the inclusion of credit risk in the fair value of the derivative not replicated in the hedged item. The Company expects the impact of these sources of hedge ineffectiveness to be minimal. The timing of hedge settlements and incurred expenditures are closely aligned as they are expected to occur within 30 days of each other. Credit risk is not a material component of the fair value of the Company’s hedging instruments --- as all counterparties are ‘AA’ rated or higher Schedule 1 CDN ? nancial institutions. Certain foreign currency forward contracts matured during the third quarter of 2025 and the Company realized pre-tax foreign exchange losses of $557 (year-to-date losses - $2,515). Of these foreign exchange differences, losses of $557 were recorded in other expenses (year-to-date losses - $2,137) and no amount was recorded in property, plant and equipment (year-to-date losses - $378). During the third quarter of 2024, the Company realized pre-tax foreign exchange losses of $107 (year-to-date losses - $720). Of these foreign exchange differences, losses of $142 were recorded in other expenses (year-to-date losses - $494), gains of $35 were recorded in property, plant and equipment (year-to-date losses - $29), and losses of $0 were recorded directly to equity (year-to-date losses - $197). As at September 28, 2025, the Company had US to CDN dollar foreign currency forward contracts outstanding with a notional amount of US $68.0 million at an average exchange rate of 1.3740 maturing between October 2025 and October 2026. The fair value of these ? nancial instruments was negative $353 US and the corresponding unrealized loss has been recorded in other comprehensive income. The Company did not recognize any ineffectiveness on the hedging instruments for the year-to-date periods ended September 28, 2025 and September 29, 2024. Interest rate risk The Company’s interest rate risk arises from interest rate ? uctuations on the ? nance income that it earns on its cash invested in money market accounts and short-term deposits. The Company developed and implemented an investment policy, which was approved by the Company’s Board of Directors, with the primary objective to preserve capital, minimize risk and provide liquidity. Regarding the September 28, 2025 cash and cash equivalents balance of $365.3 million, a 1.0 percent increase/decrease in interest rate ? uctuations would increase/decrease income before income taxes by $3,653 annually. Notes to Condensed Consolidated Financial Statements For the periods ended September 28, 2025 and September 29, 2024 (thousands of US dollars, unless otherwise indicated) (Unaudited) 16 Commodity price risk The Company’s manufacturing costs are affected by the price of raw materials, namely petroleum-based and natural gas-based plastic resins and aluminum. In order to manage its risk, the Company has entered into selling price-indexing programs with certain customers. Changes in raw material prices for these customers are re? ected in selling price adjustments but there is a slight time lag. For the year-to-date period ended September 28, 2025, 75 percent of revenue was generated from customers with selling price-indexing programs. For all other customers, the Company’s preferred practice is to match raw material cost changes with selling price adjustments, albeit with a slight time lag. This matching is not always possible, as customers react to selling price pressures related to raw material cost ? uctuations according to conditions pertaining to their markets. Liquidity risk Liquidity risk is the risk that the Company would not be able to meet its ? nancial obligations as they come due. Management believes that the liquidity risk is low due to the strong ? nancial condition of the Company. This risk assessment is based on the following: (a) cash and cash equivalents amounts of $365.3 million, (b) no outstanding bank loans, (c) --- unused credit facilities comprised of unsecured operating lines of $38 million, (d) the ability to obtain term-loan ? nancing to fund an acquisition, if needed, (e) an informal investment grade credit rating and (f) the Company’s ability to generate positive cash ? ows from ongoing operations. Management believes that the Company’s cash ? ows are more than suf? cient to cover its operating costs, working capital requirements, capital expenditures, payment of lease liabilities, share repurchases and dividend payments in the next twelve months. The Company’s trade payables and other liabilities and derivative ? nancial instrument liabilities are all due within twelve months. Credit risk The Company is exposed to credit risk from its cash and cash equivalents held with banks and ? nancial institutions, derivative ? nancial instruments (foreign currency forward contracts), as well as credit exposure to customers, including outstanding trade and other receivable balances. The following table details the maximum exposure to the Company’s counterparty credit risk which represents the carrying value of the ? nancial asset: September 28 December 29 2025 2024 Cash and cash equivalents 365,337 497,261 Trade and other receivables 216,261 220,201 Foreign currency forward contracts 287 - 581,885 717,462 Credit risk on cash and cash equivalents and other ? nancial instruments arises in the event of non-performance by the counterparties when the Company is entitled to receive payment from the counterparty who fails to perform. The Company has established an investment policy to manage its cash. The policy requires that the Company manage its risk by investing its excess cash on hand on a short-term basis, up to a maximum of six months, with several ? nancial institutions and/or governmental bodies that must be rated ‘AA’ or higher for CDN ? nancial institutions and ‘A-1’ or higher for US ? nancial institutions by recognized international credit rating agencies or insured 100 percent by the US government or a ‘AAA’ rated CDN federal or provincial government. The Company manages its counterparty risk on its ? nancial instruments by only dealing with ‘AA’ rated or higher Schedule 1 CDN ? nancial institutions. In the normal course of business, the Company is exposed to credit risk on its trade and other receivables from customers. To mitigate such risk, the Company performs ongoing customer credit evaluations and assesses their credit quality by taking into account their ? nancial position, past experience and other pertinent factors. Management regularly monitors customer credit limits, performs credit reviews and, in certain cases insures trade and other receivables against credit losses. As at September 28, 2025, the Company believes that the credit risk for trade and other receivables is mitigated due to the following: a) a broad customer base which is dispersed across varying market sectors and geographic locations, b) 98 percent of the gross trade and other receivables balance is within 30 days of the agreed upon payment terms with customers, c) the sale of certain extended term trade receivables without recourse to a third party and d) 28 percent of the trade and other receivables balance is insured against credit losses. The following table sets out the aging details of the Company’s trade and other receivables balances outstanding based on when the receivable was due and payable and related allowance for expected credit losses: September 28 Decem --- ber 29 2025 2024 Current (not past due) 194,301 192,326 1 - 30 days past due 19,075 23,295 31 - 60 days past due 1,991 3,265 More than 60 days past due 3,290 3,552 218,657 222,438 Less: Allowance for expected credit losses (2,396) (2,237) Total trade and other receivables, net 216,261 220,201 17 Notes to Condensed Consolidated Financial Statements For the periods ended September 28, 2025 and September 29, 2024 (thousands of US dollars, unless otherwise indicated) (Unaudited) 14. Seasonality The Company experiences seasonal variation in revenue, with revenue typically being the highest in the second and fourth quarters, and lowest in the ? rst quarter.