SEDAR Interim Financial Statements

CONDENSED INTERIM CONSOLIDATED INCOME STATEMENTS (in millions of CDN dollars, except per share amounts) (unaudited) For the third quarters ended December 31 For the nine-month periods ended December 31 2025 2024 2025 2024 Revenues $ 4,888 $ 4,994 $ 14,240 $ 14,308 Operating costs excluding depreciation, amortization, and restructuring costs (Note 5) 4,396 4,577 12,872 13,119 Earnings before income taxes, financial charges, (gain) loss on hyperinflation, restructuring costs, depreciation and amortization, and goodwill and intangible assets impairment charge 492 417 1,368 1,189 Depreciation and amortization 156 161 465 462 Goodwill and intangible assets impairment charge (Note 4) — 684 — 684 Restructuring costs (Note 10) — — 6 7 (Gain) loss on hyperinflation (Argentina net monetary position) — (5) (2) 16 Financial charges (Note 11) 38 52 125 139 Earnings (loss) before income taxes 298 (475) 774 (119) Income taxes 78 43 204 131 Net earnings (loss) $ 220 $ (518) $ 570 $ (250) Net earnings (loss) per share (Note 12) Basic $ 0.54 $ (1.22) $ 1.38 $ (0.59) Diluted $ 0.53 $ (1.22) $ 1.38 $ (0.59) The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 33 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions of CDN dollars) (unaudited) For the third quarters ended December 31 For the nine-month periods ended December 31 2025 2024 2025 2024 Net earnings (loss) $ 220 $ (518) $ 570 $ (250) Other comprehensive (loss) income: Items that may be reclassified to net earnings: Effects of, exchange differences arising from foreign currency translation and, application of hyperinflation (88) 246 (273) 495 Unrealized (losses) on cash flow hedges (Note 15) (11) (40) (6) (30) Reclassification of losses (gains) on cash flow hedges to net earnings 13 2 24 (1) Income taxes relating to items that may be reclassified to net earnings (1) 11 (6) 9 (87) 219 (261) 473 Items that will not be reclassified to net earnings: Actuarial (loss) gain 1 (13) (3) (14) Income taxes relating to items that will not be reclassified to net earnings — 4 1 4 1 (9) (2) (10) Other comprehensive (loss) income (86) 210 (263) 463 Total comprehensive income (loss) $ 134 $ (308) $ 307 $ 213 The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 34 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (in millions of CDN dollars, except common shares) (unaudited) For the nine-month period ended December 31, 2025 Share capital Reserves Common Shares Amount Foreign Currency Translation and Hyperinflation Cash Flow Hedges Stock Option Plan Total Reserves Retained Earnings Total Equity Balance, beginning of year 418,335,124 $ 2,150 $ 841 $ (13) $ 201 $ 1,029 $ 3,798 $ 6,977 Net earnings — — — — — — 570 570 Other comprehensive loss — — (273) 12 — (261) (2) (263) Total comprehensive income 307 Dividends — — — — — — (243) (243) Stock options — — — — 10 10 — 10 Exercise of stock options (Note 9) 1,319,616 49 — — (7) (7) — 42 Purchased for cancellation under normal course issuer bid (Note 9) (12,641,339) (65) — — — — (345) (410) Balance, end of period 407,013,401 $ 2,134 $ 568 $ (1) $ 204 $ 771 $ 3,778 $ 6,683 For the nine-month period ended December 31, 2024 Share capital Reserves Common Shares Amount Foreign Currency Translation and Hyperinflation C --- ash Flow Hedges Stock Option Plan Total Reserves Retained Earnings Total Equity Balance, beginning of year 424,326,415 $ 2,180 $ 265 $ 8 $ 186 $ 459 $ 4,411 $ 7,050 Net loss — — — — — — (250) (250) Other comprehensive income — — 495 (22) — 473 (10) 463 Total comprehensive income 213 Dividends — — — — — — (240) (240) Stock options — — — — 12 12 — 12 Exercise of stock options (Note 9) 32,044 1 — — — — — 1 Purchased for cancellation under normal course issuer bid (Note 9) (1,217,563) (6) (26) (32) Balance, end of period 423,140,896 $ 2,175 $ 760 $ (14) $ 198 $ 944 $ 3,885 $ 7,004 The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 35 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in millions of CDN dollars) (unaudited) As at December 31, 2025 March 31, 2025 ASSETS Current assets Cash and cash equivalents $ 447 $ 257 Receivables 1,410 1,565 Inventories 2,803 2,927 Income taxes receivable 3 21 Prepaid expenses and other assets 94 85 4,757 4,855 Property, plant and equipment 4,432 4,693 Right-of-use assets 472 503 Goodwill (Note 4) 2,497 2,598 Intangible assets 972 1,071 Other assets 114 115 Deferred tax assets 75 78 Total assets $ 13,319 $ 13,913 LIABILITIES Current liabilities Bank loans (Note 6) $ 366 $ 364 Accounts payable and accrued liabilities 2,045 2,269 Income taxes payable 78 39 Current portion of long-term debt (Note 7) 350 465 Current portion of lease liabilities 65 65 2,904 3,202 Long-term debt (Note 7) 2,284 2,234 Lease liabilities 444 466 Other liabilities 159 131 Deferred tax liabilities 845 903 Total liabilities $ 6,636 $ 6,936 EQUITY Share capital (Note 9) 2,134 2,150 Reserves 771 1,029 Retained earnings 3,778 3,798 Total equity $ 6,683 $ 6,977 Total liabilities and equity $ 13,319 $ 13,913 The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 36 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions of CDN dollars) (unaudited) For the third quarters ended December 31 For the nine-month periods ended December 31 2025 2024 2025 2024 Cash flows related to the following activities: Operating Net earnings (loss) $ 220 $ (518) $ 570 $ (250) Adjustments for: Stock-based compensation 27 1 66 24 Financial charges (Note 11) 38 52 125 139 Income tax expense 78 43 204 131 Depreciation and amortization 156 161 465 462 Goodwill and intangible assets impairment charge (Note 4) — 684 — 684 Restructuring costs (Note 10) — — 6 7 (Gain) on disposal of property, plant and equipment (2) — (2) (1) Foreign exchange loss on debt — — — 2 (Gain) loss on hyperinflation (Argentina net monetary position) — (5) (2) 16 Share of joint venture earnings, net of dividends received and other (3) (1) (10) (6) Changes in non-cash operating working capital items (Note 13) 13 50 (9) (209) Cash generated from operating activities 527 467 1,413 999 Interest and financial charges paid (65) (70) (149) (157) Income taxes paid (61) (15) (174) (107) Net cash generated from operating activities $ 401 $ 382 $ 1,090 $ 735 Investing Additions to property, plant and equipment (79) (81) (226) (268) Additions to intangible assets (3) (1) (5) (3) Proceeds from disposal of property, plant and equipment (Note 14) 5 2 26 99 Net cash used for investing activities $ (77) $ (80) $ (205) $ (172) Financing Bank loans 91 108 32 48 --- Proceeds from issuance of long-term debt — — 400 — Repayment of long-term debt — (414) (465) (414) Repayment of lease liabilities (16) (14) (46) (72) Proceeds from exercise of stock options 26 — 42 1 Shares purchased for cancellation under normal course issuer bid and applicable taxes (Note 9) (188) (31) (405) (31) Payment of dividends (82) (81) (243) (240) Net cash used for financing activities $ (169) $ (432) $ (685) $ (708) Increase (decrease) in cash and cash equivalents 155 (130) 200 (145) Cash and cash equivalents, beginning of period 296 455 257 466 Effect of exchange rate changes (4) 5 (10) 9 Cash and cash equivalents, end of period $ 447 $ 330 $ 447 $ 330 The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 37 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the third quarters and nine-month periods ended December 31, 2025, and 2024. (All dollar amounts are in millions of CDN dollars, except per share amounts or unless otherwise indicated.) (unaudited) NOTE 1 CORPORATE INFORMATION Saputo Inc. (the Company) is a publicly traded company incorporated and domiciled in Canada. The Company’s shares are listed on the Toronto Stock Exchange under the symbol “SAP”. The Company produces, markets, and distributes a wide array of dairy products from Canada, the United States, Australia, Argentina, and the United Kingdom. In addition to its dairy portfolio, the Company produces, markets, and distributes a range of dairy alternative products. The address of the Company’s head office is 1000 de la Gauchetière Street West, Suite 2900, Montréal, Québec, Canada, H3B 4W5. The condensed interim consolidated financial statements of the Company for the third quarter and nine-month period ended December 31, 2025 (financial statements) comprise the financial results of the Company and its subsidiaries. The financial statements were authorized for issuance by the Board of Directors on February 5, 2026. NOTE 2 BASIS OF PRESENTATION The financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB). Accordingly, certain disclosure requirements that are necessary in the preparation of an annual financial statement in compliance with International Financial Reporting Standards (IFRS) Accounting Standards, as issued by the IASB, have been omitted or condensed and, therefore, these financial statements should be read in conjunction with the Company’s audited annual consolidated financial statements as at March 31, 2025, and 2024, and for the years then ended. NOTE 3 MATERIAL ACCOUNTING POLICIES The accounting policies and methods of computation applied in these financial statements are the same as those applied by the Company in its audited annual consolidated financial statements as at and for the year ended March 31, 2025. RECENT ACCOUNTING STANDARDS, INTERPRETATIONS, AND AMENDMENTS ISSUED BUT NOT YET EFFECTIVE IFRS 18, Presentation and Disclosure in the Financial Statements In April 2024, the IASB issued IFRS 18 to replace IAS 1 Presentation of Financial Statements. IFRS 18 carries forward many requirements from IAS 1 unchanged and introduces increased disclosure of management defined performance measures as well as new principles for aggregation and disaggregation of information included in the consolidated income statement. I --- FRS 18 is applicable to the Company beginning on April 1, 2027. The Company is currently evaluating the impact of the adoption of IFRS 18 on its consolidated financial statements. IFRS 9, Financial Instruments and IFRS 7, Financial Instruments disclosures In May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to address the derecognition of financial assets and liabilities settled via electronic payment systems and, to clarify the classification and measurement of certain financial instruments. These amendments are applicable to the Company beginning on April 1, 2026. The adoption of these amendments will not have a significant impact on its consolidated financial statements. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 38 NOTE 4 GOODWILL AND INTANGIBLE ASSETS IMPAIRMENT CHARGE IMPAIRMENT TESTING Goodwill impairment testing is conducted at the cash-generating unit (CGU) level annually, on December 31, or at an interim date if indicators of impairment exist. In determining whether goodwill is impaired, the Company is required to estimate the respective recoverable amounts of CGUs or groups of CGUs to which goodwill is allocated. Management considers CGUs or groups of CGUs for goodwill impairment purposes as they represent the lowest level at which the goodwill is monitored for internal management purposes. As at December 31, 2025, the Company completed its annual goodwill impairment test. In all cases, the recoverable amounts exceeded the corresponding carrying values, including goodwill. Therefore, no impairment was recognized. Europe Sector's Dairy Division (UK) CGU (the UK CGU) - Fiscal 2025 In performing the goodwill impairment testing as at December 31, 2024, for the Europe Sector's UK CGU, estimates of future discounted cash flows were reduced primarily due to challenging market conditions in the United Kingdom, including inflation and elevated interest rates. While margins have been improving during fiscal 2025, these improvements have not been as rapid as initially expected, leading to a longer projected recovery period. As a result, the estimated recoverable value of the UK CGU was determined to be lower than its carrying value and a non-cash goodwill impairment charge of $662 million ($657 million after tax) was recorded, representing the total value of goodwill for this CGU, bringing the UK CGU’s carrying value to its estimated recoverable amount. The recoverable amount as at December 31, 2024, was estimated using the higher of the amount determined from a discounted cash flow (value in use) model and an earnings multiplier valuation model (fair value less costs of disposal) based on the following key assumptions: (i) discounted cash flow forecasts for the next five years based on earnings before interest, income taxes, depreciation and amortization adjusted with estimated growth rates, and a terminal value calculated as a perpetuity in the final year, (ii) pre-tax discount rate of 9.8%, (iii) terminal growth rate of 2.8% and (iv) earnings multipliers of market comparables. The impairment charge of $684 million ($674 million after tax) also includes a non-cash charge of $22 million ($17 million after tax) related to acquired intangible assets. NOTE 5 OPERATING COSTS For the third quarters ended December 31 For the nine-month periods ended December 31 2025 2024 2025 2024 Changes in inventories of finished goods and work in process $ 36 $ 25 $ 31 $ (10) Raw materials and consumables used 3,243 3,501 9,601 10,035 Fore --- ign exchange gain — (6) (3) (23) Employee benefits expense 635 607 1,873 1,779 Selling costs 199 180 549 537 General and administrative costs 283 270 821 801 Operating costs excluding depreciation, amortization, and restructuring costs1 $ 4,396 $ 4,577 $ 12,872 $ 13,119 Add: Depreciation and amortization 156 161 465 462 Restructuring costs (Note 10) — — 6 7 Operating costs $ 4,552 $ 4,738 $ 13,343 $ 13,588 1 Comparative figures presented in the table above were reclassified to conform with the current year's presentation. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 39 NOTE 6 BANK LOANS Available for use Amount drawn as at Credit Facilities Maturity Canadian Currency Equivalent Base Currency (in millions) December 31, 2025 March 31, 2025 North America-USA December 20301 $ 412 300 USD $ — $ — North America-Canada December 20301 $ 961 700 USD 208 14 Australia Yearly2 $ 389 425 AUD 94 96 Japan Yearly3 $ 35 4,000 JPY 18 54 United Kingdom Yearly4 $ 231 125 GBP — 44 Argentina Yearly5 $ 462 337 USD 46 156 $ 2,490 $ 366 $ 364 1 Main revolving credit facility. Bears monthly interest at rates ranging from lenders’ prime rates plus a maximum of 1.00% or SOFR or SONIA or BBSY or CORRA plus a minimum of 0.80% and a maximum of 2.00% depending on the Company credit ratings. On December 15, 2025, the maturity date was extended to December 15, 2030. 2 Bears monthly interest at SOFR or Australian Bank Bill Rate plus up to 1.15% and can be drawn in AUD or USD. 3 Bears monthly interest at TIBOR plus 0.70%. 4 Bears monthly interest at rates ranging from base rate plus 0.80% or SONIA plus 0.80%. 5 Bears monthly interest at local rate and can be drawn in USD or ARS. As at December 31, 2025, receivables totalling $356 million ($341 million as at March 31, 2025), were sold under receivables purchase agreements. These receivables were derecognized upon sale as substantially all risks and rewards were passed to the purchaser under the terms of the agreements. NOTE 7 LONG-TERM DEBT December 31, 2025 March 31, 2025 Unsecured bank term loan facility Obtained in April 2019 and repaid in May 20251 $ — $ 115 Senior unsecured notes2 3.60%, issued in August 2018 and repaid in July 2025 (Series 5) — 350 2.24%, issued in June 2020 and due in June 2027 (Series 7) 700 700 1.42%, issued in November 2020 and due in June 2026 (Series 8) 350 350 2.30%, issued in June 2021 and due in June 2028 (Series 9) 300 300 5.25%, issued in November 2022 and due in November 2029 (Series 10) 300 300 5.49%, issued in November 2023 and due in November 2030 (Series 11) 550 550 3.88%, issued in July 2025 and due in July 2030 (Series 12) 400 — Other 34 34 $ 2,634 $ 2,699 Current portion (350) (465) $ 2,284 $ 2,234 Principal repayments are as follows: Less than 1 year $ 350 $ 465 1-2 years 700 350 2-3 years 334 734 3-4 years 300 300 4-5 years 950 300 More than 5 years — 550 $ 2,634 $ 2,699 1 Bore monthly interest at lenders’ prime rates plus a maximum of 1.00% or SOFR or CORRA rates plus 0.80% up to a maximum of 2.00%, depending on the Company’s credit ratings. Interest was paid every one, two, three or six months, as selected by the Company. 2 Issued under the Company’s medium term note program. Interest payments are semi-annual. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 40 NOTE 8 NET DEBT The Company’s capital is composed of net debt and equity. Net debt consists of long-term debt, bank loans, and lease liabilities, net of cash and cash equivalents. The net debt amounts as at Decem --- ber 31, 2025, and March 31, 2025, are as follows: December 31, 2025 March 31, 2025 Long-term debt, including current portion $ 2,634 $ 2,699 Bank loans 366 364 Lease liabilities, including current portion 509 531 Less: Cash and cash equivalents (447) (257) Net debt $ 3,062 $ 3,337 The primary measure used by the Company to monitor its financial leverage is its ratio of net debt to trailing twelve months net earnings before income taxes, financial charges, (gain) loss on hyperinflation, restructuring costs, (gain) on disposal of assets, goodwill and intangible assets impairment charge, and depreciation and amortization. The ratio as at December 31, 2025 was 1.76 (2.13 as at March 31, 2025). NOTE 9 SHARE CAPITAL AUTHORIZED Authorized share capital of the Company consists of an unlimited number of common shares. Common shares are voting and participating. NORMAL COURSE ISSUER BID (NCIB) On November 14, 2026, the Company announced that is has received approval from the Toronto Stock Exchange to renew its NCIB, which previously expired on November 18, 2025. Under the renewed NCIB, the Company may purchase for cancellation up to 20,498,278 common shares, representing 5% of its 409,965,571 issued and outstanding common shares as of November 7, 2025. The renewed NCIB began on November 19, 2025, and will end no later than November 18, 2026. During the third quarter and the nine-month period ended December 31, 2025, the Company purchased 4,952,490 and 12,641,339 common shares, respectively. These purchases were settled at an average price per share of $37.96 and $31.86, for a total purchase price of $188 million and $403 million, respectively. An amount of $4 million is recorded in accounts payable and accrued liabilities as at December 31, 2025, for 90,000 common shares purchased on or before December 31, 2025, and cancelled after quarter-end. Retained earnings include a charge of $345 million relating to $338 million of excess of the purchase price over the carrying value of the shares and $7 million of applicable taxes. During the third quarter and the nine-month period ended December 31, 2024, the Company purchased 1,217,563 common shares. These purchases were settled at an average price per share of $25.94, for a total purchase price of $32 million. An amount of $1 million was recorded in accounts payable and accrued liabilities as at December 31, 2024, for 40,000 common shares purchased on or before December 31, 2024, and cancelled after quarter-end. Retained earnings included a charge of $26 million relating to $25 million of excess of the purchase price over the carrying value of the shares and $1 million of applicable taxes. In connection with the NCIB, the Company established an automatic purchase plan (APP). The APP enables Saputo to provide predetermined instructions regarding how the common shares are to be repurchased on the open market during self-imposed blackout periods and constitutes an automatic plan for purposes of applicable Canadian securities legislation. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 41 NOTE 9 SHARE CAPITAL (CONT'D) STOCK OPTION PLAN Changes in the number of outstanding stock options for the nine-month periods ended December 31 are as follows: December 31, 2025 December 31, 2024 Number of options Weighted average exercise price Number of options Weighted average exercise price Balance, beginning of year 21,054,531 $ 36.48 20,315,399 $ 37.79 Granted 3,925,715 $ 25.04 3,135,791 $ 26.29 Exercised (1,319, --- 616) $ 31.74 (32,044) $ 29.59 Cancelled (2,655,493) $ 36.19 (1,952,623) $ 34.97 Balance, end of period 21,005,137 $ 34.67 21,466,523 $ 36.38 The weighted average exercise price of $25.04 of the stock options granted in fiscal 2026 corresponds to the weighted average market price for the five trading days immediately preceding the date of the grant ($26.29 in fiscal 2025). The weighted average fair value of stock options granted in fiscal 2026 was estimated at $3.80 per option ($5.58 in fiscal 2025), using the Black-Scholes option pricing model with the following assumptions: Fiscal 2026 grant Fiscal 2025 grants Weighted average: Risk-free interest rate 2.55 % 3.56 % Life of options 5.6 years 6.5 years Volatility1 20.38 % 23.61 % Dividend rate 3.04 % 2.82 % 1 Expected volatility is based on the historic share price volatility over a period similar to the life of the options. NOTE 10 RESTRUCTURING COSTS During the first quarter of fiscal 2026, the Company recorded severance costs totalling $6 million ($5 million after tax) in connection to its previously announced decision to stop manufacturing certain functional dairy ingredient products in its Dairy Division (UK) by mid-fiscal 2026, as well as in relation to the optimization of selling, general, and administrative costs. There were no restructuring costs in the second and third quarters of fiscal 2026. During the second quarter of fiscal 2025, the Company recorded severance and site closure costs totalling $7 million ($5 million after tax) mainly in connection with the Company's decision to commence the final operating season of the King Island Dairy facility of the Dairy Division (Australia). The sale of the facility was completed on May 9, 2025 (see Note 14). There were no restructuring costs in the first and third quarters of fiscal 2025. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 42 NOTE 11 FINANCIAL CHARGES For the third quarters ended December 31 For the nine-month periods ended December 31 2025 2024 2025 2024 Interest on long-term debt $ 23 $ 26 $ 67 $ 78 Other finance costs, net 9 21 40 46 Interest on lease liabilities 6 5 18 14 Net interest revenue from defined benefit obligation — — — 1 $ 38 $ 52 $ 125 $ 139 NOTE 12 NET EARNINGS PER SHARE For the third quarters ended December 31 For the nine-month periods ended December 31 2025 2024 2025 2024 Net earnings (loss) $ 220 $ (518) $ 570 $ (250) Weighted average number of common shares outstanding 409,373,692 424,064,901 412,516,715 424,245,172 Dilutive shares 2,773,910 — 1,455,716 — Weighted average diluted number of common shares outstanding 412,147,602 424,064,901 413,972,431 424,245,172 Basic net earnings (loss) per share $ 0.54 $ (1.22) $ 1.38 $ (0.59) Diluted net earnings (loss) per share $ 0.53 $ (1.22) $ 1.38 $ (0.59) For the third quarter and nine-month period ended December 31, 2025, 8,834,828 and 12,908,243 options were excluded from the calculation of the diluted net earnings per share because their exercise price is higher than the average market value of shares during the same period. For the third quarter and nine-month period ended December 31, 2024, 21,466,523 options were excluded from the calculation of the diluted net earnings (loss) per share as they would be anti-dilutive. Shares purchased under the NCIB were excluded from the calculation of earnings per share as of the date of purchase. NOTE 13 CHANGES IN NON-CASH OPERATING WORKING CAPITAL ITEMS For the third quarters ended December 31 For the nine-mon --- th periods ended December 31 2025 2024 2025 2024 Receivables $ 85 $ (25) $ 79 $ (87) Inventories 38 (14) 24 (58) Prepaid expenses and other assets (4) (26) 5 (30) Accounts payable, accrued liabilities and other (106) 115 (117) (34) Changes in non-cash operating working capital $ 13 $ 50 $ (9) $ (209) SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 43 NOTE 14 PROCEEDS FROM DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT Disposals in fiscal 2026 include the sale, completed on May 9, 2025, of the King Island Dairy business located in Australia for proceeds of $27 million (AU$30 million), with $18 million related to property, plant and equipment, corresponding approximately to their net book value less costs to sell. Disposals in fiscal 2025 include the sale, completed on June 24, 2024, of the Company's two fresh milk processing facilities located in Australia for proceeds of $95 million (AU$105 million) resulting in a minimal gain on disposal of assets. NOTE 15 FINANCIAL INSTRUMENTS The Company determined that the fair value of certain of its financial assets and financial liabilities with short-term maturities approximates their carrying value. These financial instruments include cash and cash equivalents, receivables, bank loans, accounts payable, and accrued liabilities. The table below presents the fair value and the carrying value of other financial instruments as at December 31, 2025, and March 31, 2025. Since estimates are used to determine fair value, they must not be interpreted as being realizable in the event of a settlement of the instruments. December 31, 2025 March 31, 2025 Fair value Carrying value Fair value Carrying value Cash flow hedges Equity forward contracts (Level 2) $ 2 $ 2 $ (2) $ (2) Commodity derivatives (Level 2) (25) (25) (12) (12) Foreign exchange derivatives (Level 2) 13 13 (13) (13) Derivatives not designated in a formal hedging relationship Equity forward contracts (Level 2) 1 1 (1) (1) Commodity derivatives (Level 2) (2) (2) (3) (3) Foreign exchange derivatives (Level 2) 3 3 — — Long-term debt (Level 2) 2,682 2,634 2,728 2,699 NOTE 16 SEGMENTED INFORMATION The Company reports under four geographic sectors. The Canada Sector consists of the Dairy Division (Canada). The USA Sector consists of the Dairy Division (USA). The International Sector comprises the Dairy Division (Australia) and the Dairy Division (Argentina). The Europe Sector consists of the Dairy Division (UK). These reportable sectors are managed separately as each sector represents a strategic business unit that serves different markets. The President and Chief Executive Officer (CEO) and the Chief Financial Officer are, together, the chief operating decision maker of the Company and regularly review operations and performance by sector. They review adjusted EBITDA as the key measure of profit for the purpose of assessing performance of each sector and to make decisions about the allocation of resources. Adjusted EBITDA is defined as net earnings before the following items (when they occur): income taxes, financial charges, (gain) loss on hyperinflation, restructuring costs, (gain) loss on disposal of assets, goodwill and intangible assets impairment charge, and depreciation and amortization. The divisions within the International Sector were combined due to similarities in global market factors and production processes. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 44 NOTE 16 SEGMENTED INFORMATION (CONT'D) INFORMATION ON REPORTABLE SECTORS WI --- TH DISAGGREGATION OF REVENUE BY MARKET SEGMENT For the third quarter ended December 31, 2025 International and Europe Canada USA International1 Europe Subtotal Consolidated Revenues Retail $ 822 $ 1,002 $ 373 $ 269 $ 642 $ 2,466 Foodservice 466 917 112 12 124 1,507 Industrial 128 223 509 55 564 915 1,416 2,142 994 336 1,330 4,888 Operating costs excluding depreciation, amortization, and restructuring costs (Note 5) 1,227 1,957 912 300 1,212 4,396 Adjusted EBITDA 189 185 82 36 118 492 Depreciation and amortization 29 69 32 26 58 156 (Gain) on hyperinflation (Argentina net monetary position) — — — — — — Financial charges (Note 11) 38 Earnings before income taxes $ 298 1 Australia accounted for $696 million of the International Sector's revenues while Argentina accounted for $298 million for the third quarter ended December 31, 2025. For the third quarter ended December 31, 2024 International and Europe Canada USA International1 Europe Subtotal Consolidated Revenues Retail $ 784 $ 1,116 $ 359 $ 245 $ 604 $ 2,504 Foodservice 454 995 131 11 142 1,591 Industrial 121 194 529 55 584 899 1,359 2,305 1,019 311 1,330 4,994 Operating costs excluding depreciation, amortization, and restructuring costs (Note 5) 1,184 2,145 968 280 1,248 4,577 Adjusted EBITDA 175 160 51 31 82 417 Depreciation and amortization 30 71 32 28 60 161 Goodwill and intangible assets impairment charge (Note 4) — — — 684 684 684 (Gain) on hyperinflation (Argentina net monetary position) — — (5) — (5) (5) Financial charges (Note 11) 52 Earnings before income taxes $ (475) 1 Australia accounted for $673 million of the International Sector's revenues while Argentina accounted for $346 million for the third quarter ended December 31, 2024. SAPUTO INC. Q3 Fiscal 2026 - February 5, 2026 Page 45 NOTE 16 SEGMENTED INFORMATION (CONT'D) INFORMATION ON REPORTABLE SECTORS WITH DISAGGREGATION OF REVENUE BY MARKET SEGMENT (CONT'D) For the nine-month period ended December 31, 2025 International and Europe Canada USA International1 Europe Subtotal Consolidated Revenues Retail $ 2,322 $ 2,864 $ 1,038 $ 756 $ 1,794 $ 6,980 Foodservice 1,439 2,955 290 35 325 4,719 Industrial 349 604 1,402 186 1,588 2,541 4,110 6,423 2,730 977 3,707 14,240 Operating costs excluding depreciation, amortization, and restructuring costs (Note 5) 3,572 5,900 2,514 886 3,400 12,872 Adjusted EBITDA 538 523 216 91 307 1,368 Depreciation and amortization 86 206 93 80 173 465 Restructuring costs (Note 10) — — — 6 6 6 (Gain) on hyperinflation (Argentina net monetary position) — — (2) — (2) (2) Financial charges (Note 11) 125 Earnings before income taxes $ 774 1 Australia accounted for $1.868 billion of the International Sector's revenues while Argentina accounted for $862 million for the nine-month period ended December 31, 2025. For the nine-month period ended December 31, 2024 International and Europe Canada USA International1 Europe Subtotal Consolidated Revenues Retail $ 2,203 $ 3,004 $ 1,120 $ 685 $ 1,805 $ 7,012 Foodservice 1,391 3,016 359 28 387 4,794 Industrial 312 595 1,456 139 1,595 2,502 3,906 6,615 2,935 852 3,787 14,308 Operating costs excluding depreciation, amortization, and restructuring costs (Note 5) 3,416 6,148 2,785 770 3,555 13,119 Adjusted EBITDA 490 467 150 82 232 1,189 Depreciation and amortization 88 200 91 83 174 462 Goodwill and intangibles assets impairment charge (Note 4) — — — 684 684 684 Restructuring costs (Note 10) — 1 4 2 6 7 Loss on hyperinflation (Argentina net monetary position) — — 16 — --- 16 16 Financial charges (Note 11) 139 Earnings before income taxes $ (119) 1 Australia accounted for $2.025 billion of the International Sector's revenues while Argentina accounted for $910 million for the nine-month period ended December 31, 2024. SAPUTO INC. 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