Neptune Model Complete

July 24, 2014
Neptune Chocolate Inc.

Financial Model
Prepared By:
The Marquee Group

Summary Values
Summary Enterprise Values (1)
Enterprise Values
Case
(C$ millions)
(Multiple of 2011F EBITDA)
Base Case
379
to
414
6.8 x
to
7.4 x
Best Case
494
to
539
8.8 x
to
9.6 x
Worst Case
274
to
298
4.9 x
to
5.3 x
2013
2014
2015
Summary Values and Statistics

Case
2009A
2010A
2011F
2012
2016
Base Case
EBITDA ($MM)
64.0
58.0
55.9
50.3
56.2
65.6
75.3
87.9
EBITDA Margin
14.2%
13.1%
nm
nm
12.7%
2.5 x
11.4%
2.3 x
11.8%
1.6 x
12.9%
1.0 x
13.7%
0.6 x
14.7%
0.1 x
nm
nm
nm
(41.3%)
17.1%
35.9%
39.1%
39.9%
Senior Secured Debt / EBITDA

Internal Rate of Return (2)
Best Case
EBITDA ($MM)
64.0
58.0
55.9
57.3
69.4
85.8
99.7
111.4
EBITDA Margin
14.2%
13.1%
nm
nm
12.7%
2.5 x
12.5%
1.9 x
13.8%
1.2 x
15.7%
0.8 x
17.0%
0.4 x
18.0%
0.0 x
nm
nm
nm
31.5%
66.1%
67.7%
60.2%
53.0%

Worst Case
EBITDA ($MM)
64.0
58.0
55.9
47.0
48.9
51.4
53.2
57.9
EBITDA Margin
14.2%
13.1%
nm
nm
12.7%
2.5 x
11.0%
2.5 x
10.9%
2.0 x
11.0%
1.5 x
10.8%
1.1 x
11.0%
0.7 x
nm
nm
nm
(74.0%)
(23.9%)
0.2%
7.3%
13.9%

(1)
The Summary Enterprise Values on this page use a WACC of 12.0% and a terminal value growth rate of 2.0% at the low end
of each range, and a WACC of 11.5% and a terminal value growth rate of 2.5% at the high end of each range.
(2)
IRRs were calculated using an EBITDA Exit Multiple of 6.5x.
The Marquee Group

C:\My Documents\Neptune Model.xls
Page 2 of 23
7/24/2014 7:19 AM

Sources and Uses of Capital
PURCHASE PRICE - C$MM
IMPLIED PURCHASE MULTIPLES
2011F EBITDA
Purchase Multiple of EBITDA
Purchase Price (Enterprise Value)
$55.9
6.5 x
$363.3
2012F
2013F
SOURCES OF CAPITAL - AT CLOSING

Debt Source
Multiple of
EBITDA
Amount
EBITDA
$50.3
$56.2
TRANSACTION FEES
% of
Capital
Interest Rate
Category
Fees %
(C$MM)
Cash on Hand
Revolver
Term Debt
Mezzanine
Total Debt
Equity Source
Preferred Shares
Management
KKZ
Total Equity
Div. Rate
8.5%
0.0%
0.0%
LIBOR - 1.0%
LIBOR + Spread
LIBOR + Spread
8.0%
Amount % of Cap.
6.6%
$25.0
1.3%
$5.0
$65.2
17.3%
$95.2
25.3%
% of Common
0.0%
7.1%
92.9%
100.0%
Total Sources of Capital
$376.7
The Marquee Group

0.0%
0.7%
4.0%
0.7%
$0.0
$0.8
$5.6
$2.5
$1.0
$1.0
$0.5
$0.0
$11.4
PURCHASE PRICE ALLOCATION
Amount
% of
Total
EBITDA
Multiple
(C$MM)
Purchase of Equity
Target Debt Refinanced
Transaction Fees
Total Uses of Capital
Revolver
Term Debt
Mezzanine
M&A
Due Diligence
Legal
Consultants
Other
Total Fees
100.0%
USES OF CAPITAL - AT CLOSING
Capital Use
Fees
(C$MM)
0.5%
7.4%
29.7%
37.1%
74.7%
$2.0
$27.9
$111.8
$139.7
$281.4
0.5 x
2.0 x
2.5 x
5.0 x
Multiple
7.2 x
6.5 x
$300.3
$65.0
$11.4
$376.7
79.7%
17.3%
3.0%
100.0%
5.4 x
1.2 x
0.2 x
6.7 x
Page 3 of 23
Enterprise Value
Less: Net Debt prior to Close
Implied Equity Purchase Value
$363.3
$63.0
$300.3
Equity on B/S Prior to Close

Write-up / (Write-down) of Assets
Goodwill Created
$250.3
$10.0
$40.0
7/24/2014 7:19 AM

Inputs and Assumptions
GENERAL
- First year of forecast period in the model: 2012
- The model is a 5-year cash flow model discounted to Jan. 1, 2012
TAXES
- The acquisition is assumed to be a share purchase
- Tax rate assumed in the model:
- Blended CCA Rate assumed in the model:
- Opening tax loss carry forward (TLCF) balance:
- Opening Undepreciated Capital Cost (UCC) balance:
COSTS
- Sales Discounts and Commissions
- SG&A as a % of net Sales
- Manufacturing Costs grow at inflation
2.0%
5.5%
OPERATIONS
- Operating Days per Year
- Maximum Production (000's Cases per day)
CAPITAL EXPENDITURES (CAPEX)

- Capex has been assumed at $14.2 million in 2012, $15.3 million in 2013 and
grown at inflation thereafter.
(CDN$ MM)
Maintenance
Environmental
Strategic
Total
2012
14.2
0.0
0.0
$14.2
2013
15.3
0.0
0.0
$15.3
2014
15.7
0.0
0.0
$15.7
2015
16.0
0.0
0.0
$16.0
VALUATION
- Low end of the discount rate (WACC) range:
- The discount rate range used is 11.0% to 12.5%
- The terminal year is valued using a perpetuity formula
2016
16.4
0.0
0.0
$16.4
EARNINGS ADJUSTMENTS
- The following one-time cost adjustments have been included in the model:
(C$ MM)
Restructuring
Adjustment 2
Adjustment 3
Total
2012
(2.0)
0.0
0.0
($2.0)
2013
(2.0)
0.0
0.0
($2.0)
2014
0.0
0.0
0.0
$0.0
2015
0.0
0.0
0.0
$0.0
2016
0.0
0.0
0.0
$0.0
DEPRECIATION & AMORTIZATION

- Depreciation Methodology Used:
- Years remaining for depreciation of existing assets:
- Years used for depreciation of new assets:
The Marquee Group

35.0%
15.0%
$18.5
$170.5
350
16.5
11.0%
- Low end of the terminal value growth rate:

- Term. value growth rate range is 1.5% to 3.0%
1.5%
- EBITDA Exit Multiple for IRR Calculations:
6.5 x
TERMINAL YEAR
- EBITDA Margin is the avg. margin from 2012 to 2016
- This EBITDA Margin is used to calculate EBITDA
- Full cash taxes are paid (ie. no Deferred Taxes)
- Capex is equal to 2016 Capex grown at inflation
- Depreciation is equal to Capex
- No changes in working capital
WORKING CAPITAL DAYS

Straight Line
20 years
25 years
Page 4 of 23
- Accounts Receivable
- Inventories
- Accounts Payable
30 days
40 days
30 days
7/24/2014 7:19 AM

Inputs and Assumptions
DEBT COVENANTS AND REPAYMENT TERMS
PRICING GRID FOR SENIOR SECURED DEBT
Total Senior Secured Debt (Revolver and Term Debt)

- Senior Debt / EBITDA at Close
- Covenant Tightens Annually by:
2.50 x
0.25 x
Revolver
- Maximum Amount Available (C$ MM):
- Revolver outstanding can't exceed the following Margining Formula
on Accounts Receivable and Inventory:
- Accounts Receivable Percentage
- Inventory Percentage
- Interest on Undrawn Amounts (Stand-by Fee):
- Cash sweep of FCF After Scheduled Debt Repayments and Dividends
Senior Secured Term Debt
- Sr. Secured Term Debt / EBITDA at Close:
- Bullet payment due at the end of 2016
- Scheduled Principal Repayment from 2012 to 2016:
Principal Rpmt:
2012
10.0%
2013
15.0%
2014
15.0%
2015
20.0%
$40.0
If Total Debt / EBITDA >=

0.0 x
1.0 x
1.5 x
2.0 x
2.5 x
3.0 x
3.5 x
Spread to LIBOR
1.00%
1.50%
2.00%
2.50%
2.75%
3.00%
3.25%
75.0%
50.0%
0.50%
MODEL CHECKS
2.00 x
Have Sales Reached Capacity?

Revolver Size:
Senior Debt / EBITDA Covenant:
EBITDA / Interest Covenant:
Balance Sheet Balanced:
YES
OK
TRIPPED
OK
OK
2016
40.0%
Mezzanine Debt
- Mezzanine Debt / EBITDA at Close
- Scheduled Principal Repayments
- PIK Interest Percentage:
If Total Debt / EBITDA in the previous year is:
2.50 x
$0.0
60.0%
> 3.50 x
Interest Coverage
- EBITDA / Interest Covenant
> 1.50 x
EQUITY ISSUANCE / (REDEMPTION)

(C$ MM)
Preferred Shares
2012
$0.0
2013
$0.0
2014
$0.0
2015
$0.0
2016
$0.0
Common Shares
$0.0
$0.0
$0.0
$0.0
$0.0
The Marquee Group

Page 5 of 23
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Sales and Economic Scenarios
SCENARIO SWITCH
2012
2013
2014
2015
2016
Term
2.0%
2.2%
2.5%
2.5%
2.5%
2.0%
2.0%
2.2%
1.8%
2.2%
2.5%
2.0%
2.5%
3.0%
2.0%
2.5%
3.0%
2.0%
2.5%
3.0%
2.0%
2.0%
2.5%
2.0%
3.0%
5.0%
6.0%
5.0%
4.0%
2.5%
3.0%
5.0%
1.0%
5.0%
7.0%
3.0%
6.0%
7.0%
3.0%
5.0%
5.0%
3.0%
4.0%
5.0%
3.0%
2.5%
4.0%
2.0%
2.5%
2.5%
2.5%
2.2%
2.2%
2.2%
2.5%
1.8%
2.2%
2.5%
2.0%
2.7%
2.5%
2.0%
2.7%
2.2%
2.0%
2.7%
2.2%
2.0%
2.7%
2.2%
2.0%
2.5%
0.88
0.88
0.89
0.89
0.87
0.86
0.88
0.87
0.89
0.88
0.87
0.89
0.89
0.88
0.90
0.89
0.88
0.90
0.87
0.86
0.88
0.86
0.85
0.87
2.50%
2.75%
3.00%
3.25%
3.50%
3.50%
SALES SCENARIOS
Sales Price Growth
Base Case
Best Case
Worst Case
Sales Volume Growth
Base Case
Best Case
Worst Case
ECONOMIC SCENARIOS
Cost Inflation
Base Case
Best Case
Worst Case
FX Rate - US$ / C$
Base Case
Best Case
Worst Case
LIBOR
Base Case
The Marquee Group

Page 6 of 23
7/24/2014 7:19 AM
CURRENTLY RUNNING: BASE CASE

Revenue Schedule
2009A
2010A
2011F
2012
2013
Projected
2014
2015
2016
Term
Exchange Rate
(US$ / C$)
0.71
0.77
0.84
0.88
0.88
0.89
0.89
0.87
0.86
Pricing
Sales Price Growth
Gross Sales Price per Case
(%)
2.1%
80.0
1.2%
81.0
1.6%
82.3
2.0%
83.9
2.2%
85.7
2.5%
87.9
2.5%
90.1
2.5%
92.3
2.0%
94.2
112.7
2.1%
(2.4)
110.3
105.1
2.3%
(2.4)
102.7
97.7
2.0%
(2.0)
95.7
95.3
2.0%
(1.9)
93.4
97.4
2.0%
(1.9)
95.5
98.8
2.0%
(2.0)
96.8
101.2
2.0%
(2.0)
99.2
106.1
2.0%
(2.1)
104.0
109.5
2.0%
(2.2)
107.3
340.0
16.2
5.5
345.0
16.3
5.6
348.0
16.5
5.7
350.0
16.5
5.8
350.0
16.5
5.8
350.0
16.5
5.8
350.0
16.5
5.8
350.0
16.5
5.8
350.0
16.5
5.8
Gross Sales Price per Case

Discounts and Commissions
Net Sales Price per Case
Capacity
Operating Days
Maximum Units per Day
Annual Mfg. Capacity
(US$/case)
(C$/case)
(%)
(C$/case)
(C$/case)
(Days)
(000's cases / day)
(MM's cases)
Sales Volume
Sales Volume Growth
Annual Sales Volume
(%)
Capacity Utilization
(%)
Revenue
Gross Revenue
Net Revenue
The Marquee Group

(MM's cases)
(C$ MM)
(C$ MM)
(C$ MM)
4.9%
7.0%
3.0%
5.0%
6.0%
5.0%
4.0%
2.5%
4.1
4.3
4.6
4.7
5.0
5.3
5.5
5.8
5.8
74%
76%
80%
82%
86%
91%
96%
100%
100%
462.0
(9.9)
452.0
452.1
(10.5)
441.6
449.4
(9.0)
440.4
451.7
(9.0)
442.7
484.7
(9.7)
475.1
520.8
(10.4)
510.3
560.5
(11.2)
549.3
611.2
(12.2)
599.0
632.5
(12.6)
619.8
Page 7 of 23
7/24/2014 7:19 AM

Manufacturing Costs Schedule
Cost Inflation
Exchange Rate
Sales Volume
2009A
2010A
2011F
2012
2013
Projected
2014
2015
2016
0.71
4.1
0.77
4.3
0.84
4.6
2.5%
0.88
4.7
2.5%
0.88
5.0
2.5%
0.89
5.3
2.2%
0.89
5.5
2.2%
0.87
5.8
(US$/case)
30.0
23.0
53.0
30.0
24.0
54.0
31.0
24.0
55.0
31.8
24.6
56.4
32.6
25.2
57.8
33.4
25.8
59.2
34.1
26.4
60.5
34.9
27.0
61.9
(C$/case)
74.6
70.1
65.3
64.1
65.7
66.5
68.0
71.1
(C$/case)
(C$/case)
6.8
4.9
2.4
1.0
15.1
6.5
4.2
2.3
0.9
14.0
6.3
3.9
2.2
0.9
13.3
6.3
3.9
2.2
0.9
13.2
6.1
3.8
2.1
0.8
12.9
5.9
3.7
2.0
0.8
12.5
5.8
3.6
2.0
0.8
12.1
5.7
3.5
2.0
0.8
11.9
(C$/case)
$89.8
$84.1
$78.6
$77.3
$78.5
$79.0
$80.1
$83.0
(C$ MM)
173.2
132.8
306.1
167.5
134.0
301.6
169.4
131.1
300.5
171.1
132.4
303.5
184.1
142.5
326.7
197.8
153.1
350.9
212.3
164.3
376.6
230.8
178.7
409.5
(C$ MM)
28.0
20.0
10.0
4.0
62.0
28.0
18.0
10.0
4.0
60.0
29.0
18.0
10.0
4.0
61.0
29.7
18.5
10.3
4.1
62.5
30.5
18.9
10.5
4.2
64.1
31.2
19.4
10.8
4.3
65.7
31.9
19.8
11.0
4.4
67.1
32.6
20.2
11.2
4.5
68.6
(C$ MM)
$368.1
$361.6
$361.5
$366.1
$390.8
$416.6
$443.7
$478.1
(%)
(US$ / C$)
(MM's cases)
COSTS PER UNIT

Variable Costs
Cacao
Sugars
Total Variable Costs
Fixed Costs
Labour
Energy
Supplies
Other
Total Fixed Costs
Total Cost of Sales
(US$/case)
(US$/case)
(C$/case)
(C$/case)
(C$/case)
COSTS IN MILLIONS
Variable Costs
Cacao
Sugars
Fixed Costs
Labour
Energy
Supplies
Other
Total Fixed Costs
Total Cost of Sales
The Marquee Group

(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
Page 8 of 23
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Income Statement
2009A
Sales Volume
Revenue
Gross Revenue
Net Revenue
(MM's cases)
4.1
2010A
4.3
2011F
4.6
2012
2013
4.7
5.0
Projected
2014
5.3
2015
2016
5.5
5.8
(C$ MM)
462.0
(9.9)
452.0
452.1
(10.5)
441.6
449.4
(9.0)
440.4
451.7
(9.0)
442.7
484.7
(9.7)
475.1
520.8
(10.4)
510.3
560.5
(11.2)
549.3
611.2
(12.2)
599.0
Cost of Sales
(C$ MM)
368.1
361.6
361.5
366.1
390.8
416.6
443.7
478.1
S,G & A as a % of Sales

S,G & A
Total Costs
(%)
Adjustments
EBITDA
(C$ MM)
Depreciation
EBIT
(C$ MM)
Cash Interest
PIK Interest
Total Interest Expense
(C$ MM)
(C$ MM)
(C$ MM)
Term
5.8
632.5
(12.6)
619.8
4.4%
5.0%
5.2%
5.5%
5.5%
5.5%
5.5%
5.5%
20.0
388.1
22.0
383.6
23.0
384.5
24.3
390.4
26.1
416.9
28.1
444.7
30.2
473.9
32.9
511.0
0.0
64.0
0.0
58.0
0.0
55.9
(2.0)
50.3
(2.0)
56.2
0.0
65.6
0.0
75.3
0.0
87.9
79.9
14.7
49.3
14.8
43.2
15.0
40.9
16.5
33.8
17.1
39.1
17.7
47.9
18.4
57.0
19.0
68.9
16.7
63.1
(C$ MM)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
12.0
6.9
18.8
11.1
7.2
18.3
10.1
7.6
17.7
16.5
0.0
16.5
14.7
0.0
14.7
0.0
0.0
0.0
EBT
(C$ MM)
49.3
43.2
40.9
14.9
20.8
30.3
40.5
54.2
63.1
Current Income Taxes

Deferred Income Taxes
Total Income Taxes
(C$ MM)
(C$ MM)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
5.2
5.2
0.0
7.3
7.3
8.3
2.2
10.6
12.8
1.4
14.2
18.1
0.8
19.0
22.1
0.0
22.1
Net Income
(C$ MM)
49.3
43.2
40.9
9.7
13.5
19.7
26.3
35.3
41.0
Preferred Dividends
Net Income to Common
(C$ MM)
0.0
49.3
0.0
43.2
0.0
40.9
2.1
7.6
2.1
11.4
2.1
17.5
2.1
24.2
2.1
33.1
2.1
38.9
14.2%
10.9%
13.1%
9.8%
12.7%
9.3%
11.4%
7.6%
14.1%
11.8%
8.2%
16.1%
12.9%
9.4%
19.0%
13.7%
10.4%
21.8%
14.7%
11.5%
25.4%
12.9%
Margins
EBITDA Margin
EBIT Margin
Return on Capital (1)
(1)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(%)
(%)
(%)
Defined as EBITDA divided by average Total Capital
The Marquee Group

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Cash Flow Statement
(C$ Millions)
2009A
2010A
2011F
2012
2013
Projected
2014
2015
2016
49.3
14.7
0.0
0.0
0.0
64.0
43.2
14.8
0.0
0.0
0.0
58.0
40.9
15.0
0.0
0.0
0.0
55.9
9.7
16.5
6.9
5.2
3.6
41.9
13.5
17.1
7.2
7.3
(3.5)
41.6
19.7
17.7
7.6
2.2
(3.6)
43.6
26.3
18.4
0.0
1.4
(3.9)
42.1
35.3
19.0
0.0
0.8
(4.9)
50.2
Investing Activities
CAPEX
Other
Investing Cash Flow
(12.0)
0.0
(12.0)
(13.0)
0.0
(13.0)
(14.0)
0.0
(14.0)
(14.2)
0.0
(14.2)
(15.3)
0.0
(15.3)
(15.7)
0.0
(15.7)
(16.0)
0.0
(16.0)
(16.4)
0.0
(16.4)
FCF Before Debt Issuance / (Repayment)
$52.0
$45.0
$41.9
$27.7
$26.3
$27.9
$26.1
$33.9
(14.4)
(11.2)
0.0
0.0
0.0
(2.1)
0.0
(27.7)
(7.4)
(16.8)
0.0
0.0
0.0
(2.1)
0.0
(26.3)
(6.1)
(16.8)
0.0
0.0
0.0
(2.1)
0.0
(25.0)
0.0
(22.4)
0.0
0.0
0.0
(2.1)
0.0
(24.5)
8.5
(44.7)
0.0
0.0
0.0
(2.1)
0.0
(38.4)
0.0
0.0
0.0
0.0
0.0
0.0
2.9
0.0
2.9
1.6
2.9
4.5
(4.5)
4.5
0.0
Operating Activities
Net Income
Depreciation
PIK Interest
Changes in working capital
Operating Cash Flow
Financing Activities
Revolver Issuance / (Repayment)
Bank Term Loan Issuance / (Repayment)
Mezzanine Debt Issuance / (Repayment)
Issue (Redemption) of Preferred Shares
Issue (Redemption) of Common Shares
Preferred Dividends
Common Dividends
Total Financing Activities
Change in the Cash Position

Beginning Cash
Ending Cash
The Marquee Group

Page 10 of 23
7/24/2014 7:19 AM

Balance Sheet
(C$ Millions)
BS prior
to Closing
ASSETS
Cash
Accounts Receivable
Inventory
Other
Total Current Assets
Net PP&E
Goodwill
Other
Total Assets
LIABILITIES AND EQUITY

Revolver
Accounts Payable
Other
Total Current Liabilities
Adjust.
BS at
Closing
Projected
2014
2012
2013
0.0
35.3
43.1
1.6
80.0
0.0
36.3
40.0
1.6
77.9
0.0
39.0
42.8
1.6
83.5
2.9
41.9
45.7
1.6
92.1
4.5
45.1
48.6
1.6
99.9
0.0
49.1
52.3
1.6
102.9
324.5
40.0
0.0
444.5
322.2
40.0
0.0
440.0
320.4
40.0
0.0
443.8
318.4
40.0
0.0
450.4
316.0
40.0
0.0
455.9
313.4
40.0
0.0
456.3
27.9
27.9
28.5
2.3
58.7
13.5
30.0
2.3
45.8
6.1
32.1
2.3
40.5
0.0
34.2
2.3
36.5
0.0
36.5
2.3
38.8
8.5
39.2
2.3
49.9
2.0
35.3
43.1
1.6
82.0
(2.0)
314.5
0.0
0.0
396.5
10.0
40.0
0.0
28.5
2.3
30.8
27.9
(2.0)
48.0
2015
2016

Senior Secured Bank Term Debt
Mezzanine Debt
Total Long Term Liabilities
50.4
65.0
0.0
115.4
46.8
139.7
186.5
50.4
111.8
139.7
301.9
55.6
100.6
146.6
302.8
62.9
83.8
153.8
300.5
65.1
67.1
161.4
293.6
66.5
44.7
161.4
272.6
67.4
0.0
161.4
228.7
Total Liabilities
146.2
214.4
360.6
348.6
341.0
330.1
311.4
278.7
Preferred Shares
Common Shares
Retained Earnings
Shareholder's Equity
0.0
25.0
225.3
250.3
25.0
45.2
(236.7)
(166.5)
25.0
70.2
(11.4)
83.8
25.0
70.2
7.6
102.8
25.0
70.2
25.1
120.3
25.0
70.2
49.3
144.5
25.0
70.2
82.4
177.6
$396.5
$48.0
$444.5
$440.0
$443.8
$450.4
$455.9
$456.3
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
Total Liabilities and Equity

Check
The Marquee Group

Page 11 of 23
25.0
70.2
(3.8)
91.4
7/24/2014 7:19 AM

Depreciation Schedule
(C$ Millions)
Years Remaining on Existing Assets:

Depreciation Years on New Assets:
Depreciation to Existing Assets
CAPEX
2012
2013
2014
2015
2016
Total Depreciation
The Marquee Group

2009A
2010A
2011F
$14.7
$14.8
$15.0
2012
Projected
2013
2014
2015
2016
20
25
$14.2
$15.3
$15.7
$16.0
$16.4
$14.7
$14.8
$15.0
Page 12 of 23
$16.2
$16.2
$16.2
$16.2
$16.2
0.3
0.6
0.3
0.6
0.6
0.3
0.6
0.6
0.6
0.3
0.6
0.6
0.6
0.6
0.3
$16.5
$17.1
$17.7
$18.4
$19.0
7/24/2014 7:19 AM

Income Tax Schedule
(C$ Millions)
Tax Rate
35.0%
2012
Earnings Before Taxes (as is on I/S)
2013
Projected
2014
2015
2016
$14.9
$20.8
$30.3
$40.5
$54.2
Add Back Accounting Depreciation

Deduct CCA for Tax Purposes
Earnings Before TLCF after CCA
16.5
26.6
4.8
17.1
24.9
13.0
17.7
23.5
24.5
18.4
22.3
36.5
19.0
21.4
51.9
Tax Loss Carry Forward Schedule

Existing TLCF - Initial Balance
Existing TLCF Used
Earnings after use of Existing TLCF
18.5
4.8
0.0
13.7
13.0
0.0
0.7
0.7
23.9
0.0
0.0
36.5
0.0
0.0
51.9
Newly Created TLCF - Beginning

Newly Created TLCF Used (Added)
Newly Created TLCF - Ending
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
13.7
13.7
0.7
0.7
0.0
0.0
0.0
0.0
0.0
0.0
$0.0
$0.0
$23.9
$36.5
$51.9
Accounting Taxes (35% of A)
5.2
7.3
10.6
14.2
19.0
Taxes as Appearing on Income Statement

Current Tax (35% of B)
Increase (Decrease) in Deferred Income Taxes
Total Income Taxes (Same as Accounting Taxes Above)
0.0
5.2
5.2
0.0
7.3
7.3
8.3
2.2
10.6
12.8
1.4
14.2
18.1
0.8
19.0
2012
2013
2014
2015
2016
Remaining Existing TLCF

Total TLCF Available
Taxable Income (after CCA and TLCF)
CCA Schedule
Blended CCA Rate
UCC Beginning
Plus: New Capex
1/2 of New Capex
UCC After New Capex (1/2 Year)
Less: CCA Available and Used
UCC Ending (C + D - E)
The Marquee Group

15.0%
170.5
14.2
7.1
177.6
26.6
$158.1
C
D
Page 13 of 23
158.1
15.3
7.7
165.7
24.9
$148.5
148.5
15.7
7.8
156.3
23.5
$140.7
140.7
16.0
8.0
148.7
22.3
$134.4
134.4
16.4
8.2
142.6
21.4
$129.4
7/24/2014 7:19 AM

Working Capital Schedule
(C$ Millions)
2009A
2010A
2011F
2012
2013
Projected
2014
2015
2016
Days per Year
(days)
365.0
366.0
365.0
365.0
365.0
366.0
Income Statement Items

Net Revenue
Cost of Sales
(C$ MM)
440.4
361.5
442.7
366.1
475.1
390.8
510.3
416.6
549.3
443.7
599.0
478.1
29.3
43.5
28.8
30.0
40.0
30.0
30.0
40.0
30.0
30.0
40.0
30.0
30.0
40.0
30.0
30.0
40.0
30.0
35.3
43.1
28.5
49.9
36.3
40.0
30.0
46.3
39.0
42.8
32.1
49.8
41.9
45.7
34.2
53.4
45.1
48.6
36.5
57.3
49.1
52.3
39.2
62.2
$3.6
($3.5)
($3.6)
($3.9)
($4.9)
Days In
Accounts Receivable
Inventories
Accounts Payable
Account Balances
Accounts Receivable
Inventories
Accounts Payable
Net Working Capital
Change in Working Capital
The Marquee Group

(C$ MM)
(days)
(days)
(days)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
Page 14 of 23
7/24/2014 7:19 AM

Debt and Interest Schedule (Part 1)
(C$ Millions)
BS at
Closing
LIBOR Forecast
Total Debt / EBITDA
Cash
Amount Outstanding - Beginning
Change in Cash
Amount Outstanding - Ending
2012
2013
Projected
2014
2015
2016
5.00 x
2.50%
5.18 x
2.75%
4.34 x
3.00%
3.48 x
3.25%
2.74 x
3.50%
1.93 x
$0.0
0.0
0.0
$0.0
0.0
0.0
$0.0
0.0
2.9
$2.9
2.9
1.6
$4.5
Spread to LIBOR
Interest Rate (LIBOR minus 100 bp)
Annual Interest Income
4.5
(4.5)
$0.0
(1.00%)
1.50%
$0.0
(1.00%)
1.75%
$0.0
(1.00%)
2.00%
$0.0
(1.00%)
2.25%
$0.1
(1.00%)
2.50%
$0.1
10.0%
15.0%
15.0%
20.0%
40.0%
111.8
(11.2)
$100.6
100.6
(16.8)
$83.8
83.8
(16.8)
$67.1
67.1
(22.4)
$44.7
44.7
(44.7)
$0.0
3.25%
5.75%
$6.1
3.25%
6.00%
$5.5
3.25%
6.25%
$4.7
3.00%
6.25%
$3.5
2.75%
6.25%
$1.4
139.7
0.0
6.9
$146.6
146.6
0.0
7.2
$153.8
153.8
0.0
7.6
$161.4
161.4
0.0
0.0
$161.4
161.4
0.0
0.0
$161.4
PIK Interest Percentage

Cash Interest Percentage
Interest Rate
60.0%
40.0%
8.0%
60.0%
40.0%
8.0%
60.0%
40.0%
8.0%
0.0%
100.0%
8.0%
0.0%
100.0%
8.0%
PIK Interest Expense

Cash Interest Expense
6.9
4.6
$11.5
7.2
4.8
$12.0
7.6
5.0
$12.6
0.0
12.9
$12.9
0.0
12.9
$12.9
Senior Secured Bank Term Debt

Repayment Schedule
Scheduled Repayments
$111.8
Spread to LIBOR
Interest Rate (LIBOR + Spread)
Annual Interest Expense
Mezzanine Debt
Scheduled Repayments
PIK Amount
The Marquee Group

$139.7
Page 15 of 23
7/24/2014 7:19 AM

Debt and Interest Schedule (Part 2)
(C$ Millions)
BS at
Closing
LIBOR Forecast
Total Debt / EBITDA
2012
2013
Projected
2014
2015
2016
2.50%
5.18 x
2.75%
4.34 x
3.00%
3.48 x
3.25%
2.74 x
3.50%
1.93 x
27.7
(11.2)
(2.1)
14.4
26.3
(16.8)
(2.1)
7.4
27.9
(16.8)
(2.1)
9.0
26.1
(22.4)
(2.1)
1.6
33.9
(44.7)
(2.1)
(13.0)
27.9
(14.4)
$13.5
13.5
(7.4)
$6.1
6.1
(6.1)
$0.0
0.0
0.0
$0.0
0.0
8.5
$8.5
3.25%
5.75%
$1.2
3.25%
6.00%
$0.6
3.25%
6.25%
$0.2
3.00%
6.25%
$0.0
2.75%
6.25%
$0.3
48.0
40.0
47.2
40.0
50.7
40.0
54.3
40.0
58.2
40.0
62.9
40.0
$12.1
12.1
14.4
0.0
$26.5
26.5
7.4
0.0
$33.9
33.9
6.1
0.0
$40.0
40.0
0.0
0.0
$40.0
40.0
(8.5)
0.0
$31.5
0.50%
$0.1
0.50%
$0.2
0.50%
$0.2
0.50%
$0.2
0.50%
$0.2
12.0
6.9
$18.8
11.1
7.2
$18.3
10.1
7.6
$17.7
16.5
0.0
$16.5
14.7
0.0
$14.7
5.00 x
Revolver (Drawn Amount)

FCF Before Debt Issuance / (Repayment)
Scheduled Debt Repayments
Dividends
FCF After Scheduled Debt Repayment and Dividends
Revolver Amount Outstanding - Beginning
Additions / (Repayments)
Revolver Amount Outstanding - Ending
$27.9
Spread to LIBOR
Interest Rate (LIBOR + Spread)
Annual Interest Expense
Revolver (Undrawn Amount)
Margining of Assets Formula Amount
Maximum Revolver Amount Available
Undrawn Amount at Beginning
Repayments / (Drawings)
Less: Reduction in Maximum Amount Available
Amount Available - Ending
Interest Rate on Undrawn Amount
Interest Expense (Stand-By Fee) on Undrawn Amount
Cash Interest
PIK Interest
Net Interest Expense
The Marquee Group

Page 16 of 23
7/24/2014 7:19 AM

Shareholders' Equity Schedule
(C$ Millions)
BS at
Closing
Preferred Shares
New Issuance / (Redemption)
$25.0
Dividend Rate
Preferred Dividend
Common Shares
New Issuance / (Redemption)
$70.2
Dividend Payout Rate

Net Income to Common
Common Dividend
Retained Earnings
Net Income
Preferred Dividend
Common Dividend
The Marquee Group

($11.4)
Page 17 of 23
2012
2013
Projected
2014
2015
2016
25.0
0.0
$25.0
25.0
0.0
$25.0
25.0
0.0
$25.0
25.0
0.0
$25.0
25.0
0.0
$25.0
8.5%
$2.1
8.5%
$2.1
8.5%
$2.1
8.5%
$2.1
8.5%
$2.1
70.2
0.0
$70.2
70.2
0.0
$70.2
70.2
0.0
$70.2
70.2
0.0
$70.2
70.2
0.0
$70.2
0.0%
7.6
$0.0
0.0%
11.4
$0.0
0.0%
17.5
$0.0
0.0%
24.2
$0.0
0.0%
33.1
$0.0
(11.4)
9.7
(2.1)
0.0
($3.8)
(3.8)
13.5
(2.1)
0.0
$7.6
7.6
19.7
(2.1)
0.0
$25.1
25.1
26.3
(2.1)
0.0
$49.3
49.3
35.3
(2.1)
0.0
$82.4
7/24/2014 7:19 AM

Credit Statistics and Covenants
(C$ Millions)
At Closing
Balance Sheet Items
Cash
Revolver
Senior Secured Bank Debt
Mezzanine Debt
Total Debt
Net Debt
Shareholder's Equity
Net Book Capitalization (D+E)
Earnings and Cash Flow Items
EBITDA
Interest Expense
Capital Expenditures
2012
2013
Projected
2014
2015
2016
(C$ MM)
$0.0
27.9
111.8
139.7
279.4
279.4
83.8
363.3
$0.0
13.5
100.6
146.6
260.7
260.7
91.4
352.1
$0.0
6.1
83.8
153.8
243.7
243.7
102.8
346.5
$2.9
0.0
67.1
161.4
228.4
225.5
120.3
345.8
$4.5
0.0
44.7
161.4
206.1
201.5
144.5
346.1
$0.0
8.5
0.0
161.4
169.8
169.8
177.6
347.5
(C$ MM)
$55.9
$50.3
18.8
14.2
$56.2
18.3
15.3
$65.6
17.7
15.7
$75.3
16.5
16.0
$87.9
14.7
16.4
2.50 x
2.25 x
2.00 x
1.75 x
1.50 x
1.25 x
2.50 x
2.27 x
($0.4)
1.60 x
$11.2
1.02 x
$27.3
0.59 x
$45.5
0.10 x
$81.2
1.50 x
1.50 x
1.50 x
1.50 x
1.50 x
1.50 x
2.67 x
$22.0
3.07 x
$28.7
3.72 x
$39.1
4.56 x
$50.5
5.99 x
$65.9
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
Covenant

EBITDA Cushion
Interest Coverage
Covenant
EBITDA / Interest
EBITDA Cushion
Other Ratios
Mezzanine Debt / EBITDA
2.50 x
2.91 x
2.74 x
2.46 x
2.14 x
1.83 x
Total Debt / EBITDA
5.00 x
5.18 x
4.34 x
3.48 x
2.74 x
1.93 x
Net Debt / Total Capitalization
74.0%
70.3%
65.2%
58.2%
48.9%
Interest Coverage ((EBITDA - CAPEX) / Interest)
1.92 x
2.23 x
2.83 x
3.59 x
4.87 x
The Marquee Group

Page 18 of 23
7/24/2014 7:19 AM

IRR Calculations (Based on a Sale as Exit)
(C$ Millions)
EBITDA
Assumed Exit Multiple
Enterprise Value
(C$ MM)
Less: Net Debt

Less: Preferred Shares
Equity Value
(C$ MM)
KKZ Fully Diluted Equity

KKZ Fully Diluted Equity
(%)
Exit at the End of 2012

The Marquee Group

(C$ MM)
(C$ MM)
(C$ MM)
(C$ MM)
IRR
(41.3%)
17.1%
35.9%
39.1%
39.9%
Value
Added
($27.0)
$24.3
$98.4
$179.1
$284.73
KKZ
Investment
($65.2)
($65.2)
($65.2)
($65.2)
($65.2)
Page 19 of 23
2012
2013
Projected
2014
2015
2016
$50.3
6.5 x
326.9
$56.2
6.5 x
365.1
$65.6
6.5 x
426.7
$75.3
6.5 x
489.6
$87.9
6.5 x
571.6
260.7
25.0
41.2
243.7
25.0
96.4
225.5
25.0
176.2
201.5
25.0
263.0
169.8
25.0
376.8
92.9%
38.3
92.9%
89.5
92.9%
163.7
92.9%
244.3
92.9%
350.0
2015
2016
2012
$38.3
$0
$0
$0
$0
Exit Value in:

2013
2014
$89.5
$0
$0
$0
$163.7
$0
$0
$244.3
$0
$350.0
7/24/2014 7:19 AM

Income Tax Schedule for Calculating UFCF
(C$ Millions)
Tax Rate
35.0%
2012
Earnings Before INTEREST and Taxes
2013
Projected
2014
2015
2016
$33.8
$39.1
$47.9
$57.0
$68.9
Add Back Accounting Depreciation

Deduct CCA for Tax Purposes
Earnings Before TLCF after CCA
16.5
26.6
23.7
17.1
24.9
31.3
17.7
23.5
42.2
18.4
22.3
53.0
19.0
21.4
66.5
Tax Loss Carry Forward Schedule

Existing TLCF - Initial Balance
Existing TLCF Used
Earnings after use of Existing TLCF
18.5
18.5
5.2
0.0
0.0
31.3
0.0
0.0
42.2
0.0
0.0
53.0
0.0
0.0
66.5
Newly Created TLCF - Beginning

Newly Created TLCF Used (Added)
Newly Created TLCF - Ending
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Remaining Existing TLCF

Total TLCF Available
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
$5.2
$31.3
$42.2
$53.0
$66.5
Accounting Taxes (35% of A)
11.8
13.7
16.8
19.9
24.1
Taxes as Appearing on Income Statement

Current Tax (35% of B)
Increase (Decrease) in Deferred Income Taxes
Total Income Taxes (Same as Accounting Taxes Above)
1.8
10.0
11.8
11.0
2.7
13.7
14.8
2.0
16.8
18.6
1.4
19.9
23.3
0.8
24.1
CCA Schedule
Blended CCA Rate
2012
2013
2014
2015
2016
Taxable Income (after CCA and TLCF)
UCC Beginning
Plus: New Capex
1/2 of New Capex
UCC After New Capex (1/2 Year)
Less: CCA Available and Used
UCC Ending (C + D - E)
The Marquee Group

15.0%
170.5
14.2
7.1
177.6
26.6
$158.1
C
D
Page 20 of 23
158.1
15.3
7.7
165.7
24.9
$148.5
148.5
15.7
7.8
156.3
23.5
$140.7
140.7
16.0
8.0
148.7
22.3
$134.4
134.4
16.4
8.2
142.6
21.4
$129.4
7/24/2014 7:19 AM

Unlevered Free Cash Flow Schedule
(C$ Millions)
Unlevered Free Cash Flow

EBITDA
Current Taxes
CAPEX
Unlevered Free Cash Flow (DCF Valuation)
2012
2013
50.3
(1.8)
3.6
(14.2)
37.9
56.2
(11.0)
(3.5)
(15.3)
26.4
9.7
16.5
5.2
18.8
(1.8)
3.6
(14.2)
37.9
13.5
17.1
7.3
18.3
(11.0)
(3.5)
(15.3)
26.4
Projected
2014
2015
2016
Term
65.6
(14.8)
(3.6)
(15.7)
31.6
75.3
(18.6)
(3.9)
(16.0)
36.8
87.9
(23.3)
(4.9)
(16.4)
43.4
79.9
(22.1)
0.0
(16.7)
41.0
19.7
17.7
2.2
17.7
(6.4)
(3.6)
(15.7)
31.6
26.3
18.4
1.4
16.5
(5.8)
(3.9)
(16.0)
36.8
35.3
19.0
0.8
14.7
(5.1)
(4.9)
(16.4)
43.4
41.0
16.7
0.0
0.0
0.0
0.0
(16.7)
41.0
CHECK CALCULATION ON UFCF

Net Income
Depreciation
Interest Expense
Tax Shelter on Interest Expense
CAPEX
Check
The Marquee Group

0.000
Page 21 of 23
0.000
0.000
0.000
0.000
0.000
7/24/2014 7:19 AM

DCF Valuation Schedule
(C$ Millions)
WACC
1.5%
11.0%
11.5%
12.0%
12.5%
PV of Cash Flows
PV of Terminal Year
Enterprise Value
136
270
$406
Multiple of 2011F EBITDA
7.3 x
PV of Cash Flows
PV of Terminal Year
Enterprise Value
134
251
$386
6.9 x
PV of Cash Flows
PV of Terminal Year
Enterprise Value
133
235
$367
PV of Cash Flows
PV of Terminal Year
Enterprise Value
131
220
$351
6.3 x
The Marquee Group

2.0%
33%
67%
100%
136
285
$421
Terminal Value Growth Rate

2.5%
32%
68%
100%
7.5 x
35%
65%
100%
134
265
$399
6.6 x
133
246
$379
34%
66%
100%
131
230
$361
6.5 x
Page 22 of 23
134
279
$414
35%
65%
100%
133
259
$392
32%
68%
100%
131
242
$373
6.7 x
30%
70%
100%
134
296
$430
31%
69%
100%
7.7 x
34%
66%
100%
7.0 x
36%
64%
100%
136
321
$456
8.2 x
7.4 x
6.8 x
37%
63%
100%
31%
69%
100%
7.8 x
7.1 x
36%
64%
100%
136
302
$438
3.0%
133
274
$407
33%
67%
100%
7.3 x
35%
65%
100%
131
254
$386
34%
66%
100%
6.9 x
7/24/2014 7:19 AM

Alternate DCF Valuation Schedule
(C$ Millions)
WACC
Terminal EBITDA Multiple
Enterprise Values - Sensitivity Table
12.0%
6.5 x
Terminal Year EBITDA Multiple

C$MM
PV of 5 yr Cash Flows
$133
PV of Terminal Year
$278
Enterprise Value
$411
Implied TV Growth Rate
W
A
C
C
3.1%
$411
5.5 x
6.0 x
6.5 x
7.0 x
7.5 x
11.0%
$383
$406
$428
$451
$473
11.5%
$376
$398
$419
$441
$463
12.0%
$368
$390
$411
$433
$454
12.5%
$361
$382
$403
$424
$445
13.0%
$354
$375
$395
$415
$436
Implied Terminal Value Growth Rate - Sensitivity Table

Terminal Year EBITDA Multiple
W
A
C
C
The Marquee Group

3.1%
5.5 x
6.0 x
6.5 x
7.0 x
7.5 x
11.0%
0.6%
1.5%
2.2%
2.9%
3.4%
11.5%
1.1%
2.0%
2.7%
3.3%
3.9%
12.0%
1.5%
2.4%
3.1%
3.8%
4.3%
12.5%
2.0%
2.9%
3.6%
4.2%
4.8%
13.0%
2.4%
3.3%
4.1%
4.7%
5.3%
Page 23 of 23
7/24/2014 7:19 AM

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July 24, 2014

Neptune Chocolate Inc.

Neptune Chocolate Inc.

(Multiple of 2011F EBITDA)

Summary Values and Statistics

Senior Secured Debt / EBITDA

Senior Secured Debt / EBITDA

Senior Secured Debt / EBITDA

IRRs were calculated using an EBITDA Exit Multiple of 6.5x.

The Marquee Group

Neptune Chocolate Inc.

IMPLIED PURCHASE MULTIPLES

SOURCES OF CAPITAL - AT CLOSING

Total Sources of Capital

The Marquee Group

PURCHASE PRICE ALLOCATION

USES OF CAPITAL - AT CLOSING

Equity on B/S Prior to Close

Neptune Chocolate Inc.

CAPITAL EXPENDITURES (CAPEX)

DEPRECIATION & AMORTIZATION

The Marquee Group

- Low end of the terminal value growth rate:

- EBITDA Exit Multiple for IRR Calculations:

WORKING CAPITAL DAYS

Neptune Chocolate Inc.

PRICING GRID FOR SENIOR SECURED DEBT

Total Senior Secured Debt (Revolver and Term Debt)

If Total Debt / EBITDA >=

Have Sales Reached Capacity?

EQUITY ISSUANCE / (REDEMPTION)

The Marquee Group

Neptune Chocolate Inc.

The Marquee Group

CURRENTLY RUNNING: BASE CASE

Neptune Chocolate Inc.

Gross Sales Price per Case

The Marquee Group

CURRENTLY RUNNING: BASE CASE

Neptune Chocolate Inc.

COSTS PER UNIT

The Marquee Group

CURRENTLY RUNNING: BASE CASE

Neptune Chocolate Inc.

S,G & A as a % of Sales

Current Income Taxes

The Marquee Group

CURRENTLY RUNNING: BASE CASE

Neptune Chocolate Inc.

FCF Before Debt Issuance / (Repayment)

Change in the Cash Position

The Marquee Group

CURRENTLY RUNNING: BASE CASE

Neptune Chocolate Inc.

LIABILITIES AND EQUITY

Deferred Income Taxes

Total Liabilities and Equity

The Marquee Group

CURRENTLY RUNNING: BASE CASE

Neptune Chocolate Inc.

Years Remaining on Existing Assets:

The Marquee Group

CURRENTLY RUNNING: BASE CASE

Neptune Chocolate Inc.