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Maple Leaf Foods Reports Results for Fourth Quarter Fiscal 2007

EARNINGS INCREASE DESPITE CURRENCY AND COMMODITY HEADWINDSTORONTO, Feb 21, 2008 /PRNewswire-FirstCall via COMTEX News Network/ — Maple Leaf Foods Inc. (TSX: MFI)
today reported its financial results for the fourth quarter and year ended
December 31, 2007.

Financial and operational highlights include:

  • Earnings from operations increased 11% in the quarter;
    15% for the year
  • Earnings per share increased 54% to $0.20 in the quarter;
    $0.51 for the year
  • Protein Group operating earnings up 15% in the quarter;
    14% for the year
  • Bakery Products Group operating earnings up 5% for the quarter;
    16% for the year
  • Successfully double shifted front end processing at the Brandon pork
    plant
  • Completed the sale of non-core hog production operations
    in early 2008

Note: All earnings measures are defined as earnings from continuing
operations before restructuring and other related costs. All earnings per
share measures are defined as earnings per share from continuing
operations before restructuring and other related costs and certain non-
recurring tax adjustments.

“The global food industry has been impacted by the ripple effect of an
unprecedented rise in commodity grain costs over the past year. Our steady
performance in 2007 reflects our efforts to manage this impact through
reducing costs and raising prices,” said Michael H. McCain, President and CEO.
“While we are well positioned to offset a continued rise in input costs over
time, heading into 2008 we may face some short-term volatility depending on
the precise timing of matching price action with cost increases, given the
magnitude of the changes. However, we are making excellent progress in
implementing structural changes in our protein operations that will
substantially increase profitability and reduce currency and commodity
exposure for the long term. This includes the recent sale of our Ontario and
Alberta hog operations that will significantly reduce our losses in this
business.”

Financial Overview
——————

Sales for the fourth quarter decreased by 6% to $1.3 billion compared to
the same period last year, and year to date sales decreased 2% to $5.2
billion. Although price increases and acquisitions have generated higher
sales, total sales are lower due to the impact of the sale or exit of non-core
businesses and the stronger Canadian dollar.

Earnings from continuing operations before restructuring and other related
costs (“Adjusted Operating Earnings”) increased 11% to $57.9 million for the
quarter and by 15% to $199.1 million for the year. Price increases in both the
Bakery and Meat Products Groups mostly offset rising input costs and, combined
with improved operational efficiencies and the contribution of acquisitions in
the U.K., had a positive impact on results for the quarter and the year.

Earnings per share from continuing operations before restructuring and
other related costs and certain non-recurring tax adjustments (“Adjusted EPS”)
for the quarter were $0.20, compared to $0.13 last year. Earnings per share
for the year, on a comparable basis, were $0.51 compared to $0.38 last year.

    Following is a summary of Adjusted EPS:

                                          Fourth Quarter       Year-To-Date
                                        -------------------------------------
                                          2007      2006      2007      2006
                                          ----      ----      ----      ----

    EPS from continuing operations      ($0.19)   ($0.14)   ($0.18)   ($0.16)

    Restructuring and other related
     costs, net of tax (i)               $0.47     $0.27     $0.77     $0.53

    Tax benefit from lower future tax
     rates (ii)                         ($0.08)        -    ($0.08)        -

                                        -------------------------------------
    Adjusted EPS (iii)(iv)               $0.20     $0.13     $0.51     $0.38

    Discontinued operations              $0.01     $0.05     $1.81     $0.19

                                        -------------------------------------
                                        -------------------------------------
    EPS before restructuring and other
     related costs (iii) (iv)            $0.22     $0.17     $2.32     $0.57
                                        -------------------------------------
                                        -------------------------------------

    (i)    Includes the per share impact of restructuring and other related
           costs net of tax and minority interest and includes the
           recognition of a tax benefit of $5.1 million in Q2 2007 related to
           the sale of the animal nutrition business and a non-recurring tax
           adjustment in 2006 for $21.2 million to write down future tax
           assets related to the Company's U.S. frozen bakery business.
    (ii)   During 2007, the Company recorded a net tax benefit of
           $9.9 million related to the enactment of lower future tax rates.
    (iii)  These are not recognized measures under Canadian GAAP. Management
           believes that this is the most appropriate basis on which to
           evaluate results, as restructuring and other related costs are not
           representative of continuing operations.
    (iv)   Does not add due to rounding.


    Business Segment Review
    -----------------------

    Following is a summary of Adjusted Operating Earnings by business segment:

    ($ millions)                   Fourth Quarter           Full Year
                               ---------------------- -----------------------
                                2007    2006  Change   2007    2006   Change
                                ----    ----  ------   ----    ----   ------
    Meat Products Group         42.4    37.9    12%    90.2    74.4     21%
    Agribusiness Group (i)      (9.1)   (9.0)   (1%)   (7.8)   (2.5)  (217%)
                               ---------------------- -----------------------
    Protein Group               33.3    28.9    15%    82.4    71.9     14%
    Bakery Products Group       24.6    23.3     5%   116.7   100.9     16%
                               ---------------------- -----------------------
                                57.9    52.2    11%   199.1   172.8     15%
                               ---------------------- -----------------------
                               ---------------------- -----------------------

    (i)    Agribusiness Group excludes the results of the animal nutrition
           business that are reported as discontinued operations.

    Meat Products Group (value-added processed packaged meats; chilled meal
    entrees and lunch kits; value-added pork, poultry and turkey products;
    and global meat sales.)

Meat Products Group sales for the fourth quarter declined 13% to $820
million compared to $942 million last year and for the year declined 8% to
$3.5 billion compared to $3.7 billion last year. This decrease was due
primarily to exit of certain global businesses and currency changes.

Adjusted Operating Earnings for the fourth quarter increased by 12% to
$42.4 million from $37.9 million last year, reflecting improved earnings from
the fresh pork business, driven by benefits related to the closure of the
Saskatoon and Winnipeg pork processing plants in the second and fourth
quarters of 2007 respectively, and completion of double-shifting front-end
processing at the Brandon processing plant, combined with stronger industry
pork processor margins. Further processed meat products benefited from
increased pricing. These positive factors outweighed the impact of currency
and lower poultry processor margins as increases in live bird costs exceeded
fresh poultry market price increases.

Adjusted Operating Earnings for the year increased by 21% to $90.2 million
from $74.4 million in 2006, mainly driven by increased returns in the fresh
pork and poultry businesses, benefiting from improved industry processor
margins on average through the year, compared to 2006. The positive effect of
these improvements were further reinforced by improved operating efficiencies
resulting from primary processing plant optimization mentioned above and the
closure of the Company’s poultry facility in Atlantic Canada, which offset the
impact of a strengthening Canadian dollar. While price increases implemented
by the further processed meat business managed to offset rising raw material
costs by the end of the year, the lag in the timing of pricing together with
an increased investment in product development and marketing resulted in lower
earnings compared to 2006. The Company has made significant investments to
drive expansion in the chilled meals category, and over the past year has
established market leadership in this higher growth market segment.

A cornerstone of the Company’s new protein strategy is to significantly
reduce the volume of fresh pork it processes to a level that supports internal
requirements for further processed products, consolidated in one scale plant
in Brandon, Manitoba. Supporting this strategy, the Company double shifted the
front-end processing at Brandon in early September, reaching its target of
75,000 hogs per week during the fourth quarter. In 2007, the Company closed
two pork processing plants in Saskatoon and Winnipeg, which processed a
combined total of approximately 1.7 million hogs per year. The Company will
invest further capital in its Brandon facility in 2008 to expand and double
shift the back end ‘cut’ operation and proceed with the divestiture of its
primary processing facility in Burlington, Ontario.

Agribusiness Group (swine production and animal by-products recycling)

Agribusiness Group sales for the fourth quarter decreased 7% to $60.5
million from $64.8 million last year, and sales for the year decreased 2% to
$241 million from $245 million. This decrease was primarily due to the
restructuring of the hog production operations.

Adjusted Operating Earnings for the fourth quarter were a loss of $9.1
million, consistent with the prior year. Significant increases in feed prices
and the continuing rise in the Canadian dollar, compounded by lower hog prices
had a negative impact on hog production margins. Increased earnings from
rendering operations, along with benefits from short-term risk management
programs helped offset these negative factors. Biodiesel production also
contributed to performance benefiting from capital upgrades undertaken in the
year that further enhanced product quality and consistency.

Adjusted Operating Earnings for the year were a loss of $7.8 million
compared to a loss of $2.5 million in 2006. As noted above, rising feed costs
and a strong Canadian dollar resulted in lower hog producer margins.
Productivity was also affected earlier in the year by an industry-wide
outbreak of circo virus. These impacts were somewhat mitigated by strong
markets for rendered products that tracked rising commodity grain prices.

In January 2008, the Company sold most of its Ontario hog production
operations and almost all of its hog production investments in Alberta. This,
combined with progress in restructuring its operations in Manitoba, represents
a significant milestone towards achieving the Company’s new integrated
business model. This materially completes the Company’s exit from Alberta and
Ontario hog production operations and the concentration of its production
assets in Manitoba. The balance of the hog inventory in Ontario and Alberta
will be marketed in the first quarter of 2008. As a result, after the first
quarter of 2008, the annualized number of finished pigs produced by the
Company is expected to reduce to approximately 750,000 hogs compared to the
1.3 million produced in 2007. At the end of 2007, the Company effectively
owned 20% of the hogs that it processed in its facilities.

In the first quarter of 2008, the Company completed the purchase of
Central By-Products, a rendering business located near London, Ontario. This
acquisition reflects the Company’s ongoing commitment to the rendering
business.

    Bakery Products Group (fresh, frozen and branded value-added bakery
    products, including frozen par-baked bakery products; and specialty pasta
    and sauces)

Bakery Product Group sales for the fourth quarter increased 11% to $393
million compared to $355 million last year. Sales for the year increased 13%
to $1.5 billion. Excluding acquisitions, sales increased by 3% in the fourth
quarter and 5% for the year, reflecting increased volumes in the U.K. and
price increases across all the bakery businesses.

Adjusted Operating Earnings in the fourth quarter increased 5% to $24.6
million compared to $23.3 million last year, primarily driven by increased
contributions from acquisitions in the U.K. and improved earnings in the
frozen bakery operations. Significantly higher wheat and dairy costs impacted
margins across all the bakery businesses, however the Company was able to
mitigate these rising input prices, inflationary increases in manufacturing
costs, and an industry-wide volume decline in the fresh bread category through
price increases and cost reduction initiatives. The Company completed a large
warehouse expansion in the quarter at its Roanoke, Virginia facility that has
optimized storage capacity and reduced third party storage costs and freight.

Since the beginning of 2008, wheat prices have continued to increase at a
significant rate. In order to offset these impacts, further price increases
during 2008 will be necessary. The timing of such price increases may not
match the increase in wheat prices and other inflationary increases, but over
the medium-term the Company expects to recover these increased costs through
increased prices and operating efficiencies.

Adjusted Operating Earnings for the year increased by 16% to $116.7
million compared to $100.9 million in 2006, benefiting from price increases
and contribution from acquisitions. In the U.K., the benefits of price
increases were not sufficient to offset the impact of higher input costs and
investments in promotion and advertising. However, these headwinds were offset
by the positive contribution of acquisitions and organic growth in bagel and
other specialty bakery categories. During the year, the Company acquired La
Fornaia Ltd., a specialty Italian baker and, responding to customer needs,
expanded capacity at its Rotherham bagel facility, positioning the business to
continue its growth in the specialty bakery and bagel markets. Through these
investments, the Company now operates one of the largest specialty bakeries in
the U.K. In the first quarter of 2008, the Company completed the purchase of
Aliments Martel, a Quebec-based manufacturer and distributor of sandwiches,
meals and sweet goods. The Company has growth plans in the sandwich business,
and this acquisition is a significant step in supporting this strategy. With
this acquisition, the Company becomes the national leader in the Canadian
pre-packaged sandwich market.

Sale of Animal Nutrition Business

———————————

On July 20, 2007, the Company completed the sale of its animal nutrition
business to Nutreco Holding BV for gross proceeds of $525 million. Including
the impact of a $20.7 million goodwill impairment charge relating to the
retained operations of the animal nutrition business and a $5.1 million tax
benefit recorded in earnings in the second quarter, the net after-tax gain on
the sale of the business was $204 million ($1.60 per share).

Earnings of the animal nutrition business prior to the sale have been
disclosed as discontinued operations. Earnings per share from discontinued
operations in the fourth quarter of 2007 were $0.01 compared to $0.05 last
year; and $1.81 for the year compared to $0.19 for the same period last year,
including the gain on the sale of the business.

Restructuring and Other Related Costs

————————————-

The Company recorded a restructuring charge of $71.9 million in the fourth
quarter and $122.3 million for the year. The charges in the quarter relate to
the impairment of hog production assets classified as held for sale in Alberta
and Ontario, as well as the write down of the remaining hog related assets in
the Agribusiness Group mostly related to those held in Manitoba. These charges
in the quarter have resulted in a revision of Management’s estimates of total
restructuring and other related costs for 2006 to 2009 which are now estimated
to be between $275 million and $325 million (of which the cash component is
$90 to $110 million). This increase in restructuring and other related costs
is primarily due to the impairment of hog production assets classified as held
for sale in Alberta and Ontario and the impairment of the remaining long-lived
hog production assets. The total amount of restructuring and other related
charges is partly dependent on whether certain facilities that are non-core to
the Company strategy will be sold or closed. These estimates include
restructuring and other related charges for projects that are anticipated to
occur before the end of 2009, for which the plans are both known to Management
and the amounts of restructuring and other related charges are reasonably
quantifiable. These estimates do not include all restructuring projects that
will occur during this time period and may change as the Company implements
its restructuring initiatives. As a result, actual restructuring and other
related costs over the next two years may differ materially from what is
expressed.

The Company had previously estimated the total restructuring and other
related costs to be between $165 million and $215 million (of which the cash
component was $50 to $75 million).

Forward-Looking Statements

————————–

This document contains, and the Company’s oral and written public
communications often contain, forward-looking statements that are based on
current expectations, estimates, forecasts and projections about the
industries in which the Company operates and beliefs and assumptions made by
the Management of the Company. Such statements include, but are not limited
to, statements with respect to our objectives and goals, as well as statements
with respect to our beliefs, plans, objectives, expectations, anticipations,
estimates and intentions. Words such as “expect,” “anticipate,” “intend,”
“attempt,” “may,” “will,” “plan,” “believe,” “seek,” “estimate,” and
variations of such words and similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of future
performance and involve assumptions and risks and uncertainties that are
difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed, implied or forecasted in such
forward-looking statements. The Company does not intend, and the Company
disclaims any obligation to update any forward-looking statements, whether
written or oral, or whether as a result of new information, future events or
otherwise except as required by law.

These forward-looking statements are based on a variety of factors and
assumptions including, but not limited to: the condition of the Canadian and
United States economies; the rate of appreciation of the Canadian dollar
versus the U.S. dollar and Japanese yen; the availability and saleability of
prices of livestock, raw materials, energy and supplies; product pricing; the
competitive environment and related market conditions; improvement of
operating efficiencies; continued access to capital; the cost of compliance
with environmental and health standards; adverse results from ongoing
litigation; no expected actions of domestic and foreign governments and the
general assumption that none of the risks identified under “Risk Factors” will
materialize. These assumptions have been derived from information currently
available to the Company including information obtained by the Company from
third-party industry analysts.

Actual results may differ materially from those predicted by such
forward-looking statements. While the Company does not know what impact any of
these differences may have on its business, results of operations, financial
condition and the market price of its securities may be materially adversely
affected. Factors that could cause actual results or outcomes to differ
materially from the results expressed or implied by forward-looking statements
are discussed more fully in the Company’s Management Discussion and Analysis
which will be available on SEDAR at www.sedar.com.

Other Matters

————-

On February 21, 2008, Maple Leaf Foods Inc. declared a dividend of $0.04
per share payable on March 31, 2008 to shareholders of record on March 10,
2008. Unless indicated otherwise in writing at or before the time the dividend
is paid, each dividend paid by the corporation in 2007 or a subsequent year is
an eligible dividend for the purposes of the “Enhanced Dividend Tax Credit
System.”

Maple Leaf Foods Inc. is a leading food processing company, headquartered
in Toronto, Canada. The Company employs approximately 23,000 people at its
operations across Canada and in the United States, the United Kingdom and
Asia. The Company had sales of $5.2 billion in 2007.

An investor presentation related to the Company’s fourth quarter financial
results is available at www.mapleleaf.com and can be found under Investor
Relations on the Quarterly Results page. A conference call will be held at
2:30 p.m. EDT on February 21, 2008 to review Maple Leaf Foods’ fourth quarter
financial results. To participate in the call, please dial 416-641-6113 or
866-226-1792. For those unable to participate, playback will be made available
an hour after the event at 416-695-5800 / 800-408-3053 (Passcode 3250810
followed by the number sign).

A webcast presentation of the fourth quarter financial results will also
be available at http://investor.mapleleaf.ca via a link
http://events.startcast.com/events/91/B0024.

Consolidated Interim Financial Statements
(Expressed in Canadian dollars)

MAPLE LEAF FOODS INC.
Three and twelve months ended December 31, 2007 and 2006

MAPLE LEAF FOODS INC.
Consolidated Balance Sheets
(In thousands of Canadian dollars)

————————————————————————-
As at December 31,
2007 2006
————————————————————————-

ASSETS

Current assets
Cash and cash equivalents $ 28,222 $ 64,494
Accounts receivable 202,285 201,743
Inventories 351,064 376,216
Future tax asset – current 25,409 2,128
Prepaid expenses and other assets 16,529 11,158
Assets held for sale 10,092 311,172
———————————————————————-
$ 633,601 $ 966,911

Investments in associated companies 1,207 15,499

Property and equipment 1,126,727 1,080,293

Other long-term assets 303,360 279,001

Future tax asset – non-current 22,837 23,464

Goodwill 817,477 829,641

Other intangibles 92,635 80,917

————————————————————————-
$ 2,997,844 $ 3,275,726
————————————————————————-
————————————————————————-

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities
Bank indebtedness $ 9,845 $ 9,130
Accounts payable and accrued charges 550,528 594,685
Income and other taxes payable 12,881 18,056
Current portion of long-term debt 17,945 81,954
Liabilities related to assets held for sale – 74,474
———————————————————————–
$ 591,199 $ 778,299

Long-term debt 855,281 1,185,970

Future tax liability – non-current 61,935 29,867

Other long-term liabilities 248,448 196,911

Minority interest 79,554 90,237

Shareholders’ equity 1,161,427 994,442

————————————————————————-
$ 2,997,844 $ 3,275,726
————————————————————————-
————————————————————————-

MAPLE LEAF FOODS INC.
Consolidated Statements of Earnings
(In thousands of Canadian dollars, except share amounts)

————————————————————————-
Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006
————————————————————————-
(Unaudited) (Unaudited)

Sales $ 1,273,633 $ 1,361,361 $ 5,209,640 $ 5,324,756

————————————————————————-
————————————————————————-

Earnings from
continuing operations
before restructuring
and other related
costs $ 57,941 $ 52,241 $ 199,056 $ 172,802
Restructuring and
other related costs (71,907) (43,662) (122,304) (63,230)
————————————————————————-

Earnings (loss) from
continuing
operations (13,966) 8,579 76,752 109,572
Other income 2,244 732 4,578 2,647
————————————————————————-

Earnings (loss) from
continuing operations
before interest and
income taxes (11,722) 9,311 81,330 112,219
Interest expense 21,093 22,611 94,122 90,204
————————————————————————-

Earnings (loss) from
continuing operations
before income taxes (32,815) (13,300) (12,792) 22,015
Income taxes (11,772) 2,763 801 35,799
————————————————————————-

Earnings (loss) from
continuing operations
before minority
interest (21,043) (16,063) (13,593) (13,784)
Minority interest 2,695 1,816 9,639 6,208
————————————————————————-

Net earnings (loss)
from continuing
operations (23,738) (17,879) (23,232) (19,992)
Net earnings from
discontinued
operations – net
of income tax 1,666 6,255 230,376 24,517

————————————————————————-
Net earnings (loss)
for the period $ (22,072) $ (11,624) $ 207,144 $ 4,525
————————————————————————-
————————————————————————-

Basic earnings (loss)
per share
From continuing
operations $ (0.19) $ (0.14) $ (0.18) $ (0.16)
From discontinued
operations 0.01 0.05 1.81 0.19
————————————————————————-
$ (0.17) $ (0.09) $ 1.63 $ 0.04
————————————————————————-
————————————————————————-

Diluted earnings (loss) per
share
From continuing
operations $ (0.19) $ (0.14) $ (0.18) $ (0.16)
From discontinued
operations 0.01 0.05 1.77 0.19
————————————————————————-
$ (0.17) $ (0.09) $ 1.59 $ 0.03
————————————————————————-
————————————————————————-

Weighted average
number of shares
(millions) 127.0 127.0 127.3 127.5

————————————————————————-
————————————————————————-

MAPLE LEAF FOODS INC.
Consolidated Statements of Retained Earnings
(In thousands of Canadian dollars)
————————————————————————-
Twelve months ended December 31,
2007 2006
————————————————————————-

Retained earnings, beginning of year $ 204,415 $ 231,807
Net earnings for the year 207,144 4,525
Dividends declared $0.16 per share;
(2006: $0.16 per share) (20,775) (20,387)
Premium on repurchase of share capital – (11,530)

————————————————————————-
Retained earnings, end of year $ 390,784 $ 204,415
————————————————————————-
————————————————————————-

Consolidated Statements of Comprehensive Income (Loss)
(In thousands of Canadian dollars)

————————————————————————-
Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006
————————————————————————-
(Unaudited) (Unaudited)

Net earnings (loss)
for the period $ (22,072) $ (11,624) $ 207,144 $ 4,525

Other comprehensive
income (loss)

Change in
accumulated foreign
currency
translation
adjustment (2,314) 6,131 (16,036) 8,749
Change in net
unrealized
derivative loss on
cash flow hedges 4,347 – 22,620 –
————————————————————————-
$ 2,033 $ 6,131 $ 6,584 $ 8,749
————————————————————————-
Comprehensive income
(loss) $ (20,039) $ (5,493) $ 213,728 $ 13,274
————————————————————————-
————————————————————————-

MAPLE LEAF FOODS INC.
Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)
————————————————————————-
Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006
————————————————————————-
CASH PROVIDED BY
(USED) IN (Unaudited) (Unaudited)

Operating activities
Net earnings (loss) $ (23,738) $ (17,880) $ (23,232) $ (19,992)
Add (deduct) items
not affecting cash:
Depreciation and
amortization 35,477 33,194 141,181 130,736
Stock-based
compensation 4,866 3,367 15,340 10,384
Minority interest 2,695 1,816 9,639 6,208
Future income
taxes (35,274) (15,774) (46,290) 75
Gain on sale of
property and
equipment (2,086) (1,781) (2,341) (2,051)
Loss (gain) on
sale of
investments (14) 57 (176) 202
Change in other
long-term
receivables (2,071) 2,460 (1,957) 4,546
Increase in net
pension asset (11,308) (20,925) (48,034) (55,322)
Asset impairments
and change in
restructuring
provision 69,917 6,810 101,348 20,621
Other 16,503 4,604 7,999 7,185
Change in non-cash
operating working
capital 44,176 48,365 (30,643) 4,827
————————————————————————-
Cash provided by
operating
activities of
continuing
operations $ 99,143 $ 44,313 $ 122,834 $ 107,419
Cash provided by
(used in) operating
activities of
discontinued
operations – 14,017 (17,086) 24,592
————————————————————————-
$ 99,143 $ 58,330 $ 105,748 $ 132,011

Financing activities
Dividends paid (5,384) (5,081) (20,775) (20,387)
Dividends paid to
minority interest (183) (191) (801) (1,602)
Net increase
(decrease) in
long-term debt (75,935) 85,836 (335,474) 109,680
Increase in share
capital 600 1,454 20,944 15,556
Shares repurchased
for cancellation – – – (23,056)
Purchase of
treasury stock (25,362) – (30,054) –
Other 909 – 8,200 2,357
————————————————————————-
Cash provided by
(used in) financing
activities of
continuing
operations $ (105,355) $ 82,018 $ (357,960) $ 82,548
Cash provided by
(used in) financing
activities of
discontinued
operations – 1 (389) 403
————————————————————————-
$ (105,355) $ 82,019 $ (358,349) $ 82,951

Investing activities
Additions to
property and
equipment (66,424) (60,060) (236,660) (155,935)
Proceeds from sale
of property and
equipment 6,668 2,597 9,788 7,605
Acquisition of
business – net of
cash
Acquired (390) (70,663) (65,013) (80,986)
Proceeds on sale
of investments – – 3,713 –
Proceeds on
disposal of
business – – 5,470 –
Purchase of Canada
Bread shares – – (6,521) –
Other 138 5,125 1,521 1,956
————————————————————————-
Cash provided by
(used in) investing
activities of
continuing
operations $ (60,008) $ (123,001) $ (287,702) $ (227,360)
Cash provided by
(used in) investing
activities of
discontinued
operations – (4,591) 503,316 (12,740)
————————————————————————-
$ (60,008) $ (127,592) $ 215,614 $ (240,100)
Increase (decrease)
in cash and cash
equivalents (66,220) 12,757 (36,987) (25,138)
Cash and cash equivalents,
beginning of period 84,597 42,607 55,364 80,502
————————————————————————-
Cash and cash equivalents,
end of period $ 18,377 $ 55,364 $ 18,377 $ 55,364
————————————————————————-
————————————————————————-

MAPLE LEAF FOODS INC.
Segmented Financial Information
(In thousands of Canadian dollars)
————————————————————————-
Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006
————————————————————————-
(Unaudited) (Unaudited)

Sales
Meat Products Group $ 820,402 $ 941,557 $ 3,458,055 $ 3,745,654
Agribusiness Group 60,449 64,813 240,956 245,438
Bakery Products
Group 392,782 354,991 1,510,629 1,333,664
————————————————————————-
$ 1,273,633 $ 1,361,361 $ 5,209,640 $ 5,324,756
————————————————————————-
————————————————————————-

Earnings from
operations, before
restructuring and
other related costs
Meat Products Group $ 42,399 $ 37,855 $ 90,193 $ 74,400
Agribusiness Group (9,064) (8,950) (7,841) (2,475)
Bakery Products
Group 24,606 23,336 116,704 100,877
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$ 57,941 $ 52,241 $ 199,056 $ 172,802
————————————————————————-
————————————————————————-

Additions to property
and equipment
Meat Products Group $ 39,074 $ 35,869 $ 132,220 $ 91,271
Agribusiness Group 4,652 7,584 15,068 15,210
Bakery Products
Group 22,698 16,607 89,372 49,454
————————————————————————-
$ 66,424 $ 60,060 $ 236,660 $ 155,935
————————————————————————-
————————————————————————-

Depreciation and
amortization
Meat Products Group $ 16,595 $ 16,657 $ 68,806 $ 66,987
Agribusiness Group 5,552 4,438 20,536 17,323
Bakery Products
Group 13,330 12,099 51,839 46,426
————————————————————————-
$ 35,477 $ 33,194 $ 141,181 $ 130,736
————————————————————————-
————————————————————————-

————————————————————————-
As at December 31,
2007 2006
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Total assets
Meat Products Group $ 1,560,244 $ 1,551,502
Agribusiness Group 302,999 702,534
Bakery Products Group 823,137 810,940
Non-allocated assets 311,464 210,750
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$ 2,997,844 $ 3,275,726
————————————————————————-
————————————————————————-

Goodwill
Meat Products Group $ 450,929 $ 457,039
Agribusiness Group 2,058 19,885
Bakery Products Group 364,490 352,717
————————————————————————-
$ 817,477 $ 829,641
————————————————————————-
————————————————————————-

SOURCE Maple Leaf Foods Inc.