Lydian International : Investor Presentation

Investor Presentation

September 15, 2020

Franchise Group Proprietary Information

Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of the securities laws (including the Private Securities Litigation Reform Act of 1995). Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They may include words or variations of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "view," "opportunity," "potential," "should," "could," or "may" or other similar words or expressions that convey projected future events or outcomes. Forward-looking statements provide the Company's or its management's current expectations, predictions, opinions or judgments of future conditions, events or results. All statements that address operating performance, events or developments that the Company expects or anticipates will occur in the future are forward-looking statements. They may include estimates or projections of revenues, income, earnings per share, capital expenditures, dividends, liquidity, capital structure, synergies, EBITDA or other financial items, descriptions of the Company's or management's plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. Such forward-looking statements are based on various assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. All forward-looking statements speak only as of the date they are made and although the Company believes that its beliefs, assumptions and expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance or guarantee that actual results, performance or achievements of the Company will not differ materially from any projected future results, performance or achievements expressed or implied by such forward-looking statements. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors (including, but not limited to a variety of economic, competitive and regulatory factors), many of which are beyond the control of the Company and its management team. Furthermore, the Company disclaims any obligation to publicly update, clarify or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or otherwise, except as required by law. We refer you to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's Transition Report on Form 10-K/T for the transition period ended December 28, 2019, and comparable sections of the Company's Quarterly Reports on Form 10-Q and other filings, as well as additional factors that have been or may be described from time to time in other filings with the Securities and Exchange Commission (the "SEC") and are available on the SEC's website at www.sec.gov. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties. All of the forward- looking statements made in this document are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its business or operations. You are cautioned not to rely on the forward-looking statements contained in this presentation.

Franchise Group Proprietary Information

2

Non-GAAP Financial Measures and Key Metrics and Additional Information

Non-GAAP Financial Measures and Key Metrics

This presentation includes Proforma Adjusted EBITDA and non-GAAP earnings per share. Proforma Adjusted EBITDA represents net income before interest, income taxes, depreciation and amortization adjusted for certain non-core or non-operational items related to restructuring and related charges, early extinguishment of debt costs, litigation settlement costs, transaction-related costs, and fair value acquisition accounting adjustments related to inventory. Proforma Adjusted EBITDA is a financial measure not prepared in accordance with generally accepted accounting principles ("GAAP"). Management believes that Proforma Adjusted EBITDA is useful to investors as a supplemental measure in evaluating the aggregate performance of our operating businesses and in comparing our results from period to period because they exclude items that management does not believe are reflective of the Company's core or ongoing operating results. Proforma Adjusted EBITDA is the measure that is used by the Company's management to evaluate performance and make resource allocation decisions each period. Proforma Adjusted EBITDA is also the primary operating metric used in the determination of executive management's compensation. In addition, a measure similar to Proforma Adjusted EBITDA is used in the Company's credit facilities. Proforma Adjusted EBITDA should not be considered in isolation or as a substitute for net income or other income statement information prepared in accordance with GAAP and our presentation of Proforma Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

Franchise Group Proprietary Information

3

Investment Highlights

Leading platform of franchised or franchisable concepts

Value-enhancing capital allocation strategy focused on attractive and growing dividend for shareholders

Resilient throughout an economic cycle and COVID-19 pandemic

Disciplined, value-based acquisition strategy targeting asset-light businesses with superior cash flow

Synergistic platform drives significant revenue and cost synergies across portfolio concepts

Refranchising strategy creates significant cash inflows to de-lever and acquire additional brands

Experienced management team with strong shareholder alignment

Franchise Group Proprietary Information

4