Hostess SPAC Presentation Deck

PAGE 13 SUSTAINABILITY OF MARGINS Driver Pricing Manufacturing SG&A and Distribution ▪ No material change in retail pricing model relative to legacy business ▪ Hostess is the leading brand in the premium segment ▪ As a category leader, retailers are supportive of our price structure since it generates a higher penny profit and profit margin for them relative to other brands ■ ~$150 million invested to create state-of-the-art manufacturing capabilities ▪ Hostess has a 3 bakery model that concentrates production of items to individual production lines Hostess has significant future cost savings potential and cost avoidance opportunities as we grow: ~$25m of annual manufacturing costs are fixed overhead that can be leveraged Less than 80% capacity utilization today Significant automation opportunities available ■ ■ ■ Commentary ■ ■ ▪ SG&A functions fully built out with no legacy costs, pension obligations, etc. ▪ ~40% of SG&A is fixed (e.g., corporate) that can scale with incremental sales Third party warehouse and common carrier transportation provides scale and efficiency Strong margin profile driven by: (i) the health of the SBG category combined with (ii) Hostess' leading brand position in the premium segment and (iii) a highly efficient operating model that could only be implemented through the unique circumstances around the relaunch Hostess

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