High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Shareholder Meeting (May 2017)
29 slides from High Liner Foods's shareholder meeting presentation, May 10, 2017
Slide 1: 2017 Annual and Special General Meeting of Shareholders
2017 ANNUAL AND SPECIAL GENERAL MEETING OF SHAREHOLDERS MAY 10, 2017 1
Slide 2: Tim Rorabeck, EVP Corporate Affairs & General Counsel
TIM RORABECK EXECUTIVE VICE PRESIDENT, CORPORATE AFFAIRS & GENERAL COUNSEL 2
Slide 3: Disclaimer
DISCLAIMER CERTAIN STATEMENTS MADE IN THIS PRESENTATION ARE FORWARD-LOOKING AND ARE SUBJECT TO IMPORTANT RISKS, UNCERTAINTIES AND ASSUMPTIONS CONCERNING FUTURE CONDITIONS THAT MAY ULTIMATELY PROVE TO BE INACCURATE AND MAY DIFFER MATERIALLY FROM ACTUAL FUTURE EVENTS OR RESULTS. ACTUAL RESULTS OR EVEN
Slide 4: Presentation Notes
PRESENTATION NOTES PRESENTATION CURRENCY • High Liner Foods (“the Company”) reports its financial statements in USD, however its common shares trade on the TSX and are quoted in CAD and therefore references in this presentation to share price, dividends and market capitalization are in CAD. NON-IFRS
Slide 5: Henry Demone, Chairman of the Board
HENRY DEMONE CHAIRMAN OF THE BOARD 5
Slide 6: Keith Decker, President & CEO
KEITH DECKER PRESIDENT & CHIEF EXECUTIVE OFFICER 6
Slide 7: Great Tasting Seafood for a Better Life
GREAT TASTING SEAFOOD FORA BETTER LIFE HIGH LINER FOODS 7
Slide 8: Great Tasting Seafood for a Better Life
TASTING SEAFOOD FORA BETTER LIFE With the customer at the center of all we do, we are ona mission to drive seafood consumption by providing innovative solutions to a world looking for healthy, easy to prepare, delicious seafood options. Ee HIGH LINER FOODS 8
Slide 9: Challenge of Organic Growth
CHALLENGE OF ORGANIC GROWTH LOWER DEMAND FOR TRADITIONAL BREADED AND BATTERED PRODUCTS 56.3% 54.3% 2015 2016 Annual sales volume attributable to traditional breaded and battered products 9
Slide 10: Innovation
INNOVATION CORE OFFERINGS • Innovation • Improvement • Changing perceptions NEW PRODUCTS • Aligned with customer trends • Expand and diversify our portfolio 10
Slide 11: Innovation Engineering
hee SEF INNOVATION ENGINEERING Align our innovation strategy across all departments so that it becomes an ingrained part of our culture.
Slide 12: Commercial Excellence
COMMERCIAL EXCELLENCE • Working more closely with customers • Gaining more insight • Chef demonstrations • ERP system upgrade • Streamlining work practices 12
Slide 13: Sustainability
SUSTAINABILITY www.highlinerfoods.com 13
Slide 14: Paul Jewer, EVP & Chief Financial Officer
PAUL JEWER EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER
Slide 15: Fiscal 2016 Financial Review: Sales History
FISCAL 2016 FINANCIAL REVIEW 10 Year Sales History 1,200 1,000 $1,001.5 $956.0 800 Millions 600 400 284.4 277.3 200 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* Sales revenue (USD) Sales pounds * New Bedford scallop business sold September 7, 2016. 15
Slide 16: Fiscal 2016 Financial Review: EBITDA History
FISCAL 2016 FINANCIAL REVIEW 10 Year EBITDA History $100 12.0% $90 $82.4 $78.2 10.0% $80 $70 8.6% 8.0% As a % of Sales 7.8% USD Millions $60 $50 6.0% $40 4.0% $30 $20 2.0% $10 $- 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Standard EBITDA Adjusted EBITDA Adjusted EBITDA as a Percentage of
Slide 17: Diluted EPS and ROE History
FISCAL 2016 FINANCIAL REVIEW Diluted EPS and ROE History $1.75 30% $1.50 25% Diluted Earnings Per Share $1.31 $1.25 $1.14 20% Return on Equity $1.00 17.7% 17.2% 15% $0.75 10% $0.50 5% $0.25 $0.00 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Diluted EPS Adjusted Diluted EPS Return on Equity D
Slide 18: Debt Leverage Ratio
DEBT LEVERAGE RATIO Net Interest-Bearing Debt to Adjusted EBITDA Ratio $61M Reduction in Net Interest-Bearing Debt in 2016 5.0x 4.4x 4.4x 4.0x 4.0x 4.0x 3.7x 3.2x 3.1x 3.0x 3.0x 2.0x 1.0x 0.0x Dec 31/11 Sep 28/13 Sep 28/14 Jan 3/15 Jan 2/16 Dec 31/16 Apr 1/17 Target Pro forma Pre-American Pre-Atlant
Slide 19: Dividend History
FISCAL 2016 FINANCIAL REVIEW Dividend History $0.60 $0.560 $0.55 $0.520 Annual Dividend Paid per Share ($CAD) $0.50 14-year CAGR: 25% $0.45 $0.465 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* * Annual dividends to b
Slide 20: Financial Overview – Q1 2017
FINANCIAL OVERVIEW – Q1 2017 20
Slide 21: Financial Overview – Q1 2017: Sales
FINANCIAL OVERVIEW – Q1 2017 Sales 350 $291.4 300 $291.4 $275.7 $275.7 250 200 Millions 150 100 88.2 83.2 50 0 2016 2017 Sales revenue (USD) Sales pounds 21
Slide 22: Financial Overview – Q1 2017: EBITDA
FINANCIAL OVERVIEW – Q1 2017 EBITDA (USD Millions) $35 $30 $30.3 $25 $22.3 $20 $15 10.4% $10 8.1% $5 $0 2016 2017 Standardized EBITDA Adjusted EBITDA Adjusted EBITDA as a % of sales 22
Slide 23: Keith Decker, President & CEO
KEITH DECKER PRESIDENT & CHIEF EXECUTIVE OFFICER 23
Slide 24: High Liner Foods
_7- HIGH LINER FOODS
Slide 25: 25
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Slide 26: D LOINS,
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Slide 27: High Liner Foods
HIGH LINERFOODS
Slide 28: Henry Demone, Chairman of the Board
HENRY DEMONE CHAIRMAN OF THE BOARD 28
Slide 29: High Liner Foods
AA HIGH LINER FOODS