Sucro Limited · TSXV:SUGR
Sucro — Investor Presentation (November 2024)
33 slides from Sucro's investor presentation, November 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024 TSXV: SUGR | OTCQB: SUGRF
Slide 2: Disclaimers
DISCLAIMERS General Matters This Presenta tion should be read in conjunction with the Sucro Limited’s audited annual consolida ted financial state ments for the year ended December 31, 2023 and accompanying notes, and the rela ted MD&A and una udited condensed inte rim consolida ted financial state
Slide 3: This isn't your grandfather's sugar refiner
THIS ISN’T YOUR GRANDFATHER’S SUGAR REFINER “Our mission is to be the leading alternative integrated sugar supplier in North America, leveraging our processing footprint and strategic partnerships to fully service sugar users.“ Jonathan Taylor, Sucro’s Founder and CEO Canada, 1854 TSXV: SUGR| OTCQB:
Slide 4: Proven team & board with a strategic focus on growth & profitability
PROVEN TEAM & BOARD WITH A STRATEGIC FOCUS ON GROWTH & PROFITABILITY Jonathan Taylor Stefano D’Aniello Matt Dyer Eli Cohen Oliver Hire Founder & CEO CFO Managing Director VP CAN Sales & Operations VP, Head of Trading Director & Head of US Sales • 15+ years of sugar trading • 15+ years of financial •
Slide 5: Innovative North American refiner building modern, capital-efficient refineries
Innovative North American refiner building modern, capital-efficient refineries, with a highly visible strategy for growth, in a highly profitable market TSXV: SUGR | OTCQB: SUGRF 5
Slide 6: Operations & performance at a glance
OPERATIONS & PERFORMANCE AT A GLANCE STRONG PRODUCTION AND 1 ADJUSTED EBITDA GROWTH 160,300 MT 5 221 2023 Refining Volume Refining & Employees 180 $35 Processing Facilities 160 $30 140 $25 Long-term goal of one million metric 120 tons of refining production by 2029 100 $20 80 $15 60 Adjusted EBITDA1
Slide 7: Sucro share information
SUCRO (TSXV: SUGR, OTCQB: SUGRF) $33 M 53% C$210 M Share Information Adj. EBITDA1 Adj. EBITDA CAGR1,2 Market Cap3 Canada: TSX Venture SUGR United States: OTCQB SUGRF C$8.93 $8.76 M 0.9 Shares outstanding6 23,543,085 Share Price Free Cash Flow4 Price to Management Ownership 60.6% (Closing share price
Slide 8: Overview of Beta San Miguel (BSM)
OVERVIEW OF BETA SAN MIGUEL (BSM) Beta San Miguel is one of the largest cane sugar mills in Mexico, and has recently purchased 15.9% of Sucro Shares, with option to purchase a controlling interest2 Company Overview Key Metrics ~1.1m tons ~20% ~77k tons • Founded in 1987 in Mexico and privately owned
Slide 9: Transaction provides a wide range of strategic and financial benefits to Sucro
TRANSACTION PROVIDES A WIDE RANGE OF STRATEGIC AND FINANCIAL OPPORTUNITIES / BENEFITS TO SUCRO 1 2 3 Raw Material Risk Management Sales & Distribution Cost & Operational Efficiency • Provides guaranteed access to raw and • New distribution opportunities should lead to • Improves price hedging on sug
Slide 10: Reliable demand growth for sugar
RELIABLE DEMAND GROWTH FOR SUGAR ~12.9 M short tons1 consumed annually US DELIVERIES OF REFINED SUGAR3 Consistent, predictable growth requires new refining capacity Deliveries (000s of Sho rt To ns) US Population (millions) • Underserved market, current production doesn’t meet domestic demand 14,000
Slide 11: Domestic grower production is constrained
DOMESTIC GROWER PRODUCTION IS CONSTRAINED Demand growth across entire N.A. sugar industry is not being met by domestic production • Domestic U.S. Cane and Beet production has been stalled for years • Mexican production appears to be in systemic decline over past 10+ years • Sucro’s Refining and Whol
Slide 12: Unique & competitively advantaged trade flow
UNIQUE & COMPETITIVELY ADVANTAGED TRADE FLOW • Customers value Sucro’s unique capabilities Canada Refined trade flows United New / Upcoming Refineries • Unique and differentiated • Builds relationships States Raw trade flow Canadian Refinery (Hamilton) trade flow (even before Mexico Raw & refined tr
Slide 13: Sucro's unique sugar refining model
SUCRO’S UNIQUE SUGAR REFINING MODEL Original Hamilton Refinery ✓ First refinery built in Hamilton, Ontario (2017-2019) was self-funded ✓ Innovative and unique micro scale and concept ✓ Less refining, higher colour sugar ✓ Only refiner in North America meeting customer demand for flexibility in granu
Slide 14: Building value along our end-to-end sugar supply chain
BUILDING VALUE ALONG OUR END-TO-END SUGAR SUPPLY CHAIN REFINING: INBOUND LOGISTICS OUTBOUND LOGISTICS SOURCING & WAREHOUSING & WAREHOUSING SALES Diversified supplier Active supply chain We build low-cost facilities with Optimized locations Providing innovative base of raw sugar management & cost con
Slide 15: In only 10+ years…
IN ONLY 10+ YEARS… WE’VE ORGANICALLY BUILT A BUILT & EXPANDED EXPANDED OUR PRODUCT VALUABLE END-TO-END SUGAR A NETWORK OF LOW CAP-EX LINE & TRADE CHANNELS SUPPLY CHAIN REFINERIES Light A market leader Footprint in commercial ~500,000 MT in North America integration across all 3 Total Volume1 NAFTA c
Slide 16: Strategically located assets focused on North America
STRATEGICALLY LOCATED ASSETS FOCUSED ON NORTH AMERICA Refining & Processing Facilities Regional Offices • Located in high population Operational facility density, high volume, Hamilton, Ontario underserved markets Under construction New Hamilton Facility • Port and rail access Operational facility L
Slide 17: Our refineries are driving value creation
OUR REFINERIES ARE DRIVING VALUE CREATION Our Refineries Volumes and Adjusted Gross Profit per MT Delivered 2 Hamilton, Ontario Granular refinery 250 $160 230 Regions Served: Ontario, Canada $143.49 $140 200 $113.38 210 $120 $83.34 $100 150 160 $80 100 $60 Lackawanna, New York 84 $40 Granular refine
Slide 18: Concurrent expansion projects to serve the North American market
3 CONCURRENT EXPANSION PROJECTS TO SERVE THE LARGE AND ATTRACTIVE NORTH AMERICAN MARKET UNDER EXPANSION UNDER CONSTRUCTION Chicago, Illinois Granular refinery - 2026 Projected Expansion: up to 250K MT Budgeted Cost: Phase 1 - US$20 M Lackawanna, New York New Hamilton Facility Granular refinery Granu
Slide 19: Future volume growth
FUTURE VOLUME GROWTH Refinery Volumes1 1,000 1000 (000 metric tons) 900 950 825 800 700 675 775 600 500 625 500 400 325 450 SUCRO’S GOAL: 300 230 200 100 160 210 275 ~1 million MT 0 of refining volume by 2029 2023 2024e 2025e 2026e 2027e 2028e 2029e Hamilton - Current Hamilton - New Lackawanna Chica
Slide 20: Serving our blue-chip customers
SERVING OUR BLUE-CHIP CUSTOMERS Canada CANADA Recognized global brands including Low degree of customer 16% 16% USA USA 10 of the concentration, with no single customer representing 55% 54% MEXICO Mexico 15 largest >6.3% 16% 22% and most recognizable sugar-using food and beverage companies of revenu
Slide 21: Delivering the products customers want, how they want them
DELIVERING THE PRODUCTS CUSTOMERS WANT, HOW THEY WANT THEM Flexible Value-added Growing with Solutions Processing our Customers Higher colour sugar and Additional capacity to meet the Selling additional capacity to our reduced sugar costs for customers growing complexity and needs of existing commer
Slide 22: Our team is finding new ways to capture value
“Our team is finding new ways to capture value throughout the full sugar supply chain, with an emphasis on cost-efficient refineries that address the evolving needs of our customers. ” Jonathan Taylor, Sucro’s Founder and CEO TSXV: SUGR | OTCQB: SUGRF 22
Slide 23: Sucro's value proposition
SUCRO’S VALUE PROPOSITION Attractive industry Large, growing, predictable and profitable Strong growth performance Effective use of currently capital available at a resources Positive Impact of BSM discount to (build vs buy) book value strategic investment • Upside opportunities to both operating ea
Slide 24: Thank you
THANK YOU Don Hill – Chairman, Sucro P: (305) 901-5222 E: IR@Sucro.us TSXV: SUGR| OTCQB: SUGRF 24
Slide 25: Appendices
APPENDICES TSXV: SUGR | OTCQB: SUGRF 25
Slide 26: Current Hamilton refinery
CURRENT HAMILTON REFINERY Sucro management was confident they could build a low- Location Hamilton, Ontario, Canada cost refinery, and with strong support from customers they commissioned the company’s first liquid sugar 2014 – liquid sugar production Year Operational production facility in Hamilton
Slide 27: Lackawanna refinery
LACKAWANNA REFINERY Building on the success of its Hamilton operations and its ✓ Located in an underserved market strong customer relationships, Sucro management next pursued expansion into the US market. In 2019, The ✓ Logistics synergies with nearby Canadian facility Company identified and secured
Slide 28: New Hamilton refinery
NEW HAMILTON REFINERY Leveraging the success of Lackawanna and the original Location Hamilton, Ontario, Canada Hamilton refinery, in late 2022 Sucro announced plans to construct a new, larger refinery in Hamilton. 2024 – Phase I Construction start Construction 2025 – Phase 1 Construction & equipment
Slide 29: Chicago refinery
CHICAGO REFINERY Sucro’s Chicago operations represent its only acquisition Location University Park, Illinois, United States of operational processing capacity. Sucro initially acquired the Chicago assets (referred to as “University Park”) in Construction 2024 – Start of construction Timeline 2026 –
Slide 30: Capital Resources
Capital Resources Project Purpose/Source Principal Amount (‘000s) Amortization Interest Rate Status Hamilton refinery Landlord loan for refinery building CAD $15,400 Interest-only during construction; Canada Prime Rate plus 1.5% during Completed improvements, silo foundations, and 15 years thereafte
Slide 31: Summary of Quarterly Results
Summary of Quarterly Results Unaudited Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Sugar Deliveries (Metric Tons) 131,086 182,865 95,883 122,243 115,606 143,046 81,947 103,436 Total Revenue $ 137,710 $ 184,325 $ 114,560 $ 139,041 $ 118,147 $ 125,086 $ 94,455 $ 84,003 Adjusted Gro
Slide 32: Credit Facilities and Debt Management
Credit Facilities and Debt Management June 30, 2024 December 31, 2023 Loans and borrowings $ 251,365 $ 266,756 Less: Net collateral value (219,608) (204,856) Other cash (5,194) (5,919) Adjusted net debt 26,563 55,981 Lease liabilities 12,686 12,495 Due to related parties 1,112 5,054 Shareholders' eq
Slide 33: Summary of Mexican sugar production
SUMMARY OF MEXICAN SUGAR PRODUCTION (Thousands of metric tons) Companies No. of Mills ’19/’20 ’20/’21 ’21/’22 ’22/’23 ’23/’24 BSM 11 1,081 1,241 1,292 1,059 939 Zucarmex 6 942 1,023 1,129 974 1,049 Santos 5 342 494 543 422 477 GAM 4 447 385 434 386 235 Porres 4 381 387 408 368 352 PIASA 3 485 516 61