Goodfellow Inc. · TSX:GDL
Goodfellow — Shareholder Meeting (May 2023)
30 slides from Goodfellow's shareholder meeting presentation, May 17, 2023
Slide 1: Annual Meeting of Shareholders
May 17, 2023 ANNUAL MEETING OF SHAREHOLDERS
Slide 2: Welcome Message
WELCOME MESSAGE
Slide 3: Directors and Officers
Directors and Officers Charles Brisebois – CFO and Secretary Alain Côté – Director and Chair of the Audit Committee David Goodfellow – Director Douglas Goodfellow - Director Patrick Goodfellow – President and CEO Robert Hall – Chair of the Board James Hewitt – Director Stephen Jarislowsky – Director
Slide 4: Meeting
GOODFELLOW 5 cal
Slide 5: Agenda
ANNUAL MEETING OF SHAREHOLDERS AGENDA • Opening of the Meeting • Approval of Minutes of Previous Annual Meeting of Shareholders • Reception of Financial Statements and Independent Auditor’s Report • Election of Directors • Appointment of Auditors • Management Presentation • Question Period
Slide 6: Forward-Looking Financial Information
May 17, 2023 ANNUAL MEETING OF SHAREHOLDERS Forward-Looking Financial Information This presentation contains forward-looking statements on the objectives, strategies, priorities, plans, financial position, operating results, trends and activities of Goodfellow Inc. and its markets and industries. Th
Slide 7: Election of Directors
May 17, 2023 ELECTION OF DIRECTORS Re-election (7 seats): • Alain Côté • David Goodfellow • Douglas Goodfellow • Robert Hall • James Hewitt • Stephen Jarislowsky • Sarah Prichard
Slide 8: Appointment of Auditors
May 17, 2023 APPOINTMENT OF AUDITORS
Slide 9: Management Presentation
MANAGEMENT PRESENTATION
Slide 10: Management Review
MANAGEMENT REVIEW Patrick Goodfellow • 2022 Objectives President and CEO • 2022 Market Conditions • 2022 Financials • Q1 - 2023 Financials Charles Brisebois CFO and Secretary • 2023 Outlook
Slide 11: Goodfellow at a Glance
2022 GOODFELLOW AT A GLANCE > 600 18 > 5,200 Employees Locations Customers SALES BY CATEGORY SALES BY LOCATION Building Materials US and Exports 11% 12% Western Quebec Panels Canada 34% 18% 9% Lumber 53% Atlantic 17% Ontario Flooring 28% 18%
Slide 12: Corporate Objectives
2022 CORPORATE OBJECTIVES • > 3 % Net Return on Sales • Deliver on Continued High Demand • Improve Inventory Management • Strengthen Balance Sheet • Diversify and Renew Offering
Slide 13: Commentary
2022 COMMENTARY Q1 ▪ Sales Momentum Carried Over from End 2021 Q2 ▪ Strong Seasonal Demand and Bookings ▪ Difficult Conditions for Pressure Treated and Commodity Q3 ▪ Unprecedented Demand ▪ First Signs of Soaring Inflation, Interest Rate Hikes, Hardwood Price Slide and Decline of Exports Q4 ▪ Compet
Slide 14: Key Decisions
2022 KEY DECISIONS → Dividends ✓ Well- Issued Managed → Capex ✓ Focused on Spending and Long-Term Reinvestments Growth ✓ Financially → Debt Reduction Stable
Slide 15: Year-End Results
2022 YEAR-END RESULTS
Slide 16: Sales
2022 SALES $ Sales ▪ By Region: (in millions) ▪ Canada +2 % : ▪ Quebec flat $616 $631 ▪ ▪ Ontario +4 % Atlantic +10 % +2 % ▪ Western Canada -8 % ▪ US +4 % ▪ Export +6 % ▪ By Category: ▪ Panels -4 % ▪ Lumber +4 % 547 559 ▪ BMATS +12 % ▪ Flooring +1 % ▪ Unit Sales -12 % (1) ▪ Average Transaction Value
Slide 17: GP, Net Earnings and EPS
2022 GP , NET EARNINGS AND EPS (1) (2) $ Gross Profit (1) $ Net Earnings EPS (2) (in millions) (in millions) $38 $137 $136 $4.42 $33 $3.82 2021 2022 2021 2022 2021 2022 (1) Non-IFRS Measure. See “Non-IFRS Financial Measures”. (2) EPS = Net Earnings per Share
Slide 18: Bank Indebtedness
6-YEAR COMPARATIVE BANK INDEBTEDNESS Bank Indebtedness $ (in millions) $51 $41 $30 $24 $2 $- 2017 2018 2019 2020 2021 2022
Slide 19: Recap of Outcomes
2022 RECAP OF OUTCOMES Maintained Increased Well- Capitalized Managed on Surging Price and Inventory Margin Turnover Supply Demand Disruptions Discipline Rate
Slide 20: Q1 – 2023 Results
Q1 – 2023 RESULTS
Slide 21: Sales
Q1 - 2023 SALES $ Sales (in millions) ▪ Unit Sales -24 % $129 +8% $106 ▪ Average Value per Transaction -5 % ▪ By Region: ▪ Canada -17 % : ▪ Quebec -25 % ▪ Ontario -18 % ▪ Atlantic +2 % ▪ Western Canada -21 % ▪ US -21 % ▪ Export -29 % Q1 - 2022 Q1 - 2023
Slide 22: GP, Net Earnings and EPS
Q1 - 2023 GP , NET EARNINGS AND EPS (1) (2) $ Gross Profit (1) $ Net Earnings EPS (2) (in millions) (in millions) $28 $5.1 $0.60 $22 -$0.2 -$0.02 Q1 - 2022 Q1 - 2023 Q1 - 2022 Q1 - 2023 Q1 - 2022 Q1 - 2023 (1) Non-IFRS Measure. See “Non-IFRS Financial Measures”. (2) EPS = Net Earnings per Share
Slide 23: Expected Market Conditions
2023 EXPECTED MARKET CONDITIONS Challenges and Headwinds: • Costs ↑ Due to Inflation and Interest Rates • Consumer Demand ↓ • Freight Costs Level • Labor Costs ↑ • International Markets ↓ • Trade Barriers ↑
Slide 24: 2023 Strategic Growth Drivers
2023 STRATEGIC GROWTH DRIVERS • Expand Value-Added Capabilities • Enhance Industrial Specialty Offering • Right-size Inventory Levels and Values • Diversify Product Mix • Maintain Price and Margin Discipline • Enhance Employee Recruitment and Retention • Explore Strategic Acquisitions – By Region or
Slide 25: Projects
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Slide 26: Chief Commanda Bridge
PROJECTS CHIEF COMMANDA BRIDGE OTTAWA, ON
Slide 27: Yale Peabody Museum
PROJECTS YALE PEABODY MUSEUM NEW HAVEN, CT, USA
Slide 28: École Tournesol
PROJECTS ÉCOLE TOURNESOL LONGUEUIL, QC
Slide 29: Maritime Centre of Excellence
PROJECTS MARITIME CENTRE OF EXCELLENCE NEW LONDON, CT, USA
Slide 30: Question Period
QUESTION PERIOD