Colabor Group Inc. · OTC:COLFF
Colabor — Shareholder Meeting (May 2021)
25 slides from Colabor's shareholder meeting presentation, May 4, 2021
Slide 1: Annual Meeting of the Shareholders
ANNUAL MEETING OF THE SHAREHOLDERS COLABOR GROUP INC. MAY 4, 2021
Slide 2: Management's Presentation
MANAGEMENT’S PRESENTATION LOUIS FRENETTE PRESIDENT AND CHIEF EXECUTIVE OFFICER MARIE-FRANCE LABERGE CORPORATE CONTROLLER & INTERIM CHIEF FINANCIAL OFFICER ANNUAL MEETING OF SHAREHOLDERS MAY 4, 2021
Slide 3: Contents
Contents 1. 2020: Towards completion of the transformation plan 2. 2020 Financial results 3. 2021: a year of continuous improvement 4. Financial results of Q1 2021
Slide 4: Forward Looking Statement
FORWARD LOOKING STATEMENT Disclaimer This document is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Colabor Group Inc. and has not been prepared for delivery to, and review by, prospective investors in order to assist
Slide 5: 2020 Summary: Towards the Completion of the Transformation Plan
SUMMARY TOWARDS THE COMPLETION OF 2020 THE TRANSFORMATION PLAN Objectives at the beginning of 2020: Optimize operations and grow profitably ACTIONS Objectives at the beginning of 2020: 1. Grow broadline distribution activities 2. Become more efficient 3. Prioritize employee engagement Objectives add
Slide 6: Update on Our Strategic Plan Following the Start of the COVID-19 Pandemic
UPDATE ON OUR STRATEGIC PLAN FOLLOWING THE START OF THE COVID-19 PANDEMIC • Starting at the end of the first quarter of 2020, the pandemic has impacted our activities and operating results: • A decrease in sales to our restaurant customers caused by the closure of dining rooms on an intermittent bas
Slide 7: 1. Grow Broadline Distribution Activities
1. GROW BROADLINE DISTRIBUTION ACTIVITIES Objectives Outcome Organic growth: Improve the share of existing • Geographic diversification outside of clients portfolio and the extent of major urban centers; the Quebec territory • Favorable mix of clients; and • New clients in the institutional and reta
Slide 8: 2. Become More Efficient
2. BECOME MORE EFFICIENT Objectives Outcome Evaluation of strategic assets: Evaluate and capitalize on • Gradual closure of non profitable contract with strategic alternatives for Recipe in Ontario in Q1 2020; certain assets • Closing of the sale of majority of assets of Summit division; • Closure o
Slide 9: 3. Prioritize Employee Engagement
3. PRIORITIZE EMPLOYEE ENGAGEMENT Objectives Outcome Employee engagement: Implement new tools allowing an • Deployment of a new integrated improved organizational human resources platform that communication and improving facilitates organizational integration and training process communication and e
Slide 10: 4. Minimize the Impact of the Pandemic
4. MINIMIZE THE IMPACT OF THE PANDEMIC Objectives Outcome Minimize impacts: Adapt our operations and our • Measures quickly put in place in activities and focus on the order to reduce operating costs; resilience of our business model • Obtain governmental subsidies with the clients diversification a
Slide 11: 5. Maintaining Our Financial Ratios Despite the Pandemic
5. MAINTAINING OUR FINANCIAL RATIOS DESPITE THE PANDEMIC Objectives Outcome Maintaining our financial ratios: Put in place liquidity preservation • Net debt(1): at $52.1M at the end of measures to maintain our financial 2020 vs $72.1M in 2019; and ratios • Leverage ratios(1): at 1.8x (2.6x without I
Slide 12: 2020 Financial Results
2020 Financial Results
Slide 13: Revenue and Profitability Trend in 2020
REVENUE AND PROFITABILITY TREND IN 2020 CONSOLIDATED REVENUE ADJUSTED EBITDA(1) (2) -30.7% +4.6% $666.0M $28.9M $27.6M $461.3M 2019 2020 2019 2020 Distribution segment -37.1% Gross margin improvement Wholesale/Interco segment -16.3% (in %) and Adjusted EBITDA margin (1): Non-IFRS measures. Ref
Slide 14: Cash Flow and Net Debt Trend in 2020
CASH FLOW AND NET DEBT TREND IN 2020 CASH FLOWS FROM OPERATIONS (2) NET DEBT(1) +18.4% - 27,8%% $37.3M $72.1M $31.5M $52.1M 2019 2020 2019 2020 Adjusted EBITDA $1.3M Cash flows from operations $37.3M Deferred income taxes -$1.9M CAPEX -$1.5M Net changes in working $6.5M Lease payments -$
Slide 15: 2021 A Year of Continuing Objectives Improvement
2021 A YEAR OF CONTINUING OBJECTIVES IMPROVEMENT 1. Grow our Distribution activities in Quebec 2. Optimize processes 4 3. Prioritize employee engagement 4. Manage efficiently the impacts of the pandemic PILLARS Objective: Grow profitably 15
Slide 16: 1. Grow Our Distribution in Quebec
1. GROW OUR DISTRIBUTION IN QUEBEC • Growth from certain strategic categories (protein, fruits and vegetables), non-food products and local products; • Reposition the private brand; and • Improve the share of existing clients portfolio and the extent of the Quebec territories through organic growth
Slide 17: 2. Optimize Processes
2. OPTIMIZE PROCESSES • Standardize and improve internal management processes in order to reduce the business unit costs; and • Finalize the transformation of its divisional structure to a functional structure. 17
Slide 18: 3. Prioritize Employee Engagement
3. PRIORITIZE EMPLOYEE ENGAGEMENT • Continue the deployment of the new integrated human resources management platform; • Deployment of a return protocol to the workplace; and • Define the employer brand to attract and retain talent. 18
Slide 19: 4. Manage Efficiently the Impacts of the Pandemic
4. MANAGE EFFICIENTLY THE IMPACTS OF THE PANDEMIC • Continue to optimally manage expenditure and cash flow in the context of the pandemic. 19
Slide 20: Financial Results of Q1 2021
Financial results of Q1 2021
Slide 21: Revenue and Profitability in Q1 2021
REVENUE AND PROFITABILITY IN Q1 2021 CONSOLIDATED REVENUE ADJUSTED EBITDA(1) -23.3% +4.1% $111.6M $3.8M $3.7M $85.6M 2020 2021 2020 2021 The pandemic’s impacts -$1.2M Distribution segment -29.0% Subsidies $1.3M Wholesale/Interco segment -8.2% The pandemic adversely impacted revenue for the q
Slide 22: Cash Flow from Operations and Net Debt Trend in Q1 2021
CASH FLOW FROM OPERATIONS AND NET DEBT TREND IN Q1 2021 CASH FLOW NET DEBT(1) FROM OPERATIONS -$1.6M -$0.2M $5.6M $52.1M $5.4M $50.5M 2020 2021 2020 2021 Adjusted EBITDA $0.1M Cash flow from operations $1.6M Net changes in working -$1.3M capital Deferred taxes $0.6M (1): Non-IFRS measures re
Slide 23: Net Debt to Adjusted EBITDA Ratio
NET DEBT TO ADJUSTED EBITDA RATIO Net Debt / Adjusted EBITDA LTM Adjusted EBITDA LTM Net Debt (excl. Convertible debt) / Adjusted EBITDA LTM $29.1M $28.9M $29.1M 2.1 1.8 1.7 0.38 0.07 0.04 Q1 2020 Q4 2020 Q1 2021 Credit Facility Credit Facility Credit Facility Use: $Nil M Use: $Nil M Use: $Nil M Max
Slide 24: Questions Period
©/ COLABOR QUESTIONS PERIOD
Slide 25: Head Office
Head Office 1620 de Montarville Boulevard Boucherville (Quebec) J4B 8P4 Canada Phone : 450 449-4911 Fax : 450 449-6180 investors@colabor.com