Sucro Limited · TSXV:SUGR
Sucro — Investor Presentation (September 2024)
26 slides from Sucro's investor presentation, September 2024
Slide 1: Investor Presentation September 2024
Investor Presentation September 2024 TSXV: SUGR | OTCQB: SUGRF
Slide 2: Disclaimers
DISCLAIMERS General Matters This Presentation should be read in conjunction with the Sucro Limited’s audited annual consolidated financial statements for the year ended December 31, 2023 and accompanying notes, and the MD&A and unaudited condensed interim consolidated financial statements for the qu
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 and key metrics
SUCRO (TSXV: SUGR, OTCQB: SUGRF) $33 M 53% C$188 M Share Information Adj. EBITDA1 Adj. EBITDA CAGR1,2 Market Cap3 Canada: TSX Venture SUGR United States: OTCQB SUGRF C$8.00 $8.76 M 0.82 Shares outstanding6 23,543,085 Share Price Free Cash Flow4 Price to Insider Ownership 76.6% (Closing share price o
Slide 8: ~500,000 MT 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 SUPPLY CHAIN REFINERIES Light Commercially Footprint Active in all 3 ~500,000 MT in North NAFTA Total Volume1 America countries Self- Refined + 2 new announced fac
Slide 9: Servicing the continued demand growth for sugar in North America
SERVICING THE CONTINUED DEMAND GROWTH FOR SUGAR IN NORTH AMERICA ~12.9 M short tons1 US DELIVERIES OF REFINED SUGAR3 consumed annually Deliveries (000s of Short Tons) US Population (millions) 14,000 Consistent, predictable growth requires new refining capacity 2022 sugar deliveries: 11,581,000 Short
Slide 10: 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 SALES & WAREHOUSING & WAREHOUSING Diversified supplier Active supply chain We build low-cost facilities with Optimized locations Providing innovative base of raw sugar management & cost con
Slide 11: Sucro's unique sugar refining model
SUCRO’S UNIQUE SUGAR REFINING MODEL Original Hamilton Refinery ü First refinery built in Hamilton, Ontario (2017-2019) was self-funded ü Innovative and unique micro scale and concept ü Less refining, higher colour sugar ü Only refiner in North America meeting customer demand for flexibility in granu
Slide 12: Strategically located assets focused on North America
STRATEGICALLY LOCATED ASSETS FOCUSED ON NORTH AMERICA Refining & Processing Facilities Regional Offices Operational facility • Located in high Hamilton, Ontario population density, Under construction high volume, New Hamilton Facility underserved markets Operational facility Lackawanna, New York • P
Slide 13: Unique & competitively advantaged trade flow
Logistics UNIQUE & SUGR manages its own logistics; raw/refined sugar procurement is typically COMPETITIVELY purchased FOB Canada ADVANTAGED TRADE Raw sugar deficit (90% of demand requires imports) FLOW Canada Refined sugar self-sufficient (triopoly of refiners with anti- • Customers value Refined tr
Slide 14: Our refineries are driving value creation
OUR REFINERIES ARE DRIVING VALUE CREATION Our Refineries Volumes and Adjusted Gross Profit per MT Delivered2 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 refiner
Slide 15: 3 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 HAMILTON Future Storage New Hamilton Facility
Slide 16: Future volume growth: ~1 million MT
FUTURE VOLUME GROWTH Refinery Volumes1 1,000 1000 (000 metric tons) 900 825 950 800 675 775 700 600 500 625 500 400 325 450 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 17: Serving our blue-chip customers
SERVING OUR BLUE-CHIP CUSTOMERS Canada CANADA Recognized global brands including Low degree of customer 16% USA USA 16% 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 18: 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 customer costs growing complexity and needs of existing commercial relati
Slide 19: This is the future of sugar
THIS IS THE FUTURE OF SUGAR. “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 19
Slide 20: Sucro's value proposition
SUCRO’S VALUE PROPOSITION A proven entrepreneurial Attractive industry Proven record management team, Large, growing, of significant and profitable successfully executing its predictable and profitable growth strategy Strong growth Effective use of Significant future growth performance currently cap
Slide 21: Thank you
THANK YOU Don Hill – Chairman, Sucro P: (305) 901-5222 E: IR@Sucro.us TSXV: SUGR| OTCQB: SUGRF 21
Slide 22: Appendices
APPENDICES TSXV: SUGR | OTCQB: SUGRF 22
Slide 23: 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 24: Lackawanna refinery
LACKAWANNA REFINERY Building on the success of its Hamilton operations and its ü Located in an underserved market strong customer relationships, Sucro management next pursued expansion into the US market. In 2019, The ü Logistics synergies with nearby Canadian facility Company identified and secured
Slide 25: New Hamilton refinery
NEW HAMILTON REFINERY Leveraging the success of Lackawanna (see page 22) and Location Hamilton, Ontario, Canada the original Hamilton refinery, in late 2022 Sucro announced plans to construct a new, larger refinery in Construction 2024 – Phase I Construction start Hamilton. Timeline 2025 – Phase 1 C
Slide 26: 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 –