High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Q3 2021 Earnings Presentation
29 slides from High Liner Foods's earnings presentation, November 2021
Slide 1: Investor Presentation
Investor Presentation November 2021 © 2021 High Liner Foods Inc. 1
Slide 2: 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 3: Presentation Notes
Presentation Notes Presentation Currency High Liner Foods (“the Company”) reports its earnings and financial statements in USD. The Company’s 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
Slide 4: Company Overview & Strategy
Company Overview & Strategy © 2021 High Liner Foods Inc. 4
Slide 5: High Liner Foods at a Glance
High Liner Foods at a Glance RETAIL • A publicly-traded Canadian company, listed on the Toronto Stock Exchange under the symbol ‘HLF’ • A leading North American processor and marketer of value-added frozen seafood • Over 120 years of seafood expertise • Well-known core brands sold across the United
Slide 6: Investment Thesis
Investment Thesis Why Seafood? Why High Liner Foods? Why Now? • Over 120 years of seafood expertise • Building on significant momentum from • Healthy - for people and the a transformative 2019 and resilient environment • A North American leader in value- 2020 • Attractive market demographics added f
Slide 7: A North American Leader in Value-Added Frozen Seafood with a Diversified Portfolio
A North American Leader in Value-Added Frozen Seafood with a Diversified Portfolio Geography Branding Channel Product Form 24% 30% 46% 41% 54% 59% 70% 76% US Canada HLF Brands Other Foodservice Retail Value-added Other Based on 2020 Sales lbs • #1 frozen fish manufacturer in Canadian retail market(1
Slide 8: Reimagining Seafood to Nourish Life
Reimagining Seafood to Nourish Life In 2021, the Company refreshed its purpose statement to "Reimagining Seafood to Nourish Life“, which more accurately reflects High Liner Foods’ business, its potential for the future and commitment to all its stakeholders. As we execute against our strategy to
Slide 9: Financial Review & 2021 Outlook
Financial Review & 2021 Outlook © 2021 High Liner Foods Inc. 9
Slide 10: Q3 2021 Performance
Q3 2021 Performance Q3 2021 net sales increased year-over-year due to the steadily recovering foodservice business, pricing actions related to inflationary increases on input costs, and favorable changes in sales mix. • In Foodservice, customer demand continued to increase as a result of significa
Slide 11: 2021 Outlook
2021 Outlook Like others in the retail and foodservice space, the Company continues to navigate significant headwinds related to the previously disclosed global supply challenges and ongoing uncertainty related to the COVID-19 pandemic. High Liner Foods is taking all available steps to attempt to
Slide 12: Q3 2021 YTD Sales Volume and Net Sales
Q3 2021 YTD Sales Volume and Net Sales Sales volume decreased 6.3M lbs (3.5%) to 175.0M lbs ▪ Foodservice: sales volume was higher due to the impact of significantly reduced COVID-19 restrictions on the Company's foodservice customers in the first three quarters of 2021 as compared to the same perio
Slide 13: Q3 2021 YTD Adjusted EBITDA
Q3 2021 YTD Adjusted EBITDA Earnings before Interest, Taxes, Depreciation and Amortization * Please refer to the Company’s MD&A for Q3 2021 for definition of non-IFRS financial measures “Standardized EBITDA” and “Adjusted EBITDA” Adjusted EBITDA increased $2.9M (4.4%) to $69.8M and increased by 20 b
Slide 14: Q3 2021 YTD Earnings Per Share (EPS)
Q3 2021 YTD Earnings Per Share (EPS) * Please refer to the Company’s MD&A for Q2 2021 for definition of non-IFRS financial measure “Adjusted Diluted EPS” Adjusted Diluted EPS increased by $0.29 (39.7%) to $1.02 ▪ Adjusted Net Income increased by $10.8M (43.4%) to $35.7M reflecting increase in Net In
Slide 15: Debt Leverage Ratio
Debt Leverage Ratio Net Debt* to Trailing 12-Month Adjusted EBITDA* Target (3.0x) *Please refer to the Company’s MD&A for Q2 2021 for the definition of non-IFRS financial measures “Net Debt” and “Adjusted EBITDA” **Does not include the trailing 12-Month Adjusted EBITDA for Rubicon purchased May 30,
Slide 16: Dividend History
Dividend History *Reflects Q1/Q2/Q3 dividend of CAD$0.140 per share and Q4 dividend of CAD$0.145 per share **Reflects Q1 dividend of CAD$0.145 per share and Q2/Q3/Q4 dividend of CAD$0.05 per share ***Reflects Q1/Q2/Q3 dividend of CAD$0.05 per share and Q4 dividend of CAD$0.07 per share ****Reflects
Slide 17: Appendix #1: Miscellaneous Company Information
Appendix #1: Miscellaneous Company Information © 2021 High Liner Foods Inc. 17
Slide 18: High Liner Foods
High Liner Foods Canadian public company since the 1960s, TSX-listed in 1971 Current price CAD$14.56* Shares outstanding ~33.3M Market capitalization ~CAD$485.3M 52-week range CAD$10.57 - $14.56* Annual dividend CAD$0.31 per share** Current yield 2.1% * Source TSX, as of November 18, 2021 ** Effecti
Slide 19: High Liner Foods
High Liner Foods Over 120 years of seafood expertise 2017 Rubicon 2021 2013 Resources acquisition American Pride Seafood acquisition 2010 2014 1999 Viking Atlantic Name Change acquisition Trading to High Liner 2011 Company Foods acquisition 1986 Icelandic USA 1926 Fisher Boy acquisition 2007 acquisi
Slide 20: Flexible, Integrated Operations
Flexible, Integrated Operations Three value-added seafood manufacturing facilities in North America • Increased demand for value-added products increases plant efficiency • Current manufacturing footprint: aggregate production capacity of ~175M LBS based on current Lunenburg, NS (Canada) shift patte
Slide 21: Species Diversity
Species Diversity 2.5% 8.9% 22.6% 6.8% Cod Shrimp Salmon 12.0% Alaskan pollock Haddock 20.5% Tilapia Sole 15.2% Other 11.5% Based on 2020 Purchases (in USD) • In 2020, the Company purchased approximately 184M lbs of seafood with an approximate value of $471.7M, reflecting approximately 30 species fr
Slide 22: Corporate Social Responsibility
Corporate Social Responsibility • Committed to sourcing all our seafood from “certified sustainable or responsible” fisheries and aquaculture • Recognized as a global leader in driving best practice improvements in wild fisheries and aquaculture 22
Slide 23: Appendix #2: Historical Financial Performance
Appendix #2: Historical Financial Performance © 2021 High Liner Foods Inc. 23
Slide 24: 10 Year Sales History - Volume and USD
10 Year Sales History - Volume and USD 24
Slide 25: 10 Year EBITDA History
10 Year EBITDA History Earnings before Interest, Taxes, Depreciation and Amortization 25
Slide 26: 10 Year EPS and ROE History
10 Year EPS and ROE History Earnings Per Share (EPS) and Return on Equity (ROE) 26
Slide 27: 10 Year Debt Leverage Ratio
10 Year Debt Leverage Ratio Net Debt* to Trailing 12-Month Adjusted EBITDA* Target (3.0x) In the absence of any major acquisitions or unplanned capital expenditures in 2021, we expect this ratio will remain below the Company’s long-term target of 3.0x at the end of Fiscal 2021. 27
Slide 28: Thank you
Thank you © 2021 High Liner Foods Inc. 28
Slide 29: © 2021 High Liner Foods Inc.
© 2021 High Liner Foods Inc. 29