Superior Plus Corp · TSX:SPB
Superior Plus — CIBC Conference January 2025
22 slides from Superior Plus's conference presentation, January 2025
Slide 1: Investor Presentation
Investor Presentation January 2025 1
Slide 2: Forward-Looking Statements and Information
Forward-Looking Statements and Information This presentation contains information or statements that are or may be “forward-looking statements” within the meaning of applicable Canadian securities laws. When used in this presentation, the words “may”, “will”, “should”, “expect”, “plan”, “anticipate”
Slide 3: Raising the Bar to Generate Long-Term Shareholder Value
Raising the Bar to Generate Long-Term Shareholder Value Significant Progress in Transforming Superior Plus Where We Were Where We Are Where We Are Going Built a Growth Platform Clear Plan to Shift Priorities Best-in-Class Energy Solutions Provider • Strong foundation with commitment • Retooled execu
Slide 4: Superior Plus (TSX: SPB)
Superior Plus (TSX: SPB) Leading North American distributor of Energy Solutions Becoming Best-in-Class Energy Solutions Provider with Leading North-American Platform Certarus: High-Return Growth in CNG Propane Operations Certarus Operations Propane & Certarus Operationally Focused Propane Operations
Slide 5: Superior Plus: Four Operating Divisions
Superior Plus Four Operating Divisions Serving Customers Across North America Propane Distribution CNG, RNG & Hydrogen U.S. Propane Canadian Propane Wholesale Propane Certarus 4th largest U.S. retail propane Canadian leader in propane Security of supply ensures demand Innovator in on-road CNG, RNG d
Slide 6: Transforming the Propane Business
Transforming the Propane Business “Superior Delivers” to Contribute At Least US$50M of Incremental Adj. EBITDA by 2027 Built Significant Scale and Expertise… Total Propane Volumes1 Propane Operations In:2 Adj. EBITDA3,4,5 (millions of gallons) (US$ millions) 24 states 986 1,007 1,010 12 provinces/ +
Slide 7: Certarus
Certarus Market Leader in CNG Exceptional Growth Historically… Adj. EBITDA1,2 MSU Fleet Count1, a Volume Per MSU1 (US$ millions) (MMBtu / day / average MSU) $145-155 $138 104.1 $96 99.5 100.6 839 - 640 729 859 2022 2023 2024F 2022 2023 2024F 2025F 2022 2023 2024F …Going Forward More Balanced Approac
Slide 8: 2024 Financial Outlook
2024 Financial Outlook Strong Business at a Compelling Valuation Adjusted EBITDA1, a Adjusted EBTDA per Share1, a (US$ millions) (US$/sh.) 17% CAGR1 ~$475 ~12% $408 Growth $315 $345 $1.25 $1.22 $281 $286 $183 2018 2019 2020 2021 2022 2023 2024F 2022 2023 2024F 2025E EV/EBITDAb, c, 1, 3 Capital Expen
Slide 9: Capital Structure
Capital Structure Targeting Share Buybacks Followed by De-Leveraging Common Equity Market Capitalizationb ~US$1.1 billion Dividend Yieldb 2.9% Preferred Equityc Preferred Shares Outstandinga US$260 million Annual Dividend Rate (paid monthly)a 7.25% until end of Q2 2027 Debt Capital Total Net Debta ~
Slide 10: Strong Balance Sheet
Strong Balance Sheet Maintain Financial Flexibility Debt Maturity Schedule (US$m)a Debt Breakdowna Amount Due Rate (US$m) 69m Sidecar Credit Due 2027 ~6.25%b $338m Facility 338m Credit Facility Due 2027 ~6.25%c $335m CAN Unsecured Due 2028 4.25% $370m Debenture 221m US Unsecured Due 2029 4.50% $600m
Slide 11: Experienced Management Team
Experienced Management Team Executive Leadership Business Unit Leadership Allan MacDonald, President and Chief Executive Officer Mr. MacDonald joined Superior as President and CEO in April 2023. Previously, Natasha Cherednichenko, President of Certarus he was CEO of the Bragg Group of Companies and
Slide 12: Appendix
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Slide 13: Highly Complementary Business Platform and Model
Highly Complementary Business Platform and Model Certarus Provides Exposure to End-Markets Complementary to Propane Bulk Fuel Source Loading Distribution End Customers Loading at Retail Retail Distribution Via Smaller Customers With Distribution Hub Superior Fleet On-Site Storage Propane Bulk Distri
Slide 14: Propane Operations
Propane Operations Stable business with streamlined operations Secure Propane Supply: We consistently deliver, even in critical National Delivery Fleet: Largest fleet of delivery trucks allows Safety First: Safety is our top priority. Committed to being the situations. Backed by our extensive storag
Slide 15: Certarus
Certarus Highly flexible fleet of CNG, RNG, and Hydrogen virtual pipeline equipment Portable CNG/RNG/Hydrogen Pressure Reduction Systems – Large Volume CNG/RNG/Hydrogen MSUs – Trailered Permanent RNG Injection Station – Fixed pressure reduction Trailered pressure reduction systems for short and long
Slide 16: Renewable Natural Gas
Renewable Natural Gas Multiple expansion projects underway across dairy, swine and landfill BP – South Dakota Dairy: all 4 BP farm sites are online and Archaea Republic Services JV – Indiana Landfill: Project recently Juniper Ridge - Maine Landfill: Project recently came online transporting RNG to o
Slide 17: Hydrogen
Hydrogen Innovation driving organic growth opportunities Space Perspective: Certarus provided hydrogen for SpaceBalloon Siemens: Provided on-site H2 delivery to support gas turbine fuel General Motors: provide fuel cell grade H2 for mobile EV charging project. Received DOT PHMSA and US Coast Guard a
Slide 18: ESG Performance Highlights
ESG Performance Highlights Driving Significant Change Towards A Better Future Positioning for a Low-Carbon Future: Environment Social Governance ▪ Board oversight of sustainability strategy, performance and disclosures 5-yr Low ▪ Expanding our distribution system to include additional low carbon fue
Slide 19: Commodity Pricing (US$/MMBtu)
Commodity Pricing (US$/MMBtu)1 Propane and Natural Gas Have Significant Pricing Advantages Over Competitive Fuels US$24.51/MMBtu US$8.10/MMBtu US$2.11/MMBtu See end notes for further information 19
Slide 20: End Notes
End Notes Slide 5 Slide 7 Slide 18 1. Based on FY 2023 Adjusted Gross Profit. Adjusted Gross Profit is a Non- 1. See “Forward-Looking Statements and Information”. Represents full 1. Superior defines ‘low carbon’ and ‘lower carbon’ fuels as those with a GAAP Financial Measure. Details for Non-GAAP fi
Slide 21: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios In this presentation, Superior has used the following terms (“Non-GAAP Financial Measures and Ratios”) that are not defined by International Financial Reporting Standards (“IFRS”) but are used by management to evaluate the performance of Superior and its busine
Slide 22: Investor Presentation
Investor Presentation January 2025 22