Empire Co Ltd Class A · TSX:EMP.A
Empire Co Ltd Class A — Investor Presentation (September 2024)
21 slides from Empire Co Ltd Class A's investor presentation, September 2024
Slide 1: Investor Presentation
Investor Presentation September 2024 Katie Brine – Vice President, Investor Relations, Treasury & Pensions Email: katie.brine@sobeys.com
Slide 2: Disclaimers
Disclaimers Forward-Looking Information This presentation contains forward-looking statements which are presented for the purpose of assisting the reader to contextualize the Company’s financial position and understand management’s expectations regarding the Company’s strategic priorities, objective
Slide 3: Uniquely positioned to capture the Omni-Channel future of grocery
Empire Company is uniquely positioned to capture the Omni-Channel future of grocery Retail Network Assets Supported by Real Estate Assets: Connected by the Scene+ Loyalty Program Full Service(1) Discount E-Commerce Related Business * Equity ownership in Crombie REIT (CRR-UN) at 41.5% Equity ownershi
Slide 4: Serving Canadians for over 115 years through Food Retailing and Real Estate
Empire Company: Serving Canadians for over 115 years through its Food Retailing and Real Estate Businesses 1,600+ $30B+ 4 29 51% 41.5% Stores Annual Sales CFCs to support Distribution Interest in Interest in Voilà Centres Longo’s Crombie REIT Operating in all 10 Intention to operate Strategically 10
Slide 5: One of Two Players with National Scale in Grocery
One of Two Players with National Scale in Grocery National scale and presence, operating over 2,300 stores (including more than 350 retail fuel locations) in Canadian Population all 10 provinces, with 98 stores currently offering Voilà Curbside Pickup. by Province (Growth 2018–2023): • British Colum
Slide 6: Strong Financial Performance
Strong Financial Performance Sales CAGR(1) Adjusted EBITDA CAGR(1)(2)(4) Adjusted EPS CAGR(1)(2)(4) 3.7% ($ in billions) 16.5% ($ in billions) 21.5% ($ per share) $32.0 $30.7 $2.5 $2.3 $3.00 $2.74 $30.0 $2.50 $2.0 $28.0 $2.00 $1.5 $26.0 $1.50 $1.0 $24.0 $1.00 $0.5 $22.0 $0.50 $20.0 $0.0 $0.00 (3) 20
Slide 7: Empire Company — A Compelling Investment Opportunity
Empire Company — A Compelling Investment Opportunity #2 in Grocery Market Share Leveraging national retail network to deliver outsized growth and attractive financial performance amid solid population growth trends. Long-Term Financial Long-term financial framework to achieve 8%-11% EPS Framework gr
Slide 8: Long-Term Financial Framework
Long-Term Financial Framework 8% to 11% Long Term Average Adjusted EPS Growth Driven by our intention to improve Sales, Gross Margin (excluding fuel), and adjusted EBITDA margin Continued Focus on Stores Enhanced Focus on Digital and Data Efficiency and Cost Optimization We will continue to focus on
Slide 9: Continued Focus on Stores
Continued Focus on Stores Renovations Space Productivity 20% –25% of network over between F24 Improve store layouts, optimize and F26 category/product adjacencies, tailoring • Sales and margin uplift assortment BETTER DATA STORE FOCUSED SALES/SQ.FT. • Enhanced store productivity Customer-Centric • S
Slide 10: Enhanced Focus on Digital and Data
Enhanced Focus on Digital and Data A differentiated national loyalty platform - driving incremental sales and earnings Co-owner Personalization Drive Data Ownership to at Scale Incrementality Drive Insights Differentiated Connected Banners to Drive New Customer Enhanced Customer Experience Omni-Chan
Slide 11: Enhanced Focus on Digital and Data: Voilà Key Areas
Enhanced Focus on Digital and Data Key Areas of Focus Superior In-Stock Position Best-in-Class Delivery Experience Substantial Assortment Extremely low substitution rate, White glove delivery 39K SKUs at mature CFCs Differentiated Freshness Ongoing Innovation Loyalty & Personalization Omni-Channel F
Slide 12: Efficiency and Cost Optimization
Efficiency and Cost Optimization Strategic Supply Chain Organization / Other Sourcing Drive efficiency and cost • Drive supply chain productivity and • Turnaround Era (F18 - F23): effectiveness through various cost effectiveness Transitioned from a regional to initiatives within goods not for resale
Slide 13: Disciplined and Balanced Capital Allocation
Disciplined and Balanced Capital Allocation Significant Shareholder Return and Growing Dividends (% of Market Capitalization) Dividends ($M) Repurchases (% of Market Capitalization) Share Repurchases ($M) 581 593 6.9% 6.9% Return of Capital 520 (Dividends + NCIB) 5.2% 406 As a percentage of 3.8% Mar
Slide 14: ESG Goals: Steady and tangible progress
ESG1 Goals: Steady and tangible progress Planet FOOD WASTE CLIMATE ACTION CLIMATE ACTION PLASTICS & PACKAGING We’re reducing our impacts and taking action on climate change to do ~30M lbs of surplus food donated, gaining recognition from Second 26.7% 64% Completed the removal of the 5 single-use pla
Slide 15: Summary of Financial Results
Summary of Financial Results Fiscal Year 2018 2019 2020 2021 2022 2023 2024 52 weeks 52 weeks 52 weeks 52 weeks 53 weeks 52 weeks 52 weeks (1) (2) 5-May-18 4-May-19 2-May-20 1-May-21 7-May-22 6-May-23 4-May-24 Sales $24,215 $25,142 $26,588 $28,268 $30,162 $30,478 $30,733 (3) Same store sales growth
Slide 16: Appendices
Appendices empire
Slide 17: Appendix A: A Review of Turnaround Initiatives
Appendix A: A Review of Turnaround Initiatives Project Sunrise Project Horizon Financial Targets Financial Targets >$550M $500M 50 bps ~13% (1) (1) Cost Savings Incremental Of EBITDA margin EPS CAGR annualized EBITDA improvement ACHIEVED ACHIEVED ACHIEVED ACHIEVED Initiatives Initiatives • Organizat
Slide 18: Appendix B: Scene+ Reward Categories
Appendix B: Scene+ Reward Categories Grocery, Liquor, Shopping Home Pharmacy Banking Entertainment Travel (redeem only) Dining Improvement (Earn only) PLUS many more…
Slide 19: Appendix C: Voilà Timeline
Appendix C: Voilà Timeline November 2021 January 2022 March 2022 April 2022 May 2024 January 2018 E-commerce option Ocado Voilà par IGA Voilà by Sobeys Paused opening of 4th CFC available for announces launches for Quebec expands to Ottawa in Vancouver and ended Sobeys signs agreement new customers
Slide 20: Appendix D: Financial Results – Quarter Review
Appendix D: Financial Results – 12 Quarter Review Fiscal Fiscal 2022 Fiscal 2023 Fiscal 2024 2025 Q2 F22 Q3 F22 Q4 F22(1) Q1 F23 Q2 F23 Q3 F23 Q4 F23 Q1 F24 Q2 F24 Q3 F24 Q4 F24 Q1 F25 Oct 30 Jan 29 May 7 Aug 6 Nov 5 Feb 4 May 6 Aug 5 Nov 4 Feb 3 May 4 Aug 3 2021 2022 2022 2022 2022 2023 2023 2023 2
Slide 21: Appendix E: Executive Leadership Team
Appendix E: Executive Leadership Team Michael Medline President & Chief Executive Officer Pierre St-Laurent Matt Reindel Sandra Sanderson Doug Nathanson Julia Knox Simon Gagné Chief Operating Officer Chief Financial Officer Chief Marketing Officer EVP, Chief Development Chief Technology and Chief Hu
Empire Company — Investor Presentation (September 2024) on 6ix