Empire Co Ltd Class A · TSX:EMP.A
Empire Co Ltd Class A — Investor Presentation (September 2020)
20 slides from Empire Co Ltd Class A's investor presentation, September 2020
Slide 1: Investor Presentation September 2020
Investor Presentation September 2020 Katie Brine, Director Finance, Investor Relations 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: CEO's Direct Reports
CEO’s Direct Reports Michael Medline President & Chief Executive Officer Pierre Vivek Mike Sarah Michael Simon Sandra Doug Vittoria Mohit St-Laurent Sood Venton Joyce Vels Gagné Sanderson Nathanson Varalli Grover Chief Related Discount E-commerce Chief Chief Marketing General Counsel Sustainability,
Slide 4: Empire Company Limited – Who are we?
Empire Company Limited – Who are we? • Canadian company headquartered in Stellarton, Nova Quick Facts – Empire* Scotia. Share price (CAN$)** $37.89 • Key businesses include food retailing and related real estate through wholly-owned subsidiary Sobeys Inc. 52-Week High ** $38.27 and a 41.5% equity ac
Slide 5: Investment Profile
Investment Profile ▪ Second largest grocery retailer in Canada. ▪ Relevant and valuable partnerships. • Crombie REIT – Empire’s largest landlord, respective real estate teams working closely to optimize the partnership. +7% Annual • Ocado Group plc – exclusive partnership in Canada for online grocer
Slide 6: Corporate Responsibility Fiscal 2020 Achievements
Corporate Responsibility Fiscal 2020 Achievements Taking actions guided by our commitment to positively impact People and the Planet, and to serve Products that nurture the diverse needs of Canadian families, both today and in the future. People Planet Products Strive to create a more diverse and Co
Slide 7: Key Achievements – Last twelve months
Key Achievements – Last twelve months October 2019 • Sobeys pilots Smart Cart, the first intelligent grocery shopping cart. • Sobeys Inc. diverts 720,000 plastic bags from the landfill to make benches and tables for public spaces along Atlantic Canadian shores. November • Sobeys Inc. diverts plastic
Slide 8: Successful Completion of Project Sunrise
Successful Completion of Project Sunrise In the fourth quarter of fiscal 2017, the Company launched Project Sunrise, a three-year transformation. As of the fourth quarter of fiscal 2020, Project Sunrise was successfully completed, exceeding management’s initial expectations of $500 million in net be
Slide 9: Project Sunrise – Exceeded 3 Year Target
Project Sunrise – Exceeded 3 Year Target Significant Shareholder Returns $26 Sales ($B) • Increase in stock price of over 100% since January 2017, under the +3.0% CAGR(1) leadership of new CEO and management team. $25 • February 28th 2020 – the Canadian environment began to be $24 impacted by the CO
Slide 10: Project Horizon
Project Horizon New three-year growth strategy for core business expansion and e-commerce acceleration. Management targeting an incremental $500 million in annualized EBITDA, driving an improvement in EBITDA margin of 100 basis points by fiscal 2023. Benefits are expected to ramp up over the three-y
Slide 11: Ontario Market
Ontario Market Significant Growth Opportunity The Company is focused on increasing its market share in urban markets through a two-pronged approach of introducing an industry leading grocery e-commerce Ontario(1) platform to Canadians and rapidly growing the number of Store Approx. Square Farm Boy l
Slide 12: Voilà
Voilà The future of online grocery shopping is here The Company is accelerating its plans to win Canadian grocery e-commerce. • Voilà by Sobeys offers cutting-edge online grocery home delivery, now available in the GTA. • Powered by Ocado’s industry-leading technology, Voilà fills orders through its
Slide 13: Voilà and Ocado Solutions
Voilà and Ocado Solutions With more than 15 years at the forefront of innovation and success in grocery e-commerce, Ocado has partnered exclusively in Canada with Empire on our end-to-end e-commerce solution, Voilà. Key facts: • Canadian online grocery penetration is expected to triple over the next
Slide 14: FreshCo Progress
FreshCo Progress FreshCo Expansion to Western Canada Empire expects to convert up to 25% of its 255 Safeway and Sobeys full-service format stores in Western Canada to its FreshCo discount format. During the first quarter of fiscal 2021, the Company announced the next six locations for the expansion
Slide 15: Capital Allocation
Capital Allocation Capital Expenditure (1) Fiscal 2020: ▪ Invested $575 million including renovations, construction of new stores, construction of an e-commerce fulfillment centre and construction of FreshCo locations in Western Canada. ▪ Outlook: In fiscal 2021, capital spending is expected to be b
Slide 16: Financial Results – Annual
Financial Results – Annual Fiscal F2020 F2019 F2018 F2017 52 weeks 52 weeks 52 weeks 52 weeks (1)(2) 2-May-20 4-May-19¹ 5-May-18 6-May-17 Sales $26,588.2 $25,142.0 $24,214.6 $23,806.2 Same store sales growth, excluding fuel 5.7% 2.7% 0.5% (2.2)% Gross profit $6,633.3 $6,083.6 $5,900.5 $5,707.2 Gross
Slide 17: COVID-19 Update
COVID-19 Update COVID-19 began to impact the Company in February and resulted in restrictions by government authorities. This led to increased safety protocols in stores and distribution centres, and shifts in consumer demand and consumption. • Management’s top priorities remain the health and safet
Slide 18: Appendices A – B
EMPIRE COMPANY LIMITED Sobveyr Appendices A -B
Slide 19: Appendix A Geographic Profile
Appendix A Geographic Profile National scale and presence, operating over 1,500 stores in all 10 provinces, as well as more than 350 retail fuel locations. Total Canada = 1,965 1 West Atlantic 416 464 48 98 230 40 358 727 94 32 Ontario Quebec 124 214 Voilá 1 Please refer to Empire’s Annual Informati
Slide 20: Financial Results – 12 Quarter Review
Appendix B Financial Results – 12 Quarter Review Fiscal Fiscal Fiscal Fiscal 2021 2020(1) 2019 2018 Q1 F21 Q4 F20 Q3 F20 Q2 F20 Q1 F20 Q4 F19 Q3 F19 Q2 F19 Q1 F19 Q4 F18 Q3 F18 Q2 F18 Aug 1 May 2 Feb. 1 Nov. 2 Aug. 3 May 4 Feb. 2 Nov. 3 Aug. 4 May 5, Feb. 3, Nov. 4, 2020 2020 2020 2019 2019 2019 201
Empire Company — Investor Presentation (September 2020) on 6ix