Slide 1: Investor Presentation
Investor Presentation December 7, 2021
Slide 2: Disclaimer
Disclaimer This presentation is not intended to form the basis of any investment decision and should not be considered as a recommendation by Premium Brands Holdings Corporation (the “Company”) or any other person in relation to the Company’s business or the securities of the Company. This presentat
Slide 3: Today’s Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer Extraordinary Times Extraordinary Team 3
Slide 4: Premium Brands
Premium Brands To provide talented proven entrepreneurs with the resources they need to transform their good food businesses into bigger great food businesses ENTREPRENEURSHIP with ACCOUNTABILITY Extraordinary Times Extraordinary Team 4
Slide 5: Company Profile
Company Profile 2004 Current Revenue $0.2 billion $4.6 billion EBITDA $14.1 million $405.0 million Business platforms 2 6 Geographic reach Western Canada North America Operating facilities 8 108 Employees 900 11,000 Free cash flow per share $0.78 $5.80 Annualized dividend rate $ nil $2.54 / share Cu
Slide 6: Platform Overview
Platform Overview PRO-FORMA LTM BUSINESS GROUP OVERVIEW 2020A REVENUE 2020A REVENUE % REVENUE ⚫ Formed in 1997 / 1998 through the acquisition Protein of Grimm’s Fine Foods, McSweeney’s and ⚫ C$1,762m ⚫ 43% ⚫ C$1,957m Harvest Meats ⚫ Formed in 1999 through the acquisition of SF Sandwich Quality Fast
Slide 7: Protein Platform Evolution
Protein Platform Evolution Extraordinary Times Extraordinary Team 7
Slide 8: Sandwich Platform Evolution
Sandwich Platform Evolution Extraordinary Times Extraordinary Team 8
Slide 9: Bakery & Culinary Platform Evolution
Bakery & Culinary Platform Evolution Extraordinary Times Extraordinary Team 9
Slide 10: Distribution Platform Evolution
Distribution Platform Evolution Acquired Acquired Ravensbergen 45,000 SF Mermax and Viandomax Expansion of Acquired Acquired Acquired Frandon Acquired C&C IMS Frandon Confederation Packing Seafoods Acquired Freezers Acquired Expanded Centennial Mavros Acquired Multi- Centennial Acquired Acquired ent
Slide 11: Seafood Platform Evolution
Seafood Platform Evolution Setup of new Acadia buying station Construction of Acquired new 40,000 sf Starboard Construction of Saco facility Seafood and 50% new 105,000 sf interest in ON facility Acquired Acquired Hancock Clearwater Maximum Gourmet, L Seafood and Acquired Acquired Acquired Walker, N
Slide 12: Core Business Strategies
Core Business Strategies • Emerging trends • Niche product categories 1. Targeted segments of the food industry • Leading regional brands focused on authenticity and differentiation • Unique distribution solutions • Significant organic growth opportunities • Dedicated to maintaining an entrepreneuri
Slide 13: Targeted Segments of the Food Industry: Protein
Targeted Segments of the Food Industry PROTEIN Extraordinary Times Extraordinary Team 13
Slide 14: Targeted Segments of the Food Industry: Sandwich
Targeted Segments of the Food Industry SANDWICH Extraordinary Times Extraordinary Team 14
Slide 15: Targeted Segments of the Food Industry: Bakery & Culinary
Targeted Segments of the Food Industry BAKERY & CULINARY Extraordinary Times Extraordinary Team 15
Slide 16: Targeted Segments of the Food Industry: Seafood
Targeted Segments of the Food Industry SEAFOOD Extraordinary Times Extraordinary Team 16
Slide 17: Premium Brands Eco-system
Premium Brands Eco-system Extraordinary Times Extraordinary Team 17
Slide 18: Strategically Located Manufacturing Network
Strategically Located Manufacturing Network Extraordinary Times Extraordinary Team 18
Slide 19: Piller’s Brantford, ON Facility
Piller’s Brantford, ON Facility OVERVIEW FACILITY ⚫ Piller’s Brantford, ON production facility is one of its three operating facilities. It produces a variety of meat snack products, including meat sticks, Salami Whips and snack cups, all under the Piller’s brand name ⚫ The facility is 127,000 sf in
Slide 20: Oberto’s Kent, WA Facility
Oberto’s Kent, WA Facility OVERVIEW FACILITY ⚫ Oberto’s main production facility is in Kent, Washington. It produces a variety of meat snacks under the Oberto, Cattleman’s Cut, Bavarian and Pacific Gold brand names ⚫ The facility is 170,000 sf and uses state-of-the-art continuous cooking and packagi
Slide 21: SK Food Group’s Phoenix, AZ Facility
SK Food Group’s Phoenix, AZ Facility OVERVIEW FACILITY ⚫ SK Food Group’s Phoenix, AZ production facility is one of the Sandwich platform’s 8 operating facilities. It produces a variety of frozen sandwiches and wrap, a significant portion of which are for Starbucks ⚫ The facility is 213,000 sf and us
Slide 22: Stuyver’s Langley, BC Facility
Stuyver’s Langley, BC Facility OVERVIEW FACILITY ⚫ Stuyver’s Langley, BC production facility is one of the Bakery platform’s 3 operating facilities. It produces a variety of artisan bread products including baguettes, hearty baked loaves, gourmet burger buns, ciabattas and rolls ⚫ The facility is 65
Slide 23: C&C / Frandon Montreal, QC Facility
C&C / Frandon Montreal, QC Facility OVERVIEW FACILITY ⚫ The C&C / Frandon shared facility is one of the Distribution platform’s 27 operating facilities. It processes and distributes a variety of protein and seafood products for the Quebec, and to a lesser extent, the Ontario markets ⚫ The facility i
Slide 24: Ready Seafood’s Saco, ME Facility
Ready Seafood’s Saco, ME Facility OVERVIEW FACILITY ⚫ Ready Seafood’s Saco, ME production facility is one of the Seafood platform’s 15 operating facilities. It produces a variety of processed lobster products, including a line of Cold Cracked Lobster branded all-natural raw lobster items ⚫ The facil
Slide 25: Diversification – Channels and Customers
Diversification – Channels and Customers Specialty Foods (65.6%) Premium Food Distribution (34.4%) Customer % Sales Others, 2.6% Chains and large Independent and Specialty Retailers, format retailers, 9.3% Customer A 14.0% 5.7% Trading, 3.0% Customer B 13.1% Customer C 6.9% Foodservice Foodservice o
Slide 26: Diversification – Geographically
Diversification – Geographically (millions of dollars except percentages) Extraordinary Times Extraordinary Team 26
Slide 27: Diversification – Products and Procured Commodities
Diversification – Products and Procured Commodities Specialty Foods (65.6%) Premium Foods Distribution (34.4%) Others, 1.6% Baked goods, 1.2% Commodity % Sales Seafood, 15.2% Beef 21.5% Sandwiches, Seafood 17.7% 19.3% Pork 13.4% Poultry 5.2% Protein, 18.5% Bread 2.6% Eggs 2.4% Turkey 2.3% Freight co
Slide 28: Diversification – Procured Sources
Diversification – Procured Sources Extraordinary Times Extraordinary Team 28
Slide 29: Acquisitions Activity
Acquisitions Activity 2005/6 2007 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018 2019 2020 2021 $35.9m $91.8m $16.7m $3.1m $67.3m $121.8m $63.7m $8.1m $51.9m $244.0m $246.2m $753.0m $118.6m $168.2m $751.0m Harlan Centennial B&C Foods SJ Fine Maximum Piller’s Freybe Ocean Expresco C&C Raybern Ober
Slide 30: Acquisitions Framework
Acquisitions Framework Acquisition Consideration Acquisition Resources • Management team strength • Comprehensive in-house financial modeling, due diligence and • Cultural fit – core entrepreneurial focused values transaction closing capabilities • Differentiation of products and / or services • Acc
Slide 31: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales # Sales # Sales Seafood - - 3 990 7 482 3 204 6 415 19 2,091 Distribution - - 3 250 5 1,068 1 878 4 63 13 2,259 Protein 2 83 2 49 12 938
Slide 32: A Leader in Environmental, Social, and Governance
A Leader in Environmental, Social, and Governance Nutritious Food • Natural ingredients, sustainable supply chains, animal welfare standards, responsible labelling, excellence in food safety People • Employee safety-first culture, prioritizing mental health and well-being, embracing diversity and wo
Slide 33: Financial Update
Financial Update Extraordinary Times Extraordinary Team 33
Slide 34: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 to 2021 TTM CAGR is 22.3% 6,000.0 70.0% 4,821.8 60.0% 5,000.0 Long-term targeted 4,642.5 growth rate (6% - 8%) 4,269.0 4,068.9 50.0% 4,000.0 3,649.4 40.0% 3,025.8 3,000.0 2,198.3 30.0% 1,857.5 2,000.0 1,484.5 1,221.8 20.0% 960.1 1,043.0 1,0
Slide 35: Future Organic Growth Drivers
Future Organic Growth Drivers Seafood Distribution Protein Sandwich Bakery Culinary Processed lobster and crab Increased retail featuring Branded meat snack sticks Leveraging IP and North Branded naturally fermented Product and meal solutions initiatives in foodservice and programs in the US America
Slide 36: Recent Major Capacity Expansion Projects
Recent Major Capacity Expansion Projects Seafood Distribution Protein Sandwich Bakery Culinary • Ready’s new lobster • 56,500 sf expansion of • 107,000 sf expansion of • New 144,000 sf plant in • 41,000 sf expansion of • Reconfiguration of buying station in Maine Premier’s value-added Hempler’s meat
Slide 37: Organic Volume Growth Rates
Organic Volume Growth Rates Factors contributing to the lower Q3-2021 growth rate include: Organic Volume Growth Rate • SF: meat snack and kabob capacity 20.0% constraints which resulted in $20.7m of 16.0% product short shipments and the delay of new 12.0% sales initiatives • SF: less retail featuri
Slide 38: Weekly Sales Trend
Weekly Sales Trend 120,000 100,000 80,000 $000's 60,000 40,000 20,000 - 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week # 2019 PBH Total 2020 PBH Total 2021 PBH Total Extraordinary Times Extraordinary Team 38
Slide 39: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 to 2021 TTM CAGR is 23.5% (Pre IFRS-16: 22.0%) 12.0% 500.0 11.0% 438.7 405.0 10.0% 400.0 369.6 312.6 9.0% 307.7 300.0 280.2 8.0% 190.2 200.0 7.0% 154.8 111.6 6.0% 100.0 69.3 77.6 66.8 54.9 42.0 5.0% - 4.0% 2010 2011 2012 2013 2014 2015 2016
Slide 40: EBITDA Margin Drivers
EBITDA Margin Drivers Seafood Distribution Protein Sandwich Bakery Culinary Positive Factors • Sales leveraging • Sales leveraging • Sales leveraging • Sales leveraging • Sales leveraging • Sales leveraging • Operational efficiencies • Operational efficiencies • I/C sales • Pricing strategies • Oper
Slide 41: Commodity Trends – Pork
Commodity Trends – Pork Demand factors Pork Index Chart • Reopening of economies • Substitution 9.0 • Consumer disposable 8.0 income 7.0 • Rising consumer prices 6.0 USD Supply factors Based 5.0 • Labor shortages – Index 4.0 particularly impacting Per lbs value-added inputs 3.0 • Rising feed costs (
Slide 42: Commodity Trends – Beef
Commodity Trends – Beef Demand factors Beef Index Chart • Reopening of economies 18.000 • China imports • Consumer disposable 16.000 income • Rising consumer prices USD 14.000 Based Supply factors Index 12.000 Per lbs • Labor shortages – 10.000 particularly impacting value-added inputs 8.000 • Droug
Slide 43: Commodity Trends – Lobster
Commodity Trends – Lobster Lobster Index Chart Demand factors • Reopening of 40.0 economies 35.0 • Consumer disposable income 30.0 • Significantly reduced retail featuring of live 25.0 lobster – price related USD • Expanding national Based 20.0 demand for processed Index lobster products in the Per
Slide 44: Commodity Trends – Chilean Salmon
Commodity Trends – Chilean Salmon Chilean Salmon Index Chart 8.0 Demand factors • Reopening of economies 7.0 • Consumer disposable CAD 6.0 income Based Index Per 5.0 Supply factors lbs • Supply chain disruptions 4.0 as supply channels and demand patterns begin to 3.0 normalize 2.0 • Recovering produ
Slide 45: Commodity Trends – Atlantic Salmon
Commodity Trends – Atlantic Salmon Canadian Whole Atlantic Salmon Index Chart Demand factors • Reopening of economies 6.0 • Consumer disposable income CAD 5.0 Based Supply factors Index Per 4.0 • West coast farm lbs shutdowns 3.0 • Supply chain disruptions as supply channels and 2.0 demand patterns
Slide 46: Clearwater Results
Clearwater Results (millions of dollars except percentages) Q3-2021 % Q3-2020 % Sales 158.4 100.0% 133.7 100.0% Sales Gross profit 53.1 33.5% 35.8 26.8% • Positive: reopening of SG&A 13.0 8.2% 10.4 7.8% economies in North America and Asia EBITDA 40.1 25.3% 25.4 19.0% • Negative: a stronger CAD Depre
Slide 47: Adjusted Earnings and EPS
Adjusted Earnings and EPS (millions of dollars except per share amounts) 250.0 $5.50 Post IFRS-16 Reporting 208.2 $4.50 200.0 183.4 2010 to 2021 TTM CAGR is 25.2% (2021 TTM-N is 26.7%) 164.6 $3.50 150.0 121.4 122.5 122.7 $2.50 99.2 100.0 80.5 $1.50 53.2 50.0 26.6 $0.50 24.5 24.9 19.6 - $(0.50) 2011
Slide 48: Five Year (2023) Sales Target
Five Year (2023) Sales Target (millions of dollars except percentages) Amount Notes Q3-2021 TTM sales 4,642.5 Q3-2021 TTM pandemic impact 179.3 Includes Global Gourmet, Allseas, Starboard, Clearwater, Confederation Annualization of acquisitions completed in 2020 and 2021 422.5 Freezers, Distribution
Slide 49: Five Year (2023) Adjusted EBITDA Target
Five Year (2023) Adjusted EBITDA Target (millions of dollars except percentages) % of Amount Sales Notes Impact Q3-2021 TTM adjusted EBITDA 405.0 8.7% Q3-2021 TTM pandemic sales impact 33.8 18.9% Annualization of announced acquisitions Includes Global Gourmet, Allseas, Starboard, Clearwater, Confede
Slide 50: Liquidity
Liquidity (millions of dollars except ratios) Extraordinary Times Extraordinary Team 50
Slide 51: Convertible Debentures
Convertible Debentures (millions of dollars except percentages and unit prices) Trading Maturity Convert O/S Coupon Issuance Converted Symbol Date Price Balance PBH.DB Dec 2014 7.00% 14.50 40.3 39.2 - Debenture Details PBH.DB.A Dec 2015 5.75% 22.40 57.5 56.3 - • No principal payments until PBH.DB.B
Slide 52: Free Cash Flow
Free Cash Flow (millions of dollars except per share amounts and percentages) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM 2021 Payout ratio 106.4% 77.7% 69.6% 70.6% 65.2% 59.4% 53.0% 53.9% 48.4% 43.2% 36.6% 38.5% 38.1% 43.1% 48.7% 44.1% Dividend per share $1.18 $1.
Slide 53: Questions
Questions Extraordinary Times Extraordinary Team 53