High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Investor Presentation (February 2022)
29 slides from High Liner Foods's investor presentation, February 2022
Slide 1: Investor Presentation
Investor Presentation February 2022 © 2021 High Liner Foods Incorporated 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 Incorporated 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 Based on 2021 Sales lbs • #1 frozen seafood manufacturer and #1 frozen value-added seafood manufacturer in Canadian retail market(1) • #1 prepared frozen fish manufacturer and #4 frozen value-added seafood manufacture
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 & 2022 Outlook
Financial Review & 2022 Outlook © 2021 High Liner Foods Incorporated 9
Slide 10: Q4 2021 Performance
Q4 2021 Performance Q4 2021 net sales increased year-over-year reflecting pricing actions related to inflationary increases on input costs and favorable changes in sales mix, partially offset by lower sales volumes. • In Foodservice, sales volume was lower due to the impact of global supply chain
Slide 11: 2022 Outlook
2022 Outlook Demand for the Company's products remains strong, however, like others in the retail and foodservice space, the Company continues to navigate global supply challenges, inflationary pressures on raw material and ongoing uncertainty related to the COVID-19 pandemic. High Liner Foods is
Slide 12: Fiscal 2021 Sales Volume and Net Sales
Fiscal 2021 Sales Volume and Net Sales Sales volume decreased 7.2M lbs (3.0%) to 233.7M lbs ▪ Foodservice: sales volume was higher due to the impact of significantly reduced COVID-19 restrictions on the Company's foodservice customers in 2021 as compared to the same period of 2020. ▪ Retail: sales v
Slide 13: Fiscal 2021 Adjusted EBITDA
Fiscal 2021 Adjusted EBITDA Earnings before Interest, Taxes, Depreciation and Amortization * Please refer to the Company’s MD&A for Q4 2021 for definition of non-IFRS financial measures “Adjusted EBITDA as Percentage of Sales”, “Standardized EBITDA” and “Adjusted EBITDA” Adjusted EBITDA increased $2
Slide 14: Fiscal 2021 Earnings Per Share (EPS)
Fiscal 2021 Earnings Per Share (EPS) * Please refer to the Company’s MD&A for Q4 2021 for definition of non-IFRS financial measure “Adjusted Diluted EPS” Adjusted Diluted EPS increased by $0.26 (25.5%) to $1.28 ▪ Adjusted Net Income increased by $9.6M (27.2%) to $44.8M reflecting an increase Net Inc
Slide 15: Debt Leverage Ratio
Debt Leverage Ratio Net Debt to Rolling Twelve-Month Adjusted EBITDA* Target (3.0x) *Please refer to the Company’s MD&A for Q4 2021 for the definition of non-IFRS financial measure “Net Debt to Rolling Twelve-Month Adjusted EBITDA” **Does not include the rolling twelve-month Adjusted EBITDA for Rubi
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 Incorporated 17
Slide 18: High Liner Foods
High Liner Foods Canadian public company since the 1960s, TSX-listed in 1971 Current price CAD$13.68* Shares outstanding ~33.3M Market capitalization ~CAD$456.0M 52-week range CAD$12.00 - $15.36* Annual dividend CAD$0.31 per share** Current yield 2.3% * Source TSX, as of February 22, 2022 ** Effecti
Slide 19: High Liner Foods
High Liner Foods Over 120 years of seafood expertise 2017 Rubicon 2022 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 ~172M LBS based on current Lunenburg, NS (Canada) shift patte
Slide 21: Species Diversity
Species Diversity Based on 2021 Purchases (in USD) • In 2021, the Company purchased approximately 157M lbs of seafood with an approximate value of $449.6M, reflecting approximately 24 species from 23 different countries. • Major species (7) accounted for ~92% of the total dollar purchases. © 2021 Hi
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 © 2021 High Liner Foods Incorporated 22 22
Slide 23: Appendix #2: Historical Financial Performance
Appendix #2: Historical Financial Performance © 2021 High Liner Foods Incorporated 23
Slide 24: 10 Year Sales History - Volume and USD
10 Year Sales History - Volume and USD Sold New Bedford Scallop business © 2021 High Liner Foods Incorporated 24
Slide 25: 10 Year EBITDA History
10 Year EBITDA History Earnings before Interest, Taxes, Depreciation & Amortization Sold New Bedford Scallop business *Please refer to the Company’s MD&A for Fiscal 2021 for definition of non-IFRS measures “Standardized EBITDA” and “Adjusted EBITDA” © 2021 High Liner Foods Incorporated 25
Slide 26: 10 Year EPS and ROE History
10 Year EPS and ROE* History Earnings per Share (EPS) and Return on Equity (ROE) Sold New Bedford Scallop business *Please refer to the Company’s MD&A for Fiscal 2021 for definition of non-IFRS measures “Adjusted Diluted EPS” and “Return on Equity” © 2021 High Liner Foods Incorporated 26
Slide 27: 10 Year Debt Leverage Ratio
10 Year Debt Leverage Ratio Net Debt to Rolling Twelve-Month Adjusted EBITDA* Sold New Bedford Scallop business Target (3.0x) *Please refer to the Company’s MD&A for Fiscal 2021 for definition of non-IFRS measure “Net Debt to Rolling Twelve-Month Adjusted EBITDA”. **Does not include rolling twelve-m
Slide 28: Thank you
Thank you © 2021 High Liner Foods Incorporated 28
Slide 29: © 2021 High Liner Foods Incorporated
29 © 2021 High Liner Foods Incorporated
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