Pet Valu Holdings Ltd. · TSX:PET
Pet Valu — Investor Presentation (August 2023)
16 slides from Pet Valu's investor presentation, August 2023
Slide 1: Investor Presentation
Investor Presentation August 2023
Slide 2: Disclaimers
Disclaimers Forward-Looking Information This presentation contains forward-looking information. Forward-looking information is provided as of the date of this presentation and is based on management’s opinions, estimates and assumptions in light of its experience and perception of historical trends,
Slide 3: Our Mission
Our Mission To be Canada’s preferred pet retailer delivering the products, care, expertise, and memorable moments that devoted pet lovers want…locally in stores and everywhere online. This presentation and any information contained herein may not be used, copied, reproduced, published, transmitted o
Slide 4: Investment Highlights
Investment Highlights Canada’s largest specialty pet retailer, in the resilient & growing pet industry Highly flexible, franchise-led operating model with small, adaptable formats to fit local needs Compelling and engaging retail experiences through in-store and digital channels Local pet authority
Slide 5: We are Canada's Largest Pet Specialty Retailer
We are Canada’s Largest Pet Specialty Retailer Unrivaled network across Canada with broad customer reach… …driving leading market share3 position 758 stores across 74% 75% of Canadians market 15% 18% 12% 10 provinces1 within 5km segment reach2 8% 8% 7% BC MB NB/NL & 7% 127 AB 26 QC SK 19/8 88 83 23
Slide 6: Pet Industry Has Delivered Consistent & Resilient Growth
Pet Industry Has Delivered Consistent & Resilient Growth Canadian Pet Industry Spend1 $12.9 C$ billions Pets & Pet Food Veterinary & Other Pet Services $7.6 Recession 9/11 $2.2 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 7: We Operate a Highly-Flexible, Franchise-Led Model
We Operate a Highly-Flexible, Franchise-Led Model Franchise Network 532 Stores1 Corporate Core 226 Stores1 All stores sized in small, Franchisees live and invest in their communities adaptable formats to fit Stores in every major location and market type Owner-operator model, with mandatory 40
Slide 8: Our Compelling & Engaging Retail Experiences Set Us Apart
Our Compelling & Engaging Retail Experiences Set Us Apart Welcoming Expert, compassionate Premium consumables offering; store environment advice strong proprietary brands Serves customers making Highly engaging Animal Care Premium consumables-focused offering a quick stop or those Experts (ACE
Slide 9: Local Pet Authority, Led by Experienced Leadership Team
Local Pet Authority, Led by Experienced Leadership Team Translating “Our Four Paws” into “Memorable Moments” Deeply Committed to supporting pets across Canada • Our Four Paws: Safety, Compassion, Expertise and Efficiency • Donated over $23M to local animal shelters and pet rescues since 2010 • We hi
Slide 10: Our Long-Term Growth Formula
Expand Our Our Long-Term 1 Store Network Growth Formula Opportunity to grow store count to 1,200+ Drive Same-Store Underpinned Sales Growth by the 2 Resilient & Build on proven strategies & growing digital channels Growing Canadian Pet Industry Enhance Operating Margins 3 Leverage investments in mod
Slide 11: Expanding Our Store Network
1 Expanding Our Store Network Store Count, by Type Drivers as at year-end Opportunity to grow store count to 6% CAGR 1,200+ locations over the long term 784-794 744 40-50 Identified locations in both new New Store Openings and fill-in markets for future growth 633 587 605 564 572 531 Growth to be le
Slide 12: Driving Same-Store Sales Growth
2 Driving Same-Store Sales Growth Same-Store Sales Growth Drivers Embedded growth from maturation of recently opened stores 18% 17% Growth in loyalty, enabled by digital investments 14% 11% Continued excellence in merchandising 7-yr average = 12% 11% 7-10% 8% Continued growth in omni-channel 7% Expa
Slide 13: Enhancing Operating Margins Through Proven Initiatives
3 Enhancing Operating Margins Through Proven Initiatives Purchasing Strength Increased Proprietary Improved Labour Increased Corporate From Procurement Brand Penetration Efficiency SG&A Leverage • 87% of products for Pet • Significantly higher margin • Upgraded customer service • Significant investm
Slide 14: Strong Financial Track Record
Strong Financial Track Record System-wide Sales (SWS) & Revenue Gross Profit & Margin (in millions) (in millions) SWS $369 $1,376 $352 Revenue $1,291 $287 $998 $1,017 $952 $231 $842 $776 $190 $206 $738 $677 $648 $574 37% 36% $529 37% 36% 36% 36% 2018 2019 2020 2021 2022 Q2 2023 2018 2019 2020 2021 2
Slide 15: Outlook
2023 2023 Growth from Outlook FY 2022 Outlook Same-Store Sales Growth +7-10% --- New Stores Openings 40-50 +5-7%1 Revenue $1,050-1,075M +10-13% Adjusted EBITDA $230-237M +7-10% Adjusted Net Income $1.60-1.66 +1-4% per Diluted Share Net Capital Expenditures $60M +$23M 1 Represents growth in total sto
Slide 16: Thank You
Thank You Contact Us: investors@petvalu.com (289) 806-4559 This presentation and any information contained herein may not be used, copied, reproduced, published, transmitted or redistributed, in whole or in part, without the prior written consent of Pet Valu Canada Inc. © 2023 Pet Valu Canada Inc. 1
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