Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — NBC's "Between Two Firms" Event 2021
34 slides from Lassonde Industries, Inc. Class A's conference presentation, Apr 12, 2021
Slide 1: NBC's "Between Two Firms" Event
LASSONDE INDUSTRIES INC. NBC’S “BETWEEN TWO FIRMS” EVENT Presentation to shareholders April 12, 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Caution regarding forward-looking statements Certain statements made in this presentation, including, but not limited to, statements regarding the prospects of the industry, plans, financial position, and business strategy of the Company may constitute forward-looking stat
Slide 3: Participants
PARTICIPANTS Jean Gattuso Guy Blanchette Eric Gemme Vince Timpano President and COO Former CFO and Vice Executive Vice President President and CEO of President Investors and CFO Lassonde Pappas and Relations Company Inc. 3
Slide 4: Bio of Vince Timpano and Éric Gemme
BIO OF VINCE TIMPANO AND ÉRIC GEMME Vince Timpano Mr. Timpano has a solid track record as a corporate officer with extensive commercial and operational experience. Over the past 20 years, he has served in various executive roles, including President, Global Coalitions at Aimia Inc., President of Coc
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Guy Blanchette Executive Vice President Investors relations
Slide 6: Financial Highlights – Fiscal 2020
FINANCIAL HIGHLIGHTS – FISCAL 2020 EARNINGS In millions of $ Years ended (except EPS) %Δ December 31 %Δ 2020 2019 2018 20 vs 19 19 vs 18 Sales 1,980.9 1,678.3 1,594.0 18.0% 5.3% Operating profit (EBIT) 151.9 100.8 105.2 50.7% -4.2% Operating profit/Sales 7.7% 6.0% 6.6% Profit 101.9 74.9 68.0 35.9% 1
Slide 7: Financial Highlights – Fiscal 2020: Earnings
FINANCIAL HIGHLIGHTS – FISCAL 2020 EARNINGS Sales of $1,980.9M, $302.6M (or 18.0%) vs $1,678.3M in 2019: • Excluding Sun-Rype and favourable FX impact, sales were up $113.9M or 6.8% year over year: • Increase in sales of private label products and favourable mix; • Partly driven by changes in food
Slide 8: Financial Highlights – Fiscal 2020: Earnings (cont'd)
FINANCIAL HIGHLIGHTS – FISCAL 2020 EARNINGS (CONT’D) Financial expenses of $17.3M in 2020 vs $19.5M in 2019, $2.2M: • Despite more than $80.0M invested to effect the Sun-Rype acquisition. “Other (gains) losses”: $0.8M gain in 2020 vs $19.2M gain in 2019: • The 2020 gain mostly results from the set
Slide 9: Consolidated Statements of Financial Position
FINANCIAL HIGHLIGHTS – FISCAL 2020 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION In millions of $ As at December 31 %Δ %Δ 2020 2019 2018 20 vs 19 19 vs 18 Non-cash working capital 154.3 188.1 196.2 -18.0% -4.1% Property, plant and equipment 390.5 334.5 305.6 16.7% 9.5% Total assets 1,381.6 1,310.2 1
Slide 10: Free Cash Flow Analysis
FINANCIAL HIGHLIGHTS – FISCAL 2020 FREE CASH FLOW ANALYSIS In millions of $ Years ended December 31 Variance 2020 2019 2020-2019 Free cash flow Profit 101.9 74.9 27.0 Adjustments Amortization and Depreciation 65.2 57.0 8.2 Pension plans, income tax and other 12.9 4.4 8.5 Change in non-cash working c
Slide 11: Financial Highlights – Q4-2020
FINANCIAL HIGHLIGHTS – Q4-2020 EARNINGS In millions of $ (except EPS) Fourth Quarters ended Dec. 31 Dec. 31 %Δ $Δ 2020 2019 20 vs 19 20 vs 19 Sales 515.1 432.1 19.2 % 83.0 Operating profit 38.9 25.0 55.9 % 13.9 Operating profit/Sales 7.6% 5.8% Profit attributable to shareholders 23.5 28.5 -17.3 % (5
Slide 12: Financial Highlights – Q4-2020: Earnings (cont'd)
FINANCIAL HIGHLIGHTS – Q4-2020 EARNINGS (CONT’D) Sales of $515.1M, $83.0M (or 19.2%) vs $432.1M in 2019: • ExcludingSun-Rype, sales wereup $34.9M year over year mainly due to an increase in sales of private label products and to selling price adjustments impacting national brands. Operating profit
Slide 13: Financial Highlights – Q4-2020: Earnings (cont'd)
FINANCIAL HIGHLIGHTS – Q4-2020 EARNINGS (CONT’D) Other (gains) losses”: $1.2M loss in 2020 vs $20.9M gain in 2019: • The Q4-20 loss mainly due to $1.8 million in FX losses; • The Q4-19gain was mainly due to a $20.8 million settlement of an insurance claim related to the acquisition price of Old Orch
Slide 14: Dividends and Outlook
DIVIDENDS AND OUTLOOK FISCAL 2021 Dividend: • Quarterly dividend to be declared on May 7 for Q2; • Historically, annualized dividend at 25% of the prior year’s profit attributable to shareholders. Outlook: • The Company’s adjusted sales were up 6.8% in fiscal 2020. Barring any significant external s
Slide 15: Lassonde: A Diversified Agribusiness Company in North America
LASSONDE : A DIVERSIFIED AGRIBUSINESS COMPANY IN NORTH AMERICA Jean Gattuso President and COO
Slide 16: Overview
OVERVIEW 2020 Sales: EBITDA: $1,981 M $217 M LASSONDE SNACKS LASSONDE LASSONDE PAPPAS A. LASSONDE ARISTA WINES (DIVISION OF SPECIALTIES AND COMPANY A. LASSONDE INC.) The Canadian Imports and markets Develops, leader in the Develops, Manufactures fruit- selected wines manufactures, and development, m
Slide 17: Our Brands
OUR BRANDS LASSONDE LASSONDE SNACKS LASSONDE A. LASSONDE ARISTA WINES PAPPAS AND (Division of A. SPECIALTIES Lassonde Inc.) COMPANY 17
Slide 18: Geographic Sales Distribution
GEOGRAPHIC SALES DISTRIBUTION $1,981 M 58% $537 M 6% 42% $1 M 92% 1970 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Canada U.S. Others 18
Slide 19: Our Network in North America
OUR NETWORK IN NORTH AMERICA 1 Calgary (AB) 7 Carver (MA) Cranberry receiving 2 Thornbury (ON) station 3 Toronto (ON) 8 Seabrook (NJ) 4 Rougemont, 9 Carneys Point (NJ) 6 1 5 Saint-Damase, Regional office 14 4 Boisbriand (QC) 2 Head office and 10 Mountain Home 3 7 multiple facilities (NC) 13 9 8 5 Po
Slide 20: Competitive Environment
COMPETITIVE ENVIRONMENT • The effects of the pandemic continues into the first quarter. • Growth in sales volumes of the fruit juice and beverage industry in 2020 and the first quarter of 2021, both in the U.S. and Canadian markets. • Little capacity available in the North American market. • Demand
Slide 21: Impacts of the Pandemic
IMPACTS OF THE PANDEMIC IMPACT ON FINANCIAL ACCOUNT - SALES COVID-19 IMPACTS RESULTS Volume Industry volume (retail) ≈ +5% Sales Retailers and distributors Increase to ≈ 91% of sales Sales (usually 87% of sales) Food Service Decrease to ≈ 9% of sales Sales (usually 13% of sales) Sales breakdown Mult
Slide 22: Corporate Strategy
CORPORATE STRATEGY Evolving towards a balanced portfolio mastering both beverages and food products. Offer Consolidate the right product in the right size at the right price Responsible development through ESG efforts Innovate 22
Slide 23: Consolidate
CONSOLIDATE Sun-Rype • Complete the installation of the Lassonde ERP system at Sun-Rype. • Finalize the alignment of operations and sales between Sun-Rype and A. Lassonde Inc. • Increase the distribution of Sun-Rype snack products in North America. Future • Lassonde will pursue its consolidation str
Slide 24: Right Product, Right Size, Right Price
RIGHT PRODUCT, RIGHT SIZE, RIGHT PRICE Juice is better than the fruit you don’t eat! Centered on consumer needs: • More than 3,800 unique products • Nearly 200 different formats are made in the Lassonde network 24
Slide 25: Innovate – Health & Hydration
INNOVATE – HEALTH & HYDRATION A few of our innovations in 2020-2021 Cidersand spritzers Snacks Immune health Juicesand drinks Sauces 25
Slide 26: Responsible Development Through ESG Efforts
RESPONSIBLE DEVELOPMENT THROUGH ESG EFFORTS Lassonde offers delicious and nourishing products to North American consumers, using operational practices oriented towards the respect and well-being of its employees and the fairness of its supply chain, while being sustainable for the environment. In or
Slide 27: Environment
ENVIRONMENT Key topics Packaging Water Circular economy 2019 2020 2021 2025 In-market test for paper Introduce paper Accelerate the Offer paper straws on straws on Oasis carton straws on two national deployment of paper 100% of our national juice brands: KIJU and straws (23% of our brands in C
Slide 28: Environment: Water
ENVIRONMENT Water Lassonde is a world leader in consumption of water per litre of beverage Litres consumed per 1 litre of beverage produced - 2020* Lassonde, Juice divisions 1,457 Major Global Producers 2 (beverage) 1 Brewing Industry, World 2 3,5 28 *Does not include Sun-Rype and Seabrook plants. 1
Slide 29: Social
SOCIAL Key topics Occupational health Food Safety Human capital Diversity and inclusion -27% Number of working days lost due to work-related accidents or occupational diseases in 2020, compared to 2019 4,666 hours of training completed on COVID-19 protection measures, teleworking, industry b
Slide 30: Social
SOCIAL Lassonde is committed to support: • Health and healthy lifestyles • Education • Food security • Charitable causes in North America including: • La Tablée des chefs • Mclane Global • Tel-jeunes • Daily Break Food Bank • United Way • Feeding America • Food banks • Warrior Food Project • Cancer
Slide 31: Governance
GOVERNANCE Key topics Provision of ESG reporting tools IT security and data protection Code of ethics Transparency Board of Directors composed of 38% women and our CEO is a woman The Company’s Code of Ethics must be aknowledged by all employees on an annual basis Whistleblowing processes in
Slide 32: Priorities 2020-2021
PRIORITIES 2020-2021
Slide 33: Follow-Up on 2020 Priorities
FOLLOW-UP ON 2020 PRIORITIES Manage the impacts of the COVID-19 crisis by minimizing the negative effects on the Company Adapt our organization to long-term changes in eating and drinking habits resulting from the COVID-19 crisis Increase the profitability of our U.S. activities Reap the benef
Slide 34: 2021 Priorities
2021 PRIORITIES Complete integration of Sun-Rype activities into Seamless transition at COO and CFO positions A. Lassonde Inc. to maximize acquisition synergies Maintain pace of margin growth of Lassonde Maintain the Company’s level of activity as the Specialties through emerging product lines and w
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