High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Q1 2022 Earnings Presentation
29 slides from High Liner Foods's earnings presentation, May 2022
Slide 1: Investor Presentation
Investor Presentation May 2022
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 © 2022 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? Healthy - for people and the Over 120 years of seafood Well equipped to invest in our environment expertise business and build upon our leadership in branded value-added Attractive market demographics A North American leader in
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 © 2022 High Liner Foods Incorporated 9
Slide 10: Q1 2022 Performance
Q1 2022 Performance Net sales increased year-over-year reflecting pricing actions related to inflationary increases on input costs, higher sales volumes and favorable changes in sales mix. In Foodservice, sales volume was higher due to the impact of fewer COVID-19 restrictions on the Company's f
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 exacerbated by the invasion of Ukraine, inflationary pressures on raw material and ongoing uncertainty related to the
Slide 12: Q1 2022 YTD Sales Volume and Net Sales
Q1 2022 YTD Sales Volume and Net Sales Sales volume increased 3.6M lbs (5.2%) to 73.4M lbs In our foodservice business, sales volume was higher due to the impact of fewer COVID-19 restrictions on the Company's foodservice customers in 2022 as compared to 2021, partially offset by the impact of glo
Slide 13: Q1 2022 YTD Adjusted EBITDA
Q1 2022 YTD Adjusted EBITDA Earnings before Interest, Taxes, Depreciation and Amortization * Please refer to the Company’s MD&A for Q1 2022 for definition of non-IFRS financial measures “Standardized EBITDA” and “Adjusted EBITDA” Adjusted EBITDA increased $0.5M (1.8%) to $28.3M and decreased by 180
Slide 14: Q1 2022 YTD Earnings Per Share (EPS)
Q1 2022 YTD Earnings Per Share (EPS) * Please refer to the Company’s MD&A for Q1 2022 for definition of non-IFRS financial measure “Adjusted Diluted EPS” Adjusted Diluted EPS increased by $0.03 (7.5%) to $0.43 Adjusted Net Income increased by $1.0M (7.2%) to $15.1M reflecting the increase in Adjus
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 Q1 2022 for the definition of the non-IFRS financial measure “Net Debt to Rolling Twelve-Month Adjusted EBITDA” **Does not include the rolling twelve-month Adjusted EBITDA for
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 © 2022 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$11.39* Shares outstanding ~33.3M Market capitalization ~CAD$379.4M 52-week range CAD$11.09 - $15.36* Annual dividend CAD$0.40 per share** Current yield 3.5% * Source TSX, as of May 12, 2022 ** Effective No
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 Trading acquisition 2011 Name Change Company to High Liner acquisition 1986 Foods 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 shift patterns Lunenburg, NS (Cana
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 (6) accounted for ~78% of the total dollar purchases. © 2022 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 © 2022 High Liner Foods Incorporated 22 22
Slide 23: Appendix #1: Historical Financial Performance
Appendix #1: Historical Financial Performance © 2022 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 © 2022 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” © 2022 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” © 2022 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 measures “Adjusted EBITDA” and “Net Debt”. **Does not include rolling twelve-month Adjusted EBI
Slide 28: Thank you
Thank you © 2022 High Liner Foods Incorporated 28
Slide 29: Slide 29