Post Holdings, Inc. · NYSE:POST
Post — Investor Presentation (May 2023)
34 slides from Post's investor presentation, May 18, 2023
Slide 1: Investor Presentation
Investor Presentation May 18, 2023
Slide 2: Important Notice Regarding the Information Contained in this Presentation
Important Notice Regarding the Information Contained in this Presentation The information contained in this presentation, unless otherwise noted, is as of May 4, 2023 and is intended to facilitate discussions with investors and potential investors of Post Holdings, Inc. (“Post,” “Post Holdings,” the
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Certain matters discussed in this presentation and any discussions with potential (including raw materials, energy and other supplies and freight); investors are forward-looking statements within the meaning of the Private Securities Litigati
Slide 4: Cautionary Statement Regarding Forward-Looking Statements (Cont'd)
Cautionary Statement Regarding Forward-Looking Statements (Cont’d) (CONTINUED FROM PRIOR PAGE): including certain indemnification obligations under the restaurants sale agreement and Bob Evans’s payment and performance obligations as a guarantor for certain • Post’s ability to identify, complete and
Slide 5: Additional Information
Additional Information Non-GAAP Financial Measures Post uses Adjusted EBITDA, free cash flow, net leverage and Post’s illustrative multiple, In this presentation, Post provides its Adjusted EBITDA guidance for fiscal year 2023, its all of which are non-GAAP measures, in this presentation to suppleme
Slide 6: Additional Information (Cont'd)
Additional Information (Cont’d) Prospective Financial Information The prospective financial information provided in this presentation regarding Post’s Post’s net leverage, Post’s illustrative multiple, Post’s estimated increase in cash future performance, including Post’s Adjusted EBITDA and capital
Slide 7: Additional Information (Cont'd)
Additional Information (Cont’d) Market and Industry Data This presentation includes industry and trade association data, forecasts and Airly® and Oat Clouds® brands are currently the property of, or are under license by, information that were prepared based, in part, upon data, forecasts and informa
Slide 8: A Holding Company of Consumer Operating Companies
A Holding Company of Consumer Operating Companies • Post Holdings is a consumer packaged goods/food holding company • Currently, Post owns five platforms: four consolidated and one separately reported Consolidated Non-Consolidated • Post Consumer Brands • 8th Avenue (majority ownership) • Weetabix/I
Slide 9: Post Holdings: Current Businesses
Post Holdings: Current Businesses Consolidated Non-Consolidated (1) WEETABIX REFRIGERATED POST CONSUMER BRANDS FOODSERVICE (INTERNATIONAL) RETAIL North American RTE cereal, Peter Pan peanut Primarily United Primarily Primarily side dish, Nut butters, healthy butter, dry and wet food and treat produc
Slide 10: How Post Differs From Other CPG Companies
How Post Differs From Other CPG Companies • Post does not pay a dividend, and it generally operates at higher leverage levels • Maintaining higher leverage avoids excess equity. Not paying a dividend enables generally higher leverage by forgoing fixed commitments for its cash flow • Post returns cap
Slide 11: BellRing Brands: A Case Study
BellRing Brands: A Case Study • From September 2013 through October 2014, Post acquired Premier Protein, Dymatize and PowerBar for ~$700mm. These brands combined to form Post’s historical Active Nutrition segment and eventually became BellRing (NYSE: BRBR). • From October 2014 through October 2019,
Slide 12: 8th Avenue Food & Provisions: A Case Study
8th Avenue Food & Provisions: A Case Study • From 2012 through 2018, Post acquired nut butter, healthy snacks (granola and dried fruit and nut) and pasta businesses for ~$950mm, which combined to form Post’s historical Private Brands segment and ultimately became 8th Avenue. • From 2012 through 2018
Slide 13: Post Holdings Partnering Corporation: A Case Study
Post Holdings Partnering Corporation: A Case Study • Post is highly respected with regard to its ability to allocate capital into attractive assets. • One such asset is Post itself - hence an aggressive share buyback strategy. • To leverage the investment capabilities which compete with buybacks for
Slide 14: Growth Algorithm
Growth Algorithm (Past) POST HOLDINGS, INC.
Slide 15: Summary
Summary • Post’s capital allocation is grounded in a baseline performance that generates low teens share price CAGR • 3-4% Adjusted EBITDA growth • Free cash flow (“FCF”) used to retire debt • Against this baseline, management considers allocation toward: • M&A • Share buybacks • All following analy
Slide 16: Illustrative Value – Next Five Years
Illustrative Value – Next Five Years Illustrative Enterprise Value ($ in billions) Equity Value Net Debt $14.5 (1) $12.0 $3.1 $6.1 $11.4 $6.0 Post Today Illustrative Post (May 5) in 5 Years ($ in millions, except share price and illustrative multiple) Enterprise Value Creation Net Debt Reduction Equ
Slide 17: 5 Year Algorithm
5 Year Algorithm Target Adjusted EBITDA Segment Rationale Growth • Stable revenues with cost reduction Post Consumer 3-4% provided by recent M&A Brands • Network optimization • Margin expansion via mix moving to greater value add Foodservice 3-4% • Volume growth mean reversion • Returns on capital a
Slide 18: Free Cash Flow Generation
Free Cash Flow Generation Key Cash Flow Characteristics Illustrative Free Cash Flow(1) Calculation ($ in millions) • Recurring revenue stream Post Forecasted Adjusted EBITDA (1)(2) (1)(3) $ 1,110 Annualization of Pet Food Adjusted EBITDA Contribution 60 supported by strong or growing Pet Food Run Ra
Slide 19: Debt Maturity Ladder: 100% Fixed Rate with No Maturities until 2026
Debt Maturity Ladder 100% Fixed Rate with No Maturities until 2026 Debt Maturities by Calendar Year(1) ($ in millions) Revolving Credit Facility (Undrawn) (1) (2) Cash generation enables deleveraging below 3x, offset by 6.00% Term Loan due Apr. 2026 capital allocation in favor of share buybacks and
Slide 20: Business Overviews
Business Overviews (Past) POST HOLDINGS, INC.
Slide 21: Post Consumer Brands ("PCB"): Overview
Post Consumer Brands (“PCB”): Overview • PCB is a scale level platform for ambient food products • RTE cereal • Peanut butter • Pet food • Operates as two divisions – Grocery and Pet • PCB is the combination of: • Post Foods – separated from Ralcorp in 2012 • MOM Brands – acquired in 2015 • Weetabix
Slide 22: Post Consumer Brands: North America RTE Cereal
Post Consumer Brands: North America RTE Cereal • Strong #3 in category(1) • Branded dollar market share of 20%(1) • Branded volume market share of 23%(1) • #1 in the value segment(2) • #1 in the bag segment, with dollar and volume market share of ~75%(2) • #1 provider of private label RTE cereal(3)
Slide 23: Post Consumer Brands: Peanut Butter
Post Consumer Brands: Peanut Butter • Peter Pan is the #2 nut butter brand in core Southeast markets(1) • Core Southeast markets dollar market share of 13.5%, up 3%(1) • Key competitor brands • Jif • Skippy • Justin’s • Private label • Category barriers to entry • Complex supply chain practices arou
Slide 24: Post Consumer Brands: Pet Food
Post Consumer Brands: Pet Food • Leading dog and cat food brands in the value, mainstream and entry premium sub- categories • Large, growing category supported by secular consumer trends • Key brands • Rachael Ray Nutrish • 9Lives • Kibbles `n Bits • Nature’s Recipe • Gravy Train • Pet platform prov
Slide 25: Weetabix/International: Overview
Weetabix/International: Overview • Weetabix, like PCB, is a scale ambient platform with a predominantly U.K. and European focus • Weetabix was acquired in 2017. In 2022, it added UFIT, a ready-to-drink protein beverage provider • The flagship Weetabix brand holds the #1 brand position(1). Weetabix a
Slide 26: Foodservice: Overview
Foodservice: Overview • In 2014, Post acquired Michael Foods, the nation’s largest provider of value-added eggs and potatoes for foodservice and retail channels • When Post acquired Bob Evans Farms in 2018 it created two pure channel plays with Michael Foods in foodservice and Bob Evans managing ret
Slide 27: Foodservice: Value-Added Egg Products
Foodservice: Value-Added Egg Products • Foodservice historical category growth rate of ~4%(1) • #1 foodservice provider with greater than 50% market share(1) • Key competitors • Cargill • Deb El Food Products • Category barriers to entry • Highly complex and costly supply chain • Cost leadership • T
Slide 28: Foodservice: Value-Added Potatoes
Foodservice: Value-Added Potatoes • Foodservice historical category growth rate of ~4%(1) • #1 foodservice provider with ~75% market share(1) • Key competitor • Reser’s • Category barriers to entry • Costly supply chain • Cost leadership • Trade relationships 1. Management estimate. Does not reflect
Slide 29: Foodservice: Growth
Foodservice: Growth • Meaningful growth opportunities • Conversion ‘up the value chain’ to higher value-add, higher margin products • Volume growth through increase in away from home consumption • Expansion into other dayparts • Attractive value-proposition to foodservice customers • Diminished food
Slide 30: Refrigerated Retail: Overview
Refrigerated Retail: Overview • Post acquired Bob Evans Farms in 2018 and created a pure play retail business. • Refrigerated Retail is anchored by attractive dinner side dish products. Retail combination added breakfast side dishes – Bob Evans and Simply Potatoes. Side dishes have grown at 6%(1). B
Slide 31: Refrigerated Retail: Sides
Refrigerated Retail: Sides • Attractive product set across retail refrigerated potato and pasta side dishes, egg products and breakfast sausage • Brands: Bob Evans, Simply Potatoes, Egg Beaters, Crystal Farms • Leader in refrigerated side dishes(1) • Meaningful growth opportunity through increasing
Slide 32: Refrigerated Retail: Liquid Egg Products
Refrigerated Retail: Liquid Egg Products • #1 position, with 37% market share(1) • Key competitor • Private label • Category barriers to entry • Highly complex and costly supply chain • Cost leadership • Trade relationships • Strong brand recognition 1. Volume per IRI; market share last 52 weeks end
Slide 33: Refrigerated Retail: Quality of Mix Improves
Refrigerated Retail: Quality of Mix Improves Volume by Product at Acquisition (2Q’18) Volume by Product Current (2Q’23) Other Other 3% 1% Sausage Sausage 11% 11% Cheese 12% Cheese 16% Side dishes Side dishes 53% 43% Egg Egg 23% 27% Anticipated volume growth rates: ‒ Side dishes: 5% ‒ Egg: 1% ‒ Chees
Slide 34: Post Holdings, Inc.
POST HOLDINGS, INC.