Turning Point Brands, Inc. · NYSE:TPB
Turning Point Brands — Shareholder Meeting (April 2020)
21 slides from Turning Point Brands's shareholder meeting presentation, Apr 28, 2020
Slide 1: Annual Meeting
Turning Point Brands (NYSE: TPB) ANNUAL MEETING April 28, 2020 | NYSE: TPB | 5201 INTERCHANGE WAY, LOUISVILLE KY | TURNINGPOINTBRANDS.COM |
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each
Slide 3: TPB: Investment Highlights
TPB: Investment Highlights Turning Point Brands (NYSE: TPB) TPB Investment Highlights Resilient Core Business with Leading Brands • Smokeless Segment: Stoker’s is the leading value brand in tobacco chew with a long runway for growth in MST • Smoking Segment: Zig-Zag is the #1 premium rolling paper b
Slide 4: Active ingredients company developing and distributing iconic brands and products
We are an active ingredients company that develops and distributes iconic brands and products. BROAD PORTFOLIO OF ACTIVE INGREDIENT ALTERNATIVES AND BRANDS 4 | NYSE: TPB | 5201 INTERCHANGE WAY, LOUISVILLE KY | TURNINGPOINTBRANDS.COM |
Slide 5: Powerful Distribution Infrastructure
Distribution Infrastructure Turning Point Brands (NYSE: TPB) Powerful Distribution Infrastructure North American retail presence that reaches over ~210,000 outlets National Regional Product B2C B2B Distribution Sales Teams Sales Teams Distribution Distribution National sales team Regional sales team
Slide 6: Smokeless: Iconic Brand with Sustained Growth
Smokeless: Stoker’s Brand Equity Turning Point Brands (NYSE: TPB) Smokeless: Iconic Brand with Sustained Growth About Stoker's MST TUBS MST Cans Chew Building brand equity for Introduced a larger tub format Accelerating strength from #1 discount brand and #2 over 80 years. Stoker’s is Moist Snuff To
Slide 7: Smokeless: Continued MST Distribution Gains
Smokeless: Stoker’s MST Distribution Growth Turning Point Brands (NYSE: TPB) Smokeless: Continued MST Distribution Gains Long Runway for Growth 72.8 Currently in stores representing 70.4 ~55%* of volume weighted 68.3 66.1 67.6 61.4 61.6 61.3 62.3 63.2 63.1 distribution 57.0 57.7 58.0 52.2 48.1 Addit
Slide 8: Smoking: Iconic Brand with Leading Market Share
Zig-Zag: Brand Equity Turning Point Brands (NYSE: TPB) Smoking: Iconic Brand with Leading Market Share About Zig-Zag Papers Wraps New Product Launches Embedded into pop culture #1 premium rolling paper Market leader in MYO cigar Continued roll-out of paper with a storied history that brand sold in t
Slide 9: Smoking: Expanding Portfolio and Sales Channels
Zig-Zag: Growth Initiatives Turning Point Brands (NYSE: TPB) Smoking: Expanding Portfolio and Sales Channels Classic Zig-Zag Products Growth Initiatives New products and accessories Re-vamped e-commerce platform Enhanced brand Iconic Products with presence in headshops Unparalleled Recognition and d
Slide 10: NewGen: Distribution and Nu-X Synergies
NewGen Segment Turning Point Brands (NYSE: TPB) NewGen: Distribution and Nu-X Synergies Distribution Product Development B2B (Vapor Beast) and B2C (Direct Ideation, product development and Core Business Vapor, VaporFi) vape platforms selling marketing arm third-party and proprietary products Lower-M
Slide 11: NewGen: Nu-X Brands
NewGen: Nu-X Brands Rev. Streams Nu-X Ventures Brand Portfolio Wide range of products with a robust development pipeline Nu-X CBD Broad portfolio of CBD products and form factors currently in over 6,600 locations* nationwide Solace Product portfolio includes e-liquids designed for open system vape d
Slide 12: Management of Regulatory Environments
TPB: Navigating Regulated Environments Turning Point Brands (NYSE: TPB) Management of Regulatory Environments Extensive experience managing regulatory regime changes REGULATORY STRATEGY • TPB does not sell cigarettes, the primary target of the FDA • Working with FDA to drive expected pathway for fut
Slide 13: Total Sales and Segment Breakdown
Segment Breakdown Turning Point Brands (NYSE: TPB) Total Sales and Segment Breakdown ($ in millions) 2016 2017 2018 2019 Smokeless Looseleaf $47 $49 $48 $46 MST same store sales and MST 31 35 42 54 distribution gains accelerating Total Smokeless $78 $85 $90 $100 Smoking US Papers $36 $38 $38 $38 Sta
Slide 14: TPB Earnings Performance
TPB: Financial Summary Turning Point Brands (NYSE: TPB) TPB Earnings Performance Adjusted EBITDA $69-75MM* $67.3MM $64.6MM $60.0MM $52.4MM 2016 2017 2018 2019 2020E *2020E estimate based on guidance provided on February 26, 2020 and re-affirmed on April 28, 2020 14 | NYSE: TPB | 5201 INTERCHANGE WAY
Slide 15: Building a Capital Efficient Business Model
Asset-Light Business Model Turning Point Brands (NYSE: TPB) Building a Capital Efficient Business Model Asset-light business model that generates significant free cash flow Initiatives: ADJUSTED FREE CASH FLOW AND INTEREST EXPENSE • Outsourced manufacturing of all products ($ in millions) Adjusted F
Slide 16: 2020 Community Initiative: Helping fight COVID-19
Our Community Initiative 2020 Community Initiative: Turning Point Brands (NYSE: TPB) Helping fight COVID-19 100,000+ 900+ Bottles have been donated Shipments made to to: households, recognized different pharmacies, medical institutions, medical associations and hospitals, retail partners and non-pro
Slide 17: How it all comes together
How it all comes together Turning Point Brands (NYSE: TPB) WORLD CLASS GO-TO-MARKET STRATEGY INTEGRATED HANDS-ON DISTRIBUTION MANAGEMENT Consolidated distribution into Management team is Kentucky with integrated hands on with product systems development and go-to- (1-2 days across the market strateg
Slide 18: 2020 In Focus: Strategies and Objectives
2020 Objectives Turning Point Brands (NYSE: TPB) 2020 In Focus: Strategies and Objectives Maximize the Core Business • Drive Stoker’s MST growth through increased distribution and same store sales growth • Expand Zig-Zag’s reach with new product introductions, channel specific strategies and e-comme
Slide 19: Appendix
Turning Point Brands (NYSE: TPB) Appendix | NYSE: TPB | 5201 INTERCHANGE WAY, LOUISVILLE KY | TURNINGPOINTBRANDS.COM |
Slide 20: GAAP Reconciliation
GAAP Reconciliation Turning Point Brands (NYSE: TPB) GAAP Reconciliation Reconciliation of GAAP Net Income to Adjusted EBITDA and Free Cash Flow ($ in millions) 2016 2017 2018 2019 Net income attributable to Turning Point Brands, Inc. $26.9 $20.2 $25.3 $13.8 Add: Interest expense, net $26.6 $16.9 $1
Slide 21: Thank You
Turning Point Brands (NYSE: TPB) THANK YOU | NYSE: TPB | 5201 INTERCHANGE WAY, LOUISVILLE KY | TURNINGPOINTBRANDS.COM |
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