Superior Plus Corp · TSX:SPB
Superior Plus — Investor Day (September 2012)
34 slides from Superior Plus's investor day presentation, Sep 10, 2012
Slide 1: US Refined Fuels Investor and Analyst Update
4•II 1 Superior Plus US Refined Fuels Investor and Analyst Update September 10, 2012 los ell e- sa e tIo(9 40 1 461' 60 . Building on a Stable Foundation
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information included in this presentation is forward-looking, within the meaning of applicable Canadian securities laws. Forward- looking information includes, without limitation, statements regarding business strategy, market conditions, projected costs, capital e
Slide 3: Agenda
Agenda 4•`11 1 Superior Plus • US Refined Fuels Overview - Greg McCamus, President • Operational Overview - Keith Wrisley, VP Operations • Sales and Marketing - Monte Bambrough, VP Sales and Marketing 2 Building on a Stable Foundation
Slide 4: Organization Chart
Organization Chart 14•`11 Superior Plus Greg McCamus President I I Monte Bambrough Janice Jones Keith Wrisley Inder Minhas VP Sales & VP Human VP Operations VP Finance & IT Marketing Resources d Mark Turley VP Supply & Marketing Director Transportation d Director Wholesale 5 Regional Sales Managers
Slide 5: USRF Overview
USRF Overview •`11 Superior Plus • 3 Key Acquisitions 2009/10 • 471M gallons annual volume • 212,000 customers - 91% retail • Full Service offerings - HVAC install and service • Albany yracuse - Commercial fuels Binghamton • - Electricity Scranton • Well maintained Assets ew York State College. - Fo
Slide 6: Market Dynamics
Market Dynamics 4•`11 1 Superior Plus • Heating oil is in structural decline • Propane has separated from oil and has become more attractive • Natural gas has attractive economics but it will be difficult to reach most of our customers • Commercial Fuels, HVAC/R service present opportunities to grow
Slide 7: USRF Superior Value Proposition
USRF Superior Value Proposition 4•`11 1 Superior Plus • For Customers - One stop shop for energy needs • "We've got you covered" - Safe and dependable supply - Increased value through bundled discounts • For Investors - Unique position in US Northeast market - Ability to grow in propane, service, el
Slide 8: USRF Key Strategic Initiatives
USRF Key Strategic Initiatives 4•`11 1 Superior Plus • Investment in Sales and Marketing to drive organic customer growth - New expanded sales team driving residential acquisition - New commercial sales initiative • Expand capabilities in the Propane business - Longer term, higher value customer - N
Slide 9: USRF Key Strategic Initiatives
USRF Key Strategic Initiatives 4•`11 1 Superior Plus • Create a consistent, meaningful brand - Transition to Superior Plus Energy Services brand • Reduce Operating costs per gallon through improved efficiency - Consolidated HQ and back office in Rochester - Improved purchasing, supply, and operating
Slide 10: Competitive Positioning and Strategy
Competitive Positioning and Strate lk •11 Superior Plus High Large Propane MLP's Superior Plus Pricing Superior Plus Low Small Locals Low Breadth of Service Offerings High Building on a Stable Foundation
Slide 11: Operations
14 II • Superior Plus Operations Keith Wrisley 10 Building on a Stable Foundation
Slide 12: USRF Operations Customer Centric Decentralized Operations
II I I I I ■■ e • .6_ USRF Operations Customer Centric Decentralized Operations •`11 Superior Plus V.P. Operations Director V.P. Supply & General Manager General Manager General Manager Director Wholesale Director Health & Engineering Transportation New England New York Mid Atlantic Safety 2 Regiona
Slide 13: Operating Assets to Meet Current and Future Customer Requirements
Operating Assets to Meet Current and Future Customer Requirements 4•`11 1 Superior Plus • Terminals and storage capability - Rochester, NY 10.5mmgal - Big Flats, NY 5.7mmgal - Marcy, NY 12.0mmgal - Montoursville, PA 4.6mmgal - Stevensville, ON 265mgal Propane • Product transportation capabilities -
Slide 14: 27% of Volume Generates 72% of Gross Profit
27% of Volume Generates 72% of Gross Profit lk Superior Plus Total Volume by Product - 2011 Total Revenues by Product - 2011 2% 10% 8% 17% 18% 41% ■ Diesel ■ Diesel ■ Gasoline ■ Gasoline ■ Heating Oil ■ Heating Oil ■ Propane 33% ■ Propane ■ Service Gross Profit by Product - 2011 14% 19% -1111•Plk ■
Slide 15: Residential Customers Generate 61% of the Gross Profit
Residential Customers Generate 61% of the Gross Profit 14 II • Superior Plus Volume by Customer Type - 2011 Revenues by Customer Type - 2011 2% 11% 19% 11% 20% Residential • Residential ■ Commercial 20% ■ Commercial Wholesale 50% ▪ Wholesale 47% --1Dealer ■ Deafer ■ Service Gross Profit by Customer
Slide 16: Seasonal Retail Gross Profit Contribution
Seasonal Retail Gross Profit Contribution • Superior Plus lb, *41 Volume and Degree Days by Month Gross Profit by Month — Retail — Volume — Commercial — Degree Days — Wholesale 1ti 11 N 1. N 1>. 1)' $9 <(e, `Sat v,9 oz. s! ck; czN OI L c)e, 4<.- 4, 234; . S" , 0.0 0 .;) Unit Margins by Month —Retail
Slide 17: Core Market is Outside Urban Areas, #1 or #2 Market Share
Core Market is Outside Urban Areas #1 or #2 Market Share 14 II • Superior Plus Delivery- 40 mile radius from supply point Suburban metro and rural areas #1 or #2 market share. Will Call Automatic Total I w Will Call 25.6% C ra 0_ Automatic 74.4% 2 Ci_ Total 16 Building on a Stable Foundation
Slide 18: New Home Construction Moved Away From Heating Oil in 1970
New Home Construction Moved Away From Heating Oil in 1970 14 'II • Superior Plus Weekly Heating Oil and Propane Prices (October - March) All Houahoids 0 1949 or Before 19 4.0 'k g° to .1959 =1 3.5 1NO tu 15E9 3.0 4970 to 979 III 2.5 t9))0 to i989 4 2.0 159Diu 1991 I 4 1.5 1.0 0 20 40 Porcut of 0.5 I
Slide 19: Natural Gas Growth Consumption by Electric Generation
Natural Gas Growth Consumption by Electric Generation • Superior Plus Figure 9. Natural gas consumption for electric power generation in 2011 difference from 5-year (2006-2010) , • 832 pipeline projects average completed in the last 10 years in the NE 111 Wita • 9083 MMcf/d of capacity laidi0". b •
Slide 20: Natural Gas Growth in Core Residential Markets is <1%
Natural Gas Growth in Core Residential Markets is <1 oh, • Superior Plus Number of Natural Gas Consumers Count 5,000.000 4.000.000 3,000.000 2.000.000 1,000.000 1986 1988 149 0 1992 1994 1996 1998 2000 20102 2064 20106 2008 2410 — Pennsylvania Natural Gas Number of Residential Consumers — New York N
Slide 21: Commercial Natural Gas Growth in Core Markets is Flat
Commercial Natural Gas Growth in Core Markets is Flat 14 `I • Superior Plus A Number of Natural Gas Consumers Count 400,000 350 000 300 000 250 000 Pennsylvania Natural Gas Number of Commercial Consumers - Sales Year 201:16 210.101 Count •-• 200 000 150 000 100.900 SO IMO 4 1998 2001:1 2002 2944 20
Slide 22: Refinery Pipeline Terminal Customer
Refinery Pipeline Terminal Customer 4• 1 Superior Plus • Pipelines - Buckeye Pipeline: Linden, NJ to Upstate NY/PA - Atlantic Pipeline/Sunoco Logistics: Philly to Central PA & Upstate NY - Laurel Pipeline/ Buckeye Pipeline: Philadelphia to Western PA • Refineries - Philadelphia / Delaware / NJ / Wes
Slide 23: NE Pipeline System Allows Gulf Coast Product into Core Distillate Markets
NE Pipeline System Allows Gulf Coast Product into Core Distillate Markets Superior Plus eve York dell Paulsboro * Cale:1=4.J rg D era wa re C y WASHINGTON MC • York-Iowa sleigh 'VI' n gicift E. END: final na Inter-Country oil pipeline label — Oil pipeline Oil pipeline (plannediunder construction) --
Slide 24: Key Pipeline and Terminals for USRF Operations
Key Pipeline and Terminals for USRF Operations • Superior Plus lb, *41 Brev.iertown Tona.wa.n da • • (Buffalo) Rochester Liwerponl Van Buren (Syracuse) Batayia Cohactia Binghamton Buckeye eFtevelan.d Scratch ina .H..,111.0 1% PI Williamsrum Hudson TO11 n g St in Akron Northumberland Newark Beaver Pi
Slide 25: North American Products by Supplier
North American Products by Supplier 4•`11 1 Superior Plus Pipeline Rack Total % Sunoco 81 mmgal 126 mmgal 207 mmgal 61% COP 62 mmgal 1 mmgal 63 mmgal 19% Other 21 mmgal 45 mmgal 66 mmgal 20% Propane Sarnia 24.7mmgal 41% Teppco 14.5mmgal 25% Rail/other 14.6mmgal 25% Cavern 5.4mmgal 9% 24 Building on
Slide 26: USRF Opportunities for Growth
USRF Opportunities for Growth 4•`11 1 Superior Plus • Residential Propane (Heat/Hot Water/ Cooking) • Portable Propane (Landscaping / Auto Fuels / Commercial Vehicles) • HVAC/R Service • Commercial Gasoline/Diesel/Propane • Natural Gas and Electric offerings • Operational Efficiencies 25 Building on
Slide 27: Sales & Marketing
4•`11 1 Superior Plus Sales & Marketing Monte Bambrough Building on a Stable Foundation
Slide 28: Sales & Marketing Team
Sales & Marketing Team 4•`11 1 Superior Plus VP Sales & Marketing Marketing Analyst Director Sales Manager Sales Manager Sales Manager Sales Manager Sales Manager Eastern NY Western NY Mid Atlantic Pennsylvania New England 27 Building on a Stable Foundation
Slide 29: Sales & Marketing Focus
Sales & Marketing Focus • `11 Superior Plus • Residential field sales productivity • Bundled energy solution • 800-HEAT - NOW. superiorpfusenergy.co m • 4 ,i „... Superior Plus ca n Energy Services • Commercial business growth • Customer retention 401-467, 6510 • ,LM., ”0, P , O 5one•91,,,,,73 Super
Slide 30: Residential Energy Solutions Reps Compensation
• `11 Superior Plus • Residential Energy Solutions Reps compensation - New customer acquisition focus - Tied to customer Net Present Value - Accelerators at 100% & 120% to goal - Rewards selling bundles • Regional Sales Management - Prospecting activity expectations & accountability - Coaching & bes
Slide 31: Residential Sales Marketing Initiatives
• `11 Superior Plus • Residential sales marketing initiatives 14 Shop. Switch. Save. - Employee referral portal We've Got You Covered. - Seasonal Power Fuels focus - Propane conversion program ntsuperiorplusenergy.comielectricity " ;Oh -0■1 .0. rcul:IRI:norel or ycur pl?Rnr td - Web marketing - Cent
Slide 32: Commercial Sales Growth
Commercial Sales Growth • Superior Plus • Addition of Commercial Energy Solution Reps • Integrated lead generation SO OD US ICC, ME a kpeor lincrgm MI WM gem a9.107. - 24 SIC's IftlalesprIlwallsaumicrizenbleNfiatalllOhluepfiellske usiemponotwalsetaxiwomearmatemonnarrat isiN ono= miseremeroomaimmanek
Slide 33: Customer Retention Initiatives
Customer Retention Initiatives 4•`11 1 Superior Plus • Marketing Coordinator, Customer Experience & Retention - Regional Customer Service Rep support - Standardized best practices, training, scripts & sales tools • Move in/Move out opportunities - Internal web portal solution - Visibility & accounta
Slide 34: Strong market position
4•`11 1 Superior Plus • Strong market position • Oil is declining but not overly vulnerable to natural gas • Positioned to take advantage of transition from heating oil to propane • Opportunities to grow in propane, commercial fuels and services • Bundled strategy sets us apart • Focused on executio