Post Holdings, Inc. · NYSE:POST
Post — Investor Presentation (August 2015)
34 slides from Post's investor presentation, Aug 10, 2015
Slide 1: Post Holdings, Inc. Investor Presentation
Exhibit 99.2 Post Holdings, Inc. Investor Presentation August 2015
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 is intended to facilitate discussions with potential investors regarding offerings of securities of Post Holdings, Inc. (“Post,” the “Company,” “we,” “us,” or “our”). This present
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain matters discussed in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current expectations of Post and are subject to uncertainty and chang
Slide 4: Additional Information
Additional Information Non-GAAP Financial Measures While the Company reports financial results in accordance with accounting principles generally accepted in the U.S., this presentation includes the non-GAAP measure Adjusted EBITDA for Post on both a historical and forecast basis, neither of which i
Slide 5: Additional Information (Cont’d)
Additional Information (Cont’d) Market and Industry Data This presentation includes industry and trade association data, forecasts and information that was prepared based, in part, upon data, forecasts and information obtained from independent trade associations, industry publications and surveys an
Slide 6: Agenda
Agenda Topic Speakers Transaction Overview Barclays & Credit Suisse Rob Vitale Post Holdings Update President & Chief Executive Officer Post Holdings Jeff Zadoks Financial Update Chief Financial Officer Post Holdings Appendix
Slide 7: Transaction overview
1. Transaction overview 6
Slide 8: Transaction Overview
Transaction Overview Post Holdings, Inc. (NYSE: POST) (“Post” or the “Company”) is seeking to issue $600mm in New 8.5-Year Senior Notes, $600mm in New 10-Year Senior Notes, and $275mm New Equity (together, the “Transaction”) Proceeds from the Transaction will be used to refinance a portion of the ex
Slide 9: Sources & Uses and Pro Forma Capitalization Table
Sources & Uses and Pro Forma Capitalization Table Sources & Uses Pro Forma Capitalization ($ in mm) ($ in mm) Sources Status Quo Refinancing Pro Forma New Senior Notes (8.5-Yr) $600 6/30/15 Adjustment 6/30/15 New Senior Notes (10-Yr) 600 Cash $274 $254 $528 New Equity 275 Total Sources $1,475 Revolv
Slide 10: Post Holdings update
2. Post Holdings update 9
Slide 11: Introduction to Post Holdings
Introduction to Post Holdings Post Holdings is a consumer packaged goods (“CPG”) holding company, currently operating in four reportable segments: - 1 Post Consumer Brands – legacy Post Foods and legacy MOM Brands ready-to-eat (“RTE”) cereal businesses - 2 Michael Foods Group – egg, potato, cheese a
Slide 12: Post Holdings Evolution
Post Holdings Evolution Post has expanded in both its core category and established new platforms February 2012: December 2012: September 2013: February 2014: May 2015: Post completes tax-free Post acquires Post acquires Post completes the acquisitions of Golden Boy Post completes the spin-off from
Slide 13: Post’s Transformation to a Growing, Diversified Enterprise
Post’s Transformation to a Growing, Diversified Enterprise 2013 2015 Slight diversification Diversified consumer products enterprise Participant in three categories Multi-category participant Initial entry in growing categories Categories with dynamic growth prospects Net sales of $1.0bn (1) June 30
Slide 14: Investment Highlights
Investment Highlights Strong, defensible free cash flow Business model focused on strong cash generation Leading market positions in each of our primary categories Diversified broadly with respect to: Channels of distribution Secular themes in food Efficient capital allocation and balance sheet mana
Slide 15: Business Model Focused on Strong Cash Generation
Business Model Focused on Strong Cash Generation Key Cash Flow Characteristics Illustrative Free Cash Flow (“FCF”) Calculation ($ in mm) (1) 1 Recurring revenue stream supported by Post LTM 6/30/2015 Adjusted EBITDA $602 (2) Acquired American Blanching Adjusted EBITDA 6 strong or growing market posi
Slide 16: Leading Market Positions in Each of Our Primary Categories
Leading Market Positions in Each of Our Primary Categories Post Consumer Brands(1) Michael Foods Group(2) Active Nutrition Private Brands Group(3) Foodservice Retail #1 value-added eggs; #1 refrigerated ~60% market share potatoes; 37% market share Strong #3 RTE cereal; #1 processed egg products; ~49
Slide 17: Highly Diversified Cash Flows: Channels of Distribution
Highly Diversified Cash Flows: Channels of Distribution Food / Drug / Mass Club Dollar Natural and Organic QSR Specialty Foodservice Online
Slide 18: Highly Diversified Cash Flows: Secular Themes in Foods
Highly Diversified Cash Flows: Secular Themes in Foods Away From Home Portable Private Label Brands Health and Wellness Private Label Granola Portfolio Insulated From Dietary, Lifestyle and Economic Shifts
Slide 19: Provides Attractive Risk-Adjusted, Leveraged Returns
Provides Attractive Risk-Adjusted, Leveraged Returns Strong cash flow enables long-term leverage target of 5x Adjusted EBITDA Willing to “flex” to capitalize on an opportunity to execute strategic and/or transformational M&A Demonstrated ability to use multiple securities to maintain reasonable leve
Slide 20: Demonstrated Success in M&A
Demonstrated Success in M&A Performance vs. Asset Key Highlights Acquisition Case Growth in health and wellness sector and success in new product introduction Rapid growth in revenue and cash flow since ownership Restored customer base and profitability Consolidation of private label peanut butter,
Slide 21: Positioned to Expand Existing Platforms or Pursue Additional Platforms
Positioned to Expand Existing Platforms or Pursue Additional Platforms Post Holdings Holding company structure Distinct M&A focus • Execution • Integration Post Consumer Brands Michael Foods Active Nutrition Private Brands Optimal Optionality
Slide 22: Decentralized Business Model
Decentralized Business Model Decentralized corporate structure enhances operational flexibility Business unit leaders drive performance with ability to react to market opportunities more rapidly Entrepreneurial ownership mentality and compensation structure Greater accountability Centralized functio
Slide 23: Talented Management Team Across the Organization
Talented Management Team Across the Organization Post Holdings Name & Title Previous Experience Bill Stiritz Has previously served as CEO of Post Holdings and as CEO of Ralston Purina for over 20 years, and Executive Chairman executed more than 14 spin and divestiture transactions to create sharehol
Slide 24: Financial update
3. Financial update 23
Slide 25: Update on Fiscal Q3 2015
Update on Fiscal Q3 2015 Q3 2015 Update On August 6, 2015, Post reported results for the fiscal quarter ended June 30, 2015 (1) +91% +114% Increase driven by businesses acquired after June 30, 2014 and the lapping of partial period results in Q3 2014 from Michael Foods, acquired on June 2, 2014 Adju
Slide 26: Overview of Avian Influenza Impact on Post Holdings
Overview of Avian Influenza Impact on Post Holdings Initial outbreak of avian influenza occurred in April 2015 Our response was to control costs and work closely with the entire supply chain – including farms, production and customers – in an effort to remedy the supply situation in a fair and reaso
Slide 27: Post Holdings Historical Financial Summary
Post Holdings Historical Financial Summary Significant top line growth driven by acquisitions and entry into growth categories Expanded into additional channels including foodservice and online Business model focused on increasing cash flow generation Reported FY Ended September 30, ($ in mm) 2012A
Slide 28: Post Holdings Adjusted EBITDA Bridge
Post Holdings Adjusted EBITDA Bridge Pro Forma Adjusted EBITDA (1) ($ in mm) (2) $50 $96 LTM Q3 LTM Q3 LTM Q3 2015 2015 2015 (1) Please see Appendix for a full reconciliation. (2) In connection with the acquisition of MOM Brands, the Company expects to recognize $50mm in run-rate synergies by the se
Slide 29: Appendix
Appendix 28
Slide 30: Post Historical Financials Reconciliation
Post Historical Financials Reconciliation ($ in mm) Fiscal Year Fiscal Year Fiscal Year Fiscal Q3 LTM Ended Sep 30 Ended Sep 30 Ended Sep 30 Ended Jun 30 2012 2013 2014 2015 Operating profit (loss) $ 139.1 $ 107.8 $ (207.7) $ (68.7) Depreciation and amortization 63.2 76.8 155.8 258.6 EBITDA $ 202.3
Slide 31: Post Historical Financials Reconciliation (Cont’d)
Post Historical Financials Reconciliation (Cont’d) ($ in mm) Fiscal Q3 Fiscal Q3 Ended Jun 30 Ended Jun 30 2014 2015 Operating profit (loss) $ 8.0 $ 81.3 Depreciation and amortization 42.7 70.4 EBITDA $ 50.7 $ 151.7 Stock compensation 3.6 3.5 Transaction costs 12.4 5.4 Integration costs 2.9 4.4 Rest
Slide 32: Post Historical Financials Reconciliation (Cont’d)
Post Historical Financials Reconciliation (Cont’d) ($ in mm) Fiscal Q3 LTM Ended Jun 30 2015 Reported Adjusted EBITDA $ 601.6 American Blanching Company Adjusted EBITDA 6.3 Mom Brands Adjusted EBITDA 95.8 Pro Forma MOM Brands Synergies 50.0 Pro Forma Adjusted EBITDA $ 753.7 Note: Post prepares Pro F
Slide 33: Adjusted EBITDA Acquisition Adjustments (Partial Year)
Adjusted EBITDA Acquisition Adjustments (Partial Year) Twelve Months Ended June 30, 2015 ($ in mm) American Blanching MOM Brands(2) Company (1) July 1, 2014 June 29, 2014 through through October 31, 2014 May 3, 2015 Earnings (Loss) Before Tax $ 4.6 $ (7.2) Depreciation and amortization 1.0 47.6 Inte
Slide 34: Post Holdings, Inc.
Post Holdings, Inc. 33