High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Investor Presentation (November 2011)
29 slides from High Liner Foods's investor presentation, November 2011
Slide 1: Investor Presentation
Investor Presentation November 2011 1
Slide 2: Disclaimer
Disclaimer Certain statements made in this ppresentation 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 ev
Slide 3: Listings Data
Listings g Data* TSX: HLF HLF.A Recent Price: $15.00 $13.06 52-Week Range $13 00 - $16.99 $13.00 $16 99 $12.00 $12 00 - $18.28 $18 28 Shares Outstanding ~13 13.3 3 million ~1 1.8 8 million Quarterly Dividend1 $0.10 $0.10 Current Yield1 2.7% 3.1% Total Market Cap: $223 million * As at Nov. 18, 2011 1
Slide 4: Historical Stock Performance
Historical Stock Performance $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $ $6.00 $4.00 $2.00 $- 2006 2007 2008 2009 2010 YTD Nov. High Low Close 18 2011 18,
Slide 5: About High Liner Foods
About High g Liner Foods One of North • Retail, club & food America’s America s largest service markets value-added frozen • Branded & private seafood companies label products
Slide 6: Our Business Model
Our Business Model Broadest market reach in industry Market leading brands Diversified global procurement Frozen food logistics expertise Innovative product development
Slide 7: Leading Market Positions
Leading g Market Positions 2X the size of largest competitor in retail & food service channels Largest grocery-chain supplier of private label processed seafood One of the largest food service suppliers of value- value added seafood Our size strengthens our ability to negotiate g prices p with our c
Slide 8: Financial Review
Financial Review 8
Slide 9: Fiscal 2010 in Review
Fiscal 2010 in Review Another year of strong earnings Success attributed to: Year was marked by •New products strong Canadian dollar dollar, •Lower commodity significant increase in costs t stock value value, late late-year year •Production acquisition efficiencies 9
Slide 10: Financial Review – Fiscal 2010
Financial Review – Fiscal 2010 Increased dividends by 17% during year to $0.40 per share on an annual basis*, the second increase over a nine-month period. period Adjusted EPS (diluted) rose by 40% due to improved operating results and the redemption of non-voting equity shares in second quarter of
Slide 11: Product Sales Volume in '000s of Pounds
Product Sales Volume in ’000s 000s of Pounds 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 0 2006 2007 2008 2009 2010 Q3 2010 Q3 2011 YTD YTD Procured Produced in High Liner facilities
Slide 12: Sales in Domestic $000s
Sales in Domestic $000s First fiscal year First fiscal y year with FPI with Viking $700,000 $600 000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2005 2006 2007 2008 2009 2010 Q3 2010 Q3 2011 YTD YTD
Slide 13: Sales as Reported in C$000s with Impact of FX
Sales as Reported in C$000s with Impact of FX on Reported Sales $700 000 $700,000 $600,000 $500 000 $500,000 $400,000 $300,000 $ , $200,000 $100,000 $0 2005 2006 2007 2008 2009 2010 Q3 2010 Q3 2011 YTD YTD* *CDN $ Sales reported Reduction to CDN $ from Domestic $ due to FX Domestic $ Sales reported
Slide 14: EBITDA (in C$000s)
EBITDA (in C$000s) $50 000 $50,000 $40,000 $30,000 $20,000 $ , $10,000 $0 2006 2007 2008 2009 2010* Q3 2010 Q3 2011 YTD YTD Standardized EBITDA Adjusted EBITDA; earnings before interest, taxes, depreciation and amortization, excluding business acquisition, integration and other expenses (income) and
Slide 15: Diluted EPS Based on Adjusted Net Income
Diluted EPS Based on Adjusted Net Income ((1)) 1.60 1.40 1.20 1.00 0.80 0 60 0.60 0.40 0.20 0.00 2006 2007 2008 2009 2010* Q3 2010 Q3 2011 YTD YTD ((1)) Adjusted j net income is net income excluding g business acquisition, q , integration g and other expenses p ((income), ), net of income tax * Rest
Slide 16: Return on Equity (ROE) Based on Adjusted Net Income
Return on Equity (ROE) Based on Adjusted Net Income((1)) 18% 16% 15.5% 14.0% 14% 12.8% 13.3% 12% 9.8% 10% 8% 8% 6% 4% 2% 0% 2006* 2007* 2008* 2009* 2010** 2011*** (1) Adjusted net income is net income excluding business acquisition, integration and other expenses (income), net of income tax (*) In a
Slide 17: Dividends per Share
Dividends per Share Annual Common/Non-voting* g Dividends per p Share $0.45 Purchase of Viking, Retraction of NVE Dec. 2010 $0.40 Shares, April 2010 $0.35 $0.30 Sale of NS Fishing, Purchase of FPI, Mayy 2003 Dec. 2007 $0 25 $0.25 $0.20 $0.15 $0.10 $0.05 $ $‐ 2003 2004 2005 2006 2007 2008 2009 2010 2
Slide 18: Outlook & Growth Strategy
Outlook O tl k & G Growth th Strategy gy 18
Slide 19: Our Vision
Our Vision The North American leader in value-added seafood *
Slide 20: Recognition for New Products
Recognition g for New Products 20
Slide 21: New Products
New Products FireRoasters™ - Flame-Seared Flame Seared Seafood Thick cuts of tilapia, tilapia cod or salmon + Six different seasoning blends + Unique flame-roasting process = WINNING NEW FOOD SERVICE PRODUCT 21
Slide 22: Outlook
Outlook Long-term growth influenced by strong demographics: North America • 45+ years of age has an aging, account for half of health-conscious seafood consumption p population • Health benefits tied to eating g fish 22
Slide 23: Outlook
Outlook • Fisheries recovering around the world • Added supply + slow l economic i growth th • Seafood costs are higher as are ingredients & other inputs – offset in Canada somewhat by strong dollar 23
Slide 24: Strategic Goals for 2011
Strategic g Goals for 2011 #1: SUSTAINABILITY Continue with effort to achieve objective of buying only certified sustainable seafood by 2013 24
Slide 25: Strategic Goals for 2011
Strategic g Goals for 2011 #2: PROFITABLE GROWTH • Product development • Market share growth • Acquisitions 25
Slide 26: Growth Strategy
Growth Strategy gy Organic g g growth • Develop new products Innovative value added products p High-quality, innovatively packaged raw products • Establish E t bli h new and d expand d existing i ti customer t relationships • Enter E t new, emerging i markets, k t such h as M Mexico i Drive cont
Slide 27: Growth Strategy
Growth Strategy gy Acquisitions • Seek acquisitions that will expand our product portfolio & strengthen our market leadership Strict acquisition criteria • Must be complementary to frozen seafood • Should be synergistic • Must M t leverage l our existing: i ti Leading brands Strong customer rela
Slide 28: Investor Presentation
Investor Presentation 28
Slide 29: Appendix: Seafood Consumption
Appendix: pp Seafood Consumption p % of total population % share of total seafood servings Source: NPD Group CREST research, August 2007 * Total Canada 29
High Liner Foods — Investor Presentation (November 2011) on 6ix