Post Holdings, Inc. · NYSE:POST
Post — Debt Investor Presentation (December 2013)
48 slides from Post's debt investor presentation, Dec 9, 2013
Slide 1: Post Holdings, Inc. Investor Presentation December 2013
Post Holdings, Inc. Investor Presentation December 2013
Slide 2: Important Notice Regarding the Information Contained in this Presentation
1 Important Notice Regarding the Information Contained in this Presentation This presentation is intended to facilitate discussions with representatives of these institutions regarding a potential offering of securities of Post Holdings, Inc. (“Post” or the “Company”). This presentation is not being
Slide 3: Forward-Looking Statements
2 Forward-Looking Statements Forward-looking statements are made throughout this presentation. These forward-looking statements are sometimes identified by the use of terms and phrases such as “believe,” “should,” “expect,” “project,” “estimate,” “anticipate,” “intend,” “plan,” “will,” “can,” “may,”
Slide 4: Forward-Looking Statements (cont'd)
3 Forward-Looking Statements (cont’d) You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the future results, levels of activity,
Slide 5: Additional Information
4 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 which is not in accordance with or a substitute for GAAP measures.
Slide 6: Additional Information (cont'd)
5 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
Slide 7: [Intentionally deleted]
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Slide 8: Transaction Overview
Transaction Overview 7 Sources & Uses Pro Forma Capitalization Note: We are currently exploring opportunities to enter into new credit facilities in amounts between $275mm and $350mm, which we would expect to be secured by all or a significant portion of our assets, subject to market conditions. How
Slide 9: Post Holdings, Inc. Overview
8 Post Holdings, Inc. Overview
Slide 10: Post Holdings Overview
Post Holdings Overview 9 Post Holdings, Inc. ("Post Holdings", "Post" or the "Company") is a consumer packaged goods company operating in center-of-the-store, active nutrition and private label categories As of December 9, 2013, parent company of Post Foods, LLC, Attune Foods, LLC and Premier Nu
Slide 11: High Growth Natural and Organic Category: Attune Foods/Hearthside Assets
10 Formed from two recent acquisitions, Attune Foods and certain assets of Hearthside Food Solutions Provides footprint and opportunity to participate in high growth natural, organic, non- GMO verified, branded and private label, cereal, granola and snack categories Hearthside assets bring a 4
Slide 12: High Growth Active Nutrition and Supplement Category
11 Premier Protein Established active lifestyle brand with leadership positions in both the shake and bar categories Offers convenient and nutritious products designed for mainstream consumers Products are uniquely formulated to deliver leading levels of protein while maintaining a lean nutr
Slide 13: Strong Cash Flow Generating Business: Dakota Growers Pasta Company
12 Strong Cash Flow Generating Business in a Stable Market Dakota Growers Pasta Company Leader in the North American pasta market with a vertically-integrated durum wheat milling and pasta production operation that manufactures over 150 different shapes of pasta Holds leading market positions ac
Slide 14: Evolution of Post Holdings
Evolution of Post Holdings February 2012: Post completes tax-free spin-off from Ralcorp Holdings and begins trading on the NYSE as a stand-alone company February 2012 December 2013 December 2012: Post acquires assets of Attune Foods, a maker of natural and organic cereals September 2013: Post announ
Slide 15: Platforms Creating Optionality
Platforms Creating Optionality Private Label Steady cash flow generation Market share growth opportunity Center-of-the-Store Active Nutrition Attractive, stable categories Centered on strong, iconic brands Robust margins, strong and consistent cash flow generation Increased exposure to o
Slide 16: Overview of Pending Acquisitions
15 Overview of Pending Acquisitions
Slide 17: Overview of Acquisitions Announced this Week
Overview of Acquisitions Announced this Week 16 Post Holdings to acquire Golden Boy Foods Ltd. ("Golden Boy") and Dymatize Enterprises, LLC ("Dymatize") for ~CAD320mm and ~$380mm, respectively Golden Boy has a portfolio of higher growth, higher margin organic and natural products Golden Boy pu
Slide 18: Acquisitions Consistent with Post's Long-Term Strategy and Existing Portfolio
Acquisitions Consistent with Post's Long-Term Strategy and Existing Portfolio 17 Private Label Active Nutrition Private Label Cereal Private Label Granola Current New Acquisitions
Slide 19: Expanding in Large and Growing Categories
Expanding in Large and Growing Categories 18 Global Active Nutrition Sales (1) U.S. Organic Packaged Food Sales (2) Source: Euromonitor RSP sales. (1) Global Active Nutrition Sales based on Euromonitor Sports Nutrition category. (2) U.S. Organic Packaged Foods RSP sales from Euromonitor. $3.0 $3.4 $
Slide 20: Golden Boy Overview
Golden Boy Overview 19 Fruit & Nut Products Overview Nut Butter Products Manufacturer, marketer and distributor of private label products: Peanut and other nut butters Snack nuts and dried fruits Significant business transformation since 2011 Focused on organic/natural products and nut but
Slide 21: Golden Boy Strategic Rationale
20 Nut Butter U.S. retail nut butter sales have grown at an average of 7% per year from 2007 to 2012 and are projected to grow an additional 6% annually between 2012 and 2017 (1) Category growth driven by increased consumption of specialty nut butters (almond, cashew) and innovation (natural a
Slide 22: Golden Boy Foods
Golden Boy Foods 21 Golden Boy’s fiscal year end is 12/31 Post estimates Golden Boy’s September 2013 LTM Adjusted EBITDA was CAD32.8mm or approximately $32.3mm (1) Post management expects that recent trends within the nut butter category will continue and that Golden Boy will participate in gr
Slide 23: Dymatize Overview
Dymatize Overview 22 Supreme Protein Overview Supreme Protein Brand Products Dymatize Overview Dymatize Brand Products Manufacturer and marketer of premium nutritional sports supplements, including powders and bars Science-based, sports nutrition product line serving both dedicated athletes and
Slide 24: Dymatize Strategic Rationale
23 Global Active Nutrition is an ~$8bn retail sales category which has grown at an average of 10% per year from 2007 to 2012 The majority of Dymatize’s sales are classified as protein, a category which comprises nearly 83% of the Global Active Nutrition category The majority of Dymatize’s sale
Slide 25: Active Nutrition Multi-Channel Distribution Strategy
24 Active Nutrition Multi-Channel Distribution Strategy Specialty FDM Club C-Store Online Shared Centers of Excellence – Sales, Marketing Services, etc. Common R&D Drives Innovation
Slide 26: Dymatize Enterprises
Dymatize Enterprises 25 Dymatize’s fiscal year end is 12/31 Post estimates Dymatize’s September 2013 LTM Adjusted EBITDA was $26.9mm Post management expects LTM growth in calendar Q4 2013 For calendar year 2014, Post expects Dymatize to generate $35-38mm of Adjusted EBITDA Transaction is s
Slide 27: Post Holdings, Inc. Investment Considerations
26 Post Holdings, Inc. Investment Considerations
Slide 28: Investment Considerations
Investment Considerations 27 Stable RTE business generates substantial free cash flow Capital allocation into categories that are growing or consolidating or that provide cost or sale advantages Manufacturing infrastructure with capacity for additional volume and supply chain under constructio
Slide 29: Stable RTE Business
Stable RTE Business Category 28 Generates substantial free cash flow The RTE cereal category is large and stable Appeals to a wide range of consumers who seek value, taste, health, performance and convenience Highly promoted category Considered a key category for retailers with respect to
Slide 30: Expanding Strong Product Portfolio into High Growth Categories
Expanding Strong Product Portfolio into High Growth Categories 29 Center-of-the-Store/Iconic Post Foods Brands Center-of-the-Store/ Attune Foods Active Nutrition Private Label Note: Dakota, Golden Boy and Dymatize acquisitions are pending. Private Label Cereal Private Label Granola
Slide 31: Capital Allocation Creates Optionality
Capital Allocation Creates Optionality Private Label Steady cash flow generation Market share growth opportunity Center-of-the-Store Active Nutrition Attractive, stable categories Centered on strong, iconic brands Robust margins, strong and consistent cash flow generation Increased expos
Slide 32: Flexible and Scalable Manufacturing and Distribution Network
Flexible and Scalable Manufacturing and Distribution Network 31 Jonesboro, Arkansas Built in 1993 320,000 square feet located on 80 acres with 40 acres available for expansion Production line: Batch cook and shredded Focused facility manufacturing Honey Bunches of Oats and Shredded Wheat pro
Slide 33: High Cash Flow Business Model
High Cash Flow Business Model 32 Recurring revenue stream supported by strong market position and stabilizing category trends Attractive Adjusted EBITDA margins Limited capex needs Modest working capital requirements 1 2 3 4 Key Cash Flow Characteristics
Slide 34: Organic Growth Opportunities (Post Foods)
33 − Recently introduced HBO Greek Yogurt and Great Grains Protein Blends − Introducing higher protein options across the portfolio Virtually every product in the portfolio has been impacted through either product acquisition, extension, redesign, enhancement or packaging Innovation Renovation Expan
Slide 35: Organic Growth Opportunities (cont'd)
34 − Category growing at approximately 11% CAGR for 2011 – 2013 (1) − Supreme Protein re-launch − Premier Protein distribution gains Active Nutrition Private Label − New distribution − Growing categories (nut butter) − Cross-channel into foodservice − Expand ingredient business Organic Growth Opport
Slide 36: Tax-Efficient Acquisitions
~$300mm (2) --- Private label peanut and other nut butters, dried fruit and nut snacks $380mm $40-45mm Dymatize Supreme Protein $370mm --- Private label pasta Total ~$1,050mm ~$43mm Acquisition Transaction Size Expected NPV of Tax Benefits (1) Portfolio $180mm $22-26mm Premier Protein Jo
Slide 37: Experienced Management
36 Bill Stiritz Chairman and CEO Long and distinguished career with notable leadership positions across consumer products companies Served as the Chairman of the Board of Directors of Ralcorp Holdings, Inc. since 1994, until Post spin-off Extensive managerial expertise, including Chairman at a
Slide 38: Two-fold Strategy for Building Long-Term Value
Experienced Management Has a Two-fold Strategy for Building Long-Term Value 37 Invest behind existing business to drive market share Drive entrepreneurial culture internally to support all brands Continue innovation and/or renovation focused on existing brands Expand price and channel spectr
Slide 39: Financial Update
38 Financial Update
Slide 40: FY2013 Performance and 2014 Estimates
FY2013 Performance and 2014 Estimates 39 Post full year results for FY2013: Net Sales of $1.03bn Adjusted EBITDA of $217mm 2014 estimates: Post is expected to generate Adjusted EBITDA of approximately $245mm to $260mm, including acquisitions completed through FY2013 (2) Dakota is expecte
Slide 41: Appendix
40 Appendix
Slide 42: Annual Historical Financials Reconciliation
Annual Historical Financials Reconciliation 41 ($ in mm) Fiscal Year Ended September 30, 2010 2011 2012 2013 Operating profit $ 190.8 $ (368.6) $ 139.1 $ 107.8 Depreciation and amortization 55.4 58.7 63.2 76.8 EBITDA $ 246.2 $ (309.9) $ 202.3 $ 184.6 Stock compensation 1.9 1.1 4.5 10.5 Nonrecurring
Slide 43: Reconciliation of Adjusted EBITDA to Pro Forma Adjusted EBITDA
42 Reconciliation of Adjusted EBITDA to Pro Forma Adjusted EBITDA Pro Forma Adjusted EBITDA gives effect to the Hearthside assets and Premier Nutrition acquisitions as if those acquisitions had occurred on 10/1/12, by adding management’s estimate of the Adjusted EBITDA for each of the businesses (
Slide 44: Post Holdings M&A Activity
Post Holdings M&A Activity Post has been acquisitive since early 2013. As a result, Post’s financial statements as filed on Form 10-K include the partial year impact of certain acquisitions. Additionally, three acquisitions are pending. The following table sets forth the composition of Post Hold
Slide 45: Expected Contribution of Acquisitions
Expected Contribution of Acquisitions 44 Company 9/30/13 2014E (1) LTM Adjusted EBITDA LTM Adjusted EBITDA Period Post Foods, Post Foods Canada, Attune Foods and Premier Nutrition $244.1 $245-260 9/30 Dakota Growers $40.4 $42-46 10/31 Golden Boy (2) $32.3 $32-34 12/31 Dymatize $26.9 $35-38 12/31 Tot
Slide 46: Historical Financials Reconciliation LTM Period Ending 9/30/13
Historical Financials Reconciliation LTM Period Ending 9/30/13 45 LTM Period Ending September 30, 2013 Hearthside Assets Premier Nutrition Dakota Golden Boy (1) Dymatize Earnings Before Tax $ 10.2 $ (3.8) $ 34.8 CAD 20.6 $ 6.6 Depreciation and amortization 5.6 7.8 10.7 6.8 10.4 Interest expense, net
Slide 47: Historical Financials Reconciliation Hearthside Assets and Premier Nutrition
Historical Financials Reconciliation Hearthside Assets and Premier Nutrition (Partial Year) 46 ($ in mm) Hearthside Assets Premier Nutrition 10/1/12 through 5/27/13 10/1/12 through 8/31/13 Earnings Before Tax $ 7.7 $ (4.8) Depreciation and amortization 3.0 7.3 Interest Expense, net – 2.7 Stock compe
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