Premium Brands Holdings Corporation · TSX:PBH
Premium Brands — Shareholder Meeting (May 2021)
56 slides from Premium Brands's shareholder meeting presentation, May 5, 2021
Slide 1: Annual General Meeting
Annual General Meeting May 5, 2021
Slide 2: Disclaimer
Disclaimer This presentation is not intended to form the basis of any investment decision and should not be considered as a recommendation by Premium Brands Holdings Corporation (the “Company”) or any other person in relation to the Company’s business or the securities of the Company. This presentat
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward looking statements with respect to the Company, including its business operations, strategy and financial performance and condition, proposed acquisitions and plans and objectives of or involving the Company. While management believes tha
Slide 4: Company Profile
Company Profile 2004 Current Revenue $0.2 billion $4.1 billion EBITDA $14.1 million $312.6 million Business platforms 2 6 Geographic reach Western Canada Global Operating facilities 8 98 Employees 900 11,000 Free cash flow per share $0.78 $4.87 Annualized dividend rate $ nil $2.54 / share Cumulative
Slide 5: Our Vision
Our Vision To invest in specialty food businesses featuring: Entrepreneurial cultures Great tasting foods made with wholesome ingredients A passion for both their local communities and what is best for our planet Great People and Great Culture – Our Points of Difference 5
Slide 6: Share Price
Share Price Closing Share Accumulated Date Price Dividends Per Share Dec 31, 2003 $8.60 Nil May 4, 2021 $121.57 $22.83 4000.00 6 2003 to May 4th, 2021 CAGR = 23.3% 3500.00 5 3000.00 4 2500.00 2000.00 3 1500.00 2 1000.00 1 500.00 0.00 0 Premium Brands (LHS) S&P/TSX Composite Index - Total Return (LHS
Slide 7: Core Business Strategies
Core Business Strategies • Specialty / authentic / differentiated products and services Targeted segments of the food industry • Leading regional brands • Emerging trends • Dedicated to maintaining an entrepreneurial environment Unique culture • Decentralized / flat organizational structure • Suppor
Slide 8: Guiding Principles
Guiding Principles Authenticity Giving back to the community Respect for the environment Corporate humility Animal welfare Resilience Great People and Great Culture – Our Points of Difference 8
Slide 9: Crisis Management - COVID-19 Pandemic
Crisis Management - COVID-19 Pandemic Great People and Great Culture – Our Points of Difference 9
Slide 10: ESG Update
ESG Update Food People Environment Governance Great People and Great Culture – Our Points of Difference 10
Slide 11: Canadian Eco-Scholar Award
Canadian Eco-Scholar Award Great People and Great Culture – Our Points of Difference 11
Slide 12: Leveraging the PB Ecosystem
Leveraging the PB Ecosystem • Access to capital • Disciplined capital allocation • Global and strategic procurement • Buying power • Internal selling opportunities • Peer network • Acquisition expertise • Financial and business analysis • Information sharing among businesses: Helping small good spec
Slide 13: Product and Commodity Diversification
Product and Commodity Diversification Specialty Foods (65.6%) Premium Foods Distribution (34.4%) Others, 1.6% Baked goods, 1.2% Commodity % Sales Seafood, 15.2% Beef 21.5% Sandwiches, Seafood 17.7% 19.3% Pork 13.4% Chicken 5.2% Protein, 18.5% Bread 2.6% Eggs 2.4% Turkey 2.3% Freight costs 2.3% Chees
Slide 14: Channel and Customer Diversification
Channel and Customer Diversification Specialty Foods (65.6%) Premium Food Distribution (34.4%) Customer % Sales Others, 2.6% Chains and large Independent and Specialty Retailers, format retailers, 9.3% Customer A 14.0% 5.7% Trading, 3.0% Customer B 13.1% Foodservice Foodservice Customer C 6.9% opera
Slide 15: Geographical Diversification
Geographical Diversification 2020 Region Sales % Sales Canada $2,366.9m 58.2% U.S. $1,601.5m 39.4% Export $100.5m 2.4% $4,068.9m 100.0% Represents regions in which PBH has one or more operating facilities Great People and Great Culture – Our Points of Difference 15
Slide 16: Acquisitions Activity
Acquisitions Activity 2005/6 2007 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018 2019 2020 2021 $35.9m $91.8m $16.7m $3.1m $67.3m $121.8m $63.7m $8.1m $51.9m $244.0m $246.2m $753.0m $118.6m $168.2m $489.2m Harlan Centennial B&C Foods SJ Fine Maximum Piller’s Freybe Ocean Expresco C&C Raybern Ober
Slide 17: Business Groups
Business Groups Seafood Distribution Protein Sandwich Bakery Culinary • Maximum Seafood • Centennial • Hempler’s • Quality Fast Foods • Stuyver’s • Creekside Foods • Ocean Miracle Foodservice • Isernio’s • Hygaard Fine Foods • Island City • Duso’s • Diana’s Seafood • Worldsource • Harvest • Deli Che
Slide 18: Protein Platform
Protein Platform Acquired Oberto Acquired Concord Premium Meats Acquired Country Prime Meats Acquired Grimm’s Invested in Acquired The Fine Acquired McLean’s Second Meat Factory Foods Made-Rite Hempler’s and constructed Acquired plant Acquired Acquired Acquired new plant Acquired Freybe expansion Be
Slide 19: Great People and Great Culture – Our Points of Difference
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Slide 24: Sandwich Platform
Sandwich Platform Acquired Buddy’s Rationalized Quality Acquired and Hygaard Raybern;s plants Constructed Acquired Acquired Acquired Acquired Constructed Constructed new 212,000 sf Acquired Installation Installation Quality Hygaard SK Food Les Aliments new Deli Chef new 180,000 sf sandwich Select of
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Slide 26: Panino Line
Panino Line Great People and Great Culture – Our Points of Difference 26
Slide 27: Generation 3 Automated Line
Generation 3 Automated Line Great People and Great Culture – Our Points of Difference 27
Slide 28: Seafood Platform
Seafood Platform Setup of new Acadia buying station Construction of new Construction 40,000 Sf of new Saco facility 105,000 sf Acquired ON facility Acquired Acquired Maximum Hancock Gourmet, Starboard Seafood and Acquired Acquired Acquired L Walker, Acquired Seafood and Hub City Ocean Diana’s Ready
Slide 29: Vertical Integration
Vertical Integration LICENSES HARVESTING PROCESSING VALUE-ADD DISTRIBUTION RETAIL Great People and Great Culture – Our Points of Difference 29
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Slide 34: Distribution Platform
Distribution Platform Acquired Ravensberg Acquired Acquired Acquired C&C IMS Frandon Packing SeafoodAcquired Acquired Expanded Centennial Mavros Acquired Acquired Multi- Centennial Acquired Acquired enters Acquired Acquired Harlan Acquired B&C Food National Acquired Calgary Reddi Premier Ontario Pen
Slide 35: C&C Packing
C&C Packing 89,000 square foot Montreal, QC facility Great People and Great Culture – Our Points of Difference 35
Slide 36: Centennial Food Group
Centennial Food Group 105,000 square foot Richmond Hill, ON facility Great People and Great Culture – Our Points of Difference 36
Slide 37: Bakery Platform
Bakery Platform Acquired Island City baking Invested in Acquired Partners Constructed Conte Foods Crackers 42,000 sf Stuyver’s new expansion of state-of-the-art Acquired Invested in Stuyver’s Acquired artisan Larosa Fine Shaw artisan Stuyver’s bakery Foods Bakers bakery 2007 2012 2016 2017 2021 Grea
Slide 38: Great People and Great Culture – Our Points of Difference
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Slide 39: Culinary Platform
Culinary Platform Acquired Mrs. Willman’s Baking Merged Creekside operations Acquired Acquired Acquired Mrs. Willman’s Acquired Gourmet Global Gourmet Creekside facility Duso’s Chef Foods 2006 2008 2010 2013 2020 Great People and Great Culture – Our Points of Difference 39
Slide 40: Great People and Great Culture – Our Points of Difference
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Slide 41: Financial Review
Financial Review Great People and Great Culture – Our Points of Difference 41
Slide 42: 2020 COVID Sales Impact
2020 COVID Sales Impact (millions of dollars) PBH Consolidated 20.0 6.6 - Sales Challenges (20.0) (33.6) (52.8) • Foodservice, and in particular (40.0) fine dining • Quick service restaurants (60.0) (132.4) • Airlines $ (80.0) • Cruise lines (100.0) • Supply chain disruptions (120.0) • Labor shortag
Slide 43: Growth Rates
Growth Rates Organic Volume Growth Rate Organic Growth Drivers 16.0% • On trend product categories 14.0% 12.0% • Meat snacks 10.0% • Artisan sandwiches 8.0% • Seafood 6.0% • Charcuterie 4.0% 2.0% • Cooked protein 0.0% • Artisan breads -2.0% -4.0% • Investments in capacity -6.0% Q1-2019 Q2-2019 Q3-20
Slide 44: Revenue Trend
Revenue Trend (millions of dollars except percentages) 7,000.0 2010 to 2020 CAGR is 22.5% 70.0% 6,000.0 6,000.0 60.0% 5,000.0 Previous revenue guidance of 50.0% $3,975m to $4,075m 4,281.0 4,068.9 4,159.9 3,649.4 4,000.0 40.0% 3,025.8 Long-term targeted 3,000.0 growth rate (6% - 8%) 30.0% 2,198.3 2,0
Slide 45: Five Year (2023) Sales Target
Five Year (2023) Sales Target (millions of dollars except percentages) Amount Notes 2020 sales: 4,068.9 2020 pandemic impact 212.2 Includes Bavarian Meats, Global Gourmet, Allseas, Starboard, Annualization of acquisitions completed in 2020 and 2021 325.1 Distribution Côte-Nord, and Clearwater Seafoo
Slide 46: Foodservice Focused Business Performance
Foodservice Focused Business Performance Risk Strategies Business Diversification Channel diversification Customer diversification US Performance Chef’s Product diversification PB Total Sysco Foodservice Food Group Warehouse Geographical diversification 2020 Sales (000’s) $541.1m $45.9b $22.9b $26.7
Slide 47: Adjusted EBITDA Trend
Adjusted EBITDA Trend (millions of dollars except percentages) 2010 to 2020 CAGR is 22.2% (Pre IFRS-16: 20.5%) 12.0% 600.0 600.0 11.0% 500.0 Previous 2020 EBITDA guidance 10.0% (including ASF impact) of $320m to $345m ($335m to $360m excluding ASF impact) 363.1 400.0 9.0% 342.1 312.6 307.7 8.0% 300.
Slide 48: Five Year (2023) Adjusted EBITDA Target
Five Year (2023) Adjusted EBITDA Target (millions of dollars except percentages) % of Amount Sales Notes Impact 2020 adjusted EBITDA 312.6 7.7% 2020 pandemic sales impact 47.3 22.3% Net impact of $3.2 million ($9.6 million in cost offset by $6.4 million in 2020 pandemic cost and commodity impact - u
Slide 49: Adjusted Earnings Trend
Adjusted Earnings Trend (millions of dollars except per share amounts) 2010 to 2020 CAGR is 22.3% 180.0 164.6 $5.00 160.0 140.0 121.4 122.5 122.7 $4.00 120.0 99.2 100.0 $3.00 80.0 80.5 $2.00 60.0 53.2 40.0 26.6 $1.00 24.5 24.9 20.0 19.6 - $- 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020N Ad
Slide 50: Capital Allocations
Capital Allocations (in millions of dollars) Capital 2020 Group Expected IRR Allocation Investment 2020 Fiscal Year Acquired Allseas Seafood Acquired Global Gourmet Culinary 144.8 144.8 Acquired Bavarian Meats Protein Acquired Inform Distribution Piller’s Brantford expansion Protein 20.0 1.6 Harvest
Slide 51: RONA
RONA 18.0% 16.0% 14.0% Normalized amounts adjust for the impacts of the pandemic and major capital projects underway at the end of 2020 12.0% 10.0% 8.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020N RONA (RHS) WACC 11.0% Targeted RONA 15% Avg RONA Great People and Great Culture – Our
Slide 52: Liquidity
Liquidity (millions of dollars except ratios) Q1-2021: • Increased senior credit facility by $200m to $1.2b 1,020.0 5.5 • Pro-forma recent Top end of targeted total acquisitions, senior debt to EBITDA ratio debt to EBITDA and 920.0 5.0 available credit are 1.9:1 and $600m, 820.0 4.5 respectively Q4-
Slide 53: Pro-Forma Financial Position
Pro-Forma Financial Position (millions of dollars except ratios) Net Senior Senior debt Unutilized Funded to EBITDA Credit Notes Debt Ratio Capacity December 26, 2020 194.1 0.6 883.1 Announced acquisitions completed 484.7 Includes Starboard, Distribution Côte-Nord and Clearwater Seafood subsequent t
Slide 54: Convertible Debentures
Convertible Debentures (millions of dollars except percentages and unit prices) Trading Maturity Convert O/S Coupon Issuance Converted Symbol Date Price Balance PBH.DB Dec 2014 7.00% 14.50 40.3 39.2 - Debenture Details PBH.DB.A Dec 2015 5.75% 22.40 57.5 56.3 - • No principal payments until PBH.DB.B
Slide 55: Free Cash Flow
Free Cash Flow (millions of dollars except per share amounts and percentages) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Payout ratio 106.4% 77.7% 69.6% 70.6% 65.2% 59.4% 53.0% 53.9% 48.4% 43.2% 36.6% 38.5% 38.1% 43.1% 48.7% Dividend per share $1.18 $1.18 $1.18 $
Slide 56: Questions
Questions Great People and Great Culture – Our Points of Difference 56
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