Superior Plus Corp · TSX:SPB
Superior Plus — Debt Investor Presentation (May 2019)
24 slides from Superior Plus's debt investor presentation, May 14, 2019
Slide 1: May Investor Update
Superior Plus Corp. TSX: SPB May Investor Update May 14, 2019
Slide 2: Forward-Looking Statements and Information
Forward-Looking Statements and Information Certain information included herein is forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information may include statements regarding the objectives, business strategies to achieve those objectives, expec
Slide 3: Superior Plus Overview
Superior Plus Overview Superior Plus is a premier North American diversified industrial company with two core businesses: Energy Distribution and Specialty Chemicals • A leading propane distributor and marketer in Canada, the Eastern US and California (operating in retail and wholesale propane marke
Slide 4: Superior Overview
Superior Overview Energy Distribution Specialty Chemicals • Leading distributor and marketer of propane in Canada Production and sales of: • Retail and wholesale sales volume of 2.4 billion litres(1) • Sodium Chlorate products • Distribution of primarily retail propane in the Eastern U.S. and • One
Slide 5: Energy Distribution
Energy Distribution wx ‘ Superior Plus
Slide 6: North American Retail Energy Strategy Summary
North American Retail Energy Strategy Summary Superior Plus is well positioned in the North American propane industry U.S. Market Opportunity Canadian Platform U.S. Propane Business is is Attractive is Proven Ripe for Transformation • Most competitors have • Sales and marketing driving • Experienced
Slide 7: Energy Distribution Summary
Energy Distribution Summary Business Summary Geographic Footprint Leading retail supplier of propane in Canada and established footprint in the Eastern U.S. propane market Growth opportunities through new markets and industry consolidation Leading competitive position with full service capabil
Slide 8: Energy Distribution
Energy Distribution CANADIAN PROPANE DISTRIBUTION U.S. PROPANE DISTRIBUTION Volume by Segment(1) Volume by Segment(1) 5% 7% 7% Wholesale 11% Residential Commercial 31% 47% 8% Oilfield Industrial 62% Motor Fuels 14% Other 8% Retail Propane Distillates Wholesale Gross Profit by Segment(2) Gross Profit
Slide 9: Specialty Chemicals
Specialty Chemicals 9
Slide 10: Specialty Chemicals - Segment Summary
Specialty Chemicals - Segment Summary Business Summary Geographic Footprint North America South America One of North America’s largest producers and Production facilities located at 9 sites across North America and one facility in Chile(3) supplier of sodium chlorate and sodium chlorite Diversifie
Slide 11: Specialty Chemicals – Business & Product Overview
Specialty Chemicals – Business & Product Overview Sodium Chlorate Chlor-Alkali Sodium Chlorite International Softwood Bleached Distribution Oil & Gas Fertilizers Oil & Water & Exports Pulp Board (Rail & Truck) (Hydraulic Fracturing, (Nutrients) Gas Treatment 27% 18% 16% 22% Exploration) 12% 39% 31%
Slide 12: 2019 Areas of Focus
2019 Areas of Focus Superior Plus Energy Distribution Specialty Chemicals • Health, safety & environment • Organic growth • Organic growth • Reduce leverage • Investment in sales and • Developing advanced sales • Continuous improvement marketing in support of and marketing approach growth • Maintain
Slide 13: Financial Information & Key Credit Highlights
Superior Plus Corp. TSX: SPB Financial Information & Key Credit Highlights
Slide 14: Q1 2019, Q1 2018, 2018 & FY 2017 Results
Q1 2019, Q1 2018, 2018 & FY 2017 Results (in millions of CAD except per share Q1 2019 Q1 2018 FY 2018 FY 2017 amounts) EBITDA from Operations(1) $249.3 $158.6 $402.8 $306.8 Adjusted EBITDA(1) $239.9 $152.6 $374.3 $297.6 AOCF before transaction and other costs(1) $211.0 $138.1 $302.3 $250.5 AOCF befo
Slide 15: Credit Statistics
Credit Statistics • Senior Debt to Credit Facility EBITDA is anticipated to be in the range of 3.6x to 4.0x as at December 31, 2019 as cash generated from operations is used to repay debt • Strong EBITDA profile and ample free cash flow available for debt service Credit Facility EBITDA(1) (C$ millio
Slide 16: Debt Maturity Profile
Debt Maturity Profile • Superior has a staggered balanced maturity profile with Debt Maturity Schedule (C$ millions) no material maturities until 2024 • NGL transaction financed with a C$150 million upsize of $1,000 existing 5.125% unsecured debentures, $400 million $521 equity offering, 7.0% $350 m
Slide 17: Summary
Superior Plus Corp. TSX: SPB Summary
Slide 18: Investment Highlights
Investment Highlights SAFETY & COMPELLING ENVIRONMENT GROWTH COMMITMENT PROSPECTS Industry Strong Financial Safety & Environment Compelling Growth Leadership Profile Commitment Prospects • Experienced • Committed to BB • Continue to be an • Numerous unique management team credit rating industry lead
Slide 19: Questions
Superior Plus Corp. TSX: SPB Questions
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Throughout the presentation, Superior has used the following terms that are not defined by GAAP, but are used by management to evaluate the performance of Superior and its businesses. Since non-GAAP financial measures do not have standardized meaning prescribed by GAAP an
Slide 21: Appendix
Superior Plus Corp. TSX: SPB Appendix
Slide 22: 2019 Guidance and Leverage
2019 Guidance and Leverage • 2019 Adjusted EBITDA Guidance increased to $490-530 million(1)(2)(3) Updated 2019 Prior 2019 Guidance Guidance Adjusted EBITDA(1)(2)(3) $490-$530 million $445-$495 million Senior Debt to Credit Facility EBITDA(2)(3) 3.6X – 4.0X 3.6X – 4.0X • Increase in guidance based on
Slide 23: Major Developments
Major Developments Record First Quarter 2019 Results(1) Record FY 2018 Adjusted EBITDA(2) Record Fourth Quarter 2018 Results(2) 57% $239.9 26% $374.3 40% $297.6 $152.6 $153.0 $109.1 Q1 2018 Q1 2019 FY 2017 FY 2018 Q4 2017 Q4 2018 2019 Acquisitions 2018 Acquisitions 2018 2019 NGL Propane LLC Phelps S
Slide 24: Specialty Chemicals – Product Diversification
Specialty Chemicals – Product Diversification Salt + Water + Electricity Sodium Sodium Chlor-alkali Hydrogen Chlorite Chlorate (H2) Potassium Caustic Soda Chlorine Hydrochloric Hydroxide (NaOH) (Cl2) Acid (HCl) (KOH) 10,000 MT 515,000 MT 94,000 MT 116,200 MT 157,000 MT Equivalent Chlorine Combined 2
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