Sunopta — Investor Presentation (November 2005)
30 slides from Sunopta's investor presentation, November 2005
Slide 1: Focus on the Future
Focus on the Future NASDAQ: STKL TSX: SOY Investor Presentation November 2005 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements”, as defined by the Private Securities Litigation Reform Act of 1995 (“the Act”), that can be identified by words such as “believes”, “expects”, “projects”, and similar expressions and involve numerous risks and uncert
Slide 3: SunOpta Overview
SunOpta Overview SunOpta is a rapidly growing, vertically integrated company with extensive expertise in sourcing, processing, packaging and distribution of natural and organic foods – SunOpta Food Group – 90.5% YTD 2005 Revenues – Opta Minerals Inc. (TSX: OPM) – 8.6% YTD 2005 Revenues – SunOpta Bio
Slide 4: U.S. Organic Food Market Growth
U.S. Organic Food Market Growth 17-20% Annual Growth Since 1997 $15 $14.5 $14 $13 $12.2 $ Billion USD $12 $11 $10.4 $10 $9 $8.6 $8 $7 $6 2002 2003 2004 2005 EST • Better understanding of the connection between health and diet • Greater availability of organic foods in major grocery stores • Obesity
Slide 5: Revenue Growth
SunOpta Revenue Growth $450 — Steam Explosion: $400 6-Year CAGR (1998-2004): 66% $5-$6M USD — Opta Minerals: $350 $38-$40M USD $300 $ Millions USD $250 — Food: $367-$369M USD $200 $150 2004 ACT: $306M USD $100 2005 EST: $415M USD $50 $0 1998 1999 2000 2001 2002 2003 2004 2005 EST 32 Consecutive Quar
Slide 6: Net Income Growth
SunOpta Net Income Growth $12.0 $11.0 6-Year CAGR (1998-2004): 67% $10.0 $9.0 $8.0 $ Millions USD $6.0 $3.7 $4.0 $1.9 $2.0 $0.5 $1.0 $0.0 ($0.2) ($2.0) 1998 1999 2000 2001 2002 2003 2004 6
Slide 7: Vertically Integrated Business Model
Vertically Integrated Business Model “From Field to Table” SunOpta Sells Organic, Non-GMO Seed to Farmers SunOpta Contracts and Purchases Crop from Farmers and Initially Processes It SunOpta Converts Crop into Food Ingredients SunOpta Packages Product Ready for Resale SunOpta Distributes Product to
Slide 8: Grains and Soy Products Group
SunOpta Grains and Soy Products Group (27% of YTD 2005 Food Group Revenues) • Organic and Specialty Soybeans – Largest U.S. purchaser of organic soybeans • Sunflower (Confection) Whole Seed and Kernel – Approx. 30% share of the U.S. production • Organic and Specialty Corn, Oats, and Wheat • Processe
Slide 9: Ingredients Group
SunOpta Ingredients Group (17% of YTD 2005 Food Group Revenues) • Oat Fiber – Largest supplier of oat fiber to the food industry worldwide • Soy Concentrate and Powders – Largest supplier of organic whole soy concentrate in the U.S. – Extensive product portfolio leveraging internally resourced input
Slide 10: Fruit Group
SunOpta Fruit Group (15% of YTD 2005 Food Group Revenues) • Sources organic fruit products from approx. 30 countries • Sources, processes and packages private label fruit products • Extensive product development and formulation expertise for fruit ingredient applications • Completed vertically integ
Slide 11: Packaged Products Group
SunOpta Packaged Products Group (14% of YTD 2005 Food Group Revenues) • Packaged Aseptic Soy and Rice Beverages – The largest packager of organic shelf stable soy milk in the U.S., utilizing input from Grains and Ingredients groups • Natural and Organic Fruit and Grain Snacks – Branded, private labe
Slide 12: Canadian Food Distribution Group
SunOpta Canadian Food Distribution Group (27% of YTD 2005 Food Group Revenues) • Largest integrated distributor of natural, organic and specialty foods in Canada • National distribution capabilities and facilities • 10,000 SKUs – 5,000 customers • Distributor of key U.S. customers products throughou
Slide 13: Food Group Operations
SunOpta Food Group Operations SunOpta Grains and Soy Products Group: SunOpta Packaged Products Group: ¾ Breckenridge, MN ¾ Alexandria, MN ¾ Cresco, IA ¾ Norval, ON ¾ Edson, KS ¾ Omak, WA ¾ Goodland, KS ¾ Summerland, BC (2) ¾ Hope, MN ¾ Wahpeton, ND ¾ Minnetonka, MN ¾ Moorhead, MN SunOpta Canadian Fo
Slide 14: Representative Brands Utilizing SunOpta Ingredients
Representative Brands Utilizing SunOpta Ingredients 14
Slide 15: Retail Customer Base
SunOpta Retail Customer Base 15
Slide 16: Soy Products Featuring SunOpta Soy Ingredients
Soy Products Featuring SunOpta Soy Ingredients 16
Slide 17: Market Share Data
Market Share Data • Soybean – #1 organic soybean processor in U.S. – Approx. 35% share of market • Sunflower – #1 producer of high oleic confection sunflower in the U.S. – Approx. 30% market share of confection market • Oat Fiber – #1 producer of oat fiber to the food industry worldwide – Approx. 85
Slide 18: Acquisition Criteria
Acquisition Criteria • Must operate in the natural, organic or specialty food sectors, but not in retail or in farming and share our values • Focus on companies with revenues between $10M - $50M to mitigate risk • Acquisition must be profitable, growing and immediately accretive with key management
Slide 19: Opta Minerals
Opta Minerals (8.6% of YTD 2005 Revenues) • (TSX: OPM) - 70% Ownership • Vertically integrated manufacturer, distributor and recycler • Silica-free abrasives and roofing shingle granules • Industrial Minerals and Specialty Sands • Recycles spent products • Opportunities to consolidate fragmented ind
Slide 20: BioProcess Group
SunOpta BioProcess Group (0.9% of YTD 2005 Revenues) • Commercially proven, proprietary technology with multiple patents on equipment and processes • Currently focused on processing of biomass for the production of ethanol and other bio-products – Signed contract to engineer and construct biomass to
Slide 21: Our Value System
Our Value System Our values include conducting our business in a manner which demonstrates: 1. Mutual respect for those with whom we work and serve; 2. Compassion, honesty and support in all our interactions, while maintaining and developing a culture which builds on the passion of our people and th
Slide 22: Sarbanes-Oxley
Sarbanes-Oxley We achieved a clean audit opinion of our internal controls for 2004 as required under the Sarbanes- Oxley Act with no material weaknesses identified – a major achievement. 22
Slide 23: Organic Revenue Growth
Organic Revenue Growth 16.5% Organic Growth since 1998 1998 1999 2000 2001 2002 2003 2004 2005 E Total $14.9M $31.8M $68.4M $92.4M $120.9M $199.1M $306.3 M $415 M Revenues 1998 1999 2000 2001 2002 2003 2004 2005 E Acquisition 0% 97.3% 95.7% 32.2% 10.5% 46.0% 39.3% 20.5% - Growth 22.5% Organic 22.3%
Slide 24: Revenue Growth
Revenue Growth $450 $415 $400 $350 $306 $300 $ Millions USD $250 $199 $200 $150 $304 $121 $93 YTD $100 Sept. $69 2005 $50 $32 $15 $0 1998 1999 2000 2001 2002 2003 2004 2005 EST •66% 6-Year Revenue CAGR •14.5% Internal Revenue Growth for 2004 •$415M Revenue Guidance for 2005 –Increase of 36% over 200
Slide 25: Net Income Growth
Net Income Growth $14.0 $12.0 $12.0 $11.0 $10.0 $ Millions USD $9.0 $8.0 $6.0 $4.0 $3.7 $1.9 $2.0 $1.0 $0.5 $0.0 ($0.2) ($2.0) 1998 1999 2000 2001 2002 2003 2004 2005 9-Months •67% 6-Year Net Income CAGR Sept. 2005* •23% Growth in Net Income for FY 2004 •12.5% Growth in Net Income YTD 2005 *2005 inc
Slide 26: Diluted EPS Growth
Diluted EPS Growth $0.25 $0.21 $0.20 $0.20 $0.18 $0.15 $ USD $0.10 $0.09 $0.08 $0.06 $0.05 $0.04 $0.00 ($0.01) ($0.05) 1998 1999 2000 2001 2002 2003 2004 2005 9-Months •22% 6-Year Diluted EPS CAGR Sept. 2005* •11% Growth in Diluted EPS for FY 2004 *2005 includes a $0.07 net benefit per diluted share
Slide 27: Balance Sheet Highlights
Balance Sheet Highlights (as of September 30, 2005) Cash $6.1 Net Working $69.5 Capital Long-term $53.4 Debt Shareholders' $158.7 Equity $0 $50 $100 $150 $200 $ Millions USD Long-term Debt to Equity Ratio: 0.34 to 1.00 27
Slide 28: Financial Performance Highlights
Financial Performance Highlights • 66% 6-Year Revenue CAGR (1998 – 2004) • $415M Revenue Guidance for 2005 – Increase of 36% over 2004 • 14.5% Internal Revenue Growth for 2004 Y/Y • 32 Consecutive Quarters of Record Revenues Y/Y • 67% 6-Year Net Income CAGR (1998-2004) • 23% Growth in Net Income for
Slide 29: Growth Strategies
Growth Strategies • Position SunOpta as a “Preferred” natural, organic and specialty foods and ingredient solutions provider • Expand global soy and sunflower businesses • Grow fiber and ingredient business by broadening current product offerings and developing new applications and geographic market
Slide 30: Focus on the Future
Focus on the Future NASDAQ: STKL TSX: SOY Investor Presentation November 2005 30