Sucro Limited · TSXV:SUGR
Sucro — Investor Presentation (December 2023)
28 slides from Sucro's investor presentation, December 2023
Slide 1: Investor Presentation
Investor Presentation TSX-V: SUG | December 2023 Sucro’s Lackawanna Refinery, New York
Slide 2: Disclaimer
Disclaimer General Matters This Presentation should be read in conjunction with the Sucro Holdings, LLC audited annual consolidated financial statements for the fiscal year ended December 31, 2022 and accompanying notes, and the MD&A and unaudited condensed interim consolidated financial statements
Slide 3: Sucro at a Glance
Sucro at a Glance 10 Years In a Growing Market Strategically Located Assets Operating History Established Operations in 2014 • 2 Refineries • 6 Regional Offices Since 2008, US sugar deliveries have grown ~15% (1.5 million MT), equaling • 2 Processing Facilities • 2 Third-party Partners the demand of
Slide 4: Sucro's Integrated Trading and Services Platform
Sucro’s Integrated Trading and Services Platform TRADING: Third-Party Refined Sugar TRADING: Sucro-Refined Sugar Purchases refined sugar from sellers in Purchases raw cane and refines through surplus nations and actively manages supply Sucro-owned facilities for delivery of chain logistics for buyer
Slide 5: Evolution of Sucro
Evolution of Sucro 2025+ Sucro continues to add Developed a network of refinery capacity with its customers and suppliers proposed 1 million MT through active 2022 southwestern Ontario facility and increased sales management of the Lackawanna of bulk sugar to food supply chain facility begins 2020 r
Slide 6: Growth of the US Sugar Market
Growth of the US Sugar Market Continuous growth in the last 15 years United States Total Sugar Deliveries1 Short Tons Raw Value Log. (Short Tons Raw Value) 12,546 12,526 12,276 • >1.5 million MT growth in 12,287 12,232 12,185 12,124 12,184 United States sugar 12,067 11,831 deliveries since 2008 11,3
Slide 7: Sugar Pricing Dynamics
Sugar Pricing Dynamics ICE US Sugar #11 and #16 Futures (US$ / Hundredweight (CWT)) 1 $45.00 ICE US Sugar #16 Futures The #11 and #16 markets have ICE US Sugar #11 Futures historically had very low $40.00 $38.91 correlation. More recently, that $35.00 has changed: • US market is in structural $30.00
Slide 8: Sugar Pricing Models Reduce Earnings Volatility
Sugar Pricing Models Reduce Earnings Volatility • We compete on toll price over and above • Active hedging of contract positions in U.S. the raw sugar price raw sugar market • No direct impacts from raw sugar prices • Track record of successful hedge management Raw Sugar Raw Sugar Cost Refining Cost
Slide 9: Sucro Investment Highlights
Sucro Investment Highlights 1 Proven Growth Record with Strong Growth Outlook 2 Highly Integrated Supply Chain with Strategically Positioned Assets 3 Low-Capital Cost Refinery Facilities 4 Blue-Chip Customer Base 5 Pure-Play Exposure to a Reliable, Profitable, and Growing Industry 6 A Leader in High
Slide 10: Strong Growth Outlook - Operational Overview
1. Strong Growth Outlook - Operational Overview Since our founding in 2014: • Continuous increases in sugar deliveries driven by growing production and refining capacity • Established operating presence stretching across the Americas • Unique, low capex approach to refinery construction differentiat
Slide 11: Integrated Supply Chain, Strategically Positioned Assets
2. Integrated Supply Chain, Strategically Positioned Assets City State/Country Function Capacity Hamilton Ontario 130k MT (2023e1) Granular Refineries Lackawanna New York 350k MT (2026e1) Liquid Processing, Chicago Illinois 50k MT Packaging & Warehousing City State/Country Function Miami Florida Hea
Slide 12: More Capacity, Less Capex
3. Low-Capital Cost Refineries Company Location Status Capacity Price US$ M / K Mt Hamilton, Ont. Completed 130K Mt1 US$21 M $0.16 per K Mt Lackawanna, NY In Progress 210K Mt2 US$44 M2 $0.21 per K Mt2 Montreal, Que. (Expansion) Planned 100K Mt3 US$149 M3 $1.49 per K Mt3 More Capacity, Less Capex Suc
Slide 13: Blue-Chip Customer Base
4. Blue-Chip Customer Base Sucro’s Global Distribution • Sold 100% of the production from our Canada 16% Hamilton facility from 2021 through 2023E1 USA 54% Mexico • Low degree of customer concentration, 16% with no single customer representing >12% of revenue in 2022 ROW 13% Sucro has a Diverse Clie
Slide 14: Pure-Play Exposure to a Profitable and Growing Market
5. Pure-Play Exposure to a Profitable and Growing Market Sucro’s Advantage Building additional US Refining Assets refining capacity to serve a large & attractive market USA Geographic 54% 30% 16% 15% 7% 78% Geographically diverse ROW Sales (%) Canada customers Operating Expense Ratio 3.7%1,2 4.0% (2
Slide 15: A Leader in Organic
6. A Leader in Organic A leader in the fastest-growing sugar market segment in the United States Sucro has established market leadership with an estimated 18 - 25% share in the US organic sugar market, which has seen 15% compounded annual growth over the last decade ✓ First company to utilize bulk v
Slide 16: Proven Management Team
7. Proven Management Team Years of Relevant Experience Age Executive Total With Sucro Jonathan Taylor – CEO 15+ 8 42 Stefano D’Aniello – CFO 15+ 4 43 Matt Dyer – VP, Head of US Sales 13+ 3 38 Eli Cohen – VP, Head of CAN Sales and Operations 25+ 2 52 Oliver Hire – VP, Head of Trading 15 - 41 Average
Slide 17: Hamilton – Our First Refinery
Hamilton – Our First Refinery Current Operations Strategic Rationale Location Hamilton, Ontario, Canada • Centrally located within the Ontario food market Year Operational 2014 & 2019 • Canadian sugar market was an uncompetitive duopoly Product Full Granular • Sucro had very strong customer support
Slide 18: Lackawanna – Building our Refining Presence in the US
Lackawanna – Building our Refining Presence in the US Current Operations Strategic Rationale Location Lackawanna, New York, USA • Located in an underserved market Year Operational 2020 & 2022 • Logistics synergies with nearby Canadian facility Product Full Granular • Full logistics capabilities – ra
Slide 19: Lackawanna Facility Construction
Lackawanna Facility Construction • Successful first year commissioning of full granular refinery in 2023 • Sucro is 1 of 2 suppliers operating refineries in both Canada and the US • Close proximity of our two refineries offers strong integration & operational synergies Lackawanna Refinery – Expected
Slide 20: Capitalization Overview
Capitalization Overview Share Information Ownership Trading Symbol – TSX Venture SUG Board & Leadership 9% Shares O/S (converted) 23,247,350 Jonathan Taylor (CEO) Market Capitalization1 $244 M 68% Institutions & Other Insider Ownership ~77% 23% Available Liquidity • US$81.5 M of available liquidity
Slide 21: Thank You
THANK YOU Investor Relations IR@sucro.us
Slide 22: Sucro Management Team
Appendix Sucro Management Team Sucro Management Team Jonathan Taylor Stefano D’Aniello Matt Dyer Eli Cohen Oliver Hire Founder & CEO CFO VP , Head of US Sales VP , Head of CAN Sales & VP, Head of Trading Director Operations • 15+ years of sugar • 15+ years of financial • 13+ years of Food • 25+ year
Slide 23: Food Industry Dynamics
Appendix Food Industry Dynamics Hershey posts double-digit growth in Barry Callebaut increases investment in first-quarter earnings, sales Canada with expansion of Ontario • Increased demand for sugar- factory containing products (SCPs) Despite price hikes, consumer demand for snacks along with incr
Slide 24: Financial Performance
Appendix Financial Performance 2021 – 2023e Adj. EBITDA (US$M)1 9.0% $32.0 Estimated Adj. EBITDA range1 for Full-Year 2023 $28.0 8.0% $24.8 $24.0 $22.6 7.0% $20.0 6.5% 6.0% $16.0 $14.0 5.1% $12.0 5.0% 5.2% $8.0 4.0% $4.0 $- 3.0% 2 2021 2022 2023 YTD Adj. EBITDA Adj. EBITDA Margin Our staged approach
Slide 25: Our Growth Strategy
Appendix Our Growth Strategy Walk Before Running Sucro has employed a measured and prudent approach to scaling its facilities (1) Hamilton Lackawanna Proposed New Refinery Refinery Canadian Refinery Capacity sold out On schedule Proven record each year Low capex Enormous scale Low capex Ramping up P
Slide 26: Competitive Landscape in North America
Appendix Competitive Landscape in North America Legacy Trade Distributors Refiners Houses Low Capital Cost Refineries Low Cost of Capital Geographically Diverse Supply Sources Organic Offerings Capture NY16 & NY11 Differential Distribution in Close Proximity to Customers Highly Integrated Supply Cha
Slide 27: Integrated Supply Chain - Diversified Supplier Base
Appendix Integrated Supply Chain - Diversified Supplier Base Sugar Volume Supply by Country - 2022 Sucro has built a strong supplier base: • Sucro worked with a total of 58 suppliers in 2022 • No single country accounts for >35% of USA 2.2% Costa Rica aggregate raw materials 2.7% Honduras 5.4% Guate
Slide 28: Outlook
Appendix Outlook Over the past two years, Sucro has invested capital in expanding its Hamilton, Ontario refinery and also its newly built refinery in Lackawanna, New York. In both cases, virtually all construction and installation costs have been completed. As a result, the Hamilton refinery, at whi