Maple Leaf Foods Inc. · TSX:MFI
Maple Leaf Foods — BMO Capital Markets Farm to Market Conference 2016
17 slides from Maple Leaf Foods's conference presentation, May 18, 2016
Slide 1: BMO Capital Markets Farm to Market Conference
BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE Michael McCain – President & CEO May 18, 2016 2
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation contains “forward-looking information” within the meaning of applicable securities law. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which the Company operates, as well as beliefs and a
Slide 3: Maple Leaf Foods: Profile
MAPLE LEAF FOODS: PROFILE Canada’s largest consumer packaged meats company Brand and market share leader across all major categories Significantly vertically integrated A leader in antibiotic free (ABF) pork products in North America; largest in ABF chicken in Canada $3.3B in sales (CAD); market cap
Slide 4: Iconic Brands
ICONIC BRANDS QUHNEIDERS EST.1890 natural (Selections
Slide 5: #1 Brands and Market Shares
#1 BRANDS AND MARKET SHARES Wieners Deli Meats Frozen Sausages Bacon Canned Meats Total Market Share: Total Market Share: Total Market Share: Total Market Share: Total Market Share: ~55% 27% ~70% ~40% ~50% Leading Brand: Leading Brand: Leading Brand: Leading Brand: Leading Brand: Meats Snacks Lunch
Slide 6: Completed 5 Year Transformation
COMPLETED 5 YEAR TRANSFORMATION LOWERED COSTS; INCREASED PROFITABILITY Eliminated or reformulated over ~$1 billion in capital invested 1800 products to run on faster from 2010-2015 lines with new technologies 11 prepared meats Invested in enhancing scale and manufacturing sites consolidated technolo
Slide 7: Record First Quarter Earnings
RECORD FIRST QUARTER EARNINGS 7
Slide 8: Accomplished Target Set in 2010
ACCOMPLISHED TARGET SET IN 2010 3.5% 2005-2012 Average 8
Slide 9: Balance Sheet Optionality
BALANCE SHEET OPTIONALITY SIGNIFICANT CAPACITY AND FLEXIBILITY • Debt free – net cash of $280 million at the end of Q1 2016 • Completed NCIB in January; $195 million invested to buy-back 8.65 million shares • Increased dividend by 125% over the last two years • Optimize capital allocation – Opportun
Slide 10: Delivering Shareholder Value
DELIVERING SHAREHOLDER VALUE MFI SHARE PRICE HAS APPRECIATED 150% SINCE 2013 10
Slide 11: Path to Continue Margin Progression
PATH TO CONTINUE MARGIN PROGRESSION 1 2 Maintaining a cost culture Driving strategic, profitable and investing in assets growth 11
Slide 12: Further Cost Reduction
1 FURTHER COST REDUCTION Elimination of plant start-up variances; worth 100bps in EBITDA margin Further investments in our supply chain to Aggressive cost increase productivity planning and efficiency Reinvesting material Continued overhead portion of savings in and SG&A reduction growth 12
Slide 13: Driving Strategic Growth
2 DRIVING STRATEGIC GROWTH Organic growth Increased penetration of Strategic M&A US market 13
Slide 14: Organic Growth
ORGANIC GROWTH WE ARE THE INNOVATION LEADER IN OUR CATEGORIES 14
Slide 15: Growth in Sustainable Meat
GROWTH IN SUSTAINABLE MEAT NO ANTIBIOTICS; NO HORMONES EVER 5+ years Antibiotic Fast growing developing free and market Premium Advancing Strong alternate crate free segment margins in leadership platform for production pork driven by sustainable in animal market systems in provides consumer meat ca
Slide 16: M&A Opportunities
M&A OPPORTUNITIES Focused on core platforms of sustainable meat; alternate proteins Paced and sized to balance opportunity with earnings stability and continued margin expansion Growth outside Canada may be accelerated by M&A 16
Slide 17: Summary – Investment Thesis
SUMMARY – INVESTMENT THESIS Canada’s largest consumer packaged meats company #1 brands, #1 market shares, and low cost supply chain Track record of delivering margin expansion Exciting growth platform in sustainable meat Accelerating profitable growth 17
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