The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Merger or Acquisition (April 2024)
16 slides from The Simply Good Foods's merger presentation, Apr 29, 2024
Slide 1: Acquisition of OWYN
Acquisition of OWYN April 29, 2024
Slide 2: Agenda
Agenda 1. Introduction Mark Pogharian, VP of Investor Relations 2. OWYN Overview and Investment Highlights Geoff Tanner, President and CEO 3. Financial Highlights Shaun Mara, CFO 4. Q&A 2
Slide 3: Disclaimer
Disclaimer Forward Looking Statements Certain statements made herein are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by or include w
Slide 4: Geoff Tanner, President and Chief Executive Officer
Geoff Tanner President and Chief Executive Officer 4
Slide 5: OWYN, a high growth brand, to join Simply Good
OWYN, a high growth brand, to join Simply Good Strategic, On Trend, and Fast-Growing Brand with $120 million in Net Sales 1 • Well-positioned in the fast-growing high protein ready-to-drink segment of the Nutritional Snacking category • Great tasting, RTD protein shake; plant-based, allergen-free cr
Slide 6: A unique, high growth, complete nutrition brand
A unique, high growth, complete nutrition brand Business Overview Net Sales by Form (2024E) Rapid growth 2 Powders • Fast-growing ready-to-drink 114% 123% 121% protein shake brand • Broad appeal across consumer segments RTD Shakes 12% • Great tasting, high protein 5% 6% • Plant-powered and allergen
Slide 7: A compelling brand with a long runway for growth
A compelling brand with a long runway for growth On-trend Desirable Distribution Innovation RTD strength platform consumer upside upside • High protein • Fast-growing • Appeals to today • Natural channel roots • Potential to • Plant-based high protein & tomorrow’s & legitimacy innovate into shake se
Slide 8: We have a successful playbook to apply to OWYN integration
We have a successful playbook to apply to OWYN integration Sales & Distribution Integration & Synergies • Category leaders & advisors • Run standalone for initial period to ensure • Whitespace in core FDM channels focus on delivery of ‘24 Plan 1 • eCommerce expertise • Once integrated, put OWYN onto
Slide 9: Simply Good: Highly attractive portfolio of Nutritional Snacking brands
Simply Good: Highly attractive portfolio of Nutritional Snacking brands Plant-Based, High Protein / Low Carb Allergen Free, Performance Weight Simple Ingredients Bar, Shakes, Shakes, Bar, Chips Confections Powder Gen X Boomers Millennials Millennials Gen X Gen Z To become THE leader in Nutritional S
Slide 10: Shaun Mara, Chief Financial Officer
Shaun Mara Chief Financial Officer 10
Slide 11: Simply Good: Strong N. America focused business with balanced product & channel mix
Simply Good: Strong N. America focused business with balanced product & channel mix Large N. America Diverse product Balanced channel mix 1 business 1 offering 1 Int’l. All Other 2 Powders 3% 1% 2% Bars Drug Mass 42% 2% 33% C-Store 8% North America Snacks RTD Shakes Club Food 97% 34% 23% 10% 24% E-C
Slide 12: Financial Summary and Timing
Financial Summary and Timing • $280 million in cash Purchase Price • Transaction multiple: 2.3x Net Sales1 and 13.3x Adjusted EBITDA, including run rate synergies 1 • Additive to SMPL's top-line growth profile (long-term target of 4-6% sales growth) • In the short term, we expect the contribution of
Slide 13: An exciting acquisition that will drive shareholder value
An exciting acquisition that will drive shareholder value ✓ Extends our presence in the fast-growing ready-to-drink protein shake segment ✓ Plant-based, allergen free brand that is complementary to our portfolio; has mainstream appeal with a highly attractive and incremental consumer ✓ Incredible gr
Slide 14: Q&A
Q&A
Slide 15: Appendix I
Appendix I Use of Non-GAAP Financial Measures This presentation includes the use of certain measures that have not been calculated in accordance with U.S. generally acceptable accounting principles (GAAP), including Adjusted EBITDA, Adjusted Diluted EPS and Net Debt to Adjusted EBITDA ratio. Non-GAA
Slide 16: Appendix II
Appendix II Use of Projections This presentation contains projections, including expected net sales, Adjusted EBITDA, net leverage ratio and cost synergies. Our independent auditors have not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of t
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