High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Q4 2022 Earnings Presentation
30 slides from High Liner Foods's earnings presentation, February 2023
Slide 1: Investor Presentation
Investor Presentation February 2023 © 2022 High Liner Foods Incorporated
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation are forward-looking and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate and may differ materially from actual future events or results. Actual results or even
Slide 3: Presentation Notes
Presentation Notes Presentation Currency High Liner Foods (“the Company”) reports its earnings and financial statements in USD. The Company’s common shares trade on the TSX and are quoted in CAD and therefore references in this presentation to share price, dividends and market capitalization are in
Slide 4: Company Overview & Strategy
Company Overview & Strategy © 2022 High Liner Foods Incorporated 4
Slide 5: High Liner Foods at a Glance
High Liner Foods at a Glance RETAIL A publicly-traded Canadian company, listed on the Toronto Stock Exchange under the symbol ‘HLF’ A leading North American processor and marketer of value-added frozen seafood Over 120 years of seafood expertise Well-known core brands sold across the United
Slide 6: Investment Thesis
Investment Thesis Why Now? Why Seafood? Why High Liner Foods? Proven ability to deliver strong results Healthy - for people and the Over 120 years of seafood while navigating through environment expertise unprecedented challenges presented by the pandemic and global supply chain Attractive m
Slide 7: A North American Leader in Value-Added Frozen Seafood with a Diversified Portfolio
A North American Leader in Value-Added Frozen Seafood with a Diversified Portfolio Geography Branding Channel Product Form 24% 30% 44% 38% 56% 62% 70% 76% HLF Other Foodservice Retail Value-Added Other US Canada Based on 2022 Sales lbs • #1 frozen seafood manufacturer and #1 frozen value-added seafo
Slide 8: Reimagining Seafood to Nourish Life
Reimagining Seafood to Nourish Life In 2021, the Company refreshed its purpose statement to “Reimagining Seafood to Nourish Life”, which more accurately reflects High Liner Foods’ business, its potential for the future and commitment to all its stakeholders. As we execute against our strategy to
Slide 9: Corporate Social Responsibility
Corporate Social Responsibility Please visit our website for the 2021 CSR Report. © 2022 High Liner Foods Incorporated 9 9
Slide 10: Financial Review & 2023 Outlook
Financial Review & 2023 Outlook © 2022 High Liner Foods Incorporated 10
Slide 11: Q4 2022 Performance
Q4 2022 Performance Another strong quarter - marking this our 7th consecutive quarter of year over year net sales and adjusted EBITDA growth. Key highlights include: Sales - Increased by $22.4 million, or 9.8%, to $250.3 million; Volumes – Decreased by 0.3M lbs, or 0.5%, to 58.4 million lbs;
Slide 12: 2023 Outlook
2023 Outlook While there will inevitably be periods of short-term economic contraction that will impact consumer choices in restaurants or at the grocery store, we have proven the resiliency of our business and the competitive advantages offered by the diversification of our business, portfolio an
Slide 13: Q4 2022 YTD Sales Volume and Net Sales
Q4 2022 YTD Sales Volume and Net Sales Sales volume increased 17.2M lbs (7%) to 250.9M lbs ▪ Foodservice: sales volume was higher due to the impact of fewer COVID-19 restrictions on the Company's foodservice customers in 2022 as compared to 2021 and new business and new product sales. We continued t
Slide 14: Q4 2022 YTD Adjusted EBITDA
Q4 2022 YTD Adjusted EBITDA Earnings before Interest, Taxes, Depreciation and Amortization * Please refer to the Company’s MD&A for definition of non-IFRS financial measures “Standardized EBITDA” and “Adjusted EBITDA” Adjusted EBITDA increased $13.5M (14.9%) to $103.9M and decreased by 60 basis poin
Slide 15: Q4 2022 YTD Earnings Per Share (EPS)
Q4 2022 YTD Earnings Per Share (EPS) * Please refer to the Company’s MD&A for definition of non-IFRS financial measure “Adjusted Diluted EPS” and “Adjusted Net Income.” Adjusted Diluted EPS increased by $0.20 (15.3%) to $1.48 ▪ Adjusted Net Income increased by $6.9M (15.4%) to $51.7M reflecting an i
Slide 16: Debt Leverage Ratio
Debt Leverage Ratio Net Debt* to Trailing 12-Month Adjusted EBITDA* Target (3.0x) *Please refer to the Company’s MD&A for the definition of non-IFRS financial measures “Net Debt” and “Adjusted EBITDA” **Does not include the trailing 12-Month Adjusted EBITDA for Rubicon purchased May 30, 2017 Debt le
Slide 17: Dividend History
Dividend History *Reflects Q1/Q2/Q3 dividend of CAD$0.10 per share and Q4 dividend of CAD $0.13 per share. ** Based on the assumption that Q1/Q2/Q3/Q4 dividend will be CAD $0.13 per share, which is subject to change On November 9, 2022, the Board approved a quarterly dividend of CAD$0.13 per common
Slide 18: Appendix #1: Miscellaneous Company Information
Appendix #1: Miscellaneous Company Information © 2022 High Liner Foods Incorporated 18
Slide 19: High Liner Foods
High Liner Foods Canadian public company since the 1960s, TSX-listed in 1971 * Source TSX, as of January 24, 2023 ** Effective November 2022 (CAD$0.13 per share per quarter) ** Float calculated based on the shareholder list as at December 31, 2022 © 2021 High Liner Foods Inc. 19
Slide 20: High Liner Foods
High Liner Foods Over 120 years of seafood expertise 2017 Rubicon 2022 2013 Resources acquisition American Pride Seafood acquisition 2010 2014 1999 Viking Atlantic Trading acquisition 2011 Name Change Company to High Liner acquisition 1986 Foods Icelandic USA 1926 Fisher Boy acquisition 2007 acquisi
Slide 21: Flexible, Integrated Operations
Flexible, Integrated Operations Three value-added seafood manufacturing facilities in North America Increased demand for value-added products increases plant efficiency Current manufacturing footprint: aggregate production capacity of ~172M LBS based on current shift patterns Lunenburg, NS Agg
Slide 22: Species Diversity
Species Diversity Based on 2022 Purchases (in USD) • In 2022, the Company purchased approximately 198M lbs of seafood with an approximate value of $653.5M, reflecting approximately 24 species from 19 different countries. • Major species (7) accounted for ~93% of the total dollar purchases. © 2022 Hi
Slide 23: ESG at High Liner Foods
ESG at High Liner Foods High Liner Foods began our responsible sourcing journey over a decade ago and has made steady gains since that time, working toward a goal of delivering products that are 100% responsibly sourced. In 2021, High Liner Foods took its next step in the ESG journey and completed
Slide 24: Appendix #2: Historical Financial Performance
Appendix #2: Historical Financial Performance © 2022 High Liner Foods Incorporated 24
Slide 25: 10 Year Sales History - Volume and USD
10 Year Sales History - Volume and USD Sold New Bedford Scallop business © 2021 High Liner Foods Inc. 25
Slide 26: 10 Year EBITDA History
10 Year EBITDA History Earnings before Interest, Taxes, Depreciation & Amortization Sold New Bedford Scallop business *Please refer to the Company’s MD&A for Fiscal 2022 for definition of non-IFRS measures “Standardized EBITDA” and “Adjusted EBITDA” © 2021 High Liner Foods Inc. 26
Slide 27: 10 Year EPS and ROE History
10 Year EPS and ROE* History Earnings per Share (EPS) and Return on Equity (ROE) Sold New Bedford Scallop business *Please refer to the Company’s MD&A for Fiscal 2022 for definition of non-IFRS measures “Adjusted Diluted EPS” and “Return on Equity” © 2021 High Liner Foods Inc. 27
Slide 28: 10 Year Debt Leverage Ratio
10 Year Debt Leverage Ratio Net Debt* to Trailing 12-Month Adjusted EBITDA* Sold New Bedford Scallop business Target (3.0x) *Please refer to the Company’s MD&A for Fiscal 2022 for definition of non-IFRS measures “Adjusted EBITDA” and “Net Debt”. **Does not include trailing 12-month Adjusted EBITDA f
Slide 29: Thank you
Thank you
Slide 30: © 2022 High Liner Foods Incorporated
© 2022 High Liner Foods Incorporated