Empire Co Ltd Class A · TSX:EMP.A
Empire Co Ltd Class A — Investor Presentation (September 2023)
21 slides from Empire Co Ltd Class A's investor presentation, September 2023
Slide 1: Investor Presentation
Investor Presentation September 2023 Katie Brine – Vice President, Treasury, Investor Relations and ESG Finance Email: katie.brine@sobeys.com
Slide 2: Disclaimers
Disclaimers Forward-Looking Information This presentation contains forward-looking statements which are presented for the purpose of assisting the reader to contextualize the Company’s financial position and understand management’s expectations regarding the Company’s strategic priorities, objective
Slide 3: Empire Company is uniquely positioned to capture the Omni-Channel future of grocery
Empire Company is uniquely positioned to capture the Omni-Channel future of grocery Retail Network Assets Supported by Real Estate Assets: Connected by the Scene+ Loyalty Program Full Service(1) Discount E-Commerce Related Business * Equity ownership in Crombie REIT (CRR-UN) at 41.5% Equity ownershi
Slide 4: Empire Company: Serving Canadians through Food Retailing and Real Estate
Empire Company: Serving Canadians for 116 years through its Food Retailing and Real Estate Businesses 1,600+ $30B+ 4 CFCs 28 51% 41.5% Stores Annual Sales to Support Voilà Distribution Interest in Interest in Centres Longo’s Crombie REIT Operating in all 10 By calendar 2025, Strategically 88% provin
Slide 5: One of Two Players with National Scale in Grocery
One of Two Players with National Scale in Grocery National scale and presence, operating close to 2,000 stores (including more than 350 retail fuel locations) Canadian Population in all 10 provinces, with 98 stores currently offering Voilà Curbside Pickup. by Province (Growth 2017–2022): • British C
Slide 6: Strong Financial Performance
Strong Financial Performance Sales CAGR(1) Adjusted EBITDA CAGR(1)(2) Adjusted EPS CAGR(1)(2) 4.2% ($ in billions) 19.5% ($ in billions) 26.0% ($ per share) $32.0 $30.5 $2.5 $2.3 $3.00 $2.80 $30.0 $2.50 $2.0 $28.0 $2.00 $1.5 $26.0 $1.50 $1.0 $24.0 $1.00 $0.5 $22.0 $0.50 $20.0 $0.0 $0.00 2017 2018 20
Slide 7: Long-Term Financial Framework
Long-Term Financial Framework Empire introduced its long-term financial framework: 8% to 11% Long Term Average Adjusted EPS Growth Driven by our intention to improve Sales, Gross Margin (ex. Fuel), and adjusted EBITDA margin Continued Focus on Stores Enhanced Focus on Digital and Data Efficiency and
Slide 8: Continued Focus on Stores
Continued Focus on Stores Renovations Space Productivity 20%–25% of network over 3 years Improve store layouts, optimize • Sales and margin uplift category/product adjacencies, tailoring • Enhanced store productivity assortment BETTER DATA STORE FOCUSED SALES/SQ.FT. • Store department optimization C
Slide 9: Enhanced Focus on Digital and Data
Enhanced Focus on Digital and Data Launched and rolled out Scene+, a differentiated national loyalty platform — driving incremental sales and earnings in year one Co-owner Personalization Drive Data Ownership to at Scale Incrementality Drive Insights Differentiated Connected Banners to Drive New Cus
Slide 10: Enhanced Focus on Digital and Data
Enhanced Focus on Digital and Data Key Areas of Focus Superior In-Stock Position Best-in-Class Delivery Experience Substantial Assortment Extremely low substitution rate, White glove delivery 39K SKUs at mature CFCs Differentiated Freshness Ongoing Innovation Loyalty & Personalization Omni-Channel F
Slide 11: Efficiency and Cost Optimization
Efficiency and Cost Optimization Strategic Supply Chain Organization Sourcing Drive efficiency and cost • Drive supply chain productivity and • Turnaround Era (F18 - F23): effectiveness through various cost effectiveness Transitioned from a regional to initiatives (non exhaustive): national organiza
Slide 12: Disciplined and Balanced Capital Allocation
Disciplined and Balanced Capital Allocation Significant Shareholder Return and Growing Dividends (% of Market Capitalization) Dividends ($M) 584.9 Repurchases (% of Market Capitalization) Share Repurchases ($M) 520.2 6.6% Return of Capital 405.7 5.2% (Dividends + NCIB) 3.8% As a percentage of 293.0
Slide 13: ESG Goals: Steady and tangible progress
ESG1 Goals: Steady and tangible progress Planet CLIMATE ACTION CLIMATE ACTION CLIMATE ACTION CLIMATE ACTION We’re reducing our impacts and taking action on climate change to do Near-term Scope 1 and 2 targets validated by Science Based Targets initiative (SBTi): Committed to 15% 75% Conducted first
Slide 14: Summary of Financial Results
Summary of Financial Results Fiscal Year 2023 2022 2021 2020 2019 2018 2017 52 weeks 53 weeks 52 weeks 52 weeks 52 weeks 52 weeks 52 weeks (1) (2) 6-May-23 7-May-22 1-May-21 2-May-20 4-May-19 5-May-18 6-May-17 Sales $30,478.1 $30,162.4 $28,268.3 $26,588.2 $25,142.0 $24,214.6 $23,806.2 Same store sal
Slide 15: Empire Company — A Compelling Investment Opportunity
Empire Company — A Compelling Investment Opportunity #2 in Grocery Market Share Leveraging national retail network to deliver outsized growth and attractive financial performance amid solid population growth trends. Long-Term Financial Long-term financial framework to achieve 8%-11% EPS Framework gr
Slide 16: Appendices
Appendices empire
Slide 17: Appendix A: A Review of Turnaround Initiatives
Appendix A: A Review of Turnaround Initiatives Project Sunrise Project Horizon Financial Targets Financial Targets >$550M $500M 50 bps ~13% (1) (1) Cost Savings Incremental Of EBITDA margin EPS CAGR annualized EBITDA improvement ACHIEVED ACHIEVED ACHIEVED ACHIEVED Initiatives Initiatives • Organizat
Slide 18: Appendix B: Scene+ Reward Categories
Appendix B: Scene+ Reward Categories Grocery, Liquor, Shopping Home Pharmacy Banking Entertainment Travel (redeem only) Dining Improvement (Earn only) PLUS many more…
Slide 19: Appendix C: Voilà Timeline
Appendix C: Voilà Timeline November 2021 January 2022 March 2022 April 2022 January 2018 E-commerce option Ocado Voilà par IGA Voilà by Sobeys available for announces launches for Quebec expands to Ottawa Sobeys signs agreement new customers. (CFC #2) via Spoke facility with Ocado to bring customers
Slide 20: Appendix D: Financial Results – Quarter Review
Appendix D: Financial Results – 12 Quarter Review Fiscal 2024 Fiscal 2023 Fiscal 2022(1) Fiscal 2021 (1) Q1 F24 Q4 F23 Q3 F23 Q2 F23 Q1 F23 Q4 F22 Q3 F22 Q2 F22 Q1 F22 Q4 F21 Q3 F21 Q2 F21 August 5 May 6 Feb. 4 Nov. 5 Aug. 6 May 7 Jan. 29 Oct. 30 Jul. 31 May 1 Jan. 30 Oct. 31 2023 2023 2023 2022 202
Slide 21: Appendix E: Executive Leadership Team
Appendix E: Executive Leadership Team Michael Medline President & Chief Executive Officer Pierre St-Laurent Matt Reindel Sandra Sanderson Doug Nathanson Julia Knox Simon Gagné Chief Operating Officer Chief Financial Officer Chief Marketing Officer EVP, Chief Development Chief Technology and Chief Hu
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