Swiss Water Decaffeinated Coffee, Inc. · TSX:SWP
Swiss Water Decaffeinated Coffee — Investor Presentation (April 2025)
24 slides from Swiss Water Decaffeinated Coffee's investor presentation, April 2025
Slide 1: Swiss Water Decaffeinated Coffee Inc. Investor Presentation
Swiss Water Decaffeinated Coffee Inc. Investor Presentation April 2025
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements in this presentation may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, levels of activity, performance or achievements to be materially different from any
Slide 3: Why Invest?
Why Invest? Growing Industry. Profitable Operations. Proven Execution. Significant Future Growth. 2
Slide 4: Good coffee. Good choice. Good business.
Good coffee. Good choice. Good business. 3
Slide 5: A Global Leader in Sustainable & Specialty Decaffeination for 20+ Years
A Global Leader In Sustainable & Specialty Decaffeination for 20+ Years Decaffeination Tolling Logistics We buy, decaffeinate with our We decaffeinate green coffee We ship, handle, and proprietary 100% chemical- on behalf of our premium warehouse regular and decaffeinated green coffee free water pro
Slide 6: Swiss Water Process: Amazing Coffee Without Caffeine
Swiss Water Process: Amazing Coffee Without Caffeine Process Revenue Gross Profit Adj. EBITDA Volume 40,000 30,000 18,000 Growth 35,000 30,000 25,000 16,000 14,000 +6% 10-year CAGR 20,000 12,000 25,000 10,000 20,000 15,000 8,000 15,000 10,000 6,000 10,000 4,000 5,000 5,000 2,000 - - - 2018 2019 2020
Slide 7: Water + Temperature + Time
Water + Temperature + Time • Our unique, proprietary, multi-stage, chemical free, trusted process delivers high quality decaf coffees that are Better Flavour. indistinguishable from caffeinated counterparts in taste and aroma Better Aroma. • Our process ensures all coffee certifications remain intac
Slide 8: Zero Chemicals Ever.
Zero Chemicals Ever. Developed through years of technological & operational expertise, process refinement and capital investment 7
Slide 9: People Drink Decaf Because They Love The Taste of Coffee
People Drink Decaf Because They Love The Taste of Coffee. Why do you drink decaf coffee? 70% say because they enjoy the taste. And they expect it to taste as good as regular coffee. 8
Slide 10: Decaf is In Demand.
Decaf is 3+ People who order decaf are In Demand. almost twice as likely to drink 3+ cups of coffee per day than other coffee drinkers Driven by 61% demographics: Of decaf drinkers want (and will pay for) better quality, great tasting coffee 18-24 year-olds rank higher in decaf consumption than any
Slide 11: The World's Only Branded Decaf Coffee Method
The World’s Only Branded Decaf Coffee Method We’ve invested in building a premium decaf coffee brand through cost-effective, targeted regional media, print, PR and co-marketing events with customers Brand Strength Drives Driving Higher Margin Sales Consumer Choice for Retailers Swiss Water Decaf com
Slide 12: Resilient Across Markets & Diversified, Blue-Chip Customer Base
Diversified, Blue-Chip Customer Base with Global Reach Resilient Across Our top 3 customers Revenue is well- account for ~35% distributed across our Markets & of revenue customer base with Regions no Customer > 12% of revenue 11
Slide 13: Our Markets
Our Markets 60+ International Markets Volume Growth by Region: North America Asia Pacific Europe/MEA + 7% (3Y CAGR) + 9% (3Y CAGR) + 17% (3Y CAGR) 13 12
Slide 14: Our Delta B.C. Facility
Our Delta Facility provides strategic access to both domestic and International markets. Our Delta B.C. Facility 24/7 operations Construction of new facility completed in 2021; 2nd line added in 2023 Capex: ~$125M Leased facility with attractive purchase option 14 13
Slide 15: Continuous Improvement Through Efficiency
Continuous Improvement Through Efficiency Expanded decaffeination capacity to meet growing demand Driving margin improvement & volume growth: 80% 75% 70% 72% 94% 95% • Six Sigma 93% methodologies • Statistical process controls • Lean manufacturing 2018 2019 20201 2021 2022 20232 2024 initiatives Uti
Slide 16: Warehousing and Logistics
Warehousing and Logistics Belgium Germany British Columbia Ontario Ready-to-roast Washington Texas New Jersey Swiss Water® California Decaf coffees are warehoused across North America and Europe 15
Slide 17: Multiple Revenue Streams
Multiple Revenue Streams GREEN REVENUE PROCESS REVENUE DISTRIBUTION REVENUE $140,000 $45,000 $14,000 $40,000 $120,000 $12,000 $35,000 $100,000 $10,000 $30,000 $80,000 $25,000 $8,000 $60,000 $20,000 $6,000 $15,000 $40,000 $4,000 $10,000 $20,000 $2,000 $5,000 $0 $0 $0 2018 2019 2020 2021 2022 2023 202
Slide 18: Accelerating Growth through Strategic Brand Investment
Accelerating Growth through Strategic Brand Investment 43% of US decaf drinkers Short Term Initiatives recognize Swiss Water • Refresh brand identity Decaf – accelerating brand awareness • Digital marketing optimization • Deepen business development efforts across key regions Building on strong bran
Slide 19: Exploring New Revenue Streams
Exploring New Revenue Streams Developing the premium decaffeinated coffee marketplace • Relaunching customer online marketplace Exploring caffeine capture and sale • Caffeine market is moving away from synthetic caffeine • Natural caffeine prices remain high due to demand • Incremental EBITDA: $3 –
Slide 20: Strong Financial Growth
Strong Financial Growth In $000’s except per share amounts 12 months ended Dec 31 2021 2022 2023 2024 Sales $ 125,076 $ 176,935 $ 166,277 $ 173,129 Gross Profit 17,611 26,088 18,798 26,190 Operating Income 6,686 13,381 5,630 11,055 Net (loss) Income 496 2,387 (528) 1,269 Adjusted EBITDA 10,533 16,65
Slide 21: Executive Leadership & Board of Directors
Executive Leadership & Board of Directors Frank Dennis Iain Carswell Owen Horn Marisol Pinzon Alan Wallace Frank Dennis Justin C. Jacobs Robert B. Johnston PRESIDENT & CEO CFO VP | OPERATIONS MD | TRADING DIRECTOR, CHAIR OF DIRECTOR, DIRECTOR DIRECTOR & DEVELOPMENT THE BOARD PRESIDENT & CEO Sam Hame
Slide 22: Balanced Capital Allocation
Balanced Capital Allocation Increasing ▪ New facility financed with debt and Company’s FCF (now complete) Free Cash Flow (FCF) ▪ Minimal ongoing MOB CAPEX ($1-$2M) ▪ Interest costs being reduced Debt Reduction ▪ Principal debt repayments of $6M/year of construction loans (current $57M) ▪ Target of 2
Slide 23: De-Levering Balance Sheet
De-Levering Balance Sheet December 31, Multiple of 2024 balance 2024 EBITDA (in millions) (1) Notes Working Capital ABL(2) $ 36 Will fluctuate with NY’C’ Price Construction Loans $ 57 4.0x Target: 2.5x – 3.0x $6M repayment/year Equity Value (3) $ 31 2.2x Notes: (1) 2024 EBITDA of $14.3M (2) Secured
Slide 24: Investment Summary
Investment Summary ▪ Global Decaf Market Offers Strong Growth Potential ▪ Unique Chemical-Free Decaffeination Process ▪ The World’s Only Branded Decaf ▪ New Facility Expands Capacity and Enhances Margins ▪ Free Cash Flow Enables Debt Reduction and Operational Growth 23
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