Hostess Brands — Investor Presentation (January 2017)
18 slides from Hostess Brands's investor presentation, Jan 9, 2017
Slide 1: Hostess Brands Investor Presentation January 2017
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 0 ® 3 32 67 Text ® HOSTESS BRANDS INVESTOR PRESENTATION January 2017
Slide 2: Disclaimer: Forward Looking Statements
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 1 ® 3 32 67 Text DISCLAIMER Forward Looking Statements This investor presentation contains statements reflecting our views about our future performance
Slide 3: Experienced Senior Leadership
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 2 ® 3 32 67 Text Hostess EXPERIENCED SENIOR LEADERSHIP Dean Metropoulos Executive Chairman Bill Toler President & CEO Tom Peterson EVP & CFO Executiv
Slide 4: I. Business Overview
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 3 ® 3 32 67 Text ®I. BUSINESS OVERVIEW
Slide 5: Key Business Themes
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 4 ® 3 32 67 Text KEY BUSINESS THEMES Iconic brands with nearly 100-year history Hostess business transformation: Significant capital investment (
Slide 6: Brand Strength Driving Growth and Category
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 5 ® 3 32 67 Text $2.68 $3.00 $4.39 $4.40 $4.85 BRAND STRENGTH DRIVING GROWTH AND CATEGORY Special emotional relationship with consumers U.S. consumers
Slide 7: Hostess Still Has Significant Headroom for Growth and Share Gains
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 6 ® 3 32 67 Text 16% 22% 2016 OldCo HOSTESS STILL HAS SIGNIFICANT HEADROOM FOR GROWTH AND SHARE GAINS Hostess $ share of SBG category1 Distribution e
Slide 8: Hostess Has Significant Room for Growth Both In and Beyond SBG
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 7 ® 3 32 67 Text HOSTESS HAS SIGNIFICANT ROOM FOR GROWTH BOTH IN AND BEYOND SBG FREEZER AISLE FOOD-SERVICE INTERNATIONAL IN-STORE BAKERY CLUB NEW FORMS
Slide 9: Opportunities for the Future
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 8 ® 3 32 67 Text Acquisition of Superior Cake Products, Inc.1 Cross-category licensing partnerships OPPORTUNITIES FOR THE FUTURE Core New product
Slide 10: Hostess' Approach to Better-for-You
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 9 ® 3 32 67 Text HOSTESS’ APPROACH TO BETTER-FOR-YOU Objective: provide better-for-you options for consumers while maintaining brand equity and taste c
Slide 11: II. Financial Overview
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 10 ® 3 32 67 Text ®II. FINANCIAL OVERVIEW
Slide 12: Significant Growth Since Re-Launch with Meaningful Upside Potential
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 11 ® 3 32 67 Text SIGNIFICANT GROWTH SINCE RE-LAUNCH WITH MEANINGFUL UPSIDE POTENTIAL Adj. EBITDA Capital Expenditures Net Revenue Gross Profit(1) ($ i
Slide 13: Strong Momentum Continues in Q3 2016
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 12 ® 3 32 67 Text 136 162 41 56 3 2 1 $139 $164 $42 $56 YTD '15 YTD '16 Q3 '15 Q3 '16 204 239 62 83 5 4 2 $209 $243 $64 $83 YTD '15 YTD '16 Q3 '15 Q3 '
Slide 14: Sustainability of Margins
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 13 ® 3 32 67 Text SUSTAINABILITY OF MARGINS Strong margin profile driven by: (i) the health of the SBG category combined with (ii) Hostess’ leading bra
Slide 15: Attractive Margin Profile Relative to Peers
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 14 ® 3 32 67 Text ATTRACTIVE MARGIN PROFILE RELATIVE TO PEERS LTM 9/30/16 Adj. EBITDA Margins LTM 9/30/16 FCF Conversion(1) High growth food & beverage
Slide 16: IV. Appendix
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 15 ® 3 32 67 Text ®IV. APPENDIX
Slide 17: Hostess Non-GAAP Reconciliations (Unaudited)
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 16 ® 3 32 67 Text HOSTESS NON-GAAP RECONCILIATIONS (UNAUDITED) 16 Twelve Months Ended 30-Sep-16 Nine Months Ended 30-Sep-16 Three Months Ended 30-Sep-1
Slide 18: Glossary
0 112 192 1st slice 0 176 240 2nd slice 164 222 245 3rd slice 255 143 155 4th slice 230 0 24 5th slice 210 230 250 2nd bar 230 235 240 Box fill PAGE 17 ® 3 32 67 Text GLOSSARY Term Definition ACV All-commodity volume (%) BFY Better-for-you C-store Convenience store ISB In-store bakery LTO Limited ti
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