Slide 1: Second Quarter 2022 Conference Call
Second Quarter 2022 Conference Call August 5, 2022
Slide 2: Disclaimer
Disclaimer This presentation is not intended to form the basis of any investment decision and should not be considered as a recommendation by Premium Brands Holdings Corporation (the “Company”) or any other person in relation to the Company’s business or the securities of the Company. This presentat
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward looking statements with respect to the Company, including, without limitation, statements regarding its business operations, strategy and financial performance and condition, proposed acquisitions, capital projects and plans, outlook and
Slide 4: Today's Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer Staying the Course Through Adversity 3
Slide 5: Key Messages
Key Messages • Record second quarter results despite ongoing headwinds • Sales up 23.1% to $1.52 billion • Adjusted EBITDA up 16.6% or $18.6 million • Adjusted EPS up 12.2% or $0.15 per share to $1.38 per share • Selling price increases of $134.4 million in the quarter – $490 million for the trailin
Slide 6: Staying the Course Through Adversity
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Slide 13: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales # Sales # Sales Seafood 1 40 3 366 8 410 4 108 4 1,025 20 1,950 Distribution - - 4 233 2 1,048 1 896 6 103 13 2,280 Protein - - 4 231 16
Slide 14: Q2-2022 Financial Update
Q2-2022 Financial Update Staying the Course Through Adversity 13
Slide 15: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 Revenue 761.5 945.4 976.6 1,234.7 1,519.9 1,600.0 50.0% Long-term targeted organic volume growth rate (4% - 6%) 1,400.0 40.0% Growth Drivers 1,200.0 • Selling price inflation – $134.4m 30.0% • Acquisitions –
Slide 16: Organic Volume Growth Rate
Organic Volume Growth Rate Challenges impacting the Company’s Q2- 2022 organic volume growth rate: 20.0% Specialty Foods • Protein Group’s sales including poor spring weather, less featuring, 16.0% Long-term targeted consumer spending shifting from organic volume growth retail to foodservice and pri
Slide 17: Major Organic Growth Drivers
Major Organic Growth Drivers Seafood Distribution Protein Sandwich Bakery Culinary Processed lobster and crab Non-distributive foodservice Branded meat snack sticks Leveraging IP and North Leveraging new Stuyver’s Product solution provider for initiatives in foodservice and sales of differentiated p
Slide 18: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022P Revenue 535.2 794.3 960.1 1,043.0 1,221.8 1,484.5 1,857.5 2,198.3 3,025.8 3,649.4 4,068.9 4,931.7 5,875.0 70.0% 2010 to 2021 CAGR is 22.4% 6,000.0 Midpoint of 2022 guidance of $5,
Slide 19: Weekly Sales Trend
Weekly Sales Trend 140,000 120,000 100,000 80,000 $000's 60,000 40,000 20,000 - 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Week # 2022 PBH Total 2021 PBH Total 2020 PBH Total 2019 PBH Total Staying the Course Through Adversity 18
Slide 20: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 EBITDA 74.2 88.3 67.1 112.2 130.8 Margin 9.7% 9.3% 6.9% 9.1% 8.6% 12.0% Positive factors Reflects IFRS-16 140.0 11.0% • Selling price inflation – $134.4m 120.0 • Acquisitions 10.0% • Organic sales g
Slide 21: Quarter Adjusted EBITDA Margin Performance
Quarter Adjusted EBITDA Margin Performance Factors impacting the Company’s Q2-2022 EBITDA margin relative to 10% target: Specialty Foods • Retailer notice periods associated with 10.0% implementing selling price increases on branded products 8.0% • Sales challenges • Increased outside storage costs
Slide 22: Commodity Trends – Pork
Commodity Trends – Pork Pork Index Chart 9.0 8.0 Demand factors 7.0 • Substitution resulting from record beef and 6.0 chicken prices 5.0 Supply factors USD Based 4.0 • Significant increases in Index China’s production Per lbs 3.0 • General inflation 2.0 including rising labor costs 1.0 0.0 week 13 w
Slide 23: Commodity Trends – Beef
Commodity Trends – Beef Beef Index Chart 18.0 Demand factors 16.0 • Weakening consumer 14.0 sentiment 12.0 • US exports, USD particularly to China 10.0 Based Index Supply factors 8.0 Per lbs • Droughts in key U.S. 6.0 growing regions 4.0 • Cost inflation including rising feed, labor and 2.0 transpor
Slide 24: Commodity Trends – Chicken
Commodity Trends – Chicken Chicken Index Chart Demand factors • Weakening consumer $3.85 sentiment • New QSR offerings $3.25 USD Supply factors Based Index $2.65 • Record US exports Per lbs • US hatchery issues $2.05 • Avian influenza • US industry $1.45 consolidation • General inflation $0.85 inclu
Slide 25: Commodity Trends – Lobster
Commodity Trends – Lobster Lobster Index Chart 40.0 Demand factors 35.0 • COVID related lockdowns in China 30.0 • Lack of airline cargo 25.0 capacity to China USD • Weakening consumer Based 20.0 sentiment Index Per lbs • Recovery of the cruise 15.0 line industry 10.0 Supply factors • Strong spring l
Slide 26: Commodity Trends – Salmon
Commodity Trends – Salmon Salmon Index Chart 10.0 9.0 Demand factors 8.0 • Substitute for higher value seafood 7.0 products • Less retail featuring CAD 6.0 Based Supply factors Index 5.0 Per lbs • West coast farm 4.0 liquidations • Stable global supply 3.0 2.0 week 13 week 26 week 39 week 52 2019 20
Slide 27: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022P EBITDA 42.0 54.9 66.8 69.3 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 520.0 Margin 7.8% 6.9% 7.0% 6.6% 6.4% 7.5% 8.3% 8.7% 9.3% 8.4% 7.7% 8.7% 8.9% 2010 to 2021 CAGR is 23.6% (
Slide 28: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) 2017 2018 2019 2020 2021 2022 Earnings 31.7 38.4 38.5 21.2 53.5 61.5 EPS 1.07 1.21 1.10 0.57 1.23 1.38 Major positive factors Reflects IFRS-16 • EBITDA growth 70.0 $1.90 60.0 Major negative factors $1.70 50.0 • Incr
Slide 29: Five Year (2023) Sales Target
Five Year (2023) Sales Target (millions of dollars except percentages) Sales Notes Midpoint of 2022 guidance 5,875.0 Organic growth for 2023 assuming at a nominal organic growth Organic growth rates for 2019, 2020 and 2021 are 5.9%, 7.6% and 12.4%, rate of 6% 352.5 respectively. General long-term ta
Slide 30: Five Year (2023) Adjusted EBITDA Target
Five Year (2023) Adjusted EBITDA Target (millions of dollars except percentages) % of EBITDA Sales Notes Impact Midpoint of 2022 guidance 520.0 8.9% Retroactive impact of delayed pricing increases 28.3 Consists of Q1-2022 and Q2-2022 impacts 548.3 9.3% Contribution margins (CMs) for the Company’s ex
Slide 31: Projected Inventory
Projected Inventory (millions of dollars except days COS in inventory) Inventory Safety Customer Total Planned Q4-2022P Q2-2022 Built for Stock Supply Seasonality Reduction by Pre-PB H2-2022 Reduction Chains Businesses Objective Seafood Group 122.1 (30.2) - - (0.7) (30.9) 91.2 Distribution Group 144
Slide 32: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 Top end of targeted 920.0 total debt to EBITDA 5.0 ratio Top end of targeted senior 820.0 debt to EBITDA ratio 4.5 720.0 4.0 620.0 3.5 520.0 3.0 420.0 2.5 320.0 2.0 220.0 1.5 120.0 1.0 20.0 0.5 Available Credit (LHS) Total Debt to EBITDA (RHS
Slide 33: Free Cash Flow
Free Cash Flow (millions of dollars except per share amounts and percentages) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 TTM 2022P Payout ratio 106.4% 77.7% 69.6% 70.6% 65.2% 59.4% 53.0% 53.9% 48.4% 43.2% 36.6% 38.5% 38.1% 43.1% 48.7% 42.3% 43.0% Dividend per sha
Slide 34: Capital Allocations – Project Capex
Capital Allocations – Project Capex (in millions of dollars except percentages) Investment Investment Expected Group Q2-2022 YTD-2022 Completion To-Date Expected IRR Premier facility expansion Distribution 1.0 1.0 1.0 9.5 2023 Viandex facility expansion Distribution - - - 9.1 2023 Piller’s Wismer pl
Slide 35: Capital Allocation – Acquisitions
Capital Allocation – Acquisitions (millions of dollars except percentages) Group Q2-2022 Expected IRR Increased interest in Golden Valley Farms from 50% to 100% Protein 86.5 15% or greater Acquired King’s Command Protein Staying the Course Through Adversity 34
Slide 36: Questions?
Questions? Staying the Course Through Adversity 35