Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Shareholder Meeting (May 2012)
32 slides from Lassonde Industries, Inc. Class A's shareholder meeting presentation, May 15, 2012
Slide 1: Annual General Meeting of Lassonde Industries Inc.
Annual General Meeting of Lassonde Industries Inc. May 15, 2012 Financial Results for Fiscal 2011 and First Quarter 2012
Slide 2: Highlights–Fiscal 2011: Earnings
Highlights–Fiscal 2011: Earnings In millions of $ Years ended (except EPS) December 31, %Δ %Δ 2011 2010 2009 11 vs 10 10 vs 09 (IFRS) (IFRS) (GAAP) Sales 760.3 536.2 524.2 41.8% 2.3% Operating profit 60.3 50.2 47.4 20.3% 5.8% Operating profit / Sales 7.9% 9.4% 9.0% Profit 34.6 32.0 30.6 8.1% 4.5% Pr
Slide 3: Highlights–Fiscal 2011: Earnings
Highlights–Fiscal 2011: Earnings Sales of $760.3M, $224.1M over $536.2M in 2010: – Includes sales of CPC from August 12, 2011, totalling $178.6M; – Sales in Canadian units are up 8.5% due to a strong performance in the retail sector; – Unfavourable impact of exchange rate on sales made in U.S. d
Slide 4: Highlights–Fiscal 2011: Earnings
Highlights–Fiscal 2011: Earnings Financial expenses of $13.9M versus $4.6M in 2010, $9.3M: – The increase is entirely attributable to the financing of the CPC acquisition; Effective tax rate of 25.4% in 2011 compared to an effective rate of 29.2% in 2010: – This reduction is explained by a fav
Slide 5: Highlights–Fiscal 2011: Statements of Financial Position
Highlights–Fiscal 2011: Statements of Financial Position In millions of $ As at December 31, %Δ %Δ 2011 2010 2009 11 vs 10 10 vs 09 (IFRS) (IFRS) (GAAP) Working capital 137.5 132.1 109.7 4.1% 20.4% Property, plant and equipment 237.5 149.8 144.6 58.5% 3.6% Total assets 798.0 368.9 345.2 116.4% 6.8%
Slide 6: Fiscal 2011–Free Cash Flow Analysis
Fiscal 2011–Free Cash Flow Analysis In millions of $ Years ended December 31, Variance 2011 2010 2011-2010 Free cash flows Profit 34.6 32.0 2.6 Adjustments Amortization and Depreciation 23.1 16.5 6.6 Pension plans and other (4.3) (0.1) (4.2) Change in non-cash working capital (7.6) 3.7 (11.3) Cash f
Slide 7: Highlights–First Quarter 2012
Highlights–First Quarter 2012 In millions of $ First Quarters (except EPS) ended March 31, April 2, %Δ $Δ 2012 2011 12 vs 11 12 vs 11 Sales 233.4 133.0 75.5% 100.4 Operating profit 13.2 10.6 24.4% 2.6 Operating profit/Sales 5.6% 8.0% Profit attributable to shareholders 5.6 6.7 -16.7% (1.1) EBITDA 21
Slide 8: Highlights–First Quarter 2012
Highlights–First Quarter 2012 Sales of $233.4M, $100.4M over $133.0M in 2011: – Sales of CPC of $97.2M; – Sales in Canadian units are up 2.4% due to: Selling price increases resulting from higher raw material costs… partly offset by a slight decrease in sales volume and an increase of $1.4M
Slide 9: Highlights–First Quarter 2012
Highlights–First Quarter 2012 Financial expenses of $4.4M versus $1.0M in 2011, $3.4M: – The increase is entirely attributable to the financing of the CPC acquisition; Effective tax rate of 25.4% for Q1-2012 compared to an effective rate of 29.1% in 2011: – The 2012 rate represents the average
Slide 10: Dividends and Outlook for 2012
Dividends and Outlook for 2012 Dividends: – Quarterly dividend of $0.31 per share (payable on June 15 for Q1); – Increase of 3.3% over 2011; – On an annualized basis, represents approximately 25% of 2011 profit attributable to shareholders; Outlook: – In Canada: Sales expected to be slightly hig
Slide 11: LASSONDE INDUSTRIES INC. New North American Footprint
LASSONDE INDUSTRIES INC. New North American Footprint 11
Slide 12: The Company
The Company Lassonde Industries Inc. 2011 Sales: $760.3 million Lassonde Industries Inc. develops, manufactures, and markets distinctive food products. A. Lassonde Inc. Lassonde Specialties Inc. The Canadian leader in the Develops, manufactures, and development, manufacture, and markets specialty fo
Slide 13: Our North American Footprint
Our North American Footprint Our 14 manufacturing facilities are strategically located and allow us to serve our customers throughout North America: Lassonde Toronto, ON Lassonde Specialties Boisbriand and St-Damase, QC Lassonde Lassonde Lassonde Thornbury, ON Calgary, AB Rougemont, QC (Multiple f
Slide 14: Canadian Market Structure
Canadian Market Structure The ready-to-drink fruit juice and fruit drink industry is a market of approximately $1.8 billion broken down as follows: – $1.5 billion in Retail sales (grocery); – $0.3 billion in Food Service sales; The industry comprising soups, oils, pasta sauces, other sauces, and
Slide 15: The Canadian Market: Our Clients
The Canadian Market: Our Clients Food retailers and big box stores: – Loblaws, Sobeys, Metro, Walmart and Costco control 72.1% of the Canadian grocery store market. The food retail market is therefore highly concentrated in Canada. Food service: – Sysco, GFS and Colabor are key distributors in t
Slide 16: Market Structure in the United States
Market Structure in the United States The American fruit juice and fruit drink industry is a US$14.0 billion market; The 10 largest retailers control 56% of the market in the food industry: National Retailers Sales % (in US $ billion) Walmart/Sam's Club 188,8 24,2 Kroger 65,7 8,8 Costco 39,9 5,3
Slide 17: U.S. Market: Our Clients
U.S. Market: Our Clients Sell to 47 of the top 50 U.S. food retailers; Diverse customer base covers multiple channels and segments; Strong relationships driven by depth of market knowledge and responsiveness to customer needs. Customer Categories Food Limited Grocery Dollar Drug Club Mass Natu
Slide 18: U.S. Market: Shelf-Stable Fruit Juices and Drinks
U.S. Market: Shelf-Stable Fruit Juices and Drinks U.S. private label market ~ US$1.1 billion in size, representing 21% of the ~ US$5.2 billion market of shelf-stable juices and non-carbonated soft drinks; CPC is one of the two leaders in the private label juice category with Cott (Cliffstar);
Slide 19: Competitive Environment
Competitive Environment no name® 19
Slide 20: Key Issues
Key Issues Consolidation of North American clientele; – Target in Canada; – North American presence of Costco, GFS, Sysco, and Walmart; Rapidly changing consumption patterns; – People more concerned about health; – Demographic diversity; – Aging of the population; Weak growth in per capita con
Slide 21: Corporate Strategy
Corporate Strategy To offer consumers the right product in the right size To consolidate To focus on healthy products To innovate To promote sustainable development 21
Slide 22: Corporate Strategy–To Consolidate and To Innovate
Corporate Strategy–To Consolidate and To Innovate Our priority in fiscal 2012 is to optimize the impact of the CPC acquisition but Lassonde remains on the lookout for opportunities to: – Maintain a critical mass to stay relevant for business partners; – Be better positioned in a market in the food
Slide 23: To Innovate
To Innovate | x Los MOLINOS, ‘PASTA SAUCE Bright L RICH & DELICIOUS ORIGINAL Lassonde 23 Industries
Slide 24: To Focus on Healthy Products
To Focus on Healthy Products 24
Slide 25: To Promote Sustainable Development
To Promote Sustainable Development Vision: Lassonde Industries Inc. is committed to being a leader in sustainable development by demonstrating to our stakeholders that our products respect the environment and society and that they promote the health and well-being of consumers. Objectives: – To
Slide 26: To Promote Sustainable Development
To Promote Sustainable Development Commitments in our three priority areas for action: – Packaging: To use packaging responsibly; – Water: To reduce water consumption in our processes; – Health: To promote health among our employees and in local communities; Other initiatives: – Reduction of our
Slide 27: Corporate Strategy–Priorities for 2012
Corporate Strategy–Priorities for 2012 To maintain our margins in an environment of highly volatile raw material prices; To optimize the impact of the CPC acquisition; – Maximizing purchasing and selling synergies between Clement Pappas & Company, Inc. and A. Lassonde Inc.; – Securing human capi
Slide 28: Our Financial Performance
Our Financial Performance 28
Slide 29: Selected Financial Information‒5 Years
Selected Financial Information‒5 Years Sales (in millions of $) EBITDA (in millions of $) 90.0 800.0 760.3 83.4 * CAGR 5 years: 16.6% * CAGR 5 years: 18.0% 80.0 700.0 70.0 66.7 64.2 600.0 524.2 536.2 60.0 56.4 505.5 500.0 50.0 45.3 400.3 400.0 40.0 300.0 30.0 200.0 20.0 100.0 10.0 0.0 - 2007 2008 20
Slide 30: Selected Financial Information–5 Years
Selected Financial Information–5 Years EBIT (in millions of $) EPS (in $) 6.00 * CAGR 5 years: 17.6% 60.3 * CAGR 5 years: 20.4% 60.0 5.12 5.00 4.86 50.2 4.62 50.0 47.4 4.39 42.2 4.00 40.0 3.41 34.7 3.00 30.0 20.0 2.00 10.0 1.00 0.0 0.00 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Financial dat
Slide 31: Our Future
Our Future To provide a dependable To be close to consumers and service that meets our clients’ clients expectations To continue to innovate To take advantage of our To try to do as well in the future acquisition of CPC in terms of as we have done in the past both product lines and economies of scal
Slide 32: Annual General Meeting of Lassonde Industries Inc.
Annual General Meeting of Lassonde Industries Inc. May 15, 2012 Financial Results for Fiscal 2011 and First Quarter 2012