Superior Plus Corp · TSX:SPB
Superior Plus — Investor Presentation (March 2020)
24 slides from Superior Plus's investor presentation, March 2020
Slide 1: March Investor Update
March Investor Update March 2020 Superior Plus Corp. TSX: SPB
Slide 2: Forward-Looking Statements and Information
Forward-Looking Statements and Information All figures shown in Canadian Dollars (“CAD”) unless otherwise stated. Certain information included herein is forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information may include statements regarding
Slide 3: Superior Overview
Superior Overview Superior Plus is a premier North American diversified industrial company with two businesses: Energy Distribution and Specialty Chemicals • A leading propane distributor and marketer in Canada, the Eastern US and California (operating in retail and wholesale propane markets); and •
Slide 4: Superior Plus Overview
Superior Plus Overview Energy Distribution • Approximately 73% of EBITDA from operations(1) Energy Distribution Sales Volume(4) • 3rd largest retail propane distributor in North America(2) • 5th largest retail propane distributor in the United States(2) Canadian Propane Distribution • Leading distri
Slide 5: Energy Distribution
Energy Distribution “s superior Plus
Slide 6: North American Energy Distribution Strategy Summary
North American Energy Distribution Strategy Summary Superior Plus is well positioned in the North American propane industry U.S. Market Opportunity Canadian Platform U.S. Propane Business is is Attractive is Proven Ripe for Transformation • Most competitors have • Sales and marketing driving • Exper
Slide 7: Energy Distribution Overview
Energy Distribution Overview Business Summary Geographic Footprint Leading retail supplier of propane in Canada and established footprint in the Eastern U.S. propane market Growth opportunities through new markets and industry consolidation Leading competitive position with full service capabi
Slide 8: Canadian Propane Distribution
Canadian Propane Distribution Total Volume and Gross Profit by Segment • Canadian propane distribution includes Superior Propane, Superior Gas Liquids and United Pacific 6% 8% 7% Energy (“UPE”) 9% 14% • Superior Propane is the leading propane 7% 9% Other distributor in Canada with a diversified cust
Slide 9: U.S. Propane Distribution
U.S. Propane Distribution Volume and Gross Profit by Segment 14% • U.S. propane distribution includes Superior’s retail 26% propane distribution business in the Eastern U.S., upper Midwest and California • U.S. propane distribution customer mix is less Commercial 85% diversified than Canada and prim
Slide 10: Specialty Chemicals
Specialty Chemicals Seleeenedelt:
Slide 11: Specialty Chemicals - Segment Summary
Specialty Chemicals - Segment Summary Business Summary Geographic Footprint North America South America One of North America’s largest producers and Production facilities located at 9 sites across North America and one facility in Chile(2) supplier of sodium chlorate and sodium chlorite Diversifie
Slide 12: Specialty Chemicals – Business & Product Overview
Specialty Chemicals – Business & Product Overview Hardwood Others De-icing Others Exports Others Pulp (Airport runways) (chemicals, food, 7% electronics) 2% 7% 7% 6% 21% (1) Percentages based on Specialty Chemicals FY 2017 sales volumes. 11
Slide 13: 2020 Areas of Focus
2020 Areas of Focus Superior Plus Energy Distribution Specialty Chemicals • Health, safety & environment • Organic growth • Organic growth • Continuous improvement • Investment in sales and • Developing advanced sales • Continued focus on marketing in support of and marketing approach acquisitions g
Slide 14: Financial Information & Key Credit Highlights
Financial Information & Key Credit Highlights
Slide 15: Q4 & FY 2019 and 2018 Results
Q4 & FY 2019 and 2018 Results YTD YTD Q4 2019 Q4 2018 Q4 2019 Q4 2018 Adjusted EBITDA(1) $177 $153 $525 $374 (as reported) million million million million EBITDA Adjusted EBITDA(1) $166 $153 $486 $374 (Pre-IFRS 16) million million million million AOCF before transaction and $145 $133 $406 $302 other
Slide 16: 2020 Adjusted EBITDA and Leverage Guidance
2020 Adjusted EBITDA and Leverage Guidance • 2020 Adjusted EBITDA guidance range of $475.0M-$515.0M • Total debt to Adjusted EBITDA is anticipated to be in the range of 3.4x to 3.8x as at December 31, 2020 as cash generated from operations is used to repay debt Guidance 2020 Adjusted EBITDA Guidance
Slide 17: Credit Statistics
Credit Statistics • Strong EBITDA profile and ample free cash flow available for debt service Credit Facility EBITDA(1) (C$ millions) Senior Debt to Credit Facility EBITDA(1) $490 4.2x $446 3.6x 3.7x $292 2017A 2018A 2019 2017A 2018A 2019 Total Capital (C$ millions) Fixed Charge Coverage Ratio (2) (
Slide 18: Debt Maturity Profile and Credit Ratings
Debt Maturity Profile and Credit Ratings Debt Maturity Schedule (C$ millions) • Committed to strong BB credit rating • Superior has a staggered balanced maturity profile with $1,000 no material maturities until 2024 $473 • Prudent capital management • Payout Ratio of 40 – 60%(1) $500 $809 $400 • Cre
Slide 19: Summary
“ Superior Plus Summary
Slide 20: Investment Highlights
Investment Highlights SAFETY & COMPELLING ENVIRONMENT GROWTH COMMITMENT PROSPECTS Industry Strong Financial Safety & Environment Compelling Growth Leadership Profile Commitment Prospects • Experienced • Committed to BB • Continue to be an • Numerous unique management team credit rating industry lead
Slide 21: Questions
“ Superior Plus Questions
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Throughout the presentation, Superior has used the following terms that are not defined by GAAP, but are used by management to evaluate the performance of Superior and its businesses. Since non-GAAP financial measures do not have standardized meaning prescribed by GAAP an
Slide 23: Appendix
“ Superior Plus Appendix
Slide 24: Major Developments
Major Developments Fourth Quarter 2019 Results(1) Strong Third Quarter 2019 Results(2) Improved Second Quarter 2019 Results(3) 16% $176.7 39% $59.7 $153.0 $48.2 86% $42.8 $25.9 Q4 2018 Q4 2019 Q3 2018 Q3 2019 Q2 2018 Q2 2019 Recent Tuck-in Acquisitions 2019 Acquisitions • On January 9, 2020, Superio