Innovative Food Holdings, Inc. · OTC:IVFH
Innovative Food — B. Riley Conference 2015
31 slides from Innovative Food's conference presentation, May 12, 2015
Slide 1: B. Riley Conference, May 12-14, 2015
B. Riley Conference May 12-14, 2015
Slide 2: Forward Looking Statement
Forward Looking Statement This document contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (the "Company") that are based on the current beliefs of the Company's management, as well as assumptions made by, and information currently available to, th
Slide 3: A Direct Approach to Specialty Food
A DIRECT APPROACH TO SPECIALTY FOOD 3
Slide 4: What is IVFH?
What is IVFH? Direct to Chef: A leading provider of specialty food products to chefs. Satisfying the daily specialty food needs of thousands of professional chefs. Direct to Consumer: Largest freshly prepared meal delivery company in the United States. Satisfying the complete daily food needs of
Slide 5: IVFH: Direct to Chef Market Snapshot
IVFH: Direct to Chef Market Snapshot 7,000+ specialty food products Products used by the leading chefs in the USA on a daily basis Access for chefs to the “newest of the new” and the “best of the best” specialty food products Products include: Seafood, Chocolates, Gluten Free, Artisanal, Spe
Slide 6: Market Leadership: Direct to Chef Market
Market Leadership: Direct to Chef Market Freshness: Products shipped directly from the farm/boat/producer and IVFH warehouses to the chef Market Reach: Partnerships with national, boots-on-the-ground, foodservice channel which enables nationwide marketing of products Quality: The best and most
Slide 7: A Sample Order
The Innovative Food Holdings Experience Direct to Chef Experience Simplicity, Efficiency A SAMPLE ORDER Chicago Area Chef Order 25 LB Fresh Hawaiian Ahi Tuna 1 LB Hand-Cut Emmentaler Cheese 24 Texas Cross Quail 1 Molecular Gastronomy Kit 1 Box Cheesecake Pops 7
Slide 8: The Innovative Food Holdings Experience: Competitors
The Innovative Food Holdings Experience Simplicity, Efficiency Competitors Calls Mainline Doesn’t carry Distributor Calls Local 3-day old Not fresh Distributor available Calls Local Not available Distributor Calls Regional Shipment Can ship delayed Distributor 8
Slide 9: The IVFH Experience
The Innovative Food Holdings Experience The IVFH Experience EDI-Calls Overnight Delivery As much as 2,500 packages out for delivery to chefs in a single day Shipped direct from source when possible World-class logistics Proactive monitoring of any issues Chef-to-Chef customer service 9
Slide 10: Selected Competition: Direct to Chef Market
Selected Competition: Direct to Chef Market Broadline selection Significant Inventory Minimums One stop shop for curated gluten free products, and other specialty food products Directly sourced to chef products for highest level of freshness Nationwide chef-to-chef customer service
Slide 11: Proven Financial Results
Proven Financial Results Revenue Adjusted EBITDA Direct to Chef Direct to Chef ($ in millions) $25.8 ($ in thousands) $22.5 $18 $2,800 $2,000 $11 $9 $7 $1,133 $405 $511 $214 2009 2010 2011 2012 2013 2014 ($498) 2008 2009 2010 2011 2012 2013 2014 11
Slide 12: The Fresh Diet: Taste, Convenience & Results
& freshciet. TASTE, CONVENIENCE & RESULTS! 12
Slide 13: The Fresh Diet Snapshot
The Fresh Diet Snapshot Largest Fresh Meal Delivery Solution Subscription model: Direct-to-consumer meal plan solution, each individual delivery includes a day’s worth of prepared food (3 meals and 2 snacks)- 5 days per week Technology: Proprietary Technology and Order Management Platform Deli
Slide 14: The Fresh Diet Consumer Solution
The Fresh Diet Consumer Solution Outcome-Based Healthy Eating Solution Freshness: Meals are always fresh, never frozen Customization: Customers can manage their meal selection, eating and delivery preferences all online (or via the call center), for easy and convenient service Quality: Highest
Slide 15: The Fresh Diet Advantage
The Fresh Diet Advantage Strong Business Fundamentals Committed Customer Base Five Sigma Operations Low Acquisition Cost 15
Slide 16: Growing Market
Growing Market Consumer Transition To Web Based Food Purchasing Less than 1.5% of food and beverage sales currently occur online1 Consumer demand for fresh, healthy, specialized diet and health segments Between 2013 and 2018, online grocery sales expected to grow at CAGR of 21.1%, reaching nea
Slide 17: The Fresh Diet Growth Strategy
The Fresh Diet Growth Strategy Growth Through Data-Driven Marketing Approach Digital Offline Brand Partnerships Marketing Marketing Awareness 17
Slide 18: Digital Marketing
Digital Marketing Digital Marketing as a Cornerstone of Customer Acquisition New digital marketing team started in October ramped up through Q1 Tested for optimal messaging and offers to drive traffic to the site Deployed lead capture strategy to drive leads into the sales funnel; implementing
Slide 19: Offline Marketing
Offline Marketing Direct Mail and Live Events Strategy Direct Mail Strategy 2015 Goal: Test targeted messaging with 3-tiered approach that drives conversion, targeting prospects and inactive customers 1st Tier- Direct mail (DM) 2nd Tier- Follow up email series 3rd Tier- Digital social and remarket
Slide 20: The Fresh Diet Focus
The Fresh Diet Focus Transform and Grow the Brand New leadership CEO- Specific category expertise to scale the brand CCO- Extensive culinary and R&D skills to drive menu development CMO- Deep brand building with recognized online expertise Sales Director- Extensive call center experience to optimize
Slide 21: Partnerships
Partnerships Partnerships are critical for enhanced distribution Partner with key offline and online health and wellness touch points to enhance Fresh Diet distribution and awareness Private label and Logistics Partnerships • Test private label partnerships to leverage order management and logis
Slide 22: Select Competition: Direct to Consumer Meals and Meal Kits
Select Competition: Direct to Consumer Meals and Meal Kits 22
Slide 23: IVFH Subsidiaries and Synergies
IVFH Subsidiaries and Synergies 23
Slide 24: IVFH Synergies: Strategy
IVFH Synergies: Strategy NEAR TERM LONG TERM IVFH sourcing of unique, high- Physical footprint for efficient speed-to-market quality products opportunity Purchasing efficiency from Leading Food Last-mile network for delivery of national contracts and expertise variety of specialty food products Thir
Slide 25: Management Team
Management Team Sam Klepfish Justin Wiernasz CEO, IVFH President, IVFH 20 years of experience 25 years of experience Turnaround and growth of IVFH specialty Turnaround and growth of IVFH food businesses specialty food businesses Food, investment banking, small cap, Food distribution and
Slide 26: IVFH: Select Financial Data
IVFH: Select Financial Data 26
Slide 27: Full Year 2014 Direct to Chef Proven Financial Results
Full Year 2014 Direct to Chef Proven Financial Results Revenue Adjusted EBITDA Direct to Chef Direct to Chef ($ in millions) $25.8 ($ in thousands) $22.5 $18 $2,800 $2,000 $11 $9 $7 $1,133 $405 $511 $214 2009 2010 2011 2012 2013 2014 ($498) 2008 2009 2010 2011 2012 2013 2014 27
Slide 28: Full Year 2014 Revenue and Adjusted EBITDA
Full Year 2014 Full Revenue and Adjusted EBITDA ($ in millions) Revenue Adjusted EBITDA $30.8 $2 $22.5 $1.4 2013 2014 2013 2014 • Decline due to FD acquisition costs and FD transition towards profitability • Q4 Focus on FD efficiency , process and e-commerce driven marketing transition 28
Slide 29: Q1 2015 vs. Q1 2014 Sales
Q1 2015 vs. Q1 2014 Sales ($ in millions) Q1 Total Sales Chef Sales The Fresh Diet Sales Sequential quarterly growth * $11.1 $6.5 $4.6 $3.1 $5.5 $5.5 Q1-2014 2015 Q1-2014 2015 Q4 -2014 2015 *Acquired August 2014 29
Slide 30: Q1 2015 Cash EBITDA
Q1 2015 Cash EBITDA ($ in thousands) Q1 Cash EBITDA Q1 Chef Cash EBITDA The Fresh Diet Cash EBITDA Q1 2015 $576 600 200 500 0 Q1 EBITDA Q1 Marketing And -200 Advertising Spend Q1- 2015 400 576 544 -400 Q1-2014 2015 300 -600 200 Q1 2014 Q1 2015 -800 (466) Chef Cash EBITDA -1000 Fresh Diet Q1 2015 • D
Slide 31: IVFH Capitalization Profile - Q1 2015
IVFH Capitalization Profile- Q1 2015 22.4 million shares outstanding $1 million credit line Over $3.2 million cash Recent Market Cap: Approx. $29 million For more information please visit www.ivfh.com Follow us- 31