Sunopta Inc.

Sunopta — Q3 2023 Earnings Presentation

32 slides from Sunopta's earnings presentation, Nov 8, 2023

  1. Slide 1: SunOpta Inc. Investor Presentation

    SunOpta Inc. Investor Presentation 1 © SunOpta Inc. 2023 1 November 2023

  2. Slide 2: Forward Looking Statements

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Forward Looking Statements This presentation may include forward-looking statements and therefore is subject to important risks and uncertainties. Actual results could differ materially from the conclusions, forecasts and pr

  3. Slide 3: SunOpta is a Global, Healthy Food & Beverage Company with a Strong Focus on Sustainability

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 SunOpta is a Global, Healthy Food & Beverage Company with a Strong Focus on Sustainability Our Revenue Consists of Four Product Categories $608 Million TTM Q3 2023 Revenues Beverages and broths Fruit snacks We are focused on

  4. Slide 4: Reasons to Invest in SunOpta

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 5 Reasons to Invest in SunOpta ① We are a plant-based company with a strong commitment to ESG ② We participate in the #1 global food trend, plant-based foods and beverages ③ We have competitive advantages in our plant-based

  5. Slide 5: Key Facts

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Key Facts Founded in Canada as a sustainability company Now headquartered in Eden Prairie, MN 1,150 associates 7 plants in the US and Canada More than 40 acquisitions over the past 15 years Go-to-market principally in co-man

  6. Slide 6: Timeline / History

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Timeline / History 2003 1973 Name changed to SunOpta Inc. Company founded as Stake 1999 recognizing that the future of the 2016 Technologies Ltd (STKL) on Company was in natural and 2003 - 2015 SunOpta became a 2017 Acquisit

  7. Slide 7: Timeline / History

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Timeline / History 2023 2019 2021 Company divested Joe Ennen appointed Company acquired Frozen Fruit business, 2017 to 2018 CEO in April and Scott 2019 to 2020 WestSoy (later 2022 completing multi-year Company focused on Huc

  8. Slide 8: Five Strategic Imperatives

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Five Strategic SunOpta hasthat Imperatives a Clear willSet of Strategic Deliver Priorities Outstanding Financial Results 8 © SunOpta Inc. 2023

  9. Slide 9: SunOpta has a Solid Growth Plan to Continue Delivering Exceptional Shareholder Value

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 SunOpta has a Solid Growth Plan to Continue Delivering Exceptional Shareholder Value Adjusted EBITDA Trend (1) Continuing operations • When comparing Q3 ’23 to Q3 ‘22, revenue and adjusted EBITDA increased 6% and 8% respecti

  10. Slide 10: Recent history of portfolio transformation

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Recent history of portfolio transformation 2020 2022 2023 Divested Divested Divested Tradin Organics to Sunflower business Frozen Fruit business invest in plant-based given commodity as last remaining capacity expansion natu

  11. Slide 11: We continue to evolve the portfolio to focus on value-add segments

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 We continue to evolve the portfolio to focus on value-add segments Past(1) Before Frozen Fruit Divestiture After Frozen Fruit Divestiture 30% 70% 100% 70% 30% (1) FY2019 Commodity Value-Add 11 © SunOpta Inc. 2023

  12. Slide 12: SunOpta's business is powered by its competitively advantaged capabilities

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 SunOpta’s business is powered by its competitively advantaged capabilities World class operational and technical expertise Complex manufacturing at scale SunOpta’s Disciplined capital allocation and Competitive project manag

  13. Slide 13: High performing manufacturing footprint across the US and Canada

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 High performing manufacturing footprint across the US and Canada OMAK, WA (2) ST. DAVIDS, ON PLANT BASED ALEXANDRIA, MN ALLENTOWN, PA • 5 Facilities MODESTO, CA FRUIT SNACKS • 2 Facilities MIDLOTHIAN, TX 13 © SunOpta Inc. 20

  14. Slide 14: Our core growth platforms serve a ~$15B TAM and an extended TAM of $100B

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Our core growth platforms and supporting capabilities serve a ~$15B TAM (vs. $3B in 2019) and an extended TAM of $100B Core 3-year Total 3-year How we Participate TAM CAGR TAM CAGR Packaged Beverage Nutritional Beverages Co-

  15. Slide 15: We are prioritizing three growth platforms

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 We are prioritizing three growth platforms that present outsized long-term growth potential for SunOpta Scaling Accelerating Expanding in Plant Based Better-For-You Snacking Nutritional Beverages ✓ Large & growing TAM ✓ Larg

  16. Slide 16: We have seen Long-Term Sustained Growth in Plant-Based Milk

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 We have seen Long-Term Sustained Growth in Plant-Based Milk Total US Sales of Non-Dairy Milk at Current Prices Long-term CAGR of 9% Year Category $mm % Change 2014 $1,744 2015 $1,916 10% 2016 $2,021 5% 2017 $2,141 6% 2018 $2

  17. Slide 17: Consumer fundamentals supporting plant-based milks are durable and enduring

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 The consumer fundamentals supporting plant-based milks are durable and enduring creating 40 years of category growth Very broadly penetrated category Plant-based milk household penetration1 Supported by multiple purchase dri

  18. Slide 18: Our Better-For-You Snacking business caters to a specialized, high growth segment

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Our Better-For-You Snacking business caters to a specialized, high growth segment of the fruit snack market OMAK, WA PLATFORM OVERVIEW ST. DAVIDS, ON • Clean-label, organic layered fruit bars BI-COASTAL PLANT NETWORK • Mix i

  19. Slide 19: Our new 330ml capability unlocks access to the RTD segment

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Our new 330ml capability unlocks access to the RTD segment, a ~$5B (retail) market with a long runway for growth RETAIL RTD MARKET BY CHANNEL (1) CATEGORY GROWTH DRIVERS(2) $5B HOUSEHOLD PENETRATION (2022) 10% >2X 54% 24% 25

  20. Slide 20: SunOpta has a Diverse & Impressive Base of Customers, Partners, and Brands

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 SunOpta has a Diverse & Impressive Base of Customers, Partners, and Brands Representative Retail and Foodservice Customer Base Representative Private Label Customers Representative Co-manufacturing Customers Branded Portfoli

  21. Slide 21: SunOpta's Branded Portfolio brings Innovation to the Market

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 SunOpta’s Branded Portfolio brings Innovation to the Market 21 © SunOpta Inc. 2023

  22. Slide 22: Supported by best-in-class operating performance and execution

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Supported by best-in-class operating performance and execution Operational Scaled Aggressive Integrated Service Expertise Networks Investment Solutions Excellence Highest National, Added capacity & Tailored customer >99% LTM

  23. Slide 23: We made significant progress against our ESG commitments in 2022

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 We made significant progress against our ESG commitments in 2022 and are making real progress evidenced by upgrades from two of the most respected rating agencies Operations Supply Chain Product / Packaging • Pursuing Zero W

  24. Slide 24: Our CULTURE is a differentiator and FUNDAMENTAL to our success

    SunOpta Inc. Investor Presentation Fueling the Future of Food November 2023 Our CULTURE is a differentiator and FUNDAMENTAL to our success SunOpta Organizational Health Survey 92% Employee Participation Rate in Most Recent Survey Overall Score Purpose Strategy +13% 4.3 I have a clear +22% 4.2 I have

  25. Slide 25: Appendix

    Appendix Key Financial Metrics Reconciliation of Non-GAAP Measures This presentation includes certain measures not derived in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Such measures should not be considered substitutes for any measures de

  26. Slide 26: Income Statement

    Key Financial Metrics Income Statement Continuing Operations ($ millions, except per share amounts) Q3 2023 YTD Q3 2022 YTD Revenues (1) $448.7 $431.6 Gross profit (2) $63.0 $75.9 As % of Revenue 14.0% 17.6% Operating income (3) $3.2 $14.5 As % of Revenue 0.7% 3.4% Adjusted earnings (4) $3.4 $4.7 Ad

  27. Slide 27: Balance Sheet & Debt Capital

    Key Financial Metrics Balance Sheet & Debt Capital As at ($ millions) September 30, 2023 $201.0 Working capital (1) Total assets $746.7 Asset-based credit facilities $192.2 Five-year, $230 million asset-based revolving credit facility, subject to borrowing base capacity (the “Tranche A Subfacility”)

  28. Slide 28: Reconciliation of U.S. GAAP Results to Adjusted Earnings/Loss and Adjusted EPS

    Reconciliation of U.S. GAAP Results to Adjusted Earnings/Loss and Adjusted EPS (Slide 26) The following table presents a reconciliation of adjusted earnings (loss) from loss from net earnings (loss), which we consider to be the most directly comparable U.S. GAAP financial measure. 28 © SunOpta Inc.

  29. Slide 29: Reconciliation of U.S. GAAP Results to Adjusted EBITDA

    Reconciliation of U.S. GAAP Results to Adjusted EBITDA (Slide 26) The following table presents a reconciliation of adjusted EBITDA from loss from net earnings (loss), which we consider to be the most directly comparable U.S. GAAP financial measure. 29 © SunOpta Inc. 2023 Refer to footnotes (a)-(k) o

  30. Slide 30: Reconciliation of U.S. GAAP Results to Adjusted Earnings/Loss, Adjusted EPS and Adjusted EBITDA

    Reconciliation of U.S. GAAP Results to Adjusted Earnings/Loss, Adjusted EPS and Adjusted EBITDA a) For the first three quarters of 2023, reflects the estimated pre-tax loss on the divestiture of Frozen Fruit which is recorded in loss from discontinued operations. For the first three quarters of 2022

  31. Slide 31: Quarterly Adjusted EBITDA from Continuing Operations

    Quarterly Adjusted EBITDA from Continuing Operations (Slide 9) The following table presents quarterly adjusted EBITDA from continuing operations. 31 © SunOpta Inc. 2023

  32. Slide 32: 7078 Shady Oak Road Eden Prairie, Minnesota 55344 www.sunopta.com

    7078 Shady Oak Road Eden Prairie, Minnesota 55344 www.sunopta.com 32 © SunOpta Inc. 2023

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