Slide 1: Third Quarter 2021 Conference Call
Third Quarter 2021 Conference Call November 4, 2021
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 and plans and objectives of or involving
Slide 4: Today's Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer Extraordinary Times Extraordinary Team 4
Slide 5: Key Messages
Key Messages • Record Q3 results driven by strong top and bottom-line growth in our Seafood and Distribution platforms • Record trailing twelve-month free cash flow per share of $5.80 • Commodity inflation, labor shortages and supply chain challenges continue • Demand remains strong in all channels
Slide 6: Protein
PROTEIN Extraordinary Times Extraordinary Team 6
Slide 7: Sandwich
SANDWICH Extraordinary Times Extraordinary Team 7
Slide 8: Bakery & Culinary
BAKERY & CULINARY Extraordinary Times Extraordinary Team 8
Slide 9: Seafood
SEAFOOD Extraordinary Times Extraordinary Team 9
Slide 10: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales # Sales # Sales Seafood - - 3 990 7 482 3 204 6 415 19 2,091 Distribution - - 3 250 5 1,068 1 878 4 63 13 2,259 Protein 2 83 2 49 12 938
Slide 11: Q3-2021 Financial Update
Q3-2021 Financial Update Extraordinary Times Extraordinary Team 11
Slide 12: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 1,600.0 Long-term targeted organic 60.0% volume growth rate (4% - 6%) 1,374.6 Positive factors 1,341.8 1,400.0 • Selling price inflation – $120.6m 50.0% • Acquisitions of Mermax, Allseas, 1,200.0 1,101.1 1,134.7 Starboard, Distributi
Slide 13: Growth Rates
Growth Rates Factors contributing to the lower Q3-2021 growth rate include: Organic Volume Growth Rate • SF: meat snack and kabob capacity 20.0% constraints which resulted in $20.7m of 16.0% product short shipments and the delay of new 12.0% sales initiatives • SF: less retail featuring 8.0% of bran
Slide 14: Major Growth Initiatives
Major Growth Initiatives Seafood Distribution Protein Sandwich Bakery Culinary • Lobster procurement • Leveraging new • Branded meat snack • Leveraging IP and • Branded naturally • Costco international strategies Frandon capacity to sticks programs in the North American leading fermented / clean • U
Slide 15: Recent Major Capacity Expansion Projects
Recent Major Capacity Expansion Projects Seafood Distribution Protein Sandwich Bakery Culinary • Ready’s new lobster • 56,500 sf expansion of • 107,000 sf expansion of • New 144,000 sf plant in • 41,000 sf expansion of • Reconfiguration of buying station in Maine Premier’s value-added Hempler’s meat
Slide 16: COVID Sales Impact
COVID Sales Impact (millions of dollars) Recovered COVID Sales Impact 30.0 26.4 21.1 11.4 10.0 5.3 0.6 (10.0) (9.7) (10.8) (16.1) (25.8) (30.0) Premium Food Distribution Specialty Foods PBH Total Foodservice Retail Total Extraordinary Times Extraordinary Team 16
Slide 17: COVID Sales Impact (Remaining Unrecovered)
COVID Sales Impact (millions of dollars) Remaining Unrecovered COVID Sales Impact 35.0 32.8 20.6 17.0 15.0 12.2 9.7 7.3 8.1 8.0 8.1 5.5 2.5 - - (0.3) (0.3) (5.0) Premium Food Distribution Specialty Foods PBH Total Airline / Cruiseline Foodservice Retail Supply Disruption Total Extraordinary Times Ex
Slide 18: Weekly Sales Trend
Weekly Sales Trend 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 Week # 2019 PBH Total 2020 PBH Total 2021 PBH Total Extraordinary Times Extraordinary Team 18
Slide 19: Quarter EBITDA Performance
Quarter EBITDA Performance (millions of dollars except percentages) Positive factors 160.0 12.0% • Selling price inflation • Acquisitions 140.0 130.2 11.0% • Organic sales growth 122.6 • Reversal of COVID related costs 120.0 105.1 10.0% • Reduced marketing and promotion costs 100.0 84.1 93.5 9.0% •
Slide 20: Commodity Trends – Pork
Commodity Trends – Pork Demand factors Pork Index Chart • Reopening of economies 9.0 • Substitution 8.0 • Consumer disposable 7.0 income 6.0 • Rising consumer prices USD Based 5.0 Supply factors Index • Labor shortages – 4.0 Per lbs particularly impacting 3.0 value-added inputs 2.0 • Rising feed cos
Slide 21: Commodity Trends – Beef
Commodity Trends – Beef Beef Index Chart Demand factors 18.0 • Reopening of economies • China imports 16.0 • Consumer disposable income 14.0 • Rising consumer prices USD Based 12.0 Supply factors Index Per lbs 10.0 • Labor shortages – particularly impacting 8.0 value-added inputs • Droughts – US, Au
Slide 22: Commodity Trends – Lobster
Commodity Trends – Lobster Lobster Index Chart 40.0 Demand factors • Reopening of economies 35.0 • Consumer disposable income 30.0 • Significantly reduced 25.0 retail featuring of live USD lobster – price related Based 20.0 • Expanding national Index demand for processed Per lbs 15.0 lobster product
Slide 23: Commodity Trends – Salmon
Commodity Trends – Salmon Canadian Whole Atlantic Salmon Index Chart 6.5 6.0 5.5 5.0 CAD Based 4.5 Demand factors Index Per 4.0 • Reopening of economies lbs 3.5 • Consumer disposable 3.0 income 2.5 Supply factors 2.0 • West coast farm • Index is for west coast Atlantic salmon 12-14 pound shutdowns •
Slide 24: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts and percentages) Major positive factors: • EBITDA growth Major negative factors: • Increased depreciation primarily due to acquisitions and recently completed capital expenditures 70.0 63.5 • Increased interest expen
Slide 25: Clearwater Results
Clearwater Results (millions of dollars except percentages) Q3-2021 % Q3-2020 % Sales 158.4 100.0% 133.7 100.0% Sales Gross profit 53.1 33.5% 35.8 26.8% • Positive: reopening of SG&A 13.0 8.2% 10.4 7.8% economies in North America and Asia EBITDA 40.1 25.3% 25.4 19.0% • Negative: a stronger CAD Depre
Slide 26: Five Year (2023) Sales Target
Five Year (2023) Sales Target (millions of dollars except percentages) Amount Notes Q3-2021 TTM sales 4,642.5 Q3-2021 TTM pandemic impact 179.3 Includes Global Gourmet, Allseas, Starboard, Clearwater, Confederation Annualization of acquisitions completed in 2020 and 2021 422.5 Freezers, Distribution
Slide 27: Five Year (2023) Adjusted EBITDA Target
Five Year (2023) Adjusted EBITDA Target (millions of dollars except percentages) % of Amount Sales Notes Impact Q3-2021 TTM adjusted EBITDA 405.0 8.7% Q3-2021 TTM pandemic sales impact 33.8 18.9% Annualization of announced acquisitions Includes Global Gourmet, Allseas, Starboard, Clearwater, Confede
Slide 28: Capital Allocations
Capital Allocations (in millions of dollars except percentages) Investment Investment Investment To- Capital Group Expected IRR Q3 Q3-YTD Date Allocation During the Quarter Acquired 50% interest in Clearwater Seafood Acquired Starboard Seafood Acquired Mermax Seafood 9.3 504.1 504.1 504.1 Acquired D
Slide 29: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 Q3-2021: Top end of targeted • Renegotiated terms on senior credit 920.0 total debt to EBITDA 5.0 facility including an increase of ratio US$250m, extending the maturity date to Nov 2026, and linking its interest rates 820.0 4.5 to certain ES
Slide 30: 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 TTM 2021 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% 44.1% Dividend per share $1.18 $1.
Slide 31: Questions
Questions Extraordinary Times Extraordinary Team 31