Slide 1: Annual General Meeting
Annual General Meeting May 5, 2022
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 its business operations, strategy and financial performance and condition, proposed acquisitions and plans and objectives of or involving the Company. While management believes tha
Slide 4: Company Profile
Company Profile 2004 Current Revenue $0.2 billion $4.9 billion Adjusted EBITDA $14.1 million $430.7 million Business platforms 2 6 Geographic reach Western Canada North America Operating facilities 8 111 Employees 900 12,000 Free cash flow per share $0.78 $6.05 Annualized dividend rate $ nil $2.80 /
Slide 5: Our Vision
Our Vision To invest in specialty food businesses featuring: Entrepreneurial cultures Great tasting foods made with wholesome ingredients A passion for both their local communities and what is best for our planet Extraordinary Times Extraordinary Team 5
Slide 6: Share Price
Share Price Closing Share Accumulated Date Price Dividends Per Share Dec 31, 2003 $8.60 Nil May 4, 2022 $106.65 $25.45 4500.00 7 2003 to May 4, 2022 CAGR = 21.1% 4000.00 6 3500.00 5 3000.00 2500.00 4 2000.00 3 1500.00 2 1000.00 1 500.00 0.00 0 Premium Brands (LHS) S&P/TSX Composite Index - Total Ret
Slide 7: Core Business Strategies
Core Business Strategies • Emerging trends • Niche product categories 1. Targeted segments of the food industry • Leading regional brands focused on authenticity and differentiation • Unique distribution solutions • Significant organic growth opportunities • Dedicated to maintaining an entrepreneuri
Slide 8: A Leader in Environmental, Social, and Governance
A Leader in Environmental, Social, and Governance Nutritious Food • Natural ingredients, sustainable supply chains, animal welfare standards, responsible labelling, excellence in food safety People • Employee safety-first culture, prioritizing mental health and well-being, embracing diversity and wo
Slide 9: Extraordinary Times Extraordinary Team
Extraordinary Times Extraordinary Team 9
Slide 10: Premium Brands Ecosystem
Premium Brands Ecosystem Extraordinary Times Extraordinary Team 10
Slide 11: Product and Commodity Diversification
Product and Commodity Diversification 2021: Specialty Foods (60.6%) Premium Foods Distribution (39.4%) Others, 1.5% Baked goods, 1.1% Commodity % Sales Sandwiches, 17.9% Seafood, 20.4% Seafood 23.2% Beef 18.1% Pork 13.7% Poultry 5.8% Bread 2.9% Eggs 2.5% Protein, 17.4% Turkey 2.0% Cheese 1.8% Others
Slide 12: Diversification – Procurement Sources
Diversification – Procurement Sources PB GLOBAL PROCUREMENT TEAMS • Buyers travel the globe searching for new supply opportunities • Consolidated buying power used to source the highest quality competitively priced raw materials • On-site experience with suppliers and their operations • A source of
Slide 13: Channel and Customer Diversification
Channel and Customer Diversification 2021: SPECIALTY FOODS (60.6%) PREMIUM FOOD DISTRIBUTION (39.4%) Others, 0.9% Chains and large format ISR, 6.1% retailers, 9.5% Customer % Sales Customer A 13.8% Trading, 3.9% Foodservice operators, 15.2% Customer B 12.7% Foodservice operators, 9.1% Customer C 6.7
Slide 14: Geographical Diversification
Geographical Diversification 2021 Region Sales % Sales Canada $2,879.9m 58.4% U.S. $1,959.0m 39.7% Export $92.8m 1.9% $4,931.7m 100.0% Represents regions in which PBH has one or more operating facilities Extraordinary Times Extraordinary Team 14
Slide 15: Acquisitions Activity
Acquisitions Activity 2005 to 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2007 $127.7m $16.7m $3.1m $67.3m $121.8m $63.7m $8.1m $51.9m $244.0m $246.2m $753.0m $118.6m $168.2m $713.9m $41.6m Harlan B&C Foods SJ Fine Maximum Piller’s Freybe Ocean Expresco C&C Raybern Oberto M
Slide 16: 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 9 494 4 204 4 345 20 2,033 Distribution - - 6 283 3 1,050 1 882 4 53 14 2,268 Protein 1 89 4 172 13 1,
Slide 17: Platforms
Platforms Seafood Distribution Protein Sandwich Bakery Culinary • Maximum Seafood • Centennial • Hempler’s • Quality Fast Foods • Stuyver’s • Global Gourmet • Ocean Miracle Foodservice • Isernio’s • Hygaard Fine Foods • Island City • Duso’s • Diana’s Seafood • Worldsource • Harvest • Deli Chef • Con
Slide 18: Platform Progress
Platform Progress (in millions except percentages) 2021 Revenue Business Overview 2004 Revenue 2021 Revenue 2021 Revenue % Including Equity Group Investments Formed in 1997 / 1998 with the Protein acquisitions of Grimm’s Fine Foods, 125.5 1,907.1 38.7% 1,969.0 McSweeney’s and Harvest Meats Formed in
Slide 19: Protein
PROTEIN Extraordinary Times Extraordinary Team 19
Slide 20: Protein Platform
Protein Platform Extraordinary Times Extraordinary Team 20
Slide 21: Protein Platform
Protein Platform Extraordinary Times Extraordinary Team 21
Slide 22: Protein Platform
Protein Platform Extraordinary Times Extraordinary Team 22
Slide 23: Protein Platform
Protein Platform Extraordinary Times Extraordinary Team 23
Slide 24: Sandwich
SANDWICH Extraordinary Times Extraordinary Team 24
Slide 25: Extraordinary Times Extraordinary Team
Extraordinary Times Extraordinary Team 25
Slide 26: Sandwich Platform
Sandwich Platform Extraordinary Times Extraordinary Team 26
Slide 27: Sandwich Platform
Sandwich Platform Extraordinary Times Extraordinary Team 27
Slide 28: Bakery
BAKERY Extraordinary Times Extraordinary Team 28
Slide 29: Bakery Platform
Bakery Platform Extraordinary Times Extraordinary Team 29
Slide 30: Culinary
CULINARY Extraordinary Times Extraordinary Team 30
Slide 31: Culinary Platform
Culinary Platform Extraordinary Times Extraordinary Team 31
Slide 32: Culinary Platform
Culinary Platform Extraordinary Times Extraordinary Team 32
Slide 33: Distribution
DISTRIBUTION Extraordinary Times Extraordinary Team 33
Slide 34: Distribution Platform
Distribution Platform Extraordinary Times Extraordinary Team 34
Slide 35: Distribution Platform
Distribution Platform Extraordinary Times Extraordinary Team 35
Slide 36: Seafood
SEAFOOD Extraordinary Times Extraordinary Team 36
Slide 37: Clearwater Seafoods
Clearwater Seafoods (millions of dollars except percentages) Acquired January 25, 2021 2021 2020 Change % Change Sales 532.9 468.6 64.3 13.7% EBITDA 115.0 74.8 40.2 53.7% Extraordinary Times Extraordinary Team 37
Slide 38: Extraordinary Times Extraordinary Team
Extraordinary Times Extraordinary Team 38
Slide 39: Seafood Platform
Seafood Platform Extraordinary Times Extraordinary Team 39
Slide 40: Seafood Platform
Seafood Platform Extraordinary Times Extraordinary Team 40
Slide 41: 2021 Financial Review
2021 Financial Review Extraordinary Times Extraordinary Team 41
Slide 42: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 to 2021 CAGR is 22.4% 70.0% 6,000.0 Long-term targeted growth 5,725.0 rate (6% - 8%) Midpoint of 2022 guidance of $5,600m to $5,850m 60.0% 4,931.7 5,000.0 50.0% 4,068.9 4,000.0 3,649.4 40.0% 3,025.8 3,000.0 30.0% 2,198.3 2,000.0 1,857.5 1,4
Slide 43: 2021 / 2020 Sales Bridge
2021 / 2020 Sales Bridge (millions of dollars except percentages) SF PFD Total 2020 2,667.4 1,401.5 4,068.9 Acquisitions 62.4 295.5 357.9 Price inflation 103.2 203.9 307.1 Organic volume growth 256.2 70.8 327.0 Organic volume growth rate 9.6% 5.1% 8.0% COVID recovery 33.9 36.9 70.8 Adjusted organic
Slide 44: Major Organic Growth Drivers
Major Organic Growth Drivers Seafood Distribution Protein Sandwich Bakery Culinary Processed lobster and crab Non-distributive foodservice Branded meat snack sticks Leveraging IP and North Branded naturally fermented Product solution provider for initiatives in foodservice and sales of differentiate
Slide 45: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 to 2021 CAGR is 23.6% (Pre IFRS-16: 22.2%) 600.0 Reflects IFRS-16 12.0% 520.0 Midpoint of 2022 guidance 11.0% 500.0 of $510m to $530m 430.7 10.0% 400.0 9.0% 307.7 312.6 300.0 280.2 8.0% 190.2 7.0% 200.0 154.8 111.6 6.0% 100.0 66.8 69.3 77.6
Slide 46: EBITDA Analysis
EBITDA Analysis (millions of dollars except percentages and basis points) SF PFD Corporate Total 2020 247.7 83.7 (18.8) 312.6 EBITDA margin 9.3% 6.0% (0.5%) 7.7% 2021 264.5 133.6 32.6 430.7 EBITDA margin 8.9% 6.9% 0.7% 8.7% Selling price inflation 103.2 203.9 - 307.1 Cost inflation for direct materi
Slide 47: Commodity Trends – Pork
Commodity Trends – Pork Pork Index Chart 9.0 8.0 7.0 6.0 USD 5.0 Based 4.0 Index Per lbs 3.0 2.0 1.0 0.0 week 13 week 26 week 39 week 52 2019 2020 2021 • Index is comprised of a weighted basket of the following pork products: legs, 72% trim and bellies • Source: USDA Extraordinary Times Extraordinar
Slide 48: Commodity Trends – Beef
Commodity Trends – Beef Beef Index Chart 18.0 16.0 14.0 12.0 USD 10.0 Based Index 8.0 Per lbs 6.0 4.0 2.0 0.0 week 13 week 26 week 39 week 52 2019 2020 2021 • Index is comprised of a weighted basket of the following beef products: striploins, top butts, inside rounds, and 50%, 85% and 90% trims • So
Slide 49: Commodity Trends – Chicken
Commodity Trends – Chicken Chicken: Jumbo BS/BT Index Chart 3.25 2.65 USD Based Index 2.05 Per lbs 1.45 0.85 week 13 week 26 week 39 week 52 2019 2020 2021 • Index is comprised of chicken: east jumbo boneless/skinless breasts tender out • Source: Urner Barry Extraordinary Times Extraordinary Team 49
Slide 50: Commodity Trends – Lobster
Commodity Trends – Lobster Lobster Index Chart 40.0 35.0 30.0 25.0 USD Based 20.0 Index Per lbs 15.0 10.0 5.0 0.0 week 13 week 26 week 39 week 52 2019 2020 2021 • Index is comprised of a weighted basket of the following lobster products: 4-5oz tails, claws and knuckles • Source: Urner Barry Extraord
Slide 51: Commodity Trends – Salmon
Commodity Trends – Salmon Salmon Index Chart 10.0 9.0 8.0 CAD 7.0 Based 6.0 Index Per lbs 5.0 4.0 3.0 2.0 week 13 week 26 week 39 week 52 2019 2020 2021 • Index is comprised of following salmon products: farmed, fillet, fresh, Chile Atl.,D-Trim, FOB Miami,2-3 lbs; west coast Atlantic salmon 12-14 po
Slide 52: Adjusted Earnings and EPS
Adjusted Earnings and EPS (millions of dollars except per share amounts) 300.0 $5.00 Reflects IFRS-16 $4.50 250.0 $4.00 2010 to 2021 CAGR is 25.2% 194.8 $3.50 200.0 $3.00 150.0 $2.50 117.6 118.4 118.5 $2.00 99.2 100.0 80.5 $1.50 53.2 $1.00 50.0 24.5 24.9 26.6 19.6 $0.50 - $- 2011 2012 2013 2014 2015
Slide 53: Five Year Targets
Five Year Targets (in millions of dollars) Target Actual Target Target Fiscal Year Actual EBITDA Year Sales Sales EBITDA 2010 2015 535.2 42.0 1,000.0 n/a 2014 2019 1,221.8 77.6 2,000.0 n/a 2018 2023 3,025.8 251.3 6,000.0 600.0 Extraordinary Times Extraordinary Team 53
Slide 54: Five Year (2023) Sales Target
Five Year (2023) Sales Target (millions of dollars except percentages) Sales Notes Mid-point of 2022 guidance 5,725.0 Organic growth for 2023 assuming at a nominal organic growth Organic growth rates for 2019, 2020 and 2021 were 5.9%, 7.6% and 352.0 rate of 6% 12.4%, respectively. General long-term
Slide 55: Five Year (2023) Adjusted EBITDA Target
Five Year (2023) Adjusted EBITDA Target (millions of dollars except percentages) % of EBITDA Sales Notes Impact Mid-point of 2022 guidance 520.0 9.1% Contribution margins for the Company’s existing portfolio of businesses Organic growth 88.0 25.0% range from 15% to 35% Future acquisitions needed to
Slide 56: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 920.0 5.0 Top end of targeted total debt to EBITDA 820.0 ratio 4.5 720.0 4.0 Top end of targeted 620.0 senior debt to EBITDA 3.5 ratio 520.0 3.0 420.0 2.5 320.0 2.0 220.0 1.5 120.0 1.0 20.0 0.5 Available Credit (LHS) Total Debt to EBITDA (RHS
Slide 57: Convertible Debentures
Convertible Debentures (millions of dollars except percentages and unit prices) Trading Issuance Maturity Convert O/S Unit Market Coupon Issuance Converted Book Value Symbol Date Date Price Balance Price PBH.DB Nov 2009 Dec 2014 7.00% 14.50 40.3 39.2 - - - PBH.DB.A Jan 2011 Dec 2015 5.75% 22.40 57.5
Slide 58: 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 2021 2022P 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% 42.3% Dividend per share $1.18 $
Slide 59: Capital Allocation – Project Capex
Capital Allocation – Project Capex (in millions of dollars except percentages) Capital Expected Group 2021 To-Date Allocation IRR Hempler’s Ferndale plant expansion Protein US2.9 US2.9 US84.1 Piller’s Brantford expansion Protein 12.3 14.1 19.1 Oberto plant improvement projects Protein US2.2 US2.8 US
Slide 60: Capital Allocation – Acquisitions
Capital Allocation – Acquisitions (in millions of dollars except percentages) Capital Group Expected IRR Allocation 50% interest in Clearwater Seafood Starboard Seafood Seafood Mermax Distribution Westmorland Seafood 713.9 15% or greater Distribution Côte-Nord Distribution Confederation Freezers (wi
Slide 61: Investments
Investments (millions of dollars except percentages) The minimum hurdle rate for acquisitions and project capex is a 15% IRR after tax and before leverage 900.0 20.0% 809.6 824.1 800.0 18.0% 16.0% 700.0 14.0% 600.0 12.0% 500.0 10.0% 400.0 8.0% 304.1 300.0 275.1 6.0% 218.5 200.0 175.6 145.2 4.0% 87.7
Slide 62: Questions?
Questions? Extraordinary Times Extraordinary Team 62