Slide 1: Annual General Meeting
Annual General Meeting May 12, 2023
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, acquisition opportunities, capital projects and plans, outlook
Slide 4: Company Profile
Company Profile 2004 2022 Revenue $0.2 billion $6.0 billion Adjusted EBITDA $14.1 million $504.2 million Business platforms 2 6 Geographic reach Western Canada North America Operating facilities 8 115 Employees 900 12,600 Free cash flow per share $0.78 $6.41 Annualized dividend rate $ nil $2.80 / sh
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 Staying the Course Through Adversity 5
Slide 6: Share Price
Share Price Closing Share Accumulated Date Price Dividends Per Share Dec 31, 2003 $8.60 Nil May 11, 2023 $99.70 $28.32 4500.00 7.00 2003 to May 11, 2023 CAGR = 19.7% 4000.00 6.00 3500.00 5.00 Index 3000.00 2500.00 4.00 2000.00 3.00 1500.00 2.00 1000.00 1.00 500.00 0.00 0.00 PBH share value (LHS) S&P
Slide 7: Premium Brands
Premium Brands To provide talented proven entrepreneurs with the resources they need to transform their good food businesses into bigger great food businesses ENTREPRENEURSHIP with ACCOUNTABILITY Staying the Course Through Adversity 7
Slide 8: 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 9: 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 10: Clearwater Partnership
Clearwater Partnership Staying the Course Through Adversity 10
Slide 11: Premium Brands Eco-system
Premium Brands Eco-system Staying the Course Through Adversity 11
Slide 12: Diversification – Channels and Customers
Diversification – Channels and Customers SPECIALTY FOODS (61.9%) PREMIUM FOOD DISTRIBUTION (38.1%) Foodservice Others distributors Chains and large format retailers Customer % Sales 0.8% 2.8% ISR 9.2% 6.7% Trading Customer A 13.6% 2.6% Customer B 13.0% Foodservice Customer C 5.4% Foodservice operato
Slide 13: Diversification – Geographically
Diversification – Geographically SF (61.9%) PFD (38.1%) SF (56.2%) PFD including Clearwater (43.8%) Export, 0.2% Export, 0.2% United States, Canada, 26.5% United States, Canada, 28.4% 32.7% 36.0% United States, United States, 8.7% 8.0% Export, 1.7% Export, 8.6% Canada, 25.7% Canada, 23.3% Staying th
Slide 14: Diversification – Products and Procured Commodities
Diversification – Products and Procured Commodities SPECIALTY FOODS (61.9%) PREMIUM FOOD DISTRIBUTION (38.1%) Baked goods, 1.7% Others, 1.3% Sandwiches, 19.1% Seafood, 20.2% Commodity % Sales Seafood 19.5% Beef 14.7% Pork 10.2% Poultry 6.5% Protein, 16.0% Bread 2.9% Eggs 2.7% Turkey 2.2% Others, 1.9
Slide 15: 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 price raw materials • On-site experience with suppliers and their operations • A source of n
Slide 16: Strategically Located Manufacturing Network
Strategically Located Manufacturing Network BC AB SK QC MB ON NB ME NS WA MN MA PA OH NV CA AZ MS Staying the Course Through Adversity 16
Slide 17: 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 $858.0m $125.0m Harlan B&C Foods SJ Fine Maximum Piller’s Freybe Ocean Expresco C&C Raybern Oberto
Slide 18: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Agreed to terms and in Identified future Past discussions and In negotiations In discussions due diligence opportunity currently on hold Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales
Slide 19: Platform Progress
Platform Progress (in millions except percentages) 2022 Revenue 2022 2022 Business group Overview 2004 Revenue including Revenue Revenue % Clearwater Formed in 1997 / 1998 with the Protein acquisitions of Grimm’s Fine Foods, 125.5 2,289.2 38.0% 2,289.2 McSweeney’s and Harvest Meats Formed in 1999 wi
Slide 20: Stuyver’s Bakery Innovation
Stuyver’s Bakery Innovation Staying the Course Through Adversity 20
Slide 21: SK Food Group Innovation
SK Food Group Innovation Staying the Course Through Adversity 21
Slide 22: From Ocean to Plate
From Ocean to Plate Staying the Course Through Adversity 22
Slide 23: Financial Update
Financial Update Staying the Course Through Adversity 23
Slide 24: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023P Revenue 535.2 794.3 960.1 1,043.0 1,221.8 1,484.5 1,857.5 2,198.3 3,025.8 3,649.4 4,068.9 4,931.7 6,029.8 6,500.0 OGR 2.6% 6.0% 4.8% 4.9% 13.5% 18.0% 6.1% 4.7% 6.7% 5.9% 7.6%
Slide 25: Organic Volume Growth Rate
Organic Volume Growth Rate Long-term targeted organic volume growth 20.0% rate range of 4% - 6% 16.0% 12.0% 8.0% 4.0% 0.0% -4.0% -8.0% PBH Total Q4 Marker Staying the Course Through Adversity 25
Slide 26: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023P EBITDA 42.0 54.9 66.8 69.3 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 504.2 600.0 Margin 7.8% 6.9% 7.0% 6.6% 6.4% 7.5% 8.3% 8.7% 9.3% 8.4% 7.7% 8.7% 8.4% 9.2% 700.0 12.0%
Slide 27: Margin Recovery
Margin Recovery (millions of dollars except percentages) Q1-2022 Q2-2022 Q3-2022 Q4-2022 2022 Selling price increases 122.6 134.4 89.5 61.9 408.4 Raw material, wage and freight cost inflation (124.5) (130.9) (77.5) (45.8) (378.7) Margin dollar impact (1.9) 3.5 12.0 16.1 29.7 Margin impact - 2.6% 13.
Slide 28: Recent Capacity Expansions
Recent Capacity Expansions (millions of dollars) Unutilized Sales Platform Project Products Capacity in 2022 • CFG Ontario facility • Seafood and value-added protein Seafood 50 • Ready Saco plant • Processed lobster • Piller’s Brantford plant expansion • Meat snacks and dry cured Protein 30 • Oberto
Slide 29: Adjusted Earnings and EPS
Adjusted Earnings and EPS (millions of dollars except per share amounts) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Adj earnings 16.4 19.6 24.5 24.9 26.6 53.2 80.5 99.2 117.6 118.4 118.5 194.8 215.0 Adj EPS 0.93 1.04 1.19 1.16 1.21 2.18 2.80 3.33 3.62 3.31 3.05 4.48 4.82 Reflec
Slide 30: Clearwater Annual Results
Clearwater Annual Results (millions of dollars) 2022 2021 2020 2019 2018 Sales 604.5 532.9 468.6 616.3 592.2 EBITDA 129.8 115.0 74.8 107.5 106.6 Earnings (loss) before shareholder payments 47.0 42.1 1.4 41.7 (16.2) Capex 26.7 31.1 32.7 28.0 19.1 Staying the Course Through Adversity 30
Slide 31: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 Top end of targeted total debt to EBITDA 920.0 ratio 5.0 Top end of targeted total senior debt to 820.0 EBITDA ratio 4.5 720.0 4.0 620.0 3.5 520.0 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 EBITD
Slide 32: 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 2022 2023P 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% 43.8% Dividend per sh
Slide 33: Capital Allocations – Project Capex
Capital Allocations – Project Capex (millions of dollars except percentages) Investment Investment Expected Group 2022 Expected IRR To-Date Expected Completion Premier facility expansion Distribution 9.7 9.7 9.7 Completed Viandex facility expansion Distribution 0.8 0.8 9.1 Q2-2023 Piller’s Wismer fa
Slide 34: Capital Allocation – Acquisitions
Capital Allocation – Acquisitions (millions of dollars except percentages and multiples) Group 2022 Expected IRR Acquired Leonetti's Sandwich Acquired Beechgrove Protein Increased interest in Golden Valley Farms from 50% to 100% Protein 125.0 >15% Acquired King’s Command Protein Increased interest i
Slide 35: RONA
RONA (millions of dollars except percentages) 2014 2015 2016 2017 2018 2019 2020 2021 2022 Avg net assets 580.0 661.6 849.8 1,048.0 1,749.1 2,286.8 2,405.2 3,324.0 3,852.8 Project capex 44.2 26.1 33.1 56.7 52.6 61.4 65.6 113.9 185.2 Acquisitions 7.5 51.9 241.0 259.5 753.0 138.2 178.6 275.4 144.7 Ret
Slide 36: 5-Year Plan
5-Year Plan (millions of dollars except percentages) 5 Year 5 Year 5 Year Target Base Year Base Year Base Year Targeted Targeted Year Sales EBITDA Sales EBITDA 2010 2015 535 42 1,000 2014 2019 1,222 78 2,000 2018 2023 3,026 251 6,000 600 2022 2027 6,030 504 10,000 1,000 2023P – no new acquisitions 6
Slide 37: 5-Year Major Project Capex
5-Year Major Project Capex Platform Major Projects Products Distribution • Viandex Quebec City plant expansion • Value-added seafood and protein • Piller’s Waterloo project • Dry cured and European deli meats • Hempler’s Ferndale plant expansion • Meat snacks and premium processed meats • Oberto Ken
Slide 38: Questions
Questions Staying the Course Through Adversity 38