Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Shareholder Meeting (May 2023)
44 slides from Lassonde Industries, Inc. Class A's shareholder meeting presentation, May 19, 2023
Slide 1: Annual General Meeting
Annual General Meeting May 19, 2023 LASSONDE INDUSTRIES INC.
Slide 2: Caution Regarding Forward-Looking Statements
2 Caution Regarding Forward-Looking Statements Caution Regarding Forward-Looking Statements This document contains “forward-looking information” and the Corporation’s oral and written public communications that do not constitute historical fact may be deemed to be “forward-looking information” withi
Slide 3: Caution Regarding Forward-Looking Statements (cont'd)
3 Caution Regarding Forward-Looking Statements (cont’d) Caution Regarding Forward-Looking Statements adopted by relevant authorities; failure to adapt to changes and developments affecting the Corporation’s industry, including customer preferences, tastes, concerns or perceptions and buying patterns
Slide 4: Financial Measures Not in Accordance with IFRS
4 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS To provide more information for evaluating the Corporation’s performance, the financial information in the financial documents contains certain supplementary financial measures and certain data or ratios
Slide 5: Financial Measures Not in Accordance with IFRS (cont'd)
5 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Adjusted Operating Profit(1) is a financial measure used by the Corporation to compare Days of Sales Outstanding(1) (“DSO”) is a financial efficiency measure used by the operating profit between
Slide 6: Notice of Proxy, Documents and Scrutineer's Report
Notice of Proxy, Documents and Scrutineer’s Report
Slide 7: Election of Directors
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Slide 8: Election of Directors
8 Election of Directors Election of Directors Chantal Bélanger Denis Boudreault Paul Bouthillier Corporate Director Corporate Director Corporate Director Luc Doyon Nathalie Lassonde Pierre-Paul Lassonde Corporate Director CEO & Vice-Chair of the Chairman of the Board Board of Directors of Directors
Slide 9: Appointment of Auditors
Appointment of Auditors
Slide 10: Award-Winning Employees
10 Award-Winning Employees Award-Winning Employees Josianne Légaré Adam Murray
Slide 11: Business Overview
Business Overview
Slide 12: Fiscal 2022: Challenging, but many Accomplishments
12 Fiscal 2022 Challenging, but many Business Overview Accomplishments Advanced our strategic agenda Sales passed the $2 billion mark for the first time in our history We adapted to market conditions Selling price adjustments to reflect cost inflation Take necessary actions to ensure our busines
Slide 13: Multi-year Strategy Priorities
13 Multi-year Strategy Business Overview 1 Priorities Build a Growth-oriented Portfolio 2 3 Drive Improve Sustainable Capacity Performance to Act
Slide 14: Lassonde Today
14 17 Plants in North America with Over 2,700 Employees Lassonde Today Business Overview 1 Calgary (AB) 7 Carver (MA) Cranberry receiving 2 Thornbury (ON) station 3 Toronto (ON) 8 Seabrook (NJ) 6 1 5 4 Rougemont, 9 Cherry Hill (NJ) 14 Office 4 Saint-Damase, 2 3 Boisbriand (QC) 13 7 Head office and m
Slide 15: Lassonde Today
15 Lassonde Today Business Overview JUICES AND BEVERAGES WINES AND SPECIALTY SNACKS (National and private CIDERS FOOD PRODUCTS label brands) #1 in Canada – Fruit juices and drinks #2 in the U.S. – Store brands shelf-stable fruit juices and drinks
Slide 16: Extensive Customer List
16 Business Overview Extensive Customer List
Slide 17: Awards and Our Vision
17 Awards Business Overview Consumer Awards Industry Awards Our Vision OUR GREAT TASTING PRODUCTS IN MORE HANDS, SERVING MORE NEEDS, ACROSS MORE OCCASIONS, EVERY DAY.
Slide 18: Capacity optimization and expansion in specialty food division
18 Capacity Business Overview optimization and expansion in specialty food division
Slide 19: Operational Excellence To Drive Sustainable Performance
19 Operational Excellence To Drive Sustainable Performance Business Overview Increasing investment in our manufacturing network New single serve line in the U.S. Higher speed juice box lines in Canada Implementing new processes and data systems Optimize resource utilization Capture efficienc
Slide 20: A New Operating Model To Enhance our Capacity to Act
20 A New Operating Model To Enhance our Capacity to Act Business Overview Strengthening our leadership Fortifying our capabilities New equipment, tools and technologies Three new Centres of Excellence New model will enable us to: Optimize our scale Capture synergy Accelerate innovation and
Slide 21: Project Eagle
21 Important Component of Multi-year Strategy Project Eagle Project Eagle Deliver growth at a better margin Revitalize underperforming U.S. operations Simplify product portfolio and reduce SKU complexity by: • Harmonizing packaging formats • Consolidating formulas • Rationalizing low-margin prod
Slide 22: Financial Review
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Slide 23: Fiscal 2022 – Sales Exceeded the $2B Mark
23 Fiscal 2022 – Sales Exceeded the $2B Mark Fiscal 2022 – Financial Highlights Sales ($B) By Market Segment By Geography By Brand Type 2.2 11% 1.9 Food Service 89% 45% 42% 58% National Private Retail Sales in Canada Brands Label Products +14% 55% Sales in the U.S. 2021 2022 Key Highlights Excluding
Slide 24: Fiscal 2022 – Highlights
24 Fiscal 2022 – Highlights Fiscal 2022 – Financial Highlights Gross Profit ($M) Selling & administrative Operating Profit ($M) & & Gross Margin expenses ($M) Operating Margin 522 523 442 118 121 404 98 81 27.6% 6.4% 6.3% 24.3% 4.5% 3.8% 2021 2022 2021 2022 Operating Profit Adj. Operating Profit (1)
Slide 25: Fiscal 2022 – Highlights
25 Fiscal 2022 – Highlights Fiscal 2022 – Financial Highlights EBITDA ($M) Profit Attributable to the EPS Shareholders ($M) 178 181 78 80 $11.18 $11.48 157 141 64 $9.37 54 $7.85 (1) EBITDA Adj. EBITDA(1) Profit to the Adj. Profit to the EPS Adj. EPS(1) (1) shareholders shareholders 2021 2022 2021 20
Slide 26: Fiscal 2022 – Financial Position, ROCE & Net Debt
26 Fiscal 2022 – Financial Position, ROCE & Net Debt to Adjusted Fiscal 2022 – Financial Highlights EBITDA (1) As at As at ROCE (%) Capital employed(1) Dec. 31, 2022 Dec. 31, 2021 Variation $ $ $ 13.8 11.8 Accounts receivable 173.7 154.4 19.3 10.7 9.7 Inventories 414.0 309.7 104.3 8.4 Less: AP & acc
Slide 27: Fiscal 2022 – Cash Flows
27 Fiscal 2022 – Cash Flows Fiscal 2022 – Financial Highlights Cash Flow from Cash Flow from (used by) Cash Flow used by Operating Activities ($M) Financing Activities ($M) Investing Activities ($M) 28 94 24 (40) (48) (65) 2021 2022 2021 2022 2021 2022 Leverage below 3.25x target Capex ≈ 4.5% of sal
Slide 28: Fiscal 2023 – First Quarter Results
28 Fiscal 2023 – First Quarter Results Q1-2023 – Financial Highlights Sales ($M) Operating Profit ($M) Profit Attributable to the Shareholders ($M) & EPS 547 28 17 17 509 26 25 16 22 15 $2.51 +7.5% $2.48 $2.37 $2.14 2022 2023 Operating Profit Adjusted Operating Profit to the Adj. Profit to the Profi
Slide 29: Outlook for 2023
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Slide 30: Priorities
30 Priorities Priorities Continue to execute Multi-year Strategy Monitor macroeconomic conditions impact Financial health of consumers Inflation in production costs Supply chain
Slide 31: Outlook for 2023
31 Outlook for 2023 Outlook for 2023 Favourable outlook Full effect of previous price increases Sales growth in the mid to high single-digit range • Excluding foreign exchange impacts • Better customer service levels Revitalize U.S. operations and improve technological infrastructure • New sys
Slide 32: In Conclusion
32 In Conclusion Conclusion Heartfelt thanks to: All Lassonde employees Business partners Customers and suppliers Building the company for the long-term Confident that our efforts will result in a marked improvement Gradual in 2023 More significant in 2024
Slide 33: Questions?
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Slide 34: lassonde.com
B Lassonde lassonde.com
Slide 35: Appendix
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Slide 36: Financial Measures Not in Accordance with IFRS
36 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS Items impacting the comparability between periods These tables contain a list, description and quantification of items impacting the comparability of the financial performance between the periods. Years
Slide 37: Financial Measures Not in Accordance with IFRS (cont'd)
37 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Adjusted Operating Profit Years ended First quarters ended (in millions of dollars) Dec. 31, 2022 Dec. 31, 2021 (in millions of dollars) April 1, 2023 April 2, 2022 $ $ $ $ Operating profit 81.3
Slide 38: Financial Measures Not in Accordance with IFRS (cont'd)
38 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Adjusted Profit Attributable to the Corporation’s Shareholders and Adjusted EPS Years ended First quarters ended (in millions of dollars, unless otherwise indicated) Dec. 31, 2022 Dec. 31, 2021
Slide 39: Financial Measures Not in Accordance with IFRS (cont'd)
39 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Net Debt to Adjusted EBITDA As at As at As at As at (in millions of dollars, exept the net debt to adjusted EBITDA ratio) Dec. 31, 2022 Dec. 31, 2021 (in millions of dollars, exept the net debt
Slide 40: Financial Measures Not in Accordance with IFRS (cont'd)
40 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Days Operating Working Capital As at As at As at As at (in millions of dollars, except days operating working capital) Dec. 31, 2022 Dec. 31, 2021 (in millions of dollars, except days operating
Slide 41: Financial Measures Not in Accordance with IFRS (cont'd)
41 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Days of Inventory Outstanding As at As at As at As at (in millions of dollars, except DIO) Dec. 31, 2022 Dec. 31, 2021 (in millions of dollars, except DIO) April 1, 2023 Dec. 31, 2022 $ $ $ $ In
Slide 42: Financial Measures Not in Accordance with IFRS (cont'd)
42 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Capital Employed and Sources of Capital As at As at As at As at (in millions of dollars) Dec 31, 2022 Dec. 31, 2021 (in millions of dollars) April 1, 2023 Dec. 31, 2022 $ $ $ $ Capital employed
Slide 43: Financial Measures Not in Accordance with IFRS (cont'd)
43 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Return on Capital Employed (“ROCE”) As at As at As at As at (in millions of dollars, unless otherwise indicated) Dec. 31, 2022 Dec. 31, 2021 (in millions of dollars, unless otherwise indicated)
Slide 44: lassonde.com
B Lassonde lassonde.com