Premium Brands Holdings Corporation · TSX:PBH
Premium Brands — Shareholder Meeting (May 2024)
29 slides from Premium Brands's shareholder meeting presentation, May 10, 2024
Slide 1: Annual General Meeting
Annual General Meeting May 10, 2024
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 2023 Revenue $0.2 billion $6.3 billion Adjusted EBITDA $14.1 million $559.1 million Business platforms 2 6 Geographic reach Western Canada North America Operating facilities 8 116 Employees 900 13,100 Free cash flow per share $0.78 $5.70 Annualized dividend rate $ nil $3.08 / 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 The Next Five Years – Accelerating Growth 5
Slide 6: Share Price
Share Price Closing Share Accumulated Date Price Dividends Per Share Dec 31, 2003 $8.60 Nil May 9, 2024 $89.23 $31.48 4500.00 7.00 2003 to May 9, 2024 CAGR = 18.2% 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/T
Slide 7: Premium Brands: Entrepreneurship with Accountability
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 The Next Five Years – Accelerating Growth 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 and responsible supply chains, robust labelling practices, excellence in food safety People • Employee safety-first culture, prioritizing mental health and well-being, embracing diversity and workpla
Slide 10: Premium Brands Eco-system
Premium Brands Eco-system The Next Five Years – Accelerating Growth 10
Slide 11: Diversification – Channels and Customers
Diversification – Channels and Customers SF (65.4%) PFD (34.6%) Foodservice Chains and large Others, 0.8% distributors , 4.8% format retailers, 7.0% Customer % Sales Trading, 2.2% ISR, 6.4% Customer A 14.4% Foodservice operators, 10.5% Customer B 12.7% Customer C 5.2% Foodservice operators, 19.0% Cu
Slide 12: Diversification – Geographically
Diversification – Geographically SF (65.4%) PFD (34.6%) SF (59.9%) PFD including Clearwater (40.1%) Clearwater, 8.5% Export, 0.2% Canada, 26.1% Export, 0.2% Canada, 23.9% United States, 39.2% United States, United States, 6.8% 35.9% United States, Export, 0.9% 7.4% Export, 1.1% Canada, 23.8% Canada,
Slide 13: Diversification – Products and Procured Commodities
Diversification – Products and Procured Commodities SF (65.4%) PFD (34.6%) Baked goods, 2.6% Others, 1.0% Seafood, 18.5% Sandwiches, 20.7% Commodity % Sales Seafood 19.4% Beef 14.0% Pork 9.6% Protein, 14.0% Poultry 5.9% Bread 3.7% Eggs 3.1% Others, 2.1% Cheese 2.4% Turkey 2.0% Protein, 41.1% The Nex
Slide 14: 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 15: Strategically Located Manufacturing Network
Strategically Located Manufacturing Network BC AB SK QC MB ON NB ME NS WA MN MA PA OH NV CA TN AZ MS The Next Five Years – Accelerating Growth 15
Slide 16: Acquisitions Activity
Acquisitions Activity 2005 to 2009 2010 to 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $147.5m $260.9m $51.9m $244.0m $246.2m $753.0m $118.6m $168.2m $858.0m $125.0m $9.5m Harlan Maximum Expresco C&C Packing / Raybern Oberto Mavros Inform Clearwater Beech-grove McLean’s Fairbanks Seafood Premi
Slide 17: 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 18: Platform Progress
Platform Progress (in millions except percentages) 2023 Revenue 2023 2023 Business group Overview 2004 Revenue Including Revenue Revenue % Clearwater Formed in 1997 / 1998 with the Protein acquisitions of Grimm’s Fine Foods, 125.5 2,477.0 39.6% 2,477.0 McSweeney’s and Harvest Meats Formed in 1999 wi
Slide 19: Shaw Bakers – San Francisco
Shaw Bakers – San Francisco The Next Five Years – Accelerating Growth 19
Slide 20: Stuyver's Bakery - Vancouver
Stuyver’s Bakery - Vancouver The Next Five Years – Accelerating Growth 20
Slide 21: Financial Update
Financial Update The Next Five Years – Accelerating Growth 21
Slide 22: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P 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 6,261.0 6,750.0 OGR 2.6% 6.0% 4.8% 4.9% 13.5% 18.0% 6.1% 4.7% 6
Slide 23: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P EBITDA 42.0 54.9 66.8 69.3 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 504.2 559.1 640.0 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% 8.9% 9
Slide 24: Adjusted Earnings and EPS
Adjusted Earnings and EPS (millions of dollars except per share amounts) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Adj earnings 19.6 24.5 24.9 26.6 53.2 80.5 99.2 117.6 118.4 118.5 194.8 215.0 179.1 Adj EPS 1.04 1.19 1.16 1.21 2.18 2.80 3.33 3.62 3.31 3.05 4.48 4.82 4.03 $6.00
Slide 25: Capital Expenditures
Capital Expenditures (millions of dollars except percentages) • An unlevered, after-tax IRR of 15% or greater is expected on project capex 2023 • Expect to spend an additional $366 million on approved major Major project capex 289.2 project capex over the next six quarters Other project capex 64.5 •
Slide 26: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 920.0 5.0 820.0 4.5 • Long-term targeted senior debt to 720.0 4.0 EBITDA ratio – 2.5:1 to 3.0:1 620.0 3.5 • Long-term targeted total debt to EBITDA ratio – 3.5:1 to 4.0:1 520.0 3.0 420.0 2.5 • Convertible debentures make up the difference bet
Slide 27: 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 2023 2024P 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% 54.3% Divi
Slide 28: 5-Year Plan
5-Year Plan (millions of dollars) 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 2023 6,261 559 2024P – midpoint of 2024 guidance
Slide 29: Questions
Questions The Next Five Years – Accelerating Growth 29
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