High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Investor Presentation (February 2025)
31 slides from High Liner Foods's investor presentation, February 2025
Slide 1: Investor Presentation
Investor Presentation February 2025
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation are forward-looking and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate and may differ materially from actual future events or results. Actual results or even
Slide 3: Presentation Notes
Presentation Notes Presentation Currency High Liner Foods (“the Company”) reports its earnings and financial statements in USD. The Company’s common shares trade on the TSX and are quoted in CAD and therefore references in this presentation to share price, dividends and market capitalization are in
Slide 4: We Are A North American Leader in Branded and Value-Added Frozen Seafood
We Are A North American Leader in Branded and Value-Added Frozen Seafood
Slide 5: We Are Well Positioned for Sustainable Value Creation
We Are Well Positioned for Sustainable Value Creation We deliver branded and value-added We lead the industry in sustainability frozen seafood solutions across North best practices America We innovate across channels to drive We serve a diverse mix of foodservice growth in an under-developed and ret
Slide 6: We Are a Leader in a Growing, Underdeveloped Category
We Are a Leader in a Growing, Underdeveloped Category Diversified business model, Established and respected portfolio and global supply brands and customer, supplier chain and distributor relationships Proven operator in growing Experienced management North American Frozen team and high-performance
Slide 7: We Offer An Attractive Investment Proposition
We Offer An Attractive Investment Proposition Long-term financial stability Sustainable and growing dividend Resilience across market cycles Active share buy-back program Strong balance sheet Significant market opportunity in underdeveloped category Stability, Income & Upside Potential Source: Compa
Slide 8: We Have Deep Operating & Sector Expertise
We Have Deep Operating & Sector Expertise Paul Jewer Darryl Bergman Anthony Rasetta • Appointed in December 2023 • Joined High Liner Foods in July 2024 • Joined High Liner in July 2021 as Chief Financial Officer • Prior to joining, held a variety of • Previously served as CFO (since February 2014) •
Slide 9: We Offer 125 Years of Seafood Expertise
We Offer 125 Years of Seafood Expertise Active acquirer with a proven track- 2017 2013 Rubicon record of successfully identifying and American Resources Pride Acquisition integrating leading brands Seafoods Acquisition 2011 Acquisitions have diversified product Icelandic USA Acquisition(2) offerings
Slide 10: Our Competitively Positioned Business
Our Competitively Positioned Business
Slide 11: Our Diversified Business Model Offers Resilience and Opportunity
Our Diversified Business Model Offers Resilience and Opportunity Geography Channel Product Form Branding In Large, Growing and Stable North American Market #1 branded prepared frozen #1 frozen fish manufacturer fish manufacturer and #4 #1 value-added frozen seafood and #1 frozen value-added branded
Slide 12: Our Diversified Portfolio Provides Flexibility and Supports Growth
Our Diversified Portfolio Provides Flexibility and Supports Growth Sourcing by Major Species (% of FY2024 $ Purchases) Focused portfolio: 7 major species Strategic exposure to key growth species including salmon and shrimp Expansion into alternative species, including Southern Blue Whiting Source: C
Slide 13: Our North American Manufacturing Facilities Support Agile Operations and Growth
Our North American Manufacturing Facilities Support Agile Operations and Growth Production and Distribution Capabilities Three Value-Added Seafood Manufacturing Facilities(1) Manufacturing presence on both Lunenburg, NS sides of the border (Canada) All plants support foodservice and Capacity p.a.: 5
Slide 14: We Are Competitively Positioned in North American Foodservice
We Are Competitively Positioned in North American Foodservice Foodservice (67% of FY2024 Sales)(1) Foodservice At a Glance Key Brands Diversified portfolio of branded and value- A core Canadian foodservice brand offering added solutions for operators quality, value-added products made from block- fo
Slide 15: We Are Competitively Positioned in North American Retail
We Are Competitively Positioned in North American Retail Retail (33% of FY2024 Sales) North American Retail At a Glance Key Brands High Liner is a market leader in Canadian Diversified portfolio ranging from premium to Mainstream to Value Price Point frozen fish and one of the most recognized value
Slide 16: We Have a Track Record of Successful Innovation
We Have a Track Record of Successful Innovation Reimaging seafood on the menu and at home Value-Added Innovations We are innovating to support category growth – drawing more customers and consumers to the category by showcasing new value-added seafood solutions and differentiating our brands Retail
Slide 17: We Are Committed to Sustainable Seafood & Sustainable Business
We Are Committed to Sustainable Seafood & Sustainable Business Seafood is a healthy and sustainable source of protein Our seafood is responsibly sourced, with 96% certified as responsibly sourced seafood – wild and farmed, aligned with industry certifications including Global Seafood Sustainability
Slide 18: Our Market Opportunity & Growth Strategy
Our Market Opportunity & Growth Strategy
Slide 19: Category Poised for Growth
Category Poised for Growth Fragmented industry ripe for consolidation Favourable Macro Trends Population growth Demand for sustainable protein sources Increasing attention on health and wellness within mainstream demographic demonstrate our compelling value proposition Seafood is underdeveloped in S
Slide 20: Multiple Levers for Growth
Multiple Levers for Growth Organic Growth Strategy Strategic Investments Concentrate on the Core - win with winners Deepen and expand core business Grow category in partnership with customers Scale under-developed customers and channels Demonstrate our compelling value proposition Optimize and Diver
Slide 21: Our Robust Balance Sheet & Focus on Value Creation
Our Robust Balance Sheet & Focus on Value Creation
Slide 22: Strong Q4 2024 Performance
Strong Q4 2024 Performance Q4 2024: Key Highlights* Adjusted EBITDA and sales volume growth despite challenging market conditions Adjusted EBITDA increased by $1.9 million (8.7%) to $23.8 million Net sales impacted by deflationary raw material costs and increased promotional activity, offset Gross p
Slide 23: We Have Demonstrated Ability to Protect Margins During Volatile Markets
We Have Demonstrated Ability to Protect Margins During Volatile Markets Price, Cost of Sales and Gross Profit per Pound Sold Price / lb sold Cost of Sales / lb sold Gross Profit / lb sold $5 $4 $3 Higher cost of sales and pricing in inflationary $2 environment $1 $0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'
Slide 24: We Have Strong Free Cash Flow
We Have Strong Free Cash Flow Free Cash Flow and Cash Conversion Note: Financials presented per public filings. 24 1. Free Cash Flow defined as Adjusted EBITDA less CapEx. Free Cash Flow Conversion defined as Free Cash Flow / Adjusted EBITDA.
Slide 25: We Have Manageable Leverage Profile
We Have Manageable Leverage Profile Debt Leverage Ratio Net Debt* to Trailing 12-Month Adjusted EBITDA* *Please refer to the Company’s MD&A for Q4 2024 for the definition of non-IFRS financial measures “Net Debt” and “Adjusted EBITDA” • Net Debt* to Rolling Twelve-Month Adjusted EBITDA* was 2.3x at
Slide 26: 5 Year EBITDA History
5 Year EBITDA History Earnings before Interest, Taxes, Depreciation & Amortization *Please refer to the Company’s MD&A for Fiscal 2024 for definition of non-IFRS measures “Standardized EBITDA” and “Adjusted EBITDA” Note: Financials presented per public filings. 26
Slide 27: 5 Year EPS and ROE History
5 Year EPS and ROE* History Earnings per Share (EPS) and Return on Equity (ROE) *Please refer to the Company’s MD&A for Fiscal 2024 for definition of non-IFRS measures “Adjusted Diluted EPS” and “Return on Equity” Note: Financials presented per public filings. 27
Slide 28: Our Track Record of Returning Capital to Shareholders
Our Track Record of Returning Capital to Shareholders Dividend History *On November 8, 2024, the Board approved a quarterly dividend of CAD$0.17 per common share. Our growing and sustainable dividend is part of our disciplined approach to capital investment to fuel organic growth, M&A and return of
Slide 29: HLF = An Attractive Investment Proposition
HLF = An Attractive Investment Proposition Diversified business model, portfolio and Long-term financial stability global supply chain Resilience across market cycles Competitively positioned in large stable North American Frozen Seafood Market Stable and growing dividend Established and respected b
Slide 30: An Attractive Investment Proposition
An Attractive Investment Proposition
Slide 31: Thank You!
Thank You! The Company’s news release, MD&A and Financial Statements can be found in the Investor Center section of the High Liner Foods website. Please visit www.highlinerfoods.com for more details.
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