Sunopta — Q4 2015 Earnings Presentation
19 slides from Sunopta's earnings presentation, March 2016
Slide 1: Q4 and Fiscal 2015 Update
Q4 and Fiscal 2015 Update March March 2016 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may include forward-looking statements and therefore is subject to important risks and uncertainties. Actual results could differ materially from the conclusions, forecasts and projections as certain material factors and assumptions were applied in drawin
Slide 3: Uniquely Positioned to Take Advantage of Attractive Market Opportunities
Uniquely Positioned to Take Advantage of Attractive Market Opportunities “Pure play” exposure to organic/non- Underpinned GMO foods & private label by Growing CONSUMER TRENDS Largest supply chain in organic raw materials/ingredients in the world Awareness of Linkage Between Diet & Health Fully
Slide 4: Q4 2015 Recap
Q4 2015 Recap • Normalized revenue increased 5.5% to $316 million, exceeding our annual growth rate of 4.1% • Adjusted EBITDA of $14.2 million and Adjusted Earnings of $0.03 per diluted share • Our acquisitions performed as expected and the integration of Sunrise Growers is proceeding on track • Cha
Slide 5: 2015 Was A Year of Transformation, Repositioning our Pure-Play Foods Company
2015 Was A Year of Transformation, Repositioning our Pure-Play Foods Company Completed three strategic acquisitions to transform our CPG platform: • Sunrise Growers – Leading platform in frozen fruit • Citrusource – Leading player in private label juices • Niagara Natural – Strategic East Coast manu
Slide 6: Progress Toward 2016 Operating Goals
Progress Toward 2016 Operating Goals Consumer Products 1. Healthy Beverage 2. Healthy Fruit 3. Healthy Snacks • Citrusource fully • Acquired leading • Fully integrated integrated into position in private Niagara San Bernardino label frozen fruit • Showcasing turn-key • Allentown aseptic operation •
Slide 7: Operational Goals for 2016
Operational Goals for 2016 Growth in Revenue & Gross Margin + Beverage Fruit Snacks - Increase gross margin Successful integration Achieve growth in fruit by $6 million of Sunrise Growers snacks of at least 10% Achieve double-digit Deliver $5 to $7 million Fill bar/pouch Two- growth in non-dairy of
Slide 8: Execution a Must in Key Areas
Execution a Must in 3 Key Areas CUSTOMERS Customer Satisfaction: Increased 10% in 2015 COSTS SG&A: Targeting to be below our stated goal of 8% EMPLOYEES Supply Chain: Opportunities in logistics and Employee Engagement: warehouse costs Better understanding of our purpose, core values and Focusing on
Slide 9: Good Start to 2016
Good Start to 2016 • Executing synergy & integration plan SUNRISE • Improved sales momentum • New contracts in aseptic beverage category as CONSUMER a result of our expanded national footprint PRODUCTS • Launching private label snacks and beverage innovations • Modest progress in Q1 from Q4 OVERALL
Slide 10: Q4 2015 Revenue
Q4 2015 Revenue Normalized ($ millions) Q4 2015 Q4 2014 Growth Rate Global Ingredients $143.5 $141.8 +4.2% Consumer Products $172.9 $108.7 +7.1% Total Revenue $316.4 $250.6 +5.5% 10
Slide 11: Key Financial Statistics
Key Financial Statistics Fiscal Fiscal ($ millions, except EPS amounts) Q4 2015(1) Q4 2014(1) 2015(1) 2014(1) Revenues $316.4 $250.6 $1,145.1 $1,102.7 Gross Margin 25.2 23.6 110.4 122.1 Operating Income (1.7) 4.2 21.3 41.7 OI as % of Revenues (0.6%) 1.7% 1.9% 3.8% Earnings (Loss) from Continuing Ope
Slide 12: Cash Flow Summary
Cash Flow Summary Cash Provided by (used in) (1) Fiscal Fiscal Q4 2015 Q4 2014 ($ millions) 2015 2014 Cash Flows from Operations $26.1 ($15.0) $26.4 $17.5 Cash Flows from Investing Activities (480.7) (5.4) (521.8) (12.5) Cash Flows from Financing Activities 359.6 (10.9) 490.2 (38.6) 1 Reflects cash
Slide 13: Key Balance Sheet Metrics
Key Balance Sheet Metrics Balance Sheet January 2, 2016 January 3, 2015 ($ millions, except ratio and per share amounts) Working Capital1 $364.8 $234.0 Total Assets2 $1,154.9 $530.9 Total Debt $482.8 $83.0 Ratio of Total Debt to Equity 1.15 to 1.00 0.24 to 1.00 Book Value per Share $4.93 $5.08 1Work
Slide 14: In Conclusion
In Conclusion Growing Organic and Non-GMO Markets Strategic Blueprint to Drive Higher Operating and EBITDA Margins Sunrise Growers Acquisition has Strong Strategic and Financial Merits Secured All Debt Financing with Commitment of 5-6 Years Excelution is paramount 14
Slide 15: SunOpta - Bringing well-being to life
SunCopta Bringing well-being to life
Slide 16: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures This presentation includes certain measures not derived in accordance with generally accepted accounting principles (“GAAP”). Such measures should not be considered substitutes for any measures derived in accordance with GAAP and may also be inconsistent
Slide 17: Reconciliation of GAAP Results to Adjusted Earnings and Adjusted EPS
Reconciliation of GAAP Results to Adjusted Earnings and Adjusted EPS Fiscal Fiscal Fiscal ($ millions, except per share amounts; totals may not sum due to rounding) 2015 2014 2013 Earnings (loss) attributable to SunOpta Inc. $ (22.5) $ 13.1 $ (8.5) Earnings (loss) from discontinued operations attrib
Slide 18: Reconciliation of GAAP Results to Operating Income, EBITDA and Adjusted EBITDA
Reconciliation of GAAP Results to Operating Income, EBITDA and Adjusted EBITDA Q4 Q4 Fiscal Fiscal Fiscal ($ millions, except per share amounts; totals may not sum due to rounding) 2015 2014 2015 2014 2013 Earnings (loss) from continuing operations $ (13.8) $ 5.0 $ (3.1) $ 19.5 $ (8.6) Provision for
Slide 19: Poised to Accelerate our Transformation as a Global Leader
Poised to Accelerate our Transformation SunOpta Inc. as a Global Leader in March 22332016 Argentia Road, Suite 401 Mississauga, Ontario L5N 2X7 Healthy and Organic Foods www.sunopta.com