High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Shareholder Meeting (May 2016)
21 slides from High Liner Foods's shareholder meeting presentation, May 11, 2016
Slide 1: AGM Presentation
AGM PRESENTATION 2016 ANNUAL AND SPECIAL GENERAL MEETING OF SHAREHOLDERS May 11, 2016
Slide 2: Tim Rorabeck, EVP Corporate Affairs & General Counsel
TIM RORABECK EVP, CORPORATE AFFAIRS & GENERAL COUNSEL
Slide 3: 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 4: Presentation Notes
PRESENTATION NOTES PRESENTATION CURRENCY: • High Liner Foods (“the Company”) began reporting its financial statements in USD in 2012, however its common shares trade on the TSX and are quoted in CAD and therefore references in this presentation to share price, dividends and market cap are in CAD. NO
Slide 5: Henry Demone, Chairman of the Board
HENRY DEMONE CHAIRMAN OF THE BOARD
Slide 6: Keith Decker, President & CEO
KEITH DECKER PRESIDENT & CEO
Slide 7: Fiscal 2015 in Review
FISCAL 2015 IN REVIEW STRATEGIC: • Organic growth challenges due to a number of external and internal factors • Significant progress on supply chain optimization focused on improved efficiency and cost savings at both the plant and entity level ($6M+ savings realized in 2015 related to these initiat
Slide 8: Review of 2016 Strategic Goals
REVIEW OF 2016 STRATEGIC GOALS 1. PROFITABLE GROWTH • Increase EBITDA through a combination of: • Organic growth - product innovation and expansion • Acquisitions – seafood category remains highly fragmented relative to other proteins 2. SUPPLY CHAIN OPTIMIZATION • Annual operating cost savings of $
Slide 9: Paul Jewer, Executive VP & CFO
HIGH LINER FOODS PAUL JEWER EXECUTIVE VP & CFO
Slide 10: Fiscal 2015 Financial Review: Sales History
FISCAL 2015 FINANCIAL REVIEW SALES HISTORY $1,200 $1.0B $1,000 $800 USD millions $600 $400 $200 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 10
Slide 11: Fiscal 2015 Financial Review: EBITDA History
FISCAL 2015 FINANCIAL REVIEW EBITDA HISTORY $100 $90 $78.2M $80 $70 USD millions $60 $50 $40 $30 $20 $10 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Standardized EBITDA: Earnings before interest, taxes, depreciation and amortization as reported in the Company’s annual audited financial stat
Slide 12: Fiscal 2015 Financial Review: Diluted EPS and ROE History
FISCAL 2015 FINANCIAL REVIEW DILUTED EPS AND ROE HISTORY $1.75 30% $1.50 25% Diluted Earnings per Share $1.25 $1.14 Return on Equity 20% $1.00 15% $0.75 10% $0.50 5% $0.25 $0.00 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Diluted EPS Adjusted Diluted EPS Return on Equity Diluted EPS is net
Slide 13: Net Interest-Bearing Debt to Adjusted EBITDA Ratio
FISCAL 2015 FINANCIAL REVIEW NET INTEREST-BEARING DEBT TO ADJUSTED EBITDA RATIO Net interest-bearing debt / rolling 12 month Adjusted EBITDA 5.0x 4.4x 4.4x 3.9x 4.0x 4.0x 4.0x 3.4x 3.2x 3.0x 3.0x 2.0x 1.0x 0.0x Dec 31/11 Dec 29/12 Sep 28/13 Dec 28/13 Sep 28/14 Jan 3/15 Jan 2/16 Target Pro forma Pre-
Slide 14: Fiscal 2015 Financial Review: Dividend History
FISCAL 2015 FINANCIAL REVIEW DIVIDEND HISTORY $0.50 $0.465 $0.45 Annual Dividend paid per Share ($CAD) $0.40 12-year CAGR (2003 to 2015): 28% $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 14
Slide 15: Financial Overview – Q1 2016
FINANCIAL OVERVIEW – Q1 2016 • Sales volume decreased by 1.3.M lbs (1.5%) - impact of shorter promotional period associated with Lent in 2016 and lower demand for traditional breaded and battered frozen seafood products • Sales decreased by $19.7M (6.4%) - lower volume, price decreases and the impac
Slide 16: Financial Overview – Q1 2016: Sales
FINANCIAL OVERVIEW – Q1 2016 SALES (USD MILLIONS) $350 $310.2 $290.5 $300 $250 $200 $150 $100 $50 $0 2015 2016 • Pounds sold decreased 1.5% to 88.2M lbs • Sales in domestic currency were $312.4M compared to $326.9M • Weaker CAD decreased reported USD sales by $5.9M relative to the conversion impact
Slide 17: Financial Overview – Q1 2016: EBITDA
FINANCIAL OVERVIEW – Q1 2016 EBITDA (USD MILLIONS) $35 $30.7 $29.4 $30 $25 $20 $15 $10 $5 $0 2015 2016 Standardized EBITDA Adjusted EBITDA • Adjusted EBITDA in domestic currency was consistent at $31.5M compared to $31.6M reflecting impact of lower sales volume fully offset by savings in distributio
Slide 18: Keith Decker, President & CEO
HIGH LINER FOODS KEITH DECKER PRESIDENT & CEO
Slide 19: Review of 2016 Strategic Goals
REVIEW OF 2016 STRATEGIC GOALS 1. ORGANIC SALES GROWTH – PRIMARY FOCUS IN 2016 • Strive for commercial excellence • Innovation 2. OPERATING EFFICIENCY AND COST MANAGEMENT • Annual operating cost savings of at least $20M on a run rate basis by the end of 2016 (full benefit to be realized in 2017) • “
Slide 20: Slide 20
Slide 21: High Liner Foods
LE HIGH LINERFOODS