Superior Plus Corp · TSX:SPB
Superior Plus — Investor Presentation (September 2020)
27 slides from Superior Plus's investor presentation, Sep 2, 2020
Slide 1: Superior Plus Corp. September 2020 Investor Update
Superior Plus Corp. September 2020 Investor Update September 2, 2020 Superior Plus Corp. TSX: SPB
Slide 2: Forward-Looking Statements and Information
Forward‐Looking Statements and Information Certain information included herein is forward‐looking information within the meaning of applicable Canadian securities laws. Forward‐looking information may include statements regarding the objectives, business strategies to achieve those objectives, expec
Slide 3: Superior Overview
Superior Overview Superior Plus is a premier North American diversified industrial company with two businesses: Energy Distribution and Specialty Chemicals • A leading propane distributor and marketer in Canada, the Eastern US and California (operating in retail and wholesale propane markets); and •
Slide 4: Diversification Across Business Segments and Geography
Diversification Across Business Segments and Geography Energy Distribution • Approximately 75% of EBITDA from operations(1) Energy Distribution Sales Volume(4) • 3rd largest retail propane distributor in North America(2) • 5th largest retail propane distributor in the United States(2) Canadian Propa
Slide 5: Recent Developments
Recent Developments Superior Plus Corp. TSX: SPB
Slide 6: Brookfield Investment
Brookfield Investment • On July 13, 2020, Superior issued US$260 million (~C$350 million) in newly created perpetual Series 1 Preferred Shares (the “Preferred Shares”) which are exchangeable into common shares of Superior, on a private placement basis to an affiliate of Brookfield Asset Management I
Slide 7: Strategic Rationale and Credit Highlights
Strategic Rationale and Credit Highlights Supports U.S. Energy Distribution growth strategy • Positions Superior to pursue identified consolidation opportunities immediately and over the next 12 to 24 months • Enhances Superior’s ability to actively pursue high return acquisitions at valuations th
Slide 8: Q2 2020 Results
Q2 2020 Results Q2 2020 Q2 2019 Adjusted $68 $60 EBITDA(1) million million AOCF before transaction and $41 $31 other costs(1) million million AOCF per share(1) $0.23 $0.18 (1) Per 2020 Second Quarter MD&A (“MD&A”). See “Non‐GAAP Financial Measures”. 7
Slide 9: Recent Acquisitions
Recent Acquisitions • On September 1, Superior acquired the assets of Rymes Propane and Oil (“Rymes”) for US $159 million before adjustments for working capital. • Rymes adds approximately 88,000 residential and commercial customers primarily in New Hampshire. • On August 3, Superior acquired the as
Slide 10: COVID-19 Update
COVID‐19 Update Superior Plus Corp. TSX: SPB
Slide 11: Superior COVID-19 Pandemic Response
Superior COVID‐19 Pandemic Response Superior has been proactive and prudent in our planning, response and actions related to COVID‐19 Employees & • Safety is our first priority Communities • Ban on non‐essential travel and moved to virtual meetings and remote work where possible • Adjusted operating
Slide 12: Business Resiliency
Business Resiliency • Our propane distribution businesses enter the seasonally slower period of the year in Q2 and Q3 due to less heating demand • At least 70% of our costs are variable in our businesses, allowing us to reduce expenses quickly in response to decreased demand • Superior’s products an
Slide 13: Guidance & Key Credit Highlights
Guidance & Key Credit Highlights Superior Plus Corp. TSX: SPB
Slide 14: 2020 Adjusted EBITDA Guidance and Leverage
2020 Adjusted EBITDA Guidance and Leverage Based on management’s evaluation of the anticipated impacts from the COVID‐19 pandemic and reduced oil and gas drilling activity in North America, as well as the impact from the significantly warmer weather in the first quarter, Superior continues to expect
Slide 15: Debt Maturity Profile and Credit Ratings
Debt Maturity Profile and Credit Ratings Superior has a long‐dated maturity profile with no material maturities until 2024 Debt Maturity Schedule (C$ millions) • Targeted Payout Ratio of 40 – 60%(1) $1,000 o TTM payout ratio was 41% as of June 30, 2020 • $750 million credit facility matures in 2024
Slide 16: Energy Distribution
Energy Distribution Superior Plus Corp. TSX: SPB
Slide 17: North American Energy Distribution Strategy Summary
North American Energy Distribution Strategy Summary Superior Plus is well positioned in the North American propane industry U.S. Market Opportunity Canadian Platform U.S. Propane Business is is Attractive is Proven Ripe for Transformation • Significant opportunity to • Sales and marketing driving •
Slide 18: Energy Distribution Overview
Energy Distribution Overview Business Summary Geographic Footprint Leading retail supplier of propane in Canada and established footprint in the Eastern U.S. propane market Growth opportunities through new markets and industry consolidation Leading competitive position with full service capabi
Slide 19: Energy Distribution Volumes and Gross Profit
Energy Distribution Volumes and Gross Profit Energy Distribution Total Volume and Gross Profit by Segment 4% 4% 4% 6% 7% 4% 4% 3% 27% 26% Other Motor Fuels 21% Industrials Oilfield 48% Commercial Residential 33% Wholesale 8% Volume Gross Profit • Residential and commercial customers represent 74% of
Slide 20: U.S. Propane Distribution
U.S. Propane Distribution Volume and Gross Profit by Segment • U.S. propane distribution includes Superior’s retail 30% propane distribution business in the Eastern U.S., upper 50% Midwest and California • U.S. propane distribution customer mix is less Commercial diversified than Canada and gross pr
Slide 21: Canadian Propane Distribution
Canadian Propane Distribution Total Volume and Gross Profit by Segment • Canadian propane distribution includes Superior Propane, Superior Gas Liquids and United Pacific Energy (“UPE”) 6% 8% 7% o Superior Propane is the leading propane distributor in 13% Canada with a diversified customer base and c
Slide 22: Specialty Chemicals
Specialty Chemicals Superior Plus Corp. TSX: SPB
Slide 23: Specialty Chemicals Overview
Specialty Chemicals Overview Business Summary Geographic Footprint North America South America One of North America’s largest producers and Production facilities located at 9 sites across North America and one facility in Chile(2) supplier of sodium chlorate and sodium chlorite Diversified end mar
Slide 24: Specialty Chemicals – Business & Product Overview
Specialty Chemicals – Business & Product Overview Sodium Chlorate Chlor‐Alkali Sodium Chlorite Softwood International Bleached Oil & Gas Distribution Water Oil & Fertilizers Gas Pulp & Exports Board (Hydraulic Fracturing, (Rail & Truck) (Nutrients) Treatment 28% 26% 12% Exploration) 21% 9% 40% 26% 2
Slide 25: Summary
Summary Superior Plus Corp. TSX: SPB
Slide 26: Investment Highlights
Investment Highlights SAFETY & COMPELLING ENVIRONMENT GROWTH COMMITMENT PROSPECTS Industry Strong Financial Safety & Environment Compelling Growth Leadership Profile Commitment Prospects • Experienced • Strong free cash flow • Continue to be an • Numerous unique management team generation industry l
Slide 27: Non-GAAP Financial Measures
Non‐GAAP Financial Measures Throughout the presentation, Superior has used the following terms that are not defined by GAAP, but are used by management to evaluate the performance of Superior and its businesses. Since non‐GAAP financial measures do not have standardized meaning prescribed by GAAP an
Superior Plus — Investor Presentation (September 2020) on 6ix