High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Q2 2023 Earnings Presentation
30 slides from High Liner Foods's earnings presentation, August 2023
Slide 1: Investor Presentation
Investor Presentation August 2023
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: Company Overview & Strategy
Company Overview & Strategy 4
Slide 5: High Liner Foods at a Glance
High Liner Foods at a Glance A publicly-traded Canadian company, listed on the RETAIL Toronto Stock Exchange under the symbol ‘HLF’ A leading North American processor and marketer of value-added frozen seafood to the foodservice and retail channels Over 120 years of seafood expertise Our core brands
Slide 6: Investment Thesis
Investment Thesis Why Now? Why Seafood? Why High Liner Foods? Proven ability to deliver strong financial results Healthy - for both people and the A North American leader in value-added and cash flow from operations despite environment frozen seafood with over 120 years of unprecedented challenges i
Slide 7: A North American Leader in Value-Added Frozen Seafood with a Diversified Portfolio
A North American Leader in Value-Added Frozen Seafood with a Diversified Portfolio Based on 2022 Sales lbs • #1 frozen fish manufacturer and #1 frozen value-added seafood manufacturer in Canadian retail market(1) • #1 prepared frozen fish manufacturer and #4 frozen value-added seafood manufacturer i
Slide 8: Our Purpose - Reimagining Seafood to Nourish Life
Our Purpose - Reimagining Seafood to Nourish Life At High Liner Foods, we recognize our responsibility to support healthy oceans, planets and communities. This is the foundation of our purpose, Reimagining Seafood to Nourish Life, which guides every decision we make and every action we take. Nothing
Slide 9: Sustainability
Sustainability For over 120 years we have operated as a responsible corporate citizen and in the past two decades we have deeply embedded sustainability practices into our DNA. We are committed to continuous improvement and to build on our progress to date. Please visit www.highlinerfoods.com for mo
Slide 10: Financial Review & 2023 Outlook
Financial Review & 2023 Outlook
Slide 11: Q2 2023 Performance
Q2 2023 Performance In the first half of the year the Company generated in excess of $50 million in cash flow from operations. In Q2 2023, the Company once again delivered sales volume and dollar growth, while gross profit and EBITDA declined due to higher inventory costs and sharper pricing during
Slide 12: 2023 Outlook
2023 Outlook We expect that current headwinds will put pressure on our business through the second half of the year, but we continue to remain confident in our business and our ability to deliver another year of strong Adjusted EBITDA performance, while generating significant cash flow from operatio
Slide 13: Q2 2023 YTD Sales Volume and Net Sales
Q2 2023 YTD Sales Volume and Net Sales Sales volume increased $4.3M lbs (3%) to 136.4M lbs ▪ Foodservice: sales volume higher due to increased contract manufacturing business, increased sales in newer product lines, new business, and improved customer service levels. The Company achieved strong serv
Slide 14: Q2 2023 YTD Adjusted EBITDA
Q2 2023 YTD Adjusted EBITDA Earnings before Interest, Taxes, Depreciation and Amortization * Please refer to the Company’s MD&A for Q2 2023 for definition of non-IFRS financial measures “Standardized EBITDA” and “Adjusted EBITDA” Adjusted EBITDA decreased $0.5M (0.9%) to $53.2M and decreased by 70 b
Slide 15: Q2 2023 YTD Earnings Per Share (EPS)
Q2 2023 YTD Earnings Per Share (EPS) * Please refer to the Company’s MD&A for Q2 2023 for definition of non-IFRS financial measure “Adjusted Diluted EPS” and “Adjusted Net Income.” Adjusted Diluted EPS increased by $0.05 (6.9%) to $0.77 ▪ Adjusted Net Income increased by $1.4M (5.6%) to $26.5M refle
Slide 16: Debt Leverage Ratio
Debt Leverage Ratio Net Debt* to Trailing 12-Month Adjusted EBITDA* Target (3.0x) *Please refer to the Company’s MD&A for Q2 2023 for the definition of non-IFRS financial measures “Net Debt” and “Adjusted EBITDA” • Net Debt* to Rolling Twelve-Month Adjusted EBITDA* was 3.3x at July 1, 2023 compared
Slide 17: Dividend History
Dividend History * Reflects Q1/Q2/Q3/Q4 dividend of CAD$0.13 per share On August 9, 2023, the Board approved a quarterly dividend of CAD$0.13 per common share.
Slide 18: Appendix #1: Miscellaneous Company Information
Appendix #1: Miscellaneous Company Information
Slide 19: High Liner Foods
High Liner Foods Canadian public company since the 1960s, TSX- listed in 1971 Current price CAD$13.76* Shares outstanding ~33.4M Market capitalization ~CAD$459.0M 52-week range CAD$11.89 - $15.87* Insider Holding %*** 39% Annual dividend CAD$0.52 per share** Current yield 3.8% * Source TSX, as of Au
Slide 20: High Liner Foods
High Liner Foods Over 120 years of seafood expertise 2017 Rubicon 2022 2013 Resources acquisition American Pride Seafood acquisition 2010 2014 1999 Viking Atlantic Trading Name Change acquisition 2011 Company to High Liner acquisition 1986 Foods Icelandic USA 2007 acquisition 1926 Fisher Boy acquisi
Slide 21: Flexible, Integrated Operations
Flexible, Integrated Operations Three value-added seafood manufacturing facilities in North America Increased demand for value-added products increases plant efficiency Current manufacturing footprint: aggregate production Lunenburg, NS capacity of ~172M LBS based on current shift patterns (Canada)
Slide 22: Species Diversity
Species Diversity In 2022, the Company purchased approximately 198M LBS of seafood with an approximate value of $653.5M, reflecting approximately 24 species from 19 different countries. Major species (7) accounted for ~93% of the total dollar purchases. Based on 2022 Purchases (in USD)
Slide 23: ESG at High Liner Foods
ESG at High Liner Foods High Liner Foods began our responsible sourcing journey over a decade ago and has made steady gains since that time, working toward a goal of delivering products that are 100% responsibly sourced. In 2021, High Liner Foods took its next step in the ESG journey and completed a
Slide 24: Appendix #2: Historical Financial Performance
Appendix #2: Historical Financial Performance 24
Slide 25: 10 Year Sales History - Volume and USD
10 Year Sales History - Volume and USD Sold New Bedford Scallop business
Slide 26: 10 Year EBITDA History
10 Year EBITDA History Earnings before Interest, Taxes, Depreciation & Amortization Sold New Bedford Scallop business *Please refer to the Company’s MD&A for Fiscal 2022 for definition of non-IFRS measures “Standardized EBITDA” and “Adjusted EBITDA”
Slide 27: 10 Year EPS and ROE History
10 Year EPS and ROE* History Earnings per Share (EPS) and Return on Equity (ROE) Sold New Bedford Scallop business *Please refer to the Company’s MD&A for Fiscal 2022 for definition of non-IFRS measures “Adjusted Diluted EPS” and “Return on Equity”
Slide 28: 10 Year Debt Leverage Ratio
10 Year Debt Leverage Ratio Net Debt* to Trailing 12-Month Adjusted EBITDA* Sold New Bedford Scallop business Target (3.0x) *Please refer to the Company’s MD&A for Fiscal 2022 for definition of non-IFRS measures “Adjusted EBITDA” and “Net Debt”. **Does not include trailing 12-month Adjusted EBITDA f
Slide 29: 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.
Slide 30: 9) ) HIGH LINER FOODS r Changing the way we see food
9) ) HIGH LINER FOODS 4 r Changing the way we see food