Superior Plus Corp · TSX:SPB
Superior Plus — Investor Presentation (January 2019)
21 slides from Superior Plus's investor presentation, Jan 22, 2019
Slide 1: January Investor Update
Superior Plus Corp. TSX: SPB January Investor Update January 22, 2019
Slide 2: Forward-Looking Statements and Information
Forward-Looking Statements and Information This presentation is for information purposes only and is not intended to, and should not be construed to constitute, an offer to sell or the solicitation of an offer to buy, securities of Superior Plus Corp. (“Superior"). This presentation and its contents
Slide 3: Superior Plus Overview
Superior Plus Overview Superior Plus operates two businesses, Energy Distribution and Specialty Chemicals: Shares outstanding(2) 174.9 million • We strive to differentiate our offering through TSX share price(2) $10.47 value-added services, including our industry- leading digital platform; Market Ca
Slide 4: Superior Overview
Superior Overview Energy Distribution Specialty Chemicals • Leading distributor and marketer of propane in Canada Production and sales of: • Sales volume of 2.1 billion litres(1) • Sodium Chlorate products • Distribution of primarily retail propane volumes in the Eastern U.S. • One of the largest pr
Slide 5: Energy Distribution Summary
Energy Distribution Summary Business Summary Geographic Footprint Leading retail supplier of propane in Canada and established footprint in the Eastern U.S. propane and retail heating oil markets Growth opportunities through new markets and industry consolidation Leading competitive position w
Slide 6: Energy Distribution – Canadian Propane Distribution
Energy Distribution – Canadian Propane Distribution Business & Product Summary Volume by Segment(2) Superior Propane is Canada’s leading propane distribution company 7% 9% • Founded in 1951, Superior Propane is an iconic 65-year old Canadian brand with ~40% market share assuming market size of ~5.1
Slide 7: Energy Distribution – US Propane Distribution
Energy Distribution – US Propane Distribution Business & Product Summary Volume by Segment(1)(4) Gross Profit by Segment(1)(4) U.S. Propane Distribution is a propane focused retail and wholesale distribution business operating in 23 states(1) 6% • Propane market in current U.S. Northeast footprint 3
Slide 8: Specialty Chemicals - Segment Summary
Specialty Chemicals - Segment Summary 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 Diversifi
Slide 9: Specialty Chemicals – Business & Product Overview
Specialty Chemicals – Business & Product Overview Market Update and Outlooks Sales by Customer Segment(1) • North American chlorate operating rates continue to run at ~95%; 1 • Sodium chlorate demand in H1-2019 is expected to be a strong leading 27% 18% 16% 9% indicator for producers and pricing for
Slide 10: 2019 Areas of Focus
2019 Areas of Focus • Execution on key themes of Evolution 2020 • Organic growth • Sustainable capital structure and cash flow profile Superior Plus • Continuous improvement • Continued focus on acquisitions • Talent management • Continuous improvement in HS&E • Integration of NGL and other tuck-in
Slide 11: Financial Overview
Superior Plus Corp. TSX: SPB Financial Overview
Slide 12: 2019 Adjusted EBITDA Guidance and Leverage
2019 Adjusted EBITDA Guidance and Leverage • 2019 Adjusted EBITDA is anticipated to improve 31% compared to 2018 Guidance 2019 2018 Adjusted EBITDA Guidance(1)(2) $445-$495 million $345-$375 million Total Debt to Adjusted EBITDA(1)(2) 3.6X – 4.0X 3.8X – 4.2X • EBITDA from operations for Energy Distr
Slide 13: Debt Maturity Profile
Debt Maturity Profile • Superior has a staggered balanced maturity Debt Maturity Schedule (C$ millions) profile with no material maturities until 2023 • NGL transaction financed with a C$150 million $500 upsize of existing 5.125% unsecured debentures, $400 $400 million equity offering, 7.0% $350 mil
Slide 14: Summary
Superior Plus Corp. TSX: SPB Summary
Slide 15: Evolution 2020 Business Overview
Evolution 2020 Business Overview Energy Distribution • An ideal industry to grow through acquisitions and immediately leverage our solid platform, including: • Increased provision of value-added services • Utilizing our supply cost advantage • Maximizing logistics capabilities • Acquisition strategy
Slide 16: Evolution 2020 Keys to Success
Evolution 2020 Keys to Success ORGANIC STRATEGIC CONTINUOUS TALENT GROWTH ACQUISITIONS IMPROVEMENT MANAGEMENT Digital innovation, Deploying capital to Consistently Having the best partnerships and build up retail identifying people aligned with geographic expansion propane platform and opportunities
Slide 17: Evolution 2020 Goals
Evolution 2020 Goals $476.5 – 2016 2017 2018 2020E $526.5 million(10) NGL Propane Synergies(3) NGL Propane(4) Canwest Synergies(5) Canwest(6) $426.5 million(10) Specialty Chemicals(7) Tuck-in Acquisitions(8) Organic Growth $352.1 million(2) $306.8 million $276.5 million(1) Evolution 2020 updated goa
Slide 18: Investment Highlights
Investment Highlights INDUSTRY STRONG FINANCIAL SAFETY & COMPELLING LEADERSHIP PROFILE ENVIRONMENT GROWTH COMMITMENT PROSPECTS • Experienced • Committed to BB • Continue to be an • Numerous unique management team credit rating industry leader in organic growth • Best-in-class • Strong free cash safe
Slide 19: Recent Developments
Recent Developments • Superior introduced its 2019 Adjusted EBITDA guidance range of $445 million to $495 million, a 31% increase compared to the midpoint of the 2018 Adjusted EBITDA guidance. • Acquired substantially all of the propane distribution assets of Musco Fuel & Propane LLP on November 1,
Slide 20: 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
Slide 21: Appendix 1: Propane Distribution Overview
Appendix 1: Propane Distribution Overview SUPPLY LOGISTICS DISTRIBUTION/MARKETING REFINERIES COMMERCIAL/INDUSTRIAL THIRD PARTY TRUCKING WHOLESALE RAIL 21