Mission Produce, Inc. · NASDAQ:AVO
Mission Produce — Investor Presentation (March 2022)
22 slides from Mission Produce's investor presentation, Mar 10, 2022
Slide 1: March 10, 2022 Investor Presentation
March 10, 2022 Investor Presentation
Slide 2: Notice to and Undertaking by Recipients; Forward-Looking Statements
Notice to and Undertaking by Recipients This presentation does not purport to be all-inclusive or to contain all of the information that the Recipient may require. The Company expressly disclaims any and all liability relating to or resulting from the use of this presentation. This presentation may
Slide 3: Mission Produce: At a Glance
• The Global Industry Leader • Leading Avocado Distributor by Volume • Year-Round Supply • Vertical Integration Mission Produce: At a Glance First to… • Use Avocado Ripening Centers • Import Avocados from Mexico, Peru and Chile • Utilize state-of-the-art post-harvest techniques in hydro-cooling and
Slide 4: A Long Track Record of Growth
A Long Track Record of Growth $892mm FY 2021 Revenue 19 World Class Facilities Across 9 Countries (2) ~15% Avocados Sourced from Owned Production (2021) ~11% '11 – ‘21 Avocado Volume CAGR ~9% '11 – ‘21 Revenue CAGR FY 2021 Adj. EBITDA (1) 10% Adj. EBITDA Margin (1) 26.1 mm lugs 9.1 $85mm Source: Man
Slide 5: We Operate in a Large and Growing Market with Supportive Tailwinds
Per Capita Consumption 18.0 8.6 5.6 2.9 1.5 0.5 Mexico U.S. Canada EU Japan South Korea $13.5 $21.4 2018A 2026E $6.5 $8.0 2019A 2023E We Operate In a Large and Growing Market with Supportive Tailwinds ($bn) ($bn) (2020 Per-Capita Avocado Consumption in lbs) Significant Growth Opportunity (2) Source:
Slide 6: And Significant Barriers to Entry
And Significant Barriers to Entry Key Relationships: Our relationships extend across thousands of avocado growers and regions globally Investments of Time and Capital: Capital investment, ripening and logistics expertise, and significant lead time from seed to fruit Economics of Scale: Company-owned
Slide 7: Uniquely Positioned with a Full Suite of Enhanced Capabilities
Uniquely Positioned with a Full Suite of Enhanced Capabilities Company Primary Reach for Avocado Distribution National (U.S.) Distribution Footprint Ripening Capabilities Other Value-Add Services Vertical Integration Year-Round Two Countries of Origin Supply Global U.S. U.S. / Europe
Slide 8: Focused Growth Strategy
Focused Growth Strategy Capitalize on strong growth trends in our core U.S. market by expanding our nationwide distribution network Leverage our global supply chain and distribution capabilities to continue developing international markets Diversify sourcing to enhance our global market- leading pos
Slide 9: Strong Global Distribution Network and Customer Base
Strong Global Distribution Network and Customer Base Top 10 customers represent less than 60% of total revenue in FY 2021 All of our top 10 customers have been customers for over 10 years High-quality, global, diverse and long- standing customer relationships Serves retail, wholesale and foodservice
Slide 10: Extensive Infrastructure With State-of-the-Art Facilities
Extensive Infrastructure With State-of-the-Art Facilities 4 packinghouses in Peru, California and Mexico Proximity of packinghouses to our growers deepens the relationships and differentiates us from other buyers 12 FDCs and Ripening Centers Our FDCs allow us to store volume and allocate efficiently
Slide 11: Our Unique Nationwide Distribution Capabilities
Our Unique Nationwide Distribution Capabilities Enable Us to Grow Volumes with New and Existing Customers Across Multiple Channels The U.S. is our largest market, where our ripening and distribution centers enable us to store and ripen avocados in close proximity to our highest volume customers na
Slide 12: Value Provided to Customers Across Key Channels
Provide specific grades of fruit and tailored specs with cost and margins in mind Offer 24-hour customer support, localized distribution and consistent supply of fruit to ensure customer retention Provide ripening expertise to satisfy demand for high quality, ready-to-eat fruit Provide ripe,
Slide 13: International Avocado Consumption is Poised to Grow
• U.S. avocado consumption has seen significant growth over the past decade • Mission is driving year-round availability in international markets to meet growing demand 3.8 8.6 US - 2020 US - 2021 18.0 8.6 5.6 2.9 1.5 0.5 Mexico US Canada EU Japan S. Korea (2020 per-capita avocado consumption in lbs
Slide 14: Europe and Asia Growth Opportunities
Europe • Further opportunities to capitalize on the growing demand for avocados throughout Europe. In 2013 consumption in Europe was under 100,000 tons and in 2020 it increased to 670,000 tons – a clear indicator of the European market’s growth potential • Continue to increase exports from Peru, Gua
Slide 15: Diversified Sourcing and Year-Round Supply
Diversified Sourcing and Year-Round Supply Colombia Colombia can supply avocados year- round with fruit characteristics similar to Mexico and one-week transit time to U.S. Peak season is opposite of Peru to service Europe and Asia markets. South Africa Operating in partnership with one of the larges
Slide 16: International Farming and Vertical Integration
International Farming and Vertical Integration Better Control Over Supply Enables Season-Long Pricing Programs for Customers Better Control Over Farming Practices Partnerships with Key Local Players in Each Country are Essential Margin Enhancement Peru – since 2011 100% ownership of operat
Slide 17: Disciplined Approach Towards Long-Term Vertical Integration Investments
EBITDA Margin Accretive Once Fully-Operational Complementary Growing Seasons To Existing Sourcing Geographies Select thresholds for vertical integration capital planning We are focused on applying our successful Peru model elsewhere and have laid the groundwork in Guatemala Our vertically integrated
Slide 18: Overview of Value-Added Services
Overview of Value-Added Services We provide customers with leading operations and industry insights geared toward driving sales • Ripening to customer specifications • Bagging and custom packaging • Logistics management (especially trucking) • Hands-on training to facilitate proper fruit handling •
Slide 19: Experienced Values-Based Leaders Who Nurture a Culture of Innovation and Growth
Experienced Values-Based Leaders Who Nurture a Culture of Innovation and Growth Bryan Giles Chief Financial Officer Juan Wiesner Director of Latin American Operations Steve Barnard Founder, President and Chief Executive Officer Jesus Garcia, Fernando Garcia Directors of Mexican Operations • Seasoned
Slide 20: ESG Highlights
ESG Highlights Decreased out total global scope 1 and 2 emissions by 15.8% and reduced our total waste by 16.2% Modified our pallet configuration and box design, resulting in the removal of 285 over- the-road trucks from our supply chain and 20 acres preserved from deforestation Precision and
Slide 21: Appendix
21 APPENDIX
Slide 22: Non-GAAP Reconciliations
22 Non-GAAP Reconciliations Adjusted EBITDA and Adjusted EBITDA Margin *Totals may not sum due to rounding. Adjustments to operating margin that rounded to zero were not presented in this table.