Bellring Brands, Inc. · NYSE:BRBR
Bellring Brands — Investor Presentation (February 2022)
47 slides from Bellring Brands's investor presentation, Feb 28, 2022
Slide 1: BellRing Brands, Inc. Investor Presentation
February 2022 BellRing Brands, Inc. Investor Presentation Exhibit 99.1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Certain matters discussed in this presentation and the accompanying oral presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made based o
Slide 3: Cautionary Statement Regarding Forward-Looking Statements (continued)
(CONTINUED FROM PRIOR PAGE): fluctuations in BellRing’s business due to changes in its promotional activities and seasonality; BellRing’s ability to maintain the net selling prices of its products and manage promotional activities with respect to its products; BellRing’s high leverage, its ability t
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures While BellRing reports financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes the non-GAAP measures of Adjusted EBITDA and free cash flow for BellRing, neither of which is in accordance with or a substitute
Slide 5: Additional Information: Prospective Information
Additional Information (Cont’d) Prospective Information Any prospective information provided in this presentation regarding BellRing’s future performance, including BellRing’s plans, expectations, estimates and similar statements, represents BellRing management’s estimates as of February 3, 2022 onl
Slide 6: Today's speakers
Previous experience Previous experience Previous experience Today’s speakers Darcy Davenport President and CEO Years of experience: 27 Paul Rode CFO Years of experience: 28 Doug Cornille Chief Growth Officer Years of experience: 26
Slide 7: Company Overview
COMPANY OVERVIEW brands
Slide 8: Introduction to BellRing Brands
01 Category: Large and Growing Category Driven by Macro Consumer Trends 02 Brands: Premier Protein and Dymatize are Two Leading, Mainstream Brands with Significant Upside and Brand Loyalty 03 Products: Amazing Products that Truly Improve Lives 04 Competitive Moat: Ready-to-Drink Shake Production is
Slide 9: Our Mission: Bring Good Energy to the World
Our Mission: Bring Good Energy to the World be a builder ring the bell pay it forward play to win connect and belong WHAT WE DO Deliver nutrition people need and can’t wait to have. HOW WE DO IT With optimism, kindness and a relentless drive to win
Slide 10: Our History
Our History 1987 PowerBar founded by Brian Maxwell and his wife Jenny 1994 Dymatize founded and began selling to professional athletic programs 2015 Creation of Post Active Nutrition Division 2019 IPO of Post Active Nutrition Division (BellRing Brands) 2006 Premier Protein shakes launched in Costco
Slide 11: Portfolio Breakdown
Portfolio Breakdown LTM Q1 2022 Net Sales by Geography LTM Q1 2022 Net Sales by Channel LTM Q1 2022 Net Sales by Product Type LTM Q1 2022 Net Sales by Brand Notes: The Company has a fiscal year ending September 30. Last Twelve Months ("LTM") to December 31, 2021.
Slide 12: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS brands
Slide 13: Key Investment Highlights
Key Investment Highlights Proven track record across channels based on strong customer relationships 3 Attractive financial profile with proven growth track record 4 Well positioned in growing and on-trend categories 1 Strong portfolio of brands with superior and innovative products 2 Experienced an
Slide 14: Large and Growing Global Convenient Nutrition Category
Notes: Euromonitor July 2020 for Global and August 2021 for U.S. NielsenIQ Household Panel 52 weeks ended January 1, 2022. Calculated based on Euromonitor data for 2019–2023. Large and Growing Global Convenient Nutrition Category… $20Bn U.S. Market (1) ~6% U.S. Category 2019 – 2023 CAGR (3) $35Bn Gl
Slide 15: Key Consumer Macro Trends
Aging Population Return of On-The-Go Proactive Health Focus Heightened Urgency around Healthy Eating Globally aging population increasingly turning to food and category to maintain health to support active lifestyles 29 lbs average COVID-19 related weight gain (1) >100 million prediabetic or diabeti
Slide 16: Step Change Growth Driven by Consumers Turning to the Category
... And Step Change Growth Driven by Consumers Increasingly Turning to the Category to Improve Their Health Notes: NielsenIQ xAOC+C through January 1, 2022. Pre-COVID-19 (52 w/e 3/14/2020) October – December 2021 Category +6% +18% RTDs +7% +17% Powders +4% +17% Bars +6% +20% 1
Slide 17: Strong, Complementary Portfolio of Brands
Strong, Complementary Portfolio of Brands 2 Products Brand Brand Vision To improve people’s health by putting great tasting nutrition within everyone’s reach Product focus: RTD Shakes To protect and honor all athletes Product focus: Protein Powder
Slide 18: Keys to Premier Protein's Success
Keys to Premier Protein’s Success GREAT PRODUCTS MEETS NEEDS ACROSS CONSUMER SEGMENTS BRAND POSITIONING Superior taste Shakes have been awarded the American Masters of Taste Gold Medal for 2015-2022 Nutritional benefits 11oz shake contains 30 grams of protein with only 1 gram of sugar Approachable p
Slide 19: Keys to Dymatize's Success
LEADING SPORTS NUTRITION BRAND EQUITY Top-tier sports powder equity metrics: #1 ‘Brand I Love’, #1 ‘Brand I Would Pay More For’ and #1 NPS score (1) PREMIUM SPORTS NUTRITION PRODUCTS Dominant share in highest quality proteins – hydrolyzed whey protein isolate Best tasting chocolate protein powder in
Slide 20: Proven Track Record Across Channels
Proven Track Record Across Channels Based on Strong Customer Relationships Club +13% FDM +33% eCommerce +48% FY2017 – FY2021 Net Sales CAGR Key Highlights Strong and growing leadership in club with deep long-standing customer relationships Premier Protein originated in club and has organically grown
Slide 21: Attractive Asset-Light Platform
Attractive Asset-Light Platform… Manufacturing strategy rooted in an asset-light model with co-manufacturers and third-party logistics distribution centers Broad network of co-manufacturers allowing for a more flexible and focused approach to manufacturing Allows focus on core in-house capabilities,
Slide 22: Minimal Capital Expenditures Drives Free Cash Flow and Deleveraging
… With Minimal Capital Expenditures Drives Free Cash Flow Generation and Deleveraging Recurring revenue stream supported by growing market positions and attractive category trends Attractive Adjusted EBITDA margins Asset-light model results in minimal capex needs Modest working capital requirements
Slide 23: Strong Organic Growth and Attractive Financial Profile
% Growth Strong growth since IPO driven by… Cumulative Free Cash Flow (2)(3) Adjusted EBITDA (1)(2) FY2017 – FY2021 CAGR: +15% FY2017 – FY2021 CAGR: +18% $ in millions % Margin Annual FCF % Conversion (4) Continued increase in household penetration Broadened availability of BellRing’s products in al
Slide 24: Experienced and Talented Management Team
Name and title Year joined Prior industry experience Darcy Davenport President and CEO 2011 Paul Rode CFO 2013 Matt Mainer VP and Treasurer 2015 Doug Cornille Chief Growth Officer 2015 Robin Singh SVP Operations 2019 Michael Sparda VP of Sales 2017 Craig Rosenthal SVP and General Counsel 2019 Marc M
Slide 25: Growth Strategies
GROWTH STRATEGIES brands 25
Slide 26: Compelling Vision for Growth
Compelling Vision for Growth Increase Household Penetration Channel Expansion and Deeper Customer Relationships New Product Innovation International Expansion Value-Accretive Acquisitions 1 2 3 4 5
Slide 27: Increase Household Penetration
Notes: NielsenIQ Household Panel 52 weeks ended July 27, 2019 (penetration at IPO) and January 1, 2022. Defined as the percentage of the total U.S. households that purchased a specified item at least once during a specified time period. Increase Household Penetration Household Penetration (1)(2) 54%
Slide 28: Deeper Customer Relationships and Channel Expansion
Notes: NielsenIQ xAOC+C 26 weeks ended January 1, 2022. Deeper Customer Relationships and Channel Expansion Share of Shelf is the Biggest Opportunity eCommerce Remains a Large Opportunity eCommerce net sales +48% CAGR (FY2017 – FY2021) Best-in-class new product launches (Flavors and Platforms) and e
Slide 29: New Product Innovation Remains a Compelling Growth Opportunity
New Product Innovation Remains a Compelling Growth Opportunity Our Innovation Strategy Laser-Focused on Leading Category Growth R&D centers in the U.S. and Germany, including a robust RTD and powder lab in Emeryville, CA Created dedicated innovation and insights team Built in-house sensory facilitie
Slide 30: Multiple Strategic Routes for International Growth
Multiple Strategic Routes for International Growth 4 Leverage U.S. Global Customers Leverage Premier Protein shakes success story in U.S. and Canada for expansion Expansion priority: U.K./EU, Latin America, Asia Pacific Expand and Invest in Key Markets Invest in brand building through marketing and
Slide 31: Opportunistically Pursue Value Accretive Acquisitions
Opportunistically Pursue Value Accretive Acquisitions Operates in a Fragmented Market with Attractive Acquisition Opportunities Potential to be out of category, but still targeting high growth RTD Shakes Powders Bars New Adjacent Forms / Occasions New Consumer Need States Incremental High Growth Foo
Slide 32: Business & Financial Update
BUSINESS & FINANCIAL UPDATE brands 32
Slide 33: Fiscal Q1 2022 Business Highlights
Notes: NielsenIQ xAOC+C 13 weeks ended January 1, 2022 and management estimates of untracked channels for the 13 weeks ended January 2, 2022. NielsenIQ HH panel, 52 weeks ending January 1, 2022. Fiscal Q1 2022 Business Highlights Consumption continues to grow: Dollar consumption of Premier Protein R
Slide 34: Shake Supply Constraints and Our Response
Shake Supply Constraints and Our Response SUPPLY CONSTRAINTS OUR RESPONSE OUR PATH FORWARD We grew two years in one in FY2021 consuming all safety stock and available capacity Capacity expected to come on board in FY2021 and FY2022 was delayed due to COVID-19 Co-manufacturers have experienced signif
Slide 35: Plan to Increase Shake Co-Manufacturing Capacity
Plan to Increase Shake Co-Manufacturing Capacity Expansion of Capacity Expansion of Our Co-Manufacturing Network Existing shakes manufacturing facilities New facilities in 2022 New facilities in 2023 and beyond [Further expansion of 75% targeted in the medium-term] Aggressively securing new capacity
Slide 36: Fiscal Q1 2022 Financial Highlights
Notes: Please refer to BellRing’s Form 8-K filed on February 4, 2022, for additional detail. Please also refer to “Additional Information – Prospective Financial Information” in this presentation. Please see the Appendix for a reconciliation to the nearest GAAP figures. Fiscal Q1 2022 Financial High
Slide 37: Long-Term Targets
Long-Term Targets (1) Organic Net Sales Growth ~10% – 12% Adj. EBITDA Margin ~18% – 20% of Net Sales Note: 1. These are not projections; they are goals / targets and are forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of wh
Slide 38: Appendix
Appendix brands 38
Slide 39: Current and Pro Forma Organizational Structure
Notes: Indirectly held through BellRing. Current and Pro Forma Organizational Structure Current Structure Structure Pro Forma for the Transactions Post BellRing Brands LLC 71.5% economic interest Historical BellRing Stockholders 28.5% economic interest BellRing Class B voting control 100.0% economic
Slide 40: Premier Protein RTD Shakes Growing in Key Channels
Notes: NielsenIQ xAOC+C 13 and 52 weeks ended January 1, 2022 and management estimates of untracked channels for the 13 and 52 weeks ended January 2, 2022. Premier Protein RTD Shakes Growing in Key Channels Premier Protein RTD Shakes Sales Growth vs. Prior Year Channel 13 Weeks 52 Weeks Club +6.4% +
Slide 41: Dymatize Powder Experiencing Strong Growth In All Channels
Dymatize Powder Experiencing Strong Growth In All Channels Notes: NielsenIQ xAOC+C 13 and 52 weeks ended January 1, 2022 and management estimates of untracked channels for the 13 and 52 weeks ended January 2, 2022. Tracked and untracked consumption represents ~75% of total U.S. business. U.S. Dymati
Slide 42: Explanation and Reconciliation of Non-GAAP Measures
Explanation and Reconciliation of Non-GAAP Measures BellRing uses Adjusted EBITDA, a non-GAAP measure, in this presentation to supplement its financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA is not prepared in accordance with GAAP
Slide 43: Explanation of Non-GAAP Adjustments
Assets held for sale: BellRing has excluded adjustments recorded to adjust the carrying value of facilities and other assets classified as held for sale as such adjustments represent non-cash items and the amount and frequency of such adjustments are not consistent. Additionally, BellRing believes t
Slide 44: Adjusted EBITDA Reconciliation by Fiscal Year
($ in millions) Fiscal Year Ended Sep 30 Fiscal Year Ended Sep 30 Fiscal Year Ended Sep 30 Fiscal Year Ended Sep 30 Fiscal Year Ended Sep 30 2017 2018 2019 2020 2021 Net Earnings Available to Class A Common Stockholders $- $- $- $23.5 $27.6 Income tax expense 30.4 23.7 39.4 9.2 8.8 Interest expense,
Slide 45: Adjusted EBITDA Reconciliation LTM
($ in millions) Fiscal Year Ended Sep 30 Three Months Ended Dec 31 Three Months Ended Dec 31 Last Twelve Months Ended Dec 31 2021 2020 2021 2021 Net Earnings Available to Class A Common Stockholders $27.6 $7.8 $8.2 $28.0 Income tax expense 8.8 2.1 2.9 9.6 Interest expense, net 43.2 12.8 8.4 38.8 Dep
Slide 46: BellRing Free Cash Flow Reconciliation
BellRing Free Cash Flow Reconciliation ($ in millions) Fiscal Year Ended Sep 30 Fiscal Year Ended Sep 30 Fiscal Year Ended Sep 30 Fiscal Year Ended Sep 30 Fiscal Year Ended Sep 30 2017 2018 2019 2020 2021 Cash flow from operations $80.4 $141.2 $98.3 $97.2 $226.1 Capital expenditures (3.9) (5.0) (3.2
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