Slide 1: Fourth Quarter 2022 Conference Call
SANDWICH La boulangerie chicken Fourth Quarter 2022 Conference Call March 16, 2023
Slide 2: Disclaimer
Disclaimer This presentation is not intended to form the basis of any investment decision and should not be considered as a recommendation by Premium Brands Holdings Corporation (the “Company”) or any other person in relation to the Company’s business or the securities of the Company. This presentat
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward looking statements with respect to the Company, including, without limitation, statements regarding its business operations, strategy and financial performance and condition, acquisition opportunities, capital projects and plans, outlook
Slide 4: Today's Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer Staying the Course Through Adversity 3
Slide 5: Key Messages
Key Messages • Record fourth quarter results despite headwinds • Sales up 21.5% to $1.63 billion • Adjusted EBITDA up 20.3% or $23.0 million • Adjusted EPS flat at $1.19 per share • Record 2022 fiscal year results • Sales up 22.3% to $6.0 billion • Adjusted EBITDA up 17.1% or $73.5 million • Adjuste
Slide 6: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Agreed to terms and in Identified future Past discussions and In negotiations In discussions due diligence opportunity currently on hold Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales
Slide 7: Q4-2022 Financial Update
Q4-2022 Financial Update Staying the Course Through Adversity 6
Slide 8: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 Revenue 843.9 959.1 1,056.2 1,345.4 1,634.8 OGR 4.6% 8.6% 5.5% 16.1% 12.3% 1,800.0 50.0% Drivers 1,600.0 Long-term targeted organic 45.0% • 53rd week – $80.0m growth rate (6% - 8%) 1,400.0 40.0% • Selling pri
Slide 9: Organic Volume Growth Rate
Organic Volume Growth Rate Long-term targeted organic volume growth rate range of 4% - 6% 20.0% Challenges impacting the Company’s Q4-2022 OVGR: 16.0% • Q4 is generally a lower growth quarter due to seasonal factors 12.0% • Lower retail sales resulting from consumer spending 8.0% shifting to foodser
Slide 10: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023P Revenue 535.2 794.3 960.1 1,043.0 1,221.8 1,484.5 1,857.5 2,198.3 3,025.8 3,649.4 4,068.9 4,931.7 6,029.8 6,500.0 OGR 2.6% 6.0% 4.8% 4.9% 13.5% 18.0% 6.1% 4.7% 6.7% 5.9% 7.6%
Slide 11: Weekly Sales Trend
Weekly Sales Trend 140,000 120,000 100,000 80,000 $000's 60,000 40,000 20,000 - 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Week # 2023 PBH Total 2022 PBH Total 2021 PBH Total 2020 PBH Total 2019 PBH Total Staying the Course Through Adversity 10
Slide 12: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 EBITDA 71.0 75.1 87.7 113.4 136.4 Margin 8.4% 7.8% 8.3% 8.4% 8.3% Positive factors 160.0 12.0% • Selling price increases net of cost inflation Reflects IFRS-16 • Organic sales growth 140.0 11.0% • P
Slide 13: Margin Recovery
Margin Recovery (millions of dollars except percentages) Q1-2022 Q2-2022 Q3-2022 Q4-2022 2022 Selling price increases 122.6 134.4 89.5 61.9 408.4 Raw material, wage and freight cost inflation (124.5) (130.9) (77.5) (45.8) (378.7) Margin dollar impact (1.9) 3.5 12.0 16.1 29.7 Margin impact - 2.6% 13.
Slide 14: Quarter Adjusted EBITDA Margin Performance
Quarter Adjusted EBITDA Margin Performance 10.0% Factors impacting the Company’s Q4- 2022 EBITDA margin relative to 10% 8.0% target: • Unutilized production capacity 6.0% • Q4 is generally a lower margin quarter as a result of seasonal 4.0% factors • Retailer selling price increase 2.0% notice perio
Slide 15: Recent Capacity Expansions
Recent Capacity Expansions (millions of dollars) Unutilized Sales Platform Project Products Capacity in 2022 • CFG Ontario facility • Seafood and value-added protein Seafood 50 • Ready Saco plant • Processed lobster • Piller’s Brantford plant expansion • Meat snacks and dry cured Protein 30 • Oberto
Slide 16: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023P EBITDA 42.0 54.9 66.8 69.3 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 504.2 600.0 Margin 7.8% 6.9% 7.0% 6.6% 6.4% 7.5% 8.3% 8.7% 9.3% 8.4% 7.7% 8.7% 8.4% 9.2% 700.0 12.0%
Slide 17: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) 2019 2020 2021 2022 Adj earnings 29.5 35.3 52.2 52.9 Adj EPS 0.79 0.86 1.19 1.19 Major positive factors: 70.0 • EBITDA growth – $22.9m $1.90 60.0 • Decreased income taxes – $16.9m $1.70 50.0 Major negative factors:
Slide 18: Inventory Analysis
Inventory Analysis (millions of dollars unless noted otherwise) Unplanned Unplanned Q4-2022 Q4-2022P Q4-2022 Opportunistic New Sales Variance Adjusted At Q3 Buys Builds Seafood Group 114.3 - (16.8) 97.5 84.2 13.3 Distribution Group 153.4 (6.4) (1.3) 145.7 145.1 0.6 Protein Group 354.5 (19.6) (5.5) 3
Slide 19: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 Top end of targeted total debt to EBITDA 920.0 ratio 5.0 Top end of targeted total senior debt to 820.0 EBITDA ratio 4.5 720.0 4.0 620.0 3.5 520.0 3.0 420.0 2.5 320.0 2.0 220.0 1.5 120.0 1.0 20.0 0.5 Available Credit (LHS) Total Debt to EBITD
Slide 20: Free Cash Flow
Free Cash Flow (millions of dollars except per share amounts and percentages) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023P Payout ratio 106.4% 77.7% 69.6% 70.6% 65.2% 59.4% 53.0% 53.9% 48.4% 43.2% 36.6% 38.5% 38.1% 43.1% 48.7% 42.3% 43.8% Dividend per sh
Slide 21: Capital Allocations – Project Capex
Capital Allocations – Project Capex (millions of dollars except percentages) Investment Investment Expected Expected Group Q4-2022 2022 To-Date Expected Completion IRR Premier facility expansion Distribution 6.8 9.7 9.7 9.7 Completed Viandex facility expansion Distribution 0.5 0.8 0.8 9.1 Q2-2023 Pi
Slide 22: 5-Year Plan
5-Year Plan (millions of dollars except percentages) 5 Year 5 Year 5 Year Target Base Year Base Year Base Year Targeted Targeted Year Sales EBITDA Sales EBITDA 2010 2015 535 42 1,000 2014 2019 1,222 78 2,000 2018 2023 3,026 251 6,000 600 2022 2027 6,030 504 10,000 1,000 2023P – no new acquisitions 6
Slide 23: 5-Year Major Project Capex
5-Year Major Project Capex Platform Major Projects Products Distribution • Viandex Quebec City plant expansion • Value-added seafood and protein • Piller’s Waterloo project • Dry cured and European deli meats • Hempler’s Ferndale plant expansion • Meat snacks and premium processed meats • Oberto Ken
Slide 24: Stuyver's Bakery
Stuyver’s Bakery Langley, BC Staying the Course Through Adversity 23
Slide 25: Premier Meats
Premier Meats Vaudreuil-Dorion, QC Staying the Course Through Adversity 24
Slide 26: HQ Fine Foods
HQ Fine Foods Edmonton, AB Staying the Course Through Adversity 25
Slide 27: Hempler Foods Group
Hempler Foods Group Ferndale, WA Staying the Course Through Adversity 26
Slide 28: SK Food Group
SK Food Group Phoenix, AZ Staying the Course Through Adversity 27
Slide 29: Staying the Course Through Adversity
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Slide 33: • Specialty Dry Cured – Bulk & Sliced • Meat Snacks
• Specialty Dry Cured – • Meat Snacks Bulk & Sliced 32 Staying the Course Through Adversity 32
Slide 34: Staying the Course Through Adversity
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Slide 36: Questions?
Questions? Staying the Course Through Adversity 35