Post Holdings, Inc. · NYSE:POST
Post — Investor Presentation (March 2024)
35 slides from Post's investor presentation, Mar 8, 2024
Slide 1: Investor Presentation
Investor Presentation March 8, 2024
Slide 2: Important Notice Regarding the Information Contained in this Presentation
Important Notice Regarding the Information Contained in this Presentation The information contained in this presentation, unless otherwise noted, is as of February 1, 2024 and is intended to facilitate discussions with investors and potential investors of Post Holdings, Inc. (“Post,” “Post Holdings,
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Certain matters discussed in this presentation and any discussions with potential • Post’s ability to hire and retain talented personnel, leaves of absence of key investors are forward-looking statements within the meaning of the Private Secu
Slide 4: Cautionary Statement Regarding Forward-Looking Statements (Cont'd)
Cautionary Statement Regarding Forward-Looking Statements (Cont’d) (CONTINUED FROM PRIOR PAGE): • impairment in the carrying value of goodwill or other intangibles; You should not rely upon forward-looking statements as predictions of future events. Although Post believes that the expectations refle
Slide 5: Additional Information
Additional Information Non-GAAP Financial Measures Post uses Adjusted EBITDA, free cash flow, net leverage and Post’s illustrative multiple, In this presentation, Post provides its Adjusted EBITDA guidance for fiscal year 2024, its all of which are non-GAAP measures, in this presentation to suppleme
Slide 6: Additional Information (Cont'd)
Additional Information (Cont’d) Prospective Financial Information Food acquisition, Post’s illustrative value (including illustrative Adjusted EBITDA) in future fiscal years, Post’s illustrative net debt reduction, Post’s expected rates of Adjusted EBITDA growth, Post’s pro forma net leverage, Post’
Slide 7: Additional Information (Cont'd)
Additional Information (Cont’d) Market and Industry Data This presentation includes industry and trade association data, forecasts and are under license by, Post or its consolidated subsidiaries. Other logos, trademarks, information that were prepared based, in part, upon data, forecasts and informa
Slide 8: A Holding Company of Consumer Operating Companies
A Holding Company of Consumer Operating Companies • Post Holdings is a consumer packaged goods/food holding company • Currently, Post owns five platforms: four consolidated and one separately reported Consolidated Non-Consolidated • Post Consumer Brands • 8th Avenue • Weetabix • Foodservice • Refrig
Slide 9: Post Holdings: Current Businesses
Post Holdings: Current Businesses Consolidated Non-Consolidated (1) REFRIGERATED POST CONSUMER BRANDS WEETABIX FOODSERVICE RETAIL North American ready-to-eat (“RTE”) cereal, pet Primarily United Primarily Primarily side dish, Nut butters, healthy food and peanut butter Kingdom (“U.K.”) RTE egg and p
Slide 10: How Post Differs From Other CPG Companies
How Post Differs From Other CPG Companies • Post does not pay a dividend, and it generally operates at higher leverage levels • Maintaining higher leverage avoids excess equity. Not paying a dividend enables generally higher leverage by forgoing fixed commitments for its cash flow • Post returns cap
Slide 11: BellRing Brands: A Case Study
BellRing Brands: A Case Study • From September 2013 through October 2014, Post acquired Premier Protein, Dymatize and PowerBar for ~$700mm. These brands combined to form Post’s historical Active Nutrition segment and eventually became BellRing (NYSE: BRBR). • From October 2014 through October 2019,
Slide 12: 8th Avenue Food & Provisions: A Case Study
8th Avenue Food & Provisions: A Case Study • From 2012 through 2018, Post acquired nut butter, healthy snacks (granola and dried fruit and nut) and pasta businesses for ~$950mm, which combined to form Post’s historical Private Brands segment and ultimately became 8th Avenue. • From 2012 through 2018
Slide 13: West Jefferson Shake Manufacturing Facility: A Case Study
West Jefferson Shake Manufacturing Facility: A Case Study • A byproduct of operating the Active Nutrition segment (and subsequently owning a majority interest in BellRing) was gaining an understanding of the economics of aseptic shake manufacturing. • Michael Foods utilizes aseptic manufacturing for
Slide 14: Growth Algorithm
Growth Algorithm (Prost) POST HOLDINGS, INC.
Slide 15: Summary
Summary • Post’s capital allocation is grounded in a baseline performance that generates low teens share price CAGR • 3-4% Adjusted EBITDA growth • Free cash flow (“FCF”) used to retire debt • Against this baseline, management considers allocation toward: • M&A • Share buybacks • All of the followin
Slide 16: Illustrative Value – Next Five Years
Illustrative Value – Next Five Years Illustrative Enterprise Value ($ in billions) Equity Value Net Debt $15.4 * $12.7(1) $2.6 $6.2 $12.9 $6.5 *Numbers may not foot due to rounding Post Illustrative Post in Fiscal 2024 in 5 Years ($ in millions, except share price and illustrative multiple) Enterpri
Slide 17: 5 Year Algorithm
5 Year Algorithm Target Adjusted EBITDA Segment Rationale Growth • Stable revenues with cost reduction Post Consumer 3-4% provided by recent M&A Brands • Network optimization • Margin expansion via mix moving to greater value add Foodservice 3-4% • Volume growth mean reversion • Returns on capital a
Slide 18: Free Cash Flow Generation
Free Cash Flow Generation Key Cash Flow Characteristics Illustrative Free Cash Flow Calculation ($ in millions) • Recurring revenue stream Post Estimated Adjusted EBITDA (1)(2) $ 1,315 Pet Food Run Rate Synergies(3) supported by strong or growing 30 Post Consolidated Estimated Adjusted EBITDA $ 1,34
Slide 19: Debt Maturity Ladder: 100% Fixed Rate with No Maturities until 2027
Debt Maturity Ladder 100% Fixed Rate with No Maturities until 2027 Debt Maturities by Calendar Year(1) ($ in millions) 2.50% Convertible Senior Notes due Aug. 2027 Cash generation enables deleveraging below 2x, offset by 5.625% Senior Notes due Jan. 2028 capital allocation in favor of share buybacks
Slide 20: Business Overviews
Business Overviews (Prost) POST HOLDINGS, INC.
Slide 21: Post Consumer Brands ("PCB"): Overview
Post Consumer Brands (“PCB”): Overview • PCB is a scale level platform for ambient food products • RTE cereal • Peanut butter • Pet food • PCB is the combination of: • Post Foods – separated from Ralcorp in 2012 • MOM Brands – acquired in 2015 • Weetabix North America – acquired in 2017 • Treehouse
Slide 22: Post Consumer Brands: North America RTE Cereal
Post Consumer Brands: North America RTE Cereal • Strong #3 in category(1) • Branded dollar market share of 20%(1) • Branded volume market share of 23%(1) • #1 in the value segment(2) • #1 in the bag segment, with dollar and volume market share of ~75%(2) • #1 provider of private label RTE cereal(3)
Slide 23: Post Consumer Brands: Peanut Butter
Post Consumer Brands: Peanut Butter • Peter Pan is the #2 peanut butter brand in core Southeast markets(1) • Core Southeast markets dollar market share of 15.0%(1) • Key competitor brands • Jif • Skippy • Justin’s • Private label • Category barriers to entry • Complex supply chain practices around f
Slide 24: Post Consumer Brands: Pet Food
Post Consumer Brands: Pet Food • #3 branded U.S. pet food manufacturer by volume(1) • Leading dog and cat food brands in the value, mainstream and entry premium sub-categories • Large, growing category supported by secular consumer trends • Key competitors • Nestlé • Mars • Key brands • Rachael Ray
Slide 25: Weetabix: Overview
Weetabix: Overview • Weetabix, like PCB, is a scale ambient platform with a predominantly U.K. and European focus • Weetabix was acquired in 2017. In 2022, it added UFIT, a protein-based beverage provider • In the U.K. RTE cereal category, the flagship Weetabix brand holds the #1 brand position(1) a
Slide 26: Foodservice: Overview
Foodservice: Overview • In 2014, Post acquired Michael Foods, one of the largest providers of value-added eggs and potatoes for foodservice and retail channels • When Post acquired Bob Evans Farms in 2018, it created two pure channel plays with Michael Foods in foodservice and Bob Evans managing ret
Slide 27: Foodservice: Value-Added Egg Products
Foodservice: Value-Added Egg Products • Foodservice historical category growth rate of ~4%(1) • #1 foodservice provider with greater than 50% market share(1) • Key competitors • Cargill • Deb El Food Products • Category barriers to entry • Highly complex and costly supply chain • Cost leadership • T
Slide 28: Foodservice: Value-Added Potatoes
Foodservice: Value-Added Potatoes • Foodservice historical category growth rate of ~4%(1) • #1 foodservice provider with ~75% market share(1) • Key competitor • Reser’s • Category barriers to entry • Costly supply chain • Cost leadership • Trade relationships 1. Management estimate. Does not reflect
Slide 29: Foodservice: Growth
Foodservice: Growth • Meaningful growth opportunities • Conversion ‘up the value chain’ to higher value-add, higher margin products • Volume growth through increase in away from home consumption • Expansion into other dayparts • Attractive value-proposition to foodservice customers • Diminished food
Slide 30: Foodservice: Value-Added Egg Growth Margin Opportunity
Foodservice: Value-Added Egg Growth Margin Opportunity • Conversion of shell egg users to value-added products, up the value chain 15-20% • Offers compelling labor, convenience and food safety benefits to foodservice Precooked Portion of customers Pasteurized Foodservice • Michael Foods has a proven
Slide 31: Refrigerated Retail: Overview
Refrigerated Retail: Overview • Post acquired Bob Evans Farms in 2018 and created a pure play retail business • Refrigerated Retail is anchored by attractive dinner side dish products. Retail combination added breakfast side dishes – Bob Evans and Simply Potatoes. Side dishes have grown at 6%(1). Bo
Slide 32: Refrigerated Retail: Sides
Refrigerated Retail: Sides • Attractive product set across retail refrigerated potato and pasta side dishes, egg products and breakfast sausage • Brands: Bob Evans, Simply Potatoes, Egg Beaters, Crystal Farms • Leader in refrigerated side dishes(1) • Meaningful growth opportunity through increasing
Slide 33: Refrigerated Retail: Liquid Egg Products
Refrigerated Retail: Liquid Egg Products • #1 position, with 37% market share(1) • Key competitor • Private label • Category barriers to entry • Highly complex and costly supply chain • Cost leadership • Trade relationships • Strong brand recognition 1. Volume per IRI; market share last 52 weeks end
Slide 34: Refrigerated Retail: Quality of Mix Improves
Refrigerated Retail: Quality of Mix Improves Volume by Product at Acquisition (2Q’18) Volume by Product Current (1Q’24) Other Other 3% 1% Sausage Sausage 11% 13% Cheese Cheese 11% 16% Side dishes 43% Egg Side dishes 59% 17% Egg 27% Anticipated volume growth rates: (1) ‒ Side dishes: 5% ‒ Egg: 1% ‒ C
Slide 35: POST HOLDINGS, INC.
POST HOLDINGS, INC.