Slide 1: Investor Presentation
Investor Presentation June 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 4
Slide 5: Company Profile
Company Profile 2004 2022 Revenue $0.2 billion $6.0 billion Adjusted EBITDA $14.1 million $504.2 million Business platforms 2 6 Geographic reach Western Canada North America Operating facilities 8 115 Employees 900 12,600 Free cash flow per share $0.78 $6.41 Annualized dividend rate $ nil $2.80 / sh
Slide 6: Our Vision
Our Vision To invest in specialty food businesses featuring: Entrepreneurial cultures Great tasting foods made with wholesome ingredients A passion for both their local communities and what is best for our planet Staying the Course Through Adversity 6
Slide 7: Share Price
Share Price Closing Share Accumulated Date Price Dividends Per Share Dec 31, 2003 $8.60 Nil Jun 23, 2023 $100.71 $28.32 4500.00 7.00 2003 to Jun 23, 2023 CAGR = 19.6% 4000.00 6.00 3500.00 5.00 Index 3000.00 2500.00 4.00 2000.00 3.00 1500.00 2.00 1000.00 1.00 500.00 0.00 0.00 PBH share value (LHS) S&
Slide 8: Premium Brands
Premium Brands To provide talented proven entrepreneurs with the resources they need to transform their good food businesses into bigger great food businesses ENTREPRENEURSHIP with ACCOUNTABILITY Staying the Course Through Adversity 8
Slide 9: Core Business Strategies
Core Business Strategies • Emerging trends • Niche product categories 1. Targeted segm ents of the food industry • Leading regional brands focused on authenticity and differentiation • Unique distribution solutions • Significant organic grow th opportunities • Dedicated to maintaining an entrepreneu
Slide 10: Platform Progress
Platform Progress (in millions except percentages) 2022 Revenue 2022 2022 Business group Overview 2004 Revenue Including Revenue Revenue % Clearwater Formed in 1997 / 1998 with the Protein acquisitions of Grimm’s Fine Foods, 125.5 2,289.2 38.0% 2,289.2 McSweeney’s and Harvest Meats Formed in 1999 wi
Slide 11: Platform Businesses
Platform Businesses Seafood Distribution Protein Sandw ich Bakery Culinary Canadian Seafood Group Centennial Group Oberto Group Sandw ich Group PB Bakery Group Kettle Group • Medex Group • Worldsource • Hempler’s • Quality Fast Foods • Stuyver’s • Global Gourmet • Ocean Miracle • Eleven • Isernio’s
Slide 12: Premium Brands Eco-system
Premium Brands Eco-system Financial and business analysis Access to capital Disciplined capital allocation Real estate investment fund Global and strategic procurement, Buying power Logistics Internal selling opportunities Helping small good specialty food businesses Tax resources Peer network becom
Slide 13: Strategically Located Manufacturing Network
Strategically Located Manufacturing Network BC AB SK QC MB ON NB ME NS WA MN MA PA OH NV CA AZ MS Staying the Course Through Adversity 13
Slide 14: Diversification – Channels and Customers
Diversification – Channels and Customers SF (61.9%) PFD (38.1%) Foodservice Cha i ns a nd large Others di s tributors forma t retailers Customer % Sales ISR 0.8% 2.8% 9.2% 6.7% Tra ding Customer A 13.6% 2.6% Customer B 13.0% Foodservice operators Customer C 5.4% Foodservice operators 11.2% Customer
Slide 15: Diversification – Geographically
Diversification – Geographically SF (61.9%) PFD (38.1%) SF (56.2%) PFD including Clearwater (43.8%) Export, 0.2% Export, 0.2% United States , Canada, 26.5% United States, Canada, 28.4% 32.7% 36.0% United States, United States, 8.7% 8.0% Export, 1.7% Export, 8.6% Canada, 25.7% Canada, 23.3% Staying t
Slide 16: Diversification – Products and Procured Commodities
Diversification – Products and Procured Commodities SF (61.9%) PFD (38.1%) Baked goods, 1.7% Others, 1.3% Sandwiches, 19.1% Seafood, 20.2% Commodity % Sales Seafood 19.5% Beef 14.7% Pork 10.2% Poultry 6.5% Protein, 16.0% Bread 2.9% Eggs 2.7% Turkey 2.2% Others, 1.9% Cheese 1.7% Protein, 39.8% Stayin
Slide 17: Diversification – Procurement Sources
Diversification – Procurement Sources PB GLOBAL PROCUREMENT TEAMS • Buyers travel the globe searching for new supply opportunities • Consolidated buying power used to source the highest quality competitively price raw materials • On-site experience with suppliers and their operations • A source of n
Slide 18: Organic Growth Strategies
Organic Growth Strategies • On trend product categories • Emerging trends • History of demand exceeding supply • “White space” • U.S. roll out strategy • Leading innovation in high growth categories • Differentiation • Brand development • Green shoots in new export markets Staying the Course Through
Slide 19: Major Organic Growth Initiatives
Major Organic Growth Initiatives Seafood Distribution Protein Sandwich Bakery Culinary Processed lobster and crab Geographical expansion of Branded meat snack sticks Leveraging IP and North Naturally fermented / clean Product solution provider for initiatives in foodservice and trading operations in
Slide 20: Acquisitions Growth Strategy
Acquisitions Growth Strategy Considerations Resources • Management team strength • Comprehensive in-house financial modeling, due diligence and • Cultural fit – core entrepreneurial focused values transaction closing capabilities • Differentiation of products and / or services • Access to a range of
Slide 21: Acquisitions Activity
Acquisitions Activity 2005 to 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2007 $127.7m $16.7m $3.1m $67.3m $121.8m $63.7m $8.1m $51.9m $244.0m $246.2m $753.0m $118.6m $168.2m $858.0m $125.0m Harlan B&C Foods SJ Fine Maximum Piller’s Freybe Ocean Expresco C&C Raybern Oberto
Slide 22: 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 23: A Leader in Environmental, Social, and Governance
A Leader in Environmental, Social, and Governance Nutritious Food • Natural ingredients, sustainable supply chains, animal welfare standards, responsible labelling, excellence in food safety People • Employee safety-first culture, prioritizing mental health and well-being, embracing diversity and wo
Slide 24: Staying the Course Through Adversity
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Slide 27: Staying the Course Through Adversity
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Slide 28: Staying the Course Through Adversity
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Slide 29: • Specialty Dry Cured – • Meat Snacks
• Specialty Dry Cured – • Meat Snacks Bulk & Sliced 29 Staying the Course Through Adversity 29
Slide 30: Staying the Course Through Adversity
30 Staying the Course Through Adversity 30
Slide 31: Financial Update
Financial Update Staying the Course Through Adversity 31
Slide 32: 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 33: Organic Volume Growth Rate
Organic Volume Growth Rate Long-term targeted organic volume grow th rate range of 4% - 6% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% -4.0% -8.0% PBH Total Staying the Course Through Adversity 33
Slide 34: 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 34
Slide 35: 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 36: Quarter Adjusted EBITDA Margin Performance
Quarter Adjusted EBITDA Margin Performance 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Margin Target Margin Staying the Course Through Adversity 36
Slide 37: 2023 Major EBITDA Margin Drivers
2023 Major EBITDA Margin Drivers Seafood Distribution Protein Sandwich Bakery Culinary Positive Factors • Sales leveraging – • Sales mix • Commodity cost • Sales leveraging – • Sales leveraging – • Commodity cost production capacity • Improved pricing stabilization production capacity production cap
Slide 38: Margin Recovery
Margin Recovery (millions of dollars except percentages) Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Selling price increases 122.6 134.4 89.5 61.9 42.6 Raw material, wage and freight cost inflation (124.5) (130.9) (77.5) (45.8) (24.7) Margin dollar impact (1.9) 3.5 12.0 16.1 17.9 Margin impact - 2.6% 13
Slide 39: 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 40: Adjusted Earnings and EPS
Adjusted Earnings and EPS (millions of dollars except per share amounts) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Adj earnings 19.6 24.5 24.9 26.6 53.2 80.5 99.2 117.6 118.4 118.5 194.8 215.0 Adj EPS 1.04 1.19 1.16 1.21 2.18 2.80 3.33 3.62 3.31 3.05 4.48 4.82 Reflects IFRS-16 $6.0
Slide 41: 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 3.0 475.0 420.0 2.5 320.0 2.0 220.0 1.5 120.0 1.0 20.0 0.5 Available Credit (LHS) Total Debt to
Slide 42: 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 43: Capital Allocations – Project Capex
Capital Allocations – Project Capex (millions of dollars except percentages) Investment To- Investment Group Q1-2023 Expected IRR Date Expected Viandex facility expansion Distribution 0.9 1.7 9.5 Hempler’s Ferndale facility expansion Protein US16.1 US47.4 US84.1 Piller’s Wismer facility replacement
Slide 44: 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 45: 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 46: Questions
Questions Staying the Course Through Adversity 46