Goodfood Market Corp. · TSX:FOOD
Goodfood Market — Investor Presentation (April 2019)
26 slides from Goodfood Market's investor presentation, April 2019
Slide 1: Goodfood Market Corp. Investor Presentation
INVESTOR PRESENTATION GOODFOOD MARKET CORP. TSX: FOOD - April 2019
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS This presentation may include forward-looking statements regarding Goodfood, its business, operations or results. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled
Slide 3: Presenting Today
PRESENTING TODAY JONATHAN NEIL CUGGY PHILIPPE ADAM FERRARI Co-Founder, CPA, CA, CBV Co-Founder & CEO President & COO CFO • Graduate from McGill • Graduate with distinction in • 15 years of experience in University in Commerce, Investment Management corporate finance, Finance and from McGill Universi
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Significant • FOOD is the only public company poised to benefit from accelerating adoption of online grocery shopping in Canada Market • National Rollout in 2018: Goodfood is now delivering to Canadians coast to coast Opportunity (35M consumers, $130B market) • Leading direct t
Slide 5: Company Overview
COMPANY OVERVIEW Goodfood sources ingredients from farms and dedicated purveyors, to manufacture and deliver ready to cook meals ordered online through a weekly subscription at www.makegoodfood.ca Company is headquartered in Montréal, Canada with over 1,500 employees, 159,000(1) active subscribers a
Slide 6: Goodfood's Attractive Business Model
GOODFOOD’S ATTRACTIVE BUSINESS MODEL 1. 2. “JUST-IN-TIME” Meal order Goodfood and payment orders from its INVENTORY received from direct farming + subscribers relationships & suppliers MINIMAL FOOD WASTE + 3. 4. Fulfillment and Payment to OPERATING delivery to suppliers LEVERAGE subscribers 10 – 90
Slide 7: Significant Market Opportunity
SIGNIFICANT MARKET OPPORTUNITY
Slide 8: Goodfood's National Platform
GOODFOOD’S NATIONAL PLATFORM Leverage strong momentum and market-leading position to offer additional meal solutions to grow our addressable market WESTERN CA: ~11M POTENTIAL ● Meal kit Canadian industry expected to CUSTOMERS reach 1.0 - 1.5 million subscribers and approx. $3B in revenues within nex
Slide 9: $9B Market Opportunity
DIRECT TO CONSUMER HOME MEAL SOLUTIONS = $9B MARKET OPPORTUNITY Uniquely positioned to gain market share in several segments MARKET GROWTH FORECAST 100% 40% (CAGR 19-25) (1) $3,000 TOTAL ADDRESSABLE $2,000 MARKET (1) (In C$ millions) $1,400 $1,300 $1,150 $500 READY PREPARED SNACK TO COOK BREAKFAST D
Slide 10: Strong Market Position
STRONG MARKET POSITION
Slide 11: Competitive Landscape
COMPETITIVE LANDSCAPE WEBSITE MONTHLY Website Traffic COMPANY VISITS 1,200,000 1,000,000 1,050,000 Website monthly visits 800,000 600,000 550,000 400,000 190,000 200,000 - 150,000 Goodfood Chef's Plate Miss Fresh HelloFresh Canada Source: Similar Web, January 2019 11
Slide 12: Compelling Financial Performance
COMPELLING FINANCIAL PERFORMANCE
Slide 13: Strong Consistent Subscriber Growth
STRONG CONSISTENT SUBSCRIBER GROWTH Active Subscribers(1) Avg. Q-0-Q Growth = 40% 159K 89K 126K 89K 76K 61K 31K 45K 31K 23K 13K 1K 3K FQ2-17 FQ3-17 FQ4-17 FQ1-18 FQ2-18 FQ3-18 FQ4-18 FQ1-19 FQ2-19 FY2015 FY2016 FY2017 FY2018 QUARTERLY ANNUAL • Focusing on subscriber growth and market share gains • C
Slide 14: Strong Consistent Revenue Growth
STRONG CONSISTENT REVENUE GROWTH Focusing on subscriber growth and market share gains = one of the fastest growing companies on the TSX(1) Avg. Q-0-Q Growth = 39% $47M $222M $37M $37M $136M REVENUE $26M $26M $30M & GMS(2) $19M $22M $21M $84M $110M $13M $16M $71M $8M $9M $11M $23M $4M $3M $6M $7M $20
Slide 15: Amplifying Profitability Path Through Scale & Operating Leverage
AMPLIFYING PROFITABILITY PATH THROUGH SCALE & OPERATING LEVERAGE YTD CFO = $1.4M $1.8M $1.8M $46.3M 36.4% 35.7% 33.0% 33.5% 36.8% $24.5M $25.3M $24.0M $1.0M 37.7% 37.8% 33.0% 33.6% $15.2M 31.4% ($0.4M) 20.8% 18.2% 20.5% 21.9% 20.9% ($1.1M) FQ2-18 FQ3-18 FQ4-18 FQ1-19 FQ2-19 FQ2-18 FQ3-18 FQ4-18 FQ1-
Slide 16: Goodfood's Growth Flywheel
GOODFOOD‘S GROWTH FLYWHEEL Executing on our strategy, which delays short term earnings, in order to invest in market share, scale and density Increase Grow Value Subscribers Proposition Base and to Members Revenues Maximizing Long-Term Shareholder Value Increase Gross Density and Margin Economies Ex
Slide 17: Building a Highly Profitable Business Model
BUILDING A HIGHLY PROFITABLE BUSINESS MODEL CURRENT COST PROFITABILITY STRUCTURE AT SCALE 75%+ automation Adj. Gross Adj. Gross (positive payback from capital investment in production) ~50% automation Margin Margin + 38% 45%+ Economies of scale (shipping, food cost, overhead) Reduced Mostly marketin
Slide 18: Automation Investment Track Record
AUTOMATION INVESTMENT TRACK RECORD Past investments have decreased labour costs by 40% Additional automation will continue to decrease labour cost by 30% 110 100 Measured in #Minutes per Order 90 Continuing to invest in automation is one of 80 Goodfood’s top priorities for FY2019 70 Sep-17: Opening
Slide 19: Investment Highlights
INVESTMENT HIGHLIGHTS Significant • FOOD is the only public company poised to benefit from accelerating adoption of online grocery shopping in Canada Market • National Rollout in 2018: Goodfood is now delivering to Canadians coast to coast Opportunity (35M consumers, $130B market) • Leading direct t
Slide 20: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS
Slide 21: Board of Directors
BOARD OF DIRECTORS HAMNETT HILL DONALD OLDS GUY LEBLANC Director Director Director • Serial entrepreneur with over • President and CEO of the • Chartered Professional 20 years of high tech NEOMED Institute since Accountant leadership January 2017 • Worked at PwC Canada for • Co-founder and chairman
Slide 22: Appendices
APPENDICES
Slide 23: Capital Markets Information
CAPITAL MARKETS INFORMATION TSX: TICKER ANALYST COVERAGE FOOD GMP Securities 52-week-High --------------------------------- $3.98 Martin Landry 514-288-4016 52-week-Low --------------------------------- $2.10 mlandry@gmpsecurities.com Share Price (Mar 27, 2019) ------------------- $3.45 Target: $6.0
Slide 24: Comparable Companies
COMPARABLE COMPANIES In millions except share price Price Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EV / Revenue to Growth Company Name 11-Mar-19 Cap. Value 2019E 2020E 2019E 2020E 2018A/E-2019E 2019E-2020E 2019E 2020E Meal Kits HelloFresh €9.28 €1,590 €1,391 0.9x 0.7x neg 25.7x 27.5
Slide 25: Meal Kit Superior Value Proposition
MEAL KIT SUPERIOR VALUE PROPOSITION Offers consumers a quick and easy alternative to grocery shopping / meal preparation 25
Slide 26: Distribution Capacity Update
CAPACITY UPDATE DISTRIBUTION WESTERN EASTERN CANADA CANADA - Launched in Q3-2018 ahead - Successfully transferred operations of schedule and on budget into a new 83,000 sq. ft. distribution facility - 7-year lease for a 43,000 sq. ft. distribution facility - 72,000 sq. ft. expansion announced in Sep