Slide 1: First Quarter 2022 Conference Call
First Quarter 2022 Conference Call May 6, 2022
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, proposed acquisitions, capital projects and plans, outlook and
Slide 4: Today's Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer Extraordinary Times Extraordinary Team 3
Slide 5: Key Messages
Key Messages • Record first quarter results despite ongoing headwinds • Sales up 23.9% • Adjusted EBITDA up 16.1% • Adjusted EPS up 22.2% • Selling price increases of $122.6 million in the quarter – $138.8 million on a full quarter basis with still more to come • Clearwater continues to perform well
Slide 6: Piller's Brantford, ON Facility
Piller’s Brantford, ON Facility OVERVIEW FACILITY Piller’s Brantford, ON production facility is one of its three operating facilities. It produces a variety of meat snack products, including meat sticks, Salami Whips and snack cups, all under the Piller’s brand name The facility is 127,000 sf in
Slide 7: Hempler's Ferndale, WA Facility
Hempler’s Ferndale, WA Facility OVERVIEW FACILITY The Hempler’s facility is one of the Specialty Food platform’s 42 operating facilities. It produces bacon, smoked sausages, hams and meat sticks, all under the Hempler's brand name and is SQF certified. The facility is 52,000 sf and is currently
Slide 8: Concord Saint-Eustache, QC Facility
Concord Saint-Eustache, QC Facility OVERVIEW FACILITY Concord’s 75,000 sf Saint-Eustace, QC facility produces fully cooked fire grilled and marinated skewers and has state-of-the-art slicing and shredding capabilities. The manufacturing and cold storage facility has a 20 million pound annual pro
Slide 9: Expresco Montreal, QC Facility
Expresco Montreal, QC Facility OVERVIEW FACILITY Expresco Foods is a manufacturer of fully cooked grilled protein products, frozen and fresh, for foodservice, retail and deli throughout North America The 75,000 sf facility has integrated logistics and warehousing that offers capacity, flexibilit
Slide 10: SK Food Group's Phoenix, AZ Facility
SK Food Group’s Phoenix, AZ Facility OVERVIEW FACILITY SK Food Group’s Phoenix, AZ production facility is one of the Sandwich platform’s 8 operating facilities. It produces a variety of frozen sandwiches and wraps The facility is 213,000 sf and uses state-of-the-art assembly and packaging techno
Slide 11: C&C / Frandon Montreal, QC Facility
C&C / Frandon Montreal, QC Facility OVERVIEW FACILITY The C&C / Frandon shared facility is one of the Distribution platform’s 27 operating facilities. It processes and distributes a variety of protein and seafood products for the Quebec, and to a lesser extent, the Ontario markets The facility i
Slide 12: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales # Sales # Sales Seafood - - 3 990 9 494 4 204 4 345 20 2,033 Distribution - - 6 283 3 1,050 1 882 4 53 14 2,268 Protein 1 89 4 172 13 1,
Slide 13: Q1-2022 Financial Update
Q1-2022 Financial Update May 2022 Extraordinary Times Extraordinary Team 12
Slide 14: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 1,400.0 50.0% Long-term targeted organic 1,251.2 volume growth rate (4% - 6%) 1,200.0 40.0% 1,009.8 30.0% Positive factors 1,000.0 935.0 • Selling price inflation – $122.6m 776.6 20.0% 800.0 • Acquisitions – $93.1m 10.0% • Organic vo
Slide 15: Growth Rates
Growth Rates Factors impacting the Company’s Q1-2022 organic volume growth rate: Temporary • Reduced featuring of OVGR of 6.5% after branded products in the retail Organic Volume Growth Rate normalizing for impact of channel to mitigate the supply chain / labour impact of cost inflation while 20.0%
Slide 16: Major Organic Growth Drivers
Major Organic Growth Drivers Seafood Distribution Protein Sandwich Bakery Culinary Processed lobster and crab Non-distributive foodservice Branded meat snack sticks Leveraging IP and North Branded naturally fermented Product solution provider for initiatives in foodservice and sales of differentiate
Slide 17: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 to 2021 CAGR is 22.4% 70.0% 6,000.0 Long-term targeted growth 5,725.0 rate (6% - 8%) Midpoint of 2022 guidance of $5,600m to $5,850m 60.0% 4,931.7 5,000.0 50.0% 4,068.9 4,000.0 3,649.4 40.0% 3,025.8 3,000.0 30.0% 1,857.5 2,198.3 1,484.5 2,0
Slide 18: Weekly Sales Trend
Weekly Sales Trend 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 Week # 2019 PBH Total 2020 PBH Total 2021 PBH Total 2022 PBH Total Extraordinary Times Extraordinary Team 17
Slide 19: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 120.0 Reflects IFRS-16 12.0% Positive factors • Selling price inflation – $122.6m 95.8 11.0% 100.0 • Acquisitions • Organic sales growth (including 82.5 10.0% intercompany sales growth) 80.0 9.0% • Incentive based compensat
Slide 20: Quarter Adjusted EBITDA Margin Performance
Quarter Adjusted EBITDA Margin Performance Factors impacting the Company’s Q1-2022 EBITDA margin relative to 10% target: EBITDA Margin Temporary 10.0% • Delayed selling price increases due to retailer 8.0% notice periods • Lost contribution from 6.0% supply chain and labor related disruptions 4.0% E
Slide 21: Commodity Trends – Pork
Commodity Trends – Pork Pork Index Chart Demand factors 9.0 • Significant upward shift in 8.0 consumer demand curve • Substitution resulting from 7.0 record beef and chicken 6.0 prices USD 5.0 Supply factors Based • Labor shortages – 4.0 Index particularly impacting value- Per lbs 3.0 added inputs •
Slide 22: Commodity Trends – Beef
Commodity Trends – Beef Beef Index Chart 18.0 16.0 Demand factors 14.0 • Significant upward shift in USD 12.0 consumer demand curve Based 10.0 • Strong US exports, Index particularly to China Per lbs 8.0 Supply factors 6.0 • General inflation including 4.0 rising labor and transportation costs 2.0 0
Slide 23: Commodity Trends – Chicken
Commodity Trends – Chicken Chicken Index Chart Demand $3.25 • Significant upward shift in consumer demand curve • Substitution resulting from record beef prices $2.65 • New QSR offerings USD Based Supply Index • Record US exports $2.05 Per lbs • US hatchery issues • Low frozen inventory levels • Imp
Slide 24: Commodity Trends – Lobster
Commodity Trends – Lobster Lobster Index Chart 40.0 Demand factors • Significant upward shift in 35.0 consumer demand curve • Seasonal live demand in Asia 30.0 largely occurred prior to recent pandemic related 25.0 shutdowns • Growing demand for USD 20.0 processed products in retail Based and foodse
Slide 25: Commodity Trends – Salmon
Commodity Trends – Salmon Salmon Index Chart 10.0 Demand factors 9.0 • Reopening of economies 8.0 • General consumer trends CAD 7.0 Supply factors Based • Supply chain disruptions Index Per 6.0 lbs • East coast farm 5.0 disruptions • West coast farm 4.0 shutdowns 3.0 • Industry consolidation 2.0 wee
Slide 26: Poultry Analysis
Poultry Analysis (millions of dollars except percentages) Input Pro Forma Price Volume Pro Forma Q1-2021 Cost Q1-2022 Change Price Increases Increases Q1-2022 Increases Increases Sales 80.6 17.3 4.3 - 102.2 21.6 9.2 111.4 Gross profit 23.1 17.3 0.5 (21.0) 19.9 (3.2) 9.2 29.1 Gross margin 28.6% 19.5%
Slide 27: Case Study – Price History On a Leading Cooked Chicken SKU
Case Study – Price History On a Leading Cooked Chicken SKU New Price Percent Per Case Increase Increase Price Product category Cooked chicken April 2021 $4.60 5.0% $96.67 2021 sales (dollars) $57.9 June 2021 $7.73 8.0% $104.40 2021 sales (cases) 471,441 October 2021 $10.61 10.2% $115.01 75.7% increa
Slide 28: Adjusted EBITDA Trend
Adjusted EBITDA Trend (millions of dollars except percentages) 2010 to 2021 CAGR is 23.6% (Pre IFRS-16: 22.2%) 600.0 Reflects IFRS-16 12.0% 520.0 Midpoint of 2022 guidance 11.0% 500.0 of $510m to $530m 430.7 10.0% 400.0 9.0% 307.7 312.6 300.0 280.2 8.0% 190.2 7.0% 200.0 154.8 111.6 6.0% 100.0 66.8 6
Slide 29: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) Major positive factors: • EBITDA growth Major negative factors: Reflects IFRS-16 • Increased depreciation and 50.0 $1.00 amortization 39.4 $0.95 • Increased interest expense 40.0 $0.90 • Increased income taxes 31.3
Slide 30: Five Year (2023) Sales Target
Five Year (2023) Sales Target (millions of dollars except percentages) Sales Notes Mid-point of 2022 guidance 5,725.0 Organic growth for 2023 assuming at a nominal organic growth Organic growth rates for 2019, 2020 and 2021 were 5.9%, 7.6% and 12.4%, 352.0 rate of 6% respectively. General long-term
Slide 31: Five Year (2023) Adjusted EBITDA Target
Five Year (2023) Adjusted EBITDA Target (millions of dollars except percentages) % of EBITDA Sales Notes Impact Mid-point of 2022 guidance 520.0 9.1% Contribution margins for the Company’s existing portfolio of businesses Organic growth 88.0 25.0% range from 15% to 35% Future acquisitions needed to
Slide 32: 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 senior debt to EBITDA 820.0 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 EBITDA (RHS
Slide 33: 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 TTM 2022 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% 42.7% Dividend per shar
Slide 34: Capital Allocations – Project Capex
Capital Allocations – Project Capex (in millions of dollars except percentages) Investment Investment Completion Expected Group Q1-2022 To-Date Expected Date IRR Premier facility expansion Distribution - - 9.5 2023 Viandex facility expansion Distribution - - 7.7 2023 Piller’s Wismer plant replacemen
Slide 35: Capital Allocation – Acquisitions
Capital Allocation – Acquisitions (in millions of dollars except percentages) Group Q1-2022 Expected IRR Acquired Leonetti's Sandwich Acquired Beechgrove Protein 41.6 15% or greater Increased interest in Shaw Bakers from 50% to 73.72% Bakery Acquired Rocky Mountain IP Culinary Extraordinary Times Ex
Slide 36: Questions?
Questions? Extraordinary Times Extraordinary Team 35