Slide 1: Investor Presentation
Darcelle Investor Presentation March 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: Today's Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer Extraordinary Times Extraordinary Team 3
Slide 4: 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 Extraordinary Times Extraordinary Team 4
Slide 5: Company Profile
Company Profile 2004 Current Revenue $0.2 billion $4.9 billion Adjusted EBITDA $14.1 million $430.7 million Business platforms 2 6 Geographic reach Western Canada North America Operating facilities 8 111 Employees 900 12,000 Free cash flow per share $0.78 $6.05 Annualized dividend rate $ nil $2.80 /
Slide 6: Platform Overview
Platform Overview (in millions except percentages) 2021 Revenue Business group Overview 2004 Revenue 2021 Revenue 2021 Revenue % Including Equity Investments Formed in 1997 / 1998 with the Protein acquisitions of Grimm’s Fine Foods, 125.5 1,907.1 38.7% 1,969.0 McSweeney’s and Harvest Meats Formed in
Slide 7: Protein Platform
Protein Platform Acquired Oberto First Harvest Acquired Plant Expansion Concord Premium Meats Second Harvest plant expansion Acquired Country Prime Meats Acquired 35,000 sf Grimm’s Invested in Increased Acquired The expansion of Fine Acquired McLean’s Second investment Meat Factory Expresco’s Foods
Slide 8: Sandwich Platform
Sandwich Platform Started construction of 144,000 sf sandwich facility in Ohio; and Acquired 67,000 sf Buddy’s in Edmonton Rationalized Quality Acquired Buddy’s plant and Hygaard Raybern’s expansion plants Constructed Acquired Installation Installation Acquired Acquired Acquired Acquired Constructed
Slide 9: Bakery Platforms
Bakery Platforms Acquired Island City baking Acquired Invested in Conte Foods Partners Crackers 42,000 sf Acquired expansion of Stuyver’s new Acquired Invested in Stuyver’s Increased Acquired state-of-the-art Larosa Fine Shaw artisan investment in Stuyver’s artisan bakery Foods Bakers Bakers bakery
Slide 10: Culinary Platforms
Culinary Platforms Acquired Mrs. Willman’s Baking Merged Creekside Acquired operations Acquired Global Acquired Acquired Mrs. Willman’s Acquired Gourmet Gourmet Rocky Mountain Creekside facility Duso’s Chef Foods Flatbread 2006 2008 2010 2013 2020 2022 Extraordinary Times Extraordinary Team 10
Slide 11: Distribution Platform Evolution
Distribution Platform Evolution Approved 56,000 SF expansion of Premier Acquired Acquired Ravensbergen 45,000 SF Mermax Expansion of Acquired Acquired Acquired Frandon Acquired C&C IMS Frandon Confederation Packing Seafoods Acquired Freezers Acquired Expanded Centennial Mavros Acquired Multi- Centen
Slide 12: Seafood Platform Evolution
Seafood Platform Evolution Acquired Starboard Seafood Setup of new Acadia Acquired 50% buying station interest in Clearwater Construction of Construction of new 105,000 sf new 40,000 sf Acquired ON facility Saco facility CH Rich Acquired Acquired Hancock Maximum Acquired Acquired Gourmet, L Walker,
Slide 13: Core Business Strategies
Core Business Strategies • Emerging trends • Niche product categories 1. Targeted segments of the food industry • Leading regional brands focused on authenticity and differentiation • Unique distribution solutions • Significant organic growth opportunities • Dedicated to maintaining an entrepreneuri
Slide 14: Targeted Segments of the Food Industry: Protein
Targeted Segments of the Food Industry PROTEIN Extraordinary Times Extraordinary Team 14
Slide 15: Targeted Segments of the Food Industry: Sandwich
Targeted Segments of the Food Industry SANDWICH Extraordinary Times Extraordinary Team 15
Slide 16: Targeted Segments of the Food Industry: Bakery
Targeted Segments of the Food Industry BAKERY Extraordinary Times Extraordinary Team 16
Slide 17: Targeted Segments of the Food Industry: Seafood
Targeted Segments of the Food Industry SEAFOOD Extraordinary Times Extraordinary Team 17
Slide 18: Premium Brands Eco-system
Premium Brands Eco-system Extraordinary Times Extraordinary Team 18
Slide 19: 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 Specialty Foods Premium Food Distribution Extraordinary Times Extraordinary Team 19
Slide 20: 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 21: Oberto's Kent, WA Facility
Oberto’s Kent, WA Facility OVERVIEW FACILITY ⚫ Oberto’s main production facility is in Kent, Washington. It produces a variety of meat snacks under the Oberto, Cattleman’s Cut, Bavarian and Pacific Gold brand names ⚫ The facility is 170,000 sf and uses state-of-the-art continuous cooking and packagi
Slide 22: 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 23: Stuyver's Langley, BC Facility
Stuyver’s Langley, BC Facility OVERVIEW FACILITY ⚫ Stuyver’s Langley, BC production facility is one of the Bakery platform’s 3 operating facilities. It produces a variety of artisan bread products including baguettes, hearty baked loaves, gourmet burger buns, ciabattas and rolls ⚫ The facility is 10
Slide 24: 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 25: Ready Seafood's Saco, ME Facility
Ready Seafood’s Saco, ME Facility OVERVIEW FACILITY ⚫ Ready Seafood’s Saco, ME production facility is one of the Seafood platform’s 15 operating facilities. It produces a variety of processed lobster products, including a line of Cold Cracked Lobster branded all-natural raw lobster items ⚫ The facil
Slide 26: Diversification – Channels and Customers
Diversification – Channels and Customers 2021: SPECIALTY FOODS (60.6%) PREMIUM FOOD DISTRIBUTION (39.4%) Others, 0.9% Chains and large format Customer % Sales ISR, 6.1% retailers, 9.5% Customer A 13.8% Trading, 3.9% Foodservice Customer B 12.7% operators, 15.2% Foodservice Customer C 6.7% operators,
Slide 27: Diversification – Geographically
Diversification – Geographically Chart A Chart B Europe , 3.8% Australia , 0.1% Europe , 0.7% Other , 0.5% Asia , 1.2% Asia , 3.9% United States , 39.7% United States , 37.5% Canada , 54.1% Canada , 58.4% Chart A: amounts represent 2021 consolidated revenues Chart B: amounts represent 2021 consolida
Slide 28: Diversification – Products and Procured Commodities
Diversification – Products and Procured Commodities 2021: Specialty Foods (60.6%) Premium Foods Distribution (39.4%) Others, 1.5% Baked goods, 1.1% Commodity % Sales Sandwiches, 17.9% Seafood, 20.4% Seafood 23.2% Beef 18.1% Pork 13.7% Poultry 5.8% Bread 2.9% Eggs 2.5% Protein, 17.4% Turkey 2.0% Chee
Slide 29: 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 30: 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 $50.7 Harlan B&C Foods SJ Fine Maximum Piller’s Freybe Ocean Expresco C&C Raybern Oberto Ma
Slide 31: Acquisitions Framework
Acquisitions Framework Acquisition Consideration Acquisition 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 • Acc
Slide 32: 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 9 493 4 204 5 389 21 2,076 Distribution - - 4 263 4 1,055 1 879 4 63 13 2,260 Protein 1 88 3 152 12 1,
Slide 33: 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 34: Financial Update
Financial Update Extraordinary Times Extraordinary Team 34
Slide 35: 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% 2,198.3 2,000.0 1,857.5 1,4
Slide 36: Fourth Quarter Sales Performance
Fourth Quarter Sales Performance (millions of dollars except percentages) 1,600.0 Long-term targeted organic 50.0% volume growth rate (4% - 6%) 1,345.4 45.0% 1,400.0 Positive factors 40.0% • Acquisitions – $119.3m 1,200.0 1,056.2 35.0% • Selling price inflation – $111.3m 959.1 1,000.0 • Organic volu
Slide 37: Growth Rates
Growth Rates Organic Volume Growth Rate 20.0% Factors impacting the Company’s Q4-2021 pandemic adjusted OVGR: 16.0% • Supply chain and labor related disruptions – 12.0% estimated lost sales of ~$39.5m 8.0% • Less retail featuring of branded protein products by 4.0% the Company’s Canadian protein bus
Slide 38: Major Organic Growth Drivers
Major Organic Growth Drivers Seafood Distribution Protein Sandwich Bakery Culinary Processed lobster and crab Increased retail featuring Branded meat snack sticks Leveraging IP and North Branded naturally fermented Product solution provider for initiatives in foodservice and Geographical expansion o
Slide 39: 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 39
Slide 40: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 to 2021 TTM 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 69.3 7
Slide 41: Fourth Quarter EBITDA Performance
Fourth Quarter EBITDA Performance (millions of dollars except percentages) Positive factors • Selling price inflation 160.0 12.0% • Acquisitions 140.0 Reflects IFRS-16 11.0% • Organic sales growth • Incentive based compensation 120.0 113.4 10.0% • Production efficiency improvements 100.0 9.0% • Othe
Slide 42: EBITDA Margin Drivers
EBITDA Margin Drivers Seafood Distribution Protein Sandwich Bakery Culinary Positive Factors • Sales leveraging • Sales leveraging • Sales leveraging • Sales leveraging • Sales leveraging • Sales leveraging • Operational efficiencies • Operational efficiencies • I/C sales • Pricing strategies • Oper
Slide 43: Fourth Quarter Normalized Sales and EBITDA
Fourth Quarter Normalized Sales and EBITDA (millions of dollars except percentages and per share amounts) Supply Ongoing Ongoing Selling Price Chain and Q4-2021 COVID COVID Direct Q4-2021N Delays Labor Sales Impact Costs Disruptions Sales: PFD 566.0 13.3 - - 10.1 589.4 SF 779.5 8.2 - 14.1 29.4 831.2
Slide 44: 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 4.0 • Labor shortages – Index particularly impacting value- Per lbs 3.0 added inputs 2
Slide 45: Commodity Trends – Beef
Commodity Trends – Beef Beef Index Chart Demand factors • Significant upward shift in 18.0 consumer demand curve 16.0 • Record exports from the US to China 14.0 Supply factors USD 12.0 Based • Labor shortages – 10.0 particularly impacting value- Index Per lbs 8.0 added inputs • Contracting herds due
Slide 46: Commodity Trends – Chicken
Commodity Trends – Chicken Chicken Chart $3.05 Demand • Significant upward shift in consumer demand curve $2.45 • New QSR offerings USD Based • Substitution resulting from Index record beef prices Per lbs $1.85 Supply • Labor shortages – particularly impacting $1.25 value-added inputs • US Industry
Slide 47: Commodity Trends – Lobster
Commodity Trends – Lobster Lobster Index Chart Demand factors • Significant upward shift in 40.0 consumer demand curve • Reduced retail featuring of 35.0 live lobster – price related 30.0 • Growing demand for processed lobster products in retail and foodservice 25.0 channels USD 20.0 • Substitution
Slide 48: Commodity Trends – Salmon
Commodity Trends – Salmon Salmon Index Chart 10.0 9.0 Demand factors • Reopening of economies 8.0 • General consumer trends CAD 7.0 Based Supply factors Index Per 6.0 lbs • Supply chain disruptions 5.0 • BC floods • West coast farm 4.0 shutdowns 3.0 • Industry consolidation 2.0 week 13 week 26 week
Slide 49: Adjusted Earnings and EPS
Adjusted Earnings and EPS (millions of dollars except per share amounts) 300.0 $5.00 Reflects IFRS-16 $4.50 250.0 $4.00 2010 to 2021 CAGR is 25.2% 194.8 $3.50 200.0 $3.00 150.0 $2.50 117.6 118.4 118.5 $2.00 99.2 100.0 80.5 $1.50 53.2 $1.00 50.0 24.5 24.9 26.6 19.6 $0.50 - $- 2011 2012 2013 2014 2015
Slide 50: Fourth Quarter Adjusted Earning Performance
Fourth Quarter Adjusted Earning Performance (millions of dollars except per share amounts and percentages) Major positive factors: • EBITDA growth • Interest Major negative factors: Reflects IFRS-16 60.0 $1.50 • Income taxes 52.2 $1.40 50.0 • Depreciation and amortization $1.30 40.0 $1.20 Adjusted e
Slide 51: Five Year (2023) Sales Target
Five Year (2023) Sales Target (millions of dollars except percentages) Sales Notes Fiscal 2021 4,931.7 Fiscal 2021 ongoing pandemic impact 141.4 Includes Starboard, Clearwater, Confederation Freezers, Distribution Côte- Annualization of acquisitions completed in 2021 and 2022 391.6 Nord, Mermax, Mai
Slide 52: Five Year (2023) Adjusted EBITDA Target
Five Year (2023) Adjusted EBITDA Target (millions of dollars except percentages) % of EBITDA Sales Notes Impact Fiscal 2021 430.7 8.7% Fiscal 2021 pandemic impact 29.1 22.2% Includes Starboard, Confederation Freezers, Distribution Côte-Nord, Annualization of acquisitions completed in 2021 and 30.4 7
Slide 53: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 Q4-2021: 920.0 5.0 • Redemption of $113.0m in Top end of targeted total debt to EBITDA 4.60% debentures – 820.0 ratio 4.5 $105.0m was converted at $107.25 per share 720.0 4.0 Q3-2021: Top end of targeted • Renegotiated terms on 620.0 senior d
Slide 54: 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 2022P 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% Dividend per share $1.18 $
Slide 55: Capital Allocations
Capital Allocations (in millions of dollars except percentages) Investment Investment Capital Group Expected IRR 2021 To-Date Allocation Acquired 50% interest in Clearwater Seafood Acquired Starboard Seafood Acquired Mermax Seafood Acquired Westmorland Seafood 713.9 713.9 713.9 Acquired Distribution
Slide 56: Capital Allocations
Capital Allocations (in millions of dollars except percentages) Investment Group Capital Allocation Expected IRR Subsequent to 2021 Acquired Leonetti's Protein Acquired Beechgrove Protein 50.2 15% or greater Increased interest in Shaw Bakers from 50% to 73.72% Bakery Acquired Rocky Mountain IP Culin
Slide 57: Questions
Questions Extraordinary Times Extraordinary Team 57