Superior Plus Corp · TSX:SPB
Superior Plus — Investor Day (May 2021)
92 slides from Superior Plus's investor day presentation, May 25, 2021
Slide 1: Investor Day
Investor Day May 25, 2021 The Superior Way Forward
Slide 2: Forward Looking Information
Forward Looking Information This written and accompanying oral presentation contains certain forward‐looking information within the meaning of applicable Canadian securities laws which is provided for the purpose of presenting information about management’s current expectations and plans. Readers ar
Slide 3: Forward Looking Information
Forward Looking Information By its very nature, forward‐looking information involves numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors a
Slide 4: Agenda: Strategic Overview
Agenda Strategic Overview Strategic Overview • Luc Desjardins M&A and Integration • Inder Minhas Canadian Retail Propane Distribution • Rick Carron U.S. Propane Distribution • Andy Peyton Digital Strategy • Rick Carron North American Wholesale Supply and Sales • Shawn Vammen Financial Strategy & Out
Slide 5: Strategic Overview
Strategic Overview Luc Desjardins President and CEO 5
Slide 6: Superior Plus Business Overview
Superior Plus Business Overview Superior is an industry‐leading North American retail propane distribution company #1 5th largest propane distributor in Canada retail propane distributor with ~38% market share(1) in the U.S. and growing(1) 3.2 billion litres ~800,000customers ~4,100 employees See En
Slide 7: Superior Plus Financial Overview
Superior Plus Financial Overview EBITDA by Segment(1) Market Capitalization(2) $2.6 billion Enterprise value(2) $4.8 billion 43% Dividend – Annualized/Yield(2) $0.72 per share / 4.8% 57% Q1 2021 Leverage(3) 2.9x TTM Q1 2021 Adjusted EBITDA(4)(5) $405.6 million U.S. Propane Canadian Propane 2016 – 20
Slide 8: Transformed Business with a New Vision for Growth
Transformed Business with a New Vision for Growth Divestitures of non‐core 1 2 3 Transition to pure‐play Superior Way established as Superior Way segments, energy distributor best‐in‐class operating platform Forward strategic M&A and Completed implementation of Superior Way • Divestiture of • Operat
Slide 9: Executed Transition to a Pure-Play Energy Distributor
Executed Transition to a Pure‐Play Energy Distributor Superior has completed a comprehensive 5‐year transformation into a pure‐play energy distributor with a major U.S. platform for continued growth 2016 2017 2018 2019 2020 2021 Divestiture of Canwest NGL acquisition Integration of Integration of Di
Slide 10: Benefits of Pure-Play Energy Distribution Platform
Benefits of Pure‐Play Energy Distribution Platform • Rebalanced business around highest EBITDA Growth Since 2016(1) growth segment • Consistent, stable free cash flow $410 $402 $428 generation with ~83% FCF conversion(2) • Reduced cyclicality and exposure to oil $265 and gas end markets $180 $167 (m
Slide 11: Propane Industry is Attractive
Propane Industry is Attractive The North American propane market is attractive Pricing Model Protects Downside Cost plus pricing model provides for due to customer characteristics, sustainable free consistent, reliable cash flow cash flow and significant opportunities for growth High Switching Costs
Slide 12: Superior Way Established as Best-In-Class Operating Platform
“Superior Way” Established as Best‐In‐Class Operating Platform Disciplined continuous improvement program initially launched in Canada in 2014 Overall Impact for Canadian Propane, Key tools for operational Digital investments driving 2016‐2020 improvement organic growth • Improved fill rate and deli
Slide 13: Building on our successes to accelerate growth and maximize shareholder returns
Building on our successes to accelerate growth and maximize shareholder returns
Slide 14: Superior Way Forward
Superior Way Forward Strategic plan to accelerate growth and maximize shareholder returns 1 2 3 Pursue robust pipeline of Apply operating best Employ disciplined capital accretive acquisitions practices organization‐wide allocation to drive to further enhance shareholder return profitability and inn
Slide 15: Executing on Highly Accretive U.S. M&A Opportunity
Executing on Highly Accretive U.S. M&A Opportunity • Successful track record of U.S. Acquisition Synergy Performance executing and integrating small to large acquisitions 1,350+ Identified Targets • Large universe of accretive opportunities, with more than 15 acquisitions currently under 15+ Targets
Slide 16: Superior Way Forward in U.S. Propane Distribution
“Superior Way Forward” in U.S. Propane Distribution Complete implementation of the Superior Way in the U.S. and continue to innovate and improve operations Targeted Impact for U.S. Propane, Operating platform and processes successful in Canada have 2020–2026 been implemented in the U.S. since 2019 M
Slide 17: Superior Way Forward in Canadian Propane Distribution
“Superior Way Forward” in Canadian Propane Distribution Continue to invest in innovation and technology to improve operational efficiency Targeted Impact for Canadian Propane, Proven and successful operating platform in Canada will 2020–2026 continue to evolve Further upside to be realized from oper
Slide 18: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Significant cash flow generation and transaction proceeds to be dynamically deployed towards highest returning investments Uses of Capital and Drivers of Shareholder Return, 2021–2026 Free Cash Flow Generation + Proceeds on Sale of Specialty Chemicals Allocat
Slide 19: Targeting $700-$750 Million of EBITDA by 2026
Targeting $700–$750 Million of EBITDA by 2026 Superior is targeting $700 to EBITDA from Operations(1) — Projected Growth ($millions) $750 million of EBITDA from Operations(1), representing a $700–$750 10% to 11% CAGR through 2026 Acquisition spending of $1.9 billion Driving operating expense‐to‐gros
Slide 20: Keys to Achieving Superior Way Forward
Keys to Achieving Superior Way Forward Vision Values Culture To become the leader in creating Innovation, winning with people, Entrepreneurship, continuous value through differentiation and customer focus, performance improvement, execution, safety best‐in‐class operations in the and safety, environ
Slide 21: Keys to Achieving Superior Way Forward: Key Themes
Keys to Achieving Superior Way Forward Key Themes Organic Growth • Effective sales and marketing programs to target annual growth of at least 2% more than the market • Differentiation through digitalization to build strong partnerships with customers • Penetrate U.S. commercial market building on Ca
Slide 22: Balancing the Needs of All Stakeholders
Balancing the Needs of All Stakeholders Vision, Mission, Strategy, Values Shareholders Community Employees Customers Performance We are striving to perform in the top quartile for all stakeholders 22 22
Slide 23: Investment Highlights
Investment Highlights 1 2 3 4 5 6 Market Strong Free Growth Proven Dynamic Capital Compelling Leader Cash Flow Runway Track Record Allocation Dividend Yield Leading propane Stable and consistent Substantial white‐ Proven track record Disciplined and Current yield distributor in the FCF generation sp
Slide 24: Agenda: M&A and Integration
Agenda M&A and Integration Strategic Overview • Luc Desjardins M&A and Integration • Inder Minhas Canadian Retail Propane Distribution • Rick Carron U.S. Propane Distribution • Andy Peyton Digital Strategy • Rick Carron North American Wholesale Supply and Sales • Shawn Vammen Financial Strategy & Ou
Slide 25: M&A and Integration
M&A and Integration Inder Minhas Senior Vice President M&A
Slide 26: Fragmented U.S. Market Ripe For Consolidation
Fragmented U.S. Market Ripe For Consolidation • U.S. propane distribution market is highly fragmented U.S. Propane Market Share(2) • Industry is consolidating over time as major retailers acquire Top 5 large‐scale smaller local players retailers – Total number of market participants has steadily dec
Slide 27: Hundreds of Potential M&A Targets
Hundreds of Potential M&A Targets 3,885 Active U.S. Distributors ~100 ~170 1,350+ Identified Targets ~1,100 Targets Within Footprint targets adjacent targets in new to states footprint ~10 ~20 ~1,070 platform mid‐size small targets targets targets EBITDA EBITDA EBITDA >$25m $10m –$25m <$10m 27
Slide 28: U.S. Acquisition Pipeline Remains Robust and Deal Flow is Accelerating
U.S. Acquisition Pipeline Remains Robust and Deal Flow is Accelerating • Acquisition pipeline continues to grow as small and Active Deals in Pipeline as of May 2021 mid‐tier retailers look to exit a consolidating market $ EV • Superior is benefitting from increased credibility and presence in the U.
Slide 29: Veteran M&A Team Ready to Capitalize on Robust Pipeline
Veteran M&A Team Ready to Capitalize on Robust Pipeline +25 Functional M&A Execution Team Superior Executive Team Area Experts Andy Peyton Rick Carron President, USPD SVP Sales and Operations, (Ops, IT, Finance, Canadian Propane Procurement, etc.) • >10 years propane industry experience • Previously
Slide 30: Demonstrated Ability to Acquire & Integrate
Demonstrated Ability to Acquire & Integrate Strong track record NGL Energy Partners LP demonstrates ability to acquire annually at scale US CANADA YEAR 2017 2018 2019 2020 2021 # Acquisitions 4 6 5 5 4 $ TEV ($m) ~$525 ~$1,275 $~70 ~$288 ~$260 Slower acquisition pace given focus on integrating NGL 3
Slide 31: Exceeding Synergy Targets on Major Acquisitions
Exceeding Synergy Targets on Major Acquisitions Superior has Canwest Synergies Achieved(1) NGL Synergies Achieved(1) outperformed its initial Targeted Achieved Targeted Achieved synergy targets for both Run rate synergies achieved 27 months post close(2) Run rate synergies achieved ~14 months post c
Slide 32: Deployed $725 Million in Capital Across 17 Transactions
Deployed $725 Million in Capital Across 17 Transactions, Targeting Post‐Synergy Average Multiple Improvement of ~2.0x Summary of USPD Acquisitions (excl. NGL)(1) Acquisitions Completed 17 Capital Deployed ~$725 million Acquired EBITDA(2) ~$82 million Synergized EBITDA(2) ~$115 million Acquired EV/EB
Slide 33: Data Driven Integration Process Accelerates Synergy Realization
Data Driven Integration Process Accelerates Synergy Realization • Superior Plus has developed a robust and Dashboard Drives Superior Way Synergy Realization data driven acquisition playbook ̶ Standard diligence checklist including more than 1,000 items maintains discipline and accountability 39.5% 4
Slide 34: Synergies Largely Achieved Through Controllable Cost Outs
Synergies Largely Achieved Through Controllable Cost Outs Marketing Sales Approach Distribution Management Workforce Planning Centralized Cost Structure Supply Chain Efficiencies • Implement strategic • Increase delivered • Improve CSR • Minimize SG&A • Consolidate demand pricing using in‐depth volu
Slide 35: Reputation as a Buyer Of Choice
Reputation as a Buyer Of Choice 1 2 3 Strong Financial Profile Seamless Transition Industry Leadership • Demonstrated ability to transact across • Veteran M&A team implementing a • Experienced management team small‐to‐large opportunities streamlined diligence process • Best‐in‐class operations and a
Slide 36: Conclusion
Conclusion • Platform for growth has been established initially through transformative acquisition of NGL • Fragmented U.S. retail market drives a robust and active acquisition pipeline ̶ Superior targeting deployment of ~$1.9 billion into acquisitions over the next six years ̶ Disciplined evaluatio
Slide 37: Agenda: Canadian Retail Propane Distribution
Agenda Canadian Retail Strategic Overview • Luc Desjardins Propane Distribution M&A and Integration • Inder Minhas Canadian Retail Propane Distribution • Rick Carron U.S. Propane Distribution • Andy Peyton Digital Strategy • Rick Carron North American Wholesale Supply and Sales • Shawn Vammen Financ
Slide 38: Canadian Retail Propane Distribution
Canadian Retail Propane Distribution Rick Carron Senior Vice President, Superior Propane 38
Slide 39: Overview: Canadian Propane
Overview: Canadian Propane The largest and only coast‐to‐coast‐to‐coast propane distributor in Canada 1.1b 190,000 Volume (litres) Customer locations 1,690 12 Employees Provinces and territories 39
Slide 40: Competitive Landscape
Competitive Landscape • Superior is the dominant and most modern Canada Propane Market Share by Volume(1) player in Canada with ~38% market share ̶ The next largest competitor has less than ~11% share • Opportunity to benefit from economies 37% of scale and implement operational ~175 Local ~37% 38%
Slide 41: Customer Composition by Gross Profit
Customer Composition by Gross Profit Superior’s customer mix is representative of the market in Canada, which is more weighted to commercial and industrial end‐uses 30% 70% Residential Commercial • Space heating End‐use markets/customers: • Powering appliances • Hospitality industry • Oil and gas ap
Slide 42: Superior Way has Delivered Significant Financial Results
Superior Way has Delivered Significant Financial Results Superior Way in Canada has focused on improving operational efficiency and driving organic growth Opex to Gross Profit Ratio(1) and EBITDA from Organic Growth – Net Delivery Locations(3) Operations(2) ($m) $201 $195 65% $163 63% $132 60% $120
Slide 43: Investment In Digital Marketing Continues To Pay Off
Investment In Digital Marketing Continues To Pay Off Making it easy to buy propane through a simple, consultative sales process Website Traffic 100,000 58% Increase in productivity per sales rep 80,000 4.8x Increase in sales generated from marketing 60,000 40,000 10% Decrease in marketing cost per a
Slide 44: Enterprise-Wide Strategy to Improve the Customer Experience
Enterprise‐Wide Strategy to Improve the Customer Experience Key Initiatives NPS Score(1) • Digitalization to deliver a seamless 100 customer experience 90 ̶ Real‐time data on usage, tank‐levels and future delivery dates improves 80 World Class delivery efficiency 70 Lower ̶ Customer portal and smart
Slide 45: Tank Sensors Maximize Operating Efficiency
Tank Sensors Maximize Operating Efficiency • ~84,000 tank sensors currently installed Tank Sensor Deployment (000s) and % of Volume ̶ Covering ~75% of delivered volumes • Data collected from mass tank sensor deployment enables 75% the use of Artificial Intelligence and machine learning to 70% furthe
Slide 46: Driving Further Improvements in Operating Efficiency
Driving Further Improvements in Operating Efficiency Automation of the service Digitalization of customer Centralizing North American technician business interactions in the delivery business back office • Tank installations and service work • Moving customer contacts from voice • Consolidation of t
Slide 47: Superior Way Forward: Focus in Canada
Superior Way Forward Focus in Canada 2016 2020 2025 Plan • Further enhancement of cost to serve initiatives to reduce costs and improve customer service driving Operating Expenses 65% 60% 56% / Gross Profit(1) (%) increase in annual EBITDA • Capitalizing on opportunities in auto gas, power and Targe
Slide 48: Agenda: U.S. Propane Distribution
Agenda U.S. Propane Distribution Strategic Overview • Luc Desjardins M&A and Integration • Inder Minhas Canadian Retail Propane Distribution • Rick Carron U.S. Propane Distribution • Andy Peyton Digital Strategy • Rick Carron North American Wholesale Supply and Sales • Shawn Vammen Financial Strateg
Slide 49: U.S. Propane Distribution
U.S. Propane Distribution Andy Peyton President, Superior Plus Propane 49
Slide 50: Overview: U.S. Propane
Overview: U.S. Propane Rapidly growing in the U.S., with differentiated focus on customer experience and continuous improvement 1.2b 590,000 Volume (litres) Customer locations 2,152 22 Employees States ~2% Market Share 50
Slide 51: Customer Detail by Gross Profit
Customer Detail by Gross Profit U.S. Business is heavily weighted towards residential & small commercial customers primarily using propane for heating 74% 25% 1% Residential Commercial Wholesale 51
Slide 52: Progress Since 2018
Progress Since 2018 NGL acquisition has been fully integrated and USPD Adjusted EBITDA Growth ($m) platform for growth is established • 13 acquisitions made in the U.S. since the transformative acquisition of NGL, increasing market share • Significant opportunity to apply Superior Way best $207 prac
Slide 53: Tank Sensor Deployment and % of Volume
Tank Sensor Deployment and % of Volume • ~66,000 tank sensors currently installed Tank Sensor Deployment and % of Volume ̶ 21% of tank locations ̶ 23% of deliveries ̶ 17% of total volume delivered 70% • Goal to deploy enough sensors to cover 70% of delivered volume by 2025 • We have an opportunity t
Slide 54: Sharing and Building Upon Superior Best Practices
Sharing and Building Upon Superior Best Practices Improving the business mix, realized synergies and sharing Opex to Gross Profit Ratio and building upon the Superior Way best practices has led to significant operational improvement 81% 77% • Implemented proprietary distribution logistics approach 6
Slide 55: Freeman Gas Company Overview
Freeman Gas Company Overview Highlights One of the largest and most respected independent Strong organic growth track record. Average customer gains Integrated Retail Distribution & propane only distributors in the U.S. of ~1,000‐1,500 customers per year over the last five years Wholesale Comp
Slide 56: Superior Way Forward: Focus in the U.S.
Superior Way Forward Focus in the U.S. 2016 2020 2025 Plan • Focus on continued execution on M&A strategy generating double digit ROIC Operating Expenses 81% 58% 53% / Gross Profit (%) • Targeting tank sensor deployment of 70% and tank fill rates of >60% Targeted Growth in Active Delivery 2‐3% 2‐3%
Slide 57: Agenda: Digital Strategy
Agenda Digital Strategy Strategic Overview • Luc Desjardins M&A and Integration • Inder Minhas Canadian Retail Propane Distribution • Rick Carron U.S. Propane Distribution • Andy Peyton Digital Strategy • Rick Carron North American Wholesale Supply and Sales • Shawn Vammen Financial Strategy & Outlo
Slide 58: Digital Strategy
Digital Strategy Rick Carron Senior Vice President, Superior Propane af Superior Plus
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Slide 61: Investment in Technical Solutions
Investment in Technical Solutions Create a Strong Industry Differentiator INTRODUCING SMART Tank’ FOR ALL All NEW CUSTOMERS will receive a SMART Tank as part of the standard offering. EXISTING CUSTOMERS will have different programs put in place to phase them in to the new SMART Tank offering. STANDA
Slide 62: Digital Modernization Strategy
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Slide 64: North American Wholesale Supply and Sales
North American Wholesale Supply and Sales Shawn Vammen Senior Vice President, Superior Gas Liquids
Slide 65: Overview: Superior Gas Liquids
Overview: Superior Gas Liquids Reliable North American supplier of propane 2.1b 145 Volume (litres)(1) Customer locations 67 11 Employees Provinces and territories 21 States See End notes for further information 65 65
Slide 66: Superior's Procurement and Supply Advantage
Superior’s Procurement and Supply Advantage Sales Pricing Logistics Supply Utilizing expertise Offering creative price solutions Expertise in managing storage, Reliable supply from in various regions to service to meet customer needs supply requirements, pipeline numerous producers and third‐party c
Slide 67: Reliable and Flexible Supply Options
Reliable and Flexible Supply Options Key benefits to our wholesale operations Canada • Transloader, terminal & storage locations and strategy: • Security of supply ensures demand is met when supply is constrained • Capture arbitrage opportunities • Reputation for safe and reliable operations • Techn
Slide 68: Significant Volume Growth and Opportunities to Expand
Significant Volume Growth and Opportunities to Expand Significant third‐party sales growth: Wholesale Propane Volumes(1) (millions of litres) • Expanding relationships and reach in new markets with retail customers COVID‐19 1,265 impact and warmer weather • UPE acquisition in California increased sa
Slide 69: Agenda: Financial Strategy & Outlook
Agenda Financial Strategy Strategic Overview • Luc Desjardins & Outlook M&A and Integration • Inder Minhas Canadian Retail Propane Distribution • Rick Carron U.S. Propane Distribution • Andy Peyton Digital Strategy • Rick Carron North American Wholesale Supply and Sales • Shawn Vammen Financial Stra
Slide 70: Financial Strategy & Outlook
Financial Strategy & Outlook Beth Summers Executive Vice President and CFO
Slide 71: Executing on a Roadmap to Optimize Shareholder Returns
Executing on a Roadmap to Optimize Shareholder Returns • Strong track record of delivering on guidance ̶ Delivered in 2020 despite unprecedented conditions • Transition to pure‐play energy distribution business provides stable, predictable cash flows • Disciplined capital allocation expected to driv
Slide 72: Historical Results and 2021 Guidance
Historical Results and 2021 Guidance Historical Adjusted EBITDA ($m)(1)(2) COVID‐19 impact $379 $370 – $410 2021 Guidance $373 Adjusted EBITDA(1) $237 $370m – $410m $159 $118 Long‐term Total Debt to Adjusted EBITDA Leverage Ratio Target(1) 2016 2017 2018 2019 2020 2021 3.0x – 3.5x Guidance Superior
Slide 73: Capital Expenditures and Free Cash Flow Conversion Profile
Capital Expenditures and Free Cash Flow Conversion Profile Superior generates robust FCF conversion of 83%, with annual maintenance capex needs of ~$40m‐$50m Expected Range 2022‐2026(2) Historical Free Cash Flow Conversion Profile(1) Capital Expenditures(1) ($m) Growth $40m‐$50m Maintenance $40m‐$50
Slide 74: Strong Balance Sheet Provides Efficient Financing for Growth
Strong Balance Sheet Provides Efficient Financing for Growth Current leverage: 2.9x(2) Weighted average pre‐tax Undrawn $750m revolver(1) (Long‐term leverage target of 3.0x – 3.5x) cost of debt 4.4%(3) Debt Maturity Profile $762m No Near‐Term Maturities $750m of undrawn capacity $500m Inexpensive BA
Slide 75: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Significant cash flow generation and transaction proceeds to be dynamically deployed towards highest returning investments Uses of Capital and Drivers of Shareholder Return, 2021‐2026(1) Targeted Free Cash Flow Generation of $2.6b – $2.8b(2) plus ~$600m Upfro
Slide 76: Financing Growth
Financing Growth Superior Way Forward to be funded ~$1.2+ Billion Available Funding(1) ~83% Free Cash with existing cash, internally generated Flow Conversion cash flows and available low‐cost debt Expanded revolver with lender consent $300 $750 Million Availability under revolver ~$200 Million Revo
Slide 77: Comparative Profiles of Distribution and Growth Companies
Comparative Profiles of Distribution and Growth Companies Share Price Enterprise Value EV / CY2021E EV / CY2022E CY16A – 20A CY2021E EBITDA CY2021E UFCF Net Debt / LTM Company Trading Currency Dividend Yield (Local Currency) (C$ millions) EBITDA EBITDA EBITDA CAGR Margin Conversion(1) EBITDA UGI $US
Slide 78: Summary of Investment Opportunity
Summary of Investment Opportunity Opportunity to invest in a leading propane distributor in the U.S. and Canada with a best‐in‐class operating platform, a clear path to accelerated growth, and a compelling dividend yield Targeted Total Return (2021 to 2026) 7‐8% 14‐16% ~5% 2‐3% (1) Organic Growth &
Slide 79: Agenda: Environmental, Social & Governance
Agenda Environmental, Social Strategic Overview • Luc Desjardins M&A and Integration • Inder Minhas & Governance Canadian Retail Propane Distribution • Rick Carron U.S. Propane Distribution • Andy Peyton Digital Strategy • Rick Carron North American Wholesale Supply and Sales • Shawn Vammen Financia
Slide 80: Environmental, Social & Governance
Environmental, Social & Governance Beth Summers Executive Vice President and CFO
Slide 81: Our Sustainability Journey
Our Sustainability Journey Superior recently issued its inaugural Sustainability Report • Committed to keeping our employees safe, supporting the communities where we operate and minimizing our impact on the environment Superior is committed to building genuine relationships with customers, communit
Slide 82: Committed to Social Responsibility
Committed to Social Responsibility Creating long term shareholder value in a socially responsible and sustainable manner Reducing impacts on the environment Helping employees thrive Creating a strong safety culture Giving back to communities • Climate change is one of the largest • Providing flexibi
Slide 83: Agenda: Wrap-Up Comments
Agenda Wrap‐Up Comments Strategic Overview • Luc Desjardins M&A and Integration • Inder Minhas Canadian Retail Propane Distribution • Rick Carron U.S. Propane Distribution • Andy Peyton Digital Strategy • Rick Carron North American Wholesale Supply and Sales • Shawn Vammen Financial Strategy & Outlo
Slide 84: Wrap-Up Comments
Wrap‐Up Comments Luc Desjardins President and CEO
Slide 85: Key Messages
Key Messages Executing on a roadmap to optimize shareholder returns • Acquisition and integration • Experienced Leadership Team • Execution, execution, execution • Proven track record • Creating an environment where all stakeholders benefit 85
Slide 86: Agenda: Question & Answer Session
Agenda Question & Strategic Overview • Luc Desjardins Answer Session M&A and Integration • Inder Minhas Canadian Retail Propane Distribution • Rick Carron U.S. Propane Distribution • Andy Peyton Digital Strategy • Rick Carron North American Wholesale Supply and Sales • Shawn Vammen Financial Strateg
Slide 87: Question & Answer Session
Question & Answer Session
Slide 88: End Notes
End Notes Slide 6 Slide 26 Slide 40 (1) Canadian Source Data: Conference Board of Canada Report Dec 2018 – (1) As measured by the number of National Propane Gas Association (1) Represents retail propane market, which includes residential and Fueled Up. US Data ICF 2018 Retail Sales Report published
Slide 89: End Notes
End Notes Slide 73 Slide 78 (1) Free Cash Flow Conversion is calculated as Adjusted EBITDA less (1) Total Return is calculated as the average annual percentage increase in the maintenance capex and lease repayments over Adjusted EBITDA. Free Cash growth of EBITDA of Superior from organic growth and
Slide 90: Non-GAAP Financial Measures
Non‐GAAP Financial Measures Throughout the presentation, Superior has used the following terms that are not defined by International Financial Reporting Standards (“GAAP”), but are used by management to evaluate the performance of Superior and its businesses. Since non‐GAAP financial measures do not
Slide 91: Non-GAAP Financial Measures (continued)
Non‐GAAP Financial Measures (continued) Total Net Debt to Adjusted EBITDA Leverage Ratio and Pro Forma Adjusted EBITDA Adjusted EBITDA for the Total Net Debt to Adjusted EBITDA Leverage Ratio is defined as Adjusted EBITDA calculated on a 12‐month trailing basis giving pro forma effect to acquisition
Slide 92: Calculation of Free Cash Flow
Calculation of Free Cash Flow (millions) 2020 2019 Earnings before income tax 127.1 119.7 Add back (deduct) (Gain) Loss on disposal of assets and other 3.5 (2.0) Transaction and other costs 23.6 26.8 Amortization and depreciation included in SD&A 193.3 177.3 Unrealized gains(losses) on derivative fi