Sucro Limited · TSXV:SUGR
Sucro — Investor Presentation (July 2024)
27 slides from Sucro's investor presentation, July 2024
Slide 1: Investor Presentation July 2024
Investor Presentation July 2024 TSXV: SUGR | OTCQB: SUGRF
Slide 2: Disclaimers
DISCLAIMERS General Matters This Presentation should be read in conjunction with the Sucro Limited’s audited annual consolidated financial statements for the year ended December 31, 2023 and accompanying notes, and the MD&A and unaudited condensed interim consolidated financial statements for the qu
Slide 3: This isn't your grandfather's sugar refiner
THIS ISN’T YOUR GRANDFATHER’S SUGAR REFINER “Our mission is to be the leading alternative integrated sugar supplier in North America, leveraging our processing footprint and strategic partnerships to fully service sugar users.“ Jonathan Taylor, Sucro’s Founder and CEO Canada, 1854 TSXV: SUGR| OTCQB:
Slide 4: Proven team & board with a strategic focus on growth & profitability
PROVEN TEAM & BOARD WITH A STRATEGIC FOCUS ON GROWTH & PROFITABILITY Jonathan Taylor Stefano D’Aniello Matt Dyer Eli Cohen Oliver Hire Founder & CEO CFO Managing Director VP CAN Sales & Operations VP, Head of Trading Director & Head of US Sales • 15+ years of sugar trading • 15+ years of financial •
Slide 5: Innovative North American refiner building modern, capital-efficient refineries
Innovative North American refiner building modern, capital-efficient refineries, with a highly visible strategy for growth, in a highly profitable market TSXV: SUGR | OTCQB: SUGRF 5
Slide 6: Sucro operations at a glance
SUCRO OPERATIONS AT A GLANCE STRONG PRODUCTION AND 1 ADJUSTED EBITDA GROWTH 160,300 MT 5 221 180 $35 2023 Refining Volume Refining & Employees 160 Processing Facilities $30 140 $25 Long-term goal of one million 120 $20 metric tons of refining production 100 80 $15 by 2029 60 $10 40 $5 20 0 $0 2021 2
Slide 7: Sucro (TSXV: SUGR) share information
SUCRO (TSXV: SUGR, OTCQB: SUGRF) $33 M 53% C$194 M Share Information Adj. EBITDA1 Adj. EBITDA CAGR1,2 Market Cap3 Canada: TSX Venture SUGR United States: OTCQB SUGRF C$8.25 Shares outstanding6 23,543,085 $1.24 0.86 Share Price EPS4 Price to Insider Ownership ~77% (Closing share price on TSXV on July
Slide 8: In only 10 years we've organically built a valuable end-to-end sugar supply chain
IN ONLY 10 YEARS… WE’VE ORGANICALLY BUILT A BUILT & EXPANDED EXPANDED OUR PRODUCT VALUABLE END-TO-END SUGAR A NETWORK OF LOW CAP-EX LINE SUPPLY CHAIN REFINERIES Light Commercially Footprint Active in all 3 ~500,000 MT in North NAFTA Total Volume1 America countries Self- Refined + 2 new announced fac
Slide 9: Servicing the continued demand for sugar in North America
SERVICING THE CONTINUED DEMAND FOR SUGAR IN NORTH AMERICA ~12.9 M short tons1 US DELIVERIES OF REFINED SUGAR3 consumed annually Deliveries (000s of Short Tons) US Population (millions) 14,000 Consistent, predictable growth requires new refining capacity 2022 sugar deliveries: 11,581,000 Short Tons 4
Slide 10: Building value along our end-to-end sugar supply chain
BUILDING VALUE ALONG OUR END-TO-END SUGAR SUPPLY CHAIN REFINING: INBOUND LOGISTICS OUTBOUND LOGISTICS SOURCING SALES & WAREHOUSING & WAREHOUSING Diversified supplier Active supply chain We build low-cost facilities with Optimized locations Providing innovative base of raw sugar management & cost con
Slide 11: We build capital-efficient, modern refineries
WE BUILD CAPITAL-EFFICIENT, MODERN REFINERIES ü $$ Invested Major Canadian Q $$$$ Invested Hamilton Refinery Refiner ü Smaller, more Q Larger facility focused facility Q Higher CapEx costs ü Lower CapEx costs Q Less flexible ü Flexible production production capabilities capabilities ü Modern, purpos
Slide 12: Strategically located assets focused on North America
STRATEGICALLY LOCATED ASSETS FOCUSED ON NORTH AMERICA Refining & Processing Facilities Regional Offices Operational facility • Located in high Hamilton, Ontario population density, Under construction high volume, New Hamilton Facility underserved markets Operational facility Lackawanna, New York • P
Slide 13: Unique & competitively advantaged trade flow
Logistics UNIQUE & SUGR manages its own logistics; raw/refined sugar procurement is typically COMPETITIVELY purchased FOB Canada ADVANTAGED TRADE Raw sugar deficit (90% of demand requires imports) FLOW Canada Refined sugar self-sufficient (triopoly of refiners with anti- • Customers value Refined tr
Slide 14: Our refineries & facilities today
OUR REFINERIES & FACILITIES TODAY Our Refineries Volumes and Adjusted Gross Profit per MT Delivered2 Hamilton, Ontario Granular refinery 250 $160 230 Regions Served: Ontario, Canada $143.49 $140 200 $113.38 210 $120 $83.34 $100 150 160 $80 100 $60 Lackawanna, New York 84 $40 Granular refinery 50 Reg
Slide 15: Concurrent expansion projects to serve the North American market
3 CONCURRENT EXPANSION PROJECTS TO SERVE THE LARGE AND ATTRACTIVE NORTH AMERICAN MARKET UNDER EXPANSION UNDER CONSTRUCTION Chicago, Illinois Granular refinery - 2026 Projected Expansion: up to 350 k MT Budgeted Cost: US$20 M Lackawanna, New York Future New Hamilton Facility HAMILTON Storage HARBOUR
Slide 16: Future volume growth
FUTURE VOLUME GROWTH Refinery Volumes1 1,000 1000 (000 metric tons) 900 825 950 800 675 775 700 600 500 625 500 400 325 450 SUCRO’S GOAL: 300 ~1 million MT 230 200 275 210 of refining volume 100 160 0 2023 2024e 2025e 2026e 2027e 2028e 2029e by 2029 Hamilton - Current Hamilton - New Lackawanna Chica
Slide 17: Serving our blue-chip customers
SERVING OUR BLUE-CHIP CUSTOMERS Canada CANADA Recognized global brands including Low degree of customer 16% USA USA 16% 10 of the concentration, with no single customer representing 55% 54% MEXICO Mexico 20 largest >12% 16% 22% and most recognizable sugar-using food and beverage companies of revenue
Slide 18: Delivering the products customers want, how they want them
DELIVERING THE PRODUCTS CUSTOMERS WANT, HOW THEY WANT THEM Flexible Value-added Growing with Solutions Processing our Customers Higher colour sugar and Additional capacity to meet the Selling additional capacity to our reduced customer costs growing complexity and needs of existing commercial relati
Slide 19: Platform drives strong & growing profitability
PLATFORM DRIVES STRONG & GROWING PROFITABILITY Adjusted EBITDA1 USD $millions $51.0 2024 Adjusted EBITDA $50.0 Guidance range1,2 $49.0 EARNINGS GROWTH $40.0 53% Adj. EBITDA1 CAGR from $30.0 $33.1 2021 – 2023 $20.0 $22.4 STRONG BALANCE SHEET $10.0 $14.0 1.0 Adjusted Leverage Ratio1 $- 2021 2022 2023
Slide 20: This is the future of sugar
THIS IS THE FUTURE OF SUGAR. “Our team is finding new ways to capture value throughout the full sugar supply chain, with an emphasis on cost-efficient refineries that address the evolving needs of our customers. ” Jonathan Taylor, Sucro’s Founder and CEO TSXV: SUGR | OTCQB: SUGRF 20
Slide 21: Why invest?
WHY INVEST? A proven entrepreneurial Attractive industry Proven record management team, Large, growing, of significant and profitable successfully executing its predictable and profitable growth strategy Strong growth Effective use of Significant future growth performance currently capital resources
Slide 22: Thank you
THANK YOU Don Hill – Chairman, Sucro P: (305) 901-5222 E: IR@Sucro.us TSXV: SUGR| OTCQB: SUGRF 22
Slide 23: Appendices
APPENDICES TSXV: SUGR | OTCQB: SUGRF 23
Slide 24: Current Hamilton refinery
CURRENT HAMILTON REFINERY Sucro management was confident they could build a low- Location Hamilton, Ontario, Canada cost refinery, and with strong support from customers they commissioned the company’s first liquid sugar 2014 – liquid sugar production Year Operational production facility in Hamilton
Slide 25: Lackawanna refinery
LACKAWANNA REFINERY Building on the success of its Hamilton operations and its ü Located in an underserved market strong customer relationships, Sucro management next pursued expansion into the US market. In 2019, The ü Logistics synergies with nearby Canadian facility Company identified and secured
Slide 26: New Hamilton refinery
NEW HAMILTON REFINERY Leveraging the success of Lackawanna (see page 22) and Location Hamilton, Ontario, Canada the original Hamilton refinery, in late 2022 Sucro announced plans to construct a new, larger refinery in Construction 2024 – Phase I Construction start Hamilton. Timeline 2026 – Phase I O
Slide 27: Chicago refinery
CHICAGO REFINERY Sucro’s Chicago operations represent its only acquisition Location University Park, Illinois, United States of operational processing capacity. Sucro initially acquired the Chicago assets (referred to as “University Park”) in Construction 2024 – Start of construction Timeline 2026 –