Kp Tissue, Inc. · TSX:KPT
Kp Tissue — Shareholder Meeting (June 2023)
21 slides from Kp Tissue's shareholder meeting presentation, Jun 20, 2023
Slide 1: Annual Meeting of Shareholders
ANNUAL MEETING OF SHAREHOLDERS June 20, 2023
Slide 2: Forward-Looking and Cautionary Statements
F O R W A R D - LO O K I N G A N D C AU T I O N A RY S TAT E M E N T S This Presentation on behalf of KP Tissue Inc. (the “Corporation” or “KPT”) does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it
Slide 3: Agenda
AG E N DA • Opening Remarks and Introduction • Call Meeting to Order, Appoint Secretary and Scrutineer • Formal Business of Meeting • Notice of Meeting, Quorum • Presentation of the 2022 Financial Statements and Auditors’ Report • Election of Directors • Re-appointment of Auditors • Termination of F
Slide 4: Dino Bianco, Chief Executive Officer
DI NO BI ANC O CHIEF EXECUTIVE OFFICER 4
Slide 5: Our Vision
OUR VISION TO BE THE MOST TRUSTED AND BEST LOVED TISSUE COMPANY IN NORTH AMERICA. eS MAKING EVERYDAY LIFE MORE COMFORTABLE.
Slide 6: Underlying Strategies
5 U N D E R LY I N G S T R AT E G I E S Drive Strong Revenue, Profit and Shareholder Value in a Sustainable Manner 1 2 3 4 5 Consumer As Our Expand Our End-to-End Supply Deliver Winning Team & Compass Business Footprint Chain Excellence Sustainability Culture 6
Slide 7: Corporate Highlights — 2022
PROGRESSING ALONG RECOVERY CURVE C O R P O R AT E H I G H L I G H T S — 2 0 2 2 • Implemented multi-faceted strategy, including pricing and cost management initiatives, to counter inflation • Revenue reached $1.7 billion, up 14.8% year-over-year • Adjusted EBITDA(1) decreased 24.4% to $116.0 million
Slide 8: Financial Performance Trend
FINANCIAL PERFORMANCE TREND Revenue Adjusted EBITDA(1) and Net Income (in C$ millions and including Mexico) Adjusted EBITDA Margin(1) 1,681 13.0% 1,516 250 .0 1,434 1,465 1,370 10.1% 197.8 10.5% 200 .0 8.6% 153.4 116.0 145.0 150 .0 6.9% 118.3 45.4 42.0 100 .0 27.3 50. 0 2.1 0.0 2018 2019 2020 2021 2
Slide 9: Segment and Geographic Split
2022 REVENUE SEGMENT AND GEOGRAPHIC SPLIT By Geography 59% 41% Canada U.S. 11.4% 20.0% Canada U.S. By Segment 10.6% 40.1% Consumer AFH 83% 17% Consumer AFH 14.8% Total Revenue 9
Slide 10: Q1 2023 Results
Q 1 2 0 2 3 R E S U LT S Geographic Revenue Split $17.9M +7.4% Canada $451.0M $50.0M Q1 Revenue Q1 Adjusted EBITDA(1) $34.4M 13.1% 71.9% +22.1% over Q1 2022 over Q1 2022 U.S. (1) Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparable GAAP measure. 10
Slide 11: Inflation, Pricing and Cost Management — Q1 2023
I N F L AT I O N , P R I C I N G A N D C O S T M A N A G E M E N T — Q 1 2 0 2 3 INFLATION PRICING COST MANAGEMENT • Inflation has slowed but still • All announced pricing has • Cost management initiatives above prior year been implemented ongoing • Up 4-6% compared to Q1 • Continuing to monitor mar
Slide 12: Reinvesting in Brands to Grow Share
R E I N V E S T I N G I N B R A N D S TO G ROW S H A R E Share fluctuations should recover as selling prices have stabilized Source: Nielsen. Dollar market share for the 52-week period ended March 25, 2023. 12
Slide 13: Focused Brand Support
FOCUSED BRAND SUPPORT • Reinvesting to support brands and grow share • Quarterly marketing focused on multi-brand activities with 42nd Scotties Tournament of Hearts and third year of the Kruger Big Assist program • Significant investment around Made-in-Canada positioning • Bonterra continuing to mak
Slide 14: AFH Segment
AFH SEGMENT • Volume remained solid in Q1 2023, 9% higher than Q1 2022 • Three consecutive quarters of positive Adjusted EBITDA • AFH operations performing above historical level • Monitoring potential impact of economic slowdown 14
Slide 15: Balance Sheet
BA L A N C E S H E E T (Million CAD$, unless otherwise noted) Q1 2023 Q4 2022 Cash 45.3 78.4 Current Portion of Long-term Debt 34.4 34.4 Long-term Debt 1,096.1 1,077.3 Net Debt 1,085.2 1,033.3 LTM Adjusted EBITDA1 136.9 116.0 Net Debt/LTM Adjusted EBITDA1 7.9x 8.9x • Cash decreased by $33.1 million
Slide 16: 2022 Awards
RECOGNIZING OUR EMPLOYEES’ HARD WORK AND COMMITMENT 2022 AWARDS 16
Slide 17: Sustainability Focus
KEY TARGETS TO ACHIEVE BY 2030 S U S TA I N A B I L I T Y F O C U S 17
Slide 18: Part of Our Purpose
PROGRESS MADE IN 2022 PA R T O F O U R P U R P O S E KEY MET RICS 13% REDUCTION IN SCOPE 1+2 GHG EMISSIONS (1) 100% THIRD-PARTY CERTIFIED FIBRE 38% REDUCTION OF WATER CONSUMPTION (1) 63% IMPROVEMENT IN EMPLOYEE HEALTH & SAFETY (2) REDUCTION IN VIRGIN PLASTICS 3% PACKAGING IN BRANDED PRODUCTS (3) 230
Slide 19: Investing in Our Business to Drive Long-Term Value
ALONG ROAD TO RECOVERY I N V E S T I N G I N O U R B U S I N E S S TO D R I V E L O N G - T E R M VA L U E • Continuing to deliver strong top-line growth • Monitoring pricing margins and input costs • Reinvesting in brands to grow share • Sherbrooke expansion moving forward and Memphis turnaround pr
Slide 20: Questions
KP QzA WWW.KPTISSUEINC.COM
Slide 21: Thank You
@KP THANK YOU WWW.KPTISSUEINC.COM