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INVESTOR PRESENTATION – RBC CAPITAL MARKETS CONSOLIDATORS CONFERENCE
March 29, 2016 KEITH DECKER, PRESIDENT & CEO HEATHER KEELER-HURSHMAN, DIRECTOR, IR
PAUL JEWER, EVP & CFO
© 2015 High Liner Foods – CONFIDENTIAL 2
DISCLAIMER
Certain statements made in this presentation are forward-looking and are subject to important risks,
uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate
and may differ materially from actual future events or results. Actual results or events may differ
materially from those predicted. Certain material factors or assumptions were applied in drawing the
conclusions as reflected in the forward-looking information. Additional information about these
material factors or assumptions is contained in High Liner Foods’ Annual Report available on SEDAR
(www.sedar.com) and the Investor Information section of High Liner Foods’ website
(www.highlinerfoods.com).
© 2015 High Liner Foods – CONFIDENTIAL 3
Presentation currency:
• High Liner Foods began reporting its financial statements in USD in 2012, however its common
shares trade on the TSX and are quoted in CAD and therefore references in this presentation
to share price, dividends and market cap are in CAD. Investors are reminded to take into
consideration the USD/CAD exchange rate when calculating financial ratios, including
dividend payout and share price-to-earnings ratios.
• 2010, 2011 and 2012 are fully converted and restated under IFRS rules to USD; previous years
Canadian GAAP statements are converted from CAD at the annual period-end and average
USD/CAD exchange rates and remain as originally reported in Canadian GAAP.
Stock split:
• Effective May 30th, 2014, HLF common shares were split on a 2-for-1 basis. All share and per
share information in this presentation reflect retrospective application of this split.
PRESENTATION NOTES
COMPANY OVERVIEW
© 2015 High Liner Foods – CONFIDENTIAL 5
COMPANY OVERVIEW
TSX LISTINGS DATA
1 Public company since the 1960’s; listed on TSX in 1971 2 Source: TSX March 23, 2016 closing price 3 Effective August 5, 2015
TSX symbol1 HLF
Recent price2 CAD$15.00
52-week range2 CAD$10.10 - $25.20
Shares outstanding ~30.87M
Total market cap2 ~CAD$463M
Annual dividend3 CAD$0.48 per share
Current yield3 ~3.2%
HLF Three Year Share Price History2
© 2015 High Liner Foods – CONFIDENTIAL 6
COMPANY OVERVIEW
VISION MISSION VALUES
To be the leading supplier
of frozen seafood in North
America
To radically simplify
selecting, preparing and
enjoying seafood at its
best
Customer-focused
Innovative
Responsible
VISIONS, MISSION AND VALUES
© 2015 High Liner Foods – CONFIDENTIAL 7
COMPANY OVERVIEW
INDUSTRY DRIVERS
Long-term growth influenced by strong North American demographics
An aging,
health-conscious
population
Health benefits tied to eating fish
45+ years of age
account for half of seafood
consumption
• Fisheries recovering around the world largely due to the sustainability efforts over the last
ten years
• Growth from aquaculture species
• Long-term demand growth still greater than supply
© 2015 High Liner Foods – CONFIDENTIAL 8
COMPANY OVERVIEW
HIGH LINER FOODS CORPORATE HISTORY
1899 WC Smith
founded
(salt fish)
1945 National
Sea
Products
created
1999
Name
change to
High Liner
Foods
1926 High Liner
brand
created
1986 Fisher Boy
acquisition
2007 FPI
acquisition1
2010 Viking
acquisition
2011 Icelandic
USA
acquisition2
2013 American
Pride
Seafoods
acquisition3
2014 Atlantic
Trading
Company
acquisition4
1982 Commodore
private label
acquisition
1992 Northern
Cod
moratorium
2003/04 High Liner
sells its
fishing
assets
2016
Today’s
High Liner
Foods
1 Acquired FPI’s North American marketing & manufacturing businesses 2 In 2005, Icelandic & Samband of Iceland merged 3 Acquired October 1st, 2013 4 Acquired October 7th, 2014
© 2015 High Liner Foods – CONFIDENTIAL 9
COMPANY OVERVIEW
BUSINESS OVERVIEW
73%
27%
Geography
USA (incl. Mexico)
Canada
79%
21%
Branding
HLF Brands Other
63%
37%
Channel
Foodservice Retail
66%
34%
Product Form
Value-added Other
* The charts above reflect the Company’s business profile based on 2015 sales
• The North American leader in value-added frozen seafood
• In Canada, #1 market position in retail and largest foodservice supplier
• In the U.S., estimated #2 in retail value-added (including private label) on a volume basis and the leading
supplier of value-added products in foodservice
• Vision is to be the leading supplier of frozen seafood in North America
© 2015 High Liner Foods – CONFIDENTIAL 10
COMPANY OVERVIEW
ADVANCED BUSINESS MODEL WITH MARKET BREADTH
Broadest Market
Reach in Industry Market Leading
Brands
Diversified Global
Procurement
Frozen Food
Logistics Expertise
Innovative Product
Development
2X the size of largest
competitor in retail &
food service channels
(100% ACV) in
Canada
Largest grocery-chain
supplier of private
label value-added
seafood in U.S. and
Canada
The largest food
service suppliers of
value-added seafood
in U.S.
Estimated #2 supplier
of seafood by volume
in U.S. retail channel
including private label
and niche brands
Strong global
procurement built on
long-term relationships
with network of quality
suppliers
Full-time procurement
and quality assurance
personnel oversee
procurement activities
in Asia
Geographically diverse
procurement territory
mitigates changes in
the cost of raw
materials
State-of-the-art web-
based IT system to
manage logistics and
quality for overseas
suppliers
Logistics expertise
allows timely delivery
of raw materials and
finished goods from
over 20 countries to
all key customers
Seamless logistics
process approach
tailored to be cost-
effective and
customer oriented
Scheduled deliveries
to major customers
on regular basis
© 2015 High Liner Foods – CONFIDENTIAL 11
COMPANY OVERVIEW
MANUFACTURING FOOTPRINT
• Continuous assessment of
manufacturing capabilities vs. current
and future requirements to ensure low-
cost and efficient operations
• Value-added fish operations at New
Bedford facility to cease by the end of
Q3 2016 to eliminate excess
manufacturing capacity, with expected
annual pre-tax savings of ~ $7.0M
Lunenburg, NS (Can)
Capacity p.a.: 50M lbs
Utilization: 65%
Portsmouth, NH (U.S.)
Capacity p.a.: 84M lbs
Utilization: 71% New Bedford, MA (U.S.)
Scallop Processing
Capacity p.a.: 12M lbs
Utilization: 41%
New Bedford, MA (U.S.)
Value-Added Fish
Processing
Capacity p.a.: 87M lbs
Utilization: 50%
Newport News, VA (U.S.)
Capacity p.a.: 94M lbs
Utilization: 64%
Aggregate production capacity of ~327M lbs per annum (240M lbs excluding
New Bedford value-added fish operations), with the ability to increase 12M lbs
p.a. with minimal capital investment
© 2015 High Liner Foods – CONFIDENTIAL 12
COMPANY OVERVIEW
LEADER IN SUSTAINABILITY
• Committed to sourcing all our seafood from “certified sustainable or responsible” fisheries and aquaculture
• In cooperation with NGOs, industry partners and other like-minded businesses, we have assumed a
leadership role in substantial fishery and aquaculture improvements around the world
• Recognized as a global leader in driving best practice improvements in wild fisheries and aquaculture
• In late 2015, High Liner Foods ranked top seafood company in North American and one of the top ten
worldwide in a comprehensive benchmark report by SeafoodIntelligence.com that examined seafood
companies’ sustainability reporting and transparency
• In early 2015, High Liner Foods and Bill DiMento, VP of Quality Assurance, Sustainability and Government
Affairs, awarded “Grand Champion Award” by SeaWeb, an award SeaWeb created to recognize
outstanding contribution across all four of the key areas of global sustainability that it looks to recognize
parties for: leadership, vision, innovation and advocacy
• Continued focus on improved sustainability across our supply chain beyond the seafood we source and
other areas of corporate social responsibility.
PERFORMANCE
© 2015 High Liner Foods – CONFIDENTIAL 14
PERFORMANCE
FISCAL 2015 HIGHLIGHTS
Strategic:
• Significant progress made on supply chain optimization initiatives focused on improved efficiency and cost
savings at both the plant and entity level ($6M+ savings realized in 2015 related to these initiatives)
• Organic growth challenges due to a number of external and internal factors
• Completed succession planning at the senior-most level of the Company
Financial (compared to Fiscal 2014):
• Achieved $1B in sales for the second time reflecting recent acquisitions
• Lower sales volume reflecting organic growth challenges and an additional week of sales in Fiscal 2014
• Lower sales revenue, Adjusted EBITDA and Adjusted Net Income reflecting lower sales volume, increased raw
material prices not fully recovered through price increases and a significant decline in the average USD/CAD
exchange rate, partially offset by savings related to supply chain optimization initiatives
• Increased the quarterly dividend in Q2 by 14.3% to $0.12 per share ($0.48 on an annualized basis)
• Improved leverage reflecting the repayment of debt with cash flows provided by operating activities
Operational:
• Ceased operations in Q2 at our previously leased manufacturing facility in Malden, MA
• Restructuring and recruitment of new talent to certain key sales positions to address certain internal sales
execution and promotional challenges
© 2015 High Liner Foods – CONFIDENTIAL 15
PERFORMANCE
2016 strategic goals set a strategic direction consistent with the prior year, which is to grow our
business, operate it as efficiently as possible and ensure that we have the right talent:
1. Organic sales growth
• Growing our base business is the primary focus in 2016
• Commercial excellence, customer focused and innovative
2. Operating efficiency and cost management
• Complete the outstanding supply chain optimization activities associated with achieving a
minimum of $20M in annual savings on a run-rate basis (full benefit to be realized in 2017).
Continued improvement in sales volume trends will help to realize this full benefit.
• “High Liner Foods operating system” and leveraging our size across the business
3. Talent management
• Acquiring, developing and retaining the best talent are critical to the success of the
company
• Formal talent identification process, active development of our future leaders and a new
performance management system
2016 STRATEGIC GOALS
© 2015 High Liner Foods – CONFIDENTIAL 16
PERFORMANCE
SALES HISTORY
$-
$200
$400
$600
$800
$1,000
$1,200
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
US
D m
illio
ns
$1.0B
© 2015 High Liner Foods – CONFIDENTIAL 17
PERFORMANCE
EBITDA HISTORY
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
US
D m
illio
ns
Standardized EBITDA: Earnings before interest, taxes, depreciation and amortization as reported in the Company’s annual audited financial statements
Adjusted EBITDA: Standardized EBITDA as defined above, adjusted to exclude: non-operating items associated with business acquisition and integration
activities; other non-routine or one-time costs; and the impact of share-based compensation expense related to the Company’s stock price
$78.2M
© 2015 High Liner Foods – CONFIDENTIAL
PERFORMANCE
DILUTED EPS AND ROE HISTORY
0%
5%
10%
15%
20%
25%
30%
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Retu
rn o
n E
qu
ity
Dilu
ted
Ea
rnin
gs
per
Sh
are
Diluted EPS Adjusted Diluted EPS Return on Equity
$1.14
Diluted EPS is net income as reported divided by the average diluted number of shares
Adjusted Diluted EPS is based on Adjusted Net Income(1)
(1)Adjusted Net Income is net income as reported excluding the after-tax impact of: business acquisition, integration and other non-routine costs; accelerated
depreciation on equipment as part of the cessation of operations; accelerated amortization of deferred financing costs and other items resulting from debt
refinancing and amendment activities; non-cash expense (income) related to marking-to-market an embedded derivative associated with the LIBOR floor
included in long-term debt; non-cash expense (income) related to marking-to-market interest rate swaps not designated for hedge accounting; and share-based
compensation expense.
18
© 2015 High Liner Foods – CONFIDENTIAL
$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
$0.50
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
An
nu
al D
ivid
en
d p
aid
pe
r S
ha
re (
$C
AD
)
19
PERFORMANCE
DIVIDEND HISTORY
12-year CAGR (2003 to 2015): 28%
$0.465
© 2015 High Liner Foods – CONFIDENTIAL 20
PERFORMANCE
DEBT LEVERAGE RATIO
Net interest-bearing debt / rolling 12 month Adjusted EBITDA
4.4x
3.4x 3.2x
3.9x 4.0x
4.4x
4.0x
3.0x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
Dec 31/11 Pro forma Icelandic
Acquisition
Dec 29/12 Sep 28/13 Pre-American
Pride Acquisition
Dec 28/13 Sep 28/14 Pre-Atlantic
Trading Acquisition
Jan 3/15 Jan 2/16 Target
© 2015 High Liner Foods – CONFIDENTIAL 21
PERFORMANCE
2015 SALES (USD MILLIONS)
$1,051.6 $1,001.5
$0
$200
$400
$600
$800
$1,000
$1,200
2014 2015
• The estimated benefit associated with an
additional week of sales in Fiscal 2014
was $20M (5.5M lbs)
• Sales in domestic currency were
$1,073.8M in 2015 and $1,083.5M in
2014
• Weaker CAD decreased reported USD
sales by $40.9M relative to the
conversion impact last year
• Lower sales volume, partially offset by
increased prices (net of increased
promotional spending in an effort to
improve sales volume trends)
• Pounds sold were 284.4M in 2015 and
307.6M in 2014
© 2015 High Liner Foods – CONFIDENTIAL
PERFORMANCE
2015 EBITDA (USD MILLIONS)
$83.3 $78.2
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2014 2015
Standardized EBITDA Adjusted EBITDA
22
• The estimated benefit associated with an
additional week of sales in Fiscal 2014
was $1.6M of Adjusted EBITDA
• Adjusted EBITDA in domestic currency
was $83.9M in 2015 (7.8% of sales) and
$85.4M in 2014 (7.9% of sales)
• Lower sales volume and gross margin as
a % of sales, partially offset by lower
distribution and SG&A expenses
• Lower gross margin as a % of sales
reflects cost increases not fully
recovered through price increases,
increased promotional spending, change
in product mix in the U.S. and lower
margins on Atlantic Trading products
• Lower distribution and SG&A costs
reflect supply chain optimization and
other savings
© 2015 High Liner Foods – CONFIDENTIAL 23
PERFORMANCE
2015 DILUTED EPS (USD)
$1.24
$1.14
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
2014 2015
Diluted EPS Adjusted Diluted EPS