Big Rock Brewery Inc. · TSX:BR
Big Rock Brewery — Investor Presentation (January 2022)
28 slides from Big Rock Brewery's investor presentation, January 2022
Slide 1: Investor Presentation
Investor Presentation January 2022 Big Rock Brewery Inc. (TSX: BR)
Slide 2: Legal Disclaimers
Legal Disclaimers Caution Regarding Forward-Looking Statements Certain statements contained in this presentation constitute forward-looking statements. These statements relate to future events or Big Rock's future performance. All statements, other than statements of historical fact, may be forward-
Slide 3: Company Overview
Company Overview Big Rock Brewery Inc. (TSX: BR)
Slide 4: Current Snapshot
Current Snapshot Big Rock Today Traded: TSX: BR Recent Price (as at 01/19/22): $5.14 Basic Shares Outstanding: 6.98 million Market Cap (as at 01/19/22): $35.9 million Founded: 1985 Employees: 130+ Brands: Breweries/Brewpubs: Calgary, Vancouver and Toronto 2021 Net Sales: $46.0 million Total Credit F
Slide 5: Investment Highlights
Investment Highlights 1. Brand 2. Owned manufacturing footprint with scale 3. EBITDA growth, free cash flow potential and strong balance sheet 4. Proven ability to innovate in beverage alcohol at scale 5. Trusted relationships 6. Experienced management team Big Rock Brewery Inc. (TSX: BR) 5
Slide 6: Our People
Our People MANAGEMENT Executive Prior Experience Wayne Arsenault Corey Nutrition Company Inc., Moosehead Breweries, Molson President & CEO Coors, Coca-Cola TRANSFORMATION SPECIALIST Bill Hahn Interim Chief Financial Officer Sundial Growers, Perpetual Energy Inc., PwC (effective February 11th, 2022)
Slide 7: The Big Rock Way
The Big Rock Way VISION MISSION STATEMENT Triple Our Size…compete for ‘Canada’s “All for Craft, Craft for All” Largest Independent Brewer’ VALUES THE BIG ROCK WAY Energizers with Edge who can Execute 90-day projects working ON the business Driving/encouraging OWNERS not RENTERS Big Rock Brewery Inc.
Slide 8: Summary of Asset Base
Summary of Asset Base Big Rock’s current portfolio of assets, production expertise and management experience provides a unique platform for future growth… CURRENT STATISTICS (ANNUAL) OTHER ASSETS Owned ▪ Brewing, packaging and warehousing ▪ Liberty Commons at Big Rock Brewery (leased) facilities, re
Slide 9: Diverse Portfolio
Diverse Portfolio Well positioned for 2021 shift to larger pack Well diversified portfolio – defensive against economic fluctuations sizes and variety packs Decreasing price/gross margin White Peaks Tree Big Rock Signature Hop Head Rock Creek Cider AGD Hard Tea Brewing ALLIED VALUE PARTNERS …and mor
Slide 10: Market Overview
Market Overview Big Rock Brewery Inc. (TSX: BR)
Slide 11: Near Term Headwinds in the Global Beer Industry
Near Term Headwinds in the Global Beer Industry Supply chain constraints… …and slow recovery in demand Global Beer CPI vs. Implied Raw Material yoy Inflation AB Beer Consumption Q2 2021 yoy “Global” beer CPI -11.7% yet to catch up to Source: AGLC raw materials inflation The COVID-19 pandemic continu
Slide 12: Managing Market Pressures
Managing Market Pressures Pressures Response Outcome Global supply chain disruptions Fixed-price contracts and large Increased cost-certainty Utilities driving higher prices in raw material purchases have related to utilities, utilities, distribution, and raw been executed or are being distribution,
Slide 13: Consumer Demand Shift - Sustainability
Consumer Demand Shift - Sustainability NORTH AMERICAN NEW PRODUCT CONTAINER TYPE GREENHOUSE GAS EMISSIONS 100% 120 90% 80% 75% 90 Kg C02e / 1000 containers 70% 67% 61% 60% 50% Other 50% 60 41% 40% 38% Cans 31% 30% 30 20% 10% 0% 0 2014 2015 2016 2017 2018 2019 2020 Plastic Bottle Glass Bottle Aluminu
Slide 14: Strong Long-Term Outlook
Strong Long-Term Outlook VOLUME AND VALUE CAGR 2019-2025E 10.0% NATIONAL BREWERIES 9.0% 8.5% 1,500 1,210 8.0% 1,200 % Change in 6.5% 900 Number of Breweries from 6.0% 600 2020/2019 300 4.1% 4.0% 3.4% 0 2.7% 2015 2016 2017 2018 2019 2020 2.1% 2.3% +8.0% Source: Beer Canada 2.0% 1.5% Since 2015, craft
Slide 15: Strategy
Strategy Big Rock Brewery Inc. (TSX: BR)
Slide 16: Long Term Strategy
Long Term Strategy Current state of Big Rock, transitioning into the Fill Up stage in 2022 EXECUTION ROAD MAP 1 – Gear Up 2 – Fill Up 3 – Drink Up Strategic Capital Plan Pursue Material Volume Growth in Calgary M&A and Brand Investment OPTIMIZE CAPACITY / IMPROVE UTILIZATION GROW HIGH WASTE REDUCTIO
Slide 17: New Calgary Can Line & Pasteurizer
New Calgary Can Line & Pasteurizer Enhanced Canning Capability ▪ Increased efficiency into packaging 355ml standard, 355ml sleek, and 473ml can formats ▪ Enhancing our can format capability further enables packaging customization for both owned brands and co-pack partners Pasteurization Driving Natu
Slide 18: Positioned for Growth
Positioned for Growth PRUDENT BALANCE SHEET MANAGEMENT… …ASSET-DRIVEN SIGNIFICANT GROWTH ON THE HORIZON Debt1 / EBITDA Snapshot Strategic Capital Plan – Illustrative Growth Scenario Metric Existing Operations^ Illustrative Growth* Deployment of 2017 2020 2021 capital Q3-21 Total Volume 200,000 – 220
Slide 19: Long Term Value Creation
Long Term Value Creation FROM Value Creation TO WHY? <30% Gross Margins ✓ People >40% Gross Margins ▪ High fixed overhead costs (especially BC & Ontario) ▪ Low fixed overhead costs ✓ Asset Base Operating Leverage ▪ >18% EBITDA margins ✓ Diversified Portfolio ▪ <10% EBITDA margins ▪ >80% packaging ca
Slide 20: Investor & Contact Information
Investor & Contact Information Stock Exchange and Listed Securities Share Registrar and Transfer Agent Big Rock Brewery Inc. is listed on the Toronto Stock Exchange (TSX) under the Odyssey Trust Company ticker symbol “BR” 1230 – 300 5th Avenue SW Calgary, Alberta T2P 3C4 Investor and Analyst Inquiri
Slide 21: Appendix
Appendix Big Rock Brewery Inc. (TSX: BR)
Slide 22: History of Big Rock
History of Big Rock 1985 Big Rock was founded by Ed McNally – Western Canada’s first Craft Brewery • A retired lawyer and barley farmer, Ed saw an opportunity to offer Albertans an alternative to the corn syrup laced North American lagers utilizing Calgary’s access to Rocky Mountain water and the pr
Slide 23: Historical Performance Summary
Historical Performance Summary Share Price (C$) 1.4 $20.00 Founder, Ed McNally, passes COVID-19 1.2 Pandemic Dividend suspended, New Leadership: $15.00 Vancouver brewery opens Wayne Arsenault 1 NDP “Grant” mark- up structure: 0.8 +60% mark-up $10.00 increase 0.6 0.4 $5.00 Provincial mark-up to retur
Slide 24: Heritage of Innovation
Heritage of Innovation ✓ New Director of Brewing Operations and Brewmaster, Graham Kendall, brings over 30 A History of Innovations & Awards 2020 Innovations, including but not limited to… years of industry and technical experience ▪ Founded on a tradition of innovation, from AB InBev, Beam Suntory
Slide 25: Big Rock in the Community
Big Rock in the Community Supporter of Community British Retail Federal Sustainability Consortium Government Committee Advocacy ✓ LED conversions – QUALITY bulbs & fixtures ✓ Streamline RIGOROUS TESTING packaging materials TRACEBILITY (Aluminium recovered) ― Waste water treatment ✓ Actively advocati
Slide 26: Etobicoke Brewery Divestiture Summary
Etobicoke Brewery Divestiture Summary TRANSACTION SUMMARY KEY TAKEAWAYS Total Consideration: $2.1 million cash OPTIMIZES ASSET BASE (net of transaction costs) ▪ Increases margins due to ▪ Asset sale agreement cash cost savings and ▪ Assignment of lease complete earnings improvement ▪ Focuses the bus
Slide 27: 2021 Capital Plan
2021 Capital Plan Previous Capital Plan: $8.8 million Revised Capital Plan: $9.5 million* 1 – Gear Up 2 – Fill Up Strategic Capital Plan Pursue Material Volume Growth in Calgary Growth Capital: $8.8 million ▪ Can-line Upgrade On Strategy ▪ Tunnel Pasteurization OPTIMIZE CAPACITY / IMPROVE UTILIZATIO
Slide 28: Big Rock Brewery Inc. (TSX: BR)
Big Rock Brewery Inc. (TSX: BR)
Big Rock Brewery — Investor Presentation (January 2022) on 6ix