Sunopta — William Blair Growth Stock Conference 2023
33 slides from Sunopta's conference presentation, Jun 8, 2023
Slide 1: Investor Presentation
Investor Presentation June 8, 2023 © SunOpta Inc. 2023
Slide 2: Forward Looking Statements
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Forward Looking Statements This presentation may include forward-looking statements and therefore is subject to important risks and uncertainties. Actual results could differ materially from the conclusions, forecasts and projec
Slide 3: We have a clear destination
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 We have a clear destination VISION Fuel the Future of Food …for healthier people and a healthier planet MISSION Build a multi-billion dollar, value-added, sustainable, plant-based business that creates significant value for all
Slide 4: Anchored by five strategic imperatives
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Anchored by five strategic imperatives Transform 01 the portfolio through structural 1. changes and focused prioritization of resources Fortify our competitive advantages in our 2. margin accretive categories Leverage our core c
Slide 5: The execution of our strategy has transformed our profitability
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 The execution of our strategy has transformed our profitability… Diversified Value-added, agribusiness high-growth focus Trended Adjusted EBITDA1 $150M ~2x $120M $100M ~4x $84M $59M $61M $20M 2019 2020 2021 2022 2023F 2024F 2025
Slide 6: And positioned the business for sustained growth
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 …And positioned the business for sustained growth $2B PORTFOLIO ROLE GROWTH PROFILE NUTRITION BEVERAGES Strategic – defined, high Accelerated Growth growth pockets with strong BETTER-FOR-YOU ~1.5x overall company SNACKING abilit
Slide 7: Growth Plan
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 SunOpta has a Solid Growth Plan to Continue Delivering Exceptional Shareholder Value Adjusted EBITDA Trend (1) Continuing operations Growth Plan • Invest in capacity and capabilities to grow the core plant-based beverage busines
Slide 8: Our strategic imperatives
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Our strategic imperatives Transform the portfolio through structural 011. changes and focused prioritization of resources Fortify our competitive advantages in our 2. margin accretive categories Leverage our core capabilities to
Slide 9: We continue to evolve the portfolio to focus on value-add segments
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 We continue to evolve the portfolio to focus on value-add segments Past(1) Present Future 30% 70% 80% 70% 30% 20% Commodity Value-Add (1) FY2019 © SunOpta Inc. 2023 9
Slide 10: We are targeting end markets that share a common set of characteristics
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 We are targeting end markets that share a common set of characteristics Attractive Industry • ‘Picks & shovels’ plays in capacity constrained industries 1 & End Markets • Serving resilient, high growth, supply constrained market
Slide 11: Our strategic imperatives
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Our strategic imperatives Transform the portfolio through structural 011. changes and focused prioritization of resources Fortify our competitive advantages in our 2. margin accretive categories Leverage our core capabilities to
Slide 12: Supported by best-in-class operating performance and execution
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Supported by best-in-class operating performance and execution Operational Scaled Aggressive Integrated Service Expertise Networks Investment Solutions Excellence Highest National, Added capacity Tailored >99% LTM performing Tet
Slide 13: Our new facility fortifies SunOpta's competitively advantaged capabilities
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Our new facility fortifies SunOpta’s competitively advantaged capabilities enhancing Placeholder the value we deliver to our customers SUNOPTA COMPETITIVE VALUE DERIVED BY OUR TEXAS ADVANTAGES CUSTOMERS IMPACT World class operat
Slide 14: Our strategic imperatives
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Our strategic imperatives Transform the portfolio through structural 011. changes and focused prioritization of resources Fortify our competitive advantages in our 2. margin accretive categories Leverage our core capabilities to
Slide 15: Our core growth platforms serve a ~$15B TAM
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Our core growth platforms and supporting capabilities serve a ~$15B TAM (vs. $3B in 2019) and an extended TAM of $100B Core 3-year Total 3-year How we Participate TAM CAGR TAM CAGR Packaged Beverage Nutritional Beverages Co-Man
Slide 16: We are prioritizing three growth platforms
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 We are prioritizing three growth platforms that present outsized growth potential for SunOpta Scaling Accelerating Expanding in Plant Based Better-For-You Snacking Nutritional Beverages ✓ Large & growing TAM ✓ Large & growing TA
Slide 17: The cornerstone of our business is plant-based milks and creamers
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 The cornerstone of our business is plant-based milks and creamers, household staples that are outperforming the category OUTPERFORMING OTHER MILKS & CREAMERS ARE HOUSEHOLD STAPLES PLANT-BASED SEGMENTS 50% 74% 40% 40% Eggs Creame
Slide 18: SunOpta is the leading supplier in shelf stable and base extraction segments
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 SunOpta is the leading supplier in the shelf stable and base extraction segments that require more specialized manufacturing Brand Brand in in MULO Natural Oat Milk Almond Milk Soy Milk Brand Brand Brand Rice Milk Aseptic Tea Br
Slide 19: Our strategic imperatives
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Our strategic imperatives Transform the portfolio through structural 011. changes and focused prioritization of resources Fortify our competitive advantages in our 2. margin accretive categories Leverage our core capabilities to
Slide 20: We made significant progress against our ESG commitments in 2022
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 We made significant progress against our ESG commitments in 2022 and have focused priorities for 2023 Operations Supply Chain Product / Packaging • Pursuing Zero Waste • Transparency • Product Integrity • Focus on Energy & Water
Slide 21: Our strategic imperatives
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Our strategic imperatives Edit titlethe Transform here portfolio through structural 011. changes and focused prioritization of resources Edit text here Edit title Fortify here our competitive advantages in our 2. margin accretiv
Slide 22: Our CULTURE is a differentiator and FUNDAMENTAL to our success
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Our CULTURE is a differentiator and FUNDAMENTAL to our success SunOpta Organizational Health Survey 92% Employee Participation Rate in Most Recent Survey Overall Score Purpose Strategy +13% 4.3 I have a clear +22% 4.2 I have a c
Slide 23: Financial Algorithm
Financial Algorithm © SunOpta Inc. 2023
Slide 24: Framing the FY2023 through FY2025 outlook
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Framing the FY2023 through FY2025 outlook ▪ Roll-forward of 2023 macro environment, including: – Constant commodity costs No reforecast No reforecast – Interest rates of the global of changing – Foreign exchange rates commodity
Slide 25: Financial outlook through FY2025
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Financial outlook through FY2025 FY2022 FY2023 FY2024 FY2025 Actuals Guidance (1) Outlook(2) Outlook(2) REVENUE $935M $1B - $1.05B $1.1B $1.25B ADJUSTED $84M $100M $120M $150M EBITDA OPERATING ($40M) $30M $60M $100M FREE CASH FL
Slide 26: Our investments position SunOpta for sustained growth beyond FY25
SunOpta Inc. Investor Presentation Fueling the Future of Food June 2023 Our investments and strategic pursuits position SunOpta for sustained growth beyond FY25 METRIC AMBITION ASSUMPTIONS Revenue Sustained market growth in core platforms; 10%+ Growth market share gains from new and future capacity
Slide 27: Appendix
Appendix Key Financial Metrics Reconciliation of Non-GAAP Measures This presentation includes certain measures not derived in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Such measures should not be considered substitutes for any measures de
Slide 28: Income Statement
Key Financial Metrics Income Statement Continuing Operations ($ millions, except per share amounts) Q1 2023 Q1 2022 Revenues (1) $223.9 $240.2 Gross profit (2) 28.2 28.4 As % of Revenue 12.6% 11.8% Operating income (3) (4) 2.5 4.0 As % of Revenue 1.1% 1.7% Adjusted earnings (4) 6.0 0.9 Adjusted earn
Slide 29: Balance Sheet & Debt Capital
Key Financial Metrics Balance Sheet & Debt Capital As at ($ millions) April 1, 2023 $ 187.2 Working Capital (1) Total Assets 878.1 Asset-Based Credit Facilities 199.3 Five-year, $230 million asset-based revolving credit facility, subject to borrowing base capacity (the “Tranche A Subfacility”), a tw
Slide 30: Reconciliation of U.S. GAAP Results to Adjusted Earnings and Adjusted EPS
Reconciliation of U.S. GAAP Results to Adjusted Earnings/Loss and Adjusted EPS (Slide 28) The following table presents a reconciliation of adjusted earnings (loss) from loss from continuing operations, which we consider to be the most directly comparable U.S. GAAP financial measure. a) For the first
Slide 31: Reconciliation of U.S. GAAP Results to Operating Income and Adjusted EBITDA
Reconciliation of U.S. GAAP Results to Operating Income/Loss and Adjusted EBITDA (Slide 7 and 28) The following table presents a reconciliation of segment operating income and adjusted EBITDA from loss from continuing operations, which we consider to be the most directly comparable U.S. GAAP financi
Slide 32: Reconciliation of U.S. GAAP Results to Operating Income and Adjusted EBITDA
Reconciliation of U.S. GAAP Results to Operating Income/Loss and Adjusted EBITDA (Slide 5 and 7) The following table presents a reconciliation of segment operating income/loss and adjusted EBITDA from net earnings/loss, which we consider to be the most directly comparable U.S. GAAP financial measure
Slide 33: 7078 Shady Oak Road Eden Prairie, Minnesota
7078 Shady Oak Road Eden Prairie, Minnesota 55344 www.sunopta.com © SunOpta Inc. 2023