Superior Plus Corp · TSX:SPB
Superior Plus — Investor Presentation (November 2018)
21 slides from Superior Plus's investor presentation, November 2018
Slide 1: Investor Update
Superior Plus Corp. TSX: SPB Investor Update November 2018
Slide 2: Forward-Looking Statements and Information
Forward-Looking Statements and Information This presentation is for information purposes only and is not intended to, and should not be construed to constitute, an offer to sell or the solicitation of an offer to buy, securities of Superior Plus Corp. (“Superior"). This presentation and its contents
Slide 3: Superior Plus Overview
Superior Plus Overview Superior Plus operates two businesses, Energy Distribution and Specialty Chemicals, with a focus Shares outstanding(2) 174.9 million on: TSX share price(2) $10.52 • Organic Growth • Acquisitions Market Capitalization(2) $1.8 billion • Continuous improvement • Safety Enterprise
Slide 4: Superior Overview
Superior Overview Energy Distribution Specialty Chemicals • Leading distributor and marketer of propane in Canada Production and sales of: • Sodium Chlorate products • Sales volume of 2.1 billion litres(1) • One of the largest producers in North America and globally • Distribution of retail and whol
Slide 5: Recent Developments
Recent Developments ＞ Announced 2018 third quarter results, confirming 2018 Adjusted EBITDA guidance to be in the range of $345 million to $375 million, and Adjusted Operating Cash Flow (“AOCF”) per share before transaction costs financial outlook to be $1.75 to $1.95. Superior also introduced its 2
Slide 6: Energy Distribution Summary
Energy Distribution Summary Business Summary Geographic Footprint Leading retail supplier of propane in Canada and established footprint in the Eastern U.S propane and retail heating oil markets Growth opportunities through new markets and industry consolidation Leading competitive position with
Slide 7: Energy Distribution - Segment Summary
Energy Distribution - Segment Summary Business & Product Summary Cdn. Propane Retail Distribution Volumes(1) > Superior Propane is Canada’s leading propane distribution company Residential Energy − Founded in 1951, Superior Propane is an iconic 65-year old Canadian brand with ~40-45% market share in
Slide 8: Propane Distribution Overview
Propane Distribution Overview SUPPLY LOGISTICS DISTRIBUTION/MARKETING REFINERIES COMMERCIAL/INDUSTRIAL THIRD PARTY TRUCKING WHOLESALE MIDSTREAM FACILITIES RAIL PRODUCERS RESIDENTIAL 7
Slide 9: Specialty Chemicals - Segment Summary
Specialty Chemicals - Segment Summary Business Summary Financial Overview (C$ mm) EBITDA from Operations(1) One of North America’s largest producers and supplier of sodium chlorate and sodium chlorite Diversified end market and customer exposure, with key verticals including pulp & paper, oil &
Slide 10: Specialty Chemicals – Business & Product Overview
Specialty Chemicals – Business & Product Overview Business & Product Summary 2017 Sales by Customer Segment(1) > Sodium chlorate is an inorganic specialty chemical used Sodium Chlorate International 1 primarily (>95%) by the pulp and paper industry for the dioxin- Exports Specialty free bleaching of
Slide 11: 2019 Areas of Focus
2019 Areas of Focus > Execution on key themes of Evolution 2020 • Internal growth • Sustainable capital structure and cash flow profile Superior Plus • Continuous improvement programs • Continued focus on acquisitions • Talent management > Integration of Canwest and NGL Energy > Strategic tuck-in ac
Slide 12: Financial Overview
Superior Plus Corp. TSX: SPB Financial Overview
Slide 13: Q3 2018 Results and 2018 Guidance
Q3 2018 Results and 2018 Guidance ＞ AOCF per share, Adjusted EBITDA and Debt/Adjusted EBITDA guidance confirmed with Q3-18 results. 2018 Adjusted Operating cash flow per share(1)(2) $1.75 - $1.95 Adjusted EBITDA Guidance(1)(2) $345-$375 million Total Debt to Adjusted EBITDA(1)(2) 3.8X – 4.2X • Super
Slide 14: 2019 Adjusted EBITDA Guidance and Leverage
2019 Adjusted EBITDA Guidance and Leverage ＞ 2019 Adjusted EBITDA is anticipated to improve 30% compared to 2018.(3) Guidance 2019 Adjusted EBITDA Guidance(1)(2) $445-$495 million Total Debt to Adjusted EBITDA(1)(2) 3.6X – 4.0X • EBITDA from operations for Energy Distribution is anticipated to be hi
Slide 15: Debt Maturity Profile
Debt Maturity Profile > Superior has a staggered balanced maturity profile with Debt Maturity Schedule (C$ millions) no material maturities until 2023 $500 Debt > NGL transaction financed with a C$150 million upsize of $400 existing 5.125% unsecured debentures, $400 million Maturity equity offering,
Slide 16: Summary
Superior Plus Corp. TSX: SPB Summary
Slide 17: Evolution 2020 Business Overview
Evolution 2020 Business Overview Energy Distribution > An ideal industry to grow through acquisitions and immediately leverage our solid platform, including: • Increased provision of value-added services • Utilizing our supply cost advantage • Maximizing logistics capabilities > Acquisition strategy
Slide 18: Evolution 2020 Keys to Success
Evolution 2020 Keys to Success ORGANIC STRATEGIC CONTINUOUS TALENT GROWTH ACQUISITIONS IMPROVEMENT MANAGEMENT Digital Deploying Consistently Having the best innovation, capital to build identifying people aligned partnerships up retail opportunities to with corporate and geographic propane reduce co
Slide 19: Evolution 2020 Goals
Evolution 2020 Goals $476.5 – 2016 2017 2018 2020E $526.5 million(10) NGL Propane Synergies(3) NGL Propane(4) Canwest Synergies(5) $426.5 Canwest(6) Specialty Chemicals(7) million(10) Tuck-in Acquisitions(8) Organic Growth $352.1 million(2) $306.8 million $276.5 million(1) Evolution 2020 updated goa
Slide 20: Investment Highlights
Investment Highlights > Industry Leadership > Strong Financial Profile • Experienced management • Achieving target leverage team ratio • Best-in-class operations • Strong free cash flow • Continuing focus to create generation value through differentiation • Access to capital and and digitalization l
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Throughout the presentation, Superior has used the following terms that are not defined by GAAP, but are used by management to evaluate the performance of Superior and its businesses. Since non-GAAP financial measures do not have standardized meaning prescribed by GAAP an
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