Sunopta — BMO Capital Markets 2018 Boston Growth Forum
24 slides from Sunopta's conference presentation, Dec 5, 2018
Slide 1: Investor Presentation December 2018
SunOpta Inc. December Investor Presentation 2018
Slide 2: Forward Looking Statements
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 projections as certain material factors and assumptions were applied in drawin
Slide 3: Organic & Healthy Food Company with Global Reach
Organic & Healthy Food Company with Global Reach To be the most innovative, integrated provider of Our organic ingredients and healthy food solutions Purpose across multiple channels • Innovate in growing healthy food and beverage categories Key • Invest in and grow efficient integrated supply chain
Slide 4: Operate in Growing Markets
Operate in Growing Markets ORGANIC US Food & Beverage Underpinned by SALES ($ Billions) 6.4% Growing Consumer Trends Y-O-Y $45.2 Growth $42.5 $39.0 Awareness of Linkage Between Diet & Health 2015 2016 2017 Source: 2018 Organic Trade Association Survey NON GMO - LABELED US Food & Beverage GMO, Food A
Slide 5: Participate in Growing Categories
Participate in Growing Categories Category $ Growth Trends Latest 52 Week / $ % Change CATEGORY PRIVATE LABEL ORGANIC 73.4 22.9 22.9 18.6 18.7 16.5 15.3 11.3 11.1 9.9 9.5 9.0 8.7 6.5 3.9 3.2 2.3 0.1 ASEPTIC BROTH FROZEN FRUIT NON DAIRY MILK SHELF STABLE ROASTED SNACKS MEAT PREMIUM JUICE (1) ALTERNAT
Slide 6: Integrated Business Model
Integrated Business Model “FIELD TO TABLE” INTEGRATION GLOBAL RETAIL (P/L) SOURCING & FOODSERVICE PLATFORM MANUFACTURING SOLUTIONS Field Table TRANSFORMING INPUTS INTO SERVING APPROX. VIA A NETWORK OF APPROX. WE SOURCE FROM INGREDIENTS & CONSUMER 3,300 GLOBAL APPROX. 5,000 SUPPLIERS PRODUCTS VIA ENC
Slide 7: Global Ingredients
Global Ingredients Product Categories Revenue Composition Charts based on fiscal 2017 revenues • Beans & Pulses • Grains • Berries • Oils & Fats • Rice • Citrus • Seeds & Kernels • Dairy Products • Tropical Fruits • Flour, Starch & Flakes • Tastemakers • Stone Fruits • Nuts • Sugar & Sweeteners • Ve
Slide 8: Consumer Products
Consumer Products Product Categories Revenue Composition Charts based on fiscal 2017 revenues excluding bars and pouch lines of business • Aseptic Non-Dairy • Fruit Snacks • Aseptic Broths • Roasted Snacks • Aseptic Teas • IQF Fruit for Retail • Refrigerated Premium • Formulated Fruit Solutions Juic
Slide 9: Indicative Customer Base
Indicative Customer Base Representative Retail and Representative Brands Foodservice Customer Base Customer Base 9
Slide 10: The Four Pillars of the Value Creation Plan
The Four Pillars of the Value Creation Plan The Value Creation Plan is a broad-based initiative focused on increasing shareholder value through strategic investments made in the people and assets of the Company to deliver sustained profitable growth. Portfolio Operational Go-to-Market Process Optimi
Slide 11: Phased Approach to the Value Creation Plan
Phased Approach to the Value Creation Plan • Solidify the Foundation for Consistent Quality and Service Performance, drive Productivity Enhancements and re-vamp Sales and Marketing Organization • Plan calls for increased SG&A and seasonal improvements to GM% Phase 1 “Clean it up” • Cash is used to i
Slide 12: Value Creation Plan Milestones
Value Creation Plan Milestones Q4 2016 to Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 ❖ Appointment of David Colo as CEO and ❖ Developed significant ❖ Announced $22M ❖ Announced further ❖ Completed commissioning initiated significant talent upgrade in pipeline of commercial expansion of Allentown expans
Slide 13: Value Creation Through Productivity & Growth Designed to Deliver Incremental EBITDA
Value Creation Through Productivity & Growth Designed to Deliver Incremental EBITDA • Offset by investment into price and quality in Heathy Fruit • Fruit Margin Recovery Plan initiated 13
Slide 14: Fruit Margin Recovery Plan
Fruit Margin Recovery Plan Actions to be implemented over next two crop cycles Innovate to Drive Accretive Growth to restore Fruit margins • Capitalize on demand for convenience and utility (back to historical levels) 15% with existing and new customers • Capture growth opportunities through enhance
Slide 15: The Value Creation Plan in Action: Focus on Healthy Beverage
The Value Creation Plan in Action Focus on Healthy Beverage Previous State Value Creation Plan Current State Portfolio Optimization Prior to launching the Value • Identified aseptic processing capabilities and Now entering the 2nd phase Creation Plan, Healthy footprint, specialized knowledge in plan
Slide 16: Delivering Long-Term Shareholder Value
Delivering Long-Term Shareholder Value As part of the Value Creation Plan… • We will focus on food safety, quality and execution. • We will be focused and decisive as we execute our strategic plan. • We will focus on long-term value creation. • We will make decisions with a long-term focus, even if
Slide 17: Key Financial Metrics - Income Statement
Key Financial Metrics - Income Statement Q3 2018 Q3 2017 ($ millions, except per share amounts) Revenues (1) $308.4 $320.7 Gross profit (2) 34.1 [36.0] 36.5 [37.7] As % of Revenue 11.1% [11.7%] 11.4% [11.8%] Operating income (3) 4.5 [6.4] 5.0 [8.6] As % of Revenue 1.5% [2.1%] 1.5% [2.7%] Adjusted lo
Slide 18: Key Financial Metrics - Balance Sheet & Debt Capital
Key Financial Metrics - Balance Sheet & Debt Capital As at ($millions) Sept 29, 2018 Working Capital (1) $ 380.5 Total Assets 999.2 First Lien Debt 274.3 Senior secured asset-based revolving credit facility maturing February 10, 2021 in the maximum aggregate principal amount of $365 million, subject
Slide 19: Appendix
Appendix Key Financial Metrics Reconciliation of Non-GAAP Measures This presentation includes certain measures not derived in accordance with generally accepted accounting principles (“GAAP”). Such measures should not be considered substitutes for any measures derived in accordance with GAAP and may
Slide 20: Reconciliation of GAAP Results to Adjusted Loss and Adjusted EPS
Reconciliation of GAAP Results to Adjusted Loss and Adjusted EPS Q3 2018 Q3 2017 Excluding Excluding flexible Flexible flexible Flexible resealable resealable resealable resealable pouch and pouch and pouch and pouch and ($ millions, except per share amounts; totals may not sum due to rounding) nutr
Slide 21: Reconciliation of GAAP Results to Operating Income/Loss and Adjusted EBITDA
Reconciliation of GAAP Results to Operating Income/Loss and Adjusted EBITDA Q3 2018 Q3 2017 Excluding Excluding flexible Flexible flexible Flexible resealable resealable resealable resealable pouch and pouch and pouch and pouch and ($ millions, totals may not sum due to rounding) nutrition bar nutri
Slide 22: Notes
NOTES SunC@pta
Slide 23: Notes
NOTES SunC@pta
Slide 24: 2233 Argentia Road Suite 401, West Tower Mississauga, Ontario L5N 2X7
2233 Argentia Road Suite 401, West Tower Mississauga, Ontario L5N 2X7 www.sunopta.com
SunOpta — BMO Capital Markets 2018 Boston Growth Forum on 6ix