Sunopta Inc.

Sunopta — Q2 2016 Earnings Presentation

18 slides from Sunopta's earnings presentation, Aug 10, 2016

  1. Slide 1: Q2 2016 Update

    Q2 2016 August 10, 2016 Update

  2. 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

  3. Slide 3: Investment Highlights

    Investment Highlights  “Pure play” exposure to organic/non- GMO foods, focused on private label FAVOURABLE CONSUMER TRENDS  Largest supply chain in organic raw materials/ingredients in the world Awareness of Linkage Between Diet & Health  Scalable business platform with significant revenue runway

  4. Slide 4: Q2 2016 Recap

    Q2 2016 Recap • Revenue of $348 million • Gross margin of $36.0M or 10.3% of revenues, excluding purchase accounting, start-up and other costs GM was 11.5% • Adjusted EBITDA of $23.5M • Adjusted EPS $0.05 4

  5. Slide 5: Global Ingredients – Q2 Performance

    Global Ingredients – Q2 Performance International: o Revenues up 22% vs Q2’15, lapping strong comps (PY increase was 19%) o Continue to outpace end-market growth o Further investment in new sources of supply and organic cocoa processing o Q2 product mix weighed slightly on margins Domestic: o Revenu

  6. Slide 6: Consumer Products – Q2 Performance

    Consumer Products – Q2 Performance Healthy Beverage: o Revenues up 17% vs PY (Aseptic ∼ 20%) o Capacity utilization increasing ahead of plan o Innovation driving sales in juice, and costs coming down o Pipeline indicates continued strong growth in 2H 2016 Healthy Snacks: o Revenues flat vs PY, growt

  7. Slide 7: Consumer Products – Q2 Performance (cont.)

    Consumer Products – Q2 Performance (cont.) Healthy Fruit o Significant shortfall in revenue and GM versus internal expectations o Three major factors impacting Q2 performance: 1. Very late start to freezer berry harvest 2. Increased field pricing 3. Softness and shift in order pattern with top retai

  8. Slide 8: Q2 2016 Revenue

    Q2 2016 Revenue Normalized Q2 2016 Q2 2015 Growth Q1 2016 ($ millions) Rate* Global Ingredients $158.5 $161.8 2.7% $146.0 Consumer Products $189.6 $115.7 -1.7% $206.3 Total Revenue $348.1 $277.6 0.3% $352.3 * Adjusted for the impact on revenues in the second quarter of 2016 of acquired businesses, i

  9. Slide 9: Key Financial Statistics

    Key Financial Statistics ($ millions, except percentage and per share Q2 Q2 YTD YTD Q1 amounts) 2016(1) 2015(1) 2016(1) 2015(1) 2016(1) Revenues $348.1 $277.6 $700.5 $551.5 $352.3 36.0 29.7 67.9 58.8 31.9 Gross Margin (2) 10.3% 10.7% 9.7% 10.7% 9.1% 8.8 9.0 11.5 18.9 2.6 Operating Income (2) 2.5% 3.

  10. Slide 10: Cash Flow and EBITDA

    Cash Flow and EBITDA Cash Provided by (used in) Q2 Q2 YTD YTD 2016 2015 2016 2015 ($ millions) Cash Flows from Operations (1) ($34.4) ($7.1) ($52.3) ($18.0) Cash Flows from Investing Activities (1) (8.6) (9.4) (13.2) (28.3) Cash Flows from Financing Activities (1) 38.7 17.3 64.5 40.7 (1) Reflects ca

  11. Slide 11: Key Balance Sheet Metrics

    Key Balance Sheet Metrics Balance Sheet July 2, 2016 January 2, 2016 ($ millions, except ratio and per share amounts) Working Capital (1) $419.3 $364.8 (3) Total Assets (2) $1,215.2 $1,154.9 Total Debt $557.8 $482.8 (3) Ratio of Total Debt to Equity 1.38 to 1.00 1.15 to 1.00 Book Value per Share $4.

  12. Slide 12: Operational Goals 2016

    Operational Goals 2016 Growth in CPG Revenue & Gross Margin + Beverage Fruit Snacks - Increase gross margin Successful integration Achieve growth in fruit by $6 million of Sunrise Growers snacks of at least 10% Achieve double-digit Deliver $5 to $7 million Fill bar/pouch Two- growth in non-dairy of

  13. Slide 13: In Conclusion

    In Conclusion Continue to capture market share in International Organic Ingredients with robust growth New sales from innovation well ahead of expectations and pipeline continues to grow Fruit platform negatively impacted in Q2, however business fundamentals and end markets intact Investment in Beve

  14. Slide 14: SunOpta – Bringing well-being to life

    SunCpta Bringing well-being to life

  15. Slide 15: Appendix: Reconciliation of Non-GAAP Measures

    Appendix 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 also be inconsistent

  16. Slide 16: Reconciliation of GAAP Results to Adjusted Earnings and Adjusted EPS

    Reconciliation of GAAP Results to Adjusted Earnings and Adjusted EPS ($ millions, except per share amounts; totals may not sum due to rounding) Q2 2016 Q2 2015 YTD 2016 YTD 2015 Earnings (loss) attributable to SunOpta Inc. $ (4.1) $ 2.0 $ (14.4) $ 7.3 Loss from discontinued operations attributable t

  17. Slide 17: Reconciliation of GAAP Results to Operating Income, EBITDA and Adjusted EBITDA

    Reconciliation of GAAP Results to Operating Income, EBITDA and Adjusted EBITDA ($ millions, totals may not sum due to rounding) Q2 2016 Q2 2015 YTD 2016 YTD 2015 Earnings (loss) from continuing operations $ (4.0) $ 4.8 $ (13.3) $ 10.7 Provision for income taxes (7.1) 2.4 (10.2) 5.4 Interest expense,

  18. Slide 18: 2233 Argentia Road, Suite 401 Mississauga, Ontario L5N 2X7 www.sunopta.com

    2233 Argentia Road, Suite 401 Mississauga, Ontario L5N 2X7 www.sunopta.com

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