Superior Plus Corp · TSX:SPB
Superior Plus — Investor Presentation (April 2019)
24 slides from Superior Plus's investor presentation, Apr 10, 2019
Slide 1: April Investor Update
Superior Plus Corp. TSX: SPB April Investor Update April 10, 2019
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 is a premier North American diversified industrial company with two core businesses: Energy Distribution and Specialty Chemicals • A leading propane distributor and marketer in Canada, the Eastern US and California (operating in retail and wholesale propane marke
Slide 4: Superior Overview
Superior Overview Energy Distribution Specialty Chemicals • Leading distributor and marketer of propane in Canada Production and sales of: • Sales volume of 2.2 billion litres(1) • Sodium Chlorate products • Distribution of primarily retail propane in the Eastern U.S. and • One of the largest produc
Slide 5: Energy Distribution
Energy Distribution wx ‘ Superior Plus
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 market Growth opportunities through new markets and industry consolidation Leading competitive position with full service capabil
Slide 7: Energy Distribution – Canadian Propane Distribution
Energy Distribution – Canadian Propane Distribution Business & Product Summary Volume by Segment(2) Superior Propane is Canada’s leading propane distribution company 6% 8% • Superior Propane is an iconic 65-year old Canadian brand with ~37% market share(1) • Offers coast to coast propane solution 16
Slide 8: Energy Distribution – US Propane Distribution
Energy Distribution – US Propane Distribution Business & Product Summary Volume by Segment(1)(4) Gross Profit by Segment(1)(4) Superior Plus Propane is a propane focused retail 3% 1% distribution business operating in 23 states(1) 19% • Propane market in current Eastern U.S. footprint 28% estimated
Slide 9: Specialty Chemicals
Specialty Chemicals 9
Slide 10: Specialty Chemicals - Segment Summary
Specialty Chemicals - Segment Summary Business Summary Geographic Footprint North America South America One of North America’s largest producers and Production facilities located at 9 sites across North America and one facility in Chile (2) supplier of sodium chlorate and sodium chlorite Diversifi
Slide 11: Specialty Chemicals – Business & Product Overview
Specialty Chemicals – Business & Product Overview Market Update and Outlooks Sales by Customer Segment(1) • North American chlorate operating rates continue to run at ~95%; 1 • Sodium chlorate demand in H1-2019 is expected to be a strong leading 27% 18% 16% 9% indicator for producers and pricing for
Slide 12: 2019 Areas of Focus
2019 Areas of Focus • Execution on key themes of Evolution 2020 • Organic growth • Sustainable capital structure and cash flow profile Superior Plus • Continuous improvement • Continued focus on acquisitions • Talent management • Continuous improvement in HS&E • Achieving run-rate synergy targets fo
Slide 13: Financial Overview
Superior Plus Corp. TSX: SPB Financial Overview
Slide 14: 2019 Adjusted EBITDA Guidance and Leverage
2019 Adjusted EBITDA Guidance and Leverage • 2019 Adjusted EBITDA is anticipated to improve ~26% compared to 2018 based off the midpoint of guidance 2019 Guidance 2018 Actual Adjusted EBITDA(1)(2) $445-$495 million $374.3 million Leverage(1)(2) 3.6X – 4.0X 4.1X • EBITDA from operations for Energy Di
Slide 15: Debt Maturity Profile
Debt Maturity Profile • Superior has a staggered balanced maturity profile with no material maturities until 2023 Debt Maturity Schedule (C$ millions) • NGL transaction financed with a C$150 million upsize of existing 5.125% unsecured debentures, $600 $400 million equity offering, 7.0% $350 million
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 SAFETY GROWTH ACQUISITIONS IMPROVEMENT MANAGEMENT Digital innovation, Deploying capital to Consistently Providing a safe and partnerships and build up retail identifying productive work geographic expansion propane platform and opportunitie
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) Canwest(6) $426.5 million(10) Specialty Chemicals(7) 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 STRONG FINANCIAL SAFETY & COMPELLING LEADERSHIP PROFILE ENVIRONMENT GROWTH COMMITMENT PROSPECTS • Experienced • Committed to BB • Continue to be an • Numerous unique management team credit rating industry leader in organic growth • Best-in-class • Strong free cash safe
Slide 21: Recent Developments
Recent Developments • Entered into an agreement to acquire substantially all of the propane distribution assets of Phelps Sungas, Inc. and BMK of Geneva, Inc. (“Phelps”), an independent propane distributor in upstate New York serving residential and commercial customers; anticipated to close during
Slide 22: 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
Slide 23: Appendix 1: Propane Distribution Overview
Appendix 1: Propane Distribution Overview SUPPLY LOGISTICS DISTRIBUTION/MARKETING REFINERIES COMMERCIAL/INDUSTRIAL THIRD PARTY TRUCKING WHOLESALE RAIL 23
Slide 24: Appendix 2: Proforma EBITDA from Operations and Pro forma Adjusted EBITDA Reconciliation
Appendix 2: Proforma EBITDA from Operations and Pro forma Adjusted EBITDA Reconciliation Proforma EBITDA from Operations Reconciliation 12 months (millions) 31-Dec-18 Notes Energy Distribution EBITDA from Operations 265.2 (1) Proforma NGL Adjustment 76.1 (2) Proforma Energy Distribution EBITDA from