Superior Plus Corp · TSX:SPB
Superior Plus — Investor Presentation (January 2023)
23 slides from Superior Plus's investor presentation, January 2023
Slide 1: Investor Update: Positioning for a Low Carbon Future
Investor Update January 2023 Positioning for a Low Carbon Future
Slide 2: Forward-Looking Statements and Information
Forward-Looking Statements and Information This presentation contains information or statements that are or may be “forward-looking statements” within the meaning of applicable Canadian securities laws. When used in this press release, the words “may”, “will”, “should”, “expect”, “plan”, “anticipate
Slide 3: Superior Plus Business Overview
Superior Plus Business Overview Superior is an industry- 3.4 billion leading North American litres total retail propane distribution company 2.1 billion litres in Canada Leading propane 1.3 billion litres in U.S. distributor ~890,000 - locations all across Canada customers 4th largest ~4,200 employe
Slide 4: Superior Plus Financial Overview
Superior Plus Financial Overview EBITDA by Segment1 Market Capitalization2 $2.3 billion Enterprise value2 $4.7 billion Leverage Ratio3 4.3x Pro Forma TTM Adjusted EBITDA4 $468.1 million 59% 33% 2022 Guidance U.S. Propane Canadian Propane Distribution Distribution Adjusted EBITDA1 $425m – $465m 8% Wh
Slide 5: Recent Developments
Recent Developments • On December 22, 2022, Superior announced an agreement to acquire Certarus for $1.05 billion • Adds complementary, high growth, low-carbon fuels (CNG, RNG and Hydrogen) to Superior’s platform • Expected double-digit accretion to Superior’s Distributable Cash Flow (“DCF”)1 per sh
Slide 6: Acquisition of Certarus
Acquisition of Certarus 6
Slide 7: Transformative Acquisition of Certarus by Superior Plus
Transformative Acquisition of Certarus by Superior Plus • CNG, RNG and Hydrogen demand is growing rapidly as customers transition away from diesel and other distillates to lower emission Lower Carbon and alternatives Renewable Fuels Platform Established via Addition – CNG enables immediate cost savi
Slide 8: Certarus: Leading Low Carbon Fuels Distributor in North America
Certarus: Leading Low Carbon Fuels Distributor in North America North American Leader Extensive Virtual Pipeline Leader in on-road low carbon energy solutions 200,000+ Loads Using MSUs to deliver lowest cost and low In North America with largest fleet of Mobile Storage Units Delivered since in
Slide 9: Certarus: Virtual Pipeline Provides Optionality
Certarus: Virtual Pipeline Provides Optionality • High capacity MSUs can also be left on-site for storage Mobile Storage • Ability to service various applications in remote areas Units • Interchangeable between CNG, RNG and H2 Permanent Gas Fueling Station Portable Gas Fueling Station Mining Wellsit
Slide 10: Positioning for a Lower Carbon Future
Positioning for a Lower Carbon Future Increasing Our Presence in the U.S. Certarus Value Proposition: Lower Price and CI Score1 Certarus Corporate Office / Headquarter 1 Certarus Facilities Significant opportunity to provide CNG to customers given attractive Superior Operation price over diesel Both
Slide 11: Highly Complementary Business Platform and Model
Highly Complementary Business Platform and Model Loading at Retail Retail Distribution Via Smaller Customers With On-Site Bulk Fuel Source Distribution Hub Superior Fleet Storage Propane Larger Customers With Large Bulk Distribution On-Site Storage Hydrogen or Superior and Certarus offer portable en
Slide 12: Demonstrated ability to diversify end-use customer segments
Diversified Operations Renewable Fuels & Other 15% (renewable natural gas, Hydrogen, Helium) Q4/22 MSU (well-site, mining, forestry, agriculture, asphalt) Infrastructure Allocation 1 25% Industrial 60% (power generation, utilities, pipeline support & remote communities) Demonstrated ability to diver
Slide 13: Key Transaction Terms
Key Transaction Terms • Superior has entered into an agreement to acquire 100% of the issued and outstanding equity interest of Certarus • Total consideration of $1.05 billion subject to customary closing adjustments Transaction Overview – Total consideration less Certarus’ net debt consists of $353
Slide 14: Long Term Funding Secured
Long Term Funding Secured • Strong financial position maintained via expanded committed credit facilities and common shares issued to Certarus shareholders, providing increased liquidity to continue to grow • The expanded senior credit facilities will increase to $1.3 billion from the current size o
Slide 15: Certarus: Acquisition Benefits
Certarus: Acquisition Benefits Enabling the Energy Transition Supporting Insufficient Infrastructure Needs Saving Customers Money Flexible Asset Base Provides Optionality Proven and Profitable Organic Growth Long Runway of Growth on High Return Opportunities 15
Slide 16: Superior Updates
Superior Updates 16
Slide 17: Update on the Superior Way Forward
Update on the Superior Way Forward Best in Class Business Superior Way Targets Continued Growth Enhanced Flexibility to Grow Organically North American Leader $1.9 Billion Acquisitions Completed or Through Acquisitions Leading on-road energy distribution platform including propane, Over the pa
Slide 18: Historical Results and 2022 Guidance
Historical Results and 2022 Guidance COVID-19 impact Historical Adjusted EBITDA ($m)1,2 $425 – $465 2022 Guidance $398 $373 $379 Adjusted EBITDA1 $425m – $465m $237 $159 $118 2016 2017 2018 2019 2020 2021 2022 Guidance 1 Adjusted EBITDA is not a standardized measure under IFRS; See “Non-GAAP Financi
Slide 19: Strong Balance Sheet Provides Efficient Financing for Growth
Strong Balance Sheet Provides Efficient Financing for Growth Current Debt Maturity Schedule (C$MM) $750 million revolver with $248 million currently undrawn1 $750m $780m $500m Current leverage: 4.3x2 (Leverage target of 3.5x – 4.0x) 2023 2024 2025 2026 2027 2028 2029 4 Credit Facility 4.25% CAN Unse
Slide 20: Committed to Social Responsibility
Committed to Social Responsibility Creating long term shareholder value in a socially responsible and sustainable manner Reducing impacts on the Helping employees thrive Creating a strong safety culture Giving back to communities environment • Providing flexibility for employees’ • Working diligentl
Slide 21: Questions?
Questions?
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures In this presentation, Superior has used the following terms (“Non-GAAP Financial Measures”) that are not defined by International Financial Reporting Standards (“IFRS”) but are used by management to evaluate the performance of Superior and its business: EBITDA from operat
Slide 23: Non-GAAP Financial Measures – Cont'd
Non-GAAP Financial Measures – Cont’d DCF and DCF per Share DCF is equal to cash flow from operating activities as defined by IFRS, adjusted for changes in non-cash working capital, other expenses, non-cash interest expense, current income taxes and finance costs, maintenance capital expenditures and