Superior Plus Corp · TSX:SPB
Superior Plus — CIBC Western Institutional Investor Conference 2023
26 slides from Superior Plus's conference presentation, January 2023
Slide 1: Positioning for a Low Carbon Future
CIBC Western Institutional Investor Conference 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-leading 3.4 billion litres total North American low-carbon energy 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 emplo
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: Premier Low Carbon Fuels Distributor in North America
Certarus: Premier Low Carbon Fuels Distributor in North America A North American Leader Extensive Virtual Pipeline A leader in on-road low carbon energy solutions 250,000+ Loads Using MSUs to deliver lowest cost and low in North America with largest fleet of Mobile Storage Units Delivered sinc
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 / Headquarters 1 Certarus Facilities Significant opportunity to provide CNG to customers given attractive Superior Operation price over diesel Bot
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: Diversified End-Use Customer Segments
Diversified End-Use Customer Segments Renewable Fuels & Other 15% (renewable natural gas, hydrogen, helium, forestry, agriculture, asphalt & remote communities) Infrastructure 25% Q4/22 MSU Industrial Allocation 1 60% (well-site & mining) (power generation, utilities & pipeline support) Flexible ass
Slide 13: Growth Area: Renewable Natural Gas
Growth Area: Renewable Natural Gas Swine Project – Missouri Landfill Gas Project - BC Dairy Project - Wisconsin Injection site servicing four swine farms in northern LFG project in BC to test RNG feasibility Dairy RNG project in Wisconsin Missouri Dairy Project and Injection Dairy Project - Californ
Slide 14: Growth Area: Hydrogen
Growth Area: Hydrogen Hydrogen Blending Supporting Hydrogen H2 Locomotive Program Project Tractors December 2021 Certarus and Plug Power Partner on Green Hydrogen Supply and Expansion of Distribution Infrastructure Partnered with Caterpillar to conduct a H2 Partnership with Plug Power Partnered with
Slide 15: 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 16: 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 17: 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 17
Slide 18: Superior Updates
Superior Updates 18
Slide 19: 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 Leaders in Mobile Energy Distribution $1.9 Billion Acquisitions Completed or Through Acquisitions Leading on-road energy distribution platform including prop
Slide 20: Historical Results and 2022 Guidance
Historical Results and 2022 Guidance Historical Adjusted EBITDA ($m)1,2 ~$550 – $5903 Certarus 2022E EBITDA of $124 million $425 – $465 $398 $373 $379 2022 Guidance $237 Adjusted EBITDA1 $159 $118 $425m – $465m 2016 2017 2018 2019 2020 2021 2022E 2022E Pro Forma Certarus 1 Adjusted EBITDA is not a s
Slide 21: Strong Balance Sheet Provides Efficient Financing for Growth
Strong Balance Sheet Provides Efficient Financing for Growth Current Debt Maturity Schedule (C$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 22: 2022 ESG Highlights – Superior Plus Corp.
2022 ESG Highlights – Superior Plus Corp. Our Values Benefits of Propane Propane is an attractive energy source because it is cleaner, versatile and efficient. Studies have found that propane can emit Safety: We make safety and wellness our top up to 26% fewer GHGs than gasoline in vehicles, 38% few
Slide 23: ESG Highlights - Certarus
ESG Highlights - Certarus Our Values Benefits of CNG, RNG and Hydrogen CNG, RNG and Hydrogen are attractive low carbon energy sources as they are cleaner, versatile and efficient. Studies have Safety: We are committed to the health and found that CNG can emit up to 28% fewer GHGs than diesel in powe
Slide 24: Questions?
Questions?
Slide 25: 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 26: 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
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