Superior Plus Corp · TSX:SPB
Superior Plus — RBC Small Cap Conference 2017
23 slides from Superior Plus's conference presentation, Sep 28, 2017
Slide 1: Superior Plus Corp. RBC Small Cap Conference
Superior Plus Corp. RBC Small Cap Conference September 28, 2017 TSX: SPB
Slide 2: Forward-Looking Statements
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 should not be construed, under any circums
Slide 3: Superior Plus Overview
Performance vs. S&P/TSX Index to September 1, 2017 250% 200% Percentage Return 150% 100% 50% Superior Plus 0% Overview -50% Superior Plus S&P TSX Index ＞ Superior Plus delivered 190% in cumulative total shareholder return, significantly outperforming the TSX since December 31, 2011 Shares outstandin
Slide 4: Our Businesses
Energy Distribution Specialty Chemicals • Leading distributor and marketer of propane in Production and sales of: Our Canada • Sodium Chlorate products in North America • • Businesses Distribution of retail and wholesale propane and distillates in the Northeast U.S. Chlor-alkali and related products
Slide 5: Recent Developments
＞ Announced closing of Canwest Propane acquisition following receipt of Competitive Bureau Clearance; Recent - Favorable resolution reached with the Competition Bureau Developments requiring divestitures of less than 5% of the acquired Canwest retail propane volumes - Expected annual synergies of at
Slide 6: Recent Developments (Continued)
＞ Entered an agreement with the CRA regarding its objection to the tax consequences of Superior’s corporate conversion transaction in Recent 2008; Developments - The settlement will not impact cash income taxes for the current year (Continued) or any previous financial years - Superior expects to re
Slide 7: Canwest Acquisition Overview
> Canwest asset base constitutes one of the leading propane distribution franchises in Canada, with average propane sales of approximately 470 million litres over the past two years Canwest Acquisition Branch Network Key Operating Statistics Overview Propane Volumes by Business Segment(1) 24% 41% 35
Slide 8: Synergy Summary
Integration work will commence on close, with majority of rationalization started in Q2 2018 following the heating season Implementation of the “Superior Way” and digital platform to improve Labour costs route efficiency and reduce costs Synergy ~60% of the expected $20 million in run rate syner
Slide 9: Energy Distribution Segment Summary
Energy Business Summary Financial Overview (C$ mm) Distribution Leading retail supplier of propane in Canada and established Adjusted EBITDA from Operations1 footprint in U.S. Northeast propane and refined fuels markets Segment Growth opportunities through new markets and industry Summary consol
Slide 10: Energy Distribution Segment: Business & Product Summary
Business & Product Summary > Superior Propane is Canada’s leading propane distribution company − Founded in 1951, Superior Propane is an iconic 65-year old Canadian brand with ~30-35% market share − Offers coast to coast propane solution − Largest purchaser of propane for domestic retail supply − Le
Slide 11: Specialty Chemicals Segment Summary
Business Summary Financial Overview (C$ mm) Adjusted EBITDA from Operations2 Specialty One of North America’s largest producers and supplier of sodium chlorate, chlor-alkali and sodium chlorite Chemicals Diversified end market and customer exposure, with $119.5 $112.2 $123.6 $117.4 $109.1 18% 6%
Slide 12: Specialty Chemicals Business & Product Summary
Business & Product Summary 1 > Sodium chlorate is an inorganic specialty chemical used primarily (>95%) by the pulp and paper industry for the dioxin-free Sodium Chlorate bleaching of pulp − Simple ingredient profile: water, salt and electricity, with electricity representing as much as 80% of total
Slide 13: Specialty Chemicals Industry & Market Overview
Specialty Chemicals Industry & Market Overview Industry & Global Pulp Market 1 > Chlorate market driven by trends in underlying pulp and Market > paper demand Global pulp demand is strong and growing, with stable 160 90% 89% 89% 89% 95% 88% 86% 87% 87% Overview operating rates 90% Utilization Rate S
Slide 14: 2017 Areas of Focus
> Successful close of Canwest propane acquisition 2017 Areas of > Execution on key themes of Evolution 2020 Focus • Internal growth Superior Plus • Continuous improvement programs • Talent management • Sustainable capital structure and cash flow profile • Increased resources focused on acquisitions
Slide 15: Financial Overview
Financial Overview 14
Slide 16: 2017 Financial Outlook & Capital Spend
2017 Adjusted Operating cash flow per share (1) $1.50 - $1.75 Total Debt to Adjusted EBITDA (1)(2) 3.2X – 3.6X 2017 Financial > Hedging program mitigating risk in foreign currency fluctuations; Outlook & - Substantively hedged at USD/CAD rate of ~$1.31 for the balance of 2017 Capital Spend 2016 Actu
Slide 17: Financial Metrics & Maturity Profile
> Prudent capital management > Long-term Debt to Adjusted EBITDA of 3.0x > Payout Ratio of 40 – 60% Financial Metrics & > Credit facility extended and increased to $620 million Maturity > $432 million was drawn on the credit facility as at September 1, 2017 Profile $350 Debt Maturity Profile $300 Mi
Slide 18: Summary
Summary 17
Slide 19: Evolution 2020 Business Overview
Energy Distribution > An ideal industry to grow through acquisitions and immediately leverage our solid platform, including: Evolution 2020 • Increased provision of value-added services Business Overview • Utilizing our supply cost advantage • Maximizing logistics capabilities > Acquisition strategy
Slide 20: Strategic Evolution 2020 Plan
We will focus on building our future without losing sight of improving our day-to-day operations Evolution 2020 Strategic Evolution 2020 Goal of $50-$150 million increase in Plan EBITDA from Operations(1)(2) Internal Growth Acquisitions • Effective sales and marketing • Disciplined approach programs
Slide 21: Evolution 2020 Target
> Evolution 2020 goal of achieving $50-$150 million increase in EBITDA from Operations Evolution 2020 Target Canwest Synergies(2) Canwest(3) $276.5 Specialty Chemicals(4) million(1) Tuck-in Acquisitions(5) Organic Growth (1) 2016 EBITDA from Operations excludes the results of CPD. (2) Estimated run-
Slide 22: Investment Highlights
> Industry Leadership > Strong Financial Profile • Experienced • Achieving target leverage Investment management team ratio Highlights • Best-in-class operations • Strong free cash flow • Continuing focus to generation create value through • Access to capital and differentiation and liquidity to fun
Slide 23: 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 and are therefore unlikely to