adding value  to seafood INVESTOR PRESENTATION MAY 2010
Disclaimer <ul><li>Certain statements made in this presentation are forward-looking and are subject to important risks, un...
Listings Data*  * As at May 11, 2010 1  Based on the dividend rate effective June 15, 2010 TSX: HLF HLF.A Recent Price: $1...
About High Liner Foods <ul><li>Retail, club & food service markets </li></ul><ul><li>Branded & private label products </li...
Our Business Model
Leading Market Positions 2X the size of largest competitor in retail & food service channels Largest grocery-chain supplie...
Financial Review
Fiscal 2009 in Review Another strong & successful year despite the deepest recession in generations Success attributed to ...
Fiscal Year 2009 <ul><li>Sales ($ millions) </li></ul>$616.0 $627.2 Increased 1.8% despite: <ul><li>Lower sales volumes </...
Fiscal Year 2009 Adjusted EBITDA 1 $43.6 million Fully diluted EPS  $1.07  Net Income $19.7 million +15% +39% +39% 1  Adju...
First Quarter 2010 <ul><li>Sales ($ millions) </li></ul>$183.3 $165.1 <ul><li>Currency reduced reported sales by $18.1M </...
First Quarter 2010 Adjusted EBITDA 1 $14.1 million Earnings Per Share $0.39  Net Income   $7.2 million +7% +8% +8% 1  Adju...
Performance Against Targets Rolling four quarters ended April 3, 2010  Actual Target ROE 13.5% 14.0% ROAM 14.9% 15.0% EBIT...
First Quarter 2010 *  Commencing with the quarterly dividend payable June 15, 2010 Increased dividends 13.3% to $0.34 per ...
Outlook & Growth Strategy
Our Vision The North American leader in value-added seafood
A Good Start to 2010 Voted # 1 by consumers
Outlook Growth influenced by strong demographics: North America has an aging, health-conscious population <ul><li>45+ year...
Outlook <ul><li>Fisheries recovering around the world </li></ul><ul><li>Availability & cost of key raw materials should re...
# 1 Strategic Goal for 2010 Establish comprehensive sustainability policies and practices Ensure our customers of the sust...
Growth Strategy <ul><ul><li>Organic growth </li></ul></ul><ul><ul><li>Develop new products </li></ul></ul><ul><ul><ul><li>...
Growth Strategy <ul><ul><li>Acquisitions  </li></ul></ul><ul><ul><li>Seek acquisitions that will expand our product portfo...
adding value  to seafood INVESTOR PRESENTATION MAY 2010
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High Liner Foods - May 2010

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May 2010 investor presentation for High Liner Foods Inc. (TSX: HLF; HLF.A).

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High Liner Foods - May 2010

  1. 1. adding value to seafood INVESTOR PRESENTATION MAY 2010
  2. 2. Disclaimer <ul><li>Certain statements made in this presentation are forward-looking and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate and may differ materially from actual future events or results. Actual results or events may differ materially from those predicted.  </li></ul><ul><li>Certain material factors or assumptions were applied in drawing the conclusions as reflected in the forward-looking information.  Additional information about these material factors or assumptions is contained in High Liner's annual MD&A and is available on SEDAR (www.sedar.com).   </li></ul>
  3. 3. Listings Data* * As at May 11, 2010 1 Based on the dividend rate effective June 15, 2010 TSX: HLF HLF.A Recent Price: $11.66 $9.50 52-Week Range $6.70 - $11.66 $6.00 - $9.90 Shares Outstanding ~13.3 million ~1.9 million Quarterly Dividend 1 $0.085 $0.085 Current Yield 1 2.9% 3.6% Total Market Cap: $172.6 million
  4. 4. About High Liner Foods <ul><li>Retail, club & food service markets </li></ul><ul><li>Branded & private label products </li></ul>One of North America’s largest value-added frozen seafood companies
  5. 5. Our Business Model
  6. 6. Leading Market Positions 2X the size of largest competitor in retail & food service channels Largest grocery-chain supplier of private label processed seafood One of the largest food service suppliers of value-added seafood Our size strengthens our ability to negotiate prices with our customers
  7. 7. Financial Review
  8. 8. Fiscal 2009 in Review Another strong & successful year despite the deepest recession in generations Success attributed to our resilient business model Year marked by volatile raw material costs, currency
  9. 9. Fiscal Year 2009 <ul><li>Sales ($ millions) </li></ul>$616.0 $627.2 Increased 1.8% despite: <ul><li>Lower sales volumes </li></ul><ul><li>One less week of results </li></ul><ul><li>Cautious consumer spending </li></ul><ul><li>Lower food service sales of crab and lobster </li></ul>585 606
  10. 10. Fiscal Year 2009 Adjusted EBITDA 1 $43.6 million Fully diluted EPS $1.07 Net Income $19.7 million +15% +39% +39% 1 Adjusted earnings before interest, taxes, depreciation & amortization, business acquisition costs, other income and non-operating transactions.
  11. 11. First Quarter 2010 <ul><li>Sales ($ millions) </li></ul>$183.3 $165.1 <ul><li>Currency reduced reported sales by $18.1M </li></ul><ul><li>Sales in domestic currency essentially flat </li></ul><ul><li>Sales volume up 3.0% </li></ul>
  12. 12. First Quarter 2010 Adjusted EBITDA 1 $14.1 million Earnings Per Share $0.39 Net Income $7.2 million +7% +8% +8% 1 Adjusted earnings before interest, taxes, depreciation & amortization, business acquisition costs, other income and non-operating transactions.
  13. 13. Performance Against Targets Rolling four quarters ended April 3, 2010 Actual Target ROE 13.5% 14.0% ROAM 14.9% 15.0% EBIT as % sales 7.3% 6.0% Debt to EBITDA 1.7x Less than 3.00x
  14. 14. First Quarter 2010 * Commencing with the quarterly dividend payable June 15, 2010 Increased dividends 13.3% to $0.34 per share on an annual basis * Reduced interest-bearing debt to 27% of total capitalization (34% at end of fiscal 2009)
  15. 15. Outlook & Growth Strategy
  16. 16. Our Vision The North American leader in value-added seafood
  17. 17. A Good Start to 2010 Voted # 1 by consumers
  18. 18. Outlook Growth influenced by strong demographics: North America has an aging, health-conscious population <ul><li>45+ years of age account for half of seafood consumption </li></ul><ul><li>Health benefits tied to eating fish </li></ul>
  19. 19. Outlook <ul><li>Fisheries recovering around the world </li></ul><ul><li>Availability & cost of key raw materials should remain attractive </li></ul><ul><li>Added supply + slow economic growth </li></ul>
  20. 20. # 1 Strategic Goal for 2010 Establish comprehensive sustainability policies and practices Ensure our customers of the sustainability of their supply chain +
  21. 21. Growth Strategy <ul><ul><li>Organic growth </li></ul></ul><ul><ul><li>Develop new products </li></ul></ul><ul><ul><ul><li>Innovative value added products </li></ul></ul></ul><ul><ul><ul><li>High-quality, innovatively packaged raw products </li></ul></ul></ul><ul><ul><li>Introduce new species from aquaculture </li></ul></ul><ul><ul><li>Expand distribution of existing products </li></ul></ul>Drive continued growth by leveraging our core High Liner and FPI brands
  22. 22. Growth Strategy <ul><ul><li>Acquisitions </li></ul></ul><ul><ul><li>Seek acquisitions that will expand our product portfolio & strengthen our market leadership </li></ul></ul><ul><ul><li>Strict acquisition criteria </li></ul></ul><ul><ul><li>Must be complementary to frozen seafood </li></ul></ul><ul><ul><li>Should be synergistic </li></ul></ul><ul><ul><li>Must leverage our existing: </li></ul></ul><ul><ul><ul><li>Leading brands </li></ul></ul></ul><ul><ul><ul><li>Strong customer relationships </li></ul></ul></ul><ul><ul><ul><li>Marketing & logistics expertise </li></ul></ul></ul><ul><ul><ul><li>Product development expertise </li></ul></ul></ul>
  23. 23. adding value to seafood INVESTOR PRESENTATION MAY 2010

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