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Investor Day November 18, 2010

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TSX:SPB Investor Day November 18, 2010 www.superiorplus.com 2010 A Year of Repositioning * Focus on integration Expensed $9 million in one-time costs Three heating ... – PowerPoint PPT presentation

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Title: Investor Day November 18, 2010


1
TSXSPB
Investor DayNovember 18, 2010
www.superiorplus.com
2
Forward-Looking Statementsand Non-GAAP Measures
Certain information included herein is
forward-looking, within the meaning of applicable
Canadian securities laws. Forward-looking
information can be identified by looking for
words such as believe, expects, expected,
will, intends, projects, anticipates,
estimates, continues or similar words.
Forward-looking information in this corporate
presentation, including the 2010 and 2011
Financial Outlooks, includes but is not limited
to consolidated and business segment outlooks,
expected EBITDA from operations, expected
Adjusted Operating Cash Flow, expected Adjusted
Operating Cash Flow per share, future capital
expenditures, business strategy and objectives,
future dividend payments, dividend strategy,
expected senior debt and total debt to EBITDA
ratios, future cash flows, anticipated taxes and
statements regarding the future financial
position of Superior and Superior LP. Superior
and Superior LP believe the expectations
reflected in such forward-looking information are
reasonable but no assurance can be given that
these expectations will prove to be correct and
such forward-looking statements should not be
unduly relied upon. Forward-looking information
is based on various assumptions. Those
assumptions are based on information currently
available to Superior, including information
obtained from third-party industry analysts and
other third- party sources, and include the
historic performance of Superior's businesses,
current business and economic trends,
availability and utilization of tax basis,
currency, exchange and interest rates, trading
data, cost estimates and the other assumptions
set forth under the Outlook sections contained
in the 2010 third quarter results. Readers are
cautioned that the preceding list of assumptions
is not exhaustive. Forward-looking information is
not a guarantee of future performance and
involves a number of risks and uncertainties,
some of which are described herein and in the
2010 third quarter results. Such forward-looking
information necessarily involves known and
unknown risks and uncertainties, which may cause
Superior's or Superior LP's actual performance
and financial results in future periods to differ
materially from any projections of future
performance or results expressed or implied by
such forward-looking information. These risks and
uncertainties include but are not limited to the
risks referred to under the section entitled
Risk Factors to Superior, in the 2010 third
quarter results, the risks associated with the
availability and amount of the tax basis and the
risks identified in Superior's 2009 Annual
Information Form under the heading Risk
Factors. Any forward-looking information is made
as of the date hereof and, except as required by
law, neither Superior nor Superior LP undertakes
any obligation to publicly update or revise such
information to reflect new information,
subsequent or otherwise. All dollar amounts are
in Canadian dollars unless otherwise noted.
3
Business Overview
  • Superior Plus Three Businesses ONE
    Investment
  • Energy Services
  • Specialty Chemicals
  • Construction Products Distribution
  • Converted to a corporation on December 31, 2008
  • High-yielding corporation
  • Excellent access to capital
  • Focused on improving efficiency and organic
    growth generation
  • Attractive acquisition and geographic / market
    expansion opportunities in all three businesses
  • North American focused with 4,800 employees

4
Financial Profile SPB
Enterprise Value (EV) 2.3 billion 2.3 billion
Share Market Price (1) 10.46 10.46
Annual Dividend Rate (per share) (2) Annual Dividend Rate (per share) (2) 1.62
Dividend Yield Dividend Yield 15.5
Number of Shares Outstanding (3) 107.1 million 107.1 million
Convertible Debentures Outstanding (4) 489.4 million 489.4 million

(1) Closing market price on November 9, 2010 (2)
Annualized dividend of 1.62 is based on the
November 2010 dividend of 0.135 per month (3) As
at September 30, 2010 (4) Excludes deferred issue
costs
5
Strong Management Capability
Position Age Grant Billing Chief Executive
Officer 59 Wayne Bingham Chief Financial
Officer 54 John Gleason President, Energy
Services and Propane 51 Greg McCamus President,
U.S. Refined Products and Fixed-Price
Products 52 Eric McFadden EVP, Business
Development 47 Paul Timmons President, Specialty
Chemicals 61 Dave Tims SVP, Commodity Portfolio
Management 49 Paul Vanderberg President,
Construction Products Distribution 51
6
Superior Plus Market Diversification
  1. Based on mid-point of Superiors 2011 Financial
    Outlook on an EBITDA from operations basis as
    provided in Superiors third quarter MDA

6
7
Todays Presenters
Superior Plus Wayne Bingham
Superior Plus Grant Billing
Construction Products Distribution Paul
Vanderberg
Specialty Chemicals Paul Timmons
8
TSXSPB
Construction Products Distribution
www.superiorplus.com
9
Business Overview
  • Leading distributor of Walls and Ceilings
    Products and Commercial and Industrial
    insulation in Canada and the U.S.
  • Commercial
  • Residential
  • Industrial
  • Fabrication services
  • Productivity partner with contractors providing
    value-added services
  • Operational 115 distribution centers, including
    13 fabrication facilities, across 6 provinces and
    30 states
  • Approximately 1,450 employees

10
End-Use Market Diversification
The Construction Products Distribution business
is diversified across geographic and end-use
markets
based on 2010 Estimated Revenue by Segment
11
Branch LocationsA North American Focus
11
12
2010 Initiatives
  • Cost reduction programs
  • End-use markets have been challenging
  • Extensive focus on operating costs
  • 4.2 million in restructuring expense 9 month
    ytd 2010
  • Costs savings are reflected in the 2011 Outlook
  • Integration
  • Cost reduction focus
  • Incremental approach in certain Walls and
    Ceilings locations

12
13
2010 Initiatives
  • June 2010 acquisition of Burnaby Insulation
  • CI entry into Canada
  • Serves Western Canada industrial market
  • Base to build on, particularly related to Oil
    Sands opportunities
  • Strengthened management team
  • Key hires from industry, internal promotions
  • Restructured procurement function

13
14
Market Overview Residential
Source Dept. of Commerce, CMHC, Company Forecast
14
15
Market Overview Non-Residential
Source McGraw Hill, CanaData
15
16
Market Overview Industrial
Source IIR
16
17
Insulation Fabrication Services
  • Value-added to customers
  • Conversion of raw materials into products of
    specific sizes and shapes
  • Located strategically near large industrial and
    commercial markets

18
Energy Efficiency Trends
  • Positive growth from energy efficiency trends
  • Insulation role in energy efficiency and reducing
    greenhouse gas emissions
  • Insulation in existing commercial buildings saves
    at least 30 of the total U.S. commercial energy
    consumption that otherwise would have been
    consumed (1)
  • Insulation single most cost-effective greenhouse
    gas abatement measure (2)
  • Government legislation requiring improved energy
    efficient standards
  • New federal buildings required to achieve 30
    greater energy efficiency
  • ASRAE 2010 standards for mechanical insulation
    under consideration
  • Sustainable design standards (LEED and Green
    Globe)

(1) Owens Corning study. (2) McKinsey Companys
Report on Greenhouse Gas Reduction.
19
Growth Opportunities
  • Product line expansion
  • Full walls ceilings product line in 23
    architectural centres
  • CI insulation in walls and ceilings centres
  • Geographic growth and consolidation
  • Selective acquisitions
  • Greenfield
  • Business positioned for end-use market recovery
  • Significant leverage to economic recovery

20
2010 and 2011 Financial Outlook Bridge
Construction Products Distribution
(millions of dollars) (millions of dollars)
Mid-Point of 2010 Outlook (18 25 million) (1) Mid-Point of 2010 Outlook (18 25 million) (1) 21.5
Benefit of cost reduction programs, net Volume based on increased market share and economic recovery Benefit of cost reduction programs, net Volume based on increased market share and economic recovery Benefit of cost reduction programs, net Volume based on increased market share and economic recovery Benefit of cost reduction programs, net Volume based on increased market share and economic recovery Benefit of cost reduction programs, net Volume based on increased market share and economic recovery 1.0 8.0
Price/margin improvement Price/margin improvement Price/margin improvement Price/margin improvement Price/margin improvement 2.0
Mid-Point of 2011 Outlook (25 40 million) (1) 32.5
(1) As provided in Superiors 2010 third-quarter
MDA
20
21
Summary
  • Leading market positions with cost structures
    aligned with current volumes
  • Energy efficiency trends support increase
    insulation usage
  • Positioned to grow based on SPI network
  • Significant leverage to economic recovery

22
TSXSPB
Questions Answers
www.superiorplus.com
23
TSXSPB
Energy Services
www.superiorplus.com
24
Energy Services
  • Canadian propane distribution
  • Canadas largest retail supplier of propane
  • Full service offering
  • U.S. northeast refined fuels
  • Significant heating oil, propane and distillates
    platform in the northeastern U.S.
  • Full service offering
  • Supply and portfolio management
  • Leading natural gas liquids marketing company
    with potential to add the northeastern U.S. to
    its portfolio
  • Fixed-Price Energy Services
  • Leading Canadian energy marketer offering natural
    gas and electricity plans to commercial
    customers in Ontario, Quebec and British Columbia

25
Energy Services Diversification
The Energy Services business is well diversified
across various geographic and end-use markets
Based on gross profit by business for the
nine-month period ended September 30, 2010
26
Canadian Propane Business Overview
  • Superior Propane is a recognizable Canadian brand
    in business since 1951
  • Canadas largest supplier of propane, related
    products and services
  • Annual volumes 1.3 billion litres
  • 160,000 customers coast-to-coast Canada
  • 125,000 residential customers (150 million
    litres)
  • 35,000 commercial/business customers (1.15
    billion litres)
  • Employees 1,600 coast-to-coast
  • A recognized leader in propane safety

27
Canadian Propane Geographic Diversification
Western Canada 54 Eastern Canada 38 Atlantic
Canada 7
Volume by region for the twelve-month period
ended December 31, 2009.
28
Canadian Propane 2010 Initiatives
  • Technology-Based Initiatives
  • Enterprise One (ERP) Upgrade completed in 2nd
    quarter 2010
  • Costs savings of approximately 7.0 million
    anticipated in 2011
  • On-Board Truck Computers and UPS Roadnet
  • Improved connectivity with front-line staff
    results in operations efficiencies and more
    efficient delivery routes
  • Sales and Marketing Initiatives
  • 60 person sales force face-to-face with
    customers in the field
  • Sales team has produced positive results with
    annualized new customer volumes of approximately
    119 million litres
  • Voice-to-Voice team services the Residential line
    of business
  • Organization-wide Customer Service Commitment

29
U.S. Refined Fuels Business Overview
  • Three U.S. Refined Fuel acquisitions in 2009/10
    for US308 million
  • Residential and Commercial heating oil, propane,
    and commercial fuels distribution
  • Sunoco Home Comfort, Griffith Consumers, Griffith
    Energy
  • Annual volumes 463 million gallons (1.7 billion
    litres)
  • 223,000 customers 91 residential
  • Full service offering including HVAC
    installation, repair and maintenance
  • Well maintained storage and distribution assets
  • Four pipeline-supplied terminals and 44 retail
    bulk plants provide 31 million gallons of
    storage capacity
  • Strong health, safety and environmental track
    record

29
30
U.S. Refined Fuels Geographic Diversification
Albany
Rochester
Syracuse
Binghamton
Buffalo
Scranton
New York
State College
Harrisburg
Philadelphia
Pittsburgh
30
31
U.S. Refined Fuels Market Analysis
  • National Oilheat Research Alliance estimates 43
    of total heating oil consumption is in
    mid-Atlantic Region from Virginia to New York
  • New York and Pennsylvania have an estimated 3.5
    million homes fueled by heating oil
  • 33 of New York households and 25 of
    Pennsylvania households use heating oil as their
    primary source of energy

Heating Oil Market Data
Percentage of Total Heating Oil Consumption
Heating Oil Usage
50
State / District
43
40
New York
2,463
2,336
Pennsylvania
1,286
1,217
31
30
30
New Jersey
612
595
NY
Virginia
431
362
20
and
Maryland
308
316
PA
11
10
10
Delaware
64
77
6
District of Columbia
33
17
0
Total Mid-Atlantic
5,197
4,920
West
South
New England
Source National Oilheat Research Alliance, 2008.
32
U.S. Refined Fuels 2010 Initiatives
  • Completed the acquisition of Griffith Energy
    (January, 2010)
  • Integration of the three businesses substantially
    complete
  • One-time costs of 3.2 million incurred in 2010
  • Combined some operations in New York and
    Pennsylvania
  • Rebranding to Superior Plus Energy Services well
    underway
  • Hired Key Leadership roles, including a VP of
    Sales
  • Established a new organizational structure
  • Operational focus on sales and customer retention
    and satisfaction

33
Supply Portfolio Management
  • Supply Portfolio Management group provides
    expertise in wholesale supply, risk management
    and logistics to Superiors businesses
  • Third-party marketing accounts for about
    one-third of all activity with strong growth
    potential
  • Continued growth of third party business allows
    higher utilization of storage and transportation
    assets
  • Ability to optimize value of terminals, storage,
    rail transport and pipeline capacity
  • Significant propane and butane storage in
    Alberta, Michigan, New York state, Kansas and
    Texas

33
34
Wholesale Supply Market Footprint
EDMONTON
REGINA
MARYSVILLE/SARNIA
BATH
CONWAY
Supply Region Wholesale Market Region Transport
Flow Storage
MOUNTBELVIEU
34
35
Energy Services Opportunities
  • Canadian Propane
  • Customer Growth Initiatives
  • Continued focus on sales and marketing to attract
    and retain customers
  • Build and execute on a plan to leverage our
    safety expertise
  • Target existing customers and further penetrate
    with service offerings
  • Productivity Improvement Opportunities
  • Integration of ERP upgrade and web-based customer
    service applications and other technology
    improvements
  • Ability to pay for propane on-line and update
    account information
  • Continue to refine ERP and internal processes to
    improve cost structure

35
36
Energy Services Opportunities
  • U.S. Refined Fuels
  • Pursue propane and propane service expansion
    opportunities across all markets in the
    Northeastern U.S.
  • Cross-selling opportunities in conjunction with
    the Fixed-Price Energy Services business
    (electricity and natural gas) offerings to be
    introduced to existing customer base
  • Continue to improve cost structure by identifying
    back- office synergies and productivity
    improvements
  • U.S. industry consolidation opportunities
  • Potential tuck-in acquisitions in highly
    fragmented N.E. Heating Oil market

36
37
Energy Services Opportunities
  • Supply Portfolio Management
  • Leverage and diversify current storage locations
    and supply relationships to expand market
    presence
  • Expanded product offering
  • Offer supply and risk management solutions to
    customers

37
37
38
2010 and 2011 Financial Outlook Bridge Energy
Services
(millions of dollars) (millions of dollars)
Mid-Point of 2010 Outlook (100 115 million) (1) Mid-Point of 2010 Outlook (100 115 million) (1) 107.5
Weather normalization 10.0
Economic improvements and sales growth Economic improvements and sales growth Economic improvements and sales growth Economic improvements and sales growth Economic improvements and sales growth Economic improvements and sales growth 9.0
Absence of integration costs and full-year benefit of cost reductions Absence of integration costs and full-year benefit of cost reductions Absence of integration costs and full-year benefit of cost reductions Absence of integration costs and full-year benefit of cost reductions Absence of integration costs and full-year benefit of cost reductions Absence of integration costs and full-year benefit of cost reductions 3.5
Mid-Point of 2011 Outlook (120 140 million) (1) Mid-Point of 2011 Outlook (120 140 million) (1) Mid-Point of 2011 Outlook (120 140 million) (1) 130.0
(1) As provided in Superiors 2010 third-quarter
MDA
38
39
Energy Services Summary
  • Strong brand and leading positions in both
    end-use and geographic markets across Canada
  • Strong focus on customer service
  • Plans in place to grow existing customer base
  • Continued focus on productivity improvements and
    cost-saving initiatives to generate ongoing
    efficiencies

40
TSXSPB
Questions Answers
www.superiorplus.com
41
TSXSPB
Specialty Chemicals
www.superiorplus.com
42
Business Overview
  • Manufacturer and supplier of specialty chemicals
    and provider of technology-related services
  • Second-largest producer of sodium chlorate in
    North America and worldwide with an estimated
    production capacity of 26 and 15, respectively
  • Third largest producer of Potassium Chloralkali
    products in North America. Successful startup of
    Port Edwards, Wisconsin facility in Q4 2009
  • Nine manufacturing facilities
  • Approximately 500 employees

43
Product Diversification
Superior has diversified its Specialty Chemical
Business
2004 EBITDA
2009 EBITDA
44
Geographic Footprint
  • 500 employees
  • 510,000 MT sodium chlorate capacity from 7 plants
  • 10,500 MT sodium chlorite capacity from 2 plants
    largest worldwide
  • 39,000 MT chloralkali product capacity at
    Saskatoon
  • 103,000 MT potassium chloralkali products at
    Port Edwards
  • Sales offices China and Japan

45
2010 Capital Initiatives
  • Sodium chlorate efficiency improvement projects
  • Electrical energy 10 reduction
  • Valdosta, Georgia
  • Hargrave, Manitoba
  • Hydrogen utilization at the Chilean facility
  • Ownership of electrical generation Chile
  • Vancouver rectifier and debottlenecking
  • Total capital projects of approx. 30 million
    with a minimum 15 ROI
  • Pipeline of future opportunities

46
Pulp Market Update
  • Pulp inventories are at normalized levels
    approximately 35 days of inventory
  • Pulp prices remain high providing support for
    sodium chlorate markets
  • Many closed mills have re-started

Pulp statistics current as at November 10, 2010
47
Chlorate Market Update
  • Sodium chlorate market tight
  • Producer operations problems France/USA
  • Pulp mills running at high utilization rates
  • 80,000 tonnes demand has returned to North
    American market
  • ERCO on order control price increases announced

48
Chloralkali Market Update
  • 2010 industry operating rates continued to
    increase, currently above 90
  • Gulf Coast chlorine derivatives exports very high
    (EDC, vinyl etc)
  • Market conditions should be sustainable due to
  • USD currency weakness
  • Low natural gas price
  • Chinese industry operating rates are stated as
    being in the 60 range
  • Power constraints and high feedstock costs

49
Chloralkali Market Update
Chloralkali margins are well positioned relative
to past economic downturns
50
South American Expansion Opportunities
  • Brazil and Chile are low cost pulp regions
  • Superior will look to leverage its existing
    relationship with CMPC
  • Chilean facility completed in 2005
  • CMPC is a low cost pulp producer with a market
    capitalization of US10 billion as at July 2010
  • Opportunity to grow in Brazil as a result of CMPC
    growth
  • Brazil opportunities include
  • Sodium chlorate facilities
  • Sodium chlorite facilities
  • Alkali products
  • Export from North American facilities

51
Specialty Chemicals Opportunities
  • Continue to optimize existing chemical facilities
  • Chlorate industry consolidation opportunities
  • Exploring international expansion opportunities
  • Leverage chlorine dioxide technology
  • Leverage strategic partnerships
  • Use Port Edwards facility expansion to attract
    ECU customers to adjacent land (60 acres)
  • Additional opportunities to expand into other
    product lines

52
2010 and 2011 Financial Outlook Bridge Specialty
Chemicals
(millions of dollars)
Mid-Point of 2010 Outlook (95 105 million) (1) 100.0
Port Edwards volume and margin improvements Port Edwards volume and margin improvements 7.5
Mid-Point of 2011 Outlook (100 115 million) (1) Mid-Point of 2011 Outlook (100 115 million) (1) 107.5
(1) As provided in Superiors 2010 third-quarter
MDA
53
Summary
  • Stable cash flows throughout the recession
  • Port Edwards shutdown influenced 2009 results
  • Strong pipeline of opportunities
  • Demonstrated an ability to effectively execute a
    variety of projects
  • Product and geographic expansion projects are
    being developed

54
TSXSPB
Questions Answers
www.superiorplus.com
55
TSXSPB
Financial Overview
www.superiorplus.com
56
2010 Q3 and YTDFinancial Performance
Three Months Ended September 30,
Nine Months Ended September 30,
2010 2009 2010 2009
EBITDA from operations
Energy Services 4.9 3.1 51.8 57.0
Specialty Chemicals 26.9 22.1 71.8 74.4
Construction Products Distribution 7.6 7.1 17.3 11.9
39.4 32.3 140.9 143.3
Interest (17.9) (10.1) (51.6) (28.1)
Cash income tax recovery (expense) (0.6) 0.9 (0.9) (5.3)
Corporate costs (0.4) (3.8) (8.1) (10.4)
Adjusted Operating Cash Flow 20.5 19.3 80.3 99.5

Adjusted Operating Cash Flow per share basic (1) and diluted (2) 0.19 0.22 0.76 1.13
(millions of dollars, except per share amounts)
(1) The weighted average number of shares
outstanding for the three months ended September
30, 2010 is 106.6 million (2009 88.7 million)
and for the nine months ended September 30, 2010
is 104.9 million (2008 88.4 million). (2) For
the three and nine months ended September 30,
2010 and 2009, there were no dilutive instruments.
56
57
Third-Quarter Highlights
  • Benefits of a slow economic recovery evident
    throughout the third quarter
  • Increased non-heating volumes within the Energy
    Services business
  • Continued strength of both sodium chlorate and
    chloralkali volumes
  • Construction Products Distribution business
    continues to be negatively impacted by a
    difficult U.S. commercial construction and
    residential housing market
  • General restructuring and integration activities
    resulted in one-time costs of 3.2 million during
    the third quarter
  • Integration of the U.S. Refined Fuels business is
    substantially complete

58
2010 and 2011 Financial Outlook
(millions of dollars except per share amounts) (1)(2) 2010 2011
EBITDA from operations
Energy Services 100-115 120-140
Specialty Chemicals 95-105 100-115
Construction Products Distribution 18-25 25-40
Adjusted Operating Cash Flow per share 1.30-1.50 1.75-2.00
(1) Superiors 2010 and 2011Financial Outlook is
as provided in Superiors 2010 third-quarter
MDA (2) The assumptions, definitions, and risk
factors relating to the Financial Outlook are
discussed in Superiors 2010 third-quarter MDA
58
59
2010 and 2011 Financial Outlook Bridge
(all amounts per share) (all amounts per share)
Mid-Point of 2010 Outlook (1.30 to 1.50) (1) Mid-Point of 2010 Outlook (1.30 to 1.50) (1) 1.40
Impact of weather (approximately 0.10 to 0.20) 0.15
Economic improvements and sales growth within Energy Services Economic improvements and sales growth within Energy Services Economic improvements and sales growth within Energy Services Economic improvements and sales growth within Energy Services Economic improvements and sales growth within Energy Services Economic improvements and sales growth within Energy Services 0.10
Full year cost saving initiatives at U.S. Refined Fuels and Construction Products Distribution Full year cost saving initiatives at U.S. Refined Fuels and Construction Products Distribution Full year cost saving initiatives at U.S. Refined Fuels and Construction Products Distribution Full year cost saving initiatives at U.S. Refined Fuels and Construction Products Distribution Full year cost saving initiatives at U.S. Refined Fuels and Construction Products Distribution Full year cost saving initiatives at U.S. Refined Fuels and Construction Products Distribution 0.05
Stronger chloralkali gross profits and volumes Stronger chloralkali gross profits and volumes Stronger chloralkali gross profits and volumes Stronger chloralkali gross profits and volumes Stronger chloralkali gross profits and volumes Stronger chloralkali gross profits and volumes 0.08
Improved Construction Products Distribution volumes and margins Improved Construction Products Distribution volumes and margins Improved Construction Products Distribution volumes and margins Improved Construction Products Distribution volumes and margins Improved Construction Products Distribution volumes and margins 0.10
Mid-Point of 2011 Outlook (1.75 to 2.00) (1) Mid-Point of 2011 Outlook (1.75 to 2.00) (1) Mid-Point of 2011 Outlook (1.75 to 2.00) (1) Mid-Point of 2011 Outlook (1.75 to 2.00) (1) 1.88
(1) As provided in Superiors 2010 third-quarter
MDA
59
60
Multiple Sources of Capital
Superior successfully accessed the Common Share
and Convertible Debenture market during 2010 and
currently has a well diversified capital base
Capital allocation in million of dollars, as at
September 30, 2010.
60
61
Credit Rating Summary
61
62
Term Debt Repayment Profile As at September 30,
2010
( million)
Syndicated Credit Facility excludes 23.3 million
in letters of credit Convertible debenture
repayments based on face value
62
63
Tax Horizon
  • Superior has significant tax pools available to
    shelter future Canadian taxable income
  • Canada Cash Taxes
  • Taxable at the provincial level in approximately
    2020 at approximately 10
  • Taxable at both the federal and provincial level
    in approximately 2030 at approximately 25
  • U.S. Cash Taxes
  • Minimal cash taxes in 2010 and 2011 due to taxis
    basis associated with the Port Edwards expansion.
    Federal and State taxes increasing towards
    statutory rates thereafter

Tax Horizon based on Superiors existing asset
mix and capital structure
64
TSXSPB
Questions Answers
www.superiorplus.com
65
TSXSPB
Summary
www.superiorplus.com
66
2010 A Year of Repositioning
  • Focus on integration
  • Expensed 9 million in one-time costs
  • Three heating oil businesses
  • CI insulation
  • Completion of system upgrade at Superior Propane
  • Spent 11.1 million over 3 years
  • Ramp-up of Port Edwards sales and production
  • Sales and marketing functions expanded in all
    businesses

66
67
2011 Reaping the Rewards
  • Superior Propane ERP upgrade positions for
    future productivity improvements
  • Heating oil integration provides platform for
    improved results
  • Construction products platform established for
    growth as residential commercial activity
    improve
  • Full year benefit of Port Edwards expansion
  • Benefit from expanded sales and marketing
    programs
  • Organic growth and tuck-in opportunities for all
    3 businesses

67
68
Investment Highlights
  • High-yield corporation
  • Mature businesses with historically stable cash
    flows over various economic cycles
  • Low operating capital requirements
  • Leading competitive positions across businesses
  • Businesses are well positioned to participate in
    economic recovery

68
69
TSXSPB
Questions Answers
www.superiorplus.com
70
TSXSPB
ContactWayne Bingham Executive Vice-President
and Chief Financial Officer Jay
Bachman Vice-President, Investor Relations and
Treasurer
Suite 1400, 840 7 Avenue S.W. Calgary, Alberta
T2P 3G2 Tel 403-218-2970 Fax 403-218-2973 Toll
Free 1-866-490-7587 www.superiorplus.com
www.superiorplus.com
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