investor presentation fourth quarter - seeking alpha

INVESTOR PRESENTATION

2019 – Fourth Quarter

SupremeX (TSX : SXP)

Dated February 21, 2020

www.supremex.comPage / 2

SupremeX Presentation 2019

ABOUT SUPREMEX 4Growth and Diversification Strategy

A STRONG ENVELOPE PLATFORM 11Focus on Operational Excellence

BUILDING OUR PACKAGING PLATFORM 15Focus on Growth and Value-Added Markets

DELIVERING VALUE 20Focus on Financial Discipline

Q4 2019 RESULTS 26

CORPORATE AND FINANCIAL INFORMATION 31

Table

Of Contents

Investor Presentation



Forward Looking

Statement

Disclaimer

This presentation contains “forward-looking information” within the meaning of applicable

Canadian securities laws, including (but not limited to) statements about the EBITDA, Adjusted

EBITDA and future performance of Supremex and similar statements or information concerning

anticipated future results, circumstances, performance or expectations. Forward-looking

information may include words such as anticipate, assumption, believe, could, expect, goal,

guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. Such

information relates to future events or future performance and reflects current assumptions,

expectations and estimates of management regarding growth, results of operations, performance,

business prospects and opportunities, Canadian economic environment and liability to attract and

retain customers. Such forward-looking information reflects current assumptions, expectations and

estimates of management and is based on information currently available to Supremex as at the

date of this presentation. Such assumptions, expectations and estimates are discussed throughout

our MD&A for fiscal 2019 and for the fourth quarter ended December 31, 2019.

Forward-looking information is subject to certain risks and uncertainties, and should not be read as

a guarantee of future performance or results and actual results may differ materially from the

conclusion, forecast or projection stated in such forward-looking information. These risks and

uncertainties include but are not limited to the following: economic cycles, availability of capital,

decline in envelope consumption, increase of competition, exchange rate fluctuations, raw material

increases, credits risks with respect to trade receivables, interest rates fluctuations and potential

risk of litigation. Such risks and uncertainties are discussed throughout our MD&A for the year

ended December 31,2019 in particular, in “Risk Factors”. Consequently, we cannot guarantee that

any forward-looking statements or information will materialize. Readers should not place any

undue reliance on such forward-looking information unless otherwise required by applicable

securities legislation. The Company expressly disclaims any intention and assumes no obligation

to update or revise any forward-looking information, whether as a result of new information, future

events or otherwise.



About

Supremex

Pro-Forma

Royal Envelope

Acquisition

PackagingGrowing Supplier of

Paper-Based Packaging

- Folding Carton

- Corrugate

- E-Commerce Packaging Solutions

- Labels

- Specialty products

Supremex is a leading North

American manufacturer and marketer

of envelopes and a growing provider

of paper-based packaging solutions

for large national and multinational

customers, solutions providers and

e-tailers.

Including its most recent acquisition,

the Company operates 13 facilities

across seven provinces in Canada

and three facilities in the United

States employing approximately

935 people.

2019

PRO-FORMA

REVENUE(1)

$221.7M

U.S. ENVELOPE:

$45.5M

20% OF REVENUE

PACKAGING:

$54.5M

25% OF REVENUE

Envelope#1 In Canada

Top 3 in

North America

Long-Term

Revenue Objective50% - 50%

Packaging - Envelope

CANADIAN

ENVELOPE:

$121.7M

55% OF REVENUE

(1) Includes the pro-forma revenue contribution of Royal Envelope which amounts to $30M of Canadian envelope sales. The acquisition was concluded on February 18, 2020



$107.3M82%

$14.8M 11%

$9.8M7%

$121.7M55%

$54.5M25%

$45.5M 20%

$221.7M$131.9M

2019

PRO-FORMA Revenue(3)

Diversification

Effect

SUPREMEX PACKAGING

+456.0% during the projected period

(1) Canada Post reports Third Quarter 2019 results

(2) U.S. Postal Service Reports First Quarter 2020 Results


SUPREMEX U.S. ENVELOPE

+208.0% during the

projected period

SUPREMEX CANADIAN ENVELOPE

13.4% during the projected

period

2014

Revenue

KEY TRENDS

Canadian Envelope

Canada Post Transactional Mail

volumes down 11.3%(1)

U.S. Envelope

First Class Mail volumes down 3.8%(2)

Packaging

CPC Parcels volumes up 6.1%(1)

USPS Shipping & Packaging volumes

down 4.6%(2)

Beyond Canadian

Envelope

REVENUE TREND

https://www.canadapost.ca/cpc/en/our-company/news-and-media/corporate-news/news-release-detail.page?article=2019/11/22/canada_post_segment_&cattype=announcements&cat=newsreleases

https://about.usps.com/newsroom/national-releases/2020/0206-usps-reports-first-quarter-fiscal-2020-results.htm

https://about.usps.com/newsroom/national-releases/2020/0206-usps-reports-first-quarter-fiscal-2020-results.htm



1 – Maintain Market

Leading Position in Canada: ≈60% Market Share(1)

- Focus on capacity allocation

- Build efficiencies

- Contain costs

OBJECTIVE: Maintain EBITDA

and strong cash flow generation

3 - 6%

INDUSTRY DECLINE(1)

OBJECTIVE: Diversify into

high-value growth markets and maintain

strong cash flow generation

DOUBLE-DIGIT

INDUSTRY GROWTH(1)

3 - Diversify into Paper-Based Packaging:Building a National Platform

- Leverage paper converting expertise

- Similar core competencies

- Focused on Eastern Canada

• Consolidate high-value specialty folding carton

packaging market

• Expand e-commerce packaging offering

• Build die-cut box (corrugate) capacity for

vertical integration and food packaging

• Cross sell labels

3 Priorities

Growth

Strategy

2 – Geographic Diversification (U.S.):≺5% Addressable Market(1)

- Room to grow: a vast and fragmented

market place estimated at U.S.$2.32 B(2)

(1) Management Estimate as of December 31, 2019

(2) Envelope Manufacturers Association http://www.envelope.org/shipments (latest figures date back to 2017)

http://www.envelope.org/shipments



Building The Nation’s Largest

Envelope Manufacturer

Growth by Acquisitions

1990

Private equity

acquired

Supremex

1991

Acquired

Innova

Envelope

1994

Acquired

75% interest

in Classic

Envelope Plus

1996

Acquired

PNG Globe

Envelopes

2000

Acquired CML Industries Limited

(Regional Envelope, Regal Envelope,

Transit Envelope, Specialty Paper

Products and Precision Fine Papers)

1995

Cenveo

acquired

Supremex

1998

Acquired envelope

operations of

Dominion Blueline

2001

Undertook management

of Buffalo Envelope

from Cenveo

2006

IPO

2007

Acquired NPG

Envelope

2008

Acquired

Montreal Envelope

and Metro

Envelope

2010

Acquired

Pioneer

Envelopes

20151977

2020

Acquired

Premier

Envelope

Acquired

Royal

Envelope

NEW MANAGEMENT

Growth &

Diversification

1. Canada

2. U.S. Envelope

3. Paper-based

Packaging

2014



Recent

Acquisition

Envelope M&A

Strengthening Operations in Eastern Canada

$27.4M Purchase price

A leading envelope manufacturer and printer, mainly operating in Eastern Canada with

$30M of annual revenue

135 employees, 2 main facilities (Ontario and Quebec)

Reputation for high-quality products using latest printing technologies

Rationale:

• Strengthens operations in Eastern Canada

• Improves cash flow generation potential

• Provides additional capacity to grow into the U.S. envelope market

• Helps maintain higher capacity utilization rates by optimally reallocating production

• Access high quality human resources in a tight market

• Complementary customer base

• Reproduce successful acquisition of Premier Envelope in Western Canada in 2015

Objective:

• Protect market share in a declining market

• Improve envelope platform efficiencies and profitability

• Provide means to continue executing the diversification strategy



Growth and

Diversification

Strategy

2015

Classic

Envelope Inc.

Envelope manufacturer

in Northeast USA

Premier

Envelope Ltd.

Envelope manufacturer

in Western CanadaReplicating the same successful

growth strategy that led to

Supremex becoming the nation’s

largest envelope supplier.

2015-2020 M&A

2016

Bowers Envelope

Company, Inc.

Envelope

manufacturer in Midwest

USA

Durabox Paper Inc.

1st packaging M&A

Vertically integrated

manufacturer of

corrugated die-cut boxes

for the food industry

2017

Stuart Packaging Inc.

Cornerstone piece

Folding carton

manufacturer in Montreal

Multinational high-end health

& beauty markets

G2 Printing Inc.

& Pharmaflex Labels Inc.

Complementary to Stuart

Folding carton & labels

manufacturer near Montreal

Multinational

pharmaceutical customers

2018

M&A

Envelope

Packaging

2020

Royal Envelope Ltd

Envelope

manufacturer

in Eastern Canada



How It

All Ties In

The New Supremex



A STRONG

ENVELOPE

PLATFORMFOCUS ON OPERATIONAL

EXCELLENCE

Managing the Effects

of the Secular Decline

1. Optimal Geographical Footprint

- Market Leader in Canada

- Grow in U.S. Envelope Market

- #3 Supplier in North America

2. Diversified Customer Base

3. Strong EBITDA & Cash Flow Generation



Market Leader

In Canada

Disciplined Approach

Manage the Effects

of the Secular Decline

#1 Envelope Supplier- 9 dedicated envelope manufacturing facilities

$121.7M of PRO-FORMA Revenue(1)

in 2019

Strategy- Protect market share and bottom-line

- Disciplined approach to pricing

- Maximize EBITDA and cash flow

- Focus on capacity allocation

- Build efficiencies

- Contain costs

• > 50% of the market

• Price leadership and differentiation strategy

• Operational excellence

• Focus on operational excellence and Cash flows




Grow In

U.S. Envelope

Room to Grow with

Existing Capacity

Access to a vast market

Access to North America’s largest envelope market

(Product can be shipped efficiently within 800 KM radius)

# 3 Envelope supplier in North

America- U.S.$2.32 B market

- Can reach 60% of the U.S. envelope market

- Currently serving less than 5% of that market

- Structural changes in competitive landscape

- Royal Envelope acquisition provides

additional capacity

$45.5M of Revenue in 2019

Strategy- A healthy supplier in a distressed

competitive landscape

- Room to grow: can serve 60% of the U.S.

market from U.S. and Canadian operations

- Leverage Canadian capacity



EASTERN

20%

CENTRAL

31%

U.S.

33%

WESTERN

16%

Strong Customer Base

Regional Envelope Revenue Distribution(1)

National footprint +

local distribution:- Local market intimacy

- Cost effective delivery within 800 km

- Responsiveness

- Barriers to entry

Strong Envelope Customer-Base:- Large and leading corporations

- National resellers

- Direct mailers

- Merchants, solutions providers

and others

Diversified envelope

customer base

No client represents

more than 10% of revenue

The Supremex Edge

(1) For the twelve-month period ended December 31, 2019

Low Concentration

Risk



BUILDING

OUR PACKAGING

PLATFORMFocus on Growth and

Value-Added Markets

Diversifying in Growth

& High-Value Markets

1. Growth Strategy

i. Folding Carton Packaging

ii. Corrugated Carton Packaging

iii. E-Commerce Packaging

iv. Label

2. Becoming a National Supplier

3. Premium Customer Base



Packaging

4 Pillars of

Growth

FOLDING CARTON

- Consolidate fragmented

supply base, nurture and fill

existing capacity

- Become a leading supplier for

health & beauty and pharma

industries (high-value end

markets)

PRIMARY STRATEGY

CORRUGATED CARTON

- Build vertical integration

capabilities

- Supply the growing food

market

- In-source corrugate for e-

commerce packaging

OPPORTUNISTIC STRATEGY

E-COMMERCE

- Organic growth

- Supply retailers and e-tailers

with innovative products to

optimize shipping and

reduce over packaging

ORGANIC STRATEGY

LABEL

- Integrate new business with

legacy labels

- Cross sell to packaging and

envelope customers

- Integral to health & beauty

and pharma industries

OPPORTUNISTIC STRATEGY

1 2 3 4



Corrugated packaging

manufacturer for packaged foods

(pizza, frozen meats and veg.)

$8M annual revenue at

acquisition

Supports organic growth

opportunities in e-commerce

space (Conformer®) and food

delivery

CAPEX ($6.5M in 2017-2018)

to significantly grow capacity

and internal procurement

capabilities in a new facility

Vertical integration provides

cost synergies across platform

Premium folding carton for leading

multinationals in the cosmetics,

heath & beauty industries

$18M annual revenue at

acquisition

Strong “moat” with extensive audit,

certification and integrated quality

systems

CAPEX program ($1.2M in 2017-

2018 and $3.7M in 2019) to

significantly grow capacity and

grow share of wallet of existing

customers

Cornerstone of folding

carton M&A

Premium folding carton for leading

multinational corporations in the

pharmaceutical industry

$10M annual revenue at acquisition

Strong “moat” with extensive audit,

certification and integrated quality

systems – “pharmaceutical grade”

Perfectly complements existing

packaging operations and legacy

labels business

Purchasing synergies to be

extracted

2016 2017 2018First Building Blocks

3 Packaging Facilities

Recent M&A



Becoming a

National Supplier

Focus on Packaging

CURRENT PACKAGING REACH

SUPREMEX EXISTING DISTRIBUTION NETWORK

PACKAGING FACILITIES

Canadian-Centric 1. Roll-up specialty folding carton

in Montreal then Toronto

2. Organically grow e-commerce offering

Value Creation - Investments in CAPEX to grow capacity

(~$11M from 2017- 2019)

- Provide working capital and grow share

of wallet of existing customers

- Generate cross-selling opportunities

- Extract procurement synergies

- Leverage national and U.S. footprint



E-COM. AND

SPECIALTY

PRODUCTS

32%

FOOD

19%

CONSUMER

PACKAGED

GOODS

34%

PHARMA

15%

Premium Customer Base

Packaging Customers

End-Market Approximate Packaging Revenue

Distribution(1)

(1) For the twelve-month period ended December 31, 2019

Proximity

to customer base:- Multinational customers sourcing locally

- Cost effective delivery within 1,000 km

- Strong barriers to entry

- Focused on quality, design and reliability

Premium customer-base:- Multinational corporations

- Third party manufacturers

- Food distributors, delivery

- E-tailors and known retailers



DELIVERING

VALUE Focus on Financial Discipline

1. Growing Revenue & Diversification

2. Profitability Trend

3. Healthy Cash Flows

4. Returning Shareholder Value

5. Optimizing Capital Allocation

6. Sustainable Leverage

Operational Mandate



M CAD

2015 – 2019 Revenue Trend

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

2015 2016 2017 2018 2019

Canadian Envelope U.S. Envelope Packaging

Growing Revenue

& Diversification

Successful

Diversification

Compound Annual growth

Rates (2015 - 2019)

• 50.94% Packaging

• 16.15% U.S. Envelope



2015 – 2019 Adjusted EBITDA(1) and Operating Earnings

before Depreciation, Amortization and Other Items(2) Trend

Profitability Trend

Managing the Effects of Secular

Decline in Envelope

(1) Adjusted EBITDA are earnings before financing charges, income tax expense, depreciation of property, plant and equipment and right-of-use assets and amortization of intangible assets, adjusted to remove items of significance that are not

in the normal course of operations. Adjusted EBITDA excludes the following items of significance ; the gains related to the amendments made to the pension and post retirements benefits, expenses related to the shutdown of non-core

operations of Printer Gateway, contingent consideration for remuneration in connection with business combinations, restructuring expenses to optimize envelope operations, Durabox’s new facility start-up costs, an impairment charge of

goodwill, gains and losses on disposal of property, plant and equipment and right-of-use assets and the impact of IFRS 16. See MD&A for those periods.

(2) Operating earnings before depreciation, amortization and other items (not adjusted for the $5.1 M impact of IFRS 16 in 2019). Other items includes expenses related to the shutdown of non-core operations of Printer Gateway, restructuring

expenses to optimize envelope operations, an impairment charge of goodwill, (gain) loss on disposal of property, plant and equipment and right-of-use assets, financing charges and income tax expense.

Adjusted EBITDA(1)

- 2018-2019 focus on operational leverage

and extracting cost efficiencies

Pressure on Margins Since 2016: - Growing exposure to a highly competitive

U.S. envelope market (not the dominant player)

- Active M&A program

- Cost inflation (mainly on paper prices) and

lag in increasing selling prices

- M&A integration, transformation/pivot

$28.1 $27.4 $26.7 $26.0

$20.2

$33.1 $27.4 $25.8 $24.1 $25.3

19.8%

17.0%

14.8%

13.4%

10.6%

23.3%

17.1%

14.4%

12.3%

13.2%

0%

5%

10%

15%

20%

25%

$0

$5

$10

$15

$20

$25

$30

$35

2015 2016 2017 2018 2019

Adjusted EBITDA $

Operating earnings before depreciation, amortization and other items $Adjusted EBITDA as a % of revenue

Operating earnings before depreciation, amortization and other items as a % of revenue

M CAD

(1)

(2)

(1)

(2)



2015 – 2019

Cash Flows From Operations Before Working Capital Adj.

Healthy Cash Flows

Management Focus

$21.7 $21.3 $19.6

$16.5

$19.5

$0

$5

$10

$15

$20

$25

2015 2016 2017 2018 2019

M CAD

Strong Cash Generation:- $8.9 M Free Cash Flow (1)

- $24.1M Working Capital

- 44.3% Cash flow Conversion Rate

Optimizing Capital Allocation to Support

Shareholder Value Creation:- Dividend / NCIB (program was in place until

August 7, 2019)

- Investing in future growth

(1) Computed as EBITDA adjusted for IFRS 16 less CAPEX, Interest and Income Tax paid



Returning

Shareholder Value

Capital Allocation

Dividend Growth- 6.1% 4 Year CAGR dividend growth

-10.7% dividend yield

Normal Course Issuer Bid- NCIB buyback program for up to 1.77%

of outstanding shares until August 2019

- Purchased 150,000 shares for cancellation,

representing a consideration of $0.4M in 2019$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

2015 2016 2017 2018 2019

Dividends Paid Shares Repurchased for Cancellation

M CAD

$ Towards Dividends and

Shares Repurchased for Cancellation (NCIB)



$2 $2$8 $4 $6

$6 $7

$8

$8 $8

-$6

$2

-$16-$11

$0$15$12

$17

$12$0

$(20)

$(10)

$-

$10

$20

$30

$40

2015 2016 2017 2018 2019

CAPEX Dividends & Buy backs

Debt (increase) repayment Business acquisitions

Returning Short Term Value

While Building for the Future

Optimizing

Capital Allocation

Short & Long Term

View

Sustained Cash Flows Have Allowed:- $6.1 M for CAPEX in 2019

(including intangible assets)

- $7.3 M dividends paid in 2019

Optimal Capital Allocation Between:- Returning short term value to investors

(dividends and buybacks)

- Investing in future growth

M CAD



Q4 - 2019

RESULTS

Financial Highlights

1. Managing & Diversifying

2. Q4-2019 Results



Managing &

Diversifying

Focused on Growth

and Value-Added

Markets

- Managing the effects of the secular

decline in the Canadian envelope market

- Building a new growth platform in U.S.

envelope and packaging

Revenue

Revenue (in millions of dollars)

2019Q4

2018Q4

2019YTD

2018YTD

CANADIAN ENVELOPE

Volume variation

Average selling price variation

Total variation

23.9

(14.2)%

8.1%

(7.3)%

25.8

(7.4)%

9.2%1.1%

91.7

(12.6)%

10.6%

(3.3)%

94.8

(10.9)%

4.2%(7.2)%

U.S. ENVELOPE

Volume variation

Average selling price variation (in CAD)

Total variation

11.9

(7.1)%

1.5%

(5.7)%

12.6

3.5%

11.2%

15.1%

45.5

(2.7)%

7.7%

4.8%

43.4

(4.0)%

6.8%2.5%

PACKAGING

(Canada & U.S.)

Total variation13.4

(15.0)%

15.8

22.2%

54.5

(4.1)%56.9

64.4%

TOTAL REVENUE

Revenue variation

49.2

(9.2)%

54.2

9.7%

191.7

(1.8)%

195.18.9%



Q4-2019

Results

Summary

- Revenue decline comes from both envelope

and packaging sales.

- The decrease of $2.7 million in Adjusted

EBITDA stems primarily from the lower

contribution from the packaging and

specialty products segment.

Select Financial Information (In thousands of dollars)

Three-Month PeriodsEnded December 31

Twelve-Month PeriodsEndend December 31

2019 2018 2019 2018

Revenue 49,188 54,150 191,669 195,087

Operating Expenses 37,289 40,785 143,766 146,294

Selling, general and administration

expenses5,204 5,397 22,555 24,708

Operating earnings before depreciation,

amortization and other items(1)6,695 7,968 25,348 24,085

Adjusted EBITDA(2) 5,406 8,148 20,212 26,041

Adjusted EBITDA Margin % 11.0% 15.1% 10.6% 13.4%

Cash Flows from Operating Activities

(Before W.C. Adjustments)5,708 5,264 19,531 16,491

Free Cash Flows(3) 4,773 3,445 8,947 8,037

(1) Other items includes restructuring expenses to optimize envelope operations, an impairment charge of goodwill, (gain) loss on disposal of property, plant and equipment and right-of-use assets,

financing charges and income tax expense.

(2) See “Definition of Adjusted EBITDA” in Company’s MD&A

(3) Computed as EBITDA adjusted for IFRS 16 and an impairment charge of goodwill less CAPEX, Interest and Income Tax paid.



Q4-2019 Segmented

Results

Summary

The Company currently operates in two

reporting segments: the manufacturing and

sale of envelopes and the manufacturing and

sale of paper-based packaging solutions and

specialty products.



Twelve-Month PeriodsEndend December 31

2019 2018 2019 2018

Segmented Revenue

Envelope 35,744 38,332 137,123 138,201

Packaging & Specialty products 13,444 15,818 54,546 56,886

Total revenue 49,188 54,150 191,669 195,087

Segmented Adjusted EBITDA

Envelope 5,786 6,121 19,982 20,034

% of segmented revenue 16.2% 16.0% 14.6% 14.5%

Packaging & specialty products 319 2,039 2,702 7,034

% of segmented revenue 2.4% 12.9% 5.0% 12.4%

Corporate and unallocated costs (699) (12) (2,472) (1,027)

Total Adjusted EBITDA(1) 5,406 8,148 20,212 26,041

% of total revenue 11.0% 15.1% 10.6% 13.4%




Q4-2019

Results

Summary


Key financial information



Twelve-Month PeriodsEnded December 31

2019 2018 2019 2018

Adjusted EBITDA(1) 5,406 8,148 20,212 26,401

Goodwill impairment ꟷ 16,137 ꟷ 16,137

Restructuring (recovery) expenses (124) 1,219 (124) 1,219

(Gain) loss on disposal of PPE and ROU assets (9) ꟷ 165 (777)

Relocation and start-up cost ─ 180 ─ 333

Expenses for contingent remuneration related to

business combination─ ꟷ ─ 1,623

Actual lease payments (IFRS 16 impact) (1,289) ─ (5,136) ─

EBITDA 6,828 (9,388) 25,307 7,506

Depreciation of PPE 1,100 1,286 4,837 4,295

Depreciation of right-of-use assets 1,172 ─ 4,697 ─

Amortization of intangible assets 557 588 2,193 2,088

Operating earnings (loss) 3,999 (11,262) 13,580 1,123

Financing charges, net 816 557 3,435 1,841

Earnings (loss) before income taxes 3,183 (11,819) 10,145 (718)

Income taxes expenses 894 607 3,057 4,075

Net earnings (loss) 2,289 (12,426) 7,088 (4,793)

Basic and diluted net earnings per share 0.08 (0.44) 0.25 (0.17)

Dividend declared per share 0.065 0.065 0.26 0.26

Total assets 179,649 159,703



CORPORATE

AND FINANCIAL

INFORMATIONSummary

Additional Information

1. 2020 Priorities

2. Board of Directors

3. Management Team

4. Investment Highlights



Looking Forward

2020

Priorities 1. Maintain a Healthy Balance

Sheet- Working capital optimization

- Tightly manage expenses

2. Optimize Shareholder Value

1. Nurture Packaging Platform- Integrate Royal Envelope

- Fill newly added capacity (Durabox) and

existing capacity (Stuart and G2)

- Organic growth

2. Manage Effects of the Decline of

the Envelope Industry- Continue growth strategy in packaging and

U.S. Envelope, organically and with

opportunistic M&A

- Continue to streamline envelope operations

3. Improve EBITDA- Look to extract cost synergies

- Increase share of packaging revenue

- Operational leverage

Operational Financial



Revenue (in millions of dollars)

2018Q1

2017Q1

2016Q1

CANADIAN ENVELOPE

Volume variation

Average selling price variation

Total variation

25.9

(9.6)%

2.1%

(7.8)%

28.1

(5.3)%

0.6%(4.8)%

29.5

1.5%

6.7%8.4%

U.S. ENVELOPE

Volume variation

Average selling price variation (in CAD)

Total variation

10.1

(7.8)%

0.3%

(7.5)%

11.0

24.5%

(4.3)%

19.1%

9.2

56.1%

14.6%78.9%

PACKAGING & SPECIALTY PRODUCTS(Canada & U.S.)

Total variation

12.9

111.5%

6.1

137.8%

2.68.9%

TOTAL REVENUE

Revenue variation

48.9

8.4%

45.2

9.4%

41.318.9%

Strong Governance

BOARD OF DIRECTORS / Non-Executive

ROBERT B. JOHNSTON

CHAIRMAN

EVP and Chief Strategy Officer of The InterTech Group, Inc. Was CEO and Vice Chairman of

The Hudson’s Bay Company. Sits on the Boards of Circa Enterprises Inc., Colabor Group Inc.,

Corning Natural Gas Holding Corporation, FIH group plc, and South Carolina Community Loan

Fund. Holds an MBA from John Molson School of Business and a Master in Public Policy and

Public Administration. Holds the ICD.D designation from the Institute of Corporate Directors.

NICOLE BOIVIN

Strategic Consultant and Corporate Director. Started her independent practice in 2017 and

acts as a strategic advisor dealing with disruption, emerging technologies, M&A and changes

in leadership and strategy. Previously held various executive positions with Manulife. Sits on

the Board of RES PUBLICA Capital. Holds an MBA and the ICD.D designation from the

Institute of Corporate Directors.

GEORGES KOBRYNSKYLead Director of the Board of Directors and Chair of Audit Commitee of Cascades Inc. Was

SVP, Investments Forest Products at SGF and held various senior positions at Domtar Inc.

Holds an MBA from McGill and 2 Bachelors degrees.

DANY PARADIS

President of Nuera Air. Previously, held senior executive and executive position at Yellow

Pages Limited, Fibrek and Domtar. Sits on the Board of Directors of L’Aubainerie. He holds a

Bachelor of Actuarial Sciences from Laval University and the ICD.D designation from the

institute of Corporate Directors.

STEVEN P. RICHARDSON

Corporate Director of Parkland Fuel Corporation and serves on the Audit and the Human

Resource and Corporate Governance Committees. Previously CFO and Director of Hudson’s

Bay Company, CFO at Wells Fargo Financial Canada and CFO and Director at Associates

Financial Services of Canada and Beneficial Canada Inc. He is a CPA, CMA and holds the

ICD.D designation from the Institute of Corporate Directors.

ANDREW I. SULLIVANSenior VP of RR Donnelley Brazil. Previously President of RR Donnelley Canada. Held

various sales executive positions with RR Donnelley/ Moore Corporation and Relizon Canada.

Has worked in the printing business since 1978.

WARREN J. WHITECorporate Director, held many senior leadership positions for large international manufacturing

organizations, CGI and Alcan. He sits on the Board of Circa Enterprises Inc., Colabor Group

Inc.and Titan Logix Corp. He is a CPA, CGA and an MBA graduate from Concordia University.

Corporate

Governance



Experienced

Leadership

Industry Expertise

MANAGEMENT TEAM

STEWART EMERSON

President & CEO

(Director of SXP)

29 years industry experience

Started at predecessor to Supremex in 1990. Previously VP

and GM Central Region and Buffalo Envelope. Responsible

for leading many successful M&A integrations.

GUY PRENEVOST

CFO & Corporate Secretary

24 years of accounting & industry experience

Joined Supremex in 2018. Previously CFO of Rolland

Enterprises Inc., a commercial paper supplier. Also held various

finance positions at Cascades Inc. Holds an MBA and a CPA,

CMA designation.

JOE BAGLIONE

VP and GM, Eastern Canada

Envelope

28 years of industry experience

Joined Supremex in 1991. Held various sales and marketing

positions. Previously VP & GM of the US Divisions.

EDWARD GAUER

VP and GM, Western region

28 years of industry experience

Joined Supremex in 1991. Held the position of General

Manager of Manitoba/Saskatchewan at a predecessor to

Supremex.



1 - MARKET LEADER2 - SUCCESSFUL

DIVERSIFICATION

≈ 60% of CAD envelope market

Revenue from packaging and specialty products represent

28.5%of total revenue in 2019

3 - FINANCIAL DISCIPLINE 4 - SHAREHOLDER RETURN

$8.9 M 2019 free cash flow 10.7% Dividend yield

Investment

Highlights

TSX: SXP

Analysts Coverage

- Industrial Alliance

Neil Linsdell, CFA

Shareholdership

- Zucker Trust(1):

19%

- Management and BOD: 1%

(1)The Article 6 Marital Trust created under the First Amended and Restated Jerry Zucker Revocable Trust dated 4-2-07

MARKET DATA (TSX: SXP)

(February 19, 2020)

Key Metrics

(Q4-2019)

- Shares Outstanding:

- Last Price :

- Market Cap:

- Average Daily Volume (10d):

- High-Low (52w):

28,130,469

$2.31

$65.0M

49,550

$2.23 - $3.59

- P/E:

- EPS (LTM):

- Adjusted EPS (LTM)

- Dividend Yield:

- Adjusted EBITDA Margin:

9.7x

$0.25

$0.25

10.7%

10.6%

SupremeX presentation 2019

CLICK HERE to subscribe to the investor email alerts

INVESTOR PRESENTATION

2019 –Fourth Quarter

HEAD OFFICE

7213 Cordner Street

LaSalle, Quebec H8N 2J7

Tel: (514) 595-0555

www.supremex.com

Stewart Emerson

[email protected]

Tel: (514) 595-0555 extension 2316

investor presentation fourth quarter - seeking alpha

Documents