INVESTOR PRESENTATION - JUNE 3, 2021 (TSXV: GA)
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
DISCLAIMER FORWARD-LOOKING INFORMATION This presentation (this “Presentation”) contains “forward-looking information” and “forward-looking statements” within the These risks, uncertainties, assumptions and other factors could cause the Company’s actual results, performances, achievements meaning of applicable securities laws (together, "forward-looking statements"). Forward-looking statements in this and experience to differ materially from the Company’s expectations, future results, performances or achievements expressed or Presentation include, but are not limited to, statements with respect to: the Company’s business plan and strategy, implied by the forward-looking statements. The forward-looking statements contained herein are presented for the purpose of development and commercialization plans and objectives, business performance an, prospects and opportunities available assisting readers in understanding the Company’s expected financial and operating performance and the Company’s plans and to the Company, values and other economic indicators and estimations. Often but not always, forward-looking statements objectives and may not be appropriate for other purposes. You should read this information with the understanding that the can be identified by the use of words such as “anticipate”, “outlook”, “envisage”, “believe”, “expect”, “project”, “estimate”, Company’s actual future results may be materially different from what it expects. These forward-looking statements are expressly “likely”, “intend”, “should”, “could”, “may”, “might”, “target”, “plan”, “goal” and other similar expressions or variations qualified in their entirety by this cautionary statement. The Company disclaim any obligation to update forward-looking (including negative variations) of such words and phrases. Forward-looking statements are based on certain material statements, except as required by law. assumptions and analysis made by the Company, and the opinions and estimates of management as of the date such statements are made and they represent management’s best judgment based on facts and assumptions that Additional Cautionary Language management considers reasonable in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. The information contained in this Presentation is current as of June 2021 and does not purport to be all-inclusive or to contain all information that prospective investors may require. This Presentation is not, and is not intended to be, an advertisement, The material assumptions upon which forward-looking statements in this Presentation are based include, among others, prospectus or offering memorandum, and is made available on the express understanding that it does not contain all information assumptions with respect to: commercialization, growth plans and cash flows; the completion of target acquisitions; the that may be required to evaluate, and will not be used by readers in connection with, the purchase of or investment in any demand for the Company’s services and products; future demand and trends in industries in which the Company may securities of any entity. This Presentation, accordingly, should not be treated as giving investment advice and is not intended to participate; the Company’s ability to achieve expected synergies cost savings and revenue; the Company’s ability to access form the basis of any investment decision. It does not, and is not intended to, constitute or form part of, and should not be financing on favorable terms from time to time; the Company’s ability to protect its intellectual property rights and that the construed as, any recommendation or commitment by the Company or any of its directors, officers, employees, direct or indirect Company will not infringe upon the intellectual property rights of others; the Company’s ability to source materials and shareholders, agents, affiliates, advisors or any other person, or as an offer or invitation for the sale or purchase of, or a solicitation of products at a reasonable cost; the Company’s ability to attract and retain customers; the continuation of executive and an offer to purchase, subscribe for or otherwise acquire, any securities, businesses and/or assets of any entity, nor shall it or any part operating management or the non-disruptive replacement of them on competitive terms; the regulatory environment in of it be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision which the Company operation; and stable market and general economic conditions; however, this data is inherently whatsoever. Readers should not construe the contents of this Presentation as legal, tax, regulatory, financial or accounting advice imprecise. The Company makes no representation that reasonable businesspeople in possession of the same information and are urged to consult with their own advisers in relation to such matters. The Company currently operates in a highly would reach the same conclusions. Although the Company believes that the assumptions underlying forward-looking competitive market landscape. There can be no guarantee that the Company will achieve any of its intended targets. statements are reasonable, they may prove to be incorrect and the Company cannot assure that actual results will be consistent with such statements. Given these risks, uncertainties and assumptions, you should not place undue reliance on Where this Presentation quotes any information or statistics from any external source, it should not be interpreted that the these forward-looking statements, or the information contained in such statements. Company has adopted or endorsed such information or statistics as being accurate. The Company also advises investors that some of the information presented herein is based on or derived from statements by third parties, has not been independently verified Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is by or on behalf of the Company, and that no representation or warranty, express or implied, is made as to, and no reliance should subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including the Company’s be placed on, the fairness, accuracy, completeness or correctness of this information or any other information or opinions potential requirement for additional funding to develop its business and its ability to acquire such funding on commercially contained herein, for any purpose whatsoever. acceptable terms; and risks relating to the following: the Company’s failure to economically commercialize its services and products; failure to protect the Company’s intellectual property rights; changes to the regulatory environment in which the An investor is not entitled to rely on parts of the information contained in this Presentation. The Company have not authorized Company operate and/or may operate; litigation or regulatory action; the ability of the Company to maintain all licenses and anyone to provide investors with additional or different information. If anyone provides an investor with additional or different or permits necessary for the Company to carry out its businesses; delays or other problems in sourcing materials and products; inconsistent information, including statements in media articles about the Company, the investor should not rely on it. The the Company’s inability to maintain or improve its competitive position; future demand and trends in sales failing to meet Company does not intend, and does not assume any obligation, to update forward-looking statements contained in this the Company’s expectations; the Company’s failure to retain key personnel and hire additional personnel needed to Presentation to reflect new information, subsequent events or otherwise, except as required by applicable securities law. develop its business; the Company’s failure to adequately evaluate its current business and future prospects; foreign conversion rates; changes to applicable laws of any jurisdiction in which the Company’s operate or proposes to operate; and U.S. Non-Solicitation the Company’s business practice reputation being negatively affected by customer or user complaints or negative publicity. This Presentation is not an offer of securities for sale in the United States and is not an offer to sell or solicitation of an offer to buy any securities of the Company nor shall it form the basis of, or be relied upon in connection with any contract for purchase or subscription. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, or the securities laws of any state and may not be offered or sold in the United States absent registration or pursuant to an applicable exemption therefrom. 2
3 POISED TO TAKE PIZZA TO NEW HEIGHTS Scale GA Pizza nationally with our GOAL: objective of becoming a globally recognized premium pizza brand by 2022. GA Pizza’s sustainably-built, There's a growing market for Omnichannel: When freezer-to-table consumer at home pizza experiences consumers think “pizza,” packaged goods (CPG) is we’re there revolutionizing our relationship with the freezer aisle Global frozen pizza market GA Pizza’s omnichannel brand GA Pizza’s CPG line includes 8 expected to reach US$17.3B by platform raised ~$13M within 6 delicious pizzas, 75% of which are 2023.1 E-commerce sales almost months of launching—‘Pizza as meat-free or plant-based — doubled in order volume a Service’ meets consumers partially-baked and flash frozen to between January and April wherever they are, including cook in 7 mins or less in 2020.2 direct-to-consumer (DTC). conventional home ovens. 3 1. “Frozen Pizza Market Growth & Trends” (Grand View Research, 2020) 2. “Retail e-commerce and COVID-19” (Statistics Canada, 2020)
WE DON’T WANT TO BE THE ONLY PIZZA YOU EAT, JUST THE BEST FROZEN PIZZA YOU EAT TOTAL FROZEN PIZZAS SOLD 82,651 31,285 11,897 Q3 2020 Q4 2020 Q1 2021 4
THE PIZZA MARKET OPPORTUNITY GLOBAL FROZEN PIZZA Consumer demands are driving increased growth in natural, MARKET TO REACH plant-based and ready-to eat food in the frozen category. US$25.2B BY 20251 +9.5% +11.9% +5.5% Growth in natural / CAGR in the CAGR in the organic plant-based food “ready-to-eat” preference in 2020 2 market through 2027 3 category through $25.2B 2027 4 Today’s pizza lover is increasingly seeking plant-based, $11.3B naturally-sourced, and healthy products with quality driving their key purchase decision. 2016 2025 1. “Frozen Pizza Market Growth & Trends” (Grand View Research, 2020) 2. “US Natural and Organic Market Due for 9.5% Growth in 2020” (Natural Products Global, 2020) 3. “Plant Based Food Market - Global Opportunity Analysis And Industry Forecast” (Meticulous Research, 2020) 4. “Ready Meals Market Size, Share & Trends Analysis” (Grand View Research, 2020) 5
PIZZA KEY PERFORMANCE INDICATORS 284% Q3 2020 Q4 2020 Q1 2021 REVENUE REVENUE REVENUE CPG: $107,303 CPG: $121,606 CPG: $150,594 DTC: $16,500 DTC: $165,060 DTC: $634,618 DTC GROWTH Q4/20 - Q1/21 28% TOTAL REVENUE $1,072,338 TOTAL REVENUE $703,044 TOTAL REVENUE $489,226 CPG GROWTH Q4/20 - Q1/21 6 Note: All sales figures are unaudited
EXPLOSIVE GROWTH IN DTC FOOD HelloFresh is the An emerging A leading online A leading grocery Home to the United States’ leading plant-based food grocery company e-commerce software World's First Pizza meal kit company technology company in Canada company Subscription XTRA: HFG TSXV: VERY TSX: FOOD TSX: LOCL TRADING MKT. CAP. MKT. CAP. MKT. CAP. MKT. CAP. JUNE 3RD, 2021 €13B+ 1 C$450M+ 1 C$550M+ 1 C$170M+ 1 TSXV: GA ● 7 million active users in Q1 ● Second plant-based meat ● ~310,000 active ● Delivered ~C$35M in ● Over $1M in total revenue 2021, resulting in ~30 million company to go public, subscribers in Q2 2021 revenue for Q2 2021 with in Q1 2021, up 53% QoQ; orders with a ~20x increase in representing a revenue nearly 30,000 active 82,000 pizzas sold in Q1 share price1 run-rate of C$440M with customers within the 2021 with DTC revenue ● Better than estimated 30% gross margins1 eGrocery business, a up 284% QoQ1 performance in Q1 2021 ● The company delivered year-over-year increase of resulted in management over C$1M in sales in the ● Over 1.1M grocery products ● “GA Pizza Club,” saw over 30%1 revising growth for 2021 month of March 2021 were delivered to 10,000 orders placed from 35% to 45% alone1 customers in Q2 2021 with ● Partners and customers across Southwestern over 4,000 grocery include Carrefour Group Ontario in Q1 20211 product SKUs available for (EPA: CA), Walmart (NYSE: delivery1 WMT), Microsoft (NASDAQ: MSFT), and SPUD.ca1 1. As of May 26th 2021 per Company Filings and SEDAR 7
OMNICHANNEL ADVANTAGE Make delicious pizza available to everyone, everywhere. GA Pizza’s diverse channel mix delivers a better brand experience for pizza lovers—enhancing customer relationships and maximizing marketing investments. DIRECT-TO-CONSUMER WHOLESALE / CPG RESTAURANTS & EXPERIENCES GA Pizza Club, our premium frozen pizza subscription Focusing on premium and multi-unit grocers, Birthplace of our signature naturally leavened personal offering shipped over 25,000 boxes since its as well as securing distributor relationships to pizzas, both made-to-order and our frozen line - September 2020 launch. Our pizza gifting platform, scale our grocery presence as production continues to be a culinary destination for all of our allows consumers to send chef-curated pizza boxes increases. customers and a well of inspiration for our content and and gift cards to friends and family. earned media channels. 8
A BETTER BRAND EXPERIENCE Omnichannel shoppers have a 30% higher lifetime value than those who shop through a single channel.1 9.5% 7.5% 89% year-over-year year-over-year customer retention increase in decrease in cost rate vs. 33% for annual revenue1 per customer companies with contact1 weak omnichannel customer engagement2 ) 1. “Omni-Channel Customer Care” (Aberdeen Group Inc.) 2. "Digital Impact on In-Store Shopping" (Google, Ipsos MediaCT, Sterling Brands) 9
WHOLESALE: SOUTHWESTERN ONTARIO FIESTA FARMS SUMMERHILL MARKET THE DRAKE COMMISSARY MAMA EARTH ORGANICS THE BIG CARROT 66 RETAILERS & COUNTING 10
PIZZA PLANS FOR 2021 SERIES A Biodegradable Products Closed Master Institute New funding round production certification technology facility platform Q1 Q3 Q2 Q4 Market expansion to GA New "N" postal Brand Direct List Launch National code/South June 3rd rollout Western ON 11
A PLAN FOR GROWTH Pizza production will move to a gourmet operations facility in Q3 2021. The long-awaited increase in production capacity has GA Pizza poised for hypergrowth. To-date, all production has been housed within our Spiritual Home and restaurant on Adelaide. With the entry of the GA production facility into our organizational ecosystem, our production capacity is projected to expand rapidly. Q1 2021 Q2 2021 Q3 2021 Q4 2021 1K Pizzas 2K Pizzas 5K Pizzas 10K Pizzas Per Day Per Day Per Day Per Day Q4 TARGET: 10K PIZZAS PER DAY 12
KEY CUSTOMER TRENDS FROZEN SHOPPING LOCAL/ ONLINE / DTC SALES IS HOT INDEPENDENT SKYROCKETED Frozen food had a surprise Greater support of brands that E-commerce sales have increased breakout with sales jumping are connected to communities. by 45.8% in order volume from by 94% in March 2020 Consumers are attracted to 2019-2021, as a result of COVID-192 compared to a year earlier 1 quality products from authentic, independent brands “A lot of the growth is coming from It’s all part of a greater awareness about Two years ago, only 13.6% of sales were made small brands that have healthier, clean healthy eating, food waste and climate from online purchases. Today, that number is labels, or vegetarian lines. People are change, as well as a desire to keep money expected to reach 19.5% in 2021.2 discovering that product quality and in the neighbourhood. taste has improved” - John Owen, Mintel 1. “New Data Suggests Frozen Food Surge Will Have Longer Shelf Life” (American Frozen Food Institute, 2020) 13 2. "Retail Ecommerce Sales Worldwide, 2019-2024" (eMarketer, Dec 2020)
THE PLANT-BASED REVOLUTION PLANT-BASED DIET AWARENESS While not everyone is adapting full-time plant-based diets, an increasing amount are adapting to a hybrid diet 1, 2 65% 29% 4% 2% OMNIVORE FLEXITARIAN VEGETARIAN VEGAN “I eat a wide “I eat a wide “I eat no meat, “I eat no animal variety of foods” variety of foods dairy, pork, products at all” but trying to eat chicken, etc.” LESS meat, What goes with GA Pizza’s dairy, pork, all-natural vegan pizza dough? chicken etc.” Premium plant-based cheese! Housemade pumpkin seed parm Violife® Mozzarella Style Shreds — free from Currently, 75% of GA pizzas are dairy, soy, gluten, lactose, nuts, preservatives and Non-GMO plant-based or meat-free 1. “Top Trends in Prepared Foods 2017: Exploring trends in meat, fish and seafood; pasta, noodles and rice; prepared meals; savory deli 14 food; soup; and meat substitutes” (Global Data, 2017) 2. “Who is the Plant-Based Shopper?” (Plant Based Foods Association, 2020)
FOCUS ON SUSTAINABILITY “Based on customer feedback from our e-commerce channel, we decided that, out of the gate, we wanted to be shipping with less waste,” [Ali Khan Lalani, founder & CEO] explains. And this led the brand to commit to achieving 100-percent divertible consumer packaging and compostable product packaging. (...) “Our purpose is to show the world that better can be easy…We’ve built the holistic GA Pizza experience to be better.” Food Service & Hospitality Magazine, “The Annual Green Report,” April 2021 100% DIVERTIBLE PACKAGING Current DTC Our pizzas are Secured sustainable Working with local partner: On path to BPI packaging is 95% shipped with product packaging Alphapoly on sustainable certification — our recyclable, with a liner responsibly materials — compostable packaging designed to compostable made of 20 recycled sourced dry ice and made from breakdown into nutritive packaging has entered water bottles plant-based bio-materials non-toxic soil when the testing process. processed by commercial composting facilities 15
OUR PRODUCT “ PREMIUM HAND CRUSHED TOMATOES HAND-PICKED BASIL Food quality and forward thinking is what drives our team. Whether it’s made-to-order or frozen, our pizza is entirely handmade, chef-prepped, and CANADIAN FIOR DI LATTE OR FRESH MOZZARELLA fired in our hand-built, made-in-Italy brick ovens. 100% NATURALLY LEAVENED DOUGH - Curt Martin, Executive Chef at GA – NO PRESERVATIVES, NO ADDITIVES, AND NO COMMERCIAL YEAST SIGNATURE “SOURDOUGH” CULTURE - NATURAL FERMENTATION In 2017, GA Pizza was a fast-casual pizza restaurant in the heart of Toronto, offering COLD-PRESSED EXTRA VIRGIN OLIVE OIL neapolitan-style pizzas. In 2020, our Executive Chef added a freezer-to-table pizza to our lineup. PROUDLY MADE IN TORONTO, ONTARIO We’re always working to take pizza to new READY IN 5-7 MINS; PRE-BAKED IN MARIO ACUNTO NAPOLI PIZZA OVEN heights—from showing the world that better AT 900 DEGREES pizza is possible, to finding new spaces and places SMALL FREEZER FOOTPRINT AND to deliver unrivaled pizza experiences. LASTS UP TO 6 MONTHS 16
PRODUCT OFFERING MILA MAGIC GATHERING LOVING CUP Cremini Mushrooms, Made with All Natural MARGHERITA Plant-based Mozzarella, Pepperoni, Mozzarella, Made with Green Kale and Pumpkin Grana Padano and Mozzarella, Grana Seed Parmesan Oregano Padano, and Basil Plant-based GREEN CHEESE WIZARD DOMINO EFFECT Made with Mozzarella, MARGHERITA Made with Provolone, Made with plant-based Mozzarella, Grana Padano, Cremini Mushrooms, Jalapeno Peppers, Basil Mozzarella, Pumpkin Seed Fior di Latte, and Pecorino Parmesan and Fresh Basil Romano and Grana Padano Plant-based PLUSHROOM SWEET HEAT Cream, Cremini Mushrooms, Mozzarella, Grana Padano, Mozzarella, Hot Genoa Salami, Honey, Basil and 75% of GA Pizzas Truffle Sauce Hot Chili Peppers are plant-based or meat-free 17
HOW WE STACK UP Pizza lovers don’t have to compromise on quality just because it’s frozen. FEATURE EXPLAINED GA PIZZA BIG PIZZA (DOUGH) Par-baked Partially baked 100% naturally leavened dough for a quick cook at home. No 100% naturally leavened additives, no preservatives—naturally lower in gluten (CHEESE) Locally sourced grass-fed We only use locally sourced or Italian cheeses Mozzarella (SAUCE) We make our own sauce with California tomatoes Crushed by us Housemade Wholly owned production—no outsourcing or co-packers Tidy freezer footprint Our 10 inch frozen pizzas have a surprisingly tidy freezer footprint leaving room for all of your other goodies Cooktime GA Pizza Neapolitan-inspired pies are ready in just 5-7 minutes 100% Divertible Packaging We’re on the path to BPI certification and 100% divertible pizza packaging COMING SOON 18
PRESS & TESTIMONIALS “ Now that's our kind of meal prep. “ General Assembly’s new frozen line puts Dr. Oetker to shame. “ “ Enormously Convenient. The pizzas fit perfectly in a toaster oven *and* condo-sized freezer drawers, perfect for the city dweller. “ A smart choice for families short on time and full of picky eaters. Which is basically every family we’ve ever heard of. “ In the past year, General Assembly Pizza has grown from a single wood-fired pizzeria on Adelaide to a burgeoning behemoth of the frozen pizza industry. “ And then the lord said, “Let there be a pizza subscription service.” “ Move over Delissio. 19
PRESS & TESTIMONIALS (CONTINUED) 20
PROVEN MANAGEMENT Ali Khan Lalani Jeff Collins, CPA Greg Pogue Khaleed Juma Founder, CEO, Director Chief Financial Officer Chief Technology Officer Chief Marketing Officer Ali has over 10 years of experience in upper Jeff brings more than 20 years of Greg brings more than 30 years of technology Khaleed is motivated by one thing — management and franchise ownership. He experience managing private and public expertise to the Company including 13 years solving problems, often architecting began his career as one of the youngest companies with extensive financial, of C-level experience across a number of solutions at the intersection of Creativity, franchisees in Swiss Chalet history, a chain strategic, operational and transaction industries including Finance, Commerce and Community. Prior to run by Recipe Unlimited (TSX: RECP), at 26 experience in software, technology, and Telecommunications, Supply Chain and joining the GA team, Khaleed led the years old. Ali turned both locations into digital media industries. Prior to joining the Digital Marketing. Greg has spent the last 13 Marketing Creative Team at Shopify (TSX: corporate best practices and advised on GA Team, he served as Chief Executive years of his career building systems and SHOP), where he found his knack for national media campaigns and franchise Officer of Contobox, an advertising and managing teams in the digital advertising building and leading highly agile cross restaurant designs. He is a certified Vera marketing technology company, as well industry where he has a wealth of experience functional teams. Khaleed served as VP Pizza Napoletana (VPN) Pizzaiolo and a and the Chief Financial Officer of Perk working with companies such as Facebook, Creative at Mosaic where he was Certified Sommelier with the Court of (TSX:PER) and Cyberplex (TSX:CX). Jeff Google, Yahoo and Microsoft to name a few. responsible for building omnichannel Master Sommeliers. Ali completed a holds a Bachelor of Business Greg holds a Bachelor of Mathematics degree campaigns for clients such as ABINBev Bachelor of Arts in Political Science at Administration degree from Wilfrid Laurier from the University of Waterloo in Waterloo, (NYSE: BUD), Oracle (NYSE: ORCL), Bacardi, Concordia University. University and the professional certification Ontario, Canada. and Coca-Cola (NYSE: KO). of Chartered Professional Accountant. 21
BOARD OF DIRECTORS STRATEGIC ADVISORS Ted Hastings, CA Ben Colabrese Amber Foucault Chairman Director Head of Products Drop Ted has over 20 years of experience across management, Ben is the Executive Vice President – Finance at The Amber is Head of Products at Drop, a Series B funded finance, accounting, and board advisor roles. He was most Toronto Blue Jays, which is wholly owned by Rogers consumer rewards platform. Her specialty is turning recently Chief Executive Officer of RhythmOne (AIM: Communications Inc (NYSE: RCI). divergent thinking into convergent action through RTHM). execution. Nicholas Nima Besharat, Nina Angelo Reichenbach, MBA LLB (Hons.), LLM VP Product Marketing Director Director Top Hat Nicholas is a seasoned entrepreneur who currently serves Nima currently serves as Director, Global Investment Nina Bilimoria Angelo is Vice President of Product as Founder and Chief Executive Officer of Flow Alkaline Banking at Gravitas Securities Inc., a leading independent, Marketing and Strategy at Top Hat, a scale-up that is Spring Water, a socially responsible water brand. internationally owned and operated wealth management transforming higher education using the power of and capital markets firm. technology. 22
CAPITALIZATION TABLE1 The Whole Pie: 49% Management Team Stake The company’s directors, officers, employees, consultants, and early investors account for 49% of the issued and outstanding shares of the company.2 SECURITIES TOTAL Common Shares 22,348,744 Stock Options 1,915,000 Advisory Warrant Units3 464,984 Warrants 13,869,774 Broker Warrant Units4 377,652 Total Common Shares on a fully-diluted basis 39,397,472 1. All figures are presented as of May 13, 2021, the date of the final non-offering prospectus of the Company. A copy of which can be found on the Company's profile at www.sedar.com 2. Based on a fully diluted common share count of 39,397,472 2. Advisory Warrants: 697,476 Common Shares issuable upon exercise of 464,984 Advisory Warrants and the Warrants underlying such Advisory Warrants 3. Broker Warrants: 566,478 Common Shares issuable upon exercise of 377,652 Broker Warrants and the Warrants underlying such Broker Warrants 23
WHY INVEST THERE’S A NEW WORLD OF FROZEN PIZZA ON THE HORIZON. GA PIZZA’S WILL GET THERE FIRST WITH: 2 Poised to scale nationally with the development of a master production facility in Q3 1 3 World’s first pizza Premium freezer-to-table subscription: product ushers in a hypergrowth new era of better frozen pizza, story that is only aligned with beginning consumer trends
THANK YOU For more information please contact: invest@gapizza.com (TSXV: GA) invest.gapizza.com
You can also read