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Presentation on theme: "HUMBER CAPITAL CORPORATION (TSXV:RUM) AGM Presentation June 15, 2009."— Presentation transcript:


2 1 Forward Looking Statements This presentation, including information incorporated by reference, may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Humber to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Examples of such statements include: (A) the intention to grow the Business and operations of the Resulting Issuer (as such terms are defined below); and (B) the level of cash-flow at closing and in the future, including whether the cash flow is positive or negative. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this presentation. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability of Humber to obtain necessary financing; the level of activity in the retail liquor industry in Alberta and the economy generally; and anticipated and unanticipated costs. While Humber anticipates that subsequent events and developments may cause its views to change, Humber specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing Humbers views as of any date subsequent to the date of this presentation. Although Humber has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect Humber.

3 2 Recent Events Exemplify Humbers Strong Momentum December 1, 2008Announces completion of Qualifying Transaction of Andersons Liquor Inc. and closing of private placement, raising gross proceeds of $1.75 million December 12, 2008Humber's common shares commence trading on the TSX Venture Exchange under the symbol "RUM January 14, 2009Announces appointment of Tracey Bean, CMA, MBA, to the position of Chief Financial Officer January 30, 2009Announces Humber has entered into a non-binding term sheet for a private placement of a convertible debenture, with a private investor; initial terms include an 8.25% interest rate and $0.315 conversion price; amount is later finalized at $809,140 February 20, 2009Announces initiation of the development of a new liquor store in Rocky Mountain House, Alberta and that definitive agreements have been reached with three separate vendors to acquire six additional stores in Alberta; the aggregate purchase price was $3.1 million February 20, 2009Contracts with a Canadian Chartered Bank to hedge interest rates for a 5-year period in the amount of $5.5 million at 2.14% plus its applicable credit spread. March 24, 2009Completes the acquisition of six stores previously announced February 20 th April 30, 2009Announces results for the five-month period ending December 31, 2008 May 8, 2009Announces new facility from Toronto-Dominion Bank that increases Senior Secured Lending commitments from approximately $7.0 million to $15.0 million; The entire amount includes BA based pricing plus a spread ranging from 2.0% to 3.0% May 30, 2009As of May 29, 2009 we were in-the-money by approx $40M, as compared to out-of-the- money of $167M as of March 31, 2009. This represents a $207M swing in profitability since March quarter-end.

4 3 Active Industry Consolidator Andersons Retail Liquor Stores Growth (1)(2) (1) Represents liquor store count over calendar years (2) Anderson's acquired an additional liquor store in 2007 but also consolidated two existing stores in Nisku, Alberta; as a result, the total number of retail liquor stores remained consistent from 2006 to 2007 despite the 2007 acquisition Since the commencement of its business in 2001, Andersons has focused on store operations while pursuing an active acquisition strategy within the Alberta market, focusing largely outside of the major urban centres Currently, Andersons operates 25 retail liquor stores throughout Alberta Consistent with this strategy, Humber recently announced the development of a new liquor store in Rocky Mountain House, Alberta, as well as the completion of transactions with three separate vendors to acquire six additional stores in Alberta Management believes that through the pursuit of further acquisitions, Andersons will continue to benefit from top line growth and increased market share Going forward the acquisition strategy will continue to contemplate acquisitions in Alberta and management is evaluating opportunities to enter the British Columbia market

5 4 Financial Summary Andersons has produced positive sales growth, while increasing gross margin percentage Sales growth is attributable to several factors including: increasing the scale of operations via acquisition; competitive pricing strategies; and improved product initiatives Margin improvements have been realized from Andersons ability to leverage increased scale by taking advantage of discounted limited time offerings of bulk inventory purchases periodically offered by manufacturers It is important to note that given the rapid expansion of the Company that historical performance indicated below does not reflect meaningful contribution from recently acquired liquor stores Financial Summary (C$) (1) Jul 31, 2008 results do not include meaningful contribution from 2 stores acquired from Morinville Liquor Store Ltd., effective July 24, 2008; Current store count is 25 Sales$17,844,727 $9,487,248 Gross Margin 4,247,045 2,257,951 Gross Margin Percentage 23.8% 23.8% EBITDA1,288,719 693,426 Net Income 537,671 504,904 Stores at Period End (1) 18 19 12M Ended 31-Jul-08 5M Ended 31-Dec-08

6 5 Questions

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