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TSX:SPB Investor Day November 18, 2010 www.superiorplus.com Forward-Looking Statements and 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 forwardlooking 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 thirdparty 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. 2 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 3 Financial Profile – SPB Enterprise Value (EV) $2.3 billion Share Market Price (1) $10.46 Annual Dividend Rate (per share) (2) $1.62 Dividend Yield Number of Shares Outstanding (3) Convertible Debentures Outstanding (4) 15.5% 107.1 million $489.4 million (1) Closing market price on November 9, 2010 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 (2) 4 Strong Management Capability Grant Billing Position Chief Executive Officer Age 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 5 Superior Plus Market Diversification 12% Energy Services Specialty Chemicals Construction Products Distribution (1) 48% 40% Based on mid-point of Superior’s 2011 Financial Outlook on an EBITDA from operations basis as provided in Superior’s third quarter MD&A 6 Today’s Presenters Superior Plus Grant Billing Energy Services John Gleason Superior Plus Wayne Bingham Construction Products Distribution Paul Vanderberg Specialty Chemicals Paul Timmons 7 TSX:SPB Construction Products Distribution www.superiorplus.com 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 9 End-Use Market Diversification ‘The Construction Products Distribution business is diversified across geographic and end-use markets’ 15% 28% Commercial – New Commercial – Renovation Industrial Residential 41% 16% % based on 2010 Estimated Revenue by Segment 10 Branch Locations ‘A North American Focus’ 11 2010 Initiatives Cost reduction programs End-use markets have been challenging Extensive focus on operating costs $4.2 million in restructuring expense 9 month ytd 2010 Costs savings are reflected in the 2011 Outlook Integration Cost reduction focus Incremental approach in certain Walls and Ceilings locations 12 2010 Initiatives June 2010 acquisition of Burnaby Insulation C&I entry into Canada Serves Western Canada industrial market Base to build on, particularly related to Oil Sands opportunities Strengthened management team Key hires from industry, internal promotions Restructured procurement function 13 Market Overview – Residential Residential Housing Starts (000s units) 3,000 250 2,500 200 2,000 150 1,500 100 1,000 50 500 - 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011F F = Forecast U.S. Source: Dept. of Commerce, CMHC, Company Forecast Canada 14 Market Overview – Non-Residential Non-Residential Construction (mmsf) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - 120 100 80 60 40 20 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 F F = Forecast U.S. Source: McGraw Hill, CanaData Canada 15 Market Overview – Industrial Industrial Capital Spending ($ billions) 300 100 250 75 200 150 50 2003 2004 2005 2006 2007 2008 2009 2010 F 2011 F F = Forecast U.S. Source: IIR Canada 16 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 West North ▼ Fabrication South 17 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) (2) Owens Corning study. McKinsey & Company’s Report on Greenhouse Gas Reduction. 18 Growth Opportunities Product line expansion: Full walls + ceilings product line in 23 architectural centres C+I 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 19 2010 and 2011 Financial Outlook Bridge Construction Products Distribution (millions of dollars) Mid-Point of 2010 Outlook ($18 – $25 million) (1) Benefit of cost reduction programs, net Volume based on increased market share and economic recovery Price/margin improvement Mid-Point of 2011 Outlook ($25 – $40 million) (1) (1) As 21.5 1.0 8.0 2.0 32.5 provided in Superior’s 2010 third-quarter MD&A 20 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 21 TSX:SPB Questions & Answers www.superiorplus.com TSX:SPB Energy Services www.superiorplus.com Energy Services Canadian propane distribution Canada’s 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 24 Energy Services Diversification ‘The Energy Services business is well diversified across various geographic and end-use markets’ 7% 3% 35% Canadian Propane Distribution U.S. Refined Fuels Wholesale Supply Management Fixed-Price Energy Services 55% Based on gross profit by business for the nine-month period ended September 30, 2010 25 Canadian Propane Business Overview Superior Propane is a recognizable Canadian brand – in business since 1951 Canada’s 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 26 Canadian Propane Geographic Diversification Western Canada Eastern Canada Atlantic Canada 54% 38% 7% Volume by region for the twelve-month period ended December 31, 2009. 27 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” 28 U.S. Refined Fuels Business Overview Three U.S. Refined Fuel acquisitions in 2009/10 for US$308 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 U.S. Refined Fuels Geographic Diversification Rochester Syracuse Binghamton Buffalo Albany Scranton New York State College Harrisburg Pittsburgh Philadelphia Location Terminal 30 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 43% Gallons (millions) Households (000s) 2,463 1,286 612 431 308 64 33 5,197 2,336 1,217 595 362 316 77 17 4,920 50% 40% 30% 30% NY and PA 20% 10% 10% 31% 11% 6% 0% West South Mid -West New England Mid -Atlantic State / District New York Pennsylvania New Jersey Virginia Maryland Delaware District of Columbia Total Mid-Atlantic Source: National Oilheat Research Alliance, 2008. 31 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 32 Supply Portfolio Management Supply Portfolio Management group provides expertise in wholesale supply, risk management and logistics to Superior’s 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 Wholesale Supply Market Footprint EDMONTON REGINA MARYSVILLE/SARNIA BATH CONWAY Supply Region Wholesale Market Region Transport Flow MOUNT BELVIEU Storage 34 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 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 FixedPrice Energy Services business (electricity and natural gas) offerings to be introduced to existing customer base Continue to improve cost structure by identifying backoffice synergies and productivity improvements U.S. industry consolidation opportunities Potential tuck-in acquisitions in highly fragmented N.E. Heating Oil market 36 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 2010 and 2011 Financial Outlook Bridge Energy Services (millions of dollars) Mid-Point of 2010 Outlook ($100 – $115 million) (1) Weather normalization Economic improvements and sales growth Absence of integration costs and full-year benefit of cost reductions Mid-Point of 2011 Outlook ($120 – $140 million) (1) (1) As 107.5 10.0 9.0 3.5 130.0 provided in Superior’s 2010 third-quarter MD&A 38 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 39 TSX:SPB Questions & Answers www.superiorplus.com TSX:SPB Specialty Chemicals www.superiorplus.com 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 42 Product Diversification ‘Superior has diversified its Specialty Chemical Business’ 2009 EBITDA 2004 EBITDA 1% 9% 12% 35% 42% 6% 73% North American Chlorate 22% International Chlorate Chloralkali Technology 43 Geographic Footprint CANADA Grande Prairie 500 employees Saskatoon Hargrave Vancouver 510,000 MT sodium chlorate capacity from 7 plants 10,500 MT sodium chlorite capacity from 2 plants – largest worldwide Thunder Bay Buckingham Toronto Port Edwards USA Valdosta 39,000 MT chloralkali product capacity at Saskatoon 103,000 MT potassium & chloralkali products at Port Edwards BRAZIL Sales offices – China and Japan ARGENTINA CHILE URUGUAY 44 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 45 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 46 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 47 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 48 Chloralkali Market Update ‘Chloralkali margins are well positioned relative to past economic downturns’ Source: CMAI 49 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 US$10 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 50 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 51 2010 and 2011 Financial Outlook Bridge Specialty Chemicals (millions of dollars) Mid-Point of 2010 Outlook ($95 – $105 million) (1) Port Edwards volume and margin improvements Mid-Point of 2011 Outlook ($100 – $115 million) (1) (1) As 100.0 7.5 107.5 provided in Superior’s 2010 third-quarter MD&A 52 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 53 TSX:SPB Questions & Answers www.superiorplus.com TSX:SPB Financial Overview www.superiorplus.com 2010 Q3 and YTD Financial Performance Three Months Ended September 30, Nine Months Ended September 30, 2010 2009 2010 2009 4.9 3.1 51.8 57.0 26.9 22.1 71.8 74.4 7.6 7.1 17.3 11.9 39.4 32.3 140.9 143.3 (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 $0.19 $0.22 $0.76 $1.13 (millions of dollars, except per share amounts) EBITDA from operations: Energy Services Specialty Chemicals Construction Products Distribution Interest Adjusted Operating Cash Flow per share basic (1) and diluted (2) (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 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 57 2010 and 2011 Financial Outlook (millions of dollars except per share amounts) (1)(2) 2010 2011 100-115 120-140 95-105 18-25 100-115 25-40 EBITDA from operations: Energy Services Specialty Chemicals Construction Products Distribution Adjusted Operating Cash Flow per share (1) (2) $1.30-$1.50 $1.75-$2.00 Superior’s 2010 and 2011Financial Outlook is as provided in Superior’s 2010 third-quarter MD&A The assumptions, definitions, and risk factors relating to the Financial Outlook are discussed in Superior’s 2010 third-quarter MD&A 58 2010 and 2011 Financial Outlook Bridge (all amounts per share) Mid-Point of 2010 Outlook ($1.30 to $1.50) (1) Impact of weather (approximately $0.10 to $0.20) Economic improvements and sales growth within Energy Services Full year cost saving initiatives at U.S. Refined Fuels and Construction Products Distribution Stronger chloralkali gross profits and volumes Improved Construction Products Distribution volumes and margins Mid-Point of 2011 Outlook ($1.75 to $2.00) (1) (1) As $1.40 0.15 0.10 0.05 0.08 0.10 $1.88 provided in Superior’s 2010 third-quarter MD&A 59 Multiple Sources of Capital ‘Superior successfully accessed the Common Share and Convertible Debenture market during 2010 and currently has a well diversified capital base’ 162.7 82.6 Common Shares Credit Facility Senior Unsecured Debentures 489.4 Convertible Unsecured Debentures Accounts Receivable Securitization Program Senior Secured Notes Capital allocation in million of dollars, as at September 30, 2010. 1,592.4 150.0 288.3 60 Credit Rating Summary DBRS Senior Secured Senior Unsecured BBB (low) BB (high) Negative Negative BB BBB(-) BB (-) Stable S&P Corporate Rating Senior Secured Senior Unsecured Credit Ratios as at September 30, 2010 Consolidated Secured/EBITDA ratio Consolidated Debt/EBITDA ratio (1) (1)(2) (1) (2) 2.4X 3.0X As calculated in accordance with Superior's various credit agreements. Does not include convertible unsecured subordinated debentures. 61 Term Debt Repayment Profile As at September 30, 2010 ($ million) 320.4 207.9 172.5 150.0 115.6 99.8 105.8 3.0 2010 2011 2012 2013 Syndicated Credit Facility Convertible Debentures Securitization Program Syndicated Credit Facility excludes $23.3 million in letters of credit Convertible debenture repayments based on face value 2014 2015 2016 2017 U.S. Notes Other Term Debt Senior Unsecured Debentures 62 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 Superior’s existing asset mix and capital structure 63 TSX:SPB Questions & Answers www.superiorplus.com TSX:SPB Summary www.superiorplus.com 2010 A Year of Repositioning Focus on integration Expensed $9 million in one-time costs Three heating oil businesses C&I 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 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 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 TSX:SPB Questions & Answers www.superiorplus.com TSX:SPB Contact: Wayne Bingham Executive Vice-President and Chief Financial Officer Jay Bachman Vice-President, Investor Relations and Treasurer www.superiorplus.com 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