Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Barclays Back to School Conference 2014
30 slides from Hormel Foods's conference presentation, Sep 2, 2014
Slide 1: Innovating In A Changing Consumer Environment
Innovating In A Changing Consumer Environment Jeff Ettinger Chairman, President & CEO 1
Slide 2: Legal Disclosure
Legal Disclosure This presentation contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement and risk factors on pages 32-38 in the Company’s Form 10-Q filed June 6, 2014. 2
Slide 3: Third Quarter Revenue & Earnings
Third Quarter Revenue & Earnings Revenue ($Millions) Earnings Per Share $2,285 $0.51 $2,160 $0.42 6% 21% 2013 Q3 2014 Q3 2013 Q3 2014 Q3 • Record sales and earnings for the quarter • Three of five segments delivered operating profit growth • High input costs pressured Grocery Product segment results
Slide 4: YTD Q3 2014 Balanced Model Highlighted
YTD Q3 2014 Balanced Model Highlighted Net Sales Segment Profit Change Change Grocery Products + 5% - 3% Refrigerated Foods + 9% + 64% Jennie-O Turkey Store + 2% + 13% Specialty Foods - 13% - 21% International & Other + 22% + 26% Total +5% +19% 4
Slide 5: Consistently Delivering Results
Consistently Delivering Results Sales (Billions) EPS 10.0 + 7% 2.50 + 12% CAGR 2.25 CAGR $9.2 2.00 $2.22 8.0 1.75 6.0 $6.5 1.50 1.25 $1.27 4.0 1.00 0.75 2.0 0.50 0.25 0.0 0.00 2009 2010 2011 2012 2013 *2014 2009 2010 2011 2012 2013 **2014 est. est. *Based on 5% growth over 2013 actual ** Based on mi
Slide 6: Strong Legacy Portfolio
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Slide 7: Core Innovation
Core Innovation 7
Slide 8: Core Innovation
Core Innovation 8
Slide 9: Core Innovation
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Slide 10: Keeping the Portfolio Vital
Keeping the Portfolio Vital Danny Meyer Growth Opportunities Global Multi-Cultural Nutritious On-the-Go 10
Slide 11: Growing Global Presence
Growing Global Presence International & Other Segment Sales ($Millions) $500 est. $146 2005 2014 11
Slide 12: Multi-Cultural Flavors
Multi-Cultural Flavors MegaMex Foods Joint Venture Sales ($Millions) $600 est. $198 2010 2014 12
Slide 13: Night
Night Give Taco i! Who Coma the Maracas a * Who Can Send Taste Buds on a Hawaiian Vacation? —_ ®D ney ———_ en
Slide 14: Better-For-You
Better-For-You 14
Slide 15: On-the-Go
On-the-Go 14 21 28 38 3 Square Meals; No Snacks 3 Square Meals; Several Snacks 4 - 5 Mini-Meals Grab & Go Source: IRI State of the Snack Industry 15
Slide 16: Recent Investments
Recent Investments BRAND 16
Slide 17: #1 share in U.S. guacamole
Chile Japan South Korea Israel Australia United Kingdom Canada • #1 share in U.S. guacamole • All-natural, along with an Global Multi- Nutritious On-the-Go organic offering Cultural 17
Slide 18: #1 natural peanut butter in the U.S.
• #1 natural peanut butter in the U.S. • SKIPPY® Singles - Multi- Nutritious On-the-Go Global Cultural Progressive Grocer 2014 Editor's Pick 18
Slide 19: Driving double-digit category growth
• Driving double-digit category growth Global Multi- Nutritious On-the-Go • Currently launching REV® Cultural AM breakfast wraps 19
Slide 20: #1 brand ready-to-drink
BRAND • #1 brand ready-to-drink • Significant distribution in Global Multi- Nutritious On-the-Go convenience channel Cultural 20
Slide 21: Raw Material Diversification
Raw Material Diversification 21
Slide 22: Leading Brands
Leading Brands MORE THAN 30 BRANDS H A V E #1 or #2 MARKET SHARE POSITIONS IN THEIR C A T E G O R Y 22
Slide 23: Supporting Our Brands
Supporting Our Brands 23
Slide 24: Financial Performance Goals
Financial Performance Goals 5% Revenue Growth 10% Operating Income Growth $3 Billion by 2016 New Product Development New Products Introduced Since 2000 <1% Operating Expense Growth 24
Slide 25: World Class Financial Performance
World Class Financial Performance 2003-2013 Performance 14% 11% 12% 8% Sales EPS Dividend Avg. CAGR CAGR CAGR ROIC 25
Slide 26: Uses of Cash
Uses of Cash Member of S&P 500 Dividend Aristocrats + 17% 48 CAGR + 18% $0.80 $0.68 CONSECUTIVE YEARS $0.42 of Dividend Increases 26
Slide 27: Innovation
Innovation NPD as % of Total Sales 30% 25.3% 26.2% 23.6% 23.4% 2010 2011 2012 2013 2016 (est) New Products Introduced Since 2000 1. Understand our 2. Understand how they 3. INNOVATE (New products; customer use our product marketing & merchandising) 27
Slide 28: Total Shareholder Return % Change
Total Shareholder Return 200 175 150 125 % Change 100 75 50 25 0 Hormel Foods Dow Jones Industrials S&P 500 S&P 500 Pkg. Foods & Meats 28
Slide 29: Experienced Team
Experienced Team Officer Average 26 Years Tenure 29
Slide 30: Innovating In A Changing Consumer Environment
Innovating In A Changing Consumer Environment Jeff Ettinger Chairman, President & CEO 30
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