John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Sidoti & Company 2017 Fall Conference
64 slides from John B. Sanfilippo & Son's conference presentation, Sep 28, 2017
Slide 1: Sidoti & Company 2017 Fall Conference
Sidoti & Company 2017 fall Conference September 2017 NASDAQ: JBSS Exhibit 99.1
Slide 2: Forward-Looking Statements
Some of the statements in this presentation and any statements by management constitute “forward-looking statements” about John B. Sanfilippo & Son, Inc. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the mar
Slide 3: Who is JBSS?
One of the largest nut processors in the world with fiscal year 2017 net sales of approximately $847 million State-of-the-art nut processing capabilities, including what we believe is the single largest nut processing facility in the world A North American market leader in every major selling channe
Slide 4: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type % of total gross sales Full assortment of nut types Full variety of value-added products Wide variety of dried fruit and other snack products Customized, unique product formulas Fiscal Year 2017
Slide 5: Consistent success over past fiscal years
Consistent success over past 6 fiscal years Doubled Diluted EPS from FY 12 to FY 17 Net Sales increased by approximately 21% from FY 12
Slide 6: JBSS Stock Performance vs. Russell 2000 Over the Past Year
JBSS STOCK PERFORMANCE vs. RUSSELL 2000 OVER THE PAST YEAR 6 JBSS outperformed the Russell 2000 Index by over 10% 09/21/16 $51.09 09/20/17$64.83
Slide 7: Dividend yield
Yield based on average yearly stock price. CY 17 through 9/19/17
Slide 8: Strategy Update
ae JOHN B. SANFILIPPO & SON, INC. STRATEGY UPDATE The Global Source For Nuts®
Slide 9: Building Our Future
as JOHN B- SANFILIPPO & SON, INC. BUILDING OUR FUTURE CREATE VALUE WITH KEY CUSTOMERS Uuiize consumer insights to develop products and integr Be the trusted partner by fering wow businesses. EXPERTISE INNOVATI SUPPLY CHAIN EXCELLENCE The Global Source for Nuts ba The Global Source For Nuts*
Slide 10: FY 2017 Accomplishments: Fisher recipe nuts share leadership
Fisher recipe nuts continued its share leadership of the recipe nut category by increasing pound market share by +4.0 points Increased market share and distribution in the produce nut category with OVH products FY 2017 Accomplishments Source : IRI FY Ending 6/25/17 Total US MULO for Recipe Nuts ; Fi
Slide 11: FY 2017 Accomplishments: private brand and commercial ingredients
Launched 60+ new items with our private brand partners Expanded Fisher brand awareness and distribution in the Commercial Ingredients channel Obtained new snack bite business with our contract packing customers to fully utilize our cluster line in FY 2018 FY 2017 Accomplishments
Slide 12: FY 2017 Accomplishments: eCommerce, vending, dollar stores
Launched 100+ Fisher and Orchard Valley Harvest products on eCommerce sites Expanded Fisher and Orchard Valley Harvest in vending Started testing in dollar store channel FY 2017 Accomplishments
Slide 13: Nut Category Review
ae [etait 9 22 JOHN B. SANFILIPPO & SON, INC. NUT CATEGORY REVIEW The Global Source For Nuts®
Slide 14: Slight decline in Nut Commodity Prices after Years of Increases
Slight decline in Nut Commodity Prices after Years of Increases Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2017 data ending 6/25/17 1% decline in FY 17 but average prices still up 30%+ since FY 11
Slide 15: Retail Prices Up Across Most Major Nut Types
Retail Prices Up Across Most Major Nut Types over the Last 7 Years Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: FY 11 Year Ending 7/3/11 to FY 2017 data ending 6/25/17
Slide 16: Category Dollar Sales Plateaued after Years of Growth
Category Dollar Sales Plateaued after Years of Growth Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2017 data ending 6/25/17
Slide 17: JOHN B. SANFILIPPO & SON, INC.
JOHN B. SANFILIPPO & SON, INC. The Global Source For Nuts®
Slide 18: Business Channel Diversification
$530 Fiscal 2017 Net Sales $847 Million Business Channel Diversification (Millions of $) $165 $152
Slide 19: Consumer Channel Net Sales
Fiscal 2017 Net Sales $530 Million FY 2017 Consumer Channel vs. FY 16 -6.4%
Slide 20: Commercial Ingredients Channel Net Sales
Fiscal 2017 Net Sales $165 Million FY 2017 Commercial Ingredients Channel vs. FY 16 -32.6%
Slide 21: Contract Packaging Channel Net Sales
FY 2017 Contract Packaging Channel Fiscal 2017 Net Sales $152 Million
Slide 22: FY 2017 Financial Milestones
FY 2017 financial milestones
Slide 23: JBSS Stockholders' Equity FYs 1991-2017
JBSS STOCKHOLDERS’ EQUITY FYs 1991- 2017 In millions of $ 9.2% CAGR over 25.5 Years
Slide 24: JBSS Net Sales FYs 1991-2017
JBSS Net Sales FYs 1991- 2017 Increased Pound Volume and Prices De-emphasized Industrial Sales, Lower Prices Low Carb Diet Run Up $847 million In millions of $ Decreased prices and volume 6.7% CAGR over 25.5 Years
Slide 25: JBSS Total Outstanding Debt FYs 1991-2017
JBSS Total Outstanding Debt FYs 1991- 2017 In millions of $ Facility Consolidation Project 60.8% decline in total debt since 2007
Slide 26: Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – 2017
Slide 27: EBITDA
EBITDA EBITDA consists of earnings before interest, taxes, depreciation, amortization and noncontrolling interest. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America ("GAAP"), and does not represent cash flow from opera
Slide 28: Reconciliation of Net Income (Loss) to EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 (in $,000's) NET INCOME (LOSS) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 30,395 36,125 INTEREST EXPENSE 9,347 10,502 7,646 5,653 6,444 5,364 4,7
Slide 29: EBITDA Trends
EBITDA Trends* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure (in $ thousands)
Slide 30: Peanut and Tree Nut Spot Market Prices vs. JBSS Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN %
Slide 31: FY 2017 Brand Marketing Overview
FY 2017 Brand Marketing Overview
Slide 32: Snack Nuts, Grow Brands, Recipe Nuts
Snack Nuts Grow Brands Recipe Nuts
Slide 33: Recipe Nuts
iS f Recipe Nuts Poa The Global Source For Nuts,
Slide 34: National Distribution Recipe Nuts
National Distribution Hawaii Recipe Distribution As of 7/19/17
Slide 35: Strong Growth for Fisher Recipe in FY17
Strong Growth for Fisher Recipe in FY 17 Total Fisher Recipe Brand Growth FY 17 vs. FY 16 +11% +5% POUND SALES DOLLAR NET SALES Source: JBSS shipment data Recipe Nuts
Slide 36: Fisher Recipe continues to Grow Market Share
Fisher Recipe continues to Grow Market Share Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2013 - 2017 Data Ending 6/25/17
Slide 37: Steady Growth in Fisher Recipe Nut Distribution
Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 13 Year Ending 6/30/13 to FY 2017 data ending 6/25/17 Steady Growth in Fisher Recipe Nut Distribution
Slide 38: No Preservatives and Non-GMO Messages are Key Drivers for Growth
No Preservatives and Non-GMO Messages are Key Drivers for Growth
Slide 39: Packaging Graphics Refresh
FROM TO Packaging Graphics Refresh 39
Slide 40: Walnut Upsize helped deliver revenue
Walnut “Upsize” helped deliver revenue in the face of declining commodities 40
Slide 41: Continue to Build Fisher Brand Equity with Food Network Sponsorship
Continue to Build Fisher Brand Equity with Food Network Sponsorship
Slide 42: Integrated Marketing Key to Building Brand Equity
Integrated Marketing Key to Building Brand Equity Food Network Public Relations National Print In-Store Programs Social Media Original PR photo content created and photographed by the Fisher Fresh Thinkers Influencer Network 42
Slide 43: Snack Nuts
iS ‘ Snack Nuts pau The Global Source For Nuts 43
Slide 44: Snack Distribution
Snack Distribution As of 7/17/17
Slide 45: Challenging Year for Fisher Snack in FY17
Challenging Year for Fisher Snack in FY 17 Total Fisher Snack Sales FY 17 vs. FY 16 -3% -12% POUND SALES DOLLAR NET SALES Source: JBSS shipment data Snack Nuts
Slide 46: Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets
Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets Snack Nuts
Slide 47: Fisher Market Share Plateaued in High Franchise in FY17
Fisher Market Share Plateaued in High Franchise in FY 17 Source: IRI: Total Snack Nut Category – Core Franchise (Minneapolis, Milwaukee, Chicago and St. Louis) Multi Outlet Geography –Periods: FY 13 to FY 17 data ending 6/25/17.
Slide 48: Fisher Snack Share Driven by Distribution and Velocity Growth
Source: IRI: Total Nut Category – Fisher Core (St. Louis, Milwaukee, Chicago, Minneapolis MULO) Time Periods: to FY 12 Year Ending 7/1/12 to FY 17 data ending 6/25/17 Fisher Snack Share Driven by Distribution and Velocity Growth ACV: measure of total retail sales for a given geography as measured by
Slide 49: Driving Results on our Core Dry Roast Peanut Business
Driving Results on our Core Dry Roast Peanut Business
Slide 50: New Look for Fisher Snack Nuts
New Look for Fisher Snack Nuts
Slide 51: Orchard Valley Harvest
Orchard Valley Pure and Simple Goodness pau The Global Source For Nuts* 4
Slide 52: Orchard Valley Harvest is the Pure and Simple Alternative
Ingredients: GLAZED PECANS (PECANS, SUGAR, SEA SALT), DRIED SWEETENED CRANBERRIES (CRANBERRIES, SUGAR, EXPELLER PRESSED SUNFLOWER OIL) ROASTED PEPITAS (PEPITAS, EXPELLER PRESSED SUNFLOWER OIL, SEA SALT). Orchard Valley Harvest is the Pure and Simple Alternative for Consumers
Slide 53: National Distribution
BREAUX Markets 1 1 Distribution 2 2 National Distribution Updated 7.19.17 As of 7/19/17
Slide 54: Strong Growth of Our Produce Brands
Strong Growth of Our Produce Brands Produce Brand Growth FY 17 vs. FY 16* +24% +29% POUND SALES DOLLAR NET SALES Source: JBSS shipment data * Includes Orchard Valley Harvest and Sunshine Country
Slide 55: Share Growth Doubled in Produce Nut Category
Share Growth Doubled in Produce Nut Category over the last 5 Fiscal Years Source: IRI: Total Produce Nut Category – Multi Outlet Geography Time Periods: to FY 13 Year Ending 6/30/13 to FY 2017 data ending 6/25/17 Includes Orchard Valley Harvest and Sunshine Country
Slide 56: JBSS Distribution in the Produce Nut Category Continues to Increase
Source: IRI: Total Produce Nut Category – Multi Outlet Geography Time Periods: to FY 13 Year Ending 6/30/13 to FY 2017 data ending 6/25/17 JBSS Distribution in the Produce Nut Category Continues to Increase ACV: measure of total retail sales for a given geography as measured by All Commodity Volume
Slide 57: Orchard Valley Harvest Delivers on Three Important Consumer Trends
Consumers want healthy snacking options (3) (1) Source: Instantly poll of 4,200 people in the US between 9/15 and 9/21 2015 (2) Source: The Hartman Group, Reinventing health & nutrition study 2010/2013 (3) Source: Symphony IRI Group, 2013 Consumers want clean, simple ingredients (1,2) Consumers want
Slide 58: We Continue to Expand our Portfolio to Address Consumer Demand
Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartman Group: Reimagining Health and Wellness, 2013 Snacking accounts for over 53% of all eating occasions in the U.S. 38% of consumers snack several times per day Multi-Packs and Grab ‘n Go Mini’s We Continue to Expand our Portfolio to
Slide 59: Salads are the #1 Usage Occasion for Nuts
Salads are the #1 Usage Occasion for Nuts! Source: The NPD Group/NET In-Home Database, Indices for Seasonality of Total Nuts, Data for 10 Years Ending Nov 2011 We Have Expanded our Portfolio to Address Growing Usage of Nuts in Salads NO Artificial INGREDIENTS Multi Pack! 8 Individual Servings
Slide 60: Salad is the #1 Usage Occasion for Non-Snacking Nuts
Salad is the #1 Usage Occasion for Non-Snacking Nuts 22% of non-snacking nut usage is for Salads 19% of non-snacking nut usage is for Baking Indices for Seasonality of Total Nuts Data for 10 years ending Nov 2011; Measures % of Eating Source: The NPD Group/NET In-Home Database 60
Slide 61: High Impact Displays Drive Growth at Retail
P | 14 High Impact Displays Drive Growth at Retail 61
Slide 62: Integrated Marketing Support
NO ARTIFICIAL INGREDIENTS Public Relations Print Integrated Marketing Support 62
Slide 63: Expanding to Front of House Foodservice Locations
Expanding to Front of House Foodservice Locations
Slide 64: Thank You!
Thank You! a The Global Source For Nuts
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