Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q4 2020 Earnings Presentation
20 slides from Tyson Foods's earnings presentation, Nov 15, 2020
Slide 1: Q4 Fiscal 2020 Supplemental Information
— Q4 Fiscal 2020 Supplemental Information November 16, 2020
Slide 2: Forward-Looking Statements
Certain information in this report constitutes forward-looking statements. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2021, other future economic circumstances, industry conditions in domestic and international markets, our
Slide 3: Today's Speakers
Today’s Speakers Dean Banks Stewart Glendinning President & CEO EVP & CFO Tyson Foods, Inc. 3
Slide 4: Fiscal 2020 Accomplishments
Fiscal 2020 Accomplishments • Substantial investments in COVID-19 protective measures ◦ New, industry-leading monitoring strategy ◦ Approximately $300 million of benefits paid to team members ◦ Aggressively managed core expenses to partially offset COVID-19 impacts • Portfolio diversity drove strong
Slide 5: Retail Volume Performance
Retail Volume Performance Core Business Lines & Total Tyson Retail Volume Sales % Chg. among top 10 branded food companies > $5B Total Core Total Tyson Food & Bev. Business Lines Source: Nielsen Total U.S. xAOC Fixed Weight Volume EQ Sales 13 weeks ending 9/26/2020 Product = Total F&P, Alcohol + Pet
Slide 6: Fourth Quarter Accomplishments
Fourth Quarter Accomplishments • Continued strength at retail; foodservice still in recovery ◦ Tyson retail core business lines continue to increase volume and share; lead top 10 food manufacturers ◦ With over 120% e-Commerce growth Q4’20 vs. Q4’19, Tyson has now achieved an estimated $1+ billion in
Slide 7: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights • Q4 Adjusted EPS1 of $1.81 • YTD Adjusted EPS1 of $5.64 • Strength in Beef, Pork, and Prepared Foods segments offset challenges associated with COVID-19 • Industry-leading investments in team member health & safety 1Represents a non-GAAP financial measure. Adjust
Slide 8: Prepared Foods Segment Results
Prepared Foods Segment Results Adj. Operating Income1 ($ in millions) Q4 FY20 FY20 Dollars ROS % Sales volume2 ↓ 5.6% ↓ 3.7% Q4 FY20 $236 11.2% Average price ↑ 3.8% ↑ 3.1% FY20 $752 9.0% 1Represents a non-GAAP financial measure. Adjusted sales, adjusted operating income, adjusted operating margin an
Slide 9: Chicken Segment Results
Chicken Segment Results Adj. Operating Income1 ($ in millions) Q4 FY20 FY20 Dollars ROS % Sales volume2 ↓ 5.4% ↓ 1.7% Average price ↓ 2.1% ↓ 0.6% Q4 FY20 $91 2.9% FY20 $148 1.1% 1Represents a non-GAAP financial measure. Adjusted sales, adjusted operating income, adjusted operating margin and adjuste
Slide 10: Beef Segment Results
Beef Segment Results Adj. Operating Income1 ($ in millions) Q4 FY20 FY20 Dollars ROS % Sales volume2 ↑ 3.8% ↓ 6.5% Q4 FY20 $483 12.2% Average price ↓ 1.1% ↑ 4.0% FY20 $1,659 10.7% 1Represents a non-GAAP financial measure. Adjusted sales, adjusted operating income, adjusted operating margin and adjus
Slide 11: Pork Segment Results
Pork Segment Results Adj. Operating Income1 ($ in millions) Q4 FY20 FY20 Dollars ROS % Sales volume2 ↑ 6.9% ↓ 0.2% Q4 FY20 $162 12.8% Average price ↓ 5.9% ↑ 2.2% FY20 $555 11.0% 1Represents a non-GAAP financial measure. Adjusted sales, adjusted operating income, adjusted operating margin and adjuste
Slide 12: Q4 FY20 Highlights
Q4 FY20 Highlights ($ in millions, except per share data) Q4 FY20 FY20 • YTD Operating cash flows $3.9 billion Adj. Sales1 $10,641 $42,366 Adj. Operating Income1 $961 $3,116 • Liquidity of $3.2 billion at 10/3/2020 Adj. Operating Margin1 9.0 % 7.4 % Adjusted EPS1 $1.81 $5.64 • Leverage of 2.3x net d
Slide 13: Multi-Protein Portfolio Drives Earnings Stability and Unlocks Long-Term Growth
Multi-Protein Portfolio Drives Earnings Stability and Unlocks Long-Term Growth Tyson Foods, Inc. 13
Slide 14: Fiscal 2021 Outlook
Fiscal 2021 Outlook • Q1 off to a good start across segments • Expect total revenues of $42 billion to $44 billion • CapEx between $1.2 and 1.4 billion • Liquidity will remain in excess of $1 billion target • Effective tax rate expected to approximate 23% • Net interest expense of roughly $440 milli
Slide 15: Fiscal 2021 Business Environment
Fiscal 2021 Business Environment • Consumption oriented toward retail; continued recovery in food service • Opportunities to leverage automation and technology • Possibility for higher grain & freight costs • Beef and Pork segments expected to moderate toward historical levels • Chicken and Prepared
Slide 16: Q&A
Q&A Dean Banks Stewart President & CEO Glendinning Tyson Foods, Inc. EVP & CFO 16
Slide 17: Appendix
Appendix
Slide 18: Adjusted EPS Reconciliation
Fourth Quarter Twelve Months Ended Pretax Impact EPS Impact Pretax Impact EPS Impact 2020 2019 2020 2019 2020 2019 2020 2019 Reported net income per share attributable to Tyson $ 1.90 $ 1.01 $ 5.86 $ 5.52 Add: Restructuring and related charges $ 23 $ 10 0.05 0.02 $ 75 $ — 0.16 0.08 Add: Beef product
Slide 19: EBITDA Reconciliations
TYSON FOODS, INC. EBITDA Reconciliations ($ In millions) (Unaudited) Twelve Months Ended October 3, 2020 September 28, 2019 Net Income $ 2,150 $ 2,035 Less: Interest income (10) (11) Add: Interest expense 485 462 Add: Income tax expense 620 396 Add: Depreciation 900 819 Add: Amortization (a) 278 267
Slide 20: Segment Sales, Operating Income and Operating Margin Reconciliations
TYSON FOODS, INC. Segment Sales, Operating Income and Operating Margin Reconciliations ($ In millions) (Unaudited) Adjusted Segment Operating Income (Loss) (for the fourth quarter ended October 3, 2020) Beef Pork Chicken Prepared Foods International/Other Intersegment Sales Total Sales $ 4,272 $ 1,3