Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q2 2018 Earnings Presentation
22 slides from Tyson Foods's earnings presentation, May 7, 2018
Slide 1: Supplemental Information 2nd Quarter Fiscal 2018
Supplemental Information 2nd Quarter Fiscal 2018 May 7, 2018
Slide 2: Today's Speakers
Today’s Speakers Tom Hayes Stewart Glendinning President & CEO EVP & CFO 2 Tyson Foods, Inc. | May 7, 2018
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain information contained in this presentation may constitute forward-looking statements, such as statements relating to expected performance and including, but not limited to, statements appearing in the “Outlook” section and statements relating to adjusted EPS guidan
Slide 4: Sustainably Feed the World With the Fastest Growing Protein Brands
OUR STRATEGY — Sustainably Feed the World With the Fastest Growing Protein Brands HOW WE WILL ACHIEVE OUR STRATEGY — Grow. Deliver. Sustain. — — — Our businesses Ongoing financial Our company through fitness through and our differentiated continuous world for future capabilities improvement generati
Slide 5: First Half of FY18
First Half of FY18 First Half Highlights ($ in millions, except per share data) of FY18 • Record Adjusted EPS1,2 of $3.08, Sales $20,002 up 18% from last year Adjusted Operating Income1 $1,644 • Record Adjusted operating income1 Adjusted Operating Margin1 8.2% of $1,644M, up 2% from last year Adjust
Slide 6: Segment Results – Beef
Segment Results – Beef Q2’18 Adjusted Q2’18 sales volume up FY18 Outlook: Operating Income1 1.8% and revenue Adjusted Operating ($ in millions) increased by 5.6% Margin1 >6% Dollars ROS% $120 3.3% 1Represents a non-GAAP financial measure. Q2’18 Adjusted operating income and adjusted operating margin
Slide 7: Segment Results – Pork
Segment Results – Pork Q2’18 Adjusted Q2’18 sales volume FY 18 Outlook: Operating Income1 down by 1.1% and Adjusted Operating ($ in millions) revenue decreased by Margin1 ~8% Dollars ROS% 2.8% $79 6.2% 1Represents a non-GAAP financial measure. Q2’18 Adjusted operating income and adjusted operating m
Slide 8: Segment Results – Chicken
Segment Results – Chicken Q2’18 Adjusted Q2’18 sales volume up FY 18 Outlook: Operating Income1 2% and revenue Adjusted Operating ($ in millions) increased by nearly 6% Margin1 ~10% Dollars ROS% $288 9.7% 1Represents a non-GAAP financial measure. Q2’18 Adjusted operating income and adjusted operatin
Slide 9: Segment Results – Prepared Foods
Segment Results – Prepared Foods Q2’18 Record Adjusted Q2’18 sales volume up FY 18 Outlook: Operating Income1 nearly 11% and revenue Adjusted Operating ($ in millions) increased 22.6% Margin1 ~11% Dollars ROS% $222 10.3% 1Represents a non-GAAP financial measure. Q2’18 Adjusted operating income and a
Slide 10: Core 9 and Total Tyson Dollar Performance
Core 9 and Total Tyson Dollar Performance Dollar sales % change among top 10 branded food companies >$5B 8.6% 6.0% 3.0% 2.3% 2.3% 0.4% Total -0.3% -0.6% -1.0% -1.0% Core 9 Total -1.2% F&B -3.0% Source: IRI Total U.S. Multi-Outlet (x Costco), Dollar Sales, 52 weeks ending 4/1/2018 Includes Total Edib
Slide 11: Core 9 and Total Tyson Volume Performance
Core 9 and Total Tyson Volume Performance Volume sales % change among top 10 branded food companies >$5B Core 9 Total 10.9% Total 2.0% F&B 0.9% -0.6% -0.7% -1.2% -2.0% -2.1% -2.6% -3.4% -5.6% -6.2% Source: IRI Total U.S. Multi-Outlet (x Costco), Volume Sales, 52 weeks ending 4/1/2018 Includes Total
Slide 12: Foodservice Broadline Volume Performance
Foodservice Broadline Volume Performance Volume % Change vs. Prior Year (52 wks ending February 2018) 5.7% 5.1% = +0.5 = pts 1.7% Tyson Focus 6 Share Tyson Focus 6 Growth Total Broadline Focus 6 Tyson Focus 6 Share Growth Categories NPD SupplyTrack ® data, 52 weeks ending February 2018 Excludes Larg
Slide 13: Focus 6 Growing in Volume Performance
Focus 6 Growing in Volume Performance Volume sales % change among category competitors and the channel 5.7% 5.3% 4.4% 3.6% 3.2% 1.7% 1.1% Distributor Total Branded Broadline Focus 6 -3.6% -5.8% NPD SupplyTrack ® data, 52 weeks ending February 2018 Excludes Large Chain and Operator Label Focus Six= C
Slide 14: Tyson Frozen Meal Kits bringing fresh to frozen
Tyson Frozen Meal Kits bringing fresh to frozen Tyson Chef Inspired Meal Kits, offering simple, honest ingredients and just the right amount of help to make a wholesome meal any night of the week Tyson IF Dinner Kits for 4 Tyson Cooked Dinner Kits for 2 Tyson Cooked Entree Kits for 2 • Frozen raw ch
Slide 15: Tyson Frozen Any'tizers offer bold new take on snacking
Tyson Frozen Any’tizers offer bold new take on snacking Tyson Any’tizers Snackers offer a new twist on a familiar form, loaded potato skins, with the potato being replaced with breaded, all-natural chicken in 3 bold, delicious flavors 15 Tyson Foods, Inc. | May 7, 2018
Slide 16: Sustainably Feed the World With the Fastest Growing Protein Brands
OUR STRATEGY — Sustainably Feed the World With the Fastest Growing Protein Brands HOW WE WILL ACHIEVE OUR STRATEGY — Grow. Deliver. Sustain. — — — Our businesses Ongoing financial Our company through fitness through and our differentiated continuous world for future capabilities improvement generati
Slide 17: First Half of FY18
First Half of FY18 First Half Highlights ($ in millions, except per share data) of FY18 • Record Adjusted operating income1 Sales $20,002 of $1,644M, up 2% from last year Adjusted Operating Income1 $1,644 • Record Adjusted EPS1,2 of $3.08, Adjusted Operating Margin1 8.2% up 18% from last year Adjust
Slide 18: FY18 Outlook
FY18 Outlook 1 Sales between CapEx Adjusted EPS $40-41B Topline growth of ~6% over FY17 ~$1.3B $6.55-6.70 2,3 ~23-26% growth vs. FY17 as we grow volume and have full year benefit of AdvancePierre Beef Pork Chicken Prepared Foods adjusted operating adjusted operating adjusted operating adjusted opera
Slide 19: Sustainably Feed the World With the Fastest Growing Protein Brands
OUR STRATEGY — Sustainably Feed the World With the Fastest Growing Protein Brands HOW WE WILL ACHIEVE OUR STRATEGY — Grow. Deliver. Sustain. — — — Our businesses Ongoing financial Our company through fitness through and our differentiated continuous world for future capabilities improvement generati
Slide 20: Appendix: Non-GAAP Reconciliations
Appendix 2nd Quarter Fiscal 2018 Non-GAAP Reconciliations
Slide 21: EPS Reconciliations
EPS Reconciliations In millions, except per share data (Unaudited) Six Months Ended Second Quarter March 31, 2018 Pretax Impact EPS Impact Pretax Impact EPS Impact 2018 2017 2018 2017 2018 2017 2018 2017 Reported net income per share attributable to Tyson $ 0.85 $ 0.92 $ 5.25 $ 2.51 Add: Restructuri
Slide 22: Segment Operating Income and Operating Margin Reconciliations
Segment Operating Income and Operating Margin Reconciliations Adjusted Segment Operating Income (Loss) In millions (for the second quarter ended March 31, 2018) (Unaudited) Prepared Intersegment Beef Pork Chicken Foods Other Sales Total Sales $ 3,681 $ 1,265 $ 2,959 $ 2,147 $ 82 $ (361) $ 9,773 Repo