Fresh Del Monte Produce, Inc. · NYSE:FDP
Fresh Del Monte Produce — Q1 2021 Earnings Presentation
46 slides from Fresh Del Monte Produce's earnings presentation, May 5, 2021
Slide 1: Innovating for a Better World Tomorrow
INNOVATING FOR A BETTER WORLD TOMORROW Fresh Del Monte Produce Inc. Investor Relations May 5, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements regarding the intent, beliefs or current expectations of the Company or its officers with respect to the Company’s plans and future performance. These forward-looking statements are based on information currentl
Slide 3: Who We Are - Key Differentiators
FRESH DEL MONTE PRODUCE WHO WE ARE - Key Differentiators Diverse Portfolio Global player with a Purpose-driven growth: with demand for leading brand loved by ESG integration as a value-added produce consumers competitive advantage growing Positioned like no one Purposeful & Targeted else – verticall
Slide 4: How We Got There - Decades of Growth
FRESH DEL MONTE PRODUCE AT A GLANCE HOW WE GOT THERE - Decades of Growth 1996 2017 2013-14 Announced new joint ventures with Del Monte Pacific Limited Del Monte Fresh Produce acquired by current Acquired tomato agricultural in retail & refrigerated grocery management production land in Florida and 2
Slide 5: A Diversified Company Positioned for Long-Term Growth
A Diversified Company Positioned for Long-Term Growth…
Slide 6: Worldwide Business – Unmatched Global Network
Worldwide Business – Unmatched Global FRESH DEL MONTE PRODUCE AT A GLANCE Network We are one of the world’s leading vertically- integrated producers, distributors and 37,600 EMPLOYEES GLOBALLY marketers of fresh and fresh-cut fruit and vegetables as well as a leading producer and 90+ COUNTRIES FRESH
Slide 7: Worldwide Business – Unmatched Global Network
Worldwide Business – Unmatched Global FRESH DEL MONTE PRODUCE AT A GLANCE Network IN 2020 45% OF OUR FRESH PRODUCE WAS GROWN ON COMPANY- CONTROLLED FARMS 103k ACRES UNDER PRODUCTION 61k ACRES OWNED 42k ACRES LEASED OF OWNED ACRES SET 26% ASIDE TO PRESERVE BIODIVERSITY AND PROTECT WILDLIFE 7
Slide 8: Worldwide Business – Broad Portfolio of Products
Worldwide Business – FRESH DEL MONTE PRODUCE AT A GLANCE Broad Portfolio of Products IN 2020 U.S. & CANADA EUROPE CENTRAL AMERICA ASIA AFRICA Sales Sales & Sourcing Sourcing Sales Sales ▪ Fresh & fresh-cut fruit ▪ Fresh & Fresh-cut fruit and ▪ Bananas ▪ Fresh & fresh-cut fruit ▪ Fresh fruit and vege
Slide 9: Broad Portfolio of Products – Leading Market Positions
Broad Portfolio of Products – Leading FRESH DEL MONTE PRODUCE AT A GLANCE Market Positions Leading marketer of fresh A leading marketer of fresh-cut fruit Third largest marketer of bananas in pineapples in the U.S., and a in the U.S, Canada, Japan, South the U.S., and a leading marketer of leading m
Slide 10: One of the Most Widely Recognized Food Brands Worldwide
One of the Most Widely Recognized FRESH DEL MONTE PRODUCE AT A GLANCE Food Brands Worldwide Symbol Health of Quality Wellness and Better-for-you attributes Freshness Broad Appeal Global opportunity to expand to new products and markets 10
Slide 11: Market Leader & Pioneer in the Fresh Produce Industry
Market Leader & Pioneer FRESH DEL MONTE PRODUCE AT A GLANCE in the Fresh Produce Industry Innovating Where We Have Advantage. We were the… ✓ FIRST to complete a national U.S. distribution network ✓ FIRST to launch a national fresh-cut fruit network ✓ FIRST to introduce premium gold pineapple ✓ FIRST
Slide 12: Diversified Sales & Product Platform
Diversified Sales & Product Platform FRESH DEL MONTE PRODUCE AT A GLANCE 2020 NET SALES: $4.2 BILLION Other Products & Services 3% Tomatoes 1% Vegetables 4% Middle East, Prepared 10% Melons, 2% Food, 6% Europe, Avocados, 8% Other Fruit & 16% Vegetables, 2% Non-Tropical Fruit, 5% BY BY Other, 1% REGI
Slide 13: Experienced and Results Oriented Management
Experienced and Results Oriented FRESH DEL MONTE PRODUCE AT A GLANCE Management Years at Name Title FDP Mohammad Abu-Ghazaleh Chairman and CEO 25 Youssef Zakharia President and COO 20 Eduardo Bezerra Senior Vice President and CFO 1 Marlene Gordon Senior Vice President – General Counsel, Chief Admini
Slide 14: Our Vision
Our Vision Inspiring healthy lifestyles through wholesome and convenient products 14
Slide 15: Our Values
Our Values EXCELLENCE: CARE: We provide high quality level in all our products We relentlessly respect and focus on our and services to fully achieve business results. employees, consumers, customers, environment and communities. PASSION: We have a passion to consistently deliver the TRUST: best qua
Slide 16: Sustainable Growth Strategy
Sustainable Growth Strategy
Slide 17: Unlocking the Value
Unlocking the Value STRATEGIC IMPERATIVES We have embarked on a 5-year plan to transform Fresh Del Monte Produce THE KEY ELEMENTS OF OUR TRANSFORMATION INVOLVE: Protect and grow the core Drive innovation and expansion growth on value-added categories Become a technology driven company Become a consu
Slide 18: Focus on Strong Execution, Fundamentals and Returns
Focus on Strong - Execution, Fundamentals and Returns UNLOCKING THE VALUE Drive innovation and Protect and grow expansion growth on value- the core added categories 18
Slide 19: Focus on Leadership Area - Quality and Safety
Focus on Leadership Area - UNLOCKING THE VALUE Quality and Safety To demonstrate compliance with international regulations and standards on environmental protection, food safety and social accountability, our farms and our facilities are certified by one or more of the following standards: ▪ Global
Slide 20: The Del Monte Brand
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns The Del Monte® Brand Food and Beverage Stores 20
Slide 21: The Del Monte Brand
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns The Del Monte® Brand E-Commerce 21
Slide 22: Technology and Consumer Driven Company
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns Become a technology driven company Become a consumer driven company 22
Slide 23: Evolve Our Culture
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns Evolve our culture to increase employee engagement and productivity 23
Slide 24: Diversity and Inclusion
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns We strive to foster a culture of diversity and inclusion (“D&I”) so all employees feel respected and no employee feels discriminated against. We are proud of our diversity across our organization and especially our leadership
Slide 25: Sustainability: Waste Less for a Better World Tomorrow
Sustainability: Waste Less for a Better World Tomorrow UNLOCKING THE VALUE 25
Slide 26: Our 2025 Commitments
Sustainability: Waste Less for a Better World Tomorrow Our 2025 Commitments 35% 120% 864,167 Trees Planted Since 2016 350+ Local Sustainability Programs We commit to planting and/or donating We commit to supporting 300 local sustainability programs 2,500,000 trees by 2025 that create measurable and
Slide 27: ESG Initiative Example
ESG Initiative Example PR Daily's Corporate Social Responsibility _ SWARDs_— QUNITED NATIONS My access; Ss, FOUN DATION PRIVATE SECTOR ACTION FOR WOMEN'S HEALTH AND EMPOWERMENT FRESH DEL MONTE KENYA SERVICE ETI | | | CERTIFICATE OF APPRECIATION Del bd fel hows falan Is hereby granted to David Woffor
Slide 28: Sustainability: Waste Less for a Better World Tomorrow
Sustainability: Waste Less for a Better UNLOCKING THE VALUE World Tomorrow 28
Slide 29: Financial Review
Financial Review
Slide 30: Summary Data
Summary Data FINANCIAL PERFORMANCE Full Year 1st Quarter 2016 2017 2018 2019 2020 2020 2021 Net Sales $ 4,011 $ 4,086 $ 4,494 $ 4,489 $ 4,202 $ 1,118 $ 1,088 Gross Profit $ 461 $ 332 $ 286 $ 306 $ 251 $ 69 $ 105 % Margin 12% 8% 6% 7% 6% 6% 10% Operating Income $ 244 $ 153 $ 39 $ 114 $ 77 $ 18 $ 60 N
Slide 31: Fresh and Value-Added Products
Fresh and Value-Added Products FINANCIAL PERFORMANCE Fresh & value-added products includes pineapples, melons, tomatoes, non- tropical fruit, avocados, fresh-cut fruit & vegetables, vegetables, prepared fruit & vegetables, juices, other beverages, prepared meals, snacks & other fruit & vegetables. F
Slide 32: Bananas
Bananas FINANCIAL PERFORMANCE Full Year 1st Quarter 2016 2017 2018 2019 2020 2020 2021 Net Sales $ 1,812 $ 1,775 $ 1,703 $ 1,656 $ 1,603 $ 427 $ 418 Gross Profit* $ 159 $ 113 $ 93 $ 105 $ 92 $ 25 $ 48 Gross Profit Margin 9% 6% 5% 6% 6% 6% 11% U.S. dollars in millions * Excludes one time charges 32
Slide 33: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share FINANCIAL PERFORMANCE $4.74 $2.43 $1.15 $1.12 $0.88 $0.40 $0.34 2016 2017 2018 2019 2020 Q1 2020 Q1 2021 Excludes asset impairment, restructuring charges & gain/(loss) on the sale of assets. 33
Slide 34: Adjusted EBITDA
Adjusted EBITDA FINANCIAL PERFORMANCE $340 $233 $209 $182 $161 $82 $51 2016 2017 2018 2019 2020 Q1 2020 Q1 2021 U.S. dollars in millions Excludes asset impairment, restructuring charges & gain/(loss) on the sale of assets. 34
Slide 35: Operating Cash Flow
Operating Cash Flow FINANCIAL PERFORMANCE $332 $247 $194 $181 $169 $47 $2 2016 2017 2018 2019 2020 Q1 2020 Q1 2021 U.S. dollars in millions 35
Slide 36: Debt & Capital Expenditures
Debt & Capital Expenditures / FINANCIAL PERFORMANCE Investing in Diversification & Expansion Capital Expenditures Debt $147 $151 $150 $662 $139 $587 $122 $542 $358 $232 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Repurchase Program Dividend Policy Total Debt ▪ $318 million spent between ▪ Anno
Slide 37: Implemented $100 Million Asset Sale Optimization Program
Asset Sale Optimization Program FINANCIAL PERFORMANCE Implemented $100 million Asset Sale Optimization Program ✓ Comprehensive review of all aspects of business ✓ Sell non-strategic and under-utilized assets ✓ To date $42.4 million of the $100.0 million 37
Slide 38: Fresh Del Monte Produce Investment Highlights
Fresh Del Monte Produce Investment Highlights $100 million Asset Sale Optimization Program Clear Growth DEL MONTE Strategy Brand Vertically- Integrated Market Leader and Global in Diverse Operations Produce Categories Distribution and Fresh-Cut Centers (Value-Added Focus) 38
Slide 39: Appendix
Del Monte Quality Appendix
Slide 40: Income Statement
Income Statement APPENDIX Full Year 1st Quarter 2016 2017 2018 2019 2020 2020 2021 Net Sales $ 4,011 $ 4,086 $ 4,494 $ 4,489 $ 4,202 $ 1,118 $ 1,088 Cost of Sales 3,550 3,754 4,208 4,177 3,918 1,042 982 Restructuring and Other Charges - 1 - 5 34 8 2 Gross Profit 461 332 286 306 251 69 105 % Margin 1
Slide 41: Non-GAAP Measures
Non-GAAP Measures APPENDIX The Company's results are determined in accordance with U.S. generally accepted accounting principles (GAAP). Certain information presented in this press release reflects adjustments to GAAP measures such as amounts related to restructuring, asset impairment and other (cre
Slide 42: Non-GAAP Reconciliation
Non-GAAP Reconciliation APPENDIX Quarter ended April 2, March 27, 2021 2020 Net income Net income attributable attributable to Fresh Del to Fresh Del Operating Monte Operating Monte Gross Profit income Produce Inc. Diluted EPS Gross Profit income Produce Inc. Diluted EPS As reported $ 105.0 $ 59.7 $
Slide 43: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA APPENDIX Quarter ended April 2, March 27, 2021 2020 Net income attributable to Fresh Del Monte Produce Inc. $ 42.7 $ 13.0 Interest expense, net 5.2 5.3 Provision for income taxes 11.0 0.3 Depreciation & amortization 23.8 23.6 Share-based comensation expen
Slide 44: Appendix footnotes on other product-related charges
APPENDIX (1) Other product-related charges for the quarter ended April 2, 2021 primarily related to $3.1 million in inventory write-offs of non-tropical fruit resulting from inclement weather in Chile. Partially offsetting the inventory write-offs is a $2.5 million insurance recovery associated with
Slide 45: Balance Sheet
Balance Sheet APPENDIX Full Year Three Months 2016 2017 2018 2019 2020 2020 2021 ASSETS Cash & Short Term Investments $ 20 $ 25 $ 21 $ 33 $ 17 $ 21 $ 26 Accounts Receivable 412 432 $ 474 $ 439 435 481 503 Inventory & Other 529 562 644 579 561 590 572 CURRENT ASSETS 961 1,020 1,139 1,051 1,012 1,092
Slide 46: Cash Flow
Cash Flow APPENDIX Full Year Three Months 2016 2017 2018 2019 2020 2020 2021 Net Income $ 225 $ 121 $ (16) $ 69 $ 49 $ 13 $ 41 Non-Cash Charges 93 104 $ 150 $ 110 $ 98 26 24 Working Capital 13 (29) 113 (10) 37 (37) (18) Operating Cash Flow 332 194 247 169 181 2 47 Capital Expenditures (147) (139) (1
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