The Middleby Corporation · NASDAQ:MIDD
The Middleby — Roth Capital Growth Stock Conference (February 2009)
24 slides from The Middleby's conference presentation, Feb 18, 2009
Slide 1: The Middleby Corporation Investor Day, Roth Capital Growth Stock Conference
The Middleby y Corporation p Investor Day R th C Roth Capital it l G Growth th Stock St k Conference February 18, 2009 1
Slide 2: Forward Looking Statements
Forward Looking g Statements Statements made in this p presentation or otherwise attributable to the company regarding the company's business which are not historical fact are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 19
Slide 3: Diverse and Stable Revenue Base
Diverse and Stable Revenue Base Food Processing 14% New Store Majority in International Openings international Food Service 20% 33% markets Institutional 10% Allows Independent 9% restaurants to Menu differentiate Changes themselves in 33% a competitive Casual 9% Domestic market Food Service Pizza 9
Slide 4: Value Added Offering (cont'd)
Value Added Offering g (cont’d) ( ) Limited Service Restaurant Unit Economics Illustrative Middleby Product Economics % Sales Investment $ $10,000 Sales $2,200,000 100.0% Cost of Food & Beverage 638,000 29.0% Yearly Depreciation 1,2 Pitco Fryer: $1,428 $10,000 Gross Profit 1,562,000 71.0% Year
Slide 5: Global Reach
Global Reach Mississauga, Bilbao, Spain Manchester, UK Delhi, India Seoul, South Korea Ontario, Canada # of Employees: 11 # of Employees: 20 # of Employees: 5 # of Employees: 11 # of Employees: 2 Shanghai, China # of Employees: 14 Taipei, Taiwan # of Employees: 7 Manila, Philippines Manila Mexico Ci
Slide 6: Premier Customers
Premier Customers Blue-chip customer base Long standing relationships Limited customer concentration Large installed base Serve all food segments 6
Slide 7: New Product Pipeline – Food Service
New Product Pipeline p – Food Service 2008 Introductions 2009 Introductions WOW! Green 640 Oven TurboChef i5 series Hydrovection Oven WOW! Oven 624 Rocket Fryer Ultimate 400 Range (buildmyrange.com) Ventless Hood High speed conveyor toaster Enduraheat Temperature controlled gridd
Slide 8: In the News…
In the News… Convenience Store News, Feb. 16, 2009 DALLAS -- After successfully testing the program in several markets, 7-Eleven Inc. is proceeding with a national rollout of its hot foods lineup, and expanding the variety of menu items offered, CSNews Online learned from company executives. Current
Slide 9: In the News…
In the News… KFC is to open 300 restaurants creating up to 9,000 jobs February 16, 2009 The Press Association, UK The chain announced a recession-defying investment scheme of up to £150 million to set up between 200 and 300 new restaurants in the next three to five years. Chief executive Martin Shuk
Slide 10: Brand Selling Points
Brand Selling Points ad THE ONLY EUROPEAN STYLE FRENCH HOT TOP MADE IN THE U.S.A. a We Wont #S*1% You Over DPA f 7 Reentatis BEAT Wheirraniey — The Best in the Industry — No Small Print No Hidden Fees No “It's YOUR Fault” —_No “It’s Not Covered” No Questions Asked (Za Sournsennp) (919) 762-1000 warm
Slide 11: Brand Selling Points
Brand Selling Points a oy You're Govered with Southbend Water & Splash Resistant The only fryer with —s a self-cleaning burner i aoe eee = - self-cleaning iechnology is Included In Pltco Salrtica Supreme. —_— Ke gran myc. the only chaive in fryera ? PA SouTHBENDS (919) 762-1000 www.southbendnc.com
Slide 12: Brand Selling Points
Brand Selling Points a [ponent settee 2 32/23/07 8:03 aM page 2 & | ® ne Q? JADE RANGE on ary surface temperature for fast carmelization ALL YOU NEED and wearing without crying. Used at Ili, Katsuya by Stark Jade Wok Range High power jet burner and heavy-gauge, all-welded stainless steel are standar
Slide 13: Middleby Marshall WOW! Oven
Middleby y Marshall WOW! Oven Fastest cook time in the the industry y Least energy consumption, guaranteed cost savings Uses 30 to 80 percent energy than competitors Cool to the touch, leader in employee safety More than 4000 sold, Mew models introduced in 2008-09 Gas G Food F d Equipment E i t
Slide 14: Carter-Hoffmann Enduraheat
Carter Hoffmann Enduraheat Carter-Hoffmann Enduraheat 2008 National Restaurant Association Innovation Award winner Chargeable heat retention system keeps the cart heated even when unplugged The GREEN Holding Cart www.greenstainless.com • Eliminates the use of Sterno/ canned fuel when the cart is in
Slide 15: Pitco Rocket Fryer
Pitco Rocket Fryer y |PiTrco) Rocket Fryer (Oil flow schematic) Circulation Pump for Oil impingement, convection flow. In Line Heat Exchanger Uses Less Oil for cooking Crumb Ejection System
Slide 16: Blodgett Hydrovection
Blodgett Hyd rovection DDLEBY CORPORATION NATIONAL RESTALIRANT ASSOCIATION RESTALBANT, BOTE-MOTEL SHOW Blodgett is proud to introduce our The NEW Hydrovection™ oven from FASTEST CONVECTION OVEN Blodgett unites convection cooking with that also happens to CLEAN ITSELF. moisture to produce a quality p
Slide 17: Market Leading Brands – Food Processing
Market Leading g Brands – Food Processing g Brand Product U.S. Market Position Representative Customers Batch Ovens #1 Continuous Ovens #1 Sara Lee, Smithfield Belt Ovens #2 Food F d Packaging P k i #2 Kraft, Hormel Equipment Conveyorized Breaders #2 Battering Equipment #1 Tyson, P
Slide 18: New Product Pipeline – Food Processing
New Product Pipeline p – Food Processing g 2008-09 Introductions Conveyor Fryer Co-Extrusion Forming Equipment Intellijet Water Cutter Bone Scanner New products typically carry profit margins >5% higher than existing products 18
Slide 19: TurboChef Overview
TurboChef Overview Overview Existing Commercial Ovens g provider of equipment, technology TurboChef is a leading gy and services focused on the high-speed preparation of food products Products include user-friendly speed cook ovens employing proprietary combinations of heating technologies to co
Slide 20: Compelling Strategic Rationale
Compelling p g Strategic g Rationale Acquire a proven technology leader Obtain leading Leverage Middleby position in fast growing customer relationships speed cook market to grow TurboChef sales Ability to utilize Create value by accumulated net applying Middleby’s operating losses tested integratio
Slide 21: Plan for Operational Improvement
Plan for Operational Improvement Estimated Cost Savings g Corporate Public company costs $8 million Reorganization Redundancies with Middleby y corporate p office Reduction of significant marketing spending Residential Minimize staffing and cost structure $15 million Reorganization Syn
Slide 22: Middleby Financial Performance
Middleby y Financial Performance Sales Gross Profit ($ in millions) $646.4 ($ in millions) $245 8 $245.8 ’01-’07 Organic $500.5 Growth CAGR: 7% $192.4 $403.1 $156.9 $316.7 $271.1 $121.7 1 $242.2 $229.1 $229 $102 6 $102.6 $78.5 $85.9 $101.6 $32.4 2001 2002 2003 2004 2005 2006 2007 LTM 2001 2002 2003
Slide 23: Free Cash Flow
Free Cash Flow ($ in millions) Free Cash Flow1 $99.3 $81.8 $61.7 $44.9 $38.0 $27.6 $10.2 2001 2002 2003 2004 2005 2006 2007 Free Cash Flow Significant free cash flow generation 1Free Cash Flow = EBITDA - Capital Expenditures 23
Slide 24: Investment Highlights
Investment Highlights g g Leading value-added manufacturer of hot commercial food service and processing equipment (#1 or #2 market share in each product) Products are critical to customers, represent small portion of their budgets, and provide high ROIs/attractive payback U i Unique global l
The Middleby — Roth Capital Growth Stock Conference (February 2009) on 6ix