John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Shareholder Meeting (October 2012)
62 slides from John B. Sanfilippo & Son's shareholder meeting presentation, Oct 30, 2012
Slide 1: Annual Stockholder Meeting-FY'12 Review
Annual Stockholder Meeting-FY’12 Review October 30, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements in this presentation 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 markets i
Slide 3: Agenda
Agenda JBSS Overview and Jeffrey Sanfilippo Chairman & CEO Strategic Vision Financial Review Mike Valentine CFO & Group President Brand Marketing Howard Brandeisky VP Global Marketing & Customer Solutions Brand Sales Chris Gardier Sr. VP Consumer Sales Closing Remarks Jeffrey Sanfilippo Chairman & C
Slide 4: 90th Anniversary
90% Anniversary | Perfect time to be nuts about nuts| Perfect lime to be nuts about nuts, wild about rae JBSS grew from a small factory in Chicago where pecans were cracked and shelled by hand to become one of the premier processors, marketers and stributors of baking nuts, snack nuts and nut-based
Slide 5: Celebrating Years
Celebrating 90 Years Rosalie Sanfilippo Past President and Chairman of the Board Jasper Sanfilippo Matt Valentine John B. Sanfilippo Founder March 5, 1903 – 1963 Mary Valentine & Anne Karacic
Slide 6: Celebrating Years
Celebrating 90 Years Elgin Garysburg Gustine Selma
Slide 7: Vision
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer. Mission To be the global leader of quality driven, innovative nut solutions that enhance the customer and consumer experience and achieve consis
Slide 8: Community Relations
Community Relations pr e ic 12 DEPOSITORY pxuip MeDoway ad CHARITIES CHICAGOLAND & NORTHWEST INDIANA a —
Slide 9: JBSS Strategic Pillars
te JOHN B. SANFILIPPO & SON, INC. BUILDING OUR FUTURE JBSS Strategic Pillars > EXPAND GLOBALLY PROVIDE Leeaae ners INTEGRATED NUT Dp enaner ah nme SOLUTIONS Prec roan Societe tor en tern Soares nme concen Me wt torptne te Key macs: Aaa Canad, bak aad ‘SAFETY PEOPLE The Global Source for Ni
Slide 10: Talent and knowledge will continue to facilitate the execution of our Strategic Plan
Talent and knowledge will continue to facilitate the execution of our Strategic Plan • Experienced management team • Expanding global knowledge • Investments in consumer insights & brand development • Procurement expertise
Slide 11: Business Channel Diversification
Business Channel Diversification Fiscal 2012 Net Sales $701 Million (Millions of $) Export 5% Commericial Ingredients 25% Consumer Products 60% Contract Mfg. 10%
Slide 12: FY 2012 Accomplishments
FY 2012 Accomplishments Transformed our Customer Relationships Expanded our Innovation and Consumer Insights Focus Continued to Optimize Operational Efficiencies
Slide 13: Innovation new items launched during FY'12
Innovation 152 new items launched during FY ‘12
Slide 14: Commercial Ingredients on a Roll!
Commercial Ingredients on a Roll!
Slide 15: Optimized Operations & Distribution
Optimized Operations & Distribution Laser Sorter- Gustine Stand Up Bag Line- Elgin Apache Bagger-Garysburg Selma, Texas Facility Expansion Hayssen
Slide 16: Resource Conservation Update
Resource Conservation Update Total Company Electric KwH Usage/LBS. Total Company Natural Gas Therms Usage/LBS. 0.0038 0.0700 0.0033 0.0600 0.0028 0.0500 0.0023 0.0400 0.0018 0.0300 0.0013 0.0200 0.0008 0.0100 0.0003 - (0.0002) Therms 08 Therms 09 Therms 10 Therms 11 Therms 12 KwH 08 KwH 09 KwH 10 Kw
Slide 17: FY 2012 Accomplishments
FY 2012 Accomplishments Fisher Baking—created a best in class integrated marketing program and gained tantial new distribution and market e fisher Snack – stabilized distribution and improved unit volume sales per store per Orchard Valley Harvest – refreshed brand age, product portfolio and position
Slide 18: Our Brands Over The Years
Our Brands Over The Years Praunue STATE j van mms on
Slide 19: Our Branded Customers Today
Our Branded Customers Today Fisher Orchard Valley HARVEST ower Piee Walmart >\< serene Save money. Live better. TARGET \ Seed eee fills Sysco ($) US. With us, ifS personal.
Slide 20: U.S. Nut Category Dollar Growth
U.S. Nut Category Dollar Growth Category % $ Sales Category +7.9% +18.4% +12.1% +9.2% Baking, $571 , 11% Trail Mix, $616 , 12% Snack, $2,572 , 48% Produce, $1,543 , 29% Millions $ Source: Nielsen XAOC Dollar Sales, Fiscal 2012 vs Year Ago
Slide 21: Times Square November 17, 2011
Times Square November 17, 2011
Slide 22: FY 2012 Accomplishments
FY 2012 Accomplishments Achieved 30% increase in Global Fisher Snack sales Developed New Private Brand Snack platform for global retailer Completed China Market Entry study with International Consulting Firm
Slide 23: Global Nut Consumption
Global Nut Consumption Nut Consumption Growth % Growth Vs. LY 6% 4% 2% 0% Nut Consumption Growth 4.2% 3.2% $14.6B 2.9 Billion Lbs. Actual Consumption Source: Euromonitor
Slide 24: Global GDP Growth
Global GDP Growth 2011 – 2016 CAGR 2011 – 2016 CAGR 2011 – 2016 CAGR World Average 3.8% Mid-East World Average 3.8% Source: IMF
Slide 25: Global Population Growth
Global Population Growth % of World Population by 2017 19.0% 17.7% 15.6% 4.5% 3.5% 3.3% 2.8% 1.9% 1.6% 0.5% Source: IMF
Slide 26: International Sales on a Roll!
International Sales on a Roll! Super 99 Panama Carrefour Dominican Republic E-Mart Korea Sweet Space Korea Carrefour French Polynesia
Slide 27: Fisher in China 2012
Fisher in China 2012
Slide 28: Financial Milestones
FY 2012 Financial Milestones
Slide 29: JBSS Stockholders' Equity FYs 1991-2012
JBSS Stockholders’ Equity FYs1991- 2012 ($ in Millions) 25 32 69 68 76 73 73 78 80 87 84 102 119 181 196 180 163 158 165 180 184 201 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $225 $200 $175 $150 $125 $100 $75 $50 $25 $0
Slide 30: JBSS Net Sales FYs 1991-2012
JBSS Net Sales FYs 1991- 2012 Low Carb Diet Run Up Item Rationalization, De-emphasized Commodity Sales, Lower Prices ($ in Millions) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $800 $700 $600 $500 $400 $300 $200 $100 $0 165 193 204 20
Slide 31: JBSS Total Outstanding Debt FYs 1991-2012
JBSS Total Outstanding Debt FYs 1991- 2012 Facility consolidation Improved operating performance 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $160 $140 $120 $100 $80 $60 $40 $20 $0
Slide 32: JBSS Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – 2012 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 5.0% 0%
Slide 33: 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 34: Reconciliation of Net Income (Loss) to EBITDA
Reconciliation of Net Income (Loss) to EBITDA (In $,000’s) FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 NET INCOME (LOSS) 7,691 15,027 22,630 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 INTEREST EXPENSE 5,757 4,681 3,434 3,998 6,516 9,347 10,502 7,646 5
Slide 35: EBITDA
EBITDA* IN $,000’s * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Slide 36: EBITDA Margin (% of Net Sales)
EBITDA* Margin (% of Net Sales) * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 12.0% 10.0% 8.0% 4.0% 2.0% 0% -2.0% -4.0%
Slide 37: EBITDA Per Pound Sold
EBITDA* Per Pound Sold FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure
Slide 38: Nut Spot Mkt. Prices vs. JBSS Gross Margins by Quarter
Nut Spot Mkt. Prices vs. JBSS Gross Margins by Quarter $8.00% $7.50% $7.00% $6.50% $6.00% $5.50% $5.00% $4.50% $4.00% $3.50% $3.00% $2.50% $2.00% $1.50% $1.00% $0.50% 24.0% 22.5% 21.0% 19.5% 18.0% 16.5% 15.0% 13.5% 12.0% 10.5% 9.0% 7.5% 6.0% 4.5% 3.0% 1.5% 1.5% 0.0%
Slide 39: Highlights: Q1 2013 vs. Q1 2012
Highlights: Q1 2013 vs. Q1 2012 (in 000’s except EPS) $ Chng. % Chng. Net Sales $20,707 13.2% Sales Volume (lbs. sold) (224) (.4%) Gross Profit $ 8,807 40.5% Net Income $ 5,092 208.5% Earnings Per Share $ 0.46 199.6% Operating Cash Flows ($ 2,014) (16.4%) Total Debt ($ 5,080) (5.6%)
Slide 40: GROW JBSS - Sales & Marketing Update
w GROW JBSS sranos — Sales & Marketing Update
Slide 41: Fisher is Building Momentum
Fisher is Building Momentum Total Sales* Nielsen $ (000’s lbs) Share Q1 Vs. Q1 Vs. FY13 YAG FY13 YAG Fisher Brand 6.9 +30% 2.7% +0.5 Consumer Channel
Slide 42: Reinventing the Recipe Nut Aisle
Reinventing the Recipe Nut Aisle YESTERDAY TODAY Same package as everyone else No Point of Difference First to convert to “Freshness Seal” Stand Up Bag Preferred 2:1 over competition* * Quantitative paired comparison test – online study conducted by Blue Chip Marketing March 2011
Slide 43: Strong Market Share Momentum on Fisher Recipe Nuts
Strong Market Share Momentum on Fisher Recipe Nuts Fisher Pound Share Change of Recipe Nut Category Total U.S. 4.7 3.4 3.6 3.6 3.0 1.4 1.6 03/17/12 04/14/12 05/12/12 06/09/12 07/07/12 08/04/12 09/01/12 09/29/12 Source : Nielsen – Data Ending 9/29/12 – Total U.S. FDM, Dollar, Club, Military
Slide 44: Supporting Fisher with Strong Branding Campaign
Supporting Fisher with Strong Branding Campaign Custom TV vignettes Alex Guarnaschelli Food Network Magazine FoodNetwork.com
Slide 45: Vignettes will be featured on Food Network TV and Cooking Channel TV
Vignettes will be featured on Food Network TV and Cooking Channel TV Holiday Vignettes
Slide 46: Strong In-Store Support
Strong In-Store Support Partnerships Shippers 1 / 4 Pallet Displays
Slide 47: Translating into New Distribution!
Translating into New Distribution!
Slide 48: We've Freshened Up Our Brand in Core Snacks…
We’ve Freshened Up Our Brand in Core Snacks… YESTERDAY TODAY Good awareness and nostalgic brand image No consumer point of difference, no customer story • Consumers prefer “Freshness You Can See” bundle over competition
Slide 49: …and Trail Mix
…and Trail Mix YESTERDAY TODAY No consumer recognition of Fusions sub-line Small product window Downsized to better fit consumer “Grab & Go” occasion Clear Trail Mix communication; larger product window
Slide 50: Strong Share Momentum on Fisher Snack Nuts
Strong Share Momentum on Fisher Snack Nuts Fisher Pound Share Change of Snack Nut Category Total U.S. x AOC +0.3 pts. 0.3 pts. 0.1 0.1 0.0 03/17/12 04/14/12 05/12/12 06/09/12 07/07/12 08/04/12 09/01/12 09/29/12 -0.1 -0.2 -0.2 Source : Nielsen – Data Ending 9/29/12 – Total US x AOC (excludes Trail Mi
Slide 51: New Products to Build the Brand
New Products to Build the Brand FY 2012 FY 2013 Cocoa Mocha & Vanilla Bean Almonds Specialty Snack Items Smoked Bacon & Cheddar Crunch Almonds Expanded Honey Roast Line Omega 3 and Oatmeal Trail Mix Mammoth Pecans
Slide 52: Building a Social Media Presence
Building a Social Media Presence 62,484 October ‘11 October ‘12 70000 60000 50000 40000 30000 20000 10000 Likes
Slide 53: Building the Business By Getting Pounds on the Floor
Building the Business By Getting Pounds on the Floor
Slide 54: Re-launching Orchard Valley Harvest
Re-launching Orchard Valley Harvest YESTERDAY TODAY Poor Brand Registration No clear brand meaning Strong Brand Registration Clean packaging graphics reinforce “from the earth” credentials Clean ingredient line reinforces credentials
Slide 55: Produce shoppers expect more
Produce shoppers expect more • Fresh • Natural • Pure & Simple • Authenticity
Slide 56: And Orchard Valley Harvest Delivers!
And Orchard Valley Harvest Delivers! Fresh Pure & Simple From the Earth Natural Authentic
Slide 57: Integrated Program to Build the Brand
Integrated Program to Build the Brand Right Brand Win In-Store Products Building
Slide 58: Closing Comments
Closing Comments oo a ee
Slide 59: Where it all Began…. W. Division Street
Where it all Began…. 647 W. Division Street Chicago, IL
Slide 60: HI JEFF:
HI JEFF: “BLDG. LOOKS PRETTY BAD. THERE WAS A PAINTED SIGN ON THE WEST WALL, LONG GONE NOW. THIS BLDG. ALMOST KILLED ME. WHAT A PLACE TO HAVE WASTED MY YOUTH IN. I HOPE I NEVER HAVE TO SEE IT AGAIN.” DAD
Slide 61: A Foundation for the Future
A Foundation for the Future Elgin, IL Houston GARYSBURG, NC BAINBRIDGE, GA PECANS PEANUTS SELMA, TX GUSTINE, CA ALMOMONDS Wallnut Pecans U.S Nut Growing Areas JBSS Facilities
Slide 62: The Global Source for Nuts
he Global Source for Nuts THANK YOU
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