The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Investor Day (October 2018)
35 slides from The J.m. Smucker's investor day presentation, Oct 9, 2018
Slide 1: The J.M. Smucker Company 2018 Investor Day
The J.M. Smucker Company 2018 INVESTOR DAY Tuesday, October 9, 2018
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Slide 3: Agenda
Agenda CORPORATE OVERVIEW Mark Smucker PRESIDENT & CHIEF EXECUTIVE OFFICER Joe Stanziano U.S. RETAIL COFFEE SENIOR VICE PRESIDENT & GENERAL MANAGER, COFFEE Tina Floyd U.S. RETAIL CONSUMER FOODS SENIOR VICE PRESIDENT & GENERAL MANAGER, CONSUMER FOODS Q&A SESSION COFFEE BREAK 3
Slide 4: Agenda
Agenda U.S. RETAIL PET FOODS Dave Lemmon PRESIDENT, PET FOOD & PET SNACKS Geoff Tanner MARKETING OVERVIEW SENIOR VICE PRESIDENT, GROWTH & CONSUMER ENGAGEMENT FINANCIAL OVERVIEW Mark Belgya VICE CHAIR & CHIEF FINANCIAL OFFICER Q&A SESSION CLOSING & LUNCH Richard Smucker EXECUTIVE CHAIRMAN 4
Slide 5: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows, that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from any future results, perf
Slide 6: Corporate Overview
Corporate Overview Mark Smucker President and Chief Executive Officer 6
Slide 7: Our Vision Guides Our Strategy
Our Vision Guides Our Strategy Engage, delight, and inspire consumers through trusted food and beverage brands that bring joy throughout their lives. A portfolio that combines #1 and leading brands with emerging, on-trend brands to drive balanced growth. 7
Slide 8: Strategic Focus Areas
Strategic Focus Areas LEAD IN BUILD BRANDS BE THE BEST CONSUMERS EVERYWHERE CATEGORIES LOVE 8
Slide 9: Achievement of Long-Term Growth
Achievement of Long-Term Growth Compounded annual growth rate from FY13 to FY18 NET SALES OPERATING INCOME (Adjusted) +5% +6% ADJUSTED EPS DIVIDEND +8% +8% 9
Slide 10: Strategic Roadmap
Strategic Roadmap TOP-LINE GROWTH COST SAVINGS EPS GROWTH INNOVATION INVESTMENTS COST SAVINGS ACQUISITIONS 10
Slide 11: Innovation: Jif Power Ups & 1850
Innovation: Jif Power Ups & 1850 ® ™ ™ On pace to be among the top-selling new products of 2018 11
Slide 12: Investments
Investments NEW SMUCKER’S® DATA-DRIVEN MARKETING E-COMMERCE UNCRUSTABLES® PLANT ANALYTICS 12
Slide 13: Incremental Cost Savings
Incremental Cost Savings STRENGTHENING FY19 FY20 COST DISCIPLINE $80M $70M TO PROVIDE FUEL FOR GROWTH ON TRACK 13
Slide 14: Acquisitions & Divestitures
Acquisitions & Divestitures Aligning our portfolio for growth FY14 NET SALES FY19 PROFORMA NET SALES CANNED MILK BAKING PRODUCTS PET FOOD & COFFEE OTHER PET SNACKS COFFEE FROZEN HANDHELD PEANUT BUTTER SHORTENING OTHER & OILS PEANUT FRUIT BUTTER SPREADS FRUIT FROZEN SPREADS SHORTENING HANDHELD & OILS
Slide 15: The Consumer is in Control
The Consumer is in Control SOCIAL MEDIA VOICE CONVENIENCE-DRIVEN SHOPPING 15
Slide 16: Strategic Roadmap
Strategic Roadmap TOP-LINE GROWTH COST SAVINGS EPS GROWTH INNOVATION INVESTMENTS COST SAVINGS ACQUISITIONS 16
Slide 17: Strategic Focus Areas
Strategic Focus Areas LEAD IN THE BEST BUILD BRANDS BE EVERYWHERE CATEGORIES CONSUMERS LOVE 17
Slide 18: Strategic Focus: Lead in the Best Categories
Strategic Focus: Lead in the Best Categories FY19 PROFORMA NET SALES PORTFOLIO RESHAPED TOWARD GROWTH PET FOOD & COFFEE SIZE OF CATEGORIES PET SNACKS WHERE WE NOW PARTICIPATE +25% PEANUT BUTTER VERSUS 5 YEARS AGO OTHER FRUIT FROZEN SPREADS SHORTENING HANDHELD & OILS 18
Slide 19: Consumers Trust Our Brands
Consumers Trust Our Brands 90% of ALL U.S. HOUSEHOLDS have at least ONE OF OUR PRODUCTS 19
Slide 20: Strong Retailer Relationships
Strong Retailer Relationships 7th LARGEST shelf-stable food and beverage manufacturer in $259 BILLION U.S. center of store Source: Smucker Internal Multi-Outlet Share Report 52-weeks ended September 9, 2018 20
Slide 21: High-Growth Brands Fueling Success
High-Growth Brands Fueling Success HIGH-GROWTH, ON-TREND BRANDS APPROXIMATELY $2B FY19E NET SALES EXPECTED 5-YR CAGR +HSD 21
Slide 22: Balanced Portfolio of Brands
Balanced Portfolio of Brands CORE, LEADING BRANDS #1 IN FRUIT SPREADS #1 IN NUT BUTTERS Maintaining the strength of iconic brands with NEW PRODUCTS and MARKETING to appeal to #1 IN COFFEE #1 IN PET SNACKS YOUNGER GENERATIONS Source: Smucker Internal Multi-Outlet Share Report 52 weeks ended September
Slide 23: Strategic Focus: Build Brands Consumers Love
Strategic Focus: Build Brands Consumers Love CONSUMER INNOVATION MARKETING ENGAGEMENT 23
Slide 24: Millennials Are a Powerful Force
Millenials Are a Powerful Force MILLENNIAL INFLUENCE TO THE POWER OF SIX Single Millennial 1 Married Millennial 1 2 Married Millennials & Children 1 2 3 4 Millennial’s Parents 1 2 3 4 5 6 24
Slide 25: Next Generation of Consumers
Next Generation of Consumers GEN Z VALUES BRANDS THAT STAND FOR SOMETHING 25
Slide 26: Building New Marketing Capabilities
Building New Marketing Capabilities NEW CAPABILITIES CONSUMER FOCUS SKILLS ORGANIZATION PARTNERS SPEED 26
Slide 27: Strategic Focus: Be Everywhere
Strategic Focus: Be Everywhere ON DEMAND ON-THE-GO 27
Slide 28: Strategic Focus: Be Everywhere
Strategic Focus: Be Everywhere SUPERMARKETS MASS RETAILERS CLUB & DOLLAR E-COMMERCE MOBILE SUBSCRIPTION SMART HOMES WE ARE ACCUSTOMED TO ADAPTING TO HOW CONSUMERS SHOP 28
Slide 29: Consumer-Centric Marketing
Consumer-Centric Marketing MARKETING FUNCTIONS BUILT AROUND THE CONSUMER 29
Slide 30: Accelerating E-Commerce
Accelerating E-Commerce PEOPLE CAPABILITIES INVESTMENT Redefined our approach to MORE THAN DOUBLE E-COMMERCE NET SALES BY FY20 30
Slide 31: Momentum in E-Commerce
Momentum in E-Commerce FY18 E-COMMERCE SALES TOTAL SJM PET FOOD COFFEE +71% +64% +154% 31
Slide 32: Our Purpose
Our Purpose Helping to bring families together for memorable meals and moments. 32
Slide 33: Committed to Sustainable Coffee Farming
Committed to Sustainable Coffee Farming CAPACITY CLIMATE CHANGE COFFEE FARM BUILDING ADAPTATION RUST MANAGEMENT FARMER GENDER FINANCING TRAINING EQUALITY 33
Slide 34: Lebron James Family Foundation
Lebron James Family Foundation I PROMISE SCHOOL 1200 VOLUNTEER HOURS DONATED BY SMUCKER EMPLOYEES 34
Slide 35: Strategic Focus Areas
Strategic Focus Areas LEAD IN THE BEST BUILD BRANDS BE EVERYWHERE CATEGORIES CONSUMERS LOVE 35
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