John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Investor Presentation (August 2006)
42 slides from John B. Sanfilippo & Son's investor presentation, Aug 10, 2006
Slide 1: John B. Sanfilippo & Son, Inc. August 10, 2006
John B. Sanfilippo & Son, Inc. August 10, 2006
Slide 2: Safe Harbor
Safe Harbor 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 in which we oper
Slide 3: Agenda
Agenda Business Overview Category Update Marketing & New Products Financial Overview Facility Consolidation Project
Slide 4: Business Overview
_ Business Overview
Slide 5: Company Highlights
Company Highlights Nuts continue to be one of the faster growing categories in snacks in dollar terms Key advantages Pure play, vertically integrated, processing powerhouse Broad product portfolio Distribution channel diversity Innovative product and packaging 84 years of operational expertise
Slide 6: What's Unique About JBSS
What's Unique About JBSS Prolongs freshness and shelf life Reduces costs for basic processing Enhances stability and quality of supply Meets a wide array of customer demands Cold Storage Shelling Direct Sourcing Processing #1 nut processor and #2 full line nut brand Only vertically integrated major
Slide 7: Vertical Integration
Orchards Cold Storage Shelling, Sizing, Blanching, Slice/Dice Roasting Packaging Cleaning & Inspection Other Companies Begin "Manufacturing" Ingredients Ready for Production Shipping Vertical Integration Product Packed Per Product Mix & Customer Requirements Starts at the Grower Ends Delivered to cu
Slide 8: Strategically Located Operations
Strategically Located Operations Positioned to maximize efficiencies Positioned to maximize efficiencies Elgin, IL Elk Grove Village, IL
Slide 9: One-Stop Nut Supplier
One-Stop Nut Supplier Most complete product portfolio of nuts in the U.S. Comprehensive variety of value- added products Wide assortment of other snack products Most versatile styles and sizes, customized to customer specifications Benefits Appeals to major customers Reduces product concentration ri
Slide 10: Product/Packaging Diversification
Tins PET Cello Film Bowls Large Format Product/Packaging Diversification Unsurpassed processing and packaging expertise
Slide 11: Business Diversification
Business Diversification Source: Net Sales through 3/30/06 Industrial Foodservice Contract Mfg. Consumer Products Export East 23 10.5 7 50.7 7.8 Multi-channel presence & expertise offers: Added-value: a key competitive advantage v. others Leading-edge technology, innovation & knowledge transfer acro
Slide 12: Distribution Channels
Distribution Channels Industrial Food Service Consumer Export Contract Packaging Products: Customer Types: Ingredients Fisher brand Other Ingredients Fisher brand Other Private label Fisher brand Other Private label Fisher brand Bulk Various packaging styles Bakeries Dairies Food processors Confecti
Slide 13: In-Store Category Reach
In-Store Category Reach Check Out Cereal Health Bars Candy Cookies Frozen Entrees Cakes, Muffins Fresh Cheese, Salads Ice Cream Ingredients Salad & Baking Kits Contract Packaging Frozen Cakes, Desserts Food Service Fresh Bread Bulk Foods Single Serve Snacks Peanut Butter Snack Nuts Salty Snacks Baki
Slide 14: Consumer Distribution Channel
Consumer Distribution Channel Largest private label manufacturer, servicing more than 55 programs These relationships allow us to demonstrate our high product quality Private label programs open incremental sales opportunities for Fisher products Private Label Fisher Other 0.7 0.26 0.04
Slide 15: Industrial Distribution Channel
Industrial Distribution Channel Focused on the 20 largest food manufacturers in the U.S. One-stop supplier status critical to these relationships Consolidation of major food manufacturers has provided opportunities Technical support for applications in development Net Sales by Segment in Industrial
Slide 16: Full Capability Range
Full Capability Range Vertical integration & expertise provides a complete range of capabilities: Shelling & Processing Shelling Pecans / Walnuts / Peanuts Processing Macadamias / Almonds Peanut Butter Roasting Oil & Dry Roasting Custom packaging Value-added processing capability From the Grower...
Slide 17: Category Review
. c . Category Review
Slide 18: Consumer Trends
Consumer Trends Growing use of nuts in salads and cooking as part of "good for you" trends in eating FDA claims on the health benefits of nuts. Total food and beverage items with health and wellness labeling have increased 2.7% in dollars vs. YA and 6.7% vs. four years agoa Mintel forecasts the U.S.
Slide 19: Total Snack Nuts/Seeds/Mixes
Dollars YA 1605412558 CY 1650259742 Units YA 614507358 CY 606195572 Total Snack Nuts/Seeds/Mixes Food, Drug, Mass +2.8% - -1.4% Source: ACNielsen FDM 52 Weeks Ending 7/01/06 vs. YA Snack Nuts/Seed/Mix category growth has slowed over the last couple months: Units: Low crop on seeds Macadamia demand d
Slide 20: Snack Nut Dollar Sales by Brand
Snack Nut Dollar Sales by Brand FDM Private Label A/O Brand Planters Frito-Lay Emerald Fisher Blue Diamond Evon's Mauna Loa Nutcracker Sunshine Country 477029967 397564721 566445576 36608137 47979502 27952536 69894947 150871 21417487 5212805 3214 Planters P/L A/O Frito-Lay Blue Diamond Emerald Fishe
Slide 21: Snack Nut Unit Sales by Nut Type
Snack Nut Unit Sales by Nut Type FDM Peanut Seeds Cashew Mixes A/O Mixed Nut Almond Pistachio Macadamia In-Shell - 3-D Pie 182016822 81732853 93108732 37921676 5348962 78508307 50815965 27996857 5258208 43487191 Peanut Cashew Seeds Mixed Nut Almond In-Shell Pistachio Mixes Macadamia A/O YA 191561031
Slide 22: Total Baking Nuts
Total Baking Nuts FDM Units YA 151574362 CY 150855154 Dollars YA 494357241 CY 543751802 +10.0% - -0.5% Baking nut category growth has slowed over the last couple months: Units: Macadamia demand decrease Higher prices Dollars: Price Increases Higher Commodity Costs Source: ACNielsen FDM 52 Weeks Endi
Slide 23: Baking Nut Dollar Sales by Brand
A/O Diamond P/L Planters Fisher Azar Sunshine Country Evon's YA 185350870 159540556 95744078 37679048 7728927 7521945 791823 0 CY 200064877 173197835 113599683 39480822 12127114 4707833 565077 8550 Baking Nut Dollar Sales by Brand - FDM +7.9% +8.6% - -37.4% +56.9% +18.6% +4.8% A/O Diamond P/L Plante
Slide 24: Baking Nut Unit Sales by Nut Type
Baking Nut Unit Sales by Nut Type - FDM Walnuts Pecans Almond Pine Nuts A/O Peanuts Filbert/Hazlenuts Brazil Nuts Macadamias YA 55861982 42835613 38400415 4986186 4040008 2081771 1878676 780923 708792 CY 56856663 41679390 37813378 5482379 3731384 2044961 1892168 775508 579330 +1.8% Walnuts Pecans Al
Slide 25: FY 2006 Highlights
Groundbreaking of New 1 Million sq ft. corporate headquarters that includes state of the art machinery and processing The addition of the following Sports Teams: Modesto Nuts Chicago Fire The addition of the Manhattan Theatre Group Market Specific FSI's East Coast Launch of the New Fisher Fusions 60
Slide 26: Awards
3 time Category Colonel Award Winner Awards Superior Taste Award -American Academy of Taste Retail and Food Service
Slide 27: Marketing & New Product Development
Marketing & New Product Development
Slide 28: Corporate Marketing Support
Corporate Marketing Support Centralize Marketing Department to Support all Channels of Distribution at JBSS Effectively Leverage Initiatives Across all Channels of Dist.: Sales Opportunities Marketing Programs - Industry, Trade & Consumer New Product Development Corporate / Brand Development Communi
Slide 29: National Promotional / Cross Promotional Activity
National Promotional / Cross Promotional Activity National Cause Marketing Public Relations Radio National Print Regional Campaigns National Sports Marketing Program Brand Support Trade Regional / Local National Customer Grass Roots Ronald McDonald's House Hurricane Katrina Greater Chicago Food Depo
Slide 30: Creating a Continuous Pipeline of Relevant Product
Creating a Continuous Pipeline of Relevant Product SURPs Small -7 SURPs Large -3 Naturals -4 Almonds -3 Pecans -3 Holiday -10 New Product Development
Slide 31: Fisher Fusions
Fisher Fusions Asian Spice Crunchy nuts & crispy rice crackers with the 'kung pow' of chili and sweet-hot wasabi peas Cheddar Crunch Every sweet & salty, crunchy & cheesy, corny & nutty bites turns into a celebration Country Honey For honey lovers - a sweet & salty blend with a hint of cinnamon spic
Slide 32: Marketing Support
Demos Violator Hand Out Button Shelf Talker Dangler Marketing Support Category Driving Recommendations In Store Initiatives: Drives Consumers to Aisle In Aisle Initiatives: Motivates Purchase Decision Flip Book -explains consumer benefits of nuts and usages Recipe Card Program - provides continual n
Slide 33: Financial Overview
oD S Financial Overview
Slide 34: Key Income Statement Items As A % of Net Sales
Key Income Statement Items As A % of Net Sales Last 4 Quarters Ended March 2001 2002 2003 2004 2005 2006 GROSS MARGIN 0.18 0.144 0.144 0.194 0.141 0.092 S,G&A 0.119 0.089 0.08 0.112 0.094 0.091 NET INCOME 0.022 0.022 0.033 0.046 0.026 -0.006 2001 - 2003 not restated for freight reclassification
Slide 35: Net Sales Vs. Investment
Net Sales Vs. Investment Last 4 Quarters Ended March 2001 2002 2003 2004 2005 2006 NET SALES 342435 339391 401430 495608 562143 592820 AVG DEBT + EQUITY 194021 191895 192333 207785 260007 324269 AVG NET PP&E 70366 69462 68023 68304 70475 106790 AVG INVENTORY 118611 117212 124625 143671 198391 225393
Slide 36: Operating Measures
Operating Measures Last 4 Quarters Ended March 2001 2002 2003 2004 2005 2006 EBITDA 31874 29366 36786 53674 37535 10721 NET INCOME 7610 7535 13065 22700 14490 -3634 OPERATING CASH FLOW 5907 27619 4520 18760 -62862 37333
Slide 37: Commodities
Commodities Source: JBSS market survey of suppliers and brokers. Gross margin %'s are most recently reported. Darkened gross margin bars indicate the beginning of a crop year
Slide 38: Estimated Distribution of 2005 World Tree Nut Production
Estimated Distribution of 2005 World Tree Nut Production (Shelled Kernel Basis) Source: International Nut Council 2006
Slide 39: Facility Consolidation Project
Facility Consolidation Project
Slide 40: Introducing the New Corporate Headquarters and Manufacturing/Distribution Facility
Introducing the New John B. Sanfilippo & Son, Inc. Corporate Headquarters and Manufacturing/Distribution Facility
Slide 41: Facility Consolidation Benefits and Projected Timeline
Introducing the New John B. Sanfilippo & Son, Inc. Corporate Headquarters and Manufacturing / Distribution Facility Consolidation Benefits Strategic Processing/ Manufacturing/ Technology Research & Development Allergen Controls Distribution Quality Projected Timeline Centralized headquarters 950,000
Slide 42: John B. Sanfilippo & Son, Inc. August 10, 2006
John B. Sanfilippo & Son, Inc. Nasdaq: JBSS August 10, 2006
Sanfilippo John B & SON — Investor Presentation (August 2006) on 6ix