John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Shareholder Meeting (November 2016)
85 slides from John B. Sanfilippo & Son's shareholder meeting presentation, Nov 1, 2016
Slide 1: FY 2016 Annual Stockholder Meeting
FY 2016 annual STOCKHOLDER MEETING November 2, 2016 Exhibit 99.1
Slide 2: Agenda
JBSS Overview and Results - Jeffrey Sanfilippo Chairman & CEO FY 2016 Financial Milestones - Mike Valentine CFO & Group President Brand Marketing Overview - Howard Brandeisky Sr. VP Global Marketing & Customer Solutions JBSS FY 2017 Strategic Plan - Jeffrey Sanfilippo Chairman & CEO Closing Remarks
Slide 3: Forward-Looking Statements
Some of the statements in this presentation and any statements by management 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 mar
Slide 4: Consistent success over past fiscal years
Consistent success over past 5 fiscal years Diluted EPS improvement of 70% from FY 12 to FY 16 Net Sales increased by 7% over FY 15 to a record $952.1 million
Slide 5: JBSS Stock Performance vs Russell 2000 Over Last Two Years
JBSS STOCK PERFORMANCE vs RUSSEL 2000 OVER THE LAST TWO YEARS 5 10/31/14 $37.15 10/31/16 $50.68
Slide 6: Vision and Core Values
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer Core Values Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation
Slide 7: FY 2016 Corporate Results
JOHN B. SANFILIPPO & SON, INC. FY 2016 CORPORATE RESULTS The Global Source For Nuts®
Slide 8: Building Our Future
BUILDING OUR FUTURE CREATE VALUE EXPAND WITH KEY GLOBALLY CUSTOMERS rut brands * ioe * lured ond ack pods, , : ty, Next, innovaon Leverage ps binbgeseae * Goon commana rm amy seca ier Comes Ca snacking, recipe and produce categories. Latin America —, = SS
Slide 9: FY 2016 Accomplishments
Fisher recipe nuts increased pound market share by +2.6 points. Fisher snack nuts pound market share grew +0.6 point in the high franchise Midwest. Strong growth in Produce Nut category. FY 2016 Accomplishments Source : IRI FY Ending 6/26/16 Total US MULO for Recipe Nuts ; Fisher Core (Milwaukee, Mi
Slide 10: FY 2016 Accomplishments
Leveraged our innovation capabilities to launch 30 new items for our key Contract Manufacturing customers. Optimized Food Service and Industrial ingredient customer and product portfolios. Expanded Fisher brand awareness and distribution in the Commercial Ingredients channel. FY 2016 Accomplishments
Slide 11: FY 2016 Accomplishments
Sampling of Fisher snacks in Middle East with positive consumer engagement. China Ecommerce Holiday… Fisher sold $20,000 in one day. Successful sell through of Fisher gift pack for Chinese New Year. FY 2016 Accomplishments 11
Slide 12: Nut Category Review
ae [etait 9 22 JOHN B. SANFILIPPO & SON, INC. NUT CATEGORY REVIEW The Global Source For Nuts®
Slide 13: Steady Increase in Nut Retail Prices Since FY 2011
Steady Increase in Nut Retail Prices Since FY 2011 Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 data ending 6/26/16 + 31% since FY 2011
Slide 14: Retail Prices Up Across Most Major Nut Types
Retail Prices Up Across Most Major Nut Types over the Last 5 Years Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 data ending 6/26/16
Slide 15: Steady Category Dollar Growth
Steady Category $ Growth Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 data ending 6/26/16
Slide 16: Business Channel Overview
JOHN B. SANFILIPPO & SON, INC. The Global Source For Nuts® 16
Slide 17: Business Channel Diversification
$561 Fiscal 2016 Net Sales $952 Million Business Channel Diversification (Millions of $) $31 $223 $137
Slide 18: FY 2016 Consumer Channel
Fiscal 2016 Net Sales $561 Million Consumer 59% vs. FY 15 FY 2016 Consumer Channel 6.1%
Slide 19: FY 2016 Commercial Ingredients Channel
Fiscal 2016 Net Sales $223 Million FY 2016 Commercial Ingredients Channel vs. FY 15
Slide 20: FY 2016 Contract Packaging Channel
FY 2016 Contract Packaging Channel Fiscal 2016 Net Sales $137 Million
Slide 21: FY 2016 Export Channel
FY 2016 Export Channel Fiscal 2016 Net Sales $31 Million
Slide 22: Investments in Food Safety
Investments in food safety 22
Slide 23: Food Safety Modernization Act (FSMA)
Food Safety Modernization Act (FSMA) FSMA signed by President Obama in 2011. FSMA final rules issued 2015. We are compliant to FSMA requirements as of Sept. 2016. Public Health Imperative Foodborne illness is a significant public health burden. About 48 million get sick each year from foodborne illn
Slide 24: What We Have Done to Meet and Exceed Food Safety Compliance
What we have done to meet and exceed food safety compliance at JBSS We increased our competency. Approximately 30 associates are Preventive Control Qualified Individuals and help assure food safety compliance on a daily basis. Food Safety Plans have been developed and implemented for all production
Slide 25: Investments for Food Safety and Quality
Investments for Food Safety and Quality Completed Food Safety Capital Projects Selma, TX – Raw vs. Processed Segregation Gustine, CA – Raw vs. Processed Segregation Bainbridge, GA – Enclosed Cooler Dock & Raw vs. Processed Segregation In Process Food Safety Capital Projects Elgin, IL – EB Dust Colle
Slide 26: What Sets Us Apart on Food Safety
What sets us apart on food safety We strive for best in class! We believe our preventive controls are at industry standard or best in class. Vertical integration and selective processing and supplier partnerships provide optimal consumer quality while assuring product safety. We are nimble! Our tech
Slide 27: FY 2016 Financial Milestones
FY 2016 financial milestones 27
Slide 28: JBSS Stockholders' Equity FYs 1991-2016
JBSS STOCKHOLDERS’ EQUITY FYs 1991- 2016 In millions of $
Slide 29: JBSS Net Sales FYs 1991-2016
JBSS Net Sales FYs 1991- 2016 Increased Pound Volume and Prices De-emphasized Industrial Sales, Lower Prices Low Carb Diet Run Up $952 million In millions of $
Slide 30: JBSS Total Outstanding Debt FYs 1991-2016
JBSS Total Outstanding Debt FYs 1991- 2016 In millions of $
Slide 31: Total Outstanding Debt as % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – 2016
Slide 32: 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 33: Reconciliation of Net Income (Loss) to EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 (in $,000's) NET INCOME (LOSS) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 30,395 INTEREST EXPENSE 9,347 10,502 7,646 5,653 6,444 5,364 4,754 4,354 3,966
Slide 34: EBITDA
EBITDA* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure (in $ thousands)
Slide 35: Peanut and Tree Nut Spot Prices vs. JBSS Rolling Quarter Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN %
Slide 36: Financial Highlights: Q1 2017 vs. Q1 2016
Net Sales ($3,484) (1.5%) Sales Volume (Lbs. Sold) 5,900 9.7% Gross Profit $3,270 9.8% Net Income $2,190 27.4% Earnings Per Share (Diluted) $0.18 25.4% Operating Cash Flows $647 1.6% Total Debt ($30,077) (48.2%) $ Change % Change Financial Highlights: Q1 2017 vs. Q1 2016 (in 000’s except EPS)
Slide 37: FY 2016 Brand Marketing Overview
FY 2016 Brand Marketing Overview 37
Slide 38: Snack Nuts, Grow Brands, Recipe Nuts
Snack Nuts Grow Brands Recipe Nuts
Slide 39: Recipe Nuts
iS f Recipe Nuts Poa The Global Source For Nuts+ 4,
Slide 40: Strong Growth for Fisher Recipe in FY 2016
Strong Growth for Fisher Recipe in FY 16 Total Fisher Recipe Brand Growth FY 16 vs. FY 15 +6% +12% POUND SALES DOLLAR NET SALES Source: JBSS shipment data Recipe Nuts
Slide 41: Fisher Recipe Continues to Grow Market Share
Fisher Recipe continues to Grow Market Share Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2013 - 2016 Data Ending 6/26/16
Slide 42: Steady Growth in Fisher Recipe Nut Distribution
Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 13 Year Ending 6/30/13 to FY 2016 data ending 6/26/16 Steady Growth in Fisher Recipe Nut Distribution
Slide 43: No Preservatives and Non-GMO Messages Drive Growth
No Preservatives and Non-GMO Messages are Key Drivers for Growth
Slide 44: Packaging Graphics Refresh
FROM TO Packaging Graphics Refresh 44
Slide 45: Build Fisher Brand Equity with Food Network Sponsorship
Continue to Build Fisher Brand Equity with Food Network Sponsorship
Slide 46: Integrated Marketing Key to Building Brand Equity
Integrated Marketing Key to Building Brand Equity Food Network Public Relations National Print In-Store Programs Social Media Original PR photo content created and photographed by the Fisher Fresh Thinkers Influencer Network 46
Slide 47: Fisher Launched New Recipe Video Content
Fisher Launched New Recipe Video Content Show Video of Apple and Almond Hand Pies 47
Slide 48: Fisher Fresh Thinkers Blogger Network
“Fisher Fresh Thinkers” blogger network Original photo content created and photographed by the Fisher Fresh Thinkers Influencer Network
Slide 49: Snack Nuts
iS ‘ Snack Nuts pau The Global Source ForNuts+ 44
Slide 50: Strong Growth on Fisher Snack in FY 2016
Strong Growth on Fisher Snack in FY 16 Total Fisher Snack Brand Growth FY 16 vs. FY 15 +5% +10% POUND SALES DOLLAR NET SALES Source: JBSS shipment data Snack Nuts
Slide 51: Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets
Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets Snack Nuts
Slide 52: Growing Pound Share in High Franchise Markets
We Are Growing our Pound Share in High Franchise Markets Source: IRI: Total Snack Nut Category – Core Franchise (Minneapolis, Milwaukee, Chicago and St. Louis) Multi Outlet Geography –Periods: FY 13 to FY 16 data ending 6/26/16.
Slide 53: Fisher Snack Share Driven by Distribution and Velocity Growth
Source: IRI: Total Nut Category – Fisher Core (St. Louis, Milwaukee, Chicago, Minneapolis MULO) Time Periods: to FY 12 Year Ending 7/1/12 to FY 2016 data ending 6/26/16 Fisher Snack Share Driven by Distribution and Velocity Growth ACV: measure of total retail sales for a given geography as measured
Slide 54: Driving Results on Core Dry Roast Peanut Business
Driving Results on our Core Dry Roast Peanut Business
Slide 55: New Look for Fisher Snack Nuts
New Look for Fisher Snack Nuts
Slide 56: Fisher Nut Exactly Brings Innovation to the Snack Portfolio
Fisher Nut Exactly Brings Innovation to the Snack Portfolio
Slide 57: Orchard Valley
Orchard Valley Pure and Simple Goodness pau The Global Source For Nuts*
Slide 58: Strong Growth of Our Produce Brands
Strong Growth of Our Produce Brands Produce Brand Growth FY 16 vs. FY 15* +41% +55% POUND SALES DOLLAR NET SALES Source: JBSS shipment data * Includes Orchard Valley Harvest and Sunshine Country
Slide 59: Strong Share Growth in Produce Nut Category
Strong Share Growth in Produce Nut Category over the last 2 Fiscal Years Source: IRI: Total Produce Nut Category – Multi Outlet Geography Time Periods: to FY 13 Year Ending 6/30/13 to FY 2016 data ending 6/26/16 Includes Orchard Valley Harvest and Sunshine Country
Slide 60: JBSS Distribution in Produce Nut Category Continues to Increase
Source: IRI: Total Produce Nut Category – Multi Outlet Geography Time Periods: to FY 13 Year Ending 6/30/13 to FY 2016 data ending 6/26/16 JBSS Distribution in the Produce Nut Category Continues to Increase ACV: measure of total retail sales for a given geography as measured by All Commodity Volume
Slide 61: Orchard Valley Harvest Delivers on Three Consumer Trends
Consumers want healthy snacking options (3) (1) Source: Instantly poll of 4,200 people in the US between 9/15 and 9/21 2015 (2) Source: The Hartman Group, Reinventing health & nutrition study 2010/2013 (3) Source: Symphony IRI Group, 2013 Consumers want clean, simple ingredients (1,2) Consumers want
Slide 62: Expanding Portfolio to Address Consumer Demand for On-The-Go
Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartman Group: Reimagining Health and Wellness, 2013 Snacking accounts for over 53% of all eating occasions in the U.S. 38% of consumers snack several times per day Multi-Packs and Grab ‘n Go Mini’s We Continue to Expand our Portfolio to
Slide 63: High Impact Displays Drive Growth at Retail
P | 14 High Impact Displays Drive Growth at Retail 63
Slide 64: Integrated Marketing Support
NO ARTIFICIAL INGREDIENTS Public Relations Print Integrated Marketing Support 64
Slide 65: Expanding to Front of House Foodservice Locations
Expanding to Front of House Foodservice Locations
Slide 66: FY 2017 Strategy Update
ae JOHN B. SANFILIPPO & SON, INC. FY 2017 STRATEGY UPDATE The Global Source For Nuts® ss
Slide 67: Building Our Future
fi 3) JOHN B. SANFILIPPO & SON, INC. BUILDING OUR FUTURE EXPAND CREATE VALUE CONSUMER WITH KEY REACH CUSTOMERS Be the|iuted partner by products and intagrated marketing tno channley launching oflering supply chain and programa that bull brand equky, differentiated products and etogory expertoe, quai
Slide 68: JBSS Brands
ROW JBSS BRANDS Utilize consumer insights to develop products and integrated marketing programs that build brand equity, mer needs, and grow meet the category for our retail partners. p by é Onchend Vb SUNSHINE| ated pau The Global Source For Nuts*6s,
Slide 69: Maintain Fisher Recipe Nuts #1 Share Position Nationally
What: Maintain Fisher Recipe Nuts #1 Share Position Nationally 69
Slide 70: No Preservatives and Non-GMO Messages Key Drivers
How: “No Preservatives” and Non-GMO Messages are Key Drivers for growth
Slide 71: Build Fisher Brand Equity with Food Network Sponsorship
How: Continue to Build Fisher Brand Equity with Food Network Sponsorship & Integrated Marketing
Slide 72: Launch Innovation and Support In-Store Displays
Display support How: Launch innovation & support in-store displays Innovation P | 14 72
Slide 73: Grow Distribution with Existing and Potential Customers
What: Grow distribution with existing and potential customers so consumers can purchase JBSS products 73
Slide 74: Develop and Launch Sales in Alternative Channels
How: Develop and Launch Sales in Alternative Channels 74 Dollar Stores E-Commerce Non-Commercial Foodservice Club S tores
Slide 75: Launch Innovative Products, Sizes and Marketing Programs
How: Launch innovative products, sizes and marketing programs to build consumer demand ? How many locations can we reach? 75 Dollar Stores = 34,000 E-Commerce = Millions Non-Commercial = 40,000 locations Club/Hardware Stores = 4,000
Slide 76: Who: Alternate Channel Customers
Who: Alternate Channel Customers 76
Slide 77: Be Preferred Partner to Build Profitable Volume
Pepsico Award Supplier of the Year What: Be Preferred Partner to Build Profitable Volume of Value-Added Nuts & Snacks 77
Slide 78: Establish Trust and Competitive Advantage
Global Procurement Expertise Quality, Food Safety, Freshness How: Establish Trust and Competitive Advantage 78
Slide 79: Operational Excellence
How: Operational Excellence 8 wastes 79 Inventory Defects Over Processing Over Production Transportation Motion Waiting Intellect
Slide 80: Closing Comments
ae [etait 9 22 JOHN B. SANFILIPPO & SON, INC. CLOSING COMMENTS The Global Source For Nuts® |,
Slide 81: Passion for Nuts - It's All We Do
Future Passion for Nuts- It’s All We Do 1959 The company expands into larger downtown Chicago facilities & begins diversification into other nut types. 1922 Gaspare Sanfilippo and his son John founded a pecan shelling company in Chicago, Illinois as a small storefront operation. 1986-1987 1968 The c
Slide 82: JBSS History
Jbss history 82
Slide 83: JBSS History
Jbss history All Stockholders invited to our 2 story building to see the exhibit. 1703 N. Randall Rd. entrance to office building - look for Fisher logo. 83
Slide 84: JBSS Mission
84 JBSS Mission To be the global leader of quality driven, innovative nut solutions that enhance the customer and consumer experience and achieve consistent, profitable growth for our shareholders. We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potentia
Slide 85: Thank You! We Look Forward to a Successful FY 2017
85 Thank You! We Look Forward to a Successful FY 2017
Sanfilippo John B & SON — Shareholder Meeting (November 2016) on 6ix