John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Sidoti & Company, LLC Emerging Growth Institutional Investor Forum (January 2015)
53 slides from John B. Sanfilippo & Son's conference presentation, Jan 9, 2015
Slide 1: Sidoti & Company Emerging Growth Institutional Investor Forum
Sidoti & Company, LLC Emerging Growth Institutional Investor Forum January 12, 2015 NASDAQ: JBSS Exhibit 99.1
Slide 2: Mission and Core Values
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 stockholders . We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potential of ou
Slide 3: Strong team and facilities by location
“The success of any company is contingent upon having a strong team to manage and grow the business. We have that here at JBSS.” Gustine, CA 130 Employees Garysburg, NC 38 Employees Bainbridge, GA 102 Employees Selma, TX 167 Employees Elgin, IL 857 Employees
Slide 4: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type We Are Experts In Every Nut Type • Full portfolio of nuts • Broad variety of value- added products • Wide assortment of other snack products • Versatile and customized formulas • Benefits Appeals to major customers Adapts to changing consumer needs Reduces product co
Slide 5: We Are Experts In Procurement
Pecans Peanuts Almonds Walnuts We Are Experts In Procurement We Are Experts In Procurement
Slide 6: Business Channel Diversification
Commercial Ingredients 25% Contract Pkg. 13% Consumer 58% Export 4% $193 $98 $454 Business Channel Diversification (Millions of $) * Approximately 31% of the Consumer channel sales were Fisher brand sales $34
Slide 7: FY 2014 Consumer Channel
4.1 % Consumer 58% vs. FY ‘13 FY 2014 Consumer Channel
Slide 8: FY 2014 Commercial Ingredients Channel
Commercial Ingredients 25% 8.4% vs. FY ‘13 FY 2014 Commercial Ingredients Channel
Slide 9: FY 2014 Export Channel
Export 4% 0% Vs. FY ‘13 FY 2014 Export Channel
Slide 10: FY 2014 Contract Packaging Channel
14.0% Contract Packaging 13% Vs. FY ‘13 FY 2014 Contract Packaging Channel
Slide 11: FY 2014 Financial Milestones
FY 2014 Financial Milestones
Slide 12: Diluted EPS Improvement of 49%
Diluted EPS Improvement of 49% Net Sales increased by 11% to a record $778.6 million Time to Celebrate Successful Results over the last three years 680,000,000 700,000,000 720,000,000 740,000,000 760,000,000 780,000,000 800,000,000 FY12 FY13 FY14 Net Sales FY 12-FY 14 $778,622,000 0.5 1.5 2.5 FY12 F
Slide 13: Creating Shareholder Value
Creating Shareholder Value Outperformed the Russell 2000 Index by over 87%! Stock Price $23.59 1/7/2014 Stock Price $42.75 1/7/2015
Slide 14: JBSS Stockholders' Equity
JBSS Stockholders’ Equity FYs 1991-
Slide 15: JBSS Net Sales history
bLOz S107 zz emphasized Commodity Sales, Lower Prices Loz oLoz 6002 300 2007 9007 Item Rationalization, De- so0z 0z 9007 zoor voor 000 6661 Low Carb Diet Run Up 8661 foi 9] zegt 65h soon voor £661 zon 1eab $900 $800 $700 $600 $500 $400 $300 $200 (s ©
Slide 16: JBSS Total Outstanding Debt
JBSS Total Outstanding Debt FYs 1991-
Slide 17: Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – Note: FY 1997 reflects stub year
Slide 18: Reconciliation of Net Income (Loss) to EBITDA
Reconciliation of Net Income (Loss) to EBITDA (In $,000's) FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 NET INCOME (LOSS) 22,630 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 INTEREST EXPENSE 3,434 3,998 6,516 9,347 10,502 7,646 5,653 6,444
Slide 19: EBITDA
EBITDA* EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure
Slide 20: 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 -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
Slide 21: Peanut and Tree Nut Spot Market Prices vs. Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN % Source: Spot market prices from survey of JBSS vendors and brokers
Slide 22: Highlights: Q1 2015 vs. Q1 2014
Highlights: Q1 2015 vs. Q1 2014 (in 000’s except EPS) $ Change % Change Net Sales $ 28,340 16.0% Sales Volume (lbs. sold ) 4,055 7.1% Gross Profit $ 1,315 4.5% Net Income ($860) (12.7%) Earnings Per Share ($0.08) (13.1%) Operating Cash Flows $ 20,455 276.3% Total Debt ($11,385) (16.4%) Adversely imp
Slide 23: Transformed Consumer Products Company
John B. Sanfilippo & Son, Inc.: Transformed Consumer Products Company … Reproduced with permission of Snack Food & Wholesale Bakery magazine
Slide 24: Retail Prices Higher Over the Last 5 Years
$4.53 $4.70 $5.31 $5.62 $5.68 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Price Per Pound Price Per Pound Category Retail Prices Higher Over the Last 5 Years
Slide 25: Retail Prices Up Across All Nut Types
0% 10% 20% 30% 40% 50% 60% Price Per Pound – Percent Change Over Last 5 Years Change vs. FY 2010 Retail Prices Up Across All Nut Types over the Last 5 Years +56% +46% +20% +18% +15% +29% +39% +26% +22%
Slide 26: Nut Category has had strong Sales Growth
Nut Category has had strong Sales Growth
Slide 27: Building Our Future
BUILDING OUR FUTURE Bulld Fisher and Orchard Valley Harvest into leading nut brands. Utilize consumer insights to develop products and integrated marketing programs that build brand equity, meet consumer needs, and grow the category for our retail partners. Focus on consumers demanding quality nuts
Slide 28: FY 2014 Accomplishments: Fisher and Orchard Valley Harvest
• Fisher Recipe Nuts market share leadership excluding club size items • Fisher Snack Nuts market share growth in high franchise Midwest • Orchard Valley Harvest expanded distribution and increased velocity resulting in double-digit revenue growth • Award-winning marketing programs FY 2014 Accomplis
Slide 29: FY 2014 Accomplishments: China and private brands
• Established a Foreign Invested Commercial Enterprise (FICE) in China • Expanded Fisher Snacks in Asia and the Middle East • Continued to leverage key retail partnerships for a record year with private brands FY 2014 Accomplishments
Slide 30: FY 2014 Accomplishments: Contract manufacturing and ingredients
• Received Contract Manufacturing supplier quality award • Optimized Food Service and Industrial Ingredient customer and product portfolios • Expanded Continuous Improvement efforts throughout our organization FY 2014 Accomplishments
Slide 31: FY 2014 Sales & Marketing Update
FY 2014 Sales & Marketing Update
Slide 32: Grow Brands: Recipe Nuts, Snack Nuts
Grow Brands Recipe Nuts Snack Nuts
Slide 33: Fisher is a Growing Brand
Fiscal 2014 Actual vs. Prior Year 3 Year CAGR Fisher is a Growing Brand Sales Pounds +7% Net Sales +6% Sales Pounds +1% Net Sales +8%
Slide 34: Total Fisher Brand has Grown Dollar Share
Total Fisher Brand has Grown Dollar Share over the last 3 Years
Slide 35: Strong and Sustained Growth on Fisher Recipe Nuts
Strong and Sustained Growth on Fisher Recipe Nuts 37 Consecutive Quad–Weeks of Increased IRI measured Consumption! Source : IRI: Total Recipe Nut Category – Multi Outlet Geography – Latest 37 Quad Weeks Ending 12-28-14
Slide 36: Differentiating versus competition with No Preservatives
Differentiating versus competition with “No Preservatives” Message Print
Slide 37: Building Fisher Brand Equity with Food Network Sponsorship
Recipes Food Network Vignettes Digital and Mobile Recipe Contest Food Network Magazine Social Media and PR Social Media and PR Building Fisher Brand Equity with Food Network Sponsorship
Slide 38: Expanding Social Media Presence
Expanding Social Media Presence with “Fisher Fresh Thinkers”
Slide 39: Winning the year is about Pounds-on-the-floor
Winning the year is about Pounds-on-the-floor Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography –Year Ending 6/29/14 *Note: ACV refers to “All Commodity Volume” as measured by IRI
Slide 40: Slide 40
Slide 41: Fisher Snack Nut Strategy Focused on Midwest High Franchise Markets
Fisher snack nut Strategy Focused on Midwest High Franchise Markets
Slide 42: Fisher Snack Nuts Growing Pound Share
Fisher snack nuts Growing Pound Share in High Franchise Markets Source: IRI: Ttl Snack Nut Category – Fisher High Franchise Geography –Years Ending 6/29/14
Slide 43: Driving Results on Core Dry Roast Peanut Business
Source: Blue Chip Worldwide SPARQ concept research, December 2013 Driving Results on Core Dry Roast Peanut Business • “Oven Roasted, Never Fried” communication drives purchase interest • Elevates taste and healthy snack perceptions • Supported through FSIs, In-Store and via Digital
Slide 44: Growing Fisher Almond Line Velocity
Velocity (Pound Sales per Distribution Point) Source: IRI Growing Fisher Almond line • Converted Almond line to 5.5 oz Stand Up Re-sealable bags • Consumer Value Proposition: Better per package price; Re-closeable to seal-in freshness • Result: Increased movement per point of distribution January Fe
Slide 45: Fast adapting to key retailers' display rules
We are fast adapting to key retailers’ rules on displays… winning again!
Slide 46: Pure and Simple Goodness
Pure and Simple Goodness
Slide 47: Slide 47
Slide 48: Orchard Valley Harvest Delivers
Orchard Valley Harvest Delivers
Slide 49: Orchard Valley Harvest is a Growing Brand
Orchard Valley Harvest is a Growing Brand Fiscal 2014 Actual vs. Prior Year Sales Pounds + 9% + 9% Net Sales +16 +16 % %
Slide 50: Mini's and Multi-Packs Tap into On the Go Snacking
Mini’s and Multi-Packs Tap into “On the Go” Snacking Grab ‘n Go Mini’s Multi-Packs 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 US • 38% of consumers snack several t
Slide 51: FY15 OVH Marketing Support
FY15 OVH Marketing Support Ibotta Website PR In-Store Merchandising New Packaging Bloggers
Slide 52: Driving Increased Distribution
Driving Increased Distribution FY13 Driver: FY14 Driver: Source: IRI: Ttl Produce Nut Category – Total US Food Geography–Year Ending 6/29/14 *Note: % ACV refers to % “All Commodity Volume” as measured by IRI
Slide 53: Thank You
THANK YOU