The Middleby Corporation · NASDAQ:MIDD
The Middleby — Baird Industrial Conference 2007
24 slides from The Middleby's conference presentation, Nov 6, 2007
Slide 1: Baird Industrial Conference
Baird Industrial Conference November 6, 2007
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made in this presentation or otherwise attributable to the company regarding the company's business which are not historical fact are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Slide 3: Middleby Corporation Executive Summary
Middleby Corporation Executive Summary The Middleby Corporation is the worldwide leader in the manufacture and distribution of a broad line of Cooking, Warming and Preparation Equipment for the commercial restaurant industry and food processors Headquartered in United States (Chicago, Illinois)
Slide 4: Key Company Highlights
Key Company Highlights Market Leader of Foodservice Equipment – #1 or #2 market position in U.S. across most product lines Established Well-Respected Brands – Premium brands recognized for innovative technology, efficiency and quality Premier Customer Base – Aligned with leading U.S. and inter
Slide 5: Record Sales and Earnings Growth
Record Sales and Earnings Growth ($ in millions) Middleby Financial Performance 450 403.2 420.5 400 350 316.8 300 271.1 235.1 242.2 250 Revenues 200 EBITDA 150 103.6 86 91.9 100 52.2 64.6 33.5 38.8 50 11.5 0 2001 2002 2003 2004 2005 2006 2007 LTM Sales Growth through Product Innovation and Acquisiti
Slide 6: Strong Relationships with Premier Customers
Strong Relationships with Premier Customers Blue-chip, customer base Long standing relationships Limited customer concentration Large installed base Serve all food segments
Slide 7: Revenue Breakdown
Revenue Breakdown 15% Food Processing Commercial Foodservice 85% Commercial Foodservice and Food Processing Expanding Business Segments
Slide 8: Commercial Foodservice Market Leader
Commercial Foodservice Market Leader Middleby has leading brands and technology in the the foodservice equipment industry U.S. Hot-side Foodservice Equipment Market by Product (1) The commercial cooking equipment market is in excess of $3.0 Billion. Microwave Baking & Combi Ovens Other Ovens Ovens
Slide 9: Market Leading Brands – Foodservice
Market Leading Brands – Foodservice Brand Product U.S. Market Position Representative Customers Papa John’s, Pizza Hut, Conveyor Ovens #1 Domino’s, Costco, Red Lobster, Olive Garden Fryers #2 KFC, Dunkin’ Donuts, Rethermalizers #1 McDonald’s, Taco Bell Convection Ovens #1 KFC, Burger K
Slide 10: Market Leading Brands - Foodservice (con't)
Market Leading Brands - Foodservice (con’t) Brand Product U.S. Market Position Representative Customers Warming Cabinets #1 McDonalds, Cook and Hold #2 Dunkin Donuts Banquet Carts #2 Infrared Ovens #1 Telepizza Hearth Bake Conveyors #1 Cooking Suites #1 Cheesecake Factory, Ranges
Slide 11: Middleby Brand Products
Middleby Brand Products We offer a comprehensive line of innovative foodservice equipment Conveyor Oven Combi Oven Convection Oven Fryer Automated oven with energy Combination steam and No-turn bake capabilities Highest efficiency burner management system convection in one cavity Range Infra
Slide 12: Food Processing Industry
Food Processing Industry Middleby has leading brands and technology in the food processing equipment industry U.S. Hot-side Foodservice Equipment Market by Product (1) The food processing equipment market is in excess of $1.5 Billion. Grinding Breading/ 6% Battering Packaging 11% Highly Fragment
Slide 13: Market Leading Brands – Food Processing
Market Leading Brands – Food Processing Brand Product U.S. Market Position Representative Customers Batch Ovens #1 Continuous Ovens #1 Sara Lee, Smithfield Belt Ovens #2 Food Packaging #2 Kraft, Hormel Equipment Conveyorized Breaders #2 Battering Equipment #1 Tyson, Pilgrims Pride,
Slide 14: Middleby Growth Drivers
Middleby Growth Drivers Favorable Industry Dynamics New Product Pipeline Acquisitions International Expansion
Slide 15: Favorable Industry Dynamics
Favorable Industry Dynamics Many factors supporting growing demand for foodservice equipment Dual income families continue to eat out Favorable Demographics Percentage of household income spent on food prepared outside the home is increasing Baby boomer generation approaching retirement New Re
Slide 16: New Products Driving Growth
New Products Driving Growth We are committed to meeting changing customer needs Customer Demand Recent Innovations No-turn bake convection oven Speed High speed conveyer with 25% reduction in cooking time Hydrovection ovens New energy management system technology Energy/Cost Savings High e
Slide 17: New Product Pipeline - Foodservice
New Product Pipeline - Foodservice 2007 Introductions 2008 Introductions Mini WOW! Oven High H Oven Rethermalizer Hydrovection Oven Solstice Supreme Fryer Rocket Fryer Redesigned Combi-Ovens Ventless Hood 500 Series Range Pressure Fryer Tanduri Oven Visual Cooking Combi-Ovens
Slide 18: New Product Pipeline – Food Processing
New Product Pipeline – Food Processing 2007 Introductions 2008 Introductions Cyclone Belt Oven Conveyor Fryer Flash Pasteurization Co-Extrusion Mid-Size J-Con Oven Forming Equipment Wireless Controls Intellijet Water Cutter New Products Typically Carry Profit Margins >5% Higher than
Slide 19: Acquisition Strategy
Acquistion Strategy Acquire Leading Brands and Technologies • Established Market Positions • Differentiated Products • Higher Profit Margin Increase Operating Efficiency • Eliminated Unprofitable SKU’s • Focus on Core Products • Streamline Production and Administrative Processes Realize Synerg
Slide 20: Middleby Worldwide Executive Summary
Middleby Worldwide Executive Summary Middleby Worldwide is the sales, service and distribution arm supporting the Middleby Brands internationally in over 100 countries. Middleby Worldwide has company owned operations in key markets around the world. Middleby Owned Sales and Service Offices in Ke
Slide 21: Global Reach
Global Reach Mississauga, Bilbao, Spain Manchester, UK Delhi, India Seoul, South Korea Ontario, Canada # of Employees: 11 # of Employees: 20 # of Employees: 5 # of Employees: 11 # of Employees: 2 Shanghai, China # of Employees: 14 Taipei, Taiwan # of Employees: 7 Manila, Philippines Mexico City, Mex
Slide 22: 2007 2nd Quarter Year to Date Review
2007 2nd Quarter Year to Date Review Results Commentary (Amounts in millions, except per share data) YTD YTD Net Sales increased 8.6% year to date Q2 2007 Q2 2006 − 3.3% organic growth Net Sales $ 218.9 $ 201.6 − 3% Impact of Work Stoppage ($5.8m) % Growth 8.6% 26.8% − 5.4% acquisition growth Gros
Slide 23: Financial Themes
Financial Themes Top Line Growth – Positioned in faster growing segments – Continued new product innovation – Acquisition growth Focus on Operating Margins – Standardization of product platforms – Strategic supply chain initiatives – Integration of recent acquisitions Strong Balance Sheet – Co
Slide 24: Key Investment Highlights
Key Investment Highlights Market Leader of Foodservice Equipment Established Well-Respected Brands Premier Customer Base Positioned for Growth Unique Global Footprint Strong Profitability and Commitment to Operational Excellence Successful Track Record of Growth through Acquisitions