The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Investor Day (December 2020)
14 slides from The J.m. Smucker's investor day presentation, Dec 10, 2020
Slide 1: Investor Day December 10, 2020
INVESTOR DAY DECEMBER 10, 2020
Slide 2: Tucker Marshall, Chief Financial Officer
TUCKER MARSHALL Chief Financial Officer 2
Slide 3: Fiscal 2021 Results
Fiscal 2021 Results FY21 FY21 $ IN MILLIONS, EXCEPT PER SHARE DATA Q2 YTD NET SALES $2,034.0 $4,005.8 YoY Change 4% 7% ADJUSTED OPERATING PROFIT $408.8 $813.3 YoY Change 5% 19% ADJUSTED EPS $2.39 $4.76 YoY Change 6% 24% FREE CASH FLOW $326.3 $658.7 YoY Change 103% 113% 3
Slide 4: Fiscal 2021 Financial Outlook
Fiscal 2021 Financial Outlook $ IN MILLIONS, EXCEPT PER SHARE DATA FY21 NET SALES GROWTH YoY 0% - 1% ADJUSTED EPS $8.35 - $8.65 FREE CASH FLOW $975M - $1,025M CAPITAL EXPENDITURES $315M EFFECTIVE TAX RATE 24.0% 4
Slide 5: Financial Priorities
Financial Priorities INCREASED CONSISTENT AND EXECUTION COST CONTROL BALANCED RETURN ON TRANSPARENT AGAINST AND MARGIN CAPITAL INVESTED COMMUNICATION TARGETS ENHANCEMENT DEPLOYMENT CAPITAL CREATE LONG-TERM SHAREHOLDER VALUE 5
Slide 6: Long-Term Operating Income Outlook
Long-Term Operating Income Outlook $50M TOTAL OF ANNUAL COST REDUCTIONS $150M 5% OPERATING IN FY22-FY24 INCOME GROWTH • REDUCE DISCRETIONARY EXPENSES • OPTIMIZE ORGANIZATION • SUPPLY CHAIN EFFICIENCIES 6
Slide 7: Long-Term Growth Targets
Long-Term Growth Targets • VOLUME/MIX 2% • NET REVENUE OPTIMIZATION NET SALES • INNOVATION • CATEGORY GROWTH OPERATING ACCRETIVE MIX 5% • • MARGIN MANAGEMENT INCOME • DESIGN TO VALUE 8% • DEBT/INTEREST REDUCTION ADJUSTED EPS • TAX EFFICIENCIES • SHARE REPURCHASE TOTAL SHAREHOLDER RETURN 10+% • DIVID
Slide 8: Balanced Capital Deployment
Balanced Capital Deployment INVESTING IN RETURNING CASH TO GROWTH SHAREHOLDERS • CAPITAL EXPENDITURES • DIVIDENDS • STRATEGIC PROJECTS • SHARE REPURCHASES • DEBT REPAYMENT 50% 50% 8
Slide 9: Capital Expenditures
Capital Expenditures $369M FY21E $322M $315M 3.8% OF NET SALES $269M FY22E – FY23E $192M 4.5% OF NET SALES LONG-TERM OBJECTIVE 3.5% OF NET SALES FY17 FY18 FY19 FY20 FY21E 9 Note: Based on midpoint of FY21 net sales guidance provided on November 24, 2020
Slide 10: Debt Reduction
Debt Reduction CURRENTLY BELOW 3.9x 3.0x 3.6x TARGET ENHANCES FINANCIAL FLEXIBILITY 2.8x $1.5B DEBT REPAYMENTS SINCE AINSWORTH PET FOOD ACQUISITION Q2 FY19 Q2 FY20 Q2 2021 10 Completed acquisition of Ainsworth Pet Nutrition, LLC on May 14, 2018
Slide 11: Dividend Growth
Dividend Growth 19 CONSECUTIVE YEARS OF $3.60 8% DIVIDEND INCREASES $2.68 10-YEAR CAGR $1.68 40-45% ADJUSTED EPS PAYOUT TARGET 11
Slide 12: Capital Deployment
Capital Deployment FINANCIAL OVERSIGHT FOR STRATEGIC INVESTMENTS $ IMPROVING OUR STRENGTHENING OUR REPORTING AND ANALYTICAL TOOLS RETURN ON INVESTED CAPITAL CONTINUOUS PORTFOLIO EVALUATION 12
Slide 13: Long-Term Shareholder Value Creation
LONG-TERM SHAREHOLDER VALUE CREATION EXECUTE AGAINST STRONG CASH BALANCED CAPITAL FINANCIAL TARGETS GENERATION DEPLOYMENT 13
Slide 14: Thank You
<e THE J.M. SMUCKER Ce. THANK YOU THE J.M.SMUCKERCe. 14
The J.M. Smucker Company — Investor Day (December 2020) on 6ix