The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — RBC Capital Markets Consumer & Retail Investor Day 2012
18 slides from The J.m. Smucker's conference presentation, Dec 6, 2012
Slide 1: RBC Capital Markets' Consumer & Retail Investor Day Presentation
RBC Capital Markets’ Consumer & Retail Investor Day Presentation December 6, 2012 1 Forward Looking Statement This presentation contains forward-looking statements, such as projected operating results, earnings, and cash flows, that are subject to known and unknown risks and uncertainties that could
Slide 2: Strength of Smucker
Strength of Smucker • Clear and proven strategy • Portfolio of leading brands • Culture and continuity of management • History of long-term growth • Strong cash generation • Ability to deliver shareholder value 3 Our Vision We will own and market food brands that hold the #1 market position in their
Slide 3: North America Focus
North America Focus … while maintaining a global perspective 5 China Investment • Acquired minority interest in Seamild ─ Leader in rapidly growing oats category ─ Focused on brand building ─ Strong company culture • Experienced team in China 6
Slide 4: Long-Term Growth Objectives
Long-Term Growth Objectives Net Sales 6% Organic Growth Acquisitions New Products, Market Share, Category Growth Enabling, Bolt-On, Transformational 3-4% 2-3% EPS +8% Shareholder Return 11% 7 Long-Term Growth ($ in millions, except per share data) Net Sales Earnings Per Share (Non-GAAP) 10-Year 10-Y
Slide 5: Cash Deployment
Cash Deployment Share Return to Repurchase Shareholders (FY08-FY12) $1.86 billion Dividends Cash Acquisitions Debt Maturities ($ in millions) FY13 $ 50 Growth (FY08-FY12) FY14 $ 50 FY15 $100 CapEx $1.85 billion FY16 $ 99 FY17 $ 38 9 Delivering Shareholder Value ($ in millions) $600 $500 $400 $300 $2
Slide 6: Quarterly Dividend Increases
Quarterly Dividend Increases Dividend Declared Per Share $0.52 $0.48 $0.44 $0.40 $0.35 Over 60% increase $0.32 since January 2009 Jan ‘09 Apr ‘09 Apr ‘10 Jan ‘11 Jul ‘11 Jul ‘12 11 Share Repurchase Activity Repurchased 11.8 million common shares since the end of FY10 Over $850 million returned to sh
Slide 7: Business Segments
Business Segments Segment President Brands U.S. Retail Mark Smucker Coffee U.S. Retail Paul Smucker Consumer Foods Wagstaff International, Foodservice, Steve Oakland & Natural Foods 13 Key Areas of Focus Brand Building Pricing Leadership Supply Chain Acquisitions Sustainability 14
Slide 8: FY12 Acquisitions
FY12 Acquisitions Sara Lee Rowland Beverage China- Coffee Foodservice Seamild Acquisition Acquisition Investment May 2011 Jan 2012 March 2012 15 Smucker Sales by Category Other Flour & Baking Ingredients 10% Canned Milk 5% 5% Baking Mixes Coffee largest shelf- & Frostings 6% 48% stable food Shorteni
Slide 9: Product Innovation
Product Innovation Approximately 100 new products expected in FY13 17 At-Home Coffee Category Total Coffee Category - $7.7 billion Premium Mainstream $2.1B Roast & 27% Ground 41% $3.2B 20% K-Cup 3% 9% $1.5B Other Instant $0.2B $0.7B Source: Smucker Internal Multi-Outlet Share Report 52 weeks ended N
Slide 10: Smucker U.S. Retail Coffee
Smucker U.S. Retail Coffee FY10 Net Sales FY12 Net Sales $1.7 billion $2.3 billion Mainstream Mainstream Roast & Ground Roast & Ground 68% 67% Premium Premium K-Cup Instant 21% Instant 17% 9% Other 8% Other 1% 7% 2% 19 Our K-Cup Portfolio FY12 net sales of approximately $180 million 20
Slide 11: K-Cup Growth
K-Cup Growth Our K-Cup sales expected to grow 70% in FY13 21 Coffee Innovation Premium Segment Instant Segment 22
Slide 12: Pillsbury Innovation
Pillsbury Innovation 23 Jif Innovation Source: Smucker Internal Multi-Outlet Share Report 52 weeks ended November 4, 2012 24
Slide 13: Brand Equity Investments
Brand Equity Investments 25 Branded Digital Presence 26
Slide 14: Multi-Brand Promotions
Multi-Brand Promotions National Customized Free Standing Retailer Insert Marketing Digital Blogger Media Engagement 27 Sharpening Price Points Enhanced Merchandising Expanded Opening Price Support Point Offerings Commodity Transparency Closing Gaps Coffee Milk May 2012 August 2012 – 6% – 10% 28
Slide 15: Top Raw Materials
Top 10 Raw Materials 1. Green coffee 2. Peanuts 3. Oils 4. Plastic packaging Represent 5. Wheat nearly 2/3 of 6. Fruit / Vegetables 7. Sugar total COGS 8. Milk 9. Glass 10. Corrugate cartons 29 Capital Investments Orrville, Ohio Manufacturing Facility $150 million investment New Orleans Coffee Facil
Slide 16: Restructuring Savings
Restructuring Savings Plant Closings Coffee Fruit Spreads Pickles Sherman, TX Memphis, TN Dunnville, Ontario (Extended close date) Kansas City, MO Ste. Marie, Quebec Delhi, Ontario (Close date on target) Expected Cumulative Savings ($ in millions) $70 $50+ $40 $30 FY12 FY13 FY14 FY15 31 Corporate Re
Slide 17: Total Shareholder Return
Total Shareholder Return CAGR S&P 500 20 years 9% 8% 15 years 12% 5% 10 years 12% 6% 5 years 18% 1% 1 year 19% 16% Based on $100 investment and dividends reinvested. Information through November 30, 2012. 33 Additional Information The J. M. Smucker Company is the owner of all trademarks and logos re
Slide 18: Regulation G Compliance
Regulation G Compliance Included in this presentation are certain non-GAAP measures, such as income from continuing operations per diluted share, excluding restructuring, merger and integration, and certain pension settlement costs (“special project costs”). These non-GAAP measures are not intended
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