Slide 1: Supplemental Information 4th Quarter Fiscal 2017
Supplemental Information 4th Quarter Fiscal 2017 November 13, 2017
Slide 2: Tom Hayes and Dennis Leatherby
Tom Hayes Dennis Leatherby President & Executive Vice President & Chief Executive Officer Chief Financial Officer 2 Tyson Foods, Inc. | November 13, 2017
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain information contained in this presentation may constitute forward-looking statements, such as statements relating to expected performance and including, but not limited to, statements appearing in the “Outlook” section and statements relating to adjusted EPS guidan
Slide 4: Dennis Leatherby and Stewart Glendinning
Dennis Leatherby Stewart Glendinning 4 Tyson Foods, Inc. | November 13, 2017
Slide 5: Q417 & FY17 Highlights
Q417 & FY17 Highlights FY17 Highlights ($ in millions, except per share data) Q417 FY17 • Record Adjusted Operating Sales $10,145 $38,260 Adjusted Operating Income* $902 $3,263 Margin* at 8.5% Adjusted Operating Margin* 8.9% 8.5% • Record Adjusted Operating Adjusted EPS* $1.43 $5.31 Income* up 15% t
Slide 6: Core and Total Tyson Leading in Dollar Performance
Core 9 and Total Tyson Leading in Dollar Performance Dollar sales % change among top 10 branded food companies >$5B 3.2% 2.8% 2.6% 1.9% 0.8% Total -0.1% Core 9 Total F&B -0.8% -1.2% -2.5% -3.9% -4.4% -5.3% Source: IRI Total U.S. Multi-Outlet (x Costco), Dollar Sales, 52 weeks ending 10/01/2017 Inclu
Slide 7: Core and Total Tyson Leading in Volume Performance
Core 9 and Total Tyson Leading in Volume Performance Volume sales % change among top 10 branded food companies >$5B Core 9 Total Source: IRI Total U.S. Multi-Outlet (x Costco), Volume Sales, 52 weeks ending 10/1/2017 Includes Total Edible + Pet Food, Tyson = Tyson + Nature Raised Farms + Advance Pie
Slide 8: Operating Segments - Beef
Operating Segments - Beef Q417 Sales volume up 3.3% on FY 18 Outlook: Adjusted Operating Income* ($ in millions) 6.0% higher average price Adjusted Operating Margin* > 5% Q417 FY17 FY17 Sales volume up 1.8% on Dollars ROS% Dollars ROS% 0.4% higher average price $313 8.2% $885 6.0% * Represents a non
Slide 9: Operating Segments - Pork
Operating Segments - Pork Q417 Sales volume declined FY 18 Outlook: Adjusted Operating Income* ($ in millions) 1.2% on 11.7% higher average Adjusted Operating Margin* price > 9% Q417 FY17 Dollars ROS% Dollars ROS% FY17 Sales volume up 0.6% on 6.1% higher average price $124 9.1% $648 12.4% * Represen
Slide 10: Operating Segments - Chicken
Operating Segments - Chicken Q417 Sales volume up 4.1% on FY 18 Outlook: Adjusted Operating Income* ($ in millions) 3.7% higher average price Adjusted Operating Margin* ~ 11% with around 3% volume growth Q417 FY17 FY17 Sales volume up 1.2% on Dollars ROS% Dollars ROS% 3.1% higher average price $322
Slide 11: Innovation Pipeline
Innovation Pipeline The Innovation Pipeline for the Tyson® brand is promising, with significantly more concepts showing potential for success compared to Nielsen benchmark High Risk 86% Ready Now Risky (incl. 36% Outstanding), Ready Now compared to 30% for benchmark Outstanding Tyson Nielsen Benchma
Slide 12: Operating Segments – Prepared Foods
Operating Segments – Prepared Foods Q417 Sales volume up 9.5% on FY 18 Outlook: Adjusted Operating Income* ($ in millions) 12.5% higher average price Adjusted Operating Margin* 11-12% with > 10% volume Q417 FY17 FY17 Sales volume up 3.2% on growth** Dollars ROS% Dollars ROS% 3.6% higher average pric
Slide 13: Foodservice Broadline Volume Performance
Foodservice Broadline Volume Performance Volume % Change vs. PY (52 wks ending August 2017) 4.5% 2.8% 1.7% +0.3 pt = Total Total Tracked Tyson in Broadline Categories Tracked Categories Tyson Share Growth NPD SupplyTrack® data, 12 Months Ending August 2017 Excludes Large Chain and Operator Label dat
Slide 14: Foodservice Volume Performance
Foodservice Volume Performance Within the Broadline Distribution Channel, Tyson Focus 5 volume growth is outpacing the channel and competitors 10.4% 8.7% 5.1% 3.0% 2.6% 2.3% 2.2% 1.7% -31.0% Distributor Total Brand Broadline Focus 5 NPD SupplyTrack® data, Month Ending August 2017 Excludes Large Chai
Slide 15: Tyson Added Miles of Retail Shelf Space
Tyson Added 46 Miles of Retail Shelf Space +241.6 +4.3 Avg. Linear Feet per Store Total Linear Feet (000s) 42.9 3,119.5 19.2 12.6 1.1 3.3 -0.6 54.9 30.0 5.1 49.4 5.0 15.5 2,877.9 3.2 -0.1 Spring JD JD Sweet Vans Bacon HF HF HF BP BP Gallo Aidells Frozen State Spring ’16 Refrig Frozen Goods Smoked Lu
Slide 16: Retail Innovation Vitality – Best in Class
Retail Innovation Vitality – Best in Class Vitality Index = % of sales dollars from Retail Packaged Brands products created in the previous three years 14% 13% 12% Launches from: FY17 FY16 FY15 FY14 FY13 FY12 FY15 FY16 FY17* * FY17 represents 11 periods of actuals and one period of forecast 16 16 Ty
Slide 17: C-Store News Best New Product Awards
C-Store News Best New Product Awards 17 17 Tyson Foods, Inc. | November 13, 2017
Slide 18: FY17 Highlights
FY17 ($ in millions, except per share Highlights data) FY17 • Record Adjusted Operating Sales $38,260 Adjusted Operating Income* $3,263 Margin* at 8.5% Adjusted Operating Margin* 8.5% • Record Adjusted Operating Adjusted EPS* $5.31 Income* up 15% to $3.3 billion ($ in millions) FY17 • Record Adjuste
Slide 19: Targets Established – Net Savings
Targets Established – Net Savings • FY18 ~ $200 million • FY19 ~ $400 million • FY20 ~ $600 million 19 Tyson Foods, Inc. | November 13, 2017
Slide 20: FY18 Outlook
FY18 Outlook * Sales of CapEx Adjusted EPS ~$1.4 billion Adjusted*** EPS ~$41 billion** $5.70-5.85 Topline growth of ~7% as we •$5.70-5.85 ~7-10% ** growth over FY17 grow volume and have full •~7-10% growth over FY17 year benefit of AdvancePierre Beef Segment Pork Segment adjusted operating adjusted
Slide 21: Grow. Deliver. Sustain.
Grow. Deliver. Sustain. — — — Our businesses Ongoing financial Our company through fitness through and our differentiated continuous world for future capabilities improvement generations
Slide 22: Appendix: Non-GAAP Reconciliations
Appendix 4th Quarter Fiscal 2017 Non-GAAP Reconciliations
Slide 23: EPS Reconciliations
EPS Reconciliations In millions, except per share data (Unaudited) Fourth Quarter 12 Months Ended Pretax Impact EPS Impact Pretax Impact EPS Impact 2017 2016 2017 2016 2017 2016 2017 2016 Reported net income per share attributable to Tyson $ 1.07 $ 1.03 $ 4.79 $ 4.53 Add: AdvancePierre purchase acco
Slide 24: Segment Operating Income and Operating Margin Reconciliations
Segment Operating Income and Operating Margin Reconciliations Adjusted Segment Operating Income (Loss) In millions (for the fourth quarter ended September 30, 2017) (Unaudited) Prepared Intersegment Beef Pork Chicken Foods Other Sales Total Sales $ 3,808 $ 1,362 $ 3,035 $ 2,263 $ 92 $ (415) $ 10,145