John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Shareholder Meeting (November 2007)
60 slides from John B. Sanfilippo & Son's shareholder meeting presentation, Nov 5, 2007
Slide 1: Annual Stockholders Meeting November 5, 2007
Annual Stockholders Meeting November 5, 2007
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the statements in this presentation constitute "forward-looking statements" about John B. Sanfilippo & Son, Inc. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets i
Slide 3: Vision
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer.
Slide 4: Elgin, IL Update
Elgin, IL Update Offices moved February 2007 Grand Opening Celebration held in September 2007 All production lines to be moved by January 31, 2008
Slide 5: Strategic Initiatives
Strategic Initiatives Discontinued Almond Handling Operation Improved Financial Closing Process Executed Profit Enhancement Initiatives Price Increases SKU Optimization Focused on Sales Growth Research & Development New Customer Programs Fisher Rebranding
Slide 6: Fiscal 2007 Net Sales Decreased 6.6%
Fiscal 2007 Net Sales Decreased 6.6 % ($ Millions) 2003 2004 2005 2006 2007 419.7 520.8 581.7 579.6 541.4
Slide 7: % Gross Sales by Product Type
% Gross Sales by Product Type Peanuts Pecans Cashews & Mixed Nuts Walnuts Almonds Other Product Type 0.2 0.223 0.211 0.137 0.133 0.096
Slide 8: Business Diversification % of Net Sales (Fiscal Year 2007)
Industrial Foodservice Contract Mfg. Consumer Products Export East 20.7 12 8.3 51.2 8.4 Business Diversification % of Net Sales (Fiscal Year 2007) Total Sales $541,378,000
Slide 9: Sales Review 2007
Sales Review 2007
Slide 10: Business Diversification: Contract Packaging
Business Diversification % of Net Sales (Fiscal Year 2007) Contract Pkg. 8% Contract Packaging $45,003,000
Slide 11: Business Diversification: Foodservice
Business Diversification % of Net Sales (Fiscal Year 2007) Foodservice 12% Contract Pkg. 8% Foodservice $61,763,000
Slide 12: Business Diversification: Industrial
Business Diversification % of Net Sales (Fiscal Year 2007) Industrial 21% Foodservice 12% Contract Pkg. 8% Industrial $111,998,000
Slide 13: Business Diversification: Export
Business Diversification % of Net Sales (Fiscal Year 2007) Industrial 21% Foodservice 12% Contract Pkg. 8% Export 8% Export $45,204,000
Slide 14: Business Diversification: Consumer
Business Diversification % of Net Sales (Fiscal Year 2007) Industrial 21% Foodservice 12% Contract Pkg. 8% Export 8% Consumer Products 51% Consumer $277,410,000
Slide 15: Fiscal Year Financial Review
Fiscal Year Financial Review
Slide 16: Net Sales Dollars by Quarter
Net Sales Dollars by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2007 133793 177654 107009 122922 541378 2006 138658 191077 119004 130825 579564 ($ Thousands)
Slide 17: Gross Profit Dollars by Quarter
Gross Profit Dollars by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2007 5723 19138 5966 10304 41131 2006 13280 16139 4498 3200 37117 ($Thousands)
Slide 18: Gross Profit Percent by Quarter
Gross Profit Percent by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2007 0.043 0.108 0.056 0.084 0.076 2006 0.096 0.084 0.038 0.024 0.064
Slide 19: Quarterly Gross Margins Compared to Tree Nut Market Prices
Quarterly Gross Margins Compared to Tree Nut Market Prices Source: JBSS industry survey of tree nut markets
Slide 20: Selling Expenses Dollars by Quarter
Selling Expenses Dollars by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2007 10818 11253 8131 8801 39003 2006 9886 11135 9005 9921 39947 ($Thousands)
Slide 21: Selling Expenses Percent by Quarter
Selling Expenses Percent by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2007 0.081 0.063 0.076 0.072 0.072 2006 0.071 0.058 0.076 0.076 0.069
Slide 22: Administrative Expenses Dollars by Quarter
Administrative Expenses Dollars by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2007 3833 4128 3956 4537 16454 2006 3476 3742 3858 4076 15152 ($Thousands)
Slide 23: Administrative Expenses Percent by Quarter
Administrative Expenses Percent by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2007 0.029 0.023 0.037 0.037 0.03 2006 0.025 0.02 0.032 0.031 0.026
Slide 24: Interest Expense Dollars by Quarter
Interest Expense Dollars by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2007 1670 1784 2861 3032 9347 2006 1515 1149 1849 2003 6516 $(Thousands)
Slide 25: Net Income Dollars by Quarter
Net Income Dollars by Quarter $(Thousands) QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2007 -4821 1236 -6182 -3909 -13676 2006 -1128 -64 -5913 -9616 -16721
Slide 26: Historical Financial Information 1991 Through 2007
Historical Financial Information 1991 Through 2007
Slide 27: Net Sales Dollars Fiscal Years 1991-2007
Net Sales Dollars Fiscal Years 1991-2007 (Restated) 1991 1992 1993 1994 1995 1996 1997 (6 MO) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 165 193 204 209 277 293 132 312 313 327 342 353 420 521 582 580 541 $ (Millions)
Slide 28: Basic EPS Fiscal Years 1991-2007
Basic EPS Fiscal Years 1991-2007 1991 1992 1993 1994 1995 1996 1997 (6 MO) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0.83 0.95 0.74 0 0.63 -0.33 0.05 0.56 0.2 0.74 0.83 0.84 1.63 2.35 1.37 -1.58 -1.29
Slide 29: Total Debt Dollars Fiscal Years 1991-2007
Total Debt Dollars Fiscal Years 1991-2007 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 50 76 71 107 107 98 93 115 100 99 89 70 70 19 144 138 148 ($ Millions)
Slide 30: Interest Bearing Debt Dollars 1992-2007
Interest Bearing Debt Dollars 1992-2007 (in thousands) YEAR $ TOTAL DEBT $ LONG TERM DEBT $ SHORT TERM DEBT 1992 76,050 35,861 40,189 1993 70,926 47,730 23,196 1994 106,716 56,419 50,297 1995 106,849 78,267 28,582 1996 98,310 76,016 22,294 1997 92,833 73,799 19,034 1998 115,145 63,182 51,963 1999 99
Slide 31: Stockholders Equity Dollars Fiscal Years 1991-2007
Stockholders Equity Dollars Fiscal Years 1991-2007 $ Millions 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 25 32 69 68 76 73 73 78 80 87 94 102 119 181 196 180 163
Slide 32: Category & Marketing Review 2007
Category & Marketing Review 2007
Slide 33: Consumer Insight & Trend: Health and Wellness
60% of consumers are looking for 'Healthier for You' snacks v. traditional salty snacks. Driven by: The importance of overall well being Increase in obesity Increase in diseases such as diabetes and heart Stronger shifts in product 'desires' Size Portion Control Type Trans-Fat Free Low-Fat Low-Sodiu
Slide 34: Consumer Insight: Back to 'Me'
Lives have changed a lot in the past two years.. Consumers have a desire to... ..eat healthier foods ..have fun, and/or take a vacation ..pay attention to the important or finer things in life ..spend more time with family and friends To become overall a better, healthier person, aspiring for a life
Slide 35: Consumer Insight & Trend: Product Mix
Flavor Spicy Innovation is key Nutritional benefits The changing consumer Growth explosion in the 'Ethnic Consumer' Education Product claims Omega-3 Heart Healthy Snack Convenience Quality Consumer Insight & Trend Product Mix Source: Mintel Salty Snacks: August, 2007 Simmons NCS Fall 2006 Harris Int
Slide 36: Industry Trends
Industry Trends Competitive Pricing Pressures Branded Product-type mix shift Almonds Customer Expectations Innovation 50% increase in new item launches v. YAGO Looking for the 'sweet spot' Nuts enjoying increased 'ingredient' usage Increased permission as adders to other snack and wellness categorie
Slide 37: The Industry Nuts Category Review
The Industry Snack & Baking & Produce Nuts Category Review *FDM - Food/Drug/Mass / 52 Weeks Ending Data source: ACNielsen (sans Wal*Mart)
Slide 38: Category Overview - Snack (Nuts/Seeds/Mixes)
Total Nut Category Year Ago 606267 Current Year 615762 Category Overview -Snack (Nuts/Seeds/Mixes) Total Snack Category Year Ago 5292802 Current Year 5224879 Source: Nielsen FDM 52 Weeks Ending 6/30/07 vs. Year Ago Source: Mintel Salty Snacks: August, 2007 *Removed Diamond from snack ranking - -1.3%
Slide 39: Category Overview - Snack Dollars
Dollars Year Ago 1650463366 Current Year 1708026146 +3.5% Source: ACNielsen FDM 52 Weeks Ending 6/30/07 vs. YA Category Overview -Snack (Nuts/Seeds/Mixes) Healthy increase in dollars. Snack Nuts represent 17.4% of the total snack categories dollar sales and 12.3% of units. Total Nuts Potato Chips Re
Slide 40: Category Overview - Baking Nuts Units
Total Category Units YA 150857889 CY 153398055 Total Fisher Brand Units YA 4395590 CY 5348453 +21.7% +1.7% Source: ACNielsen FDM 52 Weeks Ending 6/30/07 vs. YA Category Overview -Baking Nuts Units Total Baking Category is solid The Fisher brand is growing at a much higher rate v. total category Sour
Slide 41: Category Overview - Baking Nuts Growth Drivers
Walnuts Pecans Almond Pine Nuts A/O Peanuts Filbert/Hazlenuts Brazil Nuts Macadamias YA 56856846 41681076 37814057 5482563 3731389 2044957 1892172 775505 579324 CY 58187998 41425617 38762064 5799058 3682057 2118038 1991492 824271 607469 +2.3% Walnuts Pecans Almond A/O Peanuts Pine Nuts Filbert/Hazel
Slide 42: Category Overview - Produce Nuts
Units YA 144168505 CY 150726415 Dollars YA 533172219 CY 571925264 +7.3% +4.5% 52 Weeks Ending 8/25/07 vs. YA Source: Nielsen Category Overview -Produce Nuts Significant opportunity in Produce Nuts -a growing category. Sunshine Country brand a solid player Growth driven by Walnuts, Almonds and Pistac
Slide 43: Marketing/Support Initiatives Defining The Brands
Marketing/Support Initiatives Defining The Brands
Slide 44: John B. Sanfilippo Value Proposition
John B. Sanfilippo Value Proposition Most complete product portfolio of nuts in the U.S.. Strong national brands. Multi-channel distribution. Comprehensive variety of value-added products. Wide assortment of other snack products. Most versatile styles and sizes, customized to customer specifications
Slide 45: Fisher Recognized as the Leader
4 time Category Colonel Award Winner Superior Taste Award - -American Academy of Taste Fisher -Retail and Food Service Recognized as the Leader
Slide 46: Quick to market product development strategies
Quick to market product development strategies kept us ahead of the competition New Product Offerings Drove Sales 15+ 15+
Slide 47: New Product Offerings Drove Sales
New Product Offerings Drove Sales 130+ 62
Slide 48: Awareness Driving Sponsorships
Awareness Driving Sponsorships
Slide 49: National Consumer Advertising
National Consumer Advertising
Slide 50: National Consumer PR
National Consumer PR Over 41+ Million consumer and Trade Impressions
Slide 51: Strong Promotional Support
Strong Promotional Support
Slide 52: Partnerships
Partnerships CWeightWatchers U upromise’ ‘SAVE FOR COLLEGE m|t[c MANHATTAN THEATRE CLUB <= ey i GREAT GAME. GREAT TASTE. 1 Ji or crear ste IERE'S
Slide 53: The Global Source for Nuts
The Global Source for Nuts
Slide 54: The Brand
The Brand BRAND AWARENESS BRAND OFFERING CONSUMER ATTITUDE
Slide 55: Vision and Mission
VISION | get MISSION
Slide 56: Brand Pillars
Brand Pillars BRAND ESSENCE
Slide 57: The Look | The Message
The Look | The Message My Snack | My Way My Recipe | My Way My Time | My Snack
Slide 58: We Look Forward to a Successful Fiscal 2008
We Look Forward to a Successful Fiscal 2008
Slide 59: Mission
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 shareholders. We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potential of our
Slide 60: Core Values
Core Values Integrity People Investment Customer Driven Innovation Execution Continuous Improvement Safety
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