The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Smucker J M — Merger or Acquisition (October 2008)
14 slides from The J.m. Smucker's merger presentation, Oct 9, 2008
Slide 1: The J. M. Smucker Company Investor Presentation
Exhibit 99.1 The J. M. Smucker Company Investor Presentation October 2008
Slide 2: Forward Looking Statement
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 cause actual results to differ materially from any future results, performance or ac
Slide 3: Pro Forma Sales by Category
Pro Forma Sales by Category Spreads Coffee 21% 42% 25% 12% Baking All Other Estimated After Transaction (1) (1) Based on FY2008 Smucker adjusted for approximately $1.8B of FY2008 Folgers net sales.
Slide 4: Compelling Transaction
Compelling Transaction • Acquisition of the #1 Folgers brand Expanding • Addition of rights to sell Dunkin’ Donuts® in retail Leading Brands • Smucker’s first +$1B brand • Builds upon established center-of-store strategy Strengthened • Broadens and diversifies product offering Product Portfolio • Pr
Slide 5: Net Sales and EBITDA
Net Sales and EBITDA Net Sales EBITDA (Excluding Merger and Integration Costs) $6.0 $1,000 30.0% $4.7B $4.9B $869 $5.0 $820 25.0% $750 $4.0 20.0% 17.3% 17.5% $2.5B $3.0 $500 15.0% $371 $2.0 10.0% $250 14.7% $1.0 5.0% $0.0 $0 0.0% FY2008 FY2009E FY2010E FY2008 FY2009E FY2010E Pro forma (2) Pro forma
Slide 6: Cash Flow From Operations
Cash Flow From Operations ($ in millions) FY2008 FY2009E (1) FY2010E Pro forma Pro forma Cash Flow From $ 192 $ 505 $ 545 Operations Capital Expenditures $ (76) $(115) $(120) Free Cash Flow $ 116 $ 390 $ 425 Free Cash Flow Yield (2) 4% 7% 7% (1) Assumes Folgers transaction had closed on May 1, 2008
Slide 7: Synergy Opportunities
Synergy Opportunities ($ in millions) Synergy Estimate COGS $ 15 SG&A $ 65 Total Synergies $ 80 Estimated Synergies as % of Projected 4% 2009 Folgers Net Sales
Slide 8: Debt Profile Supports Continued Growth
Debt Profile Supports Continued Growth FY2009E FY2009E (1) Standalone Smucker Combined Smucker Total Debt $790mm $1,540mm Debt / EBITDA 2.1x 1.9x Interest Coverage 8.1x 8.6x (2) • Stronger balance sheet post-closing – Ample liquidity • Modest leverage and strong cash flow will facilitate pursuit of
Slide 9: Dividends and Share Repurchase
Dividends and Share Repurchase ($ in millions) $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 (1) FY2004 FY2005 FY2006 FY2007 FY2008 FY2009E Dividends Share Repurchase (1) Estimated dividends assumes current quarterly dividend rate, payment of special dividend, and payment of dividend on shares issu
Slide 10: Ability to Implement
Ability to Implement Single IS Platform Acquisition experience Continuity of process and people Improved Productivity Sales / Employee (‘000’s) Net Income / Employee (‘000’s) $100 $1,200 $80 $900 $777 $60 $52 $600 $552 $35 $40 $283 $300 $20 $13 $0 $0 FY2002 FY2005 FY2008 FY2002 FY2005 FY2008
Slide 11: Regulation G Compliance
Regulation G Compliance You are also reminded that during this presentation, certain non-GAAP financial measures, such as EBITDA and Free Cash Flow may be discussed. These measures should not be considered an alternative to net income, or any other measure of financial performance or liquidity prese
Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in Millions) FY2008 Income before income taxes $ 255 Add (deduct): Interest income (13) Interest expense 42 Amortization 4 Share-based compensation expense 12 Depreciation 58 Merger and integration costs 8 Cost of products sold - restructuring 2 Other
Slide 13: Financial Forecasts
Financial Forecasts ($ in Millions) FY2009 Forecast Smucker Folgers Net sales $2,829 $1,910 Cost of goods sold 1,970 1,304 Gross profit 859 606 Selling, distribution and administration 551 291 Earnings before interest and taxes 308 315 Depreciation and amortization 79 35 EBITDA $ 387 $ 350 $737 Syne
Slide 14: Additional Information
Additional Information Smucker and Folgers have filed registration statements with the U. S. Securities and Exchange Commission (“SEC”) registering the common shares to be issued to P&G shareholders in connection with the Folgers transaction. Smucker has also filed a proxy statement with the SEC whi