John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Investor Presentation (August 2015)
62 slides from John B. Sanfilippo & Son's investor presentation, Aug 27, 2015
Slide 1: Investor Presentation
INVESTOR PRESENTATION August 27, 2015 NASDAQ: JBSS Exhibit 99.1 Exhibit 99.1
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: Our Corporate Mission and Core Values
Mission Core Values 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 stockholders. We will accomplish this through our commitment to a dynamic infrastructure that maximizes the pote
Slide 4: We Are a Leader in the Nut Industry
We Are a Leader In The Nut Industry Net sales of $887m in Fiscal Stock Symbol: JBSS (Nasdaq) One of the largest nut processors in the world State-of-the-art shelling and processing facilities Procurement expertise with buyers averaging over 20+ years experience Product, packaging and branding innova
Slide 5: What Makes Us Different? Integrated Nut Processor
OVH Positioning Direct Sourcing Enhances stability and quality of supply Shelling Reduces costs for basic processing Cold Storage Prolongs freshness and shelf life Processing Meets a wide array of customer demands What Makes Us Different? Closest to The Source Integrated Nut Processor – From Source
Slide 6: Our Facilities Are Strategically Located
Gustine, CA Selma, TX Elgin, IL Bainbridge, GA Garysburg, NC Our Facilities Are Strategically Located Walnuts Pecans Peanuts Pecans Pecans Pecans Pecans Peanuts Pecans Peanuts Pecans Peanuts Pecans Peanuts Peanuts Pecans Peanuts Pecans Peanuts Pecans Peanuts Pecans U.S. Nut Growing Areas JBSS Facili
Slide 7: World Class Facility in Elgin, IL
World Class Facility in Elgin, IL 1 Million Square Feet Comprehensive Allergen Prevention Programs Robust Quality Systems Organic Certification
Slide 8: Our People - Our Commitment - Our Passion
Gustine, CA 131 Employees Garysburg, NC 47 Employees Bainbridge, GA 129 Employees Selma, TX 173 Employees Elgin, IL 951 Employees Our People - Our Commitment - Our Passion
Slide 9: Food Safety and Quality
HACCP Programs SQF Level 2 Certified High ratings from third party audits Allergen Cross-Contamination Prevention Programs validated with ELISA testing Integrated Pest Management Programs Equipment Sanitation Programs Validated with ATP Testing Environmental Monitoring Programs – Zone method Key Qua
Slide 10: Food Safety and Quality
Computerized Data System (Infinity) Comprehensive Recall Program Tested Twice/Annually through Mock Recall exercises Employee Training Programs utilizing Alchemy interactive courseware GMPs, Allergens, HACCP, Food Defense, and prerequisite programs Continuous Review of Operational Methods, Personnel
Slide 11: We Are Experts in Every Nut Type
Fiscal Year 2015 13.7% 11.0% We Are Experts In Every Nut Type % of total FY 15 net sales * other consists of trail and snack mixes which include nut products Full assortment of nut types Full variety of value-added products Wide variety of dried fruit and other snack products Customized, unique prod
Slide 12: Sales Channel Updates
Export Commercial Ingredients Contract Manufacturing Consumer SALES CHANNEL UPDATES
Slide 13: Net Sales in Fiscal 2015: Multiple Distribution Channels
$887 mil Net Sales in Fiscal 2015 Multiple Distribution Channels * Approximately 32% of the Consumer channel sales were Fisher brand sales Net Sales by Channel Consumer $529m Com. Ingred. $207m Contract Mfg. $115m Export $ 36m TTL JBSS $887m Consumer * - 60% Commercial Ingredient - 23% Contract Mfg.
Slide 14: Consumer Channel
$529 mil Net Sales in Fiscal 2015 +16.7%* Consumer Channel * Net sales growth versus FY 2014
Slide 15: Commercial Ingredients Channel
$207 mil Net Sales in Fiscal 2015 +7.3%* Commercial Ingredients Channel * Net sales growth versus FY 2014
Slide 16: Export Channel
$36 mil Net Sales in Fiscal 2015 +6.0%* Export Channel * Net sales growth versus FY 2014
Slide 17: Contract Manufacturing Channel
$115 mil Net Sales in Fiscal 2015 +17.0%* Contract Manufacturing Channel * Net sales growth versus FY 2014
Slide 18: We Reach Consumers
We Reach Consumers… 20+ Points of Distribution In-Store
Slide 19: John B. Sanfilippo & Son, Inc.: Transformed
John B. Sanfilippo & Son, Inc.: Transformed Consumer Products Company … Reproduced with permission of Snack Food & Wholesale Bakery magazine
Slide 20: FY 2015 Financial Milestones
FY 2015 FINANCIAL MILESTONES
Slide 21: Record Net Sales and Diluted EPS
Diluted EPS +11% over FY 14 … Record $2.61 Net Sales +14% over FY 14 ... Record $887.2 mil Time to Celebrate Success Results Over The Past Four Years 887,245 650,000 700,000 750,000 800,000 850,000 900,000 FY 12 FY 13 FY 14 FY 15 Net Sales FY 12 - FY 15 1.58 1.98 2.36 2.61 FY 12 FY 13 FY 14 FY 15 EP
Slide 22: Creating Shareholder Value
Outperformed the Russell 2000 Index by over 5,600 BPS ’ Russell 2000 JBSS Creating Shareholder Value Stock Price $28.43 8/19/2014 Stock Price $48.30 8/19/2015
Slide 23: JBSS Stockholders Equity FY 1991-2015
JBSS Stockholders Equity FY 1991-2015 $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275
Slide 24: JBSS Net Sales FY 1991-2015
Low Carb Diet Run Up SKU Rat., De-emphasized Industrial Sales, Lower Prices Increased Lb. Volume and Prices JBSS Net Sales FY 1991-2015 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000
Slide 25: JBSS Total Outstanding Debt FY 1991-2015
Facility consolidation project JBSS TTL Outstanding Debt FY 1991-2015 Improved Operating Performance $0 $20 $40 $60 $80 $100 $120 $140 $160
Slide 26: JBSS Total Outstanding Debt as % of Net Sales
Note: FY 1997 reflects stub year JBSS TTL Outstanding Debt as % of Net Sales 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0%
Slide 27: EBITDA
EBITDA consists of earnings before interest, taxes, depreciation, amortization and noncontrolling interest. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America ("GAAP"), and does not represent cash flow from operations.
Slide 28: Reconciliation of Net Income (Loss) to EBITDA
Reconciliation of Net Income (Loss) to EBITDA (In $ $000's) FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 NET INCOME (LOSS) 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 INTEREST EXPENSE 3,998 6,516 9,347 10,502 7,646 5,653
Slide 29: EBITDA
EBITDA* -$20,000 -$10,000 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure
Slide 30: EBITDA Margin (% of Net Sales)
EBITDA* Margin (% of Net Sales) -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure
Slide 31: Peanut and Tree Nut Spot Market Prices vs. JBSS Gross Margin
Source: Spot market prices from survey of JBSS vendors and brokers PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING QTR. GROSS MARGIN %
Slide 32: Sanfilippo & Son, Inc.
- SANFILIPPO & SON, INC.
Slide 33: Retail Prices Over the Last Five Years
+29% Retail Prices Over the Last 6 Years $4.53 $5.84 FY 2010 FY 2015 Price Per Pound Source: IRI: Total Nut Category – Multi Outlet Geography
Slide 34: Retail Prices Up Across All Nut Types
Retail Prices Up Across All Nut Types over the Last 6 Years Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/28/15 70.1% 60.0% 38.9% 35.8% 31.7% 30.4% 30.3% 22.2% 14.1% PISTACHIO WALNUT MACADAMIA NUT MIXED NUT CASHEW ALMOND PECAN PINE NUT PEANUT % Increase in Price Per LB Ove
Slide 35: Strong Nut Category Growth
Strong Nut Category Growth 1,003 1,043 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Category LB Sales (M) 4,350 4,578 5,105 5,457 5,704 6,096 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Category $ Sales (M) Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/28/15
Slide 36: Sanfilippo & Son, Inc.
- SANFILIPPO & SON, INC.
Slide 37: Strategy: Grow Brands, Expand Globally, Create Value with Key Customers
EXPAND GLOBALLY Build Fisher and Orchard Valley Harvest into leading -—«* ‘Build JBSS into a leading premium international snack rut brands. ‘hut company. Utlize consumer insights to develop products and * Grow Fisher and other JBSS brands through expanded Integrated marketing programs that build br
Slide 38: FY 2015 Accomplishments
Fisher recipe nuts market share growth, now the #1 brand nationally (4 wks. ending 8/9/15). Fisher snack nuts market share growth in high franchise Midwest. Orchard Valley Harvest expanded distribution and increased velocity resulting in double-digit revenue growth over FY14. FY 2015 Accomplishments
Slide 39: FY 2015 Accomplishments: Fisher Flagship Store on Tmall
Launched Fisher Flagship Store on Tmall (China); Developed a Fisher stand-up bag product line for China. FY 2015 Accomplishments
Slide 40: FY 2015 Accomplishments
Leveraged our innovation capabilities to launch 15 new items for our key contract manufacturing customers. Optimized Food Service and Industrial Ingredient customer and product portfolios. Expanded Fisher brand awareness in the Commercial Ingredients Channel. FY 2015 Accomplishments
Slide 41: FY 2015 Sales and Marketing Update
FY 2015 SALES AND MARKETING UPDATE
Slide 42: Grow Brands
Grow Brands Recipe Nuts Snack Nuts
Slide 43: Fisher Snack & Recipe are Growing
Total Fisher Brand Growth FY15 vs. FY14 +8.0% +14.0% Fisher Snack & Recipe are Growing Recipe Nuts Snack Nuts LB SALES DOLLAR SALES
Slide 44: Fisher Brand Has Grown Dollar Share
Fisher Brand has Grown Dollar Share over the last 3 Years 2.5 2.9 3.1 3.4 FY 2012 FY 2013 FY 2014 FY 2015 Fisher Brand Dollar Share Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/28/15
Slide 45: Strong and Sustained Growth on Fisher Recipe Nuts
Strong and Sustained Growth on Fisher Recipe Nuts Recipe Nuts 44 Consecutive Quad wks of growth 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Fisher LB % Change vs. Last Year Source: IRI: Total Nut Category – Multi Outlet Geography – Quad Week Data Ending 7/12/15
Slide 46: Differentiating Versus Competition with No Preservatives Message
Differentiating Versus Competition with “No Preservatives” Message
Slide 47: Building Fisher Brand Equity with Food Network Sponsorship
Recipes Food Network Vignettes Digital and Mobile Recipe Contest Food Network Magazine Social Media and PR Building Fisher Brand Equity with Food Network Sponsorship
Slide 48: Expanding Social Media Presence with Fisher Fresh Thinkers
Expanding Social Media Presence with “Fisher Fresh Thinkers”
Slide 49: Winning the Year is About Pounds-on-the-Floor
Winning the year is about Pounds-on-the-floor Recipe Nuts Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography –Year Ending 6/28/15 *Note: ACV refers to “All Commodity Volume” as measured by IRI FY 2012 FY 2013 FY 2014 FY 2015 Fisher % ACV Any Display
Slide 50: Growing Pound Share in High Franchise Markets
We Are Growing our Pound Share in High Franchise Markets Snack Nuts Source: IRI: Ttl Snack Nut Category – Fisher High Franchise Geography –Years Ending 6/28/15 2.2 3.1 3.5 4.0 FY 2012 FY 2013 FY 2014 FY 2015 Fisher Snack Nuts Pound Share (High Franchise Markets)
Slide 51: Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets
Our Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets Snack Nuts
Slide 52: Driving Results on our Core Dry Roast Peanut Business
Source: Blue Chip Worldwide SPARQ concept research, December Driving Results on our Core Dry Roast Peanut Business “Oven Roasted, Never Fried” communication drives purchase interest Elevates taste and healthy snack perceptions Supported through FSIs, In-Store and via Digital Channels
Slide 53: Brand Positioning on Nut Exactly Creating Strong Consumer Following
Snacking Yogurt/Veggies Popcorn Nuts Chips Candy Bars Indulgent Healthier Brand Positioning on Nut Exactly is Creating A Strong Consumer Following New Segment: Lighter than nuts, more substantial than popcorn
Slide 54: Marketing Support Built to Build Consumer Awareness and Drive Trial
PR Media Outreach Coupon incentive vehicle Marketing Support is Designed to Build Consumer Awareness and Drive Trial Facebook Twitter Consumer receives sample via mail
Slide 55: Retailers Like our New Snacking Concept Too
Retailers Like our New Snacking Concept Too
Slide 56: Orchard Valley Harvest Brand is On-Trend with Today's Consumer
Pure & Simple Goodness Supports a healthy lifestyle Close to the earth Our Orchard Valley Harvest Brand is On-Trend with Today’s Consumer
Slide 57: The Brand Consumers Trust for Pure & Simple Goodness
The Brand Consumers Trust for Pure & Simple Goodness
Slide 58: OVH is Catching on With Consumers
Orchard Valley Harvest Growth FY15 vs. FY14 +33% +48% OVH is Catching on With Consumers LB SALES DOLLAR SALES
Slide 59: Tapping into Consumers' Need for On-the-Go Goodness
Grab ‘n Go Mini’s Multi-Packs Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartman Group: Reimagining Health and Wellness, 2013 Snacking accounts for over 53% of all eating occasions in the U.S. 38% of consumers snack several times per day. We’re Tapping into Consumers’ Need For on
Slide 60: Impactful Marketing Support
Bloggers Ibotta Website PR In-Store Merchandising New Packaging Impactful Marketing Support
Slide 61: And, We're Gaining Retailer Support
*Note: % ACV refers to % “All Commodity Volume” as measured by IRI And, We’re Gaining Retailer Support 12.7 13.6 18.6 32.3 FY2012 FY2013 FY2014 FY 2105 Orchard Valley Harvest % ACV Distribution* OVH % ACV Source: IRI: Ttl Produce Nut Category – Total US Food Geography–Year Ending 6/28/15
Slide 62: Sanfilippo & Son, Inc.
- SANFILIPPO & SON, INC.
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