Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Investor Day (June 2013)
12 slides from Hormel Foods's investor day presentation, Jun 25, 2013
Slide 1: Jody Feragen
Jody Feragen Executive-Vice President and Chief Financial Officer
Slide 2: First Half 2013 Results
First Half 2013 Results In millions except per share 2013 2012 Change Sales $4,269 $4,052 + 5% Tonnage (lbs.) 2,477 2,413 + 3% Net earnings per share $0.95 $0.95 Even • Record sales • Sales up in four of five business segments 2
Slide 3: EPS Guidance
EPS Guidance • EPS guidance range $1.88 to $1.96 • Continuing difficult market conditions • Soft demand for refrigerated retail • Higher input costs • Continuing protein volatility 3
Slide 4: Free Cash Flow
Free Cash Flow In millions $454 $396 $394 $385 $146 2008 2009 2010 2011 2012 *Cash from Operations - CAPEX = Free Cash Flow 4
Slide 5: Cash Flow Priorities
Cash Flow Priorities • Invest in the business • Internal • Acquisitions • Return cash to shareholders • Dividends • Share repurchase 5
Slide 6: Internal Investment
Invest in the Business Internal Investment 6
Slide 7: Strategic Acquisitions
Invest in the Business Strategic Acquisitions Jennie-O: Value-Added Turkey Grocery Products: Traditional 2001 2006 2013 Refrigerated Foods: Value-Added Protein Grocery Products: Mexican Provena Foods, Inc. 2004 2006 2006 2007 2005 2009 2010 2011 Refrigerated Foods: Convenience Meals Specialty Foods
Slide 8: Dividend History
Balanced Model Dividend History + 13% CAGR + 13% $0.68 $0.60 $0.37 8
Slide 9: Cash Returned to Shareholders
Cash Returned to Shareholders Nearly $1 billion from 2008 through 2012 In millions Share Repurchase Dividends Paid 2008 2009 2010 2011 2012 9
Slide 10: Return on Invested Capital
Return on Invested Capital 16.9% 16.4% Hormel Foods ROIC 14.9% Packaged Food Peers 14.1% 13.1% 11.4% 2008 2009 2010 2011 2012 2012 10
Slide 11: Total Shareholder Return
Total Shareholder Return Comparison of 5-Year Cumulative Total Return* Hormel Foods Corporation S&P 500 S&P Packaged Food & Meats 200 180 160 140 120 100 80 60 40 20 - *$100 invested on 10/26/07 in stock or index – including reinvestment of dividends 11
Slide 12: Thank You!
Thank You! (Horie!)