Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q1 2021 Earnings Presentation
22 slides from Tyson Foods's earnings presentation, Feb 11, 2021
Slide 1: 1Q Fiscal 2021 Supplemental Information
— 1Q Fiscal 2021 Supplemental Information February 11, 2021
Slide 2: Forward-Looking Statements
Certain information in this report constitutes forward-looking statements. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2021, other future economic circumstances, industry conditions in domestic and international markets, our
Slide 3: Solid results demonstrate focus on key actions
Solid results demonstrate focus on key actions Investing in the health, safety, and 1. wellness of our global team members 2. Demonstrating resiliency against a challenging operating environment 3. Winning consumers at retail through iconic and developing brands Executing on key priorities to 4. del
Slide 4: World-class leader in team member health and safety
World-class leader in team member health and safety Expanded company health, safety, Developed COVID-19 vaccine Implemented leading COVID-19 and wellness resources deployment plan monitoring and testing protocols • Piloting 7 health clinics for team members • Partnership with Matrix Medical as prefe
Slide 5: Fostering strong communities, a resilient supply chain, and sustainable business practices
Fostering strong communities, a resilient supply chain, and sustainable business practices EMPOWERING PEOPLE Since February 2020, nearly 90 million meals donated Our greenhouse gas reduction target of CONSERVING 30% by 2030 was the first in our industry to be accepted by the NATURAL RESOURCES Scienc
Slide 6: Winning consumers through retail excellence
Winning consumers through retail excellence Retail Volume Sales (percent change) Total Core Bus. Total F&B Lines Tyson Frozen Value-Added Protein Smoked Sausage Hot Dogs Delivered retail volume sales growth across core business lines and total company for 10 quarters in a row +25% +30% +24% % VOLUME
Slide 7: Robust product innovation supports growth
Robust product innovation supports growth Tyson Air Fried Chicken Jimmy Dean Breakfast Burritos Jimmy Dean Plant-Based Patty • Capitalizing on the evolution of • Meeting consumers’ needs for • Leveraging the Jimmy Dean taste Health & Wellness trends handheld breakfast on-the-go while adapting to inc
Slide 8: Focused framework to deliver shareholder value
Focused framework to deliver shareholder value Driving Enterprise-Wide Leverage Global Network Robust Investment in Balanced Capital Operational Excellence Through One Tyson Innovation and Technology Allocation Approach Framework Key priorities to unlock long-term shareholder value TYSON FOODS, INC.
Slide 9: Total Company Financial Results
Total Company Financial Results First Quarter 2021 vs. First Quarter 20203 SALES ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 (in billions of dollars) (in millions of dollars) (in dollars per share) -3% +24% +28% • Volumes down 4.4% • Higher operating income in Beef, Prepared • Strong earnings per share
Slide 10: Prepared Foods Financial Results
Prepared Foods Financial Results First Quarter 2021 vs. First Quarter 2020 SALES ADJUSTED OPERATING INCOME1 KEY HIGHLIGHTS (in billions of dollars) (in millions of dollars) • Lower sales volume due to reduction in foodservice channel demand • Increased average sales price due to favorable product mi
Slide 11: Chicken Financial Results
Chicken Financial Results First Quarter 2021 vs. First Quarter 2020 SALES ADJUSTED OPERATING INCOME1 KEY HIGHLIGHTS (in billions of dollars) (in millions of dollars) • Lower sales volume due to lower production throughput including impacts associated with COVID-19 • Increased average sales price due
Slide 12: Imperatives for improving Chicken operating results
Imperatives for improving Chicken operating results Improve Operational Employer of Choice Serve our Customers Performance Maintain uncompromising Improve live production performance, Better anticipate customer demand commitment to health, safety, capacity utilization, and product mix and chan
Slide 13: Beef Financial Results
Beef Financial Results First Quarter 2021 vs. First Quarter 20202 SALES ADJUSTED OPERATING INCOME1 KEY HIGHLIGHTS (in billions of dollars) (in millions of dollars) • Strong domestic and export demand coupled with adequate cattle supplies • Export volumes up 13.5% vs. comparable period • Lapping prio
Slide 14: Pork Financial Results
Pork Financial Results First Quarter 2021 vs. First Quarter 2020 SALES ADJUSTED OPERATING INCOME1 KEY HIGHLIGHTS (in billions of dollars) (in millions of dollars) • Sales volume decrease due to temporary idling of production facility, partially offset by strong demand • Production inefficiencies and
Slide 15: Additional Financial Highlights
Additional Financial Highlights First Quarter 2021 ◦ Operating cash flows of $1.4 billion ◦ Liquidity of $4.2 billion at 1/2/2021 ◦ Leverage of 2x net debt-to-adjusted EBITDA1 ◦ 2Q term loan repayment of $750 million ◦ Net interest expense of $108 million ◦ Adjusted effective tax rate of 23.5% ◦ Cap
Slide 16: Key Modeling Assumptions
Key Modeling Assumptions CORN SOYBEAN FREIGHT COSTS CATTLE ON FEED HOG & PIGS +28% +26% +9% Flat -1% Spot prices Spot prices Refrigerated contract rates Jan 2021 inventory vs. prior year Dec 2020 inventory vs. prior year Oct 20 – Dec 20 Oct 20 – Dec 20 Jan 2020 – Dec 2020 Source: Bloomberg C1 COMB (
Slide 17: Financial Outlook
Financial Outlook FY 2021 Outlook Factor 1Q201 1Q21 Prior Revised Comments Sales $10.8 billion $10.5 billion $42 – $44 billion Unchanged Expect to deliver toward upper end of range Chicken 2.4% 3.3% Up vs. prior year Likely lower vs. prior Headwinds created by substantial grain risk, freight Adj. Op
Slide 18: Tyson Has the Right Ingredients for Future Growth
Tyson Has the Right Ingredients for Future Growth 1. Uncompromising commitment to team member health, safety, and wellness 2. Capability, discipline, and defined processes to drive lasting operational efficiencies 3. Diversified brand and product portfolio coupled with asset flexibility to serve con
Slide 19: Appendix
Appendix
Slide 20: EPS Reconciliations
EPS Reconciliations $ in millions, except per share data (Unaudited) First Quarter Pretax Impact EPS Impact 2021 2020 2021 20201 Reported net income per share attributable to Tyson $ 1.28 $ 1.38 Add: Legal contingency accrual $ 320 $ — 0.67 (Less)/Add: Beef production facility fire insurance proceed
Slide 21: EBITDA Reconciliations
EBITDA Reconciliations $ in millions, except per share data (Unaudited) Three Months Ended Fiscal Year Ended Twelve Months Ended January 2, 2021 December 28, 2019 October 3, 2020 January 2, 2021 Net Income (a) $ 472 $ 509 $ 2,071 $ 2,034 Less: Interest income (2) (3) (10) (9) Add: Interest expense 1
Slide 22: Segment Operating Income Reconciliation
Segment Operating Income Reconciliation $ in millions, except per share data (Unaudited) Adjusted Segment Operating Income (Loss) (for the first quarter ended January 2, 2021) Beef Pork Chicken Prepared Foods International/Other Intersegment Sales Total Reported operating income (loss) $ 528 $ 116 $