John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Investor Presentation (November 2018)
72 slides from John B. Sanfilippo & Son's investor presentation, Nov 1, 2018
Slide 1: NASDAQ: JBSS November 1, 2018
NASDAQ: JBSS November 1, 2018 1
Slide 2: Agenda
Agenda • JBSS Overview and Results - Jeffrey Sanfilippo Chairman & CEO • FY 2018 Financial Milestones - Mike Valentine CFO & Group President • Brand Marketing Overview - Howard Brandeisky Sr. VP Global Marketing & Customer Solutions • FY 2019 Strategic Plan - Jeffrey Sanfilippo Chairman & CEO • Clos
Slide 3: Forward-Looking Statements
Forward-Looking Statements Some of the statements in this presentation and any statements by management 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
Slide 4: Consistent Success Over Past 6 Fiscal Years
Consistent Success Over Past 6 Fiscal Years Diluted EPS FY 13 - FY 18 Net Sales FY 13 - FY 18 $3.50 3.17 $1,000,000 $3.00 2.83 2.68 2.61 $950,000 $2.50 2.36 $900,000 1.98 $2.00 $850,000 $888,595 $1.50 $800,000 $750,000 $1.00 $700,000 $0.50 $650,000 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 $0.00 FY 13 FY
Slide 5: We Return Cash to Our Shareholders
We Return Cash to Our Shareholders CASH DIVIDENDS PAID BY CALENDAR YEAR $6.00 10.0% 9.0% 8.8% $5.00 8.0% 7.0% 7.0% $4.00 6.9% 6.0% $3.00 5.2% 5.0% 3.9% 3.8% 4.1% $5.00 4.0% $2.00 3.0% $2.00 $2.00 2.0% $1.00 $2.00 $1.50 $1.50 1.0% $1.00 $0.50 $0.55 $0.00 0.0% 2012 2013 2014 2015 2016 2017 2018 Regula
Slide 6: FY 2018 Results
JOHN B. SANFILIPPO & SON, INC. FY 2018 RESULTS HARVEST' x dats Since 1889 \ Fite Onchard, Valley Sauget Brand
Slide 7: Building Our Future
ral Gis JOHN B. SANFILIPPO & SON, INC. BUILDING OUR FUTURE ofl EXPAND CREATE VALUE CONSUMER WITH KEY REACH CUSTOMERS Win new customers by entering Be the trusted partner by Utilize insights to develop new channels, launching offering supply chain and products and integrated marketing differentiated
Slide 8: FY 2018 Accomplishments
FY 2018 Accomplishments • Fisher recipe nuts maintained branded market share leadership and expanded retail distribution • Orchard Valley Harvest revenue grew 65% due to new product introductions and new customers in the Consumer Distribution Channel • Fisher snack launched “Oven Roasted, Never Frie
Slide 9: FY 2018 Accomplishments
FY 2018 Accomplishments • Won Trail Mix Business Award at key Mass Merch customer • Introduced new items at key Contract Manufacturing customers • Grew Cashew Butter Business 9
Slide 10: FY 2018 Accomplishments
FY 2018 Accomplishments • Acquisition of Squirrel Brand and Southern Style Nuts expanded our presence in Club, Airlines and Foodservice venues • Expanded branded Club presence with OVH Glazed Pecan Salad Toppers • Launched branded portfolio on Amazon and created brand stores for consumers • Expanded
Slide 11: Business Channel Diversification: Fiscal 2018 Net Sales $889 Million
Business Channel Diversification Fiscal 2018 Net Sales $889 Million (Millions of $) 11
Slide 12: Fiscal 2018 Net Sales $590 Million (Consumer Channel)
FY 2018 Consumer Channel 11.2% vs. FY 17 Fiscal 2018 Net Sales $590 Million 12
Slide 13: Fiscal 2018 Net Sales $154 Million (Commercial Ingredients)
FY 2018 Commercial Ingredients Channel Commercial Ingredients 17% -6.4% vs. FY 17 Fiscal 2018 Net Sales $154 Million 13
Slide 14: Fiscal 2018 Net Sales $145 Million (Contract Packaging)
FY 2018 Contract Packaging Channel Contract Packaging 16% -4.6% vs. FY 17 Fiscal 2018 Net Sales $145 Million 14
Slide 15: Nut Category Review
JOHN B. SANFILIPPO & SON, INC. NUT CATEGORY REVIEW GaN a 7 7} 7 | \ igher Orchard Valley SQuIRREE BRAND Gy \ \ nuts HARVEST* ete 4
Slide 16: Nut Commodity Prices Up Slightly in FY 18
Nut Commodity Prices Up Slightly in FY 18 1% increase in FY 18, with a +4% average annual increase since Price Per Pound FY 11 $6.07 $6.01 $6.05 $5.85 $5.54 $5.62 $5.24 $4.63 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Source: IRI: Nut Category – Multi Outlet Geography Time Perio
Slide 17: Retail Prices Up Across Cashews, Macs and Walnuts
Retail Prices Up Across Cashews, Macs and Walnuts % Increase (Decrease) in Price Per Pound Since FY 17 7% 3% 1% 0% 0% 0% CASHEW MACADAMIA WALNUT MIXED NUT PECAN PEANUT ALMOND PISTACHIO NUT -5% -6% Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: FY 2018 data ending 6/24/18 17
Slide 18: Steady Category Revenue Growth
Steady Category Revenue Growth Category $ Sales (M) Category Pound Sales (M) 6,280 6,425 1,062 6,120 6,261 5,908 5,659 1,051 1,046 1,044 5,305 4,771 1,030 1,031 1,022 1,014 FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
Slide 19: FY 2018 Financial Milestones
FY 2018 FINANCIAL MILESTONES 19
Slide 20: JBSS Stockholders' Equity FY 1991-2018
JBSS Stockholders’ Equity FY 1991-2018 $275 $250 $225 9.0% CAGR over 26.5 Years $200 $175 $150 $125 $100 $75 $50 $25 $0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 In millions of $ 20
Slide 21: JBSS Net Sales FYs 1991-2018
JBSS Net Sales FYs 1991-2018 $1,200 Decreased prices and volume 6.6% CAGR over 26.5 Years $1,000 Increased Pound Volume and Prices $889 million De-emphasized $800 Industrial Sales, Lower Prices $600 Low Carb Diet Run Up $400 $200 $0 1991 1992 1993 1994 1995 1996 1997 (6 MO) 1998 1999 2000 2001 2002
Slide 22: JBSS Total Outstanding Debt FYs 1991-2018
JBSS Total Outstanding Debt FYs 1991-2018 $160 Facility Consolidation Project 55% decline in total debt $140 since 2007 Acquisition of $120 Squirrel Brand $100 $80 $60 $40 $20 $0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 23: Total Outstanding Debt as % of Net Sales
JBSS Total Outstanding Debt as % of Net Sales FYs 1991-2018 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 23
Slide 24: EBITDA
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 opera
Slide 25: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 (in $,000's) NET INCOME 6,917 14,425 2,835 17,122 21,760 26,287 29,305 30,395 36,125 32,420 INTEREST EXPENSE 7,646 5,653 6,444 5,364 4,754 4,354 3,966 3,492 2,910 3,463 INCOME TAX E
Slide 26: EBITDA Trends
EBITDA Trends* EBITDA EBITDA PER POUND SOLD 80,000 0.290 70,000 0.280 60,000 0.270 50,000 0.260 40,000 0.250 30,000 0.240 20,000 0.230 10,000 - 0.220 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 (in $ thousands) * EBITDA is a non-GAAP measure. See slide entitled “R
Slide 27: Peanut and Tree Nut Spot Prices vs. Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN % $7.50 22.5% $7.00 21.0% $6.50 19.5% $6.00 18.0% $5.50 16.5% $5.00 15.0% $4.50 13.5% $4.00 12.0% $3.50 10.5% $3.00 9.0% $2.50 7.5% $2.00 6.0% $1.50 4.5% $1.00 3.0% $0.50 1.5% $0.00 0.0% Sep-04 Jun-05 Sep-05 Jun-06 Sep-06 Ju
Slide 28: FY 2018 Brand Marketing Overview
FY 2018 BRAND MARKETING OVERVIEW 28
Slide 29: Grow Brands
Grow Brands Recipe Nuts Snack Nuts 29
Slide 30: Recipe Nuts
Recipe Nuts Fisher Walnut Halves & Pieces omeGa }\ Pi) JOHN B. SANFILIPPO & SON, INC. Fisher Pecan Halves The Global Source for Nuts
Slide 31: Fisher Recipe Slight Decline in Dollars and Flat in Pounds
Fisher Recipe Slight Decline in Dollars and Flat in Pounds for FY 2018 Total Fisher Recipe Brand Growth FY 18 vs. FY 17 FLAT Recipe Nuts (2)% DOLLAR NET SALES POUND SALES Source: JBSS shipment data 52 week versus 52 week comparison Fisher Recipe Category only. 31
Slide 32: Fisher Recipe Market Share Almost Flat in FY 2018
Fisher Recipe Market Share Almost Flat in FY 2018, but Up +11 Pts since FY 2013 Fisher Recipe Pound Share Total US MULO 26.7% 26.6% 22.7% 20.1% 18.0% 15.6% FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2013 - 2018 Data Ending 6/2
Slide 33: Fisher Recipe Continued to Expand Distribution
Fisher Recipe Continued to Expand Distribution in FY 2018 FISHER RECIPE ACV (All-Commodity Volume) TOTAL US MULO 65% 55% 59% 44% 47% 47% Recipe Nuts FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 New distribution at Meijer Stores New distribution at Publix Stores Source: IRI: Total Recipe Nut Category – Multi
Slide 34: Fisher Recipe Has Strong Distribution Nationally
Fisher Recipe has Strong Distribution Nationally National Distribution Hawaii Recipe Distribution Updated 8.18.18 34
Slide 35: Fisher Brand Equity with Food Network Sponsorship
Continue to Build Fisher Brand Equity with Food Network Sponsorship 35
Slide 36: Strong Social and Digital Support to Engage Consumers
Strong Social and Digital Support to Engage Consumers Social Media and Web Influencer Marketing Original PR photo content created and photographed by the Fisher Fresh Thinkers Influencer Network 36
Slide 37: In-store Support to Drive Purchases
In-store Support to Drive Purchases Displays Aisle Blades 37
Slide 38: Snack Nuts
Snack Nuts OVEN | ROASTED my_ NEVER FRIED SEA | Sat » PEANUTS gisher OVEN RO TED "NEVER FRIED it ALMONDS ROASTED )__ NEVER FRIED ol 3 me \ Tp unowoscisie! BLEND Ne hE YS - : f CASHEWS a B. SANFILIPPO & SON, INC. <The Global wg q
Slide 39: Fisher Snack Increase in Both Dollars and Pounds
Fisher Snack Increase in Both Dollars and Pounds in FY 18 Total Fisher Snack Growth FY 18 vs. FY 17 4% Snack Nuts DOLLAR NET SALES POUND SALES Source: JBSS shipment data 52 week versus 52 week comparison Fisher Snack Category only. 39
Slide 40: Fisher Snack Market Share Flat Since FY 13
Fisher Snack Market Share has been Flat Since FY 13 FISHER SNACK NATIONAL POUND SHARE 1.00% 0.75% 0.67% 0.67% 0.63% 0.62% 0.64% 0.61% 0.50% 0.25% 0.00% FY13 FY14 FY15 FY16 FY17 FY18 FISHER SNACK NATIONAL LB SHARE Source: IRI: Total Snack Nut Category – Multi Outlet Geography –Periods: FY 13 to FY 18
Slide 41: Exciting, Differentiated New Product Launch in FY 18
Exciting, Differentiated New Product Launch in FY 18 41
Slide 42: Strong Marketing Support to Communicate Key Point of Difference
Strong Marketing Support to Communicate the Key Point of Difference IN STORE Digital / Social & Print Radio Sampling 42
Slide 43: Continued In-Stadium Marketing Support
Continued In-Stadium Marketing Support 44
Slide 44: Pure and Simple Goodness
Pure and Simple Goodness 44
Slide 45: Continued Strong Growth for Orchard Valley Harvest in FY 18
Continued Strong Dollars and Pound Growth for Orchard Valley Harvest in FY 18 Orchard Valley Harvest Growth FY 18 vs. FY 17 +65% +64% DOLLAR NET SALES POUND SALES Source: JBSS shipment data 52 week versus 52 week comparison. Includes Orchard Valley Harvest brand 45
Slide 46: Increasing Share Growth for Orchard Valley Harvest
Increasing Share Growth for Orchard Valley Harvest Over the Last 2 Fiscal Years OVH POUND SHARE TOTAL US MULO 1.4% 1.2% 1.0% 0.8% 0.6% 1.3% 0.4% 0.8% 0.8% 0.6% 0.6% 0.6% 0.2% 0.0% FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 ORCHARD VALLEY HARVEST Source: IRI: Total Produce Nut Category – Multi Outlet Geogra
Slide 47: Orchard Valley Harvest Fastest Growing Brand in Nuts
Resulting in Orchard Valley Harvest being the Fastest Growing Brand in Nuts! 63% % Change Total Dollars 14% 10% -26% -8% -13% -1% -7% BLUE DIAMOND ORCHARD VALLEY HARVEST DIAMOND FISHER EMERALD PLANTERS PRIVATE BRAND WONDERFUL • Source: IRI – MULO Latest 52 weeks 6/24/18 versus prior year 48
Slide 48: OVH Continues to Enjoy Steady Distribution Growth
OVH Continues to Enjoy Steady Distribution Growth OVH ACV TOTAL US MULO 50.0 46% 45.0 40.0 37% 38% 35.0 33% 30.0 25.0 19% 20.0 15.0 14% 10.0 5.0 0.0 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 OVH ACV Source: IRI: Total Produce Nut Category – Multi Outlet Geography Time Periods: to FY 13 Year Ending 6/30/13
Slide 49: Orchard Valley Harvest Establishing National Distribution
Orchard Valley Harvest Establishing National Distribution 1 1 2 National Distribution 2 BREAUX Markets Updated 8.18.18 50
Slide 50: Orchard Valley Harvest Multi-Packs Capitalize on 4 Key Platforms
Orchard Valley Harvest Multi - Packs Capitalize on 4 Key Platforms Wellness Indulgent Core Snack Salad Toppers 51
Slide 51: Social Media and Digital Support to Engage Consumers
Social Media and Digital Support to Engage Consumers 52
Slide 52: In-Store Support to Drive Purchases
In-Store Support to Drive Purchases 53
Slide 53: We Welcome the Newest Members of the JBSS Family
We Welcome the Newest Members of the JBSS Family 54
Slide 54: Squirrel Acquisition Fit with Expand Consumer Reach Pillar
Squirrel Acquisition is a Strong Fit with Our “Expand Consumer Reach” Strategic Pillar 55
Slide 55: Expanding eCommerce Presence
Expanding eCommerce Presence 56
Slide 56: Social Media Marketing Engages Consumers and Drives Awareness
Social Media Marketing Engages Consumers and Drives Awareness 57
Slide 57: Southern Style Nuts Has Strong Equity in Hunter Mix Items
Southern Style Nuts has Strong Equity in Hunter Mix Items 58
Slide 58: FY 2019 Strategies and Closing Comments
FY 2019 STRATEGIES AND CLOSING COMMENTS 58
Slide 59: JBSS Strategies & Market Forces
JBSS Strategies & Market Forces HEADWINDS & TAILWINDS GROWTH DRIVERS FY2019 Plan Consumer 1. Expand distribution Competitive Landscape with existing Commercial Ingredients customers Contract Packaging Supply Chain Dynamics 2. Increase sales velocity Consumption Trends 3. Gain new customers 4. Launch
Slide 60: Building Our Future: What Matters Most FY 2019
JOHN B. SANFILIPPO & SON, INC. BUILDING OUR FUTURE WHAT MATTERS MOST FY 2019 OA EXPAND CREATE VALUE CONSUMER WITH KEY REACH CUSTOMERS Win new customers by entering Be the trusted partner by Utilize insights to develop new channels, launching offering supply chain and products and integrated marketin
Slide 61: Grow Brands
Grow Brands Recipe Nuts Snack Nuts 61
Slide 62: Maintain Fisher Recipe #1 Market Share Position
Maintain Fisher Recipe #1 Market Share Position Nationally by Expanding Distribution 62
Slide 63: Reposition Fisher Snack and Expand Distribution Nationally
Reposition Fisher Snack and Expand Distribution Nationally Updated 8.18.18 Snack Distribution 64
Slide 64: Taking Orchard Valley Harvest On the Go
We’re Taking Orchard Valley Harvest “On the Go” 65
Slide 65: Drive Orchard Valley Harvest Growth with New Platforms
Drive Orchard Valley Harvest Growth with New Platforms like Salad Toppers 65
Slide 66: Expanding Distribution with Innovative New Products
Expanding Distribution with Innovative New Products Recipe Nuts Snack Nuts 66
Slide 67: Expanding Consumer Reach Across All JBSS Brands
Expanding Consumer Reach Across All JBSS Brands Foodservice eCommerce Club Convenience Stores Store Travel 67
Slide 68: Be Preferred Partner for Value-Added Nuts & Snacks
Be Preferred Partner to Build Profitable Volume of Value-Added Nuts & Snacks Commodity Expertise Operational Excellence Quality / Regulatory 68
Slide 69: This Team Will Drive Results
This Team Will Drive Results 69
Slide 70: JBSS Mission
JBSS 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 o
Slide 71: JBSS Share Price Comparison
JBSS 5 Year Share Price Comparison $24.58 to $63.06 = +157% $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $- Source: NASDAQ 5 year chart 10/31/18 71
Slide 72: Thank You
Thank You We Look Forward to a Successful FY 2019 72
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