John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Investor Presentation (October 2008)
55 slides from John B. Sanfilippo & Son's investor presentation, Oct 30, 2008
Slide 1: 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 2: Vision
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer.
Slide 3: Elgin, IL Update
Elgin, IL Update All Chicago facilities now consolidated in Elgin High Speed Jar Line Peanut Cooler Receiving Dock High Speed Can Line Finished Goods
Slide 4: Strategic Accomplishments: Finance, Operations, Quality Assurance
Strategic Accomplishments Finance Improved Closing Process Refinanced Credit Facility Reduced Deduction Backlog Operations & Procurement Completed Facility Consolidation Maintained competitive cost structure during volatile markets Initiated Strategic Sourcing Review Reduced Raw and Finished Goods I
Slide 5: Strategic Accomplishments: HR, R&D, Sales
Strategic Accomplishments Human Resources Implemented Employee Hiring/Retention Programs Established Formal Internship Program Started Paperless Payroll Research & Development Launched over 190 items Outsourced seasoning/blending operation Improved product quality for extruded snacks Sales Realigned
Slide 6: Strategic Accomplishments: Marketing, IT, Executive Team
Strategic Accomplishments Marketing Launched Fisher Culinary Touch Fisher Co-Brand with McDonald's Sponsored Pillsbury Bake Off Information Technology & Administration Began rollout of DRP (distribution requirement planning) Improved reporting - sales forecasting, work order, scheduling Took over ma
Slide 7: Core Values
Core Values Integrity People Investment Customer Driven Innovation Execution Quality Continuous Improvement Safety Resource Conservation
Slide 8: Sales Review FY 2008
JOHN B. SANFILIPPO & SON, INC. Sales Review FY 2008 <
Slide 9: Fiscal 2008 Net Sales Increased .2% over Fiscal 2007
Fiscal 2008 Net Sales Increased .2% over Fiscal 2007 ($ Millions) 2003 2004 2005 2006 2007 2008 419.7 520.8 581.7 579.6 540.9 541.8
Slide 10: % Gross Sales by Product Type FY 2008
% Gross Sales by Product Type FY 2008 Peanuts Pecans Cashews & Mixed Nuts Walnuts Almonds Other Product Type 0.201 0.226 0.208 0.147 0.119 0.099
Slide 11: Business Diversification % of Net Sales
Industrial Foodservice Contract Mfg. Consumer Products Export East 0.171 0.126 0.088 0.542 0.073 Business Diversification % of Net Sales Total Sales $541,771,000 Consumer Contract Pkg. Food Service Industrial Export
Slide 12: Business Diversification: Contract Packaging
Business Diversification % of Net Sales Contract Pkg. 9% Contract Packaging $47,441,000
Slide 13: Business Diversification: Foodservice
Business Diversification % of Net Sales Foodservice 13% Contract Pkg. 9% Foodservice $68,132,000
Slide 14: Business Diversification: Industrial
Business Diversification % of Net Sales Industrial 17% Foodservice 13% Contract Pkg. 9% Industrial $92,792,000
Slide 15: Business Diversification: Export
Business Diversification % of Net Sales Industrial 17% Foodservice 13% Contract Pkg. 9% Export 7% Export $39,385,000
Slide 16: Business Diversification: Consumer
Business Diversification % of Net Sales Industrial 17% Foodservice 13% Contract Pkg. 9% Export 7% Consumer Products 54% Consumer $294,021,000
Slide 17: Mission
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 of our
Slide 18: Customer Satisfaction and Shareholder Value Drivers
Customer Satisfaction Highest in Market Supplier Satisfaction Highest in Market Delivers SVA Revenue Growth Price Premium Faster Collections Loyalty Profitability Lower product cost Lower inventory Improved quality Higher A/P days Employee Retention Shareholder Value $$$ Leadership Team Execution Pl
Slide 19: Fiscal Year Financial Review
Fiscal Year Financial Review
Slide 20: Net Sales Dollars by Quarter
Net Sales Dollars by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2008 132808 176990 106716 125257 541771 2007 133793 177134 107009 122922 540858 ($ Thousands)
Slide 21: Gross Profit Dollars by Quarter
Gross Profit Dollars by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2008 11800 23337 12838 18258 66233 2007 5965 18808 6055 10461 41289 ($ Thousands)
Slide 22: Gross Profit Percent of Net Sales by Quarter
Gross Profit Percent of Net Sales by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2008 0.089 0.132 0.12 0.146 0.122 2007 0.045 0.106 0.057 0.085 0.076
Slide 23: Quarterly Gross Margins Compared to Tree Nut Market Prices
Quarterly Gross Margins Compared to Tree Nut Market Prices Source: JBSS industry survey of nut markets
Slide 24: Selling Expenses Percent of Net Sales by Quarter
Selling Expenses Percent of Net Sales by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2008 0.062 0.058 0.073 0.068 0.064 2007 0.081 0.064 0.076 0.072 0.072
Slide 25: Administrative Expenses Percent of Net Sales by Quarter
Administrative Expenses Percent of Net Sales by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2008 0.035 0.028 0.042 0.038 0.035 2007 0.029 0.023 0.037 0.037 0.03
Slide 26: Interest Expense Dollars by Quarter
Interest Expense Dollars by Quarter QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2008 2730 2647 2662 2463 10502 2007 1670 1784 2861 3032 9347 ($ Thousands)
Slide 27: Net Income Dollars by Quarter (as revised)
Net Income Dollars by Quarter (as revised) ($ Thousands) QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2008 -3389 3517 -8750 2665 -5957 2007 -4668 1019 -6124 -3804 -13577
Slide 28: Historical Financial Information 1991 Through 2008
Historical Financial Information 1991 Through 2008
Slide 29: Net Sales Dollars Fiscal Years 1991-2008 (Restated)
Net Sales Dollars Fiscal Years 1991-2008 (Restated) 1991 1992 1993 1994 1995 1996 1997 (6 MO) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 165 193 204 209 277 293 132 312 313 327 342 353 420 521 582 580 541 542 ($ Millions)
Slide 30: Basic EPS Fiscal Years 1991-2008
Basic EPS Fiscal Years 1991-2008 1991 1992 1993 1994 1995 1996 1997 (6 MO) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 0.83 0.95 0.74 0 0.63 -0.33 0.05 0.56 0.2 0.74 0.83 0.84 1.63 2.35 1.37 -1.58 -1.28 -0.56
Slide 31: Total Debt Dollars Fiscal Years 1991-2008
Total Debt Dollars Fiscal Years 1991-2008 ($ Millions)
Slide 32: Stockholders Equity Dollars Fiscal Years 1991-2008
Stockholders Equity Dollars Fiscal Years 1991-2008 ($ Millions) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 25 32 69 68 76 73 73 78 80 87 94 102 119 181 196 180 163 158
Slide 33: Overview of Results for the First Quarter of Fiscal 2009
Overview of Results for the First Quarter of Fiscal 2009 Net loss declines by 89% to $0.4 million Net sales increase by 1.5% while sales volume declines by 11.3% Gross profit margin increases by 18% to 10.5% of net sales Operating expenses decline to 9.1% of net sales from 9.7% Income from operation
Slide 34: Market Dynamics
JOHN B. SANFILIPPO & SON, INC. “s Market Dynamics
Slide 35: Economic Dynamics
Economic Dynamics Low consumer confidence Rising commodity costs Financial market strain Volatile oil prices Increased unemployment rates Falling property values Global economics More/less use of credit Sources: Nielsen Consumer Confidence, Concerns and Attitudes to Recession, June 2008 Nielsen Econ
Slide 36: Consumer Reaction
Consumer Reaction Softening and reallocation of household spend Increase of at-home food preparation Less frequent shopping trips Increase in trial of lower- cost alternatives Increase in coupon use Channel migration Sources: Nielsen Consumer Confidence, Concerns and Attitudes to Recession, June 200
Slide 37: Nut Category Dynamics
Nut Category Dynamics Commodity price fluctuations Supply and demand Competitive pricing pressures Private label & Brand Product mix shift Customer expectations Consumer expectations New item launches Strong nut usage and inclusion across all channels of distribution Sources: Nielsen Consumer Confid
Slide 38: Consumer Preference
FLAVOR Mango Cherry Cranberry Ranch Orange Lemon/Lime Lavender Dill Pickle Balsamic Wasabi Vanilla Grilled Toasted/Roasted Floral TREND Health & Wellness Energy Flavor Convenience Functional Foods Value Indulgence Portion Control Sustainability Natural and Organics Ethnic Fusion Unique Packaging SPI
Slide 39: Total Nuts Year Snapshot
Total Nuts 5 Year Snapshot Category witnessed $2.4 billion and 788 million in unit sales for the last 52 weeks Up 4.8% in dollars vs. YA Source: Nielsen FDM (Dollars and Units in Millions) 52 Weeks Ending 06/28/08 vs. YA Nuts. Does not include Trail Mixes 2004 2005 2006 2007 2008 Units 752 764 757 7
Slide 40: Private Label vs. Branded 5 Year Snapshot
2004 2005 2006 2007 2008 Units 563 567 564 566 569 Dollars 1502 1536 1603 1629 1696 Private Label vs. Branded 5 Year Snapshot 2004 2005 2006 2007 2008 Units 188 196 191 205 218 Dollars 512 557 590 638 711 +11% +7% Private Label Total Nuts Branded Total Nuts +4% +0.5% Source: Nielsen FDM (In Millions
Slide 41: Category Growth
Snack Baking Produce 518569079 115596583 153896639 Snack Baking Produce YA 1358053809 375091736 565100063 CY 1396022137 401661372 610100268 $+2.8% U+0.3% $+8.0% U+3.1% $+7.1% U-0.3% Category Growth Source: Nielsen FDM (Dollars and Units) 52 Weeks Ending 06/28/08 vs. YA Nuts. Does not include Trail M
Slide 42: Channel Shift
Grocery Channel Drug Channel Mass Channel YA 363952545 116066886 36924482 CY 360409940 119943566 38215573 Channel Shift Grocery Channel Drug Channel Mass Channel YA 958120691 267948355 131984763 CY 978599330 278354317 139068490 +3.3% +3.5% - -1.0% +2.1% +3.9% +5.4% The grocery channel has decreased
Slide 43: Trail Mix
UNIT SALES YA 75545869 CY 79430435 +5.1% DOLLAR SALES YA 191484380 CY 212900657 +11.2% Source: Nielsen FDM in Millions 52 Weeks Ending 06/28/08 vs. YA Trail Mix Trail mix category continues to grow
Slide 44: Strong Market Position
Strong Market Position Most complete product portfolio of nuts in the U.S. Focused diversification and leverage abilities in a multi-channel business Proactive and reactive to market dynamics Strong national brands Expertise in R&D, Marketing and other support functions Consumer Food Service Export
Slide 45: New Products/Customers Drove Sales
New Products/Customers Drove Sales Over 225+ products launched
Slide 46: Awards and Recognition
5 time Category Colonel Award Winner Superior Taste Award-American Academy of Taste Fisher-Retail and Food Service Recognized as the Leader
Slide 47: National Consumer PR and Advertising
National Consumer PR and Advertising 69 Million consumer and Trade Impressions Advertising PR
Slide 48: Fisher Nuts and the 43rd Pillsbury Bake Off
Fisher Nuts and the 43rd Pillsbury Bake Off Fisher brand baking or snack nuts were: In 12% of all entrant recipes In 44 of the 100 finalist recipes Out of the 5 category winners, nuts were included in 4 America's Favorite Recipe! Voted on by millions of consumers included Fisher Nuts The Fisher bran
Slide 49: Awareness Driving Partnerships
Awareness Driving Partnerships Sports Media Promotion
Slide 50: Vision Core Values
VISION CORE VALUES
Slide 51: Fisher Product Attributes
Quality Social Responsibility Flavor Consumer In Life Invention Deliver an Experience Every Fisher product across all channels is developed with the above 6 attributes as its foundation.
Slide 52: Smart Live Smart Eat Smart Culinary Touch
Mind & Body Smart Live Smart Eat Smart Culinary Touch 107+ MILLION Impressions
Slide 53: Introducing Upromise eCoupons
JOHN B. SANFILIPPO & SON, INC. Introducing Upromise eCoupons. roms Nothing to clip. Nothing to print. upons + select founds ened up p you want w eCoupons. «1112131 (28) $0.50 Save $0.50 for college when you snack on Fisher , VISION
Slide 54: Into FY09
Into FY09 Consumer Food Service Export Industrial Contract Manufacturing
Slide 55: We Look Forward to a Successful Fiscal 2009
We Look Forward to a Successful Fiscal 2009
Sanfilippo John B & SON — Investor Presentation (October 2008) on 6ix