Fresh Del Monte Produce, Inc. · NYSE:FDP
Fresh Del Monte Produce — Q3 2021 Earnings Presentation
48 slides from Fresh Del Monte Produce's earnings presentation, Nov 3, 2021
Slide 1: Innovating for a Better World Tomorrow
INNOVATING FOR A BETTER WORLD TOMORROW Fresh Del Monte Produce Inc. Investor Relations November 3, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements regarding the intent, beliefs or current expectations of the Company or its officers with respect to the Company’s plans and future performance. These forward-looking statements are based on information currentl
Slide 3: Who We Are - Key Differentiators
FRESH DEL MONTE PRODUCE WHO WE ARE - Key Differentiators Diverse Portfolio Global player with a Purpose-driven growth: with demand for leading brand loved by ESG integration as a value-added produce consumers competitive advantage growing Positioned like no one Purposeful & Targeted else – verticall
Slide 4: How We Got There - Decades of Growth
FRESH DEL MONTE PRODUCE AT A GLANCE HOW WE GOT THERE - Decades of Growth 1996 2017 2013-14 Announced new joint ventures with Del Monte Pacific Limited Del Monte Fresh Produce acquired by current Acquired tomato agricultural in retail & refrigerated grocery management production land in Florida and 2
Slide 5: A Diversified Company Positioned for Long-Term Growth
A Diversified Company Positioned for Long-Term Growth… 5
Slide 6: Worldwide Business – Unmatched Global Network
Worldwide Business – Unmatched Global FRESH DEL MONTE PRODUCE AT A GLANCE Network We are one of the world’s leading vertically- integrated producers, distributors and 37,600 EMPLOYEES GLOBALLY marketers of fresh and fresh-cut fruit and vegetables as well as a leading producer and 90+ COUNTRIES FRESH
Slide 7: Worldwide Business – Unmatched Global Network
Worldwide Business – Unmatched Global FRESH DEL MONTE PRODUCE AT A GLANCE Network IN 2020 45% OF OUR FRESH PRODUCE WAS GROWN ON COMPANY- CONTROLLED FARMS 103k ACRES UNDER PRODUCTION 61k ACRES OWNED 42k ACRES LEASED OF OWNED ACRES SET 26% ASIDE TO PRESERVE BIODIVERSITY AND PROTECT WILDLIFE 77
Slide 8: Worldwide Business – Broad Portfolio of Products
Worldwide Business – FRESH DEL MONTE PRODUCE AT A GLANCE Broad Portfolio of Products IN 2020 U.S. & CANADA EUROPE CENTRAL AMERICA ASIA AFRICA Sales Sales & Sourcing Sourcing Sales Sales ▪ Fresh & fresh-cut fruit ▪ Fresh & Fresh-cut fruit and ▪ Bananas ▪ Fresh & fresh-cut fruit ▪ Fresh fruit and vege
Slide 9: Broad Portfolio of Products – Leading Market Positions
Broad Portfolio of Products – Leading FRESH DEL MONTE PRODUCE AT A GLANCE Market Positions Leading marketer of fresh A leading marketer of fresh-cut fruit Third largest marketer of bananas in pineapples in the U.S., and a in the U.S, Canada, Japan, South the U.S., and a leading marketer of leading m
Slide 10: One of the Most Widely Recognized Food Brands Worldwide
One of the Most Widely Recognized FRESH DEL MONTE PRODUCE AT A GLANCE Food Brands Worldwide Symbol Health of Quality Wellness and Better-for-you attributes Freshness Broad Appeal Global opportunity to expand to new products and markets 10
Slide 11: Innovating Where We Have Advantage
Market Leader & Pioneer FRESH DEL MONTE PRODUCE AT A GLANCE in the Fresh Produce Industry Innovating Where We Have Advantage. We were the… ✓ FIRST to complete a national U.S. distribution network ✓ FIRST to launch a national fresh-cut fruit network ✓ FIRST to introduce premium gold pineapple ✓ FIRST
Slide 12: Diversified Sales & Product Platform
Diversified Sales & Product Platform FRESH DEL MONTE PRODUCE AT A GLANCE 2020 NET SALES: $4.2 BILLION Other Products & Services 3% Tomatoes 1% Vegetables 4% Middle East, Prepared 10% Melons, 2% Food, 6% Europe, Avocados, 8% Other Fruit & 16% Vegetables, 2% Non-Tropical Fruit, 5% BY BY Other, 1% REGI
Slide 13: Experienced and Results Oriented Management as of 2020
Experienced and Results Oriented FRESH DEL MONTE PRODUCE AT A GLANCE Management as of 2020 Years at Name Title FDP Mohammad Abu-Ghazaleh Chairman and CEO 25 Youssef Zakharia President and COO 20 Eduardo Bezerra Senior Vice President and CFO 2 Marlene Gordon Senior Vice President – General Counsel, C
Slide 14: Our Vision
Our Vision Inspiring healthy lifestyles through wholesome and convenient products 14
Slide 15: Our Values
Our Values EXCELLENCE: CARE: We provide high quality level in all our products We relentlessly respect and focus on our and services to fully achieve business results. employees, consumers, customers, environment and communities. PASSION: We have a passion to consistently deliver the TRUST: best qua
Slide 16: Sustainable Growth Strategy
Sustainable Growth Strategy 16
Slide 17: Unlocking the Value
Unlocking the Value STRATEGIC IMPERATIVES We have embarked on a 5-year plan to transform Fresh Del Monte Produce THE KEY ELEMENTS OF OUR TRANSFORMATION INVOLVE: Protect and grow the core Drive innovation and expansion growth on value-added categories Become a technology driven company Become a consu
Slide 18: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, Fundamentals and Returns UNLOCKING THE VALUE Drive innovation and Protect and grow expansion growth on value- the core added categories 18
Slide 19: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns ✓ Leading supplier of fresh and value-added vegetable category ✓ Best known for innovation ✓ Foodservice and retail customers in North America ✓ Purchase price of $361 million in 2018 A DEL MONTE FRESH COMPANY ✓ Voluntary reca
Slide 20: Focus on Leadership Area - Quality and Safety
Focus on Leadership Area - UNLOCKING THE VALUE Quality and Safety To demonstrate compliance with international regulations and standards on environmental protection, food safety and social accountability, our farms and our facilities are certified by one or more of the following standards: ▪ Global
Slide 21: The Del Monte Brand
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns The Del Monte® Brand Food and Beverage Stores 21
Slide 22: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns Become a technology driven company Become a consumer driven company 22
Slide 23: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns Evolve our culture to increase employee engagement and productivity 23
Slide 24: Diversity and Inclusion
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns We strive to foster a culture of diversity and inclusion (“D&I”) so all employees feel respected and no employee feels discriminated against. We are proud of our diversity across our organization and especially our leadership
Slide 25: Sustainability: For a Brighter World Tomorrow
Sustainability: For a Brighter World Tomorrow UNLOCKING THE VALUE 25
Slide 26: Sustainability: A Brighter World Tomorrow
Sustainability: A Brighter World Tomorrow UNLOCKING THE VALUE 26
Slide 27: Financial Review
Financial Review 27
Slide 28: Summary Data
Summary Data FINANCIAL PERFORMANCE U.S. dollars in millions, except share and per-share data Full Year 3rd Quarter Nine Months 2020 2019 2018 2021 2020 2021 2020 Net Sales $ 4,202 $ 4,489 $ 4,494 $ 1,005 $ 990 $ 3,235 $ 3,200 Gross Profit $ 251 $ 306 $ 286 $ 49 $ 67 $ 264 $ 215 Gross Margin 6.0% 6.8
Slide 29: Fresh and Value-Added Products
Fresh and Value-Added Products FINANCIAL PERFORMANCE Fresh & value-added products include fresh-cut fruit, pineapples, fresh-cut vegetables, avocados, prepared food products, non-tropical, vegetables, and other fruit and vegetables. U.S. dollars in millions Full Year 3rd Quarter Nine Months 2020 201
Slide 30: Bananas
Bananas FINANCIAL PERFORMANCE U.S. dollars in millions Full Year 3rd Quarter Nine Months 2020 2019 2018 2021 2020 2021 2020 Net Sales $ 1,603 $ 1,656 $ 1,703 $ 365 $ 362 $ 1,210 $ 1,218 Adjusted Gross Profit* $ 92 $ 105 $ 93 $ 2 $ 11 $ 97 $ 77 Adjusted Gross Profit Margin* 5.8% 6.4% 5.5% 0.7% 3.1% 8
Slide 31: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share FINANCIAL PERFORMANCE $1.87 $1.23 $1.12 $1.15 $0.40 $0.35 $0.01 2018 2019 2020 Q3 2020 Q3 2021 YTD 2020 YTD 2021 Excludes asset impairment, restructuring charges & gain/(loss) on the sale of assets. 31
Slide 32: Adjusted EBITDA
Adjusted EBITDA FINANCIAL PERFORMANCE U.S. dollars in millions $202 $189 $192 $172 $166 $51 $26 2018 2019 2020 Q3 2020 Q3 2021 YTD 2020 YTD 2021 Excludes asset impairment, restructuring charges & gain/(loss) on the sale of assets. 32
Slide 33: Operating Cash Flow
Operating Cash Flow FINANCIAL PERFORMANCE U.S. dollars in millions $247 $181 $174 $169 $152 2018 2019 2020 YTD 2020 YTD 2021 33
Slide 34: Capital Allocation
Capital Allocation FINANCIAL PERFORMANCE U.S. dollars in millions Operating Cash Flow Capital Expenditure Debt $247 $151 $150 $662 $181 $122 $587 $542 $169 2018 2019 2020 2018 2019 2020 2018 2019 2020 Total Debt to Adjusted EBITDA 2018 2019 2020 3.8X 2.9X 2.9X Asset Sale Dividend Policy Total Debt a
Slide 35: Fresh Del Monte Produce Investment Highlights
Fresh Del Monte Produce Investment Highlights $100 million Asset Sale Optimization Program Clear Growth DEL MONTE Strategy Brand Vertically- Integrated Market Leader and Global in Diverse Operations Produce Categories Distribution and Fresh-Cut Centers (Value-Added Focus) 35
Slide 36: Appendix
Del Monte Quality Appendix
Slide 37: Income Statement
Income Statement APPENDIX U.S. dollars in millions, except share and per-share data Full Year 3rd Quarter Nine Months Statement of Operations: 2020 2019 2018 2021 2020 2021 2020 Net Sales $ 4,202 $ 4,489 $ 4,494 $ 1,005 $ 990 $ 3,235 $ 3,200 Cost of products sold 3,918 4,177 4,208 956 920 2,967 2,96
Slide 38: Balance Sheet
Balance Sheet APPENDIX U.S. dollars in millions Full Year Nine Months 2020 2019 2018 2021 2020 Assets Cash & Short Term Investments $ 17 $ 33 $ 21 $ 19 $ 14 Accounts Receivable 435 $ 439 $ 474 439 413 Inventory & Other 561 579 644 589 563 Current Assets 1,012 1,052 1,139 1,047 990 Property, Plant &
Slide 39: Cash Flow
Cash Flow APPENDIX U.S. dollars in millions Full Year Nine Months 2020 2019 2018 2021 2020 Net Income $ 46 $ 69 $ (16) $ 91 $ 47 Non-Cash Charges 98 108 150 64 77 Working Capital 37 (8) 113 (3) 49 Operating Cash Flow 181 169 247 152 174 Capital Expenditures (150) (122) (151) (83) (93) Acquisitions/D
Slide 40: Non-GAAP Measures
Non-GAAP Measures APPENDIX The Company's results are determined in accordance with U.S. generally accepted accounting principles (GAAP). Certain information presented in this press release reflects adjustments to GAAP measures such as amounts related to restructuring, asset impairment and other char
Slide 41: Reconciliations of Non-GAAP Financial Measures
APPENDIX FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES 1) Other product-related charges for the nine months ended October 1, 2021 primarily consisted of (1) $3.4 million of non-tropical fruit inventory write-offs due to inclement weather in Chile, (2) $
Slide 42: Reconciliations of Non-GAAP Financial Measures
APPENDIX FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES 3) Gain (loss) on disposal of property, plant and equipment, net for the quarter ended October 1, 2021 primarily related to sales of assets in the Middle East and Europe. For the nine months ended O
Slide 43: Non-GAAP Reconciliations – Q3 2021 and Q3 2020
Non-GAAP Reconciliations – Q3 2021 and Q3 2020 APPENDIX 43
Slide 44: Non-GAAP Reconciliations – Nine Months Ended 2021 and 2020
Non-GAAP Reconciliations – Nine Months Ended 2021 and APPENDIX Nine Months Ended 2020 44
Slide 45: Non-GAAP Reconciliations – FY 2020, 2019 and 2018
Non-GAAP Reconciliations – FY 2020, 2019 and 2018 APPENDIX January 1, December 27, December 28, 2021 2019 2018 Net income Net income Net income (loss) (loss) (loss) attributable attributable attributable to Fresh Del to Fresh Del to Fresh Del Operating Monte Diluted Gross Operating Monte Diluted Gro
Slide 46: Reconciliation of EBITDA and Adjusted EBITDA – Q3 2021 and Q3 2020
Reconciliation of EBITDA and Adjusted EBITDA – Q3 2021 and APPENDIX Q3 2020 / Nine Months Ended 2021 and Nine Months Ended 2020 46
Slide 47: Reconciliations of Non-GAAP Financial Measures
APPENDIX FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Trailing Twelve Months Leverage Ratio Q3 2021 (U.S. dollars in millions) - Unaudited Trailing Twelve Months October 1, Q4 2020 Q1 2021 Q2 2021 Q3 2021 2021 Net income attributable to Fresh Del Monte
Slide 48: Reconciliation of EBITDA and Adjusted EBITDA – FY 2020, 2019, 2018
Reconciliation of EBITDA and Adjusted EBITDA – FY 2020, 2019, 2018 APPENDIX Year Ended January 1, 2021 December 27, 2019 December 28, 2018 Net income (loss) attributable to Fresh Del Monte Produce Inc. $ 49.2 $ 66.5 $ (21.9) Interest expense, net 20.7 24.3 22.7 Income tax provision 5.0 21.4 16.1 Dep
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