Oil-dri Corporation Of America · NYSE:ODC
Oil-dri Corporation Of America — Oil-Dri Corp of America — Shareholder Meeting (December 2021)
71 slides from Oil-dri Corporation Of America's shareholder meeting presentation, Dec 8, 2021
Slide 1: Annual Meeting of Stockholders Fiscal Year 2021
1 Annual Meeting of Stockholders Fiscal Year 2021
Slide 2: Introduction
2 Introduction Leslie Garber Manager, Investor Relations
Slide 3: Agenda
3 Agenda • Election of Directors & Other Proposals • Business Presentations & Financial Review • Questions & Answers
Slide 4: Election of Directors & Other Proposals
4 Election of Directors & Other Proposals Laura Scheland Vice President, General Counsel & Secretary
Slide 5: Proposals
Proposals Proposal No. 1: Election of Directors Proposal No. 2: Ratification of Appointment of Independent Auditor 5
Slide 6: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information Except for the historical information contained herein, certain of the matters discussed in this communication constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934,
Slide 7: Fiscal Year 2021
7 Fiscal Year 2021 Daniel S. Jaffee President & Chief Executive Officer
Slide 8: New Vice Presidents
New Vice Presidents 8
Slide 9: David Atkinson, Vice President, Corporate Controller
9 David Atkinson Vice President, Corporate Controller
Slide 10: Dave Atkinson
Dave Atkinson 10 • Joined Oil-Dri in July of 2021 • Seasoned accounting and finance professional with over 30 years of experience in international consumer products and manufacturing businesses • Joined us from Ferrara Candy Company where he recently served as Vice President, Corporate Controller •
Slide 11: Michelle Hueser, Vice President, Customer Service & Supply Chain
11 Michelle Hueser Vice President, Customer Service & Supply Chain
Slide 12: Michelle Hueser
Michelle Hueser 12 • Joined Oil-Dri in August of 1993 • 30 years of expertise in customer service management • Earned her BA from Stephens College • Held sales and operations management positions with Williams Sonoma prior to joining Oil-Dri • Michelle and her husband, Scott, enjoy supporting non-pr
Slide 13: W. Wade Robey, Vice President, Amlan Marketing & Product Development
13 W. Wade Robey, Ph.D. Vice President, Amlan Marketing & Product Development
Slide 14: Wade Robey
Wade Robey 14 • Joined Oil-Dri in February of 2021 • 30 years of success in a wide range of Ag & Industrial industries • BS in Ag Sciences at Auburn University • Masters in Avian Physiology at Auburn University • PhD in Animal Nutrition from Virginia Tech • Worked in a variety roles for multi-nation
Slide 15: Financial Results Fiscal Year 2021 & First Quarter Fiscal Year 2022
15 Financial Results Fiscal Year 2021 & First Quarter Fiscal Year 2022 Susan Kreh Chief Financial Officer
Slide 16: Net Sales (millions)
Net Sales (millions) $227 $241 $251 $266 $261 $262 $262 $266 $277 $283 $305 $0 $50 $100 $150 $200 $250 $300 $350 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 3.0% (FY 11 - FY 21) 16
Slide 17: Net Sales (millions)
Net Sales (millions) $227 $241 $251 $266 $261 $262 $262 $266 $277 $283 $305 $82 $0 $50 $100 $150 $200 $250 $300 $350 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 3.0% (FY 11 - FY 21) 17 FY 21 Q1 $76
Slide 18: Tons Sold (thousands)
Tons Sold (thousands) 869 844 821 877 836 795 767 742 758 755 783 0 100 200 300 400 500 600 700 800 900 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR -1.0% (FY 11 - FY 21) 18
Slide 19: Tons Sold (thousands)
Tons Sold (thousands) 869 844 821 877 836 795 767 742 758 755 783 209 0 100 200 300 400 500 600 700 800 900 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR -1.0% (FY 11 - FY 21) 19 FY 21 Q1 199
Slide 20: Net Sales Per Ton
Net Sales Per Ton $261 $285 $305 $304 $313 $330 $342 $359 $365 $375 $389 $200 $250 $300 $350 $400 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 4.1% (FY 11 - FY 21) 20
Slide 21: Net Sales Per Ton
Net Sales Per Ton $261 $285 $305 $304 $313 $330 $342 $359 $365 $375 $389 $394 $200 $250 $300 $350 $400 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 4.1% (FY 11 - FY 21) 21 FY 21 Q1 $383
Slide 22: Gross Profit Per Ton
Gross Profit Per Ton $58 $67 $77 $66 $69 $92 $91 $91 $80 $91 $83 $40 $50 $60 $70 $80 $90 $100 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 3.7% (FY 11 - FY 21) 22 FY12 – FY21 Adjusted for SG&A allocation to COGS
Slide 23: Gross Profit Per Ton
Gross Profit Per Ton $58 $67 $77 $66 $69 $92 $91 $91 $80 $91 $83 $66 $40 $50 $60 $70 $80 $90 $100 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 3.7% (FY 11 - FY 21) 23 FY 21 Q1 $95 FY12 – FY21 Adjusted for SG&A allocation to COGS
Slide 24: Net Income Per Ton
Net Income Per Ton $10 $7 $18 $10 $14 $17 $14 $11 $17 $25 $14 $0 $5 $10 $15 $20 $25 $30 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 3.4% (FY 11 - FY 21) 24
Slide 25: Net Income Per Ton
Net Income Per Ton $10 $7 $18 $10 $14 $17 $14 $11 $17 $25 $14 $3 $0 $5 $10 $15 $20 $25 $30 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 3.4% (FY 11 - FY 21) 25 FY 21 Q1 $20
Slide 26: Earnings Per Basic Common Share
Earnings Per Basic Common Share $1.36 $0.92 $2.25 $1.27 $1.73 $2.04 $1.60 $1.22 $1.82 $2.70 $1.61 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 1.7% (FY 11 - FY 21) 26
Slide 27: Earnings Per Basic Common Share
Earnings Per Basic Common Share $1.36 $0.92 $2.25 $1.27 $1.73 $2.04 $1.60 $1.22 $1.82 $2.70 $1.61 $0.08 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 1.7% (FY 11 - FY 21) 27 FY 21 Q1 $0.57
Slide 28: Paid Dividends Per Share
Paid Dividends Per Share $0.64 $0.68 $0.72 $0.76 $0.80 $0.84 $0.88 $0.92 $0.96 $1.00 $1.04 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 5.0% (FY 11 - FY 21) 28
Slide 29: Paid Dividends Per Share
Paid Dividends Per Share $0.64 $0.68 $0.72 $0.76 $0.80 $0.84 $0.88 $0.92 $0.96 $1.00 $1.04 $0.27 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 CAGR 5.0% (FY 11 - FY 21) 29 FY 21 Q1 $0.26
Slide 30: Significant Cash Outlays
Significant Cash Outlays 30 $14.7MM CapEx $7MM Dividends $2.7MM R&D $5.5MM Share Repurchases Total: $31.6MM FY 21 Total: $29.9MM FY 20 $18.8MM CapEx $7.2MM Dividends $2.5MM R&D $3.1MM Share Repurchases
Slide 31: Outstanding Debt (millions)
Outstanding Debt (millions) $33.3 $29.7 $25.9 $22.4 $18.9 $15.4 $12.2 $9.2 $6.1 $9.8 $8.9 $8.9 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Q1 31
Slide 32: Outlook
Outlook 32 • Continue to raise prices to offset inflationary cost pressures • Invest in growth opportunities, including lightweight cat litter and antibiotic alternative animal feed additives • Maintain distribution of quarterly dividend • Pursue acquisition opportunities
Slide 33: Supply Chain Review
33 Supply Chain Review Molly VandenHeuvel Chief Operating Officer
Slide 34: Supply Chain
Supply Chain 34
Slide 35: Supply Chain Turbulent Times
Supply Chain Turbulent Times Impacts 35 • Headwinds – Unexpected high volumes – Transportation – Labor shortages – Material supply constraints – Inflationary pressure • Impacts – On time service
Slide 36: Supply Chain Accomplishments
Supply Chain Accomplishments 36 • Significant cost savings projects completed • Mining and manufacturing investments – Capacity, sustainability, future growth • Inventory clean up • Continual improvement in quality, supported by consumer metrics
Slide 37: Success in Lightweight Litter: US and Canada
37 Success in Lightweight Litter: US and Canada Jessica Moskowitz Vice President & General Manager Consumer Products Division
Slide 38: Cat Litter: Retail & Wholesale Group Annual Net Sales
Cat Litter: Retail & Wholesale Group Annual Net Sales (millions) CAGR 9% (FY 18 - FY 21) $124.6 $135.5 $147.5 $161.3 $70 $90 $110 $130 $150 $170 FY 2018 FY 2019 FY 2020 FY 2021 38
Slide 39: Cat Litter: Retail & Wholesale Group Quarterly Net Sales
Cat Litter: Retail & Wholesale Group Quarterly Net Sales (millions) $30.8 $33.5 $29.7 $30.6 $32.4 $35.2 $34.1 $33.7 $36.4 $38.6 $41.0 $31.5 $40.8 $41.1 $39.9 $39.4 $43.9 $15 $20 $25 $30 $35 $40 $45 Q1 Q2 Q3 Q4 FY FY FY FY 2018 2019 2020 2021 FY FY FY FY FY 2018 2019 2020 2021 2022 FY FY FY FY 2018 2
Slide 40: Lightweight Clay Litter Overview
Lightweight Clay Litter Overview 40
Slide 41: Lightweight Litter: Benefiting People & The Planet
Lightweight Litter: Benefiting People & The Planet 41 Getting to the Store Getting onto Shelves Getting into Homes Consumer Usage Can fill a truck without hitting its weight limit, allowing for less trucks on the road and less CO2 emissions Unloading and stocking DCs and shelves requires less powerf
Slide 42: Total US Cat Litter Sales by Segment
42 Source: Nielsen AOD: xAOC + Pet Stores, L52W/E 10/09/21 Traditional Clumping Clay 66% Lightweight Clumping Clay 14% Non-Clumping Clay 9% Alternative 8% Crystals 3% Total US Cat Litter Sales ($2.6B), Latest 52 Weeks +6% -4% +4% Lightweight is delivering the fastest growth in clay litter
Slide 43: Total Canada Cat Litter Sales by Segment
43 Lightweight 50%Heavyweight 45% Alternative 3% Kits 1% Coarse 1% Total Canada Cat Litter Sales by Segment Source: Nielsen Marketrack, National Incl NFLD All Channels, 52WE 07/31/21, Value in $USD. Cat Litter + Kits. Lightweight has a 50% share in Canada Lightweight remains the fastest growing segm
Slide 44: Oil-Dri is the #2 Player in Lightweight Clay Litter
Oil-Dri is the #2 Player in Lightweight Clay Litter 44 Tidy Cats 55% Oil-Dri (Branded & Private Label) 26% Arm & Hammer 9% Fresh Step 7% All Other 3% Lightweight Clumping Clay Litter Sales ($368MM), Latest 52 Weeks Source: Nielsen AOD: xAOC + Pet Stores, L52W/E 10/09/21 +19% -1% +23% -1% +13% Oil-Dr
Slide 45: Cat's Pride Max Power
Cat’s Pride Max Power is our most powerful formulation yet Patented technology quickly absorbs and locks in odor-causing enzymes, stopping odor before it even starts. Combines the Power of Two Distinct Clays Locks Odors Instantly + 10-Day Odor Control Our Strongest Clumping Formulation 99% Dust Free
Slide 46: Introducing New UltraClean
Consumer Testing Showed Superior Performance vs. Leading Low Tracking Brand ULTRA LOW TRACKING AND 99% DUST FREE FOR CLEAN PAWS & HOME Introducing New UltraClean! 46
Slide 47: Engaging Animated Video Ad
Engaging Animated Video Ad 47
Slide 48: Digital Display Ads
Digital Display Ads LEARN MORE LEARN MORE
Slide 49: Social Ads & Videos
Social Ads & Videos 49
Slide 50: E-Commerce Continues to Deliver Strong Growth
E-Commerce Continues to Deliver Strong Growth • Expand product presence online • Continue to elevate content and improve conversion E-Commerce channel sales resulted in double digit increases FY2021 versus FY2020 50
Slide 51: Amlan Sales Update
51 Amlan Sales Update Fred Kao Vice President, Global Sales Amlan International 51
Slide 52: Recruiting Top Talent to Amlan Global
Recruiting Top Talent to Amlan Global W. Wade Robey, Ph.D. VP, Marketing and Product Development Jay Hughes Global Technical Director 52
Slide 53: Recruiting Top Talent to Amlan
Recruiting Top Talent to Amlan 53 LATAM APEC USA Heath Wessels North America Director of Sales Chuck Snipes Costal Account Manager Andres Soto Sales Manager Julio Aguila Sales Manager Dr. Kim Huang Regional Technical Manager Saksake Pacharadit Regional Sales Manager – South Asia Nguyen Hai Commercia
Slide 54: Recruiting Top Talent to Amlan China
Recruiting Top Talent to Amlan 54 China Dr. Harold Zhou – Amlan China Operational Director Dr. Michael Hua – Regional Technical Manager Sissi Fang – Office Manager/Sr. Marketing Specialist Teng Yingyun – Greater South China Sales Manager Dr. Wu Xing – Greater North China Sales Manager Dr. Luo Qiong
Slide 55: Countries with Issued Patents
15 Countries with Issued Patents Patent applications pending in other countries United States Hungary China Italy Indonesia Poland Korea Portugal Germany Spain Belgium Turkey France Russia England 55
Slide 56: FY2021: Growth in China
FY2021: Growth in China 56 New Regulation: Restrictions on Use of Antibiotics in Animal Feed Mitigation of COVID Cases in China (FY21 vs FY20) Annual Sales Growth (FY21 vs FY20) New Hires Key Distributors won Back 54% 2021 2020 10 3
Slide 57: Growth in APEC: Asia Pacific, Excluding China
57 Growth in APEC: Asia Pacific, Excluding China • APEC sales grew by 5% FY21 vs FY 20, despite Covid challenges ➢ Japan came online with strong sales in the antibiotic alternative market and pure mineral product sales remained strong in FY21 ➢ Taiwan and Thailand both seeing steady growth from a ye
Slide 58: Challenges: Latin America & Middle East
Challenges: Latin America & Middle East 58 • Latin America: ➢ Covid negatively impacted the demand for exports to the EU and Middle East from Brazil ➢ Covid reduced the demand of consumption greatly in Latin America ➢ Restricted business travel and tourism • Middle East: ➢ Covid was the main concern
Slide 59: Challenges: USA
Challenges: USA 59 65.9 62.6 63.2 66.3 67.2 68.4 72.6 76.9 87.5 94.7 93.1 90.7 90.2 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Wholesale Broiler Composite in the USA (cents/pound) Source: USDA • Very strong animal protein price reported in US in FY21 • With new team in place for less than 6 months, we esta
Slide 60: Product Outlook
Product Outlook 60 • Steady sales in Brazil • Continue to build steam in Brazil • Added new accounts in Mexico, China, Philippines and increased sales in Taiwan and Vietnam. • Continue to do well in Mexico • Added new buyers in China We recently added three key accounts in three different countries.
Slide 61: European Union
European Union 61 • EU passed regulations to be effective January of 2022 that ban the preventative use of antibiotics which apply to exports to the EU by non-EU countries. • In the past, EU allowed frozen products (imported) to have antibiotics. • As a result, Amlan sales to Brazil increased and we
Slide 62: Amlan's Opportunity & Portfolio Positioning
62 Amlan’s Opportunity & Portfolio Positioning W. Wade Robey, Ph.D. Vice President, Amlan Marketing & Product Development 62
Slide 63: RA Lc AMERICA
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Slide 64: Amlan's Focus For Marketing & New Product Development
64 Amlan’s Focus For Marketing & New Product Development Create value and improve the sustainability of animal production leveraging Amlan’s unique mineral and pursuing the opportunities it offers to develop novel natural ingredient solutions to support optimal animal health, immunity and production
Slide 65: The need for innovative natural product solutions
65 The need for innovative natural product solutions that will support animal health and ensure the sustainability of industrialized animal production necessary to feed a hungry world. Opportunity as Subtherapeutic Antibiotics are Removed Production Economics The European experience informs us of th
Slide 66: What Do Food Producers Require?
66 What Do Food Producers Require? Products with understood MOAs*, proven performance, excellent handling and shelf-life characteristics, feed stability, manageable rates of addition, and a consistent return for their investment. Maintain or Improve Performance Metrics Positive Impacts on Gut Health
Slide 67: Amlan's Commercial Targets
67 Amlan’s Commercial Targets Monogastrics – Poultry & Swine Ruminants – Dairy & Beef Cattle Companion Animals – Canine & Feline Aquaculture – Fishes & Crustaceans Our Clay is the Differentiating Advantage Taking advantage of our mineral’s unique chemistry, various MOAs, and potential for broad appl
Slide 68: Global Sales of Antibiotic Growth Promoters
68 Global Sales of Antibiotic Growth Promoters Estimated at ≈$4B USD* In the US alone, >6.1 million kilograms of antibiotics were sold in 2019 with an estimate of: The accelerating decline in poultry antibiotic sales - a 62% reduction since 2016 - reflects a consumer-driven movement that has transfo
Slide 69: Pricing & Positioning Strategy for Value
69 Pricing & Positioning Strategy for Value Amlan will develop and commercialize specialty products delivering premium value to end- users Priced based upon a value proposition that delivers a solid ROI to the end-user and Amlan Broad Portfolio Offerings Blended with our clay Synergistic Products In
Slide 70: Multi-Billion Dollar Addressable Global Market
70 Multi-Billion Dollar Addressable Global Market Cross species application needed • Poultry Industry rapidly removing AGPs* – other species are following • Unique opportunity to target Companion Animal rations • Target a “base level” of our clay mineral in all feeds Products that can provide a wide
Slide 71: Q&A
71 Q&A Please submit questions in the “Ask a Question” field of the webcast. Stockholder questions or remarks must be relevant to the meeting and pertinent to the matters properly brought before the meeting. Please see Rules of Conduct for more information.
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