Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Investor Presentation (November 2014)
33 slides from Del Monte Pacific's investor presentation, Nov 3, 2014
Slide 1: Corporate Presentation
Corporate Presentation Del Monte Pacific Ltd A Global Heritage Brands Company 3 November 2014
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Del Monte Pacific Limited and its subsidiaries (the “Group”) that are of a forward looking nature and are therefore based on management’s assumptions about future developments. Such forward looking statements are typically
Slide 3: Agenda
Agenda I. Our Vision II. Overview III. Our History IV. Del Monte Foods Acquisition V. Our Brands VI. Our Markets A. USA B. Philippines C. India D. Asia and Middle East – under S&W E. Global – Private Labels/OEM VII. Financial Overview VIII. Corporate Governance IX. Sustainability X. Investment Merit
Slide 4: Our Vision
Our Vision To be one of the fastest growing global branded food and beverage companies Top 5 ASEAN Consumer Branded Companies Rank Company 2013 Sales (US$bn) 1 Indofood Sukses 5.6 2 Thai Beverage 5.1 3 Thai Union Frozen 3.7 4 San Miguel Purefoods 2.4 Del Monte Pacific (post Feb 2014 Del Monte Foods
Slide 5: Overview
Overview • DMPL is one of the largest and most well-known marketers of premium quality food products globally • Exclusive rights to two premium heritage brands in certain geographies and product categories: Del Monte and S&W • Dual listed in Singapore (since August 1999) and Philippines (since June
Slide 6: Our History
Our History More than 120 years of brand and market leadership 2013 2007 • DMPL dual-listed on 1999 DMPL bought the S&W the Philippine Stock • Del Monte Pacific Limited brand from DMFI for Exchange (DMPL) incorporated as Asia and EMEA • NPL down to 67% stake parent of Philippine company • Listed on
Slide 7: Our Key Brands
Our Key Brands • Rights to premium brand for the USA, South America, Philippines, Indian subcontinent and Myanmar -- for packaged products • Rights to premium brand globally except Australia and New Zealand -- for both packaged and fresh products 7
Slide 8: Our Brand Ownership
Our Brand Ownership Heritage Brands : * 1892 1896 1914 1923 Nutritious as fresh Finest quality Italian heritage Premium ingredients All natural Healthy Premium quality Taste of home United States South America North and South America Central America & Del Monte Caribbean Panamerican
Slide 9: Acquisition of Del Monte Foods
Acquisition of Del Monte Foods 9
Slide 10: Status of US DMFI Acquisition
Status of US DMFI Acquisition • Completed on 18 February 2014 • Purchase price of US$1.675bn, subject to working capital adjustments • Financed by: o Debt: US$970m LBO loans at DMFI o Equity: US$705m (US$630m bridge loans, US$75m equity) • Bridge loans to be refinanced in FY2015 with: o Preference s
Slide 11: Bringing the Family Together
Bringing the Family Together Unites ownership of the iconic Del Monte brand across the US, South Del Monte Pacific America, Philippines, Indian subcontinent and Myanmar Provides DMPL access to world’s leading packaged food market and broad US distribution platform Significant value creation opportun
Slide 12: DMFI-DMPL Opportunities
DMFI-DMPL Opportunities Opportunities in new products, channels, markets, and cost savings Long-term Mid-term 1. New products in USA Near-term 1. New products in USA 2. Market: South American 2. Channel: Hispanic business markets 1. Product/Market: Cross selling (USA to Asia and 3. Cost: Outsourcing
Slide 13: Our Markets
Our Markets Del Monte
Slide 14: USA – Leading Brands and Market Position
USA – Leading Brands and Market Position • Four brands used: iconic Del Monte brand, and the well-known Contadina, S&W, and College Inn brands • #1 canned fruit and vegetable marketer in the US and maintains strong positions in the canned tomatoes and broth categories Category Market Shares in the U
Slide 15: USA – Market Shares
USA – Market Shares Shelf-Stable and Canned Vegetables Refrigerated Fruit Canned Tomato Products Broth 15
Slide 16: USA - Del Monte is 3rd Center-of-Store Brand
USA - Del Monte is 3rd Center-of-Store Brand Source: Company, Euromonitor Notes: 1. Reflects top brands by retail sales generated in the Canned/Preserved Food, Dinner Mixes, Dried Processed Food, Oils and Fats, Sauces, Dressings & Condiments and Spreads categories; excludes bakery, refrigerated and
Slide 17: USA - Sales Breakdown
USA - Sales Breakdown For Fiscal Year 2013 ending April, DMFI had sales of US$1.8bn 2013 Net Sales Breakdown by Brand 2013 Net Sales Breakdown by Customer Private Label/Others1 1 24% Others 51% 10% ² 8% 7% ¹ Private label sales contributed mainly by Walmart ² Sam’s is a chain under the Walmart group
Slide 18: USA - Products
USA - Products Sales Split FY2013: 40% Packaged Fruit, 30% Packaged Vegetable 30% Culinary (Packaged Tomato - Sauces, Ketchup; Broth) 18
Slide 19: USA – Production and Supply Chain
USA – Production and Supply Chain • DMFI sources vegetables and fruits from growers, farmers and cooperatives that operate mainly in the US • DMFI processes its products in 14 facilities: 11 across the US, 2 in Mexico and 1 in Venezuela 19
Slide 20: USA - Experienced Management
USA - Experienced Management CEO CFO Operations Nils Lommerin Dave Meyers Dave Withycombe 25 Years 35 Years 39 Years Industry Industry Industry Experience Experience Experience Legal R&D Human Resources Bill Sawyers Scott Butler Connie Carothers 9 Years 39 Years 28 Years Industry Industry Industry E
Slide 21: Philippines – Brands and Market Share
Philippines – Brands and Market Share • Predominantly uses brand • Market leader in a number of categories: o Canned pineapple: 82% o Canned mixed fruit: 75% o Canned RTD juices: 92% o Tomato ketchup: 87% o Tomato sauce: 79% o Spaghetti sauce: 51% (Nielsen Retail Index, YTD April 2014) • Philippines
Slide 22: Philippines - Products
Philippines - Products Sales Split CY2013: 38% Beverage, 38% Culinary (Sauces, Ketchup, Pasta), 24% Packaged Fruit 22
Slide 23: Philippines – Integrated Pineapple Operations
Philippines – Integrated Pineapple Operations Manage consistency of quality, reliability of supply and stability of cost Plantation Cannery Fresh Packhouse Ocean Port ~23,000 ha. of Cannery capacity of State-of-the-art fresh Ocean port integrated plantation in the 700,000 tons is ½ hr cold storage a
Slide 24: India (FieldFresh JV with Bharti)
India (FieldFresh JV with Bharti) • Acquired 40% of FieldFresh in September 2007 • Stake increased to 47% via capital calls Voting control: 50% Bharti, 50% DMPL • Vision: develop the Indian market for Del Monte branded packaged products • In Dec 2010, opened a new facility near Bangalore to produce
Slide 25: India - Products
India - Products Sales Split CY2013: 52% Culinary (Ketchups, Sauces, Mayo), 19% Italian Range (Olive Oil, Olives, Pasta), 17% Packaged Fruit and Vegetable, 12% Beverage 25
Slide 26: Asia and Middle East - S&W brand
Asia and Middle East - S&W brand • Acquired the brand in November 2007 • Exceptional quality premium canned fruit and vegetable products: originated in USA in 1896 • Brand is extendable to other packaging formats, and to fresh produce, an excellent platform for global expansion • Asset light strateg
Slide 27: Asia and Middle East – S&W Products
Asia and Middle East – S&W Products Sales Split CY2013: 56% Fresh Pineapple, 27% Packaged Fruit, 17% Others t 27
Slide 28: Global – Private Labels/OEM
Global – Private Labels/OEM DMPL’s branded business is more than 80% of sales. The following are the segments of the non-branded business: Export Markets Customers Products USA Private labels Packaged vegetable, fruit and tomato Canada Del Monte brand Packaged fruit and pineapple owners juice concen
Slide 29: Financials, Investment Merits
Financials, Investment Merits 29
Slide 30: Financial Overview
Financial Overview • DMPL recently aligned its fiscal year with DMFI, ending April instead of December • January-April 2014 Transition Period and 1Q FY2015 (May-July 2014) results were impacted by acquisition related expenses hence the net loss of US$42.8m and US$21.9m, respectively • FY2015 is a tr
Slide 31: Corporate Governance
Corporate Governance • Received a total of 8 awards between 2010-2014 from the Singapore Corporate Awards: Best Managed Board Best Chief Financial Officer Best Investor Relations Best Annual Report • Received the Corporate Governance Award (Runner-Up) from SIAS in October 2014 • Ranked 19th
Slide 32: Sustainability
Sustainability • Waste-to-energy project underway – to be operational in Jan-Mar 2015, and expected to supply 60% of the Group’s cannery power requirements • Developed a framework for stakeholder relations team to identify business issues with stakeholder issues • Del Monte Foundation partnered with
Slide 33: Investment Merits
Investment Merits Solid Fundamentals Growth Drivers • Global brand footprint with well-known premium • DMPL-DMFI opportunities (slide 12) Del Monte and S&W brands • Strong legs in USA and Philippines with highly • Long brand heritage of more than 120 years cash generative businesses to: • Strong loc
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