The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — CAGNY Conference 2024
96 slides from The J.m. Smucker's conference presentation, Feb 21, 2024
Slide 1: CAGNY Conference 2024
THE JM. SMUCKER Co CONFERENCE 2024
Slide 2: Mark Smucker
MARK SMUCKER Chair of the Board, President and Chief Executive Officer
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows, that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from any future results, perf
Slide 4: Business Update and Financial Update
MARK SMUCKER TUCKER MARSHALL Chair of the Board, President Chief Financial Officer and Chief Executive Officer BUSINESS UPDATE FINANCIAL UPDATE
Slide 5: Today's Themes
OUR STRONG RESULTS TODAY’S SUSTAINED MOMENTUM THEMES ACROSS THE PORTFOLIO PORTFOLIO RESHAPE HAS STRENGTHENED OUR COMPANY LEADING BRANDS IN ATTRACTIVE CATEGORIES
Slide 6: A Focused Portfolio
A FOCUSED PORTFOLIO FY20 FY24 PRO FORMA* % U.S. Retail Net Sales % U.S. Retail Net Sales Other Other Divested Dog Food Businesses Sweet Baked Snacks Coffee Coffee Cat Food Cat Food Pet Snacks Pet Spreads Spreads Snacks Frozen Frozen Handheld Handheld *ADJUSTED FOR DIVESTED BUSINESSES AND INCLUDES A
Slide 7: Our Vision Guides our Strategy
OUR VISION Guides our Strategy Engage, delight and inspire consumers by building brands they love and leading in growing categories 7
Slide 8: Portfolio of Leading Brands
COFFEE Portfolio of Leading BRANDS FROZEN HANDHELD & SPREADS 95% of U.S. Retail Sales from categories where we hold the #1 or #2 PET SNACKS & CAT FOOD branded position STRONG BRAND HEALTH SWEET BAKED SNACKS Majority of Portfolio Growing or Maintaining Share SOURCE: SMUCKER INTERNAL IRI MULTI-OUTLET
Slide 9: Our Categories
OUR CATEGORIES COFFEE FROZEN HANDHELD PET SNACKS SWEET BAKED & SPREADS & CAT FOOD SNACKS 9
Slide 10: Strategic Priorities
STRATEGIC PRIORITIES ACHIEVE OUR DELIVER OUR INTEGRATE & FINANCIAL CORE BUSINESS DELIVER HOSTESS ASPIRATIONS GROW VOLUME ALIGN SYSTEMS & PROCESSES TRANSFORMATION ACHIEVE COST SYNERGIES & OPERATE WITH EXCELLENCE COST DISCIPLINE GROWTH AMBITIONS PRIORITIZE RESOURCES NURTURE A UNIFIED CULTURE CASH GENE
Slide 11: Key Growth Platforms
KEY GROWTH PLATFORMS Coffee Portfolio & Expansion in Liquid Coffee Uncrustables Frozen Sandwiches ® Dog Snacks & Cat Food Sweet Baked Snacks 11
Slide 12: U.S. Retail Coffee
U.S. RETAIL COFFEE $2.7B INSTANT 7% FY23 NET SALES PREMIUM 15% MAINSTREAM 47% ONE CUP 30% NOTE: AMOUNTS MAY NOT ADD DUE TO ROUNDING. 12
Slide 13: #1 At-Home Coffee Manufacturer
#1 AT-HOME COFFEE MANUFACTURER 3 of top 7 26% Share of Market coffee brands SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED DECEMBER 31, 2023. 13
Slide 14: Portfolio Positioned for Growth
PORTFOLIO POSITIONED FOR GROWTH KEY GROWTH DRIVERS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ K-Cup Pods ® Continuing our expansion into the growing liquid segment 14
Slide 15: Dunkin' at Home
DUNKIN’ AT HOME ® O P P O RT U N I T Y TO I N C R E A S E D UA L U S E R S * ® *INDIVIDUALS WHO BUY AT DUNKIN’ RESTAURANTS AND FOR AT-HOME OCCASIONS. 15
Slide 16: Dunkin' Seasonal & Cold
DUNKIN’ SEASONAL & COLD ® #2 IN SEASONALS CATEGORY ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 2023 CONSUMER TAKEAWAY +30% DUNKIN’ COLD ® ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ SINGLE-SERVE, ROAST & GROUND AND SHELF-STABLE CONCENTRATES 16 SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS EN
Slide 17: Expect to Reach $1 Billion Annual Net Sales
Expect to reach annual net sales $1 BILLION of in the next 5 years 2-3% Annual Growth 17
Slide 18: Café Bustelo
CAFÉ BUSTELO ® 7TH LARGEST BRAND IN AT-HOME COFFEE ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ #1 Espresso Coffee #1 Latin Coffee SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED DECEMBER 31, 2023. 18
Slide 19: Multi-Serve Ready-to-Drink
MULTI-SERVE READY-TO-DRINK Available in the refrigerated aisle this May 19
Slide 20: On Pace to Exceed $300M in Net Sales
ON PACE TO EXCEED $300M IN NET SALES THIS FISCAL YEAR Expect to reach annual net sales $400M of in the next 3 years High-Single-Digit Annual Growth 20
Slide 21: #1 At-Home Coffee Brand
#1 At-Home Coffee Brand in volume share Embracing the Brand’s Heritage through OUR BOLD MARKETING CAMPAIGN SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED JANUARY 29, 2023. SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED DECEMBER 31, 2023. 21
Slide 22: Video Commercial Playing in Room
Video Commercial Playing in Room 22
Slide 23: Nationwide Taste Test
NATIONWIDE TASTE TEST 60% Preferred Folgers Black Silk ® C O M PA R E D TO 35% Chose the Competitor #1 SELLING DARK ROAST CANISTER SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED DECEMBER 31, 2023. 23
Slide 24: K-Cup Pods
K-CUP PODS ® Expect annual net sales $1 BILLION of in next 5 years Mid-Single-Digit Annual Growth 24
Slide 25: Leveraging Our Powerful Brands
LEVERAGING OUR POWERFUL BRANDS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Deep expertise in coffee sourcing, roasting and category advisership ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 25
Slide 26: U.S. Retail Frozen Handheld & Spreads
U.S. RETAIL FROZEN HANDHELD & SPREADS TOPPINGS & SYRUPS $1.6B 5% FY23 PRO FORMA NET SALES* FRUIT SPREADS 22% PEANUT BUTTER 38% FROZEN HANDHELD 35% *EXCLUDES $32 MILLION IN NET SALES RELATED TO THE DIVESTED SAHALE SNACKS® BUSINESS. 26
Slide 27: Portfolio Composition
PORTFOLIO COMPOSITION TODAY FUTURE % Net Sales % Net Sales 27
Slide 28: Uncrustables Growth
UNCRUSTABLES GROWTH ® $800M $686M 19% 10-YEAR CAGR $511M ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ ON TRACK $220M $800M NET SALES IN FY24 $136M FY14 FY17 FY22 FY23 FY24E 28
Slide 29: Fueling Future Growth
FUELING FUTURE UNLOCKING GROWTH GROWTH IN WET EXPECTED ANNUAL NET SALES ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ FY24 FY25 FY26 $800M +$100M +$100M Expect to grow to $1 BILLION annual net sales in FY26 29
Slide 30: A Category Leader
A CATEGORY LEADER 9x Category Growth Rate #1 #1 SKU in Freezer Aisle #1 Velocity Growth Rate + 21% CONSUMER 3x Frozen Category Average TAKEAWAY SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED JANUARY 28, 2024. 30
Slide 31: Growing Household Penetration
GROWING H O U S E H O L D P E N E T R AT I O N Expand Distribution - New channels and geographies - Future expansion to convenience stores Increase Awareness - 1st national advertising campaign 31
Slide 32: Video Commercials Playing in Room
Video Commercials Playing in Room 32
Slide 33: Upcoming Innovation: Raspberry Uncrustables
UPCOMING INNOVATION Raspberry Uncrustables ® A FLAVOR FOR EVERY DAY OF THE WEEK! 33
Slide 34: Peanut Butter & Fruit Spreads
PEANUT BUTTER & FRUIT SPREADS OVER 70% of Households with Millennial Parents Eat Peanut Butter or Fruit Spreads Each Week SOURCE: SMUCKER INTERNAL RESEARCH 2023 SPREADS ONLINE SURVEY. 34
Slide 35: The Strength of Jif
THE STRENGTH OF JIF ® # 1IN THE CATEGORY Leader in Leader in HOUSEHOLD VOLUME PENETRATION VELOCITY SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED JANUARY 28, 2024. 35
Slide 36: Video Commercial Playing in Room
Video Commercial Playing in Room 36
Slide 37: Jif Innovation
JIF INNOVATION JIF PEANUT BUTTER & CHOCOLATE ® THE PERFECT MERGER OF PEANUT BUTTER & THE FLAVOR OF CHOCOLATE Launching this 50% less sugar than the leading SUMMER hazelnut spread with cocoa See Nutrition Information for Total Fat and Saturated Fat content. 37
Slide 38: Peanut Butter and Chocolate: The Perfect Merger
PEANUT CHOCOLATE THE PERFECT BUTTER FLAVORED MERGER + = SPREADS Plant-Based Delicious Familiar Flavor Nostalgic ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ OVER 70% OF PEANUT BUTTER BUYERS ARE NOT PURCHASING A CHOCOLATE-FLAVORED SPREAD TODAY SOURCE: SMUCKER INTERNAL MULTI-OUTLET
Slide 39: Meeting Consumer Needs
MEETING CONSUMER NEEDS SIGNIFICANT WHITE SPACE WITHIN OUR FROZEN HANDHELD & SPREADS BUSINESS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Continue to expand usage occasions & capitalize on growth in consumer snacking 39
Slide 40: U.S. Retail Pet Foods
U.S. RETAIL PET FOODS $1.5B FY23 PRO FORMA NET SALES* CAT FOOD 39% PET SNACKS 61% *EXCLUDES $1.5 BILLION IN NET SALES RELATED TO THE DIVESTED PET FOOD BRANDS. 40
Slide 41: The Pet Population Continues to Grow
THE PET POPULATION CONTINUES TO GROW U.S. Dog & Cat Population (in Millions) 89.8 92.0 #1 87.1 CENTER STORE CATEGORY 84.6 89.2 88.2 81.2 86.7 79.9 84.1 78.9 79.9 DOG HH +16% 76.5 78.4 CAT HH +18% 2018-2023 DOLLARS 2017 2018 2019 2020 2021 2022 2023 +MSD % 2023-2027 CATS DOGS SOURCE: EUROMONITOR, FUL
Slide 42: #1 in Dog Snacks
#1 IN DOG SNACKS 21% Share of Market SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED JANUARY 28, 2024. 42
Slide 43: Strong Milk-Bone Momentum
STRONG MILK-BONE MOMENTUM ® CONSISTENTLY OUTPACING THE CATEGORY Dollar Share Growth for INNOVATION 10 CONSECUTIVE SHARE LEADER QUARTERS Each of the Last 3 Years SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 13 AND 52 WEEKS ENDED DECEMBER 31, 2023. 43
Slide 44: Video Commercial Playing in Room
Video Commercial Playing in Room 44
Slide 45: Growth in Special Occasions
GROWTH IN SPECIAL OCCASIONS Inspiring shoppers to celebrate their pets with seasonal & special occasion offerings 45
Slide 46: Milk-Bone
MILK-BONE ® Biscuit Sales Grew OVER 40% THE PAST 4 YEARS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ REFRESHED PACKAGING INCREASED MARKETING ELEVATED INNOVATION Reinvigorates Driving cultural relevancy with Expanding treating occasions 100+ year old brand bre
Slide 47: Expanding Innovation
EXPANDING INNOVATION Leveraging Biscuit Success in Long-Lasting Chews and Soft & Chewy Segments ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 47
Slide 48: Upcoming Innovation
UPCOMING INNOVATION The Delicious Taste of Combining the REAL Peanut Butter #1 Dog Treat and in a Convenient Bite! #1 Peanut Butter Brands L A U N C H I N G L AT E R T H I S Y E A R SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED JANUARY 28, 2024. 48
Slide 49: Dog Snacks Priorities
DOG SNACKS PRIORITIES Maximize Everyday Treating Launch Incremental Increase Household Penetration with Core Offerings Innovation with New Treating Occasions 49 49
Slide 50: Expect to Reach $1B Annual Net Sales
Expect to reach annual net sales $1B of in the next 2 years 3% Annual Growth 50
Slide 51: #1 in Dry Cat Food
#1 IN DRY CAT FOOD Leader in Household Penetration & Volume Share SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 4 AND 52 WEEKS ENDED JANUARY 28, 2024. 51 51
Slide 52: Meow Mix Growth Drivers
MEOW MIX GROWTH DRIVERS ® BREAKTHROUGH ELEVATE EXPAND MARKETING CORE OFFERINGS INNOVATION Driving demand, relevance Optimizing assortment to meet Increase dollars & & awareness customer & consumer needs margin per occasion
Slide 53: Dog Snacks & Cat Food Segment Profit Margin
DOG SNACKS & CAT FOOD SEGMENT PROFIT MARGIN ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ EXPANSION OVER NEXT THE 2 YEARS Improved Operating Growth in High Margin Exit Co-Manufacturing Environment for Dog Snacks of Divested Brands Cat Food 53 53
Slide 54: Sweet Baked Snacks
SWEET BAKED SNACKS PRIVATE LABEL OTHER COOKIES SNACK CAKES BREAKFAST DONUTS CY23 Net Sales* 54 *INCLUDES SALES REPORTED UNDER PREVIOUS OWNERSHIP.
Slide 55: Video Commercial Playing in Room
Video Commercial Playing in Room 55
Slide 56: Acquisition Strengthens Our Financial Profile
ACQUISITION STRENGTHENS OUR FINANCIAL PROFILE Will contribute Significant strong top-line growth synergies Accretive to Fiscal year 2025 margins & earnings growth net sales growth ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Snacking is one of the largest & fastest growin
Slide 57: Key Consumer Eating Occasions
5 KEY CONSUMER EATING OCCASIONS MORNING LUNCHBOX AFTERNOON IMMEDIATE EVENING SWEET START SNACK REWARD CONSUMPTION REWARD $ Market $7.1B $7.9B $16.3B $10.8B $27.2B 3-year CAGR 7.3% 8.3% 8.1% 9.8% 7.5% 20-23 $69 Billion Addressable Market SOURCE: MCKINSEY ANALYTICS WITH NIELSEN POS DATA THROUGH DECEM
Slide 58: Consumer Snacking
CONSUMER SNACKING 50% eat 3 or more snacks a day Sweet and indulgent snacks are growing faster than better for you snacks SOURCE: CIRCANA 2023 SNACKING SURVEY. 58
Slide 59: Key Growth Drivers
KEY GROWTH DRIVERS Expect long-term annual net sales ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ growth of approximately 4% DRIVING BASE BREAKTHROUGH EXPAND REVENUE E-COMMERCE VELOCITY INNOVATION DISTRIBUTION GROWTH ACTIVATION MANAGEMENT 59
Slide 60: Base Velocity Growth
BASE VELOCITY GROWTH Increasing advertising by 50% to drive greater household penetration Gen Z & Millennial Millennial Parents Older Adults Consumers On-the-Go Juggling it All In their Prime 60
Slide 61: Family Snacking Behaviors
FAMILY SNACKING BEHAVIORS Improving Brand Awareness & Attracting New Families Over 50% 82% of of Americans inherited Millennial Parents snacking habits are interested in finding from their parents new snacks SOURCE: APRIL 2021 ONEPOLL SURVEY AND SNACKING ATTITUDES SURVEY JANUARY 2024. 61
Slide 62: Innovation Driving Growth
INNOVATION DRIVING GROWTH #1 in Innovation 9 of the Top 20 New Items in SBG Category #3 #4 #6 SOURCE: SMUCKER INTERNAL TOTAL AOC+CONVENIENCE SHARE REPORT 52 WEEKS ENDED DECEMBER 31, 2023. 62
Slide 63: Upcoming Innovation Milk-Bone Biscuits
UPCOMING INNOVATION MILK-BONE BISCUITS ® New Products, Flavors & Seasonal Offerings Aligned to Consumer Trends ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 63 63
Slide 64: Channel & TDP Expansion Opportunities
CHANNEL & TDP EXPANSION OPPORTUNITIES RETAIL AWAY FROM HOME Expand points of distribution in Expand distribution at: Grocery, Mass & Club: Universities On-Shelf Travel In-Aisle Displays Lodging At Checkout Entertainment Venues Leveraging our strategic partnerships & commercial capabilities 64
Slide 65: Revenue Growth Management & Price Pack Architecture
REVENUE GROWTH MANAGEMENT & PRICE PACK ARCHITECTURE Optimize Sales and Mix CHANNELS PACK SIZES OCCASIONS 65
Slide 66: Accelerate Growth for E-Commerce
ACCELERATE GROWTH FOR E-COMMERCE ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Leverage our capabilities & expertise 66
Slide 67: Sweet Baked Snacks Multiple Growth Initiatives
SWEET BAKED SNACKS MULTIPLE GROWTH INITIATIVES ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ ACROSS SNACKING OCCASIONS Morning Sweet Start | Lunchbox Snack | Afternoon Reward | Immediate Consumption | Evening Reward 67
Slide 68: Company Recognitions
COMPANY RECOGNITIONS Supporting our Thriving Together Agenda HUMAN RIGHTS CAMPAIGN CORPORATE EQUALITY 100 AWARD #2 COMPANY IN THE U.S. U.S. ENVIRONMENTAL PROTECTION 2024 CAMPUS FORWARD AGENCY GREEN POWER AWARD WINNER PARTNERSHIP TOP 100 68
Slide 69: Strategic Priorities
STRATEGIC PRIORITIES ACHIEVE OUR DELIVER OUR INTEGRATE & FINANCIAL CORE BUSINESS DELIVER HOSTESS ASPIRATIONS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Positioned to deliver long-term growth and increase shareholder value 69
Slide 70: Tucker Marshall
TUCKER MARSHALL Chief Financial Officer
Slide 71: A Strong Start to the Fiscal Year
A STRONG START TO THE FISCAL YEAR SALES AND EARNINGS GROWTH ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Driven by demand for our iconic brands, focus on superior execution and disciplined cost management 71
Slide 72: Fiscal 2024 Third Quarter Earnings Q&A Session
FISCAL 2024 THIRD QUARTER EARNINGS Q&A SESSION Tuesday, February 27, 2024 | 9:00 a.m. EST 72
Slide 73: Financial Priorities
FINANCIAL PRIORITIES CREATE LONG-TERM SHAREHOLDER VALUE Active & Consistent Continuous Focus Transparent Financial on Productivity Communication Execution & Cost Control Successful Prioritization of Balanced Capital Integration of Highest-Return Deployment Hostess Opportunities Model 73
Slide 74: Total Shareholder Return
TOTAL SHAREHOLDER RETURN 3-Year 5-Year 10-Year DELIVERING CAGR CAGR CAGR LONG-TERM SJM 6% 7% 6% GROWTH AND SHAREHOLDER Peer Group Avg. 0% 5% 5% VALUE S&P Packaged Foods 2% 4% 4% S&P 500 10% 14% 13% NOTE: DATA AS OF FEBRUARY 16, 2024. ASSUMES DIVIDENDS ARE REINVESTED. PEER GROUP INCLUDES CAG, CPB, GI
Slide 75: Long-Term Growth Targets
LONG-TERM GROWTH TARGETS NET SALES LSD ADJUSTED OPERATING INCOME MSD ADJUSTED EPS HSD TOTAL SHAREHOLDER RETURN 10+% 75
Slide 76: Our Long-Term Objectives
OUR LONG-TERM OBJECTIVES ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙A ∙ ∙ ∙steady, ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ compelling ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙and ∙ ∙ ∙ ∙ ∙ ∙compounding ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙algorithm ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ DIVIDENDS SHARE REPURCHASE & DEBT REPAYMENT OPERATING MARGIN EXPANSION 10%+ HS
Slide 77: Net Sales
NET SALES Strategic investments Portfolio reshaping activities LOW-SINGLE-DIGIT Percentage Growth Projected category growth 77
Slide 78: Key Growth Platforms
KEY GROWTH PLATFORMS Coffee Growth Sweet Baked Smucker ’s ® Milk-Bone ® Brands, K-Cup® Snacks Uncrustables ® & Meow Mix ® & Liquid Coffee Segment 78
Slide 79: Adjusted Operating Income
ADJUSTED Improved volume/mix OPERATING Benefits from transformation efforts INCOME Realization of synergies Mitigation of stranded overhead MID-SINGLE-DIGIT Supply chain improvements Percentage Growth 79
Slide 80: Volume/Mix Growth
VOLUME/MIX GROWTH DIVESTED MARGIN PRIORITIZE LOW-MARGIN ACCRETIVE FAST GROWTH BUSINESSES ACQUISITION PLATFORMS Coffee | Uncrustables® | Pet Snacks 80
Slide 81: Transformation Workstreams
TRANSFORMATION WORKSTREAMS OPERATIONS SUPPLY PROCUREMENT DESIGN SALES CHAIN TO VALUE SG&A NET REVENUE MARKETING ACQUISITION STRANDED OPTIMIZATION SYNERGIES OVERHEAD 81
Slide 82: Acquisition Synergies
ACQUISITION SYNERGIES $100M $100M Annual Cost Synergies by end of FY26 $50M 25% Gross Margin 75% SG&A FY25 FY26 82
Slide 83: Profit Improvement
PROFIT IMPROVEMENT Mitigate Moderation Improved Stranded of Supply Chain Overhead Cost Inflation & Manufacturing 83
Slide 84: Adjusted Earnings Per Share
ADJUSTED EARNINGS Capital Deployment Model Drives Growth PER SHARE Debt Paydown | Share Repurchases HIGH-SINGLE-DIGIT Percentage Growth 84
Slide 85: Balanced Capital Deployment Model
BALANCED CAPITAL DEPLOYMENT MODEL Capital Dividends & Expenditures Share Repurchases CASH FROM OPERATIONS 50% 50% Strategic Debt Investments Repayment 85
Slide 86: Capital Expenditures
CAPITAL EXPENDITURES $610M LONG-TERM $477M OBJECTIVE $418M 3.5% OF NET SALES $307M $269M NEAR TERM ELEVATION DUE TO UNCRUSTABLES ® CAPACITY EXPANSION FY20 FY21 FY22 FY23 FY24E FY25E % of NS 3.4% 3.8% 5.2% 5.6% 7.4%* >3.5% *NOTE: BASED ON MIDPOINT OF FY24 NET SALES GUIDANCE PROVIDED ON DECEMBER 5, 20
Slide 87: Debt Profile
DEBT PROFILE Maintain Investment Grade Debt Rating 3.0x 2.5x - 3.0x Net Debt to EBITDA by end of FY27 Target Debt Leverage Ratio $500M of debt repayments each of the next three fiscal years 87
Slide 88: Dividend Growth
DIVIDEND GROWTH 7% 10-YEAR CAGR $4.16 26 CONSECUTIVE YEARS OF GROWTH $2.20 40-45% ADJUSTED EPS PAYOUT TARGET 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 88
Slide 89: FY25 Top-Line Considerations
FY25 TOP-LINE CONSIDERATIONS TAILWINDS HEADWINDS Continued Brand Momentum Lapping Net Sales Reduced Contract from Divestitures Manufacturing Sales Full Year of Net Sales Inflationary pressures from Hostess impacting consumers 89
Slide 90: FY25 Bottom-Line Considerations
FY25 BOTTOM-LINE CONSIDERATIONS BASE BUSINESS HOSTESS ACQUISITION Volume and mix benefits Full year of ownership and business growth Stabilization in supply chain and Approximately $50 million in synergies manufacturing environments Additional interest expense and total Cost and productivity benefit
Slide 91: Positioned to Deliver Long-Term Growth and Increase Shareholder Value
STRONG CONFIDENT CONTINUE BUSINESS IN OUR GROWTH ACROSS MOMENTUM STRATEGY THE PORTFOLIO ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Positioned to deliver long-term growth and increase shareholder value 91
Slide 92: CAGNY Conference 2024
THE JM. SMUCKER Co CONFERENCE 2024
Slide 93: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by tho
Slide 94: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The Company uses non-GAAP financial measures, including: net sales excluding divestitures and foreign currency exchange; adjusted gross profit; adjusted operating income; adjusted income; adjusted earnings per share; earnings before interest, taxes, depreciation, amortiza
Slide 95: Additional Information
ADDITIONAL INFORMATION The J. M. Smucker Co. is the owner of all trademarks referenced herein, except for Dunkin'®, which is a trademark of DD IP Holder LLC. The Dunkin'® brand is licensed to The J.M. Smucker Co. for packaged coffee products sold in retail channels, such as grocery stores, mass merc
Slide 96: Additional Information
ADDITIONAL INFORMATION Aaron Broholm Vice President, Investor Relations ir.team@jmsmucker.com Phone: (330) 682-3000 Investor Relations Website: https://investors.jmsmucker.com/ 96