Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Barclays Global Consumer Staples Conference 2016
23 slides from Tyson Foods's conference presentation, Sep 8, 2016
Slide 1: Barclays Global Consumer Staples Conference
Barclays Global Consumer September 8, 2016 Staples Conference
Slide 2: Donnie Smith, CEO and Tom Hayes, President
Donnie Smith Tom Hayes Chief Executive Officer President 2
Slide 3: Forward-Looking Statements
F O R W A R D - L O O K I N G S TAT E M E N T S Certain information contained in the press release may constitute forward-looking statements, such as statements relating to expected performance, and including, but not limited to, statements appearing in the “Outlook” section and statements relating
Slide 4: Adjusted EPS Growth
Adjusted EPS Growth $4.40-4.50** $3.15 * $2.94* $2.26 * $1.97* FY12 FY13 FY14 FY15 FY16 proj. *Represents a non-GAAP financial measure. Adjusted EPS is explained and reconciled to “EPS Reported from Continuing Operations” in the Appendix at “EPS Reconciliations.” ** Projected adjusted EPS guidance a
Slide 5: Free Cash Flow
Free Cash Flow $1,569 $652 $440 $442 $344 FY11 FY12 FY13 FY14 FY15 Free Cash Flow* in millions Free Cash Flow = Operating Cash Flow − CapEx − Dividends *Represents a non-GAAP financial measure. Free Cash Flow is explained and reconciled to “Cash Provided by Operating Activities” in the Appendix at “
Slide 6: Returning cash to shareholders
Priorities for Cash Returning cash to shareholders Dividends Paid per Class A Share $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 FY12 FY13 FY14 FY15 FY16* Regular Dividend Special Dividend *Includes dividend payable 9/15/16 6
Slide 7: The Road to Higher, More Stable Margins
CHICKEN SEGMENT The Road to Higher, More Stable Margins Optimize cost structure Change pricing structure Upgrade value-added Buy vs. Grow strategy Deliver high quality products products and customer service 7
Slide 8: Tyson, Jimmy Dean, Hillshire Farm – Billion $ Brands
GAME-CHANGING ACQUISITION Tyson®, Jimmy Dean®, Hillshire Farm® – Billion $ Brands 8
Slide 9: Core 9 drives retail packaged growth
A D VA N TA G E D B R A N D S I N A D VA N TA G E D C AT E G O R I E S Core 9 drives retail packaged growth 1 Frozen Prepared Chicken 1 Hot Dogs 1 Branded Stack Pack Bacon 1 Frozen Breakfast Sandwiches 1 Breakfast Sausage 1 Smoked Sausage 2 Branded Lunchmeat 1 Corn Dogs 1 Super Premium Sausage 9
Slide 10: Retail portfolio commands premium pricing
C O R E 9 C AT E G O R I E S Retail portfolio commands premium pricing Average Price per Pound 11% premium above categories’ average Tyson Core 9 price Total Categories 2012 2013 2014 2015 SOURCE: IRI Total US MULO, 52 weeks ending December 2012-2015 10
Slide 11: 'Core 9' leading volume growth in retail
GROWING W HERE W E WANT TO GROW ‘Core 9’ leading volume growth in retail 7.6% 5.6% 4.3% 1.1% -1.7% Core 9 -2.1% -5.4% -5.5% -6.1% -6.5% -8.1% Volume Sales % Change among top 10 branded food companies > $5B Source: IRI Total U.S. All Outlet (x Costco) All Edible Food Volume Sales 13 weeks ending 8/14
Slide 12: Positioned for growth at home & away from home
GROWING W HERE W E WANT TO GROW Positioned for growth at home & away from home Fresh Meat & Poultry Foodservice 3.3% 2.7% 2.6% 0.5% Chicken Meat Chicken Meat Latest 52 wks Latest 13 wks Source: Nielsen Perishables, data ending 5/28/16 The NPD Group/CREST® - Total Food Service (Com + Non-Com) 12
Slide 13: Top tier innovation performance
GROWING W HERE W E WANT TO GROW Top tier innovation performance Branded Retail Food Companies 2015 Comparison insights innovation vitality 12.9% 12.5% 10.8% innovation 8.6% 8.4% research & development 13 SOURCE: Nielsen total US XAOC – Expanded all outlet channel and includes Walmart
Slide 14: Innovating to impact Core 9
D E L I G H T I N G C O N S U M E R S , S O LV I N G C U S T O M E R P R O B L E M S Innovating to impact Core 9 14
Slide 15: Building brands to grow businesses
D E L I G H T I N G C O N S U M E R S , S O LV I N G C U S T O M E R P R O B L E M S Building brands to grow businesses 15
Slide 16: Unleashing iconic brands on adjacent categories
D E L I G H T I N G C O N S U M E R S , S O LV I N G C U S T O M E R P R O B L E M S Unleashing iconic brands on adjacent categories 16
Slide 17: Valuing up one of food's largest categories
D E L I G H T I N G C O N S U M E R S , S O LV I N G C U S T O M E R P R O B L E M S Valuing up one of food’s largest categories
Slide 18: Building a fresh modern brand in China
D E L I G H T I N G C O N S U M E R S , S O LV I N G C U S T O M E R P R O B L E M S Building a fresh modern brand in China Expertise Differentiation Disruption 18
Slide 19: Barclays Global Consumer Staples Conference
Barclays Global Consumer September 8, 2016 Staples Conference
Slide 20: Appendix
Appendix 20
Slide 21: EPS Reconciliations
EPS Reconciliations $ in millions, except per share data Unaudited 12 Months Ended October 3, 2015 September 27, 2014 September 28, 2013 September 29, 2012 Operating Operating Operating Operating Income EPS Income EPS Income EPS Income EPS Reported from Continuing Operations 2,169 $ 2.95 1,430 $ 2.3
Slide 22: Adjusted EPS Guidance Reconciliations
Adjusted EPS Guidance Reconciliations Unaudited Fiscal 2016 Low High Net income per share attributable to Tyson guidance $ 4.47 $ 4.57 Less: Recognition of previously unrecognized tax benefit and audit settlement (0.07) (0.07) Adjusted net income per share attributable to Tyson guidance $ 4.40 $ 4.5
Slide 23: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations $ in millions Unaudited 12 Months Ended 2015 2014 2013 2012 2011 Cash Provided by Operating Activities $ 2,570 $ 1,178 $ 1,314 $ 1,187 $ 1,046 Less: Capital Expenditures (854) (632) (558) (690) (643) Less: Dividends Paid (147) (104) (104) (57) (59) Free Cash Flow $ 1,5
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