John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Investor Presentation (August 2016)
60 slides from John B. Sanfilippo & Son's investor presentation, Aug 30, 2016
Slide 1: JBSS Investor Presentation August 2016
JBSS INVESTOR PRESENTATION August 2016 NASDAQ - JBSS Exhibit 99.1
Slide 2: Forward-Looking Statements
Some of the statements in this presentation and any statements by management constitute “forward-looking statements” about John B. Sanfilippo & Son, Inc. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the mar
Slide 3: Who is JBSS?
One of the largest nut processors in the world with fiscal 2016 annual net sales in excess of $952 million State-of-the-art nut processing capabilities, including what we believe is the single largest nut processing facility in the world A North American market leader in every major selling channel
Slide 4: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type % of total gross sales Full assortment of nut types Full variety of value-added products Wide variety of dried fruit and other snack products Customized, unique product formulas Fiscal Year 2016
Slide 5: Consistent success over past fiscal years
Consistent success over past 5 fiscal years Diluted EPS improvement of 70% from FY 12 to FY 16 Net Sales increased by 7% over FY 15 to a record $952.1 million
Slide 6: Vision and Core Values
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer Core Values Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation
Slide 7: FY 2016 Strategy Update
' | J 16 § & FY 2016 Strategy Update 2 6 Ss \? | ae JOHN B. SANFILIPPO & SON, INC.
Slide 8: Expand Consumer Engagement: The Global Source for Nuts
EXPAND CONSUMER the catagory for ou etal partner find customer eupper ‘ACCOUNTABILITY ‘CONSUMER INSIGHTS. ENGAGEMENT ERTISE Pr ON p N INTEGRITY» SUPPLY CHAIN EXCELLENCE The Global Source for Nuts+ The Global Source for Nutse
Slide 9: Expand Consumer Reach
Grow distribution so more consumers can purchase JBSS products Develop sales in Alternative Channels Launch innovative products, sizes and marketing programs to build consumer demand Expand Consumer Reach
Slide 10: FY 2016 Accomplishments
Fisher recipe nuts increased market share by +2.9 points*. Fisher snack nuts market share grew +0.6 point in the high franchise Midwest. Orchard Valley Harvest expanded distribution over FY 2015. FY 2016 Accomplishments *Source: IRI: Total Nut Category – Multi Outlet Geography Fiscal Year Ending 6/2
Slide 11: FY 2016 Accomplishments
Leveraged our innovation capabilities to launch 30 new items for our key contract manufacturing customers. Optimized Food Service and Industrial ingredient customer and product portfolios. Expanded Fisher brand awareness and distribution in the Commercial Ingredients channel. FY 2016 Accomplishments
Slide 12: Nut Category Review
‘ee Nut Category Review 2 6 Ss \? | ae
Slide 13: Steady Increase in Nut Retail Prices Since FY 2011
Steady Increase in Nut Retail Prices Since FY 2011 Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 data ending 6/26/16 + 31% since FY 2011
Slide 14: Retail Prices Up Across Most Major Nut Types
Retail Prices Up Across Most Major Nut Types over the Last 5 Years Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 data ending 6/26/16
Slide 15: Steady Category $ Growth
Steady Category $ Growth Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 data ending 6/26/16
Slide 16: JBSS Sales Channel Updates
0°50 JBSS Sales Channel Updates 6 ® m ihe ae The Global Source for Nuts%
Slide 17: Business Channel Diversification
$561 Fiscal 2016 Net Sales $952 Million Business Channel Diversification (Millions of $) $31 $223 $137
Slide 18: FY 2016 Consumer Channel
Fiscal 2016 Net Sales $561 Million Consumer 59% vs. FY 15 FY 2016 Consumer Channel 6.1%
Slide 19: FY 2016 Commercial Ingredients Channel
Fiscal 2016 Net Sales $223 Million FY 2016 Commercial Ingredients Channel vs. FY ‘15
Slide 20: FY 2016 Contract Packaging Channel
FY 2016 Contract Packaging Channel Fiscal 2016 Net Sales $137 Million
Slide 21: FY 2016 Export Channel
FY 2016 Export Channel Fiscal 2016 Net Sales $31 Million
Slide 22: FY 2016 Financial Milestones
FY 2016 Financial Milestones
Slide 23: JBSS Stockholders' Equity FYs 1991-2016
JBSS Stockholders’ Equity FYs 1991- 2016 In millions of $
Slide 24: JBSS Net Sales FYs 1991-2016
JBSS Net Sales FYs 1991- 2016 Increased Pound volume and Prices De-emphasized Industrial Sales, Lower Prices Low Carb Diet Run Up $952 million In millions of $
Slide 25: JBSS Total Outstanding Debt FYs 1991-2016
JBSS Total Outstanding Debt FYs 1991- 2016 In millions of $
Slide 26: Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – 2016
Slide 27: EBITDA
EBITDA EBITDA consists of earnings before interest, taxes, depreciation, amortization and noncontrolling interest. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America ("GAAP"), and does not represent cash flow from opera
Slide 28: Reconciliation of Net Income (Loss) to EBITDA
Reconciliation of Net Income (Loss) to EBITDA FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 (in $,000's) NET INCOME (LOSS) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 30,395 INTEREST EXPENSE 9,347 10,502 7,646 5,653 6,444 5,364 4,754 4,354 3,966
Slide 29: EBITDA
EBITDA* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure (in $ thousands)
Slide 30: Peanut and Tree Nut Spot Market Prices vs. JBSS Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN %
Slide 31: FY 2016 Brand Marketing Overview
FY 2016 Brand Marketing Overview
Slide 32: Recipe Nuts, Snack Nuts, Grow Brands
Recipe Nuts Snack Nuts Grow Brands
Slide 33: Recipe Nuts
Recipe Nuts
Slide 34: Strong Growth on the Fisher Recipe Brand
Strong Growth on the Fisher Recipe in FY 16 Total Fisher Recipe Brand Growth FY 16 vs. FY 15 +6% +12% Recipe Nuts POUND SALES DOLLAR NET SALES Source: JBSS shipment data
Slide 35: Fisher Recipe has Grown Market Share
Fisher Recipe has Grown Market Share Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2016 Data Ending 6/26/16
Slide 36: Strong, Sustained Growth for Fisher Recipe for 4+ Fiscal Years
Strong, Sustained Growth for Fisher Recipe for 4+ Fiscal Years Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2016 Data Ending 6/26/16
Slide 37: "No Preservatives" Message Key Driver for Share Growth
“No Preservatives” Message Key Driver for Share Growth
Slide 38: Build Fisher Brand Equity with Food Network Sponsorship
Continue to Build Fisher Brand Equity with Food Network Sponsorship
Slide 39: Integrated Marketing Key to Building Brand Equity
Integrated Marketing Key to Building Brand Equity Website Social Media Public Relations Food Network Email
Slide 40: Building Brand Presence "Away From Home"
Building Brand Presence and Equity “Away From Home” Merchandised Foodservice Location
Slide 41: Snack Nuts
Snack Nuts
Slide 42: Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets
Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets Snack Nuts
Slide 43: Strong Growth on Fisher Snack Nuts
Strong Growth on the Fisher Recipe in FY 16 Total Fisher Recipe Brand Growth FY 16 vs. FY 15 +5% +10% POUND SALES DOLLAR NET SALES Source: JBSS shipment data Snack Nuts
Slide 44: Growing Pound Share in High Franchise Markets
We Are Growing our Pound Share in High Franchise Markets Snack Nuts Source: IRI: Total Snack Nut Category – Core Franchise (Minneapolis, Milwaukee, Chicago and St. Louis) Multi Outlet Geography – FY 2016 Data Ending 6/26/16. The above are percentage of pound share.
Slide 45: Driving Results on Core Dry Roast Peanut Business
Driving Results on our Core Dry Roast Peanut Business Source: IRI: Total Snack Nut Category – Core Franchise (Minneapolis, Milwaukee, Chicago and St. Louis) Multi Outlet Geography – FY 2016 Data Ending 6/26/16
Slide 46: New Look for Fisher Snack Nuts
New Look for Fisher Snack Nuts
Slide 47: A Snack Bite Combining Consumer Favorites
A Snack Bite Combining Consumer Favorites
Slide 48: Fisher Nut Exactly Great Popcorn Varieties
Fisher Nut Exactly 4 Great Popcorn Varieties for Grocery Channel Unique Varieties for the Club Channel
Slide 49: Meeting Needs of the Snack Consumer
Meeting Needs of the Snack Consumer New Segment: Lighter than nuts, more substantial than popcorn Indulgent Healthier Snacking Yogurt/Veggies Popcorn Nuts Chips Candy Bars
Slide 50: Retailers Like our New Snacking Concept Too
Retailers Like our New Snacking Concept Too
Slide 51: Marketing Support to Build Consumer Awareness and Drive Trial
Marketing Support is Designed to Build Consumer Awareness and Drive Trial Social Media/ Digital In-Store PR Media Outreach Blogger Outreach Trial & Awareness Vehicles 51
Slide 52: Orchard Valley Harvest
Orchard Valley Ocha Nalleg Oncherd Valley Onc Nelog Onchayd Vlog Pure and Simple Goodness
Slide 53: Orchard Valley Harvest is On-Trend with Today's Consumer
Our Orchard Valley Harvest Brand is On-Trend with Today’s Consumer Pure & Simple Goodness Supports a healthy lifestyle Close to the earth
Slide 54: The Brand Consumers Trust for Pure & Simple Goodness
The Brand Consumers Trust for Pure & Simple Goodness
Slide 55: Strong Growth of Our Produce Brands
Strong Growth of Our Produce Brands Produce Brand Growth FY 16 vs. FY 15* +41% +55% POUND SALES DOLLAR NET SALES Source: JBSS shipment data * Includes Sunshine Country
Slide 56: Strong Distribution Gains
Source: IRI: Ttl Produce Nut Category – Total US MULO Geography– FY 2016 Data Ending 6/26/16 *Note: % ACV refers to % “All Commodity Volume” as measured by IRI Strong Distribution Gains
Slide 57: Snacking Trends and On-the-Go Portfolio
Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartman Group: Reimagining Health and Wellness, 2013 Snacking accounts for over 53% of all eating occasions in the U.S. 38% of consumers snack several times per day Grab ‘n Go Mini’s Multi-Packs We continue to expand our portfolio to add
Slide 58: Expanding to Front of House Foodservice Locations
Expanding to Front of House Foodservice Locations University Setting Sodexho B&I Location Michigan Ski Resort
Slide 59: Impactful Marketing Support
Impactful Marketing Support PR / Blogger Outreach / Trial & Awareness In-Store Merchandising / New Packaging Digital Initiatives Website / Ibotta
Slide 60: Thank You!
Thank You!
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