The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Barclays Back-to-School Consumer Conference 2013
15 slides from The J.m. Smucker's conference presentation, Sep 3, 2013
Slide 1: Back-to-School Consumer Conference
Back-to-School Consumer Conference Richard Smucker Chief Executive Officer September 3, 2013 Forward-Looking Statement Vince Byrd President and Chief Operating Officer This presentation contains forward-looking statements, such as projected operating results, earnings, and cash flows, that are subje
Slide 2: Areas of Focus for FY14
Areas of Focus for FY14 Focused on “Bigger Opportunities” Innovation & Brand Support Expanding our presence Accelerating the growth in single serve coffee of Jif and Smucker’s Digital & Social Media Supply Chain Continuing to build our frozen handheld business Serving Our Customers Industry Initiati
Slide 3: Innovation Fuels Our Growth
Innovation Fuels Our Growth Our Long-Term Growth Objectives NET SALES 6% Organic Growth Acquisitions Brand Building, Innovation Enabling, Bolt-On, Transformational 3-4% 2-3% $530 million in FY13 net sales from new products* 13 14 *Defined as products introduced in the past three fiscal years Success
Slide 4: Acquisition Types
Acquisition Types Acquisition Types • Larger in size • Smaller in size Transformational • Game changing Enabling • New capabilities • New markets and new categories • Capitalize on Smucker resources • Increase category presence Bolt On • Leverage existing infrastructure • Strengthens core competenci
Slide 5: Delivering Shareholder Value
Delivering Shareholder Value Delivering Shareholder Value ($ in millions) $600 Annual dividends paid $500 per share +9% $400 $300 FY13 $200 Actions $100 Repurchased 4% of common shares outstanding $0 FY09 FY10 FY11 FY12 FY13 Dividends Share Repurchase Special $5 Dividend 25 26 Delivering Shareholder
Slide 6: Our Purpose
Our Purpose Pushing Out on “Bigger Opportunities” Expand single serve coffee Accelerate growth of Jif and Smucker’s brands Build frozen handheld business 31 32 Avenues to Achieve Our Goals Focused on Single Serve Coffee • Grow brands within current categories • Fast growing K-Cup category • Extend b
Slide 7: Innovation in Single Serve Coffee
Innovation in Single Serve Coffee Smucker U.S. Retail Coffee Growth FY10 Net Sales FY13 Net Sales $1.7 Billion $2.3 Billion 1% 12% Partnership with 2% 9% Green Mountain Coffee Roasters 9% 16% 21% 62% 68% Mainstream R&G Premium Instant K-Cup Other FY13 K-Cup sales of nearly $290 million 37 38 Smucker
Slide 8: Growing Jif into a Billion Dollar Brand
Growing Jif into a Billion Dollar Brand Growing Jif into a Billion Dollar Brand Participating in $400 million Launched Jif Whips this summer specialty spreads category 43 44 Growing Jif into a Billion Dollar Brand Growing Jif into a Billion Dollar Brand New New Expanding our Flavors Forms manufactur
Slide 9: Expanding the Smucker's Brand
Expanding the Smucker’s Brand Increasing Frozen Handheld Business Our NEW manufacturing Three consecutive quarters of 20% facility in Orrville, Ohio growth in U.S. Retail 49 50 Increasing Frozen Handheld Business Innovation Driving Our Success $80 million expansion of facility in Scottsville, Kentuc
Slide 10: Dunkin' Donuts Delivering on Innovation
Dunkin’ Donuts Delivering on Innovation Dunkin’ Donuts Delivering on Innovation Launched Innovation Focus Dunkin’ Donuts Bakery Series Innovation Focus this summer Brand Performance Brand Performance New Products New Products Net sales of Dunkin’ Donuts Seasonals are incremental to the brand 55 56 D
Slide 11: Capitalizing on the Pillsbury Brand
Capitalizing on the Pillsbury Brand Capitalizing on the Pillsbury Brand Innovation Focus Innovation Focus Brand Performance Brand Performance New Products New Products Only national brand with a sugar-free line in the category Continued success with seasonals! 61 62 Investing in Marketing Initiative
Slide 12: Investing in Digital & Social Media
Investing in Digital & Social Media Planned Brand Building Initiatives Launching 100 new products FY14 Initiatives 10% increase in marketing spend 67 68 First Quarter Results – FY14 vs FY13 Net Sales -1% Volume +1% Mark Belgya Gross Profit (Non-GAAP) +4% Senior Vice President & Chief Financial Offic
Slide 13: FY14 EPS Guidance Bridge
FY14 EPS Guidance Bridge Gross Profit Trends ($ in millions) $2,100 39.0% Previous Guidance: $5.65 – $5.75 38.0% $2,000 Q1 share repurchase 37.0% $1,900 36.0% Base business strength $1,800 35.0% 34.0% Addition of Enray Inc. $1,700 33.0% $1,600 Current Guidance: $5.72 – $5.82 32.0% (Guided to higher
Slide 14: Revolver Borrowings
Revolver Borrowings Our History of Growth Net Sales (in billions) Earnings Per Share (Non-GAAP) ($ in millions) $5.37 $5.9 $3.15 Current Revolver $1,000 $2.5 FY08 FY13 Borrowed (210) FY08 FY13 (As of August 28, 2013) Market Cap (in billions) Cash from Operations (in millions) $11.0 $856 Available Li
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Dollars in millions, except per share data) (Dollars in millions, except per share data) Year Ended April 30, Company Guidance 2013 2008 Year Ending April 30, 2014 Income excluding special project costs Low High Income excluding special project costs
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