The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Investor Day (December 2022)
38 slides from The J.m. Smucker's investor day presentation, Dec 14, 2022
Slide 1: Investor Day 2022
INVESTOR DAY 2022
Slide 2: Mark Smucker, Chair of the Board, President and CEO
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: Agenda
WELCOME! Company & Strategy Mark Smucker AGENDA ESG Priorities Jill Penrose & Jeannette Knudsen Our Brand Growth Flywheel Geoff Tanner BREAK Executing Our Strategy John Brase Panel Discussion U.S. Retail General Managers Transformation Office Amy Held BREAK Financial Priorities & Growth Tucker Marsh
Slide 5: Our Company & Strategy
OUR COMPANY & STRATEGY
Slide 6: 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 6 6
Slide 7: Headquartered in Orrville, Ohio
HEADQUARTERED IN Orrville OHIO $8 BILLION FY22 NET SALES Powered by the Dedication to Our Values
Slide 8: Growth Through Acquisitions
GROWTH THROUGH ACQUISITIONS Introduced Iconic Delivered Above Made2 Bold Brands to Average Total Acquisitions Our Portfolio Shareholder Return Delivered Synergies and Growth Operated with Excellence as the Leader in Our Categories Looking Confident we are well-positioned Ahead for long-term growth 8
Slide 9: Strategy Considerations
STRATEGY CONSIDERATIONS Assess Position to Examine Where Performance & Win Over the We Compete Execution Long-Term Exit Leverage Improve Non-Strategic Strengths Profitability Businesses 9
Slide 10: Delivering Our Strategy
DELIVERING OUR STRATEGY Executional Priorities DRIVE STREAMLINE RESHAPE OUR UNLEASH OUR COMMERCIAL OUR COST PORTFOLIO ORGANIZATION EXCELLENCE INFRASTRUCTURE TO 10
Slide 11: Improved Commercial Capabilities
IMPROVED COMMERCIAL CAPABILITIES CONSUMER ENGAGEMENT COMMERCIAL DELIVERY ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ TRANSFORMED CREATED TWO DISTINCT ADVERTISING CREATIVE SALES ORGANIZATIONS INCREASED IMPROVED CONSUMER REACH IN-STORE EXECUTION REDUCED NON-WO
Slide 12: Over 70% of Our Portfolio Growing or Maintaining Share
OVER 70% OF OUR PORTFOLIO GROWING OR MAINTAINING SHARE SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 13 WEEKS ENDED OCTOBER 30, 2022. 12
Slide 13: Streamlined Cost Infrastructure
STREAMLINED COST INFRASTRUCTURE Continuous Focus on Value Operational Improvement Creation Efficiency Optimize Supply Consolidation of Chain Production Sites 13
Slide 14: Reshaping Our Portfolio
RESHAPING OUR PORTFOLIO Commitment to divesting brands and businesses that are no longer consistent with our long-term strategic focus WE OPTIMIZED OUR ASSORTMENT TO: Reduce Maximize Prioritize Complexity Productivity Resources 14
Slide 15: Unleash Our Organization to Win
UNLEASH OUR ORGANIZATION TO WIN Evolved to be Delivering with A Leaner & More Agile Excellence Flatter Structure Realigned Changes in Key Exceptional Incentives Leadership Roles Expertise 15
Slide 16: Our People
OUR MOST VALUABLE ASSET IS OUR PEOPLE Recruit and Nurture and Commitment to Foster Retain the Invest in Our Improving Inclusion and Best Talent Culture Diversity Equity 16
Slide 17: Our Strategy: The Roadmap to Our Vision
OUR STRATEGY THE ROADMAP TO OUR VISION ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Drive Prioritization Improve Transform Nurture & Improve Diversity & Best-In-Class Profitability & Our Portfolio Invest In and Foster Inclusion Execution Cost Discipline O
Slide 18: Positioned for Growth
POSITIONED FOR GROWTH Strength of Our Portfolio of Commercial Supply Chain Our Company’s Categories Leading Brands Capabilities Management Purpose 18
Slide 19: Our Categories
PET FOODS PET FOODS AND&SNACKS PET SNACKS COFFEE Our CATEGORIES CONSUMER FOODS 19 19
Slide 20: Pet Foods & Pet Snacks
PET FOODS & PET SNACKS Dog & cat ownership have both increased +10% Category growth projected to be +4-6% annually Pet parents increasingly prioritize pets over themselves SOURCE: EUROMONITOR NOVEMBER, 2022. 20
Slide 21: Future Growth in Pet Category
FUTURE GROWTH IN PET CATEGORY ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Special bonds between pets and pet parents driving treating and premiumization Our portfolio offers consumers choices across premium, mainstream and value products Pet category is
Slide 22: Coffee
COFFEE U.S. coffee consumption is at a two-decade high Two-thirds of Americans over the age of 18 drink coffee SOURCE: : NCA 2022 REPORT NATIONAL COFFEE DATA TRENDS 22
Slide 23: Drinking Occasions
DRINKING OCCASIONS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 17 million new at-home brewers were purchased over the last three years 70% of all coffee drinking occasions occur at-home At-home consumption and new coffee formats are at the center of evol
Slide 24: Coffee Trends
COFFEE TRENDS FIRST WAVE SECOND & THIRD WAVES FOURTH WAVE COFFEE Coffee became The rise of Home-sourced generally accessible coffee shops and specialty drinks & social with brands like Folgers ® craft coffee media influence 24
Slide 25: Consumer Foods
CONSUMER FOODS Half of all food and beverage occasions are snacking Snacking is now a $150 billion market and projected to grow SOURCE: THE HARTMAN GROUP AND SMUCKER INTERNAL MULTI-OUTLET + CONVENIENCE SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 25
Slide 26: Frozen Snacking & Sandwiches
FROZEN SNACKING & SANDWICHES ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Expected to reach $9 billion in sales by 2026, reflecting growth of approximately 20% Broad reach across multiple eating occasions, offering variety, versatility and convenience Con
Slide 27: Our Portfolio of Leading Brands
PET PET FOODS & PET FOODS ANDSNACKS SNACKS Our Portfolio of Leading BRANDS Over 80% of U.S. COFFEE Households Buy Our Brands 80% of U.S. Retail Sales CONSUMER FOODS from categories where we hold the #1 or #2 branded position 27 SOURCE: SMUCKER INTERNAL IRI PANEL DATA AND MULTI-OUTLET SHARE REPORT 52
Slide 28: Trusted & Iconic Brands
TRUSTED & ICONIC BRANDS Stronger BRAND BUILDING ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ through our commercial capabilities 28
Slide 29: An Integrated Framework: Our Brand Growth Flywheel
AN INTEGRATED FRAMEWORK ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Our Brand Growth Flywheel Powered by Drives A Proven Insights Growth Model 29
Slide 30: Growing Our Brands
GROWING OUR BRANDS Iconic and emerging brands grew net sales by double-digit percentages last fiscal year 30
Slide 31: Supply Chain Management
SUPPLY CHAIN MANAGEMENT Maintained SUPPLY CHAIN & Size and scale is a New efforts to AVAILABILITY ON MANUFACTURING COMPETITIVE support MARGIN SHELF excellence ADVANTAGE EXPANSION 31
Slide 32: Responsible Sourcing
RESPONSIBLE SOURCING Our Coffee Sustainability Strategy Supporting smallholder coffee farmers Healthy expansion of supply chain Training on improved agricultural methods Help increase yields, quality, climate resistance, and farmer livelihoods 32
Slide 33: Our Purpose
OUR PEOPLE OUR PURPOSE Feeding connections that help us thrive – life tastes better together. ENSURING ACCESS TO SUPPORTING ACCESS PROMOTING MAKING SUPPORTING A QUALITY FOOD TO EDUCATION EQUITABLE AND CONNECTIONS TO HEALTHIER PLANET ETHICAL TREATMENT COMMUNITY FOR ALL RESOURCES 33
Slide 34: Confidence in Delivering Results & Future Growth
CONFIDENCE IN DELIVERING RESULTS & FUTURE GROWTH KEY CONTINUE 2 2 GROWTH PLATFORMS TRANSFORMATION JOURNEY Uncrustables ® Restore Margins Pet Snacks & Cat Food Fund Investments For Growth Coffee Portfolio & Format Expansion 34
Slide 35: We Have Become a Stronger Company
W E H AV E B E C O M E A STRONGER COMPANY ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Continue to deliver on our commitment to achieve long-term growth 35 35 CONFIDENTIAL
Slide 36: Investor Day 2022
INVESTOR DAY 2022
Slide 37: 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 risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by thos
Slide 38: Additional Information
ADDITIONAL INFORMATION The J.M. Smucker Co. is the owner of all trademarks and logos referenced herein, except for the following, which are used under license: Dunkin’® is a trademark of DD IP Holder LLC, and Rachael Ray® is a trademark of Ray Marks II LLC. The Dunkin’® brand is licensed to The J.M.
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