The J.m. Smucker Company · NYSE:SJM

The J.m. Smucker — Barclays Capital Back-To-School Conference 2009

19 slides from The J.m. Smucker's conference presentation, Sep 9, 2009

  1. Slide 1: Forward-looking statements

    This presentation contains forward-looking statements, such as projected 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, performance or achievements expressed or im

  2. Slide 2: Strategy and Brand Performance, Coffee Business, Financial Results

    ● Strategy and Brand Performance ● Coffee Business ● Financial Results ’ ● Ability to implement strategy ● Strong portfolio of #1 brands ● Current consumer trends ● Strong cash flows ● Company culture 2

  3. Slide 3: Our Vision, Core Competencies, Basic Beliefs

    • Quality • Building emotional bonds • People • Developing strong relationships • Ethics • Our ability to implement • Growth • Independence We will own and market food brands which hold the market position in their respective category, with an emphasis on North America 3

  4. Slide 4: Our Vision: #1 category brands and growth model

    Fix the bullets, colors….also should we grey the words a little? Category Rank % Dollar Share Our Vision of Category Coffee #1 37% Edible Oils #1 17% Core Competencies Peanut Butter #1 45% Fruit Spreads #1 46% Shortening #1 67% Natural Beverages #1 45% Basic Beliefs Sweetened Condensed Milk #1 41% I

  5. Slide 5: Net Sales, Income and EPS with FY2010 guidance

    Net Sales Earnings Per Share Segment President Brands ($ in billions) (non-GAAP)* $4.0 U.S. Retail $4.00 Vince Byrd Coffee Market $3.5 5-Year CAGR = 22% 5-Year CAGR = 9% $3.50 $3.0 $3.00 U.S. Retail Consumer Steve Oakland $2.5 $2.50 Market $2.0 $2.00 U.S. Retail $1.5 $1.50 Oils & Baking Paul Wagstaf

  6. Slide 6: Net Sales and Net Income per Employee

    Net Sales / Employee Net Income / Employee ($ in thousands) ($ in thousands) $900 $60 $600 $40 FY08 FY10 $800 $57 $710 $52 $300 $552 $20 $35 4.6% 3.6% $0 $0 FY2005 FY2007 FY2009 FY2005 FY2007 FY2009 6

  7. Slide 7: Peanut Butter 3-Year Net Sales CAGR

    Peanut Butter 3-Year Net Sales CAGR +8% Providing = = © Back-To-School

  8. Slide 8: Pancake Mixes and Syrups: FY09 Net Sales up over 20%

    Share of Market 29.1% 28.9% 27.7% 2007 2008 2009 FDMW IRI Data – 52 week periods ending August Pancake Mixes and Syrups FY09 Net Sales up over 20% 8

  9. Slide 9: $100 Million Annual Net Sales Long-Term Relationships

    $100 Million Annual Net Sales Long-Term Relationships 9

  10. Slide 10: 10-Year Total Return and Integration Highlights

    $350 10-Year CAGR $300 Smucker: 11.2% S&P 500: -1.0% $250 DJIA: 0.6% $200 Peer Group: 4.1% $150 $100 $50 $0 1999 2004 2009 SJM S&P 500 DJIA Peer Group *Based on $100 investment and dividends reinvested. Information through August 26, 2009. Addition Addition of of 1,500 1,500 Employees Employees Empl

  11. Slide 11: Coffee integration timeline

    Nov. 2008 Dec. 2008 Feb. 2009 May 2009 August 2009 Closing Other Integrated 10% Sales Team Organizational Structure Gourmet Customer Visits 20% Roast Customer and Facing Ground Plant 70% Go-Live Green Coffee 11

  12. Slide 12: Original Blend distribution and variety expansion

    • Original Blend ACV +80% • Original Whole Bean • French Vanilla ACV 60% or lower • Decaf • Hazelnut • Cinnamon Spice • Dark • Expand variety of offerings • Increase brand awareness • Push out on distribution gains 12

  13. Slide 13: Gourmet Strategy

    Gourmet Strategy Single Serve / Instant 13

  14. Slide 14: 1/3 Reduction in Trade Funds

    1/3 Reduction Dollar Unit in Trade List Trade Funds Category 2.0% Category 2.1% Price Spend Smucker 6.1% Smucker 5.5% Net Sales Neutral IRI data FDMX – 12 weeks ending August 9, 2009 14

  15. Slide 15: First Quarter Net Sales and Operating Profit

    Quarter Ended Quarter Ended Quarter Ended Quarter Ended ($ in millions, except per share) ($ in millions, except per share) July 31, 2009 July 31, 2008 % Chg July 31, 2009 July 31, 2008 % Chg Net Sales $ 1,052 $ 664 58% Net Sales $ 1,052 $ 664 58% Operating Profit (non-GAAP)* $ 185 $ 76 144% • Base

  16. Slide 16: Segment results: Coffee, Consumer, Oils & Baking

    FY 2010 (a) Quarter Ended FY2010 ($ in millions) ($ in millions) Pro Forma July 31, 2009 Guidance Net Sales $ 366 EBITDA* $920 - $940 $ 869 Segment Profit $ 127 % of Sales 20.4% - 20.9% 17.5% Segment Profit Margin 34.8% Highlights (a) Includes approximately $80 MM in run-rate synergies ● Volume up 9

  17. Slide 17: Cash flow, Long-Term Debt and FY2010 EPS guidance

    Quarter Ended Quarter Ended ($ in millions) Quarter Ended Quarter Ended July 31, 2009 July 31, 2008 ($ in millions) July 31, 2009 July 31, 2008 % Net Income $ 98 $ 42 Net Sales $ 200 $ 192 4% Depreciation & Amortization 50 19 Segment Profit $ 28 $ 21 36% Working Capital (174 ) (1) Cash (Used for) Pr

  18. Slide 18: Liquidity and key takeaways

    ($ in millions) Cash on Hand at July 31, 2009 $ 290 Available under Current Revolver 180 Proposed Financing (3-year revolver) 400 Total Available $ 870 ● Ability to implement strategy ● Strong portfolio of #1 brands ● Current consumer trends ● Strong cash flows ● Company culture 18

  19. Slide 19: Trademark notices

    Pillsbury, the Pillsbury Logo, and Poppin’ Fresh the Pillsbury Doughboy are the registered trademarks of The Pillsbury Company, LLC. Carnation is the registered trademark of Societe des Produits Nestle S.A. Dunkin’ Donuts, and the Dunkin’ Donuts Logo are the registered trademarks of DD IP Holder LLC

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