The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Investor Presentation (December 2014)
25 slides from The J.m. Smucker's investor presentation, Dec 1, 2014
Slide 1: Investor Presentation
Investor Presentation December 1, 2014 Forward Looking Statement 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 ma
Slide 2: Contents
Contents ► Corporate Overview ► U.S. Retail Coffee ► U.S. Retail Consumer Foods ► International, Foodservice, and Natural Foods ► Financial Overview 3 Corporate Overview
Slide 3: Strength of Smucker / Our Foundation
Strength of Smucker ► Clearly defined strategy ► Proven ability to execute ► Portfolio of leading brands ► History of long-term growth ► Cash generation and responsible deployment ► Culture and continuity of management 5 Our Foundation CORE COMPETENCIES BASIC BELIEFS Developing strong Quality relati
Slide 4: Our Vision Guides Our Strategy
Our Vision Guides Our Strategy “We will own and market food brands that hold the #1 MARKET POSITION in their respective category, with an emphasis on North America, while maintaining a global perspective.” 7 Our Long-Term Growth Algorithm NET SALES 6% Organic Growth Acquisitions Brand Building and I
Slide 5: Our History of Long-Term Growth
Our History of Long-Term Growth Net Sales Earnings Per Share (in billions) (Non-GAAP) $5.6 $5.61 $3.8 $3.76 5-Year 5-Year CAGR CAGR 8% 8% FY09 FY14 FY09 FY14 9 Our Business Segments FY14 NET SALES FY14 SEGMENT PROFIT Total: $5.6 Billion Total: $1.2 Billion Int’l, Int’l, Foodservice, Foodservice, & N
Slide 6: Our Categories
Our Categories Other 14% Flour & Baking Ingredients 4% Canned Milk 5% Coffee FY14 Sales by Category 46% Baking Mixes 6% & Frosting 6% Shortening & Oils 6% Fruit Spreads 13% Peanut Butter 11 Our Dominant Share in Key Categories (U.S. Retail Markets) Sweetened Peanut Fruit Natural Condensed Ice Cream
Slide 7: Strong Track Record of Innovation
Strong Track Record of Innovation NUMBER OF NEW PRODUCTS INTRODUCED 100+ $425M 60+ 70 FY14 NET SALES* FY12 FY13 FY14 TARGETING 2% Annual Sales Growth From New Products *Represents “net sales from new products” defined as sales from products introduced in the past three fiscal years 13 Innovation Mee
Slide 8: Acquisition Types
Acquisition Types TRANSFORMATIONAL BOLT-ON ENABLING Larger in Size Increase Category Smaller in Size Presence Game Changing New Capabilities Leverage Existing New Markets and Infrastructure Capitalize on New Categories Smucker Resources Strengthens Core Competencies 15 U.S. Retail Coffee
Slide 9: U.S. Retail Coffee Update
U.S. Retail Coffee Update KEY INTITIATIVES NEW PRODUCTS ► Grow share of mainstream segment ► Continued focus on premium coffee growth ► Expanded presence in single serve coffee ► Innovation and brand building ► Manage price to cost relationship over the long-term ► Green coffee sustainability 17 U.S
Slide 10: Leader in At-Home Coffee
Leader in At-Home Coffee 28 52-Week Dollar Share of $8.6 Billion Category DOLLAR SHARE Other #1 Smucker #2 Competitor Private Label #3 Competitor Source: Smucker Internal Multi-Outlet Share Report 52 weeks ended November 2, 2014 19 Evolution of At-Home Coffee 2011 2014 $5.8 Billion Category $8.6 Bil
Slide 11: Compete in All Key Segments and Forms
Compete in All Key Segments and Forms Mainstream ROAST AND GROUND Can Brick Pack PREMIUM Premium Bag Single SINGLEServe SERVE Instant K-Cups Other Single Serve 21 Leader in Mainstream Coffee 54 52-Week Dollar Share of $2.7 Billion Segment DOLLAR SHARE Other Privat
Slide 12: Meeting Consumers Preferences
Dunkin’ Donuts Growth Through Innovation Net Sales 4-Year CAGR 6% FY10 FY14 Meeting Consumers Preferences Through a Variety of Flavors and Roasts 23 Focused on Single-Serve Coffee ► Strong brand representation in the fast growing K-Cup segment ► Providing variety and convenience with 15 K-Cup offeri
Slide 13: Innovation within Folgers Brand
Innovation within Folgers Brand ► Doseable Flavor Enhancers ► On Demand Convenience ► Personalization of Flavor 25 U.S. Retail Consumer Foods
Slide 14: U.S. Retail Consumer Foods Update
U.S. Retail Consumer Foods Update KEY INTITIATIVES NEW PRODUCTS ► Grow Jif and Smucker’s brands, including expanding beyond their traditional categories ► Continue to grow Smucker’s Uncrustables frozen sandwiches ► Leverage our leadership position in the bake aisle ► Integrate Sahale Snacks and leve
Slide 15: Leader in Peanut Butter Category
Leader in Peanut Butter Category 52-Week Dollar Share of $1.9 Billion Category Other 46 DOLLAR SHARE #1 Private Label Smucker #3 Competitor #2 Convenient and Affordable Competitor Source of Protein Source: Smucker Internal Multi-Outlet Share Report 52 weeks ended November 2, 2014 29 Evolution of the
Slide 16: Sahale Snacks Acquisition
Sahale Snacks Acquisition ► Increasing presence in snacking space ► Unique ingredients and flavor combinations ► Gluten free and non-GMO products 31 Leader in Fruit Spreads Category 52-Week Dollar Share of $940 Million Category 44 DOLLAR SHARE Other #1 Smucker Private Label #2 Competitor Source: Smu
Slide 17: Smucker's Natural Fruit Spreads
Smucker’s Natural Fruit Spreads ► Meeting consumer desire for simple ingredients ► Driving growth of natural fruit spreads segment ► Segment dollar sales +40%, latest 52 weeks Source: Smucker Internal Multi-Outlet Share Report 52 weeks ended November 2, 2014 33 Smucker’s Fruit-Fulls ► Simple, all-na
Slide 18: Smucker's Uncrustables Frozen Sandwiches
Smucker’s Uncrustables Frozen Sandwiches ► 11 consecutive quarters of double-digit volume growth* ► Expanded manufacturing capacity supports future growth *In U.S. Retail Consumer Foods Segment 35 Crisco Continues to Perform ► Six consecutive quarters of Crisco brand volume growth ► Year-to-date FY1
Slide 19: International, Foodservice, and Natural Foods
Pillsbury Innovation Strong merchandising and new products to market ► New baking line with simple ingredient mix ► Artisan bread offers convenience in 3 new flavors ► New line of gluten free offerings 37 International, Foodservice, and Natural Foods
Slide 20: Int'l, Foodservice, and Natural Foods Update
Int’l, Foodservice, and Natural Foods Update KEY INTITIATIVES NEW PRODUCTS ► Driving market share gains in Canada through innovation and merchandising ► Convert foodservice customers to Folgers branded liquid coffee ► Re-enter the commodity peanut program for schools with Smucker’s Uncrustables froz
Slide 21: Financial Overview
Financial Overview FY15 Second Quarter and Year-to-Date Results QTD YTD TOTAL COMPANY -5% -4% Net Sales NON-GAAP -5% -2% Gross Profit NON-GAAP FLAT 4% Earnings per Share 42
Slide 22: FY15 Guidance and Cash Deployment
FY15 Guidance as of November 19, 2014* TOTAL COMPANY -1% Net Sales NON-GAAP $5.45 – $5.65 Earnings per Share FREE CASH FLOW ~ $500M *Based on guidance provided during the Company’s Q2 earnings call on November 19, 2014. This outlook speaks only as of that date and this slide does not constitute conf
Slide 23: Delivering Shareholder Value
Delivering Shareholder Value (in millions) $800 Returned $2.6 Billion to Shareholders $600 $400 $200 $0 FY10 FY11 FY12 FY13 FY14 Dividends Share Repurchase 45 Consistent History of Growing Dividends $2.50 $2.26 $2.00 $1.50 $1.00 $0.92 $0.50 $0.00 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY1
Slide 24: Additional Information
Additional Information The Company is the owner of all trademarks and logos referenced herein, except for the following, which are used under license: Pillsbury, the Barrelhead logo, and the Doughboy character are trademarks of The Pillsbury Company, LLC; and Dunkin’ Donuts is a registered trademark
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in millions, except per share data) Year Ended April 30, 2014 2009 Income excluding certain items affecting comparability Reconciliation to net income: Net income $ 565.2 $ 266.0 Income taxes 284.5 130.1 Cost of products sold – special project costs 9.4 - Other speci
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