Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Transition Period Ja Earnings Presentation
32 slides from Del Monte Pacific's earnings presentation, Jun 12, 2014
Slide 1: One Family Moving Forward
One Family Moving Forward January-April 2014 Transition Period Results 12 June 2014 Del Monte Pacific Limited
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Del Monte Pacific Limited and its subsidiaries (the “Group”) that are of a forward looking nature and are therefore based on management’s assumptions about future developments. Such forward looking statements are typically
Slide 3: Contents
Contents • Bringing the Family Together • Transition • Opportunities • Jan-Apr 2014 Transition Period (TP) Results • Market Updates • Sustainability • Outlook 3
Slide 4: Bringing the Family Together
Bringing the Family Together • Acquisition of Del Monte Foods, Inc (DMFI) completed on 18 February 2014 • Purchase price of US$1.675 bn (subject to working capital adjustments) • Financed by: – Debt: US$970m – Equity: US$705m (US$630m bridge loans, US$75m equity) • Bridge loans to be refinanced with
Slide 5: DMFI Transition Plans
DMFI Transition Plans • Retained strong and long tenured Management Team • Experienced Key Executives in top management positions • Overview of depth of the organisation • Board Integration o Same DMPL Directors on DMFI Board o Addition of DMPL’s COO and SVP and DMFI’s CEO on DMFI Board 5
Slide 6: DMFI Executive Officers
DMFI Executive Officers Nils Lommenn CMO Mktg & Prod Mgmt Rhonda s Lesinski Pp CHRO Connie Carothers coo David Withycombe SF PGH SF CFO Dave Meyers cco Tim Bernard OIC * So. America SVP VP R&D, &GM of New pus Dev oem’ Venezuela a ard att David Elmer Blossom Butler Bay Area Location Code: SF — San Fr
Slide 7: DMFI Transition Plans
DMFI Transition Plans • IT Conversion (eg SAP migration) • Business Trends for US Market/Categories • Reverting to a proven strategy • FY15 Transition Year • FY16 Return to historical performance trend 7
Slide 8: Opportunities
Opportunities • Commercial Synergies o Pineapple – vertical integration o Two-way product flow (USA to Asia and vice versa) • New markets/channels o Ethnic o South/Central America • Cost Savings/Synergies o Outsourcing o Raw and packaging material 8
Slide 9: FY2015 – a Transition Year
FY2015 – a Transition Year • Business in transition • Integration • Full year to full year will be more appropriate comparison due to transition and seasonality 9
Slide 10: DMPL ex DMFI
DMPL ex DMFI • Branded business will grow in FY2015 – both Del Monte and S&W • Exports will grow in FY2015 but skewed to second half 10
Slide 11: DMPL Jan-Apr 2014 Results Summary
DMPL Jan-Apr 2014 Results Summary • Recorded sales of US$379m with US$292m contributed by Del Monte Foods, Inc (DMFI) for 18 February-end April • Net loss of US$42.8m primarily due to one-off acquisition expenses • Without US$46.7m non-recurring items, adjusted profit would have been US$3.8m • Stron
Slide 12: Non-recurring Expenses (NRE)
Non-recurring Expenses (NRE) 1. One-off acquisition-related transaction fees booked under G&A expenses: One-off transaction fees – One-off transaction fees gross (in US$m) – net of tax (in US$m) 2013 25.3 16.6 Jan-Apr 2014 9.6 6.2 2. US$15m higher fixed manufacturing costs net of tax In a normal 12-
Slide 13: Non-recurring Expenses (NRE) – cont’d
Non-recurring Expenses (NRE) – cont’d 3. US$14m net of tax restatement to fair market values of the assets which formed part of the acquisition as required by purchase accounting standards. The amount is subject to external audit verification. This had a corresponding impact on DMFI’s costs, primari
Slide 14: DMPL Jan-Apr 2014 Transition Period Results
DMPL Jan-Apr 2014 Transition Period Results In US$m TP 2013 TP 2014* Chg (%) Comments Consolidation of DMFI’s sales Turnover 127.6 379.2 nm of US$293m Gross profit 30.9 27.0 nm Impact of two NREs Operating profit 11.3 (52.9) nm Impact of NREs Higher interest expense from Finance inc/(exp) (0.9) (18.
Slide 15: Transition Period 2014 Turnover Analysis
Transition Period 2014 Turnover Analysis Americas 78% 20% Asia Pacific Europe 2% Americas nm • Due to the consolidation of DMFI’s results with sales of US$293m Asia Pacific -24.2% • Philippines sales were down while S&W packaged products delivered a strong set of results Europe -15.5% • Lower sales
Slide 16: Del Monte Foods USA
Del Monte Foods USA • Global Product Summit held at the Walnut Creek Research Center, San Francisco, in early April this year • Different business units of DMPL – USA, Philippines, India, S&W Asia – met up for the first time to share their product knowledge, map out product innovations, and identify
Slide 17: Del Monte Foods USA Promotions
Del Monte Foods USA Promotions Green Bean Casserole x-promotion Easter End Cap Event – Del Monte Del Monte Fruit Burst Squeezer print ad Plastic Fruit Cups & Del Monte with Campbell’s & French’s Fruit Burst Squeezers 17
Slide 18: Del Monte Foods Sam’s Club Easter Shopper Program
Del Monte Foods Sam’s Club Easter Shopper Program Demos in all 422 clubs Samsclub.com landing page/banners Custom recipe developed 18
Slide 19: Products - USA
19 _— Life gets Better Del Monte in the United States < 9) =) I 12) p=) O =) aS) fe) = oO
Slide 20: Del Monte Philippines
Del Monte Philippines Two new products launched – Del Monte BoneSmart 100% Pineapple Juice and Del Monte Spaghetti Sauce with Hotdog 20
Slide 21: Products - Philippines
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Slide 22: S&W’s Maiden Participation at FHA 2014
S&W’s Maiden Participation at FHA 2014 • Hailed as Asia’s largest international trade event for the food and hospitality industry, the 4-day Food & Hotel Asia 2014 (FHA2014) and Wine & Spirits Asia 2014 (WSA2014) took place in April 2014 at the Singapore Expo. • Alongside more than 3,200 exhibitors,
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Slide 24: S&W’s Initiatives in the Middle East
S&W’s Initiatives in the Middle East Updates from Israel. It contains info/images on facebook updates, in-store sampling, display promotions and also Publication efforts consumer engagement via a promotional event. 24
Slide 25: S&W’s Initiatives in the Middle East
S&W’s Initiatives in the Middle East Consumer engagement activity in Israel 25
Slide 26: S&W’s Initiatives in the Middle East
S&W’s Initiatives in the Middle East In-store activations in Israel supermarket – Sampling with Promoter Girls 26
Slide 27: Products – Asia through S&W
Products – Asia through S&W 27
Slide 28: FieldFresh India
FieldFresh India Meet the olive oil with multiple benefits. Our new Olive Oil can be used in many beautiful ways. Take your pick and experience the goodness now! Amassaging Ahair oll Nourishes your oil for your for long and skin. Contains baby* shiny hair natural Vitamin 28 | Eig etter e gets Bett
Slide 29: Products - India
Products - India Del Monte in India 3 29 Life gets Better 2 eee
Slide 30: Sustainability
Sustainability • Waste-to-energy project underway – to be operational in Jan-Mar 2015, and expected to supply 60% of the Group’s cannery power requirements • Developed a framework for stakeholder relations team to identify business issues with stakeholder issues • Del Monte Foundation partnered with
Slide 31: Outlook
Outlook • Expects to generate higher earnings on a recurring basis in FY2015 as the Group drives both topline growth across its key markets in the USA, the Philippines and rest of Asia, optimises synergies and actively manages cost. • Cash flow generation will continue to be strong in the current fi
Slide 32: Outlook
Outlook • Given the timing of the acquisition towards the end of the fiscal year in April 2014, a majority of DMFI’s re-valued inventory will be sold in the financial year ending April 2015, and will continue to impact the Group’s bottomline. • New inventory produced in the current financial year wi
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