Slide 1: Del Monte Pacific Corporate Presentation
DEL MONTE PACIFIC A GLOBAL HERITAGE BRANDS COMPANY CORPORATE PRESENTATION 26 May 2023 Nourishing Families. Enriching Lives. Every Day.
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 ▪ Overview ▪ USA Transformation ▪ Asia Initiatives ▪ Financials ▪ Strategy, Outlook ▪ ESG and Awards ▪ Investment Merits
Slide 4: Company Overview
Company Overview ▪ Del Monte Pacific is one of the largest branded F&B companies listed in DMPL 9M FY2023 Southeast Asia (ending Jan) SALES by Geography ▪ 137-year heritage with exclusive rights to premium brands Del Monte and 2% S&W in certain geographies and product categories 11% ▪ Dual-listed in
Slide 5: Brand Ownership
Brand Ownership 5
Slide 6: Heritage Brands
Heritage Brands * 1886 1896 1914 1923 ▪ Nutritious as fresh ▪ Finest quality ▪ Italian heritage ▪ Premium ingredients ▪ All natural ▪ Healthy ▪ Premium quality ▪ Taste of home USA and South P P P P North and South America America Mexico Conagra P P P Central America Del Monte Panamerican P P P & Car
Slide 7: Major Subsidiaries
Major Subsidiaries 93.6% 87.0% Del Monte Foods, Inc. (DMFI) Del Monte Philippines, Inc. (DMPI) STRONG TRAJECTORY GROWING REVENUES AND PROFITS ▪ 137 years of heritage ▪ 97 years in the Philippines with significant brand resonance ▪ A leading producer, distributor and marketer of ▪ #1 exporter of fres
Slide 8: Diversified and Attractive Product Categories
Diversified and Attractive Product Categories Packaged Fruit and Fresh Fruit Culinary Beverage Vegetable and Others ▪ Packaged fruit and ▪ Includes tomato-based ▪ Includes sales of S&W ▪ Beverage includes 100% vegetable under the products such as tomato branded fresh pineapples pineapple juice, juic
Slide 9: Long-Standing Market Leadership Across Multiple Categories
Long-Standing Market Leadership Across Multiple Categories 22.0% #1 21.9% #1 30.1% #2 6.2%* #3 FRESH PINEAPPLE Source for market shares: Nielsen RMS / Scantrack DMFI Custom DBs, Eq Vol share, Total xAOC, Latest 3M ending 28 January 2023 Region Market Share China 53% Japan 95.7% within South Korea To
Slide 10: Large Global Business and Vertically Integrated Pineapple Operations
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E V E R Y DAY. ® Large Global Business and Vertically Integrated Pineapple Operations PRODUCTION FACILITIES DISTRIBUTION REACH USA 6 USA Taiwan Cambodia UAE Turkey Portugal Canada Mongolia Indonesia Saudi Arabia Cyprus Poland Mexico
Slide 11: Premium MD2 Pineapple
Premium MD2 Pineapple Premium MD2 Pineapple vs. Other Varieties(2) Plantation Nicer shape ▪ DMPL grows 2 types of pineapple – C74 which is mostly processed Better taste favored by and MD2 which is mostly sold as fresh North Asian consumers(3) Longer shelf life ▪ Of the total land of 28,000-ha., c. 8
Slide 12: Efficient Operating Footprint in North America
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E V E R Y DAY. ® Efficient Operating Footprint in North America T w 12 12
Slide 13: Strong Multi-Channel Distribution Network Built on Strategic Partnerships
Strong Multi-Channel Distribution Network Built on Strategic Partnerships USA OFFLINE PHILIPPINE OFFLINE(2) Strong presence across the Top 10 largest US grocers(1) Key Accounts 1 4 7 General Trade 109,000 Outlets Modern Trade 7,800 Outlets 2 5 8 Foodservice 14,000 Outlets 3 6 9 Convenience and Other
Slide 14: Strong Multi-Channel Distribution Network (cont'd.)
Strong Multi-Channel Distribution Network Built on Strategic Partnerships (cont’d.) ASIA OFFLINE PACKAGED FRESH Pagoda Eachtake Yonghui Hema Xianfeng 神戸真田貿易株式会社 ASIA ONLINE T Dingdong Hema Miss Fresh Pinduoduo EUROPE OFFLINE 14
Slide 15: Experienced Management Team Anchored by Supportive Shareholder
Experienced Management Team Anchored by the Company’s Highly Supportive Shareholder Strong shareholder sponsorship from the Strong management team across USA and Philippines with wide-ranging Campos Family (1) experience in international markets Joselito D. Campos, Jr. and Rolando C. Gapud Joselito
Slide 16: USA Journey and Transformation
USA Journey and Transformation
Slide 17: DMFI's Journey
DMFI’s Journey ▪ DMPL acquired Del Monte Foods, Inc. (DMFI) in 2014 for US$1.675bn or 9x EBITDA ▪ Financed by: ✓ Debt: US$1.15bn (US$970m LBO loans by DMFI and US$180m loans by DMPL) ✓ Equity: US$525m (US$75m equity, US$150m Rights and US$300m Preference Shares) ▪ Turned around in FY2021 and sustain
Slide 18: DMFI's Transformation
DMFI’s Transformation DEL MONTE THEN DEL MONTE NOW Exclusive focus on center of store Portfolio extended into high-growth grocery categories categories sold across diverse channels Limited innovation and investment to Revitalized and strengthened brands supported by contemporize brands category-lead
Slide 19: Innovation Aligned with Consumer Trends
Innovation Aligned with Consumer Trends Supports flexitarian On-the-go offerings to Enhanced Perceived as the Support cooking diets and functional support remote work demand for highest quality convenience food demand and distance learning everyday value New Products are now 7% of sales 19
Slide 20: Growth Initiatives and Deleveraging
Growth Initiatives and Deleveraging 20
Slide 21: Asia Initiatives
Asia Initiatives
Slide 22: Philippines Value Offering
Philippines Value Offering An excellent assortment of value for money packs, 28% of FY2023 sales LOW CASH OUTLAY PACKS VALUE BUNDLES TOMATO SAUCE and PASTE SPAGHETTI SAUCE TOMATO SAUCE SPAGHETTI SAUCE 1kg Singles MP Buy 2, Get 1 USD 2.28 90g 115g USD 0.21 USD 0.30 250g USD 0.55 500g Singles MP REGUL
Slide 23: Philippines Innovation
Philippines Innovation Innovation accounts for 7% of total Philippine Sales Combined addressable market of these products is US$3.5bn Potato Crisp Flavor Range: Original, Spicy; New in FY2023: Cheese, BBQ, 20g Del Monte Vinamilk Range Flavor Range: Fresh Milk; Wintermelon Milk Tea; IQ Smart Chocolat
Slide 24: International Innovation
International Innovation Innovation accounts for 12% of Total International Sales Total sales potential of these products is US$100m NICE FRUIT Frozen Snacks Japan China Hong Kong Singapore Middle East Saudi Europe Canada US 7-11 Family Mart, U-Select Popeyes McDonald’s Arabia Lamex/KFC McDonald’s D
Slide 25: S&W Fresh Pineapple
S&W Fresh Pineapple • Total fresh sales grew by 18% in 9M FY2023 • Continue to expand into Tier 2-3 cities in China with the sustained strong support of its distributors • Continue with fresh cut expansion programs in Japan and wholesale expansion in South Korea • Expand e-commerce business • Sustai
Slide 26: DMPL Group Financials, Strategy and Outlook
DMPL Group Financials, Strategy and Outlook
Slide 27: 5-Year Financials
5-Year Financials Significant turnaround in profit and margins 27
Slide 28: 9M FY2023 Results ending Jan 2023
9M FY2023 Results ending Jan 2023 In US$m 9M FY2022 9M FY2023 Chg (%) Comments Turnover 1,772.5 1,836.7 +3.6 Higher sales in USA and international markets Gross profit 475.1 489.2 +3.0 Same as above plus active cost management Gross margin (%) 26.8 26.6 -0.2ppt Price increases covered higher costs E
Slide 29: Strong Environmental, Social and Governance Ethos
Strong Environmental, Social and Governance Ethos Sustainability Inspires What We Do 29
Slide 30: Key Sustainability Goals
Key Sustainability Goals Better Nutrition 1 Responsible ESG Ethos Sourcing 4 Net Zero Waste Reduction 30
Slide 31: Governance, Awards
> Governance, Awards C SINGAPORE 2 CORPORATEAWARDS 15 Awards iA Best Managed Board Gold 2010 | 2015 Silver 2022 Best Chief Financial Officer 2010 Best Investor Relations Gold 2011 | 2017 Bronze 2014 Best Annual Report Gold 2019 Silver 2013 | 2018 Bronze 2010 | 2012 | 2014 | 2016 | 2017 NOURISHING FA
Slide 32: Our Strategies
Our Strategies 1 2 3 Continue to innovate Expand leadership in Continue executing on the and elevate Del Monte’s premium fresh Company’s operational and commercial excellence brand heritage pineapples • Drive margin enhancement • Capture new growth • Enhanced distribution • Maintain strong distribut
Slide 33: Outlook
Outlook ▪ Consumers becoming more cautious with their spending and cost pressures persisting ▪ Remain vigilant in managing our operating expenses which include: ✓ packaging materials optimization; ✓ power and fuel initiatives; ✓ investments in plants to improve efficiency, productivity and minimize
Slide 34: Investment Merits
Investment Merits Solid Fundamentals Growth Drivers • Well-known premium Del Monte and S&W • DMFI’s sustained growth brands • S&W fresh pineapple exports • Long heritage of 137 years • New product categories / innovation • Leading market shares in the USA, Philippines • Deeper reach in existing mark
Slide 35: Thank You
Thank You For enquiries, pls contact: Jennifer Luy Investor Relations Manager jluy@delmontepacific.com www.delmontepacific.com