Slide 1: Del Monte Pacific 4Q FY2020 Results
T 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 ES . EVERY DAY. ® D E L M O NT E PACIFIC 4Q F Y 2 0 2 0 R E S U L T S 23 July 2020 NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. ®
Slide 2: Disclaimer
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 ES . EVERY DAY. ® 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 assum
Slide 3: Contents
CONTENTS ▪ Summary ▪ 4Q FY2020 Results ▪ Full Year FY2020 Results ▪ Market Updates ▪ Private Equity Investment in DMPI ▪ Sustainability ▪ Dividends ▪ Outlook 3
Slide 4: Notes to the 4Q FY2020 Results
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 ES . EVERY DAY. ® NOTES TO THE 4Q FY2020 RESULTS ▪ Fourth quarter is from 1 February 2020 to 30 April 2020. ▪ DMPL’s effective stake in DMFI is 89.4%, hence the non controlling interest line (NCI) in the P&L. Net income/(loss) is net of NC
Slide 5: 4Q FY2020 Highlights
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 ES . EVERY DAY. ® 4Q FY2020 HIGHLIGHTS ▪ Group sales expanded by 48% due to pandemic-driven higher consumption of healthy and culinary home products - USA sales up 65% and Philippines sales up 18% ▪ EBITDA increased by 44% to US$55.9m, but
Slide 6: Outlook
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 ES . EVERY DAY. ® OUTLOOK ▪ To meet sustained demand for our trusted, healthy shelf-stable products, we will continue to optimise our production facilities while implementing strict safety measures ▪ Our strategy is to strengthen the core
Slide 7: DMPL 4Q FY2020 Group Results Summary
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 ES . EVERY DAY. ® DMPL 4Q FY2020 GROUP RESULTS SUMMARY ▪ Sales of US$638.4m, +48% Sales % Change US +65 Philippines +18 (in peso terms +15) S&W -16 FieldFresh India (equity accounted) -15 (in rupee terms -14) All figures below without one-
Slide 8: DMPL 4Q FY2020 One-off Expense/(Income)
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V ES . EVERY DAY. ® DMPL 4Q FY2020 ONE-OFF EXPENSE/(INCOME) *Other Income/Expense 8
Slide 9: DMPL 4Q FY2020 Results – As Reported
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V ES . EVERY DAY. ® DMPL 4Q FY2020 RESULTS – AS REPORTED 4Q 4Q In US$m Chg (%) Comments FY2019 FY2020 Higher USA, Philippines and S&W packaged sales due to Turnover 432.6 638.4 +47.6 pandemic Gross profit 81.6 113.4 +39.0 Higher volume more
Slide 10: DMPL 4Q FY2020 Turnover Analysis
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 ES . EVERY DAY. ® DMPL 4Q FY2020 TURNOVER ANALYSIS 2% 19% Americas 79% Asia Pacific Europe Americas +65.2% ▪ Higher volume due to the surge in demand from the pandemic ▪ Higher sales for Contadina from distribution gains ▪ Higher sales of
Slide 11: DMPL FY2020 Group Results Summary
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 ES . EVERY DAY. ® DMPL FY2020 GROUP RESULTS SUMMARY ▪ Sales of US$2.1bn, +8.9% Sales % Change US +8 Philippines +10 (in peso terms +7) S&W +9 FieldFresh India (equity accounted) -1 (in rupee terms +1) All figures below without one-off item
Slide 12: DMPL FY2020 One-off Expense/(Income)
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V ES . EVERY DAY. ® DMPL FY2020 ONE-OFF EXPENSE/(INCOME) *Other Income/Expense **In preparation for its capital raising initiatives, DMPL’s Philippine subsidiary, Del Monte Philippines, Inc (DMPI), declared a dividend to its parent in the fi
Slide 13: DMPL FY2020 Results – As Reported
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V ES . EVERY DAY. ® DMPL FY2020 RESULTS – AS REPORTED In US$m FY2019 FY2020 Chg (%) Comments Turnover 1,954.8 2,128.3 +8.9 Higher sales in USA, Philippines and S&W Asia Gross profit 395.0 452.2 +14.5 Higher volume, better sales mix, higher p
Slide 14: DMPL FY2020 Turnover Analysis
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 ES . EVERY DAY. ® DMPL FY2020 TURNOVER ANALYSIS 2% 26% Americas 72% Asia Pacific Europe Americas +8.8% ▪ Surge in demand across all categories attributed to the pandemic ▪ New product launches Asia Pacific +9.3% ▪ Philippines sales were up
Slide 15: Market Updates for 4Q FY2020
15 Market Updates for 4Q FY2020
Slide 16: USA
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 ES . EVERY DAY. ® USA Market Share (#1) Market Share (#1) Market Share (#2) Market Share (#2) Canned Vegetable Canned Fruit Fruit Cup Snacks Canned Tomato ▪ Strong category growth momentum, particularly in core centre store, as consumer be
Slide 17: Del Monte Foods USA 4Q Results
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 ES . EVERY DAY. ® DEL MONTE FOODS USA 4Q RESULTS DMFI’s 4Q sales surged 62% to US$500.4m ▪ Consumers pantry-loading and staying at home amidst the coronavirus pandemic ▪ Trusted, healthy shelf-stable products ▪ Most of the sales were throu
Slide 18: USA – COVID-19 Communication
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 ES . EVERY DAY. ® USA – COVID-19 Communication Inspiration, Education, Gratitude In response to COVID-19, DMFI published several social media posts thanking essential workers on the frontlines, providing cooking inspiration for consumers a
Slide 19: Bubble Fruit – Costco Rotation
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 ES . EVERY DAY. ® Bubble Fruit – Costco Rotation Del Monte Bubble Fruit® in Club Channel Sales Highlights • Distribution in 6 out of 8 Costco divisions • Great velocity • Additional distribution gains in FY2021 19
Slide 20: USA - Foodservice
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 ES . EVERY DAY. ® USA - FOODSERVICE Strong Surge in Pineapple Upgrade at Supporting COVID-19 Fruit Cup Demand Pieology Pizzeria Relief Efforts • To offset the economic impact • As Foodservice consumption • Pieology Pizza, a create-your- of
Slide 21: FY2020 Asset-Light Strategy
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 ES . EVERY DAY. ® FY2020 ASSET-LIGHT STRATEGY ▪ Already closed/sold four plants in the USA in FY2020 ▪ DMFI’s Asset-Light Strategy has been a critical step in repositioning DMFI for the future ▪ Execution of this strategy and other cost sa
Slide 22: Subsequent Event - DMFI Refinancing
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 ES . EVERY DAY. ® SUBSEQUENT EVENT - DMFI REFINANCING ▪ On 15 May 2020, we completed the refinancing of DMFI and raised new financing of US$1.3bn: o US$500m five-year bond issue at 11.875% p.a. o US$450m three-year Asset-Based Loan o US$37
Slide 23: Philippines
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 ES . EVERY DAY. ® PHILIPPINES Market Share (#1) Market Share (#1) Market Share (#1) Packaged Pineapple Canned Mixed Fruit RTD Juices ex-SUP* Market Share (#1) Market Share (#1) Tomato Sauce Spaghetti Sauce ▪ Del Monte has further improved
Slide 24: Philippines
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 ES . EVERY DAY. ® PHILIPPINES ▪ In 4Q, the Philippines domestic market further accelerated its strong performance with sales +18% in US dollar terms and 15% in Peso terms ▪ Retail grew by 29%, resulting in Del Monte’s market share gain acr
Slide 25: Philippines – Culinary (Cooking Ingredients and Aids)
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 ES . EVERY DAY. ® PHILIPPINES – CULINARY (Cooking Ingredients and Aids) 4Q programmes focused on helping Moms with menu planning, especially as the pandemic and nationwide quarantine led to a steep rise in home cooking and a need for idea
Slide 26: Philippines – Culinary (Spaghetti and Pasta)
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 ES . EVERY DAY. ® PHILIPPINES – CULINARY (Spaghetti and Pasta) Highlighted restaurant-quality dishes, now achievable at home, given that the COVID environment and nationwide quarantine meant that consumers missed being able to eat out and
Slide 27: Philippines - Beverage
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 ES . EVERY DAY. ® PHILIPPINES - BEVERAGE Del Monte beverages are highlighting health benefits directly related to stronger immune systems, and providing lockdown- relevant health tips Continuous airing of the 100% Del Monte Juice Drinks “J
Slide 28: Philippines - Fruits
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 ES . EVERY DAY. ® PHILIPPINES - FRUITS Core communications focused on Communications designed to be even more increasing consumption: relevant in COVID environment: Mixed Fruits: in-home, small scale celebrations “Stay- Lebrations” Canned
Slide 29: S&W Asia
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 ES . EVERY DAY. ® S&W ASIA ▪ COVID-19 started in China which is S&W’s largest market in Asia ▪ E-commerce and digital are growing with North Asia having the largest share of E-commerce pie: S&W is actively developing this channel To drive
Slide 30: S&W Asia
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 ES . EVERY DAY. ® S&W ASIA ▪ Sales of the S&W branded business in Asia and the Middle East declined in 4Q o Higher sales of healthy shelf-stable packaged products such as canned pineapples, beans, corn and juices o But more than offset by
Slide 31: S&W in Singapore
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 ES . EVERY DAY. ® S&W IN SINGAPORE Launch of Pinabar Machine in Singapore Location: NTUC Fairprice Hyper, Ang Mo Kio Hub Offering added value and convenience to consumers, an automated Pinabar machine is placed in the supermarket to cut an
Slide 32: FieldFresh India
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 ES . EVERY DAY. ® FIELDFRESH INDIA ▪ DMPL’s share of loss in 4Q was US$0.9m, versus prior year quarter’s US$0.3m due to lower sales of branded packaged products mainly from COVID-19 impact and higher cost of commodities ▪ Foodservice accou
Slide 33: India Social Media Campaign – Cook Like Never Before
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 ES . EVERY DAY. ® INDIA Social Media Campaign – Cook Like Never Before As consumers were forced to stay and work from home due to the lockdown, they were hard pressed to cook multiple meals at home with no help available. Del Monte stepped
Slide 34: India Campaign Extension – Online Communities
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 ES . EVERY DAY. ® INDIA Campaign Extension – Online Communities We also extended the campaign to online food and mom communities to increase top of mind and saliency for the brand Food Communities Mom Community • Engaged with two communiti
Slide 35: Private Equity Investment in DMPI
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 ES . EVERY DAY. ® PRIVATE EQUITY INVESTMENT IN DMPI ▪ We completed the private equity investment of DMPL’s 12% stake in Del Monte Philippines, Inc (DMPI) for US$120m to a private equity investor ▪ Implied equity value of US$1bn for DMPI at
Slide 36: Sustainability
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 ES . EVERY DAY. ® SUSTAINABILITY ▪ DMPL continued producing food amidst the pandemic lockdown to meet demand for nutritious shelf-stable food ▪ The Group ensured the health and safety of its workforce through guidelines of global health or
Slide 37: Dividends
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 ES . EVERY DAY. ® DIVIDENDS In view of the successful private equity investment of a 12% stake in Del Monte Philippines and the net gain of US$77m, the Board approved a special dividend of 1.54 US cents (US$0.0154) per share to Common Shar
Slide 38: Outlook
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 ES . EVERY DAY. ® OUTLOOK ▪ To meet sustained demand for our trusted, healthy shelf-stable products, we will continue to optimise our production facilities while implementing strict safety measures ▪ Our strategy is to strengthen the core