Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Barclays Global Consumer Staples Conference 2022
23 slides from Hormel Foods's conference presentation, Sep 6, 2022
Slide 1: Barclays Global Consumer Staples Conference
Barclays Global Consumer Staples Conference Tuesday, September 6
Slide 2: Jim Snee, Chairman of the Board, President and CEO
Jim Snee Chairman of the Board, President and CEO 2 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking” information within the meaning of the federal securities laws. The “forward-looking” information may include statements concerning the company’s outlook for the future as well as other statements of beliefs, future plans, strate
Slide 4: Our Evolution as a Global Branded Food Company
Our Evolution as a Global Branded Food Company Pre-2013 2013-2019 2020+ Meat-centric Protein-centric Global branded company company food company • Pork and turkey • Expanded beyond meat protein • Global • Retail-focused • Strong growth from foodservice • Leading retail and • Commodity-driven • De-ri
Slide 5: Strategic Actions Driving our Evolution
Strategic Actions Driving our Evolution Announced Divestiture Business Transformation Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Long-term Pork Supply Agreement 2013 Today Fremont Plant Divestiture Divestiture Divestiture Acquisition Acquisition 5
Slide 6: The Next Step in our Evolution as a Global Branded Food Company
• Elevates our clear strategic growth priorities: consumer-centric retail and customer-solution- oriented foodservice • Aligns our business to our customers, consumers and operators • Deepens our sales capabilities and simplifies our approach to customers and operators The Next Step in our Evolution
Slide 7: Six Strategic Priorities
Six Strategic Priorities Expand leadership in Foodservice Leveraging our expertise and partnerships in emerging channels Protect and grow our core brands Keeping our brands relevant and strong Aggressively develop our global presence Bringing meaningful scale to select global markets Amplify scale i
Slide 8: Our New Strategic Operating Model Creates Three Fully Empowered Segments
Our New Strategic Operating Model Creates Three Fully Empowered Segments 8
Slide 9: Leveraging our Leading Consumer Brands and Scale in the Marketplace
Leveraging our Leading Consumer Brands and Scale in the Marketplace Strategic Priorities U.S. Retail Channel Differentiated Capabilities Expand leadership in foodservice Protect and grow our core brands Aggressively develop our global presence DIRECT REVENUE GROWTH DIGITAL MANAGEMENT EXPERIENCE SALE
Slide 10: Organizing our Retail Pillars to Effectively Allocate Resources and Drive Growth
Organizing our Retail Pillars to Effectively Allocate Resources and Drive Growth Convenient Snacking Value- Global Emerging Bacon Meals and and Added Flavors Brands Proteins Entertaining Meats 10
Slide 11: Delivering High-Quality, Innovative Culinary Solutions with an Operator-First Mentality
Delivering High-Quality, Innovative Culinary Solutions with an Operator-First Mentality Strategic Priorities U.S. Foodservice Channel Differentiated Capabilities Expand leadership in foodservice Protect and grow our core brands Aggressively develop our global presence DIRECT SALES INNOVATION FORCE A
Slide 12: Combining Brands Across the Organization to Drive Accelerated Growth
Combining Brands Across the Organization to Drive Accelerated Growth Hormel Foods Jennie-O Turkey Store Affiliated Businesses 12
Slide 13: Accelerating International Growth Across Markets and Business Models
Accelerating International Growth Across Markets and Business Models Strategic Priorities International Channel Go-to-Market Strategies Expand leadership in foodservice MULTI-NATIONAL PARTNERSHIPS EXPORTS BUSINESSES Protect and grow our core brands Aggressively develop our global presence Amplify sc
Slide 14: Jacinth Smiley, Executive Vice President and Chief Financial Officer
Jacinth Smiley Executive Vice President and Chief Financial Officer 14 14
Slide 15: Three Fully Empowered Segments Supported by Brand Fuel, One Supply Chain and Centers of Excellence
Three Fully Empowered Segments Supported by Brand Fuel, One Supply Chain and Centers of Excellence Strategic Priorities Expand leadership in foodservice Protect and grow our core brands Aggressively develop our global presence Amplify scale in snacking and entertaining Enhance growth of our ethnic a
Slide 16: Supporting our Businesses with Brand Fuel and One Supply Chain
Supporting our Businesses with Brand Fuel and One Supply Chain Brand Fuel One Supply Chain Centralized Purchasing and Logistics Functions INNOVATION INSIGHTS & ANALYTICS Demand and Supply Planning Asset Assessment and Optimization DIGITAL EXPERIENCE GROUP 16
Slide 17: Maintaining our Disciplined Capital Allocation Strategy
REQUIRED Maintaining • • Increase Dividend Maintenance CapEx our Disciplined • • Mandatory Debt Repayment Pension Obligations Capital STRATEGIC Allocation • • Growth CapEx Incremental Dividend Increases Strategy • • Acquisitions Investments in Working Capital Driving Long-Term Growth and OPPORTUNIST
Slide 18: Our Capital Allocation Strategy is Aligned with our Priorities - Required
Our Capital Allocation Strategy is Aligned with our Priorities - Required Increase Dividend REQUIRED 56 94 Maintain Dividend Consecutive Years of Dividend Years of Dividend Payments Aristocrat • Increase Dividend Increases Without Interruption Membership • Maintenance CapEx Maintenance CapEx Mandato
Slide 19: Our Capital Allocation Strategy is Aligned with our Priorities - Strategic
REQUIRED Our Capital Allocation Strategy is Aligned • Increase Dividend with our Priorities • Maintenance CapEx - Strategic • Mandatory Debt Repayment Growth CapEx • Pension Obligations STRATEGIC ~$200M Annually Based on the Primarily for Capacity, • Growth CapEx Needs of the Innovation, Automation
Slide 20: Our Capital Allocation Strategy is Aligned with our Priorities - Opportunistic
Our Capital Allocation Strategy is Aligned with our Priorities - Opportunistic STRATEGIC Share Repurchases • Growth CapEx Opportunistic and Current Authorization to • Incremental Dividend Increases Based on our Internal Repurchase • Acquisitions Valuation • Investments in Working Capital ~4M Shares
Slide 21: Our New Operating Model Supports our Realistic and Achievable Long-Term Key Results
Our New Operating Model Supports our Realistic and Achievable Long-Term Key Results Net Sales Operating Profit Innovation 2-3% 5-7% 15% Organic Net Operating Profit of Net Sales from Sales Growth Growth Innovation* *Based on net sales for new items launched within the previous three years and the pr
Slide 22: Barclays Global Consumer Staples Conference
Barclays Global Consumer Staples Conference Tuesday, September 6
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures NON-GAAP FINANCIAL MEASURES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The non-GAAP adjusted financial measures of net debt, EBITDA Net Debt and Adjusted EBITDA are useful to management and investors Quarter Ended as indicators of operating strength. Net debt is define
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