Hormel Foods Corporation · NYSE:HRL
Hormel Foods — dbAccess Global Consumer Conference 2019
38 slides from Hormel Foods's conference presentation, Jun 11, 2019
Slide 1: dbAccess Global Consumer Conference
dbAccess Global Consumer Conference
Slide 2: Jim Snee, Chairman, President, and CEO
Jim Snee Chairman, President, and CEO
Slide 3: Legal Disclosure
Legal Disclosure This presentation contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement regarding “Forward- Looking Statements” and “Risk Factors” on pages 35-41 in the Company’s Form 1
Slide 4: Includes 2019 declared increase
* *Includes 2019 declared increase
Slide 5: Unique Ownership and Culture
Unique Ownership And Culture Ownership as of 4/28/2019
Slide 6: Why Hormel Foods?
Why Hormel Foods? • A TRACK RECORD OF SUCCESS • A Commitment to Our Food Journey • A Clear Strategy for Long-Term Growth
Slide 7: Hormel Foods: A Global Branded Food Company
Hormel Foods: A Global Branded Food Company International 7% U.S. Retail 53% U.S. Deli 10% U.S. Foodservice 30% Net 27% Sales Fiscal 2019, H1 Data
Slide 8: Strong, Branded Presence Across the Food Space
Strong, Branded Presence Across the Food Space *IRI 52 weeks ending 11-4-2018 - MULO
Slide 9: We Have Grown Earnings 29 Out of 33 Years
We Have Grown Earnings 29 Out of 33 Years 2019 EPS Guidance $1.71 - $1.85 $2.00 $1.50 $1.00 $0.50 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Internal data
Slide 10: Disciplined and Strategic Capital Allocation
Disciplined and Strategic Capital Allocation INVESTING $5.1B Cash from Operations RETURNING IN THE CASH TO BUSINESS 2014 – 2018 SHAREHOLDERS CAPEX ACQUISITIONS DIVIDENDS REPURCHASES $1.2B $985 $2,362 $2.9B $0.3B $1.5B Internal data
Slide 11: Disciplined Investments Deliver High ROIC
Disciplined Investments Deliver High ROIC ROIC 18% % 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 PEERS Factset data based on fiscal 2014-2018 data for Hormel Foods and time relative data for peers listed in Company 2018 proxy statement.
Slide 12: Commitment to Returning Cash to our Shareholders
Commitment to Returning Cash to our Shareholders Dividends Per Share *Internal data; includes 2019 declared increase
Slide 13: Why Hormel Foods?
Why Hormel Foods? • A Track Record of Success • A COMMITMENT TO OUR FOOD JOURNEY • A Clear Strategy for Long-Term Growth
Slide 14: Our Food Journey
Slide 15: Investing in our People and Partners
Investing in our People and Partners Internal data
Slide 16: Improving Communities Where We Live and Work
Improving Communities Where We Live and Work On Track to Achieve 2020 Goals
Slide 17: Improving Communities Where We Live and Work
Improving Communities Where We Live and Work
Slide 18: Improving Communities Where We Live and Work
Improving Communities Where We Live and Work
Slide 19: Improving Communities Where We Live and Work
Improving Communities Where We Live and Work Internal data
Slide 20: Creating Products to Improve Customer's Lives
Creating Products to Improve Customer’s Lives Supporting Nutrition and Well-Being Natural
Slide 21: Why Hormel Foods?
Why Hormel Foods? • A Track Record of Success • A Commitment to Our Food Journey • A CLEAR STRATEGY FOR LONG-TERM GROWTH
Slide 22: Our Formula for Success
Our Formula for Success Building brands Innovation Acquisitions Balanced portfolio
Slide 23: Making Progress on Strategic Initiatives
Making Progress on Strategic Initiatives Evolving to a broader food company Expanding and accelerating foodservice Becoming a more global food company
Slide 24: Making Progress on Strategic Initiatives
Making Progress on Strategic Initiatives Reducing volatility and increasing balance COMMODITY VALUE-ADDED PROFITS PRODUCTS Divesting non-strategic assets FREMONT PLANT Modernizing our supply chain SIMPLIFY MODERNIZE OPTIMIZE RATIONALIZE
Slide 25: The Evolution of Refrigerated Foods
The Evolution of Refrigerated Foods 2018 2018 Net Sales Segment Profit Grocery Grocery Products Products 26% 29% Refrigerated $9.5B Refrigerated $1.2B Foods Foods 50% Jennie-O 50% Jennie-O Turkey Store Turkey Store International 17% International 14% & Other & Other 7% 7%
Slide 26: Tom Day, EVP, Refrigerated Foods
Tom Day Executive Vice President, Refrigerated Foods
Slide 27: The Evolution of Refrigerated Foods
The Evolution of Refrigerated Foods Operating Margin Sales by Channel Sales by Channel 2013 2018 12.9% Commodity & Commodity & Other Other Foodservice Foodservice Deli $4.3B $4.8B 5.5% Retail & Retail Deli 2013 2018 Internal data
Slide 28: A History of Consistent, Positive Mix Shift
A History of Consistent, Positive Mix Shift Value-Added Sales Growth Consistently Adding Value to Our Products Refrigerated Foods Approximately 85% Approximately 70% 2013 2018 Internal data – Excludes Farmer John related sales
Slide 29: Accelerating Profit Growth Through Intentional Action
Accelerating Profit Growth Through Intentional Action Segment Profit Growth Organic Growth 22% $618M CAGR M&A $233M Business Exits 2013 2018 PRECEPT FOODS FREMONT PLANT Internal data
Slide 30: Expanding and Accelerating Foodservice
Expanding and Accelerating Foodservice Direct Sales Force Relationships Innovation
Slide 31: Our Leading Brands Drive Results at Retail
Our Leading Brands Drive Results at Retail #1 Brands Convenience Bacon 57% 44% 69% Share Share Share Lunchmeats Ribs 52% 36% 27% Share Share* Share IRI L52W 4/21/2019 Dollar Share * SPINS L52W 4/21/19 Dollar Share
Slide 32: Today's Deli... has Evolved
Today’s Deli… has Evolved
Slide 33: Bulk Deli Meat
Bulk Deli Meat Go (RN (29) as
Slide 34: Prepared Foods
Prepared Foods %, -=_ oxic) SE
Slide 35: Grab & Go
Grab & Go
Slide 36: Refrigerated Foods Our Formula for Success
Refrigerated Foods Our Formula for Success Building brands Innovation Acquisitions Balanced portfolio Commodity & Other Foodservice Deli Retail
Slide 37: Hormel Foods A Long-Term Growth Story
Hormel Foods A Long-Term Growth Story • A Track Record of Success • A Commitment to Our Food Journey • A Clear Strategy for Long-Term Growth
Slide 38: dbAccess Global Consumer Conference
dbAccess Global Consumer Conference
Hormel Foods — dbAccess Global Consumer Conference 2019 on 6ix