John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Southwest IDEAS Investor Conference 2012
59 slides from John B. Sanfilippo & Son's conference presentation, Nov 14, 2012
Slide 1: Southwest IDEAS Investor Conference November 15, 2012
Southwest IDEAS Investor Conference November 15, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements in this presentation constitute “forward-looking statements” about John B. Sanfilippo & Son, Inc. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets i
Slide 3: The Global Source for Nuts: Introduction to JBSS
The Global Source for Nuts Introduction to. JBSS
Slide 4: Who We Are—JBSS
Who We Are—JBSS • One of the largest nut processors in the world with fiscal 2012 annual sales in excess of $700 million • State-of-the-art nut processing capabilities, including what we believe is the single largest nut processing facility in the world • North American market leader in every major
Slide 5: Who We Are—JBSS Corporate Vision and Core Values
Who We Are—JBSS Corporate Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer. Core Values Integrity Innovation Safety People Execution Resource Conservation Investment Quality Customer Driven Cont
Slide 6: Who We Are – JBSS Selling Channels
Who We Are – JBSS Selling Channels • Consumer Channel – sale of nuts and dried fruits to major food retailers • Branded Business: • Fisher Baking—#2 national market share • Fisher Snack – Midwest market leader • Orchard Valley Harvest – full line natural nuts and dried fruit products sold in the pro
Slide 7: Where We've Been – FY 2008
Where We’ve Been – FY 2008 • Diversified nut business with high emphasis on bulk and ingredient sales to industrial, foodservice and export customers • Consumer sales included low margined and/or high SKU count private brand customers, less emphasis on branded sales Total FY 2008 Sales: $542 Million
Slide 8: Where We Are Today – FY 2012
Where We Are Today – FY 2012 • Acquisitions as part of strategy to drive future growth and profitability – e.g. Orchard Valley Harvest • Shifting company profile away from riskier commodity business to more value-added consumer business • Focus on building our branded (Fisher and Orchard Valley Harv
Slide 9: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type • We believe we offer the most complete product portfolio of nuts in the U.S. • Comprehensive variety of value-added products • Wide assortment of other snack products • Most versatile styles and sizes, customized to customer specifications • Benefits • Appeals to ma
Slide 10: We Are Experts in Procurement
We Are Experts in Procurement Pecans Peanuts Walnuts Almonds 10
Slide 11: We Are Experts in Procurement – Sourcing Origins
We Are Experts in Procurement Pecans, Peanuts, Walnuts, Almonds Pine Nuts United States China Pecans, Pine Nuts Mexico Cashews Cashews India Vietnam Macadamias Macadamias Hawaii Guatemala Cashews Brazil Macadamias Australia Macadamias South Africa 11
Slide 12: We Reach Consumers in 20+ In-Store Points
We Reach Consumers in 20+ In-Store Points 12 12
Slide 13: We Have Total Supply Chain Knowledge
We Have Total Supply Chain Knowledge* Cold Storage Cleaning & Inspection We Start at The Source with Growers Shelling, Sizing, Shipping Packaging Roasting Blanching, Slice/Dice Non Shelling Nut Companies Delivered Only Start Here to You * Sheller of peanuts, walnuts and pecans; one of the largest US
Slide 14: Our Facilities Are Strategically Located
Our Facilities Are Strategically Located Elgin, IL Houston • Across the country our combined production/distribution locations allow us to ship to nearby customer distribution centers/divisions, resulting in quick reaction time and efficient shipping costs 14
Slide 15: State-of-the-Art World Class Facility Elgin, IL
State-of-the Art World Class Facility Elgin, IL • 1 Million Square Feet • 350,000 sq. ft. warehouse and distribution • 160,000 sq ft. segregated cooler storage • 480,000 sq ft. manufacturing • 100,000 sq ft. office • Comprehensive Allergen Prevention Programs • State-of-the-art warehouse management
Slide 16: We Are Environmentally Responsible
We Are Environmentally Responsible Total Company Electric KwH Usage/LBS. Total Company Natural Gas Therms Usage/LBS. 0.0038 0.0700 0.0033 0.0600 0.0028 0.0500 0.0023 0.0400 0.0018 0.0300 0.0013 0.0200 0.0008 0.0100 0.0003—(0.0002) Therms 08 Therms 09 Therms 10 Therms 11 Therms 12 KwH 08 KwH 09 KwH 1
Slide 17: Systematically Identify New Opportunities: JBSS Innovation Process
We Systematically Identify New Opportunities JBSS Innovation Process Final Idea Concept Strategy Development Business Launch Tracking Generation Validation Plan 17
Slide 18: Launched Over New Products in FY12
We Launched Over 150 New Products in FY12 18
Slide 19: We Are The Customer Preferred Supplier
We Are The Customer Preferred Supplier 9-Time Category Colonel Award Winner NUTS/ SEEDS/ TRAIL MIX—PL Buyer Magazine 19
Slide 20: JBSS Strategy & Performance
The Global Source for Nuts JBSS Strategy & Performance
Slide 21: JBSS Strategic Pillars
ae JOHN B. SANFILIPPO & SON, INC. juILOING OUR FUTURE JBSS Strategic Pillars » @ EXPAND GLOBALLY cen INTEGRATED NUT TIONS SOLU’ zee see stone paE mown EXECUTION RSE SerRTOM eo
Slide 22: Accomplishments: Grow Our Brands
Accomplishments Grow Our Brands er Baking—created a best in class tegrated marketing program and gained substantial new distribution and market er Snack – stabilized distribution and unit volume sales per store per chard Valley Harvest – refreshed brand , product portfolio and positioning 22
Slide 23: U.S. Nut Category—Dollar Growth
U.S. Nut Category—Dollar Growth Category % $ Sales Baking, $571 , +7.9% 11% Trail Mix, $616 , 12% Snack, $2,572 , +18.4% 48% Produce, $1,543 , 29% +12.1% +9.2% Millions $ Total Dollar Sales Up 11.4% for Period Source: Nielsen XAOC Dollar Sales, Fiscal 2012 vs Year Ago 23
Slide 24: Strong Market Share Momentum on Fisher Recipe Nuts
Strong Market Share Momentum on Fisher Recipe Nuts… Fisher Year on Year Pound Market Share Point Change Recipe Nut Category -Total U.S. +7.6 pts 4.7 3.6 3.6 3.4 3.0 1.4 1.6 03/17/12 04/14/12 05/12/12 06/09/12 07/07/12 08/04/12 09/01/12 09/29/12 Source : Nielsen – Respective Year on Year Market Share
Slide 25: …Due to Innovation in Response to Consumer Needs
…Due to Innovation in Response to Consumer Needs YESTERDAY TODAY • Same package as everyone else • First to convert to “Freshness Seal” Stand Up Bag • No Point of Difference • Preferred 2:1 over competition* * Quantitative paired comparison test – online study conducted by Blue Chip Marketing March
Slide 26: Times Square NYC
Times Square NYC November 17, 2011 15 Million Impressions! 26
Slide 27: Supporting Fisher Recipe Nuts with Strong Branding Campaign
Supporting Fisher Recipe Nuts with Strong Branding Campaign Custom TV vignettes FoodNetwork.com Alex Guarnaschelli Food Network Magazine 27
Slide 28: Strong In-Store Support / Pallet Shippers Displays Partnerships
Strong In-Store Support 1 / 4 Pallet Shippers Displays Partnerships + 28
Slide 29: Translating into New Distribution
Translating into New Distributio 29
Slide 30: We've Freshened Up Fisher Snacks…
We’ve Freshened Up Fisher Snacks… YESTERDAY TODAY • Good awareness and • Consumers prefer “Freshness nostalgic brand image You Can See” bundle over competition •No consumer point of difference, no customer story 30
Slide 31: …and Fisher Trail Mix
…and Fisher Trail Mix YESTERDAY TODAY • No consumer recognition of • Downsized to better fit consumer Fusions sub-line “Grab & Go” occasion • Small product window • Clear Trail Mix communication; larger product window 31
Slide 32: We Are Building the Business By Getting Pounds on the Floor
We Are Building the Business By Getting Pounds on the Floor 32
Slide 33: Resulting in Strong Share Momentum on Fisher Snack Nuts
. Resulting in Strong Share Momentum on Fisher Snack Nuts Fisher Year on Year Pound Market Share Point Change Snack Nut Category—Total U.S. x AOC +0.3 pts. 0.3 0.1 0.1 0.0 03/17/12 04/14/12 05/12/12 06/09/12 07/07/12 08/04/12 09/01/12 09/29/12 -0.1 -0.2 -0.2 Source : Nielsen – Respective Year on Yea
Slide 34: New Fisher Products to Build the Brand
New Fisher Products to Build the Brand FY 2012 FY 2013 Cocoa Mocha & Vanilla Bean Almonds Smoked Bacon & Cheddar Crunch Almonds Specialty Snack Items Expanded Honey Roast Line Mammoth Pecans Omega 3 and Oatmeal Trail Mix 34
Slide 35: Building a Social Media Presence for Fisher
Building a Social Media Presence for Fisher 62,484 35
Slide 36: Re-Launching Orchard Valley Harvest
Re-Launching Orchard Valley Harvest YESTERDAY TODAY • Strong Brand Registration • Poor Brand Registration • Clean packaging graphics • No clear brand meaning reinforce “from the earth” credentials • Clean ingredient line reinforces credentials 36
Slide 37: Produce Shoppers Expect More
Produce shoppers expect more. • Fresh • Natural • Pure & Simple • Authenticity 3737
Slide 38: And Orchard Valley Harvest Delivers!
And Orchard Valley Harvest Delivers! • Fresh • Pure & Simple • From the Earth • Natural • Authentic 3838
Slide 39: Integrated Program to Build the Brand
Integrated Program to Build the Brand Right Products Win In-Store Brand Building 3939
Slide 40: FY 2012 Accomplishments – Grow Globally
FY 2012 Accomplishments – Grow Globally Achieved 30% increase in Global Fisher Snack sales Developed New Private Brand Snack platform for global retailer Completed China Market Entry study with International Consulting Firm 40
Slide 41: Global Nut Consumption
Global Nut Consumption Nut Consumption Growth 6% wth 4% o LY Gr Vs. 2% % 0% Dollar Growth Retail Volume (Billions) (million lbs) Nut Consumption 4.2% 3.2% Growth Actual Consumption $14.6B 2.9 Billion Lbs. Source: Euromonitor 41
Slide 42: International Success
International Success Carrefour Dominican Republic E-Mart Korea Super 99 Panama Carrefour French Polynesia Sweet Space Korea 42
Slide 43: Fisher in China 2012
Fisher in China 2012 43
Slide 44: FY 2012 Accomplishments – Integrated Nut Solutions
FY 2012 Accomplishments – Integrated Nut Solutions Transformed our Customer Relationships Expanded our Innovation and Consumer Insights Focus Continued to Optimize Operational Efficiencies 44
Slide 45: Commercial Ingredient Success
Commercial Ingredient Success 45
Slide 46: FY 2012 Financial Milestones
FY 2012 Financial Milestones
Slide 47: JBSS Net Sales FYs 2008-2012
JBSS Net Sales FYs 2008-2012 4 Year CAGR: 6.6% 47
Slide 48: JBSS Stockholders' Equity FYs 2008-2012
JBSS Stockholders’ Equity FYs 2008-2012 4 Year CAGR: 6.5% 48
Slide 49: JBSS Total Outstanding Debt FYs 2008-2012
JBSS Total Outstanding Debt FYs 2008-2012 Total Debt Reduced by 28%—Incl. $40MM Acquisition in 2010 49
Slide 50: JBSS Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 2008-2012 30.0% 25.0% 20.0% 15.0% 10.0% Total Debt As Percentage of Net Sales Nearly Halved 50
Slide 51: JBSS Rolling Four Quarter Gross Margin % and Nut Prices
JBSS Rolling Four Quarter Gross Margin % and Nut Prices $5.50 22.0% $5.00 20.0% $4.50 18.0% $4.00 16.0% $3.50 14.0% Lb. $3.00 12.0% Gross Margin $ per $2.50 10.0% $2.00 8.0% % $1.50 6.0% $1.00 4.0% $0.50 2.0% $0.00 0.0% Gross Margin % Imported Tree Nuts Domestic Tree Nuts Peanuts Nut market prices f
Slide 52: EBITDA
EBITDA EBITDA consists of earnings before interest, taxes, depreciation, amortization and noncontrolling interest. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America (“GAAP”), and does not represent cash flow from opera
Slide 53: Reconciliation of Net Income (Loss) to EBITDA
Reconciliation of Net Income (Loss) to EBITDA (In $,000’s) FY2008 FY2009 FY2010 FY2011 FY2012 NET INCOME (LOSS) $(5,957) $6,917 $14,425 $2,835 $17,122 INTEREST EXPENSE $10,502 $7,646 $5,653 $6,444 $5,364 INCOME TAX (BENEFIT) EXPENSE $ (897) $ (259) $8,447 $ (49) $9,099 DEPRECIATION & AMORTIZATION $1
Slide 54: JBSS Q1 2013 vs. Q1 2012
JBSS Q1 2013 vs. Q1 2012 (in 000’s except EPS) $ Change% Change Net Sales $20,707 13.2% Sales Volume(lbs. sold) (224) (.4%) Gross Profit$ 8,807 40.5% Net Income $ 5,092 208.5% Earnings Per Share $ 0.46 199.6% Operating Cash Flows($ 2,014) (16.4%) Total Debt ($ 5,080) (5.6%) 54
Slide 55: JBSS Share Price FY 2008-2012 vs. Russell 2000
JBSS Share Price FY 2008-2012 vs. Russell 2000 55
Slide 56: Thank You
The Global Source for Nuts THANK YOU:
Slide 57: Appendix: Peanut Spot Market Price
Appendix PEANUT SPOT MARKET PRICE SSSSH ONSEN ENNIO.
Slide 58: Appendix: Imported Tree Nut Spot Market Price
Appendix IMPORTED TREE NUT SPOT MARKET PRICE 600 500 0 4 90 i 20 0 000 eto ee
Slide 59: Appendix: Domestic Tree Nut Spot Market Price
Appendix DOMESTICTREE NUT SPOT MARKET PRICE. 0 ue 0 ne 0 i 20 20 ne 0 no 00 SSSI SIS.
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