John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Southwest Ideas Investor Conference 2014
68 slides from John B. Sanfilippo & Son's conference presentation, Nov 19, 2014
Slide 1: Southwest Ideas Investor Conference
SOUTHWEST IDEAS INVESTOR CONFERENCE November 20, 2014 Exhibit 99.1
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: Diluted EPS Improvement of 49%
Diluted EPS Improvement of 49% Time to Celebrate Successful Results over the last three years 0.5 1.5 2.5 FY12 FY13 FY14 EPS FY 12-FY 14 680,000,000 700,000,000 720,000,000 740,000,000 760,000,000 780,000,000 800,000,000 FY12 FY13 FY14 Net Sales FY 12 -FY 14 $778,622,000 Net Sales increased by 11% t
Slide 4: Creating Shareholder Value
59.65% Creating Shareholder Value JBSS Russell 2000 Outperformed the Russell 2000 Index by over 55%! Stock Price $23.99 11/15/2013 Stock Price $38.30 11/17/2014
Slide 5: Strong team and facilities
“The success of any company is contingent upon having a strong team to manage and grow the business. We have that here at JBSS.” Gustine, CA 130 Employees Garysburg, NC 38 Employees Bainbridge, GA 102 Employees Selma, TX 167 Employees Elgin, IL 857 Employees
Slide 6: John B. Sanfilippo & Son, Inc.: Transformed Consumer Products Company
John B. Sanfilippo & Son, Inc.: Transformed Consumer Products Company … Reproduced with permission of Snack Food & Wholesale Bakery magazine
Slide 7: Nut Category Trends
Nut Category Trends
Slide 8: Retail Prices Higher Over the Last 5 Years
$4.53 $4.70 $5.31 $5.62 $5.68 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Price Per Pound Price Per Pound Category Retail Prices Higher Over the Last 5 Years Source: IRI: Total Nut Category – Multi Outlet Geography –Year Ending 6/29/14
Slide 9: Retail Prices Up Across All Nut Types
Retail Prices Up Across All Nut Types over the Last 5 Years +56% +46% +20% +18% +15% +29% +39% +26% +22% 0% 10% 20% 30% 40% 50% 60% Price Per Pound – Percent Change Over Last 5 Years Change vs. FY 2010 Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/29/14
Slide 10: Nut Category has had strong Sales Growth
Nut Category has had strong Sales Growth Category LB Sales (MM) 1,003 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/29/14
Slide 11: Category Growth Across the Store
Category Growth Across the Store +26% +4% +42% +5% +32% +8% Snack Nuts Produce Nuts Recipe Nuts Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/29/14
Slide 12: JBSS Growth Across the Store
JBSS Growth (Gross Sales) Across the Store +38% +244% +22% Source: Internal JBSS Shipment Data Snack Nuts Produce Nuts Recipe Nuts
Slide 13: JBSS Sales Channel Updates
JBSS SALES CHANNEL UPDATES
Slide 14: Business Channel Diversification
$193 $98 $454 Business Channel Diversification (Millions of $) $34 Commercial Ingredients 25% Contract Pkg. 13% Consumer 58% Export % Fiscal 2014 Net Sales $779 Million
Slide 15: FY 2014 Consumer Channel
Consumer 58% vs. FY ‘13 FY 2014 Consumer Channel 4.1 % Fiscal 2014 Net Sales $454 Million
Slide 16: FY 2014 Commercial Ingredients Channel
FY 2014 Commercial Ingredients Channel Fiscal 2014 Net Sales $193 Million Commercial Ingredients 25% 8.4% vs. FY ‘13
Slide 17: FY 2014 Export Channel
FY 2014 Export Channel Export 4% 0% Vs. FY ‘13 Fiscal 2014 Net Sales $34 Million
Slide 18: FY 2014 Contract Packaging Channel
Contract Packaging 13% Vs. FY ‘13 FY 2014 Contract Packaging Channel Fiscal 2014 Net Sales $98 Million 14.0%
Slide 19: Corporate Strategies
CORPORATE STRATEGIES
Slide 20: Create Value: Corporate Strategies
CREATE VALUE EXPAND WITH KEY GLOBALLY CUSTOMERS Build Fisher and Orchard Valley Harvest into leading -—«* Build JBSS into a leading premium international snack * Be the preferred partner to buld profitable volume of nut brands, rut company, value-added nut and snack products, Utlize consumer insight
Slide 21: FY 2014 Accomplishments
Fisher Recipe Nuts market share leadership excluding club size items Fisher Snack Nuts market share growth in high franchise Midwest Orchard Valley Harvest expanded distribution and increased velocity resulting in double-digit revenue growth Award-winning marketing programs FY 2014 Accomplishments
Slide 22: FY 2014 Accomplishments
Established a Foreign Invested Commercial Enterprise (FICE) in China Expanded Fisher Snacks in Asia and the Middle East Continued to leverage key retail partnerships for a record year with private brands FY 2014 Accomplishments
Slide 23: FY 2014 Accomplishments
Received Contract Manufacturing supplier quality award Optimized Food Service and Industrial Ingredient customer and product portfolios Expanded Continuous Improvement efforts throughout our organization FY 2014 Accomplishments
Slide 24: FY 2014 Sales & Marketing Update
FY 2014 Sales & Marketing Update
Slide 25: Grow JBSS Brands
GROW JBSS BRANDS Build Fisher and Orchard Valley Harvest into leading nut brands. Utilize consumer insights to develop products and integrated marketing programs that build brand equity, meet consumer needs, and grow the category for our retail partners. Focus on consumers demanding quality nuts in
Slide 26: Fisher is a Growing Brand
Fiscal 2014 Actual vs. Prior Year 3 Year CAGR Fisher is a Growing Brand Sales Pounds +7% Net Sales +6% Sales Pounds +1% Net Sales +8%
Slide 27: Total Fisher Brand has Grown Dollar Share
Total Fisher Brand has Grown Dollar Share over the last 3 Years 2.5 2.9 3.1 FY 2012 FY 2013 FY 2014 Fisher Dollar Share Source: IRI:Ttl Nut Category – Multi Outlet Geography Year Ending 6/29/14
Slide 28: Strong and Sustained Growth on Fisher Recipe Nuts
Strong and Sustained Growth on Fisher Recipe Nuts 34 Consecutive Quad-Weeks of Increased IRI measured Consumption! 0% 10% 20% 30% 40% 50% 60% Fisher LB % Change vs. Last Year Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography – Latest 34 Quad Weeks Ending 10/5/14
Slide 29: Success Driven by Increased Distribution and Movement
Success Driven by both Increased Distribution and Movement 33.0% 43.5% 46.5% FY 2012 FY 2013 FY 2014 Fisher ACV Growth* 14,160 16,022 22,372 FY 2012 FY 2013 FY 2014 Fisher Pound Velocity* Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography –Year Ending 6/29/14 *Note: ACV refers to “All Com
Slide 30: Differentiating versus competition with No Preservatives
Differentiating versus competition with “No Preservatives” Message Print
Slide 31: Building Fisher Brand Equity with Food Network Sponsorship
Recipes Food Network Vignettes Digital and Mobile Recipe Contest Food Network Magazine Social Media and PR Building Fisher Brand Equity with Food Network Sponsorship
Slide 32: We extend our reach through Print
We extend our reach through Print that reaches our Core Consumer
Slide 33: Expanding Social Media Presence with Fisher Fresh Thinkers
Expanding Social Media Presence with “Fisher Fresh Thinkers”
Slide 34: Brand-Building Marketing Recognized with Industry Awards
Reggie Gold Award Brand Activation Association (March 2014) Golden Trumpet Gold Award Publicity Club of Chicago (June 2014) Brand -Building Marketing Recognized with Industry Awards
Slide 35: Winning the year is about Pounds-on-the-floor
Winning the year is about Pounds-on-the-floor 26.7 37.2 41.2 FY 2012 FY 2013 FY 2014 Fisher % ACV Any Display* Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography –Year Ending 6/29/14 *Note: ACV refers to “All Commodity Volume” as measured by IRI
Slide 36: Spiced pecans recipe
Ne ae Ti aw spiced pecans Prep Time: 10 minutes e Cook Time: 8 minutes Serves: 8 2 Ths unsalted butter 4/2 tsp salt 1/4 tsp ground black pepper 4/2 tsp ground cinnamon - Utes pound aleplos =of| FALL ENTERTAININGS 2 cups pecan halves hed 1 Tbs sugar Ina skillet, over medium-low heat melt butter. Stir
Slide 37: Recipe Nut Distribution
Recipe Recipe Nut Nut Distribution Distribution Hawaii
Slide 38: Slide 38
Slide 39: Fisher Snack Nut Strategy Focused on Midwest High Franchise Markets
Fisher snack nut Strategy Focused on Midwest High Franchise Markets
Slide 40: Fisher Snack Nuts Growing Pound Share in High Franchise Markets
Fisher snack nuts Growing Pound Share in High Franchise Markets 1.8 2.7 3.1 FY 2012 FY 2013 FY 2014 Fisher snack nuts Pound Share (High Franchise Markets) Source: IRI: Ttl Snack Nut Category – Fisher High Franchise Geography –Years Ending 6/29/14
Slide 41: Success driven by Improved Distribution and Movement
Success driven by Improved Distribution and Movement FY 2012 FY 2013 FY 2014 Fisher TPD* 1,354 1,386 1,634 FY 2012 FY 2013 FY 2014 Fisher Pound Velocity* Source: IRI: Ttl Snack Nut Category – Fisher High Franchise Geography –Year Ending 6/29/14 *Note: TPDs refers to Total Points of Distribution and
Slide 42: Driving Results on Core Dry Roast Peanut Business
Source: Blue Chip Worldwide SPARQ concept research, December 2013 Driving Results on Core Dry Roast Peanut Business “Oven Roasted, Never Fried” communication drives purchase interest Elevates taste and healthy snack perceptions Supported through FSIs, In-Store and via Digital
Slide 43: Velocity: Growing Fisher Almond line
Velocity (Pound Sales per Distribution Point) Source IRI Growing Fisher Almond line Converted Almond line to 5.5 oz Stand Up Re-sealable bags Consumer Value Proposition: Better per package price; Re-closeable to seal-in freshness Result: Increased movement per point of distribution Source: IRI Quad
Slide 44: Increasing the Number of SKUs On-Shelf
Importantly, we are increasing the # of SKUs* on-shelf 9.5 9.8 12.7 FY 2012 FY 2013 FY 2014 Avg # of Items per Store Selling Source: IRI Ttl Snack Nut Category – Fisher High Franchise Geography –Year Ending 6/29/14 *Note: SKUs refer to Stock Keeping Units
Slide 45: Fast adapting to key retailers' rules on displays
We are fast adapting to key retailers’ rules on displays… winning again!
Slide 46: Snacks Distribution
Snacks Distribution Snacks Distribution
Slide 47: Pure and Simple Goodness
Pure and Simple Goodness
Slide 48: Orchard Valley Harvest Brand Equity
Orchard Valley Harvest Brand Equity Pure & Simple Goodness Support a healthy lifestyle Close to the earth
Slide 49: Orchard Valley Harvest Delivers
Orchard Valley Harvest Delivers
Slide 50: Orchard Valley Harvest is a Growing Brand
Orchard Valley Harvest is a Growing Brand Fiscal 2014 Actual vs. Prior Year Sales Pounds + 9% Net Sales +16 %
Slide 51: Mini's and Multi-Packs Tap into On the Go Snacking
Mini’s and Multi-Packs Tap into “On the Go” Snacking Grab ‘n Go Mini’s Multi-Packs Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartman Group: Reimagining Health and Wellness, 2013 • Snacking accounts for over 53% of all eating occasions in the US • 38% of consumers snack several t
Slide 52: FY15 OVH Marketing Support
FY15 OVH Marketing Support Bloggers Ibotta Website PR In-Store Merchandising New Packaging
Slide 53: Driving Increased Distribution
Driving Increased Distribution FY13 Driver: FY14 Driver: Source: IRI: Ttl Produce Nut Category – Total US Food Geography–Year Ending 6/29/14 *Note: % ACV refers to % “All Commodity Volume” as measured by IRI
Slide 54: Driving Increased Movement
Driving Increased Movement - 1,000 2,000 3,000 4,000 5,000 6,000 Units Sales Per Point of Distribution – Total OVH Source: IRI Ttl Produce Nut Category – Total US Food Geography– Quad Weeks Ending 9-7-14
Slide 55: Displays drive sales in produce
Displays drive sales in produce Source: Internal JBSS Shipment Data 392,656 370,401 582,077 FY 2012 FY 2013 FY 2014 Shipper & 1/4 Pallet Lb Displays
Slide 56: Slide 56
Slide 57: FY 2014 Financial Milestones
FY 2014 Financial Milestones
Slide 58: JBSS Stockholders' Equity FYs 1991-2014
JBSS Stockholders’ Equity FYs 1991- $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250
Slide 59: JBSS Net Sales FYs 1991-2014
JBSS Net Sales FYs 1991- Item Rationalization, De-emphasized Commodity Sales, Lower Prices Low Carb Diet Run Up $0 $100 $200 $300 $400 $500 $600 $700 $800 $900
Slide 60: JBSS Total Outstanding Debt FYs 1991-2014
JBSS Total Outstanding Debt FYs 1991- Facility consolidation Improved operating performance $0 $20 $40 $60 $80 $100 $120 $140 $160
Slide 61: Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – Note: FY 1997 reflects stub year 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0%
Slide 62: 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 63: Reconciliation of Net Income (Loss) to EBITDA
Reconciliation of Net Income (Loss) to EBITDA (In $,000's) FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 NET INCOME (LOSS) 22,630 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 INTEREST EXPENSE 3,434 3,998 6,516 9,347 10,502 7,646 5,653 6,444
Slide 64: EBITDA
EBITDA* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure -$15,000 -$10,000 -$5,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000
Slide 65: EBITDA Margin (% of Net Sales)
EBITDA* Margin (% of Net Sales) * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
Slide 66: Peanut and Tree Nut Spot Market Prices vs. JBSS Rolling Quarter Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN % Source: Spot market prices from survey of JBSS vendors and brokers
Slide 67: Highlights: Q1 2015 vs. Q1 2014
Highlights: Q1 2015 vs. Q1 2014 (in 000’s except EPS) $ Chng. % Chng. Net Sales $ 28,340 16.0% Sales Volume (lbs. sold ) 4,055 7.1% Gross Profit $ 1,315 4.5% Net Income * ($ 860) (12.7%) Earnings Per Share ($ 0.08) (13.1%) Operating Cash Flows $ 20,455 276.3% Total Debt ($11,385) (16.4%) * Adversely
Slide 68: John B. Sanfilippo & Son, Inc.
- SANFILIPPO & SON, INC.
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