Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q3 2019 Earnings Presentation
19 slides from Tyson Foods's earnings presentation, Aug 5, 2019
Slide 1: Q3 Fiscal 2019 Supplemental Information
— Q3 Fiscal 2019 Supplemental Information 1 August 5, 2019
Slide 2: Today's Speakers
Today’s Speakers Noel White Stewart Glendinning President & CEO EVP & CFO
Slide 3: Forward-Looking Statements
Certain information in this report constitutes forward-looking statements. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2019, other future economic circumstances, industry conditions in domestic and international markets, our
Slide 4: Q3 Achievements
Q3 Achievements • Acquired Thai and European poultry operations • Launched alternative protein products • Planning a new case-ready beef & pork plant 4 Tyson Foods, Inc. August 5 2019
Slide 5: Q319 Highlights
Q319 Highlights ($ in millions, except per share data) Q319 FYTD Q319 • Adjusted EPS of $1.47 1 Sales $10,885 $31,521 Adjusted Operating Income1 $796 $2,291 • Adjusted operating income of 1 Adjusted Operating Margin1 7.3% 7.3% $796M Adjusted EPS1 $1.47 $4.25 Adjusted Operating Income1 • Adjusted ope
Slide 6: Retail Volume Performance
Retail Volume Performance Core Business Lines & Total Tyson Volume Sales % Change among top 10 branded food companies > $5B in sales 3.8% 2.9% 1.7% 1.1% 0.3% Core Bus. Total -0.2% -0.3% Total Tyson Lines F&B -0.7% -1.5% -1.8% -2.5% -3.1% Source: Nielsen Total U.S. xAOC Fixed Weight Volume EQ Sales 5
Slide 7: Broadline Foodservice Volume Performance
Broadline Foodservice Volume Performance Volume Change vs. Prior Year Manufacturer Label + Distributor Label 3.5% 3.0% 1.6% Total Broadline Focus 6 Categories Tyson Focus 6 Source: NPD SupplyTrack®, Month Ending May 2019. Excludes Commercial Large Chains and Operator Label. Includes Lodging Large Ch
Slide 8: Prepared Foods Segment Results
Prepared Foods Segment Results Q319 Sales volume ↑0.4% 2 Adjusted Operating Income1 Average price ↑2.2% 2 ($ in millions) Dollars ROS% FYTD Q319 Sales volume ↑1.0% 2 Average price ↑0.3% 2 Q319 $236 11.3% FY19 Outlook FYTD Adjusted Operating Margin 1 $753 12.0% Q319 near 12% 1Represents a non-GAAP fi
Slide 9: Alternative Protein & Blended Products in Stores Now
Alternative Protein & Blended Products in Stores Now
Slide 10: Beef Segment Results
Beef Segment Results Adjusted Operating Income1 Q319 Sales volume ↑1.8% ($ in millions) Average price ↑2.3% Dollars ROS% FYTD Sales volume ↑1.3% Average price ↑2.2% Q319 $271 6.5% FY19 Outlook Adjusted Operating Margin 1 FYTD $732 6.1% ~ 7% 1Represents a non-GAAP financial measure. Adjusted operatin
Slide 11: Pork Segment Results
Pork Segment Results Adjusted Operating Income1 Q319 Sales volume ↑3.1% ($ in millions) Average price ↑7.4% Dollars ROS% FYTD Sales volume ↑0.1% Average price ↓2.0% Q319 $42 3.2% FY19 Outlook Adjusted Operating Margin 1 FYTD $237 6.5% exceeding 6% 1Represents a non-GAAP financial measure. Adjusted o
Slide 12: Chicken Segment Results
Chicken Segment Results Q319 Sales volume ↑23.4% 2 Adjusted Operating Income1 Average price ↓11.4% 2 ($ in millions) Dollars ROS% FYTD Sales volume ↑22.2% 2 Average price ↓11.8% 2 Q319 $237 7.1% FY19 Outlook Adjusted Operating Margin 1 FYTD $560 5.7% around 6% 1Represents a non-GAAP financial measur
Slide 13: International: demand-focused, locally relevant
International: demand-focused, locally relevant Canada Europe China United States Japan Philippines Tyson Supply Thailand Global Sourcing Beef Brazil/Argentina Chicken Australia Pork Value-Added / Prepared 13 Tyson Foods, Inc. August 5, 2019
Slide 14: FYTD Highlights
FYTD Highlights ($ in millions, except per share data) Q319 FYTD Q319 • Adjusted EPS of $4.25 1 Sales $10,885 $31,521 Adjusted Operating Income1 $796 $2,291 • Adjusted operating income of $2.3B 1 Adjusted Operating Margin1 7.3% 7.3% Adjusted EPS1 $1.47 $4.25 • Adjusted operating margin of 7.3% 1 Adj
Slide 15: Outlook
Outlook SALES CAP EX ADJUSTED EPS1 FY19 ~$43B FY19 & FY20 FY19 FY20 ~$45-46B ~$1.3B $5.75-6.10 FY20 topline growth of 6-7% over FY19 FY19 ADJUSTED OPERATING MARGIN1 PREPARED FOODS BEEF PORK CHICKEN near 12% ~7% exceeding 6% around 6% 1 Projected Adjusted EPS as of 8/05/19. Represents a non-GAAP fina
Slide 16: Our Strategy
Our Strategy — Sustainably feed the world with the fastest growing protein brands. How We Will Achieve Our Strategy Grow Deliver Sustain our businesses ongoing financial fitness our company and through differentiated through continuous our world for future capabilities. improvement. generations.
Slide 17: Appendix
Appendix
Slide 18: EPS Reconciliations
EPS Reconciliations $ in millions, except per share data (Unaudited) Third Quarter Nine Months Ended Pretax Impact EPS Impact Pretax Impact EPS Impact 2019 2018 2019 2018 2019 2018 2019 2018 Reported net income per share attributable to Tyson - - $1.84 $1.47 $4.51 $6.72 Add: Restructuring and relate
Slide 19: Segment Operating Income & Operating Margin Reconciliations
Segment Operating Income & Operating Margin Reconciliations $ In millions, except per share data (Unaudited) Adjusted Segm ent Operating Incom e (Loss) (for the third quarter ended June 29, 2019) Prepared Intersegm ent Beef Pork C hick en F oods Other Sales Total Sales $ 4,157 $ 1,323 $ 3,331 $ 2,08