John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Southwest IDEAS Investor Conference 2013
56 slides from John B. Sanfilippo & Son's conference presentation, Nov 20, 2013
Slide 1: Southwest IDEAS Investor Conference
November 21, 2013 Southwest IDEAS Investor Conference NASDAQ: JBSS Exhibit 99.1
Slide 2: Recent Financial Results FY11–FY13
Diluted EPS improved by over 600% Operating Cash Flow increased by nearly 400% Net Sales increased by 9% to a record $734 million Recent Financial Results FY 11 – FY 13
Slide 3: Stock Price
Stock Price @ vss saPsoo $25.32 111312013 0% 70% 60% 50% Stock Price hats $13.94 101242012 30% 20% 10% 0% 2012 Dee 2013 Feb Mar Apr May aun ul Aug sep oct ‘mi Volume: 7,50¢ x) ote the S&P 500 = over 50%! 0.108 ——— —
Slide 4: Mission
Mission To be the global leader of quality driven, innovative nut solutions that enhance the customer and consumer experience and achieve consistent, profitable growth for our stockholders . We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potential of ou
Slide 5: We are 1,290 people strong
We are 1,290 people strong at five strategic locations!
Slide 6: State-of-the-Art World Class Facility
State-of-the-Art World Class Facility 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 Program
Slide 7: Distribution Channel Diversification
Distribution Channel Diversification (Millions of $; % change FY 13 v. FY 12 net sales)
Slide 8: Distribution Channel Diversification
Distribution Channel Diversification 1. Consumer Channel – sale of nuts and dried fruits to major food retailers Branded Business : Fisher Recipe – #2 national market share Fisher Snack – A Midwest market leader Orchard Valley Harvest – full line natural nuts and dried fruit products sold in the pro
Slide 9: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type We Are Experts In Every Nut Type • We believe we offer the most complete product portfolio of nuts in the U.S. • Comprehensive variety of value-added products • Wide assortment of other snack products • Most versatile styles and sizes, customized to customer specific
Slide 10: We Are Experts In Procurement
Pecans Peanuts Almonds Walnuts We Are Experts In Procurement We Are Experts In Procurement
Slide 11: We Reach Consumers in 20+ In-Store Points
We Reach Consumers in 20+ In-Store Points We Reach Consumers in 20+ In-Store Points
Slide 12: Corporate Growth Strategies
Corporate Growth Strategies * * * * * * * *
Slide 13: Growth strategies: Grow brands, expand globally, create value with customers
JOHN 5. SANFILIPFO < SON, INC_ EXPAND GLOBALLY Buld Fisher and Orchard Valley Harvest into leading * Build JBSS into a leading premium international snack nut brands, ‘ut company. Utilize consumer insights to develop products and * Grow Fisher and other JBSS brands through expanded « integrated mark
Slide 14: Grow Brands
Grow Brands Recipe Nuts Snack Nuts
Slide 15: We bring the joy of nuts to life
We bring the joy of nuts to life by staying fresh, every day and in every way.
Slide 16: Fisher Recipe & Snack Brands Delivering Double Digit Growth
Consumer Channel Pounds (Millions) Gross Revenue ($ Millions) Fisher Recipe & Snack Brands Delivering Double Digit Growth FY ’13 Actual Versus FY’12 FY ’13 Actual Versus FY’12 Fisher Brands +17% $138 +23%
Slide 17: Easier to scoop
Easier to scoop Easier to find in the pantry Freshness seal keeps nuts fresh Innovation that meets the needs of the Consumer… Before….
Slide 18: …and the Retailer
…and the Retailer Easier to Merchandise Reduced Case Count to reduce Inventory Shelf Ready Case to reduce Labor Before….
Slide 19: Celebrity Chef Alex Guarnaschelli
Celebrity Chef Alex Guarnaschelli in TV Vignettes and Print Building the Fisher Recipe Brand with Food Network Sponsorship
Slide 20: Extending our reach through Print
Extending our reach through Print that reaches our Core Consumer
Slide 21: Winning In-Store with Displays
Get Free! Buy Winning In-Store with Displays! Karo Tie-in led to 7X increase in “Pounds on the Floor” last fiscal year
Slide 22: Driving Distribution Gains
Our Strong Consumer and Retailer Program is driving Distribution Gains… Recipe Nuts
Slide 23: Market Share Gains among Branded Recipe Nuts
…and Market Share Gains among Branded Recipe Nuts Source : Nielsen scantrack data 4 week periods 7/7/12 to 10/26/13
Slide 24: Growing Fisher Snack by getting the Fundamentals Right
Growing Fisher Snack by getting the Fundamentals Right New Products Coupon Support In-Store Merchandising
Slide 25: Focusing on High Franchise Midwest
Focusing on High Franchise Midwest…
Slide 26: Driving Distribution Gains
…driving Distribution Gains Snack Nuts
Slide 27: Orchard Valley Harvest
Orchant HARVEST As) =, =e Ty |
Slide 28: Three Key Produce Consumer Trends
Consumers want to know what’s in their food Consumers want products that fit their active lifestyle Consumers are more proactive about health & wellness Three Key Produce Consumer Trends
Slide 29: Orchard Valley Harvest Delivers
• Fresh • Pure & Simple • From the Earth • Free of Artificial Ingredients • Authentic Orchard Valley Harvest Delivers
Slide 30: Orchard Valley Harvest Delivers
Orchard Valley Harvest Delivers
Slide 31: A Differentiated Assortment
Core Line of “Take Home” Bags Health & Wellness Mixes Convenience Packs A Differentiated Assortment
Slide 32: Unique Merchandising
Dominick's Unique Merchandising Sprouts
Slide 33: Building Distribution
Building Distribution (Bulk only) BREAUX Markets
Slide 34: FY 2013 Accomplishments
• Created a geographic-centric sales structure and hired experienced professionals to manage key regions • Partnered with leading international marketing firms to do proprietary research on nut usage and consumption in Asia • Invested in upgrading our Fisher Brand positioning and packaging FY 2013 A
Slide 35: Goal: Significantly Increase Export Sales by FY 2016
Goal: Significantly Increase Export Sales by FY 2016 A world of opportunity for JBSS to be a leader in health and wellness nut/fruit snacks in key international markets $34 MM in FY 13
Slide 36: Peanuts
PEANUTS
Slide 37: Who: China Retailers
Who: China Retailers Shanghai Fisher in Tibet Beijing
Slide 38: Who: Latin America Retailers
Who: Latin America Retailers • Mexico • Dominican Republic • Panama • Colombia Comercial Mexicana Chedraui - Mafer Walmart / Superama Fisher “World Table” El Rey - Panama Liverpool - Mexico El Dragon – Santo Domingo
Slide 39: Who: Europe, Middle East, Africa, Asia Retailers
Who: Europe, Middle East, Africa, Asia Retailers • Russia • U.A.E. • U.K. • Saudi Arabia • South Korea • Malaysia • Japan • Australia
Slide 40: FY 2013 Accomplishments
FY 2013 Accomplishments • Developed significant product launches with several key customers • Continued to expand our production capabilities and our focus on innovation and consumer insights • Received two major Supplier of the Year customer awards
Slide 41: Goal: Be The Preferred Partner
Goal: Be The Preferred Partner to Build Profitable Volume of Value-Added Nuts & Snacks Walmart Supplier of the Year Frito-Lay Supplier of the Year
Slide 42: How: Commitment to Quality, Food Safety, Innovation & Procurement
• Reduce Foreign Material Complaints • Customer Quality Scorecards • Stringent Corporate Food Safety Programs • Raw Material Sourcing • Product & Packaging Innovation How: Commitment to Quality, Food Safety, Innovation & Procurement Expertise Pecans, Pine Nuts Cashews Macadamias Cashews Macadamias C
Slide 43: How: Operational Excellence
Quality Balance Flow 1 2 3 4 5 How: Operational Excellence Setup Reduction 5S Housekeeping Create Flow Visual Management Continuous Improvement Kanban Pull Systems Standard Work Bottlenecks Checkers checking the checkers Broken interfaces Unclear roles and responsibilities 5 things to look for… The
Slide 44: Financial Milestones
FY Financial Milestones * * * * * * *
Slide 45: Stockholders' Equity FYs 1991–2013
JBSS Stockholders’ Equity FYs 1991 –
Slide 46: Total Outstanding Debt FYs 1991–2013
JBSS Total Outstanding Debt FYs 1991 –
Slide 47: Net Sales history
e10z Z10z Loz emphasized o10z De- 6002 8002 2002 9002 $002 Commodity Sales, Lower Prices Item Rationalization, yo0z 2002 z00z booz 0002 666L Low Carb Diet Run Up 661 (ow 9) 2661 9661 9661 vest eset z661 vest $800 $700 $600 $500 $400
Slide 48: 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 49: 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 operations.
Slide 50: Reconciliation of Net Income (Loss) to EBITDA
Reconciliation of Net Income (Loss) to EBITDA (In $000's) FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 NET INCOME (LOSS) 15,027 22,630 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 INTEREST EXPENSE 4,681 3,434 3,998 6,516 9,347 10,502 7,646 5,653 6
Slide 51: EBITDA
EBITDA* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) 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 52: EBITDA Margin (% of Net Sales)
EBITDA * Margin (% of Net Sales) * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) 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 53: EBITDA Per Pound Sold
EBITDA* Per Pound Sold * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure -$0.10 -$0.05 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30
Slide 54: Market prices
Market prices from survey of JBSS brokers and suppliers Nut Spot Mkt. Prices vs. JBSS Rolling 4 QTR Gross Margins
Slide 55: Highlights: Q1 2014 vs. Q1 2013
Highlights: Q1 2014 vs. Q1 2013 (in 000’s except EPS) $ Chng. % Chng. Net Sales ($ 810) (.5%) Sales Volume (lbs. sold ) 7,004 14.0% Gross Profit ($ 1,204) (3.9%) Net Income ($ 759) (10.1%) Earnings Per Share (EPS) ($ 0.08) (11.4%) Total Debt ($16,920) (19.6%)
Slide 56: Thank You
THANK YOU
Sanfilippo John B & SON — Southwest IDEAS Investor Conference 2013 on 6ix